Archive for the ‘Nick Hague’ Category

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How to ‘WOW’ your customers

This week, Nick Hague demonstrates the importance of putting yourself in your customers’ shoes

Just the other week I was presenting at a conference in Venice, delivering findings for a client of mine who works in the MRO (maintenance, repair and overhaul) industry as a distributor of all manner of goods from bearings, belts and pulleys through to motors, clutches and couplings.

A Bunch Of Flowers

My presentation was about changing what is already a good company to become a great company and, in wrapping up, I used a personal anecdote of buying a car and how in the past the bunch of flowers on the back seat of the car had left more of an impression than the car itself – small things can really make a difference!

As is often the case, discussions carried on following my session with people from the audience struggling to understand what, in their particular line of business, was the similar equivalence of the ‘bunch of flowers’.

After a couple of glasses of wine (just to lubricate the mind!) on the plane ride home, it got me thinking about why so many business-to-business companies can make and deliver excellent products but with a service experience that is inconsistent and can damage a reputation and relationship forever.

Thinking back to the many people I had spoken to during the two days, something clicked; most were technical people hired and promoted within the company because of their technical competence and engineering background. Until my session, their natural instinct was to continually focus on their internal processes to not only take cost out of the system but analyse what wasn’t working and fix it so to provide on-time delivery, every time, and remove any variances from the process. This may in the long run produce the faultless process but it won’t ‘wow’ the customer; it will just improve what they weren’t doing previously and, from all the research we carry out, we know that this doesn’t engender loyalty.

Of course, replication of systems is very important in the wider business context; that is why so many global organisations implement SAP and Six Sigma systems. However, these systems don’t create world-class service, and just meeting expectations won’t ‘wow’ the customer and leave a lasting impression. I would therefore argue that delivering a world-class customer service experience is more important than delivering the right product at the right price at the right time, as this is a given in any business.

The Zappos Model

For many of you that are based outside of the USA, you may not have heard about Zappos. Zappos.com is an online shoe retailer and through a mixture of e-commerce and world-class service, Zappos has grown to become the world’s biggest online shoe store on the back of a business model built on delivering the best customer service.
The company was founded in 1999 and was acquired by Amazon in 2009 for a reported $1.2 billion. What is the secret of this much talked about company? Well, much of the company’s rapid growth can be attributed to repeat customers and numerous word-of-mouth recommendations and this is a result of their loyalty business model and relationship marketing. Instead of putting their entire advertising budget into paid advertising, they invested the money into customer service and improving the customer experience. Therefore, the number one driver of their growth has been from repeat customers and word-of-mouth recommendations.

For all of you that don’t know, Zappos has a stated goal to offer “best service in the industry” – and it is this obsession with service that has reaped rewards. However, they don’t want to just deliver the best customer service in their industry; they have set aspirations to be the ‘online service leader’. At the moment, their service promotes the following benefits:

• Free shipping both ways
• A 365-day return policy
• A call centre that is always open

However, even though the company promises free 4-day shipping with all orders, they often deliver next-day anyway, so as to pleasantly surprise customers. It is these small delights that exceed expectations (like the flowers in my car) that will make customers loyal for the long term (and needn’t cost the earth!).

Doing Things Differently

As can be seen from the Zappos model and from my recommendations to my client, delivering a service experience really can be a differentiator in business today and can deliver many other benefits on the side, including increased profits and turnover, and a happier, more engaged workforce too.

Therefore, the next time you are dealing with a customer, ask yourself these three questions and put yourself in their shoes as to what they are thinking:

• How am I making them feel as a customer?
• What will they remember most about this experience?
• How likely are they to recommend us to others?

You never know! Changing the way you view customer service might just start changing the way you act and do business subconsciously in the future!

Posted in Nick Hague, Thursday Night Insight |
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Are You Speaking Gobbledygook?

In this week’s Thursday Night Insight, Nick Hague questions how clearly people are communicating in the business world today.

The year is now 2011 but things are no different than 2010 and I profess they are getting worse. I was sat in a meeting a couple of weeks ago (just after New Year) listening to the same old twaddle:

“It is mission critical that we focus on our core competencies in order to maintain our edge in the marketplace. If we don’t think outside the box, become more customer centric and focus on the low hanging fruit we will get push back and won’t be able to deliver the win win to deliver a seamless solution. Come on, let’s give 110%”.

Of course I exaggerate, but only slightly! How did things ever come to this – and when could you get more than 100%?

If I went home and started talking to my family in this kind of talk they would think I was speaking another language and they would be right. I have also started to hear similar talk out of work with people in the pub using such awful phrases as ‘blue-sky thinking’ and ‘singing from the same hymn sheet’. Why do we talk in this weird business speak?

Well, it may be due to the invasion of business reality TV shows like The Apprentice but I think the time has come to start speaking like humans again (even at work!).

Think of the last time you sat on a plane or train that was delayed and the way the guard or pilot phrases their apology. Just before Christmas, I was sat with a colleague on a plane (after an hour and a half delay already) and as we were sat on the tarmac, over the tannoy came the pilot “We would like to thank all passengers for their patience and apologise for any inconvenience caused”. The pilot then went on to add that “due to unforeseen circumstances that are out of our control our slot has been put back a further hour. We will update you when we have more information but if you do wish to get off this flight please make yourself known to one of the cabin crew”.

It may as well have been delivered by a robot with the inhuman way it was put across. On the occasions when I am home late from work or having to work late to meet deadlines would I ever say ‘sorry for the inconvenience’ to my wife who has put the children to bed and dealt with another evening of solitary confinement; of course I wouldn’t and if I did I know what the comeback would be!

Suffice to say, we got off the plane and ended up delivering the presentation via a video conference. What was enlightening was that after the 3 hour video conference, one of the PA’s came in and profusely apologised “I am so sorry for not offering you coffee or tea during the meeting”. It was heartfelt and of course it was no problem but immediately I warmed to her genuine nature.

I therefore postulate; is the way we communicate hurting our businesses and individual reputation more than we know? If the airline in question had dealt with the situation in a slightly more humane way, would I have felt differently about the soured experience? Research carried out in the UK with over 2,000 adults by YouGov confirmed these worrying trends that nearly half of the respondents admitted to using ‘business jargon’ outside of work with family and friends but an enlightening 70% of people (especially in the North West of England) found such talk to be irritating.

Of course, there is always a balance between being professional and being personable but in this world saturated in information and alternatives, being clear not only in the proposition you take to market but in the language you use will make you stand out from the crowd and deliver you a competitive advantage that customers will warm to.

So in wrap up to this week’s Thursday Night Insight and with the whole year ahead of us I ask you to try and make this year’s resolution to talk with clarity and without mumbo jumbo jargon and I promise you; as long as you give it 200%, it will definitely feel fresh to the other claptrap that is being spouted!

Posted in Business Decisions, Communication, Nick Hague, Thursday Night Insight |
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BIG – The Inaugural Northern Forum

Join B2B International along with other key business to business figures based in the North for a Q&A session tonight.

The topics we will be discussing are:

1. How’s business – thoughts on the effect of the recession on business, whether things in the North are any different to the rest of the country, sectors and techniques (which ones are growing, which ones not)

2. What’s happening in b2b research – is b2b research different to consumer research, how is b2b research faring in the current climate compared to consumer research, which techniques are being used more

3. The future – what does the future hold for b2b research, in the North in particular

So why don’t you come along? Admission is free and drinks and nibbles will be served from 6pm in advance of a 6.30pm start.

Venue – Aspect In The City, 3 Canal Street, The Village, Manchester M1 3HE

See you there!

Posted in B2B News, Focus Groups, Market Research, Nick Hague |
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The Three Steps To Powerful Market Intelligence Part 2

STEP 2: CHOOSE YOUR BATTLEGROUND

Desk research can be very fruitful. However, it has its limits and it may only provide part of the information sought in a project. Where a mix of desk and primary research is used it therefore means that more expensive primary research techniques are used only where essential.

The next step is to clearly state what your key objective is for your business plan and the actions you will take as a result of gathering the market intelligence. In figure 1 below you can see the different types of information that can be gathered to deliver different types of market insight:

Figure 1 – Examples Of Market Intelligence Studies

Information can be gathered from speaking with many different respondents including:

– Interviews with customers – these are arguably the most important interviews of all as they are the lifeblood of your company. There is no more effective, reliable or valuable source of competitor intelligence than customers. Buyers have never been so willing to say exactly what they want, and how they want it, nor so willing to complain or take their business elsewhere if their requirements are not fulfilled. Customers often display a remarkable level of candor when talking about their suppliers, even those with whom they have a close and collaborative relationship. Issues as diverse as price, service, contractual details and technical information can be discussed, as well as information on the competition and future needs.

– Interviews with potential customers – these interviews are often very important to see what market perceptions are like ‘on the other side of the fence’. Potential customer interviews can be used to ascertain brand perceptions in the marketplace, why they choose the supplier they do and what could make them switch to another supplier. These interviews are also useful to ascertain how much demand there is for a product/service so market sizing estimations can be made

– Competitor interviews – Competitor interviews are a difficult, but valuable means of gaining competitor intelligence. Clearly senior management such as Marketing VPs are particularly useful sources of information, if they can be persuaded to talk. Gaining co-operation with such groups is one of the most difficult tasks carried out by research and intelligence agencies. If the agency can avoid revealing the sponsor of the survey (this is very rare), a financial incentive may gain co-operation. Far more commonly, the respondent is happy to take part in an ‘information exchange’. This usually results in the respondent receiving a synopsis of the overall market research findings in return for a face-to-face or telephone interview. It should be highlighted that a competitor interview does not necessarily need to target a high-level respondent in order to be useful. Mid-management employees such as Sales Managers can be an extremely useful source of information on products, innovations, overall strategies and a host of other topics. These employees are trained to talk and persuade and tend to be less circumspect than their colleagues in other departments.

– Interviews with suppliers, distributors and industry experts – In every industry it is worth mapping out the supply chain in order to assess who might be able to provide valuable market intelligence. Those at the centre of the supply-chain – intermediaries such as distributors, agents and importers – are often those that know most about the market, as they are in frequent contact with manufacturers and sellers alike. Most markets have a number of ‘experts’ of some kind who are independent and willing to share the information they possess. Industry associations and journalists at industry publications are typical examples.

The means of gathering market information varies according to the objectives of the intelligence – are you looking for insight and understanding or are you looking for robust quantification of market size and segments, brand shares or purchase frequencies? Also, the type of methodology depends on who your target audience is. For example, it is easier to use e-surveys when speaking to customers due to the already existing relationship you have with your customers and therefore the response rates of completion are greater but also the fact that you have at your disposal an accurate e-mail list. However, even from customers, the depth that is gathered through e-surveys is often not as detailed as an administered interview over the telephone or face to face. Focus groups (both online and face to face) are still used in abundance in business to business research to capture qualitative insight but other methodologies are also utilized that call on different skills such as observational skills in ethnographic research.

Clearly scoping out who you are looking to target very much dictates what methodology is chosen. However, there are few real methodological differences when it comes to obtaining market intelligence in different countries. When it comes to data collection, it is true that Asian markets, for both cultural and logistical reasons, often require more face-to-face data collection than Western markets. It is also true that market intelligence can be more difficult to obtain in developing countries. A key reason for this is that economic records tend to be less well-established. However, a market intelligence provider with well-educated employees and a multilingual capability should be capable of obtaining intelligence across different markets. Indeed, this skill is increasingly essential as the requirement for multi-country intelligence increases.

STEP 3: DON’T STOP DIGGING

One of the most important things to remember is that the gathering of market intelligence is delivering insight into a market at that specific moment in time. Many of the issues that affect a customers buying decision today will most likely evolve in the future. Also, in this global marketplace in which we all play change is constant and so not only will needs change but suppliers, prices and products will also change. Therefore, it is important that intelligence is acted upon when it is collected but that also a constant review (or feedback loop) is put in place so that a continuous review of market intelligence is at the centre of all business decisions made.

IN CONCLUSION…

For many companies, the first place to look for more sales and therefore growth is amongst existing customers. Current customers have already made the ultimate gesture of approval and paid money to buy your products. A bit more persuasion and they may buy more. Also, existing customers know and trust the company sufficiently well to do business. So much so, they may give serious consideration to buying a new product or service from the company. However, every company has a product that can travel. New markets wherever they are – new countries or new segments – carry risk and the gathering of accurate market intelligence is a must in making all these decisions.

Posted in Articles, Market Intelligence, Market Research, Nick Hague |
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The Three Steps To Powerful Market Intelligence Part 1

In this first part of Nick Hague’s latest dive in to a world of knowledge, he comes to the surface with three steps towards powerful market intelligence.

KNOWLEDGE IS POWER!

Take a minute to think what it would be like if you had just a handful of customers and you intimately knew everything there was to know about them from their names and personal background through to their differing business needs. Just like a market trader who has a continuous finger on the pulse of customer preference, direct contact with customers allows a business owner to quickly evaluate what he is doing right or where he is going wrong. Such informal feedback is valuable in any company but hard to formalise and control in anything much larger than a corner shop.

However, it is also just as important to have information on your competitors and potential customers as it is to have information on your customers. As Sun Tzu stated in the Art of War:

“So it is said that if you know your enemies and know yourself, you will fight without danger in battles.”

Having intelligence on your enemy is a key to winning military battles and so it is in business. Having the competitive edge can be the difference between winning and losing. No matter what the size of your business, there are two key questions that unlock the door for any strategic plan independent of whether you are delivering a product, service or what industry sector you work in. The two important questions are:

• Where are we going?
• How are we going to get there?

The only option for businesses is to grow because staying still is not an option as others will pass you by, while decline is a sure movement towards extinction. Knowledge is power but only through the collection of accurate market intelligence will any business be able to move forward with confidence in the decisions they make.

Market intelligence can be used to assist with more or less every decision faced by a company (whether they are operating on a local, regional, national or international level). The overriding purpose of most market intelligence is to help the company grow – to increase revenue, profit, or market share. Good market intelligence can therefore have a huge return on investment; just £20,000 – £100,000 spent on intelligence can generate or save many times that amount in extra customer revenue or the avoidance of a bad investment decision.

The problem is that with the advent of the internet and so much information at our fingertips, sometimes the difficulty is knowing where to start. The purposes of this paper are to hopefully make your life easier in knowing how to go about gathering market intelligence and what types of market intelligence will deliver useful insight.

STEP 1: DON’T REINVENT THE WHEEL

There is no point reinventing the wheel if the information we are after is already under our noses. However, the problem normally is that very often people either don’t know the information exists or they don’t know how to locate the information in the particular format they are looking for.

The best starting point for any project is to get key personnel from different backgrounds of the business to take part in a workshop type format (from board level down encompassing marketing, sales, operations, HR, technical, logistics – the whole business). This type of meeting can be very rewarding to assemble knowledge on customers, potential customers and competitors that otherwise would be held in individuals heads. Using this workshop format also helps clarify what external information has been collected previously and therefore obviates the need to spend money on collecting the information again (gone are the days of Market Research Managers within large corporates who used to know what primary research had been commissioned in the past). A huge amount of learnings can be gathered using workshops, especially if guided by a skilled external moderator.

Following this workshop output there will no doubt still be gaps in intelligence but there is no need to spend vast amounts of money on primary research. The expert desk researcher can quickly and inexpensively dig out data from a wide variety of sources to answer many of the questions that have already been asked. With the recent explosion of social networking, this too has resulted in a lot of information that can be quickly gathered inexpensively. This is not to say that it will definitely be correct, but information that is in the public domain has at least been subjected to the test of public scrutiny and it can be then challenged internally to help judge its accuracy.

Part 2 will be published Wednesday 29th September.

Posted in Articles, Market Intelligence, Nick Hague |
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