The Secret to Higher Profits in a Digitized World

people shock

The Decline of Customer Satisfaction

Customer satisfaction is going down, not up.

How can that be in a world with unprecedented technological progress?

 

“A brand is the sum of the good, the bad, and the off strategy.” –Scott Bedbury

 

Tema Frank founded Web Mystery Shoppers International, the world’s first company to test omnichannel customer service. Her new book, People Shock: The Path to Profits When Customers Rule , shows off both her decades of business experience and the research from interviewing over 150 business leaders. She developed a formula to help businesses improve the customer experience in the midst of a digitized world.

I recently asked her about her research.

 

“The key to getting work done on time is to stop wearing a watch.” –Ricard Semler

 

What is PeopleShock?

As we automate more and artificial intelligence wipes out jobs, the smaller amount that is left for human to human interaction becomes critical. Companies that are people-focused (while using technology to support those people) are the ones that will win in an era of increasing competition and social media power. If you get the people side right, PeopleShock is your key to success. Ignore it and your company will soon be history.

 

“If you’re too busy to build good systems, then you’ll always be too busy.” –Brian Logue

 

Get the 3Ps of Profit Right

Please share your 3P Profit Formula with our audience.

Customers are cranky, and they’ve got more choices than ever before. So you’ve got to keep them happy, and that means getting all of the 3 Ps of Profit right:

Promise – Having a clear aspirational, inspirational and memorable reason for doing what you do inspires staff and customers. It also gives staff a filter for decision-making: Would their action be consistent with the company’s promise?

People – Business success comes from connecting effectively at a human level with people inside (staff) and outside your organization. Outsiders include not only prospects and customers, but people we sometimes overlook, like suppliers, distributors, lenders, investors, media and the public.

Process – As time goes by, some of the processes that got you to where you are stop making sense.  To deliver consistently great customer experiences, you have to regularly re-assess how you’ve been doing things. Start by looking at processes from a customer point of view. What do they experience? Then look at how that lines up with what you do internally.

 

“CEOs are the ones who must conduct the corporate orchestra.” –Tema Frank

 

How does this translate into higher profits?

Embrace Complaints & Hug Your Haters to Keep Your Customers

Hug the Haters

Keep Your Customers

 

Complaints. Do you love them?

Haters. Do you hug them?

If you are angry at a business, what do you do? Take to Twitter? Facebook?

Whether angry, annoyed, or frustrated, ignoring customer concerns is impossible in the social media age.

 

“Haters are not your problem, but ignoring them is.” -Jay Baer

 

When the Customer Hates You

But what do you do when a customer hates you?

Jay Baer shares the eye-opening results of an extensive study on customer service in the social age. Yesterday’s techniques are no longer enough.

Jay is a New York Times best-selling author and the founder of Convince & Convert, a strategy consulting firm helping companies gain and keep more customers. Since 1994, he has advised over 700 companies ranging from Caterpillar to Nike. His latest thought provoking book, Hug Your Haters: How to Embrace Complaints and Keep Your Customers is a contrarian and modern view of creating extraordinary customer service.

 

“Customer service is a spectator sport.” -Jay Baer

 

Why Customer Satisfaction Hasn’t Budged in Decades

Hug Your Haters Book CoverYou share a statistic that customer satisfaction hasn’t improved since the 1970’s. After all the books, the seminars, the new programs, nothing has changed. Why not? What are companies missing?

Customer service has historically played out in private. So even though companies have always said they emphasized it (nobody says “we deliver shoddy customer service” even when they do) they haven’t truly HAD to emphasize it. And doing it well is complex and somewhat expensive in the short term. So nothing has ever really changed. But now, customer service is becoming a spectator sport, and the truths of good vs. bad customer service are out in the open and impacting buying decisions.

 

80% of businesses believe they deliver superior service, but just 8% of customers agree.

 

Let’s say you are about to deal with a customer complaint. How do you get in the right mindset?

Don’t take it personally. Remember that the customer is using THEIR time to try to tell you how to make your company better. And remember that you don’t know what the customer has been through. And then embrace that answering a complaint increases customer advocacy, every time.

 

A 5% increase in customer retention can boost profits 25 to 85%.

 

Social media has given on-stage haters a platform like never before. Businesses were not prepared. What’s the first piece of Jay Baer advice you usually give a business?

This may be a paradox, but our advice at Convince & Convert to companies looking to improve their social media customer service is to first make sure their offstage customer service is outstanding. If you’re not great at phone and email, all you’re going to do is push people from those channels to social media and back again. Be a great walker before you run!

Copyright Jay Baer, Used by Permission Copyright Jay Baer, Used by Permission

5 Obstacles to Great Customer Service

How to Build A Customer Driven Growth Engine

Patron feminism; female customer care protection customer personalization individual customer CRM social customer service customer retention customer relationship care for employees marketing niche segmentation concepts.

Customer Culture

Not too long ago, I spoke with Jeanne Bliss about the 7 Inhibitors to Customer Driven Growth.  Jeanne’s new book Chief Customer Officer 2.0: How to Build Your Customer-Driven Growth Engine is a success roadmap for leaders wanting to build a customer-focused organization.

Jeanne also answered my questions about how to establish a customer culture, social media strategy, leadership, earning the right to grow, and establishing a sense of urgency:

 

Establishing a Customer Centric Culture

“Culture is the action, not the words.” How do you connect corporate aspirations with employees’ actions?

For customer-driven work to be transformative and stick, it must be more than a customer manifesto. Commitment to customer-driven growth is proven with action and choices. To engender this culture, people need examples. They need proof.

 

“Culture is the action, not the words.” -Jeanne Bliss

 

Customer culture is talked about by many leaders but misunderstood by most organizations. “Commitment” to customers must be attached to deliberate operational behavior, such as, “We will go to market only after these 12 customer requirements are met” or “Every launch must meet these five conditions, which the field requires for success. We won’t launch without them, no exceptions.”  People inside organizations need to see the commitment translated to actions that they will feel proud to follow and emulate.

Moving well past words, a deliberate and united set of leadership actions and behaviors practiced in unison is required.

One of the first activities we often undertake to unite leaders is to employ the journey framework to build an operational “code of conduct.”

 

codeofconduct (1)

 

7 Inhibitors to Customer Driven Growth

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7 Key Inhibitors

Jeanne Bliss is an expert on customer-centric leadership. Her new book Chief Customer Officer 2.0: How to Build Your Customer-Driven Growth Engine is a success roadmap for leaders wanting to build a customer-focused organization.  Jeanne pioneered the Chief Customer Officer position and has held the job for twenty years at Lands’ End, Allstate, Coldwell Banker, Mazda and Microsoft. She has led Customer Bliss since 2002 where she has consulted with some of the world’s largest companies.

With all of her experience and research, the very first thing I wanted to know was about the mistakes leaders are making.  She shared with me the 7 growth inhibitors companies are making again and again.

 

“Culture is the action, not the words.” -Jeanne Bliss

 

What mistakes are holding companies back from building a customer-driven organization?

 

Are You Making These Mistakes?

There are 7 key inhibitors that companies stumble over in trying to earn customer-driven growth:

1. Not having executives engaged in the effort.

Often executives will say that they want to focus on the customer experience, but they hand off the tasks to a department or area to work on it. It is hard to sustain this work without executive involvement driving the new prioritization, removing actions that are in the way, and giving people permission to work together.

2. Starting with a mantra, not an action plan.

Often companies decide that they want to get some early traction by telling everyone to “focus on customer experience.” What happens next is that people realize this is a big corporate priority and begin making plans, creating new scoreboards and taking action. A lot of action occurs, executives get a false-positive that change is occurring, but it eventually stalls out because the actions don’t add up to improve complete end-to-end customer experiences.

3. Not defining the customer experience and gaining alignment.

The most potent recurring use for the journey map is to guide work and discussions from the customer perspective. Without this framework to unite efforts, silo work continues to proliferate.

4. Not breaking the work into actionable pieces.

Out Execute the Competition

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Irv Rothman is the president and chief executive officer of HP Financial Services, a wholly owned subsidiary of Hewlett-Packard Company. Prior to joining HP, Rothman was president and chief executive officer of Compaq Financial Services Corporation where he led it from its founding to growth of over $3.7 billion in total assets.

Irv is the author of Out-Executing the Competition.  What I really admire is that Irv is donating all of the royalties he earns on the sale of the book to Room to Read, an organization dedicated to children’s literacy.

 

The best way to out-execute the other guy is to know your customer’s business as well as you know your own. -Irv Rothman

 

Attracting the Right Talent

Much of success in business is about finding and cultivating the right talent.  How did you attract and retain the talent needed to accomplish your goals?

Attracting and retaining the right people starts with a leadership commitment to first develop high performers in-house.  And this has to be more than an annual “talent management” exercise.  It’s an activity that leadership must consistently demonstrate is important by developing people and promoting from within.  This sends key messages to an organization:

1)   Leadership can be trusted to do as they say they will.

2)   Career opportunities exist…. No need to look elsewhere.

3)   Leadership recognizes and acknowledges that outside hires are a 50/50 proposition.

In short, provide an atmosphere where people can learn and achieve advancement based on merit.  Not only will the good people stick around, their hearts will be in it.

 

Developing a Culture of Execution

 

Out-Executing the Competition

Your book title is all about execution.  How do you develop a culture of execution?

A culture of execution starts with devotion to the customer.  Since it is theoretically easier to keep a customer than to find a new one, all messaging and reward systems need to be packaged around a “customer for life” philosophy.  And a pay-for-performance compensation system is a must.  Moreover, it can’t be black box; people need to be clear as to what rewards can be expected from results and behaviors.  Once you’ve got all that organized, creating an environment where people have freedom to act on behalf of the customer is crucial. You can’t have a circumstance where people are bound by the linear strictures of a traditional command and control organization. It not only frustrates your employees, it also makes for dissatisfaction on the part of the people on the other end of the phone.