In 2017, I’m still very surprised to see so many companies with either no or a poor Youtube channel and that’s why I decided to write a few words about the importance of considering your Youtube channel carefully in your marketing mix.
Videos have become the new way to consume Web content. To get convinced of this, you can search for statistics on the Web – there are plenty of them – but you can also introspect yourself and analyze your own behavior: when you search for information, look at when you use Google and when you use Youtube … I would assume that like me, you prefer watching a short 2′ – 3′ video rather than reading a long article.
Moreover, when we look at the level of engagement, the engagement is much higher with a video: according to recent research, while 80% of the web users watch a video, only 20% read a text.
In terms of content type, Forrester predicts that 90% of data worldwide will be video in 2019 and Google and Facebook have anticipated that by ranking up video results in their search engine results.
So, let’s introspect myself and list some of the key topics that I prefer search on Youtube rather than Google:
Entertainment: game tutorials for kids, humor, cartoons …
Retail: product presentation, review and testing …
Culture: history, geography, economics, media and politics …
Home: handy work, fixing things at home …
Arts: learning how to play music, watching amazing musician performance …
Customer-first, customer 360, customer satisfaction … this is the big hype today and in most probably the greatest challenge for the upcoming years.
Even though the customer focus has always been part of company strategies, the rise of the digital economy has shifted the power towards the consumers:
Search engines allow consumers to search content and advice easily, forcing companies to publish quality content related to their brand.
Social media allow consumers to share experience (good or bad) instantaneously, forcing companies to hire community managers to manage the customer emotional reactions in real-time.
Mobile apps have used customers to delightful experiences and 24/7 use of service, forcing companies to provide a secured and controlled access to their core services in real-time (through MBaaS and API Management technical solutions for example).
Consumer loyalty is decreasing and consumers tend to switch to a competitor offering in just a few clicks, forcing companies to put the customer at the center of their new strategy.
In order to clearly measure the impact of customer satisfaction on your business, let’s remind a few key facts:
Happy customers who have their problem resolved will tell 4-6 people about their positive experience.
A dissatisfied customer will tell 9-15 people about it. And approximately 13% of dissatisfied customers will tell more than 20 people about it.
It costs five to six times as much to get a new (first-time) customer as it does to keep a current one.
We understand the importance of establishing a strategy that is based on customer loyalty. Every brand dreams of having loyal customers, such as the “Apple fans”, the “Amazon fans” or the “Star Wars fans”. Whatever you do, they have good chance to be excited and promote your new products.
Why is customer satisfaction so hard to attain?
Customer satisfaction is extremely complex to improve because it involves a lot of people and departments within your company: sales, support, branding, quality, product design …
It requires every employee in the company to focus on the customer value instead of looking at internal issues and politics. That’s why customer satisfaction is so hard.
I was last week in Berlin and was wondering why my airliner decided to only put one single employee at the check-in desk while there was more than 70 people queuing in the line. I was also surprised to see that the employee was remaining surprisingly calm and didn’t change his cadence to help customers who started to grow impatient. The following quote of Howard Schultz, the CEO of Starbucks, helped me figure out why:
If employees don’t feel cared by the management, why should they be the only one to care for the customer satisfaction ? This quote requires in my opinion a few seconds of silence …
So, how to improve customer satisfaction?
For many years, companies have developed many types surveys to understand their customers. The problem with surveys were following:
Happy customers don’t bother filling a survey
Unhappy customer have more chance to fill a survey but expects to be contacted in return, otherwise they will get even more dissatisfied.
Survey questions can often be misinterpreted by customers
Survey answers can be often be misinterpreted by marketing departments.
Survey results don’t circulate properly within the organization and most people in corporate functions don’t understand how they can influence the customer relationship.
A few vendors have developed solutions to improve the customer experience aka customer feedback automation solutions. They provide dashboards that can easily circulate across Executives, Corporate Staff (Market researcher, product managers, website manager), Operational & Frontline Staff (regional manager, frontline managers and employees). Customer feedback is automatically collected across all channels, including locations, call centers, web sites, social media … and turned into actionable metrics. Dashboards can be accessed online or through email reports or via mobile devices. Goal is to save at-risk customers by contacting them directly with appropriate actions.
In today’s fast changing environment, how to reach your customers efficiently and create a delightful experience to engage with them, retain them and create new business ?
Omnichannel vs multichannel
Before going further, I think it’s important to understand the difference between “multichannel” and “omnichannel”. Those two terms sound similar but there is actually a subtle difference in the digital practitioners’ world.
The difference comes down to your company’s approach to digital channels. Let’s say you want to address the common channels – physical, phone, web, mobile – and focus on maximizing performance of every channel individually. This is a multichannel approach. You will set up different specialized teams with the right tools, technology and expertise for their specific channel. Every team has their own reporting and revenue goals. Unfortunately, following obstacles can play against the company’s interest:
slower time to market
consuming resources of expensive personal – legal, compliance, regulatory and executive staff
error prone approach to deliver a consistent message across channels
not a continuous common user experience across platforms
This reminds me of the e-commerce industry between 2005 and 2014: most retailers had a separate e-commerce team that had no internal interaction with the stores. Actually, the e-commerce web site was considered as a “virtual store” and its revenue was directly compared to those of physical stores. With this type of organization, there was no chance for the “Web to Store” and “Store to Web” marketing strategies to take off and that’s why most retailers have changed their organization since then to adopt an omnichannel strategy.
An omnichannel approach puts the customer at the center of its strategy and get rids of corporate silos. A digital customer is today using multiple channels simultaneously and expects to live a consistent experience:
comparing prices on the Internet while being in the store
getting additional product information while buying in a store
getting information on the Internet and receiving a voucher to be used at the local store
leaving store and receiving attractive offers by SMS on its mobile to go back to the shop
We will see that this represents a strong shift in the corporate culture …
Putting the customer at the center of your strategy
The concept seems basic but requires important transformations at multiple levels in your company:
an organizational transformation: change the org chart to create customer-focused teams gathering experts from different functional teams and getting rid of the organizational silos slowing down every decision and killing innovation.
a management transformation: turn the metrics into customer-oriented metrics and not just revenues per product line or per channel; set new objectives that are aligned with the customer engagement level.
an IT transformation: turn all legacy applications and technological siloes into digital-enabled systems communicating with the new ecosystem through APIs.
Those transformations and their related challenges need to be addressed urgently by many industries to keep the customer relationship and not be desintermediated by new nimble players.
Enabling your applications for omnichannel
If you work in a large company that is not a GAFA, your applications are extremely heterogeneous because they have been acquired and deployed over several decades. Mainframes and in-house solutions are still there and not about to disappear from the IT landscape. Why ? Because they process critical information and do the job well. Replacing them would be an extremely high investment that could not be justified.
In order to help companies embrace the digital economy and be able to have an omnichannel strategy, middleware vendors, such as Axway, have developed interesting solutions to enable bi-modal IT. This consists in enabling APIs on top of existing applications in order to communicate with mobile, Internet of Things, social media and multiple partners who are also adopting this approach. Why are APIs so important ? This is because they are the lynchpin for digital business, they are the de-facto standard for modern communication.
By having a unified API Management layer at the edge of the IT architecture, companies can leverage their data and services and expose them in all digital channels. The experience on every channel is optimized by implementing dedicated policies making sure the delivered content/data is optimal for the device.
Enabling your marketing teams for omnichannel
Beyond enabling application integration for omnichannel, it’s also important to enable the marketing teams with omnichannel marketing tools. Their job is to make sure the services that are delivered to customers provide the most delightful experience in order to increase customer loyalty and create new business.
That’s what “Customer Communication Management” is about. This consists in enriching existing services with marketing-processed content.
As as example, take a bank statement:
API Management solutions allow to publish bank statements on the web site, on mobile, on apple watches and even potentially authorize other applications to access your account with your authorization if needed.
Everybody checks its bank statement
But what about turning the traditional statement into new modern and engaging statement ? Making this experience richer ? What about using this statement to provide additional content that makes sense to the customer ? Like embedding enriched digital items such as:
interactive and responsive dashboards
calling an agent
getting called back
videos (the rising media)
chat box with picture of the bank advisor
This concept is called “dynamic communication”, offering unmatched customer experience.
This allows to have a single team working on the messages dedicated to all channels. Layout, design and templates are centralized. Variables can be inserted and are fed with data coming from the different systems to create personalized messages. This approach:
accelerates digital adoption
creates new demand and revenue streams
Customer Communication Management (CCM) solutions allow to offer this enrichment across all channels to keep a consistent omnichannel communication:
a unique proofing and validation workflow
How do they do that ? They centralize the process of customer communication. Instead of having multiple teams working separately for every channel and spending a lot of time in internal alignment, CCM solutions allow centralized actions such as design, composition, proofing, approval, deployment, tracking and reporting, archiving
Analytics & Data enrichment
You can’t control nor improve what you can’t measure. Analytics is the master piece of every digital architecture. You need to have instant visibility on your customer behaviors, application health, SLA enforcement …
Dashboards with drill-down capabilities allow you to prepare for internal reviews and improve your next campaigns.
Data enrichment is a also extremely important to better engage with your customers through custom messaging and optimize the ROI of your campaigns. Data coming from customer response tracking are sent and stored into data lakes connected to the CRM. This helps with customer segmentation and feeds targeting algorithms that provide personalized content to reach higher conversion rates. This looks very similar to my previous experience in digital advertising: provide the customer/prospect with the content/ads is interested in in order to create a positive experience, a stronger engagement, more business and higher ROI.
I’m currently working on an internal sales training regarding the next release of our API Management product. While preparing my material it turned out I was not fully satisfied with my notes and wanted to explain in a more graphical way which were the different types of features of our new release.
There are indeed three main types of features:
Features that create Value to attract customers
Features that ensure Quality for reputation and customer satisfaction and retention
Features that create Innovation to differentiate your product from the rest
After a few thoughts, I decided to leverage the Kano model which is very useful to position features on a map.
Kano was a Japanese professor who designed a model that describes three unique types of customer requirements:
The basic requirements (called by Kano “Must-be” quality): those are features that MUST be in your product. They are taken for granted by your customers and result in customer dissatisfaction when not fulfilled. They represent the price on entry of the market.
The performance requirements (called by Kano “One-dimensional” quality) : those are features that result in satisfaction when fulfilled and in dissatisfaction when not fulfilled. The level of satisfaction/dissatisfaction is proportional to the level of achievement/non-achievement.
The excitement requirements (called by Kano “Attractive” quality): those are features are also called “WOW Factor” or “USP” (Unique Selling Proposition). They delight the customer when delivered but don’t cause dissatisfaction when not achieved. This type of features incorporates a level of “excitment”, spurs customer imagination and makes him discover what he never thought of before.
This means you can classify your product features into one of those three categories. You might also have features that don’t fall into this classification that are called by Kano as follows:
Indifferent quality: These features are neither good nor bad and they don’t result in either customer satisfaction or customer dissatisfaction. They are often features that need to be done for internal architecture design and better code maintainability.
Reverse quality: I like this type of features because illustrates the paradox of human nature. Those features generate dissatisfaction proportional to the level of fulfillment. This usually due to the fact that the customers might not like it for personal reasons.
The other interesting aspect of the Kano model is that the “Excitement requirements” evolve to the “Basic requirements” and need to be replaced by new “Excitement requirements” through innovation to keep differentiating from competition.
The Kano model can be represented graphically as follows:
To conclude, please check out this excellent video made by KanoModel.com