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Big Data, customer experience, innovation

Ten customer experience predictions for 2015

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A crystal ball (with a pinch of salt)

It’s the time of year when people make predictions about the coming year. Here are my predictions about what customers will see differently in 2015.

I have based these on nothing more than some experience and conversations with interesting people, so take them with whatever amounts of salt you like.

Privacy will matter less than trust.

Customers will increasingly accept that companies will know more about us than we would like. But in return, we will want companies to prove even more that we can trust them with our data.

Mobile payments won’t fly in 2015

The new iPhone 6 includes the ‘Apple Pay‘ mobile payment facility. It is due to launch in the spring of 2015.

But it won’t have us all pay by mobile all at once.

Why?

Because the customer experience for card payments is still better than the mobile alternative.

Card out, put in reader, type in four numbers, done. Easy.

Mobile out, tap button to wake up phone, find payment app, confirm amount, confirm authorisation again, await confirmation of payment on phone, give up, take out cash…

And that’s not all. Not enough shops will take mobile payments, but they all take cards. They will need a compelling reason to change.

And, even if we want to pay by mobile, with dozens of payment apps available, the chances are that a given shop won’t take the specific app that’s on our phone.

As Google and many others have found, and as Apple is about to find, the business of payments is hard. This one is going to be slow, people.

Our buying experience will start to be simpler and more relevant

Want to buy something? There’s too much choice.

Any major decision – holiday, car, house, furniture, white goods, television, PC, phone, school – now needs detailed online research, investigation of reviews and trawling of social media.*  It’s so much work that that buying stuff now feels like it costs as much in effort as our research saves in money.

Many sites, such as those in the travel industry, can ask us for some preferences to simplify our journey by filtering choices, it is still a chore.

It is only a matter of time before some sites simply use our social identity, online behaviour, some statements of preference and history of other purchases to predict the best purchase solutions for us and offer a focused choice that’s right for us, based on who we are.

More than a search based on budget, distance from home, type of hotel preference and preferred flight times, this is a search based on what we genuinely want and like, evidenced by our behaviour.

This is, I believe, the kind of thing that will be enabled through the data gathering and machine learning capabilities of facilities like Google Now or Amazon Echo.  I think we will start to see these services being offered in 2015.

Before long, we won’t be typing in “…washing machine reviews…” when we want to think about replacing our white goods. We’ll simply muse out loud, in our living room:  “Alexa?  What washing machine would be best for me?”

We will start to see fresh food delivery online at scale from non-grocers

Building a distributed, refrigerated real-time supply chain to distribute fresh food is expensive and difficult. This has acted as a major barrier to entry for online players. It has kept traditional grocery supermarkets in the game and let them sell us all the other household stuff we need routinely.

But Amazon are starting to trial fresh food delivery and many consumers will begin to use them for their shopping. I think we will start to see the grocers’ monopoly on our weekly food shop starting to erode in 2015.

At least one traditional supermarket will experiment with a alternative models

Of course, traditional supermarkets are no mugs. They will experiment with new ideas to ‘lock in’ our weekly shop and keep it away from online pretenders. Tesco already have a subscription model for online delivery charges. I would be surprised if they, or their competitors, didn’t come up with an alternative. A single monthly subscription that delivers a weekly food shop, for example?

Health insurers will offer discounts for customers to upload their health data activities.

This one is, I think, already happening. Wearables, and the health monitoring facilities offered by the iPhone 6, all gather data about our long-term lifestyles.

Health insurers are beginning to incentivise us to upload this data to the cloud. Health insurers will analyse this data and give us bespoke cover at tailored premiums. And we will like it. (unless we’re fat, or sedentary, in which case our premiums will shoot up).

Wearable tech will cause at least one Big Data / privacy scandal

Wearables are probably the first tech innovation designed from the ground up to enable ‘Big Data. Just by wearing a watch or wristband, our movements yield long-term telemetry data.

Where we go, what we do, who we meet, what we are interested in, when we do things, how we get there, what we buy, how we pay and who we tell – this so-called ‘digital exhaust’ trails behind us as we live.

This data is so complex, so large and so intimate that it will not be possible to protect it fully, certainly not at the start. Sometime in 2015, we will have the first leakage of such data and what it will reveal about what is known about us will be scary.

Buyers of customer experience management software will get wise to the idea that there is no such thing

The notion of customer experience has become polluted by vendors selling ‘customer experience software’. There ain’t no such thing.

Leading, managing and operating an organisation to offer a good customer experience is not about software. It is a matter of principle, strategy, practice and attention. I expect that more companies will understand this in 2015.

Banks will claim to be customer-centric but scandals will continue to disprove this idea

Banks will continue to try and show that they have genuinely changed their stripes. That they have,learned the error of their ways and are driven by the interests of their customers.

But I fear that this hope will founder, for two reasons. First, a typical bank IT system is a messy legacy stack that is hardwired around products, not customers. These systems are too big and too complex to change without eye-watering expense.

Second, the majority of banks continue to reward their people to focus on short-term revenues for the bank, regardless of the interests of the customer. Because these rewards are so big, they will continue to distort banker behaviour away from the customer.

This toxic culture is so ingrained that it will take a generation to fix – so while I have little hope of customer-centred progress in 2015, I feel sure that more banking scandals will emerge.

Some brands will begin to function as marketing algorithms

The lines between ‘pure’ marketing and customer experience continue to blur. Marketers have been trying for years to personalise their messaging to individual consumers. I think this year, we will start seeing the first marketing content, bespoke for individual customers, automatically generated by what marketing systems know about each customer.

What will make these communications different? They will be driven by specific parameters that properly reflect the intent of the brand.

The content of marketing emails may be different, depending on what else they know about us. (Depending on the ethics of the company, this could  be much more than just the information we gave them when we opted in for their marketing – assuming we did at all).

While the content of all these emails may be different for EVERY customer, each will reflect the presentation, tone of voice and content of the brand. The brand will have become an algorithm, driving content.

What are your predictions?

So these are my predictions for the year. Things will, I think, get better in incremental ways for the customer as more companies recognise the competitive advantage this gives them.  We’ll see a few new things, and some ideas will fail (and that’s ok, failure is the overhead of innovation and the cost of progress) and a number of things will surprise us.

What do you think? What do you predict customers will see differently in 2015?

*The link takes you to a cool interactive tool by Google that shows how the purchase journey varies for customers in different market segments and countries. Fun to play with (if you like that kind of thing).

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customer experience, innovation, Stuff I like

Five customer experience lessons from fringe theatre

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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).

customer experience, customer strategy, innovation

Clayton gets it right

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Clayton_Christensen_World_Economic_Forum_2013In this interview, Clayton Christensen spells out some ideas which are so right that they almost have the force of Laws for Business.

Clayton Christensen is the godfather of innovation. His books define how people think about innovation, education and disruption (and more recently, values).  Strategy + Business, the management journal from Booz and Co., published a great interview with him here.

In it, he says two things that ring so true that I think they deserve to become laws of business, especially when looked at through a customer lens.

The first concerns decision-making:

“When you make a decision based on expediency—because you think you can get away with paying only a smaller, marginal cost—you always pay the full cost in the end.”

He’s talking here about our personal lives, but it applies in spades in the customer world.  The contact centre which drives agents to keep calls as short as possible for cost purposes almost always pays a higher eventual cost in terms of customers calling again, customer dissatisfaction, agent retention and customer churn.  The website which skimps on early customer testing during the design phase will almost certainly have to spend a fortune in redesign once it goes live and customers don’t like it.

So, if I may, Christensen’s First Law:

If you skimp on things early, you pay much more later. Every time.

The second quote is more substantial, but even more fundamental:

“You might also ask, “What is the job to be done?” Every company needs a robust theory of the job that it’s facing. At the fundamental level, most jobs don’t change very much, even though the technology does. When he was the emperor of Rome, Julius Caesar had to exchange messages rapidly with his far-flung governors. He used horsemen with chariots. Today, we have FedEx, but the job hasn’t changed. If you’re focused on the job that has to be done, you’ll be more likely to catch the next technology that does it better. If you frame your business by product or technology, you won’t see the next disruptor when it comes along.”

Who is doing “the job?” The customer.

And so to Christensen’s Second Law:

Focus on the job to be done or you’ll be beaten by someone who does. 

It’s a short interview, but full of good things.  Read and enjoy.

(Tip of hat to Petrina Alexander, who first drew my attention to the article).

(Image credit: Remy Steinegger, World Economic Forum under Creative Commons License)

customer strategy, innovation, Stuff I like

Seth nails it

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Sinclair C5Only when we build for our customers will they come.

Seth Godin’s blog offers profound, sparse and almost haiku-like wisdom about the new marketing.  If you don’t follow him yet, you should.

In this post, Choose Your Customers, he explains, in very few words, what in my experience is the most common problem leading to product and market failure: when we begin with the product, not the customer.

When we begin with our great product and try to sell it, we are doomed to fail.  If we want people to buy what we do, we have to begin instead with what they need and want, and build (and sell) (and service) from there.

Simple, really – but so easy to forget in the daily muck and bullets of business.