Customer Insight Winter 2018 by TLF Research

www.tlfresearch.com | Winter 2018

BIFFA NAMED A UK SUPERBRAND, BUT WHAT DOES THAT REALLY MEAN? ALSO INSIDEâ&#x20AC;¦ Nationwide on using technology to get closer to customers Latest UKCSI results CX around the world

W NE

CUSTOMER CENTRICITY

CUSTOMER CENTRED DESIGN

HALF DAY BRIEFING

What is it that sets the companies who excel at customer experience apart from everyone else? It’s a good question, and fortunately we’re in a position to answer it. We analysed the characteristics of the companies at the top of our benchmarking league table, and identified the10 traits that underpin their success.

All products and services are designed, but often the design process can be ad-hoc and opaque, resulting in processes which seem efficient but create frustrating experiences for the customer. The growth of design thinking and related disciplines such as customer success has led organisations to go back to the drawing board to design experiences that work for customers from the ground up. That means fusing research to create empathy for customers with a deep understanding of the psychological principles we can use to create the experiences we desire.

In this half day briefing we’ll review the 10 traits, explain why each is so important, and discuss how to tackle them in practice. We’ll also talk about how to assess where your organisation is currently positioned

This half-day briefing will give you a grounding in customer-centred design for products, services, and (ultimately) experiences.

DATES:

14th February 2019 4th April 2019

DATES:

20th November 2018 14th February 2019 4th April 2019

Manchester London

London Manchester London

£160 (ex VAT)

TED DA

MEASURING THE EMOTIONAL CUSTOMER EXPERIENCE

STORYTELLING

HALF DAY BRIEFING

FULL DAY INTERACTIVE WORKSHOP

Customer emotions are a vital part of the customer experience. You know that emotional intelligence at the front line is vital, and you train your staff to make the most of theirs. You know that appealing to emotions is a major part of the success of your marketing, and you try to find ways to do that. You may even realise that emotions can be the biggest driver of how customers feel about a journey.

Stories are the most effective way to engage, move, and persuade. Whether it’s a board presentation, internal comms, or customer feedback; building storytelling techniques into reporting and communication is the best way to make insights memorable.

But what does that mean for measurement? Traditionally emotions have been left to the qualitative parts of the research and insight world. Is it time to find ways to try to quantify and measure them, or is that simply not possible? In this half day briefing we look at different approaches for using research to explore, understand, measure, and apply models to customer emotions.

DATES:

13th March 2019 15th May 2019

£160 (ex VAT)

Manchester London

People are natural storytellers, but when it comes to business communication it’s often difficult to see how to apply those talents to the messages we need to convey. In this workshop we’ll work through a series of exercises to help you craft your own story (complete with hero, key messages, conflict, and payoff). Along the way we’ll discuss the theories that support effective storytelling, and showcase a range of techniques and examples you can use.

DATES:

27th November 2018 26th February 2019 21st May 2019

Manchester London Manchester

£300 (ex VAT)

Book online at tlfresearch.com or call 01484 467000

EDITORIAL

Foresight The concepts of brands, let alone Superbrands, is a

that there are organisations who do get it, and who

Maddock shares his mixture of pride and ambition for

have reaped the benefits of investing in their people and

Biffa after its recognition in the Superbrands index. As he

customers.

says, good brands are all about connection.

Editor

The UKCSI (page 26) shows that, although the long-

Connecting with customers, this time through the

term trend may be up for consumers in the UK, we seem

intelligent use of digital tools to bring customers closer

to have got stuck recently in the high 70s of satisfaction

to staff, is also the theme of our thought-provoking

(although there are plenty of high performers who buck

interview with Nationwide’s Tony Prestedge on page 14.

the trend). And it’s not just the UK that’s a mixed bag:

He makes digital transformation seems a lot more human.

Andy Butler’s CX world tour (page 28) chronicles his

The importance of your people, and the power of engaged employees to create great experiences for customers if you trust them, is something that came up

customer experiences while travelling the globe, from the inspirational to the painful. Waiting on hold may be one of the most painful

again and again at our annual client conference (the full

experiences of customer service for most of us (perhaps

report starts on page 6). You’ll also find some great case

effective digital transformation can help with that too?).

studies of clients who have used survey findings as a

We did some research on our consumer panel to find out

jumping off point for significant investments in changing

what customers think of their hold experience, and the

the customer experience.

results make for essential reading (page 23). The title also

In this issue we’ve got the first of a new series of articles from Nigel Hill, “How hard can it be?” (page 34), in which he pleads the case for the long-suffering customer and suggests we should be making more

EDITORIAL Editor Stephen Hampshire ADVERTISING Marketing Manager Richard Crowther DESIGN & PRODUCTION Creative Director Rob Ward

CONTACTS

Stephen Hampshire

progress by now. Nonetheless, it is certainly the case

relatively new one. In our cover article (page 18) Guy

Designers Becka Crozier Jordan Gillespie Rob Egan Production Editor Chris Newbold PRINTER AB Print Group Ltd

explains why I’ve been humming Blondie all afternoon – thanks Tom! I hope you enjoy reading this issue, and do get in touch if you’d like to contribute to future editions.

Customer Insight is the magazine for people who want to deliver results to employees, customers and any other stakeholders as part of a coherent strategy to create value for shareholders. We publish serious articles designed to inform, stimulate debate and sometimes to provoke. We aim to be thought leaders in the field of managing relationships with all stakeholder groups. www.tlfresearch.com uk@leadershipfactor.com Customer Insight C/O TLF Research Taylor Hill Mill Huddersfield HD4 6JA

NB: Customer Insight does not accept responsibility for omissions or errors. The points of view expressed in the articles by contributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form

or by any means without prior written consent of the publisher. © CUSTOMER INSIGHT 2018

ISSN 1749-088X

www.tlfresearch.com | Winter 2018 Customer Insight 3

C O N T E N T S

CONTRIBUTORS

W I N T E R

TLF Conference Learnings from some of the UK’s leading customer service professionals

2 0 1 8

Making the Connection Nationwide talk to us about using technology to get closer to customers

Superbrand, so what? Biffa have been named a UK business Superbrand, but what does that really mean?

Andy Butler

Nigel Hill

Sarah Stainthorpe

Stephen Hampshire

Customer service champion, globe-trotter and Man City fan

Wine-lover, Munroist and customer satisfaction guru

Human data miner, insight sorcerer and prone to mad challenges

Conference speaker, book-lover and occasional climber

4 Customer Insight Winter 2018 | www.tlfresearch.com

CONTENTS

CONFERENCE TLF Annual Customer Experience Conference

Hanging on the Telephone So, what’s the deal with hold music?

CX World Tour A customer experience trip around the world

Book Review This is Service Design Thinking. This is Service Design Doing.

Take a closer look at the latest UKCSI results

FEATURE Nationwide Making the connection

FEATURE Biffa Superbrand, so what?

CASE STUDY Hanging on the telephone

RESEARCH Latest UKCSI results

RESEARCH CX world tour

BOOK REVIEW This is Service Design Thinking / This is Service Design Doing

HOW HARD CAN IT BE? Why should I come to your store?

How hard can it be? Why should I come to your store?

Published by

Panel wrangler, banana lover and chinchilla owner

DESIGNERS

Tom Kiralfy

Becka Crozier

Jordan Gillespie

Rob Egan

Right brain mastermind, music enthusiast and have I told you I’m vegan?

Creative magus, genuine tyke and 20ft wave rider

Beer drinker, pixel pusher and dour Yorkshireman

www.tlfresearch.com | Winter 2018 Customer Insight 5

TLF CLIENT CONFERENCE In March we gathered, once again, at One Great George Street in London for our annual client conference. It’s one of our favourite days of the year, despite the nerves and inevitable (hopefully invisible) minor backstage disasters. It’s a chance for our clients to meet each other, hear from an inspirational keynote speaker, and learn lessons from some client case studies. We also enjoy the chance to test our latest ideas on a friendly audience! This was a vintage year, with delegates scoring it the most useful conference ever, so let’s have a look at what they liked.

CONFERENCE

Greg Roche, TLF Research

your people’s heads. One offsite is simply not

behaviours and actions are to create customer

going to cut it.”

confidence at each interaction.

Greg opened the conference by introducing

After a networking break, it was over to

Irish Life’s long term commitment to this

the conference theme of change, specifically

some clients to discuss the changes they had

programme has built credibility with staff and

put in place to improve the customer

also with all the financial advisors and other

experience. Two clients, from very

stakeholders such as regulatory authorities.

different sectors, and at different

In Touch was launched in 2003, and Karl

stages of their change journey,

reminisced briefly about his experiences with

the choice between evolution and revolution. He also took us through the top 10 traits of organisations who are world class in terms of

customer

experience,

took us through to lunch.

Greg and Iain (the two TLF client managers

which we’re featuring in a

they’ve had in that time) and the researchers

Karl Symes, Irish Life

series of podcast episodes. He added an 11th for the

“We like to stick with the partners who

conference, which was being in it for the long haul. Change,

Karl was gracious enough to

are helping us to do the right thing. We really

only briefly rub salt in the wound

believe in looking after your customers, your

of England’s recent loss (and Grand

partners, and everyone who works with an

Slam concession) to Ireland. As long term

organisation, and that virtuous circle really

he reminded us, is necessary if you want customers to be happier.

partners, we’ve seen Irish Life’s journey up

“For your customers to be more satisfied tomorrow than they are today, someone in your organisation has to do something different that they’re not doing today.” Greg handed over to Stephen, who dug into

close for many years. Two case studies in the Customer Insight archive* document

bottom quartile to the top, an

we were looking forward to

achievement they’re rightly

another update. Karl started

proud of. They were also

by reflecting on how long

the first winners of the All-

the culture change journey

Ireland Customer Experience

has been.

award.

“We’d have liked to have got

Picking up on the theme of

discuss whether evolution or revolution is

benefits of that longevity will really

a more effective approach. His discussion,

start to pay off over the next number

Insight, but here’s a quote to pique your interest: “If

you

want

Over the 15 years of the programme, Irish of customer satisfaction from the

shared their experiences, so

there much faster, but I think the

in full in the next issue of Customer

pays off in the long run.” Life has marched steadily up our league

previous milestones at which they’ve

the theory and practice of culture change to

“Gradually then Suddenly”, will be featured

who have worked with them.

evolution versus revolution, Karl spoke about the constant evolution of the In Touch programme against a

of years.”

background of flux and change in the macroKarl started by reminding us how

important

trust

economic environment post 2008. Despite all

the chaos, Irish Life stuck with their investment

organisations, particularly in

in the process - a brave and important decision.

culture

the financial services sector,

“The final decision was ‘if we stick with this

change to stick it can’t be

and perhaps even more so in

now, we’ll reap the rewards for years to come’.

something that is simply done

the life, pensions, investments

During that economic crisis, it was almost the

overnight. You can’t make

and health insurance sectors

only thing which didn’t get cut.”

one big change, whether it’s to

that Irish Life operates in. Trust

Despite changes to ownership, CEOs, and all

is central to the organisation’s

the wider upheaval, Irish Life has stuck with

structure, or working practices, or what your mission statement is, and expect it to change the deep and shared sense-making machinery inside

purpose, and the “In Touch”

the programme. The research has changed

programme is about guiding its people,

and evolved, moving to more frequent surveys

using research to understand what the right

and a more touchpoint-based approach, really

*Available online at https://www.tlfresearch.com/customer-insight/

www.tlfresearch.com | Winter 2018 Customer Insight 7

CONFERENCE

focusing on making improvements to the most

is also crucial to make the programme work.

Where next? Looking at the difference that

important moments of truth for customers. Karl

Karl shared some interesting titbits from

customer experience makes to loyalty and repur-

shared a “wall-chart” type slide summaris-

their research, such as the fact that the impor-

chase rates, Irish Life believe it really makes a

ing all the changes and investments that the

tance of drivers varies quite widely across dif-

difference to move customers towards the high-

organisation has made over the years, which is

ferent touchpoints (for instance “the security

est levels of satisfaction. They have shown that

a tangible reminder for all staff just how com-

of Irish Life” is much more important for cus-

moving people to a Satisfaction Index over 90

mitted they are to the journey.

tomers taking out a new product than it is for

has a massive impact on loyalty behaviours such

How has Irish Life used the results of the

customers when they are talking to a finan-

as retention and recommendation.

research programme to improve? Step one is

cial advisor? Sometimes it’s all about people,

to communicate the results to staff, which they

sometimes it’s more about the product. The

have done consistently well. The next step is to

most actionable part of the research programme

do something about them, and as Karl observed

has been continually hunting for the customer

the important thing here is to take action, rather

experience moments and behaviours which have

than trying to pile up evidence for a single magic

the most impact on satisfaction. They’re really

bullet solution.

simple, like setting expectations, but they make a big difference to satisfaction. Three simple

“It’s not trying to do something perfectly, it’s trying to make it better. It’s about continually making small things better.”

actions, put together, make a difference of 10 points to their Satisfaction Index.

• Keep the Satisfaction Index improving • Get as many customers as possible over a satisfaction score of 90 • Build more customer measures into operational measures • Continue to support a culture where people do the right things intuitively

“In financial services you need to bake in predictability to give your customers confidence.” You need to think about how to engage and support your people. They want to make customers happy, Karl believes, and they want to make changes and improvements for customers

Karl believes they could get better at com-

all the time but that can be difficult in a highly

municating to customers (everyone can!), but

regulated environment where we often have to

another strength has been going back to the

treat everyone the same. It’s important to share

customers who have taken part in research.

the results regularly, focusing on the positives as

Customers are pleasantly surprised to find that

well as the negatives, and continually showing

they have been listened to, but there’s also a big

people what difference they can make. As well

cultural benefit of demonstrating a real interest

as the scores, it’s important to use a lot of fun

in what customers have to say.

and engaging activities to keep the right tone

As well as the overall business leads on

The priorities:

and sense of momentum in the culture.

Karl’s tips, based on Irish Life’s journey, were: • Get everyone behind the CSI data, rather than their own operational data - getting people to prioritise the customer view • Develop “perfect experience” measures • It’s important to link your customer programme to your purpose • Find ways to get everyone in the organisation involved • Over-communicate - keep everyone up to date on progress • Find ways to celebrate at every opportunity you can

the programme, and the touchpoint groups in

The facts may prove it’s working, but culture

charge of each of the 6 main touchpoints, there

is shaped and demonstrated by stories, particu-

are 40 Customer Champions throughout the

larly about people making great decisions for

Karl’s entertaining delivery and bags of use-

business who act as the voice, eyes, and ears

customers - like the customer who phoned in to

ful content earned him the highest score we’ve

of In Touch, making sure the programme isn’t

cancel her life insurance policy due to financial

ever had for a client speaker. Hopefully this

something that sits invisibly in the marketing or

pressure because of a child undergoing cancer

quick synopsis gives you enough of the high-

insights team, but is embedded in the organisa-

treatment, to be told that she was actually eli-

lights to start along the same journey that Irish

tion. Top level support is vital, but the ground-

gible for a €25,000 payment under that policy’s

Life have been on.

up structure built around customer champions

provision for children with serious illnesses.

8 Customer Insight Winter 2018 | www.tlfresearch.com

CONFERENCE

Anil Mehta, Together Housing

“It doesn’t fill me with great pride, but it gives us a good idea of where we are.”

because it had been left to individual heads of service. At the time there was no business

From the perspective of an organisation

A cynic might wonder why it’s worth making

improvement function, no methodology to turn

much earlier in their journey, Anil talked to us

the effort to measure and improve satisfaction

feedback into action, and business improve-

about Together Housing’s first steps towards

if a high proportion of customers don’t pay for

ments were focused on business benefits rather

building a customer experience strategy, a

what they’re getting (the government does via

than customer benefit. The result was satisfac-

strategy which he described as “embryonic”.

housing benefit or Universal Credit). Beyond

tion scores that were falling rather than rising.

He promised a “warts and all” version of what

any moral imperative, there are clear practi-

Anil told us about how Rachel, the TLF Client

cal reasons to measure and benchmark

Manager, and the Together business improve-

satisfaction in order to make service

ment team worked together using customer

delivery as efficient as possible.

journey mapping as a tool to drive business

This addresses one of the big

change from the customer research. Over a

Anil spoke with an engag-

myths of customer satisfac-

number of sessions they mapped out the key

ingly humble style, describ-

tion - that it is a cost. It’s an

areas of improvement, such as repairs. That

ing himself as not being a

investment, but more often

journey was split into two: reporting the repair,

customer experience expert.

than not satisfied custom-

and then the repair itself. Within those two parts

In reality he showed us all

ers are cheap to serve, and

there were 10 key touchpoints, and the priori-

efficient processes work better

ties were divided up according to how practical

their research programme has shown them, and why it’s driving them towards a customer experience approach.

that he has thought deeply about improving customer expe-

for everyone.

they would be to address, then assigned owners

rience, and there was much to learn

“Satisfaction is synonymous with

and timescales. Some of the priorities included,

even at this early stage of the story.

efficiency - the customer is our best con-

for example: scrapping email repairs enquiries

Together are a housing association, meaning

sultant, and their feedback can highlight prob-

which were not working for customers or the

that their core business is to provide, repair,

lems....We can use that to understand what we

business, to replace them with an online form

and maintain affordable housing. It’s a heav-

can do to improve, it’s the raw material for our

which is more diagnostic and gathers more

ily regulated sector, and Together is one of the

business improvement teams to look at how

consistent information and improving the diag-

largest Northern housing associations, formed

they can make services easy to access and

about five years ago from a merger of smaller

easy to do business with....What I

organisations. They have around 38,000 homes

love about TLF is that they can

spread right across the width of the country, and

make sense of that huge

systematically, Together knew

a very diverse customer base. Their scale per-

amount of qual that we get

it was important to tell cus-

mits efficiencies, but also creates challenges in

from our surveys.”

tomers that they should

terms of providing services across very different types of customer across that wide footprint. The starting point, as it is for most busi-

nostic skills of staff for telephone repairs reporting. As well as addressing change

Together has been gath-

expect to see changes, taking

ering feedback from cus-

them in detail through the

tomers for a number of years

process Anil had described

nesses, is to survey customers to find out how

about repairs, how enquiries

they feel. Satisfaction at the moment is mid-

are dealt with, and how easy is

for us.

table, but the number is just the starting point,

it for customers to contact. They’ve

and in many ways it’s the qualitative parts of

seen improvement in the customer services

the research that are more important. That’s

team, but less in the wider business. What’s the

about the steps required to turn customer feed-

often the first step towards taking action off

problem? According to Anil the answer is simple:

back into systematic action, and the importance

the back of a survey.

focusing on priorities for improvement delivers

of communicating that change, in an engaging

improvement, but action had been inconsistent

way, to both colleagues and customers.

The journey may not yet be complete (it never is), but Anil’s open presentation had much to teach us

www.tlfresearch.com | Winter 2018 Customer Insight 9

CONFERENCE

Keynote speaker: Linda Moir

read “pinched from Virgin Atlantic”).

happy customers. The challenge is often how

Virgin, as a brand, is famous for its people.

to enthuse your people about the idea of bril-

After lunch, we handed over the stage to our

Maintaining that meant trying to treat staff

liant basics. Linda’s answer is “adult to adult

keynote speaker Linda Moir. In an engaging,

as if they were customers (a major theme of

communication” about why it’s important.

funny, and warm session she gave us her per-

the Value Profit Chain), and building a col-

spective on the secrets of instilling a customer-

laborative culture that allowed staff

focussed culture, based on her experiences as

to feel able to contribute. Linda

Director of Customer Service at Virgin Atlantic

gave an example: when Vir-

and then at the London Olympics. She started

gin launched a new flat bed

it.” The magic touches part

by addressing the theme of Evolution vs Revolu-

in business class, to their

means that they also have

tion, and by challenging the idea that change

dismay Singapore Air-

the freedom to have fun,

comes from the top of the organisation.

lines launched their own

once the basics are nailed.

“Whilst in both cases you may know who was at the top of the organisations, what was achieved was largely done by harnessing the energy and enthusiasm of the people across the organisation.”

“You don’t get anywhere by telling people what to do, you’ve got to give them the information so they know it’s important and want to do

3 months later. It was

Linda gave a great example

wider, longer, and better.

of a magic touch - she

“In terms of the product

received a letter from a

it beat ours, but because of

frequent flyer who had been

the collaborative culture we felt

flying with his children, but

we had more to offer...”, in this case

forgot to pre-order them a special

things like the staff suggestion that they should

kids meal. One of the crew packed up little

turn the seat into a bed whilst the customer had

picnic bags with sandwiches from the food put

a drink at the bar, including putting a tiny teddy

on board for the crew, as well as some fruit

bear on the pillow. These things, as Linda points

& sweets.

out, are low cost, but high impact. The lesson is When Linda joined Virgin Atlantic from BA it was at an interesting point in its development. Having started with a definitely revolutionary mindset, with the stated aim “to make

that product can be copied, but it’s much more difficult to copy customer experience. Linda did some research soon after her move from BA to Virgin, and found that BA were

flying fun”, it was now 30-some-

seen as “blue” (professional, but

thing. Over time flying had

“People don’t do that because they’ve been told to, but because they love their jobs.”

formulaic), where Virgin where

become a commodity, and it

“red” (fun, but inconsistent).

That’s true whether they’re frontline or back

was a very tough market.

It was clear that she needed

office, and it shows. “Your culture is exactly

In order to compete, it was

to find a way to build on

clear that Virgin needed to

consistency without los-

Something pretty special had to come along

“grow up a bit” in order

ing the Virgin personal-

to tempt Linda away from Virgin - the 2012

to attract more customers,

ity of fun and informal-

London Olympics. There she coordinated the

especially highly profitable

ity. Her way to address

15,000 volunteer “Games Makers” and 6,000

this was a service strategy

paid safety stewards. Just like Team GB, Linda

named “Brilliant Basics, Magic

believes her team outperformed everybody’s

business customers. At the same time it was important not to lose the things which were

Touches”.

strengths for the brand, such as their

what customers see.”

expectations in the way they hosted. The bar

We often emphasise the impor-

for the games had been set incredibly high by

sense of fun (epitomised by big investments

tance of what we call “doing best what matters

Beijing, and Linda believed that personality was

in having a cocktail bar and a cool lounge, and

most” to customers. It doesn’t always seem

the key to doing a great job of hosting. “How did

little things like salt and pepper shakers that

that sexy, but it is definitely the key to creating

we tap into the personality, the friendliness, the

10 Customer Insight Winter 2018 | www.tlfresearch.com

CONFERENCE

warmth, the wonderful diversity of the people

to keep going through the more difficult parts

were much worse. This is actually very com-

of the United Kingdom? We built that revolu-

of their jobs is the team around them, and their

mon, as staff tend to hear more bad news than

tion bottom-up.”

relationship with their boss. Again, the principle

good news, and it’s one of the reasons that it’s

of treating employees like customers comes to

really important to gather objective customer

the forefront.

insight. But how to move both perception and

She started by asking the organisers of the Sydney games how they had made it the friendliest games ever. They put it down to three golden rules for managing volunteers (actually pretty good rules for people in general):

1. People like being busy, so don’t over staff 2. Rotate people, so they don’t get bored (unlike Beijing, where the volunteers were trained in

reality forward?

Tim Paddison and Rebecca Galley, Cromwell Our final session of the day was a double act, as Tim and Rebecca from Cromwell talked us through how they’ve gone about embedding customer experience improvements across the

“You need to have a story. You need to have something that people can relate to, see where they fit in, how they can be part of a journey.”

just one task... “People love learning things.”)

business, a distributor of industrial tools and

3. Recognising people and their needs. Volunteers

consumables. The major message, as it so often

received small “shift gifts” of bronze, silver, and

is, was about the importance of communication.

So they built a story around the changes

Tim opened by explaining what Cromwell do,

Cromwell was making to serve customers more

walked around, learning people’s names,

stressing the fact that as a distributor they don’t

effectively, focused on the four key priorities

talking to them to make them feel valued.

actually make anything, so everything they do

that customers told them needed to change.

is a service. Tying in with the theme of the

Having the story is only the start, though. In

conference, he remembered that at the outset

order to cut through and reach everyone in the

the perception was that this would be evolution,

organistion it’s essential to keep working at

gold pin badges. More important, supervisors

Encouraging the volunteers to have fun, to bring their personalities with them, created

but when it came to implementation it

opportunities for lots of memorable interac-

felt like revolution.

tions. Like the Virgin cabin crew, those moments

Rebecca

took

it. They had good buy-in from senior people in the business, but the

over

key is to get the story to all

of magic were often low in cost, but high in

describe how Cromwell’s

value. Linda gave an example of two volunteers

customer survey had

Rebecca and Tim had to

who brought chocolate medals and toilet paper

helped them to under-

rely on other people tell-

every day, in order to create races with “tape”

stand what’s important

ing their story. Contrary

for kids to burst through as they won.

to customers, and how

to popular belief, win-

“The best ideas come from people who work with customers every day.”

levels of the business, so

they were perform-

ning over senior people

ing against that. This

is actually relatively

“doing best what matters

easy, compared to per-

most” view of the customer

suading people throughout

remains the core of TLF’s

the business, particularly the

methodology, and we know it The overriding theme that Linda’s talk left

people at the front line who deal

works. To move forward it was also

with customers directly. You can’t just

us with was the power of trusting your people

important to understand the perceptions of the

do it with a few emails, you need to talk about

to know the right thing to do, and to want to

team. “It doesn’t matter what our strategy is,

the “why”, and really engage in a discussion

do it. “Tell people what they need to achieve,

if the team isn’t on board with it we wouldn’t

with people.

don’t tell them what to do.” What they do need

be able to embed the changes.”

Reaching that “critical mass of understand-

is support. As Linda said in response to an audi-

They found that customers were reasonably

ing”, to quote Tim, took more time and effort

ence question, the thing which motivates people

satisfied, but that internal perceptions of service

than they initially expected. They had to find

www.tlfresearch.com | Winter 2018 Customer Insight 11

CONFERENCE

ways to do it in the time available, and cost

• The cost of improving customer experience.

from managers to feel able to do it. Storytelling

effectively too. The right mix of channels was

What’s the cost of not doing it? The

and communication with staff and customers

crucial. Slide decks with one person talking

importance of proving it, where you can,

is what underpins the success of those efforts

won’t work. Neither will emails. Instead, they

of giving colleagues tools to improve their

- you simply can’t do too much of it.

held regular round table meetings, inviting

service.

people from different functions to a discus-

• Steering customers towards digital channels.

sion, and encouraging them to speak to their

Making sure you design digital journeys

own team members. Cromwell found that

around what customers want. Linking

videos worked well, and we’re also

developers closely to the customer

big fans of that as an engaging

service team, to resolve issues

and (still) under-used chan-

quickly and learn from them.

nel of internal communica-

• Getting messages down to

tion. Once the improve-

the grassroots level.

ments had started to take

Rewarding employees for

hold they could use suc-

delivering service. Giving

cess stories to talk about

feedback one on one, to

what had worked well as

show the results and make

a result, to help celebrate

it a personal thing. “What

and embed the new ways of

people need is a darn good

working. Rebecca and Tim didn’t promise us an easy ride (“Question: how resilient are you? Because you have to be resilient”), but

listening to.” (that was from Linda). PowerPoint bullets is not how people in the real world communicate. • Introducing process without losing flexibility.

they did manage to highlight the importance of

Make sure it’s a good process, and explain

investing the time to understand your team’s

the reason. Test the process with the people

perception of where the organisation is, listen-

who have got to follow it through (people

ing to them, and doing the sustained work to communicate the story to them in an engag-

will find a workaround if they don’t like it). • Permissions culture

ing way. This is where most companies fall

If it’s the right thing to do to step out of

down in the gap between insight and action,

process, people will be praised not penalised...

and the answer is always communication.

if the spirit was right.

As Greg commented afterwards “...you can’t over-communicate”.

Panel with Karl Brown (Direct Line Group), Simon Stead (TPT Retirement Solutions), Donald Smith (Johnsons Stallbridge) and Linda Moir

Evolution or Revolution? We’d taken Evolution vs Revolution as the theme for our conference. What emerged strongly from every presentation was the revolutionary power that’s there in your people, if you can find a way to liberate it. That requires steady patient work to ensure that the mes-

To bring the day to a close we assembled a

sages are clearly communicated throughout the

panel of experts to discuss questions from the

business, that people are able to express their

audience. They discussed:

personality, and that they have the right support

12 Customer Insight Winter 2018 | www.tlfresearch.com

TLF GEMS NEWSLETTER MONTHLY CX INSIGHTS FROM TLF RESEARCH

Our monthly newsletter shares our favourite Customer Experience, Insight, and Service Design highlights.

TLF GEMS PODCAST

A MONTHLY PODCAST FROM TLF RESEARCH ON CUSTOMER EXPERIENCE AND INSIGHT

If you’re reading this and you like podcasts, you should definitely check out the TLF Gems podcast. Each episode Stephen and Greg talk about a different topic related to Customer Experience research and insight.

Search “TLF Gems” in iTunes or subscribe directly using the feed http://feeds.feedburner.com/tlfgemspodcast

F E AT U R E

MAKING THE CONNECTION

Using technology to get closer to customers It’s hard to avoid coverage of the impact of

most experienced salesperson. That doesn’t

technology on customer experience. Whether

have to be the case. Used the right way tech-

it’s AI, digital channels, or augmented reality,

nology can improve the human connection

technology is mounting an assault on the

between a business and its customers.

traditions of customer service. Too often this is billed as being in opposi-

Nationwide is at the forefront of this movement, shoring up its position at the top

tion to the human-to-human interactions of

of the UKCSI with market-leading innova-

traditional customer service: AI will replace

tions in the customer experience. Customer

agents in the call centre, digital will supplant

Insight interviewed Tony Prestedge, Chief

shops staffed by people, augmented reality

Relationships & Distribution Officer, to find

will paint a picture more effectively than the

out more.

14 Customer Insight Winter 2018 | www.tlfresearch.com

F E AT U R E

is complacency…how do we make sure that

disruptors entering the market. The answer

mortgages and savings in the UK and, while

Nationwide have 12% of the market for

being number one doesn’t become the anchor

is to make sure that technology works not to

traditionally a relatively small player in the

that drags us back rather than the thing

replace personal service, but to support it.

current account market, in the six months

which propels us forward.”

before I spoke to Prestedge they accounted

In particular, he’s very conscious of

for one in five new current account openings.

the potential for new entrants to disrupt

That growth is driven by the success of

the banking sector, and reset what service

their digital tools, and the potential that

might look like. Disruption may come from

digital gives them to grow beyond what their

technology companies offering account

physical branch footprint would allow.

aggregation and other non-financial services

That’s important because, unlike most

“We think about service leadership being enabled by technology, made meaningful by people.”

rather than from new financial suppliers per

mutuals, Nationwide goes toe to toe with the

se. It’s a fast changing market, which has

banks in offering current accounts as well

seen customer usage of Nationwide’s mobile

you can’t just assume that the brave new

as mortgages, savings, and investments. In

offering increase by 700% in two years, but

digital world is populated by a different type

order to take on the banks and be credible

it’s also a world in which customers still

of customer. Although 25% of Nationwide’s

in those markets they need a solid digital

value a high street branch presence.

members now have a mobile relationship as

offering, and they need to make sure it’s well integrated into their overall customer experience.

Balancing the old and the new Nationwide is used to being a leader in terms of customer satisfaction. It consistently

the dominant channel, there’s a reason that

“Customers are happy to adopt the technology, but they want to continue to have a personal relationship, we’re not seeing a movement away from branch.”

performs well in the UKCSI*, the FRS, and in its own internal surveys. It’s consistently

As we’ve seen in many other industries,

“omnichannel” has been such a buzzword— Nationwide see 70% overlap across channels, depending on what customers are doing. It’s not so much the case that there are “digital” customers and “face to face” customers; more that most customers are both depending on whether they want to check a balance or get some financial advice. Customers might

There’s a delicate balance to be struck

check their balance in an app once a day, go

rated number one of the banks and

between continuing to meet the needs of cus-

online once a week, and visit a branch only

building societies with a major high street

tomers when they want a face to face branch

once every couple of years, but they need to

presence, but that success brings its own

service, and embracing new technologies fast

be able to do all three on their terms.

dangers. As Prestedge says, “The big risk

enough to anticipate the danger of potential

*The UK Customer Satisfaction Index is the national measure of customer satisfaction for the UK, covering 13 sectors including Financial Services. You can find out more and and download the free executive summary at: https://www.instituteofcustomerservice.com/research-insight/uk-customer-satisfaction-index

www.tlfresearch.com | Winter 2018 Customer Insight 15

F E AT U R E

Customer focus & staff engagement

regularly scrutinized and challenged by the

The technology

people who have to put them into practice. Despite embracing technology, Nationwide is a business with its values rooted firmly in heritage. It remains a mutual, owned by its members rather than shareholders, and that

Most of us have probably become used to

“Our people drive the design of our processes.”

has a clear impact on the way customers are

tion” to gather feedback from all staff about

order to serve customers better. Ultimately,

things that get in the way of serving mem-

Nationwide’s people understand that the

bers, and what they would like to change.

organisation’s right to exist is dependent on

That kind of bottom-up approach to process

customers remaining loyal.

design is much more engaging for staff, and much more likely to result in processes

As well as formal survey work, customers are engaged through online chat panels and

or making payments. Is it just about making serve? For Nationwide it’s also about putting

Nationwide recently held a “Big Conversa-

in which people are willing to go further in

“We make a profit, and we’re heavily regulated, but we don’t need to earn quarterly profits. That does create a different culture, and a different feel.”

day banking needs such as checking balances it as easy as possible for customers to self

seen by the organisation and its staff. The focus on members creates a unique culture,

relying on apps for the majority of our day to

that work for staff and customers. The same

the organisation in closer touch with its customers.

“The mobile experience is like having a digital branch in your pocket, but at the other end of that there is a person.”

principle is at work in the half hour section of every weekly “Heartbeat” exec meeting which is dedicated to hearing from frontline staff

The banking app, for any institution, is

about how their week has been. It makes sure

now one of customers’ most regularly used

that processes are designed more bottom-up

apps. Done right, a mobile app can mean

than top-down, and people have a genuine

that you are continually present with the

voice in how they should work or how they

customer, deepening the relationship. As

should be changed.

well as improving the customer experience,

Employee engagement, and trust in senior

that obviously has potential benefits in terms

monthly talkbacks in branches, making sure

management, is very high. Prestedge is confi-

of cross-selling. Nationwide is looking to

that their needs are kept front of mind.

dent that translates to a level of discretionary

integrate technologies such as WhatsApp and

effort on behalf of customers that you would

video chat, as well as tools such as a digital

not see in other businesses.

vault for documents, so that they are con-

“We spend a huge amount of time with our members, from the boardroom downwards.”

Why are staff so important to customers? Just like in every business, their ability to

stantly present with the customer. Where Nationwide’s investment in tech-

respond when things go wrong (as they inev-

nology is really striking, however, is in its

itably will with 15 million customers) is vital.

innovative in-branch video. They’re work-

They also have a key role to play to humanise

ing hard on integrating technology into the

what can be an overwhelming industry with

physical environment. “Nationwide NOW” is

strong performance in customer satisfaction.

complicated products and, necessarily, lots of

a video link service which connects custom-

Processes are necessary in any business,

specialist language.

ers in branch, anywhere in the country, to

Staff are at the core of Nationwide’s

and perhaps particularly in highly regulated financial services markets, but good processes are driven by people. Processes should never get in the way of serving customers, and it’s very easy for that to happen unless they are

help and advice. I was given a chance to try

“We have complex products, and it’s our people that bring them to life.”

the technology out, speaking from London to an advisor in Scotland, and I was really impressed both by the quality of the connection, and by how much more human a face to face interaction is than one over the phone.

16 Customer Insight Winter 2018 | www.tlfresearch.com

F E AT U R E

It’s a really simple, practical, solution to the problem of resourcing branches with advisors to cope with varying demand; and it’s one that preserves jobs as well as making for an improved branch experience. Why wouldn’t all banks adopt it? Unlike many of their competitors, Nationwide branch staff are incentivised on service and efficiency, but not sales. That means that they are very accepting of a customer talking to someone else by video link, where another bank might encounter cultural resistance and protectiveness. Moving forward, Nationwide is trialling other technologies such as home-based video and chat integrated within the app. The unifying feature of all of these trials is that, for the first time in generations, technology is starting to bring customers closer to staff

“The days of big projects, where you said two years in advance ‘this is what I want to do, and I’m prepared to wait two years for it to deploy’, are gone. Now you’re putting technology in the hands of colleagues, let them figure out with members the best way to deploy and use it.”

rather than further away.

“It’s about technology bringing people together, rather than getting in the way.”

The future of customer service?

rosy future of customer service might look like as digital technologies become ever more

Where does the future of customer service

embedded in day to day relationships. It’s a

lie? The rest of us may not be able to replicate

future in which technology brings us closer

some of the ingredients of Nationwide’s

to customers, instead of pushing them away.

successful recipe. We’re not all mutually

One in which we embrace the tools which are

owned, and we don’t all have a tradition

most familiar and convenient to customers,

from local branches, and the internet made

of service leadership dating back decades.

using them to build stronger, more human,

the relationship more distant and focused

There are, however, many principles that we

relationships.

on self service, the latest technologies can

can adopt that apply to any business in any

help put people back in touch with people.

industry.

If call centres took the relationship away

Empowering staff, building trust, and bringing people closer together is a strategy

It’s not necessarily about re-inventing the

Some of these principles are staples

that is paying off for Nationwide—can you

wheel. Where existing technology is well-

for readers of Customer Insight: engaged

say the same for your technology adoption?

established, like WhatsApp, it may make

employees are a necessary precondition

more sense to use that rather than spending a

for happy customers, processes should be

fortune on developing an offering that is less

judged mainly on their ability to create great

familiar to customers.

experiences for customers, healthy businesses

Stephen Hampshire

are built around long-term profits rather

Client Manager

than short-term profits.

TLF Research

These trials are all about a “test and learn” model, experimenting and developing systems that work for customers. That in itself drives energy and enthusiasm.

Most strikingly of all, Nationwide gives us

stephenhampshire@leadershipfactor.com

a sketch (if not quite a blueprint) for what a

www.tlfresearch.com | Winter 2018 Customer Insight 17

F E AT U R E

Biffa was recently recognised as a UK business Superbrand. But what does this mean and how should a brand use this information within its own commercial activities?

From the outset I should state that Biffa

So, Biffa came top in its category for the

is not a sexy brand, and it certainly doesn’t

11th consecutive year. Great. Well done Biffa.

operate in a sexy sector, and yet for the 11th

However, arguably of greater significance is

consecutive year Biffa was identified in the

where Biffa appeared in the overall Super-

annual Superbrands index as the UK’s No.1

brand Official Rank - the list of the top 1,500

brand in the Recycling & Waste Management

business brands in the UK. This is the real

category. As a brand guardian it would be

test of brand strength, not just in terms of

all too easy to congratulate oneself on a job

brand awareness, but proximity to its nearest

well done. Sit back, take it easy - safe in the

rivals. Biffa landed just outside the top 100

knowledge that your brand is king. And that’s

(106 to be precise) of all business brands in

the danger. Remaining ahead requires careful

the UK. The nearest competitor brand was

management and even more planning. Here

closer to 200 (179 to be precise), and the third

we will discuss the Biffa brand amongst its

placed brand ranked at a distant 729. [In case

competitive set and its relevance in customer

you’re wondering what the best performing

facing marketing.

Business Superbrands were, I’ll list the Top 20 at the end of the article.]

So, what is a Superbrand and how is that determined?

Again, before we crack open a new tin of Quality Street we really need to consider what all of this actually means. Spoiler Alert: It will

Firstly, it’s worth noting that businesses

only mean something if we can translate it

can’t apply or pay to be considered for Super-

into something meaningful for our custom-

brand status. Your brand is either known, or

ers. It’s also worth noting that just because

it isn’t. A panel of independent business and

a brand may rank above its competitors does

marketing professionals are asked to judge

not guarantee it is somehow superior, or that

and then score brands against three factors:

it will remain in the top spot. Brands of all

Quality, Reliability & Distinction. The whole

shapes and sizes require careful management

process is overseen by The Centre for Brand

to stay ahead, more of which later.

Analysis (TCBA) who ask everyone involved in voting to consider the following definition: “A Superbrand has established the finest reputation in its field. It offers customers

To really understand what this means for Biffa we need to consider some relevant history.

significant emotional and/or tangible advantages over its competitors, which customers want and recognise.” The lists are then published every year, for

Firstly, the Biffa brand has existed for over 100 years therefore for the current brand guardians to try and take credit for an annual

both Consumer and Business brands. Et voilà:

Superbrand position would be disingenuous.

Superbrands.

In Biffa’s case we also need to separate the

18 Customer Insight Winter 2018 | www.tlfresearch.com

F E AT U R E

Brand (what our products and services stand

attempt to piggyback the strength of Biffa

solution - a new strapline and TVC - “Sains-

for and how we articulate that) from the

brand awareness when they set up their Pay-

bury’s, where good food costs less”. Sorted.

Branding (the visual identity).

per-click (PPC) bid terms. Why wouldn’t you

Well, not quite. The problem was no-one

do this? Sadly there’s no law against it in PPC

believed it. Sure, some popular everyday

has an unfair advantage here because we are

advertising, fortunately there is in web dev/

items were reduced in price, but the overall

absolutely everywhere. I would argue that we

SEO content marketing. If you’ve got zero or

impression at the checkout remained the

are the most recognisable brand in the sector

limited brand awareness and want to pick up

same. Put simply, temporary window dress-

simply because our bins and trucks are more

some instant traffic, why not try and steal

ing does not work. Changing entrenched

visible than any other (Biffa bins and trucks

a bit from the biggest name in town? By the

customer perceptions requires much more

appear in 95% of all UK postcodes, which is

way, if you’re reading this and bid for ‘Biffa’-

than a marketing campaign. Marketing must

far more than any of our competitors). In that

we’re flattered, thank you.

be aligned to commercial and operational

Let’s start with the Branding. Biffa perhaps

respect Biffa is virtually, if not quite liter-

However, true brand awareness, reputa-

ally, a high-street name. Furthermore, our

tion and trust must be earned. Organising

predecessors in the 1960s did a great job of

your products or services to deliver against

designing a unique typeface for the Biffa logo,

the needs of your customers, then aligning

then rolled out the distinctive bright red bins

your brand to that is the very essence of great

and trucks for which Biffa is now famous.

brand and product marketing. Sounds simple?

Sure there’s been the odd nip and tuck along

Should be easy? Far from it.

the way, but the core design remains true to

Our business is very diverse: multi-

performance - and completely based around customer satisfaction.

So, having a powerful brand is a good thing, but does it guarantee success? Can being a Superbrand help to attract, win and retain customers?

this day. All current and future marketeers

channel, multi-sector, national and regional,

are merely custodians of branding; our job

multiple product streams, operating in a

I guess the answer to these questions

is to protect, enhance and evolve. The Biffa

wider industry that often does its best to

will depend on who we ask. If we spoke to

brand is recognisable because it has a person-

confuse or complicate (just try asking a group

the former Marketing Directors from Nokia,

ality, longevity and consistency. It’s visually

of people if you can actually recycle a Coffee

Kodak, Toys R Us, Blockbuster, Woolworths

memorable and distinctive too.

Cup). Ultimately you must truly understand

(I could go on) - they may have a differ-

what your customer actually wants and

ent response to their counterparts cur-

story. What use is a great design if it doesn’t

expects. There’s no point in guessing at it

rently occupying the Top 100 UK Superbrand

stand for anything or connect with the people

either, you need to ask them, then respond

positions.

who matter most - our customers?

accordingly. Crucially, you can’t just identify

However, branding is only part of the

Ours is a highly competitive and some-

Richard Shotton works at Manning Gottleib

what your customer wants then adjust your

OMD, one of the most decorated media agen-

times commercially aggressive sector. For

marketing to suit. If your product offer isn’t

cies in the history of the IPA Effectiveness

example, when trying to win new SME

actually delivering against customer needs,

Awards. Interestingly their website currently

business, there’s no question that being the

your marketing can say whatever it wants -

states that they are “Ranked the No.1 Media

most memorable brand in the sector helps.

but it won’t work.

Agency in Europe by WARC 100 - 2018”. The

Being top of mind when a consumer starts a

In the mid 1990s Sainsbury’s did some

web search can go a long way. It’s therefore

research which told them that potential

no surprise that many of our competitors

customers thought they were expensive. The

WARC 100 is an annual ranking of the world’s best marketing campaigns and companies. Richard is interested in the subject of

www.tlfresearch.com | Winter 2018 Customer Insight 19

F E AT U R E

behavioural science and

Our voracious appetite for

will continue to remind us of how wise we’ve

how it can be applied to

consuming tea precedes our

been in our purchasing decision - sometimes

advertising and market-

reputation around the globe.

subtly, sometimes directly - asserting their

ing. In his book ‘The

The marketing team at Unilever

dominance, reminding us that their product

Choice Factory’ he outlines

are clearly aware of this

is No.1. There’s safety in numbers you see.

some simple experiments

reputation and are prepared to

Fear, uncertainty and doubt are well trodden

undertaken to test the

tap into it. Packs of PG Tips

effectiveness of social

sold in international

paths for advertising copywriters. The antidote being security. “Nobody ever got fired

proof in business. In one

markets are

experiment 300 respon-

prominently

dents were shown images

displayed with the

Crucially though they’ve constantly evolved

of a fictitious beer brand

message “Britain’s

to remain relevant and succeed. For your

and were told that it was

No.1 Tea Brand”. The

business to excel, and therefore your brand,

launching in the UK. “Half

inference being - if

you must offer an end-to-end customer

were told about the origin of the ingredients

it’s good enough for

experience which consistently meets and

and half were told the same story but with

a nation of 53 million

for buying IBM”. IBM remains a Superbrand to this day.

often exceeds expectations. It must evolve

the additional information that it was South

tea crazed Brits - it should be good enough

too. Some of the brands listed above are

Africa’s most popular beer. In the second

for you.

either extinct or a mere shadow of their

scenario, consumers were twice as likely to

Unilever are not the exception. Brands

former self. Did they base their offer around

want to try it.” In another experiment, a pub

across the world realise the power that exist-

known customer satisfaction drivers? Were

in South London agreed to place a small sign

ing customers hold in helping to influence

they prepared or even able to respond in time

on the bar indicating which beer was the

others. Advocacy and social proof can convert

to the threats heading in their direction?

week’s best-selling product. It boosted sales

as powerful trust signals; peer-to-peer

by a factor of 2.5 compared to an average

evidence of how your product experience is

customers, deliver against their expecta-

week, and when other factors were removed

actually delivering against its promise. This

tions, then build your brand to suc-

it actually represented a doubling of the pro-

applies to brands at all stages of maturity

ceed. Superbrands who

portion of sales.

- either the new entrant or the established

get it right

Superbrand. In the case of the latter there’s

But what happens outside the confines of academic experimentation? Do real world brands use the same tactics?

no getting away from the fact that longevity and significant volumes of happy customers tends to translate into trust. And guess what, you tend to pay a premium for this. Consumers will continue to buy the prod-

From alcohol we move to the really hard stuff - tea. We Brits love a cup of tea.

ucts they trust, and aspire to the premium brands that deliver on quality. Marketeers

20 Customer Insight Winter 2018 | www.tlfresearch.com

The message is clear: understand your

F E AT U R E

can absolutely exert their position to sell

and focus even stronger. We will continue to

more, lose less and become even stronger.

manage our position and reputation to best

Superbrands without the requisite insight

effect. Our tone of voice will remain down to

and direction will very quickly become super

earth, our insight will be authoritative, our

failures.

presence will be wide-ranging.

Let’s return to the point of the sexy

Top 20 Business Superbrands 2018 1. Apple 2. BP

Brands should be considered as living and

3. Microsoft

brand and the sexy sector - whether it’s a

breathing entities. Brands need to evolve and

premium wrist watch, or a premium waste

stay relevant. Most of all they need to make

management service - good marketing

a meaningful connection. That connection

is good marketing regardless of either of

and how it is articulated is likely to be

these. Recycling and the environment has

different for every brand, but understanding

never been more prominent in the press

it is the key to success. What’s most

7. PayPal

or the public conscience than right now:

important is what you do with your brand to

#lattelevy, #singleuseplastics, #coffeecups,

keep your customers satisfied and coming

8. Shell

#carrierbags, #drinkingstraws, #blueplanet,

back for more. That is a different subject for

9. Visa

#circulareconomy, #resourcerevolution,

another time.

10. Mastercard

#greenfatigue, #plasticattack, #upcycle, #recycle. You name it, there’s a hash tag for that. Some of this is jargon, some of it is real and really matters. Our job is to seamlessly manage the waste that our customers produce for

4. British Airways 5. Emirates 6. Google

11. American Express 12. London Stock Exchange Group 13. Virgin Atlantic

the best outcome. Marketing clearly plays an

14. IBM

important role in this, both during acquisition

15. JCB

and throughout the life of the relationship. In many ways being the No.1 brand is actually irrelevant. Does it help to validate a certain vanity, perhaps, and there’s no question that Biffa is proud to be the No.1 Superbrand in our sector. But do we come to work each day thinking: ‘Market-

16. Samsung 17. GlaxoSmithKline 18. Bosch 19. Barclaycard 20. Intel

ing this brand is a doddle, we’re already No.1 so why try harder?’ - absolutely not. If anything it makes our determination

Guy Maddock Group Head of Marketing Biffa

www.tlfresearch.com | Winter 2018 Customer Insight 21

CUSTOMER

INSIGHT

Places are limited so please book early to avoid disappointment

CONFERENCE:

www.tlfresearch.com 01484 467000

I n s i gh t > A c t i o n > Ch a n ge

uk@leadershipfactor.com

WEDNESDAY 7TH NOVEMBER 2018 | 09:30 - 15:45 ONLY £195 (ex VAT) etc. venues - Prospero House 241 Borough High Street London SE1 1GA

Agenda 9:30-10:00

GU EST S Soc ial M PEAK ER edia And Exp er t: rew Dav is

Registration with tea, coffee and biscuits

10:00-10:10

Greg Roche: Introduction to the day

10:10-10:40

Greg Roche: Where does it all go wrong? Surveys can lead to paralysis by analysis. Greg reminds us how to avoid missing the critical elements of communication and taking action on the results.

10:40-11:15

Rachel Allen: Planning your research programme Tips and advice on how forward planning and future-proofing your survey will allow you to avoid the pitfalls and gain more actionable insight.

11:15-11:30

Coffee Break

11:30-12:15

Mark McCall: Finding the story Finding the relevant messages in results to make sure everyone is responsible and accountable for improving the customers’ experience. Practical ideas for engaging employees, stakeholders and customers with survey results.

12:15-13:00

Stephen Hampshire: Insight, actionabilty, action What, exactly, makes an “actionable insight”? Can insight ever deliver action in isolation? (No) How important is the way insights are communicated? (Very)

13:00-13:45

Lunch

13:45-14:45

Keynote speaker: Andrew Davis Social Media is becoming a popular channel for customers to feed back on their experiences. Andrew shows how to keep online conversations going, but stresses the need for digital strategy always to complement traditional business building and marketing. A visiting lecturer at Goldsmiths College, Andrew Davis also designed the first social media course linked to GCSE English.

14:45-15:30

Chris Elliott: Are we measuring the right things? We need to ask ourselves what we are measuring, and why. Tracking key metrics is useful, but don’t neglect the benefits of deep dives to engage colleagues and keep the research fresh.

15:30-15:45

Q&A and Close

GREG ROCHE

RACHEL ALLEN

CHRIS ELLIOTT

STEPHEN HAMPSHIRE

Book online at www.tlfresearch.com | 01484 467000

MARK MCCALL

n o g n i hang e n o h p e l e t e th CASE STUDY

When it comes to making contact with an organisation, only

Believe it or not, the idea of playing music whilst being on hold was actually discovered by accident. In 1962 a factory owner named Alfred Levy discovered that, due to loose wiring in the factory building he owned, the building had become a giant receiver which picked up the broadcast signal

36% of people still choose the telephone as their preferred means of contact. 57% now prefer an online method, whether that be email, web chat or social media, and only 1% of people still prefer the traditional post box. When broken down generationally however, these

from a nearby radio station, and relayed it through

statistics change quite dramatically. For those

the phone system whenever calls were put on

aged between 18 and 24, 68% chose an online

hold. He patented this in 1966 and thus began

communication method as their preferred choice,

the evolution of hold music as we know it today!

but for those aged 65 or over, the telephone was

Using the TLF panel, we asked just over 2,500 of our

this as their first choice of contact method.

the most popular, with nearly 50% choosing panellists about their experiences of dealing with hold music, and how they’d like to see it evolve in the future. Some of the responses didn’t come as a surprise (turns out not many people want to listen to hip hop whilst

Automated telephone systems: striking the right tone or tone-deaf?

waiting to be connected!), but there were some interesting (and unexpected) results discovered along the way…

65% have used telephone systems that require you to say what you are calling about, and 85% have used the systems

If you need to make contact with an organisation, what would normally be your first choice of contact method?

that require you to press a number on the phone keypad. Of those using both, 80% prefer the latter. It looks like we have a long way to go before people prefer voice recognition! 80% would take advantage, if given the option, to select their preferred genre of music to listen to whilst on hold, with the most popular option being pop music, and the least favourite being music related to the organisation you are calling, e.g. jingles/music from advertising. 38% are unlikely to opt out of hold music all together,

TELEPHONE

35.5%

EMAIL CONTACT FORM ON WEBSITE

40.5%

ONLINE OR LIVE CHAT

14.8%

but 24% are extremely likely to opt out of hold music if given the option - a quarter of people prefer the sound of silence whilst waiting! 86% like the feature that tells them what position they are in the queue.

Your call is very important to us! TWITTER

IN PERSON

POST

1.5%

6.5%

1.2%

Once you are in the hold queue there are several factors that influence the experience you receive. We asked the panel to rate the following actions, out of 10, in terms of how they affected their ‘on hold’ experience, with 1 being ‘made the wait worse’ and 10 being ‘made the wait better’.

www.tlfresearch.com | Winter 2018 Customer Insight 23

CASE STUDY

The higher the average score, the more positive impact on the experience the action had: AVERAGE SCORE

ACTION

(Sorted in descending order)

Being told what position in the queue you are

7.0

Being told how long you will be on hold for

6.6

Information informing you of what you might need to give the call handler when you get through e.g. customer reference number, postcode, DOB etc.

6.2

Information providing potential solutions to the issue you are ringing about e.g. informing you of other channels where you can find more information

5.2

Messages thanking you for waiting/holding

4.9

Information not related to the organisation e.g. news business weather sport snippets

4.8

Information about the organisation's website

4.6

Messages informing you of alternative contact methods

4.2

Information about other products the organisation offers

4.1

Information about the organisation/their performance in general

4.1

Repetition of the same messages over and over

3.5

Repetition of the same piece of music over and over

3.4

Poor quality/crackly music

3.2

Communication, as always, is key. The top

• This drops to 80% as the time increases to

four actions are all related to being kept up

2.5 minutes, and drops further to 63% at 4.5

to date with your progress in the queue and

minutes.

details you may need to provide/need to know when your call is answered. Unsurprisingly, any form of repeated messages or music has a detrimental effect on the process, with poor quality/crackly music being the action that has the biggest negative

were position 30 or higher.

than 1 in 10 feel 10 minutes to be acceptable. • Less than 5% feel that more than 15 minutes is an acceptable length of time to be on hold. 100%

nies improve the technology behind the hold 80%

Putting the ‘you‘ in ‘queue‘

experience we’ll see customers accepting it a bit more; if they can keep in regular, relevant communication with the caller, answer calls

27% 8% 0 1

Some of us clearly still have some ‘hangups’ about the on-hold process, but love it or hate it, it’s here to stay. Hopefully as compa-

93% 63%

an orderly queue of one.” – George Mikes

remain in the queue if they are at position 20. • 4% claim they would stay on the line if they

• Only 1 in 4 feel 5 minutes is acceptable and less

impact on the overall ‘on hold’ experience.

“An Englishman, even if he is alone, forms

they are position 10, but less than 1 in 10 will

2 3 4 5 6 7 8 9 10 11 12 13 14 15 Time spent on hold

within 2.5 minutes and give people the option of what music they can listen to we should see the hold experience improve for everyone. If only Alfred Levy had kept the wiring better

We Brits love a good queue. We’re known

We also asked them what number in the

around the world for our pride in our queu-

queue they would have to be to make them

waiting in silence… which 24% of us would

ing abilities and etiquette, but how long are

hang up, it turns out if you’re into double

enjoy!

we really prepared to wait, and under what

digits you’re not likely to hang around…

circumstances? We asked the panel how long they felt was an acceptable length of time to wait in a queue, the results were interesting… • 93% feel that is it acceptable to be on hold for up to 1.5 minutes.

maintained in his factory we might all still be

• 3% hang up if they don’t get through to someone straight away. • 4 out of 5 will remain in the queue if they are

Tom Kiralfy Panel Manager

in position 4 but this drops to 3 out of 5 if in

TLF Panel

position 5.

tom@tlfpanel.com

• 1 in 5 will stay on the line if they are told

24 Customer Insight Winter 2018 | www.tlfresearch.com

The data we used to create the hold music article was obtained from TLFâ&#x20AC;&#x2122;s very own panel, branded as

Do you want to survey 1,000 consumers and get the results in 24 hours? Ask TLFâ&#x20AC;&#x2122;s in-house panel. Email your questions to us at tom@tlfpanel.com or call Tom on 01484 467045 to get a quote today. Visit www.tlfpanel.com for more information.

RESEARCH

The UKCSI, from the Institute of Customer Service (ICS), is the benchmark

Latest Headline Results

Overall Satisfaction

The second UKCSI report for 2018 was

The overall customer satisfaction score

released at the beginning of July. As ever

is 77.9 (out of 100), this is 0.3 points lower

measure of customer

there’s a lot of detail to dig into, and we’ve

than this time last year and the first time

satisfaction across 13 sectors

pulled together some of the highlights. The

since January 2015 that two consecutive

full Executive Report, published by ICS, is

UKCSI scores have shown a decline in overall

available to download free on their website:

satisfaction.

of the UK economy. For over a decade it has provided us

https://www.instituteofcustomerservice.com/

with a biannual snapshot of

research-insight/uk-customer-satisfaction-index

how UK consumers are feeling, and allowed us to understand

Amazon, a consistently excellent per-

For more detail, including scores for all

former, is the highest rated organisation, with a score of 86.7. Jaguar is the most

named organisations, it’s also possible to

improved from July 2017, with a score

purchase in-depth reports on each sector.

increase of 6.8 points to 81.6.

the impact of recession, 78.2

reputational damage, and the

77.9

77.4

77.1

individual winners and losers in

78.2 78.1

77.9

77.0 76.3

terms of customer experience

77.8

76.0

76.2

in each sector. As the ICS put it “The UK Customer Satisfaction Index gives a unique insight into the quality of customer service

72.0

in your sector. So you can see who’s leading the pack, and how you measure up.”

Jan-09

Jul-18

Figure 1: Overall UKCSI trend

The UKCSI methodology Twice a year TLF Panel, on behalf of ICS, conducts an online survey of its nationally-representative panel of UK consumers. Panellists are asked to rate their experiences of a particular organisation they have dealt with in the previous 3 months with the UKCSI score for each company being the average of its customers’ satisfaction scores, and the score for each sector being the average of all customers within that sector. The results for July 2018 are based on 45,000 responses in total, 3,000 from each sector except for Transport and Utilities which are based on 6,000 responses each.

Sarah Stainthorpe

The questionnaire, scored by customers on a 1-10 scale, covers professionalism, quality and

Client Manager

efficiency, ease of doing business, timeliness, problem solving and complaint handling as well as

TLF Research

attitudes towards trust and reputation. The questions are based on research into customers’ priorities

sarahstainthorpe@leadershipfactor.com

which has been periodically updated since the launch of UKCSI.

26 Customer Insight Winter 2018 | www.tlfresearch.com

RESEARCH

Satisfaction by Sector

82.2

Retail (Non-food), 82.1

81.5

In line with the slight overall drop in score, most sectors have suffered a slight

80.7 80.3

fall in customer satisfaction, the biggest

79.7 79.4

exception being the financial sectors which

78.9 78.5

have both increased their scores, with Banks

Retail (Food), 81.2 Banks & Building Societies, 80.4 Tourism, 80.3 Leisure, 79.9 Insurance, 79.3 Automotive, 79.0 Services, 77.8

& Building Societies achieving their highest score ever. Transport has seen the biggest drop in satisfaction, meaning it is now the lowest scoring sector and at its lowest point since January 2015.

76.0

Public Services (National), 75.8 Public Services (Local) 75.4

75.4 75.1

Utilities, 74.7 Telecommunications & Media, 74.3

74.5 74.0

Transport, 72.5

Figure 2: Change in UKCSI by sector, July 2017 - July 2018

Satisfaction by Region

Key Differentiators

Customer satisfaction has decreased in

What makes the biggest difference between the top performing companies and the rest? The

every country and region of the UK since this

top five show the importance of service and being seen to care for customers….

time last year. The North of England has the highest average satisfaction score of 78.9 and

Measure

Top 10 Companies

Remaining Companies

Speed of responses (text/webchat/social media)

8.7

7.5

Trust

8.5

7.7

Cares about their customers

8.4

7.5

Helpfulness/competence of staff

8.4

7.5

Ease of getting through (phone)

8.3

7.4

Scotland has the lowest with 76.9:

76.9 77.7

78.3 79.1

78.9 79.0

The top 10 companies also scored highly on ‘% of getting things right first time’ (88.2% compared to remaining organisations score of 79.4%) and complaint handling (7.1 compared to remaining organisations 5.7).

78.6 78.7

78.4 78.5

What does UKCSI mean?

77.7 78.5

77.0 77.4

the links between customer satisfaction, loyalty, and market performance. Organisations which

The UKCSI continues to show the importance of customer experience, and the strength of consistently outperform their sector show stronger growth and sales, as well as improved levels of trust and reputation.

July 2018

July 2017

UKCSI should be seen as the best indicator of how good a job UK companies are doing of meeting their customers’ needs. If the slight dip we’ve seen over the last two waves continues

Figure 3: Satisfaction by Region, July 2018

then we can expect to see a serious impact on the performance of those organisations who are letting their customers down. As ever, though, some organisations and even some sectors are able to buck the trend, and will reap the rewards of their investment in the customer.

www.tlfresearch.com | Winter 2018 Customer Insight 27

RESEARCH

Working in customer experience is a fasci-

more to the experience than just keeping me

engaged, they will naturally add the additional

nating line of work – but at times it can also be

alive. He was keen to want to get to know me as

value that customers are looking for, and that

so frustrating. It’s fascinating as, in measuring

a person, and in doing so, shared his experiences

drives loyalty, which in turn drives profitability.

customer experience and helping organisations

of a fascinating life in the Himalaya. He was a

Never underestimate the power of your

drive changes that enhance the customer jour-

treasure trove of information on all things Ever-

workforce – after all, in most cases, they are

ney; I fully understand the value this can have for customers and for

est - he sought out rare local wildlife,

the face of an organisation.

introduced me to the local people,

This was also highlighted when I arrived

took me to temples far off the

at New Delhi Train Station, the busiest train

beaten track – ultimately

station in India handling over 400 trains and

personalising and craft-

500,000 passengers daily. I had missed my train

- surely it shouldn’t

ing an experience that

on account of the traffic whilst travelling across

be that difficult to

was so much better

the city from the airport, and after queueing for

deliver in the most

than my already

what seemed an eternity at customer services,

important aspect of

high expectations.

tired and exhausted, the railway staff could

an organisation’s

There was no mon-

not have been more helpful. Not only did the

strategy – keeping

etary value in going

customer service representative switch my ticket

above and beyond, it

without hesitation to the next available train

just came down to the

which was just about to leave – try managing

fact that he had pride

that in a UK train station without significant

in his work and he simply

cost - he arranged for a colleague to escort me

wanted to do the very best job

across the station to the right platform, and

he could in creating the very best

introduced me to the train manager who went

sense to do what matters most to customers

experience for me. I left that adventure feel-

on to show me to my carriage where I would

and keep them happy. After all, happy customers

ing as though I had made a friend for life –

spend the night. Throughout the night as he

become loyal customers, and loyal customers,

and though it’s likely our paths will never

amongst other significant benefits, spend more

cross again, I will never forget that

money with an organisation – so why would an

experience and I would rec-

organisation not strive to get this right?

ommend to anyone with-

a business. But frustrating when every day I see customer experience fails

customers happy. With

customer

satisfaction increasingly becoming the leading indicator of future financial performance, it makes complete

Having recently returned from 9 months travelling around the globe experiencing all

did his rounds, he checked in with me to see if he could help, and also woke me 10 minutes before my stop to make sure that I didn’t

out hesitation.

miss it. The whole expe-

When it comes to

rience was completely

kinds of adventures, I can now reflect on how

customer experience,

unexpected, and in

the different customer experiences helped to

the Service Profit

my mind above and

create, and in most cases add to, what ulti-

Chain (as described

beyond what was

mately was a life changing journey. And that

by Harvard Busi-

required – especially

is the power of customer experience – when an

ness Review) best

given the fact I was

organisation gets it right, it connects emotion-

demonstrates

ally with a customer and that’s where future

significance of engaged

custom is won and lost. Whether it be additional

employees. If an organ-

purchases, recommendations to friends and

isation wants to be more

family, or brand enhancement, it begins and

profitable then it will need to

ends with the customer experience.

have loyal customers. To attain loyal

the

in India, the most populated country in the world, with the sheer number of passengers in the system. As David Macleod suggests in

And that was certainly experienced when I

customers an organisation needs to be deliver-

The Macleod Report – “Engaging for Success:

found myself in Nepal trekking up to Everest

ing the right level of customer experience, con-

Enhancing performance through employee

Base Camp, having hired a local guide named

sistently, day in day out; and to do that it needs

engagement”, having engaged employees is

Passang Sherpa, essentially to ensure that I

its people. If employees take pride in working

crucial to the success of an organisation.

survived the trip. But Passang added so much

for an organisation and are highly satisfied and

www.tlfresearch.com | Winter 2018 Customer Insight 29

RESEARCH

eager to set out on what Lonely Planet describe

So what did I learn from my time away? I

having engaged employees.

He sets out that there are four enablers to

as “one of the world’s most scenic drives” but

learnt that it doesn’t matter where in the

1) Strategic narrative – what journey is the

was so angry to learn that said company had

world you are or what sector you are in,

organisation on, which direction is it heading,

failed to have a car available

customer experience is just as important

for me. Frustrating as

anywhere. The product or service may be

where is it on that journey, and where

that was, the attitude

do employees fit in?

of the employ-

2) Engaging managers –

ees on the help

Managers need to facilitate

desk was even

and empower rather than

worse. There

control and restrict.

was no effort

Employee

voice

–

to help, no attempt

employees should be actively

put

encouraged to speak up, and

things

right, no effort

employers listen, consider

to get me where

their views and action where possible. 4) Integrity – a belief among employees

advanced, but the principles are the same – when it comes to customer experience it’s all about people. So my advice for any busi-

ness would be to focus on 3 simple things: Employees are the face of an organisa-

tion. They represent the brand and drive a business forward, but in order to do this they need to feel engaged and have the right skills in order to deliver on your

I needed to be,

customer experience goals. An organisa-

just a “sorry mate,

tion needs to understand that perception

there’s nothing we can

that the organisation lives and breathes its values.

different, technology may be more or less

do.” I was simply left on my

is reality, and that in customers’ eyes it’s reality that really needs to change. Employ-

own in an airport with a string of hotels booked

ees know an organisation best and their

Customer experience has the power to make

over the next few days and no way to get there.

opinions on what needs to change should

a real impression – but with that power comes

My complaints fell on deaf ears. Whilst in the

be sought out and acted upon – driving

great responsibility, and when things go wrong

queue, on their limited advice, I emailed their

engagement, and also business change.

there is a duty to put things right. I recall explor-

customer complaints team to air my views – I’m

ing the south island of New Zealand, which is

still waiting to hear back 6 months on, and I

quite simply outstanding. From the grandeur

never made it onto the road trip.

of Milford Sound to the rug-

Dealing with customer complaints is para-

gedness of Fox Glacier,

mount to the success of an organisa-

New Zealand has it

tion. Working in research, there is

all to offer. In the land famed for

When it comes to dealing with

unhappy customers, an organisation needs to tackle them head on and have a robust process for handling complaints. There will be tough decisions, but if complaints are

significant evidence that proves

handled in the right way, they will enhance

dealing with complaints in the

an organisation’s reputation and ultimately

where Bilbo

right way actually enhances

Baggins

customer satisfaction. In

began

his

a modern, digital world,

magical

where sometimes the only

the bottom line. Be open and transparent with your

employees and your customers. Having an

adventure,

occasion you interact with a

aligned approach to communication helps

setting off

customer is when they have

drive employee engagement, whilst also

across awe

the

cause for complaint, organ-

inspir-

ing world

isations cannot afford to get

it wrong. Of course, its best

Middle-earth, who

practice to minimise any cause for

would have thought

complaint, but you will never eradicate

that the actions of a popular

them completely because things always have

car rental company could take that magic away

and always will go wrong. Complaints should

– yet that’s precisely what happened. Having

be viewed as an opportunity to impress, and

booked a car rental, I turned up at the airport

tackled head on.

Andy Butler Client Manager TLF Research andybutler@leadershipfactor.com

30 Customer Insight Winter 2018 | www.tlfresearch.com

enhancing customer loyalty. An organisation needs a strategy, but in order to deliver on the strategy there needs to be senior management commitment, clear communication, and effective management that leads and inspires, rather than controls and restricts.

REGIONAL BRIEFINGS:

GUIDE TO A SUCCESSFUL SURVEY TWO HOUR BRIEFING Rachel Allen will share her 12 years’ experience of running CSat projects across all sectors to provide a clear guide of what to avoid and what to have in place for running a successful survey. From how to sense check your sample to tips for creating impact with results. Don’t kick off your customer project without attending.

25th October 2018 Bristol | 14th November 2018 Huddersfield | 26th February 2019 Newcastle | 9th April 2019 Birmingham

14:30 - 16:30 | £50 (ex VAT)

CUSTOMER JOURNEY MAPPING FULL DAY PRACTICAL TRAINING COURSE Customer journey mapping is a crucial meeting ground for customer experience research, service design, management and communications. Mapping the customer journey is an essential part of gaining control over the customer experience, and it is also a great way to help staff understand customers and how they may be feeling. This briefing outlines the steps you must follow, and the sources of information and insight you need in place, to effectively map the customer journey. In the afternoon you will join a workshop to hone the necessary skills to put that process into practice. You won’t become an expert in one day, but you will have a chance to work with other delegates to put these techniques into practice.

14th November 2018 London | 4th December 2018 Manchester | 16th May 2019 London

09:15 - 16:30 | £300 (ex VAT)

Book online at tlfresearch.com or call 01484 467000

BOOK REVIEW

I recommend “This is Service Design Thinking” pretty often, but a client reminded me recently that we’ve never actually reviewed it for Customer Insight. It’s time to set that right. Despite being 8 years old, it remains a useful reference for anyone with an interest in service design and, in particular, in the tools of service design. While we’re at it, we’ll also take a look at its younger sibling “This is Service Design Doing” so we can compare and contrast the two. If you had to buy only one, which would you buy? That’s actually a surprisingly difficult question to answer. “Doing” has, as the name suggests, a more practical focus on how to actually apply the tools and techniques covered. It also includes the best part of a decade’s worth of slight evolution and development of those tools. Nonetheless, the authors got many things very right with “Thinking”, and it’s hard to beat as a quick reference when you need to look up a particular concept. It’s not a book that you will sit down and read cover to cover, but it is one that you will find yourself reaching for, flicking through, and cribbing from on a regular basis as you jog your memory, look

32 Customer Insight Winter 2018 | www.tlfresearch.com

BOOK REVIEW

for inspiration, and explain techniques to other

This is Service Design Doing Sections

service design project.

people.

• Why service design?

To make that difference in approach clear,

This is Service Design Thinking Sections

• What is service design?

let’s have a look at the sections on personas

• Introduction

• Basic service design tools

from both books excerpted below. In a nut-

• What is service design?

• The core activities of service design

shell, the difference between the two books is

• Who are these service designers?

• Research

that “Thinking” is more of a reference book,

• How does service design work?

• Ideation

organised into neat sections of which by far the

• What are the tools of service design?

• Prototyping

most useful is the catalogue of tools. “Doing”

• Applied service design

• Implementation

takes a slightly different tack, and mainly works

• Deep service design thinking

• Service design process and management

through the stages you would go through in a

• Facilitating workshops • Making space for service design • Embedding service design in organizations It’s much more likely that you’d want to sit down and read it cover to cover, and it makes much clearer how and why you should use the tools and approaches that it outlines. If “Thinking” is a reference book, then “Doing” is more like a course. So which should you choose? Now that it exists I’d probably start with “Doing” as a more complete picture of the practice of service design, particularly if you are relatively new to the field. I still find myself turning to “Thinking” more often than “Doing”, though, because its list of tools is so well organised and so clearly written. You might learn more about how to be a service designer from “Doing”, but if you want

This is Service Design Thinking

a neat definition of a service design tool to send to your boss then you’ll get plenty of value from “Thinking” as well – I think you should buy both!

Stephen Hampshire Client Manager TLF Research stephenhampshire@leadershipfactor.com

This is Service Design Doing

www.tlfresearch.com | Winter 2018 Customer Insight 33

HOW HARD CAN IT BE?

WHY SHOULD I COME TO YOUR STORE? It’s 70 years since the first self-service

finally decided that competing on price isn’t

But what if, realistically, you’re never

supermarket opened in the UK. Even though

the way forward? After all, there’s not much

going to be the cheapest. Then clearly, you

it was over 30 years behind its arrival in

point Jack’s and Tesco competing against

have to be the best. But not the best at every-

America some members of the British public

each other. And the link with Carrefour would

thing – that’s back to something for every-

were far from prepared. There were reports

give Tesco a great opportunity to introduce

one. You have to be the best at the things that

that one frustrated shopper annoyed at hav-

some seriously up-market food lines to its UK

are most important to your target market and

ing to select her own shopping threw a basket

stores. Jack’s bargain basement products may

all investment should be focused to that end.

at Alan Sainsbury, grandson of founder John

be 80% British but Tesco could have ‘French

You may lose some customers in non-core

James Sainsbury and the brains behind the

Cuisine’. And customers would expect that to

segments but in the long run that will happen

introduction of self-service. And another

come at a price.

anyway.

story of a judge’s wife who swore at him

For high street retailers to survive against

It’s no coincidence that the food retail-

because he was forcing her to “be her own

the online onslaught they must have a seam-

ers with the highest levels of satisfaction are

shop assistant”. As we know, customers got

less omnichannel offer (clicks and mortar)

focused. They may be the cheapest. Or they

used to the new format, resulting in dramatic

plus give customers a good reason to come

may be the most expensive, but they’re very

expansion and very healthy profits for leaders

in the stores. An attractive click and collect

unlikely to be the something for everyone

such as Tesco, Sainsbury’s, Asda and Mor-

/ returns service is a good start but more

mid-market stores. As the latest UKCSI data

risons. The last 10 years have been a different

important is a compelling reason for the cus-

shows, the top 5 are all focused, the bottom 5

story with the big box supermarkets losing

tomer to make the effort to trek to the store

are all mid-market.

market share to newer entrants like Aldi, Lidl

– and it can be a real effort for many people.

and M&S Food.

Crucially, stores have to have a very clear

We’ve seen similar trends in non-food

Iceland Waitrose

proposition of very strong appeal to their

Aldi

retail with Woolworths, BHS and House

target market. This is the exact opposite of

M & S (food)

of Fraser all going under and Debenhams

most high street retailers whose strategy

Lidl

teetering on the brink. 20 years ago M&S was

seems to be something for everyone. When

Sainsbury's

the first British retailer to make an annual

will they accept that most customers don’t

pre-tax profit of £1bn. 20 years on it made

believe that you can have the highest quality

a profit of £68m (a 93.2% reduction) and

and the lowest price? Retailers need to accept

announced it would have to close 100 stores.

that if they’re going to compete on price

Over those 20 years M&S has epitomised

everything has to be focused on that. You’ve

the retailers’ mass-market, mid-market

got to be the Ryanair of the high street. Like

trap. How do you compete with the price of

Ryanair you will offend some people but if

Primark, the quality of Burberry, the style of

you have fit-for-purpose products at the best

Paul Smith and the convenience of ASOS?

price, customers for whom price is the most

Tesco thinks it has the answer, launch-

important factor will come.

ing Jack’s at the end of September with CEO Dave Lewis announcing that Jack’s will be the “cheapest in town”. So Jack’s is lowcost competitor to Aldi and Lidl but could it mean that one of our biggest retailers has

Nigel Hill TLF Research

34 Customer Insight Winter 2018 | www.tlfresearch.com

Tesco ASDA Morrisons Co-op Food

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WARMING UP RESPONDENTS TO MAXIMISE RESPONSE RATES 24th October 2018 10:30 - 11:00

Whether you are trying to increase a low response rate or hope to encourage a few more customers to take part in your research programme, this webinar provides practical tips and ideas for communicating with customers before the survey and engaging their interest in your research.

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13th November 2018 10:30 - 11:00

20th November 2018 11:00 - 11:30

We are often asked by clients for advice on what survey results and planned actions should be shared back with customers; organisations often worry about sharing too much confidential information and customers are often suspicious that the detail is missing. This webinar provides practical suggestions on how to effectively share information.

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MEASURING COMPLAINT HANDLING

UNDERSTANDING CAUSATION FROM A/B TESTS TO MODELLING

27th November 2018 10:30 - 11:00

7th December 2018 11.00 - 11.30

We have worked with many organisations where the research highlights that they don’t do what they say they are going to. These behaviours erode customers’ trust. Greg shares ideas and examples of how organisations have made ‘keeping promises and commitments’ a priority for improvement for everyone.

Businesses often want answers to questions about cause and effect (Why has the score gone down? What impact will this new process have on retention?), but research has traditionally been reluctant to make causal claims (“correlation is not causation”). Now big data, online A/B testing, and the new science of causality are changing our understanding of what’s possible.

NEURO DESIGN FOR INFOGRAPHICS 12th December 2018 11.00 - 11.30

Infographics are popular because they can engage people with insight and make data stories memorable, but it’s not always clear how to achieve the biggest impact. In this webinar we discuss what Neuro Design, the field which applies lessons from cognitive science to the aesthetics of design, can teach us about making the right design choices.

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The data we used to create the hold music article was obtained from TLFâ&#x20AC;&#x2122;s very own panel, branded as

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