It's All About The ExperienceA blog about managing and improving customer experience and improving profits.https://rrassoicates.azurewebsites.net/Rons-BlogAI In CX Improvement? Five Great Exampleshttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/33/ai-in-cx-improvement-five-great-examples-of-how-its-doneArtificial Intelligence,Conversion Improvement,Customer Complaints,customer experience,Customer Relationship Management,Customer Service,Product Management,Profit ImprovementTue, 12 Mar 2024 14:40:11 GMT<p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">As a lifelong tech enthusiast and internet start-up cofounder, I have embraced technology solutions in my daily life and business career. I have been here for it, from using primitive neural networking software in financial planning to deploying&nbsp;robot-cleaning devices at home and asking Google Max to use its collaborative filtering capabilities to play the music that Google thinks my dinner guests would like.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">However, as a professional with a lifetime of work in the brass-tacks of customer experience (CX)&nbsp;management, I was skeptical about artificial intelligence&#39;s effectiveness in addressing problems in the customer&nbsp;realm.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">My recent research on AI applications in customer experience improvement has been enlightening and, to be honest, sobering! Below are five powerful examples of companies using AI to revolutionize customer experience management at scale. Several examples are likely disruptive and industry-changing, but <em>all</em> are worth understanding. Let&#39;s dig in!</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Disney&#39;s Magic RFID Data Creates Magical Experiences</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Disney&#39;s RFID Magic Band technology provides my first example. The MagicBand is a bracelet Disney gives customers at its theme parks. The technology &quot;magically&quot; provides users with a room key, theme park ticket, and credit card all in one device, allowing guests to enter parks, unlock hotel room doors, pay for purchases, check in for rides, and sync photos to their account with a simple tap of the wrist (Hollander, 2022). The technology eliminates the need for guests to carry multiple items and reduces waiting times at ticket booths. Additionally, MagicBand enables staff to provide personalized experiences by quickly identifying guests and anticipating their needs based on data collected from the bands (Hollander, 2022). The appeal of this technology for frictionless purchasing and upsells is intuitively obvious on the revenue side.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">But there is more. There is the data. Disney uses the information from the MagicBand to optimize customer experience. It collects this information with RFID sensors installed throughout its parks and resorts. The data allows Disney to connect each tap of the MagicBand to a specific guest&#39;s profile, enabling data scientists to analyze customer behavior. Predictive analytics allow Disney to open and close attractions to maximize customer satisfaction, optimize staffing, and better manage restaurants, attractions, and park queues. (For more on Predictive Analytics and its applications, please see my previous <a href="https://www.ronrassociates.com/Rons-Blog/PostId/11/small-company-big-data-huge-impact">blog post on Big Data</a>.)</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">In terms of personalization, these bands help curate a visit personal to the last detail. The technology can orchestrate a timely appearance of one&#39;s favorite Disney character or a surprise birthday message during fireworks. The MagicBand technology has been a significant investment for Disney, with CEO Bob Iger approving approximately a billion dollars for its implementation (Sweeney, 2013). Based on what I have learned, it was a worthy investment.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Uber&#39;s COTA - Improving the Handling of Customer Tickets With AI</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Imagine the customer service challenge of handling hundreds of thousands of customer messages in thousands of cities worldwide every day. Uber&#39;s Natural Language Processing (NLP) System, COTA, enhances customer experiences. COTA, short for Customer Obsession Ticket Assistant, uses machine learning and NLP models to assist agents in providing better user support. NLP breaks words and phrases into components the computer can understand, then buckets them into response categories. COTA empowers agents to resolve issues more accurately and swiftly, reducing ticket handling time by about 10% (COTA: Improving Uber Customer Care With NLP &amp; Machine Learning | Uber Blog, 2018).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">COTA&#39;s success led to the development of COTA version 2, which integrated deep learning models into Uber&#39;s machine learning platform. Uber eponymously named the deep learning system Michelangelo. This second-generation system significantly outperformed its predecessor regarding accuracy, ticket handling time, and customer satisfaction. Additionally, COTA v2 introduced a model management pipeline to ensure continuous model updates so that Uber&#39;s Data Science team could continuously improve the model.&nbsp;&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">The second version also focused on enhancing the extensibility of future NLP models within Uber. According to Uber, adopting deep learning in COTA v2 significantly improved the breadth of support resolution solutions for Uber&#39;s diverse services and simplified service delivery across multiple languages and regions, thus making the system much more adaptable to future use cases as Uber&#39;s business grows. (Scaling Uber&#39;s Customer Support Ticket Assistant (COTA) System With Deep Learning | Uber Blog, 2018).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">In addition to CODA, he has been working with Converseon, a company focused on the AI specialty of sentiment analysis. Customer sentiment analysis involves identifying and categorizing the text&#39;s positive, negative, and neutral emotions. It assists brands in learning what consumers are saying about them in online testimonials and posts. However, Customer sentiment analysis has an added benefit in offering marketers qualitative and quantitative data that goes beyond the &quot;what&quot; to clarify the &quot;why.&quot; Uber used sentiment analysis to help manage its leadership transition and address customer satisfaction in 2017 (Dupre, 2017). More recently, Uber has used the technique to analyze and apply changes to Uber&#39;s rideshare maps. It uses the technique to identify customer dissatisfaction with its routing and identify and make needed changes based on customer feedback (Uber Engineering, 2018b).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong><img alt="Robot Placing Customer Rating 5-Star Ranking" src="/Portals/0/AdobeStock_668433937.jpeg" style="width: 400px; height: 267px;" title="Robot Placing Customer Rating 5-Star Ranking" /></strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Airbnb Solving Big Platform Problems During Hypergrowth</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Airbnb faces the challenge of managing a vast global platform of users and hosts on its platform and developing scaleable ways of creating optimal experiences for both. Airbnb has used Artificial Intelligence and Machine Learning in a variety of ways. To improve conversions on listings, the company used image classification computer models to label millions of listing photos accurately, improving the display of beautiful assets in listings (Standley, 2023). This approach allowed for more personalized experiences by enhancing user search, discovery, and personalization through machine learning ranking models based on user engagement data like clicks and booking rates.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">To solve a platform-wide problem using booked properties as party houses, Airbnb intensified its background check procedures by implementing advanced artificial intelligence. This initiative scrutinized wide-ranging online public data &mdash; including social media, blogs, and search results &mdash; to detect signals of potentially harmful behavior by users seeking accommodations. This patented process aimed to assess the authenticity and dependability of guests by contrasting online profiles with those processed by AI, thereby eliminating discrepancies and highlighting genuine identities (Owen, 2021).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">The company also harnesses an algorithm to evaluate activities across external online platforms, formulating a &quot;trustworthiness score&quot; for each guest. In concert with Trooly, a firm acquired by Airbnb in 2017, the breadth of data assessed encompasses online posts and comments and extends to database entries and professional memberships. Reservations flagged as high-risk based on this metric are then treated to a meticulous manual review by Airbnb&#39;s team, underscoring their commitment to safeguarding the community (Owen, 2021).&nbsp;&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">With these enhanced measures and investments, Airbnb has invested in a secure environment for its global user base. It affirms that it will execute background verifications for guests from the United States and India within ten days before their stay (Owen, 2021).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Airbnb has utilized machine learning in various ways to combat fraudulent activities on its platform. One approach involves using network analysis to identify potential scam listings. By analyzing data on Airbnb listings, including reviews and host connections, researchers have uncovered networks of connected hosts with fake reviews, indicating potential fraudulent behavior (McAleenan, 2022).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Airbnb also employs machine learning techniques to fight financial fraud. They use &quot;targeted friction&quot; to prevent fraudsters from using stolen credit cards on the platform while minimizing negative impacts on genuine users. (Friction is ideally something that blocks a fraudster, yet it is easy for a good user to satisfy.) This proactive approach involves leveraging machine learning, experimentation, and analytics to identify and block fraudsters effectively (Fighting Financial Fraud With Machine Learning at Airbnb, 2018).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Airbnb employs image recognition technology to process and understand visual evidence through user photographs. When combined with customer comments, this AI guides the complaint-handling process, ensuring it takes the right actions to address the issue swiftly and accurately. Airbnb&#39;s AI has been trained to identify a cleanliness issue and analyze its severity. The automation and level of precision ensure that complaints are categorized relatively and consistently, something only possible with AI (TensorFlow, 2019).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>MacDonalds - Making Fast Food Dynamic</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">McDonald&#39;s Restaurants has harnessed predictive analytics and artificial intelligence to enhance their menu options and drive increased sales. MacDonalds is leveraging technology from Dynamic Yield, a Tel Aviv-based firm specializing in personalization and decision logic. Using this technology, McDonald&#39;s has begun to offer personalized suggestions on digital displays based on customer preferences and external factors such as time of day, weather, and previous menu choices. A snowy day might trigger the placement of hot chocolate as a menu option, while a hot day might cause the system to suggest lemonade (Kamal, 2023).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">The technology considers factors like time of day, current order selections, restaurant traffic, the popularity of items, and weather conditions and will update digital restaurant and drive-thru menu displays (Owen, 2022). MacDonald has tested the technology with kiosks, websites, drive-throughs, and restaurant menu displays.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">To optimize its supply chain order, McDonald&#39;s also plans to connect the AI and menu data recommendations with its supply chain network, improving the management of stock levels (McDonald&#39;s Is Using AI and Data to Optimize Its Supply Chain, 2023). By linking predictive customer demand with stock levels at individual stores, McDonald&#39;s hopes to optimize its inventory management and reduce waste throughout the entire chain.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Dynamic Pricing at Wendy&#39;s</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">A use case I am less sure about is Wendy&#39;s plan to use AI to develop dynamic pricing for its restaurants. Wendy&#39;s is using AI to develop dynamic pricing for its restaurants. The chain hopes to adjust prices based on demand and other factors like time of day and traffic levels. This strategy involves fluctuating prices similar to surge pricing used by ride-sharing apps like Uber or Airbnb. The fast-food chain plans to follow MacDonald&#39;s lead and invest in digital menu boards to enable these changes, with a similar focus on enhancing customer experience and increasing sales through suggestive selling and menu adjustments (Yeo, 2024)</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">CEO Kirk Tanner mentioned that Wendy&#39;s will trial dynamic pricing, potentially raising prices during busy times and lowering them during quieter periods. This move aligns with Wendy&#39;s broader investment in technology to enhance its digital business, including implementing AI-enabled menu changes and suggestive selling tests based on factors like weather. While dynamic pricing is typical in various industries, its application in fast food is relatively untested. For the future, Wendy&#39;s aims to modernize its operations by leveraging technology such as AI chatbots for drive-through orders. (Rogelberg, 2024).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>How Can AI Help Your Business?</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">So, how can you determine whether AI can help your business? As we have seen from the examples above, Artificial intelligence and Machine Learning (ML) can significantly benefit businesses that use them. AI models are good at completing repetitive tasks quickly and efficiently at scale but must be appropriately trained. They are rarely infallible.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Here are some ways of thinking about how these tools can apply to your business. Applications of AI/ML include:</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Driving Revenue Growth: </strong>AI can uncover new opportunities for products and services. As we saw with several examples above, AI tools can identify pricing, pairing, and upsell opportunities, improve service speed, and, through Natural Language Processing, provide customer insights for informed decision-making (Martech, 2022).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Boosting Efficiency: </strong>AI can automate processes, optimize supply chain operations, and, as we saw with Uber&#39;s example, help in decision-making by analyzing data faster than humans (COTA: Improving Uber Customer Care With NLP &amp; Machine Learning | Uber Blog, 2018). AI Automation can improve customer experience by providing faster decisions in consumer finance, insurance underwriting, and claims processing, for example, by replacing processes that took weeks or months with those that take seconds. Faster decisions mean higher transactional conversion rates, raising revenue (Finance Magnate Contributors, 2023).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Improving Customer Service: </strong>AI tools like chatbots can enhance customer service by providing prompt responses and reducing wait times. A chatbot, kiosk, or online food ordering process always gives you exactly what you requested in your preferred language. (How AI and Machine Learning Can Impact Your Business and Small Businesses, n.d.)</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Enhancing Product Quality Assurance:</strong> Machine learning can quickly identify patterns in large datasets to ensure product quality and detect fraud or cybersecurity threats (How AI and Machine Learning Can Positively Impact Your Business and Small Businesses, n.d.)</span></span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;"><span style="font-family:verdana;">Where to Start?</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">When considering implementation, I looked back at a Harvard Business Review article by Wharton AI Professor Kartik Hosagnagar and Apoorv Saxena. Saxena is the former head of AI at JP Morgan Chase and cut his teeth as the head of the AI Vertical at Google before that. Hosnegnagar and Saxena&#39;s advice on building an AI program in large organizations has aged remarkably well. The two AI leaders suggested a slow simmer rather than a rapid boil to implement AI in a large organization (Hosanagar, 2018).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Here it is in a nutshell.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">1. <strong>Start with good, clean data.</strong> Start by developing data gathering and management capabilities throughout the organization. Early data projects help organizations gain experience with large-scale data gathering, processing (cleaning), and labeling&mdash;skills that companies must have before embarking on more ambitious AI projects. Establishing organizational learning on developing good data hygiene in a new AI platform is far more important than seeing a significant impact in the short run (Gruttadauria, 2024).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">2. <strong>Develop a portfolio of short&mdash;and long-term projects </strong>rather than betting your organization&#39;s AI future on a single, massive &quot;moonshot&quot; project (Hosanagar, 2018).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">3. <strong>Focus on early wins by improving processes, </strong>but focus on more than individual touchpoints. Don&#39;t use AI to pave the cow paths. Instead, look at the entire process and explore how AI can improve it. Leaders can consolidate early wins by creating value for multiple parts of the organization, then press on to more significant challenges using a portfolio approach (Why Portfolio Management Is Essential for AI Projects, 2024).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">4. <strong>Don&#39;t Bet the Ranch! </strong>Remember, your business does not have to invest all its AI project-related money upfront. Managers can control costs by hiring slowly but steadily and using outside suppliers for AI and machine learning infrastructure early (Hosanagar, 2018). As the AI field has developed, outside resources have become increasingly available in various AI-related specialties. Leverage early wins using outsourced resources, then gradually build your in-house capabilities (Roy, 2023)</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">5.<strong> Hit Lots of Singles, Then Look For Home Runs.</strong> Your last step will be to swing for the fences by identifying new, game-changing customer experiences only your AI solutions team can create!&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>References</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">AI, Data &amp; Analytics Network. (2024, February 16). How Disney World collects customer data. AI, Data &amp; Analytics Network. https://www.aidataanalytics.network/data-science-ai/articles/disney-world-theme-park-or-massive-data-collection-apparatus</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Airbnb uses artificial intelligence to transform its business. (2023, August 28). BDO. https://www.bdodigital.com/insights/analytics/airbnb-artificial-intelligence-transform-business</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">COTA: Improving Uber Customer Care with NLP &amp; Machine Learning | Uber Blog. (2018, January 3). Uber Blog. https://www.uber.com/blog/cota/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Cruz, M. D. (2022, January 6). Analyzing Disneyland Reviews with NLP - Towards Data Science. Medium. https://towardsdatascience.com/analyzing-disneyland-reviews-b916b6dcccf4</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">David Koenig, Associated Press. (2023, September 20). Airbnb says it has removed 59,000 fake listings from the platform in effort to crack down fraudsters. NBC 5 Dallas-Fort Worth. https://www.nbcdfw.com/news/national-international/airbnb-says-it-has-removed-59000-fake-listings-from-the-platform-in-effort-to-crack-down-fraudsters/3343055/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Dupre, E. (2017, July 10). Can sentiment and emotional analysis help Uber steer its brand around? - DMNEWS. DMNews. https://www.dmnews.com/can-sentiment-and-emotional-analysis-help-uber-steer-its-brand-around/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Editor. (2023, May 5). AI in Short-Term Rentals: How Machine Learning Shapes STR. AltexSoft. https://www.altexsoft.com/blog/ai-in-short-term-rentals/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Fighting Financial Fraud with Machine Learning at Airbnb. (2018, March 20). InfoQ. https://www.infoq.com/news/2018/03/financial-fraud-ml-airbnb/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Finance Magnate Contributors. (2023, June 13). The role of AI in insurance: From underwriting to claims processing. Financial and Business News | Finance Magnates. https://www.financemagnates.com/fintech/education-centre/the-role-of-ai-in-insurance-from-underwriting-to-claims-processing/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Gruttadauria, B. (2024, February 9). Unlocking the Power of AI with an Effective Data Hygiene Strategy. https://www.linkedin.com/pulse/unlocking-power-ai-effective-data-hygiene-strategy-brian-gruttadauria-oxfme/?trk=articles_directory</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Hollander, J. (2022, October 28). Disney&#39;s MagicBand: Breaking Down One of Hospitality&#39;s Greatest Innovations. Hotel Tech Report. https://hoteltechreport.com/news/disneys-magicband</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Hosanagar, K. (2018, July 24). The first wave of corporate AI is doomed to fail. Harvard Business Review. https://hbr.org/2017/04/the-first-wave-of-corporate-ai-is-doomed-to-fail</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">How AI and machine learning can positively impact your business and small businesses. (n.d.). https://www.datek.co.uk/blog/how-ai-and-machine-learning-can-positively-impact-your-business-and-small-businesses</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Https://www.paraspot.ai/. (n.d.). Paraspot Software Website.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Hurler, K. (2023, February). I&#39;m hating it: McDonald&#39;s AI-Powered Drive-Thru sucks. Yahoo.com. https://news.yahoo.com/im-hating-mcdonalds-ai-powered-163800036.html</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Inc, A. (2023, November 28). AI in Short-Term Rentals: How Machine Learning Shapes STR. Medium. https://altexsoft.medium.com/ai-in-short-term-rentals-how-machine-learning-shapes-str-e158b6fc8302</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Kamal, N. (2023, March 7). How McDonald&#39;s utilized big Data - Nuha Kamal - Medium. Medium. https://medium.com/@nuhaaltoraby91/how-mcdonalds-utilized-big-data-c6016e8b46b5</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Marr, B. (2017, August 24). Disney uses big data, IoT, and machine learning to boost customer experience. Forbes. https://www.forbes.com/sites/bernardmarr/2017/08/24/disney-uses-big-data-iot-and-machine-learning-to-boost-customer-experience/?sh=1ae1ed0e3387</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Martech, A. (2022, January 19). How do businesses use artificial intelligence? Wharton Online. https://online.wharton.upenn.edu/blog/how-do-businesses-use-artificial-intelligence/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">McAleenan, J. (2022, January 7). Identifying potential scam listings on Airbnb - Towards Data Science. Medium. https://towardsdatascience.com/identifying-potential-scam-listings-on-airbnb-e9aed41611e5</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">McDonald&#39;s is using AI and data to optimize its supply chain. (2023, September 25). ProcureCon Supply Chain 2024. https://procureconsupplychain.wbresearch.com/blog/mcdonalds-ai-data-optimize-supply-chain</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">McDonald&#39;s: Loyalty program continues to beat inflation - The Anchor. (n.d.). https://anchor.placer.ai/the-anchor/mcdonalds-loyalty-program-continues-to-beat-inflation</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Mehta, I. (2023, November 8). Airbnb leans on reviews to make listings more reliable as it tests review summaries using generative AI. Tech Crunch. https://techcrunch.com/2023/11/08/airbnb-is-leaning-on-reviews-to-make-properties-more-reliable/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Owen, R. (2021, October 4). Artificial intelligence at Airbnb &ndash; Two Unique Use-Cases. Emerj Artificial Intelligence Research. https://emerj.com/ai-sector-overviews/artificial-intelligence-at-airbnb/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Owen, R. (2022, January 26). Artificial intelligence at McDonald&#39;s &ndash; two current use cases. Emerj Artificial Intelligence Research. https://emerj.com/ai-sector-overviews/artificial-intelligence-at-mcdonalds/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Payments. (2022, January 27). McDonald&#39;s leverages loyalty personalization to combat aggregators. PYMNTS.com. https://www.pymnts.com/earnings/2022/mcdonalds-leverages-loyalty-personalization-combat-aggregators/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Rogelberg, S. (2024, February 27). Wendy&#39;s will implement Uber-style surge pricing for your Baconator&mdash;with the help of AI. Fortune. https://fortune.com/2024/02/27/wendys-uber-style-surge-pricing-baconator-ai/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Roy, K. (2023, January 17). 6 Business benefits of outsourcing your AI projects. Medium. https://medium.com/datatobiz/6-business-benefits-of-outsourcing-your-ai-projects-e8d084aef3ac</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Scaling Uber&#39;s Customer Support Ticket Assistant (COTA) System with Deep Learning | Uber Blog. (2018, August 23). Uber Blog. https://uber.com/blog/cota-v2/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Schaal, D. (2023, November 9). Airbnb&#39;s latest tools: &#39;Guest Favorites,&#39; AI photo tours, and more. Skift. https://skift.com/2023/11/08/airbnbs-latest-tools-guest-favorites-ai-photo-tours-and-more/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Standley, E. (2023, May 11). How AI is Revolutionizing the Future of Airbnb. https://www.linkedin.com/pulse/how-ai-revolutionizing-future-airbnb-edward-standley/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Sthapit, E., &amp; Björk, P. (2019). Sources of distrust: Airbnb guests&#39; perspectives. Tourism Management Perspectives, 31, 245&ndash;253. https://doi.org/10.1016/j.tmp.2019.05.009</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Sweeney, D. (2013, January 9). 4 Benefits that MagicBands bring to the wonderful world of Disney Parks. Forbes. https://www.forbes.com/sites/deborahsweeney/2013/01/09/4-benefits-that-magicbands-bring-to-the-wonderful-world-of-disney-parks/?sh=f285de77446a</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">TensorFlow. (2019, March 6). Powered by TensorFlow: Airbnb uses machine learning to help categorize its listing photos [Video]. YouTube. https://www.youtube.com/watch?v=tPb2u9kwh2w</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Uber Engineering. (2018a, June 5). Uber Tech Day: COTA -- Improving Uber Customer Care with NLP, ML, &amp; DL [Video]. YouTube. https://www.youtube.com/watch?v=jIGHY7fz2XA</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Uber Engineering. (2018b, October 22). Applying Customer Feedback: How NLP &amp; Deep Learning Improve Uber&#39;s Maps. https://www.uber.com/blog/nlp-deep-learning-uber-maps/</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Vaičiulaitytė, G. (2018, January 2). Twenty-five funny tweets about Amazon Alexa that prove there&#39;s nothing artificial about her intelligence. Bored Panda. https://www.boredpanda.com/funny-alexa-tweets/?media_id=1120057</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Why portfolio management is essential for AI projects. (2024, January 17). https://www.apm.org.uk/blog/why-portfolio-management-is-essential-for-ai-projects/#:~:text=However%2C%20the%20unique%20nature%20of,value%20and%20ensuring%20ethical%20compliance.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Yeo, A. (2024, February 28). Wendy&#39;s is trying out dynamic pricing. It&#39;s not as Uber as it sounds. Mashable. https://mashable.com/article/wendys-surge-pricing-dynamic-ai</span></span></p> 33Eight Digital Marketing Technologies That Can Improve Retentionhttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/30/eight-digital-marketing-technologies-that-can-improve-retentionConversion,Conversion Improvement,Customer Complaints,customer experience,Customer Relationship Management,Customer Service,Digital Marketing,New Product Development,Profit ImprovementRetention,Social MediaMon, 29 Jan 2024 15:34:48 GMT<p><meta name="uuid" content="uuidrMHno6Xr8OgI" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Over the past decade, a big part of our consulting practice has been helping companies determine how to improve customer retention.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">A recent series of requests for contributions to a marketing blog on LinkedIn led us&nbsp;to develop this article. Below are&nbsp;<strong>eight digital marketing technologies</strong>&nbsp;marketers can use to help improve customer retention and grow revenue.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><em>(Please note that while we provide vendor names, the list of software providers mentioned under each category is&nbsp;</em><strong><em>not</em></strong><em>&nbsp;exhaustive. New technology vendors emerge almost monthly, so please search for and compare competitors of the software vendors listed to find the right one for your company.)</em></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Email Marketing Software.</strong>&nbsp;Email marketing is first on our list of customer retention technologies. Why? With email, a business can regularly touch its customers by sending information and messaging that&#39;s relevant to customer interests. The critical adjective here is&nbsp;<strong><em>relevant</em></strong>! The most effective emails are personalized based on valid segmentation schemes. They are consistent in branding and well-timed. They are carefully tested. The test data should show that they will reliably resonate with your customers. Retention emails bring customers back by speaking with your brand voice and offering incentives, discounts, special offers, or unique experiences otherwise unavailable to noncustomers. Email is a powerful tool. But use your email list carefully. Please don&#39;t abuse it, or your list of receptive customers will quickly dwindle. Tools for email marketing include <strong>Vertical Response</strong>,&nbsp;<strong>Mailchimp</strong>,&nbsp;<strong>Constant Contact</strong>, and<strong>&nbsp;HubSpot</strong>. For more on this topic, check out our blog article with <a href="https://www.ronrassociates.com/Rons-Blog/PostId/31/8-innovative-ways-to-improve-customer-retention-using-email-or-notifications" target="_blank">eight examples of companies that do retention email well</a>.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Customer Relationship Management (CRM)</strong>: Marketers use CRMs to store customer data like email addresses, phone numbers, physical addresses, and communication preferences. They also use CRMs to track marketing interactions with current and potential customers. Leverage CRM data to discern customer behavior. Use it to understand individual preferences and track purchase history. If you sell shoes, for example, does this customer buy when shoes are on discount, or is their purchasing more fashion-conscious? Is it event-related (i.e., snow boots after a major snowstorm) or seasonal (summer, winter, fall, and spring collection purchases)?&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">With some imagination and elbow grease, CRM data can give us the information we need to reach these conclusions. It allows marketers to create personalized, high-converting marketing campaigns and ensures that customers who bought from us before keep buying. Integrate your CRM with Marketing Automation (see below) to improve your communication with customers and prospects. Use this integration to build repeat sales funnels with existing customers, driving repeat purchases and improving retention. CRM software providers include&nbsp;<strong>Salesforce</strong>,&nbsp;<strong>Zoho CRM</strong>, and&nbsp;<strong>Microsoft Dynamics</strong>. For more on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/8/customer-relationship-management-not-just-for-big-business" target="_blank">CRM and its uses</a>, see our blog article on how CRM can help improve conversion and retention.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Social Media Management Tools</strong>. Social media has become an integral part of any retention strategy. Use social media to provide brand updates and inform your customers of reasons to maintain a relationship with you.&nbsp;<strong>Hoot Suite</strong>&nbsp;or&nbsp;<strong>Buffer</strong>&nbsp;are two examples of software enabling marketers to schedule social media updates and track social activity across platforms. Social media can increase customer engagement and maintain customers&#39; interest in your brand. See also our blog article on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brands" target="_blank">Social Media Marketing for 24&nbsp;examples </a>of ways you can use Social Media to increase sales, improve customer retention, and support your brand.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Marketing Automation Platforms.</strong>&nbsp;Marketing automation platforms provide tools for automatically triggering marketing execution, including email campaigns, social media posts, remarketing campaigns, and more. If properly configured, marketing automation can track and manage lead generation from all your customer touchpoints and automate follow-up throughout the customer life cycle. Marketing automation systems allow retention marketers to personalize emails for post-purchase follow-ups, upsells, and cross-sells. It can trigger social media posts, offer targeted promotions, and send follow-up requests to salespeople or customer service representatives. Think of these tools as brilliant conductors in your brand marketing symphony. Research and map your online marketing funnel activities to see what works now, then automate it! These tools can save e-marketers time and effort while ensuring consistent, branded customer retention follow-up and communications. Popular options include&nbsp;<strong>Keap</strong>,&nbsp;<strong>Marketo</strong>,&nbsp;<strong>Pardot</strong>,&nbsp;<strong>Drip</strong>, and&nbsp;<strong>Eloqua.</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Remarketing Tools.&nbsp;</strong>Another favorite way of turning suspects into prospects and customers into return customers is&nbsp;<strong>remarketing</strong>. With remarketing, a website visit can trigger a series of personalized advertisements on platforms like&nbsp;<strong>Google</strong>,&nbsp;<strong>Facebook</strong>,&nbsp;<strong>LinkedIn</strong>&nbsp;or&nbsp;<strong>Twitter</strong>. Marketers can design experiences around the web content visited by linking a website product page to a particular advertisement on Google or a social media platform. These tools are especially useful in marketing luxury or high-involvement products or services because they direct advertising toward people who have already shown purchase intent. While generally reserved for new product sales, we have also seen this technology used successfully to grow revenue from service or parts upsell to customers who have visited company websites related to after-sale subjects. For more on this topic, check out our <a href="https://www.ronrassociates.com/Rons-Blog/PostId/11/small-company-big-data-huge-impact" target="_blank">blog article on Big Data</a>.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Customer Feedback Software.&nbsp;</strong>We all think we listen to our customers. But do you systematically keep track of their feedback and then take action to address their concerns? Those two final steps are crucial for improving customer retention.&nbsp;<strong>Verint,</strong>&nbsp;<strong>SurveyMonkey</strong>, and&nbsp;<strong>Qualtrics&nbsp;</strong>are software vendors that sell technologies that gather valuable customer insights and allow users to aggregate the information to identify actionable trends. Use that information to tease out customer service needs, gaps in your product and service offerings, complaint trends, and brand challenges. Use these technologies to develop systematic ways to leverage customer feedback and improve. See our <a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">blog article on customer complaints </a>for more on this topic.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Personalization.&nbsp;</strong>Personalization is another meaningful way of retaining customers, making them feel valued by the brand. Personalization tools such as&nbsp;<strong>Optimizely</strong>&nbsp;or&nbsp;<strong>Adobe Target</strong>&nbsp;are software designed to permit marketers to create customized experiences. Design individualized experiences or offers for each customer persona based on their segment&#39;s preferences and behavior. Build customer experiences that make their lives easier. See <a href="https://www.ronrassociates.com/Rons-Blog/PostId/22/buying-and-delivery-preference-the-new-battleground">our article on buying preference</a> for more on this topic.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Loyalty Program Software.&nbsp;</strong>Ever since a coffee shop figured out how to offer punch cards to give loyal customers a tenth coffee free, loyalty programs have become a time-honored way to drive customer retention. Reward customers for their continued business. As with everything, software now exists to track and manage this activity. Loyalty program software vendors include&nbsp;<strong>Smile.io</strong>&nbsp;or&nbsp;<strong>LoyaltyLion.&nbsp;</strong>Both can help create and manage new loyalty programs and make starting a program more manageable. Create incentives and rewards for customers, and design programs that encourage them to return. Then, watch retention numbers improve. See our <a href="https://www.ronrassociates.com/Rons-Blog/BlogPage/3" target="_blank">blog on Customer Lifetime Value</a> for more on how companies manage customer loyalty.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Integration and Reporting.&nbsp;</strong>Before pulling the trigger on any software purchase, carefully examine how well these systems integrate with your existing marketing infrastructure. Pay special attention to reporting, scalability, and customer support capabilities (and support cost). Many of the leading vendors in each category above offer capabilities in other categories. For example, many marketing automation providers also provide CRM capabilities.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Also, make sure that the reporting system for the software can exactly replicate what you are currently providing to senior management. Senior leaders want what they want, and if the new software can only provide a slightly different report from what leadership likes, you may spend the next couple of years downloading and formatting data to meet their needs.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">For more on integration and marketing, see our blog article about <a href="https://www.ronrassociates.com/Rons-Blog/PostId/15/integrate-or-die" target="_blank">integration as the modern marketing superpower</a>.</span></span></p> 3024 Examples of Social Media Advertising Campaigns Small Businesses Can Use To Build Their Brandshttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brandsBranding,Content Development,Conversion,Customer Complaints,New Product Development,SEO,Social MediaThu, 30 Nov 2023 14:29:00 GMT<p><meta name="uuid" content="uuid3YuAHgdErd3s" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;">Social media is one of the most influential elements of modern advertising. It has arisen from a trendy curiosity to a mainstay of consumer marketing. Marketers use social media in various ways, most of which small business owners can use to build their brands. These include&nbsp;<strong>paid advertising</strong>,&nbsp;<strong>influencer marketing</strong>,&nbsp;<strong>content creation</strong>,&nbsp;<strong>social listening</strong>, and&nbsp;<strong>user-generated content</strong>&nbsp;development. Finally, new technology has allowed marketers to engage in community building through&nbsp;<strong>live-streaming</strong>&nbsp;events and<strong>&nbsp;contests</strong>.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">As a Management Consultant and part-time College Instructor in Marketing and Management, I am a great keeper of examples that help explain marketing techniques. Below, I briefly explain the six kinds of social media advertising strategies. With each element of this typology, I provide examples of excellent execution of these strategies. If one of the examples interests you, click on it to learn more, then bookmark the URL for future use!&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Paid Advertising.&nbsp;</strong>Paid advertising tops the list of ways marketers use social media to promote their products and services. With paid advertising, marketers provide target audiences with tailored messages. Marketers design these messages to drive engagement with prospects and customers and lift conversions. <a href="https://www.ronrassociates.com/Rons-Blog/PostId/15/integrate-or-die">Retargeting customers who have visited your website with ads on social media</a> is an example of a particularly successful tactic we&#39;ve mentioned in previous posts. Products from pages previously visited suddenly start appearing on other web pages we visit. Here are some examples of companies that do this well:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://landingcube.com/traffic/facebook-retargeting-amazon-products/" target="_blank">Amazon&#39;s retargeting program on Facebook</a>&nbsp;(LandingCube, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing" target="_blank">Spotify uses retargeting ads on Instagram to increase customer engagement and sales</a>&nbsp;(Growth Hacking Through Retargeting and Remarketin<em>g</em>, n.d.).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://digiday.com/media/apple-brings-retargeting-iad/" target="_blank">Apple&#39;s retargeting Twitter ads drive customer loyalty</a>&nbsp;(McDermott, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/" target="_blank">How Airbnb&#39;s retargeting campaigns on YouTube used video content to target their audience</a>&nbsp;(Shipley &amp; Clark, 2021).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;">Paid social media ads allow marketers to track the performance of their campaigns in real-time. This attribute helps marketers make data-driven decisions about their marketing strategies and how they are paying off.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Influencer Marketing.&nbsp;</strong>As we discussed in previous posts, marketers can reach a broad audience in their target market by working with influencers. Influencers are people who demonstrably speak to your target audience and theirs. Marketers find influencers with large followings on social media platforms such as Instagram, Twitter, YouTube, and the newly emergent&nbsp;<a href="https://about.fb.com/news/2023/07/introducing-threads-new-app-text-sharing/" target="_blank">Threads</a>&nbsp;and hire them to insert their products and services directly into their context -- hopefully the same context as your target audience. Influencers can help build trust in your brand with key customers. Influencers accomplish this by providing reviews and recommendations for your products and services or, like athletes and outdoor video bloggers, simply using your products. Here are some examples of successful influencer marketing campaigns. Most examples below include mega influencers, but remember that a top blogger, amateur athlete, or rising musician can be just as influential!</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html" target="_blank">Starbucks&#39; #RedCupContest on Twitter</a>&nbsp;(Starbucks Stokes Red Cups Fever on Twitter, n.d.)</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.instagram.com/p/CvQSWlVpnkS/" target="_blank">Nike&#39;s collaboration with Lebron James on Instagram</a>&nbsp;(Instagram, n.d.).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/" target="_blank">Apple&#39;s #ShotOniPhone campaign on Instagram</a>&nbsp;(Kirkpatrick 2017).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white" target="_blank">Dior with Rihanna for the Fenty Beauty launch</a>&nbsp;(Singh-Kurtz, 2022).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.scribbr.com/citation/generator/folders/5ikXYlau81nAaRF9KYIVlz/lists/6473VM25BnkXXqIrJvqLOZ/" target="_blank">Coca-Cola&#39;s #ShareACoke campaign on Twitter&nbsp;</a>(Napean, 2014)</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Social Listening.&nbsp;</strong>Social listening is an effective technique marketers use to find out what their target audience thinks about their products and services. Social listening involves monitoring conversations on social media platforms to deliver insights into what people say about a particular product or service. Marketers use this type of research to inform marketing decisions. Consumers provide free feedback that marketers can use to improve the product or service they are promoting. As we discussed in <a href="http://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management">our previous blog about complaints management</a>, this information can improve profits and lower costs when adequately indexed, sorted, and analyzed. Here are some examples of social listening programs that have worked well:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.diligent.es/social-media-listening-strategy-starbucks/" target="_blank">Starbucks Successful Social Listening</a>&nbsp;(Diligent Team, 2016).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/" target="_blank">How Apple Uses Social Listening to Improve Products</a>&nbsp;(Surico, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/" target="_blank">Amazon&#39;s Use of Social Listening to Enhance Customer Experience</a>&nbsp;(Stroud, 2023)&nbsp;</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570" target="_blank">Dell&#39;s Innovative Way of Engaging with its Consumers Through Social Media Monitoring</a>&nbsp;(Rooney, 2012).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>User Generated Content (UGC).&nbsp;</strong>UGC refers to any content created by users on a particular platform that has been shared publicly, such as reviews, photos, videos, etc. UGC provides free exposure for brands as it often resonates more strongly with other users than traditional forms of advertising due to its authenticity and relatability factor. Here are some examples of how marketers use UGC:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://amazonseoconsultant.com/product-storytelling-examples/" target="_blank">Highlighting customers&#39; experiences with the product &ndash; reviews, recommendations, and stories</a>&nbsp;(Buckland, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://smallbiztrends.com/2023/07/unboxing-videos.html" target="_blank">Showcasing customer &#39;unboxing&#39; videos to demonstrate product quality and features</a>. (Pilon, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples" target="_blank">Asking customers to post photos wearing or using the product on their social media profiles with a hashtag associated with your brand</a>&nbsp;(Myers, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.omnisend.com/blog/testimonial-advertising/" target="_blank">Inviting customers to submit creative content for marketing campaigns</a>&nbsp;(Meyer, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.searchenginejournal.com/social-celebrity-endorsements/415568/" target="_blank">Engage influencers and celebrities in conversation about your product or service</a>&nbsp;(Weinstein, 2021).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Live Streaming.&nbsp;</strong>Live streaming has become increasingly popular among marketers in recent years. Live streaming events permit marketers to interact directly with viewers in real time. Showcasing a product or service during a live event builds consumer engagement with your brand. It usually forges a stronger connection between the brand and its audience. Also, live streams often go viral, increasing brand awareness and sales opportunities. Examples abound! Here are a few:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/" target="_blank">Nike&#39;s &quot;The Last Game&quot; Live Stream</a>&nbsp;(Graser, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/" target="_blank">Burger King&#39;s &quot;Whopper Detour&quot; Live Stream</a>&nbsp;(Koltun, 2019).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/" target="_blank">Apple&#39;s &quot;Apple Music Festival&quot; Live Stream</a>&nbsp;(<em>TechCrunch</em>, 2022).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold" target="_blank">Samsung Live Stream of Galaxy Fold Unpacking</a>&nbsp;(Roth, 2023).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Contests &amp; Giveaways.&nbsp;</strong>Contests and giveaways are another great way for marketers to use social media platforms like Facebook &amp; Instagram to promote their products and services. Contests allow brands to engage directly with followers while offering prizes for other products or services. Marketers design these promotions so that a company starts a relationship with customers (who typically will trade an email address or phone number in exchange for a chance to win.) These fun promotions increase brand awareness and encourage followers to spread the word about your business, increasing sales opportunities and marketing lists! Here are a few examples of successful programs:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions" target="_blank">McDonald&#39;s Monopoly promotion</a>&nbsp;(Bewicke, 2023)</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.youtube.com/watch?v=FYkzqvcCl_E" target="_blank">Doritos&#39; Super Bowl Action Movie contest</a>&nbsp;(ABC News, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html" target="_blank">Oreo&#39;s Mystery Flavors game</a>&nbsp;(Carter, 2017).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/" target="_blank">Coca-Cola&#39;s &quot;Share a Coke&quot; campaign</a>&nbsp;(Codella, 2022).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Summing Up</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Social media is an excellent way for your company to get itself noticed. As the above examples show, the tactic is used successfully by some of the biggest businesses. This interaction is why even small business marketers should learn social media advertising techniques. Take note of the above examples of ways to use social networking for marketing purposes. Social networking allows small and large businesses to create a strong presence, build brand recognition, and increase sales. Every business will have its unique approach to using social media. Still, one thing is sure: if done effectively, this medium can tremendously impact any organization&#39;s bottom line -- including yours.&nbsp;</span></p> <p style="text-align: justify;">&nbsp;</p> <h2 style="text-align: justify;"><span style="font-size:larger;"><strong>References</strong></span></h2> <p style="text-align: justify;"><span style="font-size:larger;">ABC News. (2014, January 9).&nbsp;<em>Doritos Super Bowl ad competition offers winners $1M</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=FYkzqvcCl_E" target="_blank">https://www.youtube.com/watch?v=FYkzqvcCl_E</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Avar admin. (2023, August 7). Dell&#39;s approach to social media sourcing and ROI.&nbsp;<em>Avature</em>.&nbsp;<a href="https://www.avature.net/blogs/dells-approach-social-media-sourcing/" target="_blank">https://www.avature.net/blogs/dells-approach-social-media-sourcing/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Bewicke, H. (2023, July 23).&nbsp;<em>McDonald&#39;s Monopoly: a masterclass in promotions | Talon.One</em>.&nbsp;<a href="https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions" target="_blank">https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Buckland, T. (2023, May 26).&nbsp;<em>The 6 Best Product Storytelling Examples from Around the Web</em>. Amazon SEO Consultant.&nbsp;<a href="https://amazonseoconsultant.com/product-storytelling-examples/" target="_blank">https://amazonseoconsultant.com/product-storytelling-examples/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Carter, S. M. (2017, November 22). Oreo is giving away $100,000 if you can guess its &#39;mystery&#39; flavor.&nbsp;<em>CNBC</em>.&nbsp;<a href="https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html" target="_blank">https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Coca-Cola launches Tweet-a-Coke as trackable social coupons gain | Retail Dive</em>. (n.d.).&nbsp;<a href="https://www.retaildive.com/ex/mobilecommercedaily/coca-cola-tests-twitters-social-commerce-waters-as-it-begins-to-emerge-as-a-top-predator" target="_blank">https://www.retaildive.com/ex/mobilecommercedaily/coca-cola-tests-twitters-social-commerce-waters-as-it-begins-to-emerge-as-a-top-predator</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Codella, D. (2022). The winning Coca-Cola formula for a successful campaign.&nbsp;<em>Blog Wrike</em>.&nbsp;<a href="https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/" target="_blank">https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">David Kirkpatrick Contributing Editor. (2017, August 8).&nbsp;<em>Apple joins Instagram to show off &quot;Shot on iPhone&quot; campaign</em>. Marketing Dive.&nbsp;<a href="https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/" target="_blank">https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Diligent Team. (2016, September 13).&nbsp;<em>Social Media Listening Strategy and how Starbucks does it</em>. Diligent.&nbsp;<a href="https://www.diligent.es/social-media-listening-strategy-starbucks/" target="_blank">https://www.diligent.es/social-media-listening-strategy-starbucks/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Editorial team. (2013, August 20).&nbsp;<em>Giveaway! Bridal Lingerie from Cosabella | Junebug Weddings</em>.&nbsp;<a href="https://junebugweddings.com/wedding-blog/giveaway-bridal-lingerie-from-cosabella/" target="_blank">https://junebugweddings.com/wedding-blog/giveaway-bridal-lingerie-from-cosabella/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Graser, M. (2014, June 23). Variety.&nbsp;<em>Variety</em>.&nbsp;<a href="https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/" target="_blank">https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Growth hacking through retargeting and remarketing</em>. (n.d.).&nbsp;<a href="https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing" target="_blank">https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Instagram</em>. (n.d.).&nbsp;<a href="https://www.instagram.com/p/CvQSWlVpnkS/" target="_blank">https://www.instagram.com/p/CvQSWlVpnkS/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Koltun, N. (2019, December 9).&nbsp;<em>Campaign of the Year: Burger King&#39;s &quot;Whopper Detour.&quot;</em>&nbsp;Marketing Dive.&nbsp;<a href="https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/" target="_blank">https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">LandingCube. (2023, April 20).&nbsp;<em>Chapter 5: Facebook retargeting for Amazon products</em>.&nbsp;<a href="https://landingcube.com/traffic/facebook-retargeting-amazon-products/" target="_blank">https://landingcube.com/traffic/facebook-retargeting-amazon-products/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">McDermott, J. (2014, October 15). Apple revamps mobile ads with retargeting options.&nbsp;<em>Digiday</em>.&nbsp;<a href="https://digiday.com/media/apple-brings-retargeting-iad/" target="_blank">https://digiday.com/media/apple-brings-retargeting-iad/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Meyer, B. (2023, June 20).&nbsp;<em>The 13 best examples of testimonial advertising</em>. Omnisend Blog.&nbsp;<a href="https://www.omnisend.com/blog/testimonial-advertising/" target="_blank">https://www.omnisend.com/blog/testimonial-advertising/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Myers, D. (2023, January 16). 4 Great examples of User-Generated Content (UGC).&nbsp;<em>Digital Marketing Institute</em>.&nbsp;<a href="https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples" target="_blank">https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">NapeanLLC. (2014, July 29).&nbsp;<em>Coca-Cola launches Tweet-a-Coke as trackable social coupons gain</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=ECFUR_4s5oQ" target="_blank">https://www.youtube.com/watch?v=ECFUR_4s5oQ</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Pilon, A. (2023). Twenty-five best unboxing videos and how to create your masterpiece.&nbsp;<em>Small Business Trends</em>.&nbsp;<a href="https://smallbiztrends.com/2023/07/unboxing-videos.html" target="_blank">https://smallbiztrends.com/2023/07/unboxing-videos.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Rooney, J. (2012, September 25). In Dell Social-Media Journey, Lessons For Marketers About The Power Of Listening.&nbsp;<em>Forbes</em>.&nbsp;<a href="https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570" target="_blank">https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Roth, E. (2023, July 25). Samsung Galaxy Unpacked 2023: how to watch the live stream and what to expect.&nbsp;<em>The Verge</em>.&nbsp;<a href="https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold" target="_blank">https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Shipley, K., &amp; Clark, S. (2021). How Airbnb used ad sequencing to bring their new product to life on YouTube.&nbsp;<em>Think With Google</em>.&nbsp;<a href="https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/" target="_blank">https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Singh-Kurtz, S. (2022, July 20). How Rihanna forced the beauty industry to acknowledge a world beyond the rich and the white.&nbsp;<em>Quartz</em>.&nbsp;<a href="https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white" target="_blank">https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Starbucks stokes Red Cups fever on Twitter</em>. (n.d.).&nbsp;<a href="https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html" target="_blank">https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Stroud, S. (2023). Amazon &amp; social media: How does Amazon use it?&nbsp;<em>Giraffe Social Media</em>.&nbsp;<a href="https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/" target="_blank">https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Surico, K. (2023). Envisioning Your iPhone-worthy Release with Social Listening.&nbsp;<em>NetBase Quid</em>.&nbsp;<a href="https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/" target="_blank">https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>TechCrunch is part of the Yahoo family of brands</em>. (2022, May 17).&nbsp;<a href="https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/" target="_blank">https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Weinstein, M. (2021). 10 Examples of Social Media Celebrity Endorsements That Paid Off Big Time.&nbsp;<em>Search Engine Journal</em>.&nbsp;<a href="https://www.searchenginejournal.com/social-celebrity-endorsements/415568/" target="_blank">https://www.searchenginejournal.com/social-celebrity-endorsements/415568/</a></span></p> 24Buying and Delivery Preference -- The New Battleground?https://rrassoicates.azurewebsites.net/Rons-Blog/PostId/22/buying-and-delivery-preference-the-new-battlegroundConversion Improvement,Customer Complaints,customer experience,Customer Relationship Management,New Product DevelopmentWed, 15 Mar 2023 16:58:00 GMT<p><meta name="uuid" content="uuidmmd6o7mSTz8l" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;">The most important thing we do as marketers is to segment our markets. Segmentation allows us to define target audiences and customize our products, services, and advertising. However,&nbsp;segmentation should be based on traditional demographics like age, income, or psychographics and&nbsp;<strong><em>how&nbsp;</em></strong>customers prefer to buy.&nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">By considering customers&#39; purchasing behavior &ndash;&nbsp;<em>when they purchase, which distribution channels they use, which payment method they use, what they are doing when they buy, and how much time they take to make purchase decisions</em>&nbsp;&ndash; marketers can ensure improved product and service designs. They can better target their advertising messages and establish more robust and profitable connections with their clients.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">This blog post will explore how understanding&nbsp;<strong>customer purchasing behaviors</strong>&nbsp;can enhance segmentation efforts, create new paths to the market, and lead to a more successful business!</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>How Do You Like Your Coke?</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Emory University Marketing Professor Sandy Jap, the co-author of<strong><em>&nbsp;A Field Guide to Channel Strategy&nbsp;</em></strong>(Coughlan &amp; Jap, 2016), reminds us that the best marketers &quot;<em>think about market opportunities and harness value in a broader way than only with a product or a price..</em>.&quot; As an example, in an <a href="https://www.coursera.org/learn/marketingchannelbenefits#syllabus">online lecture</a>, Professor Jap cites the many ways we might consume the soft drink Coca-Cola: with a Big Mac (as a fountain drink), with a 7.5-ounce mini bottle served with Bacardi and lime (at an elegant bar), in twelve-ounce bottles during a late-night drive home (at a gas station), in 32-ounce bottles as a mixer at a party (purchased at a grocery store chain.) Each way of consuming a Coke represents a&nbsp;<em>different use case</em>,&nbsp;<em>cost per ounce</em>, and a distinct&nbsp;<em>distribution channel</em>&nbsp;for Coke. Indeed, one of Professor Jap&#39;s central messages is that consumers are often willing to pay&nbsp;<strong><em>premium prices&nbsp;</em></strong>to receive the good or service the&nbsp;<strong><em>way</em></strong>&nbsp;they want to consume it when they want to drink it.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Pandemic Impact</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">The need for differentiation goes beyond product extensions in the consumer packaged goods industry. The Pandemic has poured gasoline on a user experience fire ignited by the Internet a decade ago. The Pandemic stay-at-home rules forced users to experiment with new product and service delivery mechanisms. This need, in turn, has driven business leaders to quickly adapt and focus on consumer buying preferences and behavioral segmentations. New segments pop up almost monthly as consumers explore, then expect, alternative buying and delivery channels for goods and services.&nbsp;</span></p> <p><img alt="" src="/Portals/0/New-delivery-buying-post-pandemic2.png" style="width: 800px; height: 800px;" title="" /></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Not Just A Product, Not Just A Service -- Something In Between</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">We now have the hybridization of products and services as online access becomes integrated into the purchase process. Here is a list of service trends that have emerged recently:</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Ordering Online With Home Delivery.&nbsp;</strong>Amazon&#39;s excellence in logistics has forever changed how we buy. Home delivery is convenient. Online ordering of goods we used to drive to the store to buy has experienced rapid growth since the Pandemic. We have learned that it is nice not to leave our homes and still receive items we order online. We have come to expect two-day delivery of just about anything. Today, retail companies offer home delivery via UPS, FedEx, and the Postal Service. It has not stopped there. Door Dash or Uber Eats will bring food orders to your home or&nbsp;<a href="https://www.youtube.com/watch?v=w3xiLGFRiLM" target="_blank">place of work</a>&nbsp;in minutes (PSC Highlights, 2023). Fast food providers have begun to differentiate themselves with home food delivery around food delivery occasions like watching the Super Bowl or&nbsp;<a href="https://www.youtube.com/watch?v=r6RaVv3s3qw" target="_blank">NBA basketball</a>&nbsp;(DoorDash, 2022). Instacart will deliver an electronic game to a user&#39;s home, so they don&#39;t have to stop gaming with friends! (<em>Bop It Electronic Games Products Delivery or Pickup Near Me | Instacart</em>, n.d.) Carvana will allow users to compare, select, finance, and receive delivery of a used car -- all online (Betterton, 2022).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Buy Online Pickup In-Store (BOPIS)&nbsp;</strong>is another service permutation. This offering allows customers to order products or services online and then pick up the product at the store (Polson, 2022). Demand for these services already existed, but it has burgeoned as the Pandemic has driven trial. Online ordering is convenient for customers as they can shop from home or work but still have the immediacy of same-day availability. Examples abound. Best Buy has leveraged the combination of its brick-and-mortar network and its online presence to offer customers this option. Amazon has already started leveraging its Whole Foods locations by adding lockers where customers can pick up orders by entering a delivery code emailed with the delivery confirmation information. Home Depot has been experimenting with a similar service to allow customers to pick up smaller products in lockers outside their stores. Need lumber or other building supplies? Users can order them online, and both Lowes and Home Depot will cart them up and bring them to their car or truck.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Custom Manufacturing with In-Store Pickup (MOPUS) or Home Delivery.&nbsp;</strong>(Polson, 2022) Computer manufacturers like Dell and Apple and furniture manufacturers like Ethan Allen have long provided users with the ability to select custom features for products and have them manufactured to order. A small number of auto manufacturers are beginning to do the same thing. Tesla offers this purchase structure with its products. To compete, Volvo has started offering this service with its&nbsp;<a href="https://www.kbb.com/electric-car/" target="_blank">electric vehicles</a>, such as the&nbsp;<a href="https://www.kbb.com/volvo/c40-recharge/" target="_blank">C40 Recharge SUV</a>, which is ordered online and picked up at a dealership. As Industry 4.0 brings forth intelligent, autonomous, and flexible manufacturing capabilities, we should see increasing innovation in this area (<em>What Is Industry 4.0? | Definition, Technologies, Benefits | SAP Insights</em>, n.d.).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Subscription Services.&nbsp;</strong>Companies offer subscription services, allowing customers to receive products or services regularly at previously agreed intervals, another type of service. Subscription purchases are convenient for customers as they do not have to remember to order the products or services on their own. My pest control company visits our home six times a year. Regular replacement products that are hard to remember but need to buy at regular intervals (pet food, refrigerator water filters, HVAC filters, disposable razors, and contact lenses, for example) are perfect for these automatic sales methods. See&nbsp;<a href="https://vimeo.com/manage/videos/254744528" target="_blank">my Video</a>&nbsp;about this product delivery strategy here.&nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Similarly, a subscription can work well for high-value-added or unique goods that need to be organized or sourced from an unusual vendor. For example, <a href="https://sitkasalmonshares.com/products/premium-seafood-subscription-box">Alaskan fish processors</a>, <a href="https://www.cawineclub.com/">California Vintners</a>, and <a href="https://thehonestbison.com/about/">South Dakota&nbsp;Bison</a> farmers are examples of types of vendors that send monthly shipments of their products to households nationwide.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Closer to home here in Tennessee, a farm cooperative allows neighborhood groups in Knoxville to sign up for and receive routine deliveries of fresh vegetables to centralized locations throughout the summer months. A local doctor in Oak Ridge, Tennessee, has patients pay an annual fee to gain access to a broader suite of services and manage their total health. Subscription services are convenient for customers and save businesses money by reducing client acquisition costs and allowing the companies to predict how much product or service customers will need and when.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Membership Programs.&nbsp;</strong>Membership programs are another service designed to differentiate the offering by giving customers exclusive benefits and making buying easier. Membership programs offer discounts, early sales access, and free shipping.&nbsp;<a href="https://www.amazon.com/b/?node=23945845011">Amazon&#39;s Prime</a> is one such membership program. Prime customers gain access to music and entertainment streaming and free package delivery annually. Prime members spend about two or three times as much as non-prime customers and enjoy higher&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv" target="_blank">customer lifetime value</a>&nbsp;(Ryan, 2018). Membership programs benefit businesses and customers as businesses can increase customer loyalty and spending while customers can save money on the products or services they purchase.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Industries with Large Customer Information Requirements.&nbsp;</strong>Often, membership programs can front-load heavy information requirements in exchange for point-of-sale buying convenience. For example, in car rentals, membership programs like <a href="https://www.hertz.com/rentacar/misc/index.jsp?targetPage=gold_plus_rewards_overview.jsp">Hertz Number One Club</a> can leverage a robust Customer Relationship Management System to store a great deal of information in advance (driver&#39;s license, credit card, car preference, etc.) Busy business customers can enter the car and drive away by showing identification at the gate, reducing business travel time.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Innovative Service Contract Structures.&nbsp;</strong>Customer segmentation around purchase preference extends to service industries as well. For example, competitors in the telecommunications sector differentiate their service offerings around different contract terms to entice new customers (Blumenthal, 2023). A common innovation is adaptations that help younger, less creditworthy customers obtain phone service.</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Cricket Wireless&nbsp;</strong>offers a prepaid wireless service that allows users with little or no credit experience to gain access to the AT&amp;T wireless network (Cox &amp; Timmermann, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>T-Mobile</strong>&nbsp;likewise offers service contracts that do not require a credit check for new customers. Customers with poor credit can still sign up for T-Mobile service. (Herosmyth Staff, 2020).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Verizon</strong>&nbsp;targets families by offering discounts for customers who sign up for multiple service lines. For example, a customer who signs up for several service lines, one for each family member, will receive a discount.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>AT&amp;T</strong>&nbsp;offers discounts for customers who bundle their services. For example, customers bundling their wireless, home internet, and home phone services will receive a discount.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>US Cellular</strong>&nbsp;offers free phones for new customers, allowing customers to get a new phone without paying any upfront costs.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Virgin Mobile</strong>&nbsp;offers only month-to-month contracts, not annual ones, allowing customers to cancel their service without paying termination fees.</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Differentiation In Financial Services.&nbsp;</strong>For a final example, we use the online stock brokerage industry, which has seen large amounts of new product development to make it easy for new investors to purchase and manage investments (Monchau, 2021). Here are several examples:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.acorns.com/"><strong>Acorns</strong></a>&nbsp;allows users to automatically invest their spare change from everyday credit card purchases into a portfolio of ETFs. Acorns charges a monthly fee but is currently waiving all fees to students.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.betterment.com/resources/how-betterment-technology-manages-money"><strong>Betterment</strong></a>&nbsp;is an online financial planning and investment management service that provides &quot;robo-advisor&quot; financial planning services, such as tax optimization and portfolio rebalancing. This structure allows Betterment to charge a lower yearly fee than many competitors for its services (Betterment Editors, 2022).&nbsp;&nbsp;</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.fool.com/the-ascent/buying-stocks/m1-finance-review/"><strong>M1 Finance</strong></a>&nbsp;is an online platform that introduced fractional share trading in 2017. Fractional share trading is a boon to small investors. It allows an investor to buy a portion of a share rather than pay for an entire share. M1 has taken this one step further to develop a &quot;pie&quot; system that allows users to create custom portfolios of individual stocks or ETFs.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong><a href="https://www.fool.com/the-ascent/buying-stocks/robinhood-review/">Robinhood</a>&nbsp;</strong>offers commission-free trading of stocks, ETFs, and options. Robinhood also offers access to cryptocurrency trading. A unique feature of Robinhood is its &quot;Gold&quot; subscription service, which allows investors to trade on margin and access after-hours trading. Robinhood began offering fractional share trading in 2019.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.stash.com/stock-back-debit-card"><strong>Stash</strong></a>&nbsp;is an online investing service that rewards its users with stock when they purchase with certain retailers using their debit card linked to their Stash account.</span></li> </ul> <p style="text-align: justify;"><meta name="uuid" content="uuid7rNd2FYKWUp8" /><meta charset="utf-8" /><span style="font-size:larger;">In the insurance industry, where I have spent much of my career, companies have likewise segmented users based on purchase preferences. They are leveraging&nbsp;the Internet to deliver new ways to buy&nbsp;insurance coverage:</span></p> <ul> <li><span style="font-size:larger;"><strong>Comparison Shopping.&nbsp;</strong>Two decades ago,&nbsp;<strong><a href="https://www.progressive.com/auto/discounts/compare-car-insurance-rates/" target="_blank">Progressive Insurance</a></strong>,&nbsp;<strong><a href="https://www.answerfinancial.com/" target="_blank">Answer Financial</a></strong>, and&nbsp;<strong><a href="https://www.insurance.com/" target="_blank">Insurance.com</a></strong>&nbsp;were pioneers in allowing consumers to compare insurance rates online and purchase coverage. Permutations&nbsp;now abound.&nbsp;</span></li> <li><span style="font-size:larger;"><strong>Policy and Dealer-based Shopping Services.&nbsp;<a href="https://www.gabi.com/" target="_blank">Gabi.com</a></strong>, for example,<strong>&nbsp;</strong>provides a unique service that lets people upload their current policy. Gabi uses it to find cheaper policies with similar coverage, thus avoiding the sometimes painful process of combing through existing policy details.&nbsp; &nbsp;<strong><a href="https://www.autocomplete.io/dealers" target="_blank">Autocomplete.io</a></strong>, a more recent entrant, noted that many people buy from auto dealers when they purchase a car. Autocomplete has developed a sales platform addressing that channel&#39;s unique needs.</span></li> <li><span style="font-size:larger;"><strong>Picking your price.</strong>&nbsp;<strong><a href="https://www.progressive.com/auto/discounts/name-your-price/" target="_blank">Progressive.com</a></strong>&nbsp;has developed a trademarked tool, &quot;<a href="https://www.progressive.com/auto/discounts/name-your-price/"><b><i>Name your own price</i></b></a>,&quot; that allows consumers to indicate how much coverage they can afford and use the rater to find a policy that fits their budget.</span></li> <li><span style="font-size:larger;"><strong>Usage-based pricing.&nbsp;</strong>Progressive was one of the first insurance companies to offer usage-based insurance programs and is now one of the largest providers of such programs in the United States. The company&#39;s&nbsp;<a href="https://www.progressive.com/auto/discounts/snapshot/" target="_blank"><em>Snapshot</em></a>&nbsp;program uses a plug-in device that tracks various driving factors, including mileage, time of day, and braking habits. Drivers who sign up for the program can receive discounts of up to 30% on their premiums.&nbsp;<strong>Allstate</strong>&nbsp;offers two usage-based insurance programs:&nbsp;<a href="https://www.allstate.com/drivewise" target="_blank"><em>Drivewise</em></a>&nbsp;and&nbsp;<a href="https://www.allstate.com/auto-insurance/milewise" target="_blank"><em>Milewise</em></a>. Drivewise uses a plug-in device to track driving habits, while Milewise uses a phone app to track mileage. Drivers who sign up for either program can receive discounts of up to 20% on their premiums.&nbsp;<strong>State Farm,</strong>&nbsp;<strong>Liberty Mutual</strong>, and&nbsp;<strong>Nationwide</strong>, among others, use a similar telematics device to track various driving factors, including mileage, speed, and braking habits. Insurers boast that careful, low-mileage drivers who sign up for the program can receive up to 50% discounts on their premiums.</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Affordable Research Methods</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Many think, &quot;we can&#39;t afford expensive focus groups to figure out how our customers want to buy!&quot; Here is a list of guerilla tactics -- affordable ways -- to understand how customers want to buy without spending much money. Pay particular attention to&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">complaints</a>. The issues that make consumers mad in shopping and purchasing can be a gold mine of opportunities (Ryan, 2018).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>CSRs and Others Involved in Customer Support.&nbsp;</strong>The first place to gather information on buying preferences is your organization&#39;s customer support teams. They will be able to provide anecdotal information on what is making their life and the lives of your customers difficult. Use this information for hypotheses, then go out and test with affordable online surveys.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Internal Complaint Logs.&nbsp;</strong>Many companies track customer complaints with either formal or informal tracking mechanisms. This data can provide invaluable insights into who is having trouble buying from you and how this is occurring. See my&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">blog piece about complaints and complaints management</a>.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Social Media.&nbsp;</strong>Social media platforms like Facebook, Twitter, and Instagram are great ways to research how customers like to buy. Researchers can use the platform&#39;s search function to look for relevant hashtags, such as #buyonline or #shoplocal, and see what users say about purchase preferences. They can also follow relevant influencers in their industry and see how they promote their products or services. For more examples of social media marketing techniques, see our article,&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brands">24&nbsp;Examples of Social Media Advertising Campaigns.</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Online Forums.&nbsp;</strong>Online forums are another great way to research how customers like to buy. There are forums for every topic, so finding one relevant to the industry is easy. Once a researcher has found a forum, they should take some time to read through the threads and see what kind of questions people are asking and what type of advice they are giving.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Google Trends.&nbsp;</strong><a href="https://trends.google.com/trends/trendingsearches/daily?geo=US&amp;hl=en-US"><em>Google Trends</em></a>&nbsp;is a free online tool that lets users set the popularity of e-specific keywords. This tool can help research how customers like to buy because researchers can see which keywords users search for more frequently. For example, if the company sells products online, marketers might want to research the keyword &quot;online shopping&quot; or &quot;how to buy [product x or y]. They can then use this information to adjust their marketing strategy accordingly.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Amazon Reviews. </strong>Marketers&nbsp;should use the platform&#39;s review system if the company sells products on Amazon. Customers who leave reviews are typically candid about their experience, so reading through them can give valuable insights into how customers like to buy. Just take the time to read through both positive and negative reviews to get a balanced understanding.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Blogs.&nbsp;</strong>Blogs can be a great source of information when researching how customers like to buy. Bloggers write about their personal experiences with different products and services. Search on Google or another search engine using relevant keywords to find relevant blogs. Once they find some blogs that look promising, take some time to read through them and see what insights they offer.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Podcasts.&nbsp;</strong>Podcasts are another great way to learn how customers like to buy. Many podcasts feature interviews with experts in various industries who share their insights on topics related to their expertise. Search on iTunes or another podcast directory using relevant keywords to find relevant podcasts.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">As we have seen, understanding&nbsp;<strong><em>how</em></strong>&nbsp;and&nbsp;<strong><em>why</em></strong>&nbsp;people want to buy is as important as understanding&nbsp;<strong><em>who</em></strong>&nbsp;wants to buy. Companies that know&nbsp;<strong><em>how</em></strong>&nbsp;we want to purchase are more likely to earn our business and keep us as customers. Customer complaints, social media, online discussion forums, Google Trends, blogs, and podcasts provide affordable sources of information on consumer preferences and are accessible to companies with even the tiniest budgets.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Go forth and learn how your customers want to buy --&nbsp;<em>then</em>&nbsp;segment. You will be happy you did!&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>References</strong></span></p> <p style="text-align: justify;"><em>2023 Volvo C40 Recharge Price, Reviews, Pictures &amp; More | Kelley Blue Book</em>. (2022, September 1). KBB.&nbsp;<a href="https://www.kbb.com/volvo/c40-recharge/">https://www.kbb.com/volvo/c40-recharge/</a></p> <p style="text-align: justify;"><em>Best Electric Vehicles of 2023 - Top-Rated New Electric Vehicles Ranked | KBB.com</em>. (n.d.). Kbb.com. <a href="https://www.kbb.com/electric-car/">https://www.kbb.com/electric-car/</a></p> <p style="text-align: justify;">Betterment Editors. (2022, September 1).&nbsp;<em>How Betterment&#39;s Tech Helps You Manage Your Money</em>.&nbsp;<a href="https://www.betterment.com/resources/how-betterment-technology-manages-money">https://www.betterment.com/resources/how-betterment-technology-manages-money</a></p> <p style="text-align: justify;">Betterton, R. (2022, October 6).&nbsp;<em>How to use Carvana to buy a car</em>. Bankrate.&nbsp;<a href="https://www.bankrate.com/loans/auto-loans/guide-to-carvana/#proscons">https://www.bankrate.com/loans/auto-loans/guide-to-carvana/#proscons</a></p> <p style="text-align: justify;">Blumenthal, E. (2023, January 9).&nbsp;<em>Switching Phone Carriers in 2023: What to Know Before You Switch Providers</em>. CNET.&nbsp;<a href="https://www.cnet.com/tech/mobile/switching-cellphone-carriers/">https://www.cnet.com/tech/mobile/switching-cellphone-carriers/</a></p> <p style="text-align: justify;"><em>Bop It Electronic Games Products Delivery or Pickup Near Me | Instacart</em>. (n.d.). Instacart. <a href="https://www.instacart.com/categories/5059-toys-and-games/5060-games/5075-electronic-games?brand=bop-it">https://www.instacart.com/categories/5059-toys-and-games/5060-games/5075-electronic-games?brand=bop-it</a></p> <p style="text-align: justify;">Coughlan, A. T., &amp; Jap, S. (2016).&nbsp;<em>A Field Guide to Channel Strategy: Building Routes to Market</em>. Createspace Independent Publishing Platform.</p> <p style="text-align: justify;">Cox, D., &amp; Timmermann, M. (2023, February 23).&nbsp;<em>Cricket Wireless Review: 5 Things To Know Before You Sign Up</em>. Clark Howard.&nbsp;<a href="https://clark.com/technology/phones-mobile-devices/cricket-wireless-review/">https://clark.com/technology/phones-mobile-devices/cricket-wireless-review/</a></p> <p style="text-align: justify;">DoorDash. (2022, October 19).&nbsp;<em>DoorDash x NBA 2022 - Secret Handshake</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=r6RaVv3s3qw">https://www.youtube.com/watch?v=r6RaVv3s3qw</a></p> <p style="text-align: justify;">Herosmyth Staff, H. (2020, February 24).&nbsp;<em>9 Perfect Brand Examples of Why It Pays to Differentiate</em>. Herosmyth. <a href="https://www.herosmyth.com/article/9-perfect-brand-examples-why-it-pays-differentiate">https://www.herosmyth.com/article/9-perfect-brand-examples-why-it-pays-differentiate</a></p> <p style="text-align: justify;">Monchau, C. (2021, March 26).&nbsp;<em>Thanks to Fractional Shares, Trading Is Accessible to Everyone</em>. Entrepreneur.&nbsp;<a href="https://www.entrepreneur.com/money-finance/thanks-to-fractional-shares-trading-is-accessible-to/367129#:~:text=Regarding%20the%20introduction%20of%20fractional,and%20Charles%20Schwab%20followed%20suit">https://www.entrepreneur.com/money-finance/thanks-to-fractional-shares-trading-is-accessible-to/367129#:~:text=Regarding%20the%20introduction%20of%20fractional,and%20Charles%20Schwab%20followed%20suit</a>.</p> <p style="text-align: justify;">Polson, K. (2022, August 16).&nbsp;<em>What is BOPIS Fulfillment? A Guide for Retailers</em>. <a href="https://blog.deckcommerce.com/what-is-bopis">https://blog.deckcommerce.com/what-is-bopis</a></p> <p style="text-align: justify;">PSC Highlights. (2023, January 26).&nbsp;<em>food delivery guy walks on the court during a college basketball game</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=w3xiLGFRiLM">https://www.youtube.com/watch?v=w3xiLGFRiLM</a></p> <p style="text-align: justify;">Ryan, R. (2018, February 28).&nbsp;<em>Finding Increased Profits through Better Complaints Management |</em>. www.ronrassociates.com/blog. Retrieved March 15, 2023, from <a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management">https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management</a></p> <p style="text-align: justify;">Ryan, R. (2018, February 8).&nbsp;<em>The Amazing Healing Power of Customer Lifetime Value | RonRAssoci</em>. Retrieved March 15, 2023, from <a href="https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv">https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv</a></p> <p style="text-align: justify;"><em>What is Industry 4.0? | Definition, technologies, benefits | SAP Insights</em>. (n.d.). SAP.&nbsp;<a href="https://www.sap.com/uk/insights/what-is-industry-4-0.html#:~:text=Industry%204.0%20is%20powered%20by,machinery%2C%20robots%2C%20and%20vehicles">https://www.sap.com/uk/insights/what-is-industry-4-0.html#:~:text=Industry%204.0%20is%20powered%20by,machinery%2C%20robots%2C%20and%20vehicles</a>.</p> <p style="text-align: justify;">&nbsp;</p> 229 Ways To Build A Small Business Brandhttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/18/7-ways-to-build-a-small-business-brandBranding,Content Development,Customer Complaints,customer experience,Customer ServiceTue, 15 Nov 2022 20:12:53 GMT<p style="text-align: justify;"><span style="font-size:larger;">As a follow-on to our <a href="https://www.ronrassociates.com/Rons-Blog/PostId/17/six-ways-a-strong-brand-improves-profits">previous blog</a> about&nbsp;the crucial link between a strong brand and higher profits, set out below are nine&nbsp;ways&nbsp; companies can build their brands in their local markets:</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">1. Get Social.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Social media is one of the best ways to build your company&#39;s brand. It is among small businesses&#39; most potent tools. You can build your audience and brand by creating a presence on&nbsp; Facebook, Twitter, and Instagram for direct-to-consumer communications and LinkedIn for B2B communications. Posts that are informative, fun, or help your customers in their day-to-day lives can do much to build a small company&#39;s brand. See&nbsp;our upcoming post with <a href="https://www.ronrassociates.com/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brands">24 examples of how leading companies use social media</a> to build their brands.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">2. Create Sponsorships.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Another affordable way to build your company&#39;s brand is through event or sports sponsorships. When you sponsor an event or team, your company&#39;s name and logo become visible to fans, athletes, and other local event participants. This visibility can increase brand awareness and create positive associations with your company. For example, I have lived all over the country, and everywhere I go, the local Blue Cross Blue Shield sponsors a 10K event it supports along with other local employers. These excellent brand-building events for the Blues help cement their relationships with local employers (and their employees) who make up their target market.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">3. Develop &#39;Ninja&#39; Advertising Campaigns.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Advertising is another great way to build your company&#39;s brand. A cheap outdoor campaign, for example, can be hugely helpful to a local brand. You can reach many potential customers and positively associate with your brand by placing ads in strategic outdoor locations or running targeted campaigns on local radio, television, and sports media. The smaller your budget is, the more critical it is to be creative with your advertising. A local law firm I know is specialized in defense cases. It is considering buying advertising from home game announcers to use their name every time there is a penalty,&nbsp; just as the local car dealers pay to have their names mentioned with each touchdown!</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">4. Leverage Public Relations With Local Media Outlets.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Public relations is another excellent way to build your company&#39;s brand. Getting involved in community events or working with local media outlets to announce new products, services, or charity initiatives can generate positive publicity for your company and build your brand.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">5. Accelerate Positive Word of Mouth Digitally.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Word of mouth is among the most effective ways to build your company&#39;s brand. Creating opportunities for referencing by surveying and then asking permission to post positive reviews on Google or Facebook can help digitize word of mouth and drive brand awareness.&nbsp;</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">6. Request a Local Celebrity Endorsement.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Not all celebrities are in Hollywood. For example, do you live in a city or state that loves its college sports? NIL (Name, Image, Likeness) creates numerous opportunities for &quot;celebrity endorsements&quot; from college athletes. Often, small businesses can cut deals using barter arrangements like burgers for life or free wash-dry-fold services for athletes in exchange for commercial endorsements. Increasingly common, new NIL opportunities are becoming increasingly organized and effective.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">7. Go Above and Beyond.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Your company can garner favorable reviews by going above and beyond in various ways. You can anticipate your customers&#39; needs and do something they will appreciate without being asked. You can exceed expectations by over-delivering. For example, a business can finish work before it is due or be highly responsive &ndash; always picking up customer phone calls or staying open late to help a long-time customer. While seemingly small, these can also create appreciation and build your brand with them. If you make a customer happy, encourage them to post a review that tells others about it. Finally, following up with customers to determine their satisfaction with your work can build trust in your brand and alert you to problems.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">8. Sponsor or Participate in a Parade.&nbsp;</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Sponsoring or participating in a parade can introduce many people to a brand and its products or services in a short time. A parade float can be fun for employees while effectively generating interest in a brand and getting people talking about it. A business on or near a parade route can use the event to increase foot traffic and generate sales. Companies can hand out flyers or promotional items, offer discounts, or set up unique displays to catch the attention of parade-goers and draw them into the store.</span></p> <p style="text-align: justify;"><strong><span style="font-size:larger;">9. Place Your Product in Movies or With Influencers On Social Media.</span></strong></p> <p style="text-align: justify;"><span style="font-size:larger;">Product placement involves placing a company&#39;s products or brand in a movie or television show. Advertisers can use placements in several ways.&nbsp; &nbsp;The characters in a movie can use the product, display the product prominently, or mention the product by name. Or, a skilled influencer prominent in a business&#39;s target segment can use the product for free in exchange for the opportunity to use &quot;sponsored&quot; products. So, although placement in a James Bond movie may be out of reach for many small businesses, many can afford to give their products to top influencers in their market segment. Outdoor sports manufacturers like Rossignol Skis or Wilson Sporting have provided top amateur or collegiate athletes with free equipment for decades. For example, Red Bull has a YouTube video channel dedicated to extreme sports athletes. Finally, if all that doesn&#39;t work, make a video! If it&#39;s good enough, the video can go viral! See <a href="https://www.ronrassociates.com/Rons-Blog/PostId/20/viral-videos-that-build-brands-and-how-to-make-them">our next blog article on Viral Videos</a> to learn how this can work.<br /> &nbsp;<br /> Happy Brand-Building!</span></p> 18Finding Increased Profits through Better Complaints Managementhttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-managementCustomer Complaints,Customer ServiceWed, 28 Feb 2018 04:12:00 GMT<p style="text-align: justify;"><span style="font-size:larger;">Most of us who manage organizations think of customer complaints as a nuisance&nbsp;to be avoided &ndash; like the flu or even a root canal.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Likewise, in life, we tend to think of people who complain as obnoxious.&nbsp;&nbsp; If the person complaining persists, as&nbsp;managers, we tend to believe that an individual is a little crazy, misguided, or wanting something for free.&nbsp; For senior managers, the last in a long conga line of staff who have spoken with a complaining customer, dealing with complaints can seem an unpleasant distraction from the more significant business of running the company.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Ignoring complaints, however, is neither a career nor a profit-enhancing strategy.&nbsp; When it comes to complaints, what leaders don&#39;t know&nbsp;<em>can</em>&nbsp;hurt them.&nbsp;&nbsp; In some cases, (for example, the case of a viral recording of a customer trying for 8 minutes to cancel their Comcast internet account<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[i]</sup></a>) a mishandled consumer interaction can damage the brand of an organization very severely.&nbsp; In this sense, consumer complaints are every organization&#39;s canary in the coal mine. An organization&#39;s complaints information analyzed correctly, can help leaders to understand the sources of the customer departures appearing in their conversion and customer retention numbers, in time to do something about them.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Moreover, regulators and business standards setters like the Better Business Bureau often focus on&nbsp;how&nbsp;businesses handle mistakes<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[ii]</sup></a>&nbsp;as much as the mistakes themselves. The more regulated the industry, therefore, the more critical the handling of complaints becomes.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Complaint Statistics &ndash; Social Media Bullhorn Effect</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Early statistics on complaints showed that 26 out of 27 people would not complain.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[iii]</sup></a>&nbsp; However, that does not mean they will go away quietly.&nbsp; On average, researchers tell us, satisfied customers will tell 8 to 10 people about a good experience, while dissatisfied people will tell 17 people of a bad one. (Please see Figure 1 below.)&nbsp; However, with the advent of social media, the impact of those discontented people increases geometrically: people who are dissatisfied&nbsp;<em>and</em>&nbsp;use social media communicate about their dissatisfaction with an average of 53 people, three and one-half times more people than non-social media users.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[iv]</sup></a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><img alt="" data-themekey="#" src="http://www.ronrassociates.com/SiteAssets/Amex_Survey_Data.jpg" style="width: 100%;" title="" /><img alt="" data-themekey="#" src="file:///C:/Users/ron/AppData/Local/Temp/msohtmlclip1/01/clip_image002.jpg" /><img alt="" src="/Portals/0/Amex_Survey_Data.jpg" style="width: 522px; height: 372px; float: left;" title="" /></span></p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;"><span style="font-size:larger;">Figure 1 Source: Social Media Raises the Stakes for Customer Service. (2012, May 2). Retrieved September 16, 2015, from http://about.americanexpress.com/news/pr/2012/gcsb.aspx</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>&#39;There&#39;s Gold in them thar complaints!&#39;</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">In consulting with clients on profitability improvement topics, we tend to focus on complaints early in our engagements. We have found no better source information on the shortcomings of an organization in addressing customer needs.&nbsp; When analyzed and interpreted correctly, complaints provide leads to needed changes in processes and systems, changes that can lower costs, increase revenue, and increase profits.&nbsp; In high growth companies, an excellent complaints management department is especially vital in sanding down the rough edges of an organization&#39;s newly-hewn processes.&nbsp; Unfortunately, most organizations, especially smaller or newer ones, are less likely to have anything but an&nbsp;<em>ad hoc</em>&nbsp;system for dealing with complaints. Managers may have procedures in place for dealing with customers who complain; however, there is no formal tracking or indexing of those complaints. This absence of indexing information means that no analytical data exists about the sources of complaints, making it hard to draw anything but general inferences, usually based on staff interviews, about the challenges the organization is facing in its systems or processes.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Moving from &#39;Complaint Folklore&#39; to Data-Driven Decisions</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">The power of complaint analysis comes in pattern recognition and inference.&nbsp; To move from anecdotal information to a more data-driven approach, an organization needs to develop a formal complaints management program that indexes and organizes complaint data.&nbsp; The first step in such a program is to develop a centralized, digital repository for complaints, one which categorizes each complaint using whatever tags and terms that are relevant to the organization.&nbsp; This information typically includes customer type or segment, product or service, time of day, week or month of the incident, distribution channel, geographic location, salesperson, CSR, and supervisor.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Further, the system will need to identify the customer touch-point and, based on an investigation, the apparent root cause of the complaint about later research and hypothesis testing.&nbsp; Managers should be especially careful not to depend on generic, canned categories from a system vendor.&nbsp; Time invested in categorizing each complaint with sensible descriptors, and keywords will pay off later by making it easier for staff members to search and draw inferences from the complaints data<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[v]</a>.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">In fact, over time, this detailed, disciplined indexing can create a robust database that will allow leaders and analysts to discern systemic issues within their organization. Certain types of complaints will repeat themselves, and by sorting and measuring complaints categories, the tracking system will allow a management team to diagnose problems in operational systems, customer service, and product offerings.&nbsp; This information will provide the senior leadership team with both qualitative and quantitative information about where they are falling short with customers or members, turning what was formerly departmental folklore into actionable data.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Tools</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">A first complaints database can be as straightforward or as complicated as an organization can afford.&nbsp; Excel </span><span style="font-size:larger;">spreadsheets</span><span style="font-size:larger;"> or Access databases work fine.&nbsp;&nbsp; Enterprise call-monitoring system vendors often can tack on some complaint management solutions to their systems. Higher-end solutions offer </span>keyword<span style="font-size:larger;"> or even speech pattern recognition systems to highlight for management intervention calls during which customers use expletives, or express anger, or extreme dissatisfaction.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[vi]</sup></a>&nbsp; In the middle market, software as service is emerging that offers complete, web-based, software as service (SaaS) complaint management systems.&nbsp; Indeed, there are some emerging software-as-service, cloud-based vendors who have developed systems that can affordably perform these services for small and medium-sized businesses, easily integrating with organizations&#39; Facebook, Twitter, and Salesforce.com accounts right out of the box.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[vii]</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Why Encourage Customers to Complain?</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Once a complaint management system is operational, leaders can also begin to solicit feedback, both positive and negative, by leveraging customer surveys, websites, social media, email, and customer service 800 numbers.&nbsp; Connecting input from these sources directly to a complaints management database allows leaders to drive the costs of processing complaints down. At the same time, a database allows the tracking of customer satisfaction and building up the amount of information they are receiving about consumer dis-satisfiers.&nbsp; This approach can make an organization much more responsive and provides companies with a lightning-fast source of feedback about new products and services almost immediately after rollout.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">A robust complaint management system gives customers a convenient means of redress, without forcing them to escalate their complaints to the sales line or even up through the organization&#39;s senior management ranks. And escalate they will.&nbsp; Our work has shown us that dissatisfied customers&nbsp;will&nbsp;call anyone they can to resolve their problems.&nbsp; In some cases, angry customers engage in so-called &quot;consumer vigilante&quot; activities using a burgeoning set of electronic tools to communicate their dissatisfaction.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[viii]</a>&nbsp;And, the angrier they are, the more time and diligence they will apply to let their issues be known. That means that if a company sells over the phone and customer service personnel or complaints, management personnel are not resolving customers&#39; concerns. Then customers will call the sales line</span> <span style="font-size:larger;">or the President&#39;s office.&nbsp; These calls, in turn, will push down conversion, increase acquisition costs, and perhaps cost someone their job. &nbsp;The term failure demand<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[ix]</sup></a>&nbsp;was coined by a </span><span style="font-size:larger;">British</span><span style="font-size:larger;"> researcher, John Seddon, to describe this effect.&nbsp; He used the term in the 1990s to explain exploding call volumes at telecommunications company call centers during a period of service transition when calls about service problems choked his clients&#39; sales lines. The bottom line? While facilitating feedback about bad experiences might seem like leaning into the punch, this feedback, properly managed, can allow an organization to neutralize issues quickly before they become regulatory, reputation-changing, or business-threatening nightmares.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Assembling a Complaints Team</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Another best practice is to assign an individual or group of individuals to be responsible for investigating each complaint and seeing it through to resolution.&nbsp; The individuals who work with customer complaints must be selected carefully.&nbsp; They must be courteous, friendly people, and they have to be smart. They need to be articulate, intelligent, and, above all, empathetic people with high emotional intelligence.&nbsp; These individuals should be very knowledgeable about how things work around the organization, with a deep familiarity with the organization&#39;s people, systems, and processes.&nbsp; They also need a gift for diffusing angry people, maintaining an even tone, even if the person on the phone or at the store becomes angry or profane.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[x]</a>&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">A complaints team should have some latitude to make decisions on behalf of the company to quickly create resolutions, but also understand when to involve the organization&#39;s leadership team when the situation calls for it.&nbsp; To keep them, managers will need to provide complaint staff with attractive remuneration -- the business equivalent of combat pay.&nbsp; Staffing levels required will vary by industry, the age of the company, growth rate, and newness of the product, with those organizations with the highest growth rates and the </span><span style="font-size:larger;">newest</span><span style="font-size:larger;"> products requiring the most substantial numbers of CSR&#39;s dedicated to handling complaints.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Following Up On Complaints the Walmart Way</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Once a complaint is registered, leaders will want to make sure their team always follows up with complaining customers within a reasonable time frame. A best practice is to apply Sam Walton&#39;s &quot;Sundown Rule&quot;<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[xi]</sup></a>&nbsp;by calling customers before the end of the business day.&nbsp; With this follow-up, Walmart teaches us, the person investigating the complaint needs to acknowledge the person&#39;s complaint respectfully, gather more information and then provide a time when they will get back to them.&nbsp; After the organization has completed its review of the complaint, give some form of response to the customer.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xii]</a>&nbsp;&nbsp; In doing so, the representative needs to call the complainant and tell them of their findings and inform the person complaining about</span><span style="font-size:larger;">&nbsp;what the organization can and cannot do to rectify the situation. (One company we worked with, for example, would offer to make a $100.00 donation in the name of the complaining individual to his or her favorite charity.&nbsp; For legal reasons, of course, they never admitted or denied any fault in the matter.) &nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Protecting the Team</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Very rarely, a complaint team will encounter customers or members whose issues they cannot amicably resolve.&nbsp; Some problematic situations will require the attention of senior members of the organization, including General Counsel, Product Development, Marketing, or Human Resources.&nbsp; Worse, sometimes the complaining party is under the influence of drugs or alcohol, is mentally unstable, is threatening legal action, or has become physically threatening.&nbsp; It is here where an escalation process needs to kick into place rapidly, at times involving attorneys and even law enforcement in the resolution of the complaint.&nbsp; Leaders will need to train complaint staff to shift gears and escalate quickly when the complaint starts heading in this very wrong direction.&nbsp; In these instances, the staff&#39;s well-being has to be the paramount concern.&nbsp; As with any customer-contact employee, front-line complaint handlers are well-advised not to use their last names.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Getting the Entire Organization Involved</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Once the complaints management infrastructure is in place, the company should train everyone in the organization about the complaints process, from top management on down.&nbsp; Training helps to obtain buy-in from the organization as a whole, making it clear it is the new law of the land.&nbsp;&nbsp; Leaders should make complaint management procedures part of new employee orientations and solicit the visible support of the CEO or Executive Director to encourage middle manager and executive participation in the program.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xiii]</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">When first establishing the program, it will seem to employees that the complaint management process is a &quot;witch (or warlock) hunt.&quot;&nbsp;&nbsp; Training will need to address this issue head-on.&nbsp;&nbsp; It is vital that employees be forthcoming about complaints, and that those documenting the complaint focus on the process issues behind the complaint, and not seek to &quot;pin the issue&quot; on one person or another.&nbsp; Of course, CSR&#39;s can be rude or short with customers, and this can cause complaints. However, more often, customers become angry because of some breakdown in a system or process.&nbsp;&nbsp; Often, because it is a process, and the CSR is just doing his or her job, his or her manager may have trouble finding a resolution.&nbsp; The person reporting the complaint is just the unlucky messenger.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>What If The Complaint Call Comes to You?</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Most executives shun complaint assignments because they dislike confrontation or dealing with angry customers.&nbsp;&nbsp; Here&#39;s how to neutralize even the angriest caller. When dealing with an angry customer, the best thing to do is to&nbsp;<em>thank</em>&nbsp;the customer! Thank them for bringing this issue to your attention.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[xiv]</sup></a>&nbsp;&nbsp; The person complaining, in their turn, will often appreciate your listening to them.&nbsp; Often, customers will say the person who thanked them is the first person who has listened to their concerns.&nbsp; The statement of thanks works because it indicates a willingness to hear the customer out.&nbsp; The manager is on their side now! At this point, management should listen carefully and acknowledge the customer&#39;s issue.&nbsp; Be sure to express empathy with the caller. But do so without admitting any failure on the part of the company.&nbsp; They should move the discussion to a higher level by looking for what the caller may know about what may have caused the issue to arise.&nbsp; The manager should work with the caller to identify the process problem or root cause of the concern the customer has raised.&nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">If the customer is demanding and says profane or provocative things, William Ury, a prominent expert on negotiation, tells us leaders should, &quot;Go to the balcony,&quot;<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[xv]</sup></a>&nbsp;by mentally pretending they are on a balcony, looking down on the situation.&nbsp; A best practice is to emotionally divorce one&#39;s self from the conversation to obtain the facts, asking detailed questions in a calm, friendly tone of voice.&nbsp; Whatever a manager does, she or he shouldn&#39;t allow him or herself to become provoked into anger, saying, or doing something they will regret later. &nbsp;Once the call is over, the manager should carefully document the request and be sure to keep his or her promises.&nbsp; He or she will need to follow up on the complaint and get back to the caller personally with a resolution, good or bad.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Policing Execution</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Of course, none of the hard work in managing complaint information identified above matters if no action is taken to rectify the issues identified by the process.&nbsp; Complaint follow-up is where senior leadership can have the most significant impact on complaints management. The executive to whom the complaints team reports must be adept at collaborating with other members of the executive team to bring complaints to a resolution.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">The CEO or COO, in turn, must lend his or her ear to whoever is in charge of complaints and should, at a minimum, review complaint reports summaries (with drill-down capability to individual complaints) monthly. &nbsp;For leaders seeking to push forward a customer-centric strategy, the complaints process provides essential information about how the execution is going.&nbsp; Indeed, when there is a leadership message to be sent about the importance of customers, many CEO&#39;s will respond to complaints themselves.&nbsp; Rupert Murdoch, for example, is famously said to have responded to criticism from a Wall Street Journal customer on Twitter himself.<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xvi]</a>&nbsp;A savvy CEO shares complaint information with his or her Board<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xvii]</a>&nbsp;and, in the instances of high visibility or particularly damaging complaints, keeps the Board&nbsp;apprised of developments and how they handle the claim.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Most importantly, the CEO should pay attention to what the organization is doing to address the&nbsp;<em>systemic</em>&nbsp;issues identified by complaint trends, perhaps going so far as to occasionally choose a complaint or two for discussion at senior management team meetings.&nbsp; Focus here should be on turning the information provided by consumers (i.e., &quot;Error with system&quot; messages on a company&#39;s website in the purchase sequence into action items for the leadership team (e.g., An assignment to the CTO to investigate and improve consumer website performance.)</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Executive&nbsp;Summary</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">&nbsp;A good complaint management process protects the organization&#39;s brand, management team, and reputation by identifying and addressing issues early on.&nbsp;&nbsp; By gathering, tracking, sorting, and attacking the root causes of complaints on a routine basis, an organization can make complaints a source of free consulting<a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[xviii]</sup></a>&nbsp;about what is making customers unhappy.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">A strong complaint management process involves the whole organization and focuses on improving the process rather than blaming people.&nbsp; When working properly, the complaints management process rapidly and automatically funnels information about what is making customers unhappy back to the people in the organization who are in a position to fix the problems.&nbsp;&nbsp; Finally, a good process follows up doggedly to make sure that the organization makes needed changes.&nbsp; It is these changes that will gradually transform the organization by improving customer experience, and pushing incremental cash flow to the bottom line in the form of newly-found profits.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[i]</sup></a>&nbsp;Comcast&#39;s &#39;Embarrassing&#39; Customer Service Phone Call. (2014, June 16). Retrieved September 16, 2015, from https://www.youtube.com/watch?v=yYUvpYE99vg&amp;feature=youtu.be</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[ii]</a>&nbsp;Complaint Handling Guidelines Residential and Small Business Customers. (2015, March 13). Retrieved September 16, 2015, from http://www.prc.gov/docs/91/91747/ChIR13.24a.Complaint-Guidelines.pdf</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[iii]</sup></a>&nbsp;Technical Assistance Research Programs (TARP), Consumer Complaint Handling In America: Final Report, White House Office of Customer Affairs, 1980.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[iv]</a>&nbsp;Social Media Raises the Stakes for Customer Service. (2012, May 2). Retrieved September 16, 2015, from http://about.americanexpress.com/news/pr/2012/gcsb.aspx</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[v]</a>&nbsp;<a href="http://www.emeraldinsight.com/action/doSearch?ContribStored=Mitchell%2c+V">V.‐W. Mitchell</a> (1993) &quot;Handling Consumer Complaint Information: Why and How?&quot;&nbsp;Management Decision, Vol. 31 Issue: 3</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx"><sup>[vi]</sup></a>&nbsp;Regulatory Compliance - Worksite Optimization. (n.d.). Retrieved September 16, 2015, from http://www.verint.com/solutions/enterprise-workforce-optimization/business-need/compliance-and-fraud/regulatory-compliance/index</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[vii]</a>&nbsp;Customer Complaint Quality Assurance Management Software &amp; Systems. (n.d.). Retrieved September 16, 2015, from http://www.coretec.com.au/complaintspro</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[viii]</a>&nbsp;McGregor, J. (2008, February 20). Consumer Vigilantes. Retrieved September 16, 2015. See&nbsp;<a href="http://www.bloomberg.com/bw/stories/2008-02-20/consumer-vigilantes">http://www.bloomberg.com/bw/stories/2008-02-20/consumer-vigilantes</a>&nbsp;for numerous examples.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[ix]</a>&nbsp;John Seddon, &quot;Freedom from Command and Control, Rethinking Management for Lean Service, Productivity Press, 2005 (pp. 26-28).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[x]</a>&nbsp;Better Practice Guide to Complaint Handling. (2009, April 1) p. 17. Retrieved September 17, 2015, from http://www.ombudsman.gov.au/docs/better-practice-guides/onlineBetterPracticeGuide.pdf</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xi]</a>&nbsp;Farfan, B. (n.d.). Wal-Mart Stores Mission Statement - Vision, Mission, Purpose, Headquarters, Founders Facts, and Trivia about Wal-Mart Discount Stores Chain. Retrieved September 16, 2015, from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Wal-Mart-Mission-Statement.htm</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xii]</a>&nbsp;Commonwealth Ombudsman, 2009, p. 21.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><a href="file:///C:/Users/ron/Dropbox/FTL_Manuscript/Draft_Complaints_Article_HBR__Blog.docx">[xiii]</a>&nbsp;Jeschke, K., Schulze, H., &amp; Bauersachs, J. (2000). Internal Marketing and its Consequences for Complaint Handling Effectiveness. In Relationship Marketing (Vol. C, pp. 193-216). 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