Marketing and Customer Experience: 6 Core Emotional Needs That Shape Human Behaviour (Part 2 – Control)

If you read the first post of this series you may remember that Mark Ingwer in his book Empathetic Marketing asserts that there are 6 core emotional needs of customers: control, self-expression, growth, recognition, belonging, and care.   In this post I share my thoughts and Mark’s assertions-insights regarding the primary emotional need: CONTROL. 

Satisfying the need for control provides the best access for building customer loyalty

Mark Ingwer is bold in his assertion when it comes to the need for control and the access it provides the smart business:

satisfying the control needs of the consumer, more than any individual need discussed in this book, holds the most potential for a company to build loyalty to a brand, product, or service through intrinsic motivation, which is the internal sense of satisfaction with the purchasing process and the resulting purchase.

Through the iPod and iTunes, Apple handed control of music over to the music listener.  Through the iPhone, iPad and the apps store, Apple handed over much more control over these devices to the user such that each iPhone, each iPad, can truly be customised to the user by the user.  Please notice the genius here. By handing so much control over to the user and making it easy for the user to exercise this control, Apple has created a context where each iPhone, iPad is unique and thus irreplaceable.  Hence, the value if iCloud.

Why is the need for control such a vital need?

Think for a moment about the last time that you did not have any control over an important aspect of your life. What showed up for you in your body? What emotions surfaced? Was it a pleasant experience? An experience you want to repeat?  If you are human then it is likely that this experience was a deeply unsettling one when it occurred. Here’s what Mark Ingwer says on this matter

The need for control fuels our motivation in every aspect of our lives. Positioned near the individuality pole of the needs continuum, control is essential to our every day functioning. We see how this need influences our lives most profoundly when we’re not in control. Some of life’s worst and most stressful predicaments are colored by feelings of helplessness – events in which we are unable to prevent or alter the inevitable. 

I invite you to consider the direction of human progress. Is this progress, as in increasing control over that which showed up an threatening for us or made life uncertain or merely difficult?  Do you doubt that our ideal, even if unstated, is to have complete dominion (control) over that which shows up on planet Earth. And then our galaxy and eventually the universe.  Why might this be?  Here’s Mark Ingwer again:

Many situations that fall outside the purview of personal agency hit us in the gut. We feel insecure. We feel small. We fear losing control. And we strive to regain that control. Not only does that loss of control prevent us from achieving our specific outcomes, but it is also often wrenching evidence that signifies our relative insignificance in a large (and largely random) universe.

When we feel in control of external events, in control of ourselves, and in control of our core relationships, we have a broader and more satisfying feeling of contentment and confidence …. we can’t grow as individuals without attending properly to this need.

Customer service and the power of control

Why is it that I do most of my shopping online and do all of my banking online? Because I experience being in control of the shopping process, the banking process. Why is it that I dread having to call up most call-centres? Because, even before I pick up the call I expect a long-tedious-unpleasant experience where I am at the mercy of the IVR, long waiting times, call-centre agents who lack the expertise-will-freedom to actually help me …..  Here is what Mark Ingwer says on the matter:

Nothing reveals the power of control – and the destructive power of lack of control – than customer service situations. Companies that sell services or routinely interact with their customers in service settings must pay special attention to a customer’s sense of control.

Poor customer service results when proxy control is ineffective. If the proxy does not behave as the customer desires, the customer loses control of the situation.

If you are wondering what proxy control is then think about wanting to do your banking online and finding that the website is out of operation. Or imagine needing cash, turning up at the ATM and finding that it is out of order and there are no other ATMs available. Or imagine, ringing up the call-centre and coming face to face with an call-centre agent who speaks with an accent you find hard to understand. Or imagine going to the restaurant with the family, having eaten your meal, finding your young ones tired, looking for a waiter to pay the bill, and the waiter seems to take forever to come back to take your payment. You are desperate to go home and yet cannot do so until the waiter comes over to you and takes your payment.

What advice does Mark Ingwer have for marketers and customer experience specialists?

What I like about Mark Ingwer’s book is the practical suggestions that he provides at the end of each chapter. Here is his advice for marketers and customer experience specialists, as it shows up for me:

1. Review your core marketing message. It should say to customers: you can be in the driver’s seat – assuming products and service can deliver.

2. Examine the customers’ experience. Are prospects and customers in control throughout the path to the final sale and afterwards?

3. Simply after-sales processes. 

If you want to learn more about these practical recommendations then you will have to buy the book and read it as I do not want to give away Mark’s secrets and deprive him of readers for his book.

If you remember only one sentence then remember this one

It occurs to me that when it comes to the end to end customer experience then this is the one sentence that captures it all when it comes to the human need for control:

From start to finish, customers must never sense that they are at the mercy of a company or product. 

The last time I was in such a situation I walked out of the cinema, choosing not to watch a film that I really wanted to watch, rather than be at the mercy of the cinema and its staff.

In the next post, I will cover the human need for self-expression.  It occurs to me whole industries are based on this need. I thank you for your listening.

Vizolution: A great way to drive sales conversions and improve the customer experience?

I have mixed relationship with corporate technology given my first hand experience of it. It is true that technology is essential and it brings many benefits. It is also true that most corporate technology is complex and expensive to set-up and operate. Last, and perhaps most important is that it does not show up as being usable nor useful to the people on the front lines that have to use the technology. Put differently, from the user perspective the disadvantages outweigh the benefits. A great example of such a technology is enterprise CRM systems. Can Vizolution prove me wrong?

I met up with Marcio Rodrigues, Customer Propositions Director, at Vizolution to learn about this technology. Here is what I learned:

  • Vizolution technology is being used by three of the top five UK banks and two of the top 5 insurance companies;
  • According to customer surveys, customers (95% of them) like the experience that is generated through Vizolution;
  • By using this technology financial services companies have increased sales conversions anywhere from 14% (mortgage conversion) to 93% (life insurance and critical illness); and
  • The folks in compliance love Vizolution as it sends/receives files using 128 bit encryption, allows complex issues to be explained properly, and enables a consistent sales process.

Ok, the banks and insurance companies like it because it improves sales conversion and improves compliance.  What I was interested in was the customer. Why do customers like it? What does Vizolution bring to the customer experience? This is what I learned:

  • By being able to see what the sales agent is talking about customers feel more engaged in the process;
  • The on screen visuals make it easier for the customer to understand the financial product being discussed; and
  • The process of signing-up for a financial product is so much easier and quicker – there is no waiting for the paperwork to arrive by post, reviewing and signing it, waiting for approval.

By now you might be wondering what is Vizolution and what does it do.  As I understand it, Vizolution:

  • Is patent pending software that allows businesses to engage their customers in sales conversations through an instant, easy, screen sharing session via the internet;
  • Is  simple and quick – with just one click the sales agent can initiate a Vizolution session and it is just as easy for the customer; and
  • bypasses the typical issues in installing screen sharing software locally and navigating around-through corporate firewalls.

My last question to Marcio was on costs: purchasing, installation, and use. What I can tell you is that the pricing showed up for me as being modest even cheap given the difference that this technology has made to sales conversion rates. At this point I could not help being a ‘strategic consultant’ and so I advised Marcio and his team to rethink the pricing!

If you want to learn more about Vizolution then I suggest that you contact Marcio. His email address is marcio.rodrigues@vizolution.co.uk

If you have used this software solution either as a manager, a sales agent or a customer then I’d love to hear from you. Please leave a comment.

Please note that I am taking a holiday over August and as such I do not expect to be writing any posts until September. I thank you for reading and hope you make August a great month for yourself and all the people you ‘touch’.

Disclosure: I am happy to write about Vizolution as it occurs to me that this is a simple useful technology. I am not being paid, in any way, for writing this post. Please note that I am not promoting Vizolution and with every technology I encourage you to do your research before you buy.

What Kind of Customer Experience Builds Genuine Loyalty?

What is the word that best describes or points out the fundamental context/orientation that underpins business as usual?  It occurs to me that the word is “taking”.  Taking as much as possible from the customers.  Taking as much as possible from employees. Taking as much as possible from suppliers, Taking as much as possible from the community. Taking as much as possible from the planet…..

From the context of taking you get personalised emails and direct mail that does not show up as personal. From this context of taking you get the incessant focus on replacing human customer service with self-service and the switch from skilled staff to unskilled and cheaper staff. From this context of taking you get the focus on upselling, x-selling, and increasing wallet share.

I have yet to find any meaningful and enduring relationships that are based on taking. Where the context of taking is present all that shows up is taking. And people coming up with ways of protecting themselves from being taken. This is not the case for giving.

Where actions flow from a context of giving then it is possible to arrive at symbiotic relationships. Symbiotic relationships are ones where each party brings something of value to the other such that both benefit. It occurs to me that the strongest relationships tend to be symbiotic. Symbiotic relationships start with one party giving – giving something of genuine value to the other party.

Why are so many companies struggling to generate meaningful-enduring relationships with their customers despite their investments in all kind of customer stuff? Why is it that a genuine shift towards a customer centred orientation is so difficult? I say it is difficult because all this effort and investment arises from a context of taking.  Whilst this may not be obvious to the people in the company it is obvious to customers – our bodies can tell the difference between those who care for us and those who do not.

Allow me to share an example two example with you. Examples that will illustrate the difference between taking and giving.  Let’s start by looking at the taking orientation.

This week I brought a training course. To make the sale happen the supplier offered a 10% discount amounting to £100 and threw in some extras. Given that it is summer and there is less demand for the course it makes perfect sense for the supplier. And it showed up as an attractive discount for me given that I was going to buy the course with or without the discount. Did this discount build any gratitude, any relationship, any loyalty? No. I am clear that the discount served the needs and interests of the supplier.

Are there any companies that excel at giving?  It occurs to me that giffgaff, a mobile network provider, is one such company. Earlier this month I got a email from giffgaff letting me know that the best tariff for me was the £7.50 tariff. By providing me this information giffgaff gave me the choice of switching from the £10 tariff. I didn’t switch tariffs. Nonetheless, I am delighted with giffgaff – I am delighted that giffgaff is practicing what it preaches, that the folks at giffgaff are living their values.

Let’s take a moment to look at my experience upon receiving the email. First, surprise. Second, delight. Third, gratitude. Fourth, satisfaction in having chosen giffgaff. Fifth, loyalty validated and cemented.  Sixth – advocacy as in writing this post.  Put differently, giving by giffgaff has called forth giving by me. I should point out that it is not just me.  My wife has been telling a similar story to her circle of friends and colleagues.

The lesson? I say genuine-meaningful-enduring relationships are built upon mutual giving. I say you cannot build such relationships from a context of taking – the context that underpins business as usual.  I say that as human beings we are always on the lookout for people and organisations that are trustworthy and on our side – looking after our best interest.

It occurs to me that if the people in companies pursuing customer experience, customer-centricity, even customer obsession, were to focus on giving and not clever ways of taking then they would have more success in fostering customers who are genuinely loyal.

What do you say?

“Ridiculous!”: Does Your Organisation Treat Customers This Way?

I have been helping one of my clients grapple with growth challenges. During the course of our conversations we got around to looking at the business from the standpoint of customers. As such, I asked for an analysis of the customer base by revenue and profit.The analysis shows that the top 10 customers accounted for the lion’s share of the company’s revenues and thus its health and viability.

On that basis I was expecting the management team to have in place a policy, plan, practices and people to take great care of these customers. I was expecting that there would be some kind of game plan: to keep in regular touch with these customers; to stay in tune with their changing needs; to  come up with new products and services to meet these needs; and to ensure that any issues were identified quickly and addressed.

What did I find? I found that these customers were signed up some years ago, these customers are getting the service they contracted for, they have made no complaints, and so there has been no communication with these customers other than the monthly invoice.

“Ridiculous!” That was the statement that the MD made when I asked him to reflect on the importance of these customers to the business and the way that his business has been treating these customers.

It occurs to me that so many people – at all levels of the organisation and across all functions – are so immersed in the doing that there is so little reflection upon what is being done, and not done, and the implications. Which makes me wonder, how much of what occurs, and does not occur, in an organisation would show up as “Ridiculous!” if viewed through the eyes of the customer?

So why is it that the management team of this client are oblivious to the importance of their existing customers? The simple answer is that they are fully immersed in:

1) the sexy stuff of ‘developing new products’;

2) the sexy stuff of getting new channel partners so as to acquire new customers faster and grow market share; and

3) dealing with all that it takes to make the organisation work – the people issues, the process issues, the information issues, the financial issues, and the systems issues.

Behind the obvious, is the not so obvious. Is it possible that there is no focus on existing customers because the MD is from a sales background and enjoys the thrill-chase of new customer acquisition? Is it possible that there is no focus on existing customers because the other directors take their lead from the MD?

Is the same kind of thing true in your organisation? How much of what you do, and do not do, would show up as “Ridiculous!” when looked at from a customer view, or a longer term perspective?

Back to my client. The good new is that the MD has taken steps to engage with at least one of his top 10 customers. And there is significant opportunity to create value for this customer by selling them new products and solutions that are more in tune with their current and future needs. Sounds like a win-win to me and as such it shows up for me as being the best kind of business.

Who and What is the Biggest Obstacle to Making the Transition to Becoming a “Customer Company”?

Are the Tops are the biggest obstacle to your organisation becoming a “Customer Company”?

Some of you have questioned my emphasis on the Tops and their critical importance to any successful shift towards your organisation becoming a “Customer Company”.  Some of you have asked me why it is that I have focussed on the Tops and not the Middles and the Bottoms.  The answer is twofold.

First, there is the fact that every system has certain points that have much higher leverage than others. Isn’t that  what we are looking for when we map the customer journey, assess the customer experience, and look for the “moments of truth” – the interactions that really matter and leave customers happy or unhappy, promoters or detractors?  Ask yourself who you would approach and seek to convince/persuade if you wanted to trigger major organisational change.  Would you approach the sales rep or the call-centre agent or would you approach one or more people in the C-suite?

Second, there is my 20+ years of experience at the coal-face of organisational change and business performance improvement in its many disguises.  Yes, the Middles and Bottoms have some capacity to resist/impede change initiated by the Tops. What is missed is that they rarely have the capacity to initiate major organisational change nor to bring it to an end abruptly.  This capacity, this power, lies with the Tops.

Never underestimate the Tops addiction to control and the fear of losing it!

Allow me to share a real life example with you.  This example is provided by Judith E. Glaser in her book Creating We. In this book she shares the story of  a weight loss company and its shift toward customer-centricity.  Here is an abridged version of her story:

Major change – or transformation – usually involves a huge shift in power that takes place across a company. In the 1990s, a weight-loss company was experiencing customer defection at a high rate….

Customers were defecting from their programs and, worse than that, they were telling other potential customers that the company was awful…… The company was getting a bad reputation for high cost/low value…..

The company leaders didn’t believe how serious the situation was. They felt that Weight Watchers and Jenny Craig were no match for their billion dollar powerhouse. But they were wrong and the feedback proved it.

……. we did extensive customer research, as well as franchise research among their 4,500 sales consultants, and discovered that the hard-sell style did indeed cause customers to rebel at some point and to spread the word that the company was insensitive, pushy and only out for money.

….. we engaged hundreds of internal consultants and totally revamped the sales approach, and, most of all, its relationship to its customer.  The company changed its value proposition ……. we created a sales-training process to teach everyone how to be sensitive to customers, to talk and partner with them……. the program was called “Partnership Selling”….

Customers loved the new approach, and sales consultants did, too. Interestingly, however, the new approach created great problems for the leadership team. 

The previous hard-sell approach…… enabled the company to track each sales consultant’s every move. Each was trained to memorize a sales script and not divert from it….. This highly structured, predictable, customer insensitive approach enabled them as a company to track what everyone did and said down to the last word, giving the company control of every customer interaction. They rewarded sales consultants for getting the pitch perfect…….

The new customer-focused process reduced the control of the corporate headquarters and increased control for the sales consultants to manage the “customer experience”.  Corporate went along with the new approach for a short while, maybe six months, then retracted the whole value proposition, for fear they were losing control.  Corporate were unable to ensure that everyone followed the same process. They therefore were unable to reward the best sales consultants for following the script…… Their focus was totally internal and control-based. 

…. during this time, the former president returned to run the company. He favoured the canned controlled interaction with customers and reinstated the old approach to selling. The hard sell returned and the customers left……

During the process, they were hell-bent on reinforcing their own way of doing business, dominating the customer and the sales organisation, and being in total control. After they went out of business, a few of the executives realised they had authored their own demise.

They executives were at the edge of new insights. They were taking the coaching and doing well. Then their insecurities kicked in, the fear of losing control returned, and they went back to square one.  They could not leave their Comfort Zone of doing things the way they’d always been done.  The only WE they could see was the familiar WE of their fellow senior executives, not the inclusive WE of the enterprise as a whole, and certainly not the WE of the customers.

When organisations are faced with change, fear often causes them freeze and hold on to the current way of doing things, even if its not working…..

Unhealthy cells stop taking nourishment from outside, stop taking feedback, and defend their position; and the president responded the same way. He stopped listening to the marketplace, to the customer, and defended his point of view; he was not open to feedback or to new ways of thinking. People had to please the boss, and they did.

 

WalkMe: a Great Way to Improve the User Experience and Harvest Business Benefits?

Issue: how do I do this online?

Travel is an essential part of my life as a management consultant and business advisor. Occasionally, whilst I am on my travels I get  a call from either my wife or children asking me for help on getting some task done on the web.  During these remote conversations I tend to be gripped by a sense of frustration and futility. Why? Because I get that the most effective way to help them, and not get another call, is to be by their sides guiding them through the job they want to get done online.

Solution: WalkMe?

This week I came across WalkMe and spoke with their Head of Marketing, Boaz Amidor. He tells me that the founder of WalkMe found himself in the same boat – his mother needed the help again and again – and this is what led him to create WalkeMe.

What is WalkMe™? It is an “interactive self-guidance technology that guides prospects, customers, employees or partners through any Web experience.”  As I understand it, WalkMe it sits on top of your website and as such does NOT need any integration or changes with the underlying site.

Why use it? If you use it intelligently – focussing on the scenarios/tasks that matter – then WalkMe reduces your customers’ frustration of waiting for assistance, shortens the time it takes for support personnel to handle an incoming request and strengthens your company’s support reputation. It also occurs to me that this technology can improve sales conversion as not all customers who want to buy from you call support when they cannot buy from you – some go elsewhere, I do!

How does it work?  “Through a series of interactive tip balloons overlaid on the screen, tasks are broken down into short, step-by-step guided instructions, which help customers act, react and progress during their online experience.  As a result, customer support managers can empower their customers to self-task successfully even through the most complex processes.”

You can get an introduction to WalkMe by taking a look at a short demo video: http://vimeo.com/48888010

And , you can learn more about WalkMe and even try it for free. Check out www.walkme.com

What can you expect from the WalkMe team?  Boaz Amidor told me that their customer support team is not called the customer support team, nor the customer services team.  It is called the Customer Success team. Why?  Because “The philosophy here is to make sure that our team is committed to the success of the customer. WalkMe brings the value and our team is here to ensure the success.”  I say that this resonates with my idea of service.

About WalkMe

WalkMe was founded in 2011, has offices in San Francisco and Tel Aviv.  It is funded by  Mangrove Capital Partners, Giza Venture Capital and Gemini Funds.

WalkMe recently WON the Red Herring Top 100 Award.  Alex Vieux, publisher and CEO of Red Herring, said the following regarding WalkMe’s win: “We looked at hundreds and hundreds of candidates from all across the continent, and after much thought and debate, narrowed the list down to the Top 100 Winners. Each year, the competition gets tougher but we believe WalkMe demonstrates the vision, drive and innovation that define a Red Herring winner.”

WalkMe has been included in the list of “Cool Vendors” in the “Cool Vendors” in the CRM Customer Service and Social 2013″ by Gartner.

You Should Know

I am not a fan of complex technology, I have grappled with it (MIS, ERP, CRM, e-commerce) and it tends to be hard work to implement, and it rarely generates the promised benefits.

I am a fan of simple technologies that are easy to implement, simplify-enrich lives, and create value.  This is how WalkMe showed up for me this week and this is why I agreed to write this post.

I am not being paid, in any shape or form, for writing this post.  Or any other post that I have written to date. My commitment is to write from a context of service.

As with everything I write, I urge you to “try things out AND do your homework”.

Are Your Sure You See The World Through Your Customer’s Eyes?

From CRM to CEM: is it as easy as it sounds?

With CRM’ organisations took an’ inside-out’ approach to doing business with customers, though I doubt they knew that is what they were doing when they were doing it.  When this didn’t work out as planned, some shifted to advocating  an ‘outside-in’ approach and called it Customer Experience Management.  I get that when it comes to writing or talking it is easy to shift from ‘inside-out’ to ‘outside-in’.  What is it like in practice?  What does it take to truly see the world through the eyes of our customers?

My experience is that really takes something to see the world through the eyes of another.  My experience is that it is a huge ask to experience the world as another experiences it.  My experience is that it is all to easy to be persuade oneself that one has shifted from an ‘inside-out’ view to an ‘outside-in’ view and yet be firmly stuck in an ‘inside-out’ view.

Aravind Eye Hospital: where ‘free’ costs 100 rupees!

What does it really take to see the world through the eyes of our customers?  Allow me to share this example which I came across in a wonderful book, which I throughly recommend reading, called Infinite Vision:

While giving away free services might appear to be easy, Aravind’s experience proved to the contrary. “In the early days, we didn’t know better,”……”We would go to the villages, screen patients, and tell those who needed surgery to come to the hospital for free treatment. Some showed up, but a lot of them did not. It was really puzzling to us. Why would someone turn down the chance to see again?” Fear, superstition, and cultural indifference can all be very real barriers to accessing medical care, but Aravind’s leaders were convinced that there was more to it than that. After a few more years and several ineffective pilots of door-to-door counseling, they arrived at the crux of the issue. “Enlightenment came when we talked to a blind beggar,”….. When pressed on why he had not shown up to have his sight restored, the man replied, “You told me to come to the hospital. To do that, I would have to pay bus fare then find money for food and medicines. Your ‘free’ surgery costs me 100 rupees.”

…….. The research found that transport and sustenance costs, along with lost wages for oneself and accompanying family member, were daunting consideration for the rural patient. Aravind learned a valuable lesson: just because people need something you are offering for free, it does not mean they will take you up on it.  You have to make it viable for them to access your service in the context of their realities.

Aravind Eye Hospital: it is not enough to see the world through customer eyes, you have to be moved to act

So that is the first step, genuinely seeing the world through the context of the lives of your customers.  And it is makes no difference at all unless your organisations acts on what it has learnt.  What did the folks at Aravind do?  Let’s  read some more from the book:

So Aravind retrofitted its outreach services to address the chief barriers. In addition to the free screening at the eye camps, patients were given a free ride to one of its base hospitals, where they received surgery, accommodation, food, postoperative medication, return transport, and a follow up visit in their village, all free of charge……

What difference did this make?  Once more from the book:

“Once we did that, of course, our expenses went up,”…… “But more importantly, our acceptance rate for surgery went up from roughly 5 percent to about 80 percent.” For an organisation aspiring to rid the world of needless blindness, this was tremendously significant….

Aravind: two things are critical

What do the folks at Aravind say about this experience of theirs? Let’s listen and learn:

“In hindsight, we found two things are critical,”…..”You have to focus on the nonuser, and you have to passionately own the problem. You can address the barriers only when you own, not shift, the problems.” Paradoxically, that mindset led to what is perhaps the most collaborative outreach system the world of eye care has ever seen.

And finally

How does your organisation measure up?  Do you really get how your organisation, your offer, shows up for your prospects?  Do you really get how your customers experience your organisation across the customer journey?  Is your leadership committed to doing what it takes to make it easy for prospects to buy from you? And for customers to keep doing business with you?  Is your organisation up for passionately owning the problem or is it designed to hide and/or shift the problems on to customers and others?