Touchpoint is the basis of communication, and experience affects the effectiveness of communication. Effective communciation promotes positive relationship, and ineffective demotes. In today's market where there is a never ending array of competitors and homogeneous products, positive relationship rules.
If everything is rooted in touchpoint, then the first touchpoint is the foundation of basically everything.
"Well begun, half done."
Creating the first touchpoint becomes the first and most important step to success. This first step is also known as the commonly known "first impression". A positive first touchpoint does not guarantee the next. In fact, nothing really guarantees anything. Losers are those who still blindly take everything for granted. The next critical step is then to ensure that there will be no discontinuity in the touchpoint chain.
AIDA, short for Attention, Interest, Desire and Action, does not really tell how to develop the first touchpoint, which is the root of everything. AIDA is just a simple 4-step model rehashing what's already obvious.
In order to build the first touchpoint, and the subsequent touchpoints that are yet to follow, an enterprise needs to focus on the 4Rs.
R - Relevance
R - Recurrence
R - Risk
R - Return
Relevance - The basic requirement for sender and receiver to establish relationship is to make PID relevant. Every critical success factor has to be relevant in order for both parties to develop common interest for possible bonding. (PID is an acronym for People, Information, and Deliverables.)
Recurrence - If the receiver listens to what the sender requests or suggests, what will the possible consequence be? Is the deliverable a one-off deal? Or will there be a lot of follow-up work? The idea is similar to Total Cost of Ownership (TCO).
Risk - This is the "cost" function of cost-benefit analysis (CBA). If the touchpoint is to be continued, what will be the risk involved? If short-term loss comes before long-term gain, how long is it going to take?
Return - This is the "benefit" function of CBA. After all, neither party would be interested to pursue the relationship further if there is no return from the first touchpoint and subsequent touchpoints, if any.
Showing posts with label Cracking the Relationship Code. Show all posts
Showing posts with label Cracking the Relationship Code. Show all posts
26 May 2006
06 May 2006
PID on Process
Execution is about process management, and process is executed by people. There is no best process, as long as the process can be brought to completion and deliver results at the end of the day. All roads lead to Rome.
People are usually impatient, don't like to wait, and want results immediately. They will do everything to identify shortcuts in order to achieve maximum return on investment (ROI). There is nothing wrong with this, but it is important to have the correct information before searching for the shortcuts, so that time used for execution is less than time spent for planning.
People with the right information may not implement the task correctly, but people without the right information are destined to be doomed.
In order to do things right, everyone involves in the process should focus on results, simplify procedures and policies to get things done, and ensure every element in the process should be relevant to the end results.
How to focus? Learn to let go and avoid perfectionism. (http://www.utexas.edu/student/cmhc/booklets/perfection/perfect.html)
How to simplify? Learn not to complicate.
How to be relevant? Identify and weed out non-value-added information.
People are usually impatient, don't like to wait, and want results immediately. They will do everything to identify shortcuts in order to achieve maximum return on investment (ROI). There is nothing wrong with this, but it is important to have the correct information before searching for the shortcuts, so that time used for execution is less than time spent for planning.
People with the right information may not implement the task correctly, but people without the right information are destined to be doomed.
In order to do things right, everyone involves in the process should focus on results, simplify procedures and policies to get things done, and ensure every element in the process should be relevant to the end results.
How to focus? Learn to let go and avoid perfectionism. (http://www.utexas.edu/student/cmhc/booklets/perfection/perfect.html)
How to simplify? Learn not to complicate.
How to be relevant? Identify and weed out non-value-added information.
10 April 2006
TXM in Brief
TXM has 2 levels: internal and external.
In order to achieve Touchpoint Experience Excellence (TXE), an enterprise should optimize "PID" both internally and externally, with focus on internal as happy employees make happy customers.
PID is an acronym for People, Information and Deliverables.
People use Information to produce Deliverables.
On the external side, an enterprise should adopt a CARE strategy for IPAK.
CARE stands for Cultivation, Acquisition, Retention and Expansion, where IPAK is short for Inactive, Potential, Active and Key. IPAK is a customer segmentation strategy.
01 April 2006
IPAK
IPAK is an acronym for Inactive, Potential, Active and Key.
IPAK is used to segment different types of customers in order to achieve optimal resources of allocation. It is similar to the concept of "Customer Pyramid", but IPAK is more systematic.
IPAK is further divided into 2 sub-segment 0 and 1, with 1 possesses higher value than 0.
INACTIVE
I0 - Lost Customer: One who was once a customer but has not bought in at least one normal purchase cycle. I0 represents more than the loss of the next sale; the enterprise loses the future profit on that customer's life-time purchases, referrals and word-of-mouth advertising.
I1 - At-Risk User: One who is considered to be at-risk due to decreased activity and high probability of defection, and is more likely to switch to competitor and discontinue the relationship.
POTENTIAL
P0 - Suspect: One who is a target for business, regardless of whether the target has a current need or is ready to act. The goal of the enterprise is to engage P0 for further qualification.
P1 - Prospect: One who has a need, pays attention to the enterprise, and has a propensity to purchase within a specific time frame. The more immediate the need, the shorter the time frame.
ACTIVE
A0 - First-Time Purchaser: One who purchases for the first-time, and is of varying profitability. Repeat purchase is strongly related to the initial and subsequent experience at each touchpoint.
A1 - Occasional Buyer: One who purchases on an occasional basis, and can be a customer of the enterprise and a customer of competitor.
KEY
K0 - Regular Customer: One who buys regularly due to consistent touchpoint experience and high level of satisfaction, which leads to increased cross-selling and up-selling success.
K1 - Advocate: One who is loyal and immune to the pull of competition, sells on the enterprise's behalf and brings customers. The strategy is to grow customer share and enhance customer lifetime value.
In Customer Loyalty, Jill Griffin identifies 6 stages of off-line customers.
(1) Suspect
(2) Prospect
(3) First time customer
(4) Repeat customer
(5) Client
(6) Advocate
For on-line customers, there are 7 stages as follows.
(1) Surfer
(2) First time site visitor
(3) Repeat visitor
(4) First time buyer
(5) Repeat buyer
(6) Client
(7) Advocate
It is not necessary to differentiate between on-line and off-line, but rather B2B (customer) and B2C (consumer). B2B and B2C have different expectations on the purchase cycle. Regardless of expectations, both groups go through the same stage - IPAK.
IPAK is used to segment different types of customers in order to achieve optimal resources of allocation. It is similar to the concept of "Customer Pyramid", but IPAK is more systematic.
IPAK is further divided into 2 sub-segment 0 and 1, with 1 possesses higher value than 0.
INACTIVE
I0 - Lost Customer: One who was once a customer but has not bought in at least one normal purchase cycle. I0 represents more than the loss of the next sale; the enterprise loses the future profit on that customer's life-time purchases, referrals and word-of-mouth advertising.
I1 - At-Risk User: One who is considered to be at-risk due to decreased activity and high probability of defection, and is more likely to switch to competitor and discontinue the relationship.
POTENTIAL
P0 - Suspect: One who is a target for business, regardless of whether the target has a current need or is ready to act. The goal of the enterprise is to engage P0 for further qualification.
P1 - Prospect: One who has a need, pays attention to the enterprise, and has a propensity to purchase within a specific time frame. The more immediate the need, the shorter the time frame.
ACTIVE
A0 - First-Time Purchaser: One who purchases for the first-time, and is of varying profitability. Repeat purchase is strongly related to the initial and subsequent experience at each touchpoint.
A1 - Occasional Buyer: One who purchases on an occasional basis, and can be a customer of the enterprise and a customer of competitor.
KEY
K0 - Regular Customer: One who buys regularly due to consistent touchpoint experience and high level of satisfaction, which leads to increased cross-selling and up-selling success.
K1 - Advocate: One who is loyal and immune to the pull of competition, sells on the enterprise's behalf and brings customers. The strategy is to grow customer share and enhance customer lifetime value.
In Customer Loyalty, Jill Griffin identifies 6 stages of off-line customers.
(1) Suspect
(2) Prospect
(3) First time customer
(4) Repeat customer
(5) Client
(6) Advocate
For on-line customers, there are 7 stages as follows.
(1) Surfer
(2) First time site visitor
(3) Repeat visitor
(4) First time buyer
(5) Repeat buyer
(6) Client
(7) Advocate
It is not necessary to differentiate between on-line and off-line, but rather B2B (customer) and B2C (consumer). B2B and B2C have different expectations on the purchase cycle. Regardless of expectations, both groups go through the same stage - IPAK.
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