Voices: the CMB Blog

When we set out, in our latest CMB Consumer Pulse, to discover how consumers are navigating the unprecedented range of options for accessing TV and movies, we knew some of the things we’d find out—e.g. the number of people who have completely cut the cord is still small, Netflix streaming is very popular, and many people are watching on smartphones and tablets.  However, some things surprised us:

Completely cutting the cord may be rare, but that’s not the only, or even the most important thing to worry about

People who have completely “cut the cord” entirely are a very small group (3% of the study’s population). The more compelling finding is the number of people who may be “on deck”— those who have tried Over-the-Top TV (OTT) and/or those who are considering reducing their pay TV service.

• More than half (54%) of respondents used the Internet to watch TV at least once.  (tweet this)

• Nearly half (43%) of pay TV subscribers said that they were at least somewhat likely to cut back on premium services (like Pay-Per-View or premium channels) in the next year. (tweet this)

This suggests that a big chunk of consumers’ TV-watching dollars could shift, even if their pay TV cords remain intact.  And, that awareness and perceived value of OTT have risen to a point where consumers of all kinds are investigating OTT as an option.

The biggest screen does NOT always win, and the definition of “watching TV” is changing

Everyone knows that new devices are impacting consumer behavior.  But our research suggests technology is driving fundamental changes in how people define the “TV watching experience.” For example:

• Among people who watch TV on tablets, 58% say that they watch TV on their tablet when they’re at home. (tweet this)

• Nearly two-thirds (63%) of those people say they’ve used a tablet even when they could have watched the same show on their TV. (tweet this)

There’s no indication that people will stop using their televisions entirely. But this does suggest that mobile devices have a role in the TV experience that transcends their mobility; and there are more scenarios where people will choose something other than the biggest available screen.

Not all elements of the TV watching experience are created equal

In our survey, consumers completed an exercise that forced them to trade off different attributes of a TV service provider based on what was most important to them.  Some of the findings were obvious (e.g. people want to pay less for their TV).  But other priorities offered more of a surprise:

• Streaming Content beats Owning Content:  Consumers prefer alternatives that rent/stream video over those where you download and own the content. (tweet this)  

• More Content beats Newest Content:  More consumers say having the largest catalog of content was more important than the fastest access to new content. (tweet this)

In short, technology and features matter but complexity is a barrier to switching over completely. Today, people who want an OTT solution have to manipulate a Rubik’s cube of devices, platforms/providers, and payment models.  However, that will change as more streamlined solutions come online. In the future, the most successful offerings will be those that provide a simple solution that's built around the things that matter most to consumers.

Check out this short video:

We surveyed nearly 1,500 consumers in the U.S. to get a pulse on their TV and video viewing habits and what it means for the future of OTT. Learn more, download our Consumer Pulse: The New Age of Television

Posted by Jon Giegengack, Jon is a Director at CMB and leads research for digital entertainment companies in television, music, videogames, and social media. As a veteran cord cutter, he knows the good, the bad and the ugly of today’s TV options.

Last week I blogged about the positive intentions of consumers who take the time to participate in customer feedback surveys.  One of the more disappointing findings is that most companies fail to respond when customers give poor scores or negative feedback.  On this point, we asked respondents to recall the last time they provided negative feedback or a complaint in a customer satisfaction interview, and whether a company provided a response.  A majority say they did not receive any response—just 35% recall any type of response from the company.

This was quite a surprise.  Companies are investing tens of thousands of dollars in their customer feedback programs, but many are missing the point.  When customers complain it’s because they feel disappointed or disrespected, treating them like an anonymous statistic is another kind of service failure. How do you teach a company or brand to mind their P’s and Q’s? Maybe we need an Emily Post for corporations!

When you think about it, customers who take the time to respond to a customer satisfaction interview have given time and effort to provide information that should be valuable to the company.  Those who’ve had a bad experience could easily turn and walk away.  Instead they respond to a request for feedback.  Whether it’s a complaint about a service failure, a suggestion, or even a review of a positive experience, companies need to let customers know they’re being heard.

And yet the majority of companies are turning their back on these people!

The thing is, technology makes it easy to manage and respond to feedback; and most people don’t expect much.  In fact, confirmation and a commitment to improve will go a long way to show appreciation.  And of course, a simple “thank you” can’t hurt.

Download the full report: Customer Satisfaction Surveys: Open the Door to Customer Engagement

Posted by Jeff McKenna, Jeff is a Senior Consultant at CMB, and the creator and host of our Tools and Techniques Webinar Series.

As CMB has grown and expanded our customer satisfaction measurement practice, we’ve invested considerable time and resources into conducting research on research, to make better decisions about managing these programs.  In addition to direct feedback from clients, we conducted a study among managers at medium and large businesses who rely directly on customer satisfaction measurement for decision-making.  The findings point to many opportunities to improve the overall usefulness of these programs.

Our next step has been to look at customer satisfaction research from the consumers’ point of view – i.e. the respondents who complete the surveys at the bottom of their receipts or that come into their inbox. What we found might surprise you…

We’re gaining deeper insights about the nature of people who respond, their frequency, and the reasons for responding to the requests. For instance, most people respond to share details of both positive and negative experiences; just 8 percent say they respond only when they have had a bad experience.  What this tells us is that people voicing their opinion in customer satisfaction are NOT more inclined to be negative.  In fact, most people respond with good intentions to help the company improve or maintain good service/products. 

Here are a few other facts worth sharing:

Many customers give feedback as part of their “job” as customers—50% say they give feedback to improve the company. Tweet this

57% of customer satisfaction survey takers say they do it to give positive feedback. Tweet this

Only 28% of customer satisfaction survey takers do it to win a prize or get a reward. Tweet this

Download the full report here. 

Next week we’ll talk about why and how companies need to respond to the feedback.

Posted by Jeff McKenna, Jeff is a Senior Consultant at CMB, and the creator and host of our Tools and Techniques Webinar Series.

I started my career in sales.  In sales, you very quickly learn that it is much easier to sell to an existing - rather than a new - customer.  The fact that existing customers are valuable isn’t a tough concept to grasp. Customer loyalty researchers report that, on average, companies lose about 50% of their customers each year, that it costs 20x more to do business with a new than existing customer, and a minimal reduction in customer defection rates can significantly boost profits. 

So, can someone please explain why so many companies are making headlines for initiating new fees or penalties that seem designed to aggravate their customers?  I’m sure at least some of these stories caught your eye…

• In July, Netflix unbundled their DVD rental and streaming plan, effectively forcing customers to pay $6 more for the combo plan they had grown accustomed to. Then, in September, Netflix CEO announced that DVD rentals and streaming would become two totally separate services. The streaming service would retain the name "Netflix," while the DVD branch would be called "Qwikster." Reactions were predictably negative, and on October 10, before Qwikster had even launched, Netflix ended the failed experiment.

• Throughout the year, one after another of the major airlines (with the exception of Southwest and JetBlue) raised fees on checked baggage.  Fliers hate baggage fees and the long lines at airport security screening are made worse by passengers carrying on more bags.  The TSA estimates that the number of carry-on bags has increased by 87 million since 2009.

• On December 30th, after a customer ‘uproar,’ Verizon Wireless decided it will not institute a $2 convenience fee for online or telephone single payments, 24 hours after it was announced.

Even my favorite hotel company recently hit me with a $50 change fee for a mistake I made on the dates of a business trip.  I was coming to the hotel for goodness sake – just not on those dates!!! Ugh. 

I understand that companies need to make money; and changing regulations and technology can affect a corporation’s ability to deliver profit.  But in the spirit of the Occupy movement, someone needs to be watching out for the customer!

From a recent CMB Consumer Pulse – 44% of respondents report feelings of loyalty to 10 or more companies they do business with – another third to 5-9 companies.  In addition, we learned that two-thirds enjoy it when a company thanks them for their loyalty… and one-in three expects a company to thank them….boy they must be disappointed when instead of a thank you, they get hit with new fees and charges!

CMO.com recently listed the 10 things CEOs need from their CMOs  …drumroll please… #3 on the list is A Customer Whisperer…someone who can tell them what customers in the future, will want.  And #9 is A Customer Advocate… someone who can be the voice of the customer in the executive suite. Someone, who, in the face of pressure from finance or legal, will fight to ensure sufficient consideration is paid to the needs and interests of customers.  Marketers should seek to uphold our own version of the Hippocratic oath:  "first, do no harm to our customers."

So, what’s a brand manager or CMO to do? 

The problem probably isn’t that you don’t have enough data-the problem, instead, may be that you have too much information!  Or maybe the information isn’t being delivered to you in a way that makes it easy to find insights or support for your decisions.  If you work for a company like most, a significant portion of your research budget is dedicated to a customer feedback, performance, or satisfaction program. Are you getting the return (in insight) you are making for the investment you’re making?  Maybe it’s time to revitalize the program to enhance your role as customer whisperer and advocate! 

Here’s what we believe you should be getting from your program:   

• Direction for product/service investment decisions:  If you had $20 million to spend, where should you invest?  Where would you get the biggest bang for the buck?  Upgrading something customers see as a “table-stake”…. Or enhancing a service that is a “customer delighter?”  

• Identification of deal-breakers:  What interactions/events/problems cause customers to run away to your competitors? 

• Insight into the needs of key segments:  How loyal are key segments (Next Gen customers, Gen X/Gen Y, repeat customers) to you?  What percent of their wallet are you attracting? 

• Direction for operations improvements:  How well are you performing on the key drivers?  How does that compare to what guests get from competitors?  Which locations are excelling – and what is it that they are doing?  Which locations are lagging – and what can they do better?

• Brand-operation alignment: How well does the customer experience match what you promise?  (remember the ‘fly the friendly skies’ ad of a major carrier?)  What’s causing disconnects?  

• Competitive intelligence:  Who/Where are you leading?  Where are you lagging? 

• The voice of the customer:  Verbatim comments about what it’s like to buy from you. 

While an effective CSM program won’t answer all the questions the organization might throw your way, our clients find themselves better prepared to advocate for their customers, support investment decisions of brand or line managers, focus on areas of importance to key customers-to provide insight to reduce risk around your business decisions.  Customer performance measurement is a tool that you should have in your kit to help you engage and retain your customers.  Maybe it’s time to "sharpen the tool!"

For more on getting the most from customer feedback, download our Consumer Pulse on Customer Satisfaction Programs

Posted by Judy Melanson. Judy leads the Travel & Entertainment practice and loves collaborating with clients on driving customer loyalty.  She's the mom of two teens and the wife of an oyster farmer. Follow Judy on Twitter at @Judy_LC

Seems like everywhere I turn I see a QR code. From product packaging to billboards in the airport, those funny little black and white designs are popping up all over—even on T shirts.  So we set out to ask consumers what they think about the 2D bar codes known as Quick Response or QR codes in our latest Consumer Pulse: Scan Me-9 Things To Know about Consumer Behavior and QR codes.

There is no doubt it’s a very cool tool brands and companies can use to engage and share information with consumers, but even the coolest  tools and applications need to provide meaningful information to be successful.  Just like Twitter, Facebook and other social media marketing tools it always comes back to insightful content that consumers will value. The success of QR codes will depend on the content behind the scan.

What do consumers think?  CMB partnered with iModerate Research Technologies to see why consumers scan QR codes and what they expect from the little black and white squares.

As a marketer here are a few facts that stood out to me. Watch This:

Nearly 1 in 5 who scanned a QR code made a purchase after scanning (Tweet this)

81% say they’ve seen a QR code, but only 21% knew what they were called (Tweet this)

Half of smartphone users have scanned a QR code (Tweet this)

70% of those who scanned QR codes, said it was very easy (Tweet this)

Results are mixed on QR codes' usefulness, 41% say the information they got was useful (Tweet this)

Magazines and newspapers are the most common QR source for those who’ve scanned a code (Tweet this)

46% of those who’ve scanned a QR code did so because they were curious (Tweet this)

We found smartphone owners and non-smartphone owners alike are curious about QR codes for information and for discounts, free gifts and exclusive deals, and they find the process of scanning to be really easy. But as more and more consumers get smartphones and the ability to scan, marketers must go beyond the novelty of the application if they expect customers to scan again and make it a regular part of the purchase process.

I’d love to know, are QR codes part of your 2012 marketing plan? Will QR codes gain steam in 2012 or fizzle out?

Download the full report here.

Posted by Kristen Garvey. Kristen is CMB's VP of Marketing, a mom of two, and thinks QR codes  can be as useful as the content behind them, and that they will have their place in the marketing toolbox for 2012.