So you want to be innovative & basics of customer centric innovation presentation given at the World Innovation Congres 2012

1. Customer Centric Innovation in B2B
Some notes, ideas and cases

2. Stefan Kolle (@flb_stefankolle)
Welcome
We’re no gurus, seminar pro’s or professors …
We’re just some guys who’ve been there too (and still are)

3. We do more than consult, we want to right what is wrong
Opinionated – a desire to make a difference – unafraid to take the high road
• + 10,000 articles
• 75,000 regular readers
+ 10,000 followers
+ 350,000 readers
Regular speaking & media
appearances
RecognitionThought leadership

4. 22/09/2016 4.
Our promise
We bring you new profit opportunities
Ways to make more
from the customers
you have today
Innovations to attract
your customers of
tomorrow.
FUTURELAB

5. Who will be the first Penguin?
There ARE no orcas!

7. FUTURELAB
Today
How to innovate in a customer centric way
Create some happiness
Create sustainable, organic
growth (i.e. make more money)
Our mission: A more customer-friendly world

8. FUTURELAB
8
Innovation is not just new products

9. Source: Mohan Sawhney, ©2002
Brand
Organisation
A 360° VIEW ON BUSINESS INNOVATION

10. FUTURELAB
Innovate Beyond the Product
PROCESSED FOOD PHARMA
AIRLINES BANKS COMPUTERS
UTILITIES
Source: The Doblin Group
Most industries focus just on one type of innovation, winners go “beyond”
Business
model
Finance
Networking Channel
Delivery
Brand Customer
experience
Core
process
Process.
Enabling
process
Product
performance
Offering
Product
system
Service

11. FUTURELAB
Deconstruction
What (non-obvious) assets do you have?
What assets do we really have?
Supplier Network
Logistics
Locations
Personae
Brand/reputation
Partners
Audience
Your people
Skills
Etc
How can we use these in a
different way?

12. What about the experience behind these processes?
Do we actually think about the real customer experience?
22/09/2016 12

13. The customer evangelists say:
• They will be more loyal
• Customers pay our salary
• They will talk well about us
• It’s important
The business hears:
• This may cost money
• This sounds complex
• Another marketing hype
• Yes, this will cost money
See customer experience as a “moral imperative”
Most companies
FUTURELAB

14. “Why should I allocate precious
budget to experience?”
You get paid in Euros,
Not in happy faces.
There’s only one problem with this
FUTURELAB
FUTURELAB

15. The good news
There is an intuitive case linking money to experience
The same coffee beans
The futures market (nov 2011)
in a package at the grocery store
at Nespresso
in a paper/plastic cup from a machine
from a machine in a theme park
in a cup in a big city café
at a deluxe restaurant
after proposing on the Piazza San Marco
Cost per cup
€ 0.01
€ 0.075
€ 0.40
€ 1.00
€ 2.20
€ 2.50
€ 5.00
I haven’t got a clue!
FUTURELAB

16. perception
80% of CEO’s believe their
brand provides a superior
customer experience
8 % of their customers agree
(Bain & Company)
22/09/2016 16

17. Personal experience in 15 industries … and counting
5:1
The worst I’ve ever seen
6000:1The best I’ve ever seen
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Experience is about making money
Happy customers are most profitable

18. Your product – your services – your people – your reputation/company – your agreements - …
Customers “judge” you by the experience you offer
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19. How experience makes money
Experience drives margin
Experience is about making money
Metro Bank 3 year savings = 3,04% … rivals = 4+%
OPEN 7 DAYS
(early & late)
FREE COIN COUNTING
NO STUPID BANK
RULES
LEAVE THE BANK WITH
YOUR CARD
HAVE A COFFEE
NEXT DOOR
(on us)
FRIENDLY & SMILING
STAFF
OPEN 7 DAYS
(early & late)
OPEN 361 DAYS A YEAR
NO ANNUAL FEE
NO LATE PAYMENT FEE
NO OVER-CREDIT LIMIT FEE
NO CASH ADVANCE FEE
NO BALANCE TRANSFER FEE
FREE ATM USAGE
…
(January 2011)

20. The bottom line: the ones with the best experience win
Ultimate premium experience
What you get
• best online shopping experience
• 365 day return policy
• free shipping/returns
• surprise “overnight” shipping upgrades
• extreme customer service
• occasionally send customers to competitor sites
• no discounts or coupons
How they do it
• no maximum call times
• no sales targets for customer service reps
• warehouse 24/7 with 100% product on inventory
• recruit & train on people values & fit
• active customer engagement (on site & off site)
across all social networks ‘go to the customer’
• EVERYONE is a customer-service agent
FUTURELAB

21. The bottom line: the ones with the best experience win
The ultimate discount experience
“Customer experience includes having the
lowest price, having the fastest delivery, having
it reliable enough so that you don’t need to
contact [anyone]. Then you save customer
service for those truly unusual situations.”
FUTURELAB

22. The bottom line: with customer experience we’re
We’re not talking about the fluffy stuff
“Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!”
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23. In fact
The experience IS the product
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24. Defining “what is the experience”
The experience IS the product
I sell overpriced, underspec’d
devices with poor battery life.
It just works
A low performance gaming
console with few titles.
This is cool!

25. This disconnect is the problem
Most companies roll the dice on customer experience
FUTURELAB

26. Pre-sales Sales After Sales
The Traditional Perspective
Search Evaluate Try Select Wait Search*** *** *** ***
* * * = Confidential
22/09/2016 26
The Customer’s Reality
Case
A radically different perspective
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27. RFP Development Delivery
The Traditional Perspective
Latent
Problem
Self-
study
Discuss
@ office
22/09/2016 27
The Customer’s Reality
Informal
RFI
RFP
Prep
RFP …
Case: Professional Services
A radically different perspective
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28. FUTURELAB
What is your customer’s journey?
Do you REALLY understand all the steps? Have you walked in your customer’s shoes?
22/09/2016 28

29. Customer Experience Management
Is about managing emotions at each step of the journey

30. 69% of consumers say emotions drive their
customer experience
Source: strategic resource development group, 2006
In B2B, the average impact of emotional
motivation on loyalty outweighs rational
motivation by 2:1 margin, in both goods and
services
Source: Synovate Meta-analysis of 275 studies, 2008
Remember
Experience is about emotions
The amygdala did it
FUTURELAB

31. Remember
Emotional Satisfaction

32. Remember
Emotional Engagement

33. FUTURELAB
Experience: rational and emotional
1
Drive technology, yet also:
- Connect to customer
needs (strategic,
operational, personal)
- Look beyond R&D
- Use open innovation and
co-creation to balance
speed and
accuracy/success.
Business Class Beds
• A rested manager is more profitable
• A nice bed, meal and movie is more
agreeable
Custom Procedure Trays
• When it comes to life & death
there’s no room for error (both moral
as financial argument)
Factory Chairs
• Workers who tire less quickly are
more productive
• I actually sit more comfortable

34. FUTURELAB
Listen , I shouldn’t say
this but I actually like
your December events in
London best, as it allows
me to get in some
Christmas shopping.
The experience IS the product
Case study: a training company
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It would be really
important for us to have
the opportunity to say
our prayers appropriately

35. FUTURELAB
22/09/2016 35

36. FUTURELAB
Insights
Not only in B2C!

37. Know your customer....”
These are insights too...
CEO: I need to be sure that the
strategy I want to propose will be
supported by the board.
“Nobody ever got fired for
buying....

38. Structural listening: You want to dig deeper
A short-cut: Toyota’s Secret Weapon
WHY?
WHY?
WHY?
WHY?
WHY?
FUTURELAB

39. Structural listening: You want to dig deeper
Case: a bank
I take care of my family,
my employees and my
community. Above
everything I want respect
and recognition for that.
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- Business support
tools
- Trusted Payment
management
- Time management
support

40. Lawyers
Whats the insight?

41. 41
ALS EERSTE KANTOOR IN NEDERLAND GAAT HVM DAAROM OVER TOT EEN GESEGMENTEERDE
MARKTBENADERING
1. beperkt aantal juridische
diensten
2. van hoge kwaliteit
3. doch lage “fixed”
marktprijs (incl.
abonnementsformule)
4. Met de juiste partners
voor de overige diensten
Een “first price” juridisch pakket dat
dankzij extreme proces-efficiëntie
in staat is de MKB’er bij te staan
met een
1. Gestandardiseerde kwaliteit
biedt doch met persoonlijke
“touch”
2. Dat fixed price werkt, dan
wel met een vaste offerte
vooraf, die ca. 25% onder de
huidige marktprijs ligt
Voor courante diensten
Een “middenklasse” juridisch
pakket dat dankzij innovatief
“account management” & interne
processen
Voor specialistische diensten
Een “topklasse” juridisch pakket
waar budgetten bewust worden
beheerd maar kwaliteit primeert
(wanneer het écht belangrijk is)
1. van de hoogste kwaliteit
(alleen partners)
2. Met 100% maatwerk qua
inhoud en prijs
Spin-out
REMOVED

42. Structural listening: You want to dig deeper
Remarkable B2B “classic”: Livevault
Activity:
• Note the insights you gain
• Share them with the group
FUTURELAB

43. Surveys – market research – customer feedback systems …
Do you listen, or gather information to write reports?
Aren’t we already
listening enough?
FUTURELAB

44. FUTURELAB
Make the customer a point of continued conversation
Case: P&G India – did you speak to a customer?

45. But obviously you can’t speak to everyone
A structural listening mechanism

46. Enter Fred Reichheld
We need something else …
Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
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47. 0 1 2 3 4 5 6 7 8 9 10
How likely are you to recommend
The ‘ultimate’ question
Detractors: Dislike Promoters: DelightedPassives: Satisfaction
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48. Customer Delight is “the” biggest driver of future business growth …
Likelihood to Repurchase (B2B-markets) Share of Wallet (B2B-markets)
“delighted customers are 5x more likely to
(recommend) repurchase”
“at the point of delight, there is an exponential
increase in the share of wallet”
Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf
Customer Delight
The game is not about “customer satisfaction” … it’s about “delight”

49. Customers who recommend you, are more profitable
The ‘ultimate’ question – most important finding
 spend more
 negotiate less
 stay longer as customers
 are more open to upselling
 are easier to service
 upgrade quicker
 are ready to refer to others
 increase staff morale
 etc.
Customers that are so happy they
are likely to recommend a company
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50. 0 1 2 3 4 5 6 7 8 9 10
This time, there is a money link
The ‘ultimate’ question – most important finding
Detractors: Dislike Promoters: DelightedPassives: Satisfaction
FUTURELAB

51. This time it’s personal
The main reason
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52. And its even stronger in B2B
The main reason

53. Promoters are more profitable
Philips used customer experience to drive revenue
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54. 5:1
The worst I’ve ever seen
6000:1The best I’ve ever seen
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Promoters are more profitable
Personal experience in 15 industries … and counting
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55. Derive recommendations for
improvement
Implement
initiated action
NPS survey
Plan and initiate
concrete actions
Prepare and
analyze results
Execute Feedback
Calls
Initiate
Quick
Fixes
Listen to each customer
Tactically close the loop
FUTURELAB

56. A structural listening mechanism
B2B: Look at individuals, not at accounts
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57. A structural listening mechanism
NPS driven innovation
Dropoff Distribution Selfmanaged BBQ Academy

58. FUTURELAB
Make the customer a point of continued conversation
Case: Orange

59. The people behind the processes

60. Reminder: it’s not just about direct buyers
Case: patient-centric management at Resmed
patients
Sleep medicine
& non-invasive
ventilation
nursesdoctorsadministrationinsurance
patient familygovernment anyone else
of relevance
FUTURELAB

61. 22/09/2016 61
Who is the buyer vs who is the influencer?

62. 22/09/2016 62
We know who’s the influencer – but what’s the real story?

63. FUTURELAB
Doctors revolt

64. Observing your customers
They key to understanding

65. FUTURELAB
Seed Farmer Auction Super
market
Consumer
Info
Sharing
Active observation
& insight gathering
Sales
Argumentation
Case: Syngenta

66. 22/09/2016 66.
Syngenta really knows its customers

67. 22/09/2016 67.
Help your customers help their customers

68. Co-Creation
Help us develop
Customer Council
Guide us
Customer Communities
Help each other
Beware: these are not employees!
Dont try to be too controlling – let them become selfmanaging.
Dont pay them in cash – pay them respect.
Back at your office
Activate your most loyal and enthousiast customers
FUTURELAB

69. Savouries @Unibake
Case

70. 70
Wireless Router
Your iron
Finally....
REMOVED

71. A few suggestions from a guy
who’s been there before.
Making Customer Centricity Happen
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72. Always remember
It’s a balancing act
BE 100%
CUSTOMER-CENTRIC
Structural Change
ORGANISATIONAL
STABILITY
Quick & Easy Wins
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73. Make sure your people see the value in customer experience
#1 Show Me the Money
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74. Build a mechanism to close the loop on every customer at every touchpoint
#2 Listen & Act on the Customer Voice
LISTEN TO
THE
CUSTOMER
ORGANISE A
MEETING ON
FINDINGS
AGREE ON
ACTIONS
0 1 2 3 4 5 6 7 8 9 10
Disarm Detractors
Delight
passives
Draw lessons
on promoters
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75. Build a mechanism to close the loop on every customer at every touchpoint
#3 Empower your people to go beyond the script
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76. (cc)ZachKlein
“I’m sure this is all interesting but I don’t
have time for the fact that customers find
our bills too complex.
I don’t deal with the customer.
So I really think I shouldn’t be here and
do something useful instead.”
Head of IT
Include everyone in your customer experience efforts
#4 Link every task to its customer impact … or kill it
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77. FUTURELAB
Words, action lists and process maps are meaningless
#5 Set the example & start a movement

78. FUTURELAB
Call-out
So, what will you do?

79. FUTURELAB
FUTURELAB
A structured approach
1. Show me the Money
2. Listen to the Customer’s Voice
3. Build a platform for aligned action
4. Manage the customer experience
5. Future-proof your channels
6. Manage all your social media
7. Build a customer movement
8. Walk the customer talk

80. FUTURELAB
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