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Peter Lofrumento Consulting NYC

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management

Rethinking Your Competition

//  by Peter LoFrumento Leave a Comment

When It’s No Longer Who You Think It Is

Have you ever wondered why making dinner reservations on OpenTable is so easy while trying to get your cable company – like Optimum or Comcast – to answer billing questions is as painful as pulling a bad tooth?

Apples-to-oranges comparisons like this are quickly becoming the hallmark of how customers are judging brand experiences.

Image result for apple to orange comparison

Case in point: we were recently asked to evaluate customer brand experiences for a leading financial software company. Typically, you’d expect these customers to rate their experiences against their encounters with similar software companies.

But that’s not what happened.

Most customers took a broader view in their ratings approach.

When asked about their brand experiences with our client, customers made comparisons to account monitoring programs at American Express and earning rewards benefits similar to Amazon Prime.

Image result for amazon prime benefits

Customers have begun to expect the same high standard consumer experience across brands. 

Grant it, this is a small snapshot.

But perhaps it offers us a glimpse into a larger movement underway, often referred to as liquid expectations, where customer experiences with one brand seep into their expectations of another. It’s experience based on a much broader view of how they spend their money.

Image result for liquid expectations

The implication for your brand of such a radical shift in customer expectation is clear: customers will compare their experiences with your brand to their experiences with OpenTable, Amazon and Starbucks, even if you sell financial software, car insurance or commercial real estate.

In fact, it may no longer just be the direct competitor right in front of you that you should be most worried about.

But what can brands do to meet these evolving customer expectations?

A good start is to redefine your competition.

In our case, we helped our client to identify those companies outside of their direct competitors who are innovating in ways that could be adaptable to expanding their customer service programs.

The idea is not to provide a similar service, per se, but a similar experience which results in a positive brand response.

If you’re a CEO, COO, CMO or brand manager, here are few ways to navigate your customers’ liquid expectations and keep your brand competitive:

Image result for expand your view

1) Expand your approach: when creating brand experiences, look beyond your industry to see where else your customers are engaging and adapt.

For instance, not only did Uber upend the personal transport industry, but through UberEats, it helped create the on-demand expectation for food from sit-down restaurants. Uber effectively created a more fast and convenient way of accessing this new category.

2) Innovate: customers are now judging brand experiences based on what they see as possible in other industries. As your brand’s manager, consider doing the same. Look to other industries and adapt their innovation as a way of increasing personalized brand experiences.

Image result for disruption

3) Don’t fear Disruption: it remains an effective competitive tool. Take charge to reshape these expectations so you can foster greater brand engagement and loyalty.

Consider Vans sneakers, a brand that had been struggling over the last few years. It recently made a pop culture comeback with new online offerings that allow customers to create their own designs.

Image result for vans custom

The take-away: Customers now crave brands that offer products and services which combine the convenient and intuitive. If your brand is not evolving to meet this demand, you’re only frustrating would-be buyers.

To be more competitive, don’t simply focus on your industry. Instead, actively listen to your customers to determine what they are engaged in; remember, the real competition isn’t next door, it’s wherever your customers are spending the most time and money.

Image result for cable companies customer

Optimum and Comcast, are you listening?

Category: Blog, Management ConsultingTag: branding, competition, consulting, customer expectations, customers, management, management consulting

Nothing Stays in Vegas Anymore

//  by Peter LoFrumento Leave a Comment

Top 3 Brand Reputation Management Lessons Courtesy of United Airlines

It was the shriek heard around the world.

The seemingly mild-mannered Dr. David Dao being forcibly removed from United Airlines flight #3411 earlier this week.  It was a move that caused United Airlines’ stock to lose $800 million in value on Tuesday, and the company to suffer nearly a full week of severe reputational hemorrhaging.

If you’re like me, you’ve seen, heard and read enough about this sad incident, so I will spare you from any recap. Instead, let’s take a quick look at several lessons from United’s experience that brands should take note of in this digital age of reputation management:

1) Nothing Stays in Vegas anymore. 

If no news is good news, then bad news will travel globally and fast. As humans, we are wired to share stories. And with social media, any crisis can go viral in a matter of seconds. So if something happens, understand that the likelihood is great that someone will have pulled out their phone and recorded it. Brands should adapt their social media policies and practices to accommodate this fact — and this means being proactive on social media when something does go wrong.

2) Forget the lawyers and put people first.

Most crisis teams include attorneys. Rightly so, but there are situations, like in the case of United, where their counsel to refrain from admitting anything is less than useful.  Just re-read United CEO Oscar Munoz’s first statement on Monday. His corporate double-speak – “I apologize for having to re-accommodate these customers” – failed to address the most important part of his apology, which is acknowledging the violent behavior that led to Dr. Dao’s suffering.  

It only goes to prove that empathy and sympathy go a long way, and even saying sorry can quickly defuse a crisis-in-the-making.  Why? A heartfelt apology can reduce anger and importantly, provide your customers with the feeling that they are being heard.

3) Be Consistent.

If you recall, Mr. Munoz’s first statement was from a leaked internal email intended only for United staff. While it reassured employees, it did little to provide any comfort to an already outraged public. In the minds of United, they wrongly thought they could communicate different messages to different audiences. They forgot a simple truth: in our new world order, everyone is listening during a crisis. You have to assume that what you say internally will eventually become part of the public conversation. So please be consistent in your messaging.

Nothing stays in Vegas anymore, and that has put brands under intense public scrutiny. To avoid United’s reputational fate, own the issue by being proactive (especially on social media), putting people first and ensuring consistency in your messaging. This will enable you to bring any crisis to a resolution in the way you want it to be managed or resolved. 

Category: Blog, Branding & Corporate CommunicationsTag: management, management consulting, reputation, reputation management

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