I read a Gartner Research article* recently that began, "Many marketing leaders today are responsible for customer experience and customer retention in addition to traditional marketing activities oriented to awareness, consideration, and acquisition. As a result, they're not only asking what makes customers buy products in the first place, but also why customers leave."
This quote has stuck with me since I recently had the third and final customer experience at a major home improvement retail chain (you would recognize the name instantly), and as a result, I have left this particular retailer for good. The sad thing is, no one at that retail chain - not senior leadership, not the marketing team, and not the customer service department - cares that it lost a repeat long-term customer. Here's what happened.
Last December, I purchased a new refrigerator/freezer, washing machine, and dryer. When these three items were delivered to my home, the freezer was missing two shelves, which, if the only problem, would have been a minor matter. I returned to the local store and requested two replacement shelves. A salesperson took two shelves from the floor model and gave them to me. Strike One.
The next day, I smelled something odd in my laundry room. Apparently, there was a gas leak as a result of the incorrect installation of the dryer, so I had to call Southern California Gas. The installer had not put a seal between the valve and the hose, so the So Cal Gas repairman had to visit my home and install one immediately. Strike Two.
This summer, I returned to the home improvement store to purchase a gazebo for my backyard. When the 750-pound box was delivered, the deliveryman used a forklift to attempt to put the large box in my garage, but he scraped my driveway with the forklift. Had he said there could have been damage to the driveway from the forklift, I would have instructed him to place the large box in front of my house, but I did not get the chance. Now, because I want to repair the driveway as soon as possible, I have to hire a contractor to visit my home and repair the driveway. Strike Three.
I looked up the email address for Customer Service on the retailer's website and sent a detailed email. Within a day, I received a response that said, "(Store name) will be happy to help you." The email continued by saying that I needed to speak to the store manager where I purchased the items. I was told that I could not speak to anyone in the corporate customer service department. Strike Four.
A week after my email, I spoke with the local store manager on the phone. He again stated that he wanted to make things right, but when I explained that I resolved both the missing shelves issue and the gas leak issue back in December, and the only remaining issue was the damaged driveway, he said that he would have to file a claim with the delivery company. He explained that the store hired a company to deliver items, so the store was not responsible for any issues resulting from the delivery company. Strike Five.
I said that I did not want to wait for a claim to be filed, an investigator to visit my house to personally assess the damage, and then wait for a decision if a repair would be approved. Guess what happened? The manager hung up the phone on me. Strike Six. If you're a baseball fan, you know that there are too many strikes in this story.
On their own, these instances were disappointing. But taken together, they represent a lack of understanding of customer service and even worse, a total disregard for customers. At any point during my interactions - email, phone, in-person visits - anyone who represented this retail store could have taken ownership for my series of bad experiences and attempted to make things right.
They could have offered:
*A $250 gift certificate
*A free BBQ since it's summertime
*A $250 gift certificate to be used in the garden center
I am reminded of Bill Gates' timeless quote about the value of unhappy customers, and even if nothing had been offered to me, I would have remained a customer if someone from the store had simply acknowledged my concerns and agreed that changes had to be made so that these actions were not repeated for other customers.
Since no one did anything, I have no choice. I'm no longer a customer of this home improvement store - but will now only go to the competitor (whose name you'd also immediately recognize). What would you have done if you had been in my shoes?
*Here's the article that inspired this post:
"Why Customers Leave - and What to Do" by Frances Russell of Gartner Research
https://blogs.gartner.com/frances-russell/2019/07/09/why-customers-leave-and-what-to-do
Image Credit: Quote from Bill Gates.
Have you assembled a stack of “must-read books” left over from your summer vacation? With summer over and the winter holidays quickly approaching, it’s time to catch up on some fall reading. I highly recommend that you add these five leadership, branding, and customer marketing books to your reading list.
THE ENGAGED LEADER: A STRATEGY FOR YOUR DIGITAL TRANSFORMATION
Author and business analyst Charlene Li defines an engaged leader “as someone who uses digital, mobile, and social tools strategically to achieve established goals as they relate to leading people and managing organizations…The openness required is unprecedented, and the trust and transparency are mind numbing for many top leaders who are accustomed to maintaining control and proceeding in an orderly and predictable fashion.”
According to Li, there are three actions necessary for leaders to become engaged: listen, share, and engage. “Listening is the way leaders determine what individuals need from them to enhance the relationship and deepen the connection. Sharing is how leaders use stories and other tools to develop mutual understanding and share people’s mind-sets and thus the actions they take. And engagement is a two-way dialogue that motivates and mobilizes followers to act in concert toward a common purpose.”
Consider using Li’s digital leadership development worksheet from the book:
http://charleneli.com/wp-content/uploads/Engaged-Leader-Worksheet.pdf
VOICE OF THE CUSTOMER MARKETING: A REVOLUTIONARY FIVE-STEP PROCESS TO CREATE CUSTOMERS WHO CARE, SPEND, AND STAY
This book written by Ernan Roman has been called “the definitive playbook for the new customer-driven era.” Roman defines Voice of the Customer (VOC) as the term “to describe the process of capturing critical details regarding the desires, needs and requirements of a given prospect, customer, or target group…VOC yields an in-depth understanding of customer and prospect preferences and actions…and is what allows us to give customers what they really want most from us – and avoid the annoyance and alienation that results from offering them what they don’t want.”
Customers want to know that their voices are heard. Once this happens, according to Roman, they look forward to engaging with and doing business with brands. Here are the five steps that all brands should follow:
[1] Conduct and apply VOC relationship research – achieve greater Customer Lifetime Value (CLV), which is a prediction of the net profit attributed to the entire future relationship with a customer – the most straightforward way to calculate CLV is to take the revenue you earn from a customer and subtract the money spent on acquiring and serving him/her.
[2] Create VOC-driven opt-in relationship strategies – focus on the relationship rather than the first contact or first sale. [To see some innovative business-to-customer opt-in strategies, check out what Disney Vacations does: https://disneyworld.disney.go.com.]
[3] Create a VOC-driven multichannel mix – your brand’s messaging might include search engine optimization/online advertising, email, print catalog, billboard advertising, in-store advertising, social media, and word-of-mouth marketing.
[4] Create a VOC-driven social media presence – create a presence on the social platforms where your audiences assemble and engage with them with compelling content (Facebook, Twitter, Instagram/IGTV, LinkedIn, YouTube, Snapchat, etc.).
[5] Invest in an excellent customer service experience – reduce complaints and increase number of repeat customers.
Perhaps, the best way to define voice of the customer marketing in a nutshell: when a business is proactive in its interactions or touch points with a customer.
THE BIRTH OF A BRAND: LAUNCHING YOUR ENTREPRENEURIAL PASSION AND SOUL
In the words of author Brian Smith, the founder of casual comfort brand UGG, “Building a brand, like any natural process, is a gradual, organic, and wildly unpredictable experience.” While many of us have ideas that we think may have the potential to become a national or international brand, the reality is, we don’t. But Smith did, and it’s hard to walk on any street without seeing someone walking in an UGG sheepskin boot. The book shares a myriad of entrepreneurial tips with Smith’s story of bringing UGG footwear to life.
BE BAD FIRST: GET GOOD AT THINGS FAST TO STAY READY FOR THE FUTURE
Leadership author, coach, and trainer Erika Andersen challenges readers to become significantly better learners by the end of the book. Based on her research in writing the book, most people don’t like to look dumb if they ask questions or demonstrate a lack of knowledge or understanding. However, “it’s okay to be bad at those parts of your job that you haven’t yet had the opportunity to learn.”
Here was a great example of being bad: “The first time you’re running a meeting and someone who works for you says something you don’t understand, and you take a deep breath and say, “I’m not sure I’m following you – could you explain that in a different way?” it’s going to feel awkward and even a little scary. But then the person will stop and say, “Oh sure…” You’ll listen and understand; the other person will feel important and helpful; and the trust and openness on your team will tick up a few micro-points. In other words, nothing bad will happen…This will make it much easier to “be bad” the next time. Word will get around that you’re really interested in your folks and good to work for, better conversations will happen, and your employees will start to ask curious questions of their own in meetings.”
Be sure to check out the self-talk about “being bad” and the supportive (and more accurate) alternatives on page 172 of the book.
CRACK THE C-SUITE CODE: HOW SUCCESSFUL LEADERS MAKE IT TO THE TOP
Author Cassandra Frangos has been called “the executive whisperer” by Diversity Women magazine, and her consulting expertise focuses on succession planning, leadership development, and team effectiveness. Her book answers the question, “How can I reach the C-Suite?” by providing an array of insights about the four core paths to the C-Suite:
[1] The tenured executive: internal appointment
Questions to ask: Am I a fit with the culture? Am I passionate about the purpose? Can I change with the organization? Can I create my own opportunities?
[2] The free agent: externally recruited
Questions to ask: Am I a good fit in my present company? What will I do if I am passed over? How fast is my career clock ticking? What is my strategic career plan? Where is my next growth opportunity?
[3] The leapfrog leader: internal or external candidate
Questions to ask: Can I fill a gap in the leadership pipeline? Is the culture stuck, and can I help get it unstuck? Is my functional area of expertise in flux? Are the hiring managers open-minded? Is organizational change imminent?
[4] The founder: new venture creator
Questions to ask: Am I having the impact I want? What problem will I solve? Who are my co-founders? Am I staked financially? Do I have the personal support I need? What will I do if I fail?
In addition to these traditional pathways, there are also the nontraditional pathways: going from consulting to the C-Suite, going to the C-Suite following a merger or acquisition, going from a spinoff to the C-Suite, going from a Board position to CEO, going from COO/CFO/CMO/CSO to CEO, and going from founder/CEO to C-Suite of a different organization.
Bottom line, no two pathways to the C-Suite are the same – they are as different as the leaders who travel them.
What business book is a must-read on your end-of-the-year list? Please chime in and share.
Image Credit: Debbie Laskey’s library.
Follow these accounts on Twitter:
Charlene Li: @charleneli with hashtag #EngagedLeader
Ernan Roman: @ernanroman
Brian Smith: @briansmithugg
Erika Andersen: @erikaandersen
Cassandra Frangos: @c_frangos
Wharton Digital Press: @WhartonDigital
Many marketers and other social influencers understand that the way to stand out in today’s competitive social economy is to provide an outstanding customer experience. This can be interpreted or played out in many ways. Some businesses offer loyalty programs to repeat customers. Other businesses offer discounts. And others personalize all forms of communication. But what happens when a business doesn’t understand that the other side of service is a positive customer experience?
Recently, I made an online purchase from a small online retailer, which had previously been a catalog-only business since the 1970’s (according to its website). I chose two products, added my credit card, added my mailing address – and this is where it gets silly. I added my email address and telephone number. Remember this as the story goes on.
At the two-week mark, I wondered where the items were. I called the toll-free number and spoke with a customer service representative. After much discussion, we learned that my package had an incorrect digit in the street address and was en route back to the retailer. The shipping process began with FedEx, who then transferred the package to the US Post Office. At no time in the package’s journey, neither FedEx nor the Post Office thought about using my email address or telephone number, which were on the shipping label, to reach out to me to ask for my correct street address.
Instead, the package was simply MIA. The customer service rep had no idea when the post office would return it, so she could not issue a refund. She did, however, offer to take my credit card number over the phone to place a new order, and she even offered to pay for the shipping cost. Wow, a big gift of eight dollars!
I wondered, did the representative have any authority to make sure I had a positive customer experience? Could she have offered to send me one of the two items that I had initially ordered at half price or even free – as a token of understanding my frustration and disappointment? Or was it more important that the online retailer balance its books and ignore the entire concept of customer experience marketing altogether?
Before I ended the call, I told the rep that I understood customer experience marketing and that, if I had been in her shoes, I would have done something to make sure that I did not lose a customer. The Potpourri rep replied, “Sorry,” and hung up. I wonder how long until I notice the refund on my credit card statement. With service like I experienced, I wonder how long this retailer will remain in business.
Have you ever experienced a disappointing customer experience that turned around at the end? Please chime in and share.
Do you ever drop your key ring because it carries too many loyalty cards? Or do you use one of the many loyalty program applications on your smartphone to access your accounts, points, discount coupons, and other program perks? Whatever way you access your favorite brand’s loyalty program, there is no denying that loyalty programs are effective tools in the brand-building tool chest. However, there must be smart strategies behind the programs, or they will lose their impact and may even lose long-time customers.
Like you, I'm a member of many loyalty programs. While most don’t provide huge cost savings, the $5 coupons or 20 percent off discounts are welcome.
At the conclusion of the recent holiday season, I received an email from a nationally-known fine dining chain that has been in business for 87 years. While I had dined at the restaurant for special occasions throughout my life, I had not visited in about a year. From the wording used in the email communication, you would have thought my absence was a crisis of international concern. But upon further reading, the email takes a turn to the dark side with terms such as “inactive status” and “no longer.”
The subject of the email was: WE MISS YOU!
The email message follows below in its entirety, and was signed by the restaurant’s President and CEO:
Dear Debbie,
We've noticed that you haven't been in to dine with us for more than 15 months. As a VIP, the points in your account will never expire. However, after 18 months of inactivity, your account status will become inactive, and you will no longer receive the full benefits of membership.
To maintain active status, you can:
* Dine with your VIP card
* Buy Gift Cards or eGift Cards
* Purchase gifts from our shop
If you have questions about your account, please call Member Services at (number). If there is a specific reason you have not visited, please call me directly at (number). We continually strive to better serve our guests. On behalf of all of us at (restaurant’s name), we look forward to serving you again. (Signed by the President/CEO)
With such a long and rich history, the restaurant welcomes Los Angeles natives and tourists on a daily basis, and during the holiday season, welcomes football teams who compete in the Rose Bowl football game. In fact, publicity abounds for this restaurant during December every year – publicity that every restaurant can only dream about. So why, I wondered, would a communications team write such a strongly-worded email that did not thank me for my lengthy customer status?
Perhaps, a better email would have been:
Dear Ms. Laskey,
We hope you had a happy and healthy holiday season! We missed you during the holidays and would like to welcome you in early 2017.
Our VIP guests are very important to us, and we are thankful that you choose our restaurant for family celebrations and other special occasions. As a VIP, your points never expire. But to entice you to visit soon, we’d like to offer you a complimentary dessert or complimentary glass of champagne (or $25 coupon) during January or February.
If you have questions about your account, please call Member Services at (number). If there is a specific reason you have not visited recently, please call me directly at (number), so I can address any concerns you may have. Our goal is to continually improve our guest experience, so on behalf of all of us at (restaurant name), we look forward to serving you and your family again soon.
It seems as if my accumulated points are more important to this restaurant than they are to me. All I ever expected from this restaurant was exceptional guest service and delicious food. But based on the tone of the email, despite many years of family celebrations, I will not return to this restaurant. One poorly written email led to the loss of a long-time repeat customer. This restaurant’s loyalty program was an example of an #epicservicefail.
If you think you know the restaurant, chime in. Happy New Year!
Image Credit: Digitalart via FreeDigitalPhotos.net
I visited an online store recently to make a purchase. The store sells sweets: brownies, cakes, and cookies. The store is also part of a large group of online stores where you can purchase everything except the moon: fruit, flowers, popcorn, muffins, steaks, cheese, caramel apples, and more.
On this occasion, I simply wanted to purchase something called a Cookie Card, a buttercream cookie and a greeting card. I made the online purchase and provided my friend's address where I wanted the cookie card to be delivered and assumed everything was done.
About three weeks later, when I wondered if the cookie was as delicious as advertised, I asked my friend about the cookie and was surprised to learn that it had never arrived. Disappointed, since I had thought the gift was a great idea and wanted it to arrive in a timely manner, I called the online store.
The first customer service rep I spoke with was extremely rude. You would have thought I was bothering her by calling her during HER WORK DAY. She asked me to repeat my order number several times, because she was clearly not paying attention to me, the customer. Finally, she said that my order was lost. Then, she said that the specific cookie and card that I had ordered were no longer available. She asked me what I wanted to do. I had to go online while I was on the phone (I had not been near my computer or an Internet connection when I made the call) and search through other Cookie Card options. Why couldn’t the rep offer any suggestions? Additionally, even if the company had not been responsible for losing the item, where was the apology, or even better, the statement equivalent to "Let me make this right because we value your business."
I asked to speak to a supervisor and was told, “You will be given the same information.” What information? The rep had not offered to do anything to resolve the lost cookie situation. Since the standard “this call may be monitored for training purposes” had been heard before the customer service rep initially came on the line, I hoped someone would hear my request for a supervisor – that I made three times! At long last, I was transferred to another rep. I explained that my order was lost and asked for another order to be placed immediately.
Once the discussion was over, the new Cookie Card chosen, and the order was placed, I voiced my concern about the first rep, and the second rep apologized and offered to send me a $20 gift card via email. I thanked her but was uncertain if I would ever use it.
Two weeks passed, and I did not receive the gift card. While I may not have used it, the fact that it was promised and did not arrive provided further proof that this company doesn’t care about its customers and repeat business.
So I called customer service again and asked about the status of the gift card. The day after I called, I received an email with a $15 gift discount code, however, it had a date that had already expired – not exactly how I would create repeat business.
I wondered what this company’s leadership team thinks about the importance of repeat business. Upon review of its website, I learned that its mission is to "provide the finest freshly-baked gifts and desserts for all of life’s moments, delivered with warmth and backed by our guarantee of excellence."
It would seem that the marketing/PR team and the leadership team are definitely NOT on the same page. All the proof you need is to read a little more: the company states its promises to customers:
• Delicious cookies and freshly-baked goods
• Only the highest quality standards
• Friendly service focused on excellence
• Trustworthy, dependable products and services
• Unique gift ideas and exclusive packaging
• The strongest guarantee in the business
If I experienced "friendly service focused on excellence" and the “strongest guarantee in the business,” then certainly there’s work to be done!
Can you guess the company? Tweet me @DebbieLaskeyMBA with the hashtag #servicefail.
Many business experts have stated time and again in the mainstream press that the way to stand out from the competition is to offer exceptional customer service. This is not rocket science, and those in the customer experience sector have been singing this song for years. But the reality is, most companies ignore this recommendation, and instead, listen to a crazy song where the lyrics are “Ignore the customer, treat the customer poorly, and don’t give a hoot about repeat customers.”
Why does this reality exist when it’s so easy to train employees to provide a positive and memorable customer experience?
Last year, I received an email from an automotive company seeking my business. At the time, I was not in the market for a new car, but since I attend the Los Angeles Auto Show on an annual basis and have visited a number of car museums in the United States and Germany, I’m always eager to test-drive new vehicles – especially those with a lot of horsepower! The email promotion advertised “Date Night” with a vehicle of my choosing. Here’s what the email said:
Dear Debbie,
On behalf of the Lincoln Motor Company, I would like to offer you an
opportunity to experience Lincoln through an exclusive, test-drive program,
Lincoln Date Night. Whether you’re looking for a stylish sedan or full-size
luxury SUV, this is the best way to get better acquainted with our exciting
2015 lineup. No strings, no obligation. The details are simple. Start by
choosing a vehicle from our 2015 lineup. On your scheduled Date Night,
drive away and enjoy the vehicle for a full 24 hours. Email or call to set
up your Date Night.
You may be thinking, what a great promotion. Who wouldn’t want to participate? I contacted Lincoln and after several back and forth emails, I learned that no vehicle was available in my area for any weekend. Naturally, I wanted my 24-hours to take place during a weekend, or I wouldn’t get much time to drive the vehicle. Alas, my Date Night with Lincoln never happened, but I hoped I would get another chance.
Fast forward a year. Last month, I received an email from Lincoln that referenced the 2016 lineup. After I responded to the email, I was told that there were no available SUV’s to test-drive and no dealerships within a 50-mile radius of my home that were participating in this campaign. To make matters worse, I could only get a car during the week. So, to recap, I was disappointed that I had not participated last year and then learned that I would have to drive 50 miles away from my home DURING THE WEEK to drive a car that I had no interest in purchasing. Some date night!
Let’s return to the concept of providing a positive customer experience presented at the beginning of this post. I was already a prospective customer with an interest in this event, since I indicated in my email last month that I had been disappointed in not being able to participate last year. So, it would have made sense for the Lincoln rep to have tried to accommodate my preferences – in any way possible!
According to Bruce Jones, Senior Programming Director of Disney Institute in Florida, “The words ‘'I’ll need to speak with my manager’ probably sound familiar to most of us, and there’s nothing inherently wrong with involving one’s manager in helping to make decisions. However, when a service failure occurs, it’s essential to resolve the issue quickly. With tens of thousands of visitors each day to Walt Disney Parks and Resorts around the world, we recognize that issues will occasionally come up. Therefore, it’s essential that employees are equipped with the tools to enable them to quickly resolve as many issues as possible on their own. At Walt Disney Parks and Resorts, customers discover that everyone is the right person when it comes to providing speedy service recovery.” Clearly, no one who interacted with me at Lincoln spoke with a supervisor – to find me an SUV in my local area – not was anyone equipped with the tools to resolve this epic service fail.
According to Annette Franz, a fellow customer experience consultant, Annette Franz (@annettefranz and @cxjourney on Twitter), “Achieving customer delight is paramount to the success of a business. Customer satisfaction is no longer enough – at least for businesses that want to thrive instead of just survive. But creating a delightful customer experience can be difficult, especially if you’re focusing solely on the customer.”
In addition, Annette writes about customer journey maps, a framework that allows you to walk in your customers’ shoes by traveling with them as they interact with your business. Customer journey maps enable you to improve your customer experience by helping to best understand how customers are interacting with you now and what areas to invest in moving forward.
Annette recommends that customer journey maps should be used to:
• Understand the customer and his/her interactions with your business.
• Build empathy for the customer and what he’s/she’s going through during all interactions with your business.
• Provide a clear line of sight for employees to the target: customers.
• Train and coach employees about the customer experience.
• Speak a universal language (customer).
When asked about my recent “Date Night” experience and the fact that it didn’t happen for the second year in a row, Annette said, “The experience for prospective customers is as critical, if not more so, than that of customers. Ultimately, if you can’t hit a home run while you’re courting potential customers, then you won’t have any customers to have a relationship with going forward. You need to ensure that you deliver a great experience at all stages of the customer lifecycle.”
So, with all this knowledge about customer experience marketing and customer journey maps, why did Lincoln do such an incredible job with its Date Night PROMOTION but such a lousy job with the EXECUTION of its campaign? Tune in next year to see what happens.
Image Credit: Digitalart via FreeDigitalPhotos.net
Recently, I visited a restaurant in Southern California that's part of a national chain. While the restaurant has linen napkins, it doesn't have table cloths. So it's somewhere between a McDonald's and a restaurant at the Four Seasons Hotel.
After my friend and I were seated, the waitress walked by our table a few times without acknowledging us. When she finally stopped at the table, I asked what the soup of the day was. Unfortunately, my question served as a distraction and stopped her from being able to deliver her standard script, "Hello, I'm (her name), and I will be your server. Can I offer you something to drink while you look at the menu?"
I ordered a cappuccino, but she said that she thought the espresso machine was not working. This seemed odd, especially since it was a sunny Sunday in Southern California, which meant that everyone was outside enjoying the sunshine. How could there not be a repair person working on the restaurant's espresso machine?
The waitress said she would check on the espresso machine and let me know. I had to stop the waitress twice as she walked by my table to inquire about the machine. No surprise, it was not working. As the customer, though, I should not have had to ask for this information. The right thing to do in this instance was to apologize on behalf of the restaurant for a non-functioning espresso machine and then offer something comparable to drink. Perhaps, she could have said, "We've got these delicious fruit smoothies, we'll provide one on the house if you'd like to try one." But the server didn't think outside the box at all.
And this was not the end of my poor customer experience. The food was delivered, but I had asked for butter and jelly to accompany my English muffin when I ordered - not a crazy request. No butter and jelly arrived with my scrambled eggs. I asked the person who delivered the food. A minute passed. Then another, and another, and finally my eggs were gone. The English muffin remained and was now cold. Since no one ever returned to the table, I walked over to the food prep area and requested butter and jelly. When the waitress finally returned to the table, she said, "I have other tables you know."
While everyone has a bad day now and then, when you work with people - and depend on people for your business in the hospitality industry - you cannot afford to treat customers rudely. It will come as no surprise that I spoke to the manager following this experience. He agreed that the level of service was sub-par, and he paid for my meal and my friend's meal. But, as many of us in the customer experience marketing sector say on a regular basis, I would be much happier to pay for a meal that accompanies quality service than receive a free meal as a result of an awful experience. How about you? And as you can imagine, this restaurant has lost a customer.
Thanks to social media, the world is definitely getting smaller. Every day, we meet new people through our social channels, whether we’re connected to them directly or via our first or second level connections. Recently, someone from 3,000 miles away viewed one of my Tweets and made a kind comment. I responded, and we realized that we’re both enthusiastic "customer experience marketing" ambassadors. A conversation followed, and highlights are featured below.
I would like to introduce Kevin Leifer to my blog. Kevin is passionate about retail, specifically aligning a brand's expectations of its customers' experiences with consistent execution in-store. With expertise in leading clients toward a transparent omnichannel (online, in-store, call center, and mobile) experience, Kevin and his company work with clients to define the desired customer experience and use a suite of tools (including Mystery Shopping, Customer Satisfaction Surveys, and Customer Intercepts) to measure that experience. I recommend you follow him on Twitter @KevinLeifer – and you can also find him on LinkedIn and on his website.
And now, highlights of our conversation…
[1] How do you explain the difference between customer service and customer experience?
KEVIN: Customer service refers to the interaction between customer and brand/associate. Customer experience accounts for all touchpoints that a customer experiences in interacting with a brand, including leading up to a purchase, the transaction itself, product use, and any service or post-purchase interactions. Much has been written about this over the past couple of years, as many people were interchanging these terms. They are distinctly different, in that customer service is one of the MANY elements of the entire customer experience.
[2] What are the three things that every employee should learn so that he/she provides a memorable and positive customer experience in the retail space?
KEVIN: Creating a positive memorable experience is part art and part science. While there are many skills necessary to do this correctly and consistently, I would narrow them down to the following:
Listening: It is imperative that associates listen to customers to truly understand their needs. Otherwise, it’s extremely difficult to satisfy those needs. This goes beyond keeping quiet while the customer is speaking. Active listening is a skill that includes confirming what has been said, asking additional questions to obtain more details when necessary, and ensuring the customer has completed his/her thought before moving on. Active listening will not only help the associate understand the customer's shopping mission, but also gain the customer’s trust early in the interaction, as the customer will appreciate that the associate is focused on the engagement. This rapport is necessary to drive the conversation and create a memorable experience.
Product Knowledge: Nearly every brand has a website (or many) dedicated to the product details for every SKU they carry, mostly accompanied by photos/videos of these products in action as well as customer reviews. Customers come to brick-and-mortar stores because they need more than what they can find online. Associates need to be well-versed in the products in their stores, having personally used them whenever possible. Once an associate understands a customer's needs via active listening, he/she will need to match those needs to the most appropriate product in the store. Without the knowledge of the store's inventory, including how items differ from each other, it will be difficult to match customers with appropriate solutions.
Suggestive Selling: Building the sale is a skill that is vital to retail, regardless of the channel a customer uses. When done well, it’s mutually beneficial. The transaction value grows, and the customer benefits from a more complete solution. While recommending the best solution, associates have many opportunities to increase the sale based on the addition of complimentary items, i.e., various accessories for a phone/camera (electronics), a belt to go with pants (apparel), low-salt Swiss cheese to go with store-baked turkey (deli), etc. The potential pairings are endless. These obvious and appropriate pairings are far different from offering every customer the random promotional/push item of the week. The conversion rate of suggestive selling greatly increases when the customer views it as a natural part of the conversation and in line with their needs (versus the associate attempting "to sell" something).
The goal of any retailer is to create a great experience today so customers come back the next time they have a need and, in the meantime, tell friends and family about their positive experience (which will drive even more traffic to the store). Consistently delivering an experience that incorporates all of the above is key to this cycle.
[3] When consumers think about customer experience marketing, they often think of a visit to a Disney theme park or a visit to their local Starbucks café. But how can other retail venues, such as, clothing stores, car dealerships, gas stations, etc., create similar experiences?
KEVIN: Both Disney and Starbucks have mastered incorporating emotion into the customer experience. Disney's messaging focuses on the magic and the lifetime memories they help create, almost always incorporating family into their imagery. Starbucks was at the forefront of the experiential economy, creating a "third place" that was neither home nor work, but a place to go to escape, if only for a short time. Both of these brands have positioned themselves as destinations by focusing on how the customer benefits by visiting them.
Other retailers can move in the same direction if they consistently deliver a unique brand experience. Defining the expected customer experience must begin with a brand promise: What can customers expect from your brand? It is critical for retailers to link the brand experience to the brand promise. Making promises you can’t deliver (or deliver consistently) is setting your business up for failure.
Apparel stores can focus on how customers feel when they wear the brand’s clothes, or convey the experiences customers should have in the brand’s clothes. Car dealerships can craft the customer experience based on their target market, i.e., sports cars, luxury cars, etc. and get customers thinking about the destinations they will reach and the memories they will make in the specific brand cars. While a stop at a gas station (typically a very transactional interaction) may never equate to a Disney visit, the intent would be to up-level the customer engagement in a manner that would promote repeat visits.
The in-store experience should then parallel and reaffirm emotions evoked through the brand promise. It all comes down to the associate, who personifies the brand. Remember, the staff (also known as Cast Members) at Disney theme parks plays a very large part in the magic felt in their parks.
[4] Bill Gates is quoted for saying that an upset customer is an opportunity to create a long-term customer. How do you interpret his quote in terms of the Microsoft brand?
KEVIN: Customer feedback is a gift. Aside from the hundreds of thousands of data points we collect through mystery shopping each year, ICC/Decision Services receives 3 million customer surveys annually from our clients' customers. Not all of this feedback is positive, nor would we want it to be. When a customer tells us about an experience that differs from his/her expectations or previous experiences, we have an opportunity to correct that experience for all the customers that follow. This feedback also allows our clients to make the situation right with the customer. It would be very easy for an unhappy customer to move on to the competition, never to return. Not only are we saving the lifetime value of the customer, but we’re also helping the client create a very positive experience from one that did not begin that way. This gives the customer a much better story to tell about the brand, encouraging more people to use the brand, shop at its stores, etc.
[5] I recently visited a well-known store in California and when I attempted to make a purchase, I was told, “Our computers are down. You’ll have to come back.” Well, my car was parked in a garage where the clock was ticking and charging by the minute. I did not want to come back to the store. I wondered why the clerk didn’t offer me a discount on a future purchase or even offer to order the item for me from the 800 number. Bottom line, I walked out disappointed with the belief that I would never buy from that store again. How would you have handled this situation?
KEVIN: There are so many options available to that associate, regardless of the systems issue at the time. My first recommendation for the associate would have been to order the item via a mobile device (while you were in the store) and have it shipped to arrive at your home the next day. While I’m certain that the associate must have felt helpless due to the systems issues, management must ensure that associates are aware of all the options available and BE EMPOWERED to make the decisions necessary to meet customer needs. Asking that customers "come back at a later time” is inviting them to shop the competition. The key is to find a way to capture the sale while the customer remains in the store not only eases the situation for the customer, but also protects the revenue for the business.
[6] What is your favorite customer service story?
KEVIN: My favorite personal customer service experience was with the kitchen staff at Disney World. My wife and I took our then 5-year-old son, Aidan, there a few years ago. It was my wife’s and son’s first visit. Like many great planners, I was on the Disney site making dinner reservations months in advance. During the reservation process, the Disney employee specifically asked for any special requests or food allergies. This alone gave me a great feeling of safety, as my son has an allergy to tree nuts. We carry an Epi-Pen at all times and are very careful with his meals.
When we arrived for dinner the first night, the chef came out to our table, greeted us, and introduced himself as the executive chef for the restaurant. He proceeded to walk us through the different food stations throughout the restaurant (it was a buffet style restaurant), pointing out the specific items we should avoid as well as those that were completely safe for Aidan to enjoy. The chef also described several of the food-prep processes the staff follows to avoid cross contamination in the kitchen. The restaurant experiences for the remainder of our trip closely followed this same depth of caring, which we completely appreciated.
We had an early dinner reservation toward the middle of our trip, followed by a dessert party at Tomorrowland Terrace, which provided an amazing view of the fireworks over Cinderella's Castle. The chef brought Aidan a plate of desserts he knew to be nut-free, showed him a binder that listed all the ingredients for each of the desserts, and asked if there was anything else he would like, offering to get it from the kitchen. Aidan asked for a brownie, which the chef hurried off to retrieve. He returned about 10 minutes later with a brownie wrapped in plastic. The chef apologized for the delay, saying he had to run across the park to get it from a different restaurant because his kitchen had run out of brownies. This was truly an above-and-beyond experience on top of very high standards set by the various on-site restaurants throughout the week. Not only did the employees go out of their way during each meal to let us know they were aware of Aidan’s allergy, but they treated Aidan like a king.
My sincere thanks to Kevin for sharing his customer experience marketing insights. What have you learned to improve your brand's customer experience?
