Category Archives: Voice of the Customer

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.

Trump – the ultimate salesman but now comes the true test, will he deliver?

 

trump

Love him or loath him, one thing seems certain. Donald Trump understood the perceived needs of the middle-American “working class” and their real needs for a bigger share of America’s wealth. In business we refer to them as disenfranchised customers. In this case it was a huge proportion of the electorate that felt abandoned and had lost hope of achieving “the American Dream”.

The decisive power of a customer centric sales approach is on show here. He had the odds stacked against him – the media, the Republican party leaders, less resources than his competitor, a perceived lack of authenticity, a flawed character on show for all to see, a dubious business track record and inconsistency in his views. Any independent marketing observer would say the Trump brand was tarnished. Yet he prevailed.

Why? He listened to Americans, understood their anger and concerns and revived their aspirations. He understood how to communicate to them in a way they could understand and he effectively used fear as a motivator for action – in this case bringing them to the polls to vote for him. He used the old maxim – “the fear of loss is greater than the desire for gain”. It demonstrates that if you can tap into real needs and create an emotional connection that demands action you can create a following and eventually loyalty irrespective of flaws or weaknesses in your product. Such is the power of a customer-centric mindset. We might say customer centricity “trumps” strategy and superior resources.

Donald Trump has done the first bit of being customer-centric – creating perceived value in the minds of enough Americans to deliver him the presidency. Now he has to deliver the promise.

How he does that will require strong customer-centric leadership – ongoing insight and foresight and a team that has the mindset, capabilities and strategy with an alignment with the external environment that delivers value to middle-Americans. He will need to be consistent in his communication, be prepared to act on feedback that may differ from his own views and implement policies that will deliver on his promise. He will need to do even more than that – demonstrate his authenticity as a leader who really cares more for the American people than himself and demonstrate a character that commands respect and even admiration.

If he cannot do that he will be a one-term president.

Many senior leaders are like Donald Trump. They talk the talk and communicate great promise to their employees and their customers. But a majority of them do not display customer-centric leadership, do not walk the walk and don’t demonstrate they are in it for the long term value for delivery of value to their customers, employees and community before rewarding themselves. Those leaders are transitory, do not leave a legacy and often create chaos for all around them.

If you want to know more about customer-centric leadership contact MarketCulture and read The Customer Culture Imperative.

Customer Centric Leadership in Action – A lesson from Elon Musk

tesla_charging_station

One of the central tenets of being a customer centric leader is listening to customer feedback and responding with action.

There is no better recent example than Elon Musk’s response to a customer complaining about the Tesla charging stations being used simply as car spaces.

The Tesla customer complaining happens to be Loic Le Meur, a fellow entrepreneur and major tech influencer, with 130k followers on twitter. You could argue that probably holds more weight than just your average customer but clearly the issue was one bubbling up and on Elon’s mind.

Here is the interchange from the two on twitter below:

elon_musk_twitter_response

Loic’s tweet was responded to within 20 minutes and within 7 days the press announced “Tesla to begin charging idle fees to those remaining on the charger beyond a full charge”

As the team at OfficeChai reported:

“Tesla was going to charge $0.40 for every minute a fully charged Tesla would stand at its parking stations after a five minute grace period. This simple change would ensure that people wouldn’t leave their cars at parking stations, preventing others from using them.

And what’s incredible is the pace at which the product change was implemented. Tesla might still call itself a startup, but it hardly is one – it has over 30,000 employees, and large engineering teams. To have a product feature conceptualized, implemented and shipped in a week is nothing short of miraculous.”

Now this might not be the perfect solution but Tesla will listen to customers and refine further as needed.

This is what customer centric leadership looks like in action, in this case led from the top. Elon’s expectation is that everyone in Tesla is listening to customers and responding to continually refine and improve the experience and value being offered.

Are you are customer centric leader? Find out more in our book, the Customer Culture Imperative

 

How to generate customer insights without another survey!

starbucks_ideas

While surveys are useful at collecting information on customers and how they feel about certain interactions, products or services there are other ways to gain meaningful insights.

First let’s define what we mean by customer insights:

Customer Insights Defined: a deep understanding of a customer’s needs and behaviors—both known needs that the customer can identify, and the latent needs that they cannot.

It also helps to begin by framing the type of customer insight you are looking to uncover. There are 4 main categories of customer insights that are useful to driving business performance.

1. Strategic Customer Insights – these are used to inform the company’s strategy by understanding what unique market segments exist in the marketplace. For example in the telecommunications industry there are a wide range of different types of customers with unique needs. Some customers now use smartphones as their primary internet device, their needs will be different from customers that still use cell phones primarily for phone calls and text messages.

A deep understanding of the needs of different market segments allows a company to determine which segments are most attractive. This customer insight also allows a company to identify where it needs to improve its own value proposition in order to attract and retain customers from each segment.

2. Program Specific Insights – these are insights specific to a component of a business strategy. For example, a manufacturer looking to roll out a training program to its retailers would need insight into the most effective methods to educate retailers. Should training be conducted in person, via a webcast or through a self service portal?

3. Product and Service Insights – these are direct inputs into how products or services could be improved. A great example of this in action is “My Starbucks Idea”, an online brainstorming tool driven by customers. Customers share ideas and other customers can vote on them so the best customer driven ideas rise to the top.

4. Insights for Marketing Communications – understanding what media and mediums customer’s use to get information informs how companies can more effectively reach and communicate with potential customers. For example if the customer group in question is predominantly focused on using social media, understanding which social media platforms they are most engaged in will help direct communication resources.

So now to the question of how to generate insights without surveys…

Customer insights can initially be generated from reviewing existing publicly available research and data as well as data internally available to the company. This often involves internal interviews with experts in markets and front line people that interact with customers on a regular basis. While this is useful it is secondary research, a review of what already exists and while it can generate new insights it is more useful for gaining alignment around what the company already knows about customers.

To gain deeper unique insights an ongoing process should be implemented that involves primary research. This doesn’t need to be complicated or only handled by marketing research profession in fact it is more impactful when people across the organization are involved.

Customer Immersion Activities

The most time and cost effective way to generate insights is to simply talk with customers. In today’s world this can include a range of mediums from one on one interviews to focus groups to online forums like the one Starbucks runs or Ideastorm, Dell’s equivalent.

Now I realize that technology products and coffee are highly engaging products with many willing participants, what if you sell toilet paper or a product that inspires less passion?

For these less inspiring categories a great source of insight can be customer complaints. Barbara Buchanan has written a great article titled “Mining Complaints and Negative Social Media May Have Positive Consequences” including some examples from the banking and manufacturing industry. The key is making it easy for customers to complain and provide feedback in real time, in the moment. For example a Hospital in California installed posters around the hospital with a QR codes. Patients can scan the QR code on their phones and immediately send a manager a message about an issue. Managers receive these in the form of text messages and commit to responding immediately and resolving issues as fast as possible. Patient satisfaction has doubled in the past several quarters as a result.

qrcodes_feedback

Going Deeper by Observing Customer Behavior

Ethnographic research can provide deep insights into people’s behaviors and unmet needs by taking a holistic view of customers in their own environment.

This is a more expensive technique but can yield unique insights. A great example comes from a day in the life analysis of  women cleaning their homes in Italy. A US company after failing to gain success with an all purpose cleaner for the home in the Italian market, undertook ethnographic research to understand why the product was failing. It discovered that Italian women spent 4 times as much time cleaning their homes than US women. They were fastidious and extremely house proud. They used specific cleaners for specific jobs as they believed an all purpose cleaner simply would not get the job done. These insights allowed the company to reposition the cleaner to focus on meeting a more specific need – benchtop cleaning. The repositioning resulted in a much more successful launch into the italian market.

Piloting New Products or Services

This involves putting new products or services in front of customers to gain direct feedback. A modern version of this can be seen on websites like Kickstarter, where entrepreneurs and intrapreneurs can essentially describe a product or service and raise funding for the idea. This is really the ultimate way to test concepts, will customers pay for it? One of the most successful products launched on Kickstarter is the Pebble Watch. It launched 18 months prior to Apple announcing their own iWatch. It is now raising funding for its second version and has raised almost $10 million to date.

Mining Social Media

The last incredible source of rich customer insight exists within a wide range of social media including Facebook, Twitter, LinkedIn, Yelp, Pinterest and other online communities. There are a range of different companies that can help mine this online data and distill sentiment and feedback in a meaningful and actionable manner. A great list of the top 50 tools is provided here by Pam Dyer.

While surveys remain a great way to elicit direct feedback on specific topics of interest to the company, there are many other ways to generate insights that should be incorporated into every company’s way of doing business.

3 reasons why customer centricity’s time has come

the_time_is_now The world of business has rapidly transformed over the past 15 years. From a world where businesses controlled supply, controlled the message and could dictate terms to customers to one where customers have a much louder and more influential voice.

While we have always been advocates of businesses that act in the best interests of their customers, it seems market forces are now compelling all businesses to behave this way.

So why do we believe 2015 is the year for Customer Centricity? 3 reasons.

1. Customer Feedback Systems are going enterprise wide.

Companies have been measuring customer satisfaction levels for many years. Often these surveys have been conducted once a year, presented and then forgotten about. This type of survey methodology is rapidly changing, becoming real time and supported by great technologies to get the right feedback to the right person at the right time. In fact technology is enabling enterprise wide feedback mechanism that were never previously viable.

While this is a great positive trend for companies that realize they must become more customer centric, it is not enough for these to remain only the domain of customer service or marketing.

Being customer centric is a way of doing business that is not only about sales, marketing and customer service. It involves every department understanding their role in creating a great customer experience. Many forward thinking CEOs recognize this fact and are working on transforming their organizations to meet this challenge.

2. Convergence of customer experience and employee experience.

Today there is a recognition that employee experience impacts customer experience. If employees are not given the opportunity and tools to change the way they work, the customer experience will suffer. Being customer centric means understanding that every interaction with customers allows them to form an impression, good, bad or indifferent. It truly requires everyone in an organization to be engaged in delivering great experiences.

The bottom line here is that you cannot create truly engaged customers without truly engaged and passionate employees.

3. Recognition that Customer Centricity is a Leadership Competency. 

Being customer centric, requires leadership that is customer centric. Leaders need to be engaged with customers first hand. Leaders need to immerse themselves in the customer’s environment and experience what customer’s experience. I wrote about Telstra’s (A $20billion telecommunications company) Executive team engaging in this practice previously here. We are seeing this become the norm in many other large businesses around the world.

There is also increasingly a realization that leaders of all disciplines need to develop their customer centric thinking and leadership competencies.

We were recently honoured that our Book, the Customer Culture Imperative  was nominated as one of the Top 20 and later short listed after a public voting period to the final 5 for the Marketing Book of the Year – 2015. Perhaps some further proof that Customer Centricity’s time has come!

Amazon’s customer centric moment of truth

jeff_bezos_amazon Image credit: Steve Jurvetson/Flickr

I have been a fan of Amazon.com for many years, in fact I wrote extensively about them in my new book, the Customer Culture Imperative.

However some recent news about some of their practices have caused me to pause and question whether they remain true to their stated vision as being “the most customer centric company in the world”.

As recently reported in PC World, the FTC filed a complaint against them for billing parents millions of dollars’ worth of unauthorized in-app purchases made by their children.

To me this raises some alarm bells, targeting kids in this way is problematic. Kids are clearly less sophisticated and financially literate consumers, vulnerable to impulse purchases.

Also it sounds as though employees at Amazon had their own concerns, this quote was cited in the PC World article:

“One internal Amazon communication said that allowing unlimited in-app charges without any password was “clearly causing problems for a large percentage of our customers”

As a customer centric business, you have the interests of your customers as a first priority. This approach builds trust and long term relationships, the outcome for business is sustainable ongoing profits.

Is making it easy for kids to spend hundreds of dollars on in app purchases reflective of a company with its customer’s best interest at heart?

Jeff Bezos is a well known long term thinker, however this sounds like some short term profit thinking to me.

What do you think?

Get more customer insights with these 5 questions

Questions to uncover customer insights

If you want really insightful information from your customers, try asking these 5 open-ended questions:

What is the one thing you think we do really well?

This question will help you identify what customers really like about doing business with you. You may have your own opinions on this, however more than likely you will be surprised by customers’ opinions on what they consider as your biggest differentiator.

What is the one thing we do that you think needs improvement?

This enables you to get real feedback on areas of your business that need improvement from a customer perspective. Some of the customer responses might be unexpected, but this is truly valuable insight for improving your business relative to actual customer experiences.

What is the one thing we do that we should stop doing?

Companies rarely ask their customers this question. The problem is that many businesses do things because they think that’s what customers want or because they’ve always done it. This could be something that a company spends resources on but has no or even worse negative value for customers.

What is the one thing we don’t do that we should start doing?

Your customers have done business with many other related and unrelated companies and have seen good and bad business practices for how businesses deal with customers. These answers can provide great ideas for improving the experience for your customers and developing stronger competitive differentiation.

Would you recommend us to others?

This question will tell you whether or not your customer is someone that will help drive positive word of mouth.