Lots of companies make the mistake of believing that just creating an online version of your services is enough to minimize costs, increase ROI and expand your market share.  What they forget is that bad implemented solutions (or weakly integrated channels) can hurt the customer experience more than the lack of service in the first place.

Today I experienced an attempt from American Taxi (americantaxi.com) to offer an online service with a process so loosely thought out that is leading to the “Perfect Storm” of bad customer experiences.

Being a satisfied American Taxi customer for the past 4 years, I did what I always do when in need to schedule a Taxi to the airport:  I call the number I have stored in my Cell Phone contact list and provide my on-file information to the attendant.  This time a new offering deviated me from my usual process right on the first step…

Here’s a description of what happened:

• I call the number and get a very long automated message announcing the availability of their new online service and  enticing me to use the site instead of the phone to order a taxi.

Hmmm…  Interesting… I didn’t know they had a way to do that online.  It may be useful to have it all set up so I can use it later if needed…  Let’s test it!

• I immediately hang up the phone without hearing any other options and type “www.americantaxi.com” on my browser.

Not very pretty.  Looks kind of amateurish, but the options are clear, no doubt what I need to do… Let’s move on!

• I click on “Order a Taxi” and then “Sign Up“
• I enter my phone number and click “Continue”
• The system shows me my Last name and address and 2 buttons: “This is me” or “This is NOT me“

Not bad…  Very easy and simple to use… The displayed information is a bit weird, part of the address (City, State and Zip Code) is truncated showing only the first letter and my last name is slightly misspelled…  Well,  despite small errors, this is clearly all my information so no big deal, I can always fix the information after I  register…

• I click the “This is me” button
• The systems returns a message “User Already Exists” accompanied by “If you forgot your password, please click here“

OK.  So it’s saying that I already have an online account (despite the fact that I never created one) with no help or hint on how that could have happened.  My only option from this screen is a link to retrieve my password, so let’s try it! (Who knows, maybe they created the account automatically and this is the only way to reset the password for first time users… hmmm…)

• I try the “forgot your password” link
• It leads me to a page asking me for my email

hmmm… How can they have my email if I never registered before.  Well, maybe I provided it over the phone at some point although I can’t remember anything like that.  Well, It won’t hurt to try and now I invested way too much time on this to give up…

At this point it is pretty clear to me that the process is flawed and that they’d probably migrated their call-center database to the internet without considering how the lack of user information in one system would affect the customer experience flow online.  Or, even worse, they created the new feature online and integrated their systems without mapping how their customers would navigate from one channel to the other and how they would interact with the new service for the first time, thus not planning accordingly for it.

Even though I know what is going to happen from this point on, I am now curious to see how far the problem goes, so I shut off my technical side, put my “User Tester” hat and go ahead as a regular internet user would.  I try all my emails and keep getting the same expected answer:  “the email provided could not be found”

OK… Nothing else I can do here.  Better get some help”

• I grab my cell phone and redial American Taxi’s number.
• The automated system AGAIN recommends me to use the website (I’M TRYING!!!!) and instruct me to press 1 to never hear that message again.  I press “1″ immediately and the system forwards me to a live person.
• It takes me a while to explain what’s happenning and even more to understand what the Call-Center rep is saying to me.  He  seems to have no idea the website exists or how to help me.  He gives me the company’s main number (the one I had just called) and asks me to call and press the option to talk to a representative (which is what I had done).

Ok.  They probably outsourced their call center operations to India, since the guy on the other side of the line has an accent so heavy I can hardly understand, but that is not an excuse for not knowing about the service that their own system was trying to sell me…
Disclaimer: I am Brazilian and also have a thick accent that a lot of people have trouble understanding, but then again, I’m not working on a call-center trying to explain to users how to register on my website.

• I decide to test my luck and call again, hoping to get some other person that can help me.
• The automated system YET AGAIN recommends me to use the website and instruct me to press 1 to never hear that message again…  I press 1 AGAIN and once more the system forwards me to a Call-Center representative
• I explain my situation to this new guy (apparently in India again, with a slightly heavier accent than the first one), and he tells me that I am having this problem because I already have an online account that was probably automatically generated at some point by their system, but without any real information besides my last name, phone number and address (which is exactly the information I provide every time I schedule a taxi pick-up).
• I ask if it’s possible to delete this account to create a new one or to provide me with the system generated login and password so I can go online and fix the information myself.
• He says he cannot help me since I am calling from my cell (which is not on file) and asks me to hang up and call again from my HOME phone number (the number on file).

I’m getting tired and very stressed with all these steps…  I can understand the need for security that forces me to call from a number the system can recognize and allow them to accurately identify me before providing access information to the site, but I don’t think any other customer would have tried that hard!!  I’m very persistent…

• I hang up,  grab my home phone and call the number again.
• SURPRISE, SURPRISE! The automated system once more recommends me to use the website and instruct me to press 1 to never hear that message again…  Once more I press 1 and this time, instead of forwarding to a live person, it goes through a never ending stream of options.  I press 7 for help.
• Another guy in India answers with heavy accent (I swear this was the worst one of all) and asks me something I really couldn’t understand.
• After repeating myself a few times (and asking the guy to repeat himself a few more) I was able to explain the situation.
• The guy first recommended me to do what I had already done (try to sign up), then to use the “Forgot your password” (which I couldn’t) and finally asked me to just login because I already had an online account (that’s what I’ve been trying to explain all along!!!).
• After a few more communication misunderstandings, He finally told me that my both my login and password were in fact my phone number

Wait… What???? All this security procedures and hoops they made me jump when their system generated login and password are the dumbest and most unsafe credentials EVER??? I don’t know what to think anymore…

Any perception I had from their 4 years of good service is being quickly erased and it’s all downhill from here.

I take a deep breath and continue…

• I ask him to wait on the line until I try it.
• I try.  It didn’t work…
• The system returns “Invalid Username or Password“
• I tell the guy what happened and ask him if I should maybe add dashes or dots to the number for it to work.
• He says: “hmmm…  Just a moment please…” and HANGS UP!
• My phone goes mute for a second and then I hear the automated system telling me “You’ve. Been. Disconnected…  Goodbye.“

Ok.. Now I really give up!

No need to say that, for all purposes, I am an unsatisfied customer who is never going to use their service again and has vouched to tell everyone how much their service sucks… (even though my problem wasn’t with their core service but with an extra feature I never thought to use until then)

The real issue here is:  By advertising a new (simpler) way to do something at the exact moment I intended to do it, they created both the need and the expectation of the service in the customer’s mind.  From that point on, my experience is defined by their PROMISE of an improved experience and not by any past good experience.

Past good experiences will fill up users’ reservoir of goodwill and allow you to make a few mistakes without jeopardizing the whole experience, but no amount of goodwill lasts forever and badly planned experiences can start a chain of events that will burn your users’ goodwill as fast as a Hummer burns gas.

If you don’t have the budget to correctly plan and implement the user experience, you are better off not offering any new online feature at all.  And if your competitors are starting to do it and you are afraid of being left behind, then MAKE THE BUDGET.   Either they will be successful and increase their market share (at the cost of yours) or they will fail to provide a good experience after creating a new demand and expectation in their customers’ minds.  Either way the bar will be raised…

…Does anyone know a good taxi company to recommend me?

Everything changes all the time; it’s just the nature of our modern world.  The real problem is not how fast things change but how out-of-control we usually feel for not knowing where all these changes will eventually lead. We are all afraid of missing the boat for the next big thing.

Social Media, Netbooks, multi-touch devices, mobiles, streams, waves, web2.0, cloud computing, the Wii and motion detection, not to even mention all the new startups with crazy ideas bringing even more new ways to see and use the internet.  As an early adopter of technology of all kinds, I know more than 90% of those new ideas will be dead in less than a year, but any single one that survives will change how we experience the internet in ways that we cannot even try to predict.

Why does that matter?

Because even though we cannot keep up with technological evolution, we can (and MUST) keep up with users’ expectations and that will give us an insight on developing behaviors.

A few weeks ago, a friend of mine (@ginidietrich) wrote a blog post on the “Death of the Corporate Web site” based on another post from Mashable (Is Social Media Making Corporate Websites Irrelevant?) that created a lot of debate. All of this got me thinking that the key point here is not whether Corporate websites are going to die or not, but how they will need to evolve to catch-up with these new developing user behaviors and expectations.

What WILL change?

1. Information Streams – In the next few years, users’ online behavior will quickly shift from “surfing pages in a website” to “surfing streams of interconnected information.”

It might look like it is the same thing, but it changes drastically how users experience the web and navigate through sites. Traditional information architectures, that guide users through your site’s in an orderly fashion (sequential) will not be capable of predicting or controlling the user’s navigation. Users will come from anywhere and land anywhere in your site.  All pages will be landing pages and will have to fully support the user’s objective, lead them to a call-to-action and, probably, be customized to tell a consistent story every time.

A site will become more than just a collection of pages under a URL. It will encompass every digital manifestation of your brand and services wherever they reside in cyberspace (Facebook pages, Twitter feeds, posts, comments, reviews and maybe even emails if Google has its way with the new “Wave”).  With this behavioral shift, Homepages may lose most, if not all, of their importance.

2. Multi-Touch – Touch-screen wireless devices (including netbooks and tablets) will change the way people interface with the computer, which eventually will change the way people interface with websites.

If you have an iPhone or an iPod Touch, I bet that at least once you accidentally tried to repeat the same gestures/finger movements on a regular phone from a friend out of habit.  After playing a Wii game, you certainly have the sensation being a bit “limited” when you have to use a regular joystick.  The reason for that is simple: whenever you find an easier or more natural way of doing something you adapt to it almost immediately and going back to the old ways is like trying to unlearn how to walk… You just can’t.

In the following years, more and more devices will be touch-sensitive and there are already companies trying to adapt the iPhone “experience” for netbooks, tablets, laptops and even desktops.  Soon, the way we interface with a webpage or navigate through a site will be impacted by the use of such devices and systems.   Users will get used to these experiences and will demand sites to act in a similar way.

3. Augmented Reality – Augmented Reality (or Enhanced Reality) will eventually eliminate the need of physical devices or accessories and the internet will be more ethereal than ever (a real web of dispersed information).

This is not science fiction. A couple of years from now we will be taking pictures by looking at things, receive detailed information about objects (and people) directly from the internet while we handle them, all without looking at a computer or cell-phone screen. There are ongoing studies on how to use the internet to “enhance” our perception of the world around us without the need of physical equipment or accessories.  A group at MIT even created an amazing prototype using readily available materials under $350. When the internet is no longer something you see through a display in some device, today’s website will be seen as just a collection of information about an entity without full context to what you are doing at the moment. At this point, the concept of a website in the way we experience today will become a distant memory of how we did things in the past.

Ok, Now What?

If you ask me how this new website structure or concept will look like in the near (or not so near) future, I’m not certain I know the answer. There are only 3 things I can say for sure:

1. Your customer experience (or at least your user experience) will be fast, ephemeral and dispersed.  People will be (they are already) assaulted by information from all directions presented to them in quick bursts and ever smaller chunks. People will suffer more and more from information overload and the capability of capturing and retaining one specific message will decrease (there are even studies showing how the new generation brains are adapting to handle the speed of the digital life). To stand-out from their stream of information, you will need to have a consistent digital strategy, comprehensive understanding of all your customer touchpoints, strong branding and, above all, be able to CONNECT and ENGAGE with your customers on a personal level.  It is the ultimate one-to-one relationship for mass-consumption.
2. What you see today as your website will become just an end, not the means.  People will get there to consume and convert, not to browse, since its navigation will have no boundaries. It will require a more flexible information architecture where every piece of information (or page for lack of a better term now) can stand alone when pushed into an information stream and still lead the user to other in-context information and call-to-action.
3. No matter how traditional your customers are they will be affected by changes around them at some point and won’t be able to tell you before it happens, because they won’t see it coming themselves.  Survey and Market Researches are useless to predict behavioral shifts because these behavior changes occur on an unconscious level and users only start to rationalize how much their needs and expectations changed a long time after it’s happened. This is why innovative companies like Apple avoid asking their users for what they want in a product; instead they observe their behavior to understand what they need without knowing and only ask their opinion after the product is almost ready to market (e.g., the iPhone).  If you don’t adapt to your users’ future needs and behaviors, your digital strategy is doomed.

——–

So traditional websites (like most corporate sites) WILL die… we just won’t notice!  They will be replaced with something new and better suited for this different perspective and expectation. We will look at them and believe they have adapted and evolved.

Maybe that’s all the same thing anyway…

But the real question here is: will you keep up with times and allow your digital strategy to evolve or will you hang on to what you know today until everything around you has changed? Are you going to keep up with the times or forever chase your own tail while trying to keep up with the Joneses?

It’s totally up to you[r users].

Last week I participated in a very good discussion about the value of a service from both the agency and the client’s perspectives (see the post that originated the discussion and the follow-up post, both by @ginidietrich from Arment Dietrich PR).

It’s very interesting to see how passionate people are about the value of their work (and about the perception of value for the same service in the client’s eyes).  Despite how much this topic is discussed, I don’t think we will ever see a simple answer for it.

The problem here is that there are several different ways to understand “Value” in a service, so a “Value-based” pricing model will never be unique from agency to agency or client to client, and not even within the same agency and the same client.

To understand the value of a service, we need to consider 3 factors:

1. Expectations – No matter the case, value is a matter of expectation. Setting the right expectations from the start is, in my experience,  the only way to ensure satisfactory results and to avoid discussions on the actual value of the service provided.  (I wrote about it 2 years ago – click here to see the post)
   Now, how to set the right expectations? It is a mix of confidence in your own capabilities and knowledge of the market you work in. Each professional will deal with this in its own way, but successful professionals can set right expectations without any effort, because they know their capabilities and limits as well as the current state of their markets. This, of course, doesn’t take into account unforeseen circumstances, but remember that acknowledging the possibility of unexpected outcomes and planning for them is ALSO part of setting right expectations to your clients.
    
2. Trust – A good level of trust is essential to both sides. The agency needs to trust the client and, even more, trust the client’s products or services being advertised. No matter how much effort is put into the message, customers won’t be coming back and the campaign success will be short-lived if the service is not good enough for them.  Agencies that work with products they don’t believe are just fooling themselves (and their clients) and, in the long run, are compromising their relationship, results AND the perception of value to their services.
   On the other hand, the client need to trust the agency and its methods so they can give them enough room to do what they believe will work better.  Clients that question the agency’s strategy every step of the way don’t really trust the agency’s capabilities and intellectual authority.  They are looking not for brains to bring them solutions, but hands to implement their own ideas and strategies. There’s no real perception of value in this kind of relationship and there will never have any.  If you need to do a project like this, charge an hourly rate…
   My analysis here is that you CANNOT work based on value when there’s NO trusted relationship established with the client yet.
    
3. Risk – As with everything, a value-based pricing model is about taking risks (for both sides) and making them worthwhile taking (again, for both sides). The best approach is the one where the agency minimum costs are covered (no one will risk for long if they have to pay to keep working), the main fee is based on achieving expected results and there’s a percentage (bonus) based on overachieving milestones. Clients usually don’t have any problem in paying more for these stretch goals as long as they believe they are proportionally getting (way) more in return.
   Another approach is to agree previously upon separate cost streams based on risk:  
   -  A minimum monthyly retainer cost for allocation of resources for the whole duration of the project (no matter how long);
   -  A main fee based on specific goals and milestones ;
   -  A percentage of revenue, based on a pre-agreed KPI for results clearly above original goals.
   This way each party shares the risk of a minimum cost for believing in the engagement (or the need of the engagement), a fair price for its success and a premium for any extra ROI provided.

I know this answer is not a simple one, but I learned over the years that nothing is simple in our line of work, that client relationships can never be understood by simple numbers and practical wisdom (or just plain common sense) and real empathy are our best tools in the process of understanding the perceived value of our servies (see Barry Schwartz’s video presentation on Practical Wisdom at TED).

All in all, it is good that it isn’t easy or we would all be out of jobs…

Follow Luis on Twitter at www.twitter.com/luiserpa

I am now totally addicted and dependent on my iPhone.  The thought of being without it gives me shivers, so you probably can relate when, on a Saturday morning, all my songs went mute and I realized the problem was with the phone itself instead of the earbuds.

Long story short:

• I called Apple’s technical support and, despite the not-so-short wait time, the call-center rep listened to my description of the events, confirmed the actions I had taken already and didn’t seem to be reading from a script where she would make me repeat every single action I had already described in the beginning. (They seemed to understand that Not All Customers are Equal.)
• She told me that I would need to go to an Apple Store and promptly told me the 3 nearest ones with the expected waiting time at each.  She then recommended scheduling a time with her so, by the time I arrived at the store, I wouldn’t have to wait any longer.
• At the store I was received by an “Apple Genius” who tested my phone with several different earbuds until he was sure the problem was with the phone.  He asked if he could try to restore the system to its factory default (to make sure it was a hardware problem instead of software) and he was very conscious of setting the expectations of the process (I would have to restore my backup later on iTunes).
• 15 minutes later, with the system reset, he confirmed that the problem was indeed with the hardware and asked me to wait 5 minutes while he checked something in another room.  At that point my expectation was that he would ask me to leave the phone to be analyzed and fixed (it was just a minor problem after all) and I prepared myself for the inevitable time I’d have to spend without my phone.
• Instead, he came back 5 minutes later bringing a box with a brand new iPhone.  Opened it, tested it and gave it to me, asking me to sign a simple one page document confirming that I had received a new phone in replacement of the defective one.  That’s it! No down time, no hassle, no stress, no questions asked.  Just take your new phone and enjoy.
• I left for home happy with the outcome and suddenly the prospect of having to restore a backup with my data and applications didn’t seem at all daunting.

My rational side quickly considered the whole situation and I realized 3 things:

• Their systems were probably integrated (call-center and stores) to help even out downtimes during the hours stores are crowded. 
• My broken iPhone will probably be fixed, refurbished and sold to someone for less, certainly minimizing the cost of the process (and that’s why we buy extended warranties after all).
• While I waited, everything around me in the store was nudging me towards getting an Apple computer.

The key point here is that they achieved all these points by being focused on ways to provide the customer with a better experience.  A REAL focus on the customer creates advocates of the brand, induces loyalty and increases retention.  As a result, your business is more efficient and profitable.

See original post at Vox Inc - Customerspective Blog
Follow Luis on Twitter at www.twitter.com/luiserpa

It’s sad to admit it, but good customer experience is rare.  So rare that when we get one we feel all warm, fuzzy and surprised and run to tell everyone about it.   So rare (unfortunately) that even working this field, I don’t see good examples of CX quite often enough.

This weekend, I had some exceptional customer experiences.   There must have been some sort of CX event happening around town at the time, a kind of “Treat Your Customers Well Week,” or something.  If there was one, I have to say:  it worked! 

Exceptional Experience #1: GEICO Auto Repair Xpress® Shop

A few weeks ago, I hit a tall curb and broke my wife’s Civic’s bumper.  Nothing big, but enough to need the whole bumper replaced and to have that dawning sensation of insurance-time stress rushing at you at full speed.  I was able to find a Geico Auto Repair Xpress® Shop close to me and schedule the work for last week.  Long story short: 

• The adjuster noticed that we arrived early and immediately came to talk to us.  She saw we were in a hurry and started the process right away.  We were out of the body shop even before the time we were officially scheduled to start.
• Nice welcoming and explanations.  She seemed honestly concerned if anything serious happened and if everyone was okay.
• She was good at understanding our needs and then setting the right expectations.
• The work was done before I expected (again, the right expectations were set in the first place), and I found myself in an odd situation:  I was alone when I received the call that the car was ready.  I couldn’t just drive there to get the car since then I wouldn’t have anyone to drive MY car back home.  From my perspective, my only options were to walk there, call a cab or leave the car there another week until my wife was back in town.  The adjuster again promptly asked me, “Do you have a spare key for this car?” I said yes, and then she suggested that they drive my car to my home and leave it locked in my driveway with the keys inside.
• When I got home, later that day, the car was safely locked in my driveway.  Inside it was the car key, a complete list of the services, my receipt, a Thank You note and a box of cookies…

 My rational side quickly considered the whole situation and I realized 3 things:

• In each circumstance, it was already in their best interests to get me in and out as quickly as possible.
• Nothing they did incurred an extra cost or service they didn’t already provide (well, maybe the cookies, but that’s negligible).
• These were all simple actions that, when combined, minimized the stress factor of the experience and eliminated possible conflicts or attrition points.

The key point here is that I don’t believe they were thinking in those terms.  They achieved all these points by being authentically concerned with how they could provide me with a better experience.  A REAL focus on the customer provided them with a more efficient process and, I would dare say, more profitable results.  

Tomorrow, I’ll tell you another exceptional experience and let you know what happened at the Apple Store.

See original post at Vox Inc - Customerspective Blog
Follow Luis on Twitter at www.twitter.com/luiserpa

I don’t know anyone who would want to be wrong. 

Our culture is wired with a deep, primal need to always be right, which leads us to deceive ourselves into believing we actually are always right, which again leads us to believe that everyone else is wrong.   (Wait… WHAT??!?)

Normally, one would think this is just another eccentricity of human nature and actually a pretty good defense mechanism in a competitive world (it takes a lot of confidence and determination to be successful, to win), but when it comes to Customer Experience, being right won’t necessarily do much good for you.

You see, at the root of most customer experience problems you’ll often find two opposite sides, both believing their view of the issue is the right one. The problem here is perspective. Anyone in customer service is fundamentally wrong in thinking that service has anything to do with whether or not the customer is right.  (In fact, as customers we are often wrong, but that’s not the issue!)

The important thing to understand is that the customer’s feelings are always right!

It doesn’t matter why they’re angry, irritated, frustrated or upset, just that they feel that way.  Your job, as a representative of your company is to acknowledge those feelings and do whatever you’re empowered to do in order to make them feel better. Focusing on trivial details, like who did or said what, is irrelevant. The only things you should consider are: “what can I do to help this person?” and “what can I do to make sure nobody else will feel that way?”  This perspective will not only resolve the immediate problem but make your job easier in the future.

Some of the best examples of GOOD customer service come from situations where someone was honestly willing to discard his original perspective.  In my experience, a good customer service professional always assumes he could be wrong while listening to consumer complaints. Not fighting to be right is the only safe way to achieve true empathy.

Put yourself entirely in the customer’s shoes, and consider the problem from their perspective instead of your own.

I know some of you will say that this could be bad for business, or that it is imprudent or risky to think others are always right, but let’s consider this for a minute:

Always thinking you may be wrong:

• Eliminates the pressure to compete or to “win” the debate as a way to successfully resolve the situation
• Allows you to be less defensive and more open to what the customer says
• Removes emotional attachment you can better listen to the problem and understand how it affects the customer
• Actually helps to find a solution that will please the customer
• Gives the customer a sense of being victorious, successful and confident about engaging your brand/company again in the future
• Makes loyal customers happy and make happy customers loyal (note:Happy customers won’t bad-mouth your company to friends and may in fact praise you on your conflict resolution skills!)

Needing to always be right:

• Automaticallyescalates the conflict by upping the stakes of winning or losing
• Makes both sides defensive and unwilling to actually hear the other side’s perspective
• Inflames strong emotions and irrational behaviors that have nothing to do with the real problem being discussed (like wanting to fight just to feel justified and complain to everyone about the terrible experience you had with that company)
• Masks the underlying causes of the situation, making it even harder for the company to discover potential problems that will soon affect profitability
• Makes a resolution only achievable by defeating one party and rendering both sides frustrated
• Extends the length of the conflict,wasting more of the company time and manpower.
• Makes upset customers more frustrated, even after getting what they wanted. They will spread the word about the terrible experience they had to endure!

So, my suggestion to all of you is: When it comes to handling your customers’ experience, strive to be wrong.  It’s good for your business. It’s good for your customers’ experience, and it’s good for your success.

If nobody wins, then nobody loses. And that’s really how everyone wins.

Am I right?

See original post at Vox Inc - Customerspective Blog

It’s interesting how you can find Customer Experience wisdom in the strangest places. The message I got for this post came in fact from a novel I was reading yesterday (The Dark Tower III, by Stephen King).

In it, two of the main characters were discussing odd human reactions to certain situations when making decisions. 

The dialogue went more or less like this:

That got me thinking immediately on how similar this dialogue could be to any number of companies receiving complains on their Customer Experiences:

The moral of the story here is that nobody should guess Customer Behavior based on what customers “bitch about” when they speak to you.  What you are hearing is how they see and rationalize YOUR problem and not what motivated theirs. Customers are irrational and they don’t really care about what drives them to do something, they just do it.

Real behavioral knowledge comes from observing your customers and understanding their basic fears and motivations. Without a sincere effort to understand Customer Behavior, what you think would be a solution for their grumble might exacerbate the exact problem you are trying to solve.

So it doesn’t matter how many features (doors) you put in front of your customer.  If they don’t know what they are there for and you are not trying to address their real motivations (fear of what’s on the other side), you will end up watching your customer bouncing off the walls, refusing to use the doors and still blame YOU for a lousy customer experience. 

And guess what?  They are absolutely right… 

See original post at Vox Inc – Customerspective Blog

Some companies may say that a good experience is priceless, but it seems that someone at Belkin really thought that he could get a few good experiences for a lot less and now the company is paying a steep price to recover their customers’ trust.

The (dumb) idea was simple in concept: use Amazon’s Mechanical Turk Cloud Service to recruit “reviewers” for Belkin’s products.  The hired reviewers’ task was pretty simple: give the highest possible rating available to the products as if they had bought them.  The price tag for each review: just 65 cents!  (see full description of the offer in the image below)

The history was first published by The Daily Background and then reported on TechCrunch. Looks like it was all the action of a Business Development Representative named Michael Bayard and not a company-wide strategy, but the damage it caused is still the same.  After the spread of the article through the web, Belkin posted a reply taking action to fix the situation without denying or explaining how it happened in the first place.

The point of the story here should be obvious but I will spell it out it anyway: A good Customer Experience CAN’T be produced artificially!  It is always the result of good services and care provided to your customers and the results you get will always mirror your real intentions.  Alienated and wronged customers usually spread the word pretty fast. The whole incident is being called now “The Mechanical Turk Shilling” and the negative comments about it on the Blogosphere and twitter have been growing exponentially since Saturday.

I am betting that Belkin will be paying way more than 65 cents now to fix the situation, and nothing guarantees that their product reviews will ever be totally trusted again…

**UPDATE: It seems that Belkin was not the only one to try to leverage Mechanical Turk’s services to unethically increase scores. There are people paying good money to cheat a Twitter competition, the Shorty Awards.

See original post at Vox Inc – Customerspective Blog

In the midst of the economic crisis, while most banks are trying to keep attracting customers by offering higher interest savings and money market accounts, one bank (PNC) is thriving by focusing on delivering a unique online customer experience, specifically designed to target the generation Y (people aged 18 to 34, according to PNC demographics).

PNC created a product called Virtual Wallet that boldly discards all usual conventions from the banking industry, such as checking or savings accounts, and offers 3 types of accounts (dubbed “Spend,” “Reserve” and “Growth”) combined in a single solution.  They focused on two simple concepts:

• Twentysomethings consider bank sites clunky, and they typically don’t know how to manage their money (’We need help helping ourselves’)
• The Gen Y really understands how to take advantage of online resources.

The solution takes advantage of concepts borrowed from other online services, games, social networks and even e-Commerce sites with features like Wish-List, Financial Calendar, Money Bar, Danger Days and “Punch the Pig.”   That strategy is luring 130 new customers a day (20,000+ Virtual Wallet customers since July) to an account that otherwise could hardly compete with more aggressive banks in terms of paid returns. 

Defying conventions and betting on exceptional experience can cost a lot initially (PNC expects the project to cost about 15 Million overall), but the ROI is unquestionable: PNC estimates to break even 1 year faster than a similar investment on a new brick-and-mortar branch would have.

From that example (plus everything that we preach here at Vox), I can get 3 great lessons to any company in any industry:

1.  Don’t be afraid to defy conventions!  Know your customers, understand what they what and what they need and create NEW experiences that fit their expectations
2.  Test your concepts with real customers, watch how they react and behave and adjust your solutions accordingly
3. The best strategy in times of crisis is still to offer a truly great customer experience.  Marketing gimmicks and discounts can only go so far as… well, superficial wins…

 So… What strategy will your company follow to get over this crisis?

 See more about it in this article from BusinessWeek or in this blog post from Customer Experience Matters.

It’s already evident that successful enterprises are a result of carefully planned and researched strategies. Without understanding how your customers think, you will never be able to really get them to engage with your site, service or product.  

Now, what most forget is that it is too easy to THINK you know your customers and assume their tastes and needs.  It’s even more dangerous to label your target with an ill-conceived or over-generalized persona, like “Soccer Moms” or “High Executives.”

See the example of Blackberry users, recognized all over as “Stressed Executives” and “Workaholics.”  It was an interesting surprise to see that more than 400,000 of them already downloaded the new Blackberry MySpace application, and that they collectively updated their “mood and status” more than 2 million times during the first week of use alone.  Who would have guessed that a MySpace application would have found its record of downloads on the Blackberry platform?  Well, it seems that someone at MySpace did and I would risk saying that whoever thought of it had some real research to support her decision or this idea would have faced too many “Are you kidding?” reactions to be green-lighted.

Not all customers are equal.  People can have drastically different behaviors depending on their personality, life-style, work and even geography. You cannot risk confining them into simplified personas without taking enough time to understand them first.

Knowing your customers means testing, trying and observing their behavior.  Avoid oversimplifying or judging them by the use of labels, and, above all, never ever EVER be afraid of contesting your own assumptions.

See original post at Vox Inc – Customerspective Blog

Apple’s finest moment leads to big mistakes.

From a totally neutral perspective, Apple appears to believe that “the customer is always right,” adapting to their customers’ needs and attempting to accommodate every request. Apple’s desire to appease their most loyal customers, however, may come too late. The company has received multitudes of negative press since the iPhone launch, disappointing many loyal Mac addicts.

As I mentioned in a recent article, Apple is famous for developing and marketing stylish and useful products for a very specific (and passionate) public. Apple Evangelists are some of the most loyal customers around. They yearn for innovation and inventiveness, long for something special and different and, more than anything, love Apple for being the technology industry underdog that beats big corporations at their own game.

When Apple decided to enter the cell phone market, they had it made: a promising product, winning usability concepts to shake the wireless status quo, and millions of customers willing to buy – at ANY price.

Unfortunately, the wireless industry is dominated by what Apple customers call “the big bad corporations,” and to make the iPhone dream even possible, Steve Jobs cut a deal with one of the big players. Many Apple enthusiasts viewed this as selling out. That alone, however, was not enough to shake devoted Apple followers’ faith in their beloved company. The general consensus was that eventually the iPhone would be available on other networks and then all would be swell. Until then, thousands of early adopters were willing to cope with the “evil” AT&T as long as they could have the great gadget before everyone else. However, in their quest to enter a new market, Apple has taken their customers for a wild ride.

1. Apple announces iPhone’s price tag.
   • Yes, it seemed too high for a just a phone, and the tech community flooded the Internet with analysis of the iPhone’s shortcomings, but Apple’s early adopters were willing to pay to be the first to have the new gizmo. For true Apple fans, logic doesn’t play a role, and technical limitations are just, well, technicalities.
2. The actual launch day reveals all the shocking differences on each side of Apple’s arranged marriage with AT&T.
   • Everyone knew that Apple and AT&T were incompatible, but no one expected to see it play out so quickly. Even so, stores are flooded with customers, and iPhone sales exceed analysts’ expectations. Nevertheless, Apple advocates start to feel troubled and worry their beloved underdog is becoming too “corporate.”
3. Pressed by customers’ complaints and words from the competition, Apple capitulates and cuts iPhone prices by $200.
   • Let’s face it; the original price was a bit unreasonable. The 4G version was a lame duck, but if there is a company known for placing high bets and sticking with them until the end, it’s Apple. Customers and early adopters who bought the 4G version in the first day were left with an expensive discontinued product with virtually no commercial value a mere 2 months after its release. Angry discussions run amok over the Internet, and the once euphoric Apple customer experience is replaced with feelings of betrayal and deception. Lawsuits start to pour in.
4. Realizing that they were alienating their most loyal customer base, Apple attempts to correct their mistake by issuing a $100 credit to all early adopters. The Mea Culpa was published in a Letter to all customers.
   • The letter is honest and recognizes mistakes while promising to do better. However, for many it’s “too little too late.” Those who waited all night to get their iPhone on the first day at a premium price wanted status and recognition. The credit was half the price cut and seen by many as “hush money” or pocket change. But customers were not as offended by the price cut as by the value cut.
   • Apple could have easily corrected the situation (or avoided it altogether) by giving early adopters something of equal value, like a limited-edition accessory, exclusive membership to a community with benefits, exclusive ring tones or even just a stylish T-shirt saying “I was one of the first to have an iPhone” signed by Steve Jobs. Practically anything that gave a sense of being special or unique would have been more appealing than money.
5. Even before things started to cool down, the technical community hacked the iPhone, opening it up to third-party applications and use on any network. This means users now have the freedom to choose their provider and download new applications a good two years before Apple’s exclusive AT&T contract expires.
   • Hacking the iPhone takes skill. While a few power users unlocked their phones, the great majority were happy to keep the service they signed up for. Apple, however, not being accustomed to such treatment, didn’t take news of the hacks well. Concerned with potential future problems and the buzz around these issues, Apple posted a news release perceived by many as a preemptive attack against Apple Modders.
6. Apple runs to release a major update that “fixes” security issues, preventing iPhone owners from using other networks and locking out third- party applications. The problem is that the release also completely locks some devices, turning them into expensive, unusable gadgets, regardless of if they were hacked in the first place or not.
   • This was a real blow. The battered Apple Evangelist is appalled by the finger pointing and recklessness. Moreover, Apple’s fight hurt standard customers who can’t use their “factory fresh” iPhones anymore.
   • Perhaps Apple was pressured by their exclusive partner (AT&T) to produce an update before it was sufficiently tested. One of Apple’s brand promises is to have a well-built solution, free of bugs and upgrade problems (or don’t you remember all those cool TV Commercials?) Is Apple yielding to market pressure and releasing untested updates that cause their devices to crash? How very Microsoft of them.
7. Despite efforts to block the tech community from opening the iPhone, several new hacks were quickly available promising to open the new updated devices and even unlock the “bricked” ones.
   • What can I say? It’s a losing battle Apple may not be equipped to fight. Apple is accustomed to being loved and having a large fan base so it comes as a shock now that those same loyal users are speaking out against the company they helped make great.
8. Apple recently announced they will open the iPhone for third-party development.
   • Again, while I praise their responsiveness and willingness to comply with customers’ wishes, it just doesn’t feel very genuine or like the old Apple I knew and loved. It seems like they are being forced to react rather than doing so willingly and, believe me, customers can tell the difference.

All in all, Apple is still a strong company with loyal customers and supporters. They’ve undoubtedly made some mistakes while attempting to break into a new field. However, I still believe the iPhone is a great achievement and Apple brings some much needed fresh air to an otherwise stale and saturated market.

Apple’s recent follies teach us two very important Customer Experience lessons: First, when it comes to customer approval, you cannot rely solely on past deeds and reputation. In fact, a good reputation only raises the bar, forcing customers to hold you to a much higher standard. Second, you need to know and understand your customers’ needs and motives and consider them before you make decisions.

See Also: Even Mr. Popular Needs to Focus on Retention
Originally published at Vox Inc Customer Experience Articles

Stop right there!

If you were looking for some “how to improve your love life” article, you came to the wrong place. Rather, I would like to explore how the emotions involved in customer relationships are strangely similar to those you have with your loved ones.
…
Well, customers may be willing to share the object of their affection with a couple million other people, but the difference ends there… Like in romances, customers will become jealous if you favor others over them. If your company sees more value in acquiring new customers than in keeping a current one, the current one will leave.

Take for example wireless companies. To get into the proverbial bed with you, they lie and say they’ll treat you right. They offer you free phones, cash back, gifts and promise to take care of you and make you happy forever after. However, as soon as the sun comes up, or you’ve signed a two-year contract, you are tossed aside and simply added to the list of their many conquests. You, as an individual customer, don’t matter anymore.

Being treated this way is bad enough but then, adding insult to injury, the company continues to flirt with others right in front of you; making the same empty promises they made to you.

If your girlfriend or boyfriend treated you this way, how would you respond? Exactly!
Now, how do you think your customers will respond?

Oh sure, you may be able to fool a few and keep them with you for a while. But, as soon as the competition starts making its move and offering better perks, your customers are as good as gone.

Long romance or one-night stand?

Does offering all these perks to attract new customers really pay off when you treat them like that and they leave you in two years? Why not reward loyal current customers by giving them special offers or at least the same advantages as new customers when they renew their contracts. Better yet, why not offer them incremental benefits throughout the years?

It costs six times more to attract a new customer than to keep an existing one.¹

So, investing in customer retention not only saves your company money, it also leads to loyal, life-long customers and a higher return on investment.

In simple language: Set the right expectations, and be ready to invest as much in retention as you do in acquisition!

After all, one of the most basic rules of relationships is that if you are happy with what you have, you will be less tempted or willing to risk your relationship for instant gratification.

Is it time to break-up?

SPRINT has taken a somewhat unique approach to the customer relationship; they’ve flipped the table and are dumping their unhappy customers, (SPRINT is starting to cancel customers’ contracts when they call customer service too often).

I wrote an article about this topic last year (Bad, Bad Customer… No Soup for You!), explaining how companies were starting to identify customers who don’t measure up or are deemed too high maintenance.

I am not taking sides on this matter², but you can bet that outraged high maintenance customer is going to tell everyone she knows about your service and your company has a lot more to lose in brand awareness and public image than she does.

Having said all this, I ask again: Is it worth losing the one you’re with?

^{1 – Stevens, M. Extreme Management: What They Teach At Harvard Business School’s Advanced Management Program. Warner Business Books, March, 2002.
2 – You can read views of both sides on Seth Godin’s Blog “Treating different customers differently” and “The first thing“, and also at the consumerist.com.}

Originally published at Vox Inc Customer Experience Articles

As expected, what really stands out about the new Apple iPhone isn’t the multitude of features squeezed into it, but rather its usability and the overall Customer Experience provided.

Apple understands the importance of superior usability to enhance the Customer Experience and has done an excellent job of this since rolling out the first Macintosh.  Their approach has created a strong community of believers – and that’s the whole point!  Apple doesn’t have customers, they have Evangelists! When Apple receives a negative review, their customers fight to defend the company and their products.

If this doesn’t prove the importance of Customer Experience I don’t know what does.

Apple’s commitment to Customer Experience is why, on my opinion, their decision to enter the wireless market and partner with AT&T is so risky. I am very curious to see how the marriage between Apple and AT&T will play out from a customer perspective, as both companies seem to have very different ideas about what constitutes a GOOD Customer Experience.  Apple is a shining example of a company that creates passionate users by providing an excellent overall Customer Experience. While AT&T, like the majority of wireless providers I have tested, boasts about their customer service, but often fails to meet even the most basic customer expectations.

Will Apple bring AT&T up to their level or will AT&T’s poor customer service leave a permanent scar on Apple’s Customer Experience reputation?

Only time will tell…
 

Originally published on Vox Customerspective Blog 

I recently vacationed at a beach resort in Mexico. Before leaving, I was stressed, tired and a little bored. I didn’t really plan the trip beforehand, so I just hoped to have a clean place to sleep and relax for a whole week.

Once in Cancun, I rented a crappy car and stayed in a crappy hotel. The infra-structure in some places was almost non-existent and the food was often too spicy for my taste. Nevertheless, the car was drivable, the room was clean, the water was clear, the weather was sunny and the nights were warm and full of excitement. I enjoyed every minute of it. I would go back in a heartbeat and I definitely recommend the experience to anyone.

But it’s funny how some people tell me about their really bad experiences in Cancun, under exactly the same conditions. What was different? They had higher expectations! For me, what was just another colorful experience to add to my memoirs was, to those other travelers, a tortured experience to blot from their memory. Because they expected everything about the trip to be great, the actual experience could only disappoint.

Now imagine your boss assigns you an important task. The task is due in five days, but you know you can do it in two. If you just accept the deadline and surprise her by delivering it three days ahead of time, you are remarkable. On the other hand, if you promise to deliver in two days, you reset her expectations, and when you make the shorter deadline, you become just a reliable resource. Now, what would happen if you finished two days before the original due date, but one day after your promised date? That’s right – you fail to meet her new expectations and may be deemed untrustworthy.

In short, to have more you should expect less!

As crazy as it sounds, it is basically true. But let’s rephrase it for the business world: to amaze your customers, you need to set the right expectations. But what is the right expectation? Different people have different expectations in different situations. In some industries, demands and circumstances may lead you to set very high expectations as a baseline (e.g., Target’s motto:“Pay LESS, Expect MORE.”). Even worse, expectations frequently change over time and not everyone will expect the same things from you.

That’s the challenge companies are facing today: How to set the right Customer Expectations. Why are expectations important?  Because:

1. You have to provide a great Customer Experience to maximize customer lifetime value, loyalty and retention.
2. A great Customer Experience is directly dependent on customers’ expectations.
3. Customers will take your company’s promises for granted and you never retain customers by meeting their minimum expectations.
4. To provide the best possible Customer Experience, you have to regularly exceed your customers’ expectations.
5. To exceed customer expectations, you need to set the RIGHT expectations for your product or service.
6. You must promise less than your full capability, but more than the customers’ minimum expectations.
7. Your promises (and your capabilities) must be at least on par with the competition in order to acquire new customers.
8. It’s easier to know you own capabilities (and the competition’s for that matter) than to know your customers’ expectations.
9. What you do today will not be enough tomorrow. Expectations change over time and according to the situation.
10. Your buyers and your users have totally different expectations, even when they are the same person!
11. You can’t afford to not meet your customers’ expectations.
12. If you don’t run some risks, you become stale and predictable, and will eventually fail to meet your customers’ expectations.
13. You can please some people for some of the time, but you can’t please everyone all the time.

So how can you possibly create the right expectations? Here are some guidelines:

• Identify who is (or should be) your customer.
• Get to know your customer and understand their expectations.
• Don’t follow everyone’s expectation! If it’s not your target, it doesn’t matter. It’s just a distraction.
• Don’t play it safe. Maintaining the status quo is the quickest way to become ordinary and one step away from failing to meet ever-changing expectations.
• Define your own Customer Experience metrics and track them.
• Ask for feedback at every opportunity and make it a part of your continuous improvement process.
• Be careful with customer surveys. Most customers will lie to you (even if they don’t mean to).
• Put yourself in your customer’s place. View your product/service from his or her perspective and find what you can do to improve your customers’ experience.
• Apply Usability concepts to all you do. Your buyers will expect to get everything they can - all the bells and whistles, but when they become your users they want simplicity.  Usability will keep your features out of your users’ way.
• When you fail to meet an expectation, turn around and surprise your customers with something that will certainly exceed their expectations

In business, as in life, expectations define a good experience. If you exceed expectations often, people will love you. If you repeatedly fail to meet expectations, they will hate you. Above all, if you are simply meeting all expectations all the time, people will be indifferent. When you never stand out, it is just a matter of time before a competitor acquires your customers.

Here’s a good lesson to everyone that deals with customer experience:

Learn from your mistakes.

I know it seems obvious, but people usually confuse “acknowledge a mistake” with actually learning from them.
Here are some examples:

• The company recognizes that something went wrong but is unable to pinpoint the real problem
• The company recognizes that something went wrong, identifies it, and brushes it under the carpet before anyone in the company can notice
• The company identifies what is wrong, apologizes and/or rectifies the past occurrence, but doesn’t prevent future problems
• The company identifies the problem, apologizes, researches possible permanent solutions and, after facing unclear or too numerous long-term options, gives up and decides on a quick-fix
• The company identifies the problem, apologizes, and researches a permanent solution, but then deems it unachievable or too expensive – and just forgets about it

What should happen: The company recognizes the problem, identifies its cause, apologizes, and immediately corrects the situation. After acting appropriately and getting feedback from its customer base, the company looks for more permanent solutions and quickly implements them. After learning from experience, the company should never again repeat the same mistake (at least not in the same way) again.

It is easy to know that you have a problem, but not so easy to identify where the root of the problem resides. And it’s hard to react well, even harder to correct, and quite unusual to actually prevent the same thing from happening again.

Well… Unusual, but not unheard of. In fact, some companies are not only able to learn from their mistakes but can also benefit from them. Facebook’s recent redesign is an excellent example of this.

Recently, they had a security related problem that actually revealed more personal information than wanted by their users. After getting a negative reaction from hundreds of thousands of their customers, Facebook’s quick response and whole approach to the problem rewarded them with an explosive growth on their membership, jumping from 7.5 million users to 18 million after the crisis.

Facebook’s example proves how valuable (and cost effective) this approach can be, and makes me wonder why most companies still refrain from implementing it every day.

Originally published on Vox Customerspective Blog