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What Has Motive Got To Do With Customer Loyalty?

More than once and by more than one ‘customer guru’ I have been accused of bringing moral considerations into an arena where moral considerations do not belong. Which arena is that? The business arena. Many folks are convinced that what matters in business is the right strategy (plotting the right course) and effective-efficient execution. According to these folks nothing else matters – except perhaps for good luck.

Are these self proclaimed rational, bottom line, no nonsense folks correct?  Frederick Reichheld published The Loyalty Effect back in 1996. And in so doing he put the matter of customer loyalty on the radar of business.  So folks in business have been working on building customer loyalty for almost 20 years. In the process, customer analytics, CRM systems, customer loyalty programmes, NPS, and voice of the customer feedback have become firmly established in big business.  What is there to show for it?  Which companies have, through these and other ‘vehicles’, cultivating meaningful customer loyalty?  Please name these companies. Now go back and ask yourself if the ‘hard headed’ business folks and the ‘customer gurus’ who pander to them are correct in asserting that moral consideration can be and should be left outside of the business arena.

I say morality matters. I say that the motive that gives rise to your ‘customer-centred’ actions matters: it makes all the difference! Allow me to illustrate the importance of motive through the words of  Edward Slingerland:

“On November 14, 2012, a tourist in Times Square surreptitiously snapped a picture of a police officer kneeling down to help a bare footed homeless man put on a new pair of boots. When posted onto the NYPD’s Facebook page, the photo went completely viral. The officer, named Lawrence DePrimo, had apparently been so moved by the suffering of the barefoot man that he popped into a nearby store to buy him a new pair of boots with his own money. “It was freezing out and you could see the blisters on the man’s feet,” he said when asked about the incident. “I had two pairs of socks and I was still cold”  The story was an enormous publicity coup for the NYPD, but the secret to its appeal was the spontaneity of the officer’s gesture and the happenstance of someone catching it on film.

Imagine if we found out later that DePrimo knew that the photographer was there and had been merely been grandstanding for the camera – his act motivated by the desire for fame rather than spontaneous compassion. This knowledge would instantly transform a heartwarming act of kindness into a horrible travesty. The very act itself would magically change, even though nothing would be materially different: the officer would still be out $75, and the homeless guy would still have a nice pair of boots that he didn’t have before. We have a powerful, ineradicable intuition that a “compassionate” action performed without the right motivation is merely a semblance, a counterfeit of virtue. The flip side is that evidence of sincerity and spontaneity in the moral realm inspires and moves us.

- Edward Slingerland, Trying Not To Try

As I said, morality/ethics/motive matters.  It is the thing that matters the most when it comes to the matter of relating, trust and loyalty. If it did not matter as much as it does matter then many a ‘wolf in sheep’s clothing’ would have made a success of their customer initiatives – cultivated meaningful customer loyalty.

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?

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.

Customer Experience As Idea, Not Methodology Nor Technology

As a thinker, I am struck by how rare original thinking is in the organisational world. As a thinker, I am struck by how little thinking – as in stopping and reflecting on that which is occurring and the pattern of this occurrence – occurs in organisations. As a thinker, I am struck by how little space exists within organisational life for ideas to be entertained and grappled with before the mindless rush to implement these ideas usually through some off the shelf methodologies, methods, tools and techniques.

I say that the idea of Customer Loyalty had power.  And this power vanished when we rushed to turn this idea into practical customer loyalty programmes: loyalty cards, databases, offers and points.

I say that the idea of Relationship Marketing had power. And this power was drained and Relationship Marketing turned lifeless when the idea of Relationship Marketing was turned into the technology of CRM: systems that enslave human beings in data capture and script/process following slaves.

I say that the idea of Customer Experience has awesome power. And many are bleeding this idea dry, void of power, by turning it into the methodology of customer journey / touchpoint mapping, the blind worship at the voice of the customers, and the technology of Customer Experience.

What is it that I am getting at?  Let’s see if I can communicate that which I am seeking to communicate to the practical people that dominate organisational life.  I invite you to read the following words of wisdom (bolding is my work):

The word idea supposedly originates in the Greek word eidos, which means something seen like a form and a way of seeing like an eye, a perspective. So, ideas are not only things you can pick up and ponder. They also give you eyes, new ways of seeing things. Ideas are already operating in our perspectives, the way we look at things. We take our usual ideas for granted, and so, ideas have us rather than we have them….

Is the idea fertile, fecund? Does it make you think? Is it surprising, shocking? Does it stop you from habits and bring a spark of reflection? Is it delightful to think it? Does it seem deep? Important? …. This requires you to ponder it, which means weight it, feel its weight…. Pondering is an action of its own and keeps you holding the idea, from letting it go into other kinds of action before it is fully appreciated. Meanwhile you get a better feel of the idea….

You know, to have an idea and thinking about the idea are two different things, and being practical often means skipping over the hard thinking part…

For ideas to be therapeutic, that is, beneficial to the soul and body politic, they must gather into themselves, garnering force, building strength, like great movers of the mind’s furniture, so that the space we inhabit is rearranged. Your thoughts, feelings, perceptions, memories have to be moved around in new ways, because the furniture has been moved.

A long lasting idea, like a good poem or a strong character in a movie or a novel, continues to affect your practical life without ever having been put there. Ideas that live, live in us and through us into the world. Viable ideas have their own innate heat, their own vitality. They are living things too.

But first they have to move your furniture, else it is the same old you, with you same old habits, trying to apply a new idea in the same old way. Then nothing happens at all except the loss of the idea as “impractical” in your haste to make it “practical”.

– James Hillman, We’ve Had A Hundred Years of Psychotherapy And The World’s Getting Worse

It occurs to me that the conversations that take place here, at The Customer & Leadership Blog, are simply an ongoing exploration and pondering of the ideas of customer relationships, relationship marketing, customer service, customer loyalty, customer experience, customer-centricity, and leadership.

I am no expert, no guru,  in customer relationships (CRM), relationship marketing, customer service, customer loyalty, customer experience, customer-centricity, nor in leadership. Yet, it occurs to me, that it might just be that I have grappled with these ideas at a deeper level than many.  Therefore, any value that i create for you – the person who listens to my speaking – arises out of my willingness to stay with the idea rather than rushing to provide you with a silver bullet for your organisational ills.

Why I have shared this with you?  To provoke thought: to provoke you into doing deeper thinking into the Customer realm before you go and buy the latest snake oil from gurus, experts, consultancies, and IT vendors.  Incidentally, don’t reach for the dictionary to look up definitions of all things customer: customer service, customer relationship management, customer experience etc. Why? Definitions only provide the illusion of knowledge and understanding. There is no replacement for original thinking. A good start would be the following questions:

  • What world of possibility does the idea of Customer Experience open up for us and our customers?
  • What might Customer Experience Leadership look like, feel like, sound like, taste like – for us, for our customers? 

  • What is the first step on the journey of Customer Experience Leadership for us? Is it really getting access to the voice of the customer? Or is it doing that which we know needs to be done for our actions to be in tune with our words?

And finally, I invite you to consider that many if not most organisations have failed to make a success of relationship marketing, CRM, customer loyalty, customer experience etc because these ideas have failed to ‘move your furniture’ leaving the same old you, with the same old habits, trying to apply these radically new ideas in the same old way. 

If you have made it this far into the conversation, I say thanks for listening. These conversations are not easy, not simple. This is deliberate – these conversations are designed to provoke thought from the thoughtful. They are not for the impatient looking for the ten steps to customer success.

What Is The Access to Transformation And Authentic Customer-Centricity?

What Is Transformation?

For the purposes of this conversation, when I speak ‘transformation’ I am pointing at a radical shift in one’s way of being – as in one’s way of showing up and travelling in this world.  If you are Christian, and know your Bible then think of the transformation (often called conversion) of Saul to Paul.  What was intrinsic to this transformation?  Was it not a letting go, a complete letting go, and embracing the unknown?

What Has Transformation To Do With Customer-Centric Business?

What has this conversation to do with all things Customer and especially customer-centric business?  Everything.  As I have said many times before a shift to showing up and doing business in an authentically customer-centric way requires a transformation: personal (Tops, Middles, Bottoms) and business (policies, practices, processes, tools).

a. What is the access to transformation?

What is the access to transformation at the individual (personal), and business (organisational) level?  Allow me to share the following with you:

In some Asian countries there is a very effective trap for catching monkeys. A slot is made in the bottom of a coconut, just big enough for the monkey to slide its hand in., but not big enough for the hand to be withdrawn when it is clenched. Then you put something sweet in the coconut, attach it to a tree, and wait for the monkey to come along. When the monkey slides its hand in and grabs the food, it gets caught. What keeps the monkey trapped? It is only the force of desire and attachment. All the monkey has to do is to let go of the sweet, open its hand, slip out, and go free - but only a rare monkey will do that.

– Joseph Goldstein, A Heart Full Of Peace, Best Buddhist Writing 2008

OK, this Buddhism stuff shows up for you as ‘other worldly’ – unrealistic.  So allow me to make it real for you.

b. The Transformation of Zappos Occurred in March 2003

Listen to Tony Hsieh talk about the early days of Zappos when the leadership team was struggling to find funding to keep Zappos going – the cash had run out (bolding is my work):

A month later, we still weren’t profitable. We still couldn’t raise funding.

But we had a decision to make.

How serious were we about this idea of making the Zappos brand be about the very best customer service? We had discussed the idea internally with our employees, and everyone was excited about the potential new direction.

But was it all talk? Or were we committed?

We hadn’t actually changed the way we did anything at Zappos yet. We did a lot of talking, but we weren’t putting our money where our mouths were And our employees knew it…..

For 2003, we were projecting sales to double, with about 25 percent of our overall sales coming from our drop ship business. The drop ship business was easy money. We didn’t have to carry inventory so we didn’t have any inventory risk or cash-flow problems with that part of the business. But we had plenty of customer service challenges.

The inventory feeds ….. from our vendors for our drop ship business were 95 percent accurate at best …. On top of that, the brands did not ship as quickly or accurately as our own WHISKY warehouse, which meant we had plenty of unhappy and disappointed customers. But it was easy money.

We all knew deep down inside that we would have to give up the drop ship business sooner or later if we were serious about building the Zappos brand to be about the very best customer service. We also knew that the bigger we grew, the more reliant we would be on the cash from drop shipping. There would never be a good time to walk away……

So we made what was both the easiest and hardest decision we ever had to make up until that point. In March 2003, with the flip of a switch, we turned off that part of the business and removed all of the drop ship products from our web site.

We took a deep breath and hoped for the best…..

We had to deal with our first test of our new direction right away. With a drop in revenue, cash was even tighter than before.

Now we had to figure out how to make next week’s payroll.

– Tony Hsieh, Delivering Happiness

Not easy is it?  Which kind of explains why many organisations which talk about customer focus, customer obsession, customer-centricity are playing at the periphery: making process changes, buying-implementing technology etc.  Which CEO or leadership team looks forward to taking a deep breath and hoping for the best?

Summing Up

If you are serious about cultivating genuine-meaningful loyalty between yourself and your customers then you have to open up your clenched fist. And let go of all the policies-practices-products-people that generate bad profits – profits made at the expense of your customers.

As Tony Hsieh says there is NEVER a good time to do this. So the best time to do that which goes with showing up and travelling the authentic customer-centric path is NOW! Why now?  Get this, everything that ever happens, happens NOW. I know that this is not how it shows up for you, or me. And look into this, deeply, and you will see the truth of it. All action occurs in the present, NOW.

Here is where it gets interesting. There cannot be an organisational transformation unless it is preceded by individual/personal transformation; this individual/personal transformation has to start with the Tops – it is called leadership.

What is the subtitle of Tony Hsieh’s Delivering Happiness book? “A path to profits, passion, and purpose”.   It occurs to me that the many with whom I speak show an avid interest in profits – increasing profits.  Few show any interest in any purpose other than ego: self enrichment in its many disguised. Passion?  Passion for great customer service, passion for great Customer Experience, passion for the genuine well-being of customers as fellow human beings?  If you come across it then please share it with me.

 

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