Walking in The Customers Shoes - Peter Fisk

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Walkinginthecustomersshoes
PeterFiskdescribeshowtodefineanddeliverabettercustomerexperience.Readmore
inhisbookCustomerGenius:Buildingacustomercentricbusiness.
Everybusinessisattemptingtoattractandserveitscustomers,whilstmanycompanies
arealsoappreciatingthevalueinretainingandbuildingrelationshipswithexisting
customers.
Theydothisbydevelopingbetterproductsanddeliveringbetterservice.Theyhave
probablyembracedcustomerfirstprogrammes,marketresearch,newproducts,process
reengineeringandmeasuringcustomersatisfaction.Theymighthavedevelopedloyalty
schemes,databases,builtcallcentres,improvedservicelevels,andintroduced
balancedscorecards.
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However,mostbusinessesarestillnotapproachingtheircustomersinaparticularly
focusedorintegratedmanner.Theytypicallyseektomaximisethenumbersof
customers,ratherthanbeingselectiveinwhichcustomerstoworkwith.Theytypically
developsolutionswhichattempttosatisfyeverybody,butdelightnobody.Theytypically
workseparatelyintheirfunctionalsilos,ratherthanworkingtogetherforcustomers.
Theytypicallydeliverinconsistentlevelsofservice,ratherthantogetherdeliveringa
seamlesscustomerexperience.
Whatmakesagreatcustomerexperience?
Theexceptionalcustomerexperienceisonewhichisgreatforcustomers,andgreatfor
thebusiness.Itmustdeliver
peterfisk@peterfisk.com
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superiorvaluetocustomers,meaningthattheexperienceanditsbenefitsmust
beclearlydifferentiated,personalisedandrelevant.
superiorvaluetothebusiness,meaningthattheexperienceanditsdelivery
mustalsobeprofitable,efficient,andgeneratesignificantloyalty.
Customerloyaltytypicallyemergesbyconsistentlydeliveringsuperiorvaluetothe
customer.Managedappropriately,itisthesourceofsustainablefutureprofitabilityfor
thebusiness,andthereforeakeydriverofshareholdervalue.Thisneedformutualvalue
creationrequirescustomerexperiencestohavearelationship,ratherthantransactional
focus.Thismaysoundobvious,butitisrarelyheeded.
Agreatexperienceforthebestcustomers
Abusinesscannotandshouldnotcreateagreatexperienceforeveryone.Evenin
regulatedmarkets,itrequireschoices,andfocusofeffort.Acompany'stargetcustomers
willappreciatethedifferentiationwhichthecompanyoffers,willbeprofitabletoserve,
andbewillingtoworktogetherthrougharelationshipofmutualvalue.
Secondlytheconceptofan'experience'ismuchmorethanaproductandservice.It
includeseveryinteractioncustomershavewithasupplierortheirbrandfrominitial
awareness,throughchoice,purchase,usage,maintenancetodisposalandrepurchase.
Crucially,itmustbeseenanddefinedbycustomersby'walkinginthecustomer's
shoes'.
Thecustomerexperience,asdescribedbythecustomer
Adifferentexperienceforeachcustomer
Eachtargetgroupofcustomerswillundoubtedlyseekandrequireaverydifferent
experiencefromothers.Itisthereforecrucialthatthereisadetailedunderstandingof
customers'prioritiesandpreferencesforeveryaspectoftheexperience,andthatthisis
continuouslyupdatedandembraced.Everyinteractionisanopportunitytolearnmore
aboutthecustomer,andtoapplythisknowledgeinappropriateways.
Winningorganisationsrecognisethattheircustomersseektoderivesignificantpersonal
orbusinessbenefitsfromtheirpurchasedsolutions.Arecentsurveyfoundthat84%of
companiesdonotbelievethattheircustomersfullyrealisethebenefitsoftheirproducts
andservices.Thisisnotthecustomer'sfault.Companiesmustworkmuchharderwith
theircustomers,seeingpurchasesasthebeginningratherthanendoftheirinteraction.
Takingthisastepfurther,therapidlyevolvingworldof'onetoone',doingbusiness
interactivelywitheachindividual,requiresthatthewholeexperienceispersonalisedfor
eachcustomer.Thismayseemchallenginginmassmarkets,yetisabsolutelypossible
throughtheeffectiveapplicationofpeople,technologyandknowledge.Companiesmust
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getevermoreintimatewiththeircustomers,buildingconfidenceanddeliveringbenefits
foreachother.
Agreatexperienceforthebusinesstoo
Creatinganddeliveringanexceptionalcustomerexperienceisahugechallengefor
everybusinesstoday.Itrequiresasignificantbreakthroughnotjustformarketingand
customerserviceactivity,butforeverypartofthebusinessHR,finance,operations,
purchasingetc.Winningorganisationsorientatetheirentirebusinessinsupportofthe
customerexperience.
Thisrequiresthemtomakethreefurtherbreakthroughs:
Exploitingcustomerinsightsthroughoutthebusinesssothateverycustomer
interactionispersonal,seamlessandrelevant.Theinsightscomefrommany
sources,notleastthroughaninteractivedialoguetheknowledgebeing
captured,sharedandutilisedbyeveryonethroughoutthebusiness.
Aligningthewholebusinesstosupportthecustomerexperienceorganising
theirbusinessandtheirpartnersasanefficient'enterprise',designedtomeet
customers'needs,ratherthantheirown.Thismustbeunderpinnedbythe
integrationofseamlessendtoendprocesses,systemsandtechnologies.
Developingacustomerculture,inwhicheverypersoniswilling,able,
motivatedandinspiredtodeliverabetterexperienceforcustomers.Thisrequires
atruebusinesscommitmenttocustomersitrequiresleadership,empowerment,
appropriateskillsandknowledge,andbalancedperformancemeasuresand
rewards.
Winningorganisationsmustachievefourbreakthroughs.
HowdoIdevelopagreatexperience?
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Exceptionalcustomerexperiencesdonotjusthappen,theymustbecarefullydesigned
anddevelopedandeffectivelysupported,deliveredandmanaged.Americanstyle
restaurantchainTGIFridays,forexample,defineawholeseriesofcustomer
experiences,eachoneappropriatetodifferenttypesofcustomersandoccasions.Each
'experiencemap'definesanappropriatesetofactivitiesandbehaviourscarefully
designedtoensurethatthecustomerhas'agreatexperience,aswellasagoodmeal'.It
isunlikely,forexample,thatafunseekinggirlsnightoutwillhavethesameagendaasa
romanticcoupleseekingaquietmealfortwo.
Winningorganisationstypicallyfollowanumberofstepstocreateanexceptional
customerexperienceonewhichcreatessuperiorvalueforcustomersandforthe
business.Throughextensiveworkwithcompaniesworldwide,Ihaveidentifiedtheten
essentialactivities,whichiffollowedrigorouslywillensurethattheexperienceis
differentiated,personalisedandrelevantaswellasbeingprofitable,efficientandthe
sourceofenduringloyalty.
10stepstocreatinganddeliveringanexceptionalcustomerexperience
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Step1.Selectthebestmarketsandcustomers
Winningorganisationsdonotgaincustomersbychance,theychoosethemcarefully.
Theyseekthemarkets,segmentsandindividualswheretheycancreatemostvalue.
Thereisnopointinasupermarketenteringfinancialservices,unlessitcanoffer
somethingbetterthancompetitorssuperiorvaluetocustomers,andcanmakemore
moneyoutofitovertimesuperiorvaluetothebusiness.Asanexampleofthisfocusand
selectivity'Red'recentlymadeawinningentryintotheseeminglysaturatedmarketof
women'smagazines.Byclearlytargetingthe'thirtysomething,stillyoung,withattitude',
theyidentifiedavaluablesegment,wholackedadedicatedfocus.
Selectingthebestcustomerswithwhomtobuildrelationships.
Segmentingcustomersbytheirvalueandtheirneedsisfarmoreinformativethansimply
groupingthembysize,locationorspend.Byclusteringtogetherlikemindedcustomers,
suchsegmentationenablescompaniestoservecustomersbetter,ratherthanjust
organisingthemmoreefficiently.The'best'customerswillbethosewhoarewillingto
buildarelationshipovertime,whocanbeprofitabletoserve,andthereforehaveahigh
'lifetimevalue'potential.Importantly,eachcompanycanseekdifferentbestcustomers,
dependentonthefitofneedsandaspirations.CarmakerAuditargetsverydifferent
customersegmentsand'best'customersfromDaewoo,yetbothcanbesuccessful.
Step2.Reflectontheircurrentexperiences
OneofthemostimportantphilosophiesbehindDisneyistheirpassionate
encouragementofalltheirpeopletoseeeverythingthattheydothroughtheeyesoftheir
customers.Howmanybusinessesreallydothis?Manyaresoremotefromtheirreal
customershiddenbyinternalinterfaces,wholesalers,distributorsandthirdparty
researchreportsthattheyhaveverylittleideaabouttheircustomers'experience.These
companiesfailtoseethewhole'experience'oftheircustomers.Apastasaucecould
easilybeyetanotherglassjaronashelf,yettoDolmioitispartofawholeexperiencefor
customershowtheybuyit,whatwith,howtheycook,howtheyentertain,howthey
holidayintheircase,directlybroughttolifethroughDolmio'spastaloversclub.
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Winningorganisationsdeliberatelymapouttheentireexperienceofcustomers
consideringeverystepoftheirexperience.Theyquestionwhatisgoodandbadfroma
customerperspective,andseektounderstandwhytheexperienceissuch
Whatallthestepsfrominitialawarenesstofinaldisposal?
Wherewhereaboutsinatown,inashop,inthehome?
Whenthesequence,thetimeofday,thedayofweek?
Howautomatedorinperson,fastoralengthywait?
Whofromasupplierandacustomerperspective?
Whyithappeninthesesituations,sequences,oratall?
Evaluatingandimprovingeveryinteractionwithinthecustomerexperience.
FortheseniorexecutivesofGuiness,thismeanslatenighttripstopubsandclubs,
seekingabetterunderstandingofdrinkers'prioritiesandbehavioursasthenightrollson
bothwhattheydrink,aswellaswhere,howandwhytheydrink.Suchanintimacywith
customersissaidtorapidlyconditionbusinessattitudes,andtobethesourceofmany
anecdotesatexecutivemeetingsformonthsafterwards!
Step3.Exploreallideasforimprovement
WhenOrangeenteredthemobilephonemarket,theyconsideredindetailthecurrent
experiencesofmobileusers,andwhataspectstheycouldmakedifferentandbetter.As
wellasintroducingaclarityofbrandingacrossretailers,handsetsandairtime,Orange
introducedchargingpersecondratherthannearestminute,andthisprovedasignificant
motivationformanynewbuyers.AmericanExpressareanotherorganisationwhoare
constantlyseekingtoimproveallaspectsoftheircustomers'experienceforboth
corporatebuyersandcardholders.Theyconstantlyprobethroughusergroupshow
everyinteractioncanbeimprovednotjustproductsandservices,butthewhole'blue
box'experience.
Winningorganisationsinterrogateeverypartoftheexistingcustomerexperiencefor
ideasandopportunitiestoimproveofteninvolvingsalesandcustomerservicepeople,
whoarelikelytoknowthesituationbest.Theyagainquestioneveryinteraction
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Whatisitneeded,whatcouldbeomitted,substitutedoradded?
Wherechangethelocation,fromhighstreettohome,shoptostreet?
Whenchangethesequenceofinteractions,opennightratherthanday?
Howautomateormakehuman,lengthandstyleofcontact?
Whoreversalofroles,singleratherthanmultiplepeople?
Whywhatdifferencewillitmakeforcustomersandthebusiness?
Someofthebestinsightscomefromcomparingtheexperiencetothatwhichthe
customermightgetinatotallydifferentsector.HowdoesbuyingflowersfromInterflora
comparetobuyingatrainticketfromEurostar?Payingagasbillcomparetobuyinga
newsofa?Usingtheinternettousingawashingmachine?Customers'expectationsare
todayinfluencedbyalltheirdiverseexperiencestheyareevermorediscerning,
demandinganddiscriminating.
Step4.Understandwhatmattersmost
Winningorganisationshaverecognisedthefutilityinaskingcustomerswhatwouldthey
like.Manycustomerswillsayeverything,andotherswillnotsaywhattheymean.And
noneofthemwilltellyouaboutthethingswhichtheydon'tyetknow.Thisisnotanew
dilemma,perhapsjustanexcuse.Thechallengeistounderstandwhatreallymatters
mosttocustomers,andwhatmattersleast.Thisencompassesallaspectsofthecurrent
andpotentialexperiencefromthemethodofpurchase,toservicestyleandprice.An
understandingofrelativeimportancewillenableefficientfocusofeffortavoiding
underperformanceincrucialareas,andpotentialoverdeliveryinothers.
Importanceandperformanceofeachstepoftheexperience
WhenBritishSteelreallygotdowntounderstandingwhatmatteredmostandleastto
theircustomers,theyfoundthattheireffortstoensurea24hourdeliverywere
misdirected.Customerswerefarmoreconcernedabouttheprecisionthanthespeedof
deliveries.Thisinsightofoverdeliveryinoneareaandunderperformanceinanotherled
toslightlylongerbutmoreprecisedeliveriesresultinginasavingofseveralmillions
throughlogisticsefficienciesandhappiercustomerstoo.AnotherexampleisGo,the
recentlyannouncedlowcostairline,whichistargetingpriceconscioustravellers,
offeringthemvaluewithstyle.Byunderstandingwhatreallymattersforthistarget
segment,Goaimstocreate'theSwatchoftheskies'.
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Step5.Definethecustomervalueproposition
Itmightsoundobvious,butwinningorganisationsmustgivecustomersareasonto
choosethem.Theymuststandoutfromthecrowd,throughdifferentiationwhichis
relevantandmeaningfultothetargetcustomers.Acustomervaluepropositionisa
techniquewhicharticulatesthisdifferentiation,foreachtargetsegment.Itisasharp
definitionofthevaluethecompanycreatesforitstargetcustomerswhatitoffers,the
uniquebenefitswhichnobodyelseoffers,thecoststothecustomerofattainingthese
benefits,andthetradeoffsthecustomermustmakeinchoosingonesupplierover
another.Itisnotamarketingslogan,butaclearfocusforthewholebusinesswhatit
doesinside,andwhatitdeliversoutside.
TheCustomerValuePropositioncreatesfocusforthewholebusiness.
Surprisingly,arecentsurveyshowedthatonly32%ofcompaniesbelievetheyhaveclear
differentiationintheirmarketplace.Thisisanastonishingfact,implyingthattheothers
aresatisfiedatplayingascommoditiesinaparityworld.TheCooperativeBankhave
chosentodifferentiatethemselvesbybeing'moreethical'thancompetitors.This
providesthebankwithadistinctivemarketingmessage,butalsohasimplicationsfor
howthewholecompanydoesbusiness.SASHotelshavesimilarlystrongdifferentiation,
bybeingthe'mostenvironmentallyfriendly'hotel.Theydon'tnecessarilyseektobethe
mostcomfortable,ormostluxurioushotel,buttheyaredistinctive,inawaywhich
matterstotheirtargetcustomers.
Step6.Innovatewaysofdeliveringdifferentiation
Therealartindevelopinganexceptionalcustomerexperienceisinthecreativeways
thattheCVPisconvertedintoreality,andinparticularthewaysinwhichthe
differentiationisbroughttolife.IntheCooperativeBank'scase,thismeanshowthey
advertise,sell,andsupportcustomersinanethicalway,aswellasensuringthatfunds
areinvestedinethicalconcerns.Theircauserelatedmarketing,andthedonationofa
smallproportionofallcardspendtoacharityofthecustomer'schoiceareexamples.
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Anyaspectofthecustomerexperiencecanbeasourceofradicalinnovation.
Innovationcouldbedefinedas'seeingwhateveryonehasseen,andthinkingwhat
nobodyhasthought',andbylearningfromothercompaniesthisisoftenproductivefor
example,innewwaysofchargingforgoods,alternativepackaging,ongoingsupport.
However,asRichardDysonwilltellyou,innovationalsorequiresthecouragetobreak
assumedrulesandperceivedbarriers.Avacuumcleanerwithoutabagseemsobvious
afterwards,butnevercrossedpeople'smindsbefore.Twoyearsagowhenweraved
aboutM&Ssandwiches,nobodyexpectedPretaMangertoextendtheir'passionforfood'
asfarastoday.
Step7.Designthenewcustomerexperience
Havingestablishedtargetcustomergroups,understoodwhatreallymatters,definedthe
customervalueproposition,andexploredinnovativewaystodeliverit,thebusiness
mustnowdefineatypicalexperienceforeachcustomergroup.Thisisnotrigidand
inflexible,butaplatformfromwhichtoservecustomersbetter,andmoreindividually.
Onegroupmightbetargetedthroughadvertising,anotherthroughspecialevents.One
groupmightbeaccountmanaged,othersreachedthroughintermediaries.Onegroup
mightpayafterpurchase,otherspaybefore.Onegroupmighthaveanongoingsupport
network,otherswouldnot.
Inordertoensurethattheexperiencewillbeexceptional,abusinesscaseatthispoint
shouldbedevelopedtodemonstratethatitwilldeliversuperiorvaluetobothcustomers
andthebusiness,andisthereforeworththeinvestment.Onceagreed,amoredetailed
specificationofdeliverywillberequired,suchaslevelsandstyleofservice,whilst
maintainingflexibilityanddiscretion.Movenpick,forexample,bringtheir'freshestfood'
propositiontolifeateveryinteractionintheirMarcherestaurantsvegetablesare
scrubbed,saucesaremade,chefsareSwiss,thechoiceisunlimited,andthefoodcooked
asyouwatch.
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Deliveringdifferentiationateveryinteractionwithinthecustomerexperience.
Step8.Alignthebusinesstodeliveritefficiently
Nobodycandeliveragreatexperiencewithouttheabsolutecommitment,supportand
alignmentofthewholebusiness.Theimplicationsofacustomerexperienceinsidethe
organisationaresooftenoverlooked,andthisisprobablythebiggestreasonwhy
experiencesfailtoliveuptotheirgreatmarketingpromises.VirginTrainsarean
obviousexampleofthisdysfunction,howevermanybanks,telcosandutilitiesarenotfar
behind.Winningorganisationsworkwithappropriatepartners,toforman'enterprise'in
whichstructures,processandsystemsaresharedandalignedtosupportthecustomer
experience.
Byworkingtogether,andfocusingonwhatmatterstheyensureefficiencyanddeliver
differentiation.
Equallyimportantistheculturalalignmentofpeople,goalsandrewardsensuringthat
theenterpriseworkstogetherforcustomers.Fundamentalwithinthisistheimportanceof
makingthebrandcometolife,sothatpeopleliveandprojectitsvalues,andsharethem
withcustomersinastylewhichisseamlessandconsistentthroughouttheexperience.
Nike,forexample,workhardtomaintaintheir'irreverencejustified'brandvalues,as
theirshoesandclothesarepromotedandsoldthroughretailers.AtGateway,thebrand
seekstomakeadifferenceateveryinteractionbyphone,bymail,andfacetoface.Jim
Taylor,theirmarketingdirector,talksconstantlyabout'livingthestory',everyone
workingtoturntheGatewayexperienceintoalivinglegend.
Step9.Customisethedeliveryforeachcustomer
'Onetoone'issettohavethebiggestimpactonsalesandmarketingactivitiesinalong
time.Indeed,theconceptofinteractiverelationshipswithindividualsinmassmarketsis
nolongerthestuffofmarketingfads.Inmanyways,itisaboutapplyingtheprinciplesof
businesstobusinessmarketingtotheconsumerworld.Therearethreebasicdimensions
tothisonetooneworld:
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Learningdialoguesbuildingknowledgewitheveryinteraction,sothatfuture
customerinteractionsaremorepersonal,morevalued,andthisbecomesa
positivebarriertoexit.
Customisedexperiencesmakingeveryaspectoftheexperiencetailoredand
relevanttotheindividualboththeproductandservicesolutionsoffered,andthe
waysofdeliveringit.
Growingrelationshipsbuildingatwowayrelationshipbetweencustomerand
supplier,throughdialogueandinvolvement,whichisofmutualandincremental
value.
BritishAirways,asanexample,arecustomisingtheircustomers'experiencesinmany
waysofferingadiverserangeoftravelsolutionsbyworkingwithover50travel
partnerstreatingcustomersinmoreindividualisedwaysbyleveragingdatabase
insightsandthehumanityoftheirpeoplebuildinggrowingrelationshipsthroughtheir
ExecutiveClub,involvingregulardialogue,activitiesandincrementalbenefits.
Step10.Manageandmeasuretheexperience
Whenthebusinesshasmillionsofcustomers,andthereforemillionsofexperiences,each
involvinganumberofinteractions,thenthechallengeisindeedsubstantial.However,
thisisthechallengeforwinningorganisations.Itisperhapsnotsurprisingtherefore,that
accordinganothersurvey,74%ofcompanieshaveyettodedicatesomebodytomanage
thecustomerexperience.Themajoritystillmanagesales,marketing,service,logistics
andsupportfunctionsseparately.Notonlythis,butinthemajorityofcompanies,
customersarestillfarlessimportantthatfinancialresults.Measurementand
managementarethereforecrucial.
Customersatisfactionisakeymeasureinmanyorganisations,yetweknowthateventhe
mostsatisfiedcustomersdefect.Thereforecustomerretention,orbetterstill,customer
loyaltyaremoreusefulmeasuresofthesuccessofthecustomerexperience.Satisfaction
isauseful'oilgauge'toensurethatdeliveryisreachingexpectations,howeverloyaltyis
notonlyameasureofcustomerattitudes,butalsoakeydriverofbusinesssuccess.
Althoughstillinaminority,companieslikeVirginandDisneyrealisethatloyalcustomers
provideasustainablesourceoffutureprofitabilityfortheirbusinesses,andthatthatis
attractivetoinvestors.
Quicksex,orabeautifulrelationship?
Finally,itisworthconsideringwhethertheexperienceisonlyatransactionaonenight
standorasteppingstonetoastronger,morelastingrelationshiponeofgrowingvalue
tocustomersandthebusiness.Thisisactuallyafundamentalquestionwhichshouldbe
askedbeforeembarkingonthe10steps.Inarelationshipworld,thestepsarethekeyto
growthandprosperity.Inatransactionalworld,theyhavelessvalue,asdothe
transactions.Inwhichworldisyourbusinessmorelikelytoachievefuturesuccess?
Customerloyaltyandrelationshipsareunlikelytoflourishmerelythroughregular
interaction.Thechallengeforthebusinessistodevelopanexperienceonwhichtobuild
arelationshipthatthecustomerwantstobelongto.Likeamarriageguidancecounsellor
mightadvocate,itisaboutfindingattractiveandappropriatepartners,whoareboth
willingtolearn,develop,adaptanddeliverincreasingbenefitstoeachotherovertime.
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Thegoalistocreatetherightexperience,fortherightcustomers,everytime.The
challengeisthentoensurethatthisdeliversrealvaluetocustomers,andthatthisisalso
realisedassuperiorvalueforshareholders.Bywalkinginyourcustomers'shoes,you
gainanewperspectiveonyourbusiness,andanewpictureofsuccess.Youstartdoing
businessfromtheoutsidein,ratherthantheinsideout.
Asonesuccessfulelectronicsbusinessrecentlyputit:'Whenwelookatourbusiness
throughcustomers'eyes,thecomplexitybecomessimple,andtheroutinebecome
inspiring'.
PeterFisk2015
PeterFiskisanexpertinstrategy,innovationandmarketing.Startinghiscareerasa
nuclearphysicist,hewentontoworkforandwithmanyoftheworldsleadingbrands
fromConcordetoCocaCola,RedBullandSantander,Virgin
andVodafone.HeisfounderandCEOofGeniusWorks,the
Londonbasedstrategyandinnovationconsultingfirm,and
visitingprofessoratIEBusinessSchoolinMadrid.Hehas
authored7booksincludingMarketingGeniuswhichhasbeen
translatedinto35languages,andandisincludedintheThinkers
50GuruRadarofthebestbusinessthinkers.Heisaninspiring
keynotespeaker,highlyexperiencedfacilitatorandpractical
coach.Findoutmoreatwww.theGeniusWorks.com
HisnewbookGamechangers:Creating
InnovativeStrategiesforBusinessandBrands
explorestheworlds100mostdisruptive
innovators,andtheninterprets10themesfor
successintodaysbusinessworld.From
enlightendedvisiontofindingnewmarkets,
bolderbrandsandinnovativebusinessmodels,
newcustomeragendasandenabling
experiences,realtimemarketingandsocial
movements,inspiringleadershiptodelivermoreprofitablegrowth.Italsoincludes
16practicalcanvasestoapplythebestideastoyourownbusiness.
Exploremoreaboutthebookatwww.Gamechangers.pro
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