On Customer Obsession

Customer Obsession Is Fashionable

I hear more and more Middles & Tops mention the importance/need for customer obsession. It’s often used as an exhortation to the Bottoms – those on the front line.  Something interesting happens when I ask the speaker what s/he means by, is pointing at, when s/he speaks of customer obsession. Silence followed by stuff that shows up for me as either banal or made up on the spot.  Little in the way of thinking (as in contemplation) has occurred in many instances.

Is Customer Obsession New?

Interestingly, customer obsession isn’t new. What’s the basis of my assertion?  I remember 2000/2001: my colleagues and I start a customer strategy engagement (centred on 1to1 marketing) at a well known mobile telco. What do we find? We find a dedicated research unit in the marketing function.  A unit which has budget of many millions. What is this money spent on?  Understanding the market (totality of customers for mobile phones/services); understanding their own customer base; and understanding the customers of their competitors.  I categorically state that the head of this research unit and the folks that worked in that unit were obsessed with customers.

The interesting question is this one: Towards which end/s was this customer obsession directed?  Was it directed towards driving product development?  Or the customer’s experience of signing up for the right phone/package?  Perhaps, helping the customer’s make good of that which s/he had purchased?  No, not at all. The purpose was to work out how to drive up sales and profit margins through marketing: targeting the right messages/offers to the right customers or potential customers.

Was 2000/2001 the start of customer obsession? No.  I remember the power and practices of the various brand marketers whilst in the employ of International Distillers & Vintners back in 1993.  I say customer obsession of this kind -figuring out how to squeeze more out of the customer has a long history.

Let’s consider alternative conceptions of customer obsession.

Satya Nadella on Customer Obsession

In his book Hit Refresh Microsoft’s CEO says (bolding/coloring is my doing):

“First, we need to obsess about our customers. At the core of our business must be the curiosity and desire to meet a customer’s unarticulated and unmet needs ….. There is no way to do that unless we absorb with deeper insight and empathy what they need.….. When we talk to customers, we need to listen. It’s not an idle exercise….. We learn about our customers and their businesses with a beginner’s mind and then bring them solutions that meet their needs. We need to be insatiable in our desire to learn from the outside and bring that learning into Microsoft, whilst still innovating to surprise and delight our users.” 

Jeff Bezos on Customer Obsession

Here’s what Amazon’s founder & CEO says in his 2016 Letter to Shareholders (bolding/coloring is my doing):

“There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of Day 1 vitality.

Why? There are many advantages to a customer-centric approach, but here’s the big one: customers are always beautifully, wonderfully dissatisfied, even when they report being happy and business is great. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf. No customer ever asked Amazon to create the Prime membership program, but it sure turns out they wanted it, and I could give you many such examples.”

Shortcuts on The Route of Customer Obsession

It occurs to me that many executives are all for customer obsession as long as they can just speak it sitting comfortably in the stands.  It’s another matter altogether when customer obsession requires leaving the stands and entering the arena.  Which arena? The arena in which customers show up and operate.  And the arena in which the customers interact with the organisation’s front line – websites, mobile apps, sales folks, customer services….

Take a look at the CX movement and ask yourself what is it characterized by?  Is it not journey mapping almost always in the comfort of a workshop in the corporate offices, and the results of voice of the customer surveys?  What are these?  They are proxies for the real thing.  These proxies are attractive as they allow folks to pretend they have insights from the arena whilst sitting comfortably in the stands.

Here’s what Jeff Bezos says with regards to proxies in his 2016 letter (bolding/coloring is my doing):

Resist Proxies

As companies get larger and more complex, there’s a tendency to manage to proxies. This comes in many shapes and sizes, and it’s dangerous…

A common example is process as proxy. Good process serves you so you can serve customers. But if you’re not watchful, the process can become the thing… The process becomes the proxy for the result you want. You stop looking at outcomes and just make sure you’re doing the process right…..

Another example: market research and customer surveys can become proxies for customers – something that’s especially dangerous when you’re inventing and designing products.

Good inventors and designers deeply understand their customer. They spend tremendous energy developing that intuition. They study and understand many anecdotes rather than only the averages you’ll find on surveys. They live with the design.
I’m not against beta testing or surveys. But you, the product or service owner, must understand the customer, have a vision, and love the offering. Then, beta testing and research can help you find your blind spots. A remarkable customer experience starts with heart, intuition, curiosity, play, guts, taste. You won’t find any of it in a survey.”

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

Maz Signature

 

 

 

On Self, The Customer & Leadership Blog, and Cultivating Loyalty With Employees, Partners, and Customers

Cancer, the impending arrival of death for my friend and later myself, concentrates one (at least me) on that which matters.  Today’s conversation is around that which has been unconcealed for me: about myself and the purpose/contribution of this blog.  So now is the time to leave if this is not the conversation for you.  I don’t even know, right now, how long this conversation is going to be.

Purpose of The Customer & Leadership Blog

Why did I create this blog back in 2010?  Was it to be recognised as a thought leader, a guru, in the Customer space?  Was it to get on the speaking circuit and make money? Maybe it was to sell my services e.g. paid for content and/or advertising as a result of having a thriving web presence?  Some folks think so. Enough people contact me to speak as a thought leader. More contact me about writing advertorials and passing them off as my conversations. Others contact me to search maximise this blog (as it is crap from a search perspective enough though it has great content – that is what I have been told). Then there are others that offer to write stuff, for free, that I can publish on this blog.

I decline all the content stuff. Occasionally, if the speaking stuff appeals to me I speak.  The rule is that I speak that which I speak – for that is the only way that the speaking shows up and expresses itself through me.  Once boundaries are putting up, the speaking dries up.  That is simply so and I work with that – life as it is and is not.

So what got me started?  Allow me to share the following quote:

“I had a vivid imagination. Not only could I put myself in the other person’s place, but I could not avoid doing so. My sympathies always went to the weak, the suffering, and the poor. Realising their sorrows I tried to relieve them in order that I myself might be relieved.” – Clarence Darrow

In short, I found myself identifying with particular folks in organisations: those with affinity for the customer, seeking to simplify/enrich the lives of their customers AND get a fair reward (money) for the difference they make in the lives of customers.  It occurred to me that these folks were being misled or duped by those with influence: academics, consultancies, thought leaders, and gurus.  I found most of their advice BS in the sense that Harry Frankfurt uses this term.

It occurred to me that these high priests (thought leaders, gurus, academics, consultancies) were sitting in the stands and at best sharing that which they saw from the stands. Few had/have substantive (many different trials over many years) experience in the arena. Yet, the game is played in the arena – always! The insight / truth that matters is the truth that arises from and makes a difference in the arena!  Not the commentary that comes from those sitting comfortably in the stands – spectators.

I have been in that arena playing many roles in many types of Customer games: salesforce automation, CRM, 1to1 marketing, CX, web design & commerce, digital strategy, marketing automation, sales & account management, customer service & contact-centres…

It occurred to me that I could/should make a contribution by sharing that which I had learned through many years in the arena; there is both success and failure in the arena, each provides learning opportunities, oftentimes the learning from failures is more powerful than the learning from successes.  This logically led me to this choice: the choice to share my perspective/learning/experience for those who find themselves in the arena or are about to enter the arena. Hence, the genesis of The Customer & Leadership Blog for the business domain.

The joy of self-expression and contribution through this blog, The Customer & Leadership Blog got me thinking. Why not make a similar contribution to folks on the personal (non business) side of human existence. This led to the birth of a second blog: Play BIG: Live A Life Worth Living.

Still why did I do this and why do I continue to do this. Is it to be a thought leader or to establish myself as a guru thus win lucrative speaking gigs?  Talk to my wife. Talk to my great friend  Lonnie Mayne: you might find that I prefer to be in the background as a catalyst: coaching, educating, enabling/facilitating, and provoking original thought &/or action.  I wish to conclude this portion of the conversation with this quote:

There is a basic difference between the leader and the organiser. The leader goes on to fulfill his desires, to hold and wield power for the purposes both social and personal. He wants power for himself. The organiser find his goal in creation of power for others to use. – Saul Alinsky

I leave you to decide whether I fit the description of the leader or the organiser.

What Has The Process That Keeps The Customer & Leadership Blog In Existence Unconcealed To Me About Myself?

Let me be clear, I started with what occurs to me as altruistic motive.  I continue with the same altruistic motive – declining opportunities to write paid for content and pass it off as my work, to accept advertising, refusing speaking opportunities which are paid for PR/marketing for some business or other.

Despite or because of my altruistic motive, I have gotten a HUGE amount out that has left me enriched:

First and foremost, The Customer & Leadership Blog saw me through some of the darkest times of my existence. Where the world that constituted my world slowly disappeared. I am talking about the world of sports/activity: Paragliding, trekking in the mountains, going backpacking in third world countries, cycling, tennis, badminton, even something as simple/joyful as table tennis.

Second, In the process that is the Customer & Leadership Blog my image of myself shifted.  I start out thinking that I was a pygmy in the land of giants – that I had nothing to say that was worth listening to. Further, I was convinced that I could not write. Today, without hesitation nor doubt I say that I show up for myself as a thinker-writer-speaker who is worth listening to by those who know who/what to listen to.  It doesn’t stop there, I learned much more about myself.

Only as a result of these two blogs did I realise that I am more than a thinker.  I realised, that I create (these original conversations) therefore I have the capacity to be creative. What joy this realisation / experience brings!  What is the experience that I am seeking to share with you?  Allow me to point you towards that direction by sharing this quote:

Curiosity, irreverence, imagination, sense of humour, a free and open mind, an acceptance of the relativity of values and of the uncertainty of life, all inevitably fuse into the kind of person whose greatest joy is creation. He conceives of creation as the very essence of the meaning of life. In his constant striving for the new, he finds that he cannot endure what is repetitive and unchanging. For him hell would be doing the same thing over and over again.  – Saul Alinsky

Yes, fundamentally I am curious, I have that free and open mind, and accept the relativity of values/positions/theories and the inherent uncertainties that come with finding oneself in living in a complex non-linear world where prediction/certainty is for those who are either naive or fools.  Which kind of explains how it is that I have deliberately sought to make friends with folks from different countries, different faiths, different ages. It also explains how it is that my interests/thinking spans science, philosophy (eastern, western), history, psychology, sociology, anthropology, ecology, systems thinking, chaos/complexity….

Is it possible that it is irreverence that lies at my core?  It hasn’t escaped my notice that the subtitle of this blog is: “provocative conversations: questioning conventional wisdom / stimulating original thinking.”

They say you remember the moments in your existence that really matter. I must have been between 8 and 10 years of age.  Unhappy. Perplexed. Desperate to figure this thing out. What thing? Why is it that the stuff the (white) folks teach me at school about good/bad, right/wrong differs from and contradicts that which my parents (and their relatives) insist is good/bad, right/wrong?  Then one day, one moment, outside walking, a thought/insight arises and hits me.  It does not leave me the same person – it changes me fundamentally and forever.  Which thought/insight? Here it is:

Its ALL made up!

Once I got that, I started pushing the boundaries – at school, at home. I became the person who questions that which is taken for granted.  The one that asks the difficult questions like “Why be a team player in a competitive individualistic culture and economic system? Do you think I am stupid? What is a team player – one who censors self to fit in with the powers that be – you?  Why should I be that kind of person?  Anyway, why should you get to define what constitutes team playing?” Or”What makes you certain that your religion is the only true religion, that your way of life is the right one?”

There is a Chinese saying which goes something like “Beware, every stick has two ends, when you pick up a stick you get both ends!” I can vouch for the truth of that.  Curiosity, open mindedness, acceptance of relativity of values/perspectives, and especially irreverence have brought me great learning, memorable experiences, and joy.  That is one end of the stick.  The other end is that almost always I find myself the Outsider. And folks do not like that which they hold dear questioned. They don’t even like the opinions/prejudices/’facts’ they picked up from their media to be subjected to Socratic questioning or my blistering critique.

My professional existence is been that of a traveller: travelling from one employer to another, moving from domain to another.  History suggests that I tend to last about two years in an organisation. At about that time I usually find myself bored – having learned that which there was to learn. And/ or I find myself facing a ‘superior’ who shows up for me as ignorant/stupid/arrogant or just a bully.

There’s an ancient story of The Oak and the Reed. According to this tale, the smart choice is to be the flexible/supple reed. I am the reed when it comes to means to accomplish ends. When it comes to values/ends and the way I have chosen to show up and travel in this existence I am the Oak. Why?  Because these matter – these are what I choose to orient/navigate my existence by.  How important are they to me?  This quote says it all:

“A man is not made for defeat,” he said. “A man can be destroyed but not defeated.” – Hemingway, The Old Man & The Sea

What Has This To Do With Customers and Leadership?

Good question.  Allow me to respond with a few questions of mine:

Do you identify with the customer (see the Clarence Darrow quote at the beginning of this conversation) and so are committed to simplifying/enriching the lives of your customers? Or are your in it purely for yourself – to make a name for yourselves, to get rich?

Are you playing the Customer game because it is THE game that you want to play because it is THE game that calls you – your deepest self?  Is playing this game the expression of your deepest self?

Do you have or are you cultivating the curiosity, the open mindedness, the awareness of the relativity of perspectives, and the inherent uncertainty of existence to get out of your existence (your default existence) and really enter into / live the lives of your customers? And thus to generate original insight, and cultivate empathy, for your customers?  How can you simplify/enrich their lives if you do not truly understand them – not as mere personas nor statistics – but as concrete human beings?

Do you get all that is – you, your organisation, the economic model, society as such – is all made up?  And are you up for unmaking that which is necessary to unmake to become a giant in the Customer arena – as seen through through customers’ eyes?  Is this a mission that appeals to you – calls forth intellectual interest and emotional passion? How do you know that passion is present?  Passion brings boundless energy and it does not get stopped by obstacles that appear on the path.

Are you willing to pay the price that comes with questioning the status quo and threatening the powerful who seek to lose by the changes you are proposing to make or making? Are you willing to be that Outsider?  Are you willing to accept Hemingway’s truth that a man is not made for defeat, that he can be destroyed but not defeated?

If you answer these questions honestly you may get why it is that few are successful in calling forth genuine loyalty between themselves and employees, between themselves and their value chain partners, between themselves and their customers, between themselves and the communities in which they operate.

Thank you for your listening, I wish you the very best, until the next time.

 

Forget Working On The Customer Experience, Focus On Competition

I say that the way to make a significant impact on the quality of the customer experience (as experienced by the customer) is for the organisation not to focus on improving the Customer Experience.  That is a bold assertion and shows up as nonsense to many. So what is it that I am getting at?

It is my experience that after accessing the voice of the customer and doing the journey mapping a range of initiatives are on the table. So the folks around the table getting busy figuring out which initiatives to take forward. Which ones do they take forward? The ones that don’t rock the boat. The ones that are the least risky. The ones that are usually called low hanging fruit: the easy ones that involves a tinkering at the edges,  and in the bigger scheme of things make little difference.

To Improve The Customer Experience Ramp Up The Quality Of Competition

SouthWestTrainsPacked

Take a look at this photo. Notice, the people standing up – how many there are, and how closely packed they are against one another. I invite you to step into this picture. Imagine yourself standing up in this train. And finding yourself packed in like sardines in a tin.

I found myself on this train – standing up. This train was so packed that it took considerable skill to just get my smartphone out of my trouser pocket – to take this photo.  How long was I standing up in this train? For one hour and ten minutes.

So I ask you how is it that this kind of occurrence is actually a regular occurrence on the trains going into and coming out of  London at peak travel times? It is so because there is no competition. On each line there is one company that has won the right to run the train services.  A monopoly is in place and the folks who need to use the train have no choice but to put up with whatever they have to put up with.

Now consider that the Tops of just about every business strive to minimise the competition. Why?  Because where there is no genuine competition, Tops can ignore customers, and run the organisation in a manner that extracts surplus profits from customers.

Looking at the situation from the Customer’s point of view I am clear that the most effective way of causing improvements in Customer Experience is to effect genuine competition into every industry, every market place.  Genuine competition for customers will force companies to do that which they are not willing to do today: focus on creating superior value for customers – that includes the Customer Experience.

I don’t know about your country, I do know about the UK.  I assert with confidence that there is no genuine-significant competition in many industries: retail banking, grocery retailing (Aldi, Lidl are starting to make a dent), energy (gas, electricity) suppliers, telecom’s providers….

Consider that if business genuinely had the interests of customers at heart then the Tops of every business would welcome increased competition in their market place. Why? It would provide the impetus to do better: to focus on creating superior value for customers – including providing a better Customer Experience.

Is injecting genuine competition into a market place enough? Is it enough to ‘force’ the incumbents to pay attention to customers and do right by customers: focus on providing superior value for customers?

Effective Regulation Is Necessary To Make Competition Work

For two years I was leading a data mining and predictive analytics practice which operated across Europe. So I got to know something about how different countries went about implementing-enforcing the European Data Protection directive.  Some countries were effective (Germany, France, Italy, Spain) and others (UK) ineffective. Why? The Germans, French, Italians, and Spaniard adequately funded their national data protection agencies and allowed them to levy unlimited fines (usually running into millions of Euros). I believe one of these countries set up the funding arrangements so that the data protection agency had to fund itself through the fines it levied on those companies found bending or simply not following the legislation. Whereas the UK government provided the minimum funding possible, and limited the fine that the national data protection agency could apply to £50,000.

Let’s get back to the issue of competition. Is it necessary for national governments to put in place effective regulations and enforcers of these regulations?  No? Are you of the view that multinationals so love their customers, and are so committed to the Customer Experience, that regulation is not necessary? If so I invite you consider this: business, especially, big business is not customer friendly.  Allow me give life to this assertion.

Yesterday I read this Guardian article: France fines 13 consumer goods firms €951m for price fixing.  Which companies are involved? Companies include:

  • Gillette
  • Proctor & Gamble
  • Reckitt Benckiser  – €121m
  • Unilever – 2nd largest fine, €172.5m
  • Colgate-Palmolive
  • L’Oreal – largest fine, €189.5m
  • Johnson & Johnson
  • Henkel (maker of Persil) –  €109m
  • Biersdorf (Nivea) – €72m
  • SC Johnson

Which products were involved? As far as I can figure out, just about everything. Here’s what the Guardian says (bolding mine):

The price-fixing affected a large number of popular brands, such as Vanish stain remover, Palmolive washing-up liquid, Sun and Calgonit dishwasher tablets, Sanex and Petit Marseillais shower gel, shampoos including Head & Shoulders, Fructis and Elsève, and Colgate and Signal toothpaste. Mouthwashes, deodorants, shaving creams and razors, female hygiene products, body lotion, facial and sun creams and insect sprays were also affected.

So what went on?  What did the folks at these companies do to merit such a large fine? This is what the Guardian says (bolding mine):

The regulator said the 13 companies ….. had colluded on price increases between 2003 and 2006. “These two sanctions are among the most significant imposed to date by the competition authority,” it said. The regulator added that the price-fixing had kept prices “artificially high” affecting consumersand “caused harm to the economy”.

…. commercial directors and other sales officials from the companies involved met “regularly and in secret” to co-ordinate price hikes at restaurants or via correspondence to private homes, as well as through telephone calls. The groups in which they met were called “Team” or “Friends”. 

Consider that if business genuinely had the interest of customers at heart – were committed to creating superior value for customers – then business Tops would not only welcome regulation, they’d want it enforced rigorously and big fines handed out to those who cheat customers.  Name me a Top that advocates this position – can you think of one?  I cannot.

Summing Up

I say greed, selfishness and even corruption permeate our way of life. It permeates politics, national government, and local government. It permeates the police. It permeates business. It permeates the broader society – us.  Given this context, I say, all talk of customer – customer focus, customer service, customer relationships, customer engagement, customer experience, customer obsession – is totally and utter bullshit.

Do you study history?  I have. This is what I have learnt: every right that you/I enjoy today was earned and paid for through blood of brave souls many years ago.  So if you and I are going to be treated right by folks in big business then it behoves us to fight for genuine competition in the market place, stronger customer protection legislation, and effective enforcement bodies.  What you and I cannot count on is business itself: yes, the words have changed, and business as usual (screwing customers) continues unabated. I say that the true customer strategy of most business is something like this: blind customers with bullshit, and empty their pockets whilst they are not looking.

Why I Prefer Not To Do Business With Customer-Centric Businesses

Why is it that I prefer not to business with a customer-centric business? Allow me to share my answer by referring to the UK grocery market.  Which supermarket chain was applauded, by many, for its customer-centred way of doing business? Tesco.  What was held responsible for fuelling this customer-centred way of doing business? The Tesco Club Card. Through this loyalty card, Tesco captured and made effective use of customer shopping data to grow revenues and optimise profits.  In the process Tesco came from nowhere to became the world’s second largest retailer.

Where is Tesco today? Here is what The Economist said back in July 2014:

… on July 21st Tesco abruptly announced that Mr Clarke would be leaving his job, apparently prompted by a warning that profits in the first half of 2014 would come in “below expectations”. In June Tesco revealed a drop in same-store sales that Mr Clarke admitted was the retailer’s worst performance in 40 years….

Recession taught middle-class shoppers that discounters like Aldi and Lidl were cheap but not nasty; they spent some of the money they saved at higher-end grocers, such as Waitrose and Marks & Spencer……

Tesco is faring badly. Its sales dropped by nearly 2% in the year to June while those of its closest rivals, Asda (which is owned by Walmart) and Sainsbury’s, rose by 3% or better. Despite his exertions, Mr Clarke failed to persuade consumers that Tesco offers better value than the discounters or quality to match the upmarket merchants.

Is this as bad as it gets? No. Here is what the Guardian newspaper stated in on the 22nd of September this year:

Tesco has suspended the head of its UK business and called in independent accountants and lawyers to investigate after discovering that its guidance to the City overstated expected first-half profits by about £250m….

Tesco shares fell almost 8% on Monday morning to an 11-year low of 212p, making them the biggest faller in the FTSE 100 index and wiping £1.5bn off the retailer’s market value. More than £6bn has been wiped off share value since 21 July, when the previous chief executive, Phil Clark, was ousted.

Why is it that Tesco is in such deep trouble? I say that Tesco has arrived at where it is at due to its customer-centric way of doing business.  What do I mean by this?  I mean that the Tops got fixated into harnessing the data yielded by the Club Card to get customers to part with more of their money in Tesco stores.

Was this done by offering customers superior products as in higher quality products? No.  The products were middle of the road yet ways were found of selling these at higher prices through clever marketing and merchandising.

Was this done by providing superior customer service in the stores? No. Tesco cut back on the number of people working in the stores so it was not unusual for the customer to find that there was nobody around to help when help was needed or find long queues at the checkout tills.

Was this done through a superior shopping experience? No. Management chose not to invest in the stores or the shopping experience in the stores. As a result the stores become less and less attractive over time.

I prefer not to do business with a customer-centric business because the management of such a business is more likely to be focussed on extracting value from their customer base through a variety of clever manoeuvres than earning its keep through superior products (Apple, Waitrose), superior service (John Lewis, Zappos), low prices (Lidl, Aldi), or a combination of service and low price (Amazon).

If you are a customer and your supplier is touting customer-obsession then  you might want to think about whether that is a good thing. Is the obsession with providing you with a superior product, superior value,  and/or experience? Or is it an obsession with with finding clever ways of getting you to buy more, pay more for what you buy, and get less in return? You might want to keep in mind that which many remind me of: business is not altruistic.

If You Can’t Prove The ROI Of Your Customer Experience Effort Then Consider This Option

Where is Customer Experience Management At?

What are the highlights of the Harvard Business Review Analytic Services study: Lessons from the Leading Edge of Customer Experience Management?  It occurs to me that there are many. And for the purposes of this post I want to concentrate on a subset.

According to the study: Less than half of the companies view customer experience management as a strategic priority.  Most are struggling to develop clear and consistent customer experience strategies, support, processes, and metrics across the organisation. 

Put differently, even the 50% who see customer experience management as a strategic priority are finding it hard.

What are the biggest obstacles-hurdles on the path of Customer Experience?

The authors of the study point out three challenges that making the going hard:

  1. Proving ROI – folks are finding it difficult to prove ROI as they are not able to link business outcomes to customer experience effort.

  2. Data & Integration – single customer view turns out to be a lot like enlightenment only a select few have realised it (after years of effort) the rest are having a difficult time knitting together their data and systems.

  3. Customer-focused culture – it turns out that speaking-writing-evangelising about customer focus turns out to be easy, creating an organisation which is genuinely customer focussed is ‘a bridge too far’ for most (if not almost all) organisations.

If you want to access the authors prescription for addressing these challenges then I suggest you read the study. For my part, I find their recommendations rather unsatisfactory. Why?  Their six lessons in Customer Experience Management start with ‘Lesson One: Create A Customer-Centric Culture’!  What genius!  And how do they recommend that you do that?  Rewards and punishments!  Our stupidity never ceases to amaze me.

What Option Is Open To You If You Cannot Prove ROI? 

Three options show up me for me when I consider this question. First, stop flogging a dead horse and do something else in the organisation that you find interesting or which holds the promise of success that you aspire to.  Second, move to another organisation – one which seems to you to be more receptive to the Customer Experience thing.

What is the third option?  Allow me to introduce this option by sharing the following quote:

Under-think your life’s purpose

Finding your ‘purpose’ in life is an attractive ambition, and I’m sure there are plenty of people who’ve simply said “This is what I was born to do,” but not everyone is as lucky as that.  The simple alternative for the rest of us is to ask “What is the next useful action I can take?” Keep it simple – if you notice a problem that needs solving, solve it, and if you meet a person who needs help, help them.

– David Turnball

Looking at this pragmatic advice through a Customer Experience lens, it occurs to the that the third option is as follows:

  • If you meet a customer who needs help, then help that customer;
  • If you notice a problem (that impacts the Customer Experience negatively) and have the capacity to solve that problem, then solve that problem; and
  • If you have an opportunity to do something unexpected-special for a customer then go ahead and do that something special.

Your small actions may get noticed, they may infect your colleagues and through them feed into the larger organisation.  At the very minimum, you have the satisfaction of lived true to your values and made a difference in the lives of some of your customers.

 

 

 

 

 

The Paradox At The Heart of Customer-Centric Business

I am no longer a fan of customer-centricity nor customer-centric business. I am not a fan of the way many are going about customer focus, customer-centricity, or customer obsession.  It occurs to me that the approach taken by many towards arriving at customer focus, customer-centricity, and customer obsession is not gold, it is fools gold.

Why? Because it occurs to me that an organisation that shows up as customer-centric does not centre itself on its customers. At least not in the simplistic sense that is being written-talked about, promoted and acted upon by many.

I get that I make a bold, even controversial statement, and it highly unlikely to win me applause. That is OK, given that my commitment is to write my truth and take a skeptical stance towards the dominant ideologies and practices.

I get that you might want to better understand why it is that I assert that which I assert here.  Allow me to point at, illustrate, and unconceal that which I am getting at here by sharing with you some quotes.  Let’s start with Emmy Van Deurzen, chartered counselling psychologist and registered existential psychotherapist:

…. one can never ignore the needs of others when making personal decisions but neither can one allow others to entirely determine oneself even when alone. This is a paradox

Yes, you do need to consider customers – their needs, their desired outcomes, their ‘jobs-to-be-done’, their preferences etc.  And you cannot run a successful business just by focussing on your customers. The game of business involves other players whose needs have to be considered.  For example, a facet of business life caught my attention whilst working with smaller businesses, which had not so gripped me for most of my life working in big businesses.  What facet? The critical importance of finding, hiring, organising, enabling, inspiring, channeling, and retaining the people who actually work inside the business to do that which is necessary to create value for customers.  It occurs to me that this is just as important for big businesses, it is not so evident because the dysfunctions of a demotivated workforce don’t show up as vividly in a huge organisation.  Or take a look at Zappos, its success is partly built on the way the founders and management team treated suppliers (as a valuable part of Zappos) and thus called forth co-operation from them.

Furthermore, if you simply follow what customers are telling you then you leave yourself open to the disruption caused by those who can see beyond what customers are saying in market research and customer surveys. Here, I share a passage from Matt Watkinson, the author of The Ten Principles Behind Great Customer Experiences:

It is not only consumers who have shifted towards other-directedness and ended up struggling: businesses have too. The dominant obsession with market intelligence, competitor analysis, and customer research is all about developing a more powerful radar, and the endless hand-wringing and strategising over social media betrays the kind of anxieties that are most often found in those eager for the approval of others.

In contrast, we most admire those businesses with a strong inner direction – a clear set of values, integrity and sense of purpose – and tend to lionise celebrity CEOs who bring that ethos to life…….. Customers churn between suppliers to find the best deal, not because we are all extremely price sensitive, but because there is nothing to be loyal to.

What Matt is pointing at here is that we are not simply the kind of beings that economics says we are.  Nor are we the kind of beings that rationalist philosophy, behavioural psychology, and scientific management assumes that we are.  The human being is a richer human being. A human being that strives for meaning and connection, open to being loyal to ideals, values, missions that elevate human life.

Finally, I want to leave you with wisdom from John Kay, an British economist:

If you want to go in one direction, the best route may involve going in another. This is the concept of ‘obliquity’: paradoxical as it sounds, many goals are more likely to be achieved when pursued indirectly. Whether overcoming geographical obstacles, winning decisive battles or meeting sales targets, history shows that oblique approaches are the most successful, especially in difficult terrain.

Obliquity is necessary because we live in an world of uncertainty and complexity; the problems we encounter aren’t always clear – and we often can’t pinpoint what our goals are anyway; circumstances change; people change – and are infuriatingly hard to predict; and direct approaches are often arrogant and unimaginative.

So let me remind you of my central assertion:

A customer-centric organisation does not centre itself on its customers. It is a paradox. And I say that it occurs to me that the way that many organisations are going about customer focus and customer-centricity, will not get them there. The path heavily promoted, and commonly taken, is fools gold.

Whilst I abhor combat, I do welcome conflict: conflict is simply the showing up of difference. And if difference is approached through the spirit of dialogue then it unconceals aspects of the world that are hidden from each of us. So if you disagree with that which I have written then please speak your mind, educate me, share that which you see and which I do not see.  I wish you a great day and thank you for making the time to listen to my speaking.

The Dark Side of Customer Focus, CRM, and Customer Experience

What is the cost of putting profits before customer interests?

This week one of the UK’s largest insurance brokers got hit with a £7.4m fine. Why? This is what Tracey McDermott, the FCA’s director of enforcement and financial crime, is reported to have said:

Swinton failed its customers. When selling monthly add-on policies, Swinton did not place the consumer at the heart of its business. Instead it prioritised profit. 

At the FCA we have been clear in our expectation that firms must behave in the interests of consumers. Today’s outcome shows our approach in action and will act as a deterrent for other firms tempted to put profit figures above the fair treatment of customers.

 The Dark Side of Customer Experience

Is Swinton the only organisation where people in the business put revenue and profits ahead of treating

customers fairly?Not according to Monique Reece:

The dark side of customer experience is the way in which some companies take advantage of their most loyalcustomers. For example, if you are a loyal cable subscriber, you may very well be paying more for your service than a new customer who just got a deal for switching carriers. Or if you are a magazine subscriber, you might asked to renew your subscription at a much higher price than if you just let the subscription lapse and subscribed as a new customer.

Dark patterns: carefully crafted user interfaces that trick users 

Is the limit of the dark arts that companies use to fleece customers?  Here’s what Michael Hinshaw says in a recent post of his:

According to darkpatterns.org, a dark pattern is “a type of user interface that has been carefully crafted to trick users into doing things.”  Put another way, firms that employ dark patterns trick their customers into buying/signing up for things they almost certainly don’t want.

It can be as egregious as getting rental car customers to buy insurance they don’t want or need, or signing up for recurring shipments, billed monthly, when all they want is a single purchase…..You get the drift. Dark patterns get customers to do things they wouldn’t typically choose to do, if they were presented the options in a straightforward manner.

What does Michael Hinshaw recommend?  He recommends finding the source of these “bad profits” and taking the necessary action:

So, ask yourself: does your company ever try to “trick” your customers? If the answer is yes, put up your hand and “out” the practice, pushing your firm to do something, well, better. There’s always an alternative to using dark patterns.

Is customer focus the antidote to these dark practices?

Time and again I have called attention to the ‘extraction’ context that lies hidden underneath the content of customer relationships, CRM, customer focus, customer experience, and customer-centricity.  And it has occurred to me that I have been a lone voice spoiling the customer love fest. Not anymore.

I share with you selected passages from Bruce Kasanoff’s latest post which shows up for me as being the best post I have ever read when it comes to customer focus and/or customer-centric business:

The vast majority of “customer-focused” initiatives reek of a taker mindset.…. They do not think of customers’ interests first. They do not give major new benefits or services to customers. They seek to take more money out of people’s wallets.

In short, these initiatives were designed by takers, and if you are a giver it is enormously frustrating to deal with the hypocrisy that surrounds you: your company says it wants to help customers, but its policies and procedures are designed to take from customers, not give to them.

The taking mentality creates systems that make it so hard for customers to stand up for themselves that it’s easy for companies to “legally” lie, cheat and steal from them.

Putting takers in charge of customer experience is like asking a bear to guard your honey.

If you really, truly want to grow your company faster than your competitors, hire, promote and empower givers.

Givers are people who think of other people before they think of themselves. They are the people who should be designing and running customer-focused initiatives. They are the folks who have the vision and ability to grow revenues, because they are focused on the needs of others.

As I have said before, an authentic shift towards customer-centric business requires a genuine shift in consciousness. A shift from a “You OR Me” context to a “You AND Me” context. A shift from shareholder capitalism to conscious (stakeholder) capitalism. A shift from maximising short-term profits (at the expense of people and planets) to maximising long term wellbeing for all. A shift from calculating mind towards a generous heart. A shift from taking-keeping-excluding to giving-sharing-including.

What do you say?