Category Archives: Customer Centric Values

Amazon Founder Jeff Bezos explains how he drives a passion for customer obsession with his senior leadership teams

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Creating a customer-obsessed culture requires strong leadership and one of the very best exponents of the practice is Jeff Bezos of Amazon.

Even though Amazon now employs more than half a million employees and serves more than 300 million customers, Jeff Bezos personally reads every customer complaint email sent to him. While he does not respond to them personally, he is immersed in them as a way to stay in touch with the reality of what is going on in the business.

We call this, customer immersion, and it is one of the most important activities any CEO can engage in.

So how does he manage the wide range of customer complaints/feedback he receives directly?

He is known to forward the email directly to the leader accountable for that area with a simple “question mark”. The question mark is his short-hand for can you look into this? why is this happening?

Leaders know they are then on the hook to drill into the issue and find out what is happening and resolve it in a systemic manner, ie so it does not occur again!

And this is the crux of what makes a customer-obsessed culture different, leadership takes this seriously and follows through on making the changes necessary so that the source of the complaint is eliminated…. this simply does not happen in most organizations.

This approach gives Bezos a frontline insight into what customers think and experience. It is a huge leadership advantage as he can maintain a pulse on what is actually going on across Amazon’s massive and complex business.

In this great article by Julie Bort, Jeff explains:

“The thing I have noticed is when the anecdotes and the data disagree, the anecdotes are usually right. There’s something wrong with the way you are measuring it.”

For 10 years MarketCulture has helped leaders around the world understand how to engage employees in building a customer-obsessed culture. The MRI Assessment provides valuable feedback to leaders they can act on to enable employees to deliver great customer experiences.

MarketCulture has proven scientifically that a stronger customer culture will drive increased business performance through retention of customers and increased advocacy.
Contact us now to find out how we can help your company become customer obsessed.

Culture eats customer experience quick wins for breakfast – its time to get truly customer obsessed!

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Apple’s culture continues to reinforce Steve Job’s approach to designing using a customer lens and working backward.  Source: Apple’s WWDC18

A recent article by Nadia Cameron from CMO highlighted a panel discussion in which many leaders acknowledged the quick wins for customer experience improvements are over.

It’s great to see more and more senior leaders recognizing the need to go deeper and look at organizational culture. Whilst it can be more difficult work, it is also longer lasting and more sustainable if leaders put the effort in to change the cultural emphasis towards making customer’s lives better.

So how are CMOs and other leaders looking to address culture?

One of the best examples comes from Rachael Powell, the Chief Customer and People Officer for Xero, they are taking an inside-out approach by focusing on their people and how they impact the customer’s experience.

Xero has recognized the intimate connection between how employees are treated and how they, in turn, treat customers:

“It really is about starting with our own people first who are the biggest ambassadors for our brand, winning their hearts and minds, then resonating that out to our channel, which is bookkeepers and accountants, and ultimately the end customer sitting at the end of the spectrum,” she said. “If we achieve this, we go from having 2000 ambassadors, our people, to having hundreds of thousands of ambassadors globally.”

They also appear to have a strategy for shaping their culture over time with 2 of 6 pillars sitting with Rachael: “great people and teams, and love and protect our customers”

It will be interesting to follow the Xero journey as they continue to grow!

Over the past 10 years, MarketCulture has researched 100’s of companies including Google, Virgin, Amazon, and Apple to find out what they do differently when delivering great customer experiences.

Could you create change if you knew the strengths and weaknesses of your company compared to these companies?

The MRI assessment provides the golden insights to create change! Contact us now and we will show you how!

How do leaders become customer-centric?

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Source: OCEAN/CORBIS

To answer this question it can be helpful to start with the opposite question: why aren’t leaders Customer-Centric? In many cases, it appears to depend on chance!

There are many reasons leaders are driven away from being truly customer-centric:

  • the dominant profit and shareholder value focus in many organizations,
  • the siloed and internal focus in most large corporations,
  • the pressure on short-term results at the cost of customer relationships and customer value.

But these are not the most important reasons!

In our research of more than 65 senior leaders around the globe customer-centric leadership occurs by chance – an upbringing in a family that runs a small business, working for a boss who happens to be customer-centric, an experience in a business that is ruined by lack of attention to customers.

What is lacking in organizations and tertiary learning institutions is the systematic training and development of leadership with a specific customer-centric focus.

There are virtually no university courses around the globe dedicated to the teaching of customer-centric leadership. Most organizations do not have this as a focused L&D program for senior leadership, the extended leadership group or for prospective and aspiring leaders.

How can you expect leaders to have the new currency of customer-centric leadership required for success by the new world of disruption and customer-driven strategies if you leave it to chance?

There are simply too many organizational pressures working against it.

Don’t leave your organization’s fate up to chance!

There is an answer. Research reported in The Customer Culture Imperative tells you what is required. Learn more about our dedicated Learning and Development program for leaders at here.

Failure of Culture: Australian Cricketers do the Unthinkable.

Cricket Bowler in Action

The game of cricket is central to Australia’s self-image – we believe we play the game hard but fair and always within the spirit of giving everyone a fair go, whether it be a sport, business or in our relationships with people. As a country, we don’t cheat but want to win fair and square.

When someone does something wrong, we say “it’s just not cricket”.

Universally recognized as the greatest cricketer (and one of the greatest sportsman anywhere) of all time, Australian Sir Donald Bradman, said: “When considering the stature of an athlete, I place great store on certain qualities to be essential in addition to skill. They are that a person conducts his or her life with dignity, with integrity, with courage and perhaps most of all modesty. These virtues are totally compatible with pride, ambition, determination, and competitiveness”.

In March 2018 when the Australian cricket captain, vice-captain and a new player to the team were caught on camera and admitted to a preplanned act to illegally tamper with the cricket ball during a game to make it more difficult for the opposition batsmen to hit, it struck at the heart of what it means to play the game, but more fundamentally struck at the heart of who Australians think they are as a nation – “we are not cheaters”.

In the 2015 Deflategate controversy in America’s National Football League (NFL) it was alleged that Tom Brady, the famous New England Patriots quarterback, probably knew of the footballs being supplied for games by his team were deliberately deflated. This ended with Brady receiving a 4 game suspension and the Patriots receiving sanctions.

This is not new in cricket, football or in other sports – think cycling, think baseball, think Olympic athletes from a myriad of countries and sports. In some countries and sports, cheating is systematic and inherent in their culture.

But for Australian cricket, this was a tangible result of a failure of culture ending in an uproar from cricket fans and the public. Standards of the on-field behavior of Australian cricketers have been deteriorating for years with “sledging” (personal insults) of opposition cricketers becoming the norm. This type of mindset has lead to a “win at all costs” culture and ultimately to a belief that doing something illegal (so long as you can get away with it) is acceptable. Some reports suggest that this ugly behavior has flowed down through the grades of cricket even to schoolboy cricket.

Unlike the famous All Blacks, New Zealand’s world champion national rugby union team, Australian cricket – some players, coaching staff, administrators – has lost sight of who are its most important stakeholders – namely the fans and its custodian role of representing the pride of the Australian nation. In preplanning the ball tampering act no-one asked the question: “What would the fans think of this?” or “What would the average Australian think of us doing this?” More broadly – “what do the majority of Australians think of our on-field behavior?” There was no consideration of the legacy left by Sir Donald Bradman.

This been a breach of trust that will take time and sustained effort to regain. It has also resulted in commercial losses from withdrawn sponsorships and likely reduced revenue from broadcast rights.

This is a lesson to all of us in business. What are we there for? – only ourselves or some greater cause?

When you are in doubt over a decision you are taking, ask the question: “What would our customers think of us doing this?” or even more personally “What would my mother think of us doing this?”

But, there’s an even bigger question.

Do we have a corporate culture that encourages good behavior and automatically doing the right thing by our customers and our community?

While seemingly abstract, your company culture produces tangible results for your customers – good or bad.

Our vision at MarketCulture is to help leaders understand the importance of building a customer-obsessed culture by engaging employees (or cricketers!). Our assessment, the MRI, provides valuable feedback to help leaders act on what is vital to deliver great customer experiences, which will lead to increased business performance.

Is your company customer obsessed? MarketCulture has a unique tool that can provide the strengths and weaknesses of your customer culture against 100’s of companies like Virgin, Apple, Google, and Amazon. Mention this post for a free pilot of the MRI today!

A Customer-Obsessed Culture is like employee engagement on steroids

 

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Can you imagine a business where everyone connects with its true purpose and gives the very best of himself or herself every day to deliver on that purpose?

What an awesome place that would be to work! And wouldn’t you love to be their customer!

Unfortunately, there are only a few organizations like this in the world today. However, the good news is that many more companies are actually aspiring to be that way.

I don’t care what business you are in; you must foster a new operating model to be successful in today’s business environment.

What makes it different?

The old school autocratic, all-knowing CEO is out, the age of talented teams focused on customers is here.

We call this customer culture, an environment where teams of people work together to deliver unique, valuable customer experiences.

The evidence for the need to create this type of culture is everywhere, all around us.

Nowhere to hide.

Companies can no longer brush poor customer experiences under the carpet, there is a large and vocal customer constituency that will voice their opinions and these will influence whether or not others are interested in your products and services.

Purpose matters.

The days of people turning up for work for a paycheck then turning off is gone. If you spend more than half of your living hours working it had better be for more than just a paycheck.

More than ever before younger workers are looking for meaning in their work, why am I doing this? Where is the meaning?

Customers want to know why you do what you do.

Simon Sinek has recognized that consumers today care about why you do what you do as much as what your offer. If you are just in business to make money for shareholders, I think you will find it a tough environment to compete in. Do something to improve my life, the life of our community, the world or the environment…

Employee Engagement is not enough.

While employee engagement is important, it is simply not enough.

For organizations to succeed they need engaged employees that are directing that energy and passion towards solving problems for their customers.

In fact, we have found engaged employees are the result of good leadership (fair consistent, transparent, inspirational), a strong culture and people doing meaningful work for their customers.

You can’t make someone engaged in their work but you can create the environment (culture) where it is much more likely to happen.

Your call to action:

For 10 years MarketCulture has helped leaders around the world understand how to engage employees in building a customer-obsessed culture. The MRI Assessment provides valuable feedback to leaders that they can act on to enable employees to deliver great customer experiences.

MarketCulture has proven scientifically that a stronger customer culture will drive increased business performance through retention of customers and increased advocacy.

Contact us now to find out how we can help your company become customer obsessed.

Why being customer obsessed pays! Lessons from the CEO of massively successful startup Naked Wines

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Luke Jecks, the Former CEO of Naked Wines, founded and led an online wine business that operates in the US, the UK, and Australia. The company connects wine lovers with boutique wineries and uses a subscription model where “angels” – consumers who pay a monthly subscription to help fund the winery’s next vintage – are able to order their favorite wines and pay for them from their subscriptions. It is a customer-funded wine business.

I asked Luke how this came about.

He replied: “The most important thing in the wine industry is that the only way this online business could work would be if we could have consumers that were “sticky” to the business. If we could get loyalty in perpetuity we would not have to be a business that is constantly out there chasing new sales. Instead what we could do is invest in loyalty in the consumer and if we did that we would have a sustainable business.”

“So we needed a model that did not trap consumers but made them want to stay. So the questions we had to answer were: How do you reinvent the wine club and its benefits with a subscription that had no cancellation fees, had no minimum period of membership, you could walk away at any time, and any money you put into the subscription you got back?”

“We found that a segment of wine consumers need to see a choice, a benefit, a feeling of being in control and where they feel they can connect with the values of the business. We felt that to keep customers in the long term we needed to make them feel proud – because they mattered and were part of the key wine choices being made and understood their role in making the business a success and the winemakers successful. Also proud because they feel they are doing good through the stories behind the winemakers that can’t happen without them”.

I asked Luke how this relates to customer-centricity. He said: “To me, you must have an “attract” model and not a “trap” model. It is a model where the customer plays a vital part in the success. So it is important for us to measure the customer lifetime value – that is how long they stay with us and how much they spend. That is much more important than today’s transaction. We believe that if we can get loyalty, we will get sales. We tested this by sending “high engagement” emails to half our consumers and “buy” emails to the other half. It turned out that the “engagement” emails created loyalty and those consumers bought more. We asked our consumers to rate their happiness with us. We found that people who rated us 5 stars (90%-100%) had much bigger lifetime value. So we set about investing to get 90%+ ratings by putting more people in the business, paying our staff more, investing in career programs for our staff and empowering them to empower our customers.

I asked Luke what has been the result. He said:

“From a standing start 5 years ago Naked Wine now has more than 100,000 angels. But more important than this number is the high level of loyalty. This has created a growing, profitable and sustainable business.”

A truly customer obsessed business has loyal customers that buy from you because they want to – and stay with you because they see that you care and that they are important. It is a business, like Naked Wines, that invests in and empowers its people to fully engage with their customers to create great customer experiences. This translates into increasing customer lifetime value. Sustainable profit and growth follow.

Hear more from Luke in this previous post – “What is the kryptonite for disruptors?”

Learn more about creating this culture in our latest book, the Customer Culture Imperative.

Are you an obsessive member of the Secret Squirrel Club?

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“We are not members of the Secret Squirrel Club”, says Peter Cooke, President of Wright Medical International. This was in response to my question about the leader’s role in customer engagement. In a meeting last year Peter and I were talking about customer-centric leadership. He went on to say “ that in order to create alignment between leaders and our employees to do the right thing for customers we must trust them with all the information they need to create a great customer experience – don’t keep it a secret. This includes financial progress of the company and the latest innovative initiatives occurring in different parts of the world.”

Peter continues “To do this we need a depth of competence at the top with leaders that have a high willingness to collaborate. We continually communicate the 3 or 4 key themes – we call them the vital few – to all employees in the business and the leadership team stands behind these themes and cascades them throughout the company and infuses them at every level.

Customer Centric Leadership Traits - TRUST

I asked him why employees are so important and leaders must avoid falling into the trap of not sharing information and becoming a member of the ‘secret squirrel club’. Peter replies “Success in business comes about by making the customer feel special. It’s that human contact that hooks you in as a customer. That’s the essence of customer engagement. To me, people buy from people. That’s what makes a difference. That’s why we are working on strengthening our customer engagement and aligning a collaborative culture at Wright Medical International to do what’s best for the customer and show that we really care.”

When you think about it, even in this digital age, when customers have a problem they are comforted by a human voice – whether it be by phone, through a chat function on a website, or even better, a face-to-face interaction. The moments of magic for customers are ultimately created by people. This can only occur if everyone in the business is aligned with what customers need and how a great customer experience is delivered.

If it’s kept a secret – that is, information and experiences are not shared – your employees become dissatisfied and your customers and business suffer the consequences.

Learn more about why a customer-obsessed culture pays in our latest book, the Customer Culture Imperative.