B2B Most Engaged Customers Study_PeopleMetrics

8/4/2019 B2B Most Engaged Customers Study_PeopleMetrics

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TABLE OF CONTENTS

Introduction ...................................................................................................3

Study Methodology......................................................................................4

Results............................................................................................................4

The Ingredients for Making Engagement...................................................6

Defining The Elements.................................................................................7

Consistency............................................................................................7

Effort.......................................................................................................7

Trust........................................................................................................8Offer.......................................................................................................9

Care........................................................................................................10

Genuine .................................................................................................10

What Can Companies Do to Create

High Levels of Engagement and Love?......................................................11

About the 2010 Most Engaged Customers Study.....................................14

About PeopleMetrics....................................................................................14

1717 Arch Street Suite 3220, Philadelphia, PA 19103, USA | 215.979.8030 | www.peoplemetrics.com

Copyright 2010 PeopleMetrics Inc


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Customer churn is the nemesis of growth. Nowhere is this truer than in the business-to-business

world where the cost of securing and launching a brand new account far exceeds that of extend-

ing and expanding existing relationships.

Customer turnover comes in a few unappetizing flavors. Total Customer Churn occurs when an

account goes from some healthy revenue number to zero seemingly overnight. Many companies

experience a wake up situation that shocked them into taking a more systematic approach to

capturing and taking action on client feedback. For example, somebody receives a phone call

from a top tier account during which the key contact informs them that they are taking their busi-

ness elsewhere. Why? Because they have experienced indifferent service, unfair billing practices,

unreliable or poor quality service or insufficient value.

There is another more subtle class of turnover that starts off slowly, with a gradual reduction in

billings and services. Some businesses overlook the drip in the leaky bucket until it is all but

empty. How can companies protect themselves from customer churn of either variety?

The answer is in emotional

engagement. After all, busi-

ness is personal. If your

clients are not emotionally

connected to your firm, your

people, and your services,

you cannot expect to grow them.

The 2010 Most Engaged Customers study is the first of its kind to look at Customer Engagement

in the business-to-business space. Our goals with this research effort in 2010 were to identify:

How engaged business decision-makers, influencers, and day-to-day contacts are with

their providers across a variety of sectors including: Accounting & Tax,

Telecommunications & Data, IT Consulting, Insurance, Management Consulting, Legal

Services, HR Consulting and Payroll, and Marketing and Advertising services

How Engagement drives share of budget and spend

The elements that most impact Engagement, and how they compare with the factorsthat create Engagement with consumers

A roadmap that any business-to-business organization can follow to create higher

levels of emotional attachment and Engagement with its clients

INTRODUCTION



If your clients are not emotionally connectedto your firm, your people, and your services,

you cannot expect to grow them.


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Partnering with Toluna, an online panel sample company, PeopleMetrics 2010 Most Engaged

Customers study captured diverse views from clients in the business-to-business space.

Respondents provided employment status and, if employed, their role in making purchase deci-

sions for their company. Those considered decision-makers, influencers, and/or the day-to-day

contact for partners offering accounting and tax, insurance, telecommunications, IT consulting,

and other professional services were invited to continue with the B2B portion of the survey.

Overall, we received 2,370 responses from this business-to-business community.

Fewer than half of business-to-business customers in our

study are engaged with their providers (45%). This level is

six points lower than the average level of Engagement

seen amongst customers across a variety of business-to-

consumer sectors (51%) such as Retail, Luxury, Restaurants,

Grocery Stores, Wireless, and Cable/Satellite TV providers.

STUDY METHODOLOGY



RESULTS:ITS TOUGHER TO ENGAGE A CLIENTTHAN IT IS TO ENGAGE A CUSTOMER

Throughout this paper we use theterms Client/Customer Engagementand Client/Customer Loveinterchangeably

Engagement/Love refers to the

emotional attachment that acustomer has to a company

Engagement/Love is assessed usinga validated, comprehensive measurethat links to financial performance

The calculation is based uponindividual customer responses tofour questions:

(1) Retention: Given the choice Iwould do business with [Company]again.

(2) Effort: I would go out of my ownway to do business with [Company]again in the future.

(3) Advocacy: I would recommend[Company] to a colleague or busi-ness partner.

(4) Passion: I love doing businesswith [Company].

Figure 1. Overall B2B Agree/Strongly Agree ScoresFor the Four Elements of Customer Engagement


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PeopleMetrics research into consumer and business-to-business Engagement has revealed six

common dimensions that together create high levels of emotional attachment or engagement.

All elements need to be present to create superior results for both consumer and business-to-

business companies.

From top to bottom, these six elements are defined as follows:

1. The Offer: Products, services, or experiences that consumers want & businesses say add value

2. Care: A company culture that cares for and values customers and the businesses they serve

3. Consistency: Excellent service at every touch point and from every contact in the company

4. Trust: If something goes wrong, the customer or client have faith the company will make it right

5. Effort: Employees who exert extra effort and go above and beyond for customers and clients

6. Genuine: Authentic interactions with real people

However, the order of impact of these dimensions varies depending upon whether the customer

is investing in a business or consumer experience.

The foundation of solid engagement for consumers is more functional in nature and relates to thestrength of the offer products, services, and/or experiences that the customer really desires. In

business-to-business situations, the emotional elements come into play earlier.

Consistency, Employee Effort, and Trustare the

top three elements driving business-to-business

Customer Engagement.

THE INGREDIENTS OF ENGAGEMENT



The foundation of solid engagement for consum

is more functional in nature relating to the streng

the offer...in business-to-business relationships em

tional elements come into play earlier on.


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Factor and regression analyses were applied to the survey data in order to assist us in further

defining each of the six dimensions for business-to-business customers. The goal here is to help

put these dimensions in behavioral terms thus making it easy for leaders, account managers, and

client-facing staff to improve their Engagement. This following section is dedicated to further

defining these six elements.

CONSISTENCYThey always provide excellent service regardless of who I am working with.

For business customers, Consistencyis king.

These individuals are looking to work with organ-

izations that get it right each and every time

regardless of who is representing the firm.

Across projects and service lines, clients expect:

1. High Quality Deliverables: Clients are looking for the final product to be of

exceptional quality. Depending upon the industry this may mean: accuracy, value-add

recommendations, and/or reliability of products and services. However your industry

defines quality; all employees must understand its definition & know how to deliver it.

2. Honoring Promises: Ensuring that all people do what they say they will each and

every time is essential to delivering consistent service across touch points. Clients

want to be able to trust that regardless of who is involved, the vendor will follow-

through on promises and agreed next steps.

3. Frequent Communications and Check-ins: Project and account communications are

critical to building a consistent experience for a firms clients and customers. This

means regular in-person and/or telephone check-ins. This ensures that all are on the

same page when it comes to knowing what is happening.

Consistencyis the friend (or foe) of a firms brand promise. In a professional services environment,

your brand is your people. A common commitment to, and consistent delivery against, the firms

customer promise is essential to building high levels of Customer Engagement. Hiring, training,and rewards processes have to support this consistent brand promise.

EFFORTOne employee went out of their way to come into an audit midway through and work with us

until the problem was resolved.

DEFINING THE ELEMENTS



For professional services firms your brand is your

people. A common commitment to, and consiste

delivery against, the firms customer promise is es

tial to building high levels of Customer Engagem


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The second most important element driving Engagement

of business customers is Effort.

Among the Fully Engaged clients included in our research,

countless of them spoke of employees who had wowed

them by working long hours, weekends, and holidays to meet deadlines and ensure all goals werebeing met.

Effortboils down to three key elements:

1. Proactive Advice, Expertise, and Guidance: Clients experience effort when their

team members offer something unexpected a piece of industry news, trend data, or

observation that add value to the business beyond the scope of the current work.

2. Understanding the Clients Unique Culture: Employees who make an effort to

understand how work gets done within their clients own company show a higher levelof effort and commitment than those who simply deliver what is contracted. Adapting

and responding to different communication styles & ways of working, thus becoming

seamless with the clients business and culture, is one way high performing companies

are demonstrating Effort.

3. A Positive Attitude towards the Organization for which He or She Works: This

factor is strongly related to Employee Engagement. Clients see when employees are

disengaged and often hear it too. This is a detractor of client Engagement and

perceptions ofEffort.

TRUSTWe had major billing issues. The rep brought in a PowerPoint presentation and demonstrated

how we could save thousands of dollars by combining our services, and got us credits for prior

months, saving us a ton of money. Not only did he listen to our needs, he did research on our

business to see what we needed.

The third element impacting Engagement of clients and customers in business-to-business

situations is Trust. Ultimately, Trustcan be built or destroyed by how well a company responds to

problems or issues. Notwithstanding, other elements support the development of client Trust,

specifically:

1. Fair and Transparent Billing Practices: Organizations that make their fee structures

difficult to understand give the impression that they are trying to deceive the client,

potentially conning them into paying more than they should. Furthermore,

professional services firms that aggressively track scope creep and charge for every

change can do themselves a disservice when it comes to building client Trustand

maintaining strong relationships for the long-haul.



Employee Effort comes down to Emplo

Engagement. Companies that are able

engage their talent are not coincidenta

better able to engage their clients.


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2. Credible People: Next on the list of elements impacting Trustis credibility of the

talent that is supporting the account. Clients need to feel confident that they are

working with experts who will not make rookie mistakes.

3. Disciplined Follow-Up after Meetings and Phone Calls: Finally, communication is

essential to building and maintaining this factor. Following-up after meetings andphone calls should be a regular practice as it is a behavior that can make (or break)

client confidence. Documenting conversations, decisions and responsibilities for next

steps means that everybody is on the same page and expectations are managed and

met. Failing to manage/meet expectations erodes Trust& makes it difficult to rebuild.

THE OFFEROverall they offer excellent legal work. Responsive, knowledgeable, very well rounded.

As noted previously, The Offeris the foundation for Engagement in the consumer world. While

not sufficient to create superior levels of Engagement on its own, products, services, andexperiences people want is what starts the engine.

In business-to-business situations, on the other hand, this element is further down in the list of

important elements. And the definition ofThe Offeris vastly different. Clients and customers who

are purchasing and engaging with business-to-business providers want three things when it comes

to The Offer:

1. Responsive Service: A clients perception ofThe Offerstarts with service

responsiveness, typically during the initial sales process. By engaging with a sales

person who is exceptionally responsive, the prospect receives the impression that

The Offerfrom this company includes a high level of client service.

2. Solutions Tailored to the Clients Business Issues/Needs: Next is the impression that

the organization you are dealing with is willing and able to tailor what they are

delivering to meet the unique needs of your business. A canned approach rarely

results in high Client or Customer Engagement.

3. Demonstrable Industry Expertise: Finally, demonstrating industry expertise is

essential to conveying the strength of what is being offered. Knowing the issues that

the industry is experiencing and are on the horizon affects value perceptions. Being

able to speak the customers language also enhances the perception that the

organization understands the clients business environment. It is a requirement that

The Offer(products, solutions, services) will reduce challenges and/or make the

company more successful in the world it inhabits.




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CAREThey took extra time explaining everything, made me feel that my business was as important to

them as it is to me.

Care is the fifth step in the roadmap to business-to-business Customer Engagement. This is

demonstrated both functionally and emotionally by organizations doing the following threethings:

1. Make Invoices Clear: Too often invoices are provider-centric rather than client-centric,

including codes and descriptions that might make sense to the receivables person

within your organization but could be foreign to the payee. A simple invoice written in

client language speaks volumes about how much the organization cares for its

customers and clients. Furthermore, clear invoicing helps with the Trustelement

referenced earlier.

2. Get to Know Clients as People: This is a truly emotional driver. Clients andcustomers who feel that their contacts care enough to ask them questions and

remember details about their personal lives tend to feel positive and engaged.

3. Stay Connected to the Clients Business: Showing that you take time to learn about

a clients business by staying abreast of their company news and changes is a key

ingredient in helping clients to feel cared for.

GENUINEI just like how friendly and personable he is...They are friendly and honest.

Finally, Client Engagement is gained and sustained through solid relationships. Companies that

encourage people to be themselves, thereby creating relationships with their clients, score better.

These companies customers tell us that the people they work with are:

1. Fun to Work With: All business and no play can interfere with perceptions of genuine

and authentic service. Clients are looking to have some light relief, and working with a

team that is fun and approachable can help.

2. Considered Friends: The most Engaged clients are those who consider their contacts

to be friends. They feel this when they get advice or guidance from their contact that

is clearly in their best interests and not necessarily purely in the interests of the partner

organization.

3. Genuinely Interested in their Personal and Business Success: Showing an interest in

the business and the clients personal success is a key part of being genuine. Asking

questions, following company news, and reaching out to check in on how things are




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going personally and professionally are all behaviors that encourage the perception

of a relationship founded on honesty and genuine care.

There is no question that business is personal. If your people can connect with clients and cus-

tomers in a genuine, authentic, honest way the relationships will be stronger and last longer.

The 2010 Most Engaged Customers study revealed that business-to-business companies that

embrace Customer Engagement are more likely to win and grow, even in difficult economic times.

Their customers are more likely to recommend them and spend more of their allocated budget

with them. A corporate focus on Client or Customer Engagement, therefore, is not just the job ofmarketing or customer service but that of the C-suite. Customer Engagement is a continuous

strategy that needs to be ingrained wide and deep, not a discrete event.

This years study also revealed that there are six avenues by which business-to-business companies

can increase Customer Engagement. To achieve true Customer Engagement, all of these

dimensions must be present. The following steps highlight actions that can be taken to increase

positive scores for the six dimensions:

1. Measure to Ensure Consistency: A consistently excellent experience across

individuals is essential to creating Customer Engagement. One poor experience can

alter a customers view for years into the future. Each and every client-facing

employee needs to deliver the same exceptional quality of deliverables. They need to

do what they say they will and they need to communicate with their customers and

clients on a regular basis. How do you know if your organization is consistently

delivering against your brand promise? One answer is in feedback and measurement.

A real-time, enterprise-wide customer feedback program will ensure that you are

keeping your finger on the pulse of the experience your clients and customers are

having, and that you are able to intervene with agility and impact if and when

consistency falls short. Make sure the results from your feedback program are avail-

able to account managers and customer facing staff and are not the exclusive domain

of market research or strategy departments.

2. Engage your People so they Give Extra Effort: Engaged employees go above and

beyond for clients. Engaged employees get to know their clients culture and way of

working and readily adapt to this. They also take extra time to share information,

advice, or expertise that is beyond the scope of the current agreement. Disengaged

employees do the opposite. If you dont know how engaged your people are, or why



WHAT CAN COMPANIES DO TO CREATE

HIGH LEVELS OF ENGAGEMENT & LOVE?


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they are or are not, you are managing in the dark. A formal Employee Engagement

program will allow you to identify the areas in need of fixing. Before doing this,

though, you must be prepared to make changes to increase Engagement, and by

extension, see more employees doing more for your customers and clients on a

regular basis. We recommend including in all of our B2B transactional customer

surveys Did anyone at [ABC] go above and beyond to meet your needs? Pleaseprovide their name and a description of what they did. By then sharing this positive

feedback directly with the employees who generated it, resulting levels of Employee

Engagement, and consequently Customer Engagement, have risen for many of our

clients. This system is what makes great service contagious.

3. Build Trust: Customers trust organizations with open communications. This starts with

fair and transparent billing practices. Do your fee structures and/or pricing models

make sense to your customers? Can they easily see what they are being charged and

why? Next, Trust depends upon the credibility and expertise of your people. Are your

people the best in the market place? Can your clients trust them to make them lookgood? And, finally, do you have service standards around following up with customers

after meetings and phone calls, and, especially after problems have occurred?

Without these practices, this all important dimension ofTrustwill suffer.

4. Deliver a Compelling Offer: In the business-to-business space perceptions of

The Offer, that which your clients are paying for, starts with sales process. After all,

everything communicates, and the level of responsiveness, industry expertise, and

ability to tailor to a clients situation is essential to the decision to buy or not to buy.

Are you offering your customers and prospects asolution that meets their unique

business needs? Does your solution speak to specific industry issues and language?

What is unique and differentiating about your solution?

5. Show You Care by Thinking about Your Clients: It seems simple and yet many,

many organizations arent able to act in ways that make the customer feel cared for.

One element ofCare is relatively simple to fix the clarity and ease of understanding

of bills. If your bills are confusing, difficult to analyze, and add administrative burden

to your clients, you are implying a lack of care. How clear are your invoices?

Furthermore, do you stay on top of your clients business and know things about them

as people? Taking the time to get to know the things that matter to your clients is a

clear indication of the degree to which you care about them. Is customer-centricity a

true business strategy or just a buzz word in your organization? Can you identify the

employees in your organization who really care for their customers and clients? If

so, what do they do, how, and why? A Brand Ambassador program is a good way to

start. Using customer feedback you will be able to identify which of your employees

are delivering exceptional levels of service and care to their clients. Recognize them,

learn from them, and train and hire more of them.




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6. Encourage your People to be Real with Customers Regardless of Role: Dont limit

your employees by scripts or messaging that will interfere with their ability to be who

they are. Your customers and clients need to experience them as real, genuine

people. If you hire with emotional intelligence in mind, you should feel comfortable

allowing employees to be themselves with your customers and clients.

The above steps can help companies across business-to-business sectors realize stronger and

more profitable relationships with their customers.

Finally, a systematic approach to managing Customer Engagement is essential for success.

Winning firms are capturing and taking action on customer feedback through an ongoing

Customer Engagement Management program. By so doing, they are able to engender a

consistent culture of customer-centricity, build trust through responsive and exceptional service

recovery, and empower employees across the enterprise to own the customer experience.

We know that Customer Engagement doesnt just happen. And we know that it is rare that agreat offer alone will generate consistent levels of emotional attachment, even love, to your

company and brand. You have to manage the process of Customer Engagement. Customer

Engagement Management (CEM) is a consistent and systematic approach to measuring customer

experiences. Here are some highlights of a successful CEM program:

Enterprise-Wide Access: Everyone who is responsible for customers within the

organization should have access to their feedback.

Accountability for Taking Action: Specific customer feedback should be assigned to

individuals within the organization to promote follow-up actions.

Real-Time Information: Customer feedback should be available in real-time, seconds

after feedback has been provided.

Transactional Customer Feedback: Leading organizations obtain brief feedback from

customers after specific transactions or experiences to help build consistency in the

customers experience of the company.

Action Oriented Questions: Powerful feedback must drive specific actions employees

can take to strengthen emotional bonds with customers. Demonstrate care for your

customers time - do not burden them with survey questions if you will not take action

on their answers.

For more information on implementing a CEM program within your organization, please contact

Frank Rowe at 215.979.8038.




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ABOUT THE 2010

MOST ENGAGED CUSTOMERS STUDY

In June 2010, PeopleMetrics conducted the Most Engaged Customers (MEC) Business-to-

Business study, the first of its kind to examine Engagement in B2B relationships. Partnering with

Toluna, an online panel sample company, PeopleMetrics received 2,370 responses from the B2B

community. Respondents included decision-makers, influencers and/or day-to-day contacts for

partners offering accounting and tax, insurance, telecommunications, IT consulting, and other pro-

fessional services.

PeopleMetrics is a leading research and technology firm that helps companies engage customers

and employees to drive bottom line results. Our solutions support the success of managers by

providing continuous feedback from stakeholders and guidance on the best actions to take in

response to specific comments.

Since our inception in 2000, PeopleMetrics thought leadership, exceptional client service, and

easy-to-use technology has helped hundreds of clients generate remarkable results.

For more information about PeopleMetrics services please contact [email protected] or

[email protected].

ABOUT PEOPLEMETRICS

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B2B Most Engaged Customers Study_PeopleMetrics