But investing in customer experience is tricky because it’s often seen as an abstract thing with little tangible ROI. Companies like USAA, a US insurance company with a strategic focus on customer experience, have spent years re-shaping their entire organizations to think from the outside-in, focusing on the end customer. USAA did this because they believed it was the right thing to do, not because of some compelling business case.
As far as I'm concerned, the best CX presentation by a guest speaker was given this morning by a former CIO, Paul Heller. Paul is now Managing Director of the Retail Investor Group at Vanguard. While his session was energetic and full of humor, it also conveyed his message about the business of delighting clients very clearly. Paul suggests we all need to get in touch with the why, how and who of our business:
Why are customers doing what they do? To answer this question we really need to get to know the reasons for customers doing business with us. Vanguard took the time to ask their customers why they invest and they discovered people want to have more time to do the things they enjoy, they want less stress and to avoid being bored. Trust me, it's way funnier the way Paul describes it.
Where customer experience and analytics meet, in real time
For a while now, I’ve been using Hailo as a European poster child for innovation in the context of big data analytics. Due to the level of interest generated by this example, and the number of questions I’ve received along the way about Hailo, its technology and business model, etc., I decided to put together this blog post rather than write loads of separate emails.
Ironically, I’ve not actually been able to use Hailo myself (much as I would like to), as I have neither an iOS or Android-based smartphone. I have, however, met lots of people who’re using Hailo as customers, and I’ve also spoken to taxi drivers about it. I have yet to meet anybody who isn’t a fan.
For those of you who don’t know Hailo, it’s an app that allows you to hail a registered cab from your smartphone; as it was started in London, it’s often also called “the black cab app.” With the company founders being three London cabbies (black cab drivers), the entire service has been uniquely focused around the needs of the two main participants in a taxi ride: the customer and the driver.
Marketing and customer experience are two sides of the same coin: Marketers are responsible for communicating the brand promise, and customer experience professionals are responsible for making sure that the promise is kept.
It’s that synergy between marketing and CX that led us to invite Jamie Moldafsky, CMO at Wells Fargo, to speak at Forrester’s Forum for Customer Experience Professionals in New York on the morning of June 25. As a run-up to our event, Jamie took the time to answer a few questions about why Wells Fargo cares about customer experience and how its approach to CX has evolved over the years.
Q: When did your company first begin focusing on customer experience? Why?
Treating customers with courtesy and respect has been a core value at Wells Fargo for more than 160 years. Back in 1888, its agents were given the following instructions: “Proper respect must be shown to all — let them be men, women, or children, rich or poor, white or black—it must not be forgotten that the Company is dependent on these same people for its business.”
There is a staggering amount of customer experience work going on in the healthcare industry these days. From providers (the docs), to pharma companies and payers (health insurers), everyone is trying to figure out what to do and how to do it.
It may come as a surprise to some to hear that technology teams play an important role in the implementation of an effective customer experience strategy, but that's the conclusion from our latest research.
YouTube finally announced this week that it would allow channels to charge monthly fees to access content on YouTube. Some have predicted that YouTube’s subscription model would undercut its ad model in an echo of the infamous pay-wall problem that has bedeviled online newspapers as they shifted from ad-supported to paid. Others have suggested that this shows that YouTube is up against an advertising wall of its own making — advertisers will only pay so much to advertise against this amateur and semi-pro content (and to be fair, I am in this camp even though I don’t think this fact is dire). And still others gleefully wait to watch as YouTube learns how hard it is to get people to pay for things online.
In fact, all three of these things are minor asides in YouTube’s decision-making, as I see it. Instead of reacting to these and other constraints, YouTube is proacting on imminent opportunity. YouTube is basically making a grab for more of everything that matters:
More business model options. TV is both ad-supported and subscription-supported, and that works just fine. It gives companies like HBO the creative flexibility to generate content that advertisers may not be ready for, and it gives companies like Scripps the freedom to promise more home-focused entertainment that home-focused advertisers care about. That flexibility is crucial to the ongoing success of those companies, and it will be crucial to YouTube as well. Although in YouTube’s case, I would be surprised if the revenue balance in the one- to two-year time frame exceeded 10% or 15% subscription to advertising.
Yesterday afternoon, I moderated a panel on the role the IT department can play in the business's employee engagement efforts. Any follower of this blog knows that this is a topic I've talked about a lot lately (see previous posts here and here) because hiring, developing and retaining talented and productive employees is critical in the Age of the Customer. The panelists were Ed Flahive, Vice President Global Learning & Development at State Street, Mike Peterson, CIO and Vice President at CHG Healthcare Services, and Ray Velez, Chief Technology Officer at Razorfish. As you've probably observed, this was an eclectic group, representing human resources, IT and client delivery groups respectively. Well, that was on purpose. This topic requires perspectives from both business leaders and technologists. Having had 24 hours to think about that discussion, I thought I would share a few a-ha's I had from my conversation with these gentlemen:
I’m excited to finally be able to talk publicly about our CX Forum East in New York at the end of June. The theme this year is “Boost Your Customer Experience To The Next Level.” We picked that theme because ever since last fall when we published Outside In, our book about customer experience, people have been asking us to show them how to either get started on the path to CX maturity or accelerate their progress. This forum is all about helping people create customized roadmaps for their organizations.
Megan Burns will kick off the first day of the event with a speech about “The Path To Customer Experience Maturity.” The speech will debut new research about companies that successfully adopted new competencies and changed employee behavior. Attendees will be the first ones to get copies of Megan’s new report that details her findings – I’m editing the report and I am really jazzed about what she’d discovering.
Kerry Bodine, my co-author for Outside In, will kick off the second day of the event with a speech about customer experience innovation. Her speech will also be based on new research. She’ll detail her findings into what distinguishes incremental CX improvements from true innovations. She’ll also describe how companies can create innovation engines within their organizations – the “road map” for the advanced class. For those of you who want to leap ahead of the pack and truly differentiate through customer experience, this is a “must see” presentation.
As an avid personal investor I’m often appalled by cable shows that report on the markets as if they were non-stop sporting events. Seriously, how many people care how the NASDAQ or the Dow are doing on any given minute of any given day? But apparently there are enough day traders out there that noon reports from the floor of the New York Stock Exchange are as compelling as half-time reports during the NFL playoffs.
I have to confess that there is one piece of financial analysis that I do look forward to – though in my defense, this is an annual occurrence and not an hourly update. The analysis comes from Jon Picoult, a gentleman who runs Watermark Consulting.
For a while now Jon has been taking the data from Forrester’s Customer Experience Index (CXi) and using it to do a thought experiment. In this experiment he looks at what would have happened if, back when we first published the CXi, an investor had taken two equal buckets of money and created two U.S. stock portfolios. The first portfolio would have consisted of the top 10 publicly traded companies in our index (the customer experience leaders). The second portfolio would have consisted of the bottom 10 publicly traded companies in the index (the customer experience laggards).
In Jon’s model the investor would have held each portfolio for a year, then sold them both and taken his profits (or losses). He would have then used the proceeds to purchase the new year’s leaders and the new year’s laggards, continuing this cycle of selling and buying for all six years that the CXi has been in existence.
Intriguing, right? Even those of us who believe in the business value of customer experience (or in my case can prove it through research) don’t normally look at the impact on stock performance.