A few months ago, I had the pleasure of seeing Tom Feeney speak about customer experience at an event in Boston. I was fascinated by his story of how Safelite went from a company that put shareholders first to one that put employees first. The reasoning behind this move: Highly engaged employees will deliver a great experience, which will improve business performance and ultimately make everyone happy (including shareholders).
As it turns out, that reasoning is correct. From 2006 to 2012, Safelite’s sales grew by high double digits, and its profits grew by triple digits. (I’ll let Tom reveal the actual numbers when he keynotes on the second day of Forrester’s Forum For Customer Experience Professionals West in Los Angeles on October 9 and 10).
Despite these impressive results, Safelite is now moving into a new phase of its transformation journey. It’s that multipart voyage toward customer experience maturity that makes Tom’s story a perfect match for our event theme, “Boost Your Customer Experience To The Next Level.”
In the run-up to the event, we asked Tom to answer a few questions about what Safelite is doing and how it’s doing it. His answers appear below. I hope you enjoy them, and I also hope to see you in Los Angeles!
Q. When did your company first begin focusing on customer experience? Why?
Developers And Their Business Counterparts Are Caught In A Trap
They swim in game-changing new technologies that can access more than a billion hyperconnected customers, but they struggle to design and develop applications that delight customers and dazzle shareholders with annuity-like streams of revenue. The challenge isn’t application development; app developers can ingest and use new technologies as fast as they come. The challenge is that developers are stuck in a design paradigm that reduces app design to making functionality and content decisions based on a few defined customer personas or segments.
Personas Are Sorely Insufficient
How could there be anything wrong with this conventional design paradigm? Functionality? Check. Content? Check. Customer personas? Ah — herein lies the problem. These aggregate representations of your customers can prove valuable when designing apps and are supposedly the state of the art when it comes to customer experience and app design, but personas are blind to the needs of the individual user. Personas were fine in 1999 and maybe even in 2009 — but no longer, because we live in a world of 7 billion “me”s. Customers increasingly expect and deserve to a have a personal relationship with the hundreds of brands in their lives. Companies that increasingly ratchet up individual experience will succeed. Those that don’t will increasingly become strangers to their customers.
To better compete in the US luxury automotive landscape, leadership at Audi of America had focused on improving three fundamental areas: the brand, the products, and the dealership. And they had made huge progress.
But according to Jeri Ward, director of customer experience at Audi of America, “The customer experience had not kept pace.”
Troubling data points made that clear: Customer loyalty was at 40%, and sales satisfaction was in 26th place out of 31 brands. But what really drove the problem home was this quote from an Audi customer: “The whole time the salesman spoke with me, he was eating Skittles out of a bag in front of me.”
Just imagine that you’re trying to buy a $60,000 to $90,000 car from someone who can’t be bothered to stop cramming junk food into his mouth. Would that work for you? I didn’t think so.
In this excerpt from Jeri’s speech at Forrester’s Forum For Customer Experience Professionals East, she describes some of the tangible actions Audi took to solve this problem by creating a customer-centric culture that inspires passion for the Audi experience. The results the firm’s efforts produced are a testimony to its success: In just three years, sales satisfaction went from 26th place to 12th place, and the company has experienced 30 months of record sales.
As always, we welcome your comments! And if you're interested in seeing more great speakers like Jeri, check out our upcoming Forum For Customer Experience Professionals in Los Angeles in October and London in November.
Like CX Forum East, the theme of our Los Angeles event is “Boost Your Customer Experience To The Next Level.” We picked that theme to showcase examples of companies that improved the customer experience they provide, whether they were just starting out, already leading their industry, or somewhere in between.
To kick off the event, Forrester Vice President and Principal Analyst Megan Burns will describe the four-step path to customer experience maturity that she details in her new report. The fascinating thing about this study is that when we started it, we thought we’d uncover several paths that companies have followed to get to success. But what we found instead is that there is only one path that’s proven to work, and many paths that lead to dead ends and failure.
In addition to speeches and track sessions by Forrester analysts like Megan and my co-author Kerry Bodine, our speaker lineup features senior leaders from companies that recently made major improvements to their customer experience. These executives include the president of Days Inn Worldwide, the CMO and VP of CRM at Sears, the chief customer officer at Eli Lilly, and the president and CEO of Safelite Autoglass.
Like it or not, the success of your customer experience initiatives depends on business technology.
That’s because the quality of customer interactions with your brand results from a complex system of interdependent people, processes, policies, and technology that we call the “customer experience ecosystem.” And just like a natural ecosystem, when your CX ecosystem gets out of balance, every part of it suffers — especially your customers.
An increasing number of CIOs, enterprise architects, and application developers get this. That surprises many of the marketers and other business people I talk to on a regular basis. But it shouldn’t: Business technology leaders are ideally placed to see the connective technology tissue needed to create a standout omnichannel customer experience.
To help shed insight into the complex interplay of customer experience and business technology, I recently sat down with Stephen Powers, Forrester vice president and research director serving application development and delivery professionals, to record a podcast. You can hear it in its entirety below (episode 1) or choose topic-sized cuts (episodes 2, 3, and 4).
Attendees at Forrester’s Forum For Customer Experience Professionals East in New York saw some great speakers, including Jamie Moldafsky, chief marketing officer at Wells Fargo, John Vanderslice, the global head of luxury and lifestyle brands at Hilton, and Graham Atkinson, the chief marketing officer and chief customer officer at Walgreen.
Interestingly, the speaker with the highest audience rating was Paul Heller, managing director of the retail investor group at Vanguard. Paul spoke about how the firm creates customer loyalty by providing low-cost mutual funds that deliver long-term outperformance, combined with quality service and investor advocacy. At the center of this virtuous cycle: highly engaged employees.
How does Vanguard manage to create a culture that engages employees around providing a great client experience? In this video excerpt of Paul’s speech, he shares the secret: start with “why.”
Who doesn’t know Walgreens? It’s an iconic American brand that’s been around for over 100 years.
But at Forrester’s Forum for Customer Experience Professionals in New York on June 26, Graham Atkinson showed us a Walgreens that’s totally different from the one we’ve come to know. Graham is the Chief Marketing and Customer Experience Officer at Walgreens, and he’s leading the charge to transform the company from one that traditionally differentiated based on location, location, location to one that differentiates based on experience, experience, experience.
In this video excerpt from his speech, he describes three initiatives that are currently underway:
Delivering the well experience.
Transforming the community pharmacy
Taking the Walgreens brand to the world
As always, we welcome your comments! And if you're interested in seeing more great speakers like Graham, check out our upcoming Customer Experience Forums in Los Angeles in October and London in November.
Those are the fundamental questions answered for Wells Fargo by its CMO, Jamie Moldafsky, at Forrester’s Forum for Customer Experience Professionals in New York on June 25.
Going into the event, I didn’t envy Jamie’s task. The four large banks that dominate the U.S. retail banking industry don’t have stellar reputations for delivering a great customer experience. Feedback from their own customers bears this out: In Forrester’s Customer Experience Index, Bank of America, Wells Fargo, Citibank, and Chase received scores ranging from 60 to 69 on a 100 point scale. In contrast, credit unions have an average score of 82, and regional banks like SunTrust Bank, PNC, and TD Bank have scores in the high 70s.
But to be fair, when you have 70 million customers spread across more than 90 businesses – as Wells Fargo does – delighting everyone might just be mission impossible. And yet that’s exactly what Jamie and her team are trying to do on their journey to “get to wow.”
In the following video snippet of her speech, Jamie explains why customer experience is important to Wells, what she’s trying to accomplish, and the factors that make her mission both challenging and critically important.
As always, we welcome your comments! And if you're interested in seeing more great speakers like Jamie, check out our upcoming Customer Experience Forums in Los Angeles in October and London in November.
We recently attended Amdocs' customer event in Singapore. Amdocs is gradually adjusting its strategy to reflect one of the most fundamental changes in the ICT industry today: Increasingly, business line managers, think the marketing or sales officer, are the ones influencing sourcing decisions. Traditional decision-makers, CTOs and CIOs, are no longer the sole ICT decision-makers. Amdocs is addressing this shift by:
Strengthening its customer experience portfolio.Successful telcos will try to regain lost relevance through improved customer experience. Marketing, portfolio product development, and sales are therefore growing in importance for telcos. Amdocs’ integrated customer experience offering, CES 9, provides telcos with a multichannel experience; proactive care; and self-service tools.
Betting big on big data/analytics.Amdocs is leveraging big data/analytics to provide real-time, predictive, and prescriptive insights to telcos about their customers’ behaviour. Communications-industry-specific converged charging and billing solutions as well as other catalogue solutions give Amdocs the opportunity to provide more value to telcos than some of the other players.
Way back in January I spoke at the Luxury FirstLook conference put on by Luxury Daily in New York (a terrific event, by the way). Several of the other speakers intrigued me. One, in particular, gave a speech that I immediately wanted to bring to attendees at Forrester's Forum For Customer Experience Professionals East: John T. A. Vanderslice, the global head of luxury and lifestyle brands at Hilton Worldwide (those brands being Waldorf Astoria and Conrad).
Here’s one of many things John said that struck me: "Today's luxury buyers make investments of passion." That’s a far cry from the way customer experience (CX) practitioners usually talk about emotional engagement. But it struck me as an authentic way to describe super-affluent buyers who’ll pay to reenact the life of a Roman gladiator or to take a trek through the wilds of Nepal.
I ambushed John on his way out the door and recruited him to speak at our forum, which he did earlier this week. He was great. And he was also gracious enough to answer some questions that we posed to him, which we’re now happy to share with you.
1. When did your company first begin focusing on customer experience? Why?