Monday 3 November 2014

Refining our Value Proposition through Customer Interviews

SME Customer Interviews – Our Analysis
By Gearóid McKendrick

This week we met as a team on Monday (13th of October) to take stock of where we are with the project. We took this opportunity to compare notes and to analyse the customer interviews we have done so far, hoping to spot some trends and insights along the way!

For this meeting we focused on discussing the results of our SME interviews. While doing this we noticed some themes that were popping up. In particular independent café/restaurant owner were slightly anti-branding/marketing. They want to keep their independent feel and personal service and are cautious about upsetting or annoying their customers. However, they did seem to have a strong interest in the data analysis side of the business but would want to gather data in a way that wouldn’t annoy customers.

We noticed that those of whom we interviewed could be roughly placed in 4 different categories (below). This was interesting for us, as it allowed it to identify our SME customers even more specifically and eliminate those who we don’t think would be interested:

1. SME’s that don’t want to expand
We found that some small business do not want to expand – they are passionate about what they are doing and that’s enough for them. They have built a personal relationship with customers over the years and are happy to continue as they are. For them, this is a passion and they have no real need or desire to expand their business. Therefore the people in this segment may not be interested in a product that helps them make more effective business decisions.

2. SME’s that want to grow
This will be a key segment for our business. These are SME owners who are in the process of expanding or who want to expand their business. They want to bring their passion and love for what they do to more and more people. They are savvier about things like data analysis and marketing, but are still cautious about marketing. Above all, they want to keep their customers happy and would not like to do anything that is likely to upset them.

Some are too busy to look at data solutions but are tech savvy. They would like to implement a loyalty scheme for customers, but simple don’t have the time. For many, the only data they have is from the till system but they have little time to do analysis on this.

Others currently use digital loyalty cards and use this data to make business decisions. However this data is being used to bring in new customers rather than developing and retaining current customers. One of the biggest gains for these people would be making data analysis less time consuming and finding a way to dig deeper into data.

The people we spoke to in this category had strong opinions on data. They do not like the idea of gathering data as they have a close relationships with their customers and don’t want to jeopardise that. They are wary or losing their personal level of customer service. A pain for this category is finding a way to collect customer information in a way that doesn’t feel impersonal or too ‘corporate’.

3. Different Industries
We interviewed businesses from a range different sectors other than the service industry and found that they have different issues. Included in these interviews were travel, web and construction businesses.  One of their issues was pricing. They would like to find more trends and insights about their customer base and what their average spend is on similar services and products. This would allow them to price their product more effectively. They have made mistakes on pricing because of lack of information about how much customers are willing to pay. A gain for them would be replacing hindsight with insight!

Another pain for them is lack of qualitative customer feedback. However, some (specifically web based) find the information received from Google analytics is sufficient. Most of those interviewed would be interested in some sort of a corporate loyalty scheme to reward their corporate customers.

4. B2B’s
For B2B’s loyalty cards wouldn’t work for them but would be interested in customer and market insights Again this category would like information and insights to help them ensure that they are not making mistakes when making business decisions.

We found that a lot of decisions and information they have about customers are based on assumptions and observations rather than actual data.

So, what next?
We all agreed that we are finding it difficult to get people to interview, especially for the SME segment of the business. Although we have managed to gain some insights through interviews, we are concentrating our efforts for the next two weeks on tracking down more people. Aisling has put together a list of SME owner from LinkedIn. We are going to divide this list and get in touch with as many people as possible.

The insights we get from talking to people will be key to building our business successfully, so this is a priority for the new two weeks.



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