Tag Archives: Customer experience

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).

 

How we train our customers to go to our competitors

Angry customer

A customer complaint is a favour

Customers complain about every business.

If we are lucky, customers complain to us.  Then we can put things right, help fix their problem and learn things which make our business better.

If we are not so lucky, our customers complain to their friends, or to people they meet, or to their followers on social media.  The result? Our reputation is damaged,  we  lose revenues and we open the door to competitors to show our customers how much better they are.

We train customers not to complain to us

Why don’t customers complain to us? Because we train them not to.

Huh?

Let me explain some of the ways we do so:

We make it hard to complain
Many organisations seem to do their damnedest to make it hard for customers to complain.  Typically we do this to save money.  Most of the time this is a false economy.  Some examples:

  • We don’t make it clear to customers how they should communicate with us.
  • We make it hard for customers to contact a real person.
  • We require customers to fill in forms.
  • We require them to have their account number / service id number / customer reference number before we can help them.
  • We make them wait on hold.
  • We push them to use email (which is slower) and hide our service telephone numbers.

All of these measures stop customers complaining. Result? They (and their sales revenues) go elsewhere.

We are slow to respond
We seemed to move fast enough when we were selling our product to the customer, didn’t we? So why don’t so many organisations respond as quickly to a complaint? Sure, we may have excuses:

  • Perhaps we don’t want to talk to them before we have sorted everything out.
  • Perhaps we are having trouble working out who should be dealing with the complaint.
  • Or, perhaps, we don’t know who in our organisation has the job of keeping the customer informed.

Customers don’t care why we’re slow.  They just want it fixed – NOW. If we don’t show the same sense of urgency as they are feeling, we are showing that we don’t care.

When a complaint disappears into a black hole, we cannot be surprised if we have lost the customer by the time the complaint emerges.

We respond in ways which do not respect the customer
(Warning: linked article contains profanity)

Customers making a complaint are unhappy.  They are often angry. Often, this is the fault of something we have done or failed to do.  And they have bought things from us in good faith.

At the very least, we should treat them with respect. What does respect for the customer look like?

  • It means listening to the customer; showing that we have heard them.
  • It means we don’t make them repeat themselves.
  • It means we keep our promises  – to look into their problem or to speak to a colleague, or to put it right.
  • It means we don’t make promises we can’t keep.

And, above all, it means treating the customer as a person, and treating them as we would want to be treated.

We treat the customer as a suspect
All too often customer services go wrong because they have been designed from the outset to treat the customer with suspicion.

The result is a customer experience based on one or more of these assumptions:

  • We haven’t made a mistake, you have.
    “No-one else has complained.”
  • Our products aren’t stupid, you are.
    The instruction on paragraph 6.4.2 of the user manual is quite clear: to restore the service you have to hold the product upside down and press reset button on the underside for between 4 and 7 seconds. You mean haven’t done that?
  • We think you’re trying to cheat us.
    Yes, I know that this is our product and it shouldn’t be broken like that, but unless you have your receipt we can’t help you“.
  • We think you’re lying.
    The system can’t crash like that. Are you sure that’s all you were doing?”

Occasionally, of course, customers do behave badly; but if we start from here, the experience we offer our unhappy customers is very likely to make them feel worse.

Even if we fix the problem, we are likely to lose the customer.

It is much better to think about helping customers on the assumption that they are correct and that they have a valid reason for complaint.

After all, something has  made them want to get in touch, so something about what we are doing must be wrong.

Moreover, a complaining customer is one who is engaged – isn’t that what most of our companies want? Engagement with the customer?

Why not begin instead by designing our service operation from the assumption that we want to help people?

Then, after we have done this, we can put in place some reasonable safeguards, just in case the problem really is on the customer side.

But let’s stop doing it the wrong way round.

Think afresh about complaints

We need to think about complaints differently.  A customer who complains is giving us a gift.

They are giving us another chance to get their custom; they are giving us a chance to restore – or maybe enhance – our reputation; and they are giving us a chance to learn from their experience to make things better for others.

It’s a gift we need to be better at taking.

(Image credit: Lythia Scott Eiler, US National Archive)

Five customer experience lessons from fringe theatre

Stage set of The Bevellers, Citizens Theatre, Glasgow, 2007

The fringe of experience

A long time ago, I directed a range of fringe theatre productions.

As a training ground for management or innovation, it could not be bettered. Consider what we had to do: select a cast and crew, motivate them around a vision, handle multiple egos under stress, capitalise on a diverse range of talent of every sort, generate and build on new ideas, conduct marketing, PR and sales campaigns and deliver something which we hoped would be wonderful.

And all by a fixed and imminent deadline: first night.

A Brazilian challenge

One production required that we interrogate a reformed murderer in a Brazilian police cell, have a dinner party in a Sao Paulo penthouse, attend a US evangelical revival at a jungle plantation, and have helicopter gunships attack a native village in the Amazonian rainforest.

Did I mention this was fringe theatre?  Our vision may have been limitless but our budgets were trivial. And so we struggled as the scale of our vision foundered on the rocks of penury.

A change in perspective

In first weeks of rehearsal, we focused on the script and tried to think of ways of making the production real.  But we got nowhere.  The cast was frustrated, the crew even more so.  People were fractious and unhappy.

First night loomed like an iceberg in the night, getting ever closer.

Then, in a blinding flash of the obvious, everything became much easier.

What was different? We stopped thinking about making the production real.

Instead, we started thinking about the experience which we wanted our customers, the audience, to have. What did we want them to feel? To think? To take away?

Thinking like this, from the audience in, rather than from the production out, unlocked our creativity.  Suggestion, not realism, became our driver.

  • The prison cell became one man lit by a single light in the darkness, shining through bars.
  • We painted the black interior of the studio theatre – set and auditorium – with foliage and vines like a jungle so that the audience entered the rainforest as soon as they came through the doors.
  • We placed the dinner party table on a dais in the middle of the stage and lit the background dimly so that the rainforest was only hinted in the shadows.
  • For the plantation, we lit both the dais and the rainforest, placing it in the jungle.
  • And we turned the lights of the helicopters onto the audience and played the sound of machine guns with the bass turned up to insane levels so the audience heard gunfire through their ears and felt it through the floor.

Total cost of the set? £200.

We opened on first night with a slick, professional production that was very well received.

Innovating success

Five lessons from my theatre experience have stood me in good stead in business and innovation ever since.

  • The greatest creativity comes from the greatest constraints.
    Three things govern all projects: time, cost and performance.  If time is fixed and costs are limited, then the only way to achieve breakthrough performance is through creativity and innovation.  Having limits drives creativity.
  • Think from the customer inwards, not from the product outwards.
    We only got traction once we started thinking from the audience inwards.  Our only arbiter of success is the effect on the customer, not the features of our product. What do we want the customer to think, to feel, to take away? Having these as our goals frees us to be creative.
  • Recruit for attitude and energy.
    We chose people for our production not only for their talent but for their enthusiasm and willingness to try.  We only succeeded because all of us – cast, crew and production – contributed to the creative process. As a result we generated many more ideas than we could use, so we could pick the best ones.
  • Leadership is about trust.
    The Director may have a vision for a show, even if s/he does not quite yet know how this vision will be realised.  The Director has to trust the cast, crew and production team to come up with good solutions to the many, many unanswered questions with which any production begins.   They in turn have to trust the Director to make the right decisions about which ideas will work. And it is only by trusting each other that they find ways to make them work.
  • Nothing drives creativity more than urgency.
    First night is a fixed and unforgiving deadline.  Such deadlines offer an imperative focus for a team.  Knowing that a deadline is real, and that it matters that the deadline is met, drives the delivery of new ideas better than anything else.

In my experience, when these drivers have been in place, I have only ever seen business innovation projects succeed. Where I have seen innovation failure – or deliver mediocrity, which is worse – one or more of these factors has been missing.

Always.

How about you?  If you are innovating for customers, do you recognise these? Let me know what you think.

(Image credit:  Blurredyvonne at en.wikipedia, under the Creative Commons Attribution-Share Alike 3.0 Unported license).

How to do customer experience: 3 ways to beat the grumps

Grump Street

Beware of the Grumps

When we want to change anything in an organisation, we will meet the Grumps. Grumps are colleagues who appear to support the project (and who may actually believe that they are acting in the project’s best interests) but whose presence is toxic to success.

The most telling sign that someone is a Grump is to note their effect on the energy of others.

If their presence adds to the energy of the team – if they are ‘radiators’* – then they are probably not Grumps.

If, however, their presence sucks the energy from the room – if they are ‘drains’ – we need to be careful.

How they speak is often a giveaway. Grumps are people on the ground who reveal themselves in meetings and emails and water-cooler conversations when they say things like:

“…I’m not saying this is a bad idea, but…”

“…We’ve tried this already and…”

“Let’s be realistic, here…”

“…we have to be careful not to throw the baby out with the bathwater…”

Or (as I have genuinely heard in more than one company):

“…we have to be careful not to trust customers too much…”

…and similar statements which have the facade of reason but really reflect fundamental antipathy.

Grump damage

Grumps slowly strangle customer experience projects.

They raise seemingly legitimate objections which are never about the intent of the project, always about the implementation.  Before long, the team is spending more time and energy managing concerns raised by Grumps and less in delivering the project.  Slowly, imperceptibly, Grumps force us to move our focus away from making things better for customers to trying to keep the Grumps happy.

And so the project fails – or more typically, fades away, as the effort needed to deliver something good gets brought down by the drag of managing the Grumps.

How to beat the Grumps

These three steps can help us beat the Grumps:

  1. Get them off the bus**  We don’t let a Grump be a member of our project team. It doesn’t matter how technically or managerially skilled they are, the drain on energy and time will not be worth it.  Much better to work with less-skilled colleagues who are radiators with the energy to succeed than let Grumps drain everyone’s momentum.
  2. Don’t give them a veto  It is a mistake to seek a buy-in from a Grump (or anyone else for that matter) unless their approval really matters to the success of the project.  For if they object, as a Grump will, we now either (a) divert resources and time to overcome their objections or (b) ignore their objections and go ahead, alienating them even more.  And if their approval is not needed, why did we seek it?  (Sigh: So many companies get this one wrong).
  3. Surround them with success  When we change to make things better for customers, the Grumps come last.  We begin by making the changes work with colleagues who are prepared to give them a go, ignoring the Grumps.  Once we have proven that the changes make a difference, then we make it work with the Grumps.  Grumps seek support for their belief that the project won’t succeed.  Proven success defuses such support.

Delivery de-Grumped

Good customer experience projects are all about leverage. They seek the places and strategies which yield maximum results in the fastest time. Grumps kill leverage, by forcing us to consider their objections instead of the customers, slow us down by distracting our attention and diverting our resources, and kill our projects by slowly sucking out our energy and momentum.

But if we can identify Grumps early and adopt the right practical strategies to prevent the damage they can cause, we remove one of the biggest barriers to customer experience project success.

Have you had the misfortune of working with Grumps?  What Grump warning signs have you seen? Let us know in the comments below.

*The idea of ‘Radiators’ and ‘Drains’ comes from Julian Fellowes in his book, Past Imperfect. I came across it cited in an article in Gretchen Rubin‘s blog, The Happiness Project.

**’Getting them off the bus’ is a CEO strategy recommended in Jim Collins’ excellent book, From Good to Great (p.56)

Image credit: David Stowell, licensed for reuse under the Creative Commons Attribution-ShareAlike 2.0 license.

Radiator image courtesy of Dan / FreeDigitalPhotos.net

Drain image courtesy of Winond / FreeDigitalPhotos.net

4 pillars of customer experience

PIllars of Creation, Large Magellanic Cloud, NASA

Four pillars

I set up MikeAndTheCustomer to help companies to make things better for customers.

Four principles which would drive what we do here.  I consider these to be the most important factors in shaping the customer experience.

To me, they pretty much describe the whole customer experience ball game.

  • Do what matters.
  • Do it right.
  • Do it fast.
  • Do it honourably.

Let me explain why I chose these principles to guide what we do.

Do what matters

In my view, no matter what business any of us are in, the customer experience we offer is determined by what our customers value and how we choose to address these.  These are the things that matter. Some examples:

  • If customers value getting in and out of a grocery store fast, then this speed of purchase matters to the customer experience
  • If customers value having a chiropractor talking with them to understand their issues, then perhaps understanding the customer matters more to the customer than speed.
  • And if hungover customers are buying their first coffee of the day, then maybe a quiet transaction with minimal conversation matters more to them than a cheery shop assistant who loudly wants them to have a great day with a bright smile.

This principle means not trying to make every customer experience brilliant, or memorable. It means instead paying attention to those that make a difference and figuring out how make these good for the customer.  And, after all, isn’t this what motivates many of us – to make a difference?

Do it right  

Whatever we do – buy, sell, deliver, support – we have to do it right.  Who determines what is  right? The customer.  Our customers are the arbiters of what we do, and if we do it right, we deliver the value which they expect.

This means that when our customers change, or evolve, or want new things, we take the trouble to learn with them so that we continue to do it right.

To do so, we have to be with our customers, learning with them, and about them, as much as we can.

Doing it right also means doing it as efficiently, consistently and systematically as possible.  That way we minimise error, we minimise costs, we maximise speed and we maximise the ability, as we grow, to have colleagues do it right as well.

Do it fast

I honestly believe that speed is the single most important factor in turning customer experience into a competitive advantage.

If we can deliver what the customer wants, instantly, then that means we can impress the customer with our service, we can find out from them straightaway if we are on the money and if we are not, we can fix it immediately.

The speed with which we deliver is the speed at which we learn.  The faster we do both, the better we will be, and the better will be the customer’s experience.

Do it honourably

This one needs a little more explanation..

I wanted a way a capture the spirit of good customer experience that did not involve telling stories about the virtues of  Zappos or Nordstrom or John Lewis.  Unless we work for one of these paragons of customer service (or, sometimes, even if we do) the effect of such stories is just to make the reader feel guilty that they aren’t doing better

The more I thought about it, and the more I recalled the companies I knew who really try to make a difference for their customers, the more I realised that the essence of good customer experience is about one thing. It is about being honourable.

What do I mean by honourable?  I mean this:

  • Honourable is about good manners and courtesy.
  • Honourable is about only making promises we can keep, and keeping them – as people used to say, it is about keeping our word.
  • Honourable is about doing our best for our customers (and our colleagues, and our suppliers).
  • Honourable is about being honest about what we will, and what we won’t, do.
  • Honourable is about respecting our customers, our colleagues, our suppliers and our competitors.
  • Honourable is about being proud of what we do, about what our colleagues do, about what our company does and the experience our customers receive.
  • Honourable is about caring when things don’t go well and doing our absolute best to put things right.
  • Honourable is about admitting we got it wrong and saying sorry – and making sure that it won’t happen again.
  • Honourable is about celebrating when our customers, our colleagues or our suppliers succeed.
  • Honourable is about selling honestly and pricing fairly.
  • Honourable is about helping.
  • Honorable is about holding ourselves to high standards because they are the right things to do.
  • Honourable is about aspiring to be better, all the time.

Honourable offers the key test when we think about doing a new thing: is what we are thinking of doing, and the way we are thinking of doing it, honourable?  Unless it is, then the answer is simple: we should not do it.

I believe that an organisation which follows these principles cannot help but offer a great, trusted, customer experience. What is more, they will continue to do so as customers, markets, technology and people change.

But this is just me.

What do you think?  Do you agree with me?  Or is there something I’ve missed, or with which you disagree?  Let me know.

This is important to me, and I would really value your comments or thoughts.

Thanks.

Mike

Image credit: The Pillars of Creation in the Large Magellanic Cloud, NASA

Sports Direct: the Ryanair of the High Street?

Sports Direct store in Crown PointPile ’em high, sell ’em cheap

Ian Golding, the customer experience consultant has an enviable CV and an excellent blog (which I strongly commend). Last month, he posted a great article about the customer experience offered by Sports Direct, a UK budget sporting goods store.

The point of his post was that Sports Direct offer a poor customer experience because, in effect, their goods are so cheap the customer experience doesn’t matter.

Ian also suggests that Sports Direct are effectively playing the same role in high street retail as Ryanair play in air travel.

A conscious choice

As regular readers of this blog will know, I have written about the Ryanair customer experience here and here.  I think that there may some significant differences in the ways in which they think about the customer experience when compared with Sports Direct.

I suspect that the biggest difference is that Ryanair understand the things which make the biggest difference for their customers.  As a result, they manage their customer experience to be good along a very few dimensions (on time, seen to be low-cost) and explicitly limited in others (no refunds) in order to to support its business model.

Sports Direct, however, appear not to manage the customer experience, but instead to allow it to be an unconscious side-effect of their low-cost operation.

Is simply cheap sustainable?

Because they seem to compete solely on cost, Sports Direct may be vulnerable to another company offering a similar cost proposition with a better customer experience.  Ian muses if Sports Direct’s low-customer-experience is sustainable in the face of new competition such as that offered by French sports shed operator Decathlon.

Ryanair, on the other hand, I don’t think are so vulnerable to attack on this front.  Two factors argue for this.

The first is that Ryanair actively manage their customer experience and know which aspects of the experience make the biggest difference to their customers.  As a result, if they needed to dial elements of the key parts of the customer experience up or down, I am sure they could.

The second factor is more pragmatic. As I mentioned in my post, Ryanair: Kings of the Customer Experience, Ryanair compete as a low-cost airline because their business model is ruthlessly designed round the limited customer experience they choose to offer. Other operators do not seem to have the single-minded strategic will to make similar choices – and so they live with business models which are intrinsically more expensive to run.

What you pay attention to, you get

The takeaway, I think, is this:  every business, whether it thinks about it or not, offers their customers an experience which reflects the things to which the company pays attention.  If a company focuses solely on least cost supply and appears to pay little attention to the customer experience, then customers get an experience akin to the ‘dark cave’ which Ian describes as being offered by Sports Direct.

Such companies are vulnerable to competition from others which do pay attention to the customer experience and design their low-cost operation around the experience they actively choose to offer.

In short, if we don’t pay attention to customer experience in the boardroom, we shouldn’t surprised if, in return, customers stop paying attention to us.

Image credit: Betty Longbottom under a Creative Commons Attribution-Share Alike 2.0 Generic license.