For improving customer experiences I’d rather have Right Data than Big Data

On my first day of my first proper job in the UK they called me “New York”.  Not because I was energetic, intriguing or that I never slept but because, when it took me a while to understand what was apparently an hilarious corporate joke, I was – in their words – “five hours behind”.

And many (very many) years later, so it seemed with my understanding of what has been given the label of Big Data.  I see it written about everywhere, something that self-proclaimed experts talk of as the latest critical key to a sustainable business.  However, I seemed to have missed the briefing about what exactly it was and why it was apparently so vital to our future existence.  The cynic in me was muttering about new clothes and Emperors but also part of me didn’t want to miss out, just in case…

Recently then, I was looking forward to catching up with the rest of the world and be able to converse like an insider when it comes to the subject of big data.  Within the space of a week, I had the privilege of chairing a retail analytics event in London and speaking at a conference in Barcelona on creating efficient airports through a focus on customer experience.

What was clear from both is an insatiable appetite for more data.  What is less clear is whether the ability to capture and analyse more and more information is generating the contextual knowledge that businesses need to bring about the change their own business plans demand.

Never before have we had this amount of information available at our fingertips.  True, it means that where once we relied on modelling and forecasting from a small amount of transactional data, we can now reduce the risk by removing the need for so many assumptions.  But does that automatically mean we have the right knowledge to support our business and customer strategy?

For airports, efficiency is everything but that can come dangerously close to putting passengers’ real needs in the blind spot.  Research I’ve carried out shows that customers in an airport put cleanliness, friendly staff and clear signage at the top of the list of the things they value. And yet, they rarely make it to the Exec team’s dashboard.  People do have a choice and they do go to the next airport if their expectations is one of an experience they are no longer prepared to tolerate.

It is unfair to single out airports; many organisations in many markets become (admittedly sometimes unintentionally) very metric-led.  Balanced scorecards thrive on them but it easily drives the wrong behaviours.  Vendors at the airport conference proclaimed that their products offer – and I quote – “first-class passenger processing”.  There was a sense that if it moves it can be processed, if it can be processed we can bar-code and measure it and if it can be measured we can create more metrics to grow our pile of data.

Take, for example, the “How was it for you?” array of good / ok / bad buttons having just gone through airport security.  It’s data in the making but on its own, apart from regulatory reporting, for what real purpose?  If 100% of people hit the red “It was bad” button, how can the airport know what to do differently without any supporting qualitative information?  Depending on how you look at it, while this piece of data adds to the big picture, it is either a costly activity with little return or a missed opportunity as the infrastructure is there anyway.

In the retail world, the amount of transactional information is certainly impressive.  One Turkish supermarket chain had made a huge success of it.  What is worrying though, is the apparent disconnect between all this data and business improvement.  When I asked the retail analytics delegates what value their work adds to the business, there were puzzled looks and absolute silence.  Slightly surprised, I then asked how they would respond if their CEO asked how the data they present helps achieve the business plan.  Eyes down, awkward shuffling and more silence.

Does this mean that in our relentless surge to generate bigger and bigger data because we can, not only are we making it more difficult to sift out the right information but that we’re losing sight of why we’re collecting any information in the first place?

A piece of research just released talked about the gap between companies’ intended customer experience programme and their lack of effective implementation.  One reason may be that the quest to understand everything about everything and to amass oceans of data has overshadowed the importance of having the skills to find the right information and how to be organised to then do something about it.

There was another corporate saying that took me a while to understand.  It was the one about “Don’t boil the ocean”.  We couldn’t anyway back then but metaphorically, maybe now we can.

That said, just because we can, still doesn’t mean we should.

 

 

 

 

Would changing the name from Customer Experience to Customer Memories make us better prepared?

We have Customer Service;  it’s what companies do to or for their customers.  We have Customer Experience;  you could say it’s what it’s really like to be on the receiving end of the service.  Done the right way though, understanding all that gives us powerful information.

Yet there is also a risk that our focus on the here-and-now can give us a distorted view of the very thing we’re trying to improve;  the likelihood of our best customers coming back, spending more and telling everyone else to do the same.

When we’re about to buy something, it’s basic human behaviour to recall what it was like last time and then to decide whether or not we go ahead or go somewhere else.  We dip into our memory bank to make the right decision, based on what happened back then and what we’ve heard and learnt since then.

But as far as organisations are concerned, I’ve seen that over the last few years the focus has been increasingly on the experience or service that is given to a customer today, more so than the impact that last experience has when it comes to the next purchase.  There are subtle, but important, differences.106

The point is, when we’re about to choose, use, buy or sign-up, it’s our memory that will determine whether we stay “loyal” or we try elsewhere.  Customer advocacy has its place, don’t get me wrong.  But while the wow factors were front of mind when I did that customer survey the day after I last had anything to do with the company, twelve months on I might have a stronger recall of the lacklustre service I’ve had since.

The term “Customer Experience” has served markets very well in raising the bar of how businesses treat their customers.  But internally, organisations have struggled and still do so today with what Customer Experience is.  Is it a new fluffy label from Marketing for what everyone knows as Customer Service?  Or a strategic way of thinking? Absent any real customer-based, cross-functional objectives “We do that already” is a common riposte, along with “It’s too expensive” and “Where’s the benefit?”.

Every organisation has a customer experience whether they know it or not and that may be one of the reasons why it doesn’t get the attention internally that it deserves.  Giving a jolt to the system and talking about influencing Customer Memories demands a different perspective; the future poking a stick at the past.  It’s like asking “What can we do that will increase the chances of you buying again?” instead of “What should we have done that would have prevented you from being really hacked off?”.  A story about horses, gates and bolting comes to mind.

Arguably, the higher the value of the purchase the less frequently we buy and therefore by definition, the time between one purchase and the next can be significant.  I’m no psychologist, but even if it’s a more regular or ad-hoc purchase I know our memories and perceptions change over time.  I might have had a hassle-free experience and at the time was a real fan, but if I’ve since heard other stories or there’s been a change in my circumstances, my attitude or needs may be completely different.  That customer feedback I gave last time is no longer relevant but unless the company asks me again just before I choose next time, they will be acting on the wrong information.

Whether we’re renewing an annual contract, buying a holiday, a car, clothes or using professional services, at that specific point in time the thing that determines what we do next is what our memory tells it was like last time;  not how likely we were to recommend the company to someone else one day after we last did the same thing.

In the name of Customer Experience, organisations understandably have an insatiable appetite to canvas opinions within days, minutes or even as it happens.  That information is used as a proxy for brand strength and to forecast the likelihood of repurchases.  But if that repurchase is weeks, months even years away, how accurate can it be?  It’s obviously easier to ask a customer how it was just after they’ve been in touch as there is a definitive trigger point for feedback.   Just because the timing of the next interaction is harder to predict though, that shouldn’t stop us seeking such valuable information.

It seems to make sense then that we should, in addition or as an alternative, track what a customer feels and thinks much closer to the point at which they make their next decision.  We would still keep the metric-obsessed folk happy with a quantitative score in answer to a question such as “Based on what you remember about last time, are you likely / not sure / unlikely to use us next time?”.

Importantly though, we would also still get the gilt-edged qualitative information about what can be reinforced at that pre-purchase point in time and not afterwards when it might be too late.  And it would still be the case that if we get the experience right, the metrics will look after themselves, not the other way around.

It’s great to see customer strategy and customer experience being discussed in the Board Room.  In the main however, there is still a focus on what customers say just after purchase or the “experience”.  By the time the customer is in a position to make a choice next time, the things that drive that new decision may be very different and are purely in the memory.

And I for one would give ten out of ten for tapping into that.

 

Customer experiences highlight the danger of businesses taking relationships for granted

The sage advice “Don’t bite the hand that feeds you” needs no introduction but it clearly infers that one party is more needy than the other.

It’s a sentiment that’s always been true in a commercial context since the earliest days of trading.  In today’s world though, while the business side is becoming increasingly reliant, the experience they present in search of short-term results can push their customers away rather than bringing them closer.  What’s worse, is that it’s especially magnified – not to say ironic – when the hand that’s doing the feeding has made a commitment, with the inevitable result that the business gets dropped and the customer turns away to move indifferently on.

The very mention of a “relationship” conjures up different meanings to different people yet it is a ubiquitous byword for underpinning success.  Our focus on customer experience, on what it’s really like to do business, is helping to explain why that potential misunderstanding can have serious consequences.Customer Experience vs Customer Service

Let’s be honest, it is really only the organisation that wants or even talks about the proverbial relationship.  The P&L and share price are much more dependent on their customer than the other way around.  At its core, it means that the client simply plays along until a better offer appears or they have reason to suspect a lack of value, trust or respect.

What is intended by one party as a commitment to be in it for the long-haul can be seen by the other as an opportunity to take advantage of, worrying about tomorrow, tomorrow.  Harsh?  Well, customer experience feedback is showing that even where – or because – a client does commit, they are made to feel that the business is a bit too needy, being greedy, embracing the relationship with the grace of a pick-pocketing bear-hug.

Whether necessitated by the economic environment, organisational complacency or driven by the personal short-term agendas of those in charge, there are signs emerging where such conditions serve only to increase the likelihood of a customer choosing an alternative next time, defeating the point of a business creating the relationship in the first place.

To illustrate the point let’s take two examples.

Firstly, legal services.  There are many law firms and other B2B companies who are exemplary at managing their client experiences and will do so for a long time.  There are some however, who, having worked hard to win a new contract, will try to extract as much revenue from that arrangement as quickly as possible because it might not be there in three years when it’s due to be renewed.

Patently, that short-term approach of ignoring what clients really value – things like charging hourly rates for what should be fixed-price work, showing a lack of understanding and having nasty surprises or a lack of information on invoices – is a self-fulfilling prophecy and will actually make sure the client will not renew in three years.  At best there won’t be a happy exchange of testimonials and worse, the client may pull the plug before the contract expires and explain why to all of their contacts.

Secondly, rail operators.  One would think that securing a fixed-term franchise is great news, and it should be.  A foot in the door for all those future contracts too.  But reading passenger reviews of one particular rail company in the UK reveals evidence that one person’s short-term is another’s long-term.  Investors rightly expect a return on their investment but those behind the franchise operators may have tipped the balance in extracting so much jam today that they now risk having no bread and butter tomorrow.

If their trains are filled with more people than there are seats, is it because their passenger experience is so good or because there’s a coach missing as a result of cheaper but longer maintenance schedules?  Or, that they don’t care about charging full price to stand for an hour in a draughty, noisy place?Mind the gap between Service and Experience

For some, the basic but unmet needs of reliability and cleanliness are still objectives and talking points for franchises rather than being the norm.  And, despite broadband wi-fi being available everywhere from my local café to an Airbus A380, we were told yesterday that rail companies in the UK should be able to offer wi-fi by 2019.  I know that’s more of a capital-intensive offering than getting staff to smile but still, 2019?

So, while some operators have fans rather than passengers, why is it that others are failing?  The word on the seats about this one major operator is that service has not improved noticeably since the franchise began – there are still broken doors on carriages and paid-for extras don’t materialise.  Even worried staff are saying everything’s on hold until (if) it is renewed, due in a year.  It’s easy to see how even just an ‘ok’ service then in turn breeds a shared cynicism;  it is also believed, rightly or wrongly, that a key metric in that renewal pitch is on-time arrivals – something that’s easy to achieve high scores on if you’re also in control of the timetable.

We know that with the right experiences, customers will choose to come back next time and it is that – the accumulation of many very short-term affirmations – which gives longevity to what businesses see as the elusive relationship.

So even where a contract, commitment or lack of choice exists, the company being fed would do well to act as if there is no long-term nature, no assumption about next time.

Their customers don’t make rash assumptions or see it that way;  what they do see is that on the other end of the hand that is doing the feeding they also have a pair of legs, ready to run at the first sign of a bite to a more appreciative recipient…

The Circular Economy and the Customer Experience

The world is full of great ideas the size of a planet but unfortunately, that’s how most of them stay – just ideas.

For some time now though the Circular Economy has been proving itself as an exception to the rule.  This inspirational initiative is changing the future of the way manufacturers make and service companies sell.  But for their customers and clients, it also means a different way of doing business, something that history tells us must not be overlooked.  In explaining the nature of the new consumer generation, Micha Kaufman at Forbes summarised it neatly by saying “The product itself is not important, only the experience that they contain”.

The creation of the Circular Economy 100 is the latest testimony to the vision and effort that has secured the support and imagination of governments, business leaders and innovators around the world.

Led by the genuinely inspiring Dame Ellen MacArthur and her foundation team, the principles of the Circular Economy have already been adopted.  Moving beyond ‘simply’ cutting carbon emissions and recycling glass into aggregate, some notable and diverse organisations such as wear2 and Maersk Line are effectively starting from scratch; building new processes so that what they make is made to be made again;  the Cradle-to-Cradle approach.  And what are seen as product-oriented companies are looking at how they move to a service / relationship orientation by selling the benefit rather than the product – washing machines for example, where consumers pay by the cycle while the manufacturer takes responsibility for the machine’s upkeep and replacement.

To have brought an idea on this scale from conception to execution is nothing short of phenomenal.  It takes enlightened people, enlightened organisations to change the rules of thinking in a way that will generate significant commercial benefits as well as reducing the enormous and shameful waste that plagues our planet.

Inevitably however, the success or otherwise of the Circular Economy is dependent on an acceptance by clients and consumers that they too must change the way they interact.  And so at this early stage of maturity, organisations have a unique opportunity to ensure, right from the start, that what they build and how they deliver it creates intended, consistent and profitable customer experiences.

The lessons of history teach us that one of the reasons why there is so much focus on customer experience today is because organisations are trying to force-fit new demands on top of old-style business models.  Markets are littered with examples of operational processes that were built for efficiency but that lack the flexibility and personalisation their customers expect.

So much time and effort is being spent investigating root causes of complaints, customer contacts that go under the spreadsheet heading of “failure demand” and simply the need to get the basics right.  And for others, it’s worse.  The focus is way out on the horizon to the extent that the rocks under their feet go unnoticed.  I’d much rather an airline communicate with me when there’s a delay than spend time and money developing an app that just tells me my bags are on the same flight.

Organisations would normally relish the chance to start with a relatively blank piece of paper and design around the customer but they may not have the resources or (yet) the appetite.   In the search for commercial sustainability and market differentiation however, the advent of the Circular Economy is a fantastic opportunity for those businesses who can, to think beyond the implications for its own processes and to genuinely build around what it will be like to be a customer. How will what they do make their clients feel and behave next time? What will their customers say to their family and friends over dinner tonight about what it’s been like to do business with them? And how can they use those experiences to generate more, high value customers?

The circular economy is about the huge economic, commercial and environmental benefits from making things now that can be remade later. But while the focus is understandably about innovation and operational processes, that effort will risk being wasted without the understanding and then the execution of the right customer experiences as an integral element of the design process.

It’s an exciting future but it also has to pay attention to the detail of the end-user experience, lest we go round in circles again.

Customer Experience surveys, metrics and a question of confidence

Far too often we see that organisations have a heavy, sometimes over-reliance on metric-based surveys.  In a way it’s understandable;  partly it’s about feeding the target-driven performance culture and partly it’s to have as much information as we can at our fingertips because that, in theory, makes strategic decision-making more robust.

So it was intriguing to read the latest headline about the rising confidence levels of UK businesses.  The UK Business Confidence Monitor index “stands at +16.7, up from +12.8 in Q1 2013, suggesting GDP will grow by 0.6% in Q2 2013”.

I wish to take nothing away from its credibility, accuracy and the expertise of those who know much more about economics than I, but it means, er, what exactly? Well, delve a bit deeper and the trend is confidently portrayed as being a proxy for future economic growth, of higher levels of borrowing and investment.   I’m no Smith, Keynes or Friedman but on the face of it that sounds like good news despite the fact that we may also conclude that the appetite to take on more debt is weak and fragile customer demand is still a problem.

Armed with just that though, if I was to present to the Board of UK plc, I’d fully expect them to say “And just what is it that you want us to do next?”.

It’s often the same when it comes to finding out what it’s really like to be a customer or client.  In the Business Confidence Monitor, the question that respondents are answering is “Overall, how would you describe your confidence in the economic prospects facing your business over the next 12 months, compared to the previous 12 months?”.   In consumer and employee surveys the equivalent questions might be “How likely are you to recommend us?”, “How do you rate our service” and “How satisfied are you?”.

All good questions in their own right, and also trying to predict future behaviour.  But while metrics will show a trend, on their own they don’t show why the trend is what it is, and therefore what it is likely to be in the coming weeks, months and years.  What’s more, depending on sample sizes and other mechanics of the survey, the reliability of the numbers comes with its own confidence factor of plus or minus x%.

Absent clear comments as to why respondents gave the reasons they did, there is a vacuum of context.  That means, as with so many metric-based surveys, that translating the information into knowledge upon which valuable decisions can be made still remains elusive.

I’ve always said that if organisations get the experience right first, the metrics will look after themselves.  Base analyses and decisions on the numbers alone and without any context, trends will simply continue to happen whether they’re known to be the right ones or not.

In that, I have every confidence.

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Thank you for your interest and for your time reading this blog.  I’m Jerry Angrave and I provide Customer Experience research and advisory services, most recently to the aviation, transport and legal services sectors.  If you’ve any comments or questions, do let me know, either through the blog, by email to [email protected] or feel free to call me on +44 (0) 7917 718 072.  There’s also more information at www.empathyce.com.

Remove unintended barriers to the intended email Customer Experience.

It’s an inconvenient truth that in promoting the use of email as a contact method, it is surprisingly easy to leave the wrong message.

I’m not talking about the content here, there’s plenty of focus on that.  The issue is about the realities of the customer experience when there has been a lack of thought given to the subject heading and the email address itself.

We wouldn’t set out to create an intentional experience that deliberately stops customers from being able to get in touch with us.  Not least, we wouldn’t want to be the one having to explain it to the Board.  And worse, it’s an uncomfortable conversation to have to justify it to a customer who is trying to turn to us for help.

Surely that doesn’t happen in today’s hyper-competitive, customer-hugging commercial world?  But it does, very much so, and in the process undermines all the good work created by the brand investment, employee engagement programmes and those posters on the wall proclaiming “We put customers at the heart of everything we do” (whatever that means..).

Here are three examples of where it can go wrong.  To give them context, the first one has a customer’s perspective providing the commentary:

I’ve had an email from “DoNotReply” – how do I get in touch?

Bought my tickets online. It all went well, it was easy and the people were friendly. But in the confirmation email I had there were a couple of things that weren’t quite clear and so I wanted to check some of the details. Problem was, it was from DoNotReply@— so I wasn’t sure what to do. There was no other way of contacting them apart from links to “Subscribe to our newsletter”, “You might also be interested in these services” and so on.  I’ve never had a good experience with their call centre either.

I went back to the company website and looked for the “Contact Us” page but knew I’d have to explain all the information again. Turns out it wasn’t a freephone number so I sent a message using one of those forms. All I’ve had back is a note saying I’m a valued customer and they’ll get back to me in three working days. I’m still waiting.

If they can send me an email, why do they make it so hard to reply to it?

 

And the point is?

Stopping people replying to automated messages might seem like an operational efficiency but there’s going to be a greater cost in, at best, handling the additional enquiry or at worst, losing the business next time. To get an email from DoNotReply isn’t very friendly language. You’re effectively saying ‘Hey you. Don’t even think about replying. Ha. We’ve got your money so we’re off trying to seduce more new customers like you”.

Either put in place a mechanism for routing emails that do come in or provide an obvious and easy alternative. By their nature, automatically generated messages that fit a template are more likely to generate enquiries from customers whose lives are not governed by templates.

You get the drift. The second and third points follow in the same vein so I’ll rattle through them.

Dear “Info”, who are you, really?
When our customers or clients put the effort in and choose to go to our website, ideally we want them to get in touch. That’s why we have a Contact Us page. How many times have we read that we only have one chance to make a first impression; that it’s the first seven seconds where people make up their minds about us?

So it seems at odds with that if the first contact we offer them is a highly impersonal info@— or Sales@—. It can also be at odds with what the brand promises everywhere else on the site about being customer-focused. Whether your customers are buying a book or chartering a luxury business jet, it’s got to be reassuring for the customer to think they are sending a message to a real person. Simply changing “Info@” to, say, “John@” makes it so much more engaging.

I know you’re here somewhere…
Linked to the two I’ve mentioned, this one’s about customers being able to find your emails later.

Chances are that during the life of your relationship a customer will want to get in touch. And if they’ve got an account number, membership reference, a password reminder or simply want your email address, it’s very likely they’ll look up an old email from you. We all do it, and the first thing we’re likely to do is to sort our inbox messages by sender.

However, the name of the company is often elusive. Instead, we have many messages from “Customer Services”, “Info”, “NoReply” to name but three very generic addresses. We want it to be easy for people to get in touch with us and we don’t want to give them a reason to give up searching or risk going elsewhere. It’s therefore well worth thinking about using an appropriate name that will appear in the customers inbox where they expect it to.

You may have all these and more covered, in which case that’s great. But if there’s any doubt, check it out. It won’t take long and if it starts a conversation between you and your colleagues about what needs fixing and how, that’s got to be better than the alternative “Please explain” conversation around the Board table.

Interested to hear your views, thank you.

Jerry

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Jerry Angrave
Managing Director, Empathyce Customer Experience
www.empathyce.com | [email protected]
+44 (0) 7917 718 072

The feedback on Customer Experience feedback

The process of gathering the right, usable customer feedback needs to be treated every bit as much as any other key touchpoint in the Customer Experience journey.

At a time where barely a day goes by without our customers being asked to give comments about at least one brand or another, it’s more important than ever to make sure that our survey is quick, clear and easy.

It’s not so long ago that when we were asked for customer feedback, we were happy to oblige; flattered that our opinion was being sought, happy to think we were helping make a difference.

Nowadays though, we are faced with a relentless torrent of surveys, a deluge that is at serious risk of diluting our willingness to spend time and effort understanding complex questions, giving subjective scores and thinking of constructive responses.

And so not only do feedback programmes have to work harder to unearth the actionable insights, the very mechanics are under the spotlight too. Calling customers on a Sunday afternoon, asking customers in-store to go online and leave feedback when they get home or sending “How did you get on?” survey forms at the time of the booking rather than after the holiday will at best garner lacklustre responses. At worst, it will damage relationships, brand reputation and the quality of decision-making.

For want of a better phrase, the “survey experience” should be understood and managed just like any other touchpoint in the customer journey. Particularly for service industries, it can be one of the few tangible points of contact. Make it a point of difference, not a nuisance.

I recently needed a roadside breakdown patrol to breathe life back into my car. Job done, and stood in the icy cold wind, I was asked to take a quick survey. The questions were supposed to be about my experience but in essence were really an audit of what they knew already; how long did you wait, did you need towing, did the patrol do a battery check and so on? When it came to the “how likely are you to recommend?” question, there was no “Why do you say that?” follow up.

“They never ask us what it’s really like to be out here” the patrol guy said, frustrated that although it will look like the metric-based targets will be safe, the fact that the call centre got my location and phone number wrong, keeping him and me out in the cold for longer, will pass “them” by.

The more customers give feedback, the more discerning they will become. Anything that makes them feel like it’s not worth it or that it won’t be listened to will be ignored. A wasted opportunity.

Already, we see that over 80% of unhappy customers don’t complain, they just choose a competitor next time. So knowing what it’s really like to be a customer is as precious as the willingness and ability to act on it.

We just need to make sure that when we draw people in to give us feedback, we don’t push them away as a result.

Jerry Angrave
Managing Director
Empathyce, the business of Customer Experience

+44 (0)7917 718 072
https://www.empathyce.com
[email protected]
@Empathyce