Category Archives: Freedom

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.

The key reason why Customer Centric Leaders can build billion dollar companies

One word. Empowerment.

As a leader it is not easy to “let go”. I find it a real discipline to delegate and enable others in our business to do it their way and to do what’s right for the customer. So many leaders rely on processes as a security blanket that enables them to feel comfortable with what is happening in their business.

But we can take a lead from Tony Collins, former CEO of Virgin Trains in the UK, who told me:

“I put my trust in people not processes”

Tony presided over the transformation of Virgin Trains from an internal oriented public service mentality (when Virgin took the franchise from British Rail) to a customer service culture with customer satisfaction levels and profitability as benchmarks for the European rail industry. This approach empowers people and teams to make their own decisions and not wait for approvals.

Ilkka Paananen Supercell

Supercell’s Founder wants to be the Least Powerful CEO

Supercell’s CEO, Ilkka Paananen, believes the less leaders control the more powerful their companies. Supercell, a Finnish company, was worth about $10 billion in 2016 from the creation and marketing of games accessed by digital devices. Paananen says he wants to be the least powerful CEO in the world. He believes the best people will make the best teams that will produce the best games. He explains it this way: “What I mean by this is that the fewer decisions I make, the more the teams are making. In a dream scenario that means the team is making all the decisions. A couple of years ago, we were working on something called Smash Land. Everyone in the company loved it, and it was so close to meeting its targets but didn’t quite make them. So the team went to a sauna together, talked it out and took the decision to pull the plug. I was travelling at the time, so they didn’t bother to consult me – they just emailed the company to let them know. That’s just how Supercell should work.”

He was inspired by the Netflix approach to operate like a top sports team. It reminds me of a conversation I had with a former New Zealand All Blacks rugby coach who told me that they coach in the belief that “ better men make better All Blacks”. Players are empowered to make decisions under extreme pressure on the field without consultation with the leaders. This makes them a world beating team that almost always wins close games.

As a CEO of a very successful Telecoms company told me recently, when he and his senior team “got out of the way” and let their teams do what’s best for their customers, his company dramatically increased its customer retention rate and customer satisfaction levels resulting in earlier customer account payment – happy customers pay earlier. This translated directly into sustained revenue and profit growth.

These examples constantly remind me to trust my team and our partners to get on with it and create great experiences for our customers.

Learn more in our award winning book, the Customer Culture Imperative.

It’s LEGO, not EGO – collaboration is central to LEGO’s customer-centric culture

The name LEGO is an abbreviation of two Danish words “leg godt” meaning “play well”. It was founded in 1932 by Ole Kirk Kristiansen and remains a family owned company. It has incorporated a number of characteristics specific to the Danish culture, such as a non-hierarchical structure – which translates into a very flat organisation in LEGO. So they look for people who are going to embrace collaboration and have fun. Even in sales teams that are normally very competitive they look for people to be more collaborative to partner and work with their teams to build longer-term customer relationships and brand loyalty.

There is no room for “EGO” at LEGO where employees at every level are expected to challenge their boss as a means of coming up with the best ideas.

LEGO’s CEO, Jorgen Vig Knudstorp says “Blame is not for failure, it is for failing to help OR ask for help.” This is reinforced by the owners of LEGO, who promote collaborative family values.

David Gauntlett, in his contribution to the book LEGO Studies (Mark Wolf, 2014) sees LEGO bricks (the product made up of interconnecting parts) as a social tool, fostering connection and collaboration spurring the potential of children and adults and their natural imagination. New employees are already customers who use the LEGO system to create new products – in many cases part of the job interview is to design a new LEGO product from a bunch of bricks provided.

Collaboration – up, down and across the organization and with suppliers and customers – is a secret to LEGO’s spectacular growth over the last 10 years. It has given them the capability of customer foresight – a cultural ability to develop and deliver new products that excites their customers’ imaginations and creates incredible loyalty and advocacy.

To find out more about how you can create this culture in your business, read our book, “The Customer Culture Imperative“.

Lessons from REI: Aligning your People

We have just completed one of the busiest weeks in retail in the United States, with Black Friday for the physical stores and Cyber Monday for the online retailers. This week now blends together with doorbuster deals bombarding us constantly online and instore in the week leading up to Thanksgiving as well as weekend afterwards.

What is different this year is that some major stores have decided to stay closed during this period. In the land of the consumer this a really big deal!

One chain in particular stands out, REI, the outdoor recreation retailer with more than 12,000 employees and 140 stores around the US decided to close this past Black Friday. See below, their CEO, Jerry Stritzke’s 30 second announcement:

 

“We believe that being outside makes our lives better. And Black Friday is the perfect time to remind ourselves of this essential truth.” – REI CEO, Jerry Stritzke

So what is behind this decision? I believe it is to better align REI’s core values with its actions in the market. REI’s core mission is “to inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.”

What better way to live that mission and align all of their people around it than closing on a day that allows their own people get outside and live the company’s mission.

Now that all sounds great but how does that help their customers? No doubt some customers may be inconvenienced by their physical stores being closed. However they will still have a small number of staff manning their website so they are not completely close for business.

REI are reacting to growing concerns by their customers and others that retail in general is overshadowing the core purpose of thanksgiving which is to celebrate with family and friends. They are betting that this decision will pay off over the longer term by aligning their people with their mission while also meeting the changing expectations of their customers.

Ultimately if you want your people and customers to really buy-in to what your company is about you must walk the talk, for me this is strategic alignment in action!

Interested in what it takes to be truly customer centric? Learn more here

Empowering Employees to do the right thing for customers

chateau_elan

When we measure the customer-centric culture of organizations around the world, one of the recurring themes is a low score on “empowerment”.

Lack of empowerment – real or perceived – has a huge impact on the ability of frontline staff to solve a customer’s problem. It also has a big impact on costs and is seen in many ways – duplication of work, mixed messages to customers, bottlenecks and slowdowns in customer service, and new product introductions – just to name a few.

For frontline staff to be empowered to solve customer problems or rapidly respond to customers’ requests a business needs a culture that encourages staff to be accountable for ensuring a solution for the customer is delivered. They need to have the confidence to make a decision that is right for the customer without fear of retribution from their managers if it seems to cost the business money. If they can’t fix it themselves they need to be confident that those who are alerted to the issue will fix it for the customer quickly.

A great example of this is seen in the hospitality industry. Chateau Elan, a boutique resort hotel with a property each in the United States and Australia has created an empowered culture in which a customer can ask any member of staff to do something for them – book a restaurant or a cab or get extra towels in their room. The immediate response by the hotel employee is “consider it done!”

This is an emphatic promise to the customer that it will be done. Not only does it give confidence to the customer but it empowers staff to collaborate and ensure the customer is satisfied.

How do you go about creating a customer culture of empowerment in your business?

3 Traits a Company Culture must have to create great customer experiences

warning-you-are-being-watched The way customers are treated by your company is a direct reflection of your company culture. If you have a culture based on fear and mistrust, customers will experience the ramifications. Have you ever felt like you were being treated like a criminal for returning a product or complaining about a service? It is highly likely that employees are punished for not following the rules, as a result customers are also punished for mistakes or speaking up.

Company culture can be a difficult thing to define, but just about everyone that works for a company can feel it or describe it in some way.

Software Advice, an online reviewer of HR technology, recently conducted some interesting research that demonstrates the wide range of views from employees on what makes for an attractive company culture. The most cited cultural trait that would attract employees? Honesty and Transparency.

Source: Software Advise

Source: Software Advice

Transparency

This leads us to the first of 3 must have traits, Transparency. Employees want to know where they stand, if the leadership is opaque and vague about performance expectations or what success looks like this is a recipe for low morale and poor customer experiences.

Empathy

The second must have trait is empathy. Empathy is about understanding the other person’s position, in this case understanding the customer’s point of view. What do customer’s experience? What are they trying to achieve? What are their frustrations and how can we eliminate them? A culture of empathy extends to how employees work with each other, what are the other department’s goals and how do we help them achieve their goals as well as our own. Companies that lack empathy end up with unhappy customers that leave.

Trust

The final must have trait is Trust. This relates back to my opening point, a culture of fear results in employees not trusting customers. The customer is out to get them, scam them, take advantage of them just like everyone else in this place! Low levels of trust narrows our thinking, employees go into a survival mode that results in short term wins at the expense of long term relationships.

Have you ever had the feeling you are not welcome when you walk into a retail store? (See the image at the top of this post) Unfortunately in retail, theft is a major problem, however, as with most major problems it is subject to the 80/20 rule. In other words most people are not thieves but the signage and the retail staff’s attitude can make everyone feel that way – not good for business…

Are these cultural traits present in your company?

Being customer centric means being people centric

I was talking with a friend last week about the challenges of developing a customer-centric culture in large organizations. He used the word “customerization” to refer to the process of developing a “customerized” culture. I found a definition in Wikipedia as follows: “Customerization is the customization of products or services through personal interaction between a company and the customer. A company is customerized when it’s able to dialogue with individual customers and respond by customizing its products, services, and messages on a one-to-one basis. Customerization requires a company to shift its business model from seller-centric to buyer-centric. My friend, who has an organizational change background, was saying that the concept of “customer” has very wide application because when a person thinks of another person – colleague, boss, partner, buyer – as a customer, it acts as a way of developing relationships between people. He recalled reading somewhere that

“If you want to be a leader you first have to be a person.”

He then concluded “to be customer-centric you must be person-centric.” He believes that this touches on a fundamental human truth – “that if people are responded to as humans inside and outside a business, that is to be seen and heard, it creates such a strong connection as to engender a powerful loyalty.” If “customerization” of an organization’s culture is based on these fundamentals, and of course delivers products or services of perceived value, then it seems that it will have very loyal employees and customers. We have seen with companies like Intuit, NetApp, Mercedes Benz, Genentech, Salesforce and W.L. Gore – that rank highly among the “100 best companies to work for” – both their employees and customers are fiercely loyal. How do you think your company does on the fundamentals of  “customerization”?