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Passion is Contagious

January 30, 2012 Leave a comment

This is a Guest Post by one Rachel Tait. I have the pleasure of working Rachel at Sword Ciboodle and her passion is contagious. Considering my previous post this seemed a natural to share with a wider audience (the Steelers part was almost a nonstarter :-). It is also interesting to note that we did ust open up new offices in Chicago, with nice view and Rachel made a side comment about the new view and feeling a bit inspired to finish this post – it can be the little things.

Steelers fans

Passion: “any powerful or compelling emotion or feeling, as love or hate” (Dictionary.com).

So, if that’s passion then what comes with it? In my opinion: focus, learning, interest and continuous improvement. Passionate individuals and organizations never stop learning, and in terms of customers, your passionate ones are often those that are most loyal, most valuable and importantly most vocal across all communication channels.

I’ve got a long list of things that I’m passionate about. I don’t want to bore you but on there would be chocolate, wagamama (delicious noodle house in the UK… unfortunately not available in Chicago. Sad face), Scotland, NFL Football and of course marketing. On marketing, I’ve always been passionate about it and I like to think I always will be. I did it for 4 years at university, have worked in this field since graduation and everyday know that this is the job for me. I’m not saying there are days when marketing isn’t the top of my fav list – ask some of my colleagues in the Sword Ciboodle office, the stories they could tell! But to this day, I’ve never got home and started looking into how I change careers to become a dentist, carpenter or Shetland Pony Breeder. In fact, with my passion comes an interest in advancing my knowledge in marketing and supporting disciplines.

For organizations that want to make waves in their industry, and stand out as the best, one of the secrets is to get passionate about your customers, and make them get passionate about you. Care about how they get treated, learn about what they want, and then go out of your way to deliver it! Don’t just find out why they like you, find out why they love you. And when you know why they love you – make sure you’re delivering these products/services/traits to them, and others like them, in spades. It’s important that you don’t just run through the motions in a predefined script or process (yes Abercrombie and Fitch I’m looking at you…. the fact your sales associates follow me around asking if they can help me because they were told to do so whenever they see a customer is more than a little creepy, and annoying). Go beyond what is expected or required, show off your passion and theirs will follow.

If you can grow this passion within a small customer base, you will often find it grows exponentially as beyond anything passion is infectious. Just look at sports fans! As a proud supporter of the Pittsburgh Steelers, I’m never more passionate, loud and proud than when surrounded by my other Black and Gold brethren. And when I say surrounded, that’s not only when watch games but also in groups online. I recently joined www.32loud.com which is a website which welcomes fans from all of the NFL’s 32 teams, and I joined because they are targeting those that are vocal to be part of their online community. They got to me via a facebook group for Steelers fans based in Chicago, which has 400+ fans who post on the ups and downs of the Steelers on a daily if not hourly basis. So what made me join? They locked into my passion. They have a leaderboard on the website, which ranks the teams in terms of number of members, number of posts, number of likes etc. Can’t have the Bengals or Ravens out doing my boys so I got onboard and ‘got loud’.

Like 32loud, find passionate voices out there, and let them know you’re not only listening to them but taking on their comments. Log into your company facebook, hold interactive focus groups, hey stand outside with a sandwich board speaking to people if that works for you! Just do something, as passion isn’t something you can just say you are and that’s that. It requires action, and not just one off action, but continuous action. Anything less is just lip service.

I know it’s not as simple as just getting it done, and many ‘ducks need to be in a row’ for this to happen – including people, technology, budgets etc. However, without a vision, and a commitment to achieving that vision, the norm will remain just that – normal, beige, ‘just ok’. I don’t know about you, but I can’t think of many examples of cutting edge companies that are ‘just ok’….. and for Rachel Tait.com, marketing extraordinaire to the stars, just ok isn’t an option….

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Mirror Images

January 17, 2012 1 comment

For a some time, I have been watching, reading, discussing and doing my best to understand the very broad field of customer service, customer relationships and the supporting strategy, technology and processes which go along with each discipline. Along the way, Social CRM – a complex overlay on all of the above, has become everything from a hot topic to nothing more than part of buzzword bingo and back again. At the same time I have also been trying to keep tabs on Enterprise 2.0, Social Business and Collaboration (not Emergent). Going back and reading my own early thoughts here I can see that in some ways my own thinking has changed, but in many ways it has simply matured. I have been saying for a fairly long time that Social CRM and Entperprise 2.0 are closely linked. In September 2009 I said it here and here. I am not patting myself on the back here, more being self critical. I said this 2.5 years ago and frankly we have not come very far.

This line of thinking have caused the following questions to nag at me a bit:

  • Does better agent (employee) engagement lead to better customer engagement?
  • Does better employee satisfaction lead to better customer satisfaction?
  • Does better user (employee) experience lead to better customer experience?
  • Is the collaborative employee the mirror image of the social customer?

Taking a bit of a leap from where my own thinking was a couple years ago to now considering how many elements need to be, or are essentially mirror images between inside and outside the organization. I am not going to be able to tackle all the questions in a single post. As any good learner does, I asked a few friends for some help.

Does better employee satisfaction lead to better customer satisfaction? Mark Walton-Hayfield of CSC had this to say (BTW – congrats to Mark and all of CSC on the Paul G Watchlist Review!):

“In summary YES! However, you need to make sure that people are empowered and that businesses deliver on their promises to customers too.

People who are encouraged to make decisions by themselves at work and who have the authority to solve problems with the outcome of keeping customers happy are generally more satisfied with their job than employees who need to seek out a manager for approval. Business owners who empower their employees tend to have both a lower staff turnover and higher customer satisfaction levels too.

A core tenant of modern leadership thinking is that you need to make people (at all levels) understand why they are being asked to do something and the part that they play in the bigger picture. By leading people through great communications which encourage motivation and with empowerment designed into the operating model you are creating an environment within which people can be proud and satisfied in the work that they do. For those people who are customer facing (and even those who are not) this will most likely translate and spill over into better relationships with customers. These customers will perceive that the representatives of the company are going the extra mile (and they probably are) and so over time this will improve customer satisfaction.

However, this comes with a warning – ensure that you have delivered upon your original promises to your customers and that you are responding to them in an effective manner on those occasions when you are not”

Mark Walton-Hayfield | Social Business Strategist | CSC | MarkW_H

I happen to agree with Mark’s thoughts, it makes logical sense, but why does it seem so difficult to carry out in practice? For commoditized products and services, where low cost is the differentiator, this might be very difficult to carry out, no? This is not a disagreement with Mark, more of an expansion of his thoughts.
Moving on to some other tough question, I posed the following to Laurence Buchanan of CapGemini (Also a CRM Watchlist winner): “Is the collaborative employee the mirror image of the social customer?” In hindsight, this was a bit of a leading question, isn’t it? In a way it is playing with buzzwords.

“Customers have always been social. For as long as trade and commerce has been around, customers have spoken to each other about good deals and warned each other of rip-off scams. But when we think of a social customer today we use the term to describe a customer who is a) connected to people and information via digital channels and social networks and b) someone who leverages that connectivity and information in their relationships with vendors and other consumers. For example, a customer who is connected to a network like Tripadvisor might use information from that social network to influence their choice of holiday as well to influence others in their network through their own contributions. The motivation of a social customer will vary greatly and may include simply getting a better deal, building up trust and respect from peers, or naming and shaming a poor product or service.

Employees have always been collaborative. Ok, perhaps not as collaborative as they could be (!), but we have always had to work with others to get the job done. The collaborative employee mirrors some of the traits above. Although the networks might be different, the collaborative employee is certainly connected to people (e.g. other employees, suppliers, customers…) and to information. In addition, the collaborative employee leverages that connectivity to help them work more effectively (e.g. breaking down internal silos), to build relationships or to build their profile within the enterprise.

However, the boundaries between the social customer and the collaborative employee are increasingly blurred and increasingly irrelevant. People play multiple roles in their daily lives (consumer, employee, supplier), information (and transparency) now flows much faster inside and outside an organisation and networks are increasingly interlinked. More and more it will be harder to separate the social customer from the collaborative employee.”

Laurence Buchanan | Principal, Digital Transformation | CapGemini | buchanla

Sharing the wealth a bit, I asked Prem Kumar of Cognizant the same question as Laurence, “Is the collaborative employee the mirror image of the social customer?

“If you recollect the concepts in the book reorganizing for a resilient organization, orgs (organizations) need to have people with specializations, areas where they have high efficiencies, areas which could be highly routine and monotonous. There is not much need to take decisions, and even if any, they would happen with in a predefined scope, options. This is what brings the scalability, the industrial scale. Collaboration happens at a minimum in these organizations, especially between people who need to make decisions on non routine issues. These are the people who have been empowered to take decisions.

One of the reasons for this collaboration that Ranjay mentions in his book is innovation, to meet the demands of the evolving customer. I do not remember if he talks about customer support, but here is again an area where you need to take decisions as well as collaborate with various dungeons in the org. ‘Responsiveness’ is the key reason for collaboration I guess. That means responding, at speed.

Now cut to the era of the social customer as he is right now. What he asks is public knowledge, so add the PR angle if there was not enough pressure on being responsive already. No wonder you need to be even more connected, at speed. Collaboration has been clamoring for attention for a few decades now, but now it has become inimitable, unignorable.

Collaboration is no longer a motivating factor to do better, it is now a hygiene factor; you stay healthy if you do it, else you fall sick. It is not doing pilates, it is eating good healthy food. Which means, it’s not about putting extra efforts, it’s about changing our habits, or mind frame for the better.”

Prem Kumar | Strategist | Cognizant | Prem_k

I really like that last point by Prem, collaboration is now a hygiene factor, it is a requirement to doing business. This is actually one difference, where the characteristics are not mirrored. Customers do not need to be social in order to be customers. But, social customers do require the internal organizations to be collaborative. All that is left to tackle are the remaining two simple questions.

Links provided from Mark W-H

Social CRM is not “Dead”; Social Media needs to Evolve

June 29, 2011 8 comments

IBM Institute for Business Value has released the second of their two part series “From social media to Social CRM“. Just by the title alone, you might have guessed that IBM does not quite agree that the epitaph has been written, nor spoken regarding Social CRM. After reading, and re-reading, this, the second in the series IBM report, I find it a rather bold approach to both social media as well as Social CRM. The study actually ties the two closer together than anyone has to date. While there are a few ideas and conclusions I might alter, there are some really interesting points as well and it is worthwhile for you to read directly.

The report surfaces some really interesting ideas about Social CRM and social media, which at first blush, I can almost guarantee that many of the regulars who read my blog will at first, disagree with. I can say that because I did at first as well. Frankly, I wanted not to like the paper, with some of my own thinking progressing beyond Social CRM; but that is not where I ended up.  The diagram above, and the messages in the report paint a picture where the maturity of social media will only be realized by a progression to Social CRM.

“If companies want to unlock the potential of social media to reinvent their customer relationships, they need to think about CRM in a new light while building a strategic and operational framework that provides both structure and flexibility.”

I found this to be quite refreshing actually; suggesting that Social CRM is the strategy end-point of social media. Whether it is ‘the’ strategy end-point or ‘a’ strategy end-point is to be determined, but IBM makes a strong case. My perspective is, and has been, that Social CRM is not one thing, but many different things, which is why it is hard for people to use it as a label. Sometimes, labels allow us to put things in buckets and sometimes they get in the way. Again, the jury is out on that one too.  Just look at the term ‘social’ it meant one thing for the past 50 years in business, only in the past 5 has it become something different.

Where I believe thinking went astray, by those who believe Social CRM has run its course, is by associating only ‘Social’ to CRM where it should be ‘Social Media’ – but, SMCRM is an acronym that would never stick.  The nuance is that social media encompasses both the technology (channel) and culture, where ‘social’ is just one part. But, what to call it is not really as important as what it does and how to accomplish your business goals. Among the issues preventing the maturation might be where social media resides within the organization. The place where customers would expect the convergence is an integrated contact center, the problem is that few companies have one. As the IBM report states, typically, 52% of the time, Marketing is responsible for social media strategy, and only 20% of the time Customer Service is responsible. With respect, we are asking one department, in isolation, to manage a continuum of experiences.

How does Social CRM fit with(in) Customer Experience?

Are we talking about Customer Experience, Customer Service Experience or Social CRM? Customer Experience is quite big (more in a minute) and cannot be managed any more than relationships can be managed. I would also suggest (and I have) that Customer Service Experience is a subset of Customer Experience; I believe Social CRM to exist in the same way, it is a subset of the solution, not the whole solution.

A Peter Drucker quote comes to mind: “Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.  With this in mind, I would like to extend these great words and suggest that ‘a Customer Experience is not what you design it to be, it is what a customer perceives it to be’. I would also add that managing experiences or perceptions is very difficult  (Hollywood and Disney can manage perceptions, most businesses cannot).

The maturation of social media to Social CRM can and will help by providing “integrated insights to improve customer experiences”, as stated in the IBM report. Reading Kerry Bodine’s recent blog and referenced Forrester report on Customer Experience in parallel with the IBM report was quite fun (geek fun, of course). In Kerry’s report, CEM is described as a very broad and important topic – which it is! The far-reaching impacts of CEM include all of the customer communication touchpoints, which includes Social CRM engagement, as well as many many other touchpoints?

“Customers interact with companies across hundreds of discrete touchpoints as they discover, evaluate, buy, access, use, and get support for a company’s products and services” and “customers interact with a company’s employees and partners either directly or via some intermediating technology”

CRM (Social or not) does not include a display ad, the coffee cup, the shower curtain in a hotel room, all important to CEM, though not to CRM. Where CRM comes into play is when a human contacts a human – period. Trying to tie the two together, if there is an intermediating technology, CRM is not likely to be involved. If a company is speaking directly to a person, and the channel of communication is public; aka social media, then the term Social CRM makes sense. Per the IBM research, social media, when used correctly is about engagement, thus needs to be part of a broader Social CRM strategy.  Proper CEM strategy is bigger than CRM and Social CRM but needs to include both if the approach is to be considered complete.

The constant debate of trying to separate out people and process from technology is tough, but important. “Service excellence is achieved by an almost harmonious dance between the people, processes and technological components.” I believe this can be stated for both Social CRM and Customer Experience – but that is just me. Just because a vendor is making a statement, does not make the statement wrong – nor right.

If you made it to this point, you might be interested my post earlier this spring called “The Perception Gap in Social”, based on data from the first IBM report in the series. Full disclosure, IBM is a Sword Ciboodle Partner, and Sword Ciboodle is certified on IBM’s insurance framework

Building a CEx that Creates Value for Customers… And for Companies.

A guest post By Dr. Graham Hill, Partner, Optima Partners and Associate, DesignThinkers. I have learned a tremendous amount from Graham over the past several years. I might add that if I had started reading his works earlier on, I would know even more! I am very please that Graham decided to share the following.

Too many customer experiences are created just for the benefit of companies. Customer are either a target or an afterthought. Many customer experience practitioners don’t see the 900lb Gorilla in the room; the most important touchpoints are not about marketing, sales or service, but about the weeks, months, even years of product usage. Companies need to re-orient the customer experience around what customers’ value, the touchpoints they use to create it and how the company can benefit from co-creating more value together with customers. Doing this opens up new opportunities to earn revenues long after the point of sale.

We tend to see the world in terms of who we are and what we do. It’s a cognitive bias colloqially known as Maslow’s Hammer. So advertising people, who obsess about Brands, talk about the customer experience (CEx) in terms of creating a branded experience. And internet people, who obsess about ecommerce, talk about the CEx in terms of creating a better on-line experience. And CRM people, who obsess about marketing, sales and service, talk about CEx in terms of, yes, you’ve guessed it, more efficient and effective, sales and service.

These are all inside-out versions of CEx. They are only about companies, their consultants and the vendors who service them both. They are NOT about customers. They all pay lip-service to customers, but the customer is not at the heart of their thinking, let alone their doing. They are at best a target, at worst, just an afterthought. It is a lot like waiting on-hold in a customer service queue and hearing a sugary voice intone on the telephone, “your business is important to us”. Sure it is, but not enough to staff the call centre with sufficient people to answer my call in a reasonable time.

Make no mistake, the CEx IS about brands, and the online experience, and marketing, sales and service, but it is about so much more as well. As was recently suggested in an online discussion, “CEx… is the sum total of the interactions a customer has with your company“. That’s close, but not quite close enough. In fact, most of the inside-out versions of CEx are so busy focusing on themselves that they don’t see the 900lb Gorilla in the room. That for the vast majority of customers, the most frequent and most important touchpoints are with the product during the days, weeks, months, even years of usage. For customers, the CEx is mostly about value-in-use.

If customers care the most about value-in-use, then the CEx should mostly be about enabling customers to get the most out of using the company’s products during usage touchpoints. That starts with helping the customer establish a need for the product, helping them to make the right choices and offering them the right sales terms. All the touchpoints the inside-out CEx-ers talk about. The ones of most value to the company. But critically, the CEX is also about supporting them when they first use the product, and then over a lifetime of product usage, up to the point where it is disposed of. These are the touchpoints the inside-out CEx-ers don’t like to talk about. The ones of most value to the customer.

This doesn’t mean bending over backwards just to give customers everything for free. Companies don’t need to become charities. It does mean understanding what customers are trying to do at each touchpoint in the CEx and at what creates value for them during each touchpoint, and then working out how to enable customers to create more value in such a way that the company can create more value too. And value isn’t just hard cash. It can also be knowledge that is used to drive innovation, relationships that reduce the cost of the next sale, even advocacy that drives word of mouth recommendation. The CEx isn’t just about creating value for customers, it’s about value co-creation together with customers.

If companies do this intelligently, it can turn upside-down how they go to market. Rather than just charging customers for outputs at the point of sale then abandoning them to their fate, which is so often what happens, companies can also charge customers for ongoing outcomes during the weeks, months and years of using the product. For example, Rolls Royce Aviation doesn’t sell aero engines any more. Instead, it sells ‘power by the hour’. Customers only pay Rolls Royce when the aero engine is used to fly their airplanes. And the airline may even be paid by Rolls Royce for maintaining the same engines in their own facilities. Its all part of a move towards outcome-based contracting that is sweeping business.

If we want CEx to become more than just another advertising slogan, ‘one touch’ button or marketing cross-sell campaign, we need to start to think about it from the customer’s perspective. And to work out how to co-create more value together with customers. Not convinced? Ask yourself a simple question, “which company would you prefer to do business with? One that is only interested in creating value for itself, or one that wants to co-create value together with YOU!”. It’s a no-brainer isn’t it? It should be for companies too.

Graham Hill
Customer-centric Innovator
@grahamhill

Further Reading:

Merz, He & Vargo
The Evolving Brand Logic: A Service-dominant Logic Perspective
http://www.sdlogic.net/Merz_Yi_Vargo_2009.pdf

Knowledge@Wharton
‘Power by the Hour’: Can Paying Only for Performance Redefine How Products Are Sold and Serviced?
http://knowledge.wharton.upenn.edu/article.cfm?articleid=1665

Irene Ng
Outcome-Based Contracting: Changing the Boundaries of B2B Customer Relationships
http://www.aimresearch.org/uploads/File/Publications/Executive%20Briefings%202/Outcome_based_contracting.pdf