Category Archives: Customer Experience

Innovation. What’s Your Take?

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A term that is used repeatedly by companies, yet I am not sure we fully understand what it means, how we can nurture an innovative culture or whether it is a good or bad thing.

I read a blog recently by Pat Lencioni entitled “Is innovation good or bad” and started thinking about this interesting term and how frequently it is used or requested without there being a clear understanding of what it means and why we are doing it.

There are several written definitions of innovation but the one that I feel is the most relevant is: “Innovation is creating value by implementing ideas”

If adding value is the measure, then who is the measurer?  Is this a personal measurement?   I ask these two questions because I feel in today’s world it is so easy for people to say “we are an innovative company” or “you are not an innovative company.”  The same applies to personal beliefs. 

So what are my thoughts on how to deal with this?

  1. Review your customer survey to ensure that the “innovation” section / questions are asked in the right way so that you can specifically understand what this means to the person responding.  I believe that innovation is personal so this is crucial.  Without this you will not know what to do more of, less of or where to spend your money.
  2. Look at the employee innovation feedback and the client feedback to see if there is a correlation. 
  3. Define innovation in your organisation, sector and identify when innovative ideas occur and tell people about it, reward people for innovation.
  4. Implement a robust ‘idea to innovation’ process that aligns to your vision so that ideas become real commercial services or products that add value.

So what does the future look like in relation to innovation?  I hope more clarity, better measurement and personalisation.  To avoid thinking that innovation is about large investments but to focus on the smaller things that truly add value to your customers and employees.

Utilities: Holding On To The Energy Customer

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The utilities sector is one in crisis.  The customer is losing faith in the provider, and in turn the provider is losing the customer.  With customer loyalty shrinking and the urge to switch increasing, adapting a communication strategy to fit the needs of the customer is more crucial than ever before.    

A prime example of such a change in tactics is British Gas, who, it was reported this week, is set to close one of their five UK call centres by the end of the year. The company say that the doubling of self service transactions and the implementation of smart meters have led to a drastic change in customer communication habits, and as a result fewer customers have been calling them.  One third of all their customers, British Gas claim, now choose to communicate with the brand online.  But is this change in strategy the right move? Are the energy giants equipped to handle such a change in customer behaviour?  After all, it was only early last year that British Gas were fined by industry regulators Ofgen for the mishandling of customer complaints, a punishment the company claimed to be “disproportionate” to the damage caused.  So how is the company manage those communicating through email?

A multichannel survey carried out on over 100 UK service providers began to shed some light on their, and others in the industry’s performance.

The survey, which recorded levels of customer satisfaction on a range of communication channels, highlighted that UK energy providers in general perform poorly when handling customer queries through email.  It reported that on average 80% of customer emails were responded to, yet only 40% were considered helpful or relevant to the complaint, leading to an increase in follow up emails and calls from the customer.

So what can we take from these results? When evidence points to a change in customer behaviour, companies must not only adapt to the change, but tailor their services in such a way that creates a seamless transition for the customer.  The question remains; can British Gas and others in the industry demonstrate service that pleases customers, regardless of the channel they choose to communicate? Share your thoughts below!

An Insight Into A Big Media Player – STV

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The Percepta marketing team recently attended the Communications Breakfast in Glasgow with guest speaker Rob Woodward, Chief Executive at STV. The theme of the breakfast was ‘Digital STV – the Future’, focussing on the vision of the organisation and how television is going to affect us and the businesses we operate in, in years to come.

Rob opened his presentation by demonstrating that people who watch TV are more than just viewers – they are consumers. They dictate what they watch, where and when, and this has been heightened by the ability to stop, record and play live TV. He pointed out that this will only become more evident as the lines between television and internet become increasingly blurred.

Being one of the first channels to launch its own channel on YouTube, undoubtedly places STV at the forefront of digital media. Rob pointed to the fact that their success in this area can be attributed to the combination of excellent technology coupled with an enthusiastic and skilled workforce. Creating an effective team ethos and culture is central to the progression of the organisation, and Rob gave us an insight in to how they do this at STV:

  • Be accessible internally and externally
  • Trust instinct
  • Instil confidence in the team
  • Know when to make change in your organisation
  • Communication internally with staff is key – they must be informed
  • Implement and measure your KPI’s
  • Companies can ‘super perform’ by inspiring others to over achieve

Rob talked about the 3 pillars of STV – Connectivity, Community and Creativity. Our data rich environment means we know more about customers than ever before, and STV utilise this information to create a community with customers. At STV customer insight is key to enabling new relationships, something that Rob insists is a marketing must for all businesses who want to survive and thrive.

Facegram or Instabook: What Does It Mean For Users?

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We’ve all read how the 13 Instagram employees woke up Monday morning richer by much more than anyone had imagined! Facebook acquired the photo app company for $1 Billion, which has managed to raise quite a few eyebrows, because Instagram was valued at $500 Million on the 6th of April, 2012; that’s four days before it was bought for double that amount.

Does Zuckerberg intend to annihilate his competition, since Facebook’s strength lies in photo sharing, or does he intend to turn it into another channel to push ads through? Instagram has an impressive user base of almost 30 million registered users, but almost no revenue. I’ve read a couple of articles today that explain how Instagram puts the soul back into social sharing, making the experience more personal and intimate through the art of photography, tinged with nostalgia through multiple filters. Facebook, on the other hand, is seen as a social media conglomerate, which has managed to turn friendly social interactions between friends into highly targeted marketing campaigns for advertisers. Will Facebook keep Instagram alive as it is and as users like it or should we expect a hybrid photo sharing app for our timelines soon?

Another reason I’m writing this blog is to address the impeccable timing of the acquisition. Instagram launched its app for Android devices just last week, prior to which it was available only to iPhone, iPod and iPad users. Is this another way of staying ahead of Google, Facebook? No matter which angle I consider, it seems like a very interesting scenario, for the two companies involved, their users as well as their competition.

What do you think this acquisition holds for you as a user, and for the market? Let me know through your comments!

Who Owns Your Social Media Customer Service?

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Last year, we discussed Customer Experience Management and whether the development of its strategy should be owned by Marketing, HR or Customer Services. I came across a similar question the other day, while listening in on a presentation about social media customer service. Who should define your social media customer service strategy? Should it be the Marketing department who owns all the content linked to your brand or should it be the customer services department whose aim is to find and resolve customer concerns?

One very interesting point of view offered by the presenter was that customer service on social media is actually a part of an organisation’s PR strategy. It is as important as content and as critical as good customer relations. And just like Customer Experience Management, it should be owned by the entire company. One could argue that a representative from the marketing team could work alongside customer service representatives to define and execute search and rescue programmes for customers on social media. This is possible, of course, but is risky due to the evolving nature of the medium and the exponential exposure all social communication is subject to. 

Experts would advise you to spend a significant amount of time planning your social media strategy across the board – figuring out the budget, the approach, the tone, resources and the tools you’d need. Another aspect to keep in mind is that social media strategy will have to be revised every few months, because it is a dynamic medium; the forums, tools and your social customers are constantly evolving.

It could be that only one department in your company cannot effectively own your social media customer service, and just like Customer Experience Management, the buy in and effort put into its execution should come from your company as a whole. Where does customer service through social media sit within your company? Is your current approach working or would you consider splitting its ownership across different departments? Let me know via comments. Thanks!

Bigger Doesn’t Always Mean Better

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With the announcement by Lloyds Banking Group this week that they are about to ‘overhaul’ the handling of customer complaints came a small reminder for me from recent experiences of working with clients.  A well-recognised brand which attempts to portray confidence, professionalism and customer focus isn’t always representative of what is happening on the inside.

In this age of consumer focus and customer-driven strategy (there are many more buzz words that I will avoid), you would be forgiven for thinking that such big organisations who employ thousands of people in customer marketing, customer service, customer relations and customer insight actually have the customer at the heart of the culture. 

Not so, it would appear.  And so Lloyds’ announcement that it was about time it had ‘one customer view’ is a big move, albeit a bit late.  Now, maybe they can be cut some slack in that they have just joined three big brands in a very difficult market.  But it would seem that, even within the individual brands, delivering a coordinated and choreographed service was slightly beyond their reach.

It’s not easy to change quickly, in fact for most businesses that just won’t happen.  And a lot of the delays aren’t just about finances and technology, but in the heart of the business – it’s culture.  If you drive and reward success on call targets, sales volumes and the odd half-hearted customer feedback round on the ‘front line’ then we shouldn’t be surprised that the whole business might just be run that way.

Some of the best businesses for customer engagement are those that have always had a culture for loyalty.  Being the best for great customer experience is much more important than just being the best in a sector or industry.  The energy sector demonstrates this point;  it may be great to be the top of the big six for customer satisfaction, but if that top place only comes with around 68% satisfaction in an industry where 70% of customers said they were not fully satisfied but only 20% switched provider, it’s not much kudos.

My view. 

  • Run your customer service like a small business (especially if it is a small business).  If each person/team/department looked after their customers as if they were their very own, as if that customer coming back for more relied on that one interaction and experience, satisfaction and loyalty will follow.
  • Give your people the tools.  A customer won’t care that you have seven different teams who deal with seven aspects of their account.  If you want your customers to have a great experience, you need to let everyone see what that experience looks like.  In addition, trust those who deliver for your customers to make the right decision.  Give a policy to hide behind and an environment that doesn’t foster ‘do the right thing’ and don’t be surprised when your bland service doesn’t break any records.
  • Use customer feedback.  If you take time to find out what customers really want, and you act on those wants and drivers of satisfaction (not just cherry-pick the ones that suit you) then you will see the results.
  • Reward and recognise outcomes, not outputs.  Sometimes the smallest and simplest of reports show the greatest of results.  If you want your customers to come back, to recommend you to others and to expand the services they need from you then recognise it won’t come from a hard focus on handling times and volumes alone.

Of course, there are many more ingredients to a great customer experience.  I would love to hear your views on making your experience better.  Who does it well and who deserves your loyalty?

Service Loyalty: Does it Exist?

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We can all think of a brand or product that we are loyal to, but can you think of a service that evokes the same feelings?

Creating customer loyalty is undoubtedly an integral part of remaining competitive. Few businesses, if any, can survive without establishing a loyal customer base. In fact, the importance of customer loyalty was highlighted in a recent study which found that it can cost up to 5 times more to attract new customers than to retain your current ones.

This presents a particular challenge for the service industry. Services are unique in that they are intangible and therefore, it is particularly difficult for customers to assess the value of the service. Marketers then face the difficult task of trying to communicate the value of something which cannot be seen or touched. Further to this, if the service provider succeeds in meeting or surpassing the customer’s needs during one encounter, can it be ensured that they will continually meet the customer’s expectations in future encounters? This becomes especially challenging when the human aspect is thrown into the mix – a service provider having a bad day can evoke negative emotions in the customer and encourage them to assess alternative options. With all these things considered, doesn’t it become apparent how difficult it is to create loyalty when a service is the product on offer?

Let’s take a look at Apple. Apple has arguably the most loyal customers in the world, with some 84% of iPhone users saying they will choose an iPhone when replacing their device.   Apple followers report that their loyalty to Apple stems from two things – the product portfolio and the emotional connection with the brand. The Apple portfolio, which encompasses everything from iTunes, to MacBooks, to iPads and iPhones, is no doubt impressive. However, it is one thing to put out a great device – the real challenge lies in ensuring that a product integrates effortlessly into a customer’s life. Apple achieves this seamlessly. These powerful products coupled with the consumer’s relationship with the brand places apple at the top of the loyalty stakes. But is it possible to gain this same emotional connection with a service?

Trying to identify a service which boasts a loyal following is somewhat more difficult. Indeed, statistics show that, just 12% of utilities customers in the UK in 2011 claimed to have been loyal to a service provider. Of course this could be down the unique nature of the service industry; however, it can be argued that this lack of loyalty stems from a distinct gap between the customer expectations and the service they receive. Indeed, a recent study reported in the Harvard Business Review found that 48% of customers who had a negative service experience were less likely to feel loyalty towards that company.

From a business perspective – this raises some very interesting questions for the service industry. If providers ensured not only a high but also a consistent level of service, would they see an increase in loyalty? If they focussed on managing every touch point of the customer experience would they ever be able to create the same loyalty that consumers feel for products?

Let me know what you think through your comments.

The Multichannel Question: More or Better?

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In last week’s blog, I began to talk a little about multichannel customer communication and the positive impact certain forms can have on customer loyalty.  In particular, I picked up on the fact that face to face communication, albeit not as common as it was ten years ago, has the ability to create a strong bond between customer and company. 

This begs the question – if one such channel can influence the experience your customers have so much, should you dedicate your time and resources to this channel alone? Or should consistency across all channels of communication be maintained?

Let’s explore both sides of the argument.

A recent study of UK retailers revealed that 70% believed the in-store experience they provide for customers delivers the highest level of customer service, and is the most profitable of all their channels. 

Results from a separate study highlight that more than half (54%) of retail banking customers prefer to communicate with their bank in branch, and that this channel scored the highest for customer satisfaction (marginally higher than online communication and significantly higher than telephone communication).

Do these results suggest that UK retailers and banks should spend more on the service they provide in branch rather than over the phone?  Certainly this would vary from sector to sector; those in finance may consider the branch to be more influential, whereas energy firms may find telephone communication harnesses greater power over customer loyalty.  But can they afford to spend the time and resources on determining which channel is best for them?

On the other side of the coin, a whopping 98% of the retailers surveyed above recognised that a multi channel approach is necessary to remain competitive in the market, and more than two thirds believed that inconsistent levels of service across multiple channels can damage customer loyalty.

Results here begin to demonstrate the potential power of the multichannel approach, and its influence on customer satisfaction and loyalty.  Perhaps the retailers above could adopt the same approach to customer service for all channels as they do for their most profitable.  But will this prove equally as expensive?

Whichever side of the argument you come down on, one question remains.  Can a multichannel approach only prove beneficial if a consistent service is provided across the board?  Let me know what you think below.

Social Media Management – Personalised or Personal?

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Vodacom, the largest major mobile communications provider in South Africa, has developed its customer service strategy through utilising social channels within their call centres as new platforms to better engage with customers.  As a result, customer service agents will be able to seamlessly switch from social media interactions to another mode of contact without losing context or data.

In relation to this, a colleague of mine was recently writing about the multi channel approach to communication, highlighting the importance of face to face communication as an integral part of an overall communications strategy.

With many companies recognising the potential benefits of adopting a multi channel approach to customer service, and much discussion of late surrounding the concept of personalisation within the service industry, how important is it to be able to put a face to a name when dealing with customer service advisors?

Perhaps looking at two different examples can help provide some food for thought.

KLM Royal Dutch airlines are no strangers to social media. The company has been at the forefront of some of the most innovative social media initiatives designed to enhance the customer experience. In November 2010 it launched the ‘KLM Surprise’ programme. This involved flight attendants searching passengers’ social media profiles and meeting these passengers at the gate with a personalised gift. Following this, the airline announced its new ‘Meet & Seat’ programme, where participating passengers could view each other’s Facebook or LinkedIn profiles and use this information to choose who to sit next to during a flight. Despite this level of personalisation, the people behind social media at KLM are faceless – the company Facebook prohibits any personal details, such as names or email addresses of employees being disclosed and any tweets come from a generic KLM account. Wouldn’t we like to know the people behind the corporate accounts? Get to know the people themselves who champion these personalised campaigns?

Jaguar Land Rover’s approach to social media management, however, is a different one. Employees who manage and contribute to the JLR UK PR Twitter page are named, which they believe creates a much deeper connection between the brand and the customer.  Furthermore, Jaguar Land Rover deploys a strictly personalised approach with each individual client. When a client first interacts with the brand they are assigned a dedicated advisor who will manage their case from start to finish, regardless of the number of interactions the customer may have with the brand. The customer knows their dedicated advisor on first name terms and is given their email address and direct line so they can call their advisor directly. But does customer service need to be this personalised? Should it matter that we know who we are speaking to as long as the overall service is efficient?  

Some may argue that you do not need to who you are interacting with as long as you are pleased with the overall service but for me, it is the human aspect that makes these interactions that little bit more pleasant. It begs the question – why would a company want to be known for personalisation but not for being personal?

Customer Expectations and the Impact on Service Quality

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The results of a recent study conducted by a leading professional services company revealed an interesting insight into the differences in perception of services to customers. The study surveyed nationals of different countries living in Dubai, and while nearly 60% of the respondents felt customer services in Dubai were better than that in their home countries, 85% of British expatriates felt that it was worse than customer service in the UK.

This stark difference in the quality of service as perceived by customers is obvious in this case. Britain’s high expectations of the quality of customer service has brought about a change in industry, with UK brands opting out of outsourcing customer services and bringing them back to be based out of the UK. Brands are also investing resources and training in their customer services, with Tesco (Britain’s top retailer) adding 20,000 new customer servicing roles over the next couple of years.

We know that Britain expects a good quality of servicing, but how fast is the rest of the world catching up? There has been a lot of debate around outsourcing and what 2012 holds for this sector. Many companies continue to work their customer services from overseas, and invest the time and resources to instil brand cultures and values in customer service agents. With companies aiming to improve and customers expecting more, this seems like a good place to start a discussion about customer expectations and loyalty, and how companies can strike a balance in cost and quality of the services provided. Do companies tailor their services to suit customer’s expectations or are they looking ahead to truly understand their customers, predict shortcomings and address issues before they affect customers?

What do you think, from your experiences in the sector and as a customer? Let us know in the comments section!