NFL Owners Just Learned A Lesson About Bad Customer Experience. Did You?

I’m not the biggest NFL fan in the world, but now that I live in Boston, I follow the Patriots. I think it’s actually a requirement of citizenship.

And I do have a passing interest in some other teams. Who doesn’t love watching anyone named “Manning” throw a football? (Unless it’s against the Pats in the Super Bowl.)

With that as background, may I say that the now-ended lockout of NFL refs set the low watermark in football customer experience? Yeah, customer experience — not just for all those who buy tickets, but for all of us who “pay” for the games with our time by watching ads.

Lest we forget, let’s count some of the ways that the replacement refs ruined our Sunday afternoons and Monday nights:

  • Stopping the game every other play to try and figure out what really happened. Football is supposed to be a sport, guys, not a meeting of the local debate team.
  • Making game-changing calls that the replay showed were dead wrong. Hey, if you screw up, 'fess up — then make it right and move on. My sixth-grader knows that, so why doesn’t Roger Goodell?
  • Clogging the air time on ESPN with self-righteous defenses of their bad calls. (Okay, that didn’t happen on Sunday afternoons or Monday nights, but it was worse because it spread more pain across three weeks when all I wanted was to see the top 10 sports plays from the previous day. Argh!)
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You Asked, We Answered! Questions From Webinars About Our New Book, Outside In — Part 1

On September 19, my co-author Kerry Bodine and I delivered two webinars outlining the concepts in our new book, Outside In: The Power of Putting Customers at the Center of Your Business.

We received so many questions that we couldn’t answer them all during the webinars. So we split them up, and we’re answering them (in brief) in two blog posts. Here is Part 1. You can see Part 2 from Kerry here.

How many full-time employees are needed to build and maintain systematic customer experience processes?

Becoming systematic about customer experience isn’t about adding people to your company. It’s about changing the activities that the people you have today perform. Instead of proposing projects with no consideration for how those projects will affect customer experience, for example, add a mandatory customer experience impact assessment — as companies like FedEx, Fidelity, and Bank of Montreal do.

Are there benchmarks for measurement? Can you please provide some guidance for what a “good” customer experience is?

If you want to drive business benefits like increased sales and positive word of mouth, create a customer experience measurement framework and then start by benchmarking against yourself.

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Hire The Will, Train The Skill

If you scroll down, you’ll see a link to part two of my appearance on Jim Blasingame’s talk show, The Small Business Advocate. Among other things, in this segment, we talked about one of the keys to customer experience success: hiring the right employees.  

Hiring is one of the tools for creating a customer-centric culture that my co-author Kerry Bodine and I describe in our new book, Outside In. Although hiring is fundamental, it’s something that many hiring managers get wrong. That’s because they’re still looking primarily at what their candidates know — their job skills — and not focusing enough attention on to who their candidates are

Here’s why that’s a problem. You can teach people how to perform tasks, whether it’s stocking shelves or doing the books. And you can teach them enough about your products and services to be able to help your customers. But if they’re people who don’t want to help customers, you’re not going to teach them to be different people.

Are there really that many people out there who just don’t want to help customers? Yes. That’s a lesson Kevin Peters, the president of Office Depot North America, learned several years ago.

Kevin asked all 22,500 store associates to take a personality assessment test designed to evaluate employees’ skills, behaviors, and aptitudes as they related to serving customers. To his surprise and disappointment, a significant percentage agreed with statements like, “If the job requires me to interface with customers, I’d rather not do the job.”

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When It Comes to Total Returns, Customer Experience Leaders Spank Customer Experience Laggards

Whenever I talk about the business impact of customer experience, there’s one thing that always grabs people’s attention. It’s an analysis done by Jon Picoult of Watermark Consulting, who took five years of data from Forrester’s Customer Experience Index and constructed two model portfolios. One is a portfolio of the top 10 publicly traded companies in the index (customer experience leaders), and one is a portfolio of the bottom 10 publicly traded companies in the index (customer experience laggards).

You can read details of how Jon conducted his analysis in our new book, Outside In, and in this post on Jon’s blog. The results are striking. Over the course of the five-year period, the customer experience leaders spanked the laggards in stock performance. The leader portfolio had a cumulative total return of +22.5%, compared with a -1.3% decline for the S&P 500 market index and a -46.3% decline for the laggard portfolio.

Five-Year Stock Performance Of Customer Experience Index (CXi) Leaders Versus Laggards Versus S&P 500 (2007 to 2011)

Customer Experience Leaders Portfolio deliver 5 year return of 22.5 percent

What follows is an interview I recently conducted with Jon to get his thoughts on why making a compelling business case for customer experience is so challenging — and so important.

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Customer Experience Disciplines Apply To Small Businesses, Too

I had fun last week speaking with talk show host Jim Blasingame, the “small business advocate.” (In fact, listening to the first segment of the show — embedded below — I was probably having a little too much fun at first.)

One reason I was keen to do the show is that I’ve been thinking a lot lately about showrooming. You’ve probably heard about showrooming — maybe you’ve done it yourself. It’s when a customer goes into a retail location to touch and feel a product and then goes online to buy the product at a lower price.

Showrooming causes a particularly acute problem for small business owners. Their very existence is at stake: Just last weekend, I walked by a small bookstore in Concord, Mass., and saw a sign in the window that said, “If you see it here, buy it here, to keep us here.”

I sympathize with that small store owner’s plight, so I’d like to offer some advice: Putting a sign in the window that begs people to buy from you is the wrong approach. Do customers want to “keep you here” because of convenience? Nope. They can get lower-priced products delivered the same day at little to no shipping cost. Do they want to add you to the list of charities they support? No, and you don’t want that either — you’re in business to make a profit, and you probably take pride in being able to do just that.

Here’s a better way to compete: Focus on delivering a superior customer experience. As a local business owner, you have the chance to know your customers better than any website can know them — even the increasingly sophisticated websites that make recommendations based on past behavior. If you develop that understanding and marry it with expertise about the products or services you offer, you’ll have a winning combination.

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Does Your Company Have A Customer Experience Strategy? No, Really

Here’s a typical conversation we have with businesspeople when trying to gauge the level of customer experience maturity at their company:

Forrester analyst: “Do you have a customer experience strategy?”

Manager: “We sure do!”

Forrester analyst: “Great! What’s in it? What’s the intended experience that it describes?”

Manager: “Well, uh, hmmm… You know, maybe we don’t have a customer experience strategy.”

The fact is, people at most companies are in the same boat as that manager (or director or VP or SVP or…). Why? For the most part, it’s because it never occurred to them that customer experience – like other business disciplines such as marketing and branding – requires a strategy to keep it on track.

Here’s why your organization needs a customer experience strategy: Without one, you’ll tend to mix and match best practices that may be great for someone but don’t align at all with the customer experience that you want to deliver.

People love those genius bars in Apple stores, right? And Apple is known for delivering a great customer experience. So why doesn’t Costco put genius bars in their stores? Simple: A genius bar provides an experience that aligns with Apple’s overall strategy of differentiating through innovation but flies in the face of Costco’s overarching strategy to be a cost leader.

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