Monthly Archives: April 2013
From CRM to CEM: is it as easy as it sounds?
With CRM’ organisations took an’ inside-out’ approach to doing business with customers, though I doubt they knew that is what they were doing when they were doing it. When this didn’t work out as planned, some shifted to advocating an ‘outside-in’ approach and called it Customer Experience Management. I get that when it comes to writing or talking it is easy to shift from ‘inside-out’ to ‘outside-in’. What is it like in practice? What does it take to truly see the world through the eyes of our customers?
My experience is that really takes something to see the world through the eyes of another. My experience is that it is a huge ask to experience the world as another experiences it. My experience is that it is all to easy to be persuade oneself that one has shifted from an ‘inside-out’ view to an ‘outside-in’ view and yet be firmly stuck in an ‘inside-out’ view.
Aravind Eye Hospital: where ‘free’ costs 100 rupees!
What does it really take to see the world through the eyes of our customers? Allow me to share this example which I came across in a wonderful book, which I throughly recommend reading, called Infinite Vision:
While giving away free services might appear to be easy, Aravind’s experience proved to the contrary. “In the early days, we didn’t know better,”……”We would go to the villages, screen patients, and tell those who needed surgery to come to the hospital for free treatment. Some showed up, but a lot of them did not. It was really puzzling to us. Why would someone turn down the chance to see again?” Fear, superstition, and cultural indifference can all be very real barriers to accessing medical care, but Aravind’s leaders were convinced that there was more to it than that. After a few more years and several ineffective pilots of door-to-door counseling, they arrived at the crux of the issue. “Enlightenment came when we talked to a blind beggar,”….. When pressed on why he had not shown up to have his sight restored, the man replied, “You told me to come to the hospital. To do that, I would have to pay bus fare then find money for food and medicines. Your ‘free’ surgery costs me 100 rupees.”
…….. The research found that transport and sustenance costs, along with lost wages for oneself and accompanying family member, were daunting consideration for the rural patient. Aravind learned a valuable lesson: just because people need something you are offering for free, it does not mean they will take you up on it. You have to make it viable for them to access your service in the context of their realities.
Aravind Eye Hospital: it is not enough to see the world through customer eyes, you have to be moved to act
So that is the first step, genuinely seeing the world through the context of the lives of your customers. And it is makes no difference at all unless your organisations acts on what it has learnt. What did the folks at Aravind do? Let’s read some more from the book:
So Aravind retrofitted its outreach services to address the chief barriers. In addition to the free screening at the eye camps, patients were given a free ride to one of its base hospitals, where they received surgery, accommodation, food, postoperative medication, return transport, and a follow up visit in their village, all free of charge……
What difference did this make? Once more from the book:
“Once we did that, of course, our expenses went up,”…… “But more importantly, our acceptance rate for surgery went up from roughly 5 percent to about 80 percent.” For an organisation aspiring to rid the world of needless blindness, this was tremendously significant….
Aravind: two things are critical
What do the folks at Aravind say about this experience of theirs? Let’s listen and learn:
“In hindsight, we found two things are critical,”…..”You have to focus on the nonuser, and you have to passionately own the problem. You can address the barriers only when you own, not shift, the problems.” Paradoxically, that mindset led to what is perhaps the most collaborative outreach system the world of eye care has ever seen.
How does your organisation measure up? Do you really get how your organisation, your offer, shows up for your prospects? Do you really get how your customers experience your organisation across the customer journey? Is your leadership committed to doing what it takes to make it easy for prospects to buy from you? And for customers to keep doing business with you? Is your organisation up for passionately owning the problem or is it designed to hide and/or shift the problems on to customers and others?
Jeff Bezos and Amazon have been in the news courtesy of Bezos latest letter to shareholders. If you have any interest in what constitutes a customer-centric orientation then I throughly recommend that you print out this letter and read it. If you are up for creating a customer-centric organisation then I recommend that you read this letter every day.
Annette Franz on Jeff Bezos and Customer Experience
Annette Franz over at CX Journey has a written an enthusiastic post referring to Jeff Bezos as a CX dream come true!. I recommend reading it, and I share one particular part of her post with you:
As a leader, Mr. Bezos shows that he’s both the customer and the employee champion. Reading through the 2012 letter again, the following traits and qualities come to mind – all of which are certainly descriptive of a customer-centric culture:
- Best interest of customers
- Not being opportunistic
- Customers ahead of shareholders
Do any of those describe your organization’s values and culture?
Bruce Temkin on Amazon and the customer-centric blueprint
Bruce Temkin says that Bezos letter describes Amazon’s customer-centric blueprint. Bruce picks up on Bezos strategy of making investments and sacrifices today (to benefit customers) knowing that some of these will pay of in the long term. There is one particular paragraph from Bruce’s post that I share with you here as I say it goes to the heart of the customer-centric orientation (bolding is my work):
Bezos understands the value of Amazon’s most critical asset, customer loyalty, which I’ve defined as the willingness to consider, trust, and forgive. That focus is what put Amazon.com on the top of the retail sector in the 2013 Temkin Experience Ratings. Great leaders focus on building that customer loyalty asset with the knowledge that it will generate the best returns for all stakeholders in the long run.
My take on Jeff Bezos, Amazon and the customer-centric orientation
I say that the core of authentic customer-centricity is a relentless ongoing commitment to creating compelling value for customers. What does Jeff Bezos say? Here is an extract from his 1997 letter (highlighting is my work):
From the beginning, our focus has been on offering our customers compelling value….. we set out to offer customers something they simply could not get any other way, and began serving them with books. We brought them much more selection than was possible in a physical store, and presented it in a useful, easy-to-search, and easy-to-browse format in a store open 365 days a year, 24 hours a day. We maintained a dogged focus on improving the shopping experience, and in 1997 substantially enhanced our store. We now offer customers gift certificates, 1-ClickSM shopping, and vastly more reviews, content, browsing options, and recommendation features. We dramatically lowered prices, further increasing customer value.
But we are not in 1997 and Amazon is now the gorilla of the online space not an upstart, a revolutionary. So lets take a look at the present situation. I say the real test of authentic customer-centricity is what you do when you have arrived, when you dominate the marketplace. I have worked with many large successful organisations. Again and again I have seen these organisations ‘squeeze’ the customer and take ‘advantage’ of the customer’s trust or the customers weakness to maximise profits. Has Amazon fallen into this trap? Here are two paragraphs from the April 2013 letter:
When you pre-order something from Amazon, we guarantee you the lowest price offered by us between your order time and the end of the day of the release date…….. Most customers are too busy themselves to monitor the price of an item after they pre-order it, and our policy could be to require the customer to contact us and ask for the refund. Doing it proactively is more expensive for us, but it also surprises, delights, and earns trust.
In 2012, AWS [Amazon Web Services] announced 159 new features and services……. AWS Trusted Advisor monitors customer configurations, compares them to known best practices, and then notifies customers where opportunities exist to improve performance, enhance security, or save money. Yes, we are actively telling customers they’re paying us more than they need to. In the last 90 days, customers have saved millions of dollars through Trusted Advisor, and the service is only getting started. All of this progress comes in the context of AWS being the widely recognized leader in its area – a situation where you might worry that external motivation could fail. On the other hand, internal motivation – the drive to get the customer to say “Wow” – keeps the pace of innovation fast.
Why has Amazon bucked the trend here? Why is Amazon not exploiting its dominant position? Why is Amazon not extracting value from its customer relationships to maximise short-term profits and drive up the share price?
My answer is that Bezos is not playing the profit maximisation game. I say that he is playing “maximise service not profits” game and as such he has built a culture and management doctrine that drives the appropriate thinking and behaviour. Here’s what Jeff Bezos say in his l2013 letter:
One advantage – perhaps a somewhat subtle one – of a customer-driven focus is that it aids a certain type of proactivity. When we’re at our best, we don’t wait for external pressures. We are internally driven to improve our services, adding benefits and features, before we have to. We lower prices and increase value for customers before we have to. We invent before we have to. These investments are motivated by customer focus rather than by reaction to competition. We think this approach earns more trust with customers and drives rapid improvements in customer experience – importantly – even in those areas where we are already the leader.
I say there is value in simplicity. I say that there is value in exceeding customer expectations. I say that one of the best ways of exceeding customer expectations is to give customers more than they expect. I say that customers expect companies to play dirty and take advantage. I say a sure route to delighting customers is not to do this and instead treat people right. What does Jeff Bezos say?
To me, trying to dole out improvements in a just-in-time fashion would be too clever by half. It would be risky in a world as fast-moving as the one we all live in. More fundamentally, I think long-term thinking squares the circle. Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas. Take a long-term view, and the interests of customers and shareholders align.
In amidst all this content it is easy to miss what really matters: the context. So let’s just take a look at the context. Between the 1997 letter and the 2013 letter, a span of 15+ years, there has been consistency:
- Leadership: Jeff Bezos continues to be in charge
- Focus: creating compelling value for customers
- Strategy: take calculated risks, innovate, invest today to create value for customers and look for payoff in terms of customer loyalty and market leadership in the longer run
- Management doctrine: the fundamental pillars of the management doctrine are set-out in the 1997 letter.
Before I launch into this post, I want you to know that once upon time I was deeply immersed in business process design and business process re-engineering. I was process mapping in the late 80s before process mapping became a huge hit and became expert at it in the 90s.
You cannot excel at the Customer Experience game with a process mindset
I say process thinking occurs at one level of consciousness. I say the process mindset fixes one’s consciousness at the functional level: the level of work. Which means that the process mindset become permeated by mechanical/activity thinking and fixated with throughput, time taken, speed, cost, and efficiency.
What happens when the process mindset has infected the organisation? My experience is that the process mindset drives out humanity and all that goes with human beings: empathy, flexibility, creativity, adaptability, responsiveness to the unique human being, the unique situation.
What happens when you take process people and get them working on the Customer Experience? They inevitably focus on optimising the process: throughput, speed, efficiency, and standardisation. In such an organisation quality becomes adherence to the process/script/standard. What gets missed is that if you are playing the customer relationship-customer experience game then quality can only be measured in terms of quality of connection with the customer.
I say that if you want to excel at the game of Customer Experience then you have to transcend the process mindset. Why? I say that there is one level of consciousness associated with the process mindset. And another, different level associated with Customer Experience. Think in terms of an elevator that stops at different floors of consciousness. On one floor is the process mindset and all that goes with it. The Customer Experience mindset is on a different floor. You cannot be at both floors at the same time.
You object, you say that they are similar. To which I say that rugby and soccer do have similarities and yet are distinct games. And what makes for a winning combination in soccer does not make for a winning combination in rugby.
Example: from ‘Registrations’ to ‘Welcome to TelcoX’
Can you make dramatic improvements in the Customer Experience without changing the people, without doing lean to business processes, without changing the IT systems? Yes, you can. How? By operating from Customer Experience consciousness. Allow me to give you an example.
One of my friends, a Customer Experience professional, told me this story. His organisation was helping a telco to improve the customer’s experience at the very start of the customer journey: when the customer signs-up and has to be registered on the various systems so that he can use his mobile phone. What was the name of the team doing this work? Registrations. Makes perfect sense if you come from a process mindset. From a process mindset the job to be done is the job of registering the customer on the system.
What happens when you look at the world from a Customer Experience consciousness? You end up renaming the team Welcome to TelcoX (I am not at liberty to name the telco). Notice the difference? Stop and really notice the difference in emotional tone. Do you notice that Registrations is flat, devoid of emotion, generates a focus on the task? Do you notice that Welcome to TelcoX generates emotion? I bet you can even notice a difference between “Welcome to TelcoX” and “Welcome to TelcoX!”
“Welcome to TelcoX” is rich with meaning, with guidance, it orients attitude and calls forth a certain kind of behaviour whilst ruling out another class of behaviour. Do you notice that it taps into a human stereotype of welcoming guests to our home? What do we do when we welcome guests to our home? Do we simply register them? Let them in and hand them a drink? Or do we make sure we connect with them, show the right emotion, offer them a drink, get them a drink, introduce them to a guest they are likely to enjoy talking to, make sure they are comfortable. And then go and greet the next guest?
What else happens when you operate from this frame, the human frame of relationship? You ask yourself what is the equivalent in the telco world of welcoming your guests and getting them to the emotional state where they are comfortable at your home or party. This led to the folks at this telco realising that the end point of their interaction with the customer was not an account registered on the system. No, the end point was a happy customer who was up and running using his phone. This meant bringing additional work steps in the Welcome to TelcoX team; steps that had until then been in another team; steps that had caused problems for customers and driven customers to call in and getting them addressed.
By transcending the process mindset and operating at this human-empathic-storytelling level of consciousness, customer satisfaction rose, employee engagement rose, and the telco saved money by not having to take calls from dissatisfied customers ringing up to say that they could not use their phone. And asking for help. Notice, the telco did not have to undertake a culture change programme.
I say that one of the biggest hurdles to excellence in the game of Customer Experience is the process mindset which is endemic in large organisation. I say that it is a big mistake to hand over the Customer Experience to folks who are gripped through and through by the process mindset. I say that if you want to excel at the game of Customer Experience then you have to involve and listen to people who excel at the human game: the people who excel at empathy and have sound business sense.
The genesis of this post is a conversation that I had recently with Rod Butcher, a man who has been at the coal face of Customer Experience in a large organisation.
Standing outside of an organisation, as a bystander, it is easy to espouse the value and importance of the outside-in approach to Customer Experience. It seems so easy; just about everything is easy when seen from a distance. If on the other hand you have spent time in the ‘belly of the whale’ you get a visceral appreciation for the huge importance of inside-out: what matters in the organisation, what doesn’t matter, what works, what doesn’t work, what gets done, what does not get done, what the people who really matter are willing to do and not to do….
Why are so many large companies struggling with genuinely taking a customer-centric approach? Why is the dominant issue with VoC the inability of the organisation to act on the voice of the customer? Why is it that despite all the talk of collaboration and social business there is so little genuine collaboration? Allow me to share two stories with you.
When I moved into my new home over 10 years ago gardening called to me; I had no experience of gardening. One day I found myself in a garden centre and a number of plants called to me. So I bought these plants home and set about gardening. That is when the obstacles arose. The soil in my garden didn’t match that required by the most expensive plants. Then there were issues to do with sunshine: some required lots of sunshine other liked shade; some needed lots of watering, others little….
Most of the plants struggled to thrive and many of these eventually died. Why? Because I was not willing to do what it took to provide what the plants needed. I had rather hoped that the I could just buy then, find a spot in the garden where I thought they looked good, plant them there, and water them time from time. That is to say I was looking for the plants to fit into my priorities, my way of doing things.
I recently visited friends who took great interest and pride in taking care of their precious plants: young olive tree, young lemon tree etc. I was shocked to find that both of these plants looked withered, dry, dead. Why? What happened? Clearly, they had not been looked after. Why? Because both of my friends had turned their attention to stuff that showed up for them as being more important. Put differently, my friends had failed to sustain their commitment to these trees. Why? Because they were not central to their lives; they were merely hobbies and or decorations.
What have a I learned about gardening? I have learned to start with a good understanding of my garden and then choose plants that will thrive in my garden. I have learned that if I really want acid loving plants in my garden, which does not support them naturally, then I first need to do the work of digging out a specific part of the garden and putting the right soil. And I have learned that I have to be love these plants so much that I am happily provide them with the regular care they need.
I’ll leave you to figure out the organisational lessons. For my part I agree with Rod Butcher: outside-in is not enough, what really matters is the willingness of the organisation to change, or not, from the inside-out.