Customerspective

Who cares about customer satisfaction?

The question might seem glib, but really: who cares about customer satisfaction? As this entry from "Mystery Shopping Matters" blogger David Rich suggests, the concept of determining "satisfaction" is fundamentally flawed - it's hard to conduct; it doesn't endear you to customers; and, it leaves you with ambiguous results, let alone actionable steps to improve things.

Rich's blog cites customer loyalty guru Fred Reicheld and his "Ultimate Question," from the book of the same name. Reicheld believes (like we do) that determining satisfaction has very little to do with a number that really matters - customer retention. He suggests that - in place of long surveys - you ask your customers one simple question: "would you recommend us to your friends?" Reicheld attempts to make a strong correlation between that question and financial growth, with mixed success. His logic, however, is sound: loyalty rather than satisfaction is a stronger indicator of a company's success and growth.

In his blog, David Rich recommends more mystery shopping to determine customer perceptions and experience. We feel that "walking in the customer's shoes" is but one key to truly understanding customer experience. The others are included in our Customerspective Audit. But one thing is certain: customer satisfaction surveys are not "the Ultimate Answer."

It's not what you say, it's how you say it.

I just ordered the new book by Danny Meyer called Setting the Table: The Tranforming Power of Hospitality in Business. For those of you who aren't restaurateurs or New Yorkers, Meyer is something of the golden child in the progressive (but not too progressive) restaurant industry. His first establishment, Union Square Cafe, was voted the most popular eatery in New York for some multiple of years in a row, and now there are a hefty handful of other hip and diverse Meyer restaurants sprinkled through that city.

My wife and I gave Union Square Cafe a try our last time in New York, despite my aversion to things labeled "most popular" anything. (It makes me think of "the world's largest Bennigans!" on Times Square). To my surprise the experience was wonderful. Far from being knocked about at a crowded bar waiting for a table, or worse, feeling inferior to the snooty, sublime environment, we felt welcomed and apppreciated in a very human way. The service was, well...warm and professional. The food was fantastic, and we lingered at the table with overt approval from the staff.

The experience caused us to seek out a second of his restaurants, Tabla, which offered modern American fare imbued with Indian accents, or maybe vice versa. Anyways, it was a different but no less impressive meal and evening. In fact, given the table we were at, and the service, I wondered if we had been mistaken for some couple of note.

So, what is Danny Meyer's secret?

It really comes down to that one word: hospitality. That is his business model, in all the word encompasses. It's not "quality" or "service." It's hospitality. It's how he sets up his restaurants, how he communicates to his team.

But here's the distinction in strategy: it's how he hires. His main point is that - if your raison d'etre is hospitality - you can't hire somebody with all the right skills and the wrong attitude. Attitude can't really be trained, skills can. If you start with a person who doesn't understand some of the processes in the restaurant but possesses an attitude focused naturally on helping people, you'll beat the other guy everytime. It's something we believe and try to live here as well.

Guiness Offers Consumers a Chance to Create their Commercial

Talk about getting the customer involved...Guinness is inviting the public to have their hand in creating their new commercial.  The owner of Guinness, Diageo, is launching a site on Monday that will allow the public creative freedom to use software tools to switch around the soundtrack and footage to create their own commercial.

According to an article in FT.com, "Users will be able to post the finished commercial on the site or email it to friends. They can also compare their version with that produced by the professional creatives at AMV BBDO when the latter appears on television from February 12."

Holiday Customer Experiences Remembered

Like many others, I spent a good portion of the recent two weeks shopping. Two customer experiences come to mind that I will certainly remember when I hit the stores next holiday season.

One is a classic example of how going above and beyond pays off. I stopped into a small boutique, where unbeknownst to me I dropped my gloves. One week later I received a package including the glove from the store owner, who had taken the time to get my info from the store's guest book and send it to me. It included a nice note saying that she hoped I received the glove before it became too cold. She also mentioned the merchandise I had purchased. The next week I received the second glove. I can't tell you how much I appreciate the personal attention, and the fact that I didn't have to buy a new pair of gloves only weeks after I purchased a pair. Come next December, not to mention during the months in between, I'll definitely remember that store - Jeweled Souls - when I need to find a store that actually doles out good treatment during the madness that is Christmas shopping.

Then there comes the story of unbelievably bad customer service about my experience at Toys R Us. Maybe the management here just assumes that they'll have lots of business at Christmas no matter how badly they treat customers. I will always remember how I was treated in my mad rush to find a gift on a list of toys I had never heard of. I approached the person dressed in a Toys R Us uniform at the baby registry, because she was the only employee I could find. Before even one word came out of my mouth she said "If you aren't here about the baby registry, I can't help you."

Hmm....Seems like Christmas is just the time that every single employee in a toy store, regardless of what department they are in, should be more than willing to help any customer that comes their way. They should at least be willing to direct me to someone who can lend a helping hand. At any rate, Toys R Us will be number one on my list of places to avoid next holiday season.

The King is Dead! Long Live the King!

I read an interesting piece by John Aiello of The SAVO Group yesterday. Citing a study by the American Marketing Association (AMA) and the CMO Council, John mentioned that salespeople spend approximately 40 percent of their time preparing customer facing materials while leveraging less than 50 percent of the materials created for them by their marketing brethren. Further, a study by Booz Allen Hamilton (BAH) finds that 85 percent of a company's brand image is determined by the direct interaction between the sales team and its target buyers.

 John took this and other information and weaved it into a discussion of sales-enablement applications and solutions. I'd like to take a slightly different tack and declare that (traditional) Marketing Is Dead! The BAH statistic points directly to a clear conclusion – the Customer Experience is King! People buy from people. Given their 'druthers most people buy from someone they trust. Trust is not established through pre-packaged support materials, but rather through personal and personalized interactions.

The best salespeople know that long-term relationships are worth more than short-term gain. These salespeople audition clients, trying to find the right match between client needs and what their company can deliver. If there's a better fit elsewhere they're not afraid to say so and move on – knowing that the customer will respect their honesty. This approach demonstrates commitment, and can even lead to customers altering their requirements because of the trust that commitment generates.

Traditional marketing has long been focused on analyzing markets, then creating and distributing content showing the value of the company's offering. The traditional approach is all about mass production and mass consumption –overwhelming the intended recipients with a barrage of value-laden content to move them to buy. The problem with this approach is that it's based on interrupting the customer with the message, and doesn't incorporate any feedback mechanisms allowing the customer to filter what they want to read/hear/see,

 The BAH statistics suggests that most sales people find relatively little value in the sales-support content generated by their marketing peers. In other words, the people closest to and most able to influence the sale don't see value in what should be "sales-aiding" content. The salespeople are, in effect, becoming the customer information filter in self-defense.

In a separate study the CMO found most companies don't systematically engage customers in new product/service development efforts.[1] In other words, most companies build stuff, then try to find people to buy it. This can work for a while, but eventually you'll come up with a dud – and the salesperson on the front line will be stuck trying to repair the damage this new product or service caused to the relationship.

The best marketing comes from actively soliciting customer feedback and using real-life customer experiences to refine and develop the brand message. When a company can show through its actions that it is an engaged partner with its customers, then those customers will reward that company with loyalty, and higher profits. Look at Amica Insurance, Costco, Google, Ritz Carlton, Southwest Airlines, TESCO or USAA. These are all organizations that have differentiated themselves by listening to customers, and then providing a superior customer experience.

We've moved from an industrial to a post-industrial world, from broadcast to narrowcast communications, and where customization, personalization, niche marketing, customer feedback and truly being engaged with the customer in a trusted partnership are the keys to success, Companies that enshrine these values don't need to spend huge sums on demand generation efforts, instead, their customers become their free marketing arm. And their salespeople's job (read "their employees and their customers") get a lot easier.

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[1] According to the CMO's Select & Connect: Strategies for Targeted Acquisition and Retention, nearly 75% of marketers don’t have a customer advisory board or council. Of those that did, only 6% said the board was “very critical” in product innovation.

CRM in Real World Interactions - Part 1

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 this week.

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?  Let me know and I will post your story.   

Next week I will post another example. I am thinking about drive-throughs…

Welcome Back! Long Time, No See.

I chose this title for two reasons. First, it has been two weeks since my last entry (I was on vacation and, believe it or not, it is good to be back). The second is to tell you all about my experience in Brazil, my home country, two years after I came to live in the U.S.

I wanted to see the restaurants and stores I used to enjoy for so many years before I moved. I wanted to see old places and old faces, and hoped for a wholehearted welcome.

Nobody recognized me!

I know I should have expected that. After two years, many things change, but somehow I managed to think I was special, remarkable and that people would remember me. Shouldn't they?

Well, after the initial shock, my professional side kicked in and I analyzed the whole situation from a customer experience standpoint. Of course, I was not remarkable to the shop owners. I wasn't a regular customer, just a prospective customer. I didn't remember their names, so why should they remember mine? But the point is that no matter how illogical or unreasonable my feeling was, I still expected to be remembered.

Every customer knows he is special. Everyone thinks that her needs are the most important. Everyone hopes to be treated as a special someone.

The problem is that you can't possibly know every one of your face-to-face customers, right? Well, more or less… Good salesmen always seem to know everyone. They enthusiastically welcome you every time with greetings such as "Long time, no see," "How have you been?" and "What do you need today?" Surely they don't remember everyone, but they "read" the customer and understand her body language. At the very least, they treat every customer as an old friend, even if it the first time they've met.

So what was wrong with all Brazilian places I visited? Do they all have bad salespeople? Maybe. But I bet the problem lies a little deeper. Stores and restaurants are starting to rely too much on technology and Customer Relationship Management (CRM) systems. Technology is great when you go to a website and it brings back your last purchase and suggests products you may want, but that doesn't work in the real world. At least not until the technology evolves to the point where you can be recognized at the moment you enter the store, before even talking to anyone.

   
For now, the closest you can get is the Sam's Club approach:

"May I have your Sam’s card, please?" asks the cashier... You reach for your wallet, search for the card among a dozen others and finally deliver it to him.

"One minute please," he replies, automatically scanning your items.
"That will be $107.35. How do you want to pay?"

You provide your credit card or cash, and the cashier quickly finishes the transaction while you read a sign that says "If the cashier doesn't greet you by name, you will earn $1.00."

"Thank you, Luis, have a good day!" says the cashier in a mechanized way.

Was that it? All that trouble just to hear my name before going home? Not exactly the way to make someone feel remembered or special.

However, several stores and salespeople are relying more and more on those techniques and forgetting to deal with the customers in the good old fashioned way—getting to know them (or at least acting as if they know them).

My next post will be about how to efficiently adapt CRM technology to face-to-face situations. But for now, suffice it to say that nothing will ever replace a good attitude in customer interactions.

Welcome back... And have a good day!

Satisfaction Not Guaranteed

Dell, Home Depot, and Northwest Airlines fail in customer satisfaction according to an article from Business Week.  These companies are focusing on revenue numbers and operating margins, but neglecting to look at the impact of dissatisfied customers.  Two noted companies that excel in customer service are Southwest Airlines and Costco Wholesale Corp. which can be attributed to well trained employees.

Cross-selling: helping or annoying the customer?

"Do you want fries with that?"

How do you feel when you hear that phrase? Are you grateful for the delicious, oily suggestion? Or are you thinking, irritably, "if I wanted fries, I would have ordered fries"? Or perhaps: "How stupid of them to suggest fries with my super-healthy organic fat-free salad"?

It probably depends on the context. And so it is with all cross-selling.

Sometimes, cross-selling is an expected part of the dialogue. Take the aforementioned fries for example. I don’t even bother mentioning that I want fries until I’m asked. I would almost find it to be rude to rattle it off as an initial part of my order. What if I overwhelmed the order-taker with my lengthy list of demands?

Conversely, there are the times that I have to call customer service about one of my credit cards. This process now fills me with dread. Why? Because I’ve decided I like a credit card company enough to earn them many dollars in transaction fees…yet when I call them, I know that I’m going to have to fend off their advertising spiels for their other services.

The company that is the worst in my life for this is Capital One. The phrase “selfish and opportunistic” springs to my mind immediately when I think of them. Their customer service reps are trained to shoehorn as many service offers as possible into the conversation. I suspect that if I were amicable, they’d go on for hours, perhaps even days, describing the many wonderful ways I can give them more of my money. But I’m not—I’m insulted and irritated. I’m even more irritated because I’m trying so hard to be polite. Making things worse, while I am on hold, I have to hear automated cross-selling messages.

So guess which of my credit card accounts I’ve recently closed?

The key to cross-selling is not thinking of every possible way to grab more of your customer’s wallet—it is looking from the customer’s perspective, to identify which of your services might genuinely benefit them. Does your company view cross-selling from the customer’s perspective, or its own?

Rite or Wrong Service?

Rite Aid, one of the nation's leading drugstore chains, was recently charged with selling expired merchandise and overcharging for products by the New Jersey Attorney General's Office and the New Jersey Division of Consumer Affairs.

Rite Aid says that the errors were caused by stores not adhering to standard policies and practices. Rite Aid seems to be a classic example of a company where the brand promise "With us, it's personal" is viewed as just a marketing slogan, rather than as a statement to be lived by every employee.

It's a reasonable assumption that Rite Aid doesn't have a corporate strategy to intentionally overcharge or sell expired products. However, for consumers, intent doesn't need to be an issue. The fact is that the company doesn't care enough to:

• Either see to it that responsible business practices are adhered to,
• Or (in a more proactive and extensive effort) expend resources to actively engage every employee in living up to its brand promise.

This problem is made worse by the fact that Rite Aid had previously entered into consent orders against precisely these sorts of practices. While Rite Aid was spending money on marketing to bring people into the stores, they weren't spending on the basic training and processes to ensure a reasonable (not even exceptional) in-store experience.

Is Rite Aid going to feel some pain over this? I've got to believe so. If I were a consumer, I wouldn't be shopping there. Would you?