Corporate Love Meter 2013
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Transcript of Corporate Love Meter 2013
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The Corporate
Love Meter 2013
The Sad State of Company Customer Love Relationships:
They are tired and unexciting relationships that will be
easily stolen by a new shining suitor who will be willing to
excite and delight the customer.
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2013, Strativity Group: 2 www.strativity.com
Corporate Love Meter 2013 [email protected]
Table of Contents
Executive Summary ......................................................................................................................... 3
Whats Love Got To Do With It The (Not) Romantic Novel Version ............................................. 4
State of Corporate Love .................................................................................................................. 5
The Characteristics of Corporate Love ............................................................................................ 6
Customer Communication ............................................................................................................... 7
Obstacles to a Successful Love Relationship ................................................................................. 8
Love Plans for 2013 ......................................................................................................................... 9
UK Companies Succumb To Silent, Non-Loyal Existence ............................................................ 10
Executive Optimism Hindered by Non-Executive Pessimism ....................................................... 11
How To Develop Passionate Love with Your Customers - Recommendations ............................ 12
About the Study ............................................................................................................................. 13
About Strativity Group, Inc. ............................................................................................................ 13
Authored by:
Lior Arussy
Edward Murphy
Ildi Varga
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 3 www.strativity.com
Corporate Love Meter 2013 [email protected]
Executive Summary
As corporations worldwide are seeking to differentiate themselves and gain their
customers love, we ventured to understand their readiness for such relationships.
Following the insights of 402 executives and non-executives who were surveyed duringJanuary 2013, the verdict is clear; companies are not great lovers.
The Corporate Love Meter 2013 Study Highlights:
74% of respondents characterize their customer relationship as an open
marriage or worse
Only 29% are focusing on emotional engagement (love and admiration) with
customers
37% admit that they have become comfortable in the relationship
29% claim that money became an issue in their relationship
25% of US respondents admit that they only speak when they fight (complaint
management)
Although 52% plan to sweep their customers off their feet in 2013, the likelihood of that
happening is quite slim. The study identified serious gaps between executives and non-
executives perspective and while executives who own the big picture believe that they
would do something different to rejuvenate the relationship, the majority of non-
executives are sticking to business as usual approach. Therefore, the executive vision is
less likely to be brought to life.
UK corporations have shown a gloomier approach to their customer relationships
compared to their US counterparts.
Every brand aims to establish an emotional connection with customers. Based on the
Corporate Love Meter 2013, companies have a long way to go to fulfill that promise.
Combining the current economic challenges and customer empowerment through social
media, it is time companies venture to learn how to become true, loyal, loving partners
for their customers.
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 5 www.strativity.com
Corporate Love Meter 2013 [email protected]
State of Corporate Love
While customer relationship strategies are geared to maximize customer wallet share, it
seems the majority of the participating companies failed to achieve engaged customer
relationships.
The majority of companies report non-loyal customer relationships with only 26%
reporting a monogamous relationship. The good news is that few, only 5% report their
relationship is a one night stand based on price. The majority of companies report that
they are in an open relationship where there customers are examining competition
reinforcing the need for emotional connections and value propositions. Such
relationships, needless to say, tend to be transactional in nature focusing on price and
less on long-term value. When customer fidelity is gone, the margins follow suit.
Exhibit 1: Nature of Relationship
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 6 www.strativity.com
Corporate Love Meter 2013 [email protected]
The Characteristics of Corporate Love
Every marketing executive aspires to have emotionally engaging relationships with his or
her customers that transcend price considerations and assure long-term relationships
and profitability.
The majority of the relationships, as the study indicates, are utilitarian in nature. Theyare characterized by rational needs such as time/convenience, price, and reliability. Only
29% of the respondents claimed to have an emotional connection with their customers.
It seems that executives and non-executives have reduced their customers to rational
creatures devoid of any emotional needs. Or, they failed to see any way to create such
bonds with their customers.
Exhibit 2: Customer Expectations
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 7 www.strativity.com
Corporate Love Meter 2013 [email protected]
Customer Communication
Communication is the cornerstone of every relationship. Ask any marriage adviser and
they will point to lack of communication as a sign of a relationship in crisis. The same
rule is equally applicable in commercial relationships. Most respondents declared that
they communicate privately when convenient to sales, expiration or when customers
complain. Only 23% surprise each other and try to create an exciting relationship that is
always evolving and growing. This attitude demonstrates little to no real investment on
the part of companies. No wonder customers keep their options open and refuse to
commit to a monogamous relationship.
It is important to note that, among US respondents, 25% declared that they only
communicate when they fight (e.g., customer complaints) which is the wrong time to
establish communication.
Exhibit 3: Communication with Customers
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 8 www.strativity.com
Corporate Love Meter 2013 [email protected]
Obstacles to a Successful Love Relationship
The greatest obstacles in customer relationships are getting comfortable and money
issues (not seeing the value). It is complacency all over again when each side takes the
other side for granted and fails to invest in the relationship. Companies on their part
keep on seeking new customers while investing little if at all in existing customers. And,
in return, customers keep on checking the competition and refuse to commit fully to a
single relationship.
The failure to see value Money becomes an issue usually stems from lack of
rejuvenating the relationship. What used to be exciting is now part of the norm. In the
absence of new, exciting innovations, the relationship becomes predictable and
eventually boring.
Twenty percent say the company and the customer want different things it is time for
counseling to realign each others desires.
Exhibit 4: Obstacles
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 9 www.strativity.com
Corporate Love Meter 2013 [email protected]
Love Plans for 2013
Most respondents want to reignite the love, with 52% claiming they will sweep their
customers off their feet by providing exceptional customer experiences and 51%
planning to try something new in the form of new products. This is wonderful news as
long as they will be transformed from plans to realities.
Exhibit 5: Plan For 2013
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 10 www.strativity.com
Corporate Love Meter 2013 [email protected]
UK Companies Succumb To Silent, Non-Loyal Existence
In times when UK-based companies must reinvent themselves to address the economic
challenges, we find their corporate love meter to be worse than among their US
counterparts. The UK Corporate Love Meter 2013 indicates gloomy relationships mired
by more complacency and less optimism about the future.
The Corporate Love Meter 2013 indicates that UK companies are:
Significantly less likely than US to believe they are in a monogamous relationship
Three times more likely than US respondents to believe there are in an on-again
off-again (indecisive) relationship.
Three times less likely to only communicate when there is an issue
Significantly less likely to plan to sweep customers of their feet, try something
new and shower with gifts
Exhibit 6: Nature of Relationship US UK
Monogamous (They give 100% of their business to us) 32% 22%
On-again off-again (Indecisive) 5% 15%
We only talk when we fight (Complaint management) 25% 8%
Sweep them off their feet (Provide exceptional service) 56% 43%
Try something new (Innovation New products) 54% 44%
Shower them with gifts to keep them loyal (Rewards
Loyalty Programs)20% 7%
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 11 www.strativity.com
Corporate Love Meter 2013 [email protected]
Executive Optimism Hindered by Non-Executive Pessimism
If executives are the heart of the organization, non-executives are the hands and
execution arms. Executives demonstrate a big picture view with more optimistic future
and investment. Non-executives, on the other hand, are less optimistic, and, therefore,
less likely to execute.
Exhibit 7.1: Customer Expectations - Comparison
Only 48% of non-executives are planning to sweep customers off their feet through
exceptional customer experiences vs. 66% of executives.
For executives to develop and deliver better love relationships, they need to get their
non-executives engaged and committed. But it is not just about communication and
commitment; executives need to provide a clear roadmap for execution. Currently, as
the Corporate Love Meter 2013 study indicates, non-executives are running on their
own convictions and are disconnected from their executives view and plans.
Exhibit 7.2: Plans for 2013 Executive vs. Non-Executive Perspective
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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2013, Strativity Group: 12 www.strativity.com
Corporate Love Meter 2013 [email protected]
How To Develop Passionate Love with Your Customers
Recommendations
Take an honest look in the mirror: Measure the emotional commitment you
have to your customers and how they view your commitment. One of the
biggest obstacles companies face is thinking they are already doing everythingthey can to provide the best experience possible. In order to make change, you
need to understand where you really stand.
Time to fall in love again: Reconnecting with your customers cannot happen
with a haphazard plans or a siloed companies. A detailed companywide strategy
needs to be created and communicated it requires that all employees
(customer facing and non-customerfacing) to be onboard. Many companies will
need to go back to basics by learning whom their customers are and
understanding their needs and wants.
Engage in emotional not only rational love: Companies are well trained on
monitoring the rational market drivers such as price and product innovation
while ignoring the highly influential emotional experiences. Understanding and
appropriately responding to the customers emotional needs is a prerequisite for
customer engagement.
Get your non-executives on board: Internal communication and employee
education are critical. Far too often excellent strategies are created but fail
either because they are not communicated throughout the company or
employees are not provided the tools to succeed. Non-executives are the linkbetween upper management and the face of the companys front line
employees.
Start communicating more often not only when you need something or when
customers contact you because of an issue: All communications are an
opportunity to make customers feel important and special.By focusing solely on
customer issues when they arise, you will miss opportunities to demonstrate
that you know and understand your customers. Tell them what you are doing to
make their lives easier, how youre helping their community or send them a
birthday wish just to show them you care. Anticipate their needs and findunexpected ways to communicate with them to keep the romance alive.
Surprise them, sweep them off their feet: Having quality products, innovative
products and competitive pricing are not enough for todays customers.
Companies must define the experience they want to be known for and
employees must be provided the tools to deliver the target experience.
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/ -
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