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in the bottom of a coconut, just big enough for the monkey to slide its hand in., but not big enough for the hand to be withdrawn when it is clenched.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.

 

2014 State of Customer Experience: Who Are UK’s 2014 Leaders And What Can We Learn From Them? (Part 2)

In this post I continue the conversation I started in the last post. The focus of this conversation is the customer experience themes that Nunwood call attention to in their 2014 UK Analysis Report.

What Are The Primary Customer Experience Themes?

I shared one of these customer experience themes with you in the last one. So let’s start on that one and flesh it out.

1. Employees Come First, Customers Come Second

Let’s start this theme with a few paragraphs from the Nunwood report (bolding mine):

These excellent companies realise that value is created commercially and reputationally at the interface between the employee and customer – and it really does happen in that order…… So it is no accident that members of the top 10 also feature highly in the Sunday Times best places to work survey. 

As such, the management lesson for brands aspiring to join the top 10 is clear: those responsible for the employee experience need to be fundamental and genuine partners in building customer experiences. Internal values, behavioural frameworks, competencies, training plans and recruitment principles are fundamental determinants of CX success. 

 

I find myself in full agreement with that which Nunwood articulate. And I acknowledge Nunwood for talking straight and pointing out the Achille’s Heel of just about every Customer initiative (strategy, CX, CRM, customer service) that I have been involved in since 1999.  It continues to be an Achilles Heel because there is no listening for the soft stuff, the human stuff, and certainly not for treating employees right.  That which Nunwood is pointing out has been pointed out before. It even has a name: Service-Profit chain. 

If this is the challenge then what is the ‘solution’ that Nunwood proposes? Let’s listen (bolding mine):

…. HR are seen as playing a role in implementing some customer journeys, but are not genuine partners in the overall strategy. Putting in place a progressive customer governance, which unites marketing, operational and HR professionals, is an important consideration ….

Is that enough? Is it enough just to get the marketing, HR operational folks and let them cook up customer and employee experience excellence? No. Why not? Because technology plays such a critical part. Technology enables or constrains, it facilitates or hinders, it can liberate or enslave. So this is what Nunwood says (bolding mine):

… the CIO will also have representation in this group – as systems and technologies become a vital determinant of the kind of employee and customer experiences that these brands are seeking to forge.

2. The CX Champions Benchmark Themselves Against The Best Organisations In The World

Industries can be meaningful ways of looking at the business world. And  looking at and across the players in a particular bucket, category, can be a useful exercise – if you are financial analyst or the like.  When it comes to excellence in Customer Experience staying in these artificial silos is limiting. Why? Let’s listen to Nunwood (bolding mine):

…. experienced, well-informed consumers have expectations that are no longer industry-specific. A consumer’s experience with Amazon or Appliances Online resets their expectations for all digital experiences. The same for the purchase experience in Lush – for all retail experiences…… the excellent companies are simply following their customers in expanding their field of vision to discover what great looks like and then building that into the experiences they create, fuelling a constant cycle of setting and resetting expectations.

In Which Domains Are The CX Champions Shaping-Setting-Resonating With Customer Expectations?

1. Standing For Something Meaningful and Facilitating Values Based Buying

In an age where ‘God is dead’, an age of nihilism, an age where one can buy just about everything, what is it that many yearn for and cannot be bought? Meaning.  Let’s listen to Nunwood (bolding mine):

Lush and before it Body Shop, are indicative of a shift toward value based buying. The increased expectation that, not only are the products and services great, but they also bring with them some form of attached meaning. Consumers buy into what the firm stands for as much as its products.

Reading that paragraph, I find myself reminded by Simon Sinek. He has been saying pretty much the same thing for a couple of years. And using Apple to illustrate this thought.  If you haven’t watched his TED talk then I urge you to do so.

Just in case you think that meaning and values are only for the likes of Lush or the Body Shop then Nunwood has this ‘warning’ for you (bolding mine):

Marks & Spencers Plan A still strongly resonates with customers, as does the Waitrose green token that apportions local charitable giving. Conversely, Amazon’s reputational issues manifest itself in a slightly weakening …. customer experience. In 2014, customer’s expect ethics as standard. 

2. Ease Through Seamless Omni-Channel Integration

I prefer to do business with those organisations which make it easy for me to do business with them. Turns out my wife and children are very much like me. In fact, I have yet to come across anyone who will admit to preferring doing business with the folks that make it really hard to do business with them.  Here’s what Nunwood says (bolding mine):

John Lewis has set the benchmark for online retailing. Customers are empowered to purchase how they want, in the way that they want – without being pushed to low cost channels. First Direct works seamlessly across online and telephony, as does Appliances Online.

Here, it occurs to me that it is worth pointing out that First Direct is No 1 on the 2014 list of CX Champions. John Lewis is No 2. And Appliances Online is a new entrant at No 6. So making it easy for customers to do business with you through an integrated omni-channel experience makes some impact with/on customers.

3. Making It Easy For Customer To Quench Their Thirst For Useful Information

I have gotten so much into conducting some due diligence before buying that it has become an automatic reflex. Looks like there are many like me. Here is Nunwood again (bolding mine):

…. pre-purchase research has become its own form of entertainment as consumers educate themselves and each other. Amazon has led the way in equipping customers with a vast database of reviews, but Appliances Online has gone one step further, publishing reviews of its performance online, as have FirstDirect. 

If I had to sum all of this up I’d sum it up as follows:

  • Stand for something meaningful – that which resonates with you and your customers;
  • Provide solid products and services and ensure that you pass the Ronseal test;

  • Make it easy for your customers to do business with you by providing them with honest-useful information (that helps them in their buying decisions) and by ‘integrating your people-process-technology’ so as to provide an effortless omni-channel customer experience.

Enough for today. Let’s pick up this conversation in the next post where I propose to focus on highlighting some key features of the 2014 CX Champions.  I wish you a great weekend and thanks for listening.

The Beauty Of Apple

I wonder if you have noticed something about the world of business?  You may have not noticed it as this feature of business life is pervasive, so enduring, that lies in the background.  I found myself reawakened to this feature recently.

Some consultants and sales folks were carrying around and using the standard issue company owned laptops made by the likes of Dell, IBM, HP, Toshiba…. Others were carrying around and using Apple MacBook laptops (Air, Pro) – they had purchased these themselves out of their own money.

What is it that I observed? I noticed that the consultants and sales people using Apple MacBook laptops handled their laptops as if these were sacred objects. I noticed these folks look, actually look, at their MacBooks as I look at landscapes that catch my eye and take my breath away. I noticed that these folks displayed their MacBooks so that all could see. And I noticed that these folks carried their MacBooks with a certain kind of pride.  Most importantly, I noticed a certain kind of affection, even reverence, between the consultants and their MacBooks.

What about the consultants and sales people carrying around the corporate issue laptops made by the likes of Dell, IBM, HP, Toshiba..? I noticed these folks showed no pride, no reverence, no affection for their laptops. They treated them as functional machines – mere tools to do a job.  They dragged them out of their cases. They plonked them on the table. When not using them them ‘hid’ them by putting papers on top of them….

Have you figured out what feature of the business world I am talking about?  I am talking about the lack of beauty in the world of business! I am talking about:

  • conversations devoid of the beauty of genuine human warmth-friendliness;
  • products that function yet are devoid of beauty;
  • offices that are devoid of colour, fragrance, plants, flowers and have the feel of a factory in many ways;
  • call-centres in run down parts of the country where the human  spirit sinks as the body arrives for work;
  • retail stores that have the look and feel of hospitals….

I notice that some folks have been putting Apple down due to the lack of innovative industry making, coffer filling-overflowing, products.  This may be the case.

I notice that the same folks that put down Apple for its lack of innovation point towards Samsung for its innovation especially in the area of smartphones. What I have not yet experienced is an Apple customer handing in their iPhone for a Samsung Galaxy. Why not?  It occurs to me that Samsung products lack that which pervades the Apple products: beauty that calls forth awe, affection, even reverence.

How can you and your organisation cater for and meet one of the most fundamental human needs: beauty?  If you have got around to designing customer experiences then ask yourself if you have even considered this need for beauty?

Can You Improve The Customer Experience Without Spending A Fortune On Information Technology?

Does Customer Experience require information technology?  Allow me to rephrase this question, is it necessary to purchase-configure-operate an arsenal of information technologies to improve the Customer Experience?  Which is my way of asking, if it is necessary to turn Customer Experience as a business philosophy and/or value proposition into CRM: an information technology?

It occurs to me that it is mistake to collapse information technology and Customer Experience together – to make the kind of mistake that was made with CRM.  I say that your organisation can impact-improve the Customer Experience in many ways that do not require information technology.   Where is my proof? Let’s start with my recent experience.

Why Didn’t I Buy From Two Well Known Retail Brands?

I needed more trousers; my preference, some would call it addiction, is for Chinos. So my nephew drove me to a shopping centre outside of town. On his advice, I went to the first shop, found what I was looking for. And in the process I came across summer shorts. So with a handful of trousers and shorts I headed to the fitting rooms. Long queue. No movement for three minutes. No staff around to help out.  I put the goods back on the racks and left.

Onwards to the second retail brand, which just happened to be next to the first store. Within five minutes or less, I found myself exiting this story empty handed. Why?  One, they just didn’t stock trousers that fit me. Just about every trouser that caught my attention was regular length and regular is too short for me as I am tall and have long legs. Second, no staff members around to ask for help in finding longer length trousers. Third, the prices showed up as being too high; I remembered what I had paid for the Chinos I was wearing.

Why Did I Buy From The Gap Store?

Having had enough, I headed directly for the Gap store. Why? Because this is where I had purchased, some years ago, the Chinos I was wearing and happy with.  The store showed up as friendlier-easier as it was much smaller in size, I could clearly see two sales assistants, and they looked happy.  I spent over £150 pounds and walked out of the store with several Chino trousers and shorts.  Why did I end up buying from Gap?

  • They stocked the products that I was looking for – Chino trousers and a range of summer shorts;
  • I found the particular style I was looking for – Classic;
  • Each range of trousers came in a range of sizes including the size (34, 34) I was looking for;
  • I found it easy-quick to try on the trousers (and shorts) as there was no queue for the fitting rooms; and
  • The ‘checkout’ experience of paying for these items was quick-easy and delivered by a friendly sales assistant.

And there was a moment of delight. What delight? Upon checkout I found that I had been charged 30% less than I had expected to pay. Why so? Because Gap had a sales promotion that day and I had not noticed it as it had not been well signposted.

I draw your attention to this: no information technology was needed other than the POS till.  Gap ended up the winner simply because it did the basics of clothes retailing right: store design (size-layout-signposting), the right product, ability to trial the product, good customer service, and pricing that is in tune with product quality and customer expectations.

I also notice, that I have a stronger bond to Gap and Gap did not have to engage in any customer loyalty or outbound marketing programme to generate that bond. How has this strengthening of the bond come about? By stocking the kind of products that I am looking for, by asking the kind of price I am willing to pay, and by making it easy-pleasant to buy from them: not just once, but every time I have bought from them.

If Gap does want to do something other than get the basics right then here is my advice. Gap should consider storing my preferences in terms of the products that I have bought from them. And allow me to order those products from them. Why do I say that? Whilst I like their latest Chino trousers (the ones I brought from them recently) I prefer the ones that I bought several years ago.  The fact that those trousers are no longer available makes them that much more attractive to me. I wonder how many others are like me. If there are enough of us then there might be a market for listening to and catering to our needs. Back in the days when I was a consultant with Peppers & Rogers, we would put this idea into the mass customisation bucket.  This is where information technology would be useful, even essential, for improving the Customer Experience.

I wish you a great week, thanks for listening – your listening calls forth my speaking.  And if you have thoughts that which you wish to share then please engage in a conversation with me by commenting.