FLIP THE FUNNEL: How to Use Existing Customers to Gain New Ones
By: Joseph Jaffe
***Excerpt from Flip the Funnel: How to Use Existing Customers to Gain New Ones
Most companies are still trying to both effectively harness word of mouth and separately deliver against customer retention, loyalty, and customer experience. But what if you could do both at the same time? That's what happens with peer-to-peer or many-to-many conversations where customers are involved. And the truly sublime insight is that by doing one part particularly well (a renewed focus on retention and customer experience), you'll get the networked benefits of social media and word of mouth at negligible to no cost. That's just another way of conceptualizing the flipped funnel as part of a logical, systematic, and ordered process. Are you a buyer?
A one-two conversational punch is exactly why we need to make sure that we can handle and expertly address customer conversations as they happen. And it's not just about responsiveness; it's as much about quality of response as well.
Take the folks over at Target. In 2008 Amy Jussel, founder and executive director of Shaping Youth (a nonprofit consortium of media and marketing professionals concerned about harmful media messages to children) felt that a Times Square billboard from cheap chic discount retailer Target contained a little too much sexual innuendo for comfort. If you'd like to see the ''offensive'' billboard in question, please visit the ''enhanced content'' section of the web site for the link.
Jussel sent a letter to Target, and this is what she got back in return: Good Morning Amy, Thank you for contacting Target; unfortunately we are unable to respond to your inquiry because Target does not participate with non-traditional media outlets. This practice is in place to allow us to focus on publications that reach our core guest. Once again thank you for your interest; have a nice day.
Not only was Jussel being told that neither she nor any of her readers were Target's customers but moreover, they weren't important to the company (at least relative to the readers of traditional publications like Modern Bride or Gourmet magazines, which-oops-no longer exist). By inference, Target was also ''target''-ing all blog, podcast, video blog publishers and their readers as well!
The blogosphere blew up with disbelief and anger toward the nonresponsive brand, and Amy Jussel subsequently became frustrated that Target's arrogance was being given priority over the real issue at hand: the billboard (not to mention the fact the store sells Toddler Tees that read ''Hooters Girl in Training'' or Infant shirts that read ''Playground Pimp'').
Target finally took its one foot out of its mouth, only to insert the other one in its place by explaining that the reason they don't respond en masse to any inquiries from nontraditional outlets (bloggers, blogs, and the like) is because they just don't have the manpower/human resources to do so. So let me get this straight: They have enough money to invest in Times Square Spectaculars and a seemingly endless supply of 30-second spots, but when it comes to allocating budget toward human-to-human interaction, the cupboard is bare? Do me a favor.
WHY RESPOND AT ALL?
Reading this book should make it patently obvious why responding to customers is not just a good idea; it's a vital aspect of any company's modus operandi.
As mentioned previously, customer service absolutely needs to be (and is becoming) a strategic imperative within the organization. It must move from the dusty, musty broom closet in the back office to the wall-to-wall windowed corner front office.
The very advent and proliferation of social media and social networking forced our hand, so to speak. Remaining on the sidelines isn't an option any more. Marketing is no longer a spectator sport but rather a contact sport, and to prevail, companies need to suit up with the appropriate equipment and padding. Listening and responding are your equivalents of gum guards and helmets. Once you're properly attired, here are four pages from the responder's playbook that run the gamut from the routine to the ultimate Hail Mary: (and is becoming) a strategic imperative within the organization. It must move from the dusty, musty broom closet in the back office to the wall-to-wall windowed corner front office.
The very advent and proliferation of social media and social networking forced our hand, so to speak. Remaining on the sidelines isn't an option any more. Marketing is no longer a spectator sport but rather a contact sport, and to prevail, companies need to suit up with the appropriate equipment and padding. Listening and responding are your equivalents of gum guards and helmets. Once you're properly attired, here are four pages from the responder's playbook that run the gamut from the routine to the ultimate Hail Mary:
1.Satisfy Curiosity and Confusion-Flip the passive phrase ''customer satisfaction'' and you get an active one, ''satisfying customers.'' When a customer makes a brand-related comment or asks a question via a blog post, or any other social medium for that matter, it's a prime opportunity to add value by responding. In these cases, there isn't really any sentiment other than minor intrigue. By joining the conversation, you're able to surprise your customers with an unexpected move.
2. Address Concerns, Issues, and Questions-When customers have a problem, you need to come up with a solution. Just because the question might not be specifically addressed to the company (for example, appearing in a Facebook status update) doesn't mean you aren't expected to respond and dedicate resources against resolving it. Unlike the first point, now there is emotional skin in the game and higher table stakes.
3. Festering-Leaving something out there for too long can have drastic repercussions. Typically, customers tend to resolve issues privately before taking them public. A first port of call is to contact the company before blurting out a rant. However, this soon changes as customers become increasingly frustrated with companies' service inadequacies and shortcomings and/or when they see the rewards of the one-to-many megaphone. A public facing expression is typically a time bomb waiting to explode, as well as the best tasting juice for Google. In other words, the longer it hangs out there, the more likely it'll come back to hang you.
4. Escalation-This is the worst kind of scenario to find yourself in and one that has to be avoided at all costs. Any grievance or issue that festers for too long is likely to escalate. And this takes many forms-from the passive aggressive ''give peace a chance'' United Breaks Guitars, to the vengeful Dell Hell crusade, to pretty much anything that hits ''The Consumerist,'' to Twitter (a fleeting heads-up, albeit a harbinger of things to come). When a complaint becomes a religious mission, a company is in full crisis communications mode. At this stage, your best-case scenario is to minimize damage. Stopping it is pretty much off the table. Put it all together and, yes, it spells S.A.F.E., because when it comes to responding, 'tis better to be S.A.F.E. than sorry.
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