Standing Out From The Crowd

Sometimes companies will bend backwards, and spend a lot of money, creating ad concepts that will highlight how great their Customer Experience is, but no matter how much one invests on marketing campaigns, if the ACTUAL experience doesn’t correspond to what you’re promising, the message you send to your customers will be completely different.

One of those situations just happened to UPS and is quickly propagating through the internet (thanks to Jason Harle for pointing it out to me):

Step 1 - Take a look at this flash banner ad (It was originally found at The UPS Store website)

Step 2 – Watch this video (available at YouTube and at The Consumerist)

Step 3 – Repeat and laugh…

…

Now, do you think anyone, after seeing this, will believe the ad? Yeah, definitely a market budget “well” spent!

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 

In my last post (”Welcome Back! Long Time, No See“), I commented on how face-to face interactions are being affected by the reliance on technology, subsequently missing real customer relationship development opportunities. After posting it, I realized that it wasn’t very fair. Technology and CRM tools can be useful for improving the Customer Experience in real world situations with creative implementation. So I decided to devote a few brain cells towards imagining some scenarios that could be implemented with today’s tools and technology.  Here is what I came up.

Grocery Stores:

After a busy day at the office, Beth (our imaginary customer) is driving home when she decides to stop by the store for some groceries.

On entering the store, she goes directly to the first available Customer Service Kiosk and, having forgotten her “Preferred Client” card, uses her index finger to log in. The system shows Beth her current shopping list with her son’s wish list, added earlier at home over the Internet. The system offers Beth some interesting new products fitted to her needs and a list of personalized coupons. She then prints out her shopping list and coupons, sorted by the store’s aisle layout so she won’t have to backtrack.

As she shops, a chip embedded in Beth’s cart stores her information and a wireless device indicates her location in the store.

Beth is speeding through her list until she notices that one item is out of stock. Of course, the list shows several recommended substitutions for the missing item, but Beth is not sure which to choose.  She decides to ask for help and presses a Customer Help button on her shopping cart. A nearby attendant, alerted by an automated text message on his two-way radio, approaches her.

“Good evening, Ms. Johnson, It is good to have you back!” says the attendant.
“Are you by any chance wondering about a substitution?”

“Oh yes, thank you!  I was looking for a dandruff shampoo for my husband, but his favorite brand is out of stock,” she tells him.

“Not a problem!” He swiftly picks up his hand computer and downloads her list and shopping history. “We have several other good brands, but I see here that your husband bought ACME shampoo the last time he was here. Was he happy with that purchase?”

“Yes, I think he said he still preferred the other one, but this brand was ok,” she says.

“If you like, I can get one for you. If not, I personally think this other brand here is very good. It’s a little more expensive, but it is more effective,” he adds.

“Oh, thanks! I will try that one,” Beth decides.

Satisfied with her choice, Beth walks towards the checkout and a small display on her cart indicates which cashier has the shortest line. At the checkout, the smiling cashier greets her with a “Hi Ms. Johnson, did you find everything you needed?” while quickly scanning her purchases. As the cashier thanks her, she adds, “Did you know that you can call us ahead of time and have your whole list ready for you by the time you arrive?”

She didn’t know that, but she is already considering doing that the next time she shops.

. . .

Forget all the Sci-Fi movies’ wildest predictions (although Minority Report has an interesting take on possible future customer experiences), the example here is imagined, but quite feasible with today’s technology. I wouldn’t be surprised if someone is already doing something like it already. 

Are you? 

Maybe I am a pessimist, but I think many companies today focus all their efforts and budgets on projects that don’t solve their main problem. They wait too long to realize when they need specialized help. It’s like being concerned with making dinner while the house is on fire. You don’t call 911 until the whole house has burned down. Do you think the firemen can help you now?

If you work in a corporate marketing department with more than 1,000 customers, you probably spend your days looking for creative ways to obtain new customers and increase revenue. Doubtless, you’ve read at least one Customer Experience article lately and you agree that the best way to keep your customers is to improve customer interactions to meet their expectations. However, all your annual budget and goals are directed to acquire new customers, not retain current ones.

What most companies fail to understand is that the road to credibility and profit lies in devoting at least some of their investment and attention to Customer Experience. The numbers confirm this: It costs 10 times less to maintain a customer than to obtain a new one. It also costs 10 times more to recover one lost customer.

So now, all you have to do is get a holistic view of your customers, evaluate all their interaction points with your company, and implement a strategy that would be valid across all channels. Shift your perspective. It may sound overwhelming, but it doesn’t have to be.

There are two ways to get hold of the idea and change how you approach your business:

1. Step-by-Step
   • Improve the Customer Experience in small projects. Look for low hanging fruit
   • Constantly review and gradually expand the scope — as you measure results
2. Top-Down
   • Gather related data and numbers
   • Show the merits of customer-centricity to top management
   • Implement a company-wide Customer Experience strategy

Either way, you must realize that the fire is already burning. The market is changing. Customers are becoming more demanding and savvy. Companies are speeding up to adapt and you cannot risk being left behind. It’s a mindset change but it just takes the effort to look at things from a different angle. Refocus how you use your marketing budget. Think about how you’ll see a better return on your investment as you grow your business.

Don’t wait for others to make their move. Most of all, don’t wait for your customers to make their move! Call 911!

*Originally published in May 19, 2006 at http://www.voxinc.com/customer-retention-shift-your-perspective.htm

I just read a entry on Seth Godin’s Blog that can be very helpful for people working with Call Centers and Customer Services.

As always, Seth’s guide is simple and obvious, as it is supposed to be. But again, it may not be so obvious, given the number of companies that still have no clue on how to do it right…

Several shocking security breaches, compromising the personal data of millions of customers, have been reported lately.
Below are just a few of the most flagrant cases:

- Chase trashes 2.6M customer files
- Second Lifers’ ‘first life’ hacked
- Wells Fargo leaks personal data
- AT&T deceptive on data theft

What amazes me about these breaches is not only the scope and impact of the leaks, but the way in which they occurred. Most of them have been caused by an improper use of data by employees (like the now infamous case of the US Department of Veteran Affairs). Others were caused by losing control of how personal data was handled by companies’ partners or vendors. Chase’s customer data was mistakenly thought to be trash and thrown out. Quite a treasure trove for identity thieves.

Although most corporate reactions to leaks have improved by becoming more forthcoming and transparent, the breaches are still a huge blow to costumers’ trust. How can anyone believe a website’s Privacy Policy or the company’s Safety Statement when such egregious security gaps abound.

Transparency is good, critical even, but is not enough. Sooner or later, companies will have to start taking security lapses seriously. And it better be sooner, because as the saying goes: “The road to hell is paved with good intentions.”

I always understood that it can be difficult to please a customer, but I never gave much thought about why. Seth Godin has some curious insights though on that matter in two of his recent blog entries: What People Want and The Thing About the Wind.

My two cents to companies: Listen very carefully to your customers and understand them as if you were in their shoes. Without that, you may be catering to your customers’ every whim without ever giving them what they really want.

I usually say that I am a very practical person. I am proud of my capacity to research the best possible deal before purchasing anything. Moreover, when asked, I always say that price DOES matter to me. It matters a lot!

Well, if this is true, why do I frequently end up paying more for the products and services I buy?

To answer that, I started recalling my last purchases.

• First, my wife’s birthday present - OK, that doesn’t count… I couldn’t be concerned with price on a special date. It HAD to be the right gift!
• Second, our last vacation - Yeah, I didn’t get the cheapest package available, but it was our vacation! Why not seize the moment and get something better.
• Finally, our last grocery purchase - That should be an easy one… Hmm… I could have bought less expensive stuff, maybe used some coupons. But what can I do if the products I like most are not on promotion. After all, I can’t spend all my valuable free time saving a cent or two.

After analyzing that, I came to the conclusion that nothing really went wrong and that, despite my bravado about low prices, what really matters to me is the tingling feeling that I made the right choice and bought what I really wanted or what I really needed, for me and for my loved ones. There is no better deal than that!

Yeah, well. I think I am no different from any other consumer after all…

*This post was originally published at the Customerspective Blog

A Man in Malaysia Gets $218 Trillion Bill. How does something like this get past the billing department?!?

See the story here.

*This post was originally published at the Customerspective Blog