Differentiating On Customer Experience

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Paul Hagen

Michael Porter famously wrote that companies differentiate themselves by performing a unique set of activities from their competitors' or by performing the same activities differently.

Here are some numbers: 86% of companies say customer experience is a top strategic priority for 2011; 76% seek to differentiate based on customer experience; 46% have a companywide program for improving customer experience currently in place and another 30% are actively considering it; and 52% have a voice of the customer program in place with close to 30% more actively considering it.

With the majority of companies focused on improving customer experience, how can a company expect to differentiate on it? Because there remains a tremendous amount of lip service and intellectual dishonesty about what it takes. Let me give a few examples:

  • Friendly agents game the numbers. Although not able to answer the two questions that I had, a super-friendly phone agent at a major telecommunications firm ended the conversation by asking: “We aim to not only meet your expectations but to exceed them. Have I done that today?” From the tone of the agent’s voice and the question asked, it’s clear that someone at the company is thinking about customer experience. However, the gaming of the question indicates that the company’s culture has a long way to go to actually improve the experience beyond the superficialities. 
     
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How To Build A Customer-Centric Culture

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Paul Hagen

Building a customer-centric culture is occupying the minds and activities of a lot of companies that I’m talking with lately. This is great, because culture is the difference between going through the motions of a script and internalizing a set of values that dictate actions beyond the script.

Let me give an example: I recently was on the phone with an incredibly chipper call center rep at a telecommunications company. He didn’t answer either of the two questions that I had, yet remained friendly throughout the call. As the call ended, he said: “We aim not just to meet your expectations, but exceed them. Have I done that for you today?” Not only was the question a setup that will skew results, but the asking of the question made it clear that the company hadn’t succeeded in infusing customer-centric DNA into at least this person. A more customer-centric response is what you typically get from Vanguard or Fidelity: “I’m sorry that I can’t answer your questions. Let me find someone who can. Would you like to hold or can I call you back?”

Don’t get me wrong: Company intentions are important. Before I get into the culture part, I always step back with clients and ask "what kind of culture?" Don Norman's story about Southwest Airlines, in which the company refused to give customers reserved seats, food, and baggage transfers is a great example. The company's primary value proposition to customers is low prices (along with on-time service that's fun). That sets the stage for the kind of culture the company sets out to create. It's not customer-centric at all costs. It's focused on what’s valuable to customers.

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Environmental Sustainability And Customer Experience

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Paul Hagen

It’s hard to find a firm that says: 1) We don’t care about customers, and 2) we don’t care about being good corporate citizens. That said, it’s astounding to see companies on a daily basis act in ways that show complete disregard for customers and their general well-being. For anyone within companies who cares about brand, this ought to sound alarm bells, particularly as customers become more empowered with global platforms to let others know about their dissatisfaction and as they have increasing ability to take their business elsewhere.

Two relatively new executives within companies are spending their days trying to get company actions aligned with marketing messages: the chief customer officer (or more often a VP of customer experience) and the chief sustainability officer (or more often a VP of sustainability). There is a great opportunity for these two executives to form an alliance that could strengthen both. Why?

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Personal And Company Brands — The Story Not Told Of Empowered Employees

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Augie Ray

A week ago, my friend Michael Rubin alerted me to a CNNMoney.com/Fortune article that rubbed him the wrong way. I and many others who cover social media had the same reaction to “Building your brand (and keeping your job).” Not only did the article seem unfair to Scott Monty, a marketing leader who has been widely recognized for the good work he’s done at Ford Motor Co., but the author focuses a great deal of criticism on the actions of employees whose social media activities ran afoul of their employers rather than considering how those employers might have benefited from a different approach and attitude. 

At the core of the article is an accurate and interesting conflict, which Jerry Wilson of Coca-Cola describes well: "The personal branding process can create stress within a corporation. People will see if you are merely trying to advance your own career, as opposed to contributing to the success of the organization." This conflict is one that will evolve in the years to come as social media continues to change the way we communicate, form relationships, foster corporate culture and manage our careers. But rather than explore this conflict in any interesting way, the article dumps on social media-savvy employees.

The examples presented include:

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Zappos, Nestle, Social Media and How All Workers Are Knowledge Workers

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Augie Ray

I just read a brilliant and inspirational blog post on the Harvard Business Review site entitled, "Are All Employees Knowledge Workers?"  The authors, John Hagel III, John Seely Brown and Lang Davison, explore the "artificial distinction" that businesses create in their workforce between the haves (so-called "high potentials," creative talent, and knowledge workers) and the have nots (everyone else).  The writers suggest we need "to redefine all jobs, especially those performed at the front line (or, in an image, that reveals our prevalent management mindset, the 'bottom' of the institutional pyramid), in ways that facilitate problem solving, experimentation, and tinkering."

Early in the Web 1.0 era, companies asked what the Web could do for them.  It was the wrong question, because soon the Web was doing something to them--changing consumer expectations, forcing investments in technology, altering the way companies recruit, disrupting sales channels, changing company culture and breaking old models of the employee-employer dynamic.  (Remember when communicating with a boss at a certain level used to mean asking his secretary for time on his calendar rather than a real-time dialog via email or IM?  I do.)

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