When I was in high school – and admittedly that was quite a while ago — my neighbor quit his job as an insurance salesman to go into the car phone business. My mother couldn’t understand why someone would give up a good, stable job to sell something that she couldn’t imagine anyone ever using. Who would use a car phone? Why would anyone talk on the phone in a car?
Fast forward a few years… (OK, a few more than a few)… and most of us can’t imagine not having our phone with us. We use our phone everywhere… And, yes, according to Forrester’s 2013 Consumer Technographics survey, 68% of US online adults use their phone in the car, and 48% even use their phone from the bathroom. Who’s guilty?! As for my mother, she has still never used an ATM card at a bank and still writes checks for cash at the grocery store, but she DOES have a cell phone and just might have used it in the car once or twice.
In 2007, I wrote a report about how to measure customer experience (CX) across an entire enterprise. At the time, I could find just three companies — three! — that were actually measuring CX this way. Everyone else I talked to said that their companies had no CX measurement or that they measured CX in a piecemeal way, touchpoint by touchpoint. They desperately wished that executives would see the value of measuring and managing CX at an enterprise level but admitted their leadership just wasn’t thinking that way yet.
Fast-forward to 2014 and things look a lot better in the world of CX. Leading companies in every country and every industry are making CX a strategic priority, investing millions to improve how customers perceive their interactions with the firm. It’s great to see, but I have to admit . . . I’m not willing to declare victory just yet.
My concern is that these improved customer experiences won’t stay good over the next five years. There remains a risk that this flurry of improvement projects will fade into memory, allowing dysfunctional CX practices and processes to revert back to their old ways.
To keep that from happening, companies need to do more than fix broken customer journeys or redesign average ones. They need to increase their level of CX maturity by creating self-sustaining systems (human and technological) in each of the six disciplines that characterize great CX companies — strategy, customer understanding, design, measurement, governance, and culture. But are they?
In my last report, "Standardize Great Customer Experience Delivery," I look at how companies create, share, and assess customer experience (CX) standards. Done well, CX standards prevent avoidable customer experience mistakes, ensure consistent experience delivery, and set a high bar for customer experience quality.
But bad CX standards are worse than no standards at all.
Unfortunately, customer experience professionals can make current problems worse — and even cause new problems — when they create the wrong CX standards. Remember the infamous Comcast customer-service call from the summer? That was, in part, caused by a bad CX standard. Comcast created a standard for its call center reps that requires them to capture a specific reason why a customer is canceling his or her service before moving forward in their scripts. Back in July, a customer recorded his agonizing attempt to cancel without providing a reason and then posted it online — where it was listened to by millions, creating a public relations nightmare.
But don’t give up on CX standards.
To craft the right standards, CX professionals should identify which parts of the experience need standards, create effective standards that strike an appropriate balance, socialize and reinforce the standards with all employees, and measure the impact of standards on customer and business metrics to confirm that they work.
Mobile is drastically changing consumers’ behaviors and expectations. Forrester calls this phenomenon the mobile mind shift: the expectation that I can get what I want in my immediate context and moments of need. While the mobile mind shift is global in nature, it’s most profound here in Asia Pacific (AP): By 2020, 4.3 billion people globally will have a mobile subscription and more than half of them will be in AP. Organizations must take advantage of this and catapult their business to new heights — or risk becoming irrelevant in the eyes of these technology-empowered customers.
Forrester has developed a framework to help eBusiness and channel strategy professionals prepare their organizations for the mobile mind shift that we call the IDEA framework. This is a systematic approach to developing mobile experiences for customers relevant to their context and entails:
(I)dentifying mobile moments and their context. A mobile moment is any time a person pulls out a mobile device to get what s/he wants immediately, in context. To understand your customers’ mobile moments, identify their needs, motivations, and context. Forrester recommends using customer journey maps for this step.
(D)esigning the mobile engagement. Use these results as an input when designing the mobile engagement. The design should match your business objectives and your customer’s motivation in each moment. The key is to incorporate contextual information into the design language of the app so that it is easy for your customers to interact with you in their mobile moments.
On August 20, the company’s 10th anniversary in China, Amazon announced a strategic cooperation with the Shanghai Free Trade Zone (SFTZ) and Shanghai Information Investment. The agreement ensures the direct delivery of millions of products from Amazon sites across the globe to Chinese customers and will allow small and medium-size Chinese enterprises to conveniently export their products to Amazon customers around the world.
With the already fierce competition in China’s eCommerce market ramping up, eCommerce players are scrambling to find ways to increase their competitiveness. After 10 years of operating in China, Amazon has found its new growth opportunity: cross-border eCommerce. The overabundance of middlemen in China’s traditional retail industry has driven up retail prices, especially for imports — so online retailing of imported goods via a large-scale eCommerce platform confers tremendous price advantages. Amazon aims to provide the best cross-border shopping experience for all of its customers — both in China and around the world. Amazon will invest and locate its cross-border eCommerce platform in the SFTZ and establish a logistics and warehouse center there; goods from Amazon’s overseas sites and vendors will enter China through the SFTZ. Amazon has a few key competitive advantages over other cross-border eCommerce vendors by offering:
A vast selection of products at competitive prices. Amazon will introduce more than 13,000 product items from 27 countries and focus on four major categories: international boutique, fashion, smart devices, and kitchenware. Consumers will have a vast selection of imported goods from Amazon’s platform. The scale of Amazon’s global operations gives it an unassailable price advantage over both online vendors and traditional retailers.
One of the developing trends in computing, relevant to both enterprise and service providers alike, is the notion of workload-specific or application-centric computing architectures. These architectures, optimized for specific workloads, promise improved efficiencies for running their targeted workloads, and by extension the services that they support. Earlier this year we covered the basics of this concept in “Optimize Scalable Workload-Specific Infrastructure for Customer Experiences”, and this week HP has announced a pair of server cartridges for their Moonshot system that exemplify this concept, as well as being representative of the next wave of ARM products that will emerge during the remainder of 2014 and into 2015 to tilt once more at the x86 windmill that currently dominates the computing landscape.
Specifically, HP has announced the ProLiant m400 Server Cartridge (m400) and the ProLiant m800 Server Cartridge (m800), both ARM-based servers packaged as cartridges for the HP Moonshot system, which can hold up to 45 of these cartridges in its approximately 4U enclosure. These servers are interesting from two perspectives – that they are both ARM-based products, one being the first tier-1 vendor offering of a 64-bit ARM CPU and that they are both being introduced with a specific workload target in mind for which they have been specifically optimized.
I get just as excited as the next analyst about the latest and greatest startup. But you know what? There’s something extra cool about a brand that’s been around since 1864, and yet runs neck-and-neck with Amazon in our UK customer experience rankings.
As we near the event, Andrew graciously answered some of our most pressing questions about the why and how of John Lewis’ famous service experience — which is all the more impressive given its brand promise: “Never Knowingly Undersold.” (Translation: Great customer experience doesn’t have to mean high prices.)
I hope you enjoy his responses, and I look forward to seeing some of you in London!
Q: When did John Lewis first begin focusing on customer experience? Why?
A: John Lewis has had a long-term focus on what we would previously have termed “customer service,” dating back to our founding principles from 1864. More recently, the advent of omnichannel retailing with all of its inherent demands has caused us to revisit these principles and redouble our efforts to provide a truly world-class customer experience.
Early next month, Forrester will publish a report on the dynamics of China’s private cloud market. This research demonstrates that Chinese I&O pros have started to leverage the benefits of private cloud — including highly standardized and automated virtual pooling and metered pay-per-use chargeback — to support the digital transformation of traditional business. By using private cloud, Chinese I&O pros not only support their business units’ digital transformation, but also provide the cost transparency that the CFO’s office demands. In practical business terms, Chinese organizations use private cloud to:
Improve business agility. There is fierce market competition to give Chinese consumers more choices. To do this, Chinese organizations must shift their business operations to increase their product portfolio to win new customers and provide a better customer experience to serve and retain existing customers. Chinese I&O pros need to provide a cloud platform that also supports business units’ requirement to lower their capital and operating expenditures.
Avoid disruption by Internet companies. Chinese web-based companies have started to use high-quality service to disrupt traditional businesses. Chinese I&O pros need to provide more flexible computing to help the application development team to improve the development cycle and respond to customers more quickly, flexibly, and effectively.
Develop new business without adding redundancy. Chinese organizations want to scale up new business to offset declines in revenue. However, the existing IT infrastructure at these firms often cannot support new business models — and can even take a toll. Chinese I&O pros need to find a new way — such as private cloud — to support business development and reuse existing infrastructure.