Category Archives: marketing

The Impact of Customer Experience on Brand Loyalty

The Impact of Customer Experience on Brand Loyalty

GUEST POST from Chateau G Pato

In a world awash with choices and a never-ending stream of new brands vying for attention, the customer experience (CX) has emerged as the key differentiator that can significantly impact brand loyalty. From the immediacy of online interactions to the nuanced dynamics of in-store engagement, understanding and enhancing customer experience is crucial for building long-lasting relationships with customers. In this article, we’ll explore how brands leverage superior customer experiences to foster loyalty, illustrated through two compelling case studies.

Case Study 1: The Ritz-Carlton

The Ritz-Carlton stands as a benchmark in the hospitality industry when it comes to delivering exceptional customer experiences. At the heart of their service philosophy is a simple, yet powerful credo: “We are Ladies and Gentlemen serving Ladies and Gentlemen.” But it is not just a tagline; it’s a commitment to ensuring that every interaction is magical for their guests.

One of the keys to The Ritz-Carlton’s success in driving brand loyalty is their focus on personalizing guest experiences. Employees are empowered to spend up to $2,000 without management approval to resolve a guest issue, which demonstrates their commitment to ensuring customer satisfaction. For instance, there is a famous story of a Ritz-Carlton staff member noticing a child forgot their stuffed toy at the hotel. The staff not only returned the toy but also included some photos of the toy’s “extended vacation” to delight the child. Such efforts cultivate emotional connections and drive brand loyalty, making guests feel valued and appreciated.

Case Study 2: Amazon

Amazon has revolutionized the retail landscape with its relentless focus on the customer experience. From the very beginning, CEO Jeff Bezos established a culture that prioritized customer-centricity above all else, often at the expense of short-term profits.

A quintessential example of Amazon’s commitment to customer experience is their seamless and intuitive user interface, which makes shopping an effortless experience. The introduction of features like one-click purchasing and personalized recommendations has greatly enhanced the shopping experience, increasing convenience and satisfaction. But perhaps the most significant impact on brand loyalty comes from Amazon Prime. By offering benefits such as free shipping, exclusive discounts, and original content, Amazon has created a robust ecosystem that keeps customers engaged and loyal. As a result, Amazon Prime members spend significantly more annually than non-members, demonstrating the strong link between a superior customer experience and brand loyalty.

Conclusion

As the cases of The Ritz-Carlton and Amazon illustrate, brands that excel in customer experience often see a corresponding rise in customer loyalty. Whether it’s through personalized service or continuous innovation, companies that invest in understanding and enhancing their customer experience stand a better chance of maintaining their competitive advantage and nurturing lasting relationships with their customers. In an era where customer expectations are higher than ever, focusing on the customer experience isn’t just a business strategy; it’s a necessary commitment to sustain brand loyalty in the modern marketplace.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Wikimedia Commons

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Top 40 Innovation Bloggers of 2021

Top 40 Innovation Bloggers of 2021After a week of torrid voting and much passionate support, along with a lot of gut-wrenching consideration and jostling during the judging round, I am proud to announce your Top 40 Innovation Bloggers of 2021:

  1. Janet Sernack
    Janet SernackJanet Sernack is the Founder and CEO of ImagineNation™ which provides innovation consulting services to help organizations adapt, innovate and grow through disruption by challenging businesses to be, think and act differently to co-create a world where people matter & innovation is the norm.

  2. Greg Satell
    Greg SatellGreg Satell is a popular speaker and consultant. His first book, Mapping Innovation: A Playbook for Navigating a Disruptive Age, was selected as one of the best business books in 2017. Follow his blog at Digital Tonto or on Twitter @Digital Tonto.

  3. Braden Kelley
    Braden KelleyBraden Kelley is a Human-Centered Experience, Innovation and Transformation consultant at HCL Technologies, a popular innovation speaker, workshop leader, and creator of the Human-Centered Change™ methodology. He is the author of Stoking Your Innovation Bonfire from John Wiley & Sons and Charting Change from Palgrave Macmillan. Follow him on Linkedin, Twitter, Facebook, or Instagram.


  4. Jesse Nieminen
    Jesse NieminenJesse Nieminen is the Co-founder and Chairman at Viima, the best way to collect and develop ideas. Viima’s innovation management software is already loved by thousands of organizations all the way to the Global Fortune 500. He’s passionate about helping leaders drive innovation in their organizations and frequently writes on the topic, usually in Viima’s blog.

  5. Robert B Tucker
    Robert TuckerRobert B. Tucker is the President of The Innovation Resource Consulting Group. He is a speaker, seminar leader and an expert in the management of innovation and assisting companies in accelerating ideas to market.

  6. Rachel Audige
    Rachel AudigeRachel Audige is an Innovation Architect who helps organisations embed inventive thinking as well as a certified Systematic Inventive Thinking Facilitator, based in Melbourne.


  7. Howard Tiersky
    Howard TierskyHoward Tiersky is an inspiring and passionate speaker, the Founder and CEO of FROM, The Digital Transformation Agency, innovation consultant, serial entrepreneur, and the Wall Street Journal bestselling author of Winning Digital Customers: The Antidote to Irrelevance. IDG named him one of the “10 Digital Transformation Influencers to Follow Today”, and Enterprise Management 360 named Howard “One of the Top 10 Digital Transformation Influencers That Will Change Your World.”

  8. Paul Sloane
    Paul SloanePaul Sloane writes, speaks and leads workshops on creativity, innovation and leadership. He is the author of The Innovative Leader and editor of A Guide to Open Innovation and Crowdsourcing, both published by Kogan-Page.

  9. Pete Foley
    A twenty-five year Procter & Gamble veteran, Pete has spent the last 8+ years applying insights from psychology and behavioral science to innovation, product design, and brand communication. He spent 17 years as a serial innovator, creating novel products, perfume delivery systems, cleaning technologies, devices and many other consumer-centric innovations, resulting in well over 100 granted or published patents. Find him at pete.mindmatters@gmail.com

  10. Nicolas Bry
    Nicolas BryNicolas is an International Innovation Executive, expert in corporate innovation programs, and innovation labs, designing place where good innovation thrives! He currently helps the 20 innovation managers of Orange Africa to develop their projects locally. In 2019 he wrote The Intrapreneurs’ Factory, a practical guide to leverage intrapreneurship for your company, and is the writer of the innovation blog RapidInnovation.fr.

  11. Build a common language of innovation on your team


  12. Arlen Meyers
    Arlen MyersArlen Meyers, MD, MBA is the President and CEO of the Society of Physician Entrepreneurs at www.sopenet.org

  13. Linda Naiman
    Linda NaimanLinda Naiman helps executives and their teams develop creativity, innovation, and leadership capabilities, through coaching, training and consulting. She brings a multi-disciplinary approach to learning and development by leveraging arts-based practices to foster creativity at work, and design thinking as a strategy for innovation.


  14. Anthony Mills
    Anthony MillsAnthony Mills is the Founder & CEO of Legacy Innovation Group (www.legacyinnova.com), a world-leading strategic innovation consulting firm working with organizations all over the world. Anthony is also the Executive Director of GInI – Global Innovation Institute (www.gini.org), the world’s foremost certification, accreditation, and membership organization in the field of innovation. Anthony has advised leaders from around the world on how to successfully drive long-term growth and resilience through new innovation. Learn more at www.anthonymills.com. Anthony can be reached directly at anthony@anthonymills.com.

  15. John Bessant
    John BessantJohn Bessant has been active in research, teaching, and consulting in technology and innovation management for over 25 years. Today, he is Chair in Innovation and Entrepreneurship, and Research Director, at Exeter University. In 2003, he was awarded a Fellowship with the Advanced Institute for Management Research and was also elected a Fellow of the British Academy of Management. He has acted as advisor to various national governments and international bodies including the United Nations, The World Bank, and the OECD. John has authored many books including Managing innovation and High Involvement Innovation (Wiley). Follow @johnbessant

  16. Mike Shipulski
    Mike ShipulskiMike Shipulski brings together people, culture, and tools to change engineering behavior. He writes daily on Twitter as @MikeShipulski and weekly on his blog Shipulski On Design.

  17. Scott Anthony
    Scott AnthonyScott Anthony is a strategic advisor, writer and speaker on topics of growth and innovation. He has been based in Singapore since 2010, and currently serves at the Managing Director of Innosight’s Asia-Pacific operations.


  18. Jeffrey Phillips
    Jeffrey Phillips has over 15 years of experience leading innovation in Fortune 500 companies, federal government agencies and non-profits. He is experienced in innovation strategy, defining and implementing front end processes, tools and teams and leading innovation projects. He is the author of Relentless Innovation and OutManeuver. Jeffrey writes the popular Innovate on Purpose blog. Follow him @ovoinnovation

  19. Phil McKinney
    Phil McKinneyPhil McKinney is the Author of “Beyond The Obvious”​, Host of the Killer Innovations Podcast and Syndicated Radio Show, a Keynote Speaker, President & CEO CableLabs and an Innovation Mentor and Coach.


  20. Gijs van Wulfen
    Gijs van WulfenGijs van Wulfen helps organizations to structure the chaotic start of innovation as author, speaker and facilitator. He is the founder of the FORTH innovation method and author of the innovation bestseller The Innovation Expedition. He was chosen by LinkedIn as one of their first 150 Influencers. Follow Gijs @gijsvanwulfen


  21. Kate Hammer
    Kate HammerKate Hammer is a joint founder of KILN, working with large-scale companies in the USA and Australia to transform their internal innovation processes. Kate works as a business storyteller. In 2012, she created StoryFORMs to help others articulate their commercial & organisational stories. Kate offers workshops & 1:1 coaching.

  22. Accelerate your change and transformation success


  23. Phil Buckley
    Phil BuckleyPhil Buckley is an award-winning author and change management strategist with over 32 large-scale change initiatives, including co-leading global change management for the $19.6 billion Kraft Foods acquisition of Cadbury. He is the author of two books: Change on the Run and Change with Confidence. You can find Phil’s podcast and monthly newsletter at www.changewithconfidence.com.

  24. Tamara Ghandour
    Tamara GhandourTamara Ghandour of GoToLaunchStreet is a TED speaker and entrepreneur. From building and running multimillion dollar businesses, advising Fortune 500 like Disney, Procter and Gamble and RICOH on fostering innovative ideas and people. Tamara’s life is about breaking through the status quo for game-changing results, and that’s what her keynotes, online programs and assessments can do for you.

  25. Tom Koulopoulos
    Thomas KoulopoulosTom Koulopoulos is the author of 10 books and founder of the Delphi Group, a 25-year-old Boston-based think tank and a past Inc. 500 company that focuses on innovation and the future of business. He tweets from @tkspeaks.

  26. Michael Graber
    Michael GraberMichael Graber is the cofounder and managing partner at Southern Growth Studio, a Memphis-based firm that specializes in growth strategy and innovation. A published poet and musician, Graber is the creative force that complements the analytical side of the house. He speaks and publishes frequently on best practices in design thinking, business strategy, and innovation and earned an MFA from the University of Memphis.

  27. Yoram Solomon
    Four Rules to Snap Judge a New VentureDr. Yoram Solomon is the author of The Book of Trust and 12 more books, a TEDx and keynote speaker, the founder of the Innovation Culture Institute, and an adjunct professor of entrepreneurship. You can follow him everywhere on @yoramsolomon.

  28. Shilpi Kumar
    Shilpi KumarShilpi Kumar an inquisitive researcher, designer, strategist and an educator with over 15 years of experience, who truly believes that we can design a better world by understanding human behavior. I work with organizations to identify strategic opportunities and offer user-centric solutions.

  29. Shawn Nason
    Shawn NasonShawn Nason, founder and CEO of MOFI, lives his life with a commitment to make everyone he meets a part of his family. Armed with the gift of discernment, he has the uncanny ability to walk alongside people as they struggle to connect with their deepest passions and engage their most debilitating demons. He challenges the world around him to be fully present, get real, and knock down the barrier that separates the various compartments in their lives.


  30. John Carter
    John CarterJohn Carter has been a widely respected adviser to technology firms over his career. John is the author of Innovate Products Faster: Graphical Tools for Accelerating Product Development. As Founder and Principal of TCGen Inc., he has advised some of the most revered technology firms in the world.

  31. Jeff Rubingh
    Jeff RubinghJeff Rubingh is a technology innovation expert, consultant and analyst. Focused on the intersection between technology and business, Jeff helps clients identify ground-breaking solutions that maximize ROI across existing and emerging technology disciplines.

  32. Ludwig Melik
    Ludwig MelikLudwig Melik is CEO of Planbox, whose mission is to help organizations thrive by transforming the culture of agile work, continuous innovation, and creativity across the entire organization… Connect with him on LinkedIn or join the conversation by following Planbox on Facebook, Twitter, and LinkedIn.


    Get the Change Planning Toolkit


  33. Soren Kaplan
    Soren KaplanSoren Kaplan is the bestselling and award-winning author of Leapfrogging and The Invisible Advantage, an affiliated professor at USC’s Center for Effective Organizations, a former corporate executive, and a co-founder of UpBOARD. He has been recognized by the Thinkers50 as one of the world’s top keynote speakers and thought leaders in business strategy and innovation.

  34. Shelly Greenway
    Shelly GreenwayShelly Greenway is a front-end innovation strategist and partner at The Strategy Distillery – a brand innovation consultancy that specialises in opportunity hunting and proposition development. Their success rates are driven by their proprietary consumer co-creation IP. Follow @ChiefDistiller

  35. Eric Eskey
    Eric EskeyEric Eskey is a Managing Director at Strategyn, an innovation consultancy. Eric is in the business of creating the future. I aim to use the resources he has – his work, investments, voice, and imagination – to encourage innovation and defeat the hidden forces that resist it.


  36. Mick Simonelli
    Mick SimonelliMick Simonelli is an innovator with 20+ years of implementing change and positive disruption at USAA. As a military veteran, he held transformation roles in numerous military organizations; and as a business executive, he purposely hired vets to help launch numerous innovations as the Chief Innovation Officer for a Fortune 500 company. Mick currently serves as an innovation consultant and can be found at www.micksimonelli.com Follow @MickSimonelli


  37. Mitch Ditkoff
    Mitch Ditkoff is the Co-Founder and President of Idea Champions and the author of “Awake at the Wheel”, as well as the very popular Heart of Innovation blog.


  38. Peter Cook
    Peter CookPeter Cook leads Human Dynamics and The Academy of Rock, providing Keynotes, Organisational Development and Coaching. He is the author of seven books on business leadership. His three passions are science, business and music, having led innovation teams for 18 years to develop life-saving drugs including the first treatments for AIDS and the development of Human Insulin. Peter is Music and Business editor at Innovation Excellence. You can follow him on twitter @Academyofrock.


  39. Mukesh Gupta
    Mukesh GuptaMukesh Gupta is Director of Customer Advocacy, SAP India Private Limited. He also served as Executive Liaison for the SAP User group in India, and as a Global Lead in Sales & Business Development. He blogs, and shares podcasts and videos, on his site rmukeshgupta.com


  40. Paul Hobcraft
    Paul HobcraftPaul Hobcraft runs Agility Innovation, an advisory business that stimulates sound innovation practice, researches topics that relate to innovation for the future, as well as aligning innovation to organizations core capabilities. Follow @paul4innovating

  41. Ralph Christian Ohr
    Ralph OhrDr. Ralph-Christian Ohr has extensive experience in product/innovation management for international technology-based companies. His particular interest is targeted at the intersection of organizational and human innovation capabilities. You can follow him on Twitter @Ralph_Ohr.

  42. Randy Pennington
    Randy PenningtonRandy Pennington is an award-winning author, speaker, and leading authority for helping leaders deliver positive results in a world of uncertainty and change. To learn more or to engage Randy for your organization, visit www.penningtongroup.com, email info@penningtongroup.com, or call 972-980-9857 (U.S.).

If your favorite didn’t make the list, then next year try to rally more votes for them or convince them to increase the quality and quantity of their contributions.

Our lists from the ten previous years have been tremendously popular, including:

Top 40 Innovation Bloggers of 2015
Top 40 Innovation Bloggers of 2016
Top 40 Innovation Bloggers of 2017
Top 40 Innovation Bloggers of 2018
Top 40 Innovation Bloggers of 2019
Top 40 Innovation Bloggers of 2020

Download PDF versions of the Top 40 Innovation Bloggers of 2020 and 2021 lists here:


Top 40 Innovation Bloggers of 2020 PDF . . . Top 40 Innovation Bloggers of 2021

Happy New Year everyone!

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Best Methods for Conducting Effective User Interviews

Best Methods for Conducting Effective User Interviews

GUEST POST from Art Inteligencia

User interviews are a cornerstone of meaningful design and innovation. They offer a window into the lives, needs, and desires of users. Conducting effective user interviews can reveal valuable insights that drive product development and strategy. In this article, we’ll explore the best methods for conducting user interviews and examine two real-world case studies that highlight their impact.

Preparing for User Interviews

Successful user interviews start long before you sit down with participants. Preparation is crucial:

  • Define Your Goals: Clearly outline what you want to learn. This helps in shaping your questions and choosing the right participants.
  • Select Participants: Aim for a diverse set of users to gain a broad perspective. Ensure they represent your target audience.
  • Create a Guide: Develop an interview guide with open-ended questions. This framework should be flexible enough to allow conversation to flow naturally.
  • Set the Scene: Conduct interviews in a comfortable, distraction-free environment where participants feel relaxed and open.

Conducting the Interview

During the interview, building rapport and being an active listener are key:

  • Establish Trust: Start with light conversation to make participants comfortable, explaining how their input will be used.
  • Be an Active Listener: Give your full attention, and show empathy and curiosity about their experiences.
  • Encourage Storytelling: Ask participants to share specific stories that highlight their experiences and struggles.
  • Probe Deeper: Use follow-up questions to delve deeper into significant points raised by participants.

Analyzing Results

After conducting interviews, the next step is to analyze the data collected:

  • Transcribe and Organize: Convert recordings to text and organize responses to identify patterns.
  • Identify Themes: Look for recurring themes and insights that can inform your project.
  • Actionable Insights: Transform insights into actionable design criteria or business strategies.

Case Study 1: Redesigning a Fitness App

A well-known fitness app, seeking to improve user engagement, embarked on a project to redesign its interface. The team conducted a series of user interviews with existing and potential users. Through these interviews, they discovered that many users felt overwhelmed by the app’s complexity.

By asking users to walk through their experiences, the team unearthed a pervasive theme: users wanted clearer guidance and personalized workout plans. The insights gained from these interviews led to a more intuitive user interface and the introduction of a new feature that allowed users to easily customize their workout regimes. This resulted in a 25% increase in user engagement within the first three months of the redesign.

Case Study 2: Innovating a Healthcare Solution

A startup focusing on home healthcare sought to understand how to better meet the needs of elderly patients. They conducted user interviews with both patients and caregivers. A prominent insight was the patients’ need for more personalized and human interaction, as opposed to purely digital solutions.

Through empathetic listening and careful questioning, the team learned that elderly patients valued personal relationships, including having consistent caregivers. This finding led to the development of a hybrid digital/physical interaction model that paired patients with a dedicated care manager who coordinated their digital healthcare tools and in-person visits. This approach not only improved patient satisfaction but also enhanced care outcomes and reduced hospital readmission rates.

Conclusion

Utilizing the right methods in conducting user interviews can profoundly impact product design and business strategies. By preparing thoroughly, engaging genuinely, and analyzing insights carefully, organizations can uncover hidden needs and innovate effectively. The case studies illustrate just how powerful user interviews can be in driving change that truly resonates with users.

I hope you’ve enjoyed this article about conducting effective user interviews, including preparation, execution, and analysis processes, complemented by two case studies showcasing real-world applications and impacts.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Black Friday Shows No Loyalty

Black Friday Shows No Loyalty

Marketers love to hold up points-based loyalty programs as proof of their contribution to their company’s financial success through repeat purchase behavior.

But traditional loyalty programs are nothing more than complicated, and expensive to manage, discount programs.

Black Friday is a faux holiday devoted to the religion of discounting.

This begs the question…

Do Black Friday deals do anything to create loyalty of any kind?

The idea behind Black Friday deals is almost as old marketing – the loss leader.

By offering one or more items at a substantial discount, the company and its marketers hope that a larger than normal group of potential customers will flood the shop (physical or virtual) and buy the loss leader (aka Black Friday deal) AND many other items they may (or may not) have been intending to buy.

Whether this is how it plays out in practice is a closely-guarded secret and debatable at best. Complicating the situation is the fact that Black Friday has become a virtual arms race that companies of all shapes and sizes are almost forced to participate in.

This means that nearly every retailer is offering some sort of Black Friday deal today, resulting in consumers:

  1. Best Case — Your existing customers start at your shop (online or virtual) and make a transactional purchase of one of your Black Friday deals (usually unprofitable for the company) and hopefully many other products or services to make your existing customer’s overall purchase profitable, plus they tell their friends and families to shop with you
  2. Worst Case — Your existing customers buy nothing or only your Black Friday deals, tell none of their friends and family, and you spend a lot of money on advertisements to attract non-customers to your shop that only buy your Black Friday deals

One of my marketing professors at London Business School – Mark Ritson – recently published a very funny video on the relationship between marketers and consumers:

Bridging the Gap Between Black Friday Deals and NextGen Loyalty

Marketers have an overly optimistic perspective on customer loyalty and their implementations of customer loyalty programs.

The reality is that very few customers are loyal and much of what we speak of as customer loyalty is no more than repeat transaction behavior.

In my article Next Generation Loyalty – Part One I look at how to excavate sources of NextGen Loyalty using Loyalty Archaeology™.

True loyalty (customer or otherwise) is when someone engages in a behavior that is not in their most obvious best interest because of a higher commitment.

Very few customers will ever behave against their best interests, but engaging in Loyalty Archaeology™ you can better understand where the value comes from in your products & services and work backwards to identify potential sources of customer loyalty.

Continue reading Next Generation Loyalty – Part One here.

Image credit: Pixabay

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Persona Development

Understanding Your Target Users

Persona Development - Understanding Your Target Users

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, understanding your target users is more crucial than ever. Personas offer a tangible way to capture in-depth insights about your potential customers, helping organizations to design better products and create more compelling marketing strategies. This article will explore the art of persona development, digging into its importance and providing illuminating case studies to illustrate the concept in action.

Why Persona Development Matters

Personas are fictional characters that represent different segments of your target audience. They embody key demographics, needs, behaviors, and goals, providing a clear picture of who your users are and what they want. Effective persona development enables teams to:

  • Identify and prioritize user needs.
  • Design solutions tailored to specific user segments.
  • Streamline communication and alignment within teams.
  • Create targeted marketing and sales strategies.

Steps to Develop Effective Personas

  1. Research: Gather data through interviews, surveys, and analytics to understand user behaviors, preferences, and challenges.
  2. Segmentation: Group users based on common characteristics and identify distinct user types.
  3. Profile Creation: Develop detailed profiles for each user type, including demographics, goals, pain points, and scenarios.
  4. Validation: Validate your personas with real user feedback to ensure accuracy and relevance.
  5. Implementation: Integrate personas into your product development and marketing strategies.

Case Study 1: Revamping a Health App for Seniors

Background

HealthyAge, a company specializing in health apps, aimed to develop a new version of their wellness app tailored for seniors. Initial user adoption was low, prompting the need for a more user-centered approach.

Research

HealthyAge conducted interviews and surveys with a diverse group of senior users. They identified key behaviors, such as reliance on larger text and simplicity in navigation, as well as unique pain points, such as difficulties in understanding certain health metrics.

Segmentation and Profile Creation

The company segmented their users into two main personas:

  • Tech-Savvy Senior: Comfortable with technology, enjoys tracking health metrics but needs better customization options.
  • Traditional Senior: Less technologically adept, requires intuitive interfaces and step-by-step guidance.

Implementation and Results

By incorporating these personas into the design process, HealthyAge revamped the app with larger text, voice-guided instructions, and customizable health metrics. Post-launch data showed that user satisfaction ratings increased by 40%, and app adoption among seniors more than doubled.

Case Study 2: Redesigning an E-Commerce Website for Millennials

Background

GlowShop, an e-commerce platform focused on beauty products, was experiencing high bounce rates and low conversion rates among millennial users. They decided to develop personas to better understand this demographic.

Research

GlowShop conducted focus groups and analyzed web traffic data. They uncovered essential insights about millennials, such as their preference for mobile shopping, value-driven purchases, and the importance of user-generated content.

Segmentation and Profile Creation

They identified two main personas:

  • Eco-Conscious Shopper: Values sustainability, prefers eco-friendly and cruelty-free products, and is willing to pay a premium for ethical brands.
  • Budget Beauty Seeker: Looks for good deals, responsive to promotions and discounts, and relies heavily on peer reviews and ratings.

Implementation and Results

By integrating these personas, GlowShop redesigned their website with mobile-optimized navigation, visible eco-friendly labels, and enhanced user review sections. The redesign led to a 25% increase in mobile purchases and a 15% rise in overall conversion rates.

Conclusion

Persona development is more than just creating fictional characters; it’s about deeply understanding your users to design experiences that resonate with them. By following a structured approach and validating personas through continuous engagement, organizations can drive user satisfaction and achieve significant business growth. Embrace the power of personas, and let them guide you to greater innovation and customer alignment.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

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The Influence of Priming on Consumer Behavior and Innovation Opportunities

The Influence of Priming on Consumer Behavior and Innovation Opportunities

GUEST POST from Art Inteligencia

Let’s delve into the fascinating world of priming, where subtle cues wield significant influence over consumer behavior. In this thought leadership article, we’ll explore how priming shapes our choices, impacts innovation, and opens doors to strategic opportunities.

Priming refers to the activation of mental constructs or associations through exposure to stimuli, often without conscious awareness. These cues can be visual, auditory, or even linguistic. As marketers, understanding priming is akin to wielding a powerful tool—one that can either reinforce existing behaviors or provoke unexpected responses.

Brands as Primes: A Curious Case

Case Study 1: Walmart vs. Slogan

In a series of experiments, researchers discovered a curious phenomenon: brands cause priming effects, while slogans produce reverse priming effects. (1) Let’s unpack this:

  • Brands: When participants were exposed to the retailer brand name “Walmart,” associated with saving money, their subsequent spending decreased. The brand itself primed thriftiness.
  • Slogans: However, exposure to the Walmart slogan, “Save money. Live better,” had the opposite effect—it increased spending. Slogans, perceived as persuasion tactics, triggered a reverse priming effect.

Implication: Brands subtly nudge behavior, while slogans act as persuasive cues. Marketers can strategically leverage both for desired outcomes.

Color Priming: The Emotional Palette

Case Study 2: Coca-Cola’s Red

Subconscious cues, such as colors, evoke emotions and influence behavior. Consider Coca-Cola’s iconic red hue. Representing passion and excitement, it primes consumers for immediate satisfaction. When combined with the message “Open the happy can,” the desire intensifies. (2)(3)

Takeaway: Brands can orchestrate emotional experiences through color priming, fostering deeper connections with consumers.

Reverse Priming: A Hidden Opportunity

Case Study 3: Correcting Bias

Sometimes, priming works in reverse. Consumers automatically correct for perceived bias. For instance, if a tactic implies spending money, they become thriftier. Conversely, when seeking value, they indulge more. (1)

Strategic Insight: Brands can intentionally trigger reverse priming to disrupt habitual behaviors and encourage innovation. Imagine a luxury brand subtly hinting at affordability—opening doors to new market segments.

Ethical Considerations

Priming isn’t a one-size-fits-all strategy. Marketers must tread ethically. Here are some questions to ponder:

  1. Subliminal Influence: How can we use priming without compromising consumer autonomy?
  2. Innovation: Can priming spark creative thinking and novel solutions?

Conclusion

Priming is both art and science. As marketers, we wield brushes of perception, coloring consumer choices and shaping innovation. Let’s embrace this hidden force, ethically, and unlock new possibilities.

Remember: The canvas awaits. Paint wisely.

References:

  1. Laran, J., Dalton, A. N., & Andrade, E. B. (2011). Curious Case of Behavioral Backlash: Why Brands Produce Priming Effects and Slogans Produce Reverse Priming Effects. Journal of Consumer Research, 37(6), 999–1014
  2. Digital Alchemy. (2018). How Priming Influences Consumer Behaviour
  3. CustomerThink. (2018). How Priming Influences Consumer Behaviour
  4. Entrepreneur. (2022). 3 Consumer Behavior Experiments to Inspire Your Startup’s Growth
  5. MotiveMetrics. What is Priming? A Psychological Look at Priming & Consumer Behavior

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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The Role of Design Thinking in Enhancing Customer Experience and Loyalty

The Role of Design Thinking in Enhancing Customer Experience and Loyalty

GUEST POST from Chateau G Pato

In today’s highly competitive business landscape, customer experience has become a crucial differentiator for companies looking to stand out and attract and retain loyal customers. Design thinking, a user-centered approach to innovation, has emerged as a powerful tool for enhancing customer experience and building customer loyalty.

Design thinking is a human-centered methodology grounded in empathy and creativity. By putting the customer at the center of the design process, companies can gain a deeper understanding of their needs, preferences, and pain points, which in turn allows them to create products and services that truly meet their customers’ expectations.

Case Study 1: Apple

One company that has successfully leveraged design thinking to enhance customer experience is Apple. Apple’s commitment to design excellence and user-centric innovation has helped the company build a loyal customer base that is willing to pay a premium for its products. Apple’s focus on simplicity, intuitive design, and seamless integration across its product ecosystem has set it apart from competitors and made it a leader in customer experience.

Case Study 2: Airbnb

Another company that has embraced design thinking to drive customer loyalty is Airbnb. By taking a human-centered approach to service design, Airbnb has created a platform that not only meets customers’ needs for affordable and unique accommodation but also fosters a sense of community and connection among users. Airbnb’s focus on personalization, transparency, and trust has helped the company build a devoted customer base that returns to the platform again and again.

Conclusion

Design thinking can be a powerful tool for companies looking to enhance customer experience and build customer loyalty. By putting the customer at the center of the design process, companies can gain valuable insights into their needs and preferences, leading to the creation of products and services that truly resonate with customers. Companies like Apple and Airbnb have demonstrated the impact of design thinking on customer experience and loyalty, setting a powerful example for businesses looking to differentiate themselves in the market. As competition continues to intensify, companies that prioritize design thinking will be well-positioned to thrive in an increasingly customer-centric world.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Unsplash

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Understanding Customer Needs and Expectations

Key considerations for planning a customer-centric digital transformation

Understanding Customer Needs and Expectations

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, digital transformation has become a critical imperative for organizations looking to stay competitive and relevant. However, many companies often overlook one crucial aspect of this process – understanding and meeting the needs and expectations of their customers.

A customer-centric approach to digital transformation is essential in ensuring that the changes implemented align with what customers want and need. By putting the customer at the center of the transformation journey, businesses can drive greater customer satisfaction, loyalty, and ultimately, business growth.

To effectively plan a customer-centric digital transformation, organizations must first gain a deep understanding of their customers’ needs, preferences, and pain points. This can be done through a variety of methods, such as customer surveys, focus groups, and data analytics. By collecting and analyzing this information, businesses can identify key trends and insights that can inform their digital transformation strategy.

Case study 1: Amazon

Amazon is a prime example of a company that has successfully implemented a customer-centric digital transformation. By leveraging data analytics and machine learning, Amazon is able to personalize the online shopping experience for each customer, recommend products based on their browsing history, and offer fast and convenient delivery options. This customer-centric approach has helped Amazon cement its position as the largest online retailer in the world, with a loyal customer base and strong brand reputation.

Case study 2: Starbucks

Starbucks is another company that has prioritized customer needs and expectations in its digital transformation efforts. By investing in its mobile app and loyalty program, Starbucks has made it easier for customers to order and pay for their favorite drinks, earn rewards, and receive personalized offers. This has not only improved the customer experience but also increased customer engagement and loyalty. As a result, Starbucks has seen significant growth in its digital sales and overall revenue.

Conclusion

Understanding and meeting customer needs and expectations are essential considerations for planning a successful customer-centric digital transformation. By putting the customer at the center of the transformation journey and leveraging data and insights, businesses can drive greater customer satisfaction, loyalty, and business success. Through the examples of Amazon and Starbucks, we can see the tangible benefits of taking a customer-centric approach to digital transformation. By learning from these companies and incorporating their strategies into their own efforts, organizations can position themselves for long-term success in the digital age.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: misterinnovation.com

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Next Generation Loyalty – Part One

Next Generation Loyalty - Part One

Loyalty Archaeology™

Excavating Sources of Next Generation Loyalty

Marketers have an overly optimistic perspective on customer loyalty and their implementations of customer loyalty programs.

The reality is that very few customers are loyal and much of what we speak of as customer loyalty is no more than repeat transaction behavior.

Customer Loyalty Programs Are Really Just Discount Programs

If we are honest as marketers, today’s typical customer loyalty program is no more than an a way of automatically gathering purchase data and distributing discounts. Today’s traditional points-based customer loyalty program is actually just a fancy and often costly discounting program because smart marketers only use discounting to capture sales that would not otherwise have occurred. As soon as you begin distributing discounts to people that would have purchased anyways, then you are cannibalizing your own profit margins.

If you want to dispute that a points-based loyalty program is nothing more than a discounting program, you have to look no further than web sites that quantify the value of points given for airline miles, hotel stays, etc.

So what is customer loyalty?

According to the Oxford Dictionaries, loyalty is a strong feeling of support or allegiance.

In a business sense, most people look at customer loyalty as a measure of how likely a customer is to do repeat business with a company or brand.

But this way of looking at customer loyalty is too easy to “achieve” and is more related to repeat purchase behavior than true loyalty. The definition of loyalty in Oxford Dictionaries is too weak as well.

True loyalty (customer or otherwise) is when someone engages in a behavior that is not in their most obvious best interest because of a higher commitment.

A United States Marine putting himself or herself in harm’s way to recover a wounded comrade from the battlefield is a demonstration of true loyalty.

A customer paying a higher price for an identical product could be a demonstration of loyalty, but could also be an example of brand value or linked to other intangible, often emotional sources of value not directly linked to the product itself (desire to support a company’s social purpose, affinity for cartoon characters used to promote the product, etc.)

A customer paying a lower price for an identical product because you’re giving them a “loyalty program” discount is not a sign of loyalty.

Focusing on the interfaces and experiences related to your products, services and solutions and their surrounding emotional components are more likely to engender loyalty than building a points-based program.

I’m not saying points-based programs are bad, but let’s be clear – they’re not loyalty programs, they’re great for gathering customer purchase data and helping to drive repeat purchase behavior. But, if your competitor offers a better points program you’re likely to lose your supposedly loyal customers.

What does a Next Generation Loyalty program look like?

A Next Generation (aka NextGen) Loyalty program has very little to do with points and promotions, but instead focuses on identifying and leveraging the variables that represent opportunities to create actual loyalty for your brands and their associated products, services and solutions.

Next Generation Loyalty programs can only be created if you understand where the value comes from for each of your products, services and solutions.

Innovation Resonance Venn Diagram

In my popular article “Innovation is All About Value” I highlighted the fact that there are three key value considerations in the pursuit of innovation:

  1. Value Creation is pretty self-explanatory. Your innovation investment must create incremental or completely new value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient, more effective, possible that wasn’t possible before, or create new psychological or emotional benefits.
  2. Value Access could also be thought of as friction reduction. How easy do you make it for customers and consumers to access the value you’ve created. How well has the product or service been designed to allow people to access the value easily? How easy is it for the solution to be created? How easy is it for people to do business with you?
  3. Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum between the need for explanation and education that your solution falls. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

All three are defined in the article on the link above and were created in an innovation context, but there is no reason they couldn’t also be used in a marketing context to identify potential sources of customer loyalty to be leveraged or enhanced.

Another great way to work backwards to identify potential sources of customer loyalty is to leverage A Practical Model for Jobs to be Done (JTBD) from Jim Kalbach. The six components laid out in his graphic below being:

  1. Situation
  2. Motivation
  3. Desired Outcome
  4. Functional Jobs
  5. Emotional Jobs
  6. Social Jobs

Practical Model for Understanding Jobs to be Done from Jim Kalbach

Using Loyalty Archaeology™ to Uncover Sources of NextGen Loyalty

These two simple frameworks give you a great place to start your quest for Next Generation Loyalty. Using Loyalty Archaeology™ to understand potential sources of loyalty will provide the foundation for building a potential program of loyalty enhancements.

You might be sensing that there is no one size fits all when it comes to NextGen Loyalty, and you’d be right.

What insights about the sources of your customers’ loyalty do you think these frameworks can provide?

What other tools do you think would be useful in excavating sources of potential customer loyalty?

In the next article in this series we’ll look at how to take the insights on customer loyalty sources and build a program of initiatives to enhance and accelerate your sources of unique customer loyalty. We’ll also look at how to go beyond points and redemption to leverage different parameters in your program of initiatives to build Next Generation Loyalty!

Image credits: Pixabay, Braden Kelley and Jim Kalbach

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Building Trust with Customers Through Transparency and Authenticity

Building Trust with Customers Through Transparency and Authenticity

GUEST POST from Chateau G Pato

Trust is the cornerstone of any successful business relationship. In today’s digital age, customers are more informed and skeptical than ever. They seek brands that not only promise quality but also practice transparency and authenticity. This article explores how companies can build trust with their customers through honest communication and genuine actions.

The Importance of Transparency

Customers today demand transparency from the brands they engage with. Transparency involves openly sharing information that is usually kept behind the curtains – whether it is about business practices, sourcing, pricing, or internal challenges.

Benefits of Transparency

  • Builds credibility
  • Enhances customer loyalty
  • Mitigates risks during crises
  • Fosters a culture of accountability

Case Study 1: Patagonia’s Commitment to Environmental Transparency

Patagonia, the outdoor clothing brand, has long been celebrated for its commitment to environmental sustainability. Their transparency about the supply chain and environmental impact has garnered significant trust from their customers.

Key Transparency Efforts

  • Detailed Footprint Chronicles: They provide detailed reports on the environmental and social impact of each product.
  • Worn Wear Program: Encourages customers to recycle garments by offering discounts on future purchases.
  • Open-Source Supply Chain: They allow customers to trace the origins of their products and verify ethical practices.

By making their processes visible and accountable, Patagonia reinforces their commitment to environmental stewardship and gains customer’s respect and trust.

The Power of Authenticity

Being authentic means staying true to one’s values and promises, even when it is challenging. Authenticity in business creates a genuine connection with customers that goes beyond transactions.

How to Demonstrate Authenticity

  • Stick to your brand values and mission
  • Engage in real conversations with your customers
  • Admit to mistakes and take accountability
  • Showcase real stories and user-generated content

Case Study 2: Ben & Jerry’s Advocacy for Social Issues

Ben & Jerry’s, the beloved ice cream brand, is not just known for its delicious flavors but also for its upfront stance on social and environmental issues. Their authenticity in standing up for these causes has built a loyal customer base that resonates with their values.

Notable Authenticity Efforts

  • Active Campaigning: They consistently involve themselves in contemporary issues like climate change, racial justice, and LGBT equality.
  • Transparency in Ingredients: They advocate for GMO labeling and provide accessible information about their products’ ingredients.
  • Honest Communication: They openly communicate their beliefs and the steps they are taking to make a difference.

Their unapologetic, honest approach to activism mirrors their brand values and helps them connect with customers who share similar views.

Conclusion

Transparency and authenticity are not just buzzwords; they are vital strategies that can significantly enhance customer trust. By being open, honest, and true to their values, companies can foster lasting relationships with their customers. The cases of Patagonia and Ben & Jerry’s illustrate how embracing transparency and authenticity can not only build trust but also distinguish a brand in an increasingly competitive marketplace.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Unsplash

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