What if our customers wrote to Santa?

Santa in a chair

A Customer Christmas Experience

It is the week before Christmas and all through the store

Run thousands of shoppers seeking presents galore.

But in the B2B office, few carols are singing;

the email’s gone quiet; the phones have stopped ringing.
 

We have time to reflect; to review – with some cheer? –

When customers bought, or did not, or promised: “next year.”

Some of them stayed, for that, let’s be festive.

Others, they left us, they churned or were restive.
 

Let’s picture a scene. What would they have said

If sending letters to the man dressed in red?

So let us wonder – what’s on their Christmas list?

What would they like? What have we missed?
 

Some savings? Of course, but we think that we’ll find

That customers come to us with more on their mind.

Customers know that what’s often lost

Is value, if you focus only on cost.
 

Innovation, perhaps? Thinking out of the box

Could be the thing that blows off their socks.

Well, we’ll do what we can, but we might only regret

promising things we’ve not thought of yet.
 

Let’s read again their note in the chimney

And learn what tickles our customers’ whimsy.

What’s on their mind? What’s their concern?

What is it they want Santa to learn?
 

Perhaps it’s Big Data? That’s big this year.

But do customers care? In a pig’s ear.

What’s top of their list? What’s top of the stack?

What can we do to have them come back?
 

When you see it, it hits you, like God dropped a bus.

What matters is thinking of them, and not us.

Do what we can to make it about them.

Like: don’t sell a solution if you don’t know their problem.
 

Or using their language, (‘cos jargon sounds funny);

Or saying “resources”, (while they’re thinking money).

It’s the experience, you see: what they feel, what they sense

Is what matters; what makes the big difference.
 

So while we reflect on the things we might say

About 2013 and customers who strayed,

There are things we can do to be sharper and better

Regardless of channel – web, phone, email or letter.
 

First we need to begin – this isn’t new news –

By putting ourselves in our customers’ shoes.

Yes, we can tie ourselves up with journeys and maps

And maybe these might prevent customer mishap.
 

But if we want to do more (and we certainly do)

(Something pragmatic? Perhaps something new?)

Then I have two things that I would like to suggest.

Neither are radical, but don’t get distressed.
 

Both of these work and are shown to be

Helpful indeed towards customer victory.

The first one is simple, but quite hard to try:

It’s getting it right – but in the customer’s eye.
 

It means changing our work and even our brains

To get it right straightaway, again and again.

The second is tough, but it’s a critical need:

For all of our customers, what matters is speed.
 

So let’s resolve, in 2014

To do more for our customers, be they passive, or keen.

Let’s get things right in the ways that they like

And let’s do so quickly, so they don’t take a hike.
 

So, St Nick, from us here’s our letter:

Next year, for our customers, we want to do better.
 

Thank for reading throughout the year. Happy Christmas.
 

(Image credit: Nicklolas Muray, 1958, George Eastman House Collection, http://www.eastmanhouse.org/inc/collections/photography.php).

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Customer experience without competition

Water skiers on the OzarksThe only sustainable competitive advantage

If our business has to compete in the long-term, there are (with apologies to Michael Porter and his chums in the business theory business) really only three ways to do so – and just one that endures.

There’s no point in competing solely on price because that kills margins and can’t be sustained.  And there’s no point in competing just on innovation because sooner or later everyone catches up and no-one, no matter how good, can churn out new technologies on a treadmill forever.

Which is why so many companies now choose to compete on customer experience.  It’s one of the few ways an organisation can offer genuinely sustainable differentiation and protect margins; it makes for more enduring, loyal customers; and it is very effective in building a strong, sustainable brand.

The purpose of customer experience

But most government departments don’t have competitors.  Their customers typically have to use them, whether they want to or not. So does this mean that public sector organisations can ignore customer experience? Or should they, if they want to minimise costs? After all, it’s just another management fad, right?

Quite the opposite. Competitive advantage is not the goal of customer experience – it is merely an excellent side-effect.  Let’s not forget that the main purpose of any organisation is usually to offer a product or (more usually for public sector organisations) a service that their customers value.  If an organisation can offer a good customer experience, this enables that organisation to do what it exists to do – but better.

This applies just as much whether an organisation is selling cars, building houses, collecting taxes or handling planning applications. The only difference is that in the public sector, value to the taxpayer is paramount and the purpose is service, not profit.

The return on customer experience

The benefits of offering a good customer experience have particular resonance for the public sector.  Benefits such as these:

  • Fewer people complain, so an organisation saves on resources it would otherwise spend on handling exceptions and resolving issues.
  • A good customer experience relies on consistent service delivery (how else does an organisation keep its promises?), enabling organisations to benefit from reduced variation, lower complexity and more economical  service delivery.
  • Better and more fundamental understanding of the customer, so organisations learn how to adapt and learn faster and more flexibly.
  • And organisations that offer a good customer experience are usually good places to work, so they keep good people and help them to stay motivated.

The public sector payoff

Any organisation would value such returns. So would their customers.  And for public sector organisations, these translate into two other, distinctive benefits.

First: any public sector organisation that delivers services well, efficiently and in ways which its users value – this  immediately reflects well on the elected officials responsible for it. This political dividend has unique value in the public sector.

And second: we are all invested in public services, as taxpayers and users – so when a public service delivers an excellent customer experience with all the return that we see here, we all benefit.

And that has to be a good thing.

This is slightly revised version of a blog I originally posted at Business Value Exchange; a site well worth a visit.

(Image credit: Ralph Walker, Commerce and Industrial Development Collection, Missouri State Archive, Public Domain).

 

There’s an elephant in the meeting room, and it has many names.

Elephant in the Room - BanksyFor every complex problem, there is a simple solution –

– and it’s wrong.

(H.L. Mencken)

 

Elephants with many names

Let’s stipulate that most businesses aren’t charities.  They exist to make money.

With that in mind, what do the following have in common?

Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Balanced Scorecard, Management by Objectives (MBO), Lean, Cloud Computing, Total Quality Management (TQM), Human Capital Management (HCM), One-Minute Management, Bring Your Own Device (BYOD), Management By Walking About (MBWA), Matrix Management, Activity-Based Costing (ABC), Core Competencies, The Learning Organisation (TLO), Competitive Advantage, Benchmarking, Social Media, Organisation Development (OD), Net Promoter Score (NPS), Scenario Planning, Corporate Social Responsibility (CSR), Web 2.0, Business Process Re-engineering (BPR), Situational Leadership, Management of Change (MoC), Theory of Constraints (ToC), Just-in-Time (JIT), Single Minute Exchange of Dies (SMED), Statistical Process Control (SPC),  Data Warehousing, Projects in Controlled Environments (PRINCE), Big Data, Six Sigma, IT Infrastructure Library (ITIL), Myers-Briggs, Total Productive Maintenance (TPM) and – even – Customer Experience?

That’s right.

They are all management fads: labels for bundles of fashionable ideas, or processes, or technologies all sold on the promise that they will improve the business.

Most are based on some nuggets of common sense.  Some can point to businesses that will testify that they adopted the idea / technology / process / philosophy and things got better.

And yet, and yet…

The money problem

If you remember, we stipulated that businesses exist to make money.  If so, then the rationale for these silver bullets has to be that, in the end, the businesses which adopt them make more money.

In my experience, for most companies, these fads almost always end up being things which businesses do instead of making money.

If you add up the cost of the investment in technology, consultancy fees, corporate effort, time and disruption of attention associated with each fad listed above, across all the companies which have tried them, then I wouldn’t be surprised if the total spend per fad was some way north of billion dollars.

Each.

In some cases, much more.

I would be also be very surprised if the return per fad was anything like as big, even if we only look at those which have succeeded.

And this is before we take into account that most such management initiatives fail.

We need to do something different, to make things better. We adopt one of these labels, dress it up as an initiative and believe that it will give us a solid business return – but most of the time, it won’t.

This is the elephant in the meeting room. We think that doing these things will make our business better.  It’s the other way round: if we need to make our business better we should do whatever helps us get there best, and not just assume that management fashion will be the simple silver bullet we need.

I’m not saying that any of these initiatives are bad things. They almost always are are based on some nuggets of common sense or insight and a few can point to some companies that will testify to the results they achieved.

A hidden law of business

So what is wrong?  I think that what these good ideas into money pits, that they fall foul of one of the hidden laws of business.   Managing a business of any size is so complex, demanding and fluid that  success requires significant intellectual effort.  But this is where the law comes in:

Most people will do anything – including sustained hard work – rather than think.

Thinking about something – trying to work out the right thing to do, or solving a persistent problem, or trying to determine the best way to proceed, or working out what needs to be done if we are to succeed – all of these are very difficult.

This thinking is just hard.  So hard that most companies and most people find it easier to lose sight of the bottom-line returns they are seeking, and focus instead on successfully completing the big tangible milestones which each fad entails.

  • CRM system installed? Check.
    More sales as a result?  …err…
  • BYOD policy in place?  Check.
    Staff working more productively as a result?  Whoops.
  • Net promoter score programme installed?  Check.
    Customers staying with us longer and spending more as a result? Who knows?

It is just so much easier to focus on the deliverable, rather than the outcome.

Outcome-based thinking

How can we beat this problem?

Begin with the outcomes.  Before committing to any of these things – or any other change, we need to list the three to ten things which fit under this heading:

By the end of this activity / initiative / project, we will have..

For example:

  • By the end of this CRM implementation, we will be using it to increase sales revenues by 15%.
  • By the end of this Lean project, we will have applied it to reduce unit costs by 20% .
  • By the end of this customer experience programme, we will have increased customer lifetime revenue by 50%.

Not systems installed but systems used.

Not stakeholders trained, but stakeholders doing.

Not stuff delivered but value achieved.

Once our outcomes are clear, then we can by all means adopt the initiative we like; we just have to make sure that the focus is on the outcome, not the groovy new jargon / framework / system that the consultants are proposing or the technologists are selling.  And if our focus is on the outcome,  we can pay attention to other work we have to do if our project is give us the value we want.

Of course, I may barking up the wrong tree.   So please:  prove me wrong.  Are you implementing one of these fads (or some other)?  Do you recognise this problem?  If so, how have you overcome it? If not, what are you doing to ensure that real value is delivered?

Please do let me know – and good luck.

(Image credit: Elephant in the Room by Banksy, taken by Jdcollins13 and licensed under Creative Commons Attribution 2.0 Generic license)