Tag Archives: customer culture

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!

Why Customer Experience fails in organizations!

Contemplating cx failure

Recently I asked a colleague, Sean Gallagher, President at Influence
Success, to review our book, The Customer Culture Imperative,
compared with other books that address the area of customer
experience.

He said”: “Many books on customer experience are useful and
interesting reads. And I found Professor Phil Klaus’ book (Measuring
Customer Experience) and Fred Reichheld’s book (The Ultimate
Question 2.0) very useful because they are based on real scientific
research.

What do Zappos, Starbucks, Ritz-Carlton, Oasis, Disney, Nordstrom,
Apple, and Amazon have in common regarding how they run their
business? They all share best practice techniques in a variety of
areas that anyone can theoretically copy. Countless number of
companies have tried to copy these best practices and failed. Why?

All these companies are amazingly different. What is the common
thread used to drive superior customer experience and superior
profitability at these companies? Their cultures! And all their
cultures are different on the surface. Amazon is very different from
Zappos, even though Amazon owns Zappos.”

Sean said: “For my money, the most valuable (and readable) book on
customer experience is called The Customer Culture Imperative: A
Leader’s Guide to Driving Superior Performance. The authors studied
the academic research that uncovers the elements of culture that
enables a firm to create a strong customer-focused culture that
delivers both superior customer experience and superior
profitability. They use numerous real-life examples to illustrate the
elements of culture that make all the companies listed above different,
but the differences are rooted in the same soil.

Customer experience best practices are important but are bound
to fail unless rooted in the soil of an organization’s culture.

The Customer Culture Imperative is the best book I’ve found for insights
on transforming a culture that can deliver both superior customer
experience and superior profitability.”

Our vision at MarketCulture is to help leaders understand the importance of building a customer-obsessed culture by engaging of employees. Our assessment, the MRI, provides valuable feedback to help leaders act on what is vital to creating 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. Ask us for free pilot today!

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.

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.

Customer Obsession: Its a Mindset! Here’s one senior leader’s take on it.

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I have known and worked with John Stanhope over many years. John had a long career with Telstra culminating as CFO. He is now Chairman of Australia Post. Ever since I have known him he has had a customer mindset. Almost an obsession!

When I spoke to him about the mindset challenges in today’s business he said: “Today the focus must be on ‘customer innovation’. Many companies focus on innovation, but it is customer innovation that counts. At Australia Post our customers want their parcels anywhere, anytime, so we ask: How can we provide a great delivery process that gets better and better over time and do it profitably? Innovation must occur to meet our customer’s need and expectation of ‘anywhere, anytime’.”

He says all leaders must have a mindset that is externally and future-focused. This includes foresight and peripheral vision with future customer needs and changes in customer behaviour as central. This is what drives customer innovation.

To develop this mindset leaders must have a relentless pursuit that everything is about the customer. John says: “There are little signs that tell you. At the start of a meeting ask – Is this about our customers? If not, don’t have the meeting. Another key sign is ‘language’.  How do you frame a problem or an issue? Is it framed in terms of the customer or not?”

I asked John how you get this mindset. He says: “ There are many factors, but I think a key one is that you must immerse yourself with customers. Ask them questions, listen to what they say, observe their behavior and then put yourself in the customer’s position. If I were the customer, what would I want to solve this problem? How would I like to be treated? That applies to anyone in a business no matter what level and what function.”

In every company that is continually successful at innovation, there are leaders and employees that have a customer obsession mindset. Like Amazon, that has developed a customer-obsessed mindset and a customer culture to match, this is required for sustainable success.

The only way to future-proof your business, your leadership or your team is with a strong adaptable, innovative customer culture.

Learn more here