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User Experience

Business, Customer Experience, Retail, Service Design, Shopping, User Experience

Making Customer Experience Personal. One Person at a Time.

May 19, 2013
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These are early days for Customer Experience.In the same way a gardener is sometimes surprised at what bursts forth from the ground, customer experience is beginning to take form in front of our eyes. We are still figuring out what the difference might be between customer experience, user experience, usability, omni-channel, cross-channel, and multi-channel so we have to take care not to wander too deeply into the world of buzzwords and biz speak when we try to talk about the very human relationships of customer experience.

Where I work we have created a slide that takes a position on each of these topics just as a conversation-starter with prospects and clients. This serves two purposes; 1) It let’s us know how our client thinks about such things and 2) It gives us all a common, shared lexicon when discussing these things.

So, for the purposes of discussion, here are some definitions:

CUSTOMER EXPERIENCE is the sum of all experiences a customer has with a brand over the duration of their relationship.

USER EXPERIENCE involves a person’s emotions about using a particular product, system or service.

USABILITY is the ease of use and learnability of an item. The object of use can be a software application, website, book, tool machine, or process.

OMNICHANNEL weaves the touchpoints of products and services of the brand into a seamless fabric of all phases of the customer’s brand experience.

CROSS-CHANNEL has the ability to see all of a customer’s information across all channelsand enables more personalized offers based on their brand relationship.

MULTI-CHANNEL is simply having multiple channels through which you buy, market, sell, and fulfill.

Not perfect, perhaps, but certainly a good way to level-set a conversation around customer experience.

Speaking with Human Beings.

 

 

In a recent keynote speech, Micah Solomon did a very nice job of talking about customer experience in a refreshingly conversational manner that helps us remember this is about relationships with real live human beings. What I like about this presentation is the personal, conversational tone that supports the subject Micah is presenting. It is, at once, a presentation that is a personal sharing with the audience…much of what a well-executed customer experience strategy aims to achieve.

Customer Experience Keynote Speaker: Customer service speaker Micah Solomon on customer loyalty

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Customer Experience, Service Design, Uncategorized, User Experience

The Visionary Executives Who Are Pushing Customer Experience and the Value They Are Creating.

May 6, 2013
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What is a company’s true source of value? Is it the products they make or the customers who use them? Yeah, it’s the customers.

So why then do otherwise smart people consider Customer Experience as anything less than critical to their business?Consider the Wall Street-defying announcement Amazon recently made that caused Michael Hinshaw to declare on the MYCustomer blog,“When an incredibly successful, Fortune 100 company says customer relationships matter more than short-term profits, it should inspire us.”

This is a story about leveraging digital innovation to deliver customer delight.

In my experience, the senior executives who understand Customer Experience and are running with it tend to be visionaries. They see where business is headed and how very much it has changed in the last three years alone and they welcome that challenge. They see traditional mass marketing being replaced by active relationships with their customers that are very, very different from the way they were doing business yesterday and they embrace that change. And perhaps most importantly, they are making the correlation between the experiences customers have today and business performance and the line of sight to increased marketshare and share of wallet.

Here is why I say these people are visionary, one of the biggest challenges in implementing a Customer Experience strategy is that many of the benefits are long term and these are different days for businesses. Consumers? People don’t consume a brand, they join it and that means developing a relationship…and that takes time. But these changes are necessary if a company is going to succeed and thrive in the years to come and they can see that but many others do not, or are at least, resistant to change.

This means that these senior executives boldly state that their strategy is not going to yield business results this quarter and that is often a difficult message. (Think of Jeff Bezos’ stunning declaration that he is willing to forgo short term profits for a richer customer relationships).  But the value of customer experience is not unlocked by simply looking at the number of widgets sold in any given month. Increasing marketshare and share of wallet through Customer Experience is a strategic initiative and it is important to understand that results will occur in the future, perhaps one or two years out, and build that expectation into the financial models.

So, is it all worth it? In a word, yes. In the recent report, “The ROI of Customer Experience” [PDF] by Peppers & Rogers and TeleTech, they report that the business impact of Customer Experience can be enormous. Fred Reichheld, a Fellow at Bain & Company who helped develop the Net Promoter Score (NPS), has found that a 5 percent improvement in customer retention can yield between a 20 percent and 100 percent increase in profits across a wide range of industries.

In the same report, Mark Grindeland, SVP and Chief Marketing Officer of TeleTech says, “Companies that are able to differentiate the customer experience and generate related business performance improvements are the ones that will win in the future.”

In the book, “Outside In: The Power of Putting Customers in the Center of Your Business”, proof is offered for the financial wisdom of pursuing a strong customer experience strategy, “Customer experience is, quite simply, how your customers perceive their every interaction with your company. It’s a fundamental business driver. Here’s proof: Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew twenty-two percent. In an age when customers have access to vast amounts of data about your company and its competitors, customer experience is the only sustainable source of competitive advantage.”

And, of course, there is this compelling evidence from Watermark Consulting’s 2013 research that shows that Customer Experience leaders outperform the market.

These are the business leaders who are creating Customer Journey Maps and Experience Maps to assess where the areas of improvement are. These are relatively inexpensive activities of looking at their own organizations from an outside-in perspective of a customer. This work is very strategic and provides a clear roadmap of where customer experiences need to be transformed and business processes optimized to increase market share and share of wallet.

“The ROI of Customer Experience” tells about how Federal Express has succeeded in linking improvements in customer experience to increases in financial outcomes. (Not surprising that a logistics company would be amongst the first to figure this out). As part of a multi-year transformational customer-centric journey, FedEx has devised its own methodology around the economics of customer behavior and has assigned managers to different customer segments where they are responsible for growing the value of those customers. It states that, “FedEx has ben able to draw upon a variety of customer, channel, and operational information, including customer feedback, to make improvements to its customer experience across the various channels it supports…FedEx used a customer value database and an integrated Web platform to deliver more relevant messaging to small business executives. While the average U.S. company has a NPS of 15, FedEx finds itself in elite company with customer experience leaders like Apple and Costco, whose NPS numbers are consistently higher than 50.”

In Bob Garfield and Doug Levy’s new book, Can’t Buy Me Like, the authors make a deft observation about marketing that revolves around the time honored “target audience”. They maintain that marketing is about relationships but a target is something that one shoots at and an audience listens passively. Not exactly representative of a relationship in the pervasively connected world of social media, is it?

Remember, people don’t consume a brand, they join it.

Getting back to those visionaries who see the value of customer experience in their business, how do they even get started course correcting their organization that is very often still operating like a mass marketer? Their role is that of a diplomat in many regards, speaking the language of a CMO but also the language of the CIO in order to deliver the ways and the means to deliver improved customer experience to increase marketshare and also share of wallet. Customer Journey Maps and Experience Maps are a good first step towards seeing their companies from a customer-centric, outside-in perspective. Often, they will find that there are efficiencies in customer experience between the silos, things that the business has heretofore been blind to but now possess new actionable insights.

Customer experience is very much an initiative that touches all levels of the organization and their customers and applies a careful blend of people, processes, and tools to gather and act on customer insights effectively. In doing so, they are positioning themselves to leapfrog their competitors by applying customer-centric business metrics and preparing their businesses for measurable success and that, in my book, is visionary.

 

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Customer Experience, Design, Service Design, User Experience

Swift Air Media’s In-Flight Customer Experience Goes Glocal at 30,000 Feet

March 15, 2013
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A customer experience at 30,000 feet presents an interesting situation. For one, she is feeling like one very captive customer, sometimes one very bored customer, and very often, both.

 

In-flight movies and beverage service have helped assuage that but what about in-flight wi-fi?

 

Yeah. What about that?

 

 

True, you can now work while crossing the Atlantic but it is arguable that this is indeed a good thing. On many flight flights wi-fi is a paid service which means the customer has to have enough of a motivator to pay for wi-fi. Somehow paying to do work is a something of a conceptual stumbling block to an impulse purchase. But what if what you could do online would actually help you once you arrived at your destination? What if you could discover new places to stay, eat, and have fun in the city you are about to land in a short amount of time? Making in-flight content relevant for air travelers is exactly what SwiftAir Media is aiming to do with their launch of their native commerce platform for corporations and publishers.

Scott Terrell of Swift Air Media told me in an email, The publishing revolution is really about giving people the information they need and want given their current location and environment. We’re simply applying that to the inflight travel guide experience — telling people what they should do, see, and buy in the city where they’re about to land.”

Back in January 2011 the concept was born:

With Southwest Airlines as their first client, SwiftAir Media provided them with the platform and services to create their own publication to sell direct to the in-flight consumer. Publishers now have a workflow software and can help both with SwiftAir’s media and services division to develop destination specific in-flight content. According to a recent market research report, “Global Market Aviation In-Flight Entertainment and Communication Market (2012 – 2017) the in-flight entertainment and communication market will be worth $3 Billion by 2017. Fair enough, that’s the business side of the equation but what can the customer get out of this?

Imagine you are flying from Phoenix to Chicago, you get on wi-fi on you iPhone and it looks something like this. Offers, deals, and promotions for the Chicago area, updated in real time and right on, say, your iPhone. Scott said it like this, We’re allowing Southwest and other brands to reach their customers and tell relevant stories to them because of our Native Commerce Platform and the E-commerce functionality it has. So people can explore, read, save, share, and buy while in the air, and then again once on the ground.”

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A notable development on device usage tells us that mobile devices are the preferred device in-flight, which makes sense because who, except those fortunate enough to be in first class, have enough room for anything other than a tablet or a smartphone? We know that Apple has an 84% share of people who connect to GoGo wifi. In an article  from TabTimes entitled, “Bye bye laptop” we learn that most users of Gogo’s in-flight Internet service now use tablets and smartphones to connect to the Internet followed by laptops. Article here: Bye bye laptop? Most users of Gogo’s in-flight Internet service tap iPads and … – TabTimes

Let’s take a look at how these activities break down from a customer usage perspective, again, from the good people at GoGo:

Gogographiclg

Let’s look at some current in-flight trends. Much of it is focused on passive viewing like the extended viewing times that Virgin Atlantic recently announced, “The move is an extension of the boarding to disembarkation total entertainment package that the company introduced on several of its routes last year, and it means that on an average five hour flight, passengers can benefit from screened entertainment for about an extra hour. It is a departure from the recognised system of only commencing entertainment after the aircraft has taken off and the obligatory announcements have been made, and turning the service off again as much as 20 minutes before the aircraft lands.”

But that content has little if anything to do with the specific destination the traveler is going to and providing content that will be informative and helpful upon landing which is why what Swift Air Media is offering shows such promise. This is basic customer experience / service design thinking: know your customer and add some value in whatever context you can do so.

ABOUT SWIFT AIR MEDIA: SwiftAir is an innovative in-flight travel guide designed to provide air travelers with virtual tours, special deals and insider information about their destination city. The complimentary Web-based technology is viewable on board flights equipped with a Wi-Fi connection. Revolutionary to the marketplace, SwiftAir offers key benefits to their partners – both vendors and airlines – as well as to the end-users of the platform.

As a vendor, SwiftAir provides a fresh and exciting entry point to reach an engaged audience who will be more receptive to learning about new products and services. Being featured on the SwiftAir platform, businesses can help consumers shape their travel experience while gaining exposure to a new and captive audience.

As an airline, partnering with SwiftAir can provide unmatched value to passengers by enhancing their on board experience. Additionally, it can serve as a secondary revenue stream to help recover the costs of providing Wi-Fi to air travelers.

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Thank you. Enjoy your flight. ;  )

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User Experience

Why Top Execs Are Starting to Care About UX Design.

August 1, 2012
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Very good video with Jesse James Garrett of Adaptive Path which describes the path of User Experience to Customer Experience.

What do you think? Do you need your customers more than they need you?

 

Recommended Reading: Repairing a Fragmented Customer Experience

Recommended Reading: Customer Experience – A Daily Guide for Managers

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