Posts Tagged ‘Customer engagement’

According to a recent IDC Global Retail Insights survey, 75% of retailers and 58% of consumer products manufacturers rank customer-centricity among top 3 keys to success. This finding aligns perfectly with our experience that the only way big ideas turn into big results is when those ideas are based in a deep understanding of customer needs and are executed by delivering a winning customer experience. There are some breakthroughs in approaches to listening to customers and tapping into their innovative ideas that the most innovative companies are applying today. Below are some simple descriptions and first implementation steps you can take to moving down this path.

1) Listen to customers, but listen closer to non-customers.

This is similar to to the idea of keeping your friends close and your enemies closer. Sometimes you learn more by listening to those who don’t see things your way than those who already agree. This tip is one very commonly overlooked when developing strategies for growth. Many companies listen to their sales force to understand strategic customer needs. This is one perspective, but the conversations tend to be short-term focused, are clouded by the vendor/customer relationship dynamic, and represent people who already see the world the way you do.

With the Wii, Nintendo converted non-customers of gaming systems by listening and creating a solution that moms would love to have in their homes. Southwest airlines converted non-customers of air travel by creating a price point and casual travel feel that matched bus travel, but was much faster. Netbooks are converting non-customers of expensive laptops into mobile computing users.

IMPLEMENTATION: To get started listening to non-customers, set up a specific research effort to call on customers who have left your business, sales leads which were lost, and targeting potential customers who have never been reached at all. Test if there is a lack of awareness of your company, a disagreement about the value proposition, or an unmet set of needs that you could begin to serve. This is where many breakthrough strategies originate.

2) Engage customers in open and direct innovation online

The most innovative companies are turning to a new set of online solutions to engage customers directly and openly into the innovation process. Cisco has been one of the most forward and successful, perhaps finding it’s next $1 billion product category through an online innovation campaign. They leveraged an online tool set from Bright Idea Software (Dissero’s strategic partner) to launch an open innovation contest that allowed anyone from around the world to suggest ideas, have them voted on by others, and collaborate and shape ideas together. The new solutions provide ways to open up and capture innovative ideas, engage with customers directly, and provide tools that filter the ideas so you can easily harvest only the best and most popular ideas for consideration internally. This allows you to truly tap the wisdom of the crowd, but not be overwhelmed with too many random and tactical ideas…like the old suggestion boxes that we’ve all come to detest. This is new technology, with new capabilities and a real breakthrough in business strategy.

Watch the video on this page to hear more about how Cisco did this and what the program accomplished.  http://www.cisco.com/web/solutions/iprize/index.html

Lego toys launched a site to let users design and purchase their own kits, which other people can purchase as well.  http://factory.lego.com/

Starbucks created the My Starbucks Idea site to gather direct customer input for new ideas of all types. These are voted on by others so the best ideas can rise to the surface.  http://mystarbucksidea.force.com/

IMPLEMENTATION: If you are interested in creating your own customer innovation site there are many considerations on technology platform, scope of ideas to request, and internal innovation management process to harvest the benefits. Dissero has partnered with Bright Idea Software to provide a full solution to quickly and easily get you in touch with your customers and begin tapping their innovative ideas, creating new revenue streams and great loyalty. The good news is that almost immediately and for the cost of a typical “ideation” brainstorming workshop or offsite with your management team, you can put in place a pilot program to engage customers, employees, and partners in searching for innovations. This will become as pervasive as having customer panels or user groups and much more extensive and powerful.

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