Tag Archives: customer satisfaction

Closing the Customer Experience Gap

10 Oct
Customer experience includes all interfaces that firms have with people. A great experience leads to  satisfaction and repeat business. Accordingly, closing the customer experience gap is vital.  
In this post, we add to our prior coverage:

 

Closing the Customer Experience Gap

In sum, the American Marketing Association observes:

“The gap between what customers expect and brands deliver is big. Some brands get part of customer service right. But few connect across the whole journey for seamless conversation. To enhance relations, brands must deliver value. How can firms offer consistent quality service?”

“Brand reputation and success mean treating shoppers well. And offering them all they need, as they need it. To that end, they will use data to enhance the experience. They will grasp customer needs and wants. They will be connected at each stage of the purchase process. Firms cannot market ‘at’ people.”

Despite this, some firms are weak. Jana Barrett writes for Business 2 Community:

“Firms are bad judges of customer experiences. Bain & Company surveyed 362 companies. Eighty percent said they delivered ‘superior customer experience.’ According to customers, 8% did. In the age of hyperconnectivity,  firms should be more in tune. But in reality, a wide gap exists.”
 
Barrett offers tips. “(1) A great experience is seamless. It works across channels and devices. (2) A great experience is proactive. It anticipates customer needs. (3) A great experience is receptive. the firm seeks feedback. (4) A great experience is human. It’s built on relations. (5) A great experience is dynamic. It adapts to shifting preferences.”

The video is a good summary from Business 2 Business.

 

Improving the Customer Shopping Journey

McKinsey has a “CEO Guide to Customer Experience.” It includes the customer shopping journey.

“What do my customers want? Savvy executives ask this. And leading firms know they are in the customer-experience business. And they know how they deliver is as vital as what they deliver. This guide taps the expertise of McKinsey and others. It explores customer interactions. In addition, it looks at steps to improve customer-centricity. See the infographic.”

 

Closing the Customer Experience Gap. This CEO guide explores the basics of customer interaction. It covers steps to be more customer-centric. See the infographic.

 

Next-Day Delivery and Same-Day Delivery

2 Oct

Next-day delivery and same-day delivery are hot shipping topics. And they impact shopping. Their use will grow for the foreseeable future.

First, these are a few of our posts related to delivery (shipping).   Transforming Logistics.   What’s Ahead for the Subscription Box Service?    Is Uber Eat(s) Setting Itself for Defeat?

 

Background

For a long time, buyers knew mail and deliveries would take days or weeks. In fact, the U.S. Postal Service dates to 1775! Ben Franklin was the first Postmaster General. Due to limited shipping options, mail and package delivery were slow.

In the past 110 years, the USPS has gained a lot of competition. Two of the best-known private delivery firms are UPS and Fed Ex. UPS started in 1907, Fed Ex in 1971.

In 1964, Xerox introduced LDX (Long Distance Xerography). This was the first “commercial” fax machine. It worked over phones. Fax use soared with the development of faster-speed modems. Today, faxes are largely replaced by E-mail, texts, and other online formats.

In terms of package delivery, three trends dominate. (1) Higher-speed shipping modes exist. (2)Other firms emulate the Fed Ex hub-and-spoke regional network system. (3) Resellers such as Amazon have their own regional warehouses.

 

Adding Delivery Options

Throughout the latter part of the 20th century, delivery options rose.

In particular, consumers could choose from three options. Regular delivery. 3-5 business day delivery. And 1-2 business day delivery. USPS, UPS, and Fed Ex — respectively — were the leaders for each of these options.

But in 2005, Amazon disrupted consumer delivery expectations. It introduced Amazon Prime. J.P. Mangalindan reports for Fortune. “Amazon Prime aimed to get customers to increase spending. For $79 a year, members got free two-day delivery on unlimited items.”

And wow, Amazon Prime has grown. For instance, see the chart from Statista and Business Insider. Note: Today’s annual cost is $99. It includes streaming video and other services. U.S. Amazon Prime members total 85 million in 2017.

 

Next-Day Delivery. Same-Day Delivery. Emerging. Launched in 2005, Amazon Prime aimed to get customers to spend more. For $79 a year, members got free two-day delivery on an unlimited number of items. Amazon sweetened the pot from there.

 

Next-Day Delivery and Same-Day Delivery

In recent years, delivery options have further evolved. Next-day delivery and same-day delivery are key choices.

USPS, UPS, and Fed Ex pioneered next-day delivery. Today, express mail service (EMS) exists in 190 countries. EMS promises delivery in as little as 1 day. In the U.S., EMS takes 1-2 days. EMS has earned a strong following. Remember, Amazon Prime promotes 1-2 day delivery. It relies on USPS, UPS, and Fed Ex. But, Amazon keeps adding its own delivery services.

Years ago, same-day delivery started at the local level. Think food delivery and prescription delivery. It took time for large firms to see the advantages. In addition, big firms found same-day delivery costs to be too high.

20 years ago, Webvan (an online grocer) began same-day delivery. It started in 1996 and went bankrupt in 2001. At its peak, Webvan served 10 U.S. cities. Most were in California. Due to high expenses, Webvan had lost $800+ million. On the other hand, we have Peapod (founded in 1989). It works with its chain supermarkets to deliver locally. It is successful.

To  summarize, same-day delivery is HOT! For example, these illustrate same-day delivery services.

 

Delivery and the On-Demand Economy

In short, delivery options transform shopping. At the same time, consumer expectations soar. At any rate, we are in the on-demand economy.  To this end: See it. Want it. Buy it. Then, get it immediately. All in all, no matter where we shop.

 

According to Robert Memery of 2flow, an Irish logistics firm:

“I have produced an infographic analyzing the on-demand economy. It offers advice to firm about short delivery times. This is important if they want to keep happy. 43% of shoppers report post-delivery satisfaction is influenced by whether purchases were delivered on-time? Same-day or next-day delivery might not be possible for some firm. But, it’s vital that all firm try to reduce delivery times. Long delivery times are a killer.”

 

Look at the infographic for a number of insights.

Next-Day Delivery. Same-Day Delivery. In short, delivery options are transforming. At the same time, consumer expectations soar. At any rate, we are in the on-demand economy. To this end: See it. Want it. Buy it. Then, get it immediately. All in all, no matter where we shop.
 

Better Customer Experience: Factor Consideration

29 Sep

At our other blog, Berman Evans Retail, we focus on retailing. In 2017, we have several posts on better customer experience. The topic is that important! So is factor consideration. The best companies win prestigious awards.

For instance, these are some Berman Evans customer experience posts from 2017:

 

Better Customer Experience

For today, we discuss creating better customer experience. What can we do to make customers happier and apt to be loyal?

With that in mind, consider these insights from Kali Hawlk for Shopify. Notably, the insights apply to all types of marketing firms:

“All in all, products in your store speak for themselves. Accordingly, for some retailers, that’s all the experience customers need. Instead, people want delight by interacting with great items on your shelves. In fact, many retailers slip and get stuck.”

“Doug Stephens has a blog post at Retail Prophet. In that post, he says ‘most retailers assume customer experience is aesthetic.  They feel it deals with how stores and Web sites look and feel’ and not anything else. Settling for this definition will limit your brand. Indeed, it may cause you to miss chances to craft something great for customers. In fact, any firm can have memorable customer experiences.”

 

Factor Consideration

In brief, these are Stephens’ factors to consider for great customer experience:

  1. Engaging Find ways to engage with customers. Again, this means at the store and other spots (like the Web). When you are not sure what engages shoppers, build a customer persona. This helps better understand preferences and pain points to address.”
  2. Unique —  Think different than others. Provide something that no other brand gives to shoppers. This includes your signs and logo. It even means colors you use or music you play. A unique branded experience makes a lasting impression.”
  3. Personalized — You can customize loyalty programs.  Or, create curated collections and special  shops. This lets you tailor to customer needs and wants in a personal way.”
  4. Surprising — Brush up on your consumer behavior psychology. At that point, engineer experiences that beat expectations.”
  5. Repeatable — A customer experience can fail if it’s a one-time event. Instead, create processes that give each customer the experience you design. And do so every time they interact with your brand.”

 

Click the image to learn additional material.

Better customer experience. Factor consideration. Concentrate on 5 main experience considerations: Engaging. Unique. Personalized. Surprising. Repeatable.
 

Trix: Healthy Cereal Or Not?

27 Sep

McDonald’s and Coke know many consumers want healthy food and beverages. As a result, they added to their healthy offerings. Our posts on healthy foods include these. Want to Attract the Health-Conscious Consumer? Tricking Kids into Eating Healthy Veggies. How Healthy Are We? Perceptions Vs. Reality. Likewise, firms make healthy cereal due to presumed interest. An example of this is General Mills with Trix healthy cereal.
 

Healthy Cereal? Trix Is for Kids

In 1954, General Mills introduced Trix as a sugar-coated version of Kix. The “Trix is for kids” slogan dates to 1957!! Trix is popular enough for Family Guy to spoof it an episode.

 

In 2016, General Mills decided to remove the original Trix. The firm replaced it with a natural version. General Mills thought was a great idea. To the contrary, it it did not work. Why? Kids loved Trix as it was, not the new version.

In sum, as Wall Street Journal‘s Annie Gasparro reports:

 

General Mills is going to reintroduce the original Trix, artificial flavorings and all. It will go on sale alongside the more wholesome version in October. This reverses the firm’s’ pledge  remove artificial colors and flavors from all cereals. It said its 7 all-natural cereals boosted sales by 6% in early 2016. At the same time, natural-ingredient haters made calls, E-mails, and social-media posts. It turns out consumers ‘don’t all want one thing.”

 

This image shows the look of natural Trix (left) and original Trix (right).

Healthy cereal. Naturally colored and flavored Trix on the left, compared with the artificial version on the right.

Photo: Ackerman + Gruber for Wall Street Journal

 

This image shows the packaging of natural Trix (left) and original Trix (right).

Healthy cereal. The Trix version with no artificial colors and flavors, left, was introduced two years ago. The new-old version, which will use some artificial colors and flavors, is being called Classic Trix. Text size comment19 share tweet email Print more It turns out some Trix eaters prefer artificial colors and flavors.

Image by Star Tribune


 

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