Hurricane Sandy Scorecard: NSTAR 1, Verizon 0

Like millions of Americans who live along the Eastern seaboard, my family got hit by Hurricane Sandy.

Now don’t get me wrong: Compared with residents of New York, New Jersey, and several other states, we had it easy in our little suburb north of Boston. Even so, there were a few exciting episodes, like this tree that fell on my neighbor’s house.

Fallen tree on power lines

And then there was this power line that came down on the sidewalk across the street from our home, about 4 feet from where I had been standing 20 minutes earlier (I had been talking to a firefighter).

What fascinated me, however, was what came after all the excitement: service recovery by our electrical utility and telecom provider.

Let’s start with our local electric utility, NSTAR. As you can probably guess from the above, our power had to be cut. To restore it, NSTAR needed to coordinate with both our local fire department and our local public works department in order to get that giant tree off the power lines before it could repair them.

When I looked at the job ahead for the utility, I guessed that we would be without power for at least a day. But exactly 12 hours after NSTAR cut power so that the burning lines wouldn’t pose a hazard, the tree was gone and our electricity was restored. In fact, NSTAR beat its own estimate by about 90 minutes.

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Q&A With Randy Pond, EVP, Operations, Processes, And Systems, Cisco Systems

In response to many requests to feature more business-to-business (B2B) content at our events, next month’s Outside In: A Forum For Customer Experience Professionals will feature several B2B keynote presenters, including Randy Pond, EVP of operations, processes, and systems at Cisco Systems. In preparation for the event, I caught up with Randy to talk about his keynote and the importance of championing the voice of the customer at Cisco. Check out a preview of Randy’s session in the below Q&A, or join me in Los Angeles, November 14th to 15th, to hear Cisco’s full story.

Q: What gets in the way of delivering the right experience to your customers?

First, in some areas, I believe we lack consistent policy and practices in the business that we can inspect, enforce, and govern.  It’s a combination of the legacy of our entrepreneurial spirit, drive to market, and speed to market. The second is related to the fact that we have a regular influx of acquired companies that we have to embed into our offering, scale into the marketplace, and turn loose to our customers. This can get us into trouble when we may not have the same sense of urgency when we release products. As well, there is a big push on the sales team to get new products moving and out to customers and a big pull from our customer base to get these new offerings in the marketplace. And that stretches our ability to make them as effective and easy to use as we would like. 

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Your Customers Are Complaining. Do Something About It

I'm about to start a gut renovation of my kitchen, which, of course, is an incredibly stressful not to mention expensive project. For cabinets, we got a recommendation for a designer at a local cabinet store. We met with her, got some great ideas, and went home to wait for the quote.

After no word for a week, we reached out for an update. Several days later, she finally called and quoted a dollar amount over the phone. I was thrown off. No written quote? No detail? When I asked for more info, she emailed me a fantastic quote that included drawings and details on every component but had a slightly higher price at the end than what she'd quoted verbally. Odd. Then, as we made changes to the design, this miscommunication pattern repeated. We ultimately decided to get cabinets elsewhere.

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Verdict: Samsung Galaxy Is Not Cool. This Is Winning?

An appeals court in the UK just decided that the design of the Samsung Galaxy does not infringe on Apple patents for the iPad.

Why? Well, the opinion by Judge Colin Birss concluded that, "They are not as cool.”

That’s pretty damning. Consider that customer experience occurs at three levels: meets needs, easy, and enjoyable (emotionally engaging). So what the judge is really saying with his ruling is that the emotionally engaging iPad differentiates itself  based on customer experience — whereas the Samsung Galaxy does not.

As a result of this ruling, Apple must run ads in newspapers, magazines, and on its website publicizing the fact that the two designs are different.

Does anyone else see the irony in that? I don’t know whether Apple can get away with what I’m about to suggest, but here’s the ad I’d love to see it run:

"Official Government Verdict: The iPad Is Cool And The Samsung Galaxy Is Not Cool  

According to a recent ruling by an appeals court in the UK, the Samsung Galaxy isn’t cool enough to be considered a copy of the Apple iPad. Here is what the judge said in praise of the iPad:

'The extreme simplicity of the Apple design is striking. Overall it has undecorated flat surfaces with a plate of glass on the front all the way out to a very thin rim and a blank back. There is a crisp edge around the rim and a combination of curves, both at the corners and the sides. The design looks like an object the informed user would want to pick up and hold. It is an understated, smooth and simple product. It is a cool design.'

What did he say about the Samsung Galaxy?

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Join Us At Customer Experience Forum West In Los Angeles, November 14-15, 2012!

Our Forum For Customer Experience Professionals in Los Angeles is just four weeks away — and we have some exciting news!

First, our final lineup of external speakers is confirmed. All of our main-stage speakers are from companies featured in our new book, Outside In — some of them are even the subjects of case studies in the book.

Many of you have asked us to feature more business-to-business content in our events, so in response, we have both Randy Pond, EVP of operations, processes, and systems at Cisco Systems, and John Taschek, VP Mof market strategy at salesforce.com. Both companies are in the book, and Randy is the executive sponsor of the program that won one of our 2012 Voice Of The Customer Awards.

In addition to Randy and John, we have Dr. Jim Merlino, the chief experience officer for Cleveland Clinic, a world-famous, $6 billion healthcare provider. The work he is doing is as applicable to organizations outside of healthcare as it is relevant to all of us who have ever been (or will ever be) patients.

We’re also excited about our main-stage panel on building a customer-centric culture with Nancy Fratzke of US Cellular and Kelly Harper of BMO Financial Group. Transforming a culture is one of the hardest things any of us will do, and both of these panelists have successfully done it.

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Softbank Acquisition Of Sprint Will Shake Up Customer Experience In The Wireless Industry

Softbank, which owns Japan's third-largest mobile carrier, just announced that it will buy a 70% stake in Sprint Nextel. What exactly will that mean for wireless customers?

First, a little background . . .

In our new book, Outside In, my co-author Kerry Bodine and I describe the customer experience turnaround that CEO Dan Hesse engineered at Sprint. By relentlessly identifying the top problems that customers called to complain about and then systematically eliminating those problems, he took the company from having the lowest customer satisfaction rating of any major US carrier to having the highest customer satisfaction rating. Fewer unhappy customers meant fewer calls to Sprint's contact centers. As a result, Hesse recently reported that Sprint saves $1.7 billion a year from averted call center contacts.

Hesse’s current challenges have centered around shareholder displeasure with the cost of licensing the iPhone and the cost of building out Sprint’s high-speed network capabilities. As I said in a previous blog post, that lack of shareholder support seems strange to me. Isn't it obvious that it's critical to offer customers the smartphone they want and a fast network with a lot of capacity to support that phone — especially in a world where they have so many choices? It should be.

In contrast to current Sprint investors, Softbank President Masayoshi Son understands that smartphones and the networks that fuel them are essential: Not only is Softbank already building a high-speed network to help it compete in the smartphone war in Japan, but also Son said that the iPhone 5 was a trigger for the Sprint deal.

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Why Some Companies Succeed — For Now — Despite Their Poor Customer Experience

Last week I got a question via email from one of Forrester’s clients, who asked:

“How do you explain the success of companies that consistently provide a poor experience but perform well financially?”

I wish more people asked this question because it shows that they’re thinking about customer experience in the right context: as a path to profits. Here’s my answer: Creating a superior customer experience is the most important thing that companies need to do. But it will never be the only important thing they need to do.

My co-author and I describe the relationship between customer experience and other factors that lead to business success in Chapter 13 of our new book, Outside In:

“Is customer experience a silver bullet that will kill off all your company's problems and make your stock price soar? No. If there is such a bullet, we haven't seen it. The fact is, regardless of your customer experience, you can still get clobbered by a big, strategic threat like a new market entrant (Netflix if you're Blockbuster) or a substitute product (digital photography if you're Polaroid). That's especially true if the new market entrant or the provider of the substitute product offers an amazing customer experience (Amazon.com if you're Borders or Barnes & Noble).”

When you have a virtual monopoly, you can get away with providing a poor customer experience right up until you can’t.

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Social Media Has Transformed Customer Expectations At Every Step Of The Customer Journey

After moving to a new apartment in September, I needed to get a new TV. My first instinct was to gather information from a few sources. I browsed online retailers to get an idea of prices, and I looked at manufacturers’ marketing content to understand the latest technologies like 3D TV. After all of that, I turned to consumer reviews and discussions to get a feeling for whether I would actually find those features valuable. (For example, some customer reviews helped me confirm that I didn’t want 3D TV.)

Where did I find those reviews? Everywhere — there are star ratings and comments on product pages at retail sites (like John Lewis and Amazon.com), technology media sites (like CNET) and manufacturer websites. Interestingly — I got the feeling that the manufacturers still aren’t entirely comfortable with the transparency that social media brings. They’d like to put a spin on the message, even if they can’t entirely control it — For example, Panasonic’s UK site has a page that promotes “5 Star Reviews Of The Month” (see the screenshot below). I can't think of a situation when I'd want a firm to guide me only to the most positive reviews of its products. Can you?

 

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How To Profit From Customer Problems

This summer, I vacationed in Redwoods National Park on the northern coast of California. Each day, my husband and I enjoyed peaceful hikes among the awe-inspiring trees that towered several hundred feet above us. But one thing caught me off guard: Far more often than I had anticipated, we encountered redwoods ripped from their roots, sprawled horizontally across the forest floor. Most had taken several other trees down with them. At first, I lamented the fate of each of these fallen giants. How unfortunate, I thought, that such a magnificent redwood would grow for half of a millennium, only to be toppled over in an unforgiving windstorm or to have its base weakened by fire.

And then I realized that the fallen trees might actually be a good thing. Standing at the base of each upended root system and looking up toward the sky, I could see a hole punched in the canopy above me that allowed rays of sunlight to reach the forest floor. I’m no biologist, but the sunlight seemed to encourage lush undergrowth that was absent elsewhere. Informational signs confirmed my suspicions: “Massive logs crisscross the forest floor, holding soils in place. Dozens of species of insects, birds, and mammals use them for shelter and food over the centuries of decay. Tanoaks, hemlocks, ferns, and huckleberries sprout on the nurse logs . . . Insects and bacteria live and feed on the wood.”

Reflecting back on my hikes through the redwood forest, I can’t help but wonder: What do most companies do when they encounter the customer experience equivalent of a fallen tree?

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Apple Maps Exposes A Larger Strategic Battle Taking Place

Now that Apple has apologized and the uproar over Mapplegate is starting to subside, it's time to step back and focus on why Apple had to do what it did. The fact is, Apple had to replace Google Maps for three reasons:

  1. iPhone map users are too valuable to leave to Google. According to ComScore, the iPhone users account for 45% of all mobile traffic on Google Maps, with the remaining 55% coming from Android. This means approximately 31 million iPhone users access Google Maps every month. iPhone users also use Google Maps more intensively than Android users. On average, iPhone users spend 75 minutes per month in Google Maps versus 56 minutes per month for Android users. And iPhone users access Google Maps more frequently than Android users, averaging 9.7 million visits daily versus 7.1 million visits for Android users. Given this data, Apple has a vital strategic interest in moving its iPhone users off Google Maps and onto an Apple mapping solution. Doing so not only deprives Google of its best users but also gives Apple the customer base they will need to drive adoption of new location-based services. 
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