Cracking the Customer Code

Cracking the Customer Code
Chain Restaurants
Fulfilling the brand promise
Big companies are carefully organised so
most companies fail to properly join the
that their departments work to align core
dots between their brand tracking and
strategic issues over the business as a whole.
customer experience programmes.
But that can be difficult in the vital
That lack of continuity is a serious issue
relationship between brand and
because, perhaps more than any other
customer experience. Often, marketing
two issues, aligning brand and customer
“owns” brand strategy, positioning
experience is essential to drive growth.
and communications, while customer
experience is delivered in diverse ways,
through multiple departments such as
retail, call centres and communications.
The most successful and profitable
customer relationships are achieved when
customers feel that the brand promise is
being truly fulfilled. Especially in a sector
Consequently, brand and experience
like chain restaurants that is crowded with
are measured in different ways and
competing offerings.
To understand more about customer experience,
TNS UK conducted a multi-category quantitative study
among 4,000 consumers.
The study was based on proprietary methodologies –
to explore the following:
Customer experience (TNS TRI*M)
Brand equity and growth potential (TNS ConversionModel)
Brand positioning (TNS NeedScope)
Fieldwork was conducted in April 2014 with small scale qualitative
work in support.
The research covered 12 restaurant chains: Bella Italia, Brewers Fayre,
Burger King, Café Rouge, Frankie & Benny’s, Harvester, McDonald’s, Nando’s,
Pizza Express, Pizza Hut, Prezzo and J D Wetherspoon.
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The customer code
Charting a route to alignment of brand
The proliferation of digital media – and
and experience is like cracking a code.
especially social media – ensures that any
It is difficult and requires careful
thought and meticulous attention to
detail – but when executed successfully,
brands become clearly positioned in the
competitive landscape and capable of
delivering against customer expectations.
For customers, the brand is the experience
and vice versa. There is no distinction
between the two. The brand positioning
creates an expectation of the experience,
and the experience influences the way
they think about the brand.
When brand promise and customer
experience are perfectly aligned, the
brand is in harmony with its customers.
But when customers find a disconnect
between the brand promise and what
they experience, they notice: and they
feel let down.
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Defines
expectations
perceived disconnect can reach a large
audience fast. Negative comments on
digital media about a brand that fails to
deliver can trigger doubts among other
consumers, who are receiving offers and
brand messages from rivals at the same
time on the same devices.
Brand
promise
Retaining existing customers and
attracting new ones in this competitive
environment is challenging and costly.
Managing customer relationships has
never been more important.
Cracking the customer code puts a brand
on the path to business growth.
Customer
experience
“
S ome brands lose
the plot and they
care more about
the brand than
what they are
supposed to be
delivering. Brand
is brand – it’s all
marketing spin.
There has got to be
something tangible
behind it.
Male, 46 years old
”
Creates the
brand perception
Cracking the Code
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Be good at what you need to be good at
Bringing brand promise and customer
This allows investment of time and
experience into alignment may sound
money to focus on areas that will deliver
relatively simple. But customer experience
maximum ROI.
is complex, with many strands that are
hard to untangle if the brand is to reach
a real understanding.
Every customer is different, and their
experience of the brand ranges across
service delivery and communication
involving a whole range of channels.
It’s hard for businesses to know which
area of customer service to focus on to
drive growth.
Many companies make the mistake
of trying to be good at everything.
It’s obvious that achieving this simply
isn’t possible – at least not at a price
consumers are willing to pay.
Brand promise fulfilled
One example is McDonald’s – it is the 4th
most valuable brand globally as measured
by WPP’s BrandZ measure of brand value,
so it is clearly delivering for its customers.
Our study reveals McDonald’s is out in
front of the chain restaurant sector when
it comes to speed, value, ease of dealing
with and being child friendly: the building
blocks of its brand offering.
It isn’t in the Top Ten in the sector for food
quality and restaurant environment. But
McDonald’s
they are important factors, and it matches
its closest rivals – KFC and Burger King –
on both.
McDonald’s offers the optimal experience
Leading vs sector
to its target customers. It’s best at what
Speed of service:
No. 1
Restaurant environment: No. 17*
Value for money:
No. 2
Food quality:
Easy to deal with:
No. 1
expect from that brand. And being good
Child friendly:
No. 1
enough at other things that are important
Source: TNS
Instead of a scattergun approach,
investment of time and money should
aim at delivering an optimal customer
experience. That means being the best in
the market at giving customers what they
they expect it to be best at, and good
enough at the other things that all chain
restaurants should be good at.
Weakness vs sector
No. 19*
*But it matches KFC and Burger King on both
for the category.
The fourth most valuable brand globally
™
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Mapping the way to growth
To decide where to focus its resources on
customer service, a brand requires a clear
picture of how well its customer experience
currently relates to its brand positioning,
and a map of its options to make it
stronger, more differentiated and more
profitable.
To crack this code, TNS conducted a
self–funded research study among
4,000 consumers across four consumer
categories: restaurants, fuel, home media
and utilities.
We applied three of our validated analytics
to each brand to understand:
The existing customer relationship
The size of the opportunity and risk
for each brand
How well brand and experience
are aligned
Customer relationships
Layers of influence
Brand and experience
We used TRI*M, our approach for helping
We used our NeedScope tool to identify,
manage customer relationships, to identify:
for each brand:
Absolute and comparative
The level of alignment between
relationship levels
brand and experience
Perceptions of service quality
Differentiation opportunities
Elements the brand should focus on
Implications for style of delivery
to strengthen the relationship
Hygienic factors to maintain
Where performance can be reduced
without damaging the relationship
Opportunity and risk
We used our ConversionModel tool, to put
a financial value on the brand’s untapped
potential – or on the market share that the
brand risked losing.
‘What if’ projections for evolved
positioning / delivery
This booklet describes the restaurant
They have this in common with other
Many categories have fewer levers at
study in some detail. It shows how two
categories such as banking, fuel, airlines
their disposal – for example, while chain
brands, in quite different ways, have built
and hotels.
restaurants have control over the customer
customer experiences that are in strong
alignment with their brand positions.
environment, brands such as home media
Service
and insurance must rely on getting it right
in terms of brand personality, the product
The research in this category covered
12 restaurant chains.
and service delivery.
Product
In other areas, such as utilities, brands
There are particular challenges and
opportunities for chain restaurants in
have limited ability to differentiate on
Environment
product, apart from varying tariffs,
aligning brand and experience, because
so they must rely on service delivery
customer experience is more multi-layered
than in other categories.
and brand personality.
Brand
Personality
Chain restaurants can differentiate their
customer experience across four key
dimensions to achieve that alignment
with brand promise.
Restaurants
Airlines
Finance
Hotels
The customer service
The product
The environment
The brand personality
Fuel Retail
The research covered 12 restaurant
chains: Bella Italia, Brewers Fayre,
Burger King, Café Rouge, Frankie
& Benny’s, Harvester, McDonald’s,
Nando’s, Pizza Express, Pizza Hut,
Prezzo and J D Wetherspoon.
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Cracking the Code
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Nando’s
and
Prezzo
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Two offerings: two success stories
Our case study on chain restaurants
The customer experience:
Combining performance and preference
focuses on Nando’s and Prezzo, two
Nando’s & Prezzo
creates a one-number customer
chains with very different offerings.
In the fiercely competitive restaurant
satisfaction summary – the TRI*M index.
Our analysis shows how both have
sector securing customer loyalty is key.
Both Nando’s and Prezzo have strong
succeeded by delivering a strong
To measure the strength of the brands’
customer relationships. Both chains
alignment of customer experience
existing customer relationships, TNS
score very strongly on performance,
with the brand promise.
applied its TRI*M analysis technique,
though Nando’s is significantly higher
which measures the strength of the
on preference.
relationship between the brand and its
customers.
it’s important to evaluate not just
its own, the strongest relationships exist
performance – how consumers rate the
where customers not only rate the brand
overall performance of an organisation or
highly but also prefer it to other brands.
or brand to competitors.
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the strength of its bond with customers:
strong performance is not enough on
which consumers prefer that organisation
91
This is important for Nando’s in terms of
When measuring customer loyalty
brand; but also preference – the extent to
Performance
Preference
Performance
Customer
relationship
index (TRI*M)
80
89
Preference
Customer
relationship
index (TRI*M)
74
Nando’s TRI*M index of 80 is the best in
70
the category, and Prezzo’s score of 74 is
third: the category average is 69.
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The growth opportunity: Nando’s and Prezzo
With strong customer loyalty what are
ConversionModel is TNS’s approach to brand equity
+0.7%
£50m
the prospects for long-term growth?
By comparing the level of customer desire for the brand with
To understand brands and measure
the brand’s actual market share, it identifies and quantifies
the growth potential, TNS applied its
opportunities for growth, where share is at risk. Market context
ConversionModel methodology.
data provides more granular actionable insights into:
Which rival brands represent growth opportunities
Demand for both brands is higher than
Which pose risks to market share
their current market share. For Nando’s,
Within which segments the risks and opportunities apply
opportunity exists to grow market share
Which levers to use to deliver optimum results
from 5.9% to 6.6% (worth about £50m
a year); for Prezzo the potential is even
greater with the chance to take an extra
1.3% of the market, a £96m annual
ConversionModel overcomes two significant weaknesses of more
5.9%
conventional brand equity approaches:
£424m
1. Failure to take into account that human beings are comparative
opportunity, bringing its overall share
and hence it is critical the brand equity preference metric is
to 3.5%.
asked for other relevant options for the customer. What matters
+1.3%
£96m
Our findings also pointed to a specific
is the relative rather than the absolute score a consumer gives.
2. Failure to take into account circumstances that play
demographic opportunity for Prezzo.
a role in what people do e.g. market factors.
It found especially strong demand for
the brand from women aged 25-34, and
estimated that 24% of the brand’s growth
opportunity comes from this group.
2.2%
£163m
Key
Growth
potential
Current
market
share
Share value
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The customer service keys to success:
Nando’s and Prezzo
Analysis of some customer experience
In order to understand customer
hygienics and key drivers for both brands
experience in more depth and really
shows a similar pattern to that found for
get behind what is the right type of
McDonald’s. Nando’s and Prezzo both
experience for different brands, we need
deliver strongly on the qualities that are
to go much further into the experience:
important for their brand offering, while
we need to understand the appropriate
not excelling in other areas.
brand positioning.
Performance on key customer experience metrics, relative to the category average
Hygienics
Drivers
Average
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Cracking the Code
Speed of
being served
Value for money
Above average
Accuracy
of delivering
my order
Food quality
Accuracy of bill
Convenient
payment options
Friendly staff
Restaurant
environment
Helpful staff
Range of
products
and services
Below average
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Brand positioning: Nando’s and Prezzo
How are Nando’s and Prezzo achieving
Placed in this framework, the brand
such strong customer loyalty and
positionings of Nando’s and Prezzo fall
opportunities for growth? The answer
into the ‘Carefree’ and ‘Stylish’ areas
lies in their respective brand positionings,
respectively.
framework. The framework identifies
the fundamental emotive and functional
customer needs within a category
and measures how brands map against
those needs.
NeedScope enables consumer needs to
be plotted in six segments, to see where
to meet friends, has a modern and
Customer service style
Great to meet groups of friends
Friendly, easy-going staff
Modern, vibrant feel
Informal and cheerful
Fresh, trendy feel
Dyna
mic
ee
refr
a
C
vibrant feel, and the staff are informal
and easy going.
In ‘Stylish’, the feel is more luxurious,
plush and adult, and offers more privacy.
Staff are knowledgeable, respectful
and efficient.
of fulfilling customer needs. This gives
As the brand promises are different, so
an opportunity for future planning for
are their customers’ expectations of the
a brand. For example: to strengthen its
experience and environment.
Stylish
competing brands are positioned in terms
The ‘Carefree’ space is a great place
Environment
Friendly
which TNS evaluated using our NeedScope
Carefree
offer against a particular need versus
competitors, or to change its positioning
by amending its offer to meet a different
set of customer needs.
For chain restaurants, TNS identified these
Me
segments as Carefree, Dynamic, Stylish,
ll o w
r
D i sc e
Mellow, Friendly and Discerning.
nin
g
Stylish
Environment
Customer service style
Very attentive staff
Deals with me efficiently
Luxurious, plush feel
Professional and formal
Somewhere adults enjoy
Staff treat you with respect
Provides privacy
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Nando’s under the microscope
Looked at in detail, the different aspects
To measure how strongly the brand is
of Nando’s personality – lively/outgoing,
meeting the needs of its segment, we
carefree/fun-loving and adventurous/
calculate an IQ score – the irresistibility
daring – are all closely grouped in the
quotient. A strong IQ score is not just
‘Carefree’ area.
a useful figure for benchmarking, it is
including the environment and style of
sales success.
‘Carefree’ area, demonstrating a close
Nando’s, giving the brand an irresistibility
alignment of brand promise and
score (IQ) of 78 in the ‘Carefree’ space.
customer experience. It is very rare for
Based on our database of over 2,000
all the dots in a NeedScope framework
brands that puts it in the top 10%.
We know from the TRI*M analysis that
The position of the dots within ‘Carefree’
Nando’s has an outstandingly strong
– mainly closer to the rim than to the
relationship with its customers. The high
centre – signifies a relatively high level of
IQ score shows that Nando’s is delivering
differentiation. For example, the purple
powerfully to fulfill its promises to
dots, representing the three aspects of
its customers.
the brand personality are all close to
Stylish
Strong alignment is driving desire for
Me
the rim. The larger dots show
a stronger association.
ll o w
r
D i sc e
Brand
“
ou pay in Nando’s before you get the food,
Y
you don’t have to sit there and wait for a bill,
you get up and leave when you’re ready.
Female, 27 years old
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”
Personality
Lively, outgoing
Carefree, fun loving
Adventurous, daring
Cracking the Code
80
Dyna
mic
ee
refr
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proven to relate to brand usage and
service – are also grouped in the same
to be aligned so closely.
78
Friendly
The customer experience factors –
Customer
relationship
index (TRI*M)
IQ
nin
g
Experience
Feeling
Energised, stimulated
Happy, joyful
Brand image
Popular
Trendy
Modern
Environment
Fresh, trendy feel,
Modern, vibrant feel,
Great to meet groups,
friends
Customer service style
Informal and cheerful
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Prezzo under the microscope
Prezzo’s brand values are also quite tightly
Nando’s and Prezzo are clearly defined
aligned, this time across two adjoining
brands, giving customers a clear idea of
segments – ‘Stylish’ and ‘Discerning’, on
what to expect. They deliver an aligned
the opposite side of the framework from
experience – they are not the best on
Nando’s.
every element, but they excel where it
The core values of the brand around style
Customer
relationship
index (TRI*M)
IQ
77
ee
refr
a
C
matters to fulfil their brand promise.
and a sense of control and knowledge
The end result is that both have achieved
are translated through to the customer
strong customer relationships, and they
experience of a luxurious and more formal
have good prospects for further growth.
74
Dyna
mic
environment and a professional and
“
At Prezzo you can drop in for a quick
lunch or you can dress up and go out
for an evening.
Female, 25 years old
”
Stylish
Friendly
knowledgeable style of service.
Me
ll o w
r
D i sc e
Brand
Personality
Stylish, sophisticated
Intelligent, thinking
Organised, capable
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Cracking the Code
nin
g
Experience
Feeling
Confident, self assured
Luxurious, indulgent
Under control, in order
Knowledgeable,
competent
Brand image
Premium
Exclusive
High quality
Professional
For older people
Environment
Luxurious, plush
Suitable for business/
formal meals
Customer service style
Professional and formal
Knowledgeable staff
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The Café Rouge disconnect
As a contrast to Nando’s and Prezzo,
This picture suggests that customers are
Café Rouge is an example of a brand
less clear about what Café Rouge would
where consumers see a disconnect
be like.
an example, it was not the least aligned
in the study.
Compared to the clear and well-aligned
offer from Nando’s and Prezzo, an offer of
the IQ score in ‘Discerning’ – the strongest
for chain restaurants, Café Rouge shows
need state for the brand – is a relatively
a wide scatter of promise and delivery
modest 64.
framework is not included. And many
closer to the centre, and therefore less
TRI*M analysis shows a customer
relationship index of 67, below the
category average.
differentiated.
Stylish
of the promise and delivery aspects are
Me
ll o w
r
D i sc e
Brand
Personality
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67
Dyna
mic
ee
refr
a
C
this type is less compelling to consumers:
Plotted on the NeedScope framework
aspects – only one segment of the
64
Friendly
between promise and delivery. It is simply
Customer
relationship
index (TRI*M)
IQ
Cracking the Code
nin
g
Experience
Feeling
Brand image
Environment
Customer service style
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Next steps
Brand and experience
Your customers don’t view them
separately. You are stronger when
they are united. Prioritisation,
investment and actions are easier
TNS can act as the code breaker for your
done on the four categories, building
customer experience.
case studies for your brand to provide
We can do this in a number of ways:
A review of the story for any brand
to manage when you have both
in the four categories covered in this
perspectives. And we would be
research
delighted to help you achieve this.
Research similar to the work we have
brand, to cut through to the optimal
A workshop, for any brand or
category, exploring how to improve
brand and experience alignment. This
would involve your existing brand
and customer satisfaction research
data in conjunction with our category
knowledge
guidance on building a stronger
customer experience for improved
competitiveness
Tracking the effectiveness of actions to
align customer experience and brand
Mystery shopping to identify how the
experience a brand is delivering at
customer level is matching the brand
promise
Market-leading qualitative research to
provide even deeper understanding and
bring all our research insights alive for
your business
For more information please contact
Maureen Duffy
CEO, TNS UK
maureen.duffy@tnsglobal.com
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Other case studies in this series
Home media
How an established brand with a clearly defined brand position is let
down by an unaligned customer experience that isn’t delivering on
many of the basics.
Fuel
How brand differentiation could be built through a differentiated
customer experience proposition.
Utilities
The opportunity to add value through brand and customer experience
in a category that is dominated by price.
To obtain copies, contact
Maureen Duffy
CEO, TNS UK
maureen.duffy@tnsglobal.com
TNS
6 More London Place
London SE1 2QY
United Kingdom
t +44 (0)20 7656 5294
www.tnsglobal.com/uk
Twitter: @tns_uk