Category Archives: Service Design
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?
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.
Are Service Design and Customer Experience in the same boat?
This week I was talking to a fellow professional who is passionate about service design. What showed up in our conversation was his recognition and disappointment between the talk and the reality of service design. Yes, there is a small community of theorists, ‘gurus’, and practitioners in service design. And in the bigger world of business the landscape is not friendly to service design. First, most business folks do not understand what service design is. Actually, it is worse than this. Most business folks do not accurately what makes up a ‘service’. As such, the world of business is mostly a barren place when it comes to opportunities for service design. And yes, there are a small number of small organisations doing great work on service design. Why are these organisations small? Could it be due to the lack of listening for, receptivity towards, service design?
In the course of our conversation I shared my experience. And it occurred to me that the same applies to the field of Customer Experience. First, it is not well understood. Second, where business folks do talk about customer experience they are pointing at that which occurs in the Customer Services function. Third, the majority of talk on customer experience takes place via a relatively small community of people who are passionate about customer-centric business and the critical role of customer experience. Where, perhaps, there is a difference it is that the IT vendors are looking to make hay in the customer experience space. They are not doing the same in the service design space.
What does the Michael Lowenstein say?
Sitting in this place I came across this recent post by Michael Lowenstein. In this piece Michael is reflecting upon the findings of the recent Oracle study. I want to draw your attention to the following paragraphs:
… over 90% of executives said that improving customer experience is a top priority over the next two years …. and a similar percent said that their companies want to be customer experience leaders. However, just over one third were only now beginning with formal customer experience initiatives, and only one-fifth considered their customer experience program advanced.
In the Oracle study, fewer than half of all executives surveyed thought that customers would defect due to negative experiences, nor did they think that customers would pay for great experiences. That finding is yet another huge divide between ‘conventional wisdom’ of executives and the realities of customer behavior.
Reasons identified for not moving forward on these initiatives include inflexible technology, siloed organizational structures and systems, low investment, and inability to measure initiative results. This slow adoption, or non-adoption, seems to be not so much a reflection of stagnant international economy as it is of significant, historic corporate conservatism and risk aversion.
Is there hope for Service Design and Customer Experience?
It occurs to me that Service Design fits under the umbrella of Customer Experience. And as such it is not a surprise that they are facing similar issues. By now you should also know that I am passionate about the need for and value of taking a customer-centric orientation in doing business. And customer experience has a huge role to play in a customer-centric orientation. So how am I left being? Yes, a part of me does from time to time become downhearted with what is so in the business world. And there is another part of me that gets me present to the wise words of Werner Erhard:
Life never needs to turn out predictably. Human beings have the capacity to intervene in the orderly unfolding of circumstances, to produce an outcome which is basically unpredictable given those circumstances. Most of us don’t know that…..
Clearly, Vernon Hill, the Chairman of Metro Bank in London, and the retail-oriented entrepreneurial executive who made Commerce Bank a regional marketing force in U.S. banking for several decades get this. Why do I say that? This is what Michael Lowenstein writes in his post:
In his recent book, “Fans! Not Customers” (Profile Books, London, 2012), Hill stated: “We want our customers to be passionate about doing business with Metro Bank, to become Metro fans. Our philosophy is more than just a corporate mission statement: it’s a way of life. Our corporate spirit – something we’ve made a unique part of our social fabric – enables us to succeed. We are fanatically focused on delivering a unique customer experience. Over-investment in facilities, training and people, a focused geographic management, and countless mystery shops a year ensure that we always exceed our customer’s expectations”.
As Hill observed, “You don’t have to be 100 percent better than the competition in order to beat them. You have to be 15 percent better, and you have to get better all the time. It’s all about standing out from the competition…..”