corporate love meter 2013

7/28/2019 Corporate Love Meter 2013

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The Corporate

Love Meter 2013

The Sad State of Company Customer Love Relationships:

They are tired and unexciting relationships that will be

easily stolen by a new shining suitor who will be willing to

excite and delight the customer.


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2013, Strativity Group: 2 www.strativity.com

Corporate Love Meter 2013 [email protected]

Table of Contents

Executive Summary ......................................................................................................................... 3

Whats Love Got To Do With It The (Not) Romantic Novel Version ............................................. 4

State of Corporate Love .................................................................................................................. 5

The Characteristics of Corporate Love ............................................................................................ 6

Customer Communication ............................................................................................................... 7

Obstacles to a Successful Love Relationship ................................................................................. 8

Love Plans for 2013 ......................................................................................................................... 9

UK Companies Succumb To Silent, Non-Loyal Existence ............................................................ 10

Executive Optimism Hindered by Non-Executive Pessimism ....................................................... 11

How To Develop Passionate Love with Your Customers - Recommendations ............................ 12

About the Study ............................................................................................................................. 13

About Strativity Group, Inc. ............................................................................................................ 13

Authored by:

Lior Arussy

Edward Murphy

Ildi Varga
http://www.strativity.com/http://www.strativity.com/mailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquirymailto:[email protected]?subject=Corporate%20Love%20Meter%20Inquiryhttp://www.strativity.com/


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Executive Summary

As corporations worldwide are seeking to differentiate themselves and gain their

customers love, we ventured to understand their readiness for such relationships.

Following the insights of 402 executives and non-executives who were surveyed duringJanuary 2013, the verdict is clear; companies are not great lovers.

The Corporate Love Meter 2013 Study Highlights:

74% of respondents characterize their customer relationship as an open

marriage or worse

Only 29% are focusing on emotional engagement (love and admiration) with

customers

37% admit that they have become comfortable in the relationship

29% claim that money became an issue in their relationship

25% of US respondents admit that they only speak when they fight (complaint

management)

Although 52% plan to sweep their customers off their feet in 2013, the likelihood of that

happening is quite slim. The study identified serious gaps between executives and non-

executives perspective and while executives who own the big picture believe that they

would do something different to rejuvenate the relationship, the majority of non-

executives are sticking to business as usual approach. Therefore, the executive vision is

less likely to be brought to life.

UK corporations have shown a gloomier approach to their customer relationships

compared to their US counterparts.

Every brand aims to establish an emotional connection with customers. Based on the

Corporate Love Meter 2013, companies have a long way to go to fulfill that promise.

Combining the current economic challenges and customer empowerment through social

media, it is time companies venture to learn how to become true, loyal, loving partners

for their customers.


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State of Corporate Love

While customer relationship strategies are geared to maximize customer wallet share, it

seems the majority of the participating companies failed to achieve engaged customer

relationships.

The majority of companies report non-loyal customer relationships with only 26%

reporting a monogamous relationship. The good news is that few, only 5% report their

relationship is a one night stand based on price. The majority of companies report that

they are in an open relationship where there customers are examining competition

reinforcing the need for emotional connections and value propositions. Such

relationships, needless to say, tend to be transactional in nature focusing on price and

less on long-term value. When customer fidelity is gone, the margins follow suit.

Exhibit 1: Nature of Relationship


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The Characteristics of Corporate Love

Every marketing executive aspires to have emotionally engaging relationships with his or

her customers that transcend price considerations and assure long-term relationships

and profitability.

The majority of the relationships, as the study indicates, are utilitarian in nature. Theyare characterized by rational needs such as time/convenience, price, and reliability. Only

29% of the respondents claimed to have an emotional connection with their customers.

It seems that executives and non-executives have reduced their customers to rational

creatures devoid of any emotional needs. Or, they failed to see any way to create such

bonds with their customers.

Exhibit 2: Customer Expectations


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Customer Communication

Communication is the cornerstone of every relationship. Ask any marriage adviser and

they will point to lack of communication as a sign of a relationship in crisis. The same

rule is equally applicable in commercial relationships. Most respondents declared that

they communicate privately when convenient to sales, expiration or when customers

complain. Only 23% surprise each other and try to create an exciting relationship that is

always evolving and growing. This attitude demonstrates little to no real investment on

the part of companies. No wonder customers keep their options open and refuse to

commit to a monogamous relationship.

It is important to note that, among US respondents, 25% declared that they only

communicate when they fight (e.g., customer complaints) which is the wrong time to

establish communication.

Exhibit 3: Communication with Customers


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Obstacles to a Successful Love Relationship

The greatest obstacles in customer relationships are getting comfortable and money

issues (not seeing the value). It is complacency all over again when each side takes the

other side for granted and fails to invest in the relationship. Companies on their part

keep on seeking new customers while investing little if at all in existing customers. And,

in return, customers keep on checking the competition and refuse to commit fully to a

single relationship.

The failure to see value Money becomes an issue usually stems from lack of

rejuvenating the relationship. What used to be exciting is now part of the norm. In the

absence of new, exciting innovations, the relationship becomes predictable and

eventually boring.

Twenty percent say the company and the customer want different things it is time for

counseling to realign each others desires.

Exhibit 4: Obstacles


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Love Plans for 2013

Most respondents want to reignite the love, with 52% claiming they will sweep their

customers off their feet by providing exceptional customer experiences and 51%

planning to try something new in the form of new products. This is wonderful news as

long as they will be transformed from plans to realities.

Exhibit 5: Plan For 2013


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UK Companies Succumb To Silent, Non-Loyal Existence

In times when UK-based companies must reinvent themselves to address the economic

challenges, we find their corporate love meter to be worse than among their US

counterparts. The UK Corporate Love Meter 2013 indicates gloomy relationships mired

by more complacency and less optimism about the future.

The Corporate Love Meter 2013 indicates that UK companies are:

Significantly less likely than US to believe they are in a monogamous relationship

Three times more likely than US respondents to believe there are in an on-again

off-again (indecisive) relationship.

Three times less likely to only communicate when there is an issue

Significantly less likely to plan to sweep customers of their feet, try something

new and shower with gifts

Exhibit 6: Nature of Relationship US UK

Monogamous (They give 100% of their business to us) 32% 22%

On-again off-again (Indecisive) 5% 15%

We only talk when we fight (Complaint management) 25% 8%

Sweep them off their feet (Provide exceptional service) 56% 43%

Try something new (Innovation New products) 54% 44%

Shower them with gifts to keep them loyal (Rewards

Loyalty Programs)20% 7%


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Executive Optimism Hindered by Non-Executive Pessimism

If executives are the heart of the organization, non-executives are the hands and

execution arms. Executives demonstrate a big picture view with more optimistic future

and investment. Non-executives, on the other hand, are less optimistic, and, therefore,

less likely to execute.

Exhibit 7.1: Customer Expectations - Comparison

Only 48% of non-executives are planning to sweep customers off their feet through

exceptional customer experiences vs. 66% of executives.

For executives to develop and deliver better love relationships, they need to get their

non-executives engaged and committed. But it is not just about communication and

commitment; executives need to provide a clear roadmap for execution. Currently, as

the Corporate Love Meter 2013 study indicates, non-executives are running on their

own convictions and are disconnected from their executives view and plans.

Exhibit 7.2: Plans for 2013 Executive vs. Non-Executive Perspective


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How To Develop Passionate Love with Your Customers

Recommendations

Take an honest look in the mirror: Measure the emotional commitment you

have to your customers and how they view your commitment. One of the

biggest obstacles companies face is thinking they are already doing everythingthey can to provide the best experience possible. In order to make change, you

need to understand where you really stand.

Time to fall in love again: Reconnecting with your customers cannot happen

with a haphazard plans or a siloed companies. A detailed companywide strategy

needs to be created and communicated it requires that all employees

(customer facing and non-customerfacing) to be onboard. Many companies will

need to go back to basics by learning whom their customers are and

understanding their needs and wants.

Engage in emotional not only rational love: Companies are well trained on

monitoring the rational market drivers such as price and product innovation

while ignoring the highly influential emotional experiences. Understanding and

appropriately responding to the customers emotional needs is a prerequisite for

customer engagement.

Get your non-executives on board: Internal communication and employee

education are critical. Far too often excellent strategies are created but fail

either because they are not communicated throughout the company or

employees are not provided the tools to succeed. Non-executives are the linkbetween upper management and the face of the companys front line

employees.

Start communicating more often not only when you need something or when

customers contact you because of an issue: All communications are an

opportunity to make customers feel important and special.By focusing solely on

customer issues when they arise, you will miss opportunities to demonstrate

that you know and understand your customers. Tell them what you are doing to

make their lives easier, how youre helping their community or send them a

birthday wish just to show them you care. Anticipate their needs and findunexpected ways to communicate with them to keep the romance alive.

Surprise them, sweep them off their feet: Having quality products, innovative

products and competitive pricing are not enough for todays customers.

Companies must define the experience they want to be known for and

employees must be provided the tools to deliver the target experience.


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corporate love meter 2013

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