Blog Archives

What I Took Away From CXDay In London, UK

CXDay organised by the CXPA took place yesterday. At the invitation of Marco Rodrigues, I found myself at the CXDay event taking place in London. Here is what I took away from that event:

The terms customer-centric, Customer Experience, and innovation are empty. They are so empty that each person can fill them up whatever meaning they wish. And they do. Then the debates occur as to what customer-centric means, what customer experience is and is not, what counts as innovation or not. Some academics see an opportunity here: to define Customer Experience as a set of capabilities backed by empirical data and thus put in a place an established framework for assessing Customer Experience maturity and benchmarking.

Life is difficult/frustrating on those who find themselves either preaching and making a living from Customer Experience. And it is perhaps even more difficult for those who find themselves part of the Customer Experience team within a large corporate. One such person told me that she found it frustrating to make sense of what Customer Experience involves. Dive into it and you realise it is a many headed monster. There are many questions and no ready made silver bullets. To deal with the Customer Experience challenge you have to get pretty much everyone else in the organisation to work with you to tame the monster. And these folks are not interested. To them Customer Experience is irrelevant to what they have to do on a day to day basis. And for them the folks in the Customer Experience show up as an irrelevant annoyance.

Customer Experience has been and continues to be a blessing for one set of folks: the VoC vendors.  These folks cannot believe their luck: listening to the voice of the customer has become a mandatory exercise for just about every organisation and their is an endless appetite for what the VoC vendors are selling. Yet all is not as great as it sounds. The more intelligent VoC folks (at VoC vendors) are concerned. Why? Because they are wondering when someone is going to wake up, notice and call it as it is. How is it? Corporations may be listening to VoC, they certainly aren’t doing much about it. And so from a practical perspective they are not listening to their customers. So the most rational course of action is to put a stop to their relationship with VoC vendor and scrap their Customer Experience team.

A handful of people get it and are living it. What do they get? They get what the whole Customer Experience thing is all about. Renata Wallace, the owner and managing director of Wallacespace gets it. As soon as I walked into Wallacespace (the venue for the CXDay event) I found myself saying “This is a meeting space with soul!”. Then I listened to Renata share her story and I got that Renata embodies the soul that is so manifest in the look+feel of Wallacespace. What struck me most forcefully about Renata is how she is so different to just about every senior person in meet in big corporate land. What makes her distinct for me? She oozes the kind of humanity that is rare in corporate environments.

It’s great to meet up with people in person. I enjoyed meeting up with Marcio Rodrigues – who reminded me of the event and encouraged me to attend. I enjoyed meeting up with Ian J. Golding  a customer experience evangelist and consultant. I enjoyed meeting Nadine Dyer, a Customer Experience Manager, who shared with me how that which I speak her lands for her. I enjoyed meeting Renata Wallace……. For me nothing takes the place of face to face encounters with human beings. And in that respect I thank the folks from Wallacespace who supplied us with drinks, canopies, and friendly service.

I wish you a great day and thank you for making the time to listen and in some cases share that which I speak here.  Live well, be a source of positive difference in the world. Be a Renata Wallace! A human being in touch with his/her humanity and revelling in it. This is an invitation you can accept or reject – as human beings you and I are ‘condemned to be free’ to always be the chooser who chooses, even choosing not to choose and just going with the way that it has been set up for us.

 

 

 

Why I Prefer Not To Do Business With Customer-Centric Businesses

Why is it that I prefer not to business with a customer-centric business? Allow me to share my answer by referring to the UK grocery market.  Which supermarket chain was applauded, by many, for its customer-centred way of doing business? Tesco.  What was held responsible for fuelling this customer-centred way of doing business? The Tesco Club Card. Through this loyalty card, Tesco captured and made effective use of customer shopping data to grow revenues and optimise profits.  In the process Tesco came from nowhere to became the world’s second largest retailer.

Where is Tesco today? Here is what The Economist said back in July 2014:

… on July 21st Tesco abruptly announced that Mr Clarke would be leaving his job, apparently prompted by a warning that profits in the first half of 2014 would come in “below expectations”. In June Tesco revealed a drop in same-store sales that Mr Clarke admitted was the retailer’s worst performance in 40 years….

Recession taught middle-class shoppers that discounters like Aldi and Lidl were cheap but not nasty; they spent some of the money they saved at higher-end grocers, such as Waitrose and Marks & Spencer……

Tesco is faring badly. Its sales dropped by nearly 2% in the year to June while those of its closest rivals, Asda (which is owned by Walmart) and Sainsbury’s, rose by 3% or better. Despite his exertions, Mr Clarke failed to persuade consumers that Tesco offers better value than the discounters or quality to match the upmarket merchants.

Is this as bad as it gets? No. Here is what the Guardian newspaper stated in on the 22nd of September this year:

Tesco has suspended the head of its UK business and called in independent accountants and lawyers to investigate after discovering that its guidance to the City overstated expected first-half profits by about £250m….

Tesco shares fell almost 8% on Monday morning to an 11-year low of 212p, making them the biggest faller in the FTSE 100 index and wiping £1.5bn off the retailer’s market value. More than £6bn has been wiped off share value since 21 July, when the previous chief executive, Phil Clark, was ousted.

Why is it that Tesco is in such deep trouble? I say that Tesco has arrived at where it is at due to its customer-centric way of doing business.  What do I mean by this?  I mean that the Tops got fixated into harnessing the data yielded by the Club Card to get customers to part with more of their money in Tesco stores.

Was this done by offering customers superior products as in higher quality products? No.  The products were middle of the road yet ways were found of selling these at higher prices through clever marketing and merchandising.

Was this done by providing superior customer service in the stores? No. Tesco cut back on the number of people working in the stores so it was not unusual for the customer to find that there was nobody around to help when help was needed or find long queues at the checkout tills.

Was this done through a superior shopping experience? No. Management chose not to invest in the stores or the shopping experience in the stores. As a result the stores become less and less attractive over time.

I prefer not to do business with a customer-centric business because the management of such a business is more likely to be focussed on extracting value from their customer base through a variety of clever manoeuvres than earning its keep through superior products (Apple, Waitrose), superior service (John Lewis, Zappos), low prices (Lidl, Aldi), or a combination of service and low price (Amazon).

If you are a customer and your supplier is touting customer-obsession then  you might want to think about whether that is a good thing. Is the obsession with providing you with a superior product, superior value,  and/or experience? Or is it an obsession with with finding clever ways of getting you to buy more, pay more for what you buy, and get less in return? You might want to keep in mind that which many remind me of: business is not altruistic.

How Not To Go About Effecting Behavioural Change And Moving Towards Customer-Centricity

Let’s assume that for the purposes of this conversation that when I use the term customer-centricity I am pointing towards a specific behaviours which show an organisation as being attuned and responsive to the needs of their customers – their core customer base.

How should you go about effecting change in the behaviour of your people, your teams, your functions, your business units, your entire organisation so that your organisation shows up as customer-centric?  The authors of Six Simple Rules point out that managers go about effecting change by typically taking a hard approach (strategy, structure, process). And when this fails or to make it more appealing they introduce elements of the soft approach (training, team building, affiliation events). How well do these approaches – hard, soft, hard+soft – work?

In the last post I illustrated what tends to happen when managers take the hard approach: set direction, communicate direction, set metrics to hit, change the bonus system.  What about taking the soft approach? How does that tend to work out?  Lets return to David K. Hurst’s experience at Hugh Russel:

The top management team emerged from Hugh Russel as a “band of brothers” ….. we found we could “read ” situations better … “contextual intelligence” seemed to be an important feature of our newfound skills.  So, after our near death experience, we set out to create an educational experience that would nurture the spirit of commitment, excitement, and engagement we had seen at the senior level of the organisation….

What did this senior leadership do?  They organised a series of 3 day retreats ["core samples"] where 50 people drawn from all levels of the company (truck drivers, salespeople, branch managers, vice presidents) were invited to a “lovely old cottage”.  What happened on the retreat?  The participants hung out together doing team exercises, case studies, got feedback on their behavioural styles, and discussed the issues that the Hugh Russel was facing.  How did it go? The senior leadership were delighted with the results:

Discussion at the meetings was open and honest, the behaviours observed were cooperative, and the feedback from the participants was excellent..…… our local branch managers, who nominated most of the attendees, told us that they saw changes in the behaviour of those who had come to the session, even staunch union members. We were very pleased.

The soft approach works!  If you take folks from all levels of your organisation to a three day retreat, at a nice place, educate them, teach them, develop them, give them feedback, and allow them to hang out with another then you are well on your way to being customer-centric. Or are you?

Then, over time, the feedback from the managers became less positive…..  after awhile back at work, the participants began to revert to their old dysfunctional habits. Many of them who had been cooperative and open during the core samples became surly and aggressive again after a few weeks back at work.

Slowly it dawned on us that we had completely misunderstood cause and effect….. We thought we were teaching them new behaviours, which they could practice back in the workplace. But they knew these behaviours already since they were the ones the workers used in friendly environments, like their homes or bowling alleys or golf clubs. The open environment of the development sessions evoked those social behaviours.

Please make note of the line that I have put in bold. The behaviour that was being taught was behaviour that the folks already had in their very being: cooperation is intrinsic to us. In infant never makes it past infanthood unless it arrives and is nurtured in a cooperative context.  So if cooperation is not showing up in the work context then it is because non-cooperation is the functional behaviour in the work context. And cooperative behaviour is dysfunctional in that work context.  What can we learn from David K. Hurst?

We had misunderstood the power of context over our people’s desire and even their ability to practice these behaviours back at work. The closed work setting was completely different from that of the country estate …..

Martin Heidegger was on to this phenomenon back in the 1920’s almost a hundred years ago. Most managers are yet to get it: when you ‘deworld the world of its worldhood’ you are in the land of theory. And what is theory? Theory is derived from the Greek word: theoros. What does theoros signify? Spectator.  And if you follow that which I speak here on this Blog, you may have gotten the profound difference between “being in the stands and being in the arena”.

Let’s continue listening to David K. Hurst:

…. we weren’t teaching them soft skills that they didn’t already know; we weren’t conveying any hard skills that might have been helpful to them; we weren’t using live company cases or confronting real issues…… our management development program had some of the ingredients of a behavioural trap – short term rewards and a long terms waste of resources.

How does David K. Hurst conclude this story? With a profound lesson for anyone seeking to effect behavioural change that lasts:

This is a perennial problem with development programs, especially those that depend upon a radical change in context to produce their effects. Climbing a challenging mountain peak or whitewater rafting can certainly build temporary espirit de corps in a team. However, the challenge is not to take the skills learned in those challenging contexts back to the workplace but to create challenging workplace contexts that evoke those desirable behaviours. The development sessions should deal with the constraints that prevent an organisation from creating challenging work environments where learning and teamwork are a natural response….

– David K. Hurst, The New Ecology of Leadership

I say:

1 – That the challenge of showing up as a customer-centric organisation is one that involves a radical change in context to produce the kind of behavioural change that is needed from just about every person in your organisation;

2 – The central task of any leadership team is to get to grip with the existing work context – to understand what it is about the context that generates the behaviour that is generated today; and

3 – Using this insight to nudge-influence-shape the work context (made of up many micro work contexts) such that the only functional way for your people to show up is as being attuned to and responsive to customers.

Is The Way We Are Going About Customer Acquisition and Retention Dead Wrong?

In light of the Comcast call that went viral I invite you to listen to these wise words (bolding is my work).

There is no question that acquiring and retaining customers is vital to every company, but it’s the way companies are going about it that’s dead wrong…..

Charles Green, coauthor of the Trusted Advisor, points out that many companies have the client focus of a vulture – the pay close attention to what clients are up to, but only in order to figure out the right time to pounce and tear at their flesh….

Sales plans, computerised data sharing, and advertising strategies are not relationship-building vehicles. While an automated phone system may improve an organisation’s operational efficiencies, it rarely improves the customer experience. In fact, most have the opposite effect…..

The point is, though we can learn the language of our industry, sit up straight, dress appropriately, and speak knowledgeably about product, when the conversation doesn’t feel natural, doesn’t respond precisely to the customer’s questions, doesn’t engage the customer in an authentic way, there will ultimately be no sale. And no matter how many time we hear the same feedback ……., we struggle to behave differently because we don’t know how to get beyond our customer facing “script”. Besides, we aren’t particularly interested in, much less skilled at “seeing” and responding to, each customer as a one-of-a-kind human being….

Today, more than ever, consumers are seeking to be acknowledged as unique individuals with lives, needs, tastes, and desires that differ widely from those around them….

So, assuming your products or services are of good quality and competitively priced, one of the most powerful differentiators has to do with conversations you have with customers. The conversation is the relationship ….

No matter what your job is …… the key is your context, your beliefs about your responsibility to customers and the relationships you intend to enjoy or endure with them … if I’m in the checkout line at my grocery store (or any checkout counter anywhere in the world) it would be easy for you to think that you are doing your job if you ring up the sale and hand me my purchases, the correct change, and a receipt. That you get points for using my name …. That if you have a customer loyalty program, you get more points for asking me for my membership card so you can check to see if I can get a discount….

But, I’ll tell you what makes the real difference. That you look into my eyes and connect with me, even if only for a seconds. Human to human. A real smile suggests, “I see you”. This seems like such a small thing, perhaps foolish to some, yet it’s what we all want, deep down where it counts. To be seen.

I’m reminded of the African greeting sawu bona, which means “I see you.” The response is sikhona, which means “I am here.” The order is important. It’s as if until you see me, I don’t exist. Raking your eyes quickly over someone’s face is not seeing them. So if you want to see your customers, really look at them. What takes mere seconds can make people return again and again.

- Susan Scott, Fierce Leadership

If insanity is doing the same stuff over and over and expecting a different result then it occurs to me that many of us who are working on the Customer stuff can be labelled insane. Relationship is not merely the sum of a series of interactions. Relationships do not reside in CRM databases.  Communication is more than bombarding customers with sales messages across any number of channels. Personal is more than sending the customer emails and addressing her by using her name. Engagement is more than a customer opening up your email and clicking your offer.  Customer Experience is more than a new name for the Customer Services function.

I dedicate this to conversation to a fellow human being (and friend) who gets and lives that which Susan Scott is communicating:  Lonnie Mayne, President of InMoment.

Does Love Lie At The Heart of Service & Loyalty?

I was introduced into the ethos of service around the age of 6.  I would arrive back from school in the afternoon and be welcomed back by my mother.  She would ask me about my day whilst offering me tea and sandwiches. Once fed, she would hand me a box of sandwiches. She would tell me to go and feed our elderly neighbours and help them with their chores.  And this is what I did every day. I visited my neighbours, I talked with them, I moved things around for them, I cleaned up a little, I went shopping for them.  My initial reluctance and shyness gave way to relationship – I looked forward to visiting my neighbours and helping them out.

Why did my mother make sandwiches every day for our neighbours?  Why did my mother insist that I take the sandwiches to our neighbours and help them with their chores?  Whenever, I asked these questions my mother simply said something along these lines: they are our neighbours, they are old, they need our help, it is our duty to help our neighbours, that is what human beings do for one another, we care for one another, we help each other out.

It occurs to me that my mother would find most of the talk on customer service, customer engagement, customer loyalty, and customer-centricity empty.  Empty of what? Empty of a genuine empathy. Empty of genuine of compassion. Empty of wholehearted care for our customers and our fellow human beings.  Empty of love.

It occurs to me that love lies at the heart of great service – the kind of service that generates empathic connections, heartfelt gratitude, and loyalty on both sides. Love of working for an organisation that pursues a life affirming purpose. Love of one’s role in that organisational purpose. Love of one’s colleagues. Love of the customer as a fellow human being.  It occurs to me that love is the difference that makes a difference.

I leave you with the following passage from Miguel De Unamuno, it is my gift of love to you on this beautiful day:

Here you have a shoemaker who lives by making shoes, and makes them with just enough care and attention to keep his clientele together without losing custom.

Another shoemaker lives on a somewhat higher spiritual plane, for he has a proper love for his work, and out of pride or a sense of honor strives for the reputation of being the best shoemaker in the town or in the kingdom, even though this reputation brings him no increase of custom or profit, but only renown and prestige.

But there is a still higher degree of moral perfection in this business of shoemaking, and that is for the shoemaker to aspire to become for his fellow-townsmen the one and only shoemaker, indispensable and irreplaceable, the shoemaker who looks after their footgear so well that they will feel a definite loss when he dies—when he is “dead to them” not merely “dead”—and they will feel that he ought not to have died. And this will result from the fact that in working for them he was anxious to spare them any discomfort and to make sure that it should not be any preoccupation with their feet that should prevent them from being at leisure to contemplate the higher truths; he shod them for the love of them and for the love of God in them—he shod them religiously.

 

Follow

Get every new post delivered to your Inbox.

Join 4,380 other followers

%d bloggers like this: