how to measure intangibles

CUSTOMER SERVICE

Determined by

Customer loyalty

Measuring Intangibles

BRAND AWARENESS

Determined by

Reputation

Customer loyalty is created through...

.

RELATIONSHIPYou must know your customer (relationship)

VALUES You must understand what they value (values)

EXPERIENCEYou must honestly care (create customer experience)

Customer Experience is more than price and good service

Everyone agrees the customer experience is not always about the cheapest price

Customers expect good services and good products. Good merely meets the minimum requirement.

Strive for standout, outrageously great service. Something extreme, remarkable, sensational.

One-dimensional (The more the

better)

Add value with these

Unexpected Value

This is where you enhance customer

experience

Customer Experience

Core products and services: price will drive the decision

Right price, good quality, reliable, good basic experience

Knowledgeable staff, available, accuracy, information and advice, increased functionality

Access, expertise, pro-activity, status, uniqueness, innovation, customisation, elite service

Unexpected value is where trust is built, which loyalty and reputation

Reputation is created through...

Building a brand is about creating a relationship based on a set of values the consumer /customer relates to.

It is the sum of all the experiences the intended customers have with a company, product or service.

RELATIONSHIPVALUES

EXPERIENCES

Customer Loyalty and Reputation are created through

If the quality of my relationship with my customer, together with my ability to live out and identify with his values together with the customer experience I provide

Leads to TRUST

And TRUST leads to loyalty and reputation

Customer Loyalty

Customer Service

and if . . . Trust affects bottom line

The proof of the value of trust in business is compelling

“Organizations with high trust outperform organizations with low trust by nearly three times.” (Watson Wyatt 2002)

Do I need to measure trust?

What is trust and how do I measure trust?

The dictionary defines trust as reliance on the intention and ability of another

Thus:I believe they are able to do what they say

I believe they intend to do what they say

If they fail in an area I believe there is a good and acceptable reason

Customer based measure

What if

I measure trust by my customer’s grading on

Whether I am able to do what I sayWhether I have the intent to do what I say (at all levels of the

business)Whether they believe/ know our mistakes only occur when there is something valid and genuine behind

the cause of the mistake (this belief will depend on how we react to our errors)

Trust can help me out perform my competitors by three times according to some studies....

Should I be measuring trust?

Trust; non negotiable?

Stephen Covey has this to say on Trust:

Trust in the old economy was the natural outcome of a select few, great organizations. Today, it is the price of entry into the new, global economy.

In today's world, you are not only competing with others in your state, but also on your continent, and the five other civilized continents on the planet.

You are negotiating in cultures in which trust is non-negotiable.

Trust and leadership

Stephen Covey continues:“We contend that trust is about competence and accountability. Trust can be learned, it can be measured, and it can be grown within your organization.

Its competitive advantage cannot be replicated.

Our definition of TRUST is simple: It is both character (who you are)

and competence (your strengths and the results you produce).

Trust is the enabling power of leadership influence. It is not soft, slow, risky , or easy.

It is a measurable, definable component of all leadership success”

Constructs that form outrageously great service

Quality in products, reliability in serviceKnowledgable & available staffGreat valueConvenienceConsistency, and meeting needsPro-activityTrust AuthenticityInnovation

So should we seek to measure

Customer loyalty

Reputation

Trust

Overall, more companies taking an active role affecting and managing their reputation are seeing positive results, while those that are not continue to see their reputation decline.

We buy and recommend products and services based on a company’s reputation –

as experienced in customer service,

and perceived through the display of high ethical standards. (values)

trust

Trust will bring me word of mouth business. word of mouth is the primary factor behind 20 to 50 percent of all purchasingdecisions. Word of mouth can prompt a consumer to consider abrand or product in a way that incremental advertising spending simply cannot

Understanding how and why messages work allows marketers to craft acoordinated, consistent response that reaches the right people with the right content in the right setting.

Word of mouth

translate brand attributes into requirements for how everyone in the business must interact with customers

augment data crunching with some old-fashioned techniques like talking to customers and observing their experience

Treat customer experience as a competence, not a function. Delivering great customer experiences isn’t something that a small group of people can do on their own — everyone in the company needs to be fully engaged in the effort.

What drives Word of Mouth

a consumer is significantly more likely to buya product as a result of a recommendation made by a family member than by a stranger.

the word-of-mouthreceiver must trust the sender and believe that he or she really knows the product orservice in question.

which dimensions of word-of-mouth equity is most important to your product or servicethe who, the what, or the where. In skincare, for example, it’s the what; in retail banks, the who.

Word-of-mouth equityanalysis can detail the precise nature of a category’s influentials and pinpointthe highest-impact messages, contexts, and networks.

Equipped with these insights,companies can then work on generating positive word of mouth, using experiential, consequential, and intentional.

The value of a brand

Richard Branson, founder of Virgin Airlines“Creating brand value is like creating a personality.”

From the early days Branson decided that the Virgin personality would stand for the little battler fighting the multi - national in a fun and irreverent way. The longer the message is conveyed the stronger it becomes in the consumers mind and the more valuable the brand.

“Brands can be the most valuable asset of any business. A good brand can increase business value by up to 30%.

If you start branding now, growth is exponential, slow at first but fast later. Consistency is what built the Virgin empire. Branson follows a formula and sticks to it.

if your company is trying to be all things to all customers

Great service doesn’t come from a software upgrade or new machinery. It comes from a company-wide commitment to be a unified, no-excuse-service provider to your current customers while consistently upgrading all departments to meet the market demands of the future

Obsess about customer needs, not product features. Rather than racing to bring new product features to market, companies need to refocus on the needs of their customers — who might even want fewer features.

What should we obsess about?

Defining Branding

Branding is not a discretionary activity – it is a non negotiable fundamental.

It is about finding the truth. (Can you/are you delivering on your promise? Are there credibility gaps? How robust is your company culture – or is it merely all smoke and mirrors? What experiences do your staff, your suppliers and your clients have of you? What do they really think ?)

This becomes your reputation

Reputation is paramount

Harris Interactive findings stated after a survey of America’s 60 most visible companies that : 71% of consumers will buy, recommend and invest in companies that concentrate on building their corporate reputation.

Stephen Covey has this to say on Trust:

Trust in the old economy was the natural outcome of a select few, great organizations. Today, it is the price of entry into the new, global economy.

In today's world, you are not only competing with others in your state, but also on your continent, and the five other civilized continents on the planet.

You are negotiating in cultures in which trust is non-negotiable.

Stephen Covey continues:“We contend that trust is about competence and accountability. Trust can be learned, it can be measured, and it can be grown within your organization.

Its competitive advantage cannot be replicated.

Our definition of TRUST is simple: It is both character (who you are)

and competence (your strengths and the results you produce).

Trust is the enabling power of leadership influence. It is not soft, slow, risky , or easy.

It is a measurable, definable component of all leadership success”