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….

“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.

The value of transparency or why I am no longer mad at BSkyB

Ok, you have just got a new customers and you want to keep that customer happy: you want to keep her and thus build an annuity stream from her.  Looking at the situation from a service centred (and I would argue normal human perspective) you have three strategies available to you:

  • Do your best to make sure that there is agreement on expectations and that you don’t create problems for your customer;
  • Make it easy for the customer to get hold of you by prominently displaying your customer services number;
  • If and when the customer contacts you then deal with her problem or complaint there and then with empathy.

Where is the leverage in this?  Surely the leverage is in the first of the three strategies: doing your best to ensure you and the customer have the same expectations and that you do not create problems for your customer.

So why is it that so many companies do such a poor job of this?  Let me give you just three examples:

  • I know of one brand name etailer that knows that their shopping process causing big problems for them and their customers and yet continues to do nothing.  When you place an order the website forces you to enter your credit card details leading you to think everything is done, settled.  Yet, this credit card data is only processed later when the ordered items are despatched.  As a result some customer payments do not go through because the card is no longer valid or because the details supplied by the customer were incorrect.  Of course this comes as an unpleasant shock to the customer who was left thinking that their credit card had been accepted  – when she had placed the order.
  • Mobile phone companies continue to sell mobile phones that they know have faults.  They know because they keep a track of which phones are failing and sent back by their customers.  They even know what the main defects are on these phones.  Yet they continue to sell them to new customers knowing that it will lead to trouble down the road!
  • When I joined BSkyB and took out a bundled (pay TV, broadband, fixed telephone line) package with BSkyB to simplify my life I found that it did nothing of the kind.  Whilst BSkyB did a great job of setting up Sky TV I had a horrid time getting the broadband set up.  And when I wanted to get the issue fixed or later cancel the order I found myself bouncing between different customers service teams and different customer services numbers.  In the end I was not able to cancel my order because I found out that I had actually been signed up for three different orders – each with different start dates, different end dates and different conditions!

What if these companies practiced transparency?  What might be the results?

Lets take a look at my BSkyB experience – particularly why it was that I was so mad with BSkyB and am not anymore.  What has made the difference?  Well as a result of research I now know what I did not know before.  Specifically, I have found out that:

  • BSkyB has made up of product divisions, TV belongs in one division, Broadband in another and so forth;
  • The contact centres for Sky TV are outsourced to one company, the contact centres for broadband are outsourced to another company and so forth

From this information I can now make sense of my baffling experience.  No wonder that I had to contact one set of people to get the TV services installed and another set of people to get the broadband set-up.  No wonder the SkyTV contact centres did not have a clue about the order I had placed nor about my broadband issues.  No wonder that the Broadband folks had no idea of my total order and were not able to deal with anything other than broadband stuff. 

Being a human I can empathise with the human beings who were on the end of the phone – in some of the most infuriating interactions I recognise that I was talking to the wrong people because I had a faulty map of the territory!

But why did BSkyB not make this clear to me?  Why did they give me the impression on their website that I could simplify my life by buying the bundle of products from them?  Why did they give me the impression that they would take care of it all and I would have a single point of contact?

If they had told me then it is possible that I might not have signed up and become a customer.  It is also possible that I would have signed up and very clear on what to expect and as such would not have experienced a horrid time dealing with BSkyB.

Yet I cannot help thinking that in a structure where customer acquisition is separated from customer retention, this kind of behaviour is simply what occurs.  So the access to transformation in behaviour is to change the structure: to integrate getting customers and keeping customers under the same person, the budget, the same department.