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

Case Study: Personal Customer Connections + Employee Empowerment = a Great Customer-Inspired Experience at Davanni’s

“We pretty much let our employees and customers decide what’s on our menu.”

That’s a great example of the philosophy that has led to long-term success at Davanni’s, a Twin Cities pizza and hoagy restaurant. While their local focus and fun atmosphere are definitely part of the mix, it is the extreme efforts to keep fresh with customers and employees that really drive their results.

Davanni’s has 21 locations throughout the Twin Cities. They have been in business for 37 years, featuring family-friendly food on the lower end of the cost spectrum. I originally asked to interview them about their experience with Coke’s new soda machine. But I ended up discovering the best example I’ve found of a company trusting their strategies to their customers and front-line employees. This story is a great example for any industry. Read more

Tekserve: A Blueprint for a Great B2B Customer-Inspired Experience

“Our job is to make our customers look good to their bosses.” 

That’s the philosophy of Tekserve, an Apple retailer and IT services provider in New York City, as articulated by Director of Marketing Jazmin Hupp.

Imagine that you are a long-time Apple retailer and supplier, and then Apple builds their flagship store just two miles from you, then four more just as close. Some might find it time to close up shop. Instead, Tekserve used the challenge as an opportunity to refocus on their customers. Their reward? Consistent growth, being featured in the Crain’s New York Business Fast 50 and the Computer Reseller News’ 2012 Solution Provider 500 list, which ranks the top technology integrators in North America.

Tekserve doubled-down on the service surrounding Apple’s products, particularly for businesses.  Almost 2/3 of their revenue comes from B2B relationships, where they are far nimbler than Apple. Much of their work involves integrating Apple products into existing networks, including wholesale conversions from PCs to Macs.

Tekserve credits their growth to three main areas of focus: 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

The Second Key to Creating a Great Customer-Inspired Experience: Engage the Entire Team on the Opportunity

Once you know what matters, the next step is to get everybody involved.

I have been speaking about this topic quite a bit lately, and one exercise I have is for participants to identify five recent projects or programs their company has developed to improve your customer experience. These could be new products, pricing changes, sales training programs – any new idea. Go ahead and do this, as well. Write down five new projects your company is implementing:

  1. ______________________________
  2. ______________________________
  3. ______________________________
  4. ______________________________
  5. ______________________________

Now that you have this list (you did do the exercise, didn’t you?), let’s look at your projects. Whether you work for a 50 or 50,000-person company, a good rule of thumb is that 90% of your company’s employees are individual contributors. So if your company is doing well at this key, 4-½ of these ideas should come from front-line employees. Brave readers: comment on how well you did!

Of the hundreds of attendees in my talks, how many had at least three ideas come from an individual contributor?

Four.

None came from a company of more than ten people. Only about half had even one idea come from a front-line employee.

We can do better. Companies pay consultants to tell them what to do, when they have dozens (or hundreds or thousands) of passionate employees who know far more about their customers. We need to do cast a wider net. 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

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