Author Archives: Christopher Brown

This is the secret to delivering powerful Customer Experiences that only a handful of CEO’s know about!

Richard_Branson_Customer_Centricity

Why engaged customer-focused employees are vital to business success!

In today’s market, the majority of companies have very little to differentiate themselves from their competition. Their product and services are very similar if not identical. It is so easy to change to another company that it can be done in minutes or even seconds on the web. Social media can instantly let millions of people know what just took place. Customer expectations have changed and their demands are greater than ever.

Future business performance and sustainability will come down to whether or not customers continue to use your products and services or leave for an alternative supplier. It costs 7.5 times as much to gain a new customer yet the majority of companies spend their budgets on attracting new customers. What are you doing to retain your current customers?

MarketCulture’s purpose is to help companies recognize the importance of building stronger customer experiences that retain customers. We believe that inspired, engaged and empowered employees focused on customers are vital to success. It comes down to how the company delivers on its promise and ultimately it is all employees that make this happen. It takes one bad experience and you have lost a customer.

As leaders do you truly understand what your employees need in order to deliver a great customer experience? Are we telling them what to do or are we engaging them in what they believe is important? Richard Branson says that engaged and happy employees deliver superior customer experiences. Virgin enters markets where customers are dissatisfied. They quickly win a strong market share by providing great service with a touch of magic. Employees want to be part of the solution and feel that they belong. They want to be listened to and feel that their feedback contributes to the success of the business. Your employees are the ones that retain or lose your customers.

Companies today implement many tools that measure either employee engagement or customer satisfaction. They allow leaders to know whether or not they have happy/unhappy employees or satisfied/dissatisfied customers yet they rarely provide insight into how they can improve. Leaders need to understand what employees need to deliver the company’s promise and customer satisfaction.

“There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of Day 1 vitality.” Jeff Bezos – Amazon Founder and CEO

How do we engage employees to build stronger customer experiences?

Customer experience comes down to the way your company and employees behave – whether you deliver or not on your promise. It can be as simple as responding to a customer in a timely fashion or just the tone of your voice. Amazon is now one of the biggest companies, yet they have retained a strong focus on their customer experiences even as they have grown to employ more than 300,000 people. The test of a company is not when things go well but when they don’t. Customers are looking to receive the value they paid for or they will simply try an alternative supplier. Where do you start building a stronger customer experience? You can start with the customer and find out whether or not they are satisfied but that is after the event has occurred and maybe too late. Alternatively, you can start with those that create the experience – “the employee” – and find out what they need in order to be able to deliver a great customer experience.

Steve Job’s recognized this towards the end of his time as CEO of Apple when he said:

“It’s not about me, it’s about the company and it’s about the cause. It’s not about everything being dependent on me. I have to build a culture, I have to think about a successor, I have to think about setting this thing up to do well over time. And in the end, what matters is, I want Apple to be an enduring great company and prove it didn’t need me.”

How do we do it? – It is simple. Listen to your employees, find out what is important to them, engage them, act on their feedback, empower them to solve customer problems and they will deliver better customer experiences.

MarketCulture researched 100’s of companies across the globe that exhibited both customer-centric decision-making with employees empowered to deliver great customer experiences. Some of these companies included Amazon, Google, Virgin, Apple, and Ikea.

The research revealed 8 disciplines that employees act on to deliver great customer experiences. We found these disciplines used across the entire organization including all support functions. This was not evident in companies that deliver inconsistent customer experiences.

Through both quantitative and qualitative employee feedback companies are able to act on strengths and weaknesses in order to support employees in delivering superior customer experiences.

What – A unique employee assessed customer engagement measurement tool.

Where do we start? The first step is to discover what is important to the employees in order to provide a better experience for customers. To do this we need to engage the employees and gain their feedback. The Market Responsiveness Index (MRI) is a unique assessment tool that all employees, including leaders, complete. The MRI has quantitative (scaled questions/benchmarked) as well as qualitative feedback (verbatim comments). This will identify the strengths and weaknesses of your company against companies that use best customer-centric practices. This will create change and build future business performance through the retention and growth of customers. Studies have shown that companies with Customer Centric practices outperform the others.

What is the Market Responsiveness Index (MRI)?

The MRI is a web-based employee assessment, requiring 15-20 minutes to complete, that benchmarks employee behaviors within your business against the most customer-centric companies in the world. This translates into 8 key disciplines all with a strong focus on the customer. These are Customer Insight, Customer Foresight, Competitive Insight, Competitor Foresight, Peripheral Vision, Cross Functional Collaboration, Empowerment and Strategic Alignment. Your company’s performance in these disciplines has been shown to drive future customer satisfaction, revenue growth, and profitability.

The MRI will provide key benefits to your company.

1. Momentum, Engagement and a New Mindset: It will create focus and momentum for a Customer Centricity initiative across the business and can be used to drive the embedding process.

2. Measurement: It is designed to provide the basis for benchmarking and measuring progress on those customer-focused behaviors that drive customer satisfaction, advocacy, revenue growth, profit and plans for individual managers to drive improvements.

3. Gain Insights: Hear directly from employees on the key issues holding the organization back from being more customer-centric in specific areas and across the entire business.

4. Tangibility and Communication: It makes customer culture tangible for all staff by identifying relevant activities that support business strategies. Through its methodology and measurement process, it facilitates communication of clear priorities.

5. Gain broad employee involvement: It provides staff with an opportunity for input and direct engagement in Customer Culture initiatives and a forum for agreeing with actions to be taken and a feeling that they are a key part of the journey and contributing to its success.

6. Build a common language across the Business: It also acts as a tool for ensuring staff within the business “get it” and develops a common language and behaviors from Customer Culture initiatives. It forms the basis for ongoing discussions and actions deep within each functional group which is where the ultimate success in embedding customer culture will be determined through collaboration.

7. Accountability: It provides customer-centric behaviors that can be included in the Key Performance Indicators of managers and their teams.

8. Benchmark: It provides the business with a benchmark against some of the world’s most customer-centric organizations. How do you compare with companies like Amazon, Apple, 3M, Virgin and others included in the database? The current database includes more than 300 corporations globally across B2B and B2C and several hundred business functions and units.

Interesting in starting your journey to a customer culture? Learn more here.

This is why many business leaders waste half their effort and don’t even know it!

There is an old adage in advertising that says: “I know that half my advertising is wasted, but I don’t know which half”. In many cases, we know that all of it is wasted.

So it is with strategy and culture. Most senior business leaders spend considerable time on strategy – and rightly so. We do need to know where we are trying to go. But much less time – and sometimes virtually none – is devoted the other “half”: culture.

Some pundits believe “culture eats strategy for breakfast”. But that is beside the point. Business leaders need strength in both or at least half their effort will be wasted – and sometimes all of it. The strategy sets the direction and culture delivers (either well or poorly) the value of the strategy to the marketplace.

Our experience in many organizations across the globe is that the biggest missing piece is a customer-centric culture that is aligned with a customer-centric strategy. Repeatedly we find a lack of alignment between the stated strategy and what people are doing. Also, we see, more frequently, strategies that attempt to address and create customer value but the culture is not aligned with delivering to meet customer needs and desired customer experiences.

Aligning Customer Strategy and Culture

Aligning customer strategy and culture

You just need to see the disruption occurring in so many industries and almost from observation you can predict impending corporate collapse. Which retailers will survive? Which health services will prosper? It will be only those that develop a strategy centered on customer value and experience with a customer-centric culture across the entire organization that has the capabilities to deliver it.

If you have a question about the adequacy of your culture and believe you are not in the right-hand top box in the diagram, you should start by measuring it and benchmarking where you stand against the world’s best customer-centric companies. To discover the next steps on what you need to do, have a look at the groundbreaking book: The Customer Culture Imperative.

This is how to become the answer to your customer’s prayers

Pope Francis at general audience

The simple answer is to make sure you know what they are praying for!

We call this customer insight. In other words, what are your customer’s needs? What are they trying to accomplish and how can you help them achieve it?

While you as the leader of your organization might have these answers, can everyone in your organization answer these questions? Really great organizations have clear answers to these questions and are aligned and empowered to deliver the experience customers value. Their leaders are what we call customer-centric leaders.

Is the Pope a customer-centric leader?

My co-author, Linden was surprised recently when he spoke with a CEO of a multinational business this month and asked him who came to mind as a customer-centric leader. He immediately answered: “the Pope”! Linden said: “Tell me more”.

He then went on to tell explain that a customer-centric leader must be prepared to take risks and he or she must go out and meet with customers and spend meaningful time with them questioning and listening. This type of leader must be prepared to be challenged and also to challenge the current status quo and visit customers in the most difficult markets. This person needs to be authentic with customers and employees through an ability to communicate personal experiences that are relevant and create belief in their followers. He said the current Pope does all these things. He travels widely across different national cultures, talks with his “customers”, takes risks particularly with personal safety and is prepared to question current dogma in the Catholic Church. He comes across as an authentic person with those he meets and how he communicates to the world at large. It got me thinking. Can we learn something from the Pope about customer-centric leadership?

This type of leader must be prepared to be challenged and also to challenge the current status quo and visit customers in the most difficult markets. This person needs to be authentic with customers and employees through an ability to communicate personal experiences that are relevant and create belief in their followers.

He said the current Pope does all these things. He travels widely across different national cultures, talks with his “customers”, takes risks particularly with personal safety and is prepared to question current dogma in the Catholic Church. He comes across as an authentic person with those he meets and how he communicates to the world at large.

It got us thinking. Can we learn something from the Pope about customer-centric leadership?

This is how successful companies ride the waves of digital disruption

Wild blue

The tide of change from disruption is not just one wave, but a set of waves that continue to roll in and disturb the status quo in so many industries. These waves cannot be resisted but must be ridden by companies that want to survive and prosper. This is clearly seen in the retail sector and in services industries such as travel, transport, banking and insurance, health services and energy.

This sea change in business is now eliminating at least two options that so many established companies have relied on to survive.

One is “omission bias” that occurs when leaders worry more about doing something than not doing something. This has a psychological basis where we can see and measure the results of a bad move, but do not measure the costs of a move not made. However, when investments in customer culture and customer experience are not made, we can measure the impact of reduced customer retention and lower customer lifetime value to the business. These omissions to invest are clearly measurable in terms of their business impact.

The other is “loss aversion”. This is a risk averse approach of “playing not to lose” rather than “playing to win”. Psychological experiments in decision-making show that for most people the pain of loss is about double the pleasure of winning. Corporate culture has a direct impact on whether “loss aversion” is the dominant cultural characteristic. In those companies where “failure is an option” and people are empowered to make decisions and learn from their mistakes, then the loss aversion option is much less significant in how decisions are made. As an example, Amazon is continually experimenting and through “mistakes” learning to increase customer satisfaction and create new markets.

Its latest “mistake” occurred when the Amazon Alexa app apparently mistook a conversation by some young girls in Texas for an online order for a doll house and some cookies! I am not sure who made the “mistake” in this instance (you can decide), but there are lessons for Amazon regarding how they enable ordering via the voice activated Alexa AI system.

The most customer-centric leaders I have interviewed are all prepared to take calculated risks – a combination of curiosity of how to do things differently and better for the customer and the use of data and evidence that acts to provide the “calculation” of the risks. This is why we seek to measure the strength of a company’s customer culture because it provides both the quantitative measure of risk and the qualitative feedback from employees that provide many of the answers as to how customer value and experience can be improved.

The MRI is a unique tool to help leaders take calculated risks to ride the next wave of disruptive change, then the next and the next.

How a customer culture makes or breaks new product success: A lesson from Comcast

For those of you familiar with our work you will know that we successfully validated the link between a customer centric culture and new product success. Our chart below shows the links between our 8 dimensions of a customer centric culture and the key business performance outcomes.

8 Dimension Performance Links

Essentially organizations that develop a cultural focus that is obsessed with customers, outperform everyone else in the markets in which they play.

I just came across a great example of how this can work in reverse for a company that has not developed a customer culture – Comcast Cable.

Comcast recently announced a major new product – they are now a cell phone provider in the US market:

Comcast New Product Intro

Here is the reaction I found in some comments people who saw this announcement on LinkedIn (the majority of the comments were along the same line….):

Comcast New Product Intro Reaction

This is of course only anecdotal evidence, however, it is going to make it tough to make this product launch a success with an undercurrent of negative feelings towards the experiences many customers have had with the brand in the past….

How you treat your current customers today will have a massive impact on how they will respond to new product introductions in the future. 

Build your company’s customer culture today to ensure you continue to be successful in the future. Learn more in the Customer Culture Imperative, our award winning book.

Adapting to change by putting Customers at the center of everything: Lessons from Macquarie Telecom

Transforming Unhappy Customers into Happy Customers

“The Only Thing That Is Constant Is Change” – Heraclitus 500BC

It’s hard to believe this quote is from more than 2000 years ago… I can’t think of a more relevant quote to describe the times we are living in right now!

From a business context the change we are experiencing is the rapid shifts occurring in customer expectations and behavior. The companies that are embracing this are the ones that are winning and will continue to win in the future.

The question is how do we adapt to this changing customer environment, stay ahead and stay relevant?

Many forward thinking organizations are using increasingly sophisticated customer experience metrics to stay in touch with what their existing customers are experiencing. Specifically they have embedded these processes in a manner that makes it part of their organizational culture – we call this a “Customer Culture”. A great example comes from the work being done at Macquarie Telecom, a leading Telecommunications firm in Australia.

Macquarie’s CEO, David Tudehope, has taken a personal interest in leveraging the Net Promoter Score (NPS) methodology to help drive a customer centric culture. NPS is essentially a simple way to measure customer advocacy. It is based on answering the question – “How likely are you to recommend us?” on a 0-10 point scale. While a great methodology, it is not the right one for every business. What’s more important than the metric is the fact there is a focal point at which all employees can focus on and work together to improve.

For Macquarie, leveraging this methodology has been transformational. It has raised the visibility of the importance of customer experience on customer retention and ultimately business performance. It has also served as a goal that aligns everyone and drives collaboration across the firm.

What have Macquarie learned from their transformational journey that you can apply in your organization?

  1. Engage everyone in the journey – measure every significant touch-point as everyone has an impact on how customer’s experience the company
  2. Be Transparent – display results for everyone to see so teams can see how others are performing and compare results
  3. Celebrate individuals and teams – share great customer stories and celebrate teams with high NPS scores
  4. Integrate into hiring processes – hire people with a desire to create great experiences for others
  5. Customer Success gives employees meaning and purpose – connecting people’s roles with the impact they have on customers provides meaning, inspiration and purpose and will derive up engagement levels and ultimately people’s performance

What are the results?

Macquarie’s NPS is 60+ which means they have many more promoters than detractors (see this post to compare Macquarie’s NPS with the most customer centric companies in the world). While they are not the best in the world (they can still improve), they significantly outperform their competitors in the space they play in.

To read more about how to begin the journey to a customer centric culture, get a copy of our book, the Customer Culture Imperative or learn about the Market Responsiveness Index.

What happens when you don’t have a corporate culture obsessed with customers – Lessons from United

united_man_removed

A man is forcibly removed after not giving up is pre-paid seat on a United Flight

We witnessed one of the most extreme examples of what can go wrong in a business that has truly lost sight of its purpose.

As a former United Global Services member (United’s top tier for frequent fliers) I was appalled at how badly United handled a relative routine situation that probably happens multiple times a day in various cities across the US. What on first pass looked like the removal of a potential terrorist happened to be a paying passenger who was also practicing physician.

United sometimes over sells airline tickets in order to make sure they fill their flights and remain profitable. I am not against this practice, it makes business sense. However when this impacts customers, (and it inevitably will) this becomes a true test of an organization’s customer centric culture. Will it do what’s best for the customer? (A customer centric view) or will it protect a short term myopic view of its profits for that particular flight (a transactional view).

In this case United choose its policy and procedures over doing the right thing for its customers. Clearly there was an upper limit on what was available to be offered to make this situation right for their customers. United claims they offered $1000 to passengers to take another flight so that crew members for another flight could board to go to another plane – there were no takers. Instead of upping the compensation to a point that passengers felt like it was a fair deal, they decided to pick passengers based on their frequent flier status and other connecting flights. Three left peacefully although clearly unhappy and one refused resulting in the social media and traditional media storm that came after a video showed the passenger being forcefully removed.

Company Centric CEO Reaction – Oscar Munoz

Those of us that work in the culture space know that the CEO and top team set the tone and shape organizational culture.

Oscar’s initial response was to apologize for having to “re-accommodate these customers”. While externally he made attempts to diffuse the anger at the situation internally he sent a memo to employees that defended the crew’s actions, calling the passenger ‘disruptive and belligerent’ and praising his staff for going ‘above and beyond‘.

united_comment_twitter

I understand he wants to stand behind his employees, support them and not throw them under the bus for this incident but really he was trying to “protect” the company and the United Brand. This message also reinforces poorly thought out policies that do not get to the heart of what great companies do – they have a culture that puts the customer first.

Finally, two days later Mr Munoz has accepted responsibility for the disgraceful incident:

“I continue to be disturbed by what happened on this flight, and I deeply apologize to the customer forcibly removed and to all the customers aboard………. “No one should ever be mistreated this way.”

A colleague of mine recently relaid an experience he had in a very similar situation on an Emirates flight. He said they just kept increasing the enticement to get of the plane. Eventually enough people took up the offer. They ended up giving away 2 business class return tickets from Australia to Dubai  as well as accommodation plus $US600.

This price was small compared to what United will now go through…..

United takes a $255 million dollar bath.

The value of United has fallen by $255 million as a result of this one incident and the bad press and social media storm surrounding it. How much were they offering passengers to deplane again?

Eric Schiffer, CEO of Reputation Management Consultants, termed United’s handling of the incident “brand suicide.”

“When you go onto a United flight, you shouldn’t have to be concerned there will be blood or you will get slammed in the face,” Schiffer said. “I think you will see an effect on sales from those who are disgusted by the gruesome action. And it’s catastrophic for a brand’s trust.”

No doubt United will lose customers and it deserves to, what comes next is a question of leadership and culture.

If all employees have a customer centric mindset and are empowered to do what is right by the customer this would not have happened.

That’s what we do at MarketCulture. We help companies understand the importance of putting the customer at the centre of the organization – a mindset that establishes the idea that “What’s best for the customer is best for the business”