Q&A With David Lessing, Chief Operating Officer, Wealth Management, US, Morgan Stanley Smith Barney

Moira Dorsey

I had a chance to catch up with David Lessing, COO of wealth management at Morgan Stanley Smith Barney, in advance of his keynote next month at the Customer Experience Forum. I spoke with David about what it means to have an outside-in perspective on customer experience at Morgan Stanley Smith Barney. Here are some of his thoughts.

Q: How would you describe the experience that you want Morgan Stanley Smith Barney customers to have?

A: The most significant driver of a client’s experience with Morgan Stanley Smith Barney is that client’s financial advisor and service team. We are focused on ensuring that our firm offers clients the most talented financial advisors with access to the best tools and investment insights in the industry. Although each client has somewhat different expectations of what they’d like to receive from us, we are committed to both excellent service and deploying our expertise to help drive investment results in line with the client’s goals, something we define as “investment excellence.”

Q: How does Morgan Stanley Smith Barney’s customer experience provide a differentiated experience from direct competitors?

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Market Research Lessons Learned From Behavioral Economics

Gina Fleming

Recently, I attended the MSI Workshop on behavioral economics at the Harvard Innovation Lab. The presenters included an innovative crew: a number of academics from Harvard Business School and Dan Ariely , author of Predictably Irrational. They gave many examples of how consumers aren’t always rational and don’t always know why they do what they do. This is troubling for market researchers, since it’s our job to understand what drives consumers so that companies can effectively optimize what works and what doesn’t. Let’s look at a couple of examples of how principles of behavioral economics can wreak havoc on market researchers:

  • The path of least resistance (AKA the default). Ever wonder why you are enrolled in your company’s 401(k)? Why you take generic over brand-name prescriptions? Why you’re an organ donor? Is it because of your financial sense or your values — or could it be because it was simply the default (and hence the simplest) option? In fact, multiple experiments in behavioral economics suggest just that: People tend to go with the default option but don’t realize they do.
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ePrivacy Legislation Gets (Marginally) Clearer

Martin Gill

 

The  May 26th UK deadline for compliance to the EU ePrivacy Directive has come and gone.

The result? Confusion among eBusiness executives. Some action. Some sites are informing us of what they are doing. Many aren’t. And a last minute refresh of compliance guidance from the Information Commissioners Office.

The ICO has been steering UK organizations toward compliance for a while, though this steering has been frustratingly vague. But to give credit where credit is due, it released a last-minute guide, which is actually very helpful. Rather than reproduce the content here, I encourage you to read this blog post and download the PDF linked on the page.

The ICO has been taking an admirably pragmatic approach to compliance. The latest document sets out definitions of "implied consent," "session," and "persistent" cookies (among other things) as well as delivering some useful tips on how to inform consumers, even looking at the style of language needed.  It's a real shame for UK sites that this guidance was issued at literally the eleventh hour. But as many UK sites have still yet to take any action, this guidance will still be helpful.

The situation in the rest of Europe is also beginning to become clearer.

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The Business Impact Of An Outside-In Perspective At Sprint

Harley Manning

Sometimes a CEO takes the reins at a company that’s in such great shape, I can’t help thinking, “Wow, it must be great to be that guy!”

And then there’s Dan Hesse, CEO at Sprint. Given the shape that Sprint was in when he got the top job in 2008, I was thinking more along the lines of, “Wow, he must be working off a karmic burden!” That’s because back then, the company had the lowest customer satisfaction ratings of any of the major wireless carriers. As a result, it was bleeding cash from high customer care costs and lost subscribers.

Faced with this mess, Dan decided to focus on systematically improving the quality of Sprint’s customer experience as a way of improving Sprint’s bottom line. We were so impressed by his efforts that we included a case study about Dan in Chapter 2 of our upcoming book, Outside In: The Power Of Putting Customers At The Center Of Your Business.

The book won’t be out until August 28th, but you don’t have to wait until then to get a sense of how effective Dan’s efforts have been. That’s because on May 15th, Hesse gave an address at Sprint’s shareholder meeting, and he had this news:

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Rx: Four Days Of Inspiration At The Cleveland Clinic Patient Experience Summit

Harley Manning

Earlier this week, I had the privilege of speaking at the Patient Experience Empathy And Innovation Summit. The event was sponsored by the Cleveland Clinic Office of Patient Experience, which is led by Dr. Jim Merlino, the chief experience officer at the Clinic.

To be candid, I originally agreed to give the speech as a favor to Jim, whose inspirational story kicks off the chapter on chief customer officers in our upcoming book. I didn’t know what to expect of the event and somehow imagined that when I joined hundreds of doctors, nurses, and other caregivers in a big auditorium, I’d get trapped inside an episode of House — and I’d be the only one who didn’t know what the other cast members were talking about.

Was I ever wrong. The event was an extraordinary experience from beginning to end, and the content was accessible to anyone who works to improve customer experience, regardless of industry. As someone who helps put on Forrester's Customer Experience Forum, I even got a little envious.

A few things leapt out at me from the sessions I attended:

  • Executive-level commitment to customer experience as a business strategy. Dr. Delos “Toby” Cosgrove, CEO of Cleveland Clinic, and Dr. Kurt Newman, CEO of Children’s National Medical Center, appeared together on a panel. It was clear from their answers to moderator and audience questions that both of them connect the dots between high-quality patient experience and the bottom line.
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The Data Digest: The Power Of Video

Reineke Reitsma

Last Sunday my washing machine broke down. And for a family with young children, a washing machine is right up there with shelter and food in Maslow's hierarchy of needs.

As the shops are closed on Sundays in the Netherlands, I turned to the Internet to look for a new one. And because I wasn't very satisfied with my old brand, I was looking for another with similar features but (hopefully) better quality. Within minutes I was completely lost in washing cycles, special programs, and all the other fancy features washing machines have nowadays. I clicked picture after picture, trying to enlarge to see the controls, with little success. But I was saved by video. I came across a site that shows a video of each of the products they sell — how they work, what they do, the control panel, explaining what the fancy features mean, and so on. This information, together with the price, helped me decide which washing machine to buy (at that site, of course).

However, at this moment video support isn't the most obvious choice for customers. Our European Technographics® Retail, Customer Experience, And Travel Online Survey, Q3 2011, shows that only 10% of Europeans have watched a video from a retailer in the past three months in general. And only 8% have watched an online video for support purposes as the following graphics shows: 

 

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Innovative Methodology: Incorporating Location Analytics Into Your Research

Roxana Strohmenger

 

This shouldn’t come as a surprise, but I love talking about cool, emerging, and innovative research methodologies. Over the past two years, I have been focusing a lot of my time on researching these techniques and have written several blog posts on this topic. For example, how prediction markets can help determine which concepts will succeed or fail in the marketplace. And how 2012 is the year of mobile, and market insights (MI) professionals need to leverage this channel.

In continuing with this theme, I am launching a blog series focused exclusively on highlighting emerging methodologies that MI professionals should take notice of and examine whether to incorporate into their research tool kit. I will highlight any cool research techniques I come across, as well as any vendors that are building interesting technology tools for market research purposes. 

For this inaugural post, I will highlight location analytics. Essentially, market insights professionals can use a consumer’s location information that is transmitted by their mobile phone to understand what they are doing in their daily lives. For example, you can understand where your target customer is shopping, how she got there, and which competitor stores she drove past. The consumers being tracked do not have to “check in” every place they go to gather this information. Instead, all of the location data is passively collected after a consumer opts in.

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Apple's Coming Plan To Take Over The TV Business

James McQuivey

Last week, we released our newest report about the future of TV and argued in it and the accompanying blog post that the battle for the TV is not really about TV. It’s about the future of the platform giants like Apple, Google, and Microsoft that want to add the TV to their platform ambitions. Surprising to some was our claim that Microsoft was in the lead in the US TV platform battle with its base of millions of Xbox 360 owners generating more online video views on the TV screen than viewers of any other device. Many have challenged this assertion, putting the data about current use aside and asking a good question:

Won’t Apple easily walk away with the TV business once it releases its next big thing, presumably a TV?

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Selling Luxury Goods To Online Shoppers In China

Zia Daniell Wigder

We just published a report on the online luxury shopper in China, Selling Luxury Goods To Online Shoppers In China. The report looks at the demographic of the online luxury shopper in China and the nature of the online luxury marketplace in China — it also provides advice for brands looking to succeed in this rapidly evolving market.

In this report we note that:

Like all categories online in China, luxury is growing rapidly. According to the World Luxury Association, China is currently the second largest luxury market in the world — it is already clear that part of the demand is coming from online shoppers. In the past few years, a number of the world’s most elite brands have gone online in China. Going online now with a strategic approach will be key to securing long-term market share. 

There are many types of luxury shoppers in China. The online luxury shopper in China spans multiple income brackets and age ranges and lives in both tier 1 and tier 2 cities. Success in this space will mean being considerate of what each of these shoppers is looking for. 

The needs of the luxury shoppers with the most purchasing power are not being met.While a handful of luxury brands have gone live in China with localized sites, today’s online luxury experience is rarely compelling. Additionally, domestic online retailers primarily target online shoppers looking for a deal, with few websites offering sophisticated interfaces. In this report, we look at what is and isn’t being done and what changes will offer the luxury shopper a satisfying online experience.

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Outside In: The Power Of Putting Customers At The Center Of Your Business

Kerry Bodine

Customer experience is, quite simply, how your customers perceive their interactions with your company. In Forrester’s soon-to-publish book, Outside In, Harley Manning and I show that customer experience is a fundamental business driver and — in an age when customers have access to vast amounts of data about your company and its competitors — it’s also the only sustainable source of competitive advantage.

In most industries, customer experience is the greatest untapped source of decreased costs. Fidelity Investments recently spent a modest $20,000 to fix a problem that made it difficult for customers to log into their accounts through the company’s automated phone system. This single fix saves Fidelity $4 million a year by averting calls to customer service. And it’s just one of more than 160 projects that came through Fidelity’s experience improvement system in 2011. Together those projects account for more than $24 million in annual savings.

Customer experience also drives increased revenue. Several years ago, B2B technology reseller and service provider CDW added a question to the customer survey it fields: “What additional things would you like to talk to your sales team about?” The company funneled the answers to this new question to the appropriate account managers. The account managers, in turn, closed the loop by getting back to the customers with a simple message: You told us that you have a need, we’d like to offer you something that could meet that need. And guess what? Customers took the CDW sales reps up on it. This seemingly simple innovation drove more than $200 million in incremental revenue in just one year.

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