Whenever I hear the word “amazing,” I immediately think of my friend Shep Hyken. He probably has the work trademarked. Shep sets the bar high for customer experiences and challenges leaders everywhere to raise their game. It’s not enough to be good. You need to be AMAZING.
Shep Hyken is a customer service and customer experience expert and the Chief Amazement Officer of Shepard Presentations. He’s also a New York Times and Wall Street Journal bestselling author, and he has been inducted into the National Speakers Association Hall of Fame for lifetime achievement in the speaking profession.
“Amazement is all about showing up at the top of your game.” -Shep Hyken
In this video interview, we talk about the six principles of the convenience revolution. Shep shares examples ranging from 7-11, Amazon, Uber, Panera, Salesforce, Walmart, to small businesses like Shep’s personalized car dealership and a dentist that delivers wow experiences. Learn how these six principles can revolutionize your organization:
“What happens on the inside is felt on the outside by the customer.” -Shep Hyken
Digital transformation. We read about it often. Organizational leaders struggle to determine the possible threats, the impending changes needed, the opportunities that are possible.
Peter Weill and Stephanie L. Woerner’s new book, What’s Your Digital Business Model?, provides a strategic framework for thinking about these issues. Peter is a Senior Research Scientist and Chair of the Center for Information Systems Research at the MIT Sloan School of Management. Stephanie is also Research Scientist at the same institution with a specialty focusing on how companies manage organizational change caused by digital disruption.
I had the opportunity to speak with them about their research and new book.
How would you rate most organizations readiness for the era of digital disruption that we are in and are facing?
Most organizations we talk to and research know they have to change to stay relevant and have improved in some areas (perhaps they’ve worked on business process optimization or they’ve automated a lot of processes). However, as customer experience demands have increased, we find that many older, bigger companies have not made the improvements and changes needed to address those demands. Plus the leaders of the average large company (more than $7B in revenue) identified that 46% of their revenues are under threat over the next 5 years if they don’t change.
Fact: large companies predict 46 percent of revenues are threatened in the next 5 years absent change.
The book is based around six questions we think every executive and organization has to be able to answer in order to be competitive in the digital economy. We started this research by interviewing leaders from large, global companies, asking them to describe their most important digitally-enabled business transformation initiative. From there we developed a model, tested the preliminary findings in more than 50 workshops with senior executives, identified capabilities needed, conducted several surveys to test those capabilities and show links to financial performance, and interviewed many companies to help us understand what it takes to transform a business. The book resulted from five years of research which shows that the senior executives of top performing firms honestly answered the six questions. To help, each chapter concludes with a self-assessment on one of the six questions. The reader can then compare their self-assessment results to top financial performers to help leadership teams understand the gap they have to close.
Of the six parts, is there one step that more organizations get stuck in than another?
Probably the hardest question for most organizations is having an honest conversation about whether they have leadership, at all levels, who will persevere and successfully deliver the business transformation. Along the way the culture will have to change and adapt to the new digital business model and often this means changing people at the top. But it is not just the top layer of leaders that has to change. Successful transformation requires getting the whole company to behave differently – from the board to the lowest level of employees. For example, DBS Bank in Singapore, which was one the Euromoney’s most digital banks in 2016 has managed to get 14,800 of their 22,000 people involved in a digital innovation activity every week.
“Successful transformation requires getting the whole company to behave differently – from the board to the lowest level of employees.”
It’s not easy running a business today. A single customer complaint, handled improperly, can send your business into a tailspin. At the same time, if you respond to every single customer complaint, you end up wasting time and money chasing an unsolvable problem.
You say that, “The customer is not always right. In fact, the customer is often blatantly wrong.” Share your perspective on this. How did “the customer is always right” develop and where did it go wrong?
All of your readers will have their own favorite “unreasonable or crazy customer stories.” In our experience, after complaining about accountants and management, it’s in most salespeople’s top five favorite cocktail party conversation topics.
We start our book with a list of completely clueless, hilarious, and real customer complaints.
Our favorites are:
“I think it should be explained in the brochure that the local convenience store does not sell proper biscuits, like custard creams or ginger nuts.”
“Although the brochure said there was a ‘fully equipped kitchen,’ there was no egg slicer in the drawers.”
“We went on holiday to Spain and had a problem with the taxi drivers, as they were all Spanish.”
Funny when you read them, but scary when you hear that these are 100% real complaints left by real customers. Is the customer right to be upset that the local store doesn’t sell proper biscuits like custard creams or ginger nuts? Or a customer who complains of too many Spanish people in Spain? Of course not. In these examples, the customers are blatantly nuts.
This idea that “the customer is always right” is one of those things that’s easy for management to tell their frontline employees; it sounds good in practice, and it leads to tremendous wasted time, effort, and often burnout. Because, sometimes, you really do have to fire customers – one of the things we talk about at length in the book. Telling your people that the customer is always right is asking them to close their eyes to reality, and when you ask them to do that, it hurts your ability to ask them to do anything else. After all, with some of the complaints above, how could those customers be right? What does it mean to treat the customer as if they’re right?
Imagine a world where your customers want your organization to succeed. Where your employees are personally committed to your company’s success. Where your organization is not focused only on its own results, but on a collaborative effort that spans a community and beyond.
Co-creation. Share with our audience what it is and why it’s important.
It means collaborating with your most valuable business relationships to transform your business or revenue model. It can drive how you iterate, innovate or disrupt your market and in the process, evolve far beyond anything you could do alone.
“Introspection leads to right action.” -David Nour
You start the book by saying that, “Introspection leads to right action.” What’s the best way to do this?
Real introspection takes three critical elements:
Think Time – Unfortunately, given the hectic pace most of us work these days, we don’t get enough quality think time to set the minutia of the day aside and really consider our relevant strengths and strategic relationships, as well as personal or professional growth opportunities.
An Inner Circle – We need to surround ourselves with fewer, but more authentic and impactful, business relationships. Most of us could dramatically benefit from fewer partnerships and alliances and more thought partners who will tell us what we need to hear.
Leading Drivers – We can’t raise the bar on our intellect, performance, execution and results… if we don’t measure leading drivers of our progress—not lagging indicators of where we’ve been, but predictive insights toward where we’re headed. You can’t win a race looking in the rear view mirror. Focus your energies on the road ahead.
What are Transformational Consumers? How is this changing company strategy?
Transformational Consumers are a massive and growing group of people who see all of life as a series of projects to change their own behavior for the healthier, wealthier and wiser. They know that this behavior change will be hard, but they believe with all their hearts that it’s possible, and they believe that they can change anything about their lives if they can master their own habits and behavior.
So they are constantly on the lookout for products, services and content they think might help. They are early adopters, and they tend to have great influence on the buying behavior of the people around them.
I like to joke that if you have ever been vegan and paleo at different times in your life, you’re probably a Transformational Consumer. Most entrepreneurs are Transformational Consumers. The head of product for Airbnb once told me that they see both their hosts and their guests as Transformational Consumers.
One important takeaway here is that this is not a niche: over 50% of US adult customers we surveyed said that they use digital or real world products several times a week, or more often, in an effort to reach their healthy, wealthy, wise goals.
The power of this framework is that it offers businesses a lens through which to more powerfully understand the real-world journeys their customers are taking as they aspire to live better lives. And that shows you how to increase customer engagement, brand love, loyalty and repeat business, as well as reach new audiences. Once you understand your real-life customers’ real-world journeys, that surfaces limitless opportunities to innovate new products, features, services and even marketing messages and content that remove resistance points and trigger progress along customers’ paths.
Rethink Your Customer
How do companies go about rethinking their customer?
Your customers are not just the people who currently buy your product or your current social media followers. I urge companies to shift to the point of view that their customers are all the people out there who are struggling with the high-level, human problems that the company exists to solve.
Go out into the real world, do customer research, watch how people operate in real life. You can even start this process by just doing some online listening on the blogs and social media sites (not your owned channels) that your audiences frequent online (reddit, etc.).
Your goal is to understand and, ideally, visually map out your customers’ real-world journeys of going from having the problem you exist to solve to no longer having that problem. You need to know what stages they go through along their journey, what gets them stuck and unstuck, where they go to do research when they need to know or find something and what words and phrases they naturally use as they try to reach their goals.
Tell us more about resistance. How do you remove it?
Think about it: Anytime you try to level-up your life, whether it’s trying to reach a weight loss goal, to work out more, or to start a side business or meditate every day, there’s a force that pops up in all of us that Steven Pressfield and Freud both call Resistance. It’s the same force that creates procrastination, causes us to get distracted or to sabotage ourselves. It’s generally the force that makes it really, really hard to make behavior changes stick.
In your customers’ journeys toward their healthy, wealthy and wise goals, Resistance includes any sort of quit point, obstacle, friction or common point of failure. These are the things that get people stuck. There are tons of spiritual, emotional, psychological and neurological root causes of Resistance, but suffice it to say that people often know what changes they need to make; they just find it very difficult to actually make them.
This creates a major opportunity for companies to win the love of the people they serve by focusing on removing Resistance.
You can remove Resistance from your customers’ journeys by creating features and products that take friction out of their path, by reducing the difficulty or cost or number of brain cycles they have to go through to create the habits or changes they want, or by inserting progress triggers into their real-world journey.
For example, at MyFitnessPal, we learned during customer research that one of the biggest obstacles (points of Resistance) that people experience along their journey from living an unhealthy life to living a healthy one is the cost of eating healthy food and the difficulty and time involved in cooking healthfully. So every team in the company explored how they might help remove those Resistance points. When it came to content, for example, we created all sorts of recipes and meal plans for feeding a family healthy, home-cooked food on the same budget we learned people were spending on a fast food family dinner ($20). We also created all sorts of video, recipe and meal-planning content to reduce the time and increase the ease and deliciousness of our customers’ home cooked meals.
“If we can keep our competitors focused on us while we stay focused on the customer, ultimately we’ll turn out all right.” -Jeff Bezos