A Rare Breed

A good leader can change an organization. A great leader can change history. Because leaders throughout history have had—and continue to have—such great influence over those around them, it’s not all that shocking that the qualities and traits of great leaders have been studied quite vigorously in the past few decades in an attempt to uncover the secrets behind history’s most influential leaders.

In one such study called “Follower-Focused Leadership: Effect of Follower Self-Concepts and Self-Determination on Organizational Citizenship Behavior,” Michelle Vondey investigates transformational leadership, which focuses on empowering individuals to work for the best interests of the organization. In her study, Vondey breaks down transformational leadership into these five characteristics.

The 5 Characteristics of Transformational Leadership

Communicate a Clear Vision

Effective leaders know what they want and understand the necessary steps to achieve their goals. By communicating these goals with every member of the organization, expectations are set and a game plan can be more clearly defined.

Explain How Vision Can Be Achieved

Once the vision for the business is defined, good leaders put together a detailed plan of action and share it with each member of the organization. A step-by-step plan helps everyone involved develop more effective processes and create clear expectations for each department of the organization.

Show Confidence in Both Vision and Followers

You’ve heard it time and time again: Confidence is contagious. And, you know what? It’s true. Good leaders show confidence in their vision and in the people executing it. That confidence leads to more confidence and ultimately results in achieving a collective goal.

Lead by Example

Every leader worth their weight in gold has followers. The thing about followers, though, is that they perform better with examples to follow. Good leaders don’t tell followers that they’re committed to the vision; they show it.

Here’s an example of Walt Disney showing off some of his magical leader abilities:

“Walt Disney used to walk through Disneyland [and] if he happened to see a piece of paper on the ground, he would stoop down to pick it up. He called this ‘Stooping to Excellence.’ He knew that as he walked through the park, all of the employees were watching him. He had to demonstrate excellence. He had to demonstrate that he wasn’t beyond picking up trash off of the ground.”

—Shep Hyken, The Customer Focus

Empower Followers to Work toward Vision Achievement

Achieving a common goal is a noble cause, but it presents challenges of all sorts. To address these challenges, followers must be empowered to do what they need to do to achieve the vision of their leader.

Follow the Leader… to Customer Centricity

The right tools and technology certainly help to improve an organization’s customer experience, but a great leader makes all the difference. According to our recent report, company leaders that set a positive example for their employees are the number one critical driver of customer experience (CX) success. (Read more about the 5 critical drivers of B2B CX success in our blog.)

By leading by example and empowering employees to do their best work—and rewarding them for it—good leaders create an effective, customer-centric business.

5 Sources of Actionable Insight Every B2B Organization Needs to Tap

In a previous blog entry, “Mind Your Q’s: The Two Types of Actionable Information,” we discussed the differences between quantitative and qualitative information. In this entry, we’re going to talk about the top sources of actionable insights that every business-to-business (B2B) organization needs to tap.

Five sources stood out from our recent report done in partnership with CustomerThink. Unsurprisingly, the best sources of actionable insights come from both qualitative and quantitative customer feedback.

Quantitative Customer Feedback

Employees

Sixty-six percent of respondents chose “Employees” as the top source for actionable insights. These results suggest that the ready availability of employee-based insights may trump direct customer feedback in driving change.

Structured Feedback

Traditional, structured surveys are “traditional” for a reason. They are a proven method for gathering actionable customer feedback.

Qualitative Customer Feedback

Survey Comments

Open-ended customer comments are one of the highest rated sources of actionable insights because they provide customers with the freedom to share their brand experience—free of constraints.

Interviews (In-Person, Phone)

Having a true conversation with a customer (you know, the kind where one human converses with another) is a great way to uncover actionable insights. Technology is advancing at a breakneck pace, but nothing beats human interaction.

Customer Emails & Other Non-Survey Text

Sometimes the most actionable customer information doesn’t come from a survey. It comes in the form of an email or some other non-survey text. Through the power of text analytics, valuable insights can be gleaned from practically any customer communication.

Make the Most of Your Customer Feedback

Although the voice of your customers is always valuable, not all sources of feedback are created equal. Tap into these top-rated sources of structured and unstructured customer information and make the most of your feedback.

In a B2B landscape where 9 out of 10 managers rate “fostering long-term relationships” as one of their top three priorities for their CX initiatives, it’s no wonder the best benefits support the long view. Our recent study conducted with CustomerThink, “Gaining a Competitive Edge by Optimizing B2B Customer Experience” highlights the forward-looking benefits brands are seeing the most.

Take a look at the top hits to see what’s really resulting from B2B customer experience efforts:

Improved Customer Satisfaction

The top benefit attributed to CX initiatives was fairly predictable, but it’s still encouraging with 73% of the pool stating they have seen this benefit. For your program, this one should be a staple. If you’re not improving customer satisfaction with your CX program, there’s a good chance your program is broken—unless your customer satisfaction is already maxed out (not likely, but possible).

Improved Employee Engagement

This second-rated benefit is a bit more surprising and equally encouraging. We’ve written before about this oft-overlooked flip side of Voice of Customer (VoC) and CX efforts. If you’re looking for ways to get the most from your CX initiative, we recommend joining 64% of fellow B2B brands in finding ways to put customers’ positive comments into employees’ hands.

Improved Customer Retention

This is quite possibly the clearest, traditional ROI-type benefit that CX initiatives are called upon to deliver. It’s also a byproduct of the benefits mentioned above. Naturally, improved customer satisfaction and employee engagement should lead to improved customer retention, which is where the loyalty and advocacy gains come in. It’s a shame to see even a 12% gap between this benefit and “improved customer satisfaction,” since the two go hand in hand.

Achieved Competitive Differentiation

A hard thing to track scientifically, this big-picture benefit is a very tangible element at play. More than just creating a good experience for your customers, to achieve competitive differentiation, it’s crucial to create the right experience. Creating a unique experience is key to a seamless brand experience, and it looks like 61% of B2B brands are on that path.

Other benefits are out there, some discussed in our report, some still waiting to be discovered and taken mainstream by intrepid practitioners. One thing is clear, though: Those who apply their VoC actively and purposefully will reap business benefits. Even the lowest-ranking benefit in our report was claimed by 35% of businesses and is of great worth: reducing operational costs.

Customer experience (CX) programs take more than good fortune to succeed. In fact, luck usually doesn’t factor in at all. In CustomerThink’s recent report, “Gaining a Competitive Edge by Optimizing B2B Customer Experience,” researchers found that certain CX practices give B2B organizations a significant competitive advantage.

We’ve curated the top five practices based on the differentiation between CX leaders and laggards.* Read on for a description of how these practices have allowed brands to set themselves apart from the competition.

* Rating Scale: 1 = Not at all effective, 3 = Somewhat effective, and 5 = Highly effective

Lead by Example

Unsurprisingly, good leadership is the number one critical driver of customer experience success. Customer experience starts at the top of your organization and trickles down to the location level. Every member of your organization must be committed to providing each customer with a positive and memorable experience.

Identify the “Moments of Truth”

By creating unique identifiers—or “moments of truth”—for each customer, your brand can produce a seamless and consistently great experience across every customer touchpoint. These identifiers enable brands from every industry to sidestep the pains of manually tying together customer interactions with disparate databases.

Design with the Customer in Mind

The wants, needs, and expectations of the customer should influence every decision your brand makes. Smart brands factor the customer into every company equation. Intelligent organizations align company culture with company goals.

Share Customer Feedback

With so much riding on every customer interaction, your brand can’t afford to leave its frontline employees hanging out to dry. Collaboration and data sharing across all departments and levels of management are a necessity for taking effective action on customer insights and creating a consistent experience across every customer touchpoint.

Give Employees the Tools They Need

Data silos are the enemy of CX success. Without actionable customer information, your employees won’t be able to create the effective Voice of the Customer (VoC) program your brand desires. One way brands are focusing less on data collection and analysis and devoting more time and resources to brand strategy is through the adoption of an automated VoC program. In addition to saving your brand valuable time, a VoC program also enables you to act on customer insights in real time and better meet customer expectations.

Set your brand apart from the competition by making these five CX initiatives the cornerstones of your organization’s VoC program.

* CustomerThink asked respondents to rate their organization’s effectiveness with each CX practice. These initiatives were determined through prior research, industry expert interviews, and sponsor input. “Leaders” are defined as those with measurable benefits or a competitive advantage. “Laggards” are defined as everyone else.

Benchmark studies are interesting animals. The primary take-away most brands look for are the ranking to find out where they sit on the competitive battlefield, and especially how they’re faring in the blood feuds against their chief nemeses.

InMoment recently completed its 2015 Retail Benchmark Study, which contained a high-level view of the competitive landscape (those brands that are winning and those that are losing in the customer experience space). We also discovered a few additional findings that take us deeper into the minds and hearts of the buying public in this continually evolving Age of the Customer.

First, a little bit about our methodology: InMoment maintains a healthy panel of North American consumers. For this study, we received feedback from more than 20,000 of them about how they felt about the top 100 retail brands. We weighted the sample to reflect the most current census distributions. We also measured the data against our proprietary InMoment Index of Customer Experience (InCX), a new metric that combines Overall Satisfaction, Likely to Revisit and Likely to Recommend rankings. For this study, we asked consumers about their in-store experiences only.

Following are the top five insights uncovered by our study:

#1: Putting Their Money Where Their Mouths Are

This is the inaugural benchmark study for our new InCX Index, and it synched up nicely with our original hypothesis: Brands that scored in the top box for Overall Satisfaction and Likely to Recommend also scored the highest percentage—72—in Likely to Revisit. On the other hand, the brands that ranked in the bottom tier in OSAT and Likely to Recommend registered just 10 percent on the Likely to Revisit question. To sum it up: If customers are happy enough to recommend you to their friends, you can bet they’ll be back.

#2: Following the Crowd

Brands within the same segments tend to have similar strengths and weaknesses. For example, most Big Box stores excel at having products on hand, but not so great at staff availability. Shoe retailers score high on the quality of their products and services but can’t seem to stay well stocked.

#3: Friendliness Doesn’t Matter, Except When It Does

Friendliness is almost universally accepted as a critical metric for all consumer brands. However, our study found that high marks in Staff Friendliness did not tend to impact customer’s overall satisfaction, their willingness to recommend, or their likelihood to return. On the other hand, retailers that scored low on this metric got pummeled. Why? Because the customer experience bar has risen. Consumers view Friendliness as a hygiene factor. You won’t get extra points for doing it well, but your brand will suffer if you can’t get this very basic element right.

#4: Venus vs. Mars

When it comes to retail, gender—apparently—does matter. For example, men have much stronger opinions about store atmosphere than women, voicing both approval and disapproval much more frequently and strongly than women. When it comes to Big Box stores, women care a lot about products being in stock, while men care most about store layout. As much as we would like data to support our assumptions that there are no differences in the attitudes of male and female consumers, we find common themes within genders—males and females do seem to be from different planets when it comes to what makes them want to refer and revisit.

#5: Value Ain’t What It Used to Be

When we used to ask customers about value, the most common understanding of that word had to do with perceived fairness in what they received for what they paid. Over the years, “value” has come to mean much more than a simple exchange of goods or services and money. Our Retail Benchmark study found that brands with the highest ratings in variety and selection also performed better overall. On the other end of the spectrum, not having staff available erodes value perception.

Wrapping It Up

While brands tease out individual elements of the Customer Experience into discrete parts with names like Staff Interaction, Product in Stock, and Store Atmosphere, consumers do not. Each element—as well as every interaction customers have with retail brands (from the direct market messages we send to the visual impact of a store to the greetings they receive to the ease of paying—is a piece of the experience mosaic.

Depending on which segment you’re in, and which customer demographic you want to please, these pieces may be weighted differently. The key is in understanding your customers, what they expect, what they love, and what you give them that no other brand can. Simply scoring high on the individual parts of the Customer Experience helps, but unless brands are willing to understand that their relationships with consumers are much larger than the sum of their parts, they will remain in the middle of the pack.

The great brands of today and into the future will understand how they’re doing against their direct competitors, but they’ll spend most of their time understanding how and why their customers feel the way they do.

As a “one-two punch” to win competitive battles, the vast majority of B2B companies are pursuing excellence in their solution offerings and the experiences they provide. That second punch of improving the customer experience is a key competitive strategy, but as shown in a recent study with B2B leaders, there is a lot of room for CX programs to more clearly deliver valuable business benefits.

In the same study, 65% of companies with CX initiatives in place said their company “delivers excellent customer experiences,” and 62% reported that their CX program had improved business performance. However, when asked to rate the overall status of their CX initiative, just 24% of respondents reported clear success as either (1) measurable benefits or (2) gaining a competitive edge.

When asked what’s holding the other 76% back, this is what respondents said:

Lack of time, too busy with current departmental jobs » 50%

Half of the business leaders in this study reported that employees simply lacked the time to devote to CX activities because they were busy with their current jobs. This was reflected in numerous interviews, where CX leaders said that unless CX becomes a part of employee jobs, or personnel is hired for this distinct purpose, it’s very difficult to move forward.

Can’t measure ROI due to data/analytics challenges » 40%

The customer experience is notoriously challenging to sum up in simple figures, but areas where it directly ties to the bottom line have been identified. Numerous case studies outline the key pieces of CX-based ROI: Optimizing single transaction amounts in ways that strengthen future revenue streams and increase operational efficiencies. This blog article gives one starting point for building a business case and starting to define value.

CX goals and strategy not defined » 38%

Ultimately, CX program practitioners must define success clearly and uniquely for their own organizations. Simply put, if you don’t define what success looks like and/or can’t measure whether you’ve achieved it, you’re not likely to view your CX program as a winner.

Lack of people with the right skills » 37%

In this blog article’s alter ego, “5 Critical B2B Drivers that Ensure CX Success,” we stop short of showing the 6th critical driver as measured by gap, which is a shame, since it’s actually the #1 overall score for leaders . We’ll share it with you here: Scoring a 4.33 out of 5 on average was the CX practice of “Train employees to deliver great experiences.” If you want people with the right skills, you’ll need to train them.

Lack of cooperation across the organization (silos) » 37%

This suggests that CX leadership must dedicate their energies to uniting the organization to think about the impact of the end-to-end customer experience. 47% of B2B leaders said that a chief customer/experience officer would be beneficial. Other CustomerThink research has found much the same thing: A chief customer officer would facilitate cross-department coordination and get support from the CEO and the Board.