CX: Using Intelligent Generosity To Cultivate Customer Delight

Certain businesses deal with products that perish or become useless if not used by a certain date/time.  This is often seen as a problem – a problem of generating demand to drive sales, and a problem of inventory management. I have yet to see this viewed, by Tops, as an opportunity to delight customers, and cultivate gratitude / loyalty between the customer and the business.

What am I talking about? Allow me to illustrate using a recent experience.

Recently, I booked a double room at the local Hilton (St. Annes Manor) hotel via Hotels.com.  I made a mistake – I booked it in my name, and for only one adult. So when time came for my wife and daughter to go to the hotel I rang the hotel. The voice on the other hand was professional and warm. The young lady didn’t just change the booking. Once she learnt that the room was for two adults, she took charge, and without me asking, found a room with two beds. I found myself pleased and grateful.  Later that evening my wife sent me a photo of the room – it was a room with two double beds.  Delight – my wife was delighted, my daughter was delighted, and I was delighted.  Along with this kind of room came four towels – ideal for those of us who needed access to that room merely to shower – until the major renovation work is finished in our home.

Think about it. What did the hotel lose by giving us that bigger (deluxe) room?  Nothing!  It was late in the day, the room was free, and if it had not been used it would have created no value for anyone.  Through intelligent generosity the lady on the front desk did create value: for us (the customers) and also for that hotel. How so for the hotel? I am writing about the hotel right now am I not?  Also, it was the first time any member of the family stayed there – those that got to experience it (wife and daughter) love it and have been talking about it – recommending it to others: the room, the peaceful / beautiful location, the spa…..  I also suspect that sooner or later my wife will check us in there for a quiet weekend away from the children.

It occurs to me that every business that deals with ‘perishable’ inventory has an opportunity to exercise intelligent generosity:

If you are an airline then you can offer seats (that your analytical models show will go unfilled) to some of your customers for free – as a thank you;

If you are a hotel you can do as our local Hilton did and/or offer some / all of the rooms likely to go unfilled to some of your customers for free – as a thank you or as taster;

If you are a supermarket, you have an opportunity to give food that is reaching its sell by date to certain customers (you choose which ones) or to local community organisation / charity that supports those in need…..

I know that some organisations do something this  e.g. airlines which offer free upgrades to certain customers.  I know that some hotels do this also. What I am talking about here is this and more than this – in some instances giving perishable product away to customers for free – free flight, free hotel stay, free train ticket, free concert ticket……

The question I am posing is this one: what opportunities does your business have to exercise intelligent generosity – the kind of generosity that causes customer surprise / delight / gratitude, holds the promise of increased revenue and/or brand reputation over the longer term, yet costs you little or nothing today?

Before you dismiss the question that I have posed, I ask you to consider that if ‘perishable’ inventory is not used by its sell-by date then it is waste. Is waste a better outcome / way of showing up and traveling in life than intelligent generosity?  All I can say is that the field of intelligent generosity appears large and largely unoccupied.

I thank you for your listening, until the next time…

Calling Forth The Best From Folks Working For You

 

“I like coming here!”  was confessed with a smile. The speaker?  A highly skilled professional who is undertaking a major refurbishment project for me in my home.

 

It hit me that this is the fundamental ask. Every professional including those who deal directly with customer and shape the customer experience is looking to feel-think “I like coming here!”

I say that this is the most fundamental ask because only those folks who as they show up for work AND find themselves confessing to themselves “I like coming here!” are likely to give of their best. It is necessary to feel good – about oneself, about one’s colleagues, about one’s manager/leader, about one’s work – if one is going to find oneself doing great work.

How is it that we arrived at this stage: “I like coming here!”? I can tell you that I did not turn to HR specialists. Nor did I make use of the kitbag of tools/tricks called employee engagement.  I didn’t even set up a reward and punishment framework – commonly labelled performance management.  So how did this come about?

Here’s my contribution:

  1. Made sure that my drive was free so that John (the skilled professional) could park is van without any hassle;
  2. Welcomed John each day when I found myself at home;
  3. Asked my wife to do that which I would do if I were home;
  4. Gave John a key to get in the house when nobody was at home;
  5. Asked John and his assistant what they wished to drink – each day, every few hours;
  6. Made John a tea (his favourite drink) and poured the assistant his favourite drink – an orange juice – at least four times a day;
  7. Occasionally, took up slices of cake and some biscuits – without being asked;
  8. Offered to make John and his assistant a sandwich lunch – which they declined;
  9. Regularly checked in with them to see how they were doing and if they needed anything from me;
  10. Actively looked for the opportunity to strike up a human conversation and create a human relationship with John and his assistant;
  11. Listened to John’s point of view when tricky matters came up, discussed the matters, and jointly came up with an appropriate solution that worked for both of us; and
  12. Jumped into my car to go to the store and buy urgently needed supplies that John had forgotten to buy; and
  13. I did not make John wrong (including in my speaking of him to myself) for forgetting / not doing that which he was supposed to do.

In short, I sought to transcend the conventional role based performance (customer – supplier, employer – employee, manager – subordinate) that folks so easily fall into.  Instead, I focussed on cultivating a genuinely human to human relationship: a relationship of equality of dignity whilst recognising inequality of expertise and power.

Whilst all of the above has been necessary in calling forth great work from John it is not sufficient. It is a new age myth and fashionable nonsense that folks will do right by you if you treat them right. Some folks will simply walk over you if you take this approach with them – they will see your generosity / friendliness as a weakness that they can exploit.

Perhaps, the most important thing that I did is to take my time in selecting the right person. I asked around to find a true professional. Then I met the professional and experienced how he worked. Finally, I waited – I waited six weeks for him to come free despite the fact that the work needed to be done urgently.

Summing up, I say:

If as a manager you are not receiving great work from the folks that work for you then you either recruited the wrong folks and/or you are not treating them right – as fellow human beings worthy of equality of dignity.

If as a customer you are unhappy with the performance of your supplier then I say the same to you: you didn’t select/recruit the right supplier and/or you are not treating this supplier right.

Transcend the default roles (customer – supplier, employer – employee, manager – subordinate) and plays. Instead strike up a genuine human to human relationship – its the key to calling forth the best, including loyalty, for human beings no matter which role they are playing.

 

 

 

 

 

What’s The Impact of a Shitty Employee Experience on the Customer Experience?

Can you deliver a good-to-great customer experience without paying attention to the employee experience?  If you forget theory and look at the practice in large organisations you might just see that the answer is a resounding “Yes!”  There is so much talk about the customer experience and in the process a lot of extra work is put on to the shoulders of the employees. There is almost zero attention to the employee experience. Almost nobody that matters grapple seriously with improving the lives/experience of the employees who face the customers. Especially not the folks in call-centres.

I say that if you provide your call-centre agents with a shitty employee experience then the costs (of this shitty experience) are inevitably passed on to the customers. First the customer experiences a lack in the interaction with the call-centre agent: something just doesn’t feel right. Second, the customer is left with an inadequate outcome whether s/he is aware of this or not: the question isn’t really answered; the advice given is less than optimal; or the advice is plain wrong.

Let me say this again: fine sounding words like customer focus, respect, empathy, customer-centricity, customer delight are not enough. On their own they represent icing on a turd.  I go further and assert this: if you recruit the right people and get the employee experience right then your customer facing agents will deliver good-to-great customer experiences without the need for the fine sounding words.

What happens when you have an environment in which the fine sounding words are in place and the call-centre agent experience is shitty?  Allow me share some experience:

  • The agent is aware that time it ticking and his performance is being monitored so he is keen to get on with the call and close it;
  • The agent is so busy navigating / accessing / viewing / updating many applications (that do not talk to one another) including spreadsheets and Word documents that s/he is not in the state necessary to really listen to the customer, to empathise, to make the customer feel valued;
  • The agent is dealing with a complex issue – which is what customers tend to ring in for increasingly – and he doesn’t know the answer. Under the pressure of the clock the agent finds the first plausible answer and gives this to the customer;
  • The agent is speaking jargon whether he s/he knows it or not. The agent is speaking to a sixteen year old who does not get the jargon. This sixteen year old asks for clarification on some of the jargon. The agent explains this jargon with more jargon all the time his/her tone implies that the customer is stupid;
  • This customer, this call, requires flexibility yet the agent is being monitored and managed on his/her ability to stick to the script. So that agent sacrifices the customer experience and his sense of what is appropriate in order do that which is clearly not appropriate – stick to the script. The customer pays the price in that s/he feels that s/he is talking with an idiot and dealing with an inhuman organisation.

Let me sum it up: If you provide your customer facing employees with a shitty employee experience then the best you can expect these folks to deliver is shitty-to-ordinary customer experience.  And no amount of find sounding words will make any difference. These fine sounding words are as effective as putting cream on a turd and serving it in a restaurant.  Nobody does this in the restaurant business, but this practice is common in large organisations.

Enough for today, I thank you for your listening. Until the next time….

Want to Make a Success of Your CRM/CX/Digital Initiative? Listen to Montaigne

I’ve read many times that something like 70% of CRM initiatives fail to deliver the goods?  What about CX. marketing automation, and digital transformation initiatives? I don’t remember reading any statistics on the success / failure of these. Yet, I have been involved in these areas. My experience is that the process tends to be painful, and failure is more likely than success.

What Accounts For The Dominance Of Failure?

Success is an option. So what accounts for the dominance of failure in change / transformation initiatives? This is the question I found myself confronted with this week.  So what is my answer?

Before I provide you with an answer, I want you to know that over the last 30 years I have been involved in many kinds of projects-programmes-initiatives: accounting systems, management information systems, business process re-engineering, ERP systems, shared services, lean, CRM, website design & development, ecommerce design and implementation, customer loyalty, customer experience design, marketing automation, digital transformation….

Montaigne’s Insight Provides The Answer

Back to the question. What is the primary reason that many, if not most, change / transformation initiatives fail to delivery on the promise?

I say that THE primary cause of failure is a certain blindness/arrogance in those who initiate-shape-lead-manager such initiatives.  Blindness to what?  Blindness to the workings of human beings – as individuals, as groups, as the crowd. Arrogance?  The arrogance of the powerful in assuming that they can ignore the working of human beings and treat people like widgets.

Allow me to bring home that of which I am speaking by sharing the following with you  by sharing the following:

“His Scepticism makes him celebrate imperfection: the very thing Pascal, as much as Descartes, wanted to escape but never could. To Montaigne, it would be obvious why such escape is impossible: however high we ascend, we take that humanity with us.… He wrote:

It is an absolute perfection and virtually divine to know how to enjoy our being rightfully. We seek others conditions because we do not understand the use of our own, and go outside of ourselves because we do not know what it is like inside. Yet there is no use mounting on stilts, for on stilts we must still walk on our own legs. And on the loftiest throne in the world we are still sitting only on our own rump.”

Sarah Bakewell, How To Live, A Life of Montaigne

Now let’s make this real by looking at some examples.

Customer Relationships.  Take a moment look around you. How do human beings do when it come to relating and relationships?  Are we masters at this? No. Most of us struggle most of the time when it comes to relationships: unhappy husbands, unhappy wives, unhappy parents, unhappy children, broken marriages, affairs/cheating, unhappy teachers, bored/unhappy students, dissatisfied bosses, resentful employees….

Customer Loyalty. In the world as lived do we reward loyalty?  Yes? Then consider that parents spend a great deal of their lives caring for their children and in the process making many sacrifices. What happens when these parents get old? Do the children exercise loyalty – make sacrifices and look after their elderly parents?  Or is the reward of such parents a place in a nursing home – out of the way with strangers?  How about that employee who has worked for you for 20+ years when you make his job redundant by moving it offshore?  Or the employee who can get a similar/better job with a competitor with higher pay? If we do value loyalty then why it is that the new customer gets a better deal than an existing-loyal customer?

Customer Experience.  Walk in the shoes of the customer! That is the mantra which few really step into and live. Yet even if I did step into your shoes I wouldn’t necessarily experience that which you experience?  I am not you! It may be that when you step in your shoes they pinch whereas I find them comfortable. How can man experience what it is like to be a woman?  Or youngsters what it is to be elderly?  Or a English person what it is to be French?

Cooperation & Collaboration.  There is much talk about the need/importance of cooperation and collaboration. What is the reality?  In my home there has been fierce completion between siblings to be the first/best.  In the classroom there is completion to be the best. When it comes to school plays each actor wants the prominent/leadign role. In the corporation, employees are force ranked so that only a small percentage come out as high performers, and most come out as merely ok. Why? Rewards and honours are reserved for the few so as to encourage competition at all levels.  In the context of competition what will most people do most of the time? Compete!

CRM and Marketing Automation.  Look at the way that these technologies are implemented and you are likely to find that there is minimal time-effort-money given over to educating and training the people who will be expected to use these systems. Further, the folks are expected to go from novice to expert instantly.  The reality?  These systems are not intuitive – they require time, effort and even certain kind of dedication. Time, effort, and dedication that most users are simply not willing to put in – this shows up as extra burden on a back that is just about carrying the existing burden.

Summing Up

If you wish to make a success of your change / transformation initiate then you have a choice: to work with the ‘human nature’ or not. Remember, if you are not actively working with ‘human nature’ then it is almost certain that you are working against ‘human nature’. If you work against ‘human nature’ then you are likely to end up where most folks do end up when they take this route: failure.

 

 

On Cultivating Meaningful Connections With Customers or Why Technology Is The Path To The Dark Side

What does it take to build a connection between you and your customer?  Forget the talk, look at what businesses are actually doing.  What are they doing?  On what are the folks spending money and effort?

Are they not investing big sums of money on technology?  The answer, as lived, is that the way to build connection with your customers is through technology: marketing platforms, salesforce automation systems, customer service systems, CRM systems, e-commerce engines,  web content management systems, knowledge bases, chat functionality, CTI, mobile apps…..

Let’s stop and think.  Are we sure that technology helps build connection with our customers?  Could it be that the lack of technology causes operational issues that cause dissatisfaction yet the abundance of technology will not lead to that emotional connection?  If you are familiar with Herzberg’s dual factor theory then I am saying that technology is merely a hygiene factor.  Further, I ask you to consider that too much reliance / use of technology actually gets in the way of cultivating connection.

I say that in largish organisations technology (and the way of being that goes with it) drives out humanity – in particular the human touch.  We no longer talk to one another it is easier to send an email. We no longer write to one another, we send an email.  We don’t even write emails with the human touch. Instead the CRM system has ready made email templates which are automatically sent out – every customer receiving the same bland corporate communication.  All in the name of efficiency, consistency, and productivity.

 

I want to end this conversation by sharing a story with you. As I enjoy reading I tend to read widely. This means that I buy many books – many of them through Amazon.  When the book arrives I can immediately tell if it is from Amazon. Every package has the same look on the outside, and pretty much the same paperwork inside.  It is the kind of paperwork that a computer spits out.  Zero humanity: utterly forgettable.

Today, I received the book I had ordered from one of the Amazon sellers. From the neat handwriting on the envelope I could tell that it had been sent by a human being.  When I opened the package, I found myself delighted.  Why?  See for yourself:

human-all-too-human

That is all it took for me to find myself surprised, delighted, and thankful. The technology needed?  A pen and a sticky white label!

What was my response after experience that which I experienced in seeing this message?  I found myself wanting to learn more about the Seller (Birdy Hop) AND a strong desire to reciprocate by thanking the Seller. So I went to Amazon, found my order, and gave the seller a 5 star rating.

Is this significant?  Consider that I receive many emails from Amazon sellers chasing a positive review (from me) on Amazon.  For how many of these emails have I logged into Amazon and done as the seller asked?  None of them.

I say that within largish organisations too often technology is the path to the dark side.   If you are not already deeply smitten by technology then I ask you to consider that the human touch is essential for cultivating meaningful connection with your customers – at least those customers who are like me.

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

Generating Customer Loyalty Through The Experience Not The Program

First and foremost I thank each and everyone who continues to listen the speaking that occurs on this blog.  A special appreciation for those of you who make the time to add your voice to the conversation by commenting. I wish each of you the very best for this year – may this year be the best year of your lives.

Today, I’m up for grappling with the subject of customer loyalty as I have been immersed it it since the second half of 2016 – professionally as a consultant and personally as a customer.

What Are We Talking About When We Talk Customer Loyalty?

Before diving in, let’s stop and really think about what we are talking about when we talk loyalty. According to Wikipedia:

Loyalty is devotion and faithfulness to a cause, country, group, or person. Philosophers disagree on what can be an object of loyalty as some argue that loyalty is strictly interpersonal and only another human being can be the object of loyalty.

So customer loyalty, viewed in light of this definition, is about generating devotion and faithfulness to a company and/or its brands.

Is it possible to generate devotion and faithfulness to a commercial organisation?

I can read that which the Guardian newspaper publishes online for free. Yet, I took up the Guardian’s request to pay a fee and become a Guardian member. Why pay for something that I can get free? Because, I find myself in tune with the journalism/editorial values of this newspaper. And I wish to ensure its health so that it can continue to do that which it does.

Football fans.  There are folks (customers) who spend significant amounts of time and money to travel up and down the country in order to watch/support their football team. Their devotion isn’t limited to buying tickets / watching the games. These customers also tend to be the one’s that buy the club’s merchandise and proudly display it.

Then there is Apple – clearly there are many who have been devoted and faithful to the Apple brand through good times, difficult times, great times….

So the answer to the question is yes – it is possible to generate devotion and faithfulness to a commercial organisation.

Are Loyalty Programs The Way to Customer Loyalty?

Recently, I found water pouring through the ceiling of the room below the main bathroom upstairs.  Fortunately this matter was covered by home insurance. The claims folks were helpful and appointed a contractor to replace the ceiling, strip the wallpaper and put the room back into the state it was before the damage occurred.

Unfortunately for me and my family the contractor appointed to carry out the repair work did the work in a slapdash manner.  So I raised the matter with the insurance company and told them I did not want this contractor to do the repairs in the upstairs bathroom. Ongoing, I may name and shame at a later point in time.

Who to use to do the work on the upstairs bathroom?  When faced with this question the immediate answer was the contractor that had carried out work on my home in 2014 when a car had driven into the front wall.  Why this contractor?  Because this contractor did such a professional job: upfront work of scoping and detailing the work; organising the work so that the right tradesmen turned up at the right time/sequence; adhering to the schedule of work; doing a great job of the job to be done; and providing a 2 year guarantee.

So it was the experience of dealing with this contractor including and especially the quality of their work -start to finish – that made me remember them some 3 years later and turn to them.  Not because of any loyalty program.

Back to football clubs and their devoted/faithful customers – the fans. Turns out that collect points and cash them in for rewards type of loyalty programs don’t work. Why not? That is not how a fan (loyal customer) thinks of loyalty. How does such a fan think? Something along the lines of “Remember me. Occasionally, offer me a free drink at your bar and/or invite me in to meet members of the team / club.”  What kind of loyalty is this? The human kind – the kind that the human race has known / practiced for many years. The kind that has allowed human tribes to face obstacles, together, and flourish.

Conclusion: Genuine Loyalty is Built Through the Experience Not the Program

Quality. You can build quality into the production process. Or you can employ quality inspectors to find defective products at the end of the production line.  And/or customer services folks to deal with the complaints arising from poor quality products.

It occurs to me it is the same with customer loyalty.  You can either build loyalty into the way that you do business – product, marketing, sales, logistics, service etc – or you can setup customer loyalty programmes to compensate your customers for the defects in the quality of customer’s experience of your products, your services, your organisation.  And/or your failure to adequately differentiate yourself from your competitors.

I say that the smarter way is to build loyalty into the way that you do business such that no customer loyalty program is necessary to keep your customers coming back to you:

-For Apple this means regularly creating cool/useful products/services that nobody else provides and marketing them in the Apple manner.

-For Amazon it means continuing to do that which Amazon does so well: being easy to do business with, delivering the goods the next day or two, keeping customers informed, and importantly looking out for the customer in multiple ways.

-For the Guardian newspaper it means standing for the causes that matter to the kind of people who are Guardian readers.

I thank you for your listening. Until the next time….

 

 

 

 

State of Customer: What I Learned During 2016

Some years I find myself working on matters of strategy. Other years I find myself with ‘dirty hands’ working at the coalface – helping organisations build capabilities, and deal with operational challenges in the areas of marketing, sales, service, and CRM.  2016 has been a year where I have worked both on strategy and operations. What have I learned?

Customer Strategy

Either organisations do not have a clearly defined customer strategy or the folks working at large organisations are inept at articulating it. At best, I have found the customer strategy to be something like retain existing customers and get more new customers. That is not strategy. That is talking about desired outcomes without articulating how the organisation intends to generate those outcomes.  Maybe, I just don’t get strategy.

Customer Loyalty

I have found that the hard work of engendering customer loyalty has been bypassed by putting in place some kind of customer loyalty programme: do X and get Y points. The challenge with these loyalty programmes is that there is no heart in them. Mostly they are marketing gimmicks. Enough customers realise this and drop out of the loyalty programme – too much effort to win the points, and it takes forever to earn enough points to buy anything of value with the points. A sizeable number of customer loyalty members are inactive.

Then there are folks who see customer loyalty as a one way street. These folks see customer loyalty in terms of monetising the customer base. So they are busy figuring out which kind of marketing tricks will entice loyal customers / fans to spend more. Their heart is transactional – through and through. Why do I say that? Because what is missing is commitment to generate superior value for loyal customers and earn a suitable reward for creating that value. It is like noticing that someone is into you and then using that to get your way with that person just because you know you can.

Customer Experience

Without doubt Customer Experience is the latest buzzword. It is everywhere. Anything and everything is being linked to or brought under the umbrella of Customer Experience. Just about anything and everything is being justified on the basis of improving the Customer Experience.

What isn’t happening is this: real substantive efforts to actually improve the Customer Experience not just at specific touchpoints but also across the entire customer lifecycle. Further almost all organisations are thinking in a blinkered manner when it comes to CX. What do I mean by that? Think Amazon Echo.  What an improvement in the customer’s experience. How many organisations are working on new products that create entirely new, delightful, customer experiences?

Why so much talk but so little real action?  Because for many it involves the equivalent of turning the caterpillar into the butterfly. Just about everybody prefers the butterfly to the caterpillar. Yet, rare it is to find an organisation where the folks are up for the effort, pain, time, and risk involved in the transformation process.  There are easier-safer things to do like embracing ‘best practices’ and the latest channel or fad.

Digital Marketing / Marketing Automation

There is real shortage of skills when it comes to digital marketing / marketing automation.    It is easier to buy digital marketing / marketing automation systems than it is to operate these systems with skill.  There are folks with sophisticated content management systems yet the sophisticated features, like personalisation, are not being used.

Or you have organisations with digital marketing hubs that are not being used well. One organisation that I came across was sending out welcome emails, birthday emails, anniversary (of signing up) emails, and weekly/monthly newsletters. Why just these? Because only these emails came out of the box!  No event driven marketing communications. No dynamic content / personalisation. No predictive content… Yet, all of this functionality is there in the marketing automation suite.

Single View of The Customer / CRM

The biggest challenge / hurdle many organisations are facing is that of constructing that much desired yet elusive single view of the customer. The theory was that CRM systems would make that challenge easier by bringing more and more customer-centred data into one system. This hasn’t actually happened. What has happened is that there are more and more systems holding customer related data – each disconnected from the rest.  If anything cloud based vendors have driven fragmentation as it is easy for marketing folks to buy a marketing system ignoring rest of the organisation. What goes for marketing goes for sales, for the call-centre, for field service……

The Core Challenge is That of Integration

My experience is that the core challenge is that of integration. There is the challenge of integrating the various systems (data sources) to provide the single view of the customer. Then there is the challenge of integrating the organisation players around a well defined, coherent, clearly articulated customer strategy. And a clearly defined customer experience across touchpoints / interaction channels, for the entire customer journey.  It occurs to me that it is only worth gluing up the systems if the folks that run the organisation are willing to glue up the organisation itself. In the absence of that commitment, money spent gluing up systems is likely to be wasted.

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