The First Key to Creating a Great Customer-Inspired Experience

A customer-inspired experience is critical to growth. According to a Temkin Group analysis, a great customer experience increases likelihood to recommend by 19.5% and likelihood to repurchase by 18.4%. And the best way to get that inspiration is through those who talk to customers every day – your front-line employees. In this piece you will receive the first key of creating a great customer-inspired experience. Keys two and three will follow soon!

The First Key to Creating a Customer-Inspired Experience: Identify What Really Matters

This seems like a no-brainer. Companies know what matters to their customers, right?

In fact, many have it wrong. Leaders get so focused on their tangible capabilities that they no longer see through their customers’ eyes, and use their over-informed perspective to prioritize efforts. As a good example, I worked with a global fast food company to determine the best way to increase growth. This company was laser-focused on R&D – inventing the newest menu item to drive that bump in sales. They applied a very rational lens to their customer experience – if we provide good food fast and keep coming up with new items, we’ll grow.

This approach is so alluring that it is no surprise they succumbed to it. And sure enough, the company was rewarded with a spike in sales every time they came out with a new food item. So, like most companies focusing on next quarter’s results, they kept feeding the R&D beast. But despite these sales spikes, their same-restaurant sales continued to drop each year.

We identified a segment of customers who visited their restaurants more than any other. But even within this segment, we found huge discrepancies on monthly spending based on emotional engagement. Read more

Rant: Conversocial fails at customer centricity, and Chick-fil-A passes with flying colors

I received a call from Conversocial on Monday.  I downloaded a white paper entitled Who’s Ignoring Their Customers, and a fellow with a delightful English accent called from an international number to see if I was interested in their software.  He emailed me the previous Friday, and since I didn’t respond within one business day, he made a follow-up call.

All good, with two exceptions. Read more

Innovating Through Your Front-Line Staff Speech

I’ve been speaking quite a bit lately – four times in the last week and a half – so I haven’t been able to complete the second half of my blog post “Experiment Your Way to Growth.” But you can see me speak about it below.  I come on at 2:44 into it.

The second half should be out next week!

Guest Post: Planning for a Successful Customer Experience Journey

Today is a special treat – a guest post from Annette of CX Journey.  You should definitely subscribe to her blog – a great read!

Planning for a Successful Customer Experience Journey

By Annette Franz Gleneicki

A customer experience strategy is just a strategy, a roadmap that outlines your approach to creating a customer-centric culture. Customer centricity is a way of life, a way of doing business, a journey. It’s not just a project or something to check off your “To Do” list for this week. It’s woven into the fabric of everything you do as an organization.

It takes the entire organization to successfully execute a customer experience strategy, not just the executive team, not just the frontline, and not just the CCO and her team overseeing the strategy.
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Dunn Bros Coffee – the Non-Chain Chain

“Coffee houses are about neigh­bor­hoods,” Dunn Bros Coffee co-CEO Chris Eilers tells me while we drink light roasts and blues music plays overhead.

Dunn Brothers is a popular Midwestern coffee chain with most of its locations in the Twin Cities. The company was started by Ed Dunn and now boasts 83 locations. Whereas Starbucks and Caribou (another Minnesota-grown coffee shop) have primarily corporate-owned locations, Dunn Bros focuses on attracting franchisees, who typically run and work at only one location.

This interview discusses the Dunn Bros Coffee history, how they use their franchisees to develop their unique customer experience, and how the company uses market research and social networking to learn more about their customers. It concludes with an analysis on how they do in creating a customer-inspired experience, as measured through the Heart of the Customer model.

Read the interview in Dunn_Bros-the_Non-Chain_Chain-White_Paper.

Experiment Your Way to Growth

 

High-growth companies discover their opportunities differently. They certainly use strategic planning and analytics, as do most of their competitors. But at their core, they do something else.

Babson Executive Education asked companies their top method to find revenue or cost savings opportunities, then compared that to their growth rates. Whereas low-growth companies tended to favor analytics or strategic planning, over half of high-growth companies focused on experimentation, as shown in the chart on the right.

High-growth companies understand that they can spend endless time debating the latest market research and its implications. They can get teams together for strategic planning off-sites. Or they can leverage the power of their people to quickly experiment to find the best opportunities. Market research and planning are important. But it is the action implicit in experimentation that drives growth. By moving to a culture of experimentation, you can be in your third iteration of an idea before your plodding competitors move the idea out of their planning processes. Read more

Who Creates Your Customer Experience?

Most companies are structured as if the 5% of the workforce at corporate knows more than the 95% who actually talks to the customers. Of course they don’t articulate that. But look at the last twenty changes to your customer experience. Were nineteen generated directly from the field? Or was it closer to one?

You certainly believe in listening to the customer (or you wouldn’t be reading a blog called “Heart of the Customer!”). But do you have a structured methodology to collect ideas from the field, deliberately test them, and then roll them out? Or do you have the equivalent to the often-ignored suggestion box?

In 2006, when High-Definition TVs were just becoming popular, Best Buy had a problem. Accelerating HDTV sales drove significant growth. But underlying this growth was a huge issue with increasing levels of returns. Customers plugged their new $2,000 TV into their existing $20/month cable hookup, and the resulting picture looked terrible. While the Best Buy associates generally told shoppers about the need to upgrade to high-definition cable, most didn’t listen. So when their picture looked awful, they returned their TV.

Read more

Great Clips – Driving Organic Growth through Customer Focus

“At every level in the organization, if people don’t understand what’s going on face-to-face with the customer, it doesn’t matter what else you’re doing.” That’s the advice of Rhoda Olsen, CEO of Great Clips. It’s the same strategy that has driven 30 straight quarters of same-salon revenue growth. But it wasn’t always that way. Back in 2005, “We thought we were a pretty customer-focused organization, as everyone does,” says Olsen. But that year sales and customers dipped for the first time in history. This wake-up call showed Great Clips they needed to better understand the current state of their customer needs. After conducting significant research, they discovered their brand wasn’t very well-defined and category confusion was significant. Customers had a difficult time distinguishing Great Clips’ value proposition from other salons. Read more the full interview, including an analysis of efforts, in Great Clips – Driving Organic Growth through Customer Focus Interview with CEO Rhoda Olsen.

Service Re-Recovery at Hampton Inn and Barnes & Noble

Service recovery is critical for any business.  Of course, the best time to fix a problem is immediately following its occurrence, but this is not always possible.  How do you handle service recovery after the fact, when complaints come from the web, email, or a call?  Let’s look at two very different examples, each based off of previous posts.

Several weeks ago I discussed running out of hot water at a Hampton Inn. The manager on duty paid for my room, but never gave me a time to vent before doing so, actually frustrating me more than the original problem. After creating the post, my daughter Becca suggested I share it with the hotel.  I did so, although I didn’t expect much to happen. You can imagine my pleasant surprise when I received this email from Peggy Messmer, General Manager of the hotel: Read more

A Review of Barnes & Noble In-Store Recommendations (Short link)

It’s March, which means gift-buying season at the Tincher household.  We have three birthdays in eight days – four if you count the cat.  My wife is a fan of the classics, so I bought her The Count of Monte Cristo at Barnes & Noble.

As I went to wrap it the next morning, I noticed something new in the bag – a little slip printed on receipt paper saying “You may also like…” recommending five books based on the three in my shopping cart.  As two of these were gifts, the grouping of recommendations were a bit odd, as you can see here.

Recommendations are powerful, providing social proof and motivation to buy more.  I spoke in this post about the need for retailers to bring their website content into stores.  It appears that this is exactly what Barnes and Noble is doing, utilizing the same recommendations as their website.  Since Amazon estimates a 20% lift from their recommendations engine, this strategy makes good sense.

But the current implementation is not ready for prime time.  Several issues with the execution include:

Read more