theIdeaStudio (Customer Crossroads)

Pet theories and pitfalls

A lovely thought from scientist Konrad Lorenz that fully applies to customer experience design. 

"It is a good morning exercise for a research scientist to discard a pet hypothesis every day before breakfast. It keeps him young."

If you want experiences that engender loyalty and apostle behavior, you must begin by ruthlessly extracting your pre-existing views of what is going on, and start to systematically observe and test.  Be brave -- challenge your thinking!

When food safety counts

Spotted on fresh asparagus:  a food safety tag that says

"No detected pesticide residue, certified by Primuslabs.com.  When food safety counts."

Our world is very complicated, and we need expert advice and certification on many things.  Apparently fresh produce is now one of those things. 

The branding and labelling of fresh foods has changed considerably in the past few years.  Omega-3 eggs are now stamped, so we can be sure.  Organic mesclun mix is packaged in plastic, so we can be sure that ordinary mesclun didn't just make its way into the more expensive organic bin.

What's interesting and important about this is the management of the consumer perception that is going on.  Smart marketers don't leave this to chance.   They ask themselves what signifies a safe food, or an organic food, or a quality customer experience and they ensure that those symbols are present. 

The absence of the right symbols can be distressing for people.  By way of example, I offer up the dental wellness clinic I patronized many years ago.  The very innovative dentists who set up the clinic wanted to create a relaxed and friendly atmosphere.  One of the ways they chose to do this was by providing people with coffee and juice by a friendly host in their waiting lounge.  Another was the absence of the front desk barrier.  People liked the arrangements but... they were not sure where to go to ask questions.  They weren't sure if anyone had noted their arrival.  And they weren't sure where to go to get their insurance forms filled in.  (And some of us were vaguely uncomfortable about facing our dentist with coffee-breath.) After several years of trying to train their patients, the clinic put a front desk back in.  A very friendly desk, but a front desk nevertheless.  The whole thing became much more manageable, without losing any of the friendly wellness ambiance. 

It's easy to get this kind of thing just slightly off, even with extremely good intentions.  The asparagus sellers and the dentists responded to anxiety among their customers, and tried to improve the experience by alleviating the anxiety.  And probably hoped to differentiate thereby.  All good things.   But the experience of "dentist" is vastly more complex than the experience of buying asparagus.

I want to give credit to these clever dentists, because there may be no way short of iterative market testing to actually get the fine points right.  Even the best concept research has flaws.  Concept testing is good, but prototypes are better. 

And one other thing:  you don't always need to grow better asparagus.  Sometimes you just need to show people that the asparagus is just as good as it looks.
 

Chief Compliance Officers Set the Record Straight

I received some thoughtful feedback about my recent posts on integrating compliance effectively with a customer-centric organization.   

Can I help you find something?

All the focus on CRM might make you think that the behavior of sales staff doesn't matter much.  You couldn't be more mistaken.  Small things can make a big difference in the retail customer experience: like whether someone offers to help you, and how that offer is delivered.   

The rising threat of DVD-by-mail services such as this one has Blockbuster working hard on customer experience these days.  And they are doing more than changing their late fee policy. They are trying some things to improve the store-front experience as well.

Customer Centric Organization?

This article from Marketing Profs makes some interesting points about roles and organization structure: Defining Roles of the Product Management Team.  But I really wonder how companies will become customer centric if the focus continues to be on Product Management instead of Segment Management.  Many of the challenges service organizations have today is that they borrowed the product structure from packaged goods companies without revisiting it. 

I would argue that companies such as telcos and FIs really must have segment managers if they are going to avoid silo-driven thinking.

Have I reached the party to whom I am speaking?

The telco world has two kinds of firms in it these days:  the ones that have been around for decades and have engineering in their DNA, and the ones that are newcomers and have marketing in their DNA.  Those with engineering DNA sometimes struggle to provide a n integrated customer experience, and Bell Canada is no exception.

If you have ever tried to figure out how to configure the nodes for your Business ISP service, understand your toll-free number billing, or questioned why a small business is getting FOUR statements every month, plus bonus statements quarterly, there is good news on the horizaon.  Smart marketers like Marianna Ciocio are thinking about SMEs, and this is real cause for hope.

Because she is thinking some very interesting and insightful thoughts.

Ms. Ciocio spoke to an event earlier this week on B2B research and marketing to SME customers.   This is someone who is observing carefully, and listening to customers.  Let me share a few of these observations with you.

SME customers struggle with the integration of telecom.  They don't have specialized technical staff to deal with it like those enterprise customers do: they're on their own.  They're not always sure how to put the pieces together.  And they find it frustrating to deal with multiple suppliers.  (You are your own systems integrator)  IT and telecomm are becoming almost indistinguishable, but the model to put them smoothly together is not yet clear.  Should telco's provide servers?  Should they lease you a PC? 

Funny isn't it -- when we were all talking about convergence, we didn't clearly see the strategy mish-mash that would be faced by enterprises attempting to develop a coherent market position. 

A long-term focus on customer acquisition has made retention and loyalty a poor cousin.  (I can certainly vouch for this, every time I call to find out why I can't get the discount being offered to acquire new high speed customers.) 

Market segmentation has tended to be based on internal spend -- how much is the customer spending with Bell every year.  (Doesn't this sound so much like financial services?)    There is a need to move towards more behavior based segments and targeting, looking at the whole value delivery system.   And not just at a point in time, but throughout the business life cycle.

Good questions are being asked.  Like, when in the life of a business does the need emerge for basic service?  Is it before you register the company name?  When you find an office?  Before or after the domain name?  And when does the need emerge for additional telcom and other services?  What are the life events in the business that trigger these needs? 

The history of the company as an engineering company is something of a burden for them culturally -- in the past, they generally had the product in mind -- or even built -- before they started the research.  Now they are trying to look out at the behaviors involved in running a business, interacting with suppliers, interacting with technology, and the problems people have.   

They are starting to look for areas of opportunity in the customers, not in the technology. 

The cultural history is not unique by any means -- there are many examples of relatively introverted companies, especially where there has been a strong regulatory framework in place.  The benefits in these industries have been incredible stability and reliability.  Let's face it, when you pick up a land line and there is no dial tone, you look out the window to see what disaster has befallen.  Because it sure isn't some sort of re-boot situation.   

Like other complex service businesses, this firm is also challenged by the need to work effectively across functional and business line silos, and the organization is not really designed to make that easy.  (Did I mention the similarities to financial services?) 

So don't expect change to happen overnight.  But there are some smart committed individuals over there that would like to make things better.  And here's to them.  Because we all need telecom.

B2B Marketing Communications Getting Sophisticated

Ruth Lukaweski hosted a great panel discussion at an MRIA event earlier this week on trends in  B2B marketing communications and the role of research.   (No really, this actually was a good panel discussion.  She moderated, and there weren't any PowerPoint slides!) 

The panel included senior people from three B2B advertising agencies.  Note that none of these companies calls themselves advertisers -- they are all in the marketing positioning, marketing communications space.   They all offer integrated service, including strategy, positioning, message, creative, and production.  All indicated they are moving more and more towards positioning themselves -- and billing as -- consultants, not agencies.

Medium Sized Business Marketing - Seven Deadly Sins

Michael Szego of OgilvyOne says there are seven deadly sins when marketing to medium sized enterprises (which he defined as having from 50 - 500 employees).   Good principles to consider when managing the customer experience for this group.

1.  The Middle Market "Effort". SME's have great radar for detecting the big marketing push that lacks genuine commitment.  They want an ongoing relationship and follow-through to them and their company.  They want to know that you are going to be there next quarter if they are going to move their business to you.

2.  Talking Up.  SME's may not aspire to be 1000 person companies.  They don't appreciate hearing "We know you'll be big some day".  It's off-putting, because they see themselves as successful now.  What is intended as flattery is in fact patronizing, just like Sin #3 ...

3.  Talking Down.  SME's don't like that "Hey, little guy, we know what's right for you" language any better.   They'd much rather you demonstrate that you know by creating service offerings that make sense for them. 

4.  Bargain Sales.  SME's want a comprehensive value proposition, not just a low price.  What looks like price sensitivity is actually just astute purchasing.  When there is value to pay for, they'll pay.  So don't just tell them about the low, low price.

5.  Club Talk.  Corporate jargon is not welcome -- you need to speak their language.  This means surgically extracting tech specs that are not essential, and focusing on real benefits.  Jargon talk spells expense and complexity to many SMEs.  They also want you to honor their values, which are frequently different from the Fortune 500.   

6.  Have I Got a Box for You.  SME's need customization as much as the Fortune 500 do.  They don't like being offered an opportunity to force-fit their needs into your inflexible bundle.

7.  Commitment Issues.  They've been burnt before by companies that aren't really committed to the SME market, and they can smell this a mile away.  SME's frequently believe they are misunderstood by big corporates, and you will need to demonstrate your understanding to show commitment. 

Elaine Taylor, also from OgilvyOne, says that if you want to successfully target these markets, you must develop offerings that speak to their unique needs.  Scaled-down versions of enterprise solutions with the guts -- and most of the value -- removed, are not the answer.  She calls this "Enterprise Lite" -- just like lite beer, it lacks flavor.    The same is true for taking the consumer offering and trying to move it up a level.  SME's can spot the bells and whistles for what they are, and they don't spell value.   

Taylor points to IBM as a company that had major credibility issues in this market segment in the past, and has met success by listening and responding. 

Compliance vs Customer Experience: the Joys of Travel

This is the third post in a series looking at how compliance procedures have infiltrated customer facing environments, and how to meet the challenge without damaging the customer sales and service experience.   

Given the identical situation, let's look at how different organizations are responding.   Since we've all been in an airport, dear reader, this seems like a good place to look. 

In Canada, we seem to have airport security who relish
acting in an officious  manner.  (It feels like class warfare to me: if you can afford to travel with a laptop, they already hate you) 
What a treat in some US airports I have been in, (e.g. Phoenix) where security staff
are friendly, polite, smiling and service oriented, even as they are
telling you they need your shoes.  They wish you pleasant travel. They
invite you to return soon.  Their subtext goes something like this:  I know you aren't a terrorist, but we need to pay attention to this and I know you understand why it's so important.  Okay?

Pearson airport in Toronto has US Customs and Immigration pre-clearance for Canadian
travellers to the USA.  They have helpful people directing traffic.
They use line-up management methods that they learned from Disney.  It
might not be fun, but at least it's efficient.   

Contrast this with what you will see coming in to Canada Customs in the same airport.  No line-up management at all, which occassionally results in a full-room-crush.  I've been in this room
when the crowd was backed up the stairs to the boarding lounges, pushing and jockeying for position.   It's hot.  There is nothing to look at -- no posters for the sights of the city you are entering, no welcome signs, no commercial messages about where you can get a cell-phone.   It feels like the third world. (Actually, I've had better experiences in the third world.  It's embarassing, frankly, and let me just apologize to all visitors for our dismal performance)

So to anyone who doesn't think organization culture counts for much, I invite you to explain this difference.  It is possible to balance competing objectives.  But management has to actually make the effort. 

Compliance vs Customers: Managing the Tension

A few days ago I posted on the tension between increasing compliance requirements (Anti-Money Laundering, Anti-Terrorist Financing, Sarbanes-Oxley) and customer focus.    I admit, I wimped out when it came to offering useful suggestions.  But here are a few:

• Avoid focusing on "compliance".  Instead, focus on how to make the whole experience a good experience for customers, even including the compliance steps.  This means getting MARKETING or SALES to develop compliant processes, not letting COMPLIANCE determine how you will talk to customers.    
  
• Give people the words to use and good role play training in how to handle awkward scenarios.  Help them avoid falling back on phrases like "it's policy", which customers truly despise.
• Don't really expect front line people to understand how to find money-launderers -- focus only on why it is important to pay attention.   Knowing your customer is really good for creating customer focus --  this is just a different twist on what you are listening for.
• Do your best to ensure that customers are not treated like crooks until proven otherwise.   This means being welcoming and friendly during any and all credit checking and due diligence procedures. 
• Don't expect your front line staff to be as sophisticated in their ability to make trade-offs and judgements as senior managers are.  If they were good at those kinds of trade-offs, they would BE senior managers, not front line service staff.  (I know, this is perfectly obvious, but still a frequently made error). 
• Compliance maywant to issue directives-from-above that sound like the eleventh commandment, and issue these directly to sales and service staff.  Their justification for this may be that they are accountable, and therefore they need unfettered access.  BAD IDEA.  Instead, have them hold the direct line of management accountable for ensuring that customer facing processes are compliant. 
• The relationship of compliance staff with the customer-facing staff should be one of AUDITING.   They can tell people not to violate the compliance policy, and the staff must comply and escalate afterward if necessary.  This is not a managerial relationship of assigning work, leading or coaching. 
• Having said all this, the Compliance Dept. clearly stands to gain from being accessible and developing a reputation as people you can talk to.   
• Just like Mom told you, you catch more flies with honey than vinegar.

Tomorrow, we'll look at how airports are handling compliance, now that they've had a few years to work out the kinks.

 

Google Maps

Finally a good online mapping experience, at least at first blush.  Thanks to Karl Long   for bringing this to our collective attention.

Okay, what is Google doing right here?  Many types of specific search options visible on the right-hand panel.  But you can just put in an address and a city in the top search bar as well.  Fairly predictable and controllable zoom in and zoom out.   And found my address -- accurately -- on the first try.

We are still a ways from having the web respond to how humans think and categorize information, however.  For example, a couple of people have recommended to me a small computer store near a specific intersection, but they can't remember the name of the store.   But we are definitely closer.

It almost makes you want to set your skepticism aside!

Compliance vs Customers

There is a major push on to stop money-laundering activities by crooks, and to squeeze off the access of terrorists to funds.  These are laudable goals.   At a conference today on Anti-Money Laundering and Counter-Terrorist Financing I learned that you can buy a lot of terrorist activity for not very much money.   And that some terrorist organizations fund themselves through organizations designed to look like legitimate charities.   And I can see clearly why we need to keep the doors closed to dirty cash as a way to control crime.  No objection.  In fact, I confess I was oblivious to the magnitude of these issues, as well as the positive impact that has resulted from the various new regulations and standards, some domestic, some international.

However there are going to be challenges.  And one of them is going to be reconciling the need to focus on customers with the need to check in, check up and report on them. 

The great support myth or why Microsoft just can't afford to stand behind their products anymore

I spent basically another full day trying to get back into the information age.    

Here's our story so far:   A mild-mannered businessperson has problems with her laptop, which she is unable to fix, despite spending hours -- days in fact -- on reinstalls and support.   Desperate to restore productivity, she simply goes out and buys a new notebook PC, and pays for shrink-wrapped XP Pro, in order to qualify for support for the inevitable future software problems which will be encountered. Said PC comes pre-installed with the 60 day trial version of Office 2003.   But she is still happy with her old Office 2002, so installs that.  Is unable to remove the trial version of 2003.  Experiences software conflicts.  Cannot type a memo or send e-mail.  Spends the morning on the phone with HP support, who is unable to fix the problem and recommends starting over with the recovery disk.  Uses the recovery disk, which does not solve the problem.  Tries downloading the free trial again, hoping to install, and then successfully uninstall it.  Does not work.  Decides the solution may be to just go BUY Office 2003, and drives to Staples to get it.  Attempts to install new software according to instructions, but continues to receive irritating error message from Windows Installer about missing cab file.  Our story resumes...   

Buying a Notebook PC: Overchoice and Channel Integration Challenges

It's been close to a week now since I was set up with a fully functional PC.   The whole story is long and not that interesting, but I did learn a few things about buying PCs and software.   Like so many customer experience situations, what seems perfectly reasonable or even good from the standpoint of the company, can be incredibly frustrating to the consumer. 

Here's the nine things I learned along the way

PDFs for online reading

I'm not sure anyone should use PDF's for material designed to be read online.  But this goes double if it's a newsletter of some kind that is not to be published off-line.

If you are going to use PDF for this purpose, PLEASE give your readers a break and don't use some kind of two or three column format designed for print that calls for scrolling up and down.  I've raised this issue with my otherwise wonderful alma mater, who publishes a nice business journal that is generally worth reading.  Surely they can afford two formats, one for online reading, and one for print? 

I think this has damaged their brand image, and I'm not kidding around here. How can you claim to be leading edge thinkers when you can't get this kind of thing right? They could take tips from the journal of a major consultancy, that offers both.