How about thinking and talking about business in customer terms?

It strikes me that organisations can take a big step forwards in becoming customer centric simply by measuring, reporting and talking about the impact of their actions on customers and the value that customers represent to the business.

Allow me to illustrate this by using a consulting experience at a brand name telco.  One of the things that really matters to customers is how easily, quickly, effortlessly, conveniently they can get a replaced handset if they have an issue with their existing handset.  The functional department that is charged with this task is the Device Logistics.

What do you think the focus of the typical Device Logistics function is?  The focus of the function is, typically, on devices, operating cost and service levels.  As a result management talk about and measure the no of devices that needed to be shipped, no of devices on back order, lead time between ordering and receiving handsets, no of devices shipped, no of devices delivered to the customer address within the SLA, productivity and cost of operations.

Not once did I hear conversations about customers, nor the impact of policy and practices on the customer’s life or attitude towards the company.

Now imagine thinking about the Device Logistics function in terms of impact on customers.  If such an approach was taken then management would be measuring and talking about the following types of matters:

  • How many of our customers have been impacted by our delivery process in the last month?
  • How many customers have we lost as a result of our policies and practices?
  • How much revenue, profit, lifetime value has walked out of the door as a result of these policies and practices?
  • What kinds of customers – Gold, Silver, Bronze, Young, Professional, Older – are we losing?
  • What will it cost the business to replace these customers with new customers so as to replace the revenue, profits and lifetime value that has walked out of the door?
  • How many potential new customers have we lost as a result of the bad word of mouth from existing customers who have been disappointed by us?
  • What is the cost associated with this bad word of mouth?
  • How many customers ended up calling the contact centre to ask questions and/or make complaints about the handset replacement process?
  • What cost did the business incur in dealing with these customers – their questions, their complaints?
  • How many hours did customers spend waiting for us, at home, to receive their replacement handsets?   What is the cost to our customers of this waiting?
  • How can we do away with the biggest cost and inconvenience – making them staying at home all day – we impose on our customers?
  • What would be the impact on customer retention, customer loyalty, as a result of designing the handset replacement process from a customer perspective?
  • How can we engage our customers in the handset replacement process so that we all come out as winners?

Thinking in terms of customers and impact on customers – in terms of customer satisfaction, customer retention, customer loyalty, word of mouth, brand reputation – can be applied to every single function that touches the customer.

My assertion is that organisations will only make the transition towards becoming customer centred, designing and delivering better customer experiences, when the organisation as a whole and silo’s in particular think about operations in customer terms.  Specifically, the impact of operational practices on customer retention, customer loyalty and word of mouth.

What do you think?  Have you seen this in practice? If so where?

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

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

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

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

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

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

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

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

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

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

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

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

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

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