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Customer Experience And Loyalty Starts And Ends With The Product!

Back in 2011 I asked this question: Customer Experience: What About The ‘Product’? And I ended that conversation with the following assertion:

The product is not in one domain and Customer Experience in another domain.  Any serious examination of the Customer Experience has to grapple with the product and how well it does the job that the customer is hiring it to do.  That means designing that product so that it is both useful (does the job) and usable (easy/intuitive) to use.

Today, I stand by that conversation. In particular, the necessity and critical importance of the ‘product’ (the core product or service which calls forth the customer to reach out and interact with the organisation which is selling that product or service) to any serious work on improving-transforming the customer’s experience of the organisation.

I also find that I was wrong. How so?  Today, I’d sum up that conversation differently.  How would I sum it up?  As follows:

 The ‘product’ is not in one domain and Customer Experience in another domain.  Any serious examination of the Customer Experience (as in the customer’s experience) has to grapple with the ‘product’ and how well it does the job that the customer is hiring it to do.  That means designing the ‘product’ so that it is useful (does the job), usable (easy/intuitive to use), and sensuous (evokes the senses and calls forth awe). When you get the ‘product’ right you will learn that in a substantial-meaningful way that the customer’s experience and loyalty start and end with the design of the ‘product’. If you have the right product then you can concentrate on marketing (advertising, distributing) it. Little need to waste your time on the latest corporate nonsense: customer experience management as in customer interaction management across a multitude of interaction channels.

What has led me to this way of summing up the matter?  Apple. In particular, Apple’s latest financial results - the largest quarterly corporate profit of any company.  Let’s look into the quarterly figures a little bit more: revenue of $75bn, profit of $18bn, and Apple sold 34,000 iPhones per hour.  Allow me to share this paragraph with you (bolding mine):

Apple chief executive Tim Cook called the company’s sales “phenomenal” and said the company had sold 34,000 iPhones an hour every day of the quarter. “This volume is hard to comprehend,” Cook said.

I am now going to make my most controversial assertion. Ready?  I say that the field of Customer Experience Management (as in customer interaction management) is attractive to and for the mediocre. Yes, the mediocre!  You know the folks that do not design-sell great ‘products’.  ‘Products’ that do not simplify-enrich the lives of our fellow human beings.  Look if you make a great product then the world beats a path to your door -including overcoming any hurdles along the path.  Only CXM fools ignore the critical importance of the ‘product’. Isn’t the product the reason that the customer takes action – to actual reach out to the business in the first place?

 

If You Are Struggling In Calculating ROI And Getting Buy-In To Your CX Initiative

I am in the process of reading Edward Slingerland’s book: Trying Not To Try. The following passage got my attention:

Now, imagine a person turning around and, all of a sudden, spotting a small child stumbling toward the opening of a deep well. There is no one who, in such a moment, would not experience a feeling of alarm and empathy. Their response would be motivated by this feeling alone – not because they want to save the child and thereby gain some merit with the parents, not because they want to gain a reputation for goodness among their neighbours and friends, and not because they want to avoid having to hear the child’s anguished cries. From this we can see that someone lacking this feeling of empathy cannot be called a proper human being.

– Mencius

Notice, really notice, what it is that Mencius (‘follower’ of Confucius) is getting at here.  Imagine the same scenario and two adults present. One spots the little child, without any calculating, is called into action. The other, spots the child and starts doing a ROI calculation: the cost of taking action v the payoff (return) in terms of what can be gotten from the child’s parents, neighbours, friends, the community at large.  Which of these two adults will spring into action and save the child? Which of these two adults when s/he acts will do so in the appropriate manner – one that leaves the child cared for / grateful?

If you are with me so far then it occurs to me that you have gotten insight into why it is that so few organisations cultivate genuine-meaningful-enduring loyalty between themselves and their customers and vice versa.  Look at it differently, when you are busy calculating ROI of Customer Experience / Customer Engagement / Customer Relationship / Customer Loyalty initiatives so that you can sell the Tops on your Customer initiative what is really going on? And what does this disclose?

To me it discloses that the Tops are either ‘takers’ or ‘matchers’ or a mixture of both.  Just examine that for a moment and ask yourself this, why would any sane human being (customer, employee, supplier, partner) feel any loyalty to a ‘taker’?  Then consider that when you are dealing with a ‘matcher’ then what is occurring is transaction: matching requires a calculating way of being-in-the-world. The same question: why would any sane person feel any loyalty towards a ‘matcher’?

To sum up, it occurs to me that:

  1. Only a handful or companies cultivate meaningful customer loyalty because only a handful of companies have Tops who are ‘proper human beings': have-express the kind of empathy (that Mencius is pointing at) that resonates with the people who work in the organisation (employees) and the people who are served-impacted by these employees (prospects, customers, suppliers, partners).

  2. Any organisation whose Tops are not ‘proper human beings’ will not cultivate meaningful-loyal relationships (with employees, with suppliers/partner, with customers) no matter how much time-money-effort is spent on strategy, on process changes, on people changes, on the latest technology.

  3. If you are lower down the food chain, struggling with calculating the ROI of your customer experience / engagement / loyalty initiative and getting ‘buy-in’ from the Tops/Middles then I advise you to stop wasting your time – go find another line of work, or work for the Tops/Middles who are empathic towards the whole Customer thing.  Why suffer? Why seek to convert those whose very being is not in line with the Customer philosophy?

Customer Experience Lessons From Amazon UK’s Failures

It is my experience that for the most part and on the whole Amazon UK delivers. It makes it easy for me to find stuff, order it and pay for it. It keeps me informed about when the item/s are going to be delivered. And when they are delivered. Finally, Amazon makes it easy for me to deal with matters that have not worked out as I expected them to.

Against the background that I have painted, I have found myself somewhat disappointed with Amazon as a result of three customer experience failures. I want to share these failures (breakdowns) with you. Why?  It is the breakdowns, in the habitual, that provide me with access to getting present to that which I take for granted, to see matters with a fresh eye, and usually these breakdowns provide an opening for breakthroughs.

Customer Experience Failure 1: The Product Does Not Meet My Expectations

I ordered a copy of Crime and Punishment from one of the Sellers on Amazon UK. I deliberately picked a Seller who displayed a copy of the book with a red cover and described it as “Used – Very Good”. What turned up?  A tatty copy: the book was worn/shabby and the cover was white not red.  What emotion was aroused in me? Disgust. I found myself not wanting to touch the book. I found myself wanting to throw the book in the bin.

What did I do? I logged into my Amazon account, found the appropriate order, and raised an issue (in writing) with the Seller – sharing my disappointment. Within an day or so the Seller reached out to me in a friendly-understanding manner. The Seller apologised. The Seller shared her disappointment with me. And the Seller refunded my money.

What are the lessons here?  I can think of several:

1. The product is most definitely a core constituent of the Customer Experience!  Put differently, it is foolish to exclude the product and product considerations from the Customer Experience bucket – which some ‘Customer Experience guru’s’ do.

2. You must deliver on the expectations that you set.  If you display a red cover then make sure that the book delivered has a red cover. If you describe the product as being used yet in a very good condition then make sure it is.  The description of the product is not just some marketing fluff; it is a promise that you are making to the customer and in making that promise you are setting the customer’s expectations!

3. If you mess up then be charming-gracious about dealing with the consequence of it. How? By owning up to the mess up AND most importantly the emotional impact of your mess up on that particular customer.  How do you work out what the emotional impact is? By listening to the customer and/or asking the customer.  Then making things right. In this case the Seller refunded the total cost of the book.

4. Use every interaction to build trust and goodwill. It matters that the Seller did not ask me to waste my time sending the tatty book back. If the Seller has asked or insisted that I send the book back then that would have left me feeling angry. Why? Not being trusted and having my valuable time wasted. By trusting me, I am left feeling nothing but goodwill towards the Seller. How do I explain this event to myself? Something along the line that even good folks f**k up from time to time.

Customer Experience Failure 2: I Have To Go To The Post Office Depot To Pick Up My Parcel

One day I got home to find a ‘ticket’ for me from the Post Office. It was notice telling me that I needed to go to the Post Office Depot to pick up my item. And that I needed to pay something like £2.00. Why? Because the Sender had not paid postage. So I made my way to the Post Office depot to collect my item. What did this cost me in addition to the £2.00? It cost me something like 45 minutes of my valuable time: drive there, queue-wait, collect-pay, and drive back home.  So I logged into my Amazon account and made a complaint to the Seller of this item – a book.

What did this Seller do, how did he respond?  I got an explanation, an excuse, for the failure to pay postage. Something like, all are items are franked, this should not have happened, don’t know how this has happened. And I was told that half the cost of the book would be refunded along with the £2.00 postage I had paid.  How did this leave me feeling? P****d off!  Why?  My central gripe – waste of 45 minutes of my life – was not acknowledged and addressed

What are the lessons here?

1. The customer cares about his/her experience not about your policies, processes or practices! So if you mess up then acknowledge the impact your mess up has had on the customer - as experienced by the customer.  I was looking for something like “You are busy. By not paying for postage we made you waste 45 minutes of your life including 20 minutes waiting in a queue which you hate to do. Really sorry about that.”

2. When you mess up then ask the customer what you need to do to make things right.  By not asking me the Seller did not involve me in resolving my complaint. By making a decision on my behalf I experienced the Seller treating me as an object not as a human being.  If the Seller had asked me what he needed to do to make things right, I might have told him that by asking me that question he had already made things right. Instead, I was left thinking-feeling “This is NOT good enough! It is not adequate compensation for wasting my time.”

Customer Experience Failure 3: Amazon UK Lies To Me!

I ordered a book directly from Amazon UK – not from one of the Sellers on Amazon UK.  I ordered that book either late on Friday or early on Saturday.  I was expecting to get the book in the following week – earliest Monday. To my surprise I got an email from Amazon UK informing that the book would be delivered the next day: Sunday.  I found myself DELIGHTED – delighted that Amazon delivers on Sundays, delighted that I could start reading it on the Sunday as I had some spare time that Sunday.

Guess what happened on Sunday?  Around about lunchtime I got an email from Amazon UK.  The email told me that Amazon UK had delivered the book to my home.  That email left me puzzled.  If the book had been delivered then why had it not made its way through my letter box? So I opened the door to see if the book had been left outside on my doorstep. No. I went around to one side of the house, to see if the deliver folks had left it in the garden as they sometimes do. No.

How was I left thinking?  I was left asking myself questions.  How is it that Amazon says the book has been delivered and yet it has not been delivered?  Has Amazon made a mistake? Or is it that the delivery folks are playing games with Amazon? Or is it that Amazon’s definition of delivered differs from my understanding of delivered. And if Amazon gets something as basic as this wrong then what else does it get wrong: invoicing, not delivering some of my stuff, charging me a different price to that which was displayed?

How was I left feeling? Delight turned into significant disappointment.  There was even some frustration thrown in. When? When I was looking around the house for the book that had been delivered (according to Amazon UK) and which I could not find.  I believe that I also experienced mild anger. I suspect that if an Amazon manager had been around I would have ‘given him/her a piece of my mind’.

When did I get the book? On Monday. Was I delighted/happy to get the book on Monday? No.  Yet, if I had been told that the book would be delivered on Monday and had been delivered on Monday, I would have been happy. And importantly, my trust-confidence in Amazon would not have been dented.

What are the lessons here in addition to that which I have already shared?  The following occur to me:

1. If you are pushing the envelope on the Customer Experience (like Amazon UK is doing) then make sure that you do not push it so far that delight turns into disappointment.  It occurs to me that Amazon is pushing the envelope in letting its customers know when a delivery is scheduled. And then letting the same customers know when the delivery has been made.

2. Every piece of information you provide to your customers acts kind of like a promise and sets the customer expectations.  So make sure that the information is accurate.  Any ‘bullshitting’ in the provision of information is likely to come back and bite you in the form of customer disappointment. It occurs to me that this is a lesson that many in marketing and sales have yet to learn.

3. Your informational processes+practices must be in tune with you operational processes+practices. Any disconnect between the two is likely to impact your customers – usually negatively. I imagine that the delivery partner informed Amazon that delivery had been made. And this triggered Amazon’s email alert to me.

4. If you subcontract part of your value chain (like Amazon does when it comes to delivery) then you will be held responsible, by the customer, by the failures of your value chain partners. Therefore, it behoves you to select the right partners and ensure that if they are telling you something then you can rely on their word. For my part, I am clear that I am disappointed only in Amazon because I hold only Amazon UK accountable for my experience as a customer.

Customer Experience: Summing Up 2014

I Find Myself Hurt, In Pain, With Sprained Ankle At Paddington Station

In an earlier conversation I shared the following:

I arrived at Paddington Station and made my way hurriedly toward the underground. Suddenly, I found my feet sliding, no control, left knee smacks into the hard tile floor, right leg twists awkwardly, the right ankle is in some pain. A helpful gentlemen helps me up. I recover and get that the floor has become an ice rink in some places (food for a future post). I walk slowly, in pain, towards the underground….

I hurt myself. Why? Because, the ‘vehicle’ for enabling-facilitating walking at Paddington Station was not fit for purpose. What do I mean by that? That one of the primary functions of a floor is to make it easy for folks to move around, at normal walking speeds, safely.  Before, I get further into this, I want you to get that Paddington Station is one of the main railway stations coming into and out of London. There are always plenty of people standing around and walking about. It is especially heavily trafficked at peak time (early mornings, after work). And there are all kinds of people using this station: older couples, middle aged folks, youth, male, female, business folks, leisure travellers etc.

Customer Experience: What Is The Default Setting?

Why is that the floor at Paddington Station did not facilitate one of its primary roles: enable passengers (customers) to walk about easily, freely, quickly (if need be) around the railway station?  Because it was raining. Some of the rain ended up on the smooth, good looking, tiled floor. The rain on the smooth floor, reduced the already reduced friction/traction – to the point where it is really easy to be walking one second, sliding the next, and then finding oneself in pain, hurt, on the floor, dazed, wondering what happened.

Let’s stop. I invite you to ask yourself, how is it that intelligent business folks did not put the various elements together to foresee (smooth floor, rain, floor as ice rink) and thus prevent the annoyance and/or harm to the passengers? My hypothesis, is that insufficient attention-consideration was given to the customer. Did anyone even put the ease/safety of walking as a key decision criteria when the floor was being selected?  It is easy to be smart with the benefit of hindsight. So let’s accept that with the best of intentions we are fallible creatures and make mistakes.

Before we move ahead, I do wish to make one general point: the default is that of poor customer experience  and this is so because the world has been setup without adequate consideration of experience based customer needs. In my view, this is particularly so in nations-cultures with a strong Protestant-Calvinist influence. Incidentally, the lack of consideration of the end users experience based needs is the reason that most CRM systems fail to be adequately adopted and thus fail to generate the promised benefits.

Summing Up The State of Customer Experience As At 2014

Let’s get back to Paddington station and sum up the challenge:

What is so: the floor becomes a potential safety hazard for customers (passengers) when it rains;

Desired outcome: make it easy and safe for all the usual customers to walk around the station, given many obstacles (usually fellow travellers), in all the usual weather conditions – rain is usual in the UK.

Imagine that you are the person responsible for Paddington Railway station. You are the person confronted with coming up a course of action to deal with what is so and bring about the desired outcome. What is the course of action that you’d take? What would the end solution look like?  Would you fix the roof so that no rain got through to the floor? Would you fix the floor to ensure that the floor is rougher thus providing more traction? Would you put some kind of drainage solution to drain water from the floor?  What would you do if you were truly customer-centric and committed to putting the right customer experience (of walking) in place?

Here’s the answer that the folks that manage Paddington Station have put in place:

caution cone paddington stationLet’s stop and consider this. Has the challenge been addressed?  Has management got rid of the potential hazard to customer safety?  Has management improved the customer experience?  No!  What has management done? Management have provided some useful information to the customer: “caution wet floor”. What else has management done?  They have placed the burden of responsibility on to the customer – now if the customer slips and hurts himself he can blame himself for being careless. And management has mitigated its liability under the health and safety legislation. Why have I shared this with you? Because it occurs to me that this concrete example illustrates the course of action that many have taken regarding Customer Experience challenges-opportunities.

Looking at 2014, based on my personal experience, the experience of fellow consultants, and reading the relevant articles/posts, I am of the view that I can sum up the state of Customer Experience in 2014 as follows:

  1. There are only a handful of organisations that compete on the basis of the Customer Experience and excel at it. These organisations continue to do well. For the folks in these organisations Customer Experience is a way of life – like speaking English is a way of life for me.
  2. The vast majority of Tops and Middles toying with Customer Experience lack the courage to take bold action.  In the absence of courage, a ‘burning platform’ is necessary to trigger bold action. For most organisations and management teams such a burning platform is not present.  Look beyond the fear mongering and ask yourself how many organisations are in the shape IBM was when Lou Gerstner took over and kind of totally reshaped IBM?

  3. Where work has been done on Customer Experience, Tops and Middles have taken the easy way out, tinkering on the edges. The stuff that really matters has been kept intact. The business model remains intact. Management practices including those that yield ‘bad profits’ – profits made at the expense of the customers – remain intact.

  4. The Tops and Middles have, once again, resorted to the same old tools and techniques: business process changes and implementation of information technologies whether labelled as CRM, CX, marketing automation, or big data…

  5. Many claim to be Customer Experience experts and/or gurus, almost none of them are. Before you accept this claim I ask you to consider how you would determine if a carpenter is a great carpenter. Would you do so by listening to him speaking? Would you do so by reading his book where he share his tales and tales of others – stories which make you feel good?  Or would you go and see for yourself that which the carpenter has created with his own hands? This has to follow logically and necessarily from point 1 above – there is only a handful of organisations that compete on the basis of the Customer Experience and excel at it.

  6. One reason that so many can get away with claiming to be Customer Experience experts and/or gurus is that the term Customer Experience has been turned into an empty and usually misleading idea. For example Customer Experience is became another fashionable, higher status, label for Customer Service; many folks of significance in Customer Services (including call-centres) have customer experience in their titles. On the other hand some marketing folks – especially digital marketing folks – are using and abusing this fashionable label. Then there are folks who oversee the execution and compilation of customer surveys – they have also chosen to sit under and claim the Customer Experience label.

 

 

Customers-Employees-Leadership: Distinguishing Between ‘Caring About’ And ‘Caring For’- And Why It Matters

Given that I find myself in the week of Christmas, it occurs to me that today is a great time to diving into caring. And in particular, I wish to make/introduce a distinction. Which distinction? I wish to distinguish between ‘caring about’ and ‘caring for’. Let’s start with the realm of Customer.

Caring About Customers v Caring For The Customer

I am clear that folks in business care about customers. Specifically, they care about:

  1. Figuring out what makes customers tick – by ‘listening’ to customers through market research, social listening, ethnography, and voice of the customer surveying;
  2. Getting more customers – turning prospects into customers by pushing out the right message, right offer, at the right time and through the right communication channel;
  3. Keeping more of their existing customers buying from them for longer – through a range of techniques including making it easier for customers to do business with the organisation (reducing effort, improving access, improving the customer experience) and through targeted incentives (promotions, discounts, loyalty points);
  4. Selling a wider range of ‘products’ to existing customers – by turning customer data into insight through the use of data mining and predictive analytics or just plain collaborative filtering;
  5. Moving existing customers from lower margin ‘products’ to higher margin customers – through the use of range of techniques and tactics;
  6. Winning back folks that used to be customers – usually through some kind of enticing promotion, discount or, rarely, a new/compelling ‘product'; and
  7. Servicing customers in a smart manner – by using the right combination (digital, telephone) of customer service channels.

Now, let’s turn our attention to caring for the customer. Let’s start with the basic question, who (specifically) cares for the customer?  Let’s make this even more specific, who cares for me?  As a customer, I deal with many companies and I am clear that there is not one company/organisation that cares for me. Not one! I, as a flesh and blood human being, do not show up on the organisational radar. Does anyone in an organisation ever care for me in a business context? When I interact with the organisations that I interact with do I get left with the feeling-experience of being cared for by an organisation? The answer is: No!

Are there any occasions where I, as a customer, feel cared for? Yes. When do I experience this kind of experience? When I encounter a Welcomer. What is a Welcomer? For me a Welcomer is a human being who, in his being, welcomes me as a fellow human being. S/he going beyond the formalised rituals of business and organisational life, beyond the scripts, beyond the transaction, and reaches out to me as one human being to another. I know when this is going on because I notice and experience the English reserve breaking down. There is breaking down of boundaries, whilst still respecting boundary. There tends to be mutual disclosure of the human kind: sharing occurs. And there tends to be smiling, even laughter. As a result of these kind of encounters, I find myself uplifted, smiling, grateful and with a sense of pride in being a member of the human race.  These kind of encounters leave me with hope, with optimism in my footsteps.

I invite you to consider that there is a world of difference between ‘caring about’ customers and ‘caring for’ the customer. Notice the difference: in the realm of ‘caring about’ we are dealing with customers whereas in the realm of ‘caring for’ we are in the realm of the individual customer – that one human being.  There is a vast difference. And it occurs to me that the folks who talk about, evangelise about, preach out all things Customer are not present to this critical distinction.

Does this indifference between ‘caring about’ customers and ‘caring for’ the customer matter? I say it matters – it matters to each customer. You see this is the deepest and most radical meaning of personalisation – speaking to the person of that one person (the customer).  I invite you to listen to the following words:

The general obsession with observing only historical or sociological movements, and not a particular human being …. is as mistaken as a doctor who does not take an interest in a particular case. Every particular case is an experience that can be valuable to the understanding of the illness…….

….. this indifference to the individual, total lack of interest in intimate knowledge of the isolated, unique human being, atrophies human reactions and humanism. Too much social consciousness and not a bit of insight into human beings.

As soon as you speak in psychological terms ….. people act as if you had a lack of interest in the wider currents of the history of man. In other words, they feel able to study masses and consider this more virtuous, assign of a vaster concept than relating to one person. This makes them …. inadequate in relationships, in friendships, in psychological understanding.

– Anias Nin

I invite you to consider that the strongest bonds, usually called loyalty, occurs where one human being experiences himself cared for (as a unique human being) by another human being.  Is it then any surprise that despite the talk of customer loyalty, and all the customer loyalty programmes and tactics, there is so little loyalty between customers and brands.

Caring About Employees v Caring For The Employee

Sure, organisations ‘care about’ employees. It is the employees who do the work – the work that creates value for the the customer. The work that ends up generating revenue and profits. So I find that organisations care a great deal about their employees including but not limited to:

  1. Attracting the right people to become employees of the organisation;
  2. Keeping the most valuable employees;
  3. Getting more out of their existing employees (productivity, collaboration, teamwork, ideas..);
  4. Ranking employees for performance management purposes;
  5. Minimising the costs associated with recruiting, retaining, managing, controlling employees.

Now, who in your organisation actually cares for that individual flesh+blood human being to whom you have given the label employee, and, thus deprived him/her of personhood and turned him/her into a category? Let me ask this question differently, as an employee do I feel cared for? Who do I feel cares for me in this organisation in which I find myself employed?

I invite you to consider that there is world of difference between ‘caring about’ employees and ‘caring for’ the person to whom you have given the label employee.  Does this difference matter?  Of course it matters!  Until this difference is recognised and acted up organisations will continue to grapple with the challenge of ‘employee engagement’.  Why should I engage with you and your organisation when I do not feel myself cared for – as a unique human being?

What Has This To Do With Leadership?

I invite you to consider that this distinction between ‘caring about’ employees and ‘caring for’ the person whether under the label ‘customer’ or the label ‘employee’ can be used to distinguish between management and leadership.  Leaders must dwell in the human real, the personal realm: ‘caring for’ the person.  Here I share the following wise words with you:

My lack of faith in the men who lead us is that they do not recognize the irrational in men, they have no insight, and whoever does not recognize the personal, individual drama of man cannot lead them.

– Anais Nin

Something to Consider And Play For At Christmas?

As you head into Christmas and the festivities where hopefully you will be in amidst people who are family and friends, I invite you to be present to the distinction between ‘caring about’ and ‘caring for’ the folks that you will be meeting up with and celebrating Christmas with.  It occurs to me that making the shift from ‘caring about’ the folks you find yourself with, to ‘caring for’ each person that is there will transform your (and their) experience of Christmas.

If you play this ‘game’ you might just find that ‘caring about’ is easy, ‘caring for’ is really difficult. This might just explain why it is that all the folks who speak Customer and Employee make ‘caring about’ masquerade as ‘caring for’.  The interesting thing is that whilst we can hoodwink ourselves in the management suite, our customers and our employees are not hoodwinked that easily: they experience and detect the difference between ‘caring about’ and ‘caring for’ – which is why they are not loyal to us and rightly so.

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