Customer Insight Spring 2019

www.tlfresearch.com | Spring 2019

THE WORLD’S MOST ADMIRED COMPANIES ALSO INSIDE… Latest UKCSI results Gradually then suddenly: how does culture change happen?

The power of trust in the charity sector

W NE

W NE

CUSTOMER CENTRICITY

CUSTOMER CENTRED DESIGN

HALF DAY BRIEFING

HALF DAY BRIEFING

What is it that sets the companies who excel at customer experience apart from everyone else? It’s a good question, and fortunately we’re in a position to answer it. We analysed the characteristics of the companies at the top of our benchmarking league table, and identified the10 traits that underpin their success.

All products and services are designed, but often the design process can be ad-hoc and opaque, resulting in processes which seem efficient but create frustrating experiences for the customer.

The growth of design thinking and related disciplines such as customer success has led organisations to go back to the drawing board to design experiences that work for customers from the ground up. That means fusing research to create empathy for customers with a deep understanding of the psychological principles we can use to create the experiences we desire.

In this half day briefing we’ll review the 10 traits, explain why each is so important, and discuss how to tackle them in practice. We’ll also talk about how to assess where your organisation is currently positioned

This half-day briefing will give you a grounding in customer-centred design for products, services, and (ultimately) experiences.

DATES:

DATES:

4th April 2019

London

4th April 2019

London

£160 (ex VAT)

£160 (ex VAT)

UP

W

TED DA

NE

MEASURING THE EMOTIONAL CUSTOMER EXPERIENCE

STORYTELLING

HALF DAY BRIEFING

FULL DAY INTERACTIVE WORKSHOP

Customer emotions are a vital part of the customer experience. You know that emotional intelligence at the front line is vital, and you train your staff to make the most of theirs. You know that appealing to emotions is a major part of the success of your marketing, and you try to find ways to do that. You may even realise that emotions can be the biggest driver of how customers feel about a journey.

Stories are the most effective way to engage, move, and persuade.

Whether it’s a board presentation, internal comms, or customer feedback; building storytelling techniques into reporting and communication is the best way to make insights memorable.

But what does that mean for measurement? Traditionally emotions have been left to the qualitative parts of the research and insight world. Is it time to find ways to try to quantify and measure them, or is that simply not possible?

In this half day briefing we look at different approaches for using research to explore, understand, measure, and apply models to customer emotions.

DATES: 15th May 2019

£160 (ex VAT)

People are natural storytellers, but when it comes to business communication it’s often difficult to see how to apply those talents to the messages we need to convey.

In this workshop we’ll work through a series of exercises to help you craft your own story (complete with hero, key messages, conflict, and payoff).

Along the way we’ll discuss the theories that support effective storytelling, and showcase a range of techniques and examples you can use.

DATES:

London

21st May 2019

Manchester

£300 (ex VAT)

Book online at tlfresearch.com or call 01484 467000

EDITORIAL

Foresight The challenge of taking action as a result of

The UKCSI continues to be the best measure

your survey is the number one question we’re

of how well UKPLC is meeting the needs of its

asked about. Rachel’s article on page 6 is, if not

customers. On page 30 Sarah introduces the new

the answer, at least a lot of the right questions

and improved structure, slightly revamped to

for you to think about. There’s no disguising the

reflect the importance of relationships and

fact that the customer experience takes hard

longer-term attitudes.

work to change.

Editor

In our cover article on page 16 we run through

As I quote Marcella Bremer saying in my

the top 10 in FORTUNE’s most admired companies

article on page 10, “All change is culture change,

in the world to see what we can learn from these

or it won’t work”. In the article, based on my

giants, and perhaps give us a glimpse at the future

client conference talk last year, I take a look at

direction for the world and its consumers.

how culture change happens and how leaders can shape it.

Happy reading, and please drop us a line if you’ve got an interesting story to share in a

Hopefully many of you will have seen that

future issue.

we have started a podcast (“TLF Gems”). It’s been fun, and hopefully it will be useful too. Our research (page 21) has shown that podcasts are surprisingly popular.

Charities have a difficult challenge when it comes to customer experience and marketing.

How should they engage with people to maximise donations, while making sure that they’re not seen to be spending money that could be better used for their core mission? Our panel research, summarised by Tom on page 24, might point the way.

EDITORIAL Editor Stephen Hampshire ADVERTISING Marketing Manager Richard Crowther DESIGN & PRODUCTION Creative Director Rob Ward

CONTACTS

Stephen Hampshire

Designers Becka Crozier Jordan Gillespie Rob Egan Production Editor Chris Newbold PRINTER AB Print Group Ltd

Customer Insight is the magazine for people who want to deliver results to employees, customers and any other stakeholders as part of a coherent strategy to create value for shareholders. We publish serious articles designed to inform, stimulate debate and sometimes to provoke.

We aim to be thought leaders in the field of managing relationships with all stakeholder groups. www.tlfresearch.com uk@leadershipfactor.com Customer Insight C/O TLF Research Taylor Hill Mill Huddersfield HD4 6JA

NB: Customer Insight does not accept responsibility for omissions or errors. The points of view expressed in the articles by contributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published.

All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form

or by any means without prior written consent of the publisher. © CUSTOMER INSIGHT 2019

ISSN 1749-088X

www.tlfresearch.com | Spring 2019 Customer Insight 3

C O N T E N T S

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10

Gradually then suddenly How does culture change happen – evolution or revolution?

CONTRIBUTORS

06

Get to it!

Rachel Allen on making sure you do something with all that insight

S P R I N G

2 0 1 9

16

FORTUNE Most Admired All Stars The Top 10 in FORTUNE’s World’s Most Admired Companies

Nigel Hill

Rachel Allen

Stephen Hampshire

Tom Kiralfy

Wine-lover, Munroist and customer satisfaction guru

Customer satisfaction evangelist, author and lover of the outdoors

Conference speaker, book-lover and occasional climber

Panel wrangler, banana lover and chinchilla owner

4 Customer Insight Spring 2019 | www.tlfresearch.com

CONTENTS

RESEARCH Get to it! 06

21

Time to jump on the podcast bandwagon?

24

The power of trust in the charity sector

34

How hard can it be?

Nordstrom reinvent the high street

LATEST THINKING Gradually then suddenly

10

FEATURE FORTUNE Most Admired All Stars

16

RESEARCH Time to jump on the podcast bandwagon? 21

RESEARCH The power of trust in the charity sector 24

28

Take a closer look at the latest UKCSI results

32

Book Review A TLF Book Club retrospective

RESEARCH January 2019 UKCSI results

30

BOOK REVIEW A TLF Book Club retrospective

32

HOW HARD CAN IT BE? Nordstrom reinvent the high street

34

DESIGNERS

Published by

Becka Crozier

Jordan Gillespie

Rob Egan

Right brain mastermind, music enthusiast and have I told you I’m vegan?

Creative magus, genuine tyke and 20ft wave rider

Beer drinker, pixel pusher and dour Yorkshireman

www.tlfresearch.com | Spring 2019 Customer Insight 5

RESEARCH

RESEARCH

Missing [in]action In earlier issues of Customer Insight magazine I’ve written about the importance of encouraging customers to take part in your surveys by warming them up.

An important element of the warm up is letting customers know that taking part is going to benefit

In a nutshell: • If satisfaction is low or falling; you need to take action.

• If satisfaction is high or improving; you need to maintain momentum and build on your success.

• If your satisfaction scores are

them in the end because improvements will be made

improving and you are not

based on their feedback. This is the incentive for

taking action; this is down to

them to take part (‘What’s in it for me?’).

good luck. I can assure you it

That’s easy! Customers tell you what they want and you take action. Except…most organisations don’t find it easy. If it was the world would be filled with content customers.

Knowing where to start, taking those first steps towards taking action, can be bewildering,

won’t last forever. There are no free lunches in CSat. Take action.

• If you are taking action and your satisfaction scores are falling… there is probably a legitimate reason.

I will come to this later.

especially when faced with volumes of feedback from customers. This is why so many organisations spend

If your excuse is ‘It’s too difficult’. Well,

a lot of time splitting and slicing results into endless

what can I say? Yes, it can be difficult but

segments. It’s a subconscious delaying tactic.

where would we be if we gave up on everything

In this article, I’m going to share some tips to help you get the ball rolling on the action front. This

that wasn’t easy?

Taking action is as difficult as you make it. If

includes some tough love. We’ll get that bit over with

‘difficult’ scares you or puts you off then choose

first.

something relatively easy to change to give yourself a

If you are not actually taking action, unless the reason is that you are in the throes of making plans, then you really need to get a move on.

If you are not taking action because you do not

fighting chance. Some thrive on ‘difficult’.

If your excuse is: ‘I don’t know what to do’. This is honest but it’s no reason to give in or give up. It shows a blatant disregard for your customers to ask

trust the research you need to change your approach

them what they think and then ignore what they

quickly and stop wasting money.

tell you. You would be better off not asking in

There is simply no justification (excuse!) for doing nothing. In 99.9% of cases, doing anything is better

the first place.

With the excuses out of the way, when

than doing nothing. Be wary of overthinking and

it comes to taking action where do

stalling action taking.

you start?

www.tlfresearch.com | Spring 2019 Customer Insight 7

RESEARCH

It’s about you Have a think. Do you have the clout to

Decide whether you are aiming for a marginal gains or quick wins approach

drive change? Unless you are in a role of seniority or have been openly tasked with

Decide who is going to own the improvement (You may choose to do this before deciding what to focus on)

• Decide what approach will work best for you.

putting together an action plan, you may

Are you going to tackle what is quick and

need to think about enlisting a sponsor.

relatively easy or work on a change that will

coordinator of the overarching action plan

Without authority and support, driving

have an impact on the most customers or key

needs the authority (and support from above)

change will be difficult. What they say about

segments of customers?

‘support from the top’ is true.

Do you have a genuine interest and desire

• What approach will suit you best ‘marginal

• I touched on this earlier but the driver and

to collaborate, motivate and drive change.

• The ‘driver’ does not necessarily need to

gains’ or ‘quick wins’? Dave Brailsford, British

implement the change themselves, but

to drive change? Making changes is not for

Cycling coach, was coaching a team that was

they do need to coordinate those who are

the faint hearted, you have to want to change

performing very well and he had to look for

implementing. This may involve deciding

and you need to have a recognition and

lots of tiny changes (marginal gains) that

who will be responsible for change(s) and or

understanding of the skills (whether or not

would add up to a more significant change.

you possess them) required to make change

If your organisation is already performing

happen.

extremely well, this approach may suit you

department or a specific team? You may

best.

choose to allocate a team to each PFI or a team

Assuming you’re up for it and you are

specific plans.

• Who will be responsible… a person, a

committed to taking action, here are some

• For an organisation starting further down the

to oversee all PFIs. You may decide it is more

pointers that might help you on your way.

ladder, that is not performing quite so well,

fitting to put an individual in charge of each

it makes sense to concentrate on a smaller

PFI. To some extent the best approach may

number of larger scale changes that customers

depend what you intend to change and the

will be more likely to notice.

extent to which it requires specialist knowledge

Decide what to focus on • At TLF Research we present our clients with

• It is often sensible to focus on ‘quick wins’

or is based on specific relationships. It will also

Priorities for Improvement (PFIs), to get them

first to get some traction. ‘Quick wins’ can

started. These are changes that, based on

be identified by considering what changes

the survey results, we believe will deliver the

will have the strongest impact on customers

decide whether to ask for volunteers to get

greatest benefit to the organisation.

compared with the time and cost required to

involved with change or not. If you ask for

implement these changes. Let customers know

volunteers you may get those most enthused

selecting only two, three or four PFIs. This is

what changes you’ve made; they’ll want to

to make change putting themselves forward.

because, practically, there is a limit to how

know.

However, if you choose your team you can

• Our recommendations are usually based on

much change can be accomplished without spreading resources too thinly. Also, customers may not notice lots of small changes; they are more likely to notice more substantial changes.

• The area of focus needs to be appropriate for

depend on your staff resources.

• Volunteers or conscripts? You will need to

select those with the most suitable skills and attributes. Use your judgement.

• What will the rest of the organisation get told about change? Change may affect everyone in the organisation, whether they are involved

your organisation; this may mean focusing

in making change or are impacted by the

on areas that are most strongly linked to your

change. Be sure to consider how you are going

organisation’s vision or strategy. For example,

to position change to employees. The best

for some organisations this may mean

approach is to be positive and explain what is

focussing on a specific product or customer

happening and why so no one feels left out.

type.

8 Customer Insight Spring 2019 | www.tlfresearch.com

RESEARCH

Decide on the timescales and targets (you may choose to call them goals, aims or objectives) • You should have an end goal in mind but

Implement the plan

Finally, I said I’d come back to this (‘If your satisfaction scores are falling and you

• If you have thought through what you are

are taking action’). At some point you may

going to do sensibly then implementation

end up in a ‘state of flux’. At some time we

should not be too scary. If it is scary maybe you

have probably all been there to some extent.

It’s reassuring to know this isn’t an

consider how long it will take to agree on

haven’t planned it thoroughly enough? (The

focus, put together the team, write strategy

‘Proper Planning’ Ps, regardless of whether

imaginary state of chaos. There is a model to

and implement.

you go for the 4, 5 or 6 P version, are a cliché

describe what’s happening during this period

for a reason).

of change. In short, it is not unusual for

• Without timescales, change is likely to drift or it may not happen at all. The only way to keep

• Ideally, the plan has been developed through

things to get worse before they get better.

You will get through this and come out

a track on progress is to put timescales and

a collaboration which has involved those who

targets in place to understand what needs to be

are going to implement the plan being part

of the other side. It is useful to bear this in

accomplished and by when. Set milestones on

of the process. For example, who better to be

mind so a) the thought does not put you off

the way to the end goal.

involved in developing plans for the front line

taking action and b) when you enter this

than those front line employees who will be

state of flux do not give up or lose faith in

tasked with making it work.

what you are doing.

• Timescales should be realistic but you may opt to go for ‘challenging realistic’ or ‘comfortable realistic’. Timescales should fit the nature of

• Put the plans in place and start making the

With customer satisfaction there is a

the activity, the ability of those making change

changes outlined. Communicate and ensure

lag which means that it takes time before

and the culture of your organisation; some

everyone knows their role in the plan. Motivate

changes translate to improved customer

organisations are more bullish than others.

employees and secure ‘buy-in’ by explaining

satisfaction. In some case, scores get worse

Inappropriate timescales may demoralise

what is happening and why. Be sure to provide

(customers do not always like change) before

employees.

regular updates. Be honest; where set-backs

they get better.

occur face them and consider how to address.

Involve the right people. The owner(s) write the strategy and agree objectives • Change will be made easier if the ‘right’

probably heard this phrase a thousand times

maintain momentum.

but I still like it: “An inch of movement will bring you closer to your goals than a mile

Track progress and review.

Revise where necessary

of intention”. [Dr Steve Maraboli] Or, in the words of Nike (who no doubt paid millions to shorten this phrase): ‘Just do it’. [They came

people are involved. This is not about job title or even seniority. It’s about involving people

Finally, anyone who knows me has

It is also important to celebrate successes and

• Check progress and do not be afraid to amend

who can appreciate what is involved and what

plans if needed. However, do not take such

needs to happen for change to occur. This may

decisions lightly. All being well, if plans are

mean understanding internal relationships or

well constructed and thought through then

processes linked with the end goal.

amendments will be few and far between.

up with this in 1988]. If you don’t trust me, trust Nike.

• Involving those who know what is involved in making change will ensure a realistic and thorough action plan is put together.

• The strategy needs to include the formulation of a written plan that includes what will happen, when, who will do it, and how success will be determined.

Rachel Allen Client Manager TLF Research rachelallen@leadershipfactor.com

www.tlfresearch.com | Spring 2019 Customer Insight 9

L AT E S T T H I N K I N G

THEN

GRADUALLY SUDDENLY Culture change is something every business needs, but it can be frustratingly hard to pin down the best way to go about doing it. At TLF’s 2018 Client Conference I did my best to clarify what culture means, and to present some evidence on how to change it.

I took the phrase “Gradually, then suddenly” from an Ernest Hemingway novel, in which someone explains how they went bankrupt. I think it does a really good job of capturing our human tendency to put things off until they become impossible to ignore.

It also hints at the power of the compound effect spending just a little more than you can afford every day ends up being disastrous, and saving just a little might make you rich.

I’m going to argue that much the same is true of culture.

Why do we need culture change?

branch and starting again from scratch?

In my talk I used Darwin and Marx to Culture is of such pervasive importance that

exemplify those ideals of evolution and

we tend not to see it, just as fish don’t spend

revolution. Just how radically different

much time thinking about water. We become

were these two bearded nineteenth century

aware of culture when we want to change it, or

Londoners? One of them believed that the march

more to the point when we want to change the

of time would lead, inevitably, to radical change,

behaviours that the existing culture supports

whereas the other…um…well perhaps they’re

and allows. In our line of work, which is all

not so different after all. They even quite liked,

about changing behaviours to achieve a better

or at least were polite about, each other’s ideas.

experience for customers, it’s impossible for us to get away from culture.

Preconceptions have a lot to do with how we see Darwin and Marx. Far from being

It’s not that process has nothing to do with

opposed, there are obvious parallels between

customer satisfaction, employee engagement, or

Darwin and Marx. That’s not surprising—they

other outcomes; but people are not robots, and

were contempories who lived quite close to

you can’t programme them to rigidly follow a

each other. They were shaped by, if not quite

process (even if it was a good idea to try, which

the same forces, at least broadly similar social

it isn’t). Culture is a filter that affects everything

trends. They’re a good example, in fact, of

your organisation does.

how powerful the effect of culture can be,

What’s the best way to change that filter?

even in those who are consciously trying to

Is it a case of evolution, a slow and steady

analyse or transform it. But which approach to

movement in the right direction built on lots

culture change is more effective? Evolution or

of small adaptations; or is it more a case of

revolution? We’ll get to that, once we’ve figured

revolution, ripping the old culture out root and

out what we mean by “culture”.

Culture

People Outcomes

10 Customer Insight Spring 2019 | www.tlfresearch.com

Processes

L AT E S T T H I N K I N G

What is “culture”?

definitions like “the way we do things round

some Melanesian societies at the beginning of

here”. That does a good job of anchoring culture

the 20th century, where people created bamboo

“Culture eats strategy for breakfast.”

in behaviours, and implicitly in values, but I

airstrips, bamboo radar, and bamboo radios in

- Peter Drucker (attributed)

think it’s useful to take a broader look at what

the hope they could tempt planes into landing

culture is.

with their valuable cargo.

Your culture is probably more important than

Matthew Engelke, in his book Think Like An

We’re often guilty of practicing cargo cult

anything else about the way you do business.

Anthropologist, says that culture is “…a way

management, cherry picking processes (rituals),

Actually, you could argue that culture is the

of seeing things, a way of thinking. Culture

structures, and objects without understanding

way you go about doing your business. If you’re

is a way of making sense.” Anthropologists

how they do the job they do in the culture we’re

100% happy with everything your business does,

also often talk about material culture, which

lifting them from. Understanding that culture

the way you and your colleagues work together,

is a fancy way of saying “stuff”. The objects

is not the objects and rituals themselves, but

and your relationship with customers then feel

of a culture are as critical to understanding it

what they mean to people, makes it clear why

free to stop reading, but hopefully nobody is

as its rituals and taboos; but it is the meaning

it’s never as simple as copying what works in

100% happy with where their business is.

of these, the “making sense”, that is crucial.

other organisations and pasting it into ours.

Culture isn’t the one magic solution to all

Culture helps us to create meaning from the

Similarly, I don’t think “the way we do things

problems, but it is a factor in any change. A

objects we live and work with, and from the

around here” is actually a very good definition of

Towers Watson survey showed that only 25% of

ways we behave.

culture, or it would be relatively easy to change.

change initiatives succeed over the long term.

This is really important. It explains why

Culture is what the things we do mean to us.

Why? StrategyQ found that the 2 main reasons

it doesn’t work if you try to copy the surface

It’s a shared way of making sense and finding

employees say they resist change is that they

trappings of organisations you want to emulate.

meaning, and it’s an emergent property of

don’t understand it, or they flat out disagree

If you want to have the engagement of John

any community, not something that can be

with it (44% and 33% respectively). The problem

Lewis, you can’t get there just by calling your

controlled or created.

is culture.

staff “partners”. If you want to be as innovative

There are many different models of

To quote Marcella Bremer, “All change is

as Google, it won’t happen just because you

organisational culture. One that I like for its

culture change, or it won’t work”. So if you’re

implement 20% time (and incidentally even

simplicity is the OCAI, based on the competing

still reading, you need culture change. That

Google have abandoned that!)

values framework, which identifies four types of

doesn’t mean where you are is a disaster, just

Richard Feynman used to talk about cargo

culture based on two underlying dimensions. All

cult science, as a way to describe people who

four culture types can manifest in ways which

If we’re going to talk about changing culture,

adopt the trappings of the scientific method

are healthy or unhealthy, but mapping the

we’d better start by understanding what it

without really applying its principles. The name

landscape is an important first step towards

is we’re talking about. People tend to use

comes from the cargo cults that sprang up in

change.

that we could imagine it being better.

www.tlfresearch.com | Spring 2019 Customer Insight 11

L AT E S T T H I N K I N G

Flexibility & discretion

Clan (collaborate)

Adhocracy (create)

External focus & differentiation

Internal focus & integration

Hierarchy (control)

Market (compete)

Stability & control

Source: ocai-online.com

You might like to think about where

Based on which quadrant you put yourself in

Meetings are the windows to a culture’s soul. Is

your organisation (or team, or department)

you might be the “Clan” culture type, friendly

there a rigid agenda, or is it more free-flowing?

sits at the moment. The model consists of

and people-focused; an “Adhocracy”, dynamic,

Does everyone take part? Is there a clear sense

a vertical continuum from “flexibility and

creative and entrepreneurial; a “Market”

of hierarchy? Is it all about the numbers?

discretion” (you all do what you think is best,

culture, results-oriented and competitive; or

You can see that each culture type has pros

lots of empowerment, but perhaps not much

a “Hierarchy”, process-centred and highly

and cons, but the OCAI’s data shows that when

consistency) to “stability and control” (lots of

structured. I asked the audience at the

asked for their views on current and desired

rules and process, little room for judgement).

conference where they would put themselves,

type, most people would rather work in an

And the horizontal axis goes from “internal focus

and it probably won’t surprise you that the

environment that was less process and market-

and integration” (inward looking and focused

Market and Hierarchy culture types dominated.

oriented, and had more room for people and

on harmony or structure) to “external focus

If you’re not sure, one of the best ways

creativity. The question is, how do we get from

and differentiation” (outward looking, focused

to work it out is to observe one of your

on shaking things up, innovation or outcomes).

organisation’s meetings with an analytical eye.

12 Customer Insight Spring 2019 | www.tlfresearch.com

here to there?

L AT E S T T H I N K I N G

Revolution What often happens is that a leader will try to

An example of this kind of top-down approach

drive through their vision of what a successful

to culture change is Jeroen van der Veer’s

culture should look like. They try to lead a

tenure at Shell from 2004 to 2009, where he

revolution. How well does that work? I think

forced through a programme of standardisation

it depends.

across the world. Facing resistance from some

Leaders have a range of tools at their disposal

countries, it was essential to use power tools to

to try to get people to behave the way they

force through changes that would benefit Shell

want. Steve Denning groups them into three

globally, even if it meant losing market share

tiers - leadership tools, management tools,

in some local markets.

and power tools. That doesn’t mean a trip to

Another new CEO, Antonio Horta-Osorio

B&Q, it means using coercion, threats, and

had a similar situation in bringing together and

punishment to enforce your will, and it’s very

modernising the various UK financial institutions

easy to default to.

that Santander had acquired. A combination of

You don’t have to be a tyrant to fall into this trap. As a leader you can specify exactly

forceful management and clear communication allowed him to embed a new culture.

how you want everyone to behave, make sure

What if you want to lead your organisation

everyone is accountable for their own behaviour,

towards one of the culture types at the top of

and use discussion about those behaviours in

the chart? You need to start thinking differently.

coaching and so on.

You won’t be able to make change happen.

Will that work? Well, it will definitely foster a certain type of culture. That approach is almost

“Instant cultures are artificial cultures…

bound to lead you to a culture that would fall

Artificial culture is paint. Real culture is

in the bottom half of the OCAI framework.

patina. You don’t create a culture.

Pretty much by definition, if you try to instil a

It happens.” - ReWork

culture in which your ideas about behaviours are policed or measured then you will end up with a hierarchy or market type of culture.

If you want culture change to stick it can’t be something that is simply done overnight. You can’t

That isn’t necessarily a bad thing. There are

make one big change, whether it’s to structure, or

good and happy cultures that fit those types.

working practices, or what your mission statement

The army is an obvious example of a very

is, and expect it to change the deep and shared

hierarchical culture that can be a great place

sense-making machinery inside your people’s

to work, for the right kind of people. A lot of

heads. One offsite is simply not going to cut it.

sales people would be happiest in a strongly

Revolutions, after all, are about the people.

market culture – “I don’t need a hug, pay me

If you try to force it through, however good

on my results”. It’s not the case that there are

your intentions, there’s a real danger you end

“bad” culture types and “good” culture types,

up betraying the revolution and becoming a

they all have a good side and a bad side.

tyrant. Not so much Marx as Stalin.

www.tlfresearch.com | Spring 2019 Customer Insight 13

L AT E S T T H I N K I N G

Evolution So perhaps evolution is the way to go? It’s certainly true that culture, like evolution, takes

let all these other people decide what the new

again, but with a humbler vision of what they

culture should be like?

can do.

time to change. It’s an accumulation of lots of

Bremer comments that managing culture is

small adaptations in the thinking and behaviour

“Evolution never looks to the future.”

like gardening. You can’t control culture, but

of everyone in the organisation. It has to be

- Richard Dawkins

you can control the environment that influences

collective and collaborative.

it. Office design is the most literal example of

Marcella Bremer outlines 7 Cs of culture

The problem with evolution, as Dawkins

this. If you want to foster collaboration and

change - Commitment, Clarity, Consensus,

points out, is that it doesn’t know where

creativity, then you need the right kind of space

Communication, Copy/Coach/Correct, Critical

it’s going. It doesn’t look to the future. It

sending the right kind of signals. But beware

Mass, and Consistency. Perhaps the most

doesn’t have a purpose or a goal. Evolution

of the cargo cult effect, there’s no point having

important is Consensus, successful change

shapes organisms to be “fitter”, to thrive

an exciting collaborative space if your people

has to be bottom-up, including everyone. But

more effectively in their environment. As the

are all individualists rewarded for individual

that seems to introduce a paradox - how can

environment changes, organisms evolve in

attainment. If it doesn’t fit into the right

I make the change I want to see happen if I

response—that’s where the leader comes in

context, your groovy pods will stay empty.

Culture change How does culture change happen? Evolution is, famously, an extraordinarily slow process.

Do we have to wait generations for the small changes to accumulate and get us where we need to get to? Not necessarily. When artificial life researchers started trying to replicate evolution in what they called “genetic algorithms” in slowly improving bit by bit, the performance of their algorithms seemed to jump forward. They found a graph that looked like this.

Interestingly, that coincides rather neatly with what some biologists think happens in nature,

Performance

the 1980s they discovered that, rather than

which they call “punctuated equilibrium”. As Stephen Jay Gould said, evolution is a climb up a staircase, not a gradual uphill slide. Unlike the biologists the artificial life people are able to peer inside their “organisms” and understand what’s happening at the level of the genes, and what they found is that although evolutionary changes at that level are always happening it often takes an accumulation of lots of changes working together and interacting to create an observable difference in fitness.

14 Customer Insight Spring 2019 | www.tlfresearch.com

Generation Source: Stephen Levy, Artificial Life

L AT E S T T H I N K I N G

“Punctuated equilibrium, in particular, is a claim that evolutionary trends have a geometry that resembles

our own heads. The first step is to change your own behaviours.

Finally, don’t forget the importance of

a climb up a staircase rather than a

environment in shaping the way culture

slide up an inclined plane.”

evolves. That doesn’t just mean your office

- Stephen Jay Gould

space, although that is important, but the whole “material culture” of objects and structures,

This is an effect called “epistasis”,

processes and targets, that provide context for

and I think it is a profound metaphor for

our working lives. How do they help or hinder

organisational culture. They’re evolving and

our desired culture?

changing all the time, but visible change is

The only way to achieve lasting culture

rare and looks deceptively revolutionary.

change is to embrace the interacting, emergent,

How does culture change happen? Gradually,

nature of epistasis and punctuated equilibrium.

then suddenly. Like punctuated equilibrium,

Like Darwin’s theory of speciation by natural

it’s an emergent phenomenon built on the

selection, or Marx’s theory of revolution arising

interaction of innumerable small behavioural

from social evolution, if you commit to it you’ll

and environmental changes.

see it happen…gradually, then suddenly.

If you want to accelerate the process, you have basically two options. Lead a revolution, but live with the knowledge that will inevitably take you down a path towards a hierarchical or

Stephen Hampshire

market type of culture. Or turn the conversation

Client Manager

on its head, and start listening and reflecting

TLF Research

on your own behaviour. If you want to move

stephenhampshire@leadershipfactor.com

the culture towards collaboration or creativity, it starts with humility. The revolution will take you, step by step, where you and your colleagues collectively decide. A Journal of Management article found that humble leaders are more likely to lead collaborative organisations, had lower turnover, higher satisfaction, more innovation, and greater shared vision. In other words, they led cultures that were more collaborative and creative.

So you have to work together. The starting point is a clear map of where you are now.

Something like the OCAI framework is a useful way to think about that. Then you need to know where you want to get to. Based on that aim you can begin to identify and agree the behaviours that will get you there, and commit to individual ones. The revolution starts, for all of us, inside

www.tlfresearch.com | Spring 2019 Customer Insight 15

F E AT U R E

The World’s Most Admired Companies

Every year since 1997 FORTUNE has published a list of the world’s most admired companies. The full list is available at: http://fortune.com/ worlds-most-admired-companies

The Methodology • The list is based on a survey of executives at eligible companies and financial analysts, to understand which companies have a good reputation within their own industries and across industries.

• Companies need to be among the biggest in their industry, with revenues of $10 billion plus.

• 15,000 people invited to take part from 476 US companies and 199 companies in 28 other countries.

We thought it would be interesting to take a look at the top 10, and unpack what it is that makes them so admired. How do the FORTUNE results tally with other sources of information such as customer satisfaction benchmarks, brand perception studies, and employment surveys? What is it that makes an organisation admired by its peers? What can we learn from the success of these businesses?

• Companies are rated on 9 attributes, with the overall reputation score being an average of the 9.

1. Innovation 2. People Management 3. Use of Corporate Assets 4. Social Responsibility 5. Quality of Management 6. Financial Soundness 7. Long-Term Investment Value 8. Quality of Products/Services 9. Global Competitiveness • The “all-star” list is rated separately from the industry lists, and reflects cross-sector reputation – each respondent chooses the 10 companies they admire most (in other words you can be an all-star without being most admired within your own industry).

16 Customer Insight Spring 2019 | www.tlfresearch.com

F E AT U R E

1.

3.

Apple OVERALL SCORE (FROM INDUSTRY PEERS): 8.4

Of course it’s Apple. Apple is the world’s largest information

Berkshire Hathaway OVERALL SCORE: 7.7

Although not a household name, Berkshire Hathaway is the third

technology company, and its third largest mobile phone

largest public company in the world. It’s best known because of

manufacturer. The iTunes store is the world’s largest music retailer.

its Chairman, Warren Buffet, who is regarded with reverence as an

It’s the world’s most valuable brand. It tops the personal computers

investor of oracular wisdom. Buffet is famous for “value investing”,

sector in ACSI1, and is regularly quoted for its high NPS and customer

i.e. buying stocks that seem undervalued, but in reality his approach

loyalty. In the most admired survey respondents ranked it first in the

has been to find companies that he believes will offer long-term and

industry for all nine attributes (as shown in the diagram).

sustainable competitive advantage at a fair price. If this magazine had a motto for investors, it would probably be his “It’s better to buy a

Innovation

great company at a fair price, than a fair company at a great price.”

1

Global Competitiveness

1 2

1

1

3

People Management

1 2

4

Global Competitiveness

5 6

Quality of Products/ Services

7 8

1

Long-Term Investment Value

1

9 10

Use of Corporate Assets

3

1

3

3

1

1

1

5 6

Quality of Products/ Services

Social Responsibility

Long-Term Investment Value

Quality of Management

7 8

2

1

9 10

OVERALL SCORE: 8.3

The other giant of our times, Amazon is the largest internet

Use of Corporate Assets

Social Responsibility

1

Financial Soundness

Apple’s industry rank

Amazon

People Management

4

6

1

Financial Soundness

2.

Innovation

1

1

Quality of Management

Berkshire Hathaway’s industry rank

4.

Walt Disney OVERALL SCORE: 8.4

When we think of Disney, we tend to think of Mickey Mouse and

company in the world. Like Apple it straddles different industries

Disneyland, but the entertainment behemoth has grown far beyond

from consumer electronics to retail and entertainment, although it’s

that. With existing revenues of $60 billion, its 2019 acquisition of

arguably even more ambitious in terms of publishing and creating

21st Century Fox will make it even more powerful. It also seems to

video content for its entertainment channels.

be committing to the Disney+ streaming service, and will not be

Customers love Amazon. It tops the internet retailers sector

renewing its contract with Netflix after 2019.

in ACSI (2 points above Apple in that sector), and also scores

Innovation

consistently near the top of UKCSI2. But it’s important to remember that Amazon is much more than an online retailer and streaming service. Its cloud platform is the largest in the world, and it is

Global Competitiveness

1

1

and JPMorgan (also members of the top 10).

1

3

People Management

4 5

constantly pushing into new markets, most recently with the launch of “Haven” - a healthcare joint venture with Berkshire Hathaway

2

2

6 7

Quality of Products/ Services

2

Long-Term Investment Value

1

8

1

9 10

1

Financial Soundness

1

1

Use of Corporate Assets

Social Responsibility

Quality of Management

Walt Disney’s industry rank 1

https://www.theacsi.org/ 2 https://www.instituteofcustomerservice.com/uk-customer-satisfaction-index

www.tlfresearch.com | Spring 2019 Customer Insight 17

F E AT U R E

5.

7.

Starbucks OVERALL SCORE: 7.9

A successful Seattle business in the 1980s, Starbucks has seen

Alphabet OVERALL SCORE: 8.2

Alphabet is Google’s holding company, created in 2015. For 2 brief

almost unbelievable growth since the early 1990s. At its IPO in 1992

days in 2016, Alphabet was the world’s most valuable publicly traded

Starbucks had 140 outlets, and revenues of $73.5 million. That’s now

company, before Apple took back the lead. With a radically different

more than 27,000 locations across 76 countries, with a revenue of

business model from most of the other top 10, Alphabet’s 2017 annual

over $20 billion. Unlike other businesses in this list, it doesn’t top its

report shows that 86% of its revenues are from advertising. Google

category in ACSI, although its score of 78 is above the overall average

tops the search engines sector on ACSI, and comes in at number 5 in

of 76.6.

YouGov’s BrandIndex, showing its strong position with consumers.

Innovation 1 1 2

Global Competitiveness

1

3

2

People Management

Netflix OVERALL SCORE: 7.6

4 5

Over 148 million people worldwide subscribe to Netflix, which has

6

Quality of Products/ Services

8.

7 8

1

1

9 10

Use of Corporate Assets

grown from its roots as a DVD rental service by mail to not just the dominant streaming service, but also a significant content creator (with a haul of Emmys and even an Oscar in the trophy cabinet).

Long-Term Investment Value

1

Social Responsibility

1

Financial Soundness

2

1

Quality of Management

Netflix is an enormous global business, with revenues of over $15 billion, but its cultural impact is hard to quantify. It has changed the way we watch TV, the formats that will work, and the funding models that support new shows, and we love it. It tops the new streaming services sector of ACSI, and is number 2 in BrandIndex.

Starbuck’s industry rank

6.

Innovation 1

Microsoft

1

Global Competitiveness

OVERALL SCORE: 8.2

2

2

3

People Management

2

4 5

I am, of course, typing this using Microsoft software on a Microsoft operating system. I’m not using Microsoft hardware, but I might be.

Microsoft is the most valuable public company in the world, and it continues to dominate the world of software. Given previous misfires in consumer electronics, the success of its Surface range is notable, and the Xbox continues to slug it out with Sony’s Playstation for the console market.

1 3

2

4

People Management

5 6

Quality of Products/ Services Long-Term Investment Value

7 8

2

1

9 10

2

1

Financial Soundness

1

7 8

1

Long-Term Investment Value

2

9 10

3

4 6

Financial Soundness

1

Use of Corporate Assets

Social Responsibility

Quality of Management

Microsoft’s industry rank

18 Customer Insight Spring 2019 | www.tlfresearch.com

Use of Corporate Assets

Social Responsibility

Quality of Management

Netflix’s industry rank

1 2

1

Quality of Products/ Services

2

Innovation Global Competitiveness

6

9.

10.

JPMorgan Chase OVERALL SCORE: 7.1

Fedex OVERALL SCORE: 6.5

The largest bank in the US has two colossal subsidiaries – JPMorgan

Fred Smith came up with the initial concept that underpins FedEx’s

looking after investment banking, wealth management, etc; and Chase

success while he was an undergraduate at Yale. He saw that speed was

as its consumer and commercial banking proposition. It remains a

increasingly important, a need which only air transport could meet,

megabank in a world which, after 2008, is understandably suspicious

but that the existing air cargo industry was out of date and inflexible.

of banks which are seen as “too big to fail.” JPMorgan Chase emerged

In a paper he proposed a new model, with one carrier looking after

from the storm in a relatively strong position (what the CEO Jamie

the package from pick-up to delivery, operating all its own aircraft

Dimon famously described as a “fortress balance sheet”). Whatever

and vehicles. Legend has it he was given a C, but whatever his grade

the regulatory landscape, this is a company committed to the benefits

Smith stuck with his idea. In the early 1970s he started building the

of size and broad scope.

business, now with revenues over $65 billion.

Chase is ranked 4th by consumers in its sector on ACSI, a

Compared to the other all-star companies, FedEx is not rated all

surprisingly fragmented sector with the number one spot taken by

that strongly by its peers (ranking 2nd for every attribute), and with a

“All others”.

relatively low average score of 6.5. Its appearance on the all-star top 10 shows that it’s more admired by those outside the industy.

Innovation 1 1

Global Competitiveness

2

1

3

2

People Management

4 5 6

Quality of Products/ Services

7

Long-Term Investment Value

1

9 10

2

1

Financial Soundness

1

Global Competitiveness

2

3

2

2

4

People Management

5

8

1

Innovation 1 2

1

Use of Corporate Assets

Social Responsibility

6

Quality of Products/ Services Long-Term Investment Value

Quality of Management

7 8

2

2

2

Financial Soundness

JPMorgan Chase’s industry rank

Use of Corporate Assets

2

9 10

2

2

Social Responsibility

Quality of Management

FedEx’s industry rank

Conclusions • What can we learn from the most admired companies? Well, it helps to be a colossal US corporation…but there’s not much most of us can do to emulate that. There’s a notable dominance for companies which own marketplaces (Amazon/iTunes/Alphabet) and publishing (Disney/Amazon/ Netflix).

• There does seem to be a US bias to the results, despite making the effort to include respondents from other countries, but in many respects that simply reflects the fact that the USA dominated world commerce through the 20th century, and continues to dominate the technology market.

• Are the nine attributes on which the companies are scored the right ones? The list was developed in the mid 1980s, and although they seem pretty sensible, I wonder if the list would be same if we were starting today?

• Most striking of all, I think, is that although the top 10 feature strongly in ACSI, UKCSI, BrandIndex and other measures of consumer regard, none appear in the top 20 of FORTUNE’S Best Companies to work for3 or in the Times top 25 Best Big Companies to work for4. I can’t help feeling that’s a point that some of the new tech giants will need to address if they’re going to be sustainable.

3 4

http://fortune.com/best-companies/list https://appointments.thetimes.co.uk/article/best100companies/

www.tlfresearch.com | Spring 2019 Customer Insight 19

RESEARCH

TIME TO JOIN THE PODCAST BANDWAGON ?

“What do you call a gathering of two or more middle-aged white guys? A podcast.”

It’s easy to poke fun at podcasts. There’s

If you fancy giving it a go too, here are our 7 top tips for starting a podcast: • Plan your format. After a couple of false starts,

an inevitable danger of pomposity when

we settled on (mostly) two people chatting,

you record yourself having a chat and then

with a little bit of prep but not so much that it

assume that the rest of the world is going to be interested in listening. On the other hand, podcast listening figures are going from strength to strength, and major advertisers are beginning to see the potential they offer to reach an interested, targeted, audience.

The beauty of podcasts is that they’re easy for people to access on demand, to download for listening to on a train or in the car, and to find content that matches exactly what they’re interested in.

Our research with TLF Panel members, summarised in the infographic opposite,

would sound over-rehearsed.

• Find your tone. We try to reach a balance between professional and informal…you’ll have to tell us if we get that right or not.

• Script the beginning and ending. It may not sound like it, but we do have a script for the opening and close of each episode. These are probably the hardest bits to do well if you try to ad-lib.

• Find somewhere quiet to record with soft furnishings. We still struggle with this one in the office.

• Use decent equipment. We now use an

shows that more people than you might think

audio recorder with two lapel mics, but got

are listening to at least one of the over half

reasonable results to begin with using a cheap

a million podcasts that are now out there.

With so much choice there’s almost bound

voice recorder.

• You don’t need fancy software. We use

to be one for you, and for your customers or

Audacity, which is free, and there are plenty

potential customers.

of other free alternatives which do the job just

We decided to launch a podcast of our own, which is up to Episode 16 as I write, and

fine.

• Publishing is pretty simple – you just need a

we’re hoping that it will go on to form a key

host and an RSS feed. We’re still using a free

part of our customer engagement and content

Wordpress blog to publish ours, although we’re

marketing strategy going forward.

planning to change that soon.

20 Customer Insight Spring 2019 | www.tlfresearch.com

RESEARCH

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­

­

­

­

­

­

­

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RESEARCH

TLF GEMS NEWSLETTER MONTHLY CX INSIGHTS FROM TLF RESEARCH

Our monthly newsletter shares our favourite Customer Experience, Insight, and Service Design highlights.

Sign up to receive our newsletter at www.tlfresearch.com/customer-insight-subscription

TLF GEMS PODCAST

A MONTHLY PODCAST FROM TLF RESEARCH ON CUSTOMER EXPERIENCE AND INSIGHT

If you’re reading this and you like podcasts, you should definitely check out the TLF Gems podcast. Each episode Stephen and Greg talk about a different topic related to Customer Experience research and insight.

Search “TLF Gems” in iTunes or subscribe directly using the feed http://feeds.feedburner.com/tlfgemspodcast

CUSTOMER JOURNEY MAPPING FULL DAY PRACTICAL TRAINING COURSE

Customer Journey Mapping is an essential step in gaining control of the customer experience. It is a great way to help staff understand customers, how they may be feeling at each stage of the journey, and what makes the difference between a good and bad experience.

This practical full day workshop outlines the steps you will need to follow to effectively map your customers’ journeys.

AGENDA:

OUTCOME:

· I dentify which journeys needs to be mapped

Step by step guide of how to map your customer journey template with examples of customer journeys.

·Q ualitative research to understand the journey ·Q uantify the journey with customer research and internal data · Deciding what to include and exclude

DATES: 16th May 2019 London

·C reating a shared visual understanding of the journey ·U sing journey information to design processes for customers · Examples of customer journey maps

09:15 - 16:30

£300 (ex VAT)

Book online at tlfresearch.com or call 01484 467000

RESEARCH

THE POWER OF TRUST IN THE CHARITY SECTOR ‘Charity begins at home’, or so the saying

Public confidence in charities has been

goes, meaning you should take care of your

shaken by scandals in the sector over the last

own family and those close to you before caring

few years, with calls for more transparency

for others. It’s a phrase often bandied around

and accountability growing in number and

whenever charity is mentioned, and one I’m

urgency. To gauge the public’s opinion we used

sure charities dread hearing.

the TLF Panel and asked nearly 3,000 of our

2018 was a tough year for charities, and

panellists about their experiences of dealing

2019 doesn’t look like it will be any easier.

with charities—what they liked and disliked,

With the cost of living increasing and wages

who they donated to, and what could be done

still struggling to catch up, when the belts are

to increase the frequency and/or amount people

tightened often the first thing to go is any form

donated. Some results were expected—no-one

of charitable donation (along with the well-

enjoys being stopped by charity workers, or

intentioned gym membership that seemed like

‘chuggers’, in the street—but others were a

a good idea in January!)

surprise, keep reading to find out more…

24 Customer Insight Spring 2019 | www.tlfresearch.com

RESEARCH

Most give to charity To get the ball rolling, and to give us a feel for how charitable the panel are, we first asked: “Have you donated to charity in the last 2 years? …and it’s safe to say that our panel are a generous bunch, with 85% of them saying yes! Interestingly, of the cities we surveyed the

I don’t trust them

I can’t afford to

most generous one was Southampton, with 90%

I prefer to contribute in a different way

I don’t like being hounded for donations

of Sotonians saying they have donated

I haven’t found a cause I wanted to donate to

Other

within the last 2 years, compared to the least generous city which was Liverpool with a still

Figure 1: What is the main reason you haven’t donated to charity in the last 2 years

respectable 80%.

Barriers to giving “What is the main reason you haven’t donated to charity in the last 2 years?”

We asked the 15% who hadn’t given to charity what stopped them. As Figure 1 shows,

60% 50% 40% I can’t afford to I don’t trust them

30% 20%

I don’t like being hounded for donations I prefer to contribute in a different way

the main reason people hadn’t contributed to charity in the last 2 years was that they couldn’t afford to. Interestingly, the results

10% 0%

change quite significantly when broken down

Male

Female

by gender, as shown in Figure 2. 15% of women Figure 2: Main reason for not donating, split by gender

say they haven’t donated because they don’t trust charities, but men have much bigger trust issues, with over double the amount claiming distrust, at 32.4%!

There are big differences between young people and the over 65s too, as shown in Figure 3. Charities face different challenges in overcoming the barriers to donation for different age groups, with trust being a much bigger issue for the over 65s and lack of disposable income the biggest barrier for 18–24s. That suggests they should focus on winning the trust of older generations who have more disposable income, and perhaps looking for more intangible help from younger people.

100 80% 60% 40% 20% 0% 18-24

65+

I don’t trust them

I can’t afford to

I prefer to contribute in a different way

I don’t like being hounded for donations

Figure 3: Main reason for not donating, split by age

www.tlfresearch.com | Spring 2019 Customer Insight 25

0% Figure 4: Charity most recently donated to

26 Customer Insight Spring 2019 | www.tlfresearch.com

Sightsavers - 1%

WWF - 1%

RSPB - 1%

Age UK - 1%

UNICEF - 2%

Christian Aid - 2%

Barnardo's - 2%

2%

Guide Dogs for the Blind - 2%

RNLI - 2%

4%

between age groups, gender or location.

Dogs Trust -

6%

top few. These results did not differ dramatically

NSPCC - 3%

8%

in Figure 4, showing the rapid drop off after the

Salvation Army - 3%

10%

most recent donations. The full picture is shown

Marie Curie Cancer Care - 3%

12%

top 3 dominated, with a share of over 40% of

Save the Children - 3%

14%

they donated to the last time they donated. The

British Red Cross - 3%

16%

Of the 85% that had donated to charity in the last 2 years, we asked them which charity it was

RSPCA - 4%

18%

“Charity should begin at home, but not stay there” – Phillips Brooks

Oxfam - 5%

20%

Who do we give to?

British Heart Foundation - 11%

22%

Macmillan Cancer Support - 12%

24%

Cancer Research - 18%

RESEARCH

RESEARCH

Trust “I’m not upset that you lied to me, I’m upset that from now on I can’t believe you” - Friedrich Nietzsche After discovering how many of the panel had

Although men had bigger trust issues when

donated to charity, to which causes, and what

it came to our earlier question asking why they

prevents some from doing so at all, we asked…

hadn’t donated in the last 2 years, it seems that once they trust a charity enough to donate they

“In general, do you trust that charities spend

are also more trusting with how the charity

donations in an appropriate manner?”

spends the money, with 58% of men trusting how charities spend their money compared to

Even after the scandals in recent years,

only 51% of women.

it looks like the public’s confidence in how

When broken down by age the results are

charities spend their money has not been

very interesting, with a staggering 71% of 18-24

drastically affected—54% of people said that

year olds saying they trust how charities spend

they trust how charities spend their money,

their donations, compared to 50% of over 65s.

and only 24% don’t.

Figure 5: Do you trust that charities spend donations in an appropriate manner, split by age

80% 70% 60% 50% 40% 30% 20% 10% 0% 18-24

65+ Yes

No

www.tlfresearch.com | Spring 2019 Customer Insight 27

RESEARCH

Figure 6: Why do you trust charities?

65%

Good reputation

They support a cause I am interested in

41%

40%

Positive brand perception

Appropriate fundraising techniques

25%

Transparency

None of the above

“Which major charity do you trust the most?”

24%

2%

“Which major charity do you trust the least?”

“How have the recent headlines in the news about charities influenced your trust in them?”

The most trusted charity was Cancer

Now we have established the most trusted

Research, with 16% of the vote, closely followed

charity, it was time to discover the dreaded

45% said they trust them less, with only 8%

by Macmillan Cancer Support with 15% and then

least trusted one. Perhaps related to recent news

saying they trust them more. These figures serve

British Heart Foundation with 9%. This order

coverage, Oxfam was the least trusted with 35%

to highlight the fact that, with public confidence

mirrors the top 3 charities people had donated

of the vote. A tough few years, with Oxfam

in charities at a low ebb, now is a good time for

to in the last year, showing that, perhaps

being in the headlines on several occasions, has

them to work on brand image and reputation.

obviously, the more trusted charities receive

seriously tarnished the charity’s reputation, and

more donations—image really is key.

this really matters to donors.

This is borne out by the reasons given for trusting charities, which fell into 5 main categories as shown in Figure 6. Reputation and brand perception dominate, along with supporting a cause that the donor is interested in.

28 Customer Insight Spring 2019 | www.tlfresearch.com

RESEARCH

The financial impact of trust Finally, we asked the panel what charities

Figure 7: What could charities do to increase the frequency/chance of you donating to them?

Be more transparent with how your money is spent

could do to increase the frequency/chance of

55%

receiving donations. They were given a variety of options and could pick as many of them as they deemed appropriate. The results, in descending order, with the most popular at the top and least

Offer more variety in the amount(s) you can pay

popular at the bottom are shown in Figure 7.

26%

Any change to advertising, according to our panellists, is not the answer. Instead charities should start moving their focus into different fundraising techniques and ways/amounts

Change their fundraising techniques

donors can pay, as these 3 options are very

22%

popular with people, taking spots 2, 3 and 4 on the list.

But the key take away here is that, by quite

Offer more variety in the way in which you can pay

some way, the one thing charities could do to increase donations is be more transparent with

15%

how they spend their money. It looks like it would certainly be of benefit to both charities and their prospective donors.

Provide frequent, easily available newsletters

14% Tom Kiralfy Panel Manager

Advertise less

TLF Panel

12%

tom@tlfpanel.com

Advertise more

7% Other

7%

www.tlfresearch.com | Spring 2019 Customer Insight 29

RESEARCH

JANUARY 2019 U The UKCSI is the benchmark measure of customer satisfaction across 13 sectors of the UK economy, conducted by The Institute of Customer Service. For over a decade it has provided us with a biannual snapshot of how UK consumers are feeling. The Institute tell us that “The UK Customer Satisfaction Index gives a unique insight into the quality of

Latest Headline Results The latest UKCSI report was released at the end of January 2019. We’ve pulled together some of the highlights. The full report, published by The Institute, is available to download free on their website.* For more detail, including scores for all

customer service in your sector. So you can see who’s leading

named organisations, it is also possible to

the pack, and how you measure up.”

purchase in-depth reports on each sector.

Updated Customer Priorities In August and September 2018, The Institute undertook some research into customer priorities across the 13 sectors. The January 2019 UKCSI therefore reflects current customer needs, whilst providing a consistent benchmark.

The research reaffirmed that customers’ most important stated priorities are for product/

UKCSI Scorecard

service reliability and quality, employee competence, attitude and helpfulness. However,

Experience • Product/service range • Product/service quality • Product/service reliability • Being kept informed • Ease of dealing with XX • Billing • Price/cost • Speed of service/response • Helpfulness of staff • Competence of staff • Ease of using the website • XX makes it easy to contact the right person to help • XX explains information clearly

Emotional Connection • You trust XX • XX makes you feel reassured

the new research also highlighted a broader range of emotional and attitudinal attributes that influence relationships and satisfaction with organisations. They include feeling reassured; expectations being met; promises

Customer Ethos

UKCSI Overall

Complaints • The outcome of the complaint • The handling of the complaint • The attitude of staff • Speed of resolving your complaint

• Ability to interact with XX in the way you prefer • Cares about their customers • XX keeps their promises • XX designs the experience around customers

Ethics • Reputation of the organisation • Open and transparent • XX does the right thing in business practices

being kept; an organisation’s ethics and the feeling that it designs experiences around the needs of its customers.

Customer Experience Scorecard In order to reflect both customers’ transactional and relationship needs, The Institute have introduced a customer experience scorecard. The overall customer satisfaction measured by the UKCSI is based on five dimensions: experiences with organisations; and perceptions about an organisation’s customer ethos, ethics and emotional connection.

*https://www.instituteofcustomerservice.com/uk-customer-satisfaction-index

30 Customer Insight Spring 2019 | www.tlfresearch.com

RESEARCH

9 UKCSI Overall Satisfaction: What is the State of the Nation?

What does the UKCSI tell us?

The UKCSI methodology

The UKCSI continues to show the importance

Twice a year TLF Panel, on behalf of

There has been another slight fall in average

of customer experience, and the strength of the

the Institute, conducts an online survey of

levels of customer satisfaction The UKCSI is now

links between customer satisfaction, loyalty,

its nationally-representative panel of UK

77.7, 0.4 points lower than a year ago. Customer

and market performance. Organisations which

consumers. Panellists are asked to rate their

satisfaction is at its lowest point since July 2016.

consistently outperform their sector show

experiences of a particular organisation they

In this UKCSI, first direct is the most highly

stronger growth and sales, as well as improved

have dealt with in the previous 3 months with

rated organisation for customer satisfaction,

levels of trust and reputation. UKCSI should be

the UKCSI score for each company being the

followed by John Lewis, M&S (bank), Next and

seen as the best indicator of how good a job UK

average of its customers’ satisfaction scores, and

Amazon.co.uk.

companies are doing of meeting their customers’

the score for each sector being the average of

needs. If the slight dip we’ve seen over the last

all customers within that sector. The results for

two waves continues then we can expect to see

January 2019 are based on 45,000 responses

a serious impact on the performance of those

in total, 3,000 from each sector except for

organisations who are letting their customers

Transport and Utilities which are based on 6,000

down. As ever, though, some organisations

responses each. The questionnaire is scored by

and even some sectors are

customers on a 1-10 scale.

78.2

77.9

77.4

77.1

77.8

78.2 78.1

77.9

77.7

77.0 76.3 76.0

76.2

72.0

Jan-09

Jan-13

Jan-15

Jan-19

able to buck the trend, and will reap the rewards of

Satisfaction by Sector

their investment in the customer.

On the whole, the scores by sector have remained consistent to a year ago. Only three sectors – Insurance, Services and Transport – have moved by more than one point. Insurance has seen an uplift of 1.1 points compared to a year ago, with some of the biggest areas of improvement being for complaint handling and the number of experiences rated as right first time. The declining trend in Transport has continued. Its UKCSI score of 71.8 is 1.9 points lower than a year ago.

Customer satisfaction in the Transport sector is at its lowest since July 2009.

Sarah Stainthorpe Client Manager TLF Research sarahstainthorpe@leadershipfactor.com

www.tlfresearch.com | Spring 2019 Customer Insight 31

BOOK REVIEW

01

Predatory Thinking Dave Trott’s “Predatory Thinking” was our inaugural book, reviewed in the Autumn 2017 edition of Customer Insight. Stephen recommended it as a long-time fan of Trott’s consistently enjoyable and thought-provoking blog posts, and it certainly didn’t disappoint.

It’s a book about outfoxing the competition, and one of its key messages is that advertising (as well as many other things in life) is a

TLF BOOK CLUB RETROSPECTIVE We normally dedicate these pages to a book review, but on the second anniversary of TLF Book Club we thought it might be interesting to take a look back at all 7 of the books we’ve read. Which were our favourites, which had most to teach us, and which should you consider reading if you haven’t already?

zero-sum game. Like it or not, you’re in competition. You don’t need to be the biggest to win, but you do need to be the most creative.

Perhaps the most important principle, from a customer experience perspective, is Trott’s notion of “getting upstream of the problem” - turning something you can’t solve into something you can.

Recommended for: anyone who wants to be inspired to out-think the competition, particularly if you have an interest in marketing.

05

The Inevitable People with the courage to go on the record with predictions have tended to be made to look pretty silly by the passage of time.

Kevin Kelly may sidestep this by predicting broad trends in society, rather than specific technologies. In “The Inevitable” he identifies 12 technology trends which he believes will inexorably shape the future.

Recommended for: anyone who wants some smart predictions about the future.

32 Customer Insight Spring 2019 | www.tlfresearch.com

BOOK REVIEW

03

02

Thinking, Fast and Slow

Moments of Truth

04

Everybody Lies

Next up we turned to a classic of customer

“Thinking, Fast and Slow”, by Daniel

Our next book, “Everybody Lies”, could be

experience literature, a book that

Kahneman, is a staple of the research

summarised in one quote - “Don’t trust

popularised a phrase so useful it’s become a

industry. It’s not a light read, but it’s

what people tell you, trust what they do.”

cliche - Jan Carlzon’s “Moments of Truth”.

still the best one-volume account of the

It might seem like a strange choice for

Some might call it a little self-serving,

basic research that underpins so much of

a company which makes its living from

which is hard to avoid in this sort of

behavioural economics and nudge theory.

asking people about their thoughts and

business autobiography, but there are some

The only exception would be the chapter on

feelings, but we’d be the first to advise

great lessons. He outlines his approach to

priming studies, which Kahneman himself

clients to treat customer claims about their

setting a clear customer-centred vision,

has largely disavowed.

own behaviour with a healthy degree of

equipping his staff with the information

scepticism. Seth Stephens-Davidowitz isn’t

they need, and then trusting them to make

Recommended for: researchers, or anyone who

making a case that we should be put out of

good decisions for customers.

wants to understand where our knowledge of

business, though. He argues that “small”

human decision making biases comes from.

survey data and human judgement are

Recommended for: leaders (or future

essential to interpret and add to “big” data,

leaders) in need of some clear thinking about

even at the likes of Facebook.

strategy, trusting people at the front line, and communications.

Recommended for: insight people or analysts wanting to make better decisions about customer behaviour.

06

07

Better Presentations

Book Club Reflections

Factfulness

We’ve really enjoyed having the Book Club, not just for the opportunity to read some interesting (and potentially useful) books, but for the internal discussions they’ve provoked.

We create a lot of presentations for clients,

Our favourite book so far, “Factfulness”, is

many of them (by necessity) involving quite

Hans Rosling’s posthumous masterpiece.

If you’d like to read along with us, our

dense information and analysis. Most of

His message is that the world is, in many

next choice is “The Death of The Gods”

the books that give advice on presentation

important respects, better than we think it

by Carl Miller. If you do read it, get in

design focus on “big room” presentations

is. Rosling spent a lifetime trying to educate

touch and let us know what you think.

– conferences where a Ted talk style of

policymakers with data, only to find that

big photos and very little text are realistic

preconceptions are bizarrely resistant to

and effective. Jon Schwabish’s “Better

change. In “Factfulness” he outlines the

Presentations” is aimed at academics or

cognitive biases which get in the way, and

anyone with more technical material to

equips us with better tools to improve our

present, giving a set of principles we can use

thinking.

to improve communication.

Recommended for: everyone.

Recommended for: people who need to present information-heavy slides effectively.

www.tlfresearch.com | Spring 2019 Customer Insight 33

HOW HARD CAN IT BE?

Except products! Most retailers, especially department stores, need to adapt to compete

more than a handy place to order, collect and

shopped. In case the retailer doesn’t offer free

return your clothing.

returns, we’ll cover the shipping cost for a flat

with online shopping. Nordstrom seems to

The list of reasons to visit is amazing. Whilst

$5 fee. We’ll also provide the box, and once your

have cottoned onto this before most. Its three

going in to try on your Nordstrom clothing

return is on its way, we’ll email the tracking

recently-opened Nordstrom Local stores in

before you order it online you can book a

number to you.”

Los Angeles are not retail shops as much as

consultation with a personal stylist to make

Can you think of any British retailers where

experiential locations that offer services like

sure it suits you, have a manicure or pedicure, a

you can do all that? Can you think of many

tailoring, manicures, returns, same-day online

haircut or beard trim, have your clothes altered

where you can do any of it? With a recent PWC

purchase pick-up, and personal stylists. Shea

or repaired (any clothes not just Nordstrom

survey reporting that 80% of Brits still like

Jensen, Nordstrom’s Senior Vice President of

products), have your shoes repaired or your dry

visiting stores, but two thirds of those like

Customer Experiences said in a statement, “We

cleaning done or have a present gift-wrapped.

looking online too, there’s no point swimming

think there are more ways to serve customers

Want to hire evening dress? No problem.

against the tide. Just let customers do both in

on their terms”. Unlike a typical 150,000 square

Customers can also buy hot or cold food and

your store. The main objective, of course, is

foot department store, the Nordstrom Local

have complimentary drinks – local beer, wine

just to get people in, and ideally to tell their

stores are 1,000-2,000 square feet and they are

or freshly squeezed orange juice!

friends it’s worth going, but the Nordstrom

located in prime urban areas not shopping malls

With last mile delivery so costly for online

Local formula will generate extra revenue too.

or out of town retail parks. They are virtually

retailers, Nordstrom are doing everything

Most of the additional services are provided by

inventory-free with just

to click and collect rather than have goods

concessions who will pay rental or commission

displays and online

delivered to their home. If they download the

to Nordstrom, the wrapping and returns services

search. But they are

Nordstrom App, they can request “Curbside

charge a fee for other companies’ products. (In

much

Pickup. When you arrive, we’ll walk your order

a pioneering deal at home, ASOS now pays Asda

out to your car.” The same applies to returns but

to use its stores for collections and returns.) But

goes a big step further – Nordstrom Local will

why wouldn’t you? Nordstrom doesn’t worry

take care of your returns

whether it’s helping a customer to return a

to any online retailer,

competitor’s product. If you’re confident in

not

your own offering, getting the footfall is all

just

their

own

products. “Skip the line

that matters.

at the post office. Bring

Oh, and if you’ve got some old clothes or a

all your online returns to

handbag that you never quite find the time to

Nordstrom Local and we’ll

take to the charity shop, just take them along

ship them for you—no

when you pop into Nordstrom Local and they’ll

matter where you

make sure they’re sent on to good causes.

Nigel Hill Chairman TLF Research

34 Customer Insight Spring 2019 | www.tlfresearch.com

The data we used to create the charities article was obtained from TLF’s very own panel, branded as

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