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Customer Experience Drives 37 Consecutive Quarters of Same-Salon Growth – an Interview with Rhoda Olsen, CEO of Great Clips

Aiming for the Heart of their Customers

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:

Overview

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

Rhoda Olsen, CEO of Great Clips

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.”

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The Perfect Customer Experience Score!

IMG_3315I was meeting with the Executive VP of Sales for a national retailer, who asked me “Is there a holy grail of customer experience measurement?  We use satisfaction, and I’ve heard about this Net Promoter Score.  Is there one score that’s the best?”

This is an important question, and one I’m frequently asked. Opinions differ, with some companies advocating their favorite metric with the zeal of the converted.  NPS is the only question you need.  Satisfaction is absolutely not predictive.  Or it’s just as predictive as NPS.  Or more predictive.  The Customer Effort Score is far more predictive than either one.

With all these contentions, why do I keep reading case studies that contradict each other?  Why do some companies find NPS is more predictive of financial results than satisfaction, where others find just the opposite?

Could it be that there’s not one perfect score for everybody? Read more

Customer Experience is a Sales Job. And We’re Doing it Badly.

Are you selling your customer experience?Rising profits

A friend of mine is in her first year leading her company’s customer experience. A few weeks ago she told me, “I never realized how much selling is involved with this job!” I met another CX leader yesterday, who said much the same thing: “I always need to have my elevator speech ready, to explain to people why they should care about customer experience.”

It’s unfortunate but true: most leaders don’t naturally think about customer experience, and we need to be evangelists for the cause. But recent research from Teletech suggests that we’re not really helping ourselves to sell the mission.

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A Case Study in Loyalty: The Cabela’s CLUB

Cabela's Logo How do you create a world-class customer loyalty program? Focus less on providing best-in-class benefits and more on creating a great customer experience. That’s the advice of Sean Baker, the incoming CEO of Cabela’s World’s Foremost Bank and leader of the Cabela’s CLUB program.

I interviewed Sean to learn more about Cabela’s CLUB and its critical role in driving their customer experience. The lessons certainly apply to retailers as a class, but also have something to teach anybody wanting to create better relationships with customers.

CLUB Components

First, a quick background on the program. The Cabela’s CLUB is a loyalty program paired with a Visa card. It began as a partnership with a small regional bank as a way to give their best customers free gear, but in 2001 Cabela’s brought the program in-house. They are now one of only two retailers who entirely own their own bank to run their loyalty program (Nordstrom’s is the other). Read more

Ten Ways to Celebrate Customer Experience Heroes

In my last post I discussed the importance of creating customer experience heroes to reinforce efforts to make your customer experience great.  This follow-up post gives you ten ways to celebrate those customer experience heroes without promoting them. Just to be clear: Promoting a hero is fine if the situation calls for it.  But often promoting your hero takes her away from the role she loves. Use caution before promoting a hero out of the heroic role!

With that, here are ten ideas: Read more

Your Customer Experience Infrastructure is Crumbling

We are facing a management crisis.  And our customers and employees are paying the price.

The mantra over the last 20 years, but particularly during the Great Recession, has been “Do More with Less.”  Financial pressures have led to gutting anything that doesn’t show a direct return, from business investments to labor in retail stores.  But as documented in my white paper, what looks good for 3 months ends up with long-term consequences.

Management is another casualty.  Reorganizations and management shake-ups are a regular occurrence.  The role of a professional manager who has the time to develop her people is a relic of the past.  And that’s negatively impacting both our employees and our customers.

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Join Jim at Mindsurf!

I’m pleased to announce that I will be the keynote speaker at this year’s Mindsurf conference.  Join me as we discuss From People to Profits: The Business Case for Employee Engagement.

We will walk through not only the business case, but also three very concrete steps that you can take to improve employee engagement at your organization.  The official description:

Employee Engagement is not just a feel-good program. Companies are seeing significant productivity and profitability gains through building a culture of engaged employees, as reported by Gallup, Towers-Perrin, Hay Group and others. The worst economic downturn in decades left many employees afraid to leave their jobs. Now that the economy is loosening up, experts warn we may see increasing turnover as employees leave for greener pastures. How will you keep your best people? This session will focus on best practices to engage employees, including the ROI of engagement and how you can get started at your company tomorrow.

I hope to see you there!

The #1 Tool to Engage Your Customers

Note:  This post was originally listed at Annette Franz’s blog at http://cxjourney.blogspot.com/.  If you aren’t subscribed to her blog, you really should consider it!

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You’ve gathered your customer insights and made the changes. Your website is streamlined and easy to use. Your add-on services are perfectly aligned with customer needs. You have invested in the finest training for your employees. Your IT upgrades ensure that your staff has up-to the-second information at their fingertips.

But somehow nothing is changing. Your sales are flat, and your customer experience scores are static. What’s wrong?

Tell me, how good are your line managers?

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The employee-customer interaction is where the magic happens in almost any service-based business. Whether renting a car, shopping for groceries or eating out, the customer-facing associate makes the difference between a ho-hum experience and one that brings you back for more. Read more