This is the fourth in our Aiming for the Hearts of their Customers interview series, with seven Minnesota customer experience leaders sharing their strategy for the coming year. You can see all of the interviews here:
- Setting the Customer Experience Stage – Interview with Dave Kirsch, CEO of Shipper’s Supply
- Creating a Customer Experience Capability – Interview with Mara Bain, Chief Experience Officer, Western National Insurance
- Serving Diverse Customers – an Interview with Ghita Worcester, Senior Vice-President of Public Affairs and Marketing, UCare
- Creating a great customer experience for agents AND consumers – an interview with Lisa Hoene, VP of Brand and Marketing Services, Allianz Life
- Customer Experience is a Partnership – Interview with Robin Schribman, VP of Customer Insight and Customer Experience, Thomson Reuters
- Driving a Customer Experience Culture Change – Interview with Ingrid Lindberg, Chief Customer Experience Officer, Prime Therapeutics
I originally interviewed Rhoda Olsen to learn more about her customer experience efforts in 2011. You can read that interview here. At that point Great Clips had experienced 30 consecutive quarters of same-salon growth. That record has now been extended to 37, and the company has grown to over $1 billion in revenue.
Defining Customer Experience
Unlike some franchisors, Great Clips defines their customer as the end consumer, not the franchisee. CEO Rhoda Olsen explains, “We believe that if we don’t stay focused on that customer in the salon, the franchisee will not be successful. We define the customer experience from the time they check into the online app or walk in the door to the time they leave. Everything that happens in the wait time and what happens when they leave is part of the customer experience. The interaction with the stylist is their primary brand driver, but if somebody waited 45 minutes and been treated poorly, the stylist has to dig herself out of a hole.”
Great Clips does not have a specific customer experience group. “The entire organization is responsible for helping to drive a consistent customer experience.” Rhoda showed a Brand Delivery Document that defines their customer experience. “Every one of our executives – marketing, operations, education, even real estate, will always have this with them. Great Clips, the franchisee, down to the individual in the salon, all need to have a commitment to customer experience that defines the brand in meaningful ways for the customer. You can look at the rational items, like price and location, but really what connects customers is the emotional feelings they get in the salon throughout the customer experience. This is really focused on the feelings of comfort, freedom and connection,” Great Clips’ three brand pillars.
Measuring Customer Experience
The company does not rely on surveys. Instead, Great Clips’ Brand Delivery Document includes a scorecard with customer-focused measurements that tell them if they’re accomplishing their goals. “We define the customer experience emotionally and confirm it rationally,” Rhoda explains.
There are very few businesses where you physically touch your customers, which is what makes the emotional link even more important than in some other businesses. “Our customers want to look better and feel better without spending too much time or money.” Their metrics – items like wait time and repeat customers – helps the company understand how their franchises are delivering against those goals.
Bringing the Customer to Life for the Corporate Employees
In my previous interview I outlined Rhoda’s incredible salon visit schedule, going to 500 salons in one year. In that interview she reflected on the challenge of getting the rest of her senior staff out of the office and into the field. In reaction, her business services team creating Salon Immersion Days. “All of our staff go into the field and fully immerse themselves in a salon for a couple of days. They act as the receptionist. They’re on the floor. That’s a key part of the business that we really need to understand.”
They have also broadened their focus groups participation to get as many as possible to observe. As Rhoda explains, “That’s a way that people can listen to customers, get a sense of them. It’s almost a more intimate way of learning than being in the salon, because you’re hearing their preferences, their experience, those kinds of things.”
Creating a Customer-Focused Culture
“We don’t go into any meeting anywhere without viewing this information,” Rhoda explains, showing the Brand Delivery Document and customer scorecard. “All our manager and franchisee recognition is focused around this information, which tells us if we’re treating the customer well. We have great data to let us know whether the customer is coming back, how long they waited, whether or not we’re staffed appropriately.”
“The way you create a customer-focused culture is to make sure you’re treating your stylist right.” In the old days of overhead projectors, Rhoda used to begin meetings with a 3-line slide:
- Treat your employees well
- Treat your customers well
- Then count your money
And do it in that order. “There is no way we have a franchisee who is successful without creating an incredible connection with their staff.”
Planning for 2014
Rhoda was able to share three 2014 initiatives related to the customer experience. One is to build a global customer database. When one of your value propositions is to get a great haircut no matter which location you visit, having ready information on a customer and their preferences is critical.
The second initiative is to deploy additional iPads into salons to assist with checking customers in and out, and the third was to better integrate promotions into their social media channels and their app. This will allow them to react to local conditions. For example, if it’s a rainy day and business is slow, they will be able to identify customers who are due for their haircut and offer a promotion.