Why Companies Overpromise And Underdeliver On Customer Experience: One Hypothesis

Moira Dorsey

Last weekend I used my AAdvantage miles on a plane ticket for my husband. I went to AA.com, it was easy to trade off options based on number of miles used and flight schedule. When I went to book, my name and AAdvantage number were pre-populated into the form. I changed the name and number to his but got an error: “The AAdvantage number for Passenger 1 does not match the name entered. Please verify and re-enter.”*

Problem #1: A design problem stopped me from booking the ticket myself on the site.

Problem #2: An unhelpful error message didn’t help me fix the first problem.

Without any other choice, I called for help. Before I could reach a person – or even a menu, I got this message:

“With the refreshed and redesigned AA.com it’s easy to book, explore, and plan all of your travel needs in one place because we’ve organized things better, made it more intuitive, smarter, simpler, cleaner, all to help bring your next trip closer to reality. This is the first step of more exciting changes we have planned for AA.com. Whether you are looking or booking, a better travel experience awaits with the new, easy to navigate AA.com. Book a trip now and see for yourself. To expedite your call, please have your Advantage number ready.”

Problem #3: I had to spend a full minute hearing about how American’s new site could help me — the same site that had already failed to help me.

When I finally reached an agent and explained my problem, she said: “Well, you just had to think on it harder. You needed to leave the Advantage number blank.”

Problem #4: The agent told me I’m stupid.  Who likes that?

Armed with new instructions, I tried to book the ticket. But instead I got an error message saying the site had timed out.

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Customer Experience Outlook For 2011: Lopsided Battle For Differentiation

Harley Manning

We recently published the results of our annual survey of the members of our customer experience professionals peer research group. The group is interesting in that they’re pros: They all work to improve the customer experience delivered by their organizations.

This year, their responses are encouraging — but also very sobering.

Here are some of the encouraging data points. A whopping 86% said that customer experience is a top strategic priority at their company. More than half work at companies that already have a single set of customer experience metrics in place across the entire company, and another 20% said that their firms are considering this move. What’s more, almost as many respondents said that their companies have a voice of the customer program in place, and another 29% said that their firms are actively considering a voice of the customer (VoC) program.

At this point I’m thinking, “Fantastic! Their companies care about customer experience, and they are implementing mission-critical programs that will help them succeed!”

Plus they’re coming from a good place. When we asked our panelists how they’d describe their executive team’s goal for customer experience, 63% of respondents said that their senior executives want to be the best in their industry, while another 13% said that their execs shoot higher and want to be seen as a customer experience leader across all industries.

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Customer Experience Defined

Harley Manning

If you’re reading this post, you’re someone who cares about customer experience. You might even be one of the professionals who works in the field of customer experience full-time.

So I’m going to go out on a limb here and guess that you occasionally get the question, “What is ‘customer experience?’”

Now maybe when you’re asked that question, it isn’t phrased so directly (or politely). For example, I get asked, “Isn’t customer experience just marketing?” And, “How is customer experience different from customer service?” But the bottom line is that people are looking for a definition that’s crisp, useful, and distinct from the definitions of other things that companies do. They are right and reasonable to ask for this — but collectively those of us who work to improve customer experience have failed to answer them.

I mean no offense to the many people out there who have tried to define “customer experience.” I’ve read many of the attempts that are out there, and the ones I’ve seen tend to be longer and more convoluted than necessary.

Not that customer experience is an easy concept to define. The customer experience team at Forrester has been debating the definition of customer experience for a while now, and it took us until recently to reach consensus. We now define customer experience as:

“How customers perceive their interactions with your company.”

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Strategy Should Guide Learning From Voice Of The Customer Programs

Paul Hagen

Listening to customers through a well-established voice of the customer (VOC) program is critical. However, without a customer experience strategy rooted in a company strategy, it’s easy for a firm to lose track of its core value proposition to key target customers.

Don Norman tells a wonderful story about a conversation he had with Southwest Airlines chairman Herbert Kelleher that speaks directly to my latest report on customer experience strategy:

"Use Southwest Airlines as the model. When customers demanded reserved seating, inter-line baggage transfer, and food service, they refused (and only now, are reluctantly providing semi-reserved seating). Why? It is not because they ignore their customers. On the contrary, it is because they understood that their customers had a much more critical need. Southwest realized that what the customers really wanted was low fares and on-time service, and these other things would have interfered with those goals.

 I once had a lively, entertaining dinner with Herbert Kelleher, Chairman and co-founder of Southwest Airlines. I asked him why they had ignored the requests of their customers. Herb looked me up and down sternly, sighed, took another sip of his drink, uttered a few obscenities, and patiently explained. His marketing people asked the wrong question. They should have asked, would you pay $100 more for inter-airline baggage transfers? $50 more for reserved seating? No, the customers wouldn't have. They valued on-time, low-cost flights, and that is what Southwest delivers.

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The Right Customer Experience Strategy

Paul Hagen

What is the right customer experience strategy? My new report on customer experience strategy investigates this question. To give it some context, consider customers’ expectations of Costco versus Apple. Costco customers expect barebones service in return for low prices, while Apple customers expect innovative products at relatively high prices. These firms deliver radically different experiences, yet they both delight customers. Should your company be like Costco or like Apple or something else entirely?

The report uses Michael Porter’s three generic company strategies as a starting point to understand core value propositions that should drive the right customer experience strategy.

In researching the report, Adaptive Path’s VP of Creative Services Brandon Schauer was invaluable in pushing my thinking toward using Michael Porter’s generic strategies as a starting point. He had a couple of powerful insights that I think are worth mentioning:

  1. “For customer experience leaders, the first big hurdle is to discern the organization’s business strategy.” I’ve talked with many firms in the process of changing their company strategy, which creates a moving target that is both a challenge and an opportunity for customer experience leaders.
     
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Returning To Forrester

Paul Hagen

I’m delighted to return to Forrester and its Customer Experience team after eight years of running my own business and technology strategy consulting practice.  

I’m returning to the same group in which I worked before with Harley Manning and his team. It was in that group that I helped develop and implement Forrester’s Web Site Usability methodology, wrote reports like “Must Search Stink?” and “Smart Personalization,” promoted the use of customer data intelligence and CRM systems to drive proactive interactions that I called “Tier Zero Customer Service,” and reported on the uses of early community-based tools for customer service (today it's "social CRM").

A frequent question that I've been asked in the scores of phone calls over the past several weeks since my return has been: What are you going to cover? The short term answer is primarily four topic areas: 

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