A ‘Fresh’ Look at Customer Retention and Loyalty (Part II)

Let’s recap Part I of this conversation. The key points as I understand them are:

  • You cannot have customer loyalty without cultivating employee loyalty and investor loyalty. Why? Because they are fundamentally and inherently interconnected.  So debates about which comes first (customers, employees, investors) shows that folks lack a fundamental grasp of that which we are dealing with.
  • Customer retention-loyalty has implications that extend to every corner of the business. It is necessarily a strategic matter. As such the ownership-responsbility-accountability  belongs with CEO.  It cannot be handed off to the Marketing function (or any other function) nor given over to a Chief Customer Officer.
  • Retention is not just another metric. It is the defining metric for the whole business. Retention is used to integrate all aspects of the business into a coherent whole.

OK, now we are in a position to move forward and conclude this conversation. Allow me to set the scene by sharing this assertion with you (bolding mine):

“Stemming the customer exodus is not simply a matter of marketing; it demands a reconsideration of core strategy and operating principles.

I say that it demands a reconsideration of core strategy and operating principles in the context of a new theory of doing business.

What Theory of Business Enables Customer Retention and Loyalty?

Practice is always based on some theory of how the world works. The dominant theory that fuels just about every large business is one of profit maximisation and shareholder enrichment.  With this focus customers and employee are seen purely as means and almost never as ends in themselves.  Which is to say that they are viewed and treated as tools rather than human beings.  Human beings do not tend to be loyal to folks who treat them as tools.

If you are serious about generating sustainable improvements in customer retention and loyalty then you will need to jettison this theory and embrace a new theory of business. Why?  Lets listen – bolding mine:

The new theory sees the fundamental mission of a business not as profit, but as value creation. It sees profit as a vital consequence of value creation – a means rather than an end, a result as opposed to a purpose…

Profits alone are an unreliable measure because it is possible to raise reported short-term earnings by liquidating human capital. Pay cuts and price increases can boost earning, but they have a negative effect on employee and customer loyalty….  

…there are two kinds of profit. Call the first kind virtuous: it’s the result of creating value, sharing it, and building the assets of the business…. the other kind of profit is destructive. Destructive profit does not come from value creation and value sharing; it comes from exploiting assets, from selling off a business’s true balance sheet. This is the kind of profit that justifies terms like profiteering…..

When profit is a company’s goal and purpose, virtuous and destructive profits serve equally well. But once you see profits as a means to, and a consequence of, the sustained creation of value, then only virtuous profit will do.”

What Kind of Stand Do Those Who Excel in Customer Retention and Loyalty Take Toward People?

Which means that a customer retention and loyalty centred approach to doing business requires a particular way of seeing-treating people, and managing the business. Let’s listen – bolding mine:

“…see people as assets rather than expenses, and they expect these assets to pay returns over a period of many years. Loyalty leaders choose human assets carefully, then find ways to extend their productive lifetimes and increase their value. Indeed, loyalty leaders engineer all their business systems to make their human inventories permanent. They view asset defections as unacceptable value-destroying failures, and they work constantly to eradicate them. 

Why treat people (customers, employees, investors) in this manner? Because loyalty to count as loyalty has to be given willingly. Listen:

“You cannot control a human inventory, which of course has a mind of its own, so you must earn its loyalty. People will invest their time and money loyally if they believe that their contributions to your company will yield super returns over time. The secret is … to select these human beings carefully, then teach them to contribute and receive value from your business…”

Is Loyalty a One-Way Street?

The assumption (and practice) as I see it is that the game of loyalty is all about loyalty from customers to the company. Which is to say loyalty is a one-way street. Is this the right way to cultivate and demonstrate loyalty?  Let’s listen – bolding mine:

“The need to keep losses under control led many companies to cover the claims required by their contracts…. then refuse to renew customer policies to avoid future losses. State Farm took a radically different view. It had no intention of canceling customers it had expended so much energy and expense to acquire and maintain, most of them for many years….. Most important, disloyalty to customers would be philosophically unacceptable. Loyalty is a two-way street. Moreover, loyalty must be seen to be a two-way street. How could State Farm possibly expect its customers and agents to remain loyal if the company did not demonstrate loyalty when the chips were down.”

Why Is It The So Many Have Accomplished So Little When It Comes to Customer Retention and Loyalty?

I’ve in the customer retention and loyalty game for 15+ years. I’ve been in the arena not just a mere spectator. I have witnessed many talk fine words, I have seen many undertake all kinds of projects and programmes to increase retention/loyalty. Yet, I have seen none succeed in any meaningful-sustainable way.  Further, when I read about which companies are doing a great job in this domain it is always the same names or new entrants with new business models.

What gets in the way of existing large, publicly quoted, companies excelling at cultivating customer loyalty?  Almost every company approaches retention and loyalty tactically. So you have a bunch of business practices that drive customers to leave. Instead of changing these practices executive put in place retention teams. Let’s be clear, most organisations have merely added on retention teams and other gimmicks to their existing way of doing business. Is this enough? Let’s listen:

Building a highly loyal customer base cannot be done as an add-on. It must be integral to a company’s basis business strategy. Loyalty leaders …. are successful because they have designed their entire business system around customer loyalty…


Summing Up and Closing Out This Conversation


I have shared a particular perspective with you and I have invited you to listen to the speaking of a particular author.  How does this strike you?  Revolutionary? New? Fresh? Stale? Impractical? Nonsense?

Now is the time for me to come clean.  The perspective that I have shared with you is the perspective that I have held since my earliest days in the Customer arena. And the speaker you have been listening to is none other than Frederick F. Reichheld.  When did he speak the words that I have shared with you?  The words were put on paper and issued as a book (The Loyalty Effect) back in 1996.

Look around at what is going on and you are likely to find that customer retention and loyalty has been approached tactically. The usually result is add-on’s to the existing way of doing business. The add-on’s can take many shapes: new website, Facebook / LinkedIn presence, customer retention team, an online customer community, new CRM system…. The results?  Are they not meagre?  Which companies by taking this approach have vaulted into loyalty leaders?  I cannot think of a single one.

Why is it that those who have jumped on the Customer bandwagon have jumped on it tactically, and not strategically?  20 years ago, Frederick Reichhheld said this:

The real trouble is that many, perhaps most, executives today have adopted a paradigm which at its heart is inconsistent with loyalty-based management. Press them, and few will insist that the primary mission of their companies is to create superior value for customers and employees so investors can prosper…”

This strikes me as being the heart of the matter. Within the context of the current paradigm it is simply not possible to cultivate meaningful loyalty. So all that is left is tactics, add-on’s, poverty of increases in loyalty, more tactics….

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


A ‘Fresh’ Look At Customer Retention and Loyalty (Part I)

It isn’t just Donald Trump that mixes tidbits of fact with much fiction to appeal to those eager to believe. This is also the case when it comes to the business world. Especially so when we get to customer-centricity, customer experience, customer loyalty….. Whilst some folks can tell that Trump is talking nonsense, in the Customer arena it is that much harder to separate fact from fiction, and useful advice from nonsense.  So, today, let’s take a fresh look at customer retention and loyalty.

What Is The Central Assertion of Customer Loyalty?

No, I am not talking about the often mentioned statistic that goes along the lines of “A 5% increase in the customer retention rate can increase business profits by 25% to 125%.” That is just greed that has driven many to go for customer loyalty without a deeper appreciation of what is involved in generating this kind of financial outcome.

I am inviting you to do something that is rather extraordinary in these times: look beyond the surface, go deeper, and think.  What lies behind this statistic?  Consider that the central assertion is something along this line:

“…doing business with people you trust and understand is more predictable and efficient, and thus more profitable than doing business with uninvested strangers.”

Where Do Employees Fit Into The Picture?

As I understand it, Wittgenstein pointed out that a lot of nonsense is spoken due to language itself. One of the major defects is our habit of speaking-thinking in terms of either/or.  Another defect is simplistic cause-effect thinking which looks for only one major cause for any effect. Which might explain why there is so much opinion offered on where employees fit into the Customer Loyalty picture. Some say employees come first. Some say customers come first, employees second. Others ‘say’ employees aren’t all that important just one factor amongst many. Where do you stand?

Listen to this:

“…we could not progress beyond a superficial treatment of customer loyalty without delving into employee loyalty.….. there was a cause-and-effect relationship between the two; that it was impossible to maintain a loyal customer base without a base of loyal employees; and that the best employees work for companies that deliver the kind of superior value that builds customer loyalty…. our concern with employee loyalty entangled us in the thorny issue of investor loyalty, because it is hard to earn the loyalty of employees if the owners of the business are short-sighted and unreliable….. investor loyalty was dependent on customer and employee loyalty, and we understood that we are dealing not with tactical issues but with a strategic system.”

I also invite you to consider that just about every organisation that has jumped on the Customer bandwagon has done so tactically, not strategically.  And almost all the advice on Customer, that I came across, is tactical – which is to say it is centred on tactics even if these are given strategic clothing.  Which is to say that these folks have taken a superficial approach to loyalty.  Still wondering why most if not almost all large organisations have failed to make a meaningful dent in customer or employee loyalty?

Should Marketing Own Customer Retention and Drive Customer Loyalty?

Who should be responsible for cultivating customer loyalty? Who should be keeping a firm eye on customer retention?  Should it be the marketing function as many who serve the marketing function argue?  What is your stand on this?  Now listen to this:

Loyalty has implications that extend to every corner of every business system..… Tempting as it may be to delegate customer retention to marketing, what can marketing do to stem the outflow of employees and investors?  Retention is not simply one more operating statistic, it is the central gauge that integrates all the dimensions of a business..”

Ok, so the marketing function is not in a position to the do the job.  So, should you go out and hire yourself a Chief Customer Officer?  You know someone who sits in the staff function with little authority over the line functions of marketing, sales, service, logistics, finance…?  Will that do it?  Listen to this:

“..customer loyalty is too important to delegate. It has a crucial effect on every constituency and aspect of a business system….The responsibility for customer retention or defection belongs squarely on the CEO’s desk, where it can get the same kind of attention that is lavished on stock price and cash flow.”

Enough for today. Let’s continue the conversation another time and look into what it actually takes to cultivate loyalty and generate the kind of increase in customer retention that results in superior growth, profits, and cashflow.  In the meantime I thank you for your listening and I wish you great living.





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….

What Can The Hotel Industry Learn From Homelands B&B?

Homelands Bed & BreakfastDuring November, whilst on business, I stayed at Homelands Bed & Breakfast and thoroughly enjoyed my experience. It was so good that staying at Homelands occurred as staying at a home away from home.  My experience lived up to the five star rating that Homelands has earned on TripAdvisor.

Here’s what I think the hotel industry can learn from the folks (Erik and Nicola Burger) who own and run Homelands B&B Woodsmancote:

After Booking And Before Arrival

I think I made the booking via Hotels.com about a week in advance of arrival.  A couple of days after making the booking I received an email from Erik and Nicola confirming the booking, welcoming me, and letting me know that the normal check-in time is between 4 and 9pm. And if I was going to arrive outside of that window then they needed to know so that alternative arrangements could be made.

Further, they provided useful advice like which road to take and importantly which road to avoid unless I had strong nerves and a 4×4 vehicle.

After an email exchange it became apparent that Erik and Nicola make it a habit to welcome their guests. Yet few guests turn up on a Sunday night – business travellers don’t tend to stay there. And the Burger family had made plans to go out that Sunday evening.  This was not a problem we came to an arrangement that worked well for all of us.

What impression did this exchange make on me?  “Wow, these folks know I am coming. They want to make sure that I get there safely. And that when I get to their place they are either there to welcome me. Or at the very minimum, that I can get to my room without any problems. They are living up the praise they have received on TripAdvisor. I have made the right choice.”

Further because of this proactive email exchange I was able to let Erik and Nicola know that my breakfast needs were simple: fruit, croissants or cereal (granola), and a cup of tea.

Now compare this with the Holiday Inn Express where I stayed the first week of November. I made the booking. I heard nothing from the Holiday Inn Express. When I turned up I found there was no parking. Which came as an unpleasant surprise. And then I had to ask for car parking options.


  1. Reach out to your customers when they place an order and provide them with useful information.
  2. If standard ways of doing things don’t work  for this customer in this particular instance then look for creative ways around the standard ways. Creative ways that leaves the customer feeling valued. And yet does not damage the business.

Upon Arrival and First Night At Homelands

I arrived on Sunday night. It was dark. I was in the middle of the countryside. After asking a neighbour I found Homelands, used the pin code that Erik and Nicola had emailed me. Found the envelope with my name on it and key inside – as promised. Entered Homelands, found a friendly welcoming note for me. Then made my way to my room for the week. The room was tastefully decorated. The sheets were clean… Everything was in order – just as I had been led to expect it from the photos, from the reviews.


  1. The ‘product’  must match your description of your ‘product’. Put differently,  the ‘product’ must contain / do exactly what it says on the tin. In this case the picture of Homelands accurately represented Homelands. The decorations were tasteful – just as described…
  2. In the hospitality business the experience (total experience) is the product!  How you treat folks matters as much as the quality of the room you are selling or the breakfast you are providing.
  3. You must keep your promises – if you promise something then you must deliver it. Why? Because the customer is counting on you to deliver it.

First Morning at Breakfast Time

At the agreed time (7:50am) I came down to breakfast. I was greeted warmly and professionally by Erik. What I had asked for, for breakfast, was there: fresh fruits, jars of cereals, apple juice, orange juice, water….

During the process of getting to know one another I learnt that Erik was Dutch. That the night before he had gone to see the new Bond movie with his son…. I told Eric a little about me, like where I lived, why I was in his part of the world….

Then Erik asked me if there was anything else that I needed. Like a cooked breakfast. Or coffee. I told Erik that I was keeping things simple as I was on bunch of drugs due to back and neck problems. And that these medicines has a side effect: constipation.  So, I was being careful about what I did eat and what I did not eat.  Then Erik asked me if there was anything else that he could do for me.

After hesitating, I made my request. I told Erik that I had neck and shoulder pain. That he could help release that pain. And I showed him how to do it – by pressing his elbow at two points on the upper part of my body. Erik told me that this was the most unusual request any guest had ever made of him. And he accepted.  Frankly, I was surprised. After Erik had finished, I expressed my gratitude as I was truly grateful.

Can you imagine me making that kind of a request at a corporate hotel?  What do you think the likely reaction would have been if I had approached a staff member of Holiday Inn, Hilton, Radissan SAS.?  I guess I would have been told it is against policy for staff members to physically touch guests. Never mind press down hard with their elbow into the top of my shoulders!


  1. If the customer selects from a range of options then make sure that you deliver on the selection that the customer has made. No point offering / giving more than what the customer needs e.g. like laying out a cooked breakfast that a customer is never going to eat.
  2. What really takes the customer’s breath away and builds gratitude, loyalty, advocacy, is your ability to do something special (as defined by the customer) for the customer – especially when the customer asks for it.

Second Night At Homelands

One of the most frustrating things I find at hotels of all kinds is that they don’t feel like home. At home, if I need water I can just get some water. If I want some fruit juice I can get some fruit juice. At hotels I am stuck, at best with an overpriced, mini-bar.  And that leaves me feeling like I am being milked for all the milk the hotel can get out of me.  I usually respond by either buying a large bottle of water from a restaurant – which is still cheaper than the hotel. Or by finding a local store and buying it from there and taking it to my hotel room. I have an aversion to being milked!

Not at Homelands. At Homelands there is kitchen and in that kitchen is big fridge. And in that fridge are fruit juices, and water bottles. There is milk. And there are extra mugs….

So when I woke up in the middle of the night and had to take some pain killers and muscle relaxants, I made my way to kitchen and helped myself to the Apple juice. Exactly the kind of thing I do at home. I wake up, I find myself in pain, I walk down the stairs, I find a glass, open the fridge…..


  1. It is amazing how the little things – like being able to get a small glass of fruit juice, or water without having to pay – matter. And how much they matter.  But to understand which little things matter and how much they matter you have to be able to access your humanity. To genuinely have walked in the shoes of the customer – as a normal every day human being rather than a marketer or a process/six sigma guy…
  2. There is absolutely no substitute for kindness / generosity. Stan Phelps calls this Lagniappe.

Second Morning at Breakfast

After waking up and having a shower, I took the time simply to gaze out at the fields, the green grass, the trees, and the horses. Such a refreshing change to staring at buildings, tarmac, and hearing the noise of vehicles on the road.

When I made my way down to breakfast, I noticed that the range of fruits had increased. In addition to melon, and grapefruit there were berries and prunes.  If you don’t know, prunes help with constipation.  Clearly, Erik had listened, used his listening to learn about me, and most importantly acted on his insight into my health and condition.

How did this leave me feeling? I say it again, it left me with the feeling of being at home away from home. Why is this important? Because home is where I feel safe. Home is where I am with people I know care for me. And people I know I can count on for help if I need help.

Whilst having breakfast Erik and talked a little bit more.  I learnt that Erik is Dutch. That he is into nature and conversation. That Erik and Nicola make their own honey…. A human conversation the kind that I am used to having at home whilst I have breakfast.



  1. If if you show up in the correct manner and simply engage in conversation, customers will tell you a lot about themselves, the situation they find themselves in, their hopes and fears, the constraints they are working within….
  2. Insight in and of itself has no value. Value, as experienced by the customer and repaid through loyalty, is generated when you act on the insight in a manner that leaves the customer feeling grateful because your action/s have made his life easier, simpler, richer.

Time to stop. I could go on and on. And my back is beginning to hurt and that is not good.

By writing this I have kept my word. What word?  Upon leaving Homelands for the second and last time, I told Erik that Homelands had occurred as home away from home.  And that I would be writing about Homelands and sharing my experience.

If you are on holiday or on business and looking somewhere great to stay then I thoroughly recommend that you check out Homelands Bed & Breakfast.  I cannot praise it highly enough. And neither can all the other folks that have stayed there – Homelands gets a five star rating on TripAdvisor. 

A la prochaine – until the next time.

On Customer Experience, Brand Values, and a “Sense of Honour”

Let’s start today’s conversation with the following passage:

By strategy, Bourdieu… does not mean conscious choice or rational calculation. The strategies employed by the Kabyle are not based on conscious, rational calculations but on a “sense of honour” that guides complex manoeuvres of challenge, riposte, delay, aggression, , retaliation and disdain.

The sense of honour derives from sets of dispositions that internalise in practical form what seems appropriate or possible in situations of challenge, constraint, or opportunity. Thus, choices do not derive directly from objective situations in which they occur or from transcending rules, norms, patterns, and constraints that govern social life; rather they stem from practical dispositions that incorporate ambiguities and uncertainties that emerge from acting through time and space. 

– Culture & Power, The Sociology of Pierre Bourdieu by David Swartz

Look at the organisation that you find yourself leading or working within and for.  Is there such a thing as a “sense of honour” present in this organisation? If there is then who and what is honoured? Is it the customer?  Is it the humanity of the folks that work in your organisation? Your partners in the value chain? The shareholders? Making the numbers, getting ahead, becoming the largest, beating the competition? VW is not the only organisation – just the latest one to be exposed for what the modern organisation is centred on.

So you have customer experience centred digital transformation vision. And associated programme plan. If you are going about this in a ‘best practice manner’ you have defined the objectives, listed the business capabilities you will need, identified the data and content you will need, the information technology applications (CRM, marketing cloud, e-commerce, CMS…) and the IT infrastructure. Oh, and I forgot, you have a bunch of folks busy on mapping and possibly even redesigning business processes. You may even be enlightened and looking at the people part of the puzzle / architecture.

What about the critical question? The “sense of honour”.  Who is busy generating the “sense of honour” required to genuine show up and travel (as experienced by the customer) as a customer experience centred organisation that consistently does right by customers: like produce/deliver the product you are actually selling (like Apple, unlike VW), like treat the customer as s/he wishes to be treated – with attention, with courtesy (like Zappos or John Lewis, unlike your ISP/telecoms provider),  like create a platform for customers to access critical information and tools so that they can help themselves when it makes sense for them to do so (like Amazon)?


It is at this point that somebody will come up with brand values. Or corporate values. This somebody will state that these constitute the organisation’s “sense of honour”. But do these constitute that customer-experience centred “sense of honour” I am talking about here?

Let’s be straight with one another. You know and I know that the brand values are stuff that is cooked up by the marketing folks usually to differentiate where really there is no differentiation. You know and I know that these brand values are primarily driven for image making purposes. You know and I know that these brand values are seen as fictions outside of the marketing department.

What about the corporate values plastered on mission, values, purpose statements and usually on the walls?  Let’s be straight with one another again: they are empty aren’t they?  The fact is that they are not embodied in the organisation by most of the folks in the organisation. And rarely are they embodied by the Tops that pronounce these corporate values. Most of  us see these for what they are: propaganda, delusion, or simply aspiration.

So what is my point? My point is that almost all of the organisations that I have ever encountered (worked for, consulted for, been a customer of) lack  a “sense of honour”. And certainly they lack a sense of honour that values genuine care and loyalty for the folks that do business with your organisation. What this means is that you can make all the changes you want in communication channels,  technologies, data, and business processes and you are unlikely to attain your desired outcomes: genuine engagement, genuine loyalty. Loyalty is born of sacrifice. Sacrifice does not come easily beyond the family. Which is why tribes and communities (usually numbering in the tens to hundreds) go to great lengths to cultivate a “sense of honour” and practical dispositions attuned to the “sense of honour”.

My advice? If you are the leader and you wish your organisation to be genuinely customer experience centric and call forth loyalty then embody the “sense of honour” that necessarily goes with such a stance.  And work on infusing all the people in your organisation with this “sense of honour” such that this sense of honour become a set of practical dispositions where anyone in the organisation will naturally do what is right for the customer in any given circumstance. If you are not up for this then I wish to highlight one of my key learnings over the last 25+years:

Old Organisation + New Technology = Old Org. + Trauma – Money

Enough for today, I thank you for your listening and wish you the very best. A la procaine.

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.