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Customers and Value

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A behavioral approach to product design — Startups, Wanderlust, and Life Hacking. Changing behavior is hard. We see it everyday — New Year’s resolutions fall through, gym memberships remain unused, and well-intentioned plans to eat less, or save more, never come to fruition. There are many products and services to help nudge us towards our goals—whether that’s making healthier eating choices, developing better financial habits, or maintaining a more active lifestyle. Yet creating products that successfully accomplish these objectives can be immensely difficult. Designers are realizing that traditional design methods are not always enough to effectively tackle these complex behavioral challenges.

At Opower, our team takes a uniquely behavioral approach to product design, leveraging the latest behavioral science research to create useful, delightful user experiences that motivate everyone on earth to save energy. The four stages of behavior design Stage 1: Grab attention The first thing people want to know is — why should I care? Techniques Make it inviting. Examples. Enable your customers to better engage and make them independent. Become a VRooMer! - Youstice - Read experts‘ opinions. What is VRM? VRM, as an opposite to CRM or customer relation management is starting to be a new big thing. It emerged 10 years ago in USA and has re-appeared recently as a strong new trend in business attitude.

Key person behind VRM is Doc Searls, a common sense Internet thinker and influential blogger who now runs ProjectVRM at the Berkman Center at Harvard University. VRM is focusing on how ordinary people wish their relationship with vendors to be. Doc summarized VRM in the headline of my blog – enable your customers to better engage and make them independent. There are many VRM companies around the world, they undertake business in different areas, yet we have one thing in common: we try to set up new more friendly and common-sense environment on a global Internet marketplace. How we use VRM in our app? Sometimes, your customers are interested in more options how to resolve their claims than just refund/chargeback. Then, there is still an option you two cannot agree exceptionally. The hidden value of organizational health—and how to capture it.

For the past decade, we’ve been conducting research, writing, and working with companies on the topic of organizational health. Our work indicates that the health of an organization is based on the ability to align around a clear vision, strategy, and culture; to execute with excellence; and to renew the organization’s focus over time by responding to market trends. Health also has a hard edge: indeed, we’ve come to define it as the capacity to deliver—over the long term—superior financial and operating performance. In previous articles and books, such as Beyond Performance, we (and others) have shown that when companies manage with an equal eye to performance and health, they more than double the probability of outperforming their competitors.

Our latest research, at more than 800 organizations around the world, revealed several new twists: In short, we’re more convinced than ever that sustained organizational health is one of the most powerful assets a company can build. Exhibit 1. The Net Promoter Score and System - Satmetrix Net Promoter Community. Know the score. The Net Promoter Score, or NPS®, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors.

By asking one simple question — How likely is it that you would recommend [your company] to a friend or colleague? — you can track these groups and get a clear measure of your company’s performance through your customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows: Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth. Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

To calculate your company’s NPS, take the percentage of customers who are Promoters and subtract the percentage who are Detractors. Net Promoter programs are not traditional customer satisfaction programs, and simply measuring your NPS does not lead to success. The ‘moment of truth’ in customer service. In recent years, mature companies with far-flung networks of frontline sales staff—banks, retailers, airlines, and incumbent telecom providers, for example—have devoted a great deal of money and effort to retaining their current customers. As many academic studies have noted, the costs of doing so tend to be much lower than those of acquiring new ones. The success of this strategy ultimately depends on expanding the breadth and depth of customer relationships and on translating the resulting loyalty into higher sales of goods and services, as well as a healthier bottom line.

We believe that many businesses are falling short. Although companies are investing record amounts of money in traditional loyalty programs, in customer-relationship-management (CRM) technology, and in general service-quality improvements, most of these initiatives end in disappointment. Executives typically struggle to transform the way a company responds to its customers. High emotion, high performance. What if customer delight was our only measurement?