Managing the 5 C’sin changing times

Closer

Customer

Connection and

Company

Culture

In Changing Times

Peter Harris

Managing Director @ Colmar Brunton

AUDITOR marketing RESEARCHFamily man AMSRS aussie NEW MEDIA

building relationships ASHES TRAGIC

We work for these companies

Part 1

Where is the customer at?

Part 2

Closer customer connection

Part 3

Creating a customer centred culture

We are deep into the middle of an

Australian winter but for consumers

the GFC is emerging from its

frosty dark days.

For the GFC, in Australia at least,

spring is in the air and signs of new life are emerging.

71% Of Australian’s say the

worst is over

10%Oct 08

17%Jan 09

18%Apr 09

14%Jun 09

27%Oct 08

34%Jan 09 36%

Apr 09

34%Jun 09

Have already experienced job or significant income loss (20% for self employed)

12%

…..

Like a small animal emerging from its burrow, Australians are watching closely for signs of opportunity or threat.

GFC may yet prove to be a crisis of confidence rather than a financial crisis per se.

And over by Christmas.

listen

measure

add value

be remarkable

conversational

collaborate

1. listen

2. measure

3. add value

4. be remarkable

5. collaborate

6. join the conversation

<

Inspirational leaders

Source: BARB / Sage

++ revenue

++ customer retention

++ customer acquisition

16 million viewers

3x > online

brand click-thru

listen

measure

add value

be remarkable

collaborate

conversational

Corporate culture is a ‘hard’ issue

Companies, acquisitions and investments generally don’t fail because of lousy products, bad intentions or insufficient plans.

If they fail, they mostly do so, because of the way their leaders and management behave: the choices they make, the way they solve problems, the way in which they (fail to) cooperate.

In short: because of the culture.

WOW culture

Zappos at a Glance

– Founded in 1999

– 1300 employees • #23 in FORTUNE MAGAZINE’s “100 Best Companies To Work For”

• Highest debut for a newcomer in 2009

– Zappos is “Powered by Service”• Providing the best online shopping experience possible

• Fast, Free Shipping. Free return shipping. 365-day return policy

• Fast fulfillment. Expedited delivery. Fast, friendly & expert customer service

– Best selection• Over 1,000 brands, over 200,000 styles, over 900,000 unique UPCs

• 4 million items in warehouse

– Zappos is a service company that happens to sell clothing, shoes, handbags, eyewear, watches (and eventually a bunch of other stuff)

Power of repeat customers and word of mouth...

2000 2001 2002 2003 2004 2005 2006 2007 2008

Gross Sales 1.6 8.6 32 70 184 370 597 841 1014

$0

$200

$400

$600

$800

$1,000

Gro

ss S

ale

s $

M's

Owning the 3 C’s:Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Clothing

Customer Service

Culture

10 core committable values

5 weeks of culture, core values, customer service, and warehouse training

Pay you $2000 to quit

Interviews & performance reviews are 50% based on core values & culture fit

Twitter helps build company culture

Zappos Core Values

1. Deliver WOW Through Service

2. Embrace and Drive Change

3. Create Fun and a Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. Build Open and Honest Relationships With Communication

7. Build a Positive Team and Family Spirit

8. Do More with Less

9. Be Passionate and Determined

10. Be Humble

ZapposDelivering Happiness

(customers and employees)

“People may not remember exactly what you did or what you said, but they will always

remember how you made them feel.”

“That’s great for Zappos but it would never work at my

company…”

It doesn’t matter what your core values are…as long as

you commit to them.

ALIGNMENT

VISION

“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

Peter.harris@cbr.com.au

twitter.com/peteraharris

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