Archive for the ‘customer satisfaction’ Category

Want customers to help your business succeed? Start at the end.

Friday, August 28th, 2009

What do you really want?

For most businesses, there is a business goal. Maybe it’s to maximize profits. Or it could be growth: increased revenues or a larger customer base. But at the core, you have a business goal. The mistake I see companies make when they decide to start paying attention to their customers is that they don’t start with the business objective. Instead, there’s a vague “improve” customer service or some such mantra.

If you really want to effect change that will impact your bottom line, there’s an order of attack that will increase your odds of success. Think of it as a logic problem:

1. What’s the Business Goal? Yes, this seems obvious, but humor me. You can’t accomplish your goals unless you know your goals, and everyone on the team agrees just what the goal is. Start here.

2. What’s the Desired Customer Behavior? In order to achieve your business goal, you must define a “desired customer behavior.” For example, if your business goal is to increase the size of the customer base without increasing your marketing budget, you need to drive your customers to refer your company to others more often.

3. What’s the Desired Customer Perception? To drive a desired customer behavior, you must create a desired customer perception. That is, you  must convince your customers to think about your company in a certain way, so that they will act in a way to achieve your business goals (e.g. tell others about you; stay longer; buy more).

4. What’s the Desired Customer Experience? In order to create that perception, you must provide a customer experience that delivers in a specific, positive way, everytime. That means each communication, each interaction, each channel must consistently leave the customer with a desired impression or emotion. What that impression is depends on your business goal and brand promise. Any experience, big or small, that doesn’t deliver will reduce your chances of achieving your business goal.

5. What’s the Current Customer Experience? Only after working through those issues of business goal, brand promise, desired customer behavior and desired customer perception is it time to get moving on your existing customer experience. Now is when you must take steps to objectively analyze your current customer experience, and begin to incrementally improve upon it in order to achieve your business goals.

I’ll talk more about the actual analysis and improvement steps in another entry. The important thing here is to first take a breath and figure out just what you want to have happen before you start down the customer experience path.

Now’s the time to do something…anything!

Friday, August 14th, 2009

I have been talking to a lot of small and mid-size companies over the last few weeks. Many are hurting. I’ve found it surprising that so many agree that right now, shaping desirable customer behavior is not just important, but possibly life and death to their busiensses. Whether it’s better feedback for what customers are looking for, more clearly understanding what the current customer experience “looks like” to customers, or incrementally improving different aspects of customer experience to drive higher retention, referrals or cross sales, most business owners get that they should be doing something.

And that’s when I wait to hear just what they are doing. And I wait some more.

It seems most business owners don’t know where to start. We, of course, have some strong opinions on that, but the main point here is that – somehow, some way – it’s time to do something.

Do anything! Talk to customers, review an internal customer process, look over your billing statements. In other words, get started! If you’re waiting for a sign that customers are the most important part of your business, just take a look around. It should be obvious.

And once you start down the road to improving customer experience, a couple great things happen. First, you almost immediately start finding ways to improve how you deal with customers. You also start to make customers a focus in your biz. And that can only help you moving forward.

So don’t wait. It doesn’t really matter where you start. The important thing is to start.

To survey or to observe: which leads to a better understanding of your customers?

Thursday, August 6th, 2009

I contend that surveys – that is, specifically satisfaction surveys – do not give you the information you need to take real action to improve the customer experience, as I argued in this Retail Customer Experience article. Rather, it is only by focusing on behavior that you can glean the future inclinations of your irrational customers.

But do others agree? Check out, and participate in, the debate here.

Report: customer satisfaction now better. Better than what?

Friday, July 31st, 2009

There have been a few stories about how some businesses across industries – like the Cheesecake Factory, Sprint, and US Airways – have been improving certain customer practices that have made a “dramatic” impact on customer satisfaction scores (as shown on the ACSI site here). Here’s my two cents:

The main reason these companies were able to bump satisfaction substantially (up to 12%) is because they were so poor at serving (or caring about) customers to begin with. When a large percentage of your customers don’t really like anything about dealing with your business,  some simple service tweaks can be enough to make a difference. These aren’t companies with satisfaction rankings in the 90’s or even 80’s. More like 59% of their customers were “satisfied,” whatever that means.

So when you see how businesses are improving satisfaction, consider the context. If the starting point is bad service and disillusioned customers, there’s nowhere to go but up.