ResearchTalk

We’re just back from the excellent two-day European Customer Experience Event where folks from Zappos and Harley-Davidson talked about how they build their ‘wow’ experience.

It’s our first time there and, to be honest, not the usual beat for us. But it should be – both for us and the insight community in general. Researchers who do anything related to loyalty or customer service should be attending this type of event because they get to meet the folks who actually put their work into practice – customer experience and service heads from major organisations, public and private.

We’ll blog more with some things that caught our eye. But first, in what’s becoming a tradition, here’s a wrap-up chat with three fellow delegates in which we talk highlights, learnings, customer experience in the public sector, digital natives vs. immigrants, behavioural economics, engendering loyalty by charging people (!), transparency and authenticity, convergence, and improvements for next year. Enjoy!

STARRING:

• Brian Koma, VP Research, Vovici
• Sharon Bayliss, London Borough of Hammersmith & Fulham
• Toni Blumeris, MD, Harding & Yorke (S. Africa)

European Customer Experience World event

A lot of folks are drinking the Zappos kool-aid these days. And it’s easy to see why. Because every now and then you come across a company that’s so contrarian in its thinking and execution that it leaves most observers bewildered. Before it was Google with quirky initiatives such as 20% time, something we now know powers its innovation funnel.

Online retailer Zappos is the latest purveyor of contrarian thinking, all in the pursuit of its happiness business model. For example, staff can spend six minutes or six hours on the phone with a single customer – there’s never any pressure to hit productivity quotas. New staff are paid to leave to gauge their commitment. And customers can return shoes up to a year after purchase, postage free, for a full refund. The list goes on.

The result? Booming sales – a couple years ago they broke the $1bn mark. And they were recently acquired by Amazon for – insert Dr. Evil voice – one billion dollars!

Harley-Davidson needs no introduction. It’s an iconic brand that, unlike Zappos, has been around for decades. And for many of us it conjures up distinct emotions such as freedom even if we’ve never experienced their products.

So, why are we telling you all this? Because you’ll learn more about how these companies are building strong cultures which drive profitability in the short podcast below (15 mins). It’s a discussion with the COO of Zappos and a senior marketer from Harley-Davidson, both of whom will be speaking at the upcoming European Customer Experience World event in May – check out the website for tickets and details.

Kindly hosted by Dean van Leeuwen, TomorrowToday’s intellectual adventurer and scholar of the new world of work. He focuses on customer loyalty and talent engagement.

In the chat we learn about…

• The genesis of Zappos quirkiness
• How Harley-Davidson is managing to stay relevant today
• Whether the ‘humanizing the organisation’ movement has staying power
• Examples of initiatives to build a sustainable culture of positive experiences/behavioural economics
• The evidence that these deliver topline and bottom-line results

STARRING:

• Alfred Lin, COO, Zappos
• Markus Kramer, director of marketing operations, Harley-Davidson
• HOST – Dean van Leeuwen, intellectual adventurer, TomorrowToday

Music by Amber Ojeda.

In the final of three audio podcasts recorded live at ARF Re:think ‘10, we chat with Conquest Research’s David Penn about his new tool, Infexious, which he says better predicts the likelihood that a campaign will go viral.

More precisely, David is interviewed by Rob Gotti and Robert Hall, both from the Boston Beer Company and who were intrigued by the tool and had a few questions.

David founded and runs the London-based quantitative outfit Conquest Research. The invention of Infexious, which uses visual metaphors to get a more emotional, pre-cognitive measure of consumer reaction, follows the earlier development of Metaphorix, a tool using a similar approach to measure how engaging a campaign or execution is.

We chat about…

• What the tool does
• Pre-testing the Cadbury Gorilla ad. failed – would Infexious be any better?
• The difference between an individual and a social response – and which is best measuring
• Is this tool really measuring pre-cognitive responses?
• Validation – Evian & Compare the Meerkat ads.
• Do clients always want their ad. agency to develop ads. that go viral?
• Persuasion in communications without being rational – the Carling campaign

(Pic c/o rooreynolds on Flickr)

In the second of three audio podcasts recorded live at ARF Re:think ‘10, we chat with anthropologist Grant McCracken.

Grant trained as an anthropologist (Ph.D. University of Chicago), has been featured on the Oprah Winfrey Show. He started the Institute of Contemporary Culture at the Royal Ontario Museum, where he did the first museum exhibit on youth cultures. He has taught anthropology at the University of Cambridge, ethnography at MIT, and marketing at the Harvard Business School.

He recently published his third book, Chief Culture Officer, in which he argues that the time has come to elevate cultural understanding within organisations as part of both an offensive and defensive strategy.

We chat about the key themes in the book and are kindly joined by researcher Steve Gentile of Think Tank NYC, someone who I roped into the conversation once I heard that he had actually read Grant’s book

(Pic c/o hyku on Flickr)

In the first of three short audio podcasts recorded at ARF Re:think ‘10, we chat with Pete Blackshaw, EVP of Digital Strategic Services Online Division at Nielsen.

Pete was one of the early advocates of CGM and started a firm that eventually became part of Buzzmetrics, itself later bought by Nielsen. An author and prolific tweeter, we chat about…

• The implications for an organisation’s structure and culture as it grapples with responding to customer issues in real-time
• Which department should manage and own social media conversations
• The importance of ensuring that consumer trust is never ‘violated’
• Nielsen’s new algorithm for blending the potency of paid- (advertising) and earned- (social) media
• What CMOs are looking for from media measures
• The next challenge for social media: data integration, segmentation

Neither the BA strike nor the motley crew above could stop our first visit to the ARF Re:think annual confab in New York (a special thanks, btw, to Joel Rubinson and team for providing access).

Key themes this year were neuroscience, biometrics, social media management and measurement, integrating offline with online behavior (as advertisers and marketers look to link a stimulus on one with resultant behaviour on the other), and the increasing value of understanding cultural influences through ethnography. It was good to see a conference confidently devote so much of its agenda to the new MR, or ‘the new normal’ as the ARF referred to it.

Specific highlights for us include

• A marathon 2-hour session from various folks at Nielsen on ‘Thinking How Consumers Watch, Listen and Buy’. Led by Paul J. Donato, CRO, we learn, among other gems, that high search term prices was the reason for the bizarre but ultimately successful UK ad. campaign Compare the Meerkat. Donato also referred to big data sets – data abundance and mining was a clear theme, particularly among the big boys in audience and shopper measurement
• A panel discussing the new ways to understand influences on consumers, by looking through a social lens (Larry Friedman of TNS), a cultural lens (anthropologist Grant McCracken) and an emotional lens (Carl Marci, Innerscope). The different perspectives showed the value of diverse information sources and subsequent need to integrate or synthesise the data into a coherent, persuasive whole
• A lively debate among client-side folks on ‘How to Bring the Voice of the Human Into the Boardroom’. Some interesting ideas came out the debate moderated by Joel Rubinson: Stan Sthanunathan of Coca-Cola says they are slowly shifting to a pay-performance model for their MR agencies; John Forsyth of McKinsey says that his clients are looking for people with good synthesis skills; Susan Wagner of Johnson & Johnson talked of having shifted 15% of their MR budget to so-called new MR tools (she didn’t specify what these were). Stan also talked of ways to stimulate his internal clients’ thinking using more than just conventional research – for example by getting them to meet with folks in the army to share challenges and strategies

We managed to record a few short audio podcasts, do have a listen

• Nielsen’s Pete Blackshaw on a new algorithm for measuring ‘blended media’ (paid + earned media) Listen here
• Anthropologist Grant McCracken on why companies can’t afford to continue without a Chief Culture Officer Listen here
• Conquest Research’s David Penn on his new tool for predicting the virality of communications Listen here

It was a pity we couldn’t stay for the final day when neuroscience and biometrics were covered in earnest. But we have recorded video chats with some of the key players and plan to bring the completed film to you later this year.

A big thanks again to ARF folks Joel Rubinson, CRO, and marketing director Heather James for giving me access to an event I look forward to attending again.

See here for the introductory article.

Here’s a couple of panel discussions from the event.

     
Paul Berney of the MMA probably said it best: giving the keynote at the Globalpark-sponsored 2010 Mobile Research Conference, he said that 2009 turned out to be the year that mobile became a serious consumer internet access device. But then he also said he wasn’t going to be held to that proclamation given how premature the prediction turned out in previous years!

Around 100 folks turned up for the two-day, well-organised event in London for what I believe was a meaty feast of the useful and practical. And there was good Wifi so lots and lots of tweeting (apparently nine tweets/min at one stage).

We took advantage of the Wifi to post these five podcast chats in almost real-time – hope the many hundreds who listened to these on the day felt the speedy upload was useful.

See here for audio from two of the panel discussions.

In the next few days we’ll add links to blogger commentaries:

Dan Pink speaking at this year’s TED Global in Oxford.

He takes us through a wealth of evidence – built up over four decades – which demonstrates that financial incentives tend to focus the mind and as such only tend to be productive on left-brain tasks, i.e. “problems with a clear set of rules and a single solution.”

In contrast, when financial incentives are offered to people to solve more right-brain tasks – those that are more conceptual in nature and require greater use of cognitive power – the incentives actually make the problem harder to solve because they narrow the focus when the solution tends to be on the periphery and so the solver needs to be thinking more holistically and laterally.

The issue, says Pink, is that we’ve known about these flawed links between problem-solving and financial incentives for decades, and yet despite that they endure. And more and more of the work we do is shifting to right-brain thinking as we delegate the routine, rule-based stuff to computers and outsourcing agents.

The solution: offer incentives based on intrinsic motivators. Specifically, autonomy (e.g. Google’s 20% time), mastery, and purpose.