Category Archives: Strategy

Your competitors are not who you think they are

bad_spellers_untie_postage_stamp-p172016310883664861uuftb_216Customers don’t compare the online experience they get from us with that from our competitors. They benchmark instead against the best they have seen, regardless of sector. We have to understand this if we are to use customer experience to help us sell and keep customers.

Don Peppers is one of the pioneers of the customer experience industry. In a recent LinkedIn post, he  tells the story of a bad customer experience a colleague had with Stamps.com when trying to unsubscribe from their service.

The customer horror story, however, was less interesting to me than that he (like we all do) compared this experience with Stamps.com with that offered by another company – and found Stamps.com wanting.

That company was Amazon.

Amazon does not sell anything which Stamps.com sells.  Amazon is not seeking to take customers away from Stamps.com. I would be astonished to find that Amazon features in any strategy document which Stamps.com use to understand their competitive landscape.

In the traditional sense, they are not a competitor.

But when you think in terms of the customer experience, are they a competitor?

Damn right.

Customers do not compare the online experience they get with one company with the experience offered by competitors in the same sector. Instead, they compare their experience with the best experience they have had online, regardless of sector.

If we do not offer an experience  which measures up to the best experience which our customers have had elsewhere, then we will have unhappy customers.

It’s not fair, I know.  Customers are not even comparing apples with pears; they are comparing stamps with books.

This really matters.  Because if we aren’t aiming to be cheapest (and very few of us can, in the long-term) and if our market is crowded with me-too products with pretty much the same features (as in almost every consumer market sector), then how do we compete?

The experience we offer our customers, that’s how. When we make it easier, faster and more pleasant to buy and use our products, we win and keep customers.

If this is how we choose to compete, we need to understand that our ‘competitors’ aren’t our competitors.  As far as our customers are concerned, our competitors are everyone who is offering a service, or a sale, or an experience which follows the same grammar of customer engagement that we do. And if we aren’t competitive when compared with these, we won’t get or keep the customer.

Worse, as Don Peppers is showing, they will tell the World about how unhappy we have made them.

But, as Amazon demonstrates, if we choose to compete in this space, with the right attention and commitment, then maybe we could become the benchmark: and that is a very powerful place to be.

(Picture courtesy of Zazzle.com).

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How to tell if an organisation is serious about the customer experience

Richard Branson serving customers on a Virgin flightThe best way to improve the end-to-end customer experience is to pay attention to it.  This is much less trivial than it sounds. The more senior this attention, the more chance we have of success.

A lot of blather has been written about companies offering a good “end-to-end” customer experience. Most of us can agree that it is something to which companies can, and probably should, aspire. Yet for most companies, it is something which remains resolutely beyond the horizon.  This is not for want of trying.

Most companies begin their thinking about end-to-end customer experience by “mapping the customer journey”,   identifying the things which make it go wrong and putting in things to fix these. This is relatively easy and results in some improvements – for a while.

Some companies (often those infected by consultants) try to redesign such processes to create a coherent whole. They back these changes up with a painful project, like corporate root canal, where they implement new systems (consultants again), have lots of workshops (consultants once more) and (probably) put some posters on the wall exhorting staff to Think Like A Customer, or some such.

Thousands of hours and millions of pounds spent – with, usually, very little long-term difference, because, most of the time, such efforts fix the symptoms, not the real cause, of poor customer experience.

Why do organisations grow up, develop, and operate without putting the customer at the heart of the business? For one reason only: they have being paying attention to other things.  The drivers of the business, the things on which organisations focus day-to-day (and the things which, more often than not, have been the basis of the organisation’s success) have been things other than the customer.

In other words, the organisation, especially at the top, pays attention to things other than the customer and its metrics, numbers, activities and reward systems show this.

Customer initiatives have the best chance of success when the CEO and her top team pay attention to customer performance in the same way, and with the same regularity, as they pay attention to revenue or EBIT. We know they are serious when they accept, for example, a hard customer metric in their bonus package. When they pay attention to the customer as routinely as they do to the production numbers, the rest of the organisation does too.

Inevitably, this means that customer experience improves.

As do revenues.

As do costs.

As do profits.

If we want to fix things for the customer, end-to-end, we need to make sure that the people in our organisation who have overall responsibility for our business, end-to-end, are paying attention to the customer, with the same priority, as the other aspects of the business to which they pay attention.

Otherwise, we are going to find life very hard. Because, when push comes to shove, hard numbers drive out soft.

People have only so much bandwidth and they will focus on those things which organisational behaviour reveals as the most important – those things which get senior attention. And while most organisations claim to want to put the customer at the heart of their business, the things to which the business truly pays attention – the hard numbers, if you like –  push other priorities to the side.

Customer experience is rarely in this top list of priorities unless it has been baked from the start as part of the core ethos of the company. So, if we want our organisation to make things better for the customer properly, the first step is to make sure that the top team really pays attention to the customer.

Get this right, and everything else becomes much, much easier.