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What Is The Access To Cultivating Customer Engagement and Customer Relationships?

My eldest son is in the process of buying a car, his first car.  He knows his budget (£6,0000. He knows the make and model of the car (Ford Fiesta).  Given this he knows that he will buy a used car – couple of years old.  His goal is to have this car in place by the end of this month.  His challenge is that he has never bought a car before.

What comes with this goal and challenge?  Concern. What is he concerned about?  He is concerned that he will get it wrong: that he will buy the wrong car – it is not sound; and or that he will pay too much for the car.  What does he want?  He wants help: he wants someone he can count on, who has his best interests at heart, to take the problem off his hands.  So he turned to me.

I have no experience in buying cars. My youngest brother is into cars, has bought-sold many cars, and so I have used his services.  So when my son asked me for help, I found myself telling him that I was not in a position to help him.  This was his reply:

“You’re not any help, are you!” 

It is the way that he said this that got my attention.  It was a voice of mild anger and strong disappointment.  Why?  Is relationship missing?  No, we have a strong relationship and this has been the case since his birth. Is engagement missing? No, we are engaged in each others lives – sometimes more than I’d like it to be and other times less than I’d like it to be.

Reflecting on that which occurred it hit me that we value those who show up as useful to us given our circumstances and the ‘projects’ we are grappling with.  Put differently, if you show up as useful to me then I am open to entering into a conversation with you. And through a series of conversations-interactions a relationship emerges.

Looked at this way, it hits me that all the talk of, and focus, on generating customer engagement and building customer relationships through a variety of tips, tricks and technology is misplaced.  It is misplaced. It is foolish. It is a red herring – distracting from that which matters.

So where should our focus be? On usefulness! It is when we show up as useful that the gate towards conversation and thus engagement opens.  It is only when mutual usefulness is present, does trading occur.  And it is on the basis of the repeated conversations-interactions-trading that a relationship emerges. Consider that when someone no longer ‘shows up as useful’ and they want to engage with you, have a relationship with you, they show up as clingy-needy. What is it that almost all of us do when this occurs?  We distance ourselves from these people. Why?  The simply do not show up as useful to us given our circumstances and our ‘projects’.

Please note that it is not enough to be useful as in have a useful product, service or solution.  It is necessary that one ‘shows up as useful’ to those whom we wish to trade with.  That means that an essential task is to cultivate awareness of our usefulness – to all who matter.  This was brought home to me in a recent conversation when the lady at the table said something to the effect “Where were you three months ago?  Why haven’t I heard of you? You should make sure you are on the Gartner report.”

In 25+ years of business life, I can only remember a handful of conversations where the people who matter in organisational life (Tops, Middles) grappled seriously with the question of usefulness: how can we be useful and show up as useful in the lives of our customers?

 

Is customer experience and the voice of the customer the CMO’s salvation?

The Economist Intelligence Unit has recently published a report titled ‘Outside looking in: The CMO struggles to get in sync with the C-suite’, sponsored by SAS.  This report has showed up as rather interesting for me and I want to share with you that which has caught my interest.

CMO’s face a number of big problems

The fundamental problem is that CMOs don’t get much respect from the rest of the C-suite.  CMOs say that they are doing a difficult job well: making a contribution/delivering significant value to product development, sales and customer service.  The problem is that the rest of the C-suite don’t agree – they question the value/contribution that CMOs are making.  And it doesn’t look like they listen to CMOs with much respect.  Here is how the EIU report puts it:

“CMOs believe they are constrained because the rest of the organisation does not consider marketing to be strategic; the C-suite believes marketing has not earned the right to be more strategic because it is ineffective at demonstrating value of its investments.”

Here are the other big problems that CMOs face:

1. Many organisations have trouble defining, clearly/exactly, the CMO’s role and responsibilities. Which could explain why it is that there is no agreement on what business objective the CMO (and the marketing function) should focus upon and be held accountable for.  Worse still there is a fundamental disagreement between what CMOs see as marketing’s priorities and the priorities that the other members of the C-suite assign to the marketing function.  Which makes me wonder if members of the C-suite actually talk with each other, share and agree what they expect of one another.  Doesn’t look like it. The EIU report says “..their greatest challenge: getting everyone to agree on marketing’s priorities.”

2. The  marketing function is not coping with the challenge that comes with the territory that falls under the market umbrella: advertising, brand, market research, communications, customer analytics, social media, mobile and so forth.  Why?  First, the marketing function lacks people with the necessary skills and expertise to cope/deal with this broad/dynamic challenge.  Second, members of the C-suite do not feel the CMO’s pain – they are not approving the necessary marketing investments.

So whilst it looks like CMOs are in a difficult position, there is no need to despair.  The EIU reports offers a route to influence, credibility, impact and respect from the C-suite.

What can CMOs do to make an impact and amass influence/respect in the C-suite?

The EIU report advises CMOs to focus on the customer experience and the voice of the customer. The authors pin their hopes on the following quote from Steve Cannon, CEO, Mercedes Benz USA:

“Every single customer experience is a brand moment of truth. If we create an aspiration through our advertising, and a customer walks into a store and does not deliver on that promise that reflects on marketing.” 

Any intelligent person could drive a coach and horses through this assertion.  And for the the time being lets just accept and go with this assertion.

OK, if Customer Experience is the unifying theme and the rallying call for the organisation then how exactly can the CMO contribute to this play given that the CMO is not the CEO and does not control all the touchpoints, which as a whole, generate the Customer Experience?

Focus on the voice of the customer:

Chief marketing officers (CMOs) stand a better chance of increasing their internal influence – and changing lingering doubts about marketing’s strategic contribution to the business – if marketing can consistently deliver insights and tools that benefit others across the organisation, from salespeople to call centre agents to merchandising teams.”

How feasible is this ‘success route’ being put forward by the EIU?

I say that there is a big difference between a poor strategist and a good strategist.  A good strategist takes into account feasibility.  Specifically, he asks this question: what is the likelihood that my client can execute this strategy?  And the good strategist keeps on going until he comes up with a strategy that the client has a good chance of being able to execute successfully.

So let’s ask this question, how likely is it that marketing can:

a) marshal the voice of the customer from all the disparate sources and turn this into a comprehensive view – single view of the customer;

b) generate actionable insight into customers, how they interact with the business as a whole, the jobs that they hire the business to do for them, and their experience of using the product and dealing with the company?”; and

c) inspire the various members of the C-suite to act – to make changes in their priorities, policies and practices – so as to improve the customer experience?

I’ll let you decide for yourself.  For my part I could not help noticing the following hurdles identified in the same EIU report:

1. Single customer view.  “The airline [BA] has spent the better part of the last decade integrating its systems to support the effort; data warehouse not stores 200 separate data sources from different parts of the business to provide a more granular view of the customer, based on information they have volunteered.”

2. Converting data into actionable insight. “For all the talk about data-driven customer insight, marketers are just starting to understand how they should be using the growing repository of information they are collecting through digital media and other channels.”

What do I say?

I say that if you and your organisation are serious about building your competitive position and commercial success on the Customer Experience then follow the example of Steve Cannon the CEO of Mercedes Benz USA.  Why?

Because, the role and this responsibility or organising the business around the Customer Experience is a huge change full of organisational politics. And as such it is beyond the remit and the capacity of the CMO and the marketing function.  This role/challenge – that of aligning the organisation around the customer experience requires marshalling resources, reassigning resources, engendering and dealing with organisational conflict - belongs to the CEO.

Here is what Steve Cannon did in the words of the EIU report:

“..aligning the organisation around a superior customer experience has been the focus of Steve Cannon since he took over as CEO in January 2012…. Investments in customer experience programmes have been large – such as the formation of a dedicated customer experience team – and small – like providing Mercedes Benz dealers with iPads equipped with custom apps and videos.” 

As regards what Steve Cannon is doing at Mercedes Benz USA I draw your attention to the following:

1. Steven Cannon was the CMO before he came the CEO.  When he was the CMO he did not take charge of “aligning the organisation around a superior customer experience” No, he did it when he became the CEO.  I say he is a smart man who has a sound grasp of reality.

2. If the CMO had come up with the clever idea of buying hundreds of iPads for dealers it is highly likely that he would have reinforced the C-suite’s already always listening of the marketing function as the “department of coloured pencils” (how one CEO described the marketing function) and s/he would not have got the budget approved by the CEO/CFO.

What do you say?

What does it take to generate ‘employee engagement’? (Part V – the ‘dark side’ of the being of human beings)

We are only falsehood, duplicity, contradiction; we both conceal and disguise ourselves from ourselves.”  Pascal

Truly it is an evil to be full of faults; but it is still greater evil to be full of them and be unwilling to recognise them, since that is to add the further fault of voluntary illusions”  Pascal

I have a confession to make.  So far (part Ipart IIpart IIIpart IV) I have deliberately given you a one sided – positive – picture of the being of human beings and thus your employees.  If you have read Fyodor Dostoyevsky’s novels (especially The Brothers Karamazov) you will get the true richness of the being of human beings.  And that includes the dark side – a side that the enlightenment and the humanistic philosophers and psychologists do not address adequately if at all.   In this post I want to address this darker side of being human in our age, in our organisations.

Why is it so hard to call forth ‘employee engagement’?

To create a contexts which calls forth ‘employee engagement’ is one of the hardest feats in traditional organisations.  Why?  There are two key reasons.

First, people – leaders, managers, employees – who have worked for more than a couple of years in command & control organisation have accepted and habituated in a particular mode of being and behaviour.  And it is difficult for them to change.  Why?  Because, contrary to accepted wisdom, human beings don’t have behaviours; behaviours have them!  When I write this I am thinking of both categories of people in organisations:  the managers and those who are managed and have come to expect to be managed – one category cannot exist without the other as they co-create one another.

The headmistress of the local Montessori children never takes on teachers that have gone through the traditional system and taught in traditional schools. Why?  Because she has found from experience that it is too hard to arrive at a place where these teachers embody the Montessori philosophy in their way of being in the classroom and the world.  After teachers have been teaching for some time in the traditional system it is practically impossible to get them to leave behind their way of being and making the shift to the Montessori way of being.  In a lots of ways these long timers experience the same kind of experience and success rates of feral children.

The second reason that it is so hard to get ‘employee engagement’ to show up is to do with the ‘dark side’ of being human that is always present and which we, with our obsession with the rational image of man, fail to acknowledge, accept and work with.  Let’s take a look at this ‘dark side’  - the shadow that is always with each of us.

The dark side: is this what really drives how human beings show up in the workplace, in the world? 

Peel back the onion to examine human behaviour and you might just find that the ‘machinery of being human’ seems to work to the following ‘four prime directives’ when it comes to dwelling with fellow human beings:

  1. Look good, avoid looking bad;
  2. Be right, avoid being wrong;
  3. Strive for control and dominate, avoid losing control and being dominated;
  4. Justify self, invalidate others.

It is worth pointing out that these four prime directives work at the level of the individual and the level of the tribe.   It is also worth pointing out that the root driver of these prime directives is most likely to be fear.  Fear of being excluded/ostracised like the lepers were.  Fear of being ridiculed.  Fear of being victimized/oppressed…..

How the drive for ‘employee engagement’ tends to play out

If these ‘four prime directives’ are not acknowledged and dealt with then the drive for ‘employee engagement’ tends to be a wasted effort at best and most often just a sham.  Why?  Because just about everyone in the organisation is first and foremost protecting himself.  That means those in manager roles don’t really let go of control – if they do then things might not work out and this will reflect badly on the manager and put his reputation/future at stake.  On the other hand those in the role of taking orders (including managers – junior managers take order from middle managers…) do not rise up and take responsibility for the fear of being setup to fail, being ridiculed…..  Now this dynamic does not just work at the individual level it also applies at the team level: marketing, sales, customer service, logistics…..  And it applies at the business unit level.  If you want a detailed understanding of the mechanics of this mutually reinforcing behaviour works then I recommend reading Power Up by Bradford & Cohen or The Responsibility Virus by Roger Martin.

In the next post I will share with you an effective process for generating employee engagement that has been used successfully by the corporate arm of Landmark Education.  It has a lot to do with ‘truth telling’ in the context of ‘creating a future that works for all parties at the table, none excluded’.

And finally

It is worth remembering that customers are human beings.  And as such they are also subject to these ‘four prime directives’.  Once you get this, really get it, then you have an access to all the stuff that you are doing as a corporation that is driving your customers nuts.  And how/why they are responding as they are responding.

Corephone: a great example of the service ethos, customer experience and customer centricity! (Part I)

If your smartphone or iPad needs fixing then contact Spencer at corePhone

It is rare that I come across a person, a company, a business that has cracked the customer-centricity code.  It looks like Spencer and corePhone have done just that.  All you have to do is to take a look at the website (the entire design of it) and read the testimonials to get that Spencer / corePhone is a world apart when it comes to the customer experience they generate and the delight they engender in customers.  So if you have a broken smartphone or iPad then you should contact Spencer at corePhone (www.corephone.co.uk).

Have you noticed that smartphones have a design flaw?

Smartphones are easy to use & useful so they are heavily used.  In the process of using them we drop them and that is when we find out that smartphones have a serious design flaw: they are fragile, they don’t bounce.   Have you dropped your smartphone?  What thoughts/feelings did you experience?   I dropped my iPhone 4 and was shocked to find that the expensive case ‘fell apart’.  Yet, thankfully, it did that when it hit the ground and so my iPhone was ok.  I let out a sigh of relief as I was not looking forward to paying £400+ to get a new one.  Some of us are not that lucky.   Recently one of my colleagues dropped his iPhone, allow me to tell you his story using his words:

“We’ve all either seen it happen or had it happen to us…shiny iPhone one minute, a moment of clumsiness / butter fingers and the next minute it looks like this…

This is what happened to me today. I have no idea how it happened but I saw it all take place in slow motion and I was left cursing …. To make matters worse, my iPhone did have a bumper on it but as happens when you drop a piece of buttered toast on the floor, my iPhone landed face down……. I couldn’t even answer the phone when it rang as the cracked screen had affected it ‘touch screen ability’!….

Luckily sense prevailed and I left the screw drivers and claw hammer in the draw and Googled ‘iphone 4 cracked screen and Portsmouth’…..and bingo!! I came across a helpful chap called Spencer.

A quick phone call later he gave me his address and instructions to be there at 6:30pm (no earlier please as he has his tea at 6pm !). By 6:45pm I skipped out his front door £60 lighter but with what was effectively a new looking iPhone. All fixed, cleaned and shiny !

…… If you find yourself in a similar situation I cannot recommend Spencer enough. Whilst he’s an air traffic controller by day, he’s running a handy side line fixing iPads, Blackberrys, Nintendo’s, Camera’s, laptop screens etc.. by night.   A link to his site is below…probably worth book marking!  As I live local to him I’d be happy to hand deliver your broken item to him should you want me too!     Core Phone

Let’s take a closer look at Spencer / Corephone: testimonials to die for!

It is not often that I read that kind of review, that kind of delight, that kind of enthusiasm, that kind of advocacy.  So I took a look at the CorePhone website to see if my colleague’s experience was exceptional.  It is not.  I was totally blown away by the testimonials - specifically the way that Spencer  is treating his customers, how he is making them feel and the impact he is having on their lives.  Here are a selection of testimonials (I have highlighted what speaks to me by ‘bolding’):

I cannot start without saying how amazing this company is! My iPhone was smashed front and back and my home button was faulty after dropping the phone. Spencer replied quickly to my request of a repair and he offered me a next day service. In addition, he offered an amazing price for all jobs. When the repair was conducted, it was an amazing job, the phone looked brand new and Spencer even cleaned my earpiece and other ports out of courtesy. And even more amazing, it was fixed in 20 minutes! I would definitely use this service again and would recommend all to use corePhone for any iPhone repairs as the service you will receive is first class.     Gary Coldwell, Hampshire, March 2012

“Many thanks Spencer. It is nice to find such a genuine guy who could repair my iPhone. I texted Spencer to see if he could repair my iPhone. He texted me back and booked for the repair to be done Monday night. I waited for the repair to be done and could not believe how fiddly it was, but it was soon all put back together and looks like a new phone. Phone this guy; you cannot go wrong.    John Tucker, Titchfield, September 2011

“I would like everyone to know what a fantastic service spencer(corePhone) extended to me. I texted spencer at 7:40 am on Saturday and he replied straight away. I asked if he would take a look at my I phone 3G home button as it hadn’t worked properly for a while. He allowed me to come to his home at 8am and had my phone all fixed and ready to go by 8:15am !! Nice, friendly, quick & professional service is worth every penny,especially at Spencer’s fair rates. I recommend this service 100 %.    Jim, Pickfords Segensworth, January 2011

What can we learn from Spencer / corePhone?

The testimonials show that Spencer / corePhone create superior value for people who have damaged their smartphones.  Let’s take a closer look at this superior value.

Customer Insight

The central insight that corePhone is built upon is the understanding that customers are attached to their smartphones.  Smartphones break – especially the screens.  Getting these screens replaced through the high street retailers is both time consuming (long delays) and expensive.  Customers want a fast turnaround and more affordable repairs.

Value Proposition

The value proposition is what converts people with a problem into customers who reach out to you and buy from you.  So what is corePhone’s value proposition?  According to the website, “affordable iPhone repairs”.  Read through the testimonials and you will find that this is a compelling value proposition.  Customer after customers speaks about the fairness, the reasonableness, the affordability of the repairs when compared to Apple and other high street retailers.

The Customer Experience

It is the Customer Experience that generates delight, indifference, disappointment and/or anger.  It is the Customer Experience that generates advocacy, word our mouth recommendations, customer loyalty and repeat business. Why?  Because this is where you keep or break the bargain that you struck with the customer through your value proposition. This is the area that Spencer / corePhone excel in.

If you reach out to Spencer / corePhone then Spencer responds quickly even on a Saturday morning at 7:40am or Sunday when he is out shopping.  And Spencer fixes your iPhone quickly – one customer rang at 7:40 am Saturday, was at Spencer’s workshop at 8am (that day) and left delighted at 8:15.  That is the next clue:  Spencer fixes your iPhone quickly – seems to be between 15 minutes and a half-hour.  Furthermore, by the time the iPhone is handed to you it looks new, perfect.  Finally, it looks like Spencer does more than he has to (‘”cleaning out ear pieces and ports..”) and treats his customers well – his customers like him as a person not just as a professional.

In short, the Customer Experience exceeds the value proposition.  The value proposition only talks about affordability and sets that expectation.  The Customer Experience delivers that extra: responsiveness, speed of turnaround, the intimate contact – being with /watching Spencer fix your iPhone in front of your eyes!  What must it be like to see a master craftsmen open up your iPhone before your eyes and convert it from a wreck to a work of beauty?  And how many of us want to take a look inside our iPhone and see how it is put together?  This is all included in the Customer Experience!

Have you noticed that corePhone doesn’t have a loyalty or social media program to generate advocacy?

At a recent CMO dinner I asserted that companies that create superior value for customers through compelling value proposition/s and delightful customer experience do not have to pay the tax of customer loyalty.  Show me a company that has a loyalty program and I will show you a company that is selling ‘me too’ products, services, solutions.  Please notice that corePhone is not having to go out and bribe customers with customer loyalty and social gimmicks.  Why?  Because it is a strong value proposition and it delivers an amazing (wow!!) customer experience.

Part II coming next

Enough for today, in the next post I will take a look at the corePhone website, extract and share with you the lessons for building a website that works for customers.  Very few websites do that especially if they belong to a big company!


giffgaff: what impact will the 8 hour service interrruption have on brand reputation and customer loyalty?

The giffgaff network: 8 hour service outage

Last Friday (16th) the giffgaff network went down and it stayed down for 8 hours.  It is not unusual for a mobile network to go down, it happens and many of us don’t even notice it because the outage last a couple of hours.  The giffgaff outage did get noticed – it got noticed by my wife, my son and plenty of other customers.  In our case the impact was not earth shattering.  Yes, my son who was feeling unwell was left hanging around outside for 50 minutes because he could not reach his mum.  As he said, it was annoying to have wait for 50 minutes when you are feeling ill but it’s not a big thing. For me, it is no big deal as I have two phones and had access to a second network that was working fine.

I think about switching until I get this email

The interesting thing is that the service outage did get me wondering as to whether I should switch the family over to say O2.  That was until Fri 16/03/2012 21:24 when I got this email:

We’re sorry

You may have experienced loss of service today (Friday 16th March), we’re sorry for the inconvenience this may have caused you.

This was due to a burst water pipe which took out the power at one of our 3rd party suppliers. Engineers have been working on this and have put a fix in place which we are now monitoring for stability. During the period where service is restored you may notice that your service is intermittent.

We’re continuing to work on this issue and regular updates will be provided in the community Noticeboard. Additional information is also available via our Blog where our CEO Mike Fairman has popped up a quick update.

Once we are sure that full and stable service has been restored for all members we will look at ways to make it up to you.

Again, sorry for the inconvenience.

Regards,

The giffgaff team”

Upon reading this email my reaction was “I’m sticking with giffgaff!”  Why?  The email struck me as the kind of response that I would expect from a decent and professional human being who had mistake and was now doing everything to make things right.  No, that is not enough.  It occurred to me that this is the kind of email that can only come from someone who has heart – who cares about doing the right thing.  Specifically:

  • The subject header is exactly right -”We’re sorry”.  Isn’t that what we expect and what our friends/family say when they have messed up?
  • The cause of the outage is explained;
  • It provides reassurance (we are continuing to work on it) and access to more information (Noticeboard, blog) for those who need it;
  • The line “Once we are sure that full and stable service has been restored for all members we will look at ways to make it up to you.” is a perfect line.  giffgaff get that whilst it is important to make it up to their customers, it was even more important at that time to deal with the issues (e.g. number porting) that had piled up (and were impacting) customers.
  • The email doesn’t just start with sorry it also ends with sorry.

What does the customer base think?

I trawled through the comments left by customers and the ratings of the comments.  Based on that I’d say that the customer base is split into two camps – polar opposites of each other.

The first camp is not happy with an 8 hour outage and it is best characterised by the following comment:

“I’m with the people who are wondering how this can possibly happen.

We get it, accidents happen, you can’t plan for everything etc… but for one water burst to knock out your entire network is unacceptable. Sure a lot of people just couldn’t text their friends or whatever, but some people might have had an emergency and were without a phone.

I’m glad I had the foresight to buy myself a backup pay as you go orange sim card in case this happened, I would never have done that with any other network…but with giffgaff, I felt it was necessary.

You can’t keep customers with your amazing prices alone, you have to provide a good and reliable service.”

The other segment of customers get that the service outage was a pain and yet give giffgaff full credit what they are about (the value proposition) and how they went about addressing the service outage.  This is best captured by the following comment:

“Thank you GiffGaff employees for getting our network back up and running. Was a hell of a pain without service but hey these things happen, maybe it can be classed as a learning curve for the future. I love GiffGaff and won’t leave you because of the occasional hick cup. Im sorry that so many people feel the need to complain, we have all suffered one way or the other because of this, but for god sake people find something to moan about that really is worth moaning about. You get great value from GiffGaff and they work hard for us when things do go wrong. So stop whingeing and give them a cheer and a big thank you for working so hard to fix the issue.

THANK YOU GIFFGAFF AND ALL YOUR EMPOYEES FOR WORKING SO HARD.”

What are the implications for giffgaff?

If I have read the comments correctly then I’d say that giffgaff have not burned their bridges with the bulk of their customer base.   To the contrary, most of the comments were positive about giffgaff.  Yet giffgaff does have an issue.  Why?  The phone is not just a device, it is THE device for most people; once customers sign-up with a network they expect it to work perfectly and all the time.  They might not notice short service outages, they definitely notice longer service outages: 8 hours is a long, long service outage.

My advice to giffgaff? You have done a good job in the way that you handled the service outage.  And that kind of service outage should not have happened.  So you should do the following:

  • take this opportunity to learn what needs to change (technology, processes, people….);
  • let your members (customers) know what you are doing to make sure that this kind of outage NEVER happens again;
  • invite (and engage) your members to play their part in what needs to happen – that way it becomes something that we do together, that way the ‘ownership’ of giffgaff continues to be distributed;
  • keep your promise and make it up to them – you can use this as an exercise to build more rapport with your customer base if you go about it in the right way.

Final observation

The impact of the  CEO’s post setting out the position (status) and offering an apology is interesting: many customers found that comforting / reassuring  and as a result it generated goodwill for giffgaff.  That strikes me as being an example of a leader leading.

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