The Corporate Love Meter 2013

The Sad State of Company Customer Love Relationships: They are tired and unexciting relationships that will be easily stolen by a new shining suitor who will be willing to excite and delight the customer.

Table of Contents
Executive Summary ......................................................................................................................... 3 Whats Love Got To Do With It The (Not) Romantic Novel Version ............................................. 4 State of Corporate Love .................................................................................................................. 5 The Characteristics of Corporate Love ............................................................................................ 6 Customer Communication ............................................................................................................... 7 Obstacles to a Successful Love Relationship ................................................................................. 8 Love Plans for 2013 ......................................................................................................................... 9 UK Companies Succumb To Silent, Non-Loyal Existence ............................................................ 10 Executive Optimism Hindered by Non-Executive Pessimism ....................................................... 11 How To Develop Passionate Love with Your Customers - Recommendations ............................ 12 About the Study ............................................................................................................................. 13 About Strativity Group, Inc. ............................................................................................................ 13

Authored by: Lior Arussy Edward Murphy Ildi Varga

2013, Strativity Group: Corporate Love Meter 2013

www.strativity.com info@strativity.com

Executive Summary
As corporations worldwide are seeking to differentiate themselves and gain their customers love, we ventured to understand their readiness for such relationships. Following the insights of 402 executives and non-executives who were surveyed during January 2013, the verdict is clear; companies are not great lovers. The Corporate Love Meter 2013 Study Highlights: 74% of respondents characterize their customer relationship as an open marriage or worse Only 29% are focusing on emotional engagement (love and admiration) with customers 37% admit that they have become comfortable in the relationship 29% claim that money became an issue in their relationship 25% of US respondents admit that they only speak when they fight (complaint management)

Although 52% plan to sweep their customers off their feet in 2013, the likelihood of that happening is quite slim. The study identified serious gaps between executives and nonexecutives perspective and while executives who own the big picture believe that they would do something different to rejuvenate the relationship, the majority of nonexecutives are sticking to business as usual approach. Therefore, the executive vision is less likely to be brought to life. UK corporations have shown a gloomier approach to their customer relationships compared to their US counterparts. Every brand aims to establish an emotional connection with customers. Based on the Corporate Love Meter 2013, companies have a long way to go to fulfill that promise. Combining the current economic challenges and customer empowerment through social media, it is time companies venture to learn how to become true, loyal, loving partners for their customers.

2013, Strativity Group: Corporate Love Meter 2013

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Whats Love Got To Do With It The (Not) Romantic Novel Version

The state of company customer love relationships is quite sad. They admit that they are no longer loyal. Communication was good during the dating phase (sales) but withered afterwards. Today, many communicate only when complaints arise. Like an old married couple who lost the spark, they focus on the rational side of the relationship, like convenience and comfort and have forgotten all about love and emotions. The excitement is no longer there. Many admit that they got there by becoming complacent and getting comfortable and then some money issues came between them and deteriorated the relationship even further. While some have hope they can reignite the relationship in 2013, their execution arm (non-executives) is not as convinced. They would rather stay in the comfort zone and not change things much. Overall, it is a tired, unexciting relationship that will be easily stolen by a new shining suitor who will be willing to excite and delight the customer.

2013, Strativity Group: Corporate Love Meter 2013

www.strativity.com info@strativity.com

State of Corporate Love

While customer relationship strategies are geared to maximize customer wallet share, it seems the majority of the participating companies failed to achieve engaged customer relationships. The majority of companies report non-loyal customer relationships with only 26% reporting a monogamous relationship. The good news is that few, only 5% report their relationship is a one night stand based on price. The majority of companies report that they are in an open relationship where there customers are examining competition reinforcing the need for emotional connections and value propositions. Such relationships, needless to say, tend to be transactional in nature focusing on price and less on long-term value. When customer fidelity is gone, the margins follow suit. Exhibit 1: Nature of Relationship

2013, Strativity Group: Corporate Love Meter 2013

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The Characteristics of Corporate Love

Every marketing executive aspires to have emotionally engaging relationships with his or her customers that transcend price considerations and assure long-term relationships and profitability. The majority of the relationships, as the study indicates, are utilitarian in nature. They are characterized by rational needs such as time/convenience, price, and reliability. Only 29% of the respondents claimed to have an emotional connection with their customers. It seems that executives and non-executives have reduced their customers to rational creatures devoid of any emotional needs. Or, they failed to see any way to create such bonds with their customers. Exhibit 2: Customer Expectations

2013, Strativity Group: Corporate Love Meter 2013

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Customer Communication
Communication is the cornerstone of every relationship. Ask any marriage adviser and they will point to lack of communication as a sign of a relationship in crisis. The same rule is equally applicable in commercial relationships. Most respondents declared that they communicate privately when convenient to sales, expiration or when customers complain. Only 23% surprise each other and try to create an exciting relationship that is always evolving and growing. This attitude demonstrates little to no real investment on the part of companies. No wonder customers keep their options open and refuse to commit to a monogamous relationship. It is important to note that, among US respondents, 25% declared that they only communicate when they fight (e.g., customer complaints) which is the wrong time to establish communication. Exhibit 3: Communication with Customers

2013, Strativity Group: Corporate Love Meter 2013

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Obstacles to a Successful Love Relationship

The greatest obstacles in customer relationships are getting comfortable and money issues (not seeing the value). It is complacency all over again when each side takes the other side for granted and fails to invest in the relationship. Companies on their part keep on seeking new customers while investing little if at all in existing customers. And, in return, customers keep on checking the competition and refuse to commit fully to a single relationship. The failure to see value Money becomes an issue usually stems from lack of rejuvenating the relationship. What used to be exciting is now part of the norm. In the absence of new, exciting innovations, the relationship becomes predictable and eventually boring. Twenty percent say the company and the customer want different things it is time for counseling to realign each others desires. Exhibit 4: Obstacles

2013, Strativity Group: Corporate Love Meter 2013

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Love Plans for 2013

Most respondents want to reignite the love, with 52% claiming they will sweep their customers off their feet by providing exceptional customer experiences and 51% planning to try something new in the form of new products. This is wonderful news as long as they will be transformed from plans to realities. Exhibit 5: Plan For 2013

2013, Strativity Group: Corporate Love Meter 2013

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UK Companies Succumb To Silent, Non-Loyal Existence

In times when UK-based companies must reinvent themselves to address the economic challenges, we find their corporate love meter to be worse than among their US counterparts. The UK Corporate Love Meter 2013 indicates gloomy relationships mired by more complacency and less optimism about the future. The Corporate Love Meter 2013 indicates that UK companies are: Significantly less likely than US to believe they are in a monogamous relationship Three times more likely than US respondents to believe there are in an on-again off-again (indecisive) relationship. Three times less likely to only communicate when there is an issue Significantly less likely to plan to sweep customers of their feet, try something new and shower with gifts

Exhibit 6: Nature of Relationship

Monogamous (They give 100% of their business to us) On-again off-again (Indecisive) We only talk when we fight (Complaint management) Sweep them off their feet (Provide exceptional service) Try something new (Innovation New products) Shower them with gifts to keep them loyal (Rewards Loyalty Programs)

US
32% 5% 25% 56% 54% 20%

UK
22% 15% 8% 43% 44% 7%

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Executive Optimism Hindered by Non-Executive Pessimism

If executives are the heart of the organization, non-executives are the hands and execution arms. Executives demonstrate a big picture view with more optimistic future and investment. Non-executives, on the other hand, are less optimistic, and, therefore, less likely to execute. Exhibit 7.1: Customer Expectations - Comparison

Only 48% of non-executives are planning to sweep customers off their feet through exceptional customer experiences vs. 66% of executives. For executives to develop and deliver better love relationships, they need to get their non-executives engaged and committed. But it is not just about communication and commitment; executives need to provide a clear roadmap for execution. Currently, as the Corporate Love Meter 2013 study indicates, non-executives are running on their own convictions and are disconnected from their executives view and plans. Exhibit 7.2: Plans for 2013 Executive vs. Non-Executive Perspective

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How To Develop Passionate Love with Your Customers Recommendations

Take an honest look in the mirror: Measure the emotional commitment you have to your customers and how they view your commitment. One of the biggest obstacles companies face is thinking they are already doing everything they can to provide the best experience possible. In order to make change, you need to understand where you really stand. Time to fall in love again: Reconnecting with your customers cannot happen with a haphazard plans or a siloed companies. A detailed companywide strategy needs to be created and communicated it requires that all employees (customer facing and non-customerfacing) to be onboard. Many companies will need to go back to basics by learning whom their customers are and understanding their needs and wants. Engage in emotional not only rational love: Companies are well trained on monitoring the rational market drivers such as price and product innovation while ignoring the highly influential emotional experiences. Understanding and appropriately responding to the customers emotional needs is a prerequisite for customer engagement. Get your non-executives on board: Internal communication and employee education are critical. Far too often excellent strategies are created but fail either because they are not communicated throughout the company or employees are not provided the tools to succeed. Non-executives are the link between upper management and the face of the companys front line employees. Start communicating more often not only when you need something or when customers contact you because of an issue: All communications are an opportunity to make customers feel important and special. By focusing solely on customer issues when they arise, you will miss opportunities to demonstrate that you know and understand your customers. Tell them what you are doing to make their lives easier, how youre helping their community or send them a birthday wish just to show them you care. Anticipate their needs and find unexpected ways to communicate with them to keep the romance alive. Surprise them, sweep them off their feet: Having quality products, innovative products and competitive pricing are not enough for todays customers. Companies must define the experience they want to be known for and employees must be provided the tools to deliver the target experience.
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About the Study

Strativity Group conducted a global online survey among 402 executives and nonexecutives in January 2013. Sampling frame consistent of Strativity Groups database on customer experience professionals along with a purchased sample of United States and United Kingdom adults, 25 years of age or older that were employed full time.

Exhibit 8: Number of Respondents

Region US UK Other Position Executive Non-Executives Size of Company 5,000+ employees 500-4999 employees Less than 500 employee 203 154 42 80 332 94 123 185

About Strativity Group, Inc.

Strativity Group is a global customer experience transformation firm, which helps clients create delightful customer experiences and execute profitable customer strategies. Strativity measures success by a single method: execution. We partner with our clients across the whole journey from the initial diagnostics through innovation, organizational change and all the way to sustainability programs and training the last employee. Strativity works with large and emerging businesses around the world, including the United States, Canada, Australia, Turkey, UK and Norway. Strativity clients include FedEx, Mercedes-Benz, Capital One, Royal Caribbean Cruise Lines, Royal Mail, Sage and Honeywell. Its work has impacted 200 million customers and 350,000 employees in 21 countries.

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