My most popular blog of 2012 wasn’t written by me … but I guess you might have expected this if you’ve already read a few. That blog's author, an end-user (or is that a customer of an internal IT organization), now returns to look at the IT service desk through a customer and customer experience lens. I’ll let them continue in their own words …
So how is your customer experience?
It’s never been more important to build strong customer relationships (regardless of what type of service you're offering). Long gone are the days when the customer purchasing path was straight-forward, and when the only route of post-sales contact was the phone. In 2013, we need to be proactive and embrace consumer-driven change, harnessing the power of new technologies as well as improving older methods of contact.
Whether your interactions with customers are face-to-face, via the internet including social media, or over the phone; and whether they involve physical or virtual products; they now need to generate a good “experience” for customers. In the age of the “empowered customer” failure to manage these “experiences” can lead to missed opportunities and/or customer loss. And not just with the affected customer(s).
So what is “customer experience” and could it apply to IT service desks?
Forrester’s definition is simple: “How customers perceive their interactions with your company.” So for an IT service desk, could it be: “How end users perceive their interactions with your service desk”? And if so, how do you deliver this increasingly critical “customer experience”?
The 2013 CXi is based on research we did in Q4 2012. It reflects how consumers perceived their experiences with 154 brands across 14 industries. If you’re not familiar with the methodology, or just want a refresher, check out “Executive Q&A: Forrester’s Customer Experience Index, 2013.” We put all the nitty-gritty details in there.
But what about the big picture? Of course, there are winners and losers (we name them in the report.) There is a tale of two banks — one whose score jumped up by 11 points versus last year, and another whose score plummeted by 24 points.
Through it all, though, one common theme leapt out:
In 2013, it’s all about value.
Many of the top brands this year, including high-scorer Marshalls, deliver solid customer experience at a manageable price. We saw this dynamic in the hotel space, where Marriott’s Courtyard brand beat out all other hotel brands. And we saw it in the airline industry, where perennial favorites Southwest Airlines and JetBlue Airways once again swept the competition with their combination of great experience at a great price.
I only just recently started watching Mad Men — a shock to many of my marketing peers and to regular folks who now think I’ve been living under a rock for the past five-plus years. I’ll save my thoughts on the show for another time, but what strikes me at least once during each episode is how much everything (tactics) and nothing (strategy) have changed. Similar fundamental challenges weigh on Sterling Cooper’s clients’ minds and on our CMO clients’ minds today: How do we connect with our consumers in a way that differentiates us from the competition? While Don Draper was limited to print and TV, thanks to digital platforms and tools, today’s CMOs have an almost-infinite number of options with which to build relationships with consumers.
2013 is the year that digital takes on a much more significant role in marketing and business strategies at business-to-consumer (B2C) organizations, and CMOs will be responsible for shepherding the change. 2013 is the year that CMOs will leverage digital tools to drive innovation of new compelling brand experiences — not as add-ons or enhancements but as integral elements of the brand’s messages, actions, and products that will differentiate your offering.
B2C CMOs, your 2013 resolutions should be to:
Embrace digital disruption. Digital disruption has remarkable strength. It's able to bulldoze traditional sources of competitive advantage faster, with greater power, at less cost than any force that came before it — and no business is immune. CMOs must make a strategic commitment to innovation and stop thinking about digital as another media channel. Digital is everywhere and should elevate marketing and business priorities for consumer benefit.
How do you choose the right customer service solution for your needs? It’s always best to take a systematic approach: (1) benchmark your current operations using our Assessment Framework to pinpoint areas for opportunity and (2) pragmatically investigate options to source your missing capabilities. Options range from repurposing technologies used elsewhere in your company, to outsourcing, to purchasing suites or vendor point solutions. I recommend using the following process to step through the choices:
Step 1: See if your company is using similar technologies that you can leverage. Web self-service, mobile, social, email, and chat solutions, for example, are often deployed by sales and marketing. If you choose to leverage existing technologies, make sure that they can scale and operate at the level of performance and reliability to support customer service operations. Also make sure that the experience that the customer receives when interacting with these technologies is consistent across functional organizations.
Step 2: Consider outsourcing. If there are no existing technologies that you can leverage, consider outsourcing this entire capability, or perhaps a portion or all of your customer service operations, to a third-party organization. In a recent Forrester survey, we found that 10% have already outsourced some or all of their operations or are very interested in doing so. Outsourcing can help reduce cost of operations, but can also improve the quality of services delivered and allow you to focus on core business activities that are mission-critical to your company.
Recently I was on a panel about the impact of cultural change on customer experience. My fellow panelists included Meltem Uysaler, a senior vice president of customer experience for Citi, and Patricia John, the customer experience director for Europcar UK (a car rental agency).
Right at the end of the session, Patricia responded to an audience question by saying that Europcar focused on creating a customer-centric culture because they can’t script every interaction. Therefore, employees need to be able to make the right judgment calls on their own when dealing with customers (or anything having to do with customers, which includes virtually everything a company does).
Patricia John is right. At Forrester, we see this dynamic time and again through our research. For example, every time I see USAA’s Wayne Peacock speak, he always uses the phrase, “We do the right thing because it’s the right thing to do.” That’s extremely credible coming from Wayne: He’s the EVP of Member Experience at USAA, which is the number one bank, the number one credit card provider, and the number one insurance provider in our Customer Experience Index.
You, too, probably see this dynamic because it plays out in the news every day. Just compare the decision made by a Southwest Airlines pilot to the decisions made by some United Airlines employees.
I was both encouraged and perplexed by an article in The Wall Street Journal that described the internal debate at Bank of America over how to grow revenue. One side of the debate wants to charge new fees for basic services like checking accounts. And who do they want to charge? Their unprofitable customers who “typically have less than $50,000 in annual household income.” Those customers do little business with the bank, and Bank of America reportedly loses a couple of hundred dollars a year on them.
The other side of the debate wants to raise revenues by getting these unprofitable customers to buy more financial products from the bank — for example, get a credit card or buy a CD or take out a mortgage. If that happened, the problematic customers would generate enough revenue to become a money-making proposition for Bank of America.
If I were picking the winner of this debate, the decision would be easy. A growth plan that depends on extracting ever-increasing fee revenue from the very people who can least afford to pay it – for services that were formerly free – doesn’t seem like a growth plan at all. But getting a bigger share of those same customers’ wallets by selling them products that they’re going to buy from someone is a strategy that’s already working today for a bank that I’ll talk about in a minute.
The real question in this debate should be, how can Bank of America get its unprofitable customers to do more business with it? The answer: Provide a vastly improved customer experience — toe-dipping will not get the job done.
Companies are grappling to maintain their traditional sources of competitive advantage in the age of the customer — a world where empowered consumers, commoditized products, and intense competition stretch organizational capabilities to their limits. Enter the customer-obsessed CMO who can transcend the operational status quo and lead a companywide journey to establish new sources of competitive advantage. In my presentation at Forrester’s Outside In: A Forum For Customer Experience Professionals EMEA in London next week (November 6th to 7th), I will be explaining how CMOs can positively change the corporate culture around customer obsession. I will also be leading the track “Why We Need To Build A Customer-Obsessed Corporate Culture,” which takes a closer look at the challenges involved.
In preparation for the event, I caught up with one of our industry speakers from this track, Veronique Tordoff, UK market customer experience leader, Philips Electronics, to talk about how Philips Electronics is dealing with these challenges. Check out a preview of Veronique’s session in the below Q&A, or join me in London to hear the full story.
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.
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.
Customer experience horror stories are not quite as inevitable as death and taxes but they are close cousins and we all have a large back catalogue of screw-ups to rant about operatically. That crappy cheese sandwich, the misleading advice about product features or being ushered into an avoidable gargantuan queue by a staff drone. Some of my own frustration exotica include annoyances like harmoniums couriered from India and only good for firewood (or modern art) on arrival in Edinburgh*. Yes, the world is a stage but some brands can look like The Three Stooges on it.