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Plus...
Latest ThinkingOnline PanelsBook Review
COMPANIES IN
THIS ISSUE
HalfordsLand SecuritiesThe Co-operative GroupLeeds Federated
DOESSPONSORSHIPWORK?LATEST UKCSI RESULTS
INTERNAL CUSTOMERS
HOW PEOPLE USE TABLETSAND SMARTPHONES
MEASURING SATISFACTIONIN SOCIAL HOUSING
SPONSORSHIP
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Further information please visit our website or email [email protected]
www.leadershipfactor.com
New Hal Day Briengs
Tursday 18th October 2012 Tursday 15th November 201209.00 12.00 - Central London 09.00 12.00 - Central Manchester
Measuring complaints
A practical guide on how to measure your customers experience with your
complaints process. Find out how to drive improvements and reduce customerdefections.
Consistent customer experience across communication channels
Whether its face to face, online or through a call centre, customers expect
consistency in their experience every time they interact with a company. Do
you have the right measures to understand your customers multi channelexperience?
Tursday 18th October 2012 Tursday 15th November 201213.00 17.00 - Central London 13.00 17.00 - Central Manchester
Customer Satisaction v Net Promoter Score v Customer Efort Score
Debate the pros and cons of different ways of surveying your customers. Find
out which is the best measure for your organisation and how you can use the
best bits of all three.
uesday 23rd October 2012 uesday 6th November 201209.00 12.00 - Central Manchester 09.00 12.00 - Central London
Measuring the non customer experience
Most organisations measure their customer experience but they tend to know
very little about the people who arent their customers. Find out what causes
customers to defect or not become a customer no one can answer this better
than your non customers.
uesday 23rd October 2012 uesday 6th November 201213.00 15.00 Central Manchester 13.00 15.00 - Central London
Housing Brieng measuring tenant satisaction with your repairer contractors
Assessing contractor performance is important - a well designed and actionable
survey will track and highlight any issues that impact on your overall tenant
satisfaction. Find out how to set fair targets for your contractors to ensure high
quality standards.
Wednesday 7th November 201209.00 12.00 - Central London
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VOLUME 2 ISSUE 2 AUTUMN/WINTER 2012
6 UKCSI
The latest results and insights from
the UK Customer Satisfaction Index
12 Case study
Land Securities - Satisfying internal
customers
YSP18 Online panel
Pulse of the nation online panel
surveys
24 Technology
iTV. Another game changer?
26 Latest thinking
The long and winding customer
journey
29 Technology
Social satisfaction
30 Case study
A new approach to customer
satisfaction in social housing
32 Customer
Satisfying the high rollers
33 Customer
Golf club satisfaction
34 Book review
Thinking Fast and Slow by
Daniel Kahneman
Inthisiss
ue...
22 Technology
How do people use tablets?
21 Technology
How do people use smartphones?
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Nigel Hill editor
Customer Insight is the magazine or
people who want their organisation to
deliver results to employees, customers
and any other stakeholders as part
o a coherent strategy to create value
or shareholders. We publish serious
articles designed to inorm, stimulate
debate and sometimes to provoke.
We aim to be thought leaders in the
eld o managing relationships with all
stakeholder groups.
Editor:
Production Editor:
Designer:
Creative Director:
Advertising:
Nigel Hill
Chris Newbold
Rob Ward
Rob Egan
Charlotte Ratcliffe
Printers o
Customer Insight Magazine
Customer Insight
c/o The Leadership Factor
Taylor Hill Mill
Hudderseld
HD4 6JA
NB: Customer Insight does not accept
responsibility or omissions or errors. The points
o view expressed in the articles by contributing
writers and/or in advertisements included in this
magazine do not necessarily represent those
o the publisher. Whilst every eort is made to
ensure the accuracy o the inormation contained
within this magazine, no legal responsibility will be
accepted by the publishers or loss arising rom
use o inormation published. All rights reserved.
No part o this publication may be reproduced orstored in a retrievable system or transmitted in
any orm or by any means without prior written
consent o the publisher.
Copyright CUSTOMER INSIGHT 2012
ISSN 1749-088X
Companies are racing to adopt technology and be seen as leaders.
Within the last month M&S announced the roll-out o a wi- initiative in its
stores to enhance the customer experience. It will see sta equipped
with iPads to help them give a better response to customer enquiries,
QR codes around the store or customers to scan with their mobile
devices and large interactive screens resembling giant iPhones to engage
customers.
The latest UKCSI results (rom page 6) conrm that organisations with the
best customer satisaction tend to deliver the best customer experienceacross multiple channels. But just because technology is exploding and
the top 2 companies on the UKCSI are both internet retailers, it would
be a mistake to assume that the web is where you need to ocus your
customer service investment. The importance o channels varies across
industries and above all depends on how customers want to interact with
your type o business. For example, or utilities and most public services,
customers are much more satised when they receive personal service
than when using the internet (see page 8).
Clearly its a dilemma. Youre being warned rom all sides not to get let
behind on technology and were saying the same in several technology-
ocused articles in this issue o Customer Insight (rom page 21).Moreover, theres a strong trend across many organisations towards
encouraging (orcing?) customers to deal with them over the web. This
has strong appeal to the organisations because its cheap. But is it right?
There are some guidelines that apply almost universally. Inormation
gathering is a very popular use o the web, so make it easy or customers
and potential customers to nd out anything they want to know rom
your website and rom other relevant third party sites. When it comes to
other things customers want to do with your organisation (e.g. purchase,
communicate, make an enquiry or a complaint, get advice or assistance),
most organisations will nd that they are aced with a range o segments
with dierent needs, priorities and expectations.
The only way to keep customers highly satised and loyal is to
understand and meet the varied channel needs o your particular
customer base. So you must survey your customers to establish their
channel preerences by activity, by touchpoint and by segment, and
make your customer service investment decisions accordingly. For most
organisations this will mean giving customers a choice o channels. That
is likely to include embracing the internet and social media or customers
who cant live without their mobile devices (see pages 21 to 23), but
it does not necessarily mean reducing levels o service via traditional
channels. You might nd that a signicant percentage o your most
valuable customers preer to interact with you this way. Moreover, since
peoples use o technology is changing rapidly you need to research on
a regular basis (at least once a year) and use the ndings to evolve yourcustomer management investment in a way that will maximise customer
satisaction and loyalty.
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UKCSI
The State of CustomerSatisfaction in the UK
What the scores mean
- A score of 80 corresponds to an 8 out of
10 rating for customer satisfaction.
- Eighty organisations achieed a score of
oer 80, and 21 organisations achieed a
score of 85 or oer. Customer satisfactioncan be assessed by both an organisations
absolute score, and how they compare to
the aerage score in their sector.
The latest wave of the UKCSI was conducted for The Institute
of Customer Service by The Leadership Factor by web
survey during May and June 2012. The results are based on
a representative sample of 26,000 UK adults and show that
overall customer satisfaction in the UK has slightly increasedfrom 77.4 to 78, continuing the long-term trend of increased
customer satisfaction in the UK.
Customer satisaction by sector
As shown in Figure 2:
Retail (non-ood) has extended its lead
over other sectors Leisure and Automotive have improved
signicantly since January 2010
The lowest perorming sectors are
relatively unchanged or improving only
slowly the gap between the highest
and lowest perorming has increased
rom 8.6 points in July 2011 to 11.8
points in July 2012
We can divide the sectors into our
groups based on their success in satis-
ying customers.
Group one - Retail (non-ood)
This sector has extended its lead over
other sectors and with a score o 84.1 it
is 2.5 ahead o the next best sector Retail
(ood) with 81.6. This has been driven by
very high scores or internet retailers such
as Amazon and ASOS as well as tradi-
tional bricks and mortar high perormers
such as John Lewis. It is interesting to see
how the non-ood retail sector has pulled
away rom the others over the last year as
the most popular internet retailers havegained market share and thus become
a bigger component o the sector index.
Figure 1: UKCSI by sector - July 2012 versus January 2012
Table 1: The top 10 companies and their sector are shown in the table below:
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UKCSI
Group two
This group comprises Food Retail, Ser-vices, Leisure, Automotive and Tourism.
Some o these sectors have always
been high perormers, but Leisure and
Automotive have not always been in the
lead group - both have improved rap-
idly rom January 2010. Although its
index remains good at over 80%, Tour-
ism is one o only three sectors to show
a downward trend over the last year.
Group three - Financial Services
This group comprises the insurance sec-
tor and banks/building societies. These
sectors have scored relatively close to
the overall average - with scores o 78.3
and 78.1 respectively. Over recent years,
insurance has improved customer satis-
action only marginally but banking has
made much stronger gains in the last two
years.
Group our
Utilities and Public Sector
Comprising Utilities, Public Services
(national), Public Services (local), Telecom-
munications and Transport, this remains
the poorest perorming group in terms o
customer satisaction, but as a group has
shown good improvement over the years,
particularly National Public Services and
Utilities. By contrast, customer satisac-
tion has allen over the last year with Local
Public Services and Transport.
Figure 2: Customer satisfaction by sector
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UKCSI
Customer satisaction by channel
The organisations with the highest sat-isaction tend to have the least variation
o satisaction rates across channels o
communication. In keeping with the best
customer service advice, they are oering
a more consistently satisying experience,
whichever channel a customer chooses.
In person is the preerred channel or
many sectors including Services, Automo-
tive, Leisure, Finance (insurance), Finance
(banks and building societies), Public
Services (local), Telecommunications and
Utilities. Web is the highest scoring chan-
nel or Retail (ood), Retail (non-ood),
Public Services (national) and Transport.
In Public Services (local) and Utilities, cus-
tomers are much more satised when
dealing in person than over the web.
How customer satisaction drives busi-
ness perormance
Organisations invest in customer service
to achieve tangible business benets in
terms o increased sales and prot. This
can take a number o orms includingcustomers buying more products and ser-
vices, customers becoming more amiliar
with an organisation and thereore less
costly to serve and customers recom-
mending an organisation to others. In this
section we examine some key indicators
or a number o sectors Retail (ood),
Telecommunications, Finance (banking
and building societies) and Finance (insur-
ance) that demonstrate how companies
benet when they achieve high levels o
customer satisaction.
Retail (ood)
In the Retail (ood) sector, the UKCSI
results suggest a correlation between high
(or low) customer satisaction and market
share growth. Companies with an overall
customer satisaction score higher than
the sector average (81.6), have seen an
average market share growth o 0.8% in
the last 12 months. Companies with an
overall customer satisaction score lower
than 81.6 have seen an average market
share drop o -0.13%.
90
85
80
75
70
65
60
CSI
Retail(non-food)
Retail(food)
Services
Automotive
Leisure
Tourism
Finance(insurance)
Finance(banks
&buildingsocieties)
PublicServices(local)
Telecommunications
Transport
PublicServices
(national)
Utilities
In person
On their website
Over the phone
In writing
+0.5%
+0.3%
0%
-0.3%
-0.5%
Market share change
CSI75% 80% 85% 90%
Aldi
WaitroseIceland
Lidl
Sainsburys
Asda
Morrisons
Tesco
The Co-operative Food
-0.13%
Above sector average UKCSI
Below sector average UKCSI
0.08%
-0.15% -0.10% -0.05% 0.00% 0.05% 0.10% 0.15%
Figure 3: Customer satisfaction by channel
Figure 4: Supermarkets market share change (May 2011 May 2012)
Figure 5: Customer satisfaction and average market share change
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UKCSI
There is also a good relationship
between customer satisaction and
sales growth. Supermarkets with
customer satisaction levels above
the sector average achieved an aver-
age year-on-year sales growth o 9%,
compared with only 3% on average or
supermarkets recording customer sat-
isaction below the sector average.
Finance
(banks and building societies)
The score or banks and building soci-
eties has increased rom 77.4 to 78.1.Organisations that have a customer
satisaction score higher than the sec-
tor average (78.1) have an average
positive recommendation rate o 37%.
For those who score less than 78.1 on
overall satisaction the recommenda-
tion rate is only 24%.
Finance (insurance)
The Finance (insurance) sector score has
increased rom 78 to 78.3. Companieswho have achieved a customer satisac-
tion score higher than the sector average
(78.3), have a larger number o custom-
ers who have recommended them - an
average o 33% - compared to 27% or
companies whose overall satisaction is
lower than the sector average. Compa-
nies with higher customer satisaction
scores are also more likely to have higher
renewal rates, and more customers who
hold multiple policies.
3%
9%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
Above sector average UKCSI
Below sector average UKCSI
% of customers
who have
recommended an
organisation
UKCSI over 85
Above sector average UKCSI
Below sector average UKCSI
37%
24%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
49%
% recommended
Above sector average UKCSIBelow sector average UKCSI
33%
27%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 6: Customer satisfaction and average sales growth
Figure 7: Customer satisfaction and propensity to recommend
Figure 8: Recommending insurance
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% recommended
Above sector average UKCSI
Below sector average UKCSI
36%
26%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% recommended
Above sector average UKCSI
Below sector average UKCSI
49%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
25%
20%
15%
10%
5%
0%
% customers
Balance of price and serviceLow price less service Excellent service, high price
Banking (5.8)
Insurance (5.8)
Automotive (6.3)
Telecommunications (5.8)
1 2 3 4 5 6 7 8 9 10
10 customerINSIGHTAutumn/Winter 2012 | www.customer-insight.co.uk
UKCSI
Telecommunications
The Telecommunications sector score hasincreased rom 74.1 to 74.7. Companies
with a customer satisaction higher than the
sector average (74.7), have an average pos-
itive recommendation o 36%, compared to
an average o only 26% or companies who
score less than the sector average.
Automotive
The Automotive average customer sat-
isaction score has increased rom 80 to
80.9. The companies whose satisactionscores are higher than the sector average
(80.9), have an average recommenda-
tion rate o 49%, compared to 30% or
the companies below the sector average
or customer satisaction. The companies
with the highest customer satisaction
scores (over 83), have an even higher rec-
ommendation rate - 55%.
The service/price trade-o
We asked customers in our sectors
Finance (banks and building societies),
Finance (insurance), Automotive and Tel-
ecommunications - to rate the relative
importance they give to price and service,
on a scale o 1 to 10. Higher scores meant
that service was more important to them;
lower scores meant that price was more
important. Most customers seek a bal-
ance o price and service, with the balance
tipped slightly in avour o service over price.
This pattern was similar in the our sectors
we surveyed, with three o the our sectors
registering the same average score o 5.8.
But there are notable minorities o custom-
ers who are either very price-driven or very
service-driven. Its likely that these groups
o customers would nd their needs met
by dierent suppliers in most markets. In
the our sectors surveyed, more than 1
in 4 people indicated a strong preerence
or excellent service, even i this meant a
higher price. There is an especially high
proportion o customers in the Automo-
tive sector who are more service-driven
31% o customers rated service much
more important than price. This may refect
that buying a car is a high involvement pur-
chase or most customers.
Stephen Hampshire
Client Manager
The Leadership Factor
I you have any thoughts about this article
you can contact Stephen at
Figure 9: Recommending telecoms
Figure 10: Recommending cars
Figure 11: The service / price trade-off
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Case Study
Satisfying Internal
Customers is vital tooImproving internal performance results in higher customer loyalty and improved
business performance. Measuring this allows you to manage it but it is not often
done because it can be complex and painful. Here we present a new approach.
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Case Study
There is a chain o events that
creates business success
The Service Prot Chain concept described
in detail by The Harvard Business School
almost 20 years ago makes it clear that
business success is dependent on cus-
tomer engagement and that high levels
o satisaction with the product and ser-
vice relationship are needed to create this
engagement. Satisaction with service deliv-
ery is strongly linked to sta engagement,
and sta engagement is dependent on their
satisaction at work. Sta satisaction is
dependent on a mixture o such elements
as security, achievement, recognition,
reward, development, relationships with co-
workers, and the working environment.
My own interpretation o these links is
shown in Figure 1. The ocus o this article
is on Measure 2 (readers and clients will
already be amiliar with our work on Meas-
ure 3 and Measure 1).
Successul organisations are ocused on
delivering the elements that result in anengaging customer experience and this
means ensuring that all parts o the organ-
isation understand how the work they do
contributes to this and that the service
they provide to colleagues is an integral
part o the picture.
Feedback about perormance is an essential
part o perormance improvement, whetherthe intention is to improve your gol swing,
your creative writing or your ability to retain
loyal customers. By measuring your peror-
mance you are more able to manage it.
Measurement o the end-customers sat-
isaction is critical but measurement o the
internal services that help to deliver that
satisaction is just as important. In some
organisations this is conducted using such
techniques as six-sigma or o course indi-
vidual perormance appraisal systems but
these may be too complex or not eectively
pursued.
So, working closely with our client Land
Securities (see inset) I devised a new system
which has already worked very well or them.
Objective
To reveal internal customer perceptions
about the service or services they receive
rom other departments and to use the
result to promote best practice. This willincrease internal satisaction and eciency
which will in turn improve external custom-
er experience.
Background considerations
The rst thing to be aware o is that this
type o survey needs to provide anonymity
to respondents so that they neither conceal
nor exaggerate their real perceptions. Web
surveying should work or such a survey but
using external resources and assuring staabout condentiality is critical to success.
The previous approach was to conduct
an annual web-based survey covering
R esult Me as ure 3 Re sult
Lower costsHigher productivity
Increasedcustomerlifetime
value
Result
Retention
Related sales
Referrals
Growth
Better ROI
Action
Improvement in
employeeselection,
development,
recognition,
reward
Measure 1
Employee
satisfaction
Result
Higher
retention
Increased
capability
Measure 2
Internal
service
satisfaction
Betterexternal
service
quality
Customer
satisfaction
Use customer centred survey results to identify the focus needed to improve performance perceptions
We asked David Holt (Finance Director o
Land Securities) to tell us a little about the
company and why this change in survey
design was needed.
Land Securities is the UKs largest
Real Estate Investment Trust (REIT)with a commercial property portolio
worth over 10.0bn including landmark
developments such as New Street
Square and One New Change in London
and the White Rose centre in Leeds.
We own and manage approximately 29
million sq t o commercial property and
provide property services to more than
2,500 private and public sector clients.
We go beyond bricks and mortar,
through design, community engagement
and customer service to create places
where people choose to shop, are proud
to work and want to live.
Our approach to customer service
excellence dierentiates us rom our
peers and helps ensure that our clients
make us their partner o choice or
commercial property relationships.
The whole company needs to perorm
well to deliver that service excellence
and or several years we have been
measuring the ability o a number o our
central services teams to work with other
areas to deliver the best experience to our
clients. The system had become tiresome
or sta since it asked them to rate a wide
range o areas on a broad set o criteria.
Giving eedback took too long, response
had allen and it was hard to translate the
results into improvement plans.
The solution that we developed with Jim
removed these problems and revitalised
the process so that it is easier or sta toparticipate and much more ocused and
useul or management.
OperationalManagement
HumanResources
Training
InformationTechnology
FacilitiesMngmnt
Finance
Legal
R&DDesign
Planning
3rd PartySuppliers
CorporateComms Regional
Oces SalesDept
ContactCentre
Marketing
Accounts &Credit
ControlProduction
Logistics
Tech.Support
FieldSta
Customer
Figure 1 - investing in your most important asset produces results
Figure 2 - everyone serves the customer
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Case StudyCase Study
all departments. This meant that the sta
involved were expected to complete a
long survey about more than one service.Experience revealed that over time this
was increasingly likely to be considered too
much to ask and that response rate and
the quality o response would suer.
So we needed to nd a more acceptable
way o obtaining the vital eedback.
The proposed solution
As a rst step some exploratory work
should be carried out to dene the crite-
ria by which sta will judge the success
o other departments. This would ideally
involve sta themselves by running a ew
ocus groups or it may be sucient (as in
Land Securities case) to develop the ques-
tions with management.
It will then be possible to ocus the measures
so that the survey will be more interesting
to complete, still be ocused on the prior-
ity areas, and provide a greater depth o
understanding about the action that can be
pursued to improve the user experience.
The survey could be staggered across the
year, perhaps running every our months
and surveying up to six service areas each
time. In each case sta could select up to
three services to assess. This would mean
that each service would achieve a good
response rate and that no member o sta
would be asked to assess too many ser-
vices at one time.
Surveys should also be ocused on obtain-ing useul comments so sta would only
need to give a score or a ew broad
measures rather than a long list o detailed
specics. To ensure that the score is a con-
sidered one a context statement is included
(this would be agreed with each department
being assessed). The example below shows
the main ve areas that customers may
experience, along with a context statement:-
The next question would depend on the
score given, and only one comment would
be requested
I the score is rom 1 to 5 the question is
What has made you dissatisfed with the
service?
I the score is rom 6 to 7 the question is
What would need to change or you to be
more satisfed with the service?
I the score is 8 to 10 the question is
What has made you so satisfed with the
service?
In this way just ve satisaction scores are
given but every score will be accompanied
by a comment that is ocused to provide
guidance about improvement actions.
The ve main questions are likely to applyto all areas but the bracketed descriptions
can be made specic to each.
Further questions can be included, these
being
Has the service improved, deteriorated or
stayed the same in the last year?
I improved or deteriorated the survey
would ask In what ways?
What, i anything, would you like to add
that has not been covered already?
The sta delivering the service can also par-
ticipate by completing the survey as they
believe their customers will. This provides a
useul comparison and can help to realign
the views o the supplier and the recipient.
Analysis should produce a simple set o
scores or each service. This may not
convert easily into an Index but it is more
important to ocus strongly on the improve-
ment opportunities identied. The next step
will be or each department to read all the
comments and develop plans or action.
For the activity to be o maximum benet
it is important or each service department
to assess the results and establish a plan
o action that becomes part o the annual
business plan. This will mean that the imple-
mentation o these plans will be reviewed
at senior management level and that sta
objectives will include them, both o which
make it more likely that improvement will be
achieved. The staggered timing o the sur-
veys is not an issue, since each department
can simply use the most recent o their sur-
veys to draw up plans and progress will be
assessed in relation to the trend o results.
The department heads will be able to eed
back the survey results easily and sta willbecome engaged in developing the action
plans and should be encouraged to take
ownership o them.
The inormation produced by this activity
would play a signicant role in achieving
internal eciency improvement and in
improving the satisaction o external cus-
tomers. It is an essential part o the Service
Prot Chain.
Sta reliability (Delivering on their promises, being accountable, keeping you inormed about issues
raised)
Sta competence (Responsiveness, proactivity, creativity)
Communication (Accuracy, relevancy, timeliness, being pitched appropriately)
The relationship (Treating you with respect, being open to suggestions, being fexible when possible)
Processes and systems (Eectiveness, ease o use, having the right tools or the job)
The web survey question would thereore look similar to this
In relation to the Legal Department what score out o 10 would you give them or ..
Sta reliability 1 2 3 4 5 6 7 8 9 10(Delivering on their promises, being accountable,
keeping you inormed about issues raised)
Jim AlexanderClient Manager and a Director o
The Leadership Factor
Contact Jim to discuss any aspect o this
article on 01484 467025 or e-mail him at
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The Opinion Dashboard is an online tool where
you can watch, listen to and read the thoughts and
views of your customers or UK consumers.
Individuals can respond to your questions quickly,
bringing research to life and provide in-depth
qualitative insights.
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To view this Dashboard:
For more information please contact:
Darren Wake
01484 467012
To view this Dashboard please visit:
www.leadershipfactor.com/dashboard
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YSPOnline panel
Parents and carers putting
childrens lives in danger
Every year 1,423 children aged 11 andunder are killed or seriously injured whilst
travelling on UK roads - and travelling by
car is when Britons are most worried that
children are at risk o injury, with 41% citing
this as their main concern.
Yet parents, grandparents and carers are
putting childrens lives in danger by allow-
ing them to travel in cars without booster
seats beore they are legally allowed. The
research o 1,000 carers by YourSayPays
showed that three-quarters o respondents
(74%) have stopped or plan to stop using
booster seats while their children are aged
ten or under, despite the law saying that
children must be aged 12, unless they are
over 135cm tall. YourSayPays sourced and
surveyed a sample o over 1000 UK adults
who regularly care or young children and
transport them by car.
Men are less likely than women to use a
booster seat and women are more likely
than men to keep a child in a booster seat
or longer 58% o men will stop using abooster seat when a child reaches 8 years
o age, compared to 43% o women. More-
over, quite a lot o people, o both genders
(35% o respondents) regularly carriedthree or more children in the backseat o a
car even i there was not a booster seat or
each child.
There is also considerable ignorance o the
2005 laws relating to booster seats. 72%
o those surveyed did not understand when
it was permissible to carry children without
booster seats and 75% did not know the
purpose o booster seats. Another miscon-
ception is the view that children are exempt
rom wearing a booster seat i they are rent-
ing a car and no booster is available or i
they are travelling outside the UK.
Martin Howard, spokesperson at Brake,
said: It is alarming that so many drivers
are unaware o the height and age at which
children are sae to travel without using
booster seats. Children have delicate bod-
ies and are never more at risk than when
travelling as passengers on the roads, and
it is thereore vital that they are provided
with the correct support. Brake is calling
or parents, grandparents and carers toensure that children are carried saely in
booster seats until they are over 150cm
tall, in line with EU recommendations. We
are also urging the Government to invest ineducational campaigns to raise awareness
about the dangers o not using booster
seats, which will help ensure that drivers
are not unwittingly putting childrens lives
at risk.
These fndings rom YourSayPays oer
real insight into the limited knowledge par-
ents today have about booster seat saety,
said Grainne Kelly, CEO o BubbleBum.
Its apparent that whilst many parents
are doing everything they can to keep
their children sae in cars, theres no real
understanding o the protection provided
by booster seats. There is clearly a lot o
work to do to educate about not only the
law but the reasons why its in place, and to
make sure parents arent putting the lives o
children at risk.
The research generated huge exposure
or BRAKE and Bubblebum car seats. The
ndings were discussed on both national
and local radio stations with the BBC high-
lighting the statistics. The ndings werealso published in many newspapers includ-
ing Metro, Daily Mail, The Sun and The
Independent.
Research carried out by YourSayPays showed parents have little understanding o booster seat lawand generated signicant exposure or road saety charity BRAKE and BubbleBum car seats.
Darren Wake
Business Development Manager
The Leadership Factor
01484 467012
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YSPOnline panel
Funeral etiquette
given last rites
Funeral etiquette is dying out as more
than one in our people admit to not
paying their respects to a passing pro-cession. YourSayPays asked a nationally
representative sample o over 2000 adults
questions about uneral etiquette and
how they act i a procession passes. The
research, commissioned by Co-opera-
tive Funeralcare, the UKs largest uneral
director, revealed that generations o
people are unaware o traditional uneral
etiquette and show no courtesy to uner-
al corteges with teenagers and those
aged up to their mid-orties the most like-
ly to be ill mannered. The research oundthat those in their late twenties and early
thirties were the most oblivious to uner-
al traditions and etiquette while Scots
remained the most courteous.
Almost one in three (29%) o those aged 18
to 44 years old were unaware o the unwrit-
ten rules or uneral processions and how
to act when a procession passes. Over hal
o those questioned (51%) were unaware o
etiquette such as workers stopping by the
roadside as a uneral procession passed.
43% o pedestrians would no longer doth
their cap as a sign o respect and 38%
would not stop what they were doing or a
passing uneral cortege.
Our research was independently backed
by the views o uneral directors rom The
Co-operative Funeralcare, with almost
three-quarters o sta having witnessed an
increase in discourteous behaviour even
within the last ve years. Earlier in the year,
The Co-operative Funeralcare reported that
instances o road rage against uneral pro-cessions were on the increase.
David Collingwood, National Operations
Director, The Co-operative Funeralcare,
said: There has been much talk since
the riots last summer about attitudes andrespect within society and we have seen
a signicant shit over the years away
rom people observing the unwritten rules
o uneral etiquette. Many people ignore
a passing uneral procession and it is not
uncommon or pedestrians to purposely
disrupt a cortege by using a pelican
crossing to stop uneral cars or even
cross the road between uneral cars. Our
research has highlighted generations o
people who are unaware o the traditions
and etiquette which were once common-place or people to show to a passing
uneral. He added: The days o workers
stopping what they were doing to mark
a passing procession or people remov-
ing their hats and bowing their heads has
long gone.
The top three regions that show the great-
est respect are Scotland, Northern Ireland
and Northern England. The regions least
likely to ollow uneral etiquette are the
Midlands, South East England and South
West England.
The research generated signicant media
exposure or Co-operative Funeralcare.
The ndings were discussed on BBC
Breakast News and Radio 2s Jeremy
Vine hosted a phone in to discuss the
research and peoples experiences with
regards to uneral etiquette. The research
also eatured in many newspapers
including The Daily Telegraph and The
Independent, and launched numerous
discussions in blogs, orums and socialmedia channels. The news article on The
Telegraph website alone was re-tweeted
over 300 times.
Another YourSayPays survey which recently generated signicant exposure in the media
was or Talk Talk Business, the telecommunications company. 500 SME Directors and
Senior Managers were asked questions relating to business communications and key
issues relating to technology. The resulting story has generated 22 pieces o coverage to
date reaching a readership o nearly 3.5 million people. Highlight pieces included Reuters,
Wall Street Journal Europe, IT Europa, Total Telecoms and extensive regional coverage.
Talk Talk
CI
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Online panelYSP
According to a surey conducted by Your-
SayPays for Halfords, the answer is Yes!
Based on a sample of 1,000 adults, the data
was gathered after the Tour de France but
before Bradley Wiggins Olympic gold medal.
An amazing 64% had seen the Tour
de France on ITV4 at least once and
whilst only 27% o the total sample cor-
rectly identied that the programme was
sponsored by Halords, 37% o the 664
respondents who had seen it identied
Halords. This level o awareness is good
or a programme that was broadcast or
only three weeks.
Participation
There has been much speculation about
whether greater participation in sport will
be one o the legacies o the Olympic
Games. According to this survey, greater
participation in cycling will denitely be a
legacy o this years Tour de France. 58%
o people who had seen the ITV4 coverage
said it had inspired them to get out on their
bike. 43% o the total sample were also
inspired, and o course there was plenty o
other media exposure or the tour includ-
ing radio, newspapers, websites and apps
as well as other TV coverage.
76% o the sample elt proud o the
example that Bradley Wiggins is setting
to up and coming cyclists, rising to 88%
amongst those who had seen the cover-
age, and very similar numbers thought it
would inspire other people to get out ontheir bikes.
Impact on buying intentions
For any TV advertising or sponsorship,
awareness and recall are always important
measures. Impact on purchasing behav-
iour is always harder to quantiy and, due
to the many other variables involved, very
dicult to link directly to the specic slots
on TV. However, based on the results o
this survey, there should be a clear nan-
cial benet or Halords. 49% o the total
sample said they were thinking o buying or
upgrading a bike (or themselves or amily
members) and this rose to 56% amongst
those who had seen the ITV4 coverage.
O these 56%, the majority (58%) said they
had been inspired by the achievements o
the British competitors in the Tour and
the TV coverage. This is a very interesting
statistic, because normally, many people
whose purchase decisions are infuenced
by TV advertising do not acknowledge that
possibility when asked the direct question.Even more encouraging or Halords is
that when asked which brands they would
consider i buying a new bike, all o the top
our selected are rom a list o 19 brands
stocked by Halords. They are Raleigh,
Apollo, Carrera and Boardman. Perhaps
more interesting is that it was the higher
end bikes, Boardman and Carrera thatshowed the biggest increase i people had
actually seen the ITV4 coverage.
16.4% o the sample knew other people
who had been inspired to buy a bike as a
result o this years Tour de France, rising
to 22.6% amongst those who had seen
the ITV4 coverage. When incorporating
the act that some knew two people and
others three or more, it emerges that every
100 people who saw the ITV4 coverage
know at least 29 others who are now
thinking o buying or upgrading a bike.
All things considered, this suggests a
great return or Halords on its sponsor-
ship o the Tour de France coverage.
Has Brad inspired us to get on our bikes?
Mark Forde
Business Development Manager
01484 467050
CI
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Technology
How People UseSmartphones
Were spending 2.3% o the time with music
and video apps, 11% with the browser and
more than hal with other apps. And text
messaging consumes 13.4%. The iPhone
has shaken up entire industries, rom navi-gation to gaming, and replaced household
items such as torches and alarm clocks
or many o us. Their constant compan-
ionship has also made our smartphones
handy shopping tools -- to the chagrin
o plenty o bricks-and-mortar retailers.
According to Nielsen, 29% o owners use
their smartphones or shopping activities,
including comparing prices and purchasing.
Fewer devices
Thanks to the almost limitless unctional-
ity o smartphone apps, people now need
ewer gadgets. In a recent survey conduct-
ed by Gazelle.com (a company that buys
your old iPhone), nearly 70% o survey
respondents have said goodbye to their
iPod or mp3 player, 55% have ditched
their camera, and over 40% no longer use
their GPS unit since buying an iPhone.
Phones or babies?
In June, Asda conducted a survey o1,662 mums and ound that smartphones
are increasingly becoming the primary way
to entertain young children. The research
revealed that 27% o mums use their phone
regularly to entertain their o-spring, ahead
o a bottle or a drink (25%), sot toys (21%)
or a dummy (9%). 40% o mums let their
children play with their smartphone or anaverage o 10 minutes or less a day, but
10% admit to allowing them to regularly
play or one to two hours at a time. Mums
in Scotland are most likely to entertain
their children with a phone (40% o them
do it), ollowed by Wales (32%), the Mid-
lands (32%) and Northern Ireland (30%).
Parents most oten use smartphones
to keep their children quiet when they
wake up early in the morning, or when at
a restaurant, in the car or waiting or an
appointment. Most have a range o apps
on their phones or their children to play
with rom puzzles and games to educa-
tional programmes.
Popular electronic pacier apps include:
Wheels on the Bus - Winner o
multiple awards, this animated and
interactive music story book allows
children to do things such as spin
the wheels and swish the wipers o
the bus alongside the happy tunes.
Classic Simon -An updated version o
retro classic Simon Says, the app ea-
tures our colour modes, along with more
advanced challenges or older children. It
has already racked up 3.5m downloads
with an average rating o 3.5 stars.
iStory Books - Aimed at kids agedtwo to eight, this app oers various ree
books complete with text, audio and
pictures. New books are added to the
app each week.
Not improving our manners
However, smartphones are not so good
or our manners, with more than 25%
reporting that they almost always
use their iPhone while in a social set-
ting such as during a meal or while at a
party. A urther 58% say they use their
iPhone in a social setting either usually
or occasionally, while only 17% say they
rarely or never use it in a social gathering.
Smartphone or sex?
Which would you rather give up or a
weekend - sex or your iPhone? 15% o
respondents to the Gazelle.com survey
said they would choose a romance-ree
weekend rather than go without their
beloved device. But why not have both?Nearly 4% o respondents to the Gazelle
survey reported having used their iPhones
whilst having sex!!!
According to Nielsen data, only 5.4% o mobilephone time is taken up by the phones diallerunction, meaning traditional talking.
CI
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Technology
Ownership profle
Ocom report that tablet uptake is cur-
rently highest amongst amilies with
children and 45-54 year olds (42%). Over
hal live in London, the Home Counties
or Manchester and over two thirds are
ABC1. In line with this afuent ownership
(and the 45% o buyers who didnt needone), upmarket tablet users are spon-
taneous and materialistic, being 79%
more likely than other upmarket adults to
spend money without thinking clearly
an audience worth chasing! Fully unc-
tional tablets such as iPads have a male
bias, whereas women are more likely
to own an e-reader such as a Kindle.
Tablet Usage
InMobi, the largest independent mobileadvertising network, and Mobext, the
mobile marketing network o Havas Digital,
recently released the results o their global
consumer research, The Role o Tablets
in the Consumer Sales Journey. Con-
ducted on mobile and tablet devices, the
survey examined the media consumption
habits o over 8,400 respondents across
seven dierent markets and demonstrated
that consumers are spending increasing
amounts o time on mobile connected
devices, with tablets strongly infuencingpurchasing decisions as consumers nd
new ways to research and interact with
brands. The key take-outs include:
At the time of writing (July 2012), 13% of UK households now own at least one tablet computer or e-reader compared with only
2% in March 2011, and an additional 17% intend to buy one in the next year. According to Ofcoms annual Communications
Market Report, entertainment is the main reason for buying a tablet, haing been cited by 56% of owners. Next on the list was
easy internet access (53%) followed by portability (52%). 45% of tablet buyers admitted they had no particular need for the deice
but just wanted to treat themseles. Needless to say, this huge increase in adoption rate has led to a spate of research into tablet
ownership and usage drien by companies growing interest in this market and communication channel.
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Technology
According to Adobes Digital Index
Report, one tablet generates as many
website visits as our smartphones,
so although there are ar ewer tablets
around, by March this year they already
accounted or 4.3% o website hits com-
pared with 6.1% on smartphones. Adobe
predicts that internet trac on tablets will
overtake smartphones by the beginning
o 2013. However, organisations mustnt
lose sight o the act that PCs/laptops stillgenerate the lions share o website visits
19 times more than tablets in Q1 2012.
This isnt surprising in view o the vast
installed base and the act that shipments
o PCs/laptops still considerably out-num-
ber tablets a lead that may even increase
rom the end o October with the launch o
Windows 8 and ultrabooks.
Tablet users are buyers
Tablet users do more things on their tablet
(an average o 3.9 activities chosen rom
a list o six broad options) compared with
laptop (3.6) or smartphones (2.7). They
also use their tablet more than any other
device to buy stu. 46% preerred to make
purchases on their tablet compared with
41% on a PC/laptop and only 9% on a
smartphone. And 69% o tablet owners
had actually done some shopping on their
tablet in the last 30 days, with almost 10%
o these happy to use it or a big ticket
purchase, in contrast with smartphone
users who typically use their device orsmaller, more unctional purchases. More-
over, 20% o tablet users claim to shop
less in bricks and mortar stores since pur-
chasing their device. These acts, together
with the hal o tablet owners who share
the device with amily members illustrate
the value o tablets or companies sell-
ing products or services that are oten
amily decisions. Joint amily decision
making includes items such as holidays,
tourist attractions, eating out and takea-
ways as well as bigger decisions suchas cars and housing. However, accord-
ing to Adobe, PC/laptop conversion rates
remain much higher or any shopping
activity that involves a signicant amount
o research, whereas tablets are more
likely to be used or passive consumption
o content or or more repetitive, routine
purchases or inormation gathering. Lap-
tops/PCs thereore remain well ahead or
anything where consumers lack expertise
such as buying a smart TV, anything where
they make multiple comparisons, such as
holidays or, to a lesser extent, purchases
where they rely on peer reviews. So, or
example, deciding on an up-market res-taurant or a special occasion (especially
i it will be a rst visit) is more likely to be
researched and booked on a laptop/PC,
but takeaway owners should make sure
that they have a very tablet riendly web-
site. Interestingly, tablet owners are very
likely to use their device or repeated inter-
actions with nancial services providers.
Impact on traditional media
The research also revealed that 72% o
respondents watch TV while using their
tablet. This helps to explain the growing
popularity o Zeebox. Somewhat surpris-
ingly, 20% o owners claim to watch more
TV since buying their tablet, so maybe
mobile internet wont be bad or the TV
industry. Interestingly the UK showed the
highest levels o dual-screening across
the globe.
This is consistent with the act that tablet
usage peaks between 7.30 and 10.30 in
the evening, when owners use them morethan PCs/laptops or smartphones. During
the daytime, however, PC/laptop usage
is twice that o tablets, suggesting that
BYOD (bring your own device) remains ar
rom universal.
69% o tablet users have
shopped via their devicein the last 30 days
users regularly use their
tablet and watch TV at
the same time
The average number o
in-home devices is 9.7,
up rom 8.7 in 2010
44% o tablet owners wouldnot want to be separatedrom their tablet
o tablet owners spend
at least an hour a
day accessing media
content
22% o tablet owners have
shopped in physical
stores less since getting
their tablet
20m tablets were shipped inQ1 2012
Apple dominates the
market with a 68%
share
There are 1m+ Zeebox
users in the UK (30 min
average session)
51% use a tablet to ll what
would previously have
been dead time
49% o respondents share
their tablet with amily
members
42% said that their tablet has
revolutionised the way
they communicate with
riends/colleagues.
63
% o tablet users think it is
easier to access media
content on a tablet than
on a mobile or laptop/
desktop.
7 outof 10
Over
50%
CI
APPLE DOMINATES THE
MARKET WITH A 68% SHARE
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Technology
But the Apple TV set will almost certainly
be beautiul, easy to use, and it will usher
in a whole new way to navigate nearly
unlimited content through the electronic
device that is still the hub o most house-
holds home entertainment.
Heres how Walter Isaacson put it in his
biography o Steve Jobs.
Assuming he had cracked it, has Apple
acted in time? Some very large players in
electronics and TV, such as LG and Sam-
sung, have already launched very elegant
all-in-one smart TVs whose appearance
and unctionality will be dicult to better.
Due to advances in screen technology
even the largest sets have edge-to-edge
displays and are much thinner than cur-
rent plasma or LCD TVs (only 4cms thickor a 55 inch display). They are wi- ena-
bled, will link with smartphones, tablets
and PCs and have a home screen which
looks rather like the orthcoming Windows
8 but is ully customisable. LG call it a
Home Dashboard. It can be controlled by
the traditional remote or an app on your
phone or tablet. Whilst the manuacturers
such as LG are heavily promoting 3D and
gaming, which is very impressive on the
big high resolution screens, businesses
will be more interested in the possibilitiesaorded by the households entertainment
hub working just like a smartphone or
tablet. Whether its social media, YouTube
or just surng the web, the opportunities
or communicating with customers are
immense. Clearly this will have massive
ramications or the TV-ad industry.
Whether that threat will be spearheaded
by Apple or the current TV market lead-
ers is anyones guess. The incumbents
now have a clear lead but every time Apple
has launched a disruptive device criticshave said that its too expensive and peo-
ple dont really need it. Theyre also saying
that since we hang onto TVs longer than
we do phones or computers, theres no
way it will have the impact o Apples other
innovations. But similar criticisms were
levelled at the iPod, the iPhone, and the
iPad (that costly, in-between device that
people werent even asking or). Though
the iPhone wasnt the rst smartphone, it
ushered in a dierent way to think about
and use mobile (see page 17), and dramati-cally altered peoples behaviour. So maybe
Apple will surprise us with something no-
one had thought o or TVs as well.
Refecting on the massive behavioural change over a relatively short time stimulated by the 2007 introduction o the iPhone, what will
happen when Apple introduces a TV? Is the TV ecosystem -- rom programme makers, the marketers that rely on TV to sell products, to
the ad agencies that buy its media -- ready or TVs iPhone moment? Just as with the iPhone (or the iPad or iPod), Apple TV wont be the
rst device o its kind. Even without smart TVs, early adopters have been streaming or some time via a range o set top boxes such
as Xbox or Roku or via the Airplay unction on Apples existing TV solution, all o which bring wireless connectivity to the TV. And increas-
ing numbers are turning to the Zeebox app to combine their TV viewing and social media activities.
ITV or iTV?
Steve very much wanted to do or
television sets what he had done or
computers, music players and phones:
make them simple and elegant. Id
like to create an integrated television
set that is completely easy to use.
It would be seamlessly synced with
all your devices and with iCloud. No
longer would users have to fddle with
complex remotes or DVD players
and cable channels. It would have
the simplest user interace you could
imagine. I fnally cracked it.
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Latest thinking
UK consumers today ace an almost
bewildering choice o channels when it
comes to engaging with brands. The high
street, the industrial park, the website,
email, the catalogue, direct mail, interac-
tive television, SMS, mobile apps and
social media are all part o the rich mix o
touch points that make tracking the cus-
tomer journey more o a challenge than
ever beore. And or companies operating
in this dynamic and competitive environ-
ment, understanding consumer behaviour
on a multichannel level is becoming ever
more crucial or the successul manage-
ment o their customers.
Multiple touch points
Do todays consumers even have a pre-
erred channel? Well, it can depend on
what they are buying. Few, in act, limit
themselves to one channel or both
researching then purchasing a product
or service. But ar rom viewing consum-
ers as ckle and indecisive when they
consult not only a high street store but
also a brands website and relevant social
media pages beore making a purchase,
companies must use all data to hand to
analyse, interpret and then address cus-
tomer behaviour. Only then do they stand
a chance o growing loyalty and building
sales through tailored communications
and oers that demonstrate genuine
insight.
Where once businesses debated bricksand mortar versus mail order, today the
retail landscape is multiaceted and multi-
dimensional, and the question has moved
onto how they use various channels. The
key to understanding this is to look at how
consumers use the multiple channels at
their disposal or dierent parts o the deci-
sion-making and purchasing process. The
latest research rom GI Insight shows there
is logic to consumer behaviour across
multiple channels. Understanding this on
an individual level can be crucial to manag-
ing customers eectively getting them to
remain loyal, to buy more with each trans-
action, and to purchase more requently.
Mixing bricks and clicks
The research shows that, when it comes
to their avourite brands, consumers arecomortable mixing their points o interac-
tion, with 63% o the 1,000 UK consumers
surveyed revealing they buy rom both the
The Longand WindingCustomerJourney
Understanding how consumers use various touch points toresearch and buy dierent products is essential to gaining ullcustomer insight in todays multichannel marketplace. Andy Woodexplores the implications or CRM and marketing.
26 customerINSIGHTAutumn/Winter 2012 | www.customer-insight.co.uk
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Latest thinking
websites and high street stores o the
companies they purchase rom the most.
Indeed, despite the boom in online shop-
ping, consumers today still use high street
stores (and other bricks and mortar outlets
such as shopping malls and retail parks) to
examine and test a great many products
prior to nal purchase. So, despite the rise
o the quick and easy internet purchase,
shopping is still not a one dimensional
activity that begins and ends with an
instant transaction: more than ever it is a
social experience, it takes place across
channels, and it does not require point
o purchase to be the same as point o
perusal.
Increasingly, traditional high street stores
are venturing online, with brands such
as John Lewis and Next establishing a
powerul digital presence. And, not to be
outdone, pure online players are them-
selves entering the high street market,
with Amazon reportedly establishing its
rst physical outlet this year to oer cus-
tomers the opportunity to purchase its
Kindle products in-store, believing this
could boost sales amongst impatient
shoppers and those sceptical o buying
sight unseen. When Amazon, arguably the
worlds most successul online retail busi-
ness, acknowledges that the high street is
ar rom obsolete, it signals that the mul-
tichannel relationship is here to stay at
least or now.
Product category aectschannel choice
Although the business o selling uniorm
products such as books and CDs prod-
ucts which easily t through the letterbox
and can be just as successully vetted
online as in-store works well as a web-
only enterprise, many retailers are learning
that marketing more varied and bigger
products ranging rom the latest ashions
to consumer electronics to outdoor urni-
ture requires a more complex approach.
Indeed, GI Insights research conrms that
the type o product being purchased has
a major eect on the path o the custom-
er journey: 73% o consumers preer to
examine and test bulky products (such as
bicycles, garden tools, playpens, urniture)
in person and 69% choose to check out
and try on ashion items (such as clothes,shoes, sunglasses, accessories) in-store,
even i they make their nal purchase
online. The majority (60%) even preer to
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Latest thinking
look at and test electronic products such
as televisions, DVD players and comput-
ers in-store beore buying whether in
the shop or later over the internet. This
behaviour is in stark contrast to the pur-
chase o standardised products (such as
CDs, DVDs, books, batteries, light bulbs
and kitchen utensils) where the trend is
reversed: 69% say they make these types
o purchases directly online.
Redeeming loyalty rewards
The research also uncovers that UK
consumers are almost evenly split when
it comes to the channel they preer toredeem their loyalty points through: 54%
in store versus 46% online. Clearly, retail-
ers should not presume that customers
will redeem their points via the channel o
purchase and, in act, should ensure loy-
alty scheme members are rewarded with
vouchers and points which can easily be
used via either channel.
Implications or sales sta
It is clear, then, that the modern shoppingexperience does not involve the straight
emergence o a single channel and no
savvy retailer today would wed shoppers
to one specic location, physical or virtual.
On the contrary, sta dealing directly with
consumers across any channel need to
be trained to respond to the customers
preerences and likely customer journey.
For instance, i store based sta realise
a customer is researching a product in
store with the intention o later purchas-
ing online, they should be ready and able
to issue a limited time voucher or a web
purchase, enabling them to capture a con-
sumers business and secure their loyalty
to the overall brand. Currently, there are
very ew cases in which retailers provide
an incentive to purchase rom a brands
website when a customer is clearly
browsing in-store. In the new multichan-
nel environment where shops are used
as showrooms, this needs to change.
Implications or customer
communications
UK consumers typically arrive at the point
o purchase via a combination o channels
their journey is rarely linear and employ-
ing data and analysis to derive insight on
the customer journey to inorm appropri-
ate actions along the way is essential tothe uture o any successul operation. As
the research shows, the customer journey
may be complex and winding but, by the
same token, it is not wholly unpredictable.
I a rm can see that specic products
trigger certain types o behaviours and
trends, then it can use that insight to tai-
lor post, email and other communications.
For instance, i the data shows that a cus-
tomer tends to browse online rst beore
going in-store, the communications dont
need to push a product but rather thewebsite as a source o inormation, pro-
viding relevant content to make the brand
stand out. Or i analysis tells a company
that multichannel customers are more
loyal and valuable than a single channel
customer, it can mould communications
to get a store-only customer to become
an ecommerce customer too, and vice-
versa.
Recognising, then, that bricks must coex-
ist with clicks, brands should develop
relationships which harness multiple touch
points so consumers get more rom their
retail experiences whether perusing in-
store, checking a catalogue, browsing
online or receiving an oer on a smart-
phone. This process can start even beore
a customer goes online or visits a store
with a longer-term communications pro-
gramme that uses data to address the
consumers behaviour and build loyalty
through tailored oers demonstrating gen-
uine insight. Appreciating that customers
regard brands in a holistic ashion ensures
relationships are grown and nurtured
regardless o channel.
Implications or customer databases
The key to all o this is applying the cus-
tomer data an organisation has to hand,such as transaction details and inormation
supplied on web orms, and not keeping it
in silos. That means collecting it properly
in one database or all channels and then
analysing it to see what the trends are and
what preerence and behaviour catego-
ries individual customers all into. Getting
a grip on what customers buy, what they
are spending, and how they purchase in
order to determine how better to motivate
them to remain loyal or to purchase more
and more requently is undamental to asuccessul brand in todays multichannel
marketplace.
Andy Wood
Managing Director
GI Insight
01162 321 711
CI
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Technology
CI
In February LinkedIn topped 150 million
users and, ater launching in 2006, Twitter
has over 300 million users generating over
300 million tweets and handling over 1.6
billion search queries per day.
So clearly we are interacing with each
other through social media all day, every
day on our work PCs, our laptops, our tab-
lets and our smartphones. Walk into anyast ood outlet in the country and have a
look at what most people are doing whilst
they are waiting to be served. The chances
are they have their smartphone in hand and
are sending / receiving updates on status!
It is no surprise that business is increasingly
keen to get in on the act and utilise such
an instantaneous and pliable technology.
Investment in social media strategy is rising
exponentially with barely a single brand not
wanting you to like them on Facebook
and watch them on YouTube. Service
sector based businesses are starting to
look at Twitter as a means o providing
technical or account support to customers.
It is instant, trendy, allows them to gather
inormation and provide promotional mes-
sages wherever and whenever.
What needs to be considered is what
impact this will have on customer satis-
action and ergo customer loyalty? Do we
want business and brands muscling in
on our social media? Should there be a
real distinction between the two? Is youravourite sports stars latest tweet about
their new car an honest comment to be
shared with the world or a discreet com-
mercial endorsement broadcast to loyal
ollowers? I have heard more than one
person comment negatively on someone
who has a Facebook type photo on their
LinkedIn prole so do they want their bank
eeding into their Twitter account?
The Leadership Factor recently conducted
an online panel survey o Twitter users on
behal o a leading high street bank about
Twitters usability as a support tool. The
results showed that currently 9% used
Twitter to contact organisations they did
business with compared to nearly 60%
who used it mainly or celebrity news, the
majority having genuine concerns about
Twitters suitability as a business tool due
to issues such as privacy and the limited
number o characters per tweet. But or
the 9% its an important channel and
banks cant ignore that.
One interesting aspect to consider is theeectiveness o these social media sites as
they carry more and more trac. What is
the risk o missing something important in
all the chatter? Path is a relatively new kid
on the social media block but is based on
the anthropological principle Dunbars num-
ber, which states that we cant manage a
network o more than 150 connections so
that is what you are restricted to.
So by all means keep on engaging with the
social (media) revolution. The more we do,
the better we will become. Just make sure
it is enabling your organisation to do best
what matters most to your customers and
not just because it is something new!
One o the true phenomena o the last ten years has been the rise and rise o social media. You needto have been on Mars or the last decade to not know what Facebook is and even ootballers have
worked out how to tweet but what is truly staggering is the amount o social media out there. The listis endless and covers work, rest and play in all its orms!
Mike Ball
Client Manager
The Leadership Factor
I you have any thoughts about this article
you can contact Mike at
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Following the end o the regulatory require-
ment to test tenant satisaction using
the old STATUS methodology, House-
Mark (a membership based organisation
or housing associations) was asked to
devise a new voluntary methodology that
measured satisaction and that could be
benchmarked in the same way as STA-
TUS. Following extensive consultation
with RSLs (Registered Social Landlords),
the Survey o Tenants and Residents
(STAR) was launched including the STAR
benchmarking service.
But how actionable is the research? Can
it identiy key drivers o dissatisaction
amongst tenants that can be actioned and
incorporated into the strategic plans o the
RSL? Can benchmarking work alongside
more detailed research that aims to identi-
y tenant importance, impact and priorities
or improving tenant satisaction? One
social housing provider that has cham-
pioned a new approach to this is Leeds
Federated Housing.
Leeds Federated Housing Association
Formed in 1973, Leeds Federated Hous-
ing Association provides housing or rent
and other services to a range o cus-
tomers around Leeds, Harrogate and
Wakeeld. The birth o Leeds Federated
came rom merging a collection o smaller
landlords and during the 1970s, 80s and
90s, Leeds Federated grew to its current
size o around 4,000 homes. As well as the
older homes they inherited, they have built
new stock, particularly in partnership with
Leeds City Council. Over the last decade,
the Association ocused on improving the
quality o its existing stock resulting in all o
the Associations stock now achieving the
decent homes standard, and the Asso-
ciation perorms well across all its housing
management unctions, when compared
to other organisations providing similar
services.
Resident ocused
Leeds Federated pride themselves on
being resident-ocused, with a mission to
make places or people to live become
places they want to stay and places other
people will want to move to . Fundamen-tal to the achievement o this bold vision
are our key goals:
It is with these goals in mind that Leeds
Federated Housing have taken the jour-
ney to understanding their customers and
improving their lives.
Like most providers in the social hous-
ing sector weve historically undertaken
the regulatory STATUS customer sat-
isaction survey as the main source o
ormal customer eedback, says Simon
Williams, Research Manager at Leeds
Federated Housing. But with the regula-
tory requirement recently being removed,
this provided us with the opportunity to
look outside the social housing sector to
see how other high perorming companies
measure customer satisaction. This is
what eventually led us to look at the Lead-
ership Factor and Customer Satisaction
Index methodology.
This move breaks a tradition in the socialhousing sector. Williams says, Bench-
marking landlord against landlord has
been somewhat o a tradition or us but it
has always been difcult given the diverse
nature o our property stock weve a mix
o new estates & older inner city hous-
ing within Leeds plus stock in Harrogate,
Wakefeld and Castleord. So to fnd a
housing association with a similar stock
mix and social challenges is very difcult,
limiting the value o benchmarking.
A turning point or me was thinking o
customer satisaction rom the customers
perspective. Whilst we can input data into
a computer to benchmark our services
against other housing providers the reality
is that our customers cant do the same
they cant easily move house or request
an alternative repairs service rom another
housing provider. Instead theyll measure
their perception o customer satisaction
against their experiences with their local
supermarket, high street bank or shop.
Moving to the The Leadership Factors
Customer Satisaction Index measurement,
which is based on a broader range o com-
panies, seemed such an obvious choice.
aNewApproachtoCustomer
SatisfactioninSocialHousingBenchmarking performance against peers is hotly pursued in most business sectors and especially in social housing.
Accounting for about 20% of UK households, until recently housing associations had a regulatory requirement to
surey tenant satisfaction and report their results to the regulator. The compulsory questions (known as STATUS)
proided a general oeriew of residents oerall satisfaction with their landlords and made peer benchmarking easy.
1. Maintaining homes with a high quality
repairs serice.
2. Improing the quality of the
neighbourhoods customers lie in
making people want to stay and others to
moe into.
3. Helping customers make the most of
their lies.
4. Continue to be a high performing housingassociation in all aspects of its business.
Simon Williams
Research Manager
Leeds Federated
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Challenges
Changing to the Customer Satisaction
Index method has not been without its
challenges. Theres a lot o tradition in the
social housing sector and with that comes
the strong conviction amongst some that
STAR should remain the predominant
methodology used or tenant satisac-
tion. But closely looking at HouseMarks
own description tells you that STAR is only
designed to provide an overview o tenant
satisaction with the general services they
receive rom their provider.
Williams says, Due to the nature o our
business our services directly aect the
quality o peoples lives. Getting the right
services delivered consistently in the right
way is tremendously important. I we ail
to deliver services well, its not as i our
customers can easily move home. Getting
the best inormation possible enables us
to make the best decisions.
So rom the start o 2012 weve started
using a mix o STAR and Customer Sat-
isaction Index. In practice this means
using the minimum core questions rom
STAR which allows us to continually
monitor historical trends and benchmark
our customer satisaction perormanceagainst our social housing peers region-
ally and nationally. Customer Satisaction
Index measurement however orms the
most important part o the process we
can benchmark our Customer Satisac-
tion Index score against about 80 other
housing associations and also against
other big brand high street names. The
way the data is collated and analysed has
provided us with a ar deeper insight into
our customers needs. This has given us a
signifcant advantage against our competi-tors who are still only using STAR.
This advantage is enhanced by the act the
Customer Satisaction Index question set
is bespoke to Leeds Federated ater being
ramed round the outcomes o exploratory
tenant ocus groups to nd what was most
important to them. This again presented a
massive cultural change compared to the
one size ts all question set o STAR (and
STATUS beore it).
Outcomes
So has Leeds Federateds decision to
work with the Leadership Factor paid o?
The whole thing has been excellent,
Williams says about the partnership. Itsprovided a great platorm or us to reer
back to and as ar as we are aware were
the frst housing association in the country
that uses the combination o STAR and
Customer Satisaction Index. As a method
or understanding satisaction we do eel
we are in a strong position and bucking
the trend.
The reality is that the two methodologies
have a lot to oer; STAR provides a good
overview o perormance (HouseMark claimnothing more themselves) and can contin-
ue to maintain historically measured trends
and social housig sector benchmarking.
The Leadership Factor provides signicant
customer insight to tenant satisaction.
Chris Elliott
Client Manager
The Leadership Factor
I you have any thoughts about this article
you can contact Chris at
CI
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Customer
However, scratch the surace o service inthese platinum plated environments and
everything may not quite be as it seems...
Having recently undertaken some research
within the luxury car sector I was amazed to
nd the polarity o service levels experienced
by high net worth individuals spending
in excess o 100,000 on a car, across a
whole range o dierent manuacturers.
Further aeld the internet is littered with
reviews o our celebrated Michelin starred
restaurants that prove spending top dollaron your meal is no guarantee that you will
enjoy a perect night out and recommend
it to all your riends and amily. But why
not? Is it really that dicult or businesses
to be able to replicate the perect client
experience without ail and are the needs
o high rollers dierent rom the rest o us?
The real challenge comes, I believe, in the
people themselves. High rollers come with
big wallets but oten even bigger expecta-
tions. They are more demanding and have
a greater depth o experience to draw on.
Additionally they are more than capable
and condent in articulating their displeas-
ure should you ail to meet their exacting
standards. Above all they prize individual-
ity, being able to stand out rom the crowdwhether it is their one o a kind supercar or
their VIP table behind the velvet rope.
But as a business why bother going to all
that trouble? Well, in these recessionary
times a recent study by Barclays Wealth
shows that there are 619,000 millionaires
in the UK, up rom 528,000 in 2008 and
that the millionaire population is set to
grow by another third by 2020. I you were
looking or a growth market with dispos-
able income...youve ound it!
So how can businesses eciently and
eectively generate the level o satisac-
tion in these demanding customers that
will make them loyal advocates who will
patronise your establishment or years
and bring all their riends as well? The
answer is no dierent or the high roller
than the average man in the street. Get to
know what matters to them and keep your
promise in delivering that. What changes
is that you may have to bring the research
down to a sample size o as little as one!
What doesnt work is simply producing
a bigger bang because your customer
has more bucks. What came out o the
research rom our luxury car client was thattheir customers werent impressed by the
shiny reception area with large screen TV
and branded coee. Whilst they expected
the right environment, what really mattered
was being treated as an individual, prom-
ises being kept and the process being as
ecient as possible.
It means taking your customer insight to
a micro level and really getting to know
your customers. Add to that a degree o
fexibility in your oering that enables everycustomer to enjoy their perect experience
and your business has every chance o
hitting the jackpot.
Satisfying
Does being a high roller guarantee