Book Review: The Endangered Customer by Richard. R. Shapiro

I enjoyed reading Richard Shapiro’s first book: The Welcomer’s Edge.  In this book Richard set out a 3 step model (the greet, the assist, the leave-behind) for making a human connection with customers through every customer interaction.

In his latest book – The Endangered Customer – Richard expands the 3 step model into eight steps in the customer’s journey from the initial encounter to making a repeat purchase. The book is relatively short (less than 150 pages), easy to read, and each of the eight chapters addresses one of the eight steps.

What Is The Endangered Customer About?  

It’s about retaining customers through superior service.  Superior service necessarily involves seeing customers as persons and striving to cultivate a human connection with them. Here’s how Richard puts it (bolding mine):

“Poor service followed by poor service – that’s how you endanger your customers into becoming someone else’s customers.”

Why bother going to the effort of generating good/great service?  After 28+ years spent working in the customer service industry, Richard makes the following assertion (bolding mine):

“.. companies of any size and in any consumer channel, can survive and thrive in the Switching Economy by making human connections that build sustainable customer relationships…..”

“As automated transactions become faster, easier, and more reliable, making human connection will become increasingly rare – and therefore increasingly more valuable. The greatest differentiator for any company will be how well it makes that human connection with its endangered customers.”

What Are the 8 Steps to Guarantee Repeat Business Through Human Connection?

In the Endangered Customer Richard sets out the 8 steps for cultivating human connection, delivering personalised service, and inviting-cultivating lasting relationships with customers.  These steps and associated nuggets of wisdom are:

1 – Make me feel welcome

“Human beings come to you with hope in their hearts. They need or want something they haven’t found elsewhere, and hope you have the answer…. Your job is to give them hope that they’ve come to a place where their problem or desire will be addressed in a helpful, friendly manner....”

“Offering hope beings with a welcoming smile.”

“The goal is not to create a relationship with every interaction. The goal is to invite a relationship…. This is why it’s important to faire the right people for customer-facing positions.”

2 – Give me your full attention

“Customers carve attention. They want and need to feel that you’re interested in them.”

“Fundamentally, giving your full attention requires an ability to acutely listen.”

“Joe Girard, the Guiness Book’s world record-holder for retail sales: “People may have had to wait for an appointment, but when I was with them, I was with them body and soul.

3 – Answer more than my question

“Questions are the customer’s way of inviting you to become a valuable guide in his or her journey. A sales associate accepts that invitation by taking the time to anticipate the “detours” and other obstacles that might lie ahead. That’s often the information that has the most profound effect on the customer. “

4 – Know your stuff

“There is no sales tool as powerful as knowledge. When we were shopping with Rochelle, we knew we were in good hands. Her expertise, coupled with a smile and an uplifting attitude, made all the difference.”

“… in a retail environment, I believe that the greatest cost of employee turnover is the one that is rarely quantified or even discussed: the diminished capacity in terms of customer relationships and institutional knowledge.”

5 – Don’t tell me no

“Never saying no is all about trying your best, because people will always come back to do business with a company that gives them the feeling that it is there for your.”

“…. many companies have standard practices that needlessly leave their customers feeling disappointed and uncared for.”

6 – Invite me to return

“The leave-behind represents any number of little things that associates can do and say to make customers want to visit again…. The point of every leave-behind is to make it easy for the customer to stay in touch.”

“When you are invited to return, it makes you feel wanted and accepted.”

“I can’t emphasise enough that feelings of loyalty naturally develop towards a person and not the business.”

“Relationships are cultivated on a person-to-person basis, not through impersonal automated “thank you” emails.”

7 – Show me I matter

“We are all innately suspicious of someone who seems to lose interest in us after money has changed hands. People just hate feeling seduced and abandoned. People like feeling important and special.”

“… demonstrating genuine concern and care after the conclusion of the interaction is something that many companies do not consider. When it does happen, it’s just an accident.”

“Take a good look at any company that is known for being “loved” …… You will discover that the company has instituted any number of consistent procedures and practices that assure customers of their importance….”

“Everything about the customer experience has to be genuine or it loses its punch.”

8 – Surprise me in good ways

“Customer satisfaction is a minimal standard; loyal customer relationships are built around surprise and delight. Customers crave human interactions that leave them with the experience of feeling special, and nothing conveys specialness better than surprise. “

 

The Heart of Customer Loyalty: Paying It Forward?

Richard has some interesting things to say when it comes to the implementation of the 8 steps, and the cultivating of long term relationships with customers.  Lets listen to his speaking:

“Of the eight steps…. the final three are perhaps the most difficult ones to implement because acknowledgement, appreciation, and delight have noting to so with closing sales and raising short-term revenues….”

Pay it forward is really the ultimate expression of customer service, because it’s a practice that puts people before profits….. A pay it forward culture …. will naturally reap dividends in terms of customer loyalty and repeat patronage because customers will naturally keep returning to anyone capable of giving them this feeling. And they in turn will tell their friends about you ….. as a way of paying it forward.”

Concluding Remarks

I enjoyed reading The Endangered Customer. I am clear that Richard Shapiro knows his subject matter – building enduring bonds with customers by cultivating the human connection between the customer-facing employees and the customers. I am also clear that Richard provides valuable advice if you have the listening for this advice.

My concern is that the very people who are in the position to effect change in organisations – especially big corporations – do not have the listening for that which Richard Shapiro speaks. The human connection seems antiquated in the age of worship at the altars of process and technology.

Please note that this review is necessarily biassed. To be human is to be biased – always and forever.  In my case, my bias is that I consider myself to be a friend of Richard R. Shapiro even though we have never met / nor talked.  Finally, I offer my thanks to Richard for sending me signed copy to read.

I thank you for listening and I wish you the very best. As the French say: until the next time….

 

 

CX and the Art of Getting & Keeping Customers

The Story: How I Ended Up Moving On From My Favourite Cafe

I walked in to my favourite cafe and greeted the fellow behind the counter by his first name. He was so happy to see me that he smiled a huge smile, welcomed me, and came around the counter to shake hands with me.  Delight – what a welcome!

Then I ordered my usual: fresh orange juice, hot chocolate, a croissant, and a pain au chocolate.  My ‘friend’ behind the counter pointed at his orange juice making machine: no oranges, no fresh orange juice – his supplier hadn’t delivered the oranges on that day.  I find myself disappointed – really disappointed.  That is when something important is unconcealed to me: of the breakfast what really matters is the fresh orange juice.

I eat my breakfast noticing all the time the absence of the fresh orange juice.  I pick up my bag, put on my overcoat, say goodbye and leave for work: the client’s offices.

It’s mid-morning and I’m thirsty. I head down to the ground floor where the cafes and restaurants are.  I notice a small place that I had not noticed before.  Why do I notice it? It seems to be like a fresh juice bar! I head over there and sure enough there are various freshly squeezed juices including orange, orange and banana, orange and mango…. A little later I find myself drinking the orange and banana juice. Delicious!

The next day I find myself at this juice bar for breakfast. I help myself to the fresh juice, a croissant, a pain au chocolat, and pay. Whilst paying I strike up a conversation with the lady serving me. Then I take a seat and enjoy my breakfast.

I do the same the next day, and the next day, and the next day.  I find that despite my intentions to go back to my favourite cafe I do not go back. Yes, I think fondly of the fellow who works there. I wonder how he is doing and I wish him the very best. I even think of popping in after work… Yet, I find that I never go back there for breakfast.  I stick with the fresh juice bar.  Why?

It is convenient – on the ground floor of the client’s offices. It always has the products I am looking for. By being a regular customer and willing to initiate conversation I have gotten to know Anne – and she has gotten to know me. The place is clean and there is always plenty of room to stand or sit down and have my breakfast in peace.

What Might This Unconceal About Winning & Keeping Customers?

1 – What happened happened yet I did not intend it to happen. Neither did the fellow working at my favourite cafe. Indeed, if you had told me that things would have worked out this way  I would have argued against it. I would have found many reasons to back up my position. Which makes me wonder how much you/i can trust what customers/prospects say in surveys.

2 – Great customer service was not enough to keep me as a customer.  I am clear that every time I turned up at my favourite cafe I received great customer service. In part this was because I had established a personal connection with the chap behind the counter who served me.

3 – Great personal relationship with the customer facing front line employee was not enough.  Yes, the fellow behind the counter was, to use Richard Shapiro’s language, a Welcomer.  Yes, the fellow behind the counter and I had cultivated a personal relationship with one another such that both of us were genuinely pleased to see one another.  Yes, it was great to be greeted by my first name, with a smile, and asked about what I had been up to since the last visit.  No, this level of relatedness did not turn out to be enough to keep me as a customer.

4 – As a customer I did not realise what really mattered in my ‘eating breakfast’ experience until what really mattered was not present.  In my case what really mattered was freshly squeezed orange juice – the experience (taste, pleasure) associated with drinking this particular product.

5 – The customer’s experience is holistic and it necessarily involves the ‘product’. Put differently, the customer’s experience is more than how you treat the customer when s/he is ‘dancing’ with your organisation.  It is more than having a Welcomer welcoming.  It necessarily involves the ‘product’ that the customer came in search of.

Further Reflections on The Customer’s Experience and Customer Loyalty

Based on my experience of being a customer, it occurs to me that the customer’s experience can be broken down down into the following components:

A.  Desired Outcome: Did I ‘get’ the outcome I was after?  The answer to this question is binary: yes or no.  There is no in between.  Think pregnancy – you are pregnant or you are not pregnant, you cannot be somewhat pregnant.

B.  Treatment: Was I treated the way I desire/expect to be treated whilst in the pursuit of my desired outcome?  The answer to this question is not binary when treatment is taken as a whole across my ‘customer journey’.  There may be elements of the journey where I was treated well. Other elements where I was not treated well.

C.  Effort-Time: How much effort-time did it take for me in working with you/your organisation to generate my desired outcome? I am clear that if you are the supplier that is the least effort-time consuming one to deal with then you have an advantage when it comes to winning my business and keeping me as a customer.

When I look at my transition from using my favourite cafe to using the on-site juice bar I notice that the juice bar won because:

  • It generated my desired outcome – every time without fail;
  • I was not treated as well as I was treated at my favourite cafe bar yet I was treated well enough. And I was able to cause improvements in my treatment by cultivating a more human / intimate relationship with Anne who usually staffed the juice bar; and
  • Doing business with the juice bar saved me time-effort because it was on my path-route to work. Whereas my favourite cafe was a 5-10 minute detour.  So it ended occurring up as convenient.

I thank you for your listening and wish you the very best in your living.  Until the next time….

Sales Effectiveness: What Does It Take To Make A Sale?

Does sales effectiveness require process – following a particular process in a particular manner?  Perhaps. Does sales effectiveness necessitate using the right technology/tools – say like a CRM system? Perhaps.  Does sales effectiveness require  a deep insight into the customer’s industry / business?  Perhaps. Does sales effectiveness require great negotiating skills. Perhaps.

Last week I presented a sales proposal. It was well received and we were awarded the work.  Several members of the client team mentioned that the proposal was spot on – exactly what they were looking for. A member of the proposal team stated that we had been successful because I had rapidly built a rapport with the client team – by honing in on their core need and talking to that. Another member of our (sales) team attributed success to the “highly contextualised presentation deck”.

To whom and to what do I attribute the success of this sales proposal?  First, let me say that I do not attribute it to killer insight to the client’s industry. I had little understanding or insight into that industry – a highly specialised industry.  Second, I neither followed a sales process nor used a CRM system.  Third, I did not put the solution together – others much more technical than me did that work. Lastly, the occasion to use negotiating skills never arose.  If there is a clue it lies in the comment “highly contextualised presentation deck”.

What I did do was a number of things. I recommended that the first cut presentation (put together by the technical folks) be presented to a key member of the client team. On that call, whilst the technical folks, presented that deck, I listened intently to the client. Where anything was fuzzy (to me, to the client) I asked clarifying questions. Following the presentation I talked extensively with the technical folks to understand the solution, implementation plan, assumptions they had put together.  This was not a comfortable discussion – I asked question after question to get from the abstract to the concrete.  Finally, I did desk based research.  After all this work, I cut down the presentation deck from 20+ slides to less than 10; I did my very best to make sure each slide spoke  to the client – relevant to the client’s problem/desired outcome, and written in language that the ordinary business person can easily understand.

Does that mean that I attribute success in ‘closing’ this opportunity to myself? Before I answer that question allow me to share some relevant information with you.  I/we (sales team) turned up on time but at what turned out to be the ‘wrong’ building. Sorting this matter out took something like 30 minutes. In the meantime the technical team via conference call had been asked to deliver the sales proposal. Having no choice they commenced delivery using the original presentation deck – ignoring the one that I had put together. By the time I/we (sales team) turned up the client team (about ten people) looked baffled and somewhat annoyed.  Then we (sales team) apologised and I delivered the sales proposal.

I attribute our success in being awarded the work to the client.  The client gave us (the sales team) a second chance: to wipe the slate clean and represent the sales proposal.  The client has a pressing need with a fixed deadline.  The client was looking to and in fact had to buy from someone – someone competent. The client considered us to be competent based on prior experience.  Put differently, the client was fertile soil for our sales proposal.

Summing up, I say that sales effectiveness comes ultimately comes down to a client that is sold on you (reputation, personal chemistry, word of mouth recommendation), has the necessary authority to influence/make a purchase, and most importantly has an urgent need to get started today to put in place something for the not to distant future. Now ask yourself how much of this is under the influence of the sales guy. Or how a sales process, a CRM system, or negotiating skills are going to make much of an impact on these dimensions.

I thank you for your listening. I wish you the very best and look forward to the next conversation.

 

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How Do Insurance Companies Treat Loyal Customers?

Who Benefits From Customer Loyalty?

Back in December 2015 Annette Franz in her post titled So, What Exactly is Customer Loyalty? made the following statement:

I had a situation recently that caused me to call on a provider to whom I’ve paid thousands and thousands of dollars by way of monthly premiums for the last 20+ years. I’ve never filed a claim, but I did six weeks ago. It’s not been a good customer experience since that day.

Annette went on to question the concept of Customer Loyalty.  Does it refer to the customer being loyal to the organisation? Or to the company being loyal to the customer?

This was my response to her question:

Hello Annette, I have been and continue to be clear that customer loyalty is a marketing concept. As such it is consists of a bunch of tools and techniques for getting the customer to stick with the organisation as long as the customer is generating handsome revenues and profits for the organisation. It is certainly not the organisation being loyal to the customer. Put differently, customer loyalty is a company centric concept.

I assert that as a customer you either have to be naive or stupid to think the organisation is loyal to you. Take insurance, if you are loyal customer you will be worse off. How so? When it comes to renewal time you will pay higher premiums. Why? You will accept the renewal premium without shopping around.

What Is The Cost of Customer Loyalty When It Comes To Insurance?

Want an example of how insurance companies penalise loyal customers?  Thanks to the Guardian newspaper, I have an example for you.  Allow me to share some passages from How Halifax penalises its insurance customers for their loyalty (bolding mine):

How much should the buildings insurance be on a £250,000 terrace house in Redcar, north-east England? It probably wouldn’t be difficult to find quotes for less than £200.

Mrs Laurie (I’ve changed her name) had always been good with managing her money. She dutifully paid the home insurance premiums demanded by Halifax every year, even though it kept going up. But when it hit £450 she could no longer afford to pay it.

What was Halifax’s response? Did it review the premium and reduce it to reflect the prices that other people were paying in the market? Oh no. What Halifax appears to have done is reopen her former mortgage account with the bank, then charge the insurance premiums to that account. Halifax then continued jacking up the price every year, to a vastly inflated £800 at the time of her death – a figure her son says is around six times the going rate. The final insult was that Halifax charged interest on the unpaid premiums, making ever more profit out of its elderly, loyal and vulnerable customer.

When Does It Make Sense To Stick With Your Insurance Company?

If you are a customer then here is my advice: never ever take the renewal quote offered to you by your insurance company. Why? Because from an insurance company perspective the most logical course of action is to offer you an inflated premium. Why? To take financial advantage of those folks who are either ignorant (of how companies work) or lazy (cannot be bothered to shop around).  When you have millions of customers, even a mere 20% of customers renewing automatically can generate £millions in extra revenues and profits.

Having said the above, I wish to point out that the insurance premium should not be the only factor that you consider. Why?  Because one takes out insurance just in case one needs to make a claim.  Which implies that you should, at a minimum, consider other factors including:

  1. Coverage – what is and is not covered?
  2. Time and Effort  involved in making a claim;
  3. Claims track record – how good is the insurer at dealing with and paying out on legitimate claims?

For example, for the last two years running I chose to stick with my home insurer even though I get a cheaper premium from other insurers. Why? Because for the first time (2 years ago) in 20+years I had to make a claim. The process of making the claim showed up as effortless. The claim was dealt with quickly by the insurer and in full. And, when I was dealing with the loss adjuster he told me that my insurer is among the best insurers when it comes to paying out legitimate claims.

If you are regular subscriber to this blog then I thank you. And take this opportunity to wish you the very best for this year.

Experience Engineering: How Do You Engineer Authentic Humanity Into The Customer Experience?

I have been working in Cheltenham for a few weeks now. I like, really like, the folks (at the client) that I find myself working with. It has something to do with their kind of accueil- a word that my French family often use.

Let’s just consider accueil. How is it translated?  It is translated as: welcome, reception, acceptance, hospitality. It is also used to refer to the home page of a website.

Many years ago I chose not to specialise – going against the dominant trend and advice. I chose to do what comes naturally to me: be a generalist. Today, that means I get involved primarily in some combination of digital transformation, customer experience, CRM, marketing automation, change leadership, programme management. And I get involved in one of many levels – from helping devise strategy through to drawing out the systems architecture.

Why did I share that with you? To set the context. Why?  Because the more I see of what organisations are doing under the CX umbrella and the way they are going about it, the more I find myself falling out with the whole CX thing. I also find myself disagreeing with many CX gurus – many of whom are self-appointed. It is not a domain where one can criticise and remain in the CX club – as I have learnt. That is ok by me.  I can criticise CX because I do not depend on it to make my living, build a reputation, or safeguard one.

Call it Customer Experience design, call it Service Design, call it Experience Engineering. Whatever you call it, here is my question: How do you engineer accueil – authentic, spontaneous, warm accueil?  How do the BPR/six-sigma folks (I always find plenty of them working under CX umbrella) engineer/standardise processes for generating authentic warm accueil?  Or let’s turn to the business change or HR folks, how do they train the frontline staff (who are often on minimum wage, or some of the lowest wages in the organisation, in the economy) to generate authentic warm accueil?  Let’s not leave out metrics – according to conventional dogma only what gets measured gets done. What metrics does one use to assess if authentic warm accueil is experienced by the experiencer: the customer, the guest, the employee, the partner, the supplier?

In my first week in Cheltenham, I found myself staying in the Holiday Inn Express.  I checked in late on a Sunday. Lady on check-in was polite, helpful (gave me ‘map’ of Cheltenham centre), and quick. The lifts were plentiful, clean, quick. Room was easy to find through the signposting. The room was clean and spacious. And as promised it was on the quiet side. The breakfast was in line with expectations for that kind of hotel.  The right folks ‘faked’ the right kind of smiles. And behaved in the appropriate scripted manner. In short, all was in line with a well run hotel in that class of hotel.

If I had to put it into words, I’d say that the experience engineers (through design or accident) had engineered a professional competent experience.  Did this experience evoke any kind of emotional bond to this hotel, or anyone in the hotel? No. Why?  The whole experience felt corporate – efficient yet inhuman.

One evening I returned to the hotel after a busy (full) day of consulting work.  I found myself keen to get changed and go walkabout around Cheltenham: walk, look around, check out potential dining choices, pick a restaurant. Problem: it was raining heavily and I had no umbrella. Further, the situation did not afford the purchase of an umbrella as it was about 7:30 in the evening.

Remembering that some hotels (of the expensive kind) stock umbrellas for use by guests, I approached the lady staffing the reception desk. “You don’t happen to have an umbrella I can borrow do you?”  Her polite answer? “Sorry, we don’t have any umbrellas.” Hope dashed. Mild disappointed – mild because I did not expect this kind of hotel to offer customers umbrellas.  Then the most amazing-delightful thing happened.

One of the employees working at the bar (which happened to be adjacent to the Reception desk) said “I have an umbrella, you are welcome to borrow it. Mind you, it’s girly. Are you ok with that?”  Then she went into a back room and handed me her own (private) girly umbrella. Surprise. Delight. Gratitude. I accepted her gift, thanked her, and promised to return her umbrella to her by the end of the evening.

Here’s the thing, I was so deeply touched (and continue to be touched) by this young lady’s humanity (kindness, generosity) and her placing her trust in me (without me having earned it first) that some deeply human dimension of me wanted to both to hug her. And to cry. Why cry? Cry of joy. Joy of what?  Joy that fellow feeling – genuine human compassion – is still alive in some people.  She did not know me. She did not owe me anything. She had no script to follow. In fact, if there was a script to follow I suspect it would advise employees not to lend their or the hotels private property to guests (customers).

It is the accueil – the acceptance, the welcome, the warmth, the hospitality of this young lady’s humanity in action that I remember and carry with me. I am moved by how she showed up. Her way of being makes me feel good about being a member of the human race. Gives me hope for the human race despite the savage/violent aspects of human existence.

Which brings me back to experience engineering and the question I posed: How do you build authentic humanity into the customer experience?  What I can tell you is this: you cannot do it by the means that most folks are using to design/engineer customer experiences: putting lots of channels in play, collecting lots of data (small and big) and using this to do ‘personalise content’ to do targeted marketing/selling, engaging a bunch of BPR/Six Sigma to redesign processes, handing out vision/value cards to employees, sending employees on training courses, using VoC measures (NPS) to reward/punish employees…..

If the quality of the accueil matters (and I say it matters a lot in service environments) then you have to deliberately attract and welcome folks who embody warm accueil in their way of being. And then you have to continually cultivate an environment/climate where 1) those in management roles generate that kind of acceuil for the folks working in the organisation; and 2) folks working in the organisation can agree or disagree with one another – passionately against a background of warm accueil for their fellow colleagues despite challenging their ideas, proposals, and behaviours.

Do this and you dispose your organisation to spontaneously and appropriately generate the kind of humanity/accueil that build genuine affinity with your organisation / brand.  And yes, the right tools, and behind the scenes processes can make it easier for your folks to deliver outstanding accueil.

Notice, the technology (tools) and process – are there in the background to serve your people.  Your people become real-time, flexible, experience engineers – treating different customers differently and even the same customer differently depending on the context.

Enough for today, I thank you for your listening.  Until the next time, I wish you the very best – may you receive and grant the kind of accueil that makes you proud to be a member of the human race.

 

 

 

 

 

 

 

 

Customer Experience: The Road Less Travelled

It has been a while since the last conversation. First, I took time out for a month of holidays. And then in September I was asked to lend a hand in a CX centred next generation CRM and omnichannel programme.  Given the demands on my time I will be keeping this conversations short – at least shorter.

Let’s start.  It occurs to me that just about every organisation is talking about the importance of the customer experience. Many may even be doing something under the label of Customer Experience.  Few are going about it in a way that tilts the scales towards success.  What, in my opinion, tilts the scales towards success?  This is what has been unconcealed to me to date:

  1. CEO totally committed in his very being to competing on the basis of insanely great customer experiences with the organisations products, people, interaction channels, the brand, and the organisation as a whole;
  2. An organisation which is impeccably organised (people, policies, practices, processes, partners, interaction channels, technology) around the principle of ‘producing’ insanely great customer experiences;
  3. Managers who tackle anything and everything that gets in the way of the people in the organisation ‘producing’ insanely great customer experiences;
  4. An organisational climate where breakdowns and honest communication are welcomed as an opening for learning that feeds the thinking, design and ‘production’ of insanely great customer experiences.
  5. Genuine competition (and/or effective regulation) that generates motivation within the organisation’s leadership and management teams to compete for the customers business and loyalty.

It occurs to me that this is the road less travelled. Why?  It is a very demanding road. It is not a road for sprinters – those seeking a return in a year or so. It is road only for ‘marathon runners’ who put in impeccable effort consistently, make substantial sacrifices, and who tolerate (even welcome) pain beyond what they are comfortable with.

Thanks for your listening. I wish you the very best. As the French say until the next time….

Does Customer Experience Leadership Require Straight Communication And Fair Business Practices?

Are UK Supermarkets Conning Customers?

According to the press, the consumer watchdog Which? has been investigating the UK’s dominant supermarket chains for the last seven years. Based on the ‘findings’  Which? put forth a super-complaint against the supermarkets. A super-compliant is not something that is done lightly. So what is the basis of this super-complaint?

Despite Which? repeatedly exposing misleading and confusing pricing tactics, and calling for voluntary change by the retailers, these dodgy offers remain on numerous supermarket shelves.”

– Richard Lloyd, Which?

How Are The UK’s Supermarkets Conning Customers?

As I understand it, Which? is asserting (based on the evidence it has collected) that the UK’s dominant supermarkets are misleading customers through dishonest communication. Through which mechanisms is this dishonest communication occurring? Through “dodgy multi-buys, shrinking products and baffling sales offers”: the supermarkets are communicating / promoting illusory savings and fooling shoppers into choosing products they might not have bought if they knew the full facts.

What is the purpose of this dishonest-misleading communication and customer facing practices?  As I understand the purpose is to keep existing customers and protect margins by conveying the illusion of a good deal – as opposed to providing a genuinely good deal.  Does Which? have any examples?  According to the Guardian:

Seasonal offers: higher prices only applied out of season, when consumers are less likely to buy the item. It found a Nestle Kit Kat Chunky Collection Giant Egg was advertised at £7.49 for 10 days in January this year at Ocado, then sold on offer at £5 for 51 days.

Was/now pricing: the use of a higher “was” price when the item has been available for longer at the lower price. Acacia honey and ginger hot cross buns at Waitrose were advertised at £1.50 for just 12 days this year before going on offer at “£1.12 was £1.50” for 26 days.

Multi-buys: prices are increased on multi-buy deals so that the saving is less than claimed. Asda increased the price of a Chicago Town Four Cheese Pizza two-pack from £1.50 to £2 last year and then offered a multi-buy deal at two for £3. A single pack went back to £1.50 when the “offer” ended.

Larger pack, better value: the price of individual items in the bigger pack are actually higher. Tesco sold four cans of Green Giant sweetcorn for £2 last year, but six cans were proportionately more expensive in its “special value” pack, priced at £3.56.

Are these crafty (the marketing folks will be saluting themselves for their ingenuity) yet dishonest business practices of any significance?  Given that some 40% of supermarket sales are driven by sales promotions of this kind, it occurs to me that the answer is likely to be yes.  Further, these are the practices that these chains are using to stave off the genuine price-value completion introduced in the supermarket sector by the likes of Aldi, and Lidl.

What Are The Customer Experience Implications?

At one level, it occurs to me that the key customer experience is rather simple: it is relatively easy to fool customers and keep fooling them over years through misleading communication, misleading pricing, and dishonest business practices.  As I look into this, I find myself concluding that most customers, most of the time, are trusting of the folks they do business with.  Why? Because in the absence of this trust, human lives become practically unlivable. The cost of being constantly vigilant is too high – those who can afford not to pay this cost choose not to pay it. These creates the space for businesses (supermarkets, utilities, banks…) to do that which they do do: take advantage of customers to extract ‘bad profits’.

What Is The Cost Of Addiction To These Dishonest Business Practices as Opposed To Focusing On Creating Genuine-Superior Value For Customers?

It occurs to me that the cost is paid over the longer term. Whilst the folks in your organisation are busy congratulating themselves on their ability to dupe your customers, or provide the bare minimum to keep customers,  there is someone out there busy doing the work of coming up with compelling value propositions. Think back to the american automotive industry and the rise/dominance of the Japanese automakers.  Think about Amazon and what it has done to retail.  Think about Apple and the impact it has made.  Think about First Direct ….. I say that the use of misleading communication and dishonest business practices is a form of subsidy to the least competitive players in an industry. From whom is the subsidy extracted? Customers.

Does an Organisation Get To Be And Keep Being A Customer Experience Leader Through Misleading Communication And Dishonest Business Practices?

Is USAA a CX leader because the folks in the business genuinely show up to do the best for their customers or because they have found slick ways of conning customers?  Is Apple a CX leader because the folks in the business create great products that resonate with customers or because it has found a slick way of conning customers – perhaps through advertising and the outward veneer of its products?

I am clear that sustainable CX leadership requires straight communication and fair business practices in the context of going full out to simplify-enrich the lives of the folks impacted by the business: employees, customers, suppliers / partners….

You are welcome to disagree. If you find yourself in disagreement then I invite you to share your perspective by commenting.  I am opening to learning that which I am not present to.