Category Archives: Case Studies

What Kind Of Communicating Generates An Uplifting Customer Experience?

The Interplay Between Communicating & Relating

The relating that occurs between human beings is a function of the communicating that is occurring between these human beings; the communicating that is occurring between human beings is function of the relating that is occurring.  Which is to say that the communicating and relating are essentially in a dynamic dance with one another.

Which is primary? It occurs to me that communicating is primary: as linguistic beings we cannot help but communicate and this communicating influences/shapes relating. It is through your communicating with me that I get access to your relating to me: how you see me, how you are positioning yourself in relation to me, how you are likely to treat me, whether I can trust you or not, whether you are ‘giver’, a ‘matcher’, or a ‘taker’.

If you get this then you get the critical importance of the communicating that occurs between the people in an organisation and the customers of the organisation. How the people in your organisation communicate with customers will impact the customer experience – sometime dramatically. Let’s take a look at two examples and listen to their impact.

The Marketer’s Way Of Communicating With Customers

Take a look at this email from ILX . Pretty graphics aside, this is what the email says:

Let us pay your exam fee!

WE’VE MISSED YOU

As a previous ILX customer we just wanted to touch base with you and see how your training went and more importantly find out if your career has benefited from gaining new qualifications with us!

We have included a free Best practice map PDF for you which may help you work out what your next step could be. Download PDF >

Is there anything we can help you with in furthering your qualifications? We are here and ready to give you any assistance that you may require.

Maybe you’re considering another course with ILX?

We are constantly developing our e-learning to ensure it’s the best in the industry so you get the highest quality learning that we can provide.

We hope to hear from you soon!
Quote MISSYOUEMAIL when contacting us

If you have more than five people who wants to take part in our e-learning please contact one of our dedicated team for the best offers at sales@ilxgroup.com or call us on +44 (0)1270 611 600
http://www.ilxgroup.com

What was my experience on opening-reading this email communication? This communication showed for me as inauthentic: false.  How can ILX miss me? The people in this organisation do not know me!  And if they genuinely wanted to touch base with me and find out how my training went then why did they not call me a year ago when I actually took the training? And what do they mean by “Is there anything we can help you with in furthering your qualifications?”  They certainly don’t mean help as in help of the everyday human kind. What they mean is, what can we persuade you to buy from us in the guise of helping you.

So how am I left feeling about ILX? I am left feeling that ILX is just another ‘taker’ organisation looking to extract as much money as they can from me. Especially now that summer is here and people will be taking holidays rather than taking courses.  So their offer to pay my exam fee is no act of generosity.

The Human Way To Communicate With Your Customers

Take a look at the following email and ask yourselves how you would be left feeling on opening-receiving this email:

maz,

Thank you!

We just received your order and will process it within 48 hours.

Your order # 204-0742925-4073103 shows the following items:

Love and Profit: The Art of Caring Leadership

If you have any questions or issues with this order please email us by replying to this message or email us at [email removed].

If you have any concerns at any time about this order, please email us right away with your Order ID#.

Thank you!

 

Sincerely,

Melissa

Supervisor

Customer Service

I found myself surprised and delighted. Why? Because this email speaks to me as I wish to be spoken with: it is everyday communication between two human beings.  It oozes the kind of humanity that speaks to me: friendliness, warmth, caring. I find myself wanting to know more about this organisation (Slategrey Books UK) and about Melissa.

Why Have I Shared This With You?

If you are serious about showing up and competing on the basis of the Customer Experience then you need to pay attention to the quality of your communicating with your customers.  Take a good look at your communications across the customer journey ask yourself if your communications are generating the kind of customer experience that builds connection. If they are not then you are likely to be better off using the services of good copywriters than spending a fortune on marketing automation systems that ultimately will enable you to deliver ‘junk’ to your customers at scale.  And in the process annoy customers like me who then end up sharing their experience on social media – just like I am doing now.

Can You Improve The Customer Experience Without Spending A Fortune On Information Technology?

Does Customer Experience require information technology?  Allow me to rephrase this question, is it necessary to purchase-configure-operate an arsenal of information technologies to improve the Customer Experience?  Which is my way of asking, if it is necessary to turn Customer Experience as a business philosophy and/or value proposition into CRM: an information technology?

It occurs to me that it is mistake to collapse information technology and Customer Experience together – to make the kind of mistake that was made with CRM.  I say that your organisation can impact-improve the Customer Experience in many ways that do not require information technology.   Where is my proof? Let’s start with my recent experience.

Why Didn’t I Buy From Two Well Known Retail Brands?

I needed more trousers; my preference, some would call it addiction, is for Chinos. So my nephew drove me to a shopping centre outside of town. On his advice, I went to the first shop, found what I was looking for. And in the process I came across summer shorts. So with a handful of trousers and shorts I headed to the fitting rooms. Long queue. No movement for three minutes. No staff around to help out.  I put the goods back on the racks and left.

Onwards to the second retail brand, which just happened to be next to the first store. Within five minutes or less, I found myself exiting this story empty handed. Why?  One, they just didn’t stock trousers that fit me. Just about every trouser that caught my attention was regular length and regular is too short for me as I am tall and have long legs. Second, no staff members around to ask for help in finding longer length trousers. Third, the prices showed up as being too high; I remembered what I had paid for the Chinos I was wearing.

Why Did I Buy From The Gap Store?

Having had enough, I headed directly for the Gap store. Why? Because this is where I had purchased, some years ago, the Chinos I was wearing and happy with.  The store showed up as friendlier-easier as it was much smaller in size, I could clearly see two sales assistants, and they looked happy.  I spent over £150 pounds and walked out of the store with several Chino trousers and shorts.  Why did I end up buying from Gap?

  • They stocked the products that I was looking for – Chino trousers and a range of summer shorts;
  • I found the particular style I was looking for – Classic;
  • Each range of trousers came in a range of sizes including the size (34, 34) I was looking for;
  • I found it easy-quick to try on the trousers (and shorts) as there was no queue for the fitting rooms; and
  • The ‘checkout’ experience of paying for these items was quick-easy and delivered by a friendly sales assistant.

And there was a moment of delight. What delight? Upon checkout I found that I had been charged 30% less than I had expected to pay. Why so? Because Gap had a sales promotion that day and I had not noticed it as it had not been well signposted.

I draw your attention to this: no information technology was needed other than the POS till.  Gap ended up the winner simply because it did the basics of clothes retailing right: store design (size-layout-signposting), the right product, ability to trial the product, good customer service, and pricing that is in tune with product quality and customer expectations.

I also notice, that I have a stronger bond to Gap and Gap did not have to engage in any customer loyalty or outbound marketing programme to generate that bond. How has this strengthening of the bond come about? By stocking the kind of products that I am looking for, by asking the kind of price I am willing to pay, and by making it easy-pleasant to buy from them: not just once, but every time I have bought from them.

If Gap does want to do something other than get the basics right then here is my advice. Gap should consider storing my preferences in terms of the products that I have bought from them. And allow me to order those products from them. Why do I say that? Whilst I like their latest Chino trousers (the ones I brought from them recently) I prefer the ones that I bought several years ago.  The fact that those trousers are no longer available makes them that much more attractive to me. I wonder how many others are like me. If there are enough of us then there might be a market for listening to and catering to our needs. Back in the days when I was a consultant with Peppers & Rogers, we would put this idea into the mass customisation bucket.  This is where information technology would be useful, even essential, for improving the Customer Experience.

I wish you a great week, thanks for listening – your listening calls forth my speaking.  And if you have thoughts that which you wish to share then please engage in a conversation with me by commenting.

 

Customer Relationships: Does It Pay To Tell The Truth?

In amidst all the talk of the importance of a customer-centric culture, customer obsession, building customer relationships and improving the customer experience I find something missing. What?  The commitment to tell the truth: being straight (levelling) with the customer. What I notice is that the ubiquitous business practice is to:

1) bullshit – make things up because they support the narrative/agenda irrespective of concern for truth-falsehood of assertions;

2) deceive by actively misrepresenting and/or omitting essential information; and

3) lie – to know the truth and assert the opposite.

So I find myself delighted to read that recently Honda has recalled ‘1.8m cars around the world after a scare over an airbag in another manufacturer’s vehicle but made by its supplier Takata’. I’d like to believe that the folks in Honda are decent folks who put the lives  of their customers before profits.  And that may be wishful thinking. At the very minimum, it occurs to me that Honda has learned some lessons from Toyota and GM: when you find there is an issue, share what you know with your customers, and do the right thing.

Does it pay to do the right thing: to tell the truth?  I share with you the following story (bolding is my work):

What many hospitals don’t consider is that a positive error culture could increase the trust of patients, as the following case shows. Matthias Rothmund, a professor of surgery, once made a big error. When one of his patients was checked a few days after a successful tumour operation, the x-ray showed a surgical clamp that had been mistakenly left inside the patient’s body. Rothmund immediately informed the patient, removed the clamp, and reported the incident to his insurance, which gave the patient a settlement.

For a long time the surgeon was plagued with the thought of his error. Five years later the patient returned to his office with a hernia and said he wanted him to perform the operation. Rothmund was surprised. The patient explained that he trusted Rothmund and his clinic precisely because Rothmund had immediately admitted his error and corrected it.

- Gerd Gigerenzer, Risk Savvy

Did you notice the trap that I set for you/us?  Did you notice that the question that I asked is this one: ‘Does it pay to do the right thing: to tell the truth?’  If you formulate the question/challenge of right action in this manner then you show up and travel in the world in the manner of the Tops at GM. The folks at GM kept the knowledge of a faulty ignition switch secret for over a decade and in the process at least 13 people lost their lives. Why? Because by their calculations it didn’t pay (revenues, profits) to tell the truth, recall the cars, and fix the ignition switch.

What is my point?  If you are genuinely committed to putting in place a customer culture then you do right by the customer, always, irrespective of how the ROI calculation works out.  And whilst Mary Barra may lay the blame on the corporate culture, I say that the responsibility ALWAYS lies with the Tops.

I leave you with this final thought: Steve Jobs may have been able to bring about that which we he brought about because his actions were not dictated by ROI.  What were his actions dictated by?  Simplicity? Beauty – in its fullest, holistic, sense? The customer experience?

 

What Is The Price Of Customer Loyalty And Who Pays It?

I say that there is a ‘price’ attached to everything and it is always paid. What is open to influence is ‘who’ pays the ‘price’.  The question I wish to address in this conversation is this one: what is the price of customer loyalty and who pays it?

Let’s leave aside theory for those that specialise in it: the professors, the authors, the ‘gurus’. And look it this question in the concrete – through my lived experience.  In particular, let’s look at two recent events and experiences.

Churchill: The Price of Customer Loyalty is a 70% Mark Up

Recently, I got a renewal reminder through from Churchill regarding the car insurance policy I have with this organisation. The price was was around £320. And I was assured that I was taken care of, needed to do nothing, was in safe hands and this insurance would be renewed automatically.

In the early part of my business life I got a good look inside the insurance industry. What struck me was how the folks in the insurance industry did everything in their power to not pay customer claims including legitimate claims. Where paying out could not be stopped, the focus was on delaying payment as long as possible (money in the bank earns interest for the insurance company) and making an effort to get the customer to agree to a smaller amount than the customer was due.

With this in mind, and a niggle at the back of my mind suggesting that the previous year the premium had been less than £200, I started my due diligence on the insurance comparison websites. Guess who showed up among the most competitive insurance providers? Churchill.  Guess what the premium was? £187

Let’s take a good look at this from a loyalty perspective. The price of loyalty was to be paid by me as follows: increase in premium of £133 which amounts to a markup (on the £187) of 71%.

What did Churchill offer me in return for this extra premium? Nothing. The only difference between the £187 (on website) and the £320 (renewal) was that I got less cover! The £187 premium included free car breakdown insurance, the £320 premium did not.

What did I do? I took out a new policy for £187 and then rang to cancel the renewal. How did the call-centre agent respond? She asked me to allow her to match the best quote I had got elsewhere. I told her that Churchill had already done that. When I explained that I had taken out a new policy via the website she told me that it was normal for new customers to get a better deal especially if they sign-up online.

What else did she do? She told me off. For what? For taking out a new policy and messing up the internal system. What would she have liked me to do? Ring up Churchill, ask them to match the quote, get the renewal premium amended and continue with the existing policy.  It occurs to me that Churchill is true outside-in organisation which understand the customer and focuses on the customer experience. How else does one come up with this radical approach to doing business? Joking!  And sadly, the orientation is the default one despite all the talk.

Lesson for Customers: Never trust a commercial organisation to have your interests at heart. The standard practice is to sell you what makes most revenue-profit for the organisation this year.

Lesson for Enterprises: Given the radical transparency and ease of shopping facilitated by the internet it is necessary to pay attention to your pricing policies; not all customers are lazy, ignorant, or wealthy especially in the current economic climate.

 RAC: The Price Of Customer Loyalty Is A 12% Mark Up

We received a renewal reminder from the RAC. Like Churchill, the RAC assured me that I was in safe hands, had to do nothing, the renewal would take place automatically.  Given the comprehensive cover I have (UK, Europe, Number of People, Services) the sum of £342 did not seem too much.  As I was doing the Churchill search on the net, I did the same for car breakdown cover.

I chose only to look at two organisations: RAC and the AA.  RAC turned out to be just as competitive as the AA. Given my positive experiences with both organisations, I did not mind which ended up providing the cover.  When I plugged in my cover requirements from the renewal reminder into the RAC website, I found the same cover for £322. No big difference.

Seeing myself as a Customer Experience investigator, I chose to call the RAC. I selected the ‘going elsewhere option’ on the IVR. The agent answered the call, I told him the situation. He has helpful and investigated. What renewal premium did he offer me? Better than I was looking at on the RAC website. He offered me a renewal premium of £307. I took up the offer.

So let’s do the maths. The price of customer loyalty is still paid by the customer. It is just that in the case of the RAC the price is much lower: £35 representing a mark up (on £307) of 12%.

Lesson for Customers: Not all enterprises are out to get you to pay every penny. Some like the RAC settle for charging you modest amounts (mark up) in exchange for the convenience of doing nothing – saving you time and effort.

Lesson for Enterprises: Charging modest premiums in exchange for convenience is likely to be better received-experienced by your customers; I view RAC rather differently to Churchill – the latter shows up for me as greedy, the RAC shows up as fundamentally ok. If you do get caught like the RAC did then consider being gracious and generous like the RAC agent. Why? Because, it left me with the experience of gratitude to RAC rather than the experience of getting satisfaction at besting greedy Churchill.

Final Thoughts

It occurs to me that companies have made a mess of customer loyalty as they have viewed this in a selfish (transactional) manner. They have viewed loyalty in terms of getting more money from customers.  And by necessity the cost of customer loyalty falls on the customer: the customer pays to be loyal, stick with existing supplier.

So the opening for those who are up for a radical approach to doing business arises with grappling with this question: how can we create superior value for the customer such that s/he stays with us and is happy to pay a premium?  It occurs to me that Apple has been doing a great job of answering this question through its hardware, software, and ecosystem.  Which may explain why it’s value has rocketed over the last ten years. And why the market in used Apple hardware in eBay is more than all the other PC companies combined.

 

How To Succeed In The Game Of Experience Design? The Six Essentials Courtesy of Amanda Burden

This is a long post. You will only get value out of it if you find yourself genuinely interested in human beings and experience design.

What Comes Before Customer Experience Management?

More and more I come across the term Customer Experience Management. As I sit with this term, this thought occurs to me: “You must have something in place before you are in a position to manage it!”  Put differently, before I am in a position to manage the operation of a building, the building must exist – be in place.

I get there is a different sense of manage as in project management: where one oversees the planning and execution of a project.  Yet, I do not see Customer Experience as a project say like a marketing campaign is distinct project with a start and a finish.  Customer Experience shows up for me as a way of showing up and doing business with customers which emphasises the critical important of the customer’s holistic experience of your business.

For me the word that rightfully occurs after Customer Experience is design. It occurs to me that this is the first and foremost challenge of Customer Experience: designing customer experiences that speak to customers and leave them feeling great at being associated with your business – association includes yet is not limited to buying from your business. Let’s use the analogy of a rocket launch. It occurs to me that Customer Experience Design is the equivalent of doing that which is necessary to actually get the rocket off the ground.  If the rocket does not get off the ground all else is superfluous.

Now I ask you to ponder this, why is there so much talk of voice of the customer and Customer Experience Management and almost nobody talks about Customer Experience Design?  Really dive into this question with an open-inquisitive-questioning mind and you may just see why it is that so many have achieved so little in the domain of Customer Experience.

What Does It Take To Design Great Customer Experiences?

My short answer to this question is that all that you/i need to know is disclosed-shared by Amanda Burden in the TED talk below.  I urge you to watch it, and watch it again. Here is the talk:

I share with you aspects of the talk which resonate most deeply with me and my lived experience of business and in particular the domain of Customer including Customer Experience.

1. Seeing What Really Matters, What It Is All About?

“When people think about cities, they tend to think of certain things. They think of buildings and streets and skyscrapers, noisy cabs. But when I think about cities, I think about people. Cities are fundamentally about people, and where people go and where people meet are at the core of what makes a city work…

My take? The game of life, of business, of performance, of Customer Experience is about people!  In our obsession with strategy, with operations, with processes, with data, with technology (do we love technology!) we are oblivious to fact that these games are fundamentally about people and in particular the human (existential) dimension.

2. Direct Observation Into The details Of Human Behaviour 

” ….. enjoyable public spaces are the key to planning a great city….. But what makes a public space work? ……. One of the first spaces that I studied was this little vest pocket park called Paley Park in midtown Manhattan…. what was it about this space that made it special and drew people to it? Well, I would sit in the park and watch very carefully, and first among other things were the comfortable, movable chairs. People would come in, find their own seat, move it a bit, actually, and then stay a while, and then interestingly, people themselves attracted other people, and ironically, I felt more peaceful if there were other people around. And it was green. This little park provided what New Yorker’s crave: comfort and greenery …”

My take? Great experiences are designed. The design follows detailed observation of human behaviour. Can anyone do this work? No, it takes people like Amanda who are both trained in the field of human behaviour AND are in touch with their own humanity. Notice, Amanda noticed that she felt more peaceful in that park when there were other people around. And being in tune with her own experience (bodily state, feelings, thoughts, mood) she was able to guess that this park met the New Yorker’s craving for comfort and greenery.  Put differently, direct observation AND lived experience led to inductive thinking – the kind of thinking that does not show up when one is process mapping in the office or poring over VoC reports.

3. Designers Who Have The Requisite Grasp Of Human Beings AND Find Themselves Called To Enrich Lives

“…  one of the more wonky things about me is that I am an animal behaviorist, and I use those skills not to study animal behavior but to study how people in cities use city public spaces…  For me, becoming a city planner meant being able to truly change the city that I lived in and loved. I wanted to be able to create places that would give you the feeling that you got in Paley Park, and not allow developers to build bleak plazas like this….. I was determined to create places that would make a difference in people’s lives.

My take? When I see an organisation using the lean-six sigma-process guys to staff their Customer Experience effort, I know it is doomed.  These folks lack that which it takes to craft experiences that speak to customers. What do they lack? Humanity – they are not sufficiently in tune with their humanity so how can they be in tune with the humanity of others?  Process folks are focused on efficiency/throughput. Not comfort, not connection, not beauty… What they are not called to do nor determined to do is to create experiences (and ways of doing business) that make a difference in people’s (customers, frontline personnel) lives.

4. Great Experiences Need To Be Lived-Experienced Before They Are Implemented; Details Make The Difference

“…. just to make sure, I insisted that we build a mock-up in wood, at scale, of the railing and the sea wall. And when I sat down on that test bench with sand still swirling all around me, the railing hit exactly at eye level, blocking my view and ruining my experience at the water’s edge. 

So you see, details really do make a difference. But design is not just how something looks, it’s how your body feels on that seat in that space, and I believe that successful design always depends on that very individual experience. In this photo, everything looks very finished, but that granite edge, those lights, the back on that bench, the trees in planting, and the many different kinds of places to sit were all little battles that turned this project into a place that people wanted to be.

My take? To design customer experience one needs to be clear on what actually constitutes an experience. And in the domain of customer experience one has to experience-live the customer experience (on more than one occasion) in order to grasp the critical importance of the little details – the kind that are not on the minds of those redesigning processes and/or experiences in the comfort of the office.

 5. Cultivating Customer Trust Starts With A Deep ‘Listening’ In The Deepest Sense of Listening

“So how was I going to get this done? By listening. So I began listening, in fact, thousands of hours of listening just to establish trust. You know, communities can tell whether or not you understand their neighborhoods. It’s not something you can just fake. And so I began walking. I can’t tell you how many blocks I walked, in sweltering summers, in freezing winters, year after year, just so I could get to understand the DNA of each neighborhood and know what each street felt like. I became an incredibly geeky zoning expert, finding ways that zoning could address communities’ concerns.”

My Take?  Consider what it takes to generate customer insight (and trust). Consider what listening actually involves: listening to the voice of the customer directly (thousand of hours) and listening by experiencing that which the customer experiences by walking in his/her shoes in “sweltering summers, in freezing winters, year after year…”. Now compare that with what the big brand consultants peddle, and what VoC offers.  As I have stated in a previous post: “There is ALWAYS a price. It is ALWAYS paid. We only get to choose whether we pay the price right up front, during the middle, or at the end.” Notice, Amanda paid the price right up front. Which is why her work turned out to be a success when implemented.

6. To Design Great Customer Experiences Tap Into Your Humanity, Not Your Design Expertise

“So what’s the trick? How do you turn a park into a place that people want to be? Well, it’s up to you, not as a city planner but as a human being. You don’t tap into your design expertise. You tap into your humanity. I mean, would you want to go there? Would you want to stay there? Can you see into it and out of it? Are there other people there? Does it seem green and friendly? Can you find your very own seat?

My take? I do not have any design expertise. Yet, I find myself well fitted to the challenge of experience design. Why? Because I find that all it has taken for me to design customer experiences (and the associated changes in the frontline experience) is the capacity and willingness to tap into my humanity: to put myself in the place of the customer (and the frontline) person – to experience that which they experience and a burning desire-commitment to making a difference in their humanity as lived-experienced.  Which is to say, I find myself in total agreement with Amanda. And, design expertise-tools have their place, can come handy – just as a saw has its place can come handy in the hands of a carpenter who loves working wood to create beauty.

Follow

Get every new post delivered to your Inbox.

Join 4,320 other followers

%d bloggers like this: