N P S

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Listening to the Voice of the Customer – are we asking the right questions with Net Promotor Score/ what are we really measuring?

 

I wanted to follow up on a piece written by John Dawes Ehrenberg-Bass  in 2018. The article had huge popularity and I imagine this was driven by the popularity of the NPS as a generally accepted best practice measure of the likelihood of positive WOM for a brand.  But John argues that it usually follows one or two questions to the customer about their recent service interaction so in that context it is more likely to be a measure of the satisfaction with the service experience than a measure of the likelihood of recommendation.  I totally agree. It might make senior management feel good that they have a high NPS but it’s next to useless if that number isn’t tan accurate reflection of the likelihood of positive work of mouth.

 

I’ve taken on a personal crusade against the way this question is framed and I’m sure it has absolutely no impact at all but it just feels good to have my say by giving high scores for my service interaction (if that is the case of course) and to then I jump ridiculously low for the NPS question.  I am then asked why that is the case and so my tirade begins. Like I said, I doubt anyone reads my tome but it feels better having had my say all the same.

 

John suggests asking “Have you recommended the company?” with some time frame such as a week or a month binding the question.  I think the recent interaction combined with the well-researched inability of consumers to recall anything with very much accuracy might provide some reliability issues and what we’re really concerned about here is validity.  Is the question measuring what it claims to measure?

 

I guess we first need to ask if the NPS question is asked because the company is looking to see how a recent service interaction has impacted an individual’s NPS (in which case we’d need to know what it was before the last interaction) or it is just a mean/global score that the brand hopes to increase over time and report back to the Board with a gazillion decimal places (another bug bear but for another time)?  Of course any increase would no doubt be attributed internally to superior service interactions but you’d have to be hopeful of a positive impact on market share for it to hold weight.

 

Maybe getting it right (or just a little bit better) isn’t too hard if the idea is to understand if the recent interaction is going to drive high levels of recommendation.  My concern as a brand-owner would be that regardless of how well I service a client, if that client is not in the habit of recommending a superannuation fund/airline/supermarket to family and friends, my brand might still end up with a low NPS.  I don’t think it requires too much more than some context. Perhaps we could expand the question with this approach “Based on this last interaction, if a family or friend asked you to recommend a superannuation fund, how likely would you be to recommend this fun?”  What do you think?

 

Take a look at the original article from John. https://rwconnect.esomar.org/why-net-promoter-score-is-actually-a-bad-tool-and-what-to-use-instead/

 

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@John_G_Dawes

@EhrenbergBass

P A C K A G I N G

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I’ve talked about my love of package innovation before, and I might be a bit presumptuous in assuming that everyone else feels the same way but come on – check out this fantastic eggsample (sorry, I just could not help the pun) called Smooth Egg Skin from Korea.  

 

This is a Peeling Foam that claims to contain eggs from the chickens of Mount Jiri in South Korea.  I’m not sure what Peeling Foam is but the pack was so attractive I couldn’t help buying it thinking I’d figure the use out later.

 

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Online has really changed the game for packaging.  If you’re 100% online, some things aren’t so important anymore and others that you need to double down on.  My eggsample was in a brick and mortar retailer, and that led to a couple of misses. First, I was unable to see what the product was because it was just the egg on show – no outer pack and no external branding so that the retailer had to make up a sign to explain what was in the egg.  This is a lost opportunity and means lost potential buyers. There was a tiny information sheet within the egg, but you don’t know that until after purchase or unless you open the egg at the shelf.

 

Secondly, while the egg-shaped pack was impressive, it didn’t display that well and took up a bunch of shelf space with a lot of lost space in between eggs, and that’s lost revenue if you are not maximising value from available shelf space.  It may have worked better for the supplier to come up with a display unit that came with the eggs that ensured that it had a square footprint. This could be recyclable so need only be supplied once to the retailer.

 

If you’re 100% direct online sales, that lack of a B&M retailer means you only get one shot at delivering a perfect product.  Make sure it’s going to hold form in transit – you don’t have the luxury of a retailer to check that there isn’t any denting or misshaping before it gets to the customer.

 

Continue to innovate but give due consideration to the customer you are trying to attract and the retailer who will help you do that.

 

Some thoughts…

  • Consider shelf standout if you’re selling offline – you want people to notice you and you can by using shape, colour, messaging and other cues better than your competitors.
  • If you’re 100% online, use that additional flexibility you have to create memorable packaging that evokes curiosity and repeat purchase.
  • Ensure your pack can convey to me the product use and attributes.  No matter how clever the package, there’s little point if I don’t know what’s inside.  Most shoppers are not insanely curious like I am.
  • At some point, this product will need to be transported either directly to a customer or via a retail outlet.  Make sure it will arrive safely and is durable enough to be free from defects or damage in transit.
  • Innovate but not by being so smart that you end up alienating your retailers by compromising their profitability.

N O S T A L G I A

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I’ve had my fair fill of nostalgia over this past week, and I was amazed at the comfort it brings.  That familiarity is a little difficult to articulate. I attended a school reunion in my home city of Adelaide last week; we had one 15 years ago, and for many of us it was the first time to see each other again since that last meet up.  The odd thing is that nothing much seems to have changed and the conversations were not directed at status or achievements but more about the future, families, happiness and health.  We talked about lasting memories we had of each other and teachers who loomed high in our recollections.   In the days following, there were numerous messages and emails about how much everyone enjoyed the chance to reconnect and their desire to do it again sooner rather than later.  Why?  I suspect that we’re comforted by nostalgia and it’s a safe place for us all because other than some people being a bit smarter than others at the time, our last memory when we finished school together, is of us all being on a reasonably level playing field.  No status issues, no class issues – just a bunch of middle-agers feeling like they were 17 again.

 

In the same week, I caught up for dinner with 4 friends that I have known since I was 5.  We do this on a regular basis, and except for a few years between school and having kids, we really haven’t had a break from each other.  That group has the same sort of comfort and nostalgia to it as the high school group.  We know each other so well that there can be no pretence in our interactions – and if anyone tries, they will quickly be pulled back to earth.  Why is that?  I expect it’s because we never have to pretend – we are always our authentic selves in a world where we often have to fake it a little.  It’s nice just to be who we are rather than what we’re expected to be.

 

I haven’t lived in Adelaide for 15 years, and it’s always great to visit and see what is changing and what stays the same.  The consistent things are family, friends, the beach, the fabulous wine, the Christmas Pageant (this year 300,000 people watched – that’s around 25% of the population), talk about Peel Street and the ease of getting around.  On the change side public transport has really improved, there are some great places to eat and drink (yes, Peel Street included), traffic is non-existent as much as everyone wants to tell you it’s horrendous, the airport runs smoothly and there seems to be an energy that some attribute to the change in government.  The quarter-acre blocks have all but disappeared (at least close to the city and the nearby coast), and there seems to be a plethora of elderly housing options opening up.  Let’s hope that doesn’t mean Adelaide is doomed to be the ageing capital of Australia but rather a place where everyone – old and young – can enjoy a great lifestyle.

R E T A I L E R S

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Retailers as Community Hubs

As bricks and mortar retailers strive to maintain relevance, I’m today reminded of their importance as hubs of the community.

 

Years ago, I recall accompanying my mother to “the shops”.  This was never a quick trip as it involved 3 or 4 outlets (the butcher, the fruit and veg shop, the bakery, the deli etc.) and the requisite pleasantries to be shared with the proprietor of each store.  Then we “ran into” friends and acquaintances to share a hello and a bit of gossip.  I’ve often wondered why we referred to it as “running into” people as there was never a collision involved but then I think there are a lot of funny terms from my childhood that I still don’t quite understand.

These trips were as social as they were practical.  As large format stores made their presence, the neighbourhood shops disappeared one by one yet we’ve seen a resurgence in cafes, and I’m wondering if cafes are just about good coffee.  I think not, and I suspect they have a meaningful role to play as community hubs, gathering spots and a place where we can belong.

 

When I moved to my current place 3 years ago, there was a small café opposite.  We live close to a ferry wharf and the mornings at the café were really bustling; however 10 days after moving in (yes! 10 days I kid you not) the shop closed.   No longer did we hear the sound of busy commuters grabbing their morning pick me up, stopping for a quick chat and wishing Proprietor Paul all the best for his day.  I often wonder what became of Paul.

 

Fast forward to today, and bakaliko & co has taken on that same store with a new offering of coffee, upper-end convenience items and a small range of cakes and lunch options. Shameless promotion from me?  Maybe – I have a vested interest in seeing this place survive as it services a small community with no other choices but I think its meaning goes deeper than pure commercialism.  I hope to see it become the morning and early evening hub that was the mark of its predecessor and for it to take on the role of a connector in our community.  I popped in today for a takeaway coffee, and three generations of a family from the apartments next to the café gave me a smile and a hello – our very first interaction in the 3 years I’ve lived opposite them.  Let’s see.

One of the biggest challenges for them is going to be their branding though I expect they’ll become known as the café at the ferry rather than by name.

 

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The branding is a little confusing and might take a while before everyone catches on to the Landa symbol that joins the baka to the iko – sometimes I think we can be too smart for our own good on the branding front and making recognition simple for customers is always a plus.

 

 

U S E R & C U S T O M E R

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Customer Experience and User Experience.

What makes a good experience for a customer?  Is it ease to transact, speed, intuitive process, comfort, innovation?

 

The truth is that it’s not a single or simple answer and for every individual it will be slightly different.  Identical demographics of age, gender, ethnicity and location are no guarantee that matching groups will behave, feel or respond the same way.  They will be impacted by an enormous number of influencing factors including upbringing, education, ethnicity and those influencing factors impact our responses.

 

To make things even more difficult, the answer to each of those elements can change for each individual.  Sometimes we’re feeling pretty adventurous and actually like moving out of our comfortable space while on others we just want to do things the way we’ve always done them.  If only we could target individuals rather than segments (more on programmatic advertising later).

 

The importance of customer experience has spawned a huge user and customer experience industry.  Of course wanting to align customer needs with delivery has been around for a long time and one could argue that Customer Experience is Customer Satisfaction under a different guise.  But I’d argue that it goes deeper and is broader because it encompasses all of the interactions a customers has with your brand or service.  Throw in User Experience and the waters get a bit muddy.  Are they all just buzzwords saying the same thing in a slightly different way?

 

I read recently that a senior UX researcher described his job as helping people interact better with technology.  I think that’s a neat description and one that makes a lot of sense to most people.  And consequently the measures used make sense – things like error rate, abandonment rate, clicks to completion and when these rates are high, the user experience is poor.

Customer experience is broader and looks at the total experience that a customer has with an organisation.  It encompasses the total of the old familiar measures of loyalty, satisfaction and likelihood to recommend.

 

Customer and User Experience rely on each other.  A bad experience with an app that is hard to move around and difficult to make sense of is going to result in a poor customer experience no matter how hard the marketers within the organisation try to tell you they’re the best option around.  User Experience plays an enormous role in the overall Customer Experience.  So, although they are different they are intertwined and form part of the total customer journey.

 

Call out if you need some help on creating the very best User Experience you can and in meantime, here’s some reading:

https://www.forbes.com/sites/shephyken/2018/07/15/customer-experience-is-the-new-brand/#262c9e817f52