3-Funnel Diagnostic; Fixing What You Cannot See

Marketing Funnels - More than oneYou see a model that is so simple that it can’t possibly apply to your unique situation. That’s what most people believe. It is also the reason why most humans (and business leaders in particular) struggle to learn from others. But, people like you do learn; this article is for you.

The 3 Funnels is the Key to Organizational Longevity

No matter the size or type of your organization, you’re subject to the 3 funnels – there is no escape. Effectively navigate the 3 funnels and never run out of cash and you’ll be a going concern forever. The 3 funnels are (left to right in the image above):

  1. The exposure funnel where you turn suspects (A) into prospects (B);
  2. The adoption funnel where you turn prospects (C) into cash generating customers that are using your product or service (D);
  3. The retention funnel where you turn customers (E) into loyal advocates (F) that help you attract more prospects, in turn reducing your marketing expenses related to the exposure funnel.

Leaky Funnels and Blocking Covers

Limited flow through any of these funnels negatively impacts your organization. The funnel shape implies that there is a slowdown; people enter the top and then take a while to get out through the bottom. No matter how perfect your organization you won’t have 100 percent throughput. Some customers never make it through the funnel. It can be as though the funnel is leaky or has a cover that prevents people from entering. You don’t want to be a board member, executive leader, or manager that makes decisions that in effect, limit the flow through the funnels. Don’t be your own competitor.

3 Funnel Diagnostic

If you want to spark some authentic dialogue in your organization then pull together a team and perform a 3 Funnel Diagnostic.

  1. First, build a report against the 3 funnels to show how many people are at each of the stages. Can you do this?
  2. Secondly, discuss all of the activities that your organization is involved with in moving people from initial suspect all the way through advocacy. No doubt you discover organizational performance gaps. Understand the customer journey.
  3. Thirdly, discuss what barriers are preventing people from entering each funnel or making it all the way through. By doing this, you’ll surface where people get stuck and the reasons why. I guarantee you that the reasons will be more attributable to your organization’s own performance gaps as opposed to your competitors doing a far superior job. This is especially evident in industries where customer satisfaction is low industry-wide.

Have a Better Conversation

Let’s face it, in most organizations the discussion around the sales or marketing funnel is overly simplified and dominated by whichever department is more influential at the time. But, that isn’t the most productive way to run a business. When sales and marketing are not working cooperatively together then customers and would-be customers suffer. Not long after that the business suffers.

A better conversation centers around your customer and the steps (touchpoints) they go through from first learning of your product, service, or company to becoming a loyal advocate. Three distinct funnels best represent this metamorphosis from suspect to prospect to customer to advocate. Sure, it is easier to dumb things down and create a single simplified funnel. But, imagine your accounting department or bookkeeper only had a single account as opposed to a full chart of accounts. You’d have an accounting nightmare and subsequently a tax nightmare. That is no way to run a business.

Evolve your conversation around sales and marketing funnels and your business will evolve, too. Proposing such a 3 Funnel Diagnostic will take some courage. But, you have courage, right? Want some assistance? Get in Touch.

about the author

Gregory Olson authored The Experience Design Blueprint, a book about designing better experiences and then making them come true. Chapters in the book that especially pertain to this article include:

  • Chapter 3: Who is in the Sandbox?
  • Chapter 8: The Promise Delivery System
  • Chapter 11: Barriers to Innovation and Overcoming the Wall

Gregory Olson’s latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

thumbnail image of author Gregory OlsonGregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help.  Gregory also serves as a volunteer board member for Oikocredit USA, a support association for social impact investor and international financial cooperative, Oikocredit International.

Inaction is not the Same as Voting NO

image of girl taking ball and going home for taking action blog post - DelightabilityInaction is not the Same as Voting NO
“Waa! Waa! I’m taking my ball and I’m going home. I don’t want to play anymore.” Sounds pretty childish right?

This same childish behavior manifests itself in adulthood, too. It permeates board rooms, teams of all shapes and sizes, nonprofits, for-profits and government alike. You might reflect on the bickering and inaction of the U.S. Congress or ministers and members of Parliament.

It is as though we all want line-item veto and full compliance with
our will and our wants. If we don’t get it then we take our ball and
leave the playground. We mentally vacate. In essence, we are
willing to watch the proverbial glass fall off the counter. We don’t
reach for it in an attempt to save it. And, when it crashes we look
away as others pick up the broken pieces. This is actually worse
than the bystander effect.

hummingbird sitting idle for taking action blog post - DelightabilityEach of us might think that merely being a passive spectator is not the same egregious action of literally pushing the glass off the counter. You might hear yourself saying, “I didn’t push it. I was merely observing.” Yeah, but you didn’t help it either. Actually, your actions, or inaction rather, might possibly have accelerated its crashing descent. In the eyes of a courtroom, you might be found guilty of complicity. In the eyes of humanity, though, you are guilty of something far worse. You may be put in an increasingly irrelevant category of the parasitic do-nothing.

Just like the child that doesn’t get their way, in adulthood you’ll not
get your way most of the time, either. Part of being a good citizen,
neighbor, leader, follower, team member, etc., is moving forward
image of glass half full for taking action blog post - Delightabilitytogether even when you don’t necessarily agree on every nuance. That is called progress. The annuals of human civilization and social progress are marked with such moments of acceptable discomfort. You can either actively participate or apathetically resign yourself, letting others define your future. Your inaction is not the same as your active voice, saying yes or no.

So, get out of your easy chair and get behind something that matters. Whether it is in your neighborhood, school, work, nonprofit, local election or national election. And, if you disagree, actually take a stand and vote no. Don’t be the do-nothing. We all have the potential to do better, as individuals, organizations, and our collective community. There are already enough broken glasses everywhere you look. Rather than adding more, let’s save them, and then let’s work together to fill them.

About the Author

Gregory Olson is the author of The Experience Design Blueprint, a book about designing better experiences and then making them come true. Exercises and mental models in the book will build your confidence and competence in envisioning better possibilities and then making them come true, whether you are working alone or alongside a team. Chapters in the book that especially pertain to this post include:

  • Chapter 1: What Makes and Experience?
  • Chapter 6: Aiming for Remarkable, Unbroken, and Generous Design
  • Chapter 7: Improving the Journey
  • Chapter 9: The Neighborhood
  • Chapter 11: Barriers to Innovation and Overcoming the Wall

His latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

image of Greg-Olson-Managing Director of Delightability and author of Experience Design BLUEPRINTGregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help.  Gregory also serves as a volunteer board member for Oikocredit Northwest, a support association for social investor and financial institution, Oikocredit International.

5 Actions for Business Leaders to Help the Company AND the Economy

This Pesky World of Work Has Changed

The world of work has changed and it’s not coming back as we once knew it. Whether you are the chief people officer at the top, leading a department, or forging the way forward as an individual contributor, you’ve by now realized the new normal is not like the last normal.

Forces Beyond Your Control

Some forces acting on your organization are out of your control: industry consolidation, globalization, public policies of all sorts, advances in technology, a flight to values, demand for increased transparency, distrust of government and banks and cable monopolies, shifting workforce demographics, etc.

But, this doesn’t mean you are powerless, ineffective, and should sit on the sidelines. Of course, you could choose to do nothing. But, that usually isn’t a very good option for getting a desirable outcome. Your proverbial ship will eventually hit the reef ahead if you don’t veer port or starboard. You must take action. The annals of company histories are chock full of such victims that witnessed innovation from the sidelines. The marketplace is an unforgiving lover; your’e hot when your’e hot, and forgotten when you’re not. Size or tenure do not insulate you from marketplace realities.

Some Sobering Facts:

  • companies are running leaner than ever
  • employees feel insecure and overworked
  • work is increasingly specialized
  • leaders are forced to do more with less
  • employee engagement has declined and loyalty has evaporated in both directions

Pay No Attention to the Man Behind the Curtain

Don’t look to the media, politicians, and economist for answers. You won’t find relevant prescriptions there. What you will find is self serving rhetoric bordering on sensationalism and focused on getting somebody elected or re-elected. They each have an agenda that is unlike yours and certainly not like your customers, employees, vendors, partners, or communities you occupy. The correct prescription is to do what is right for the business and all of its stakeholders. So, what the hell is a business leader to do?

Here are 5 Actions Business Leaders Can Initiate Now

If you are a leader by committing to these 5 actions, you will help your company and the economy at the same time. If you are not the business leader you don’t have to sit on the sidelines while your organization unravels. Consider today the “elbow nudge the leader at work day.” For additional clarity on any of the following 5 actions see the slideshare.net presentation below or my book, The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healther Organizations. Pay particular attention to Chapter 14: The World of Work Has Changed.

  1. Create an innovation neighborhood. Stock it, in part, with outside entrepreneurs. Add fractional talent that you cannot attract for a job, but would still like to work with your organization. Shake things up by adding “entrepreneur seasoning.”
  2. Recognize and abolish your internal innovation hurdle (IIH). It’s really ok that your next business opportunity may only be a $ 20 million business as opposed to a $ 1 billion business. Small is the new big – get used to it and get good at it or you’ll be a Berlin Wall remnant.
  3. Treat people with dignity and respect . Add people to give current employees more capacity. Stop fear mongering tactics, period. Reduce executive pay before shedding employees upon bad news. The raving fans you build start inside your own organization. You are at a disadvantage if you don’t start there.
  4. Adapt your non-discriminatory policy to include the unemployed and especially the long term unemployed and veterans. Reprimand or fire those that break the policy. Go for diversity in everything. If everybody inside your organization looks and acts the same – your organization’s unwinding has already begun.
  5. Be more collaborative by sponsoring, using the talent within, and becoming a resident of co-working spaces.

Need help with any of these or want to discuss? Please get in touch.

CVS Pharmacy Writes Future by Saying Good Bye to Cigarettes

Bravo to CVS for their Decision to Stop Selling Tobacco Products

Some think it to be a poor decision that will harm earnings and inconvenience customers. If we were living in a different time, with different knowledge, and CVS was scrapping by needing to sell anything in order to put food on the table, I’d agree. But, this isn’t the case. Healthcare has become more complicated, competitive, and future focused. Meanwhile, CVS has become an integrated pharmacy company with a wide and growing breadth of capabilities. Punching customers in the face and then offering to dress their wounds isn’t consistent thinking and it isn’t good business. With smoking being the leading cause of premature disease and death in the United States and it exacerbating other conditions like hypertension and diabetes, it no longer makes sense for a healthy-human centered business to continue supporting such a deadly habit.

A Polarizing Decision
The decision to stop selling cigarettes and tobacco related product is polarizing. CVS customers that smoke will now likely shop elsewhere for cigarettes and other needed items as well. But, the nonsmoker audience that already eschewed tobacco products will likely see the company as more committed to its promise of helping people on their path to better health. This change actually frees up CVS from conflicting and confusing messages as they begin to offer smoking cessation therapy and engage on a national smoking cessation program.

A Courageous Decision
It is as though CVS is saying, “If you want a serious pharmacy that is interested in making and keeping people healthy, then come to CVS. But, if you demand a nicotine fix from your local pharmacy in addition to making other purchases, then please shop elsewhere.” Saying something IS saying something. CVS will likely attract a multitude of new customers who believe that taking a stand against smoking, is taking a stand towards healthier communities.

“We’ve got 26,000 pharmacists and nurse practitioners who are helping millions of patients each and every day,” said Larry Merlo, the chief executive of CVS Caremark.

In my book, The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations, one of the recipes I share is especially relevant to this story. It is also relevant to every organization you’ll ever be a part of.

From the book:
Recipe #3: Write the Future You Want
Create the stories that you wished customers would retell. Write these down. In Chapter 7: Improving the Journey, you’ll learn some tools and techniques to intentionally design these new customer journeys.

Imagine the powerful stories told by the millions of patients that are helped by the 26,000 pharmacists and nurse practitioners serving across 7,600 CVS stores. Stories about managing high blood pressure, high cholesterol, diabetes, kicking the smoking habit, getting flu shots, alleviating symptoms, managing diseases, etc. In short, stories about getting healthier, being more comfortable, and managing diseases throughout our human journey.

With customers (patients) at the center of focus and with the future in mind, opportunities abound. CVS and its stakeholders can design new services that win the hearts and minds of customers, increase employee engagement, more than offset the lost revenue from cigarette sales, and ultimately lower the cost of healthcare. But, the product to cut or shape shouldn’t begin and end with cigarettes alone. Fully embracing Recipe #3 will have CVS moving toward a future where other current products are scrutinized and similarly dropped, while other products might be newly introduced. Again, it all depends upon the stories we wish our customers to recall and tell others.

image of Greg-Olson-Managing Director of Delightability and author of Experience Design BLUEPRINTGreg Olson is the author of The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations. See the Book and Author Summary PDF or find the book on Amazon.

When Your Organization Becomes a Leaky Boat?

Boats in Port of Everett by Greg Olson from DelightabilityWhether you are the chief executive officer or the newest and lowest ranking employee, you’re often faced (like right now) with a leaky boat. You have a choice to make.

If you are the chief, then you can delegate or trust that others will take care of the problem. You can get involved directly. You can ignore the problem, because you have more pressing matters to attend. Or, you can empower your people to take care of this leak and all future leaks. But, do your people even care?

With employee engagement low and sinking lower, employees have choices to make, too. As an employee, you can abandon the boat. You can choose to fix the leak, even though it might not be your job or the responsibility of your department. You can wait for the boat to fix itself or hope that someone else will. This bystander effect has long since been proven in experiments that most people will simply wait for others to take action; the more people present, the more inaction. You may also choose to ask somebody else to fix the leaky boat. But, chances are, as an employee, you probably don’t care all that much since it isn’t really your boat to fix. Simply put, you aren’t that committed to this boat.

In times of natural disaster people from different walks of life can more easily shed their biases, titles, and beliefs in order to cooperate toward mutual survival and comfort. We need to be able to get to the same level of cooperation in the workplace, short of an actual disaster. The world of work has changed. There has been a flight to values. Too high of a percentage of the people I interviewed for my recent book, changed jobs before my book completed. Organizations continue to shed people like dirty gym clothes and employees, conditioned by the new normal, have recognized that the number of people looking out for their interests can be counted on one finger. So, at the first sign of smoother waters elsewhere, they head for another boat.

If you want to increase engagement and build a better innovation neighborhood inside your organization, then you’ll need new mental models and new conversations. You won’t accomplish much with a leaky boat. For far less than the price of your next non-productive meeting you can pick up a copy of my latest book, the Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations.

You can read the The Experience Design BLUEPRINT book by Greg Olson shown across screensKindle formatted book on nearly any screen, even in a browser, using the free Kindle Reader Apps. Even if you cherry picked only a few of the 56 recipes and 25 examples to learn by and apply to your business, you’d be well ahead of where you are today. Learn how to be more like bees, and less like raccoons. Discuss how you can emulate a better neighborhood. Make your Promise Delivery System visible. Intentionally design the experiences of internal customers so that together, you can win the hearts and minds of external customers.

Be courageous and start a new conversation; to benefit yourself, your people, your customers, and ultimately the entire organization. Tomorrow there will be new leaks; I promise you that. I only hope you’ll be prepared to handle them.

image of Greg-Olson-Managing Director of Delightability and author of Experience Design BLUEPRINTGreg Olson is the author of The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations. See the Book and Author Summary PDF or find the book on Amazon.

Road Signs & Signals Along the Customer Journey

bridge out sign customer experience DelightabilityHow are you doing with customers? How do you know? Which touchpoints matter the most in the customer journey, to your organization and to your customers? Are they the same? Do you even know what the customer journey looks like? Have you mapped the customer experience across all touchpoints? What does the conversation in your organization look like surrounding this?

It turns out that much of what I’m describing is invisible. For most, Key Performance Indicators related to the customer’s experience largely reflect, how many people were exposed, how many bought, and how many returned or got help. But, those are only base indicators. In a world with a new customer high bar you need to go beyond base indicators. You need to understand what is important from your customers perspective, when, and where. You need to understand this at each touchpoint. “Yeah yeah, customer service has that,” you say. But they really don’t until you dig for it. And when it isn’t easy to dig for it, you don’t.  Likewise for your prospective customer. They don’t want to dig either.

“don’t be fooled into thinking that is good enough”

Prospective customers are motivated to do something when they arrive on your digital or analog doorstep Continue reading “Road Signs & Signals Along the Customer Journey”

Are Communications Helping Your Relationships?

 

universe of people - Delightability

Timely and relevant communications is essential for businesses to reach their target audience.  Anything less is noise that will largely go unnoticed or worse irritate the intended audience. Sadly, many organizations fall into the trap of poorly segmenting communications. Sales and even some marketing personnel fail to differentiate between suspects, prospects, and customers. When this happens, loyal customers are often overlooked. Think how a loyal customer feels about your brand when prospects receive better offers than they do. This results in customer churn, diminished sales, and poor loyalty.

To solve this problem companies should segment customer communications into 3 stages.

  1. The first stage is Exposure. Here you expose suspects to your products and services and turn them into a prospect.
  2. Next is the Adoption stage. Getting your prospect through the sales process and consuming your product or service is the goal.
  3. The last stage is Retention. This last one is most often overlooked as sales driven personnel and processes are “on to the next” big sale or initiative.

3 funnels - suspects - prospects - customers - advocates - Delightability

 

Bain and Company research established that it is 10x more costly to acquire a new customer than retain an existing one. So naturally, you wish to retain customers and turn them into advocates.

Benefit of creating advocates include:

  • pay more, especially for premium treatment
  • buy more and often without ongoing sales efforts
  • provide useful input on products and services
  • insulate you from the effectiveness of competitor’s price promotions
  • reduce the cost of your exposure funnel related marketing activities

Properly enabled, advocates also influence like minded individuals and expose them to your brand. Because of this, it is important to continue to build the relationship. This is especially relevant in an era where buyers turn to social networks and online information sources for opinions and counsel before completing a purchase decision.

Here is how to improve customer communications

  1. Conduct a communications audit and establish your baseline
  2. Ensure everyone is clear on the definition of customer terms i.e. suspect, prospect, customer, and client
  3. Actively segment communications based on the 3 stages of relationship
  4. Watch response rates and loyalty improve