Measure

El Ascenso Empresarial A Largo Plazo

Crecimiento Empresarial – primero un resumen de los conceptos básicos.

El departamento de marketing y ventas son los responsables de la adquisición de clientes, pero no la experiencia del cliente. La responsabilidad es de persuadir a los clientes potenciales para comprar productos y / o servicios. Aquí es donde la mayoría de las empresas se centran en el crecimiento de su negocio. Es un error.

El Costo de Adquisición es crítico. Añada todos los costos de adquisición de clientes. A continuación, dividir por el número de clientes adquiridos en ese período. Por ejemplo, si ABC S.A. gastó $ 100,000 en marketing en un año y adquirió 1,000 clientes su Costo de Adquisición es $ 100.

Margen Bruto es el porcentaje de beneficio que queda después de pagar los costos. Si el margen bruto es de 40% y la venta promedio de ABC S.A. es de $500, su beneficio bruto es de $200,000. Les cuesta $100,000 para generar $200,000 en nuevas ventas.

Cada empresario responsable y ejecutivo se preocupa por Costo de Adquisición y Margen Bruto.

Peter F. Drucker fue considerado el mayor filósofo de la administración (también conocida como management) del siglo XX. Fue autor de más de 35 libros, y sus ideas fueron decisivas en la creación de la Corporación Moderna. El escribió: “El propósito del negocio es crear y mantener un cliente“.

Crear un nuevo cliente es fundamental. Es sexy.

Y mantener un cliente también es fundamental. No es sexy.

La retención de clientes, el mantenimiento y servicio a los clientes, siempre reciben menos atención. Las acciones que toman las empresas para reducir el número de defecciones de los clientes no se celebran.

El valor de la vida del cliente, es abreviado a menudo como LTV, es Life Time Value en inglés. LTV predice los beneficios de la futura relación con un cliente. La retención del cliente afecta directamente a los valores de por vida. Si la ABC S.A. gasta $100 para atraer a un nuevo cliente, obtiene un beneficio bruto de $100 en la primera transacción. Si ganan $100 cada mes durante cinco años ganan $6,000. Cuanto más larga sea la relación, mejor será el retorno de la inversión (es abreviado a menudo como ROI).

El patrimonio del cliente es el total de los valores de por vida de todos sus clientes actuales y futuros. Es la suma total de todo el valor que jamás se dará cuenta de los clientes. Los clientes crean todo el valor. El patrimonio de los clientes es el mismo que el valor de “Negocio En Marcha” de su negocio.

Valor de un Negocio = Patrimonio del Cliente + (Activos – Pasivos)

Compradores Transaccionales Versus Compradores Relacionales

Cada persona tiene un modo transaccional y un modo relacional de hacer compras. Los compradores transaccionales son aquellos cuyo mayor temor es pagar demasiado por algo. Les encanta la experiencia de compra. Van a comprar muchas empresas y sitios en busca de gangas.

No son leales a ninguna marca o negocio, buscan sólo el mejor precio.

El miedo más grande de los compradores relacionales es comprar la cosa incorrecta. Ellos ven las compras como parte del costo de la compra.

Buscan ayuda de expertos y pagan una prima por la guía de confianza. Confían en las relaciones, con marcas y personas, para ayudarles a tomar decisiones.

Cada persona tiene un modo transaccional y un modo relacional de hacer compras. Así que no se sorprenda cuando se vea en ambas descripciones. Usted es extremadamente transaccional en ciertas categorías de productos y servicios. Usted también es totalmente relacional en otros. En cualquier momento dado y en cualquier categoría dada, aproximadamente la mitad de todos los compradores estarán en modo transaccional. La otra mitad estará en modo relacional.

Los compradores en modo transaccional irán de compras por todas partes. Les encanta negociar. Las empresas a menudo concluyen, equivocadamente, que la mayoría de los compradores están en modo transaccional, porque son mucho más visibles y vocales. Pero en verdad, más compras son realizadas en silencio por los clientes en el modo relacional.

Esta equivocación es una de la las fallas que más dañan al emprendedor.

El Costo De Adquisición Del Cliente Depende De La Retención Del Cliente

Las empresas tienen un 60- 70% de probabilidad de vender a un cliente existente. La probabilidad de vender a un nuevo cliente potencial es sólo de 5-20%. – de acuerdo al libro Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance,,

Tenga en cuenta los datos públicos de Amazon. Las visitas de los clientes de Amazon Prime (ellos que pagan una suscripción anual por el privilegio de ser miembros  se convierten en ventas el 74% del tiempo. Gastan 300-500% más que los miembros no pri- meros. Aproximadamente el 60% de los hogares norteamericanos son miembros de Prime de Amazon.

¿Puede ver el impacto que el enfoque en la retención puede tener sobre los costos de adquisición?

Enfoque En La Experiencia Del Cliente Para El Crecimiento Sostenible

El estudio de Rockefeller Corporation encontró que el 68% de los clientes se van porque creen que las empresas no se preocupan por ellos.

Bain & Company encuestó a 362 empresas. Encontraron que el 80% cree que entregan una “experiencia superior” a los clientes. Cuando le preguntaron a los clientes, informan que sólo el 8% están realmente entregando. Bain & Co. llamo a este resultado la “brecha de entrega”. ¡Yo lo llamamos trágico!

Ahora fíjese en este dato bien conocido: que los líderes de la experiencia del cliente superan las valoraciones del mercado de acciones de los rezagados de la experiencia del cliente:

Cuando se trata de crecimiento, la experiencia del cliente claramente importa!

Ahora, yo quiero ser generosos y darles a los 80% de los ejecutivos el beneficio de la duda. Ellos realmente creen que sus empresas están centradas en el cliente Nadie discute cuando explicamos los cuatro pilares del crecimiento de Amazon.

Estos son los cuatro principios unificadores de Amazon:

UNO. Centricidad en el cliente.
DOS. Optimización Constante.
TRES. Cultura de Innovación.
CUATRO. Agilidad Corporativa.

¿Qué es lo que impide en el camino? Piense en lo siguiente como los cuatro principios disunificantes.

UNO. Un enfoque organizacional: los impide centrarse en el cliente. Los equipos internos se centran en el “rendimiento” de su propio equipo, no en la realidad del cliente

DOS. La aversión al riesgo: mantener el status quo, los impide de la optimización continua. La gente no percibe su proceso como roto y no ven el beneficio de optimización.

TRES. Un enfoque en los competidores – observan a los líderes de su industria – es lo que les impide tener una cultura de innovación. Las empresas se ven en relación con los competidores, pero no en relación con las lagunas en las expectativas de los clientes

CUATRO. La imputabilidad errónea -la necesidad de culpar a alguien- los mantiene fuera de la agilidad corporativa. Los equipos internos cumplen o exceden sus puntos de referencia internos, pero esos datos no reflejan la realidad del cliente

Las Intenciones Son Importantes, Pero Las Acciones Hablan Más Que Las Palabras

Nos juzgamos por nuestras intenciones, pero los clientes nos juzgan por nuestras acciones. Juzgarte por sus intenciones no es un peligro entre amigos. Un amigo conoce su corazón. Pero es un peligro muy real en los negocios. ¿Qué sucede cuando un posible cliente hace contacto con su empresa? ¿Conoce a su mejor empleado en el mejor día de ese empleado? Por supuesto no. Reúnen a un empleado promedio en promedio

O peor aún, se encuentran con un empleado por debajo del promedio en un día por debajo del promedio. Y entonces usted está confundido por esas críticas negativas.

Triste, ¿no? Sus intenciones, motivaciones y compromisos personales nunca llegaron a la fiesta.

En Resumen: Usted Tiene Un Negocio En Crecimiento. Pero Podría Crecer Más Rápidamente.

Usted necesita conocer mejor a sus clientes. Reconocer que los clientes tienen sus expectativas establecidas por las empresas ni siquiera en su categoría de negocio.

Como líder, hay muchas demandas en usted. Es difícil priorizar y mantener un enfoque a largo plazo cuando lo urgente interrumpe lo importante.

En lugar de centrarse sólo en el crecimiento de las ventas, los competidores, la tecnología o todos los cambios en su mercado, nos gustaría ayudarle a centrarse en las cosas que no cambiarán. Usted puede construir un crecimiento sostenible y saludable si se centra en las prioridades de sus clientes. Por favor creame. Si usted entrega una gran experiencia, mantiene un margen razonable, y permanece enfocado en sus prioridades entonces el crecimiento es inevitable.

En mis próximos artículos voy a hacerle un seguimiento de cómo uno se enfoca en el cliente y los fundamentales que los impacta.

Mientras tanto, por favor, lea Triunfar como Amazon: Hasta un puesto de limonada puede lograrlo. Hay muchos ejemplos de los cuales puede aprender. También siéntase libre de contactarnos si tiene alguna pregunta.

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Scaling Growth. A Gift To An Entrepreneur

 
I met you last week, at a conference. I decided to write this for you. You’re not alone. It’s not only you who will benefit. My gift to you is a top-to-bottom analysis of how growth is misunderstood. It’s not a generic gift. Most of us can tell the difference between a gift that meets an obligation and a carefully thought out gift that was meant especially for you.
 
Business Growth 101
Marketing and sales are responsible for customer acquisition but not customer experience. They persuade prospective customers to buy products and/or services. This is where most companies focus on growing their business. It’s a mistake.
 
The Cost of Acquisition (CAC) is critical. Add all the costs spent on acquiring customers. Then divide by the number of customers acquired in that period. For example, if ABC Company spent $100,000 on marketing in a year and acquired 1,000 customers their CAC is $100.
 
Gross Margin is the percentage of profit that remains after paying costs. If gross margin is 40% and ABC Company’s average sale is $500 their gross profit is $200,000. It costs them $100,000 to generate $200,000 in new sales.
 
Every responsible business owner and executive worries about CAC and Gross Margin.
 
Peter F. Drucker wrote, “The purpose of business is to create and keep a customer.”
 
Creating a new customer is fundamental. It’s sexy.
 
And keeping a customer is also fundamental. It’s not sexy.
 
Customer retention, keeping a customer, gets less attention. The actions companies take to reduce the number of customer defections aren’t celebrated.
 
Customer lifetime value (LTV) predicts the profits of the future relationship with a customer. Customer retention directly affects lifetime values. If ABC Company spends $100 to attract a new customer it makes a $100 in gross profit on the first transaction. If they make $100 every month for five years they make $6,000. The longer the relationship continues the better the Return On Investment (ROI).
 
Customer equity is the total of lifetime values of all your current and future customers. It’s the sum total of all the value you’ll ever realize from customers. Customers create all value. Customer Equity is the same as the “going concern” value of your business.
Value of a Business = Customer Equity + (Assets – Liabilities)
 
Transactional vs. Relational Buyers
 
Every person has a transactional mode and a relational mode of shopping. Transactional buyers are those whose greatest fear is paying too much for something. They love the shopping experience. They will shop many companies and sites in search of bargains.
 
They aren’t loyal to any brand or business, they seek only the best price.
 
Relational Buyers’ greatest fear is buying the wrong thing. They see shopping as part of the cost of the purchase.
 
They seek out expert help and pay a premium for trusted guidance. They rely on relationships, with brands and people, to help them make choices.
 
Every person has a transactional mode and a relational mode of shopping. So don’t be surprised when you see yourself in both descriptions. You are extremely transactional in certain product and service categories. You’re also wholly relational in others. At any given time and in any given category, about one-half of all shoppers will be in transactional mode. The other half will be in relational mode.
 
Shoppers in transactional mode will shop everywhere. They love to negotiate. Businesses often conclude that most shoppers are in transactional mode, because they are so much more visible and vocal. But in truth, more purchases are quietly made by customers in relational mode.
 
Customer Acquisition Cost is dependent on Customer Retention
 
Businesses have a 60 – 70% chance of selling to an existing customer. The probability of selling to a new prospective customer is only 5% to 20%. – Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance,
 
Consider that Amazon Prime customer visits convert to sales 74% of the time. They spend 3-5x more than non-Prime members. Approximately 60% of North American households are Amazon Prime members.
 
Can you see the impact that focusing on retention can have on acquisition costs?
 
Focus On Customer Experience For Sustainable Growth
 
The Rockefeller Corporation study found that 68% of customers leave because they believe that companies don’t care about them.
Bain & Company surveyed 362 firms. They found that 80% believe that they deliver a “superior experience” to customers. When they asked customers, they report that only 8% are really delivering.Bain & Co. calls that the “delivery gap”. We call that tragic!
 
 Now take a look at this:
 
When it comes to growth, customer experience clearly matters!
 
Now, let’s be generous and give that 80% of executives the benefit of the doubt. They genuinely believe that their companies are customer-centric Nobody ever argues when we explain the Four Pillars Of Amazon’s Growth.
These are Amazon’s four unifying principles.:
1. Customer Centricity,
2. Continuous Optimization,
3. a Culture of Innovation and
4. Corporate Agility.

What Gets In The Way? Think of the following as the four disunifying principles.

  1. An Organizational Focus–  keeps them from Customer Centricity. Internal teams are focused on their own team’s “performance”, not the customer’s reality
  2. Risk aversion—maintaining the Status Quo— keeps them from Continuous Optimization. People don’t  perceive their process as broken
  3. A Competitor Focus—watching the industry leaders—keeps them from having a Culture of Innovation. Companies see themselves relative to competitors but not relative to the gaps in customer expectations
  4. Misplaced Accountability—the need to place blame—keeps them from Corporate Agility. Internal teams meet or exceed their internal benchmarks but that data doesn’t reflect the customer’s’ reality
Intentions Matter, But Actions Speak Louder Than Words
We judge ourselves by our intentions, but customers judge us by our actions. Judging yourself by your intentions isn’t a danger among friends. A friend knows your heart. But it’s a very real danger in business. What happens when a prospective customer makes contact with your company? Do they meet your best employee on that employee’s best day? Of course not. They meet an average employee on an average
Or worse, they meet a below-average employee on a below-average day. And then you are confused by those negative reviews.
 
Sad, isn’t it? Your intentions and motivations and personal commitments never quite made it to the party.

You have a growing business. But it could grow more quickly.

You need to know your customers better. Recognize that customers have their expectations set by companies not even in your category.

As a leader, there are a lot of demands on you. It’s hard to prioritize and maintain a long-term focus when the urgent disrupts the important.

Instead of focusing on only on growing sales,  competitors, technology or all the changes in your marketplace we’d like to help you focus on the things that won’t change. You can build healthy sustainable growth if you focus on your customers’ priorities. Please believe me. If you deliver a great experience, maintain a reasonable margin, stay focused on your priorities then growth is inevitable.

Please read Be Like Amazon: Even A Lemonade Stand Can Do It. There are many examples you can learn from.  Also feel free to reach out if you have any questions,

 
 
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Are Your KPI’s False Idols? #CX #CRO #Measure

This is a post about false accountability and the worship of quantitative idols. Companies looking to be innovative face a dilemma. Policies and procedures that make them efficient at execution also stifle innovation.

On day one a startup is flexible until it discovers its business model and establishes a goal.  On day two a mature company organizes around that goal and measures the efforts to reach the goal. Then they strive to find the most efficient ways to reach that goal. They create processes to make execution repeatable and scalable by employees.

These KPIs and processes, which make companies efficient, also impede agility.

In Jeff Bezos’ 2016 Letter To Shareholders he explains why he worries about day two.

“Jeff, what does Day 2 look like?”

That’s a question I just got at our most recent all-hands meeting. I’ve been reminding people that it’s Day 1 for a couple of decades. I work in an Amazon building named Day 1, and when I moved buildings, I took the name with me. I spend time thinking about this topic.

“Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

To be sure, this kind of decline would happen in extreme slow motion. An established company might harvest Day 2 for decades, but the final result would still come.

I’m interested in the question, how do you fend off Day 2? What are the techniques and tactics? How do you keep the vitality of Day 1, even inside a large organization?

Such a question can’t have a simple answer. There will be many elements, multiple paths, and many traps. I don’t know the whole answer, but I may know bits of it. Here’s a starter pack of essentials for Day 1 defense: customer obsession, a skeptical view of proxies, the eager adoption of external trends, and high-velocity decision making.

Jeff Bezos is once again describing the Four Pillars of Amazon’s Success:

  1. Customer Centricity.
  2. Continuous Optimization.
  3. Culture of Innovation.
  4. Corporate Agility.

Every business (B2C, B2B and others) can make Amazon’s Four Pillars work for them. Leaders can use Amazon’s Four Pillars to refocus on what never changes. Amazon’s Four Pillars help you look beyond data about your company’s performance. They help you see the data that reveals your customer’s reality.

Examine whether what you measure is what you most value

In chapter one of Be Like Amazon: Even a Lemonade Stand Can Do It, we discuss the four unifying principles of Kodak’s George Eastman.  

George Eastman organized the Eastman Dry Plate Company in 1881 under four unifying principles:

  1. Keep the price of the product low so the customer will and more uses for it.
  2. Always sell by demonstration.
  3. Be the first to embrace new technologies.
  4. Listen to what the customer tells you.

In 1976, Eastman Kodak sold 90% of all the camera film and 85% of all the cameras in America. By 1988 they had more than 145,000 employees worldwide, and in 1996 they had 16 billion dollars in annual revenue and a valuation of $31 billion. In 1975 Kodak’s Steve Sasson invented the digital camera, they patented it. In 2012 Kodak went broke because they decided they were in the camera film business.  That was the result of abandoning their unifying principles in favor of the false accountability of their KPI’s.

What if Kodak had pioneered digital photography? What about they listened to their customers? What if they decided that instead of how many units of film they sold their measure of success would be how many magical moments customers captured?

I certainly hope you are measuring and optimizing the right things.

 

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Measure Customer Experience Design And Make It Accountable #CRO #CX #UX

journey

Buyer Legends are measurable and accountable by design. That is one of the important elements that distinguish Buyer Legends from any other business-storytelling and customer experience methodologies. A Buyer Legend is not a feel good story; it’s about business, and if your story doesn’t improve on your business goals, then what is the point?

Your Buyer Legend should describe in significant detail what actions you expect your customer to take, many of which are measurable. Pages viewed, transactions, subscriptions, store visits, phone calls, conversions to lead, and even social media engagement are all measurable.

Not All Customer Actions Are Created Equal

But they can all be useful to your optimization. In 2011, Bryan Eisenberg wrote:

If you are in retail, you want them to purchase a product.

If you are in lead generation, you want them to become a lead.

Are there no other actions that are valuable and contribute to the bottom line?

In retail, even if they don’t convert now, would it at least be more valuable to know if they added an item to their wish list, or subscribed to your newsletter, or looked up your retail store hours, or added items to their cart versus just bouncing off the site right away? What are you doing to turn that one-time customer into a repeat customer? Do they only need one product you sell or might they need different ones over the course of time?

In lead generation, if they don’t give you all their information and request to be contacted by sales, is it valuable to have them sign up for a whitepaper, or a demo, or your newsletter? Is it better to download specification sheets, engage in calculators, or print/forward pages rather than just bouncing off the website? These are all steps that move people through their buying process.

These are just some of your macro actions. What happens when someone comes from one of your ads and gets to a landing page? Sometimes the action is one of those listed above, but what if that page is only meant to help your visitors to choose the right product or service and they still need to actually click on the right one for them? What do you do to help them take that action and not bounce away? These are the micro actions that need to happen from step to step in the potential customer’s journey.

All of these are actions we need to optimize. You can calculate a conversion rate for each one of these macro and micro actions, and you should.

I wrote in a recent Buyer Legend Recipe Series post about persuasive momentum that whether or not you are aware, your business has created a de facto persuasive system. Buyer Legends is a process for creating a persuasive system that is intentional, measurable, and optimizable. That is why it is important for you to track both the micro and macro actions so that you are not just optimizing the final conversion, but all the steps in between where you can spot breakdowns in the system and fix them. Buyer Legends, done right, allow you to measure and optimize persuasive momentum.

While it is much easier to track and analyze online behavior, technology is making it possible to track and analyze in-store traffic as well as in-store behavior.

Mobile is growing so fast that many companies are seeing more traffic from tablets and smartphones than from desktops and laptops, and this trend is only growing. Google recently announced in that mobile near-me searches are up 3400% in the last three years.

A Legend for Your Customer’s Buying Journey

Your Buyer Legend is a map of your customer’s journey, and to read the map properly you need to have a legend. Here is the legend for your Buyer Legend from our book, Buyer Legends: The Executive Storyteller’s Guide:

Your hero is on a journey. You tell his or her story. Every successful customer journey needs a map and every map needs a legend. The journey’s legend is the key to navigating the map. See below the components of a legend.

Journey Legend:

Hero – This is the protagonist of your legend. All legends are told from the point of view of the hero.

Catalyst – This is the point at which the customer first identifies your company, product and/or service as a potential solution. It can be word-of-mouth, on- or off-line advertising, or PR. A catalyst can be a measurable step in the customer’s path, but often cannot be attributed to just one thing.

First Measurable Step – Here is where your customer enters the measurable portion of the journey. It can be finding a landing page, home page, chat session, phone call, or brick and mortar visit.

Road signs – Some points in the customer’s path that are critical to their completion of the journey. Road signs include information that, if not available, will most likely prevent the customer from completing the journey and/or keep the marketer from persuading the customer to make a decision necessary to continue the journey.

Detours – These are pathways that marketers must construct as solutions to forks in the road. Customers don’t always go straight down a smooth sales path. They often go off the path in search of answers to concerns, alternative solutions, or just plain curiosity. When this happens, the potential exists for that customer to never arrive at the desired destination. They took that “left turn at Albuquerque” and never got where they wanted to be. Detours meet the customer along those wrong turns/paths and guide them back onto the proper path so they can continue the journey to their destination.

Measurable step – Any step along the way that can be measured. Typically, this involves analytics, but it is any step a customer can take that leaves behind evidence of that step. Measurable steps give insight as to where customers are in their journey and how they can be optimized.

Fork in the road – These are decision points in the persona’s path where a specific need or curiosity can take them off the ideal path in search of answers to a specific need, curiosity, question, or concern. Because the marketer should never force a customer down a path, awareness of where a customer could go “off-track” becomes crucial, so that the marketer can plan for these forks in the road and construct detours that will take them from an undesirable direction back onto the desired path.

Destination – This is the final measurable step where the customer converts into a lead/sale, completes an order, a form, or a task.

In the three examples that you’ll find at the end of this post, you’ll notice the legends  are in parentheses.

 

Understanding the Value of Quantitative vs. Qualitative

We recently worked with a large data-driven technology company that had no shortage of quantitative data. In fact, they sent us gigabytes of it. We noticed that for every ten quantitative reports there was only one qualitative report. It was obvious to our team that their bias for hard data left them with a huge blind-spot. Quantitative data tell you WHAT your customers are doing, and qualitative data can provide insight into WHY your customers are doing what they do. They pointed out a problematic metric to us and asked us our opinion. A significant portion of new customers were using their software service once maybe twice and then falling out. We began a simple qualitative research exercise, we visited their sales call center and listened in on a several dozen calls. Soon the quantitative data began to make sense. We found that this company had such a strong brand that most people simply trusted the brand, so they signed up only to find that after using the software it wasn’t exactly the experience they expected. We couldn’t fix the software, so we solved the problem by helping them provide customers with the correct expectations in advance.

As human beings, our actions can be measured. This creates quantitative data. But the thoughts, emotions, and decision-making styles we use are subjective. They do have some degree of predictability, and this is qualitative. A business needs both types of research to see the whole picture. So, do not discount the value of focus groups, surveys, customer interviews, and even customer comments and reviews as you begin to craft your Buyer Legend.

Amazon is a great example of a company that uses both qualitative and quantitative. Never accused of being a warm and fuzzy guy, Jeff Bezos set Amazon on a course to be “the most customer-centric company on earth”. That involves not just knowing what customers are doing, but trying to understand why. Bryan Eisenberg wrote about Amazon’s Performance Secrets:

When Bezos decided to launch Amazon.com in 1994, he realized that the unique advantage of the Internet was the ability to programmatically learn more and more about your customer and personalize their experience. He realized that they could leverage every bit of data correlated with their customers’ personal unique identifiers (their email addresses) from each and every interaction. Amazon could learn from every sale, but also from every click, review, and mouse movement.

I suggest you read the entire article.

Thank you for reading this last post recipe series. Our goal was to supply you with more in-depth information that you can lean on as you proceed with implementing Buyer Legends. If you have questions that arise as you work on your Buyer Legends, please send them our way and we’ll try to answer them.

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P.S. This is the sixth and last in a series of six Buyer Legends Recipe posts, please sign up to our newsletter for updates.

Three Examples of How To Measure Buyer Legends

Example #1 – an e-commerce Buyer Legend:

Marcy (hero) is frustrated that her microwave has broken (catalyst), so she moved it up on her to-do list to research and order a replacement today. She visits a handful of consumer sites, reads reviews, chooses the features she wants, lists a few possible models, and then measures the space in her kitchen to ensure that she doesn’t order a microwave that is too big or small. With measurements in hand, she is able to knock a handful of models off her list, leaving her with three choices. She goes to BestBuy.com, Sears.com, and Amazon.com to see more pictures, read more reviews, and compare prices. She notices that Best Buy has a price match guarantee but she will have to jump through too many hoops. Marcy is resourceful and frugal, and believes she can find the absolute lowest price for the microwave she wants. She does several Google searches, and visits a few sites but she is not impressed. The sites look unprofessional and the prices are all about the same.

Then, Marcy stumbles upon a website for Bob’s Appliance Outlet (measurable step). A large banner on the homepage announces to Marcy that most items qualify for free shipping (road sign), but even more impressive is a smaller banner in the top right corner of the page that says, “Want the lowest possible price? Make a price offer on any item in our store, and we will do our best to match it” (road sign). Marcy clicks on it (fork in the road), reads the next page and finds that the price offer feature is simple and straightforward with no fine print. She still wants to learn about a bit more about the company and goes to the About Us page (detour). After she reads this page she feels confident that this is a credible company with a credible offer. She then does a site search for the microwave she is looking for and finds it (measurable step). She reads through the product description and reviews for due diligence. She is pleased that her microwave qualifies for free shipping. Elated at the possibility of saving more than she expected, she enters an offer $100 dollars under the lowest price she found elsewhere and hits the Buy button (measurable step). A page comes back and tells her that her offer was too low but encourages her to try again. She didn’t really think they would accept another offer, but felt it was worth a try. She enters a price that is $50 under her previously lowest price, and this time the offer is accepted (destination). Marcy is presented with a page that congratulates her and tells her that her item will likely ship today and asks her how she would like to be notified about shipping. She chooses text message over email or automated phone call. Marcy goes to the kitchen satisfied, and pours herself a cup of tea, She crosses Find New Microwave off her to-do list, and begins the next item on the list.

Example #2 B2B lead generation Buyer Legend:

Mark (hero) is a savvy entrepreneur who is looking to expand by opening up a 4th location in the greater Phoenix area (catalyst). Mark used some pricey consultants in the past with mixed results. Someone told him about Idealspot.com so he went to the homepage (first measurable step), and when he saw the word algorithm, he immediately lost confidence. Mark simply believed that an automated computer process could not possibly find him a great location, so he leaves and forgets about Idealspot.com (detour).

A week later Mark is on LinkedIn and sees a ‘re-targeted’ ad with the headline, “How Science and Big Data Are Changing the Way Businesses Choose New Locations”. Not recognizing this as a post from the Idealspot.com blog, he is intrigued and clicks through (measurable step). He reads about how big data is able to spot success patterns. It explains that most location analyses hit the wall when people become involved in spending time and money collecting piles of data, but then have no way to relate it to the success or failure of their business. This is where big data and learning algorithms inject science into the process by mining through the data to pick out those patterns of success or failure and the key factors driving those patterns. The algorithms act without human bias; they start from scratch and come up with a model that is unique for each business based purely on results. Mark is starting to understand the value of Idealspot.com; he had assumed that human involvement was superior, but now he began to doubt that premise. Mark clicks through to the Idealspot.com How Does it Work page (measurable step).

Mark reads about the algorithm and how the data is loaded for each location, and how the success-prediction clientele are chosen, based on competitors and his type of business. He sees this is similar, even superior, to the methods used by much more expensive location-research alternatives. Mark starts to feel excited.

Mark wants to get a sense of the Idealspot.com track record, so he clicks on the Success Stories page (fork in the road) and reads a handful of stories by clients who are experiencing early success. He sees that Idealspot.com is a startup and their term track record is not as long or established as it could be, but the low introductory price of $297 removes this barrier from his mind.

Mark wants to try Idealspot.com. Still believing the pricing is too good to be true, Mark reads a section on the Pricing page (detour) that explains how big data and learning algorithms dramatically reduce the cost of research allowing IdealSpot to offer high-value analyses and rock bottom prices (road sign).

He clicks the Get Started button (measurable step). It explains the cost of each report, and that he is setting up an account that will allow him to enter potential locations and request as many or as few reports as needed. He does not need a credit card right now.

Marks appreciates that his privacy will be protected.

Mark fills out a form requesting his name, email and password, and then clicks Join and creates an Idealspot.com account (destination). He is excited to start scouting locations and using Idealspot.com for feedback.

Example #3 B2C multi-channel Buyer Legend:

When Debbie (hero) turned 12, her Aunt Rebecca bought her a charm bracelet with a collection of charms. Debbie loved it, and 29 years later she still wears it. And now her 11 year old daughter Ashley is coming up on a birthday. Ashley loves her mom’s charm bracelet, and is always looking through the charms and asking questions. She even asked to borrow it for a night out with a friend. Debbie of course wants to surprise her daughter on her birthday with an impressive bracelet and nice collection of charms to get started (catalyst).

While out and about running errands she takes a moment to search Google on her Android phone for “Charm Bracelets nearby”. Of course, she sees Pandora at the mall but thinks they are overpriced. She also finds a Charm Boutique and decides to drop by to see what they have. As she walks in (first measurable step) she is is greeting warmly and encouraged to take her time look around and then just ask if she needs help.

Debbie is impressed with the store; their oversized charms hang in the windows and from the ceiling. It is a fun atmosphere, where she can imagine returning with her daughter and buying new charms in the future. As Debbie scans the merchandise under the glass she sees several bracelets, none of which she think would match her daughter’s taste. She asks if they have any more styles and the saleswoman takes her to a computer and shows her several more designs that are available online or by special order (road sign). She zeroes in on a style and asks about it. The sales woman tells her that it is on back order and it may take several weeks to Special Order, but that it may be available online. Debbie asks her to please write the model and style number down for her and then turns her eyes to the charms. They have an impressive collection but she can’t find a couple of essential charms she would need. Ashley and she share a love of folk music and spend a few evenings a month playing guitar and singing, so a guitar charm is a must. Ashley also loves and collects zebras but the store has none of those, either. While there, she picks up a handful of charms that Ashley would love (measurable step) and heads home (detour).

That night after Ashley falls asleep Debbie goes online to visit the Charm Boutique website (measurable step) and quickly gets lost in the selection. She finds the bracelet she liked at the store as well as a guitar charm, a zebra charm, and about a dozen others that she adds to her cart, satisfied she has found the perfect Birthday gift for Ashley. She hits the checkout button and sees the total. It’s a little more than she wanted to spend. So Debbie visits the Pandora website to compare charms and pricing (detour). She finds that many of the charms she wants are there, but not all, and the bracelet choices are not that great. Even more so when she places them in her cart and hits checkout. The price is much more than that of Charm Boutique. So, she goes back to the Charm Boutique site, and finds something she missed before. She sees that her order qualifies for free priority mail shipping and she could have it in a week, giving her plenty of breathing room before Ashley’s birthday. She finishes checking out and is tickled that this worked out so well. She can’t wait to see the look on her daughter’s face when she opens this present.

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P.S. This is the sixth and last in a series of six Buyer Legends Recipe posts, please sign up to our newsletter for updates.

As always, we encourage you to try Buyer Legends for yourself, but if you need help, please let us know.

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