To read that customer satisfaction is old news may seem incorrect. While satisfaction is still important, foward-thinking companies are working with customers early on to create advocates for their brands and not just simply hoping to satisfy a broad customer base.
This article in Harvard Business Review goes along well with what we discussed last week. When companies are looking at customer satisfaction data they are looking in the past. One of the things I hear over and over at work is "we did it this way on the last project and it worked fine". If everyone worked off of past data there would be no progress and customers would never be excited rather merely satisfied. Companies that are cutting-edge recognize this and are in tune with what the present and future needs of customers are or will be.
We use Apple as an example quite a bit, but they are a great example of a company that has created advocates of their brand. My friends who have Mac computers really do speak out about how loyal they are and why their computer is the best. I, on the other hand, am just satisfied with my PC. Yeah I like it, but only because it does a job I expect it to do.
Is anybody an advocate of a brand as opposed to just being satisfied? Or do you have any additional thoughts on the topic?
As I read this post, the Weight Watchers' advertisements with Jennifer Hudson as an advocate for the WW program comes to mind. Those of us who watched her on American Idol remember her weight battles. I also remember reading about her marriage and the birth of her child. Now I see ads with her looking very slender and estatic about life. She LOOKS satisfied with her accomplihments. I see these ads and I am convinced that if Jennifer Hudson can look this good so can I, and it makes me want to join WWs. I believe this type of ad is a great balance for showing past success (i.e. customer satisfaction) and future promise.
ReplyDeleteIn regards to your question about "just being satisfied", I believe satisfaction is an acceptable target in markets where there is a lot of competition and little differentiation. Some products that come to mind are: toilet paper, toothpaste, bottled water, etc., I am okay with being satisfied. However, in purchases that hold some value to me because of their cost, my time, or the product's function, I use the internet to view my options and be a better informed consumer. I believe that because of the availability of information, companies will have to increase their efforts to differentiate themselves and market in a way that draws and retains the customers' attention through to a sale.
I am satisfied with many products, but an advocate of only a few. If the producers of these products showed no innovation and did not progress, I would cease being an advocate. Heck, I would not even be satisfied anymore. In today’s markets innovation is a key to staying at the head of the pack. Companies that rate high in innovation schedule time for it. For example, Google allows its employees to devote 20 percent of their time to innovation which paid off in the development of products including g-mail and Google News. Innovation needs to be strategically planned for. Employee involvement in innovation is also likely to keep them engaged and interested.
ReplyDeleteCustomer satisfaction is not necessarily old news. I think customer satisfaction happens along with customer experience. I think satisfaction is the first emotion resulting from a positive product or service-related experience. The consequence of satisfaction in my mind is repeat business and customer loyalty. On the other hand, todays consumer is well equipped with all sorts of information on a product. This is a challenge for all companies because customer satisfaction becomes almost negligible. The market is swarmed with competition - look-a-likes, substitutes, etc. The "new and improved" slogan even is now old. Fairly soon, "Wowing the customer" will become obsolete. Innovation is great and definitely necessary for the company to be a going concern (quite a minimal expectation for tons of dollars devoted to R&D). I don't have a specific brand that I am completely married to. I do have standards of expectation: a) made in the U.S.A. b) price must be right c) versatility.
ReplyDeleteOh by the way, Cody, I just purchased a Mac, but I don't know if I have completely converted from PC to Mac yet. Each have their "good" and "can be better" attributes. Neither are in the bad category. So can we say, I am a satisfied customer, but not "wowed"?
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ReplyDeleteI find it interesting that customers demand total satisfaction with some products and services without and allowance for mistakes, yet, I would imagine that there are very few people who believe that they do their own job perfectly. There seems to be a disconnect between expectation of self and expectation of others. Maybe managing customer’s expectations should be more of a focus than 100% satisfaction. If customers really like a brand and had the expectation that they could contribute to the company, product or service wouldn’t that be best for all parties involved? Just think if your customers (or in the case of government, citizens; or in the case of non-profit, clients and donors) were thinking critically instead of being critical? They could be calling you up and saying, “hey! I think I know how we can do this better.” Talk about value.
ReplyDeleteWhat do you think? Am I naive and fluffy or could it work?
Stacy's comment made me think about the service industry, specifically, the health insurance industry. We occasionally have people that write letters indicating, "if you stated this in your Evidence of Coverage" or "if you clarified what XYZ means, it would be easier to understand." We really appreciate the feedback and changes have been made due to customer comments. I think that is more common than you think. It also shows the customers we really care about them and value their opinions.
ReplyDeleteProduct innovations, breakthroughs will help us to attract new customers, while customer satisfactions is a retention mechanism. One must have positive experience with the brand in order to try new products that brand may come up with. Customer satisfaction is the baseline for a product's existence, it is more of a stage of being content. To achieve the next level of brand commitment as Cody has used in the case of Apple, the brand must 1. Functionally satisfy the customer 2. Provide an after care service/community 3. Create an aspect of social connectivity among users 4. Continue to 'wow' its users with a new and improved version of the previous product before the 'newness' dies down 5. Differentiating and continue to increase brand awareness.
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ReplyDeleteI think customer satisfaction is definitely important, whether a company is providing a product or a service. I also agree with Cody on his statement, that if companies worked off past data, there would be no progress and customers would not be excited about new products, but merely satisfied. I think being innovative is very important for a company to succeed, especially in times like this, where the economy has put a strain on many, creating more of a competitive marketplace for companies.
ReplyDeleteIt is really important that companies have the ability to “redesign and reinvent themselves.” To give an example, I would say that I am an advocate of Honda. I have had my car since ’99, and of course, would LOVE a new car, but quite frankly, like not having a car payment. I have my Honda for a reason, because it does the job it was purchased for and provides me with a service I need. I will definitely buy Honda again in the future, because I am more than a satisfied customer. Just look at the radical innovations Honda has done with the FCX Clarity FCEV - leaving smaller carbon footprints in the world:)
As a knee-jerk reaction, I think customer satisfaction is all that matters to the survival/longevity of a product, but this article and your statement, "foward-thinking companies are working with customers early on to create advocates for their brands and not just simply hoping to satisfy a broad customer base" really reveals how this shift in thinking is pretty evident. I have known many relatives growing up who were strong advocates of their vehicle brand - the "chevy man" or the "ford man" - particularly. It always seemed funny how both owners were constantly working on their vehicles, paid about the same price, did the same activities with the vehicle and got about the same satisfaction as the other owner, but they'd swear one was good and the other nearly evil. Advocacy and loyalty really was the key, not necessarily satisfaction to be the owner of a far superior product unlike any other.
ReplyDeleteI'm hard-pressed to identify products I'm advocates for or loyal only to. My loyalty usually falls to the bottom line and the amount of money I'm going to fork over. The closest products would be toward tools and guns, though I own several different brand names. I guess the advocacy would come more in brands I would NOT buy for certain items. Oh, and pop. I won't knowingly purchase no-name or store brand pop, no matter the deal.