Tag Archives: Customer Experience

“But We Don’t Have Any Customers!”

That was the response when John Stanhope stood up to deliver his first address as Chancellor of Deakin University in 2016 and declared he wanted to make the university customer-centric.

John Stanhope AM standing in front of Deakin University, Geelong, Australia.

The academics were genuinely confused. Customers? This is a university, not a retailer.

I have known John for many years and he is one of the most customer-centric leaders I have met. He knew something they didn’t.

As the former CFO of Telstra and Chairman of Australia Post, he’d spent decades proving that “customer” isn’t a dirty word — it’s the only word that matters. Students are customers. Employers who hire those students are customers. And if you don’t measure how well you’re serving them, you’re guessing.

So he asked the university three questions:

What? What are students and employers actually telling us?

So what? What do those signals mean for how we teach, support, and prepare graduates?

Now what? What are we going to change — starting this week?

Simple questions. Devastatingly hard to answer honestly.

At Telstra, the same three questions had delivered a $15 million bottom-line improvement in just 10 months when he turned a 2,500-person finance department into a value-added service function. So he knew the approach worked — even in places where people insisted “we don’t have customers.”

At Deakin, the results spoke for themselves. By 2025, the university had climbed from #3 to #1 in Melbourne for producing graduates rated “employee ready” by employers. Applying a survey of students as customers, that is the same for all Australian public universities, Deakin has been rated number one in Victoria for student satisfaction for over a decade. Not through a rebrand. Not through a new tagline. Through systematically closing the gaps between what their customers needed and what the institution was delivering.

John kept a reminder sign on his desk for years: “Be here now.”

A reminder to be fully present with whoever was in front of him. Not checking email. Not rehearsing his next point. Just there.

It’s one of the simplest leadership principles I’ve ever encountered, but it is so powerful in its effect, yet possibly the hardest to practise.

What would happen if you asked your team “Who is our customer?” tomorrow? I suspect the answers would surprise you.

John Stanhope wrote in the foreword to our book, The Human Culture Imperative, where he emphasizes the importance of collaboration, empowerment, and strategic alignment — the three internal enablers that determine whether a business can actually respond to its market.e

Leading Without the Title: How Johannes Spille is Driving Strategic Change at Rosen Group

This week I had the opportunity to catch up with Johannes from Rosen Group USA. The time I spent with him was so valuable that I felt compelled to put together a story about it.

Challenging Conventional Wisdom

I don’t often write about clients, but occasionally someone reshapes the way you think about leadership and influence. Johannes Spille did exactly that.

Conventional wisdom says meaningful organisational change starts at the Executive Leadership Team (ELT) table, strategy flows top-down and execution follows. Johannes challenged that assumption. Deeply committed to the organisation he serves and confident in its potential, he stepped into an initiative typically owned by the ELT and delivered significant impact.

Leading the MRI Initiative

I’ve had the privilege of partnering with Johannes at Rosen Group to implement the Market Responsiveness Index (MRI) over the past five months. At MarketCulture, we usually work directly with executive leadership teams. In this case, Johannes led the initiative himself, gaining full ELT support.

When he presented the MRI proposal to the ELT, it was exactly what they wanted to hear, clear, strategic, and actionable. They immediately gave him the green light to move forward, empowering him to implement the MRI and drive change across the organisation. What impressed me most was how he leveraged the MRI to elevate the conversation, moving the organisation from operational discussions to focused, strategic priorities.

Using the MRI as a Strategic Lever

As Johannes explained, the MRI allowed him to speak strategically rather than tactically, giving voice to leadership in a way that inspired collaboration and action. He didn’t treat it as a survey, he used it as a strategic lever to strengthen customer-centricity and organisational alignment.

The insights revealed blind spots previously unseen or unaddressed and created clarity on where change was needed, what to prioritise, and how to move forward confidently.

Engaging the Organisation

Rather than prescribing solutions, Johannes invited participation. He presented the findings transparently and asked one powerful question: What matters most?

The response was remarkable. He mobilised a Customer Champions team of 34 volunteers across 14 departments, a clear signal of engagement and shared ownership. Instead of defending the status quo, both management and employees leaned into improvement.

Strengthening Executive Collaboration

The process also deepened Johannes’ connection with the ELT. By presenting MRI insights objectively and facilitating a structured vote on 2026’s key focus disciplines — customer foresight, customer insight, collaboration, strategic alignment, and empowerment — he transformed insight into shared executive ownership. Discussion turned into commitment.

Today, structured 90-day plans and cross-functional alignment initiatives are underway, translating culture into execution.

About Rosen Group

For context, Rosen Group is a global engineering and technology company specialising in inspection, integrity management, and maintenance of critical industrial assets. In complex, high-risk industries, clarity and alignment aren’t optional, they’re essential.

What started in USA/Mexico (700 employees with approx 80% completing the assessment) is now positioned to scale globally, proof that influence isn’t defined by title, but by clarity, courage, and action.

Conclusion: Leadership in Action

Johannes is a thoughtful, strategic leader who pairs clear direction with the ability to mobilise people across functions. It has been a privilege to support this continued journey and witness tangible change take shape.

Leadership isn’t always about the seat you hold at the table. Sometimes, it’s about having the courage to start the conversation.

I look forward to partnering with Johannes and Rosen Group for many years to come.

The Market Responsiveness Index (MRI) is a strategic diagnostic tool that uncovers organisational blind spots, aligns teams, and turns insight into actionable, customer-focused change. Test with a small team and see for yourself. Click here

The 12th Man: Your Ultimate Competitive Advantage

The roar is deafening. 137.6 decibels, to be precise. That is the sound of a stadium purpose-built not just for sport, but for customer-centric design. When the American Superbowl champions, the Seattle Seahawks, take the field, they don’t just bring eleven players; they bring an entire city. In the world of professional sports, we call them “fans”—short for “fanatics”. The Seahawks call them the “12th man”. In the world of business, we call them “customers.” But imagine for a moment if your customers were as vocal, loyal, and fiercely protective as the Seahawks’ 12th Man.

The Architecture of Loyalty

Success is never an accident. It is planned, nurtured, and engineered from the top down. The Seahawks’ dominance—including their first Super Bowl title in 2014 and their triumphant return to glory in 2026—is built on a culture where the fan is the North Star. What they have done is to:

  • Design for Proximity: The Seahawks’ stadium was built to keep fans closer to the action than any other stadium in the competition.
  • Create a Strategic Barrier: That noisy enthusiasm creates a literal “competitive advantage,” making it impossible for opposing teams to hear their own plays.
  • Formalize the Bond: Through their magazine called “The 12th Man Rising,” the club has embedded its fan base into the very fabric of its communications, its plans and its players.

A Story of Unity: The 2026 Triumph

The 2026 Super Bowl victory over the New England Patriots was more than just a 29–13 scoreline; it was a masterclass in an integrated culture where every player, no matter their origin, played a vital role.

Consider Michael Dickson, the Australian-born punter who transitioned from Australian Rules football to become a pillar of the Seahawks’ special teams. In the heat of the championship, Dickson’s wizardry was on full display, punting seven times and pinning the Patriots deep in their own territory—including one precise kick that came to rest just one yard from the endzone.

This victory wasn’t just about individual brilliance; it was about a “brotherhood” where veterans like Leonard Williams and Sam Darnold fought alongside homegrown talent. As linebacker Uchenna Nwosu noted the team functioned as “one unit” that “rides for each other.” It is this internal culture of shared value that radiates outward, turning a team into a community and a stadium into a fortress. Everybody in the offensive and defensive teams were unified.

This is the ultimate lesson for any business: when your “defensive” operations (back-end staff) and your “offensive” players (frontline staff) are perfectly aligned, they create an experience so powerful it mobilizes a city of 600,000 fans (most of the population of Seattle) to the streets in celebration.

From Transactions to Tribes

How does this affect the bottom line? The answer is as clear as a touchdown in the fourth quarter. When you put long-term relationships ahead of short-term profit, you create sustainable, profitable growth.

“To win in the marketplace, you must first win in the hearts of your people.”

In a truly integrated culture, every member of the organization—from the senior leadership to the frontline and backline staff—understand that they have a vital role in delivering value. When the fans are at the center of your decision-making, they cease to be spectators and become your strongest advocates.

The Human Culture Imperative

The Seahawks didn’t just win a trophy; they mobilized an entire population to celebrate in the streets of Seattle. They proved that a customer-centric culture is not a “soft” metric—it is the engine of victory.

Richard Branson achieved this when he saved his UK Virgin Trains franchise with the combined support of his customers and his employees. – see the story in The Customer Culture Imperative, L. Brown and C. Brown pp.228-229

If you are ready to turn your customers into a “12th Man” for your brand, the blueprint is waiting. You can discover the full strategy for building this level of devotion in our new book, The Human Culture Imperative.

The “12th Man” Leadership Principles: Building Your Corporate Fortress

To replicate the Seahawks’ success, your leadership must move beyond managing transactions and start nurturing a “tribe.” Here are the core principles derived from the Seahawk model to align your team and turn your customers into a permanent competitive advantage.

Garry Ridge, longtime CEO of WD-40 created a tribe mentality that resulted in happy employees, loyal customers and profitable growth for all stakeholders – see The Human Culture Imperative, L. Brown, C Brown and S. Crichton-Browne, pp. 39-40, 52, 55.

1. Design for Proximity

The Seahawks’ stadium was “purpose built” so fans would be closer to the field than in any other arena. 

  • Leadership Action: Remove the layers between your executives and your customers.
  • The Goal: Ensure your decision-makers can hear the “noise” of the market firsthand, rather than through filtered reports.

2. Create a “12th Man” Culture

In Seattle, the fan is seen as an extra “man” on the field, providing a “supportive force” that disrupts the opposition. 

  • Leadership Action: Treat your loyal customers as an extension of your internal team.
  • The Goal: Develop “The 12th Man Rising” style communications used by the seahawks that make customers feel like insiders, turning them into vocal, lifelong advocates.

3. Integrated Performance (The Punter Principle)

Winning the 2026 Super Bowl required every player—from the star quarterback to the Australian-born punter to the linebacker – to execute their specific role with a “special teams wizardry.”

  • Leadership Action: Clearly define how every department, especially non-customer-facing ones, contributes to the final “customer value.”
  • The Goal: Foster a “one unit” mentality where staff engagement is driven by a shared mission to serve the fan.

4. Prioritize the Long Game

The Seahawks’ leadership puts “long term customer relationships ahead of short term profit.”

  • Leadership Action: Reward metrics that favor customer retention and advocacy over immediate quarterly gains.
  • The Goal: Create “sustainable profitable growth” by building a base of fans who will stand by you even after a “narrow defeat.”

The Result: When you put fans at the center of your thinking, you don’t just win games; you win the marketplace. You create a culture like the Seahawks where 600,000 people—almost the entire Seattle population—show up to celebrate your success.

To turn the “12th Man” philosophy from an aspirational story into a functional reality, the Seahawks’ leadership utilizes the principles and practices of the Market Responsiveness Index (MRI).

Think of the MRI as the “medical-grade” diagnostic for your organization’s health. It moves beyond traditional feedback to measure the specific daily behaviors of your staff that either build or block a customer-centric culture.

Here is how the MRI enables the principles discussed to become your reality:

1. Hard Data for Soft Culture (The Design Principle)

The Seahawks’ stadium was “purpose built” for noise. The MRI acts as your cultural blueprint, identifying the “blind spots” in your organization’s design.

  • How it works: It measures 8 critical disciplines—including Customer Insight and Peripheral Vision—to ensure your business structure is literally built to hear the customer.

2. Eliminating Silos (The Integrated Unit Principle)

Just as all the position players must work as one in a winning sporting team, the MRI measures Cross-Functional Collaboration.

  • How it works: It identifies where information is getting “stuck” between departments. By fixing these internal enablers, you ensure that every staff member—no matter their role—is aligned to deliver value to the fan.

3. Empowerment vs. Permission (The Customer Advocacy Principle)

To create “12th Man” loyalty, staff must be able to act in the customer’s interest without reference to a manual or waiting for permission.

  • How it works: The MRI specifically measures Empowerment. It checks if your frontline employees feel they have the authority to make decisions that are best for the customer. High scores in this discipline correlate directly with the kind of “special events” and connections that nurture lifelong fans.

4. Foresight Over Reaction (The Long-Term Principle)

The Seahawks’ victory in 2026 was the result of years of planning. The MRI measures Customer Foresight.

  • How it works: Instead of just looking at past satisfaction scores (NPS), the MRI benchmarks your team’s ability to anticipate future customer needs. This shifts leadership focus from short-term profit to the “sustainable profitable growth” found in long-term relationships.

As Jeff Bezos of Amazon famously said when asked why their growth and profitability was growing exponentially: “It’s probably because of what we did three years ago.”

The Blueprint for Your “12th Man”

The MRI provides the MarketCulture benchmark, comparing your team’s behaviors against global leaders like Apple, Amazon and Google. It provides the “clear mandate” leaders need to move from a transaction-based business to a fan-based franchise.

“What gets measured gets managed.”

By implementing the MRI, you are no longer guessing if your culture is customer-centric and responsive to change; you are measuring the very behaviors that turn a customer into a “12th Man” advocate for life and a unified team from directors to senior leadership to employees that deliver value to their customers, community and shareholders.

Try the MRI and find out how you can win just like the Seahawks – http://www.marketculture.com/pricing

How Lexus Lost a Lifelong Customer Over One Hour—And What It Reveals About Your Blind Spots

The Story Behind the Shiny Badge

I was talking with a friend recently about his new Lexus. It’s a beautiful piece of engineering, and he loves driving it. But when I asked if he would buy another, his answer was a flat “No”.

For a brand that treats “personalized service” as its North Star, that “No” should make every executive in the building lose sleep.

The High Price of Inflexible Rules

The trouble didn’t start with the car; it started with a clock. Lexus called him for a software upgrade and offered a home pickup with a loan car—exactly what his contract promised.

My friend is a late-night worker. When the service department insisted on a 7:00 am pickup, he simply asked for 8:00 am.

The answer? “Not possible”.

This wasn’t an isolated incident. It was the third time he had run into a brick wall of “the rules”. To him, it felt like the people at Lexus simply didn’t care to understand why he needed that extra hour.

The Silent Killer: Leadership Blind Spots

On paper, everything looks perfect to Lexus leadership.

  • The Service Rep followed the procedure to the letter.
  • The Salesman is busy chasing new commissions, having never checked in on my friend since the sale two years ago.
  • The “Rule Book” is intact.

But underneath the surface, customer churn is rising. When rigid compliance takes the place of human empathy, employees stop reporting the “bad news” that leaders desperately need to hear.

How to Find What Your Customers Aren’t Telling You

Even a successful giant like Lexus has blind spots. The only way to uncover them is to look at the “MRI” of your organization—a diagnostic for your leaders and employees to see what is really happening.

It’s designed to expose:

  • Rigid processes that frustrate your best customers.
  • A lack of empowerment among your frontline staff.
  • Hidden risks that are quietly killing your brand loyalty.

Don’t wait for your best customers to say “No” before you decide to listen. I mean “really listen”.

Use this checklist to determine if your business is inadvertently pushing loyal customers toward your competitors.

  • The “Rule Book” Test: Can your frontline staff deviate from standard operating procedures to accommodate a reasonable customer request without seeking management approval?
  • The Silence Gap: Does your sales team have a structured “after-care” protocol to provide guidance and advice years after the initial transaction?
  • The “Why” Audit: When a customer makes a request that is denied, is the reason for the request recorded and analyzed by leadership, or is it simply logged as “not possible” or not logged at all?
  • The Empowerment Metric: Are employees incentivized to report friction points in the customer journey, even if those points reflect poorly on current “efficient” processes?
  • The Signal-to-Transaction Ratio: Are your KPIs focused solely on “successful” transactions (like a completed software upgrade) while ignoring the “discontent signals” generated during the process?
  • The Personalized Reality: Does your marketing promise “personalized service” while your infrastructure enforces “rigid compliance”?
  • The Churn Diagnostic: Do you know exactly why your last ten “lost” customers chose not to return, or are you relying on the assumptions of busy managers?

At MarketCulture, we turn organizational blind spots into sources of competitive power.

Your people on the front line already know what’s holding the business back — but that truth rarely makes it to the boardroom.

If you genuinely want to understand what is limiting your organization’s performance, book a call with MarketCulture using the link below.

Book a Meeting Now

10 Barriers to Building a Customer-Centric Culture—And How to Overcome Them

photo of people doing handshakes
Photo by fauxels on Pexels.com

Creating a customer-centric culture isn’t just a buzzword—it’s a business imperative. But many leaders struggle to get there. Here are the top 10 factors working against building a customer-centric culture, actionable strategies to overcome them, and real-world examples of leaders who made it happen:

  1. Lack of Leadership Commitment
    Barrier: Without top-down commitment, customer-centric initiatives often fizzle.
    Solution: Leaders must champion customer-centricity, making it a core value. It starts by taking an honest look at how customer centric the company really is…not what leaders think it is.
    Example: Jeff Bezos at Amazon prioritizes customer obsession, integrating it into every company decision.
  2. Siloed Departments
    Barrier: Departments working in isolation lead to fragmented customer experiences.
    Solution: Foster cross-functional collaboration with shared customer-focused goals.
    Example: Zappos breaks down silos by empowering every employee to deliver exceptional customer service, regardless of department.
  3. Short-Term Focus
    Barrier: Focusing solely on quarterly results can undermine long-term customer relationships.
    Solution: Balance short-term targets with long-term customer loyalty strategies.
    Example: Adobe shifted from product sales to subscriptions, focusing on long-term customer engagement.
  4. Inadequate Customer Insights
    Barrier: Decisions made without deep customer insights often miss the mark.
    Solution: Invest in tools and processes to gather and analyze customer data.
    Example: Netflix uses data analytics to understand viewer preferences, creating content that resonates with their audience.
  5. Resistance to Change
    Barrier: Organizational inertia can stall customer-centric initiatives.
    Solution: Lead with change management strategies that emphasize the benefits of customer-centricity not just to the organization but to individuals and their teams.
    Example: Microsoft, under Satya Nadella, embraced a growth mindset, leading to a more customer-focused culture.
  6. Poor Communication
    Barrier: Miscommunication between teams and customers can erode trust.
    Solution: Establish clear, consistent communication channels focused on customer needs.
    Example: Slack improved customer communication by integrating feedback loops into their product development process.
  7. Misaligned Incentives
    Barrier: Employees may prioritize the wrong things if incentives don’t align with customer-centric goals.
    Solution: Align rewards and recognition with customer-focused outcomes.
    Example: Ritz-Carlton empowers employees to spend up to $2,000 per guest to resolve issues, incentivizing top-notch customer service.
  8. Underestimating Employee Experience
    Barrier: Disengaged employees lead to disengaged customers.
    Solution: Invest in employee engagement and create a customer-centric internal culture.
    Example: Southwest Airlines prioritizes employee satisfaction, knowing that happy employees create happy customers.
  9. Lack of Accountability
    Barrier: Without accountability, customer-centric initiatives can lose momentum.
    Solution: Establish clear ownership and accountability for customer outcomes.
    Example: Apple’s “DRI” (Directly Responsible Individual) approach ensures that someone is always accountable for customer-centric results.
  10. Ignoring Customer Feedback
    Barrier: Failing to act on customer feedback leads to missed opportunities for improvement.
    Solution: Create systems for gathering, analyzing, and acting on feedback.
    Example: Toyota’s “Customer First” philosophy ensures customer feedback drives continuous organizational improvement.

Real Success Comes from Taking Action

These barriers are common, but they’re not insurmountable. Leaders who commit to overcoming them are seeing actual results—like Amazon’s relentless focus on customer obsession or Microsoft’s transformation under a customer-first mindset.

Ready to take your business to the next level? Start by setting a baseline to see where you stand and get the actionable insights you need to make progress with the MRI Benchmark.

The rewards are clear: increased customer loyalty, stronger brand reputation, and sustainable business growth.

What steps are you taking today to overcome these barriers? Which of these are the biggest inhibitors in your company?

How to go from “Good to Great” Customer Centricity

good_to_great

The image above sits on my desk in my home office as a source of inspiration. It is a simple note from one of my favorite business authors, Jim Collins, responding to an unsolicited copy of our book, The Customer Culture Imperative. It is a testament to Jim how gracious he was to even respond, not having ever met nor heard of our work, yet he took the time to pen a handwritten note of encouragement, truly the behavior of a level 5 leader!

Hence the title of this post: going from good to great customer centricity!

Are you looking to make the jump from good customer centricity to great? You’re not alone – business leaders and customer experience professionals alike are recognizing that staying one step ahead of customers’ changing needs is essential for long-term success. While many organizations know they need to focus on putting their customers front and center, knowing where to start can be a challenge.

In this post, we’ll explore some key strategies for making the leap from good customer centricity to great. We’ll cover how data-driven customer insights can help organizations better understand their customers by listening to their own employees and identifying areas in which their products and services could be improved, as well as look at tactical ideas for delivering truly personalized experiences.

Read on for more on transforming your organization into a truly customer-centric powerhouse!

Customer-Centric Mindsets:
Understand Your Customers – Know what makes them tick and determine the best way to reach out to them

Customer centricity begins with a mindset, one in which all leaders (regardless of function) and employees begin by viewing the world through the customer’s eyes. Understanding your customers is fundamental to achieving success. Gaining insight into their needs and preferences, and how best to reach out to them is key. Customer insights can help you understand who your customers are and why they buy, while customer foresight will allow you to anticipate what products or services could be in demand in the future. This information can help you create relevant content that speaks to the needs of your customers, allowing you to effectively communicate with them through the channels that make sense for your business.

Develop a Customer-Focused Value Proposition – Create an attractive offer that is tailored to their needs and interests

Developing a value proposition tailored to customer needs is crucial for any successful business. It should accurately reflect the benefits that customers will gain from engaging with your brand and how it provides more than what competitors can offer. Doing proper research to understand their buying habits, interests and preferences is key to crafting an attractive offer that will make them take notice.

Listening to employees who engage with customers regularly is an immediate source of data that many organizations miss. Those on the front lines interacting with customers regularly get a good feel for what customers value and the things they don’t like about doing business with your organization. Start by listening to them and engaging them in developing and refining your value propositions.

Additionally, having a clearly defined target audience and knowing exactly who the value proposition should be aimed at is also important in order to ensure it resonates with potential customers. Taking these steps will help create an effective customer-focused value proposition that has the best chance of persuading customers to embrace your brand.

Make it easy for customers – Leverage technology to streamline communication processes with customers

Automation tools provide a great way to quickly and efficiently streamline communication processes with customers. By using such automated software, businesses can automate mundane customer service tasks such as answering frequently asked questions and confirming order details. This type of automation not only reduces the time spent on mundane tasks but also allows the customer service representative to spend more time interacting with customers in meaningful ways that build better relationships.

Focus on Personalization – Utilize data analysis to tailor messages, content, and products to individual customers

Utilizing data analysis to customize messages, content, and products for each individual customer is an increasingly effective way to provide excellent service to customers. It can help businesses ascertain the wants and needs of each customer, allowing them to present tailored suggestions and offers that are much more relevant. Moreover, it sets a company apart in terms of its reputation for catering to individuals over large masses. Using data analysis additionally helps optimize the overall user experience with targeted messaging, personalized recommendations, and clever segmentation.

Monitor Feedback Regularly – Keep track of customer sentiment and adjust your approach accordingly

In a digital age, it is imperative to stay in tune with customer sentiment. By monitoring feedback regularly, businesses can adjust their approach to meet customer needs, shifting any negative sentiment towards branding or product offerings to positive. Doing so not only cultivates greater brand loyalty but also provides an accurate reflection of your business’s success or potential mistakes made. Listening closely to feedback can allow businesses to avoid potential pitfalls and instead move forward stronger and better than ever before.

Invest in Customer “Mindset” Capabilities – Empower customer-facing AND internally facing staff with the right skill sets and tools for success

Investing in customer “mindset” training is an essential component of providing your customers with the best possible experience. Employees who are enabled and encouraged to put the “customer lens” on regardless of their role add immense value to customer and colleague interactions. Investing in a comprehensive training program for those not only on the frontlines of customer service but also those who provide internal services translates into more productivity, improved customer care, and most importantly adds to the overall success of your business.

Understanding and unlocking the potential of effectively engaging with your customers is key to growing your business. By getting to know them, crafting an attractive value proposition, utilizing automation tools, and monitoring customer feedback, you can constantly adjust your approach towards customers in a manner that is tailored according to their needs. Additionally, investing in customer service training is a great way to ensure your team is equipped with the right skill sets and knowledge for success. When it comes down to it, strong customer engagement requires consistent effort, attention, and experimentation.

How many of these activities does your organization embrace? Are your employees on board?

Find out easily and go from “good to great” by measuring your level of customer centricity. Utilizing the Market Responsiveness Index (MRI) is a great way to measure just how customer-centric your organization really is as well as identify areas of improvement.

It’s not about the customer strategy, it’s the culture, stupid!!

Source: leisa reichelt Freelance UX Consultant‘Culture eats strategy for breakfast’  Strategic User Experience (ConfabUK 2013)

Every time we look we see a report from surveys of the status of customer experience (CX) inside companies that show a high percentage of leaders are dissatisfied with their CX strategy and they plan to change it in the next year. This might also include changing the CX leader.

CX quality appears to be declining as reported from Forrester’s 2022 Customer Experience Index report where they note: “US companies have lost the vital focus on customers that they gained at the beginning of the pandemic in 2020. Forrester’s 2022 US Customer Experience (CX) Benchmark study reveals losses in CX quality across 13 industries. It requires an enterprise-wide effort to put customers at the center of an organization’s leadership, strategy, and operations”

A small 2022 survey of Australian and New Zealand companies by CXFOCUS suggests that a majority of Australian & New Zealand companies are not satisfied with their current customer experience strategies. The same poll revealed that more than 80% of companies are planning major changes to their CX strategy in the coming months.

Source: CXFocus

What is not addressed is the blindingly obvious. It’s not the strategy that is the problem, it’s the culture. The customer strategy may be brilliant, average or even weak, but the core of the strategy is not implemented, even in its basic form, because it is held back by the corporate culture. Even customer journey mapping may be well-documented and attempts made at linking each customer interface point with actions for improvement for customers. But what is missing is a company-wide, business-wide or function-wide customer culture that creates customer engagement and customer value creation/improvements across all parts of the organization.

If you want a better customer strategy you must have a customer-centered culture where everyone in the business has a mindset and customer awareness that motivates them to act on value improvements for customers, no matter what their role or function.

Now, when this is so obvious, why don’t leaders in organizations address it? Some believe the customer culture is much stronger than it actually is. Others believe it is too hard to change. Still, others believe it is not worth it.

Let’s consider. Almost all those who believe it is strong don’t have any objective evidence to support it other than anecdotal stories. We know this is the case because we have the only valid evidence-based customer culture measurement tool called the Market Responsiveness Index (MRI). We have found wide variations in businesses between leaders’ and employees’ perceptions and variations across functions.

Those who believe it is too hard to change, have not experienced a methodology where it is specifically designed to modify easy-to-change behaviors that can provide substantial improvements for customers and for work colleagues with whom they interact. Today’s world requires people in organizations to change their behaviors with customers. Like our experience with COVID, we can change.

Those who believe it is not worth it should consider this:- the companies that are highly customer-centric with strong customer cultures are among the most profitable in their industries and in the world. Second, consider where you will be if you don’t have a strong customer culture – you will have a customer strategy that is not implemented, a business strategy that is not effective, and a purpose and mission that is not achieved.

If you want a profitable customer strategy, first measure your level of customer-centric culture. Contact us to find out more.

The reason what they teach in business school is wrong and why a customer-obsessed culture is the only answer

dirty-money

Many of today’s senior leaders were educated in an era where business school professors told them the sole purpose of a business was to create value for shareholders. This, at a time when only a few voices professed what revered thinker and writer, Peter Drucker, proposed that the purpose of a business is to create customers profitably. The two mindsets are complete opposites.

I recently watched the Netflix series: Dirty Money. It investigates three cases of big corporations where the only consideration by their senior leaders was the creation of shareholder value and their own bonuses at any cost.

Volkswagon was proven to have initiated and perpetuated (by senior leaders) built-in software to falsify carbon emissions in order to make claims about their cars to enable them to grow their business in the US with diesel-fuelled vehicles. Even when proven, senior leaders were in denial until indicted by the US government.

HSBC turned a blind eye to money laundering by the Mexican drug cartels through their banking network. Despite being castigated in US Senate investigations and regulators over a decade, there was no effective action taken and finally, the company was fined almost US $2billion with an admission to serious charges. This was a willful disregard of the consequences of their actions (or non-action) to achieve their profit goals at all costs.

Valiant Pharmaceuticals embarked on a merger and acquisition strategy to buy drug companies with unique monopoly brands as a basis for growth. Once acquired the prices of these life-saving products were hiked to levels where consumers could not pay for them – with life-threatening consequences. The CEO’s one stated aim was to create value for shareholders.

The senior leaders of all three companies gave no thought to the consequences for their customers and the community. In fact, they saw them as irrelevant. Excessive pollution from cars is a prime cause of the premature death of many consumers. Enabling money laundering financed drug lords and the associated violent deaths of innocents in Mexico and the drug habit in the US. Hiking pharmaceutical drug prices 10 or 20 fold over a short period created havoc and misery for many consumers with life-threatening illnesses. All of this because the senior leadership mindset and corporate culture were focused only on profit and their own bonuses.

I have heard this in many large businesses where people down the line tell me that the only concern of leadership is to meet profit goals at any cost. That cost is often lost jobs, unhappy and disengaged employees and frustration and disgust of customers.

Yet we know that the leaders of today’s most successful, modern large businesses have a totally different mindset. It is best illustrated by Jeff Bezos, who from day 1 at Amazon has built a culture around customer obsession and a focus on continually improving the value and experience delivered to its customers. He has never wavered from this mindset despite criticism at different times. What is the result? It is the most valuable and sustainable business on the planet – with a history of little more than 20 years.

We are starting to see this mindset in other leaders of long-established businesses. Richard Branson at Virgin is one. Paul Polman at Unilever is another. These leaders take the view that “what’s best for the customer is best for the business”. They truly believe that by creating a customer-obsessed culture in their leadership and employees they will deliver superior value to their customers and for their communities. And by so doing they will achieve long-term profitability and sustainability in their businesses as well as personal rewards and happy employees. They take a longer term and future-oriented view in their decision-making and their behavior.

This is foreign to many senior leaders and there is a lack of experience as to how to do it. In our research of more than 50 customer “obsessed” CEOs around the world and more than 300 businesses we now have a measurement tool that can create this mindset, benchmark your business against the best in the world and set out best practice steps to move you to the next level – a level that will be required for survival and success.

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.

You can’t fake customer-centric culture

Woman holding mask of her happy face

We hear a lot about fake news these days – what’s real and what’s fake is sometimes hard to know. That’s not the case when it comes to customers “reading” your culture.

Let me recount my experience with 3 upmarket restaurants in Sydney, Australia.

Sydney has many fine restaurants. I will compare my experience at two of these – Aria is at Circular Quay looking at the opera house and the Sydney Harbor Bridge and Jonah’s is on a cliffside on Sydney’s northern beaches overlooking Whale Beach and the Pacific Ocean. Both serve fine dining at expensive prices with excellent food.

I decided to book Jonah’s for my wife’s birthday and asked for a table next to the window overlooking the ocean. I was told this was not possible and when I asked why, I was told by the manager that there are many factors that they use to decide who have the window tables – when the booking was made, how many people are in the party, what the booking levels are for that particular day. I was making the booking more than a week in advance and on a weekday at the earliest lunchtime sitting, but still could not be told whether I would get a window table. Choices were 12 noon or 1.30pm. He said, “ we are very busy, we get tours and we decide on the day where people sit.” There was an arrogant tone in his voice so I decided to try Aria.

The call to Aria was a totally different experience. “Yes, we can give you a window table, would you like a surprise cake for your wife’s birthday?” You can choose your time of arrival – “12.30pm is fine and you can stay the whole afternoon.” Aria is just as busy as Jonah’s but you have a completely different mindset. At Jonah’s it is all about their convenience, their operational procedures, their rules for organizing tables. At Aria, it is about what the customer wants and how can they be satisfied. You cannot fake it. The customer mindset exists or it doesn’t. The customer knows this with a simple phone call.

Then there is the dining experience. My wife and I went to Pilu, a Sardinian specialty restaurant at Freshwater beach on Sydney’s northern beaches. This too is an upmarket restaurant. What impressed us about this restaurant was the staff. The sommelier knew every detail possible about the wines, the server knew exactly what was in each dish and could explain it. Both established a relationship with us by telling us about their hometown in Italy. They were not rushed, were patient with our questions, answered them fully and made suggestions. At the time of payment, the manager told us how much of a team effort was involved and how his team worked together to make a memorable experience for their guests. At the end of the evening, they asked if we would like to give them information on our birthdays and we would be offered a 5-course degustation meal free at that time. We happily signed up and provided the information they wanted.

A customer culture only exists when it is authentic and all employees are part of a happy, collaborative team, knowing that it is the customer that is the center of their world. It can’t be faked. It’s the difference between getting the business and creating advocates and not getting the business and getting bad reviews.

How do you get it? You will find many of the answers in our book: The Customer Culture Imperative.