Posts

Walgreen’s Nails the Pharmacy Customer Experience

I’m not a big fan of ordering prescription medications – and I know I’m not alone. I’ve traditionally used mail order, but as I often forget to reorder in time, I frequently run out.  Also, since I change insurance every few years, I keep having to start over and fill out another form and get another prescription from my doctor.  Too much work.  But it’s been cheap enough that I keep trying to do it.

But those days are over.  Walgreen’s has made me a fan of using my local pharmacy, by offering good pricing with an excellent customer experience.

First of all is the price.  This is mail order’s strategic benefit, but Walgreen’s (and others) now level the playing field through competitive generics pricing.  But it’s the customer experience that separates them.  Walgreen’s has made three changes to really streamline the experience. Read more

Best Buy’s New Store Format: Beautiful Design Limited by Store Execution Issues

Best Buy unveiled a new store format last week at its flagship location a few blocks from their corporate headquarters. I visited the store twice last week. You can find more general review at The Mama Report, including photos, as well as at the Star-Tribune. The store has opened to rave reviews, and understandably so. The new format is beautiful, and greatly increases the opportunity to play with and learn technology.

The company traditionally introduces new store concepts in 1-3 stores, evaluates them, and determines which parts (if any) to scale. There are too many changes to include in one post, including such additions as a “Solutions Central” to ask questions, educational “digital displays” teaching about products, and vignettes that allow you to see how appliances might fit into your home. I will focus on the overall look and feel, and three specific areas: Tablet Central, the 3DTV Experience, and the Magnolia Design Center. This post reviews the format, and gives advice as to which parts should be scaled.

Full Disclosure

I worked for Best Buy for six years through 2008, and still love the brand. My last three years I designed interactive experiences such as those featured in this store. Several are clearly descendants of projects I led. This makes me more familiar with the issues than most. 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

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

A Review of Barnes & Noble In-Store Recommendations

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

You No Longer Have Only One Brand

Actually, you probably never did.  But you certainly don’t now.  With the growth of the internet and its reviews, social media and blogs, you now have as many brands as you have customer-facing employees.

The 18-year-old at your cash register, the retiree who greets your shoppers and the aggressive salesperson cold-calling prospects are your brand – and they create your brand message to a far greater extent than does your CEO, your product development group or your advertising.

Let’s look at some examples

I was reminded of this as I spoke with a friend whose company has an outsourced pop machine.  Recently, their delivery person began refusing to actually load the soda into their machine.  I don’t know whether this is corporate policy, the result of an overscheduled route, or a difficult delivery person.  But, since every company I know has their machines loaded for them, my suspicion is it’s him.  The brand message is clear:  “We charge you an extra 35 cents per can to drop soda off on your doorstep, and we’re not paid to do any more.”   As you might imagine, this message does not resonate with the customers, and this brand will likely be replaced!

For another example of how the staff is the brand, let’s look at two nearby Caribou Coffee locations.  My local neighborhood spot is fine, but nothing exceptional.  They deliver my far-too-hot tea and generally smile.  Just another coffee shop, with the requisite trivia question and the chalkboard with questions of the day.  The brand message here is, “We have coffee.  And a place to sit and drink it.”

Read more

Targeting Your Service Recovery to Avoid the “Hail Mary”

Last week I visited a company in St. Louis who put me up in a Hampton Inn. Hampton Inn isn’t at the top of my hotel list, but it isn’t on the bottom, either. It’s a fine hotel, with a hot tub mercifully free of screaming kids. But as I was getting ready for the day I found my hot water disappearing, and had to shave without any hot water at all.

I was mildly annoyed, but that was all. As I stopped by the front desk for another purpose, I waited (and waited!) for the manager who was on the phone. Finally, I gave up and sought out another staff member, asked my question, and casually asked whether they knew they were out of hot water. In my mind, the conversation was over. No big deal.

I was running late, so sat down for a quick breakfast. The manager then sought me out, apologized for being on the phone, then quickly mentioned they were comping my room, saying “We want you to come back here.”

Great service recovery, you might think. But was it?

Service Recovery is Crucial

Few activities impact a hotel (or indeed, any service company) more than service recovery. Beldona’s and Prasad’s study of hotels in Orlando found that poor service recovery was actually more damaging than having no service recovery at all.

Read more

Give Customers the Information They Need

How do you know what your customers need?

This is no idle question.  Giving your customers what they need is critical to building their engagement and loyalty.  You cannot create a great customer experience by leaving them guessing.

The first step is to put yourself into your customer’s shoes. This is pretty common practice– most companies provide ample opportunities for their employees to use their products through discounts, distribution of free product, etc.

There’s a disconnect

But the problem is, as members of the company, we’re not real people. We get so used to our products that it is almost impossible for us to think like our customers do. But we go on assuming that if we build products that we like, customers will like it, too. While this classic Dilbert post is clearly tongue-in-cheek, it’s funny particularly because so many of us assume customers are as passionate (and patient) about our products as we are.

For instance, at Best Buy I implemented multiple attempts to sell Media Center PCs. These were special Windows computers with home theater capabilities that were going to be the hub of the American home theater. Why not? Our computer merchandise team used them and loved the experience. Unfortunately, it turned out real-life customers weren’t as keen on loading virus checkers on their TVs, or rebooting their DVD players.

Putting yourself in your customer’s shoes is a critical first step – but it’s just the first step. To further develop your insight, you need to take a step back and watch your customers. See where they struggle. This is how Intuit’s Quicken became the leader in personal finance software. The idea for Quicken was hatched when founder Scott Cook watched his wife struggle with tracking their finances. As Cook was quoted saying in the Harvard Business Review, “Often the surprises that lead to new business ideas comes from watching other people work and live their normal lives… You see something and ask ‘Why do they do that? It doesn’t make sense.’”

This philosophy led to Intuit’s unique “Follow Me Home” program, outlined in Inc. Magazine’s profile of Cook. Intuit uses continual customer observation to drive development. And here is the key to their philosophy– “If there were problems, the fault was Intuit’s, not the customer’s.”

Accessibility boosts confidence

A retail experience last holiday season reminded me of what happens when you don’t take the time to understand the customer experience. I placed an order for my wife’s present on December 12 at JCPenney’s online site and received an immediate confirmation. I didn’t think much more about it, waiting to be told that the order was in.

After ten days, I realized I hadn’t heard anything– and it was just three days until Christmas. Getting nervous, I checked the status of the order online. Each item was listed “in stock” with no other status, so I assumed it must be ready and went to the store. There I learned that the order wasn’t in – they were back-ordered. I was assured it would be ready the next day. At home I looked at the order again, with everything still “in stock.”

The next day I called the 800-number before wasting time at the store, waiting for 20 minutes before being told my order was already at the store waiting for me (no notification had come yet), so I picked it up. Then, six hours after I picked up my order I received an automated call that my order was ready. This was December 23, cutting it a bit close!

The designers of this experience clearly did not take the time to consider the information customers need – particularly when problems occur. “In Stock” suggests it is ready to go – “In Transit” or “Back Ordered” would have been better. This was a routine order, but the experience left me very frustrated.

Contrast this to when I ordered an iPod and an iPad for store delivery at Best Buy. While placing the order online I was informed that the iPod was back-ordered, but the iPad would be shipped to the store immediately. An email alert came once the iPad was ready, including the expected delivery date for my iPod. When the iPod was further delayed, a third email alerted me of this. During all of this time I was able to view the order online, including the up-to-date status. Another notification told me when the iPod was at the store, and a follow-up email confirmed that I had picked it up.

Unlike JC Penney, Best Buy kept me fully informed of the status of my back-ordered item. How much more does it cost to alert customers that there are issues?  More importantly, how much does it cost when we don’t communicate?

Barnes and Noble also gets it. When I order a book online I receive a confirmation, and they send another email letting me know the book was waiting for me behind the counter.  Domino’s goes to the extreme – not only do they email when the pizza goes out to delivery, their website tells you when it is put in the oven, and even who is putting on the toppings! They understand that customers want information.

How do you determine what information customers need? Don’t base it off of your own experience. You have access to more tools and information than any customer. Instead, learn from Intuit.  Watch a real customer place an order. See where they have issues. Then follow up with them regularly as the order progresses. That is the only way to truly design the experience around the customer.

This holiday season, give your customers a present.  Give them the information they need.

Get out of here!

How often do you visit with customers?  Do you do quarterly visits?  Monthly trips?

Clearly, the answer will vary across different types of businesses.  A restauranteur can visit sites daily, and really should do it at least weekly.  A designer of nuclear plants probably can’t visit as often.  But the primary question is:  are you visiting often enough to stay fresh?

I typically find people on either extreme.  At Best Buy we had the Steve Jensens of the world (used without his permission!), a VP who visited stores for hours multiple times each week, talking to customers and associates to understand their thinking.  You could always count on Steve to know what was on the mind of our customers.  Unfortunately, we also had no shortage of people who had to be forcibly dragged to visit a store.  When a store is only a mile away from your desk, there’s no excuse for not visiting regularly.

Contrast that to a B2B company I once worked with.  After spending a few hours brainstorming on a new reporting package, I recommended we put together some mock-ups and run them by a customer.  The room went silent.  Finally, one person asked:  “Why would we do that?  It will take too long”  It didn’t take long before I realized that not a single participant in the meeting (besides myself) had ever met with a customer.  How does a product manager create great products from their desk?

When was the last time you visited a customer?  And, more importantly, when is the next time?