Tag Archives: CX

Are you wasting money on Customer Experience?

With 90% of CEO’s prioritising Customer Experience as a leading business practice(1), financial scrutiny on performance will only increase to retain board confidence and commitment. However, 90% of programmes are failing to deliver (2) their potential.

How can you be sure Customer Experience investment is correctly prioritised?

Most manuals and professional CX speakers would advise practioners to fix what’s upsetting customers and move on to making a point of distinction on what they rave about. Which should push up satisfaction and recommendation scores.

However, both these customer experience strategies require investment to succeed. What if there is no budget? Can you ‘hedge’ the required investment against incremental sales/profit this focus will deliver? It’s probably not that safe to do so. Evidence shows that only 1% of share of category can be reliably attributed back to these conventional measures (email me if you want more on why this is).

A more linear approach is to show the reduction in ‘bad demand’ operational costs associated with managing activities creating negative feedback on specific touchpoints. This would show an accountable reduction in costs. Albeit costs created by a bad customer experience in the first place. So should they be classed as a win, or an own goal? Either way, it’s a start.

This gives you the two more common strategies for CX growth pursued:

  1. Improve that which the business is poor at but customer’s value (also known as the ‘Fix’ phase)
  2. Leverage that which the business is good at and customer’s value (also known as ‘Build’ phase)

The shortfall here is that the hit list for these strategies rely on customer’s feeding back about what’s great and what’s not. But what if customers don’t vex about an issue? And why wouldn’t they –  because it’s not on their radar? What if there’s nothing wrong or right about an experience but because it’s not important to customers it never gets raised? With most VoC set ups if you don’t hear about it often it gets considered not worth looking at.

A conventional approach focuses on capturing feedback on customer’s sentiment and intention. But as proved on most voting days, intention and behaviour are often distant relatives. Whereas, understanding actual behaviour caused by Customer Experience is evidence of what customer’s do.

So rather than only asking how satisfied a customer is with an activity or experience, or which activities they are satisfied with or otherwise, understanding how important an activity is to a customer’s share of category commitment brings behavioural based measurement in to CX. Actual behaviour is a significantly more reliable indicator of decision making than intention.

This moves the focus from knowing some of what’s going on, to knowing everything

With fix and build programmes linked to CSAT and NPS inferred scores, there is a read on, ‘what we are good at and what we are not so good at’. By complimenting this with behavioural change insights we are now answering, ‘what customer experiences matters most to a customer’s decision to commit share of category’. This adds the missing commercial dimension to CX performance management and with it reveals two further CX strategies for practioners to pursue. As well as sharpen the purpose of the ‘Improve’ and ‘Leverage’ strategies too:

  1. Monitor and refine/remove CX which the business is poor at and does not impact customer’s decision to commit to us
  2. Improve CX which the business is poor at but impacts customer’s decision to commit to us
  3. Leverage CX which the business is good at impacts customer’s decision to commit to us
  4. Explore the potential in CX Opportunities which the business is good at but does not impact customer’s decision to commit to us

These are shown in Lexden’s MILO matrix below, which enables prioritisation of CX investment.

Lexden’s CX MILO Matrix

The ‘Monitor’ strategy identifies investment which is under-performing and not needed (or as the headline state where a company is ‘wasting money on CX’).

With conventional feedback this insight isn’t unearthed because it’s the customer experience that doesn’t matter to customers, so it rarely gets asked for or feedback provided – whether it’s good or bad. But if this collated less meaningful activity can be refined, reduced or removed and rationalised costs redeployed to the ‘Improve’ and ‘Leverage’ strategies.

Which leaves the ‘Opportunity’ strategy, which provides untapped potential for new areas to consider. These could provide future advantage in a maturing CX-led organisation if reshaped and made important to the customer’s decision making or outcomes fulfilment.

You may be questioning this only works if you know what activities matter in the first place, and their relative degree of importance. If you were starting from scratch that would take longer and cost more to work out than would be of use.

Fortunately, the missing golden insight is already available

Leading CX academic Dr Professor Phil Klaus developed a quality of experience measure which identifies which customer experiences impact customer’s behavioural decisions. In conjunction with Prof Klaus, we work with this leading edge CX insight measure, which means we can now add ‘behavioural change’ insight to existing NPS and CSAT measures to create the missing commercial rigour CX deserves.

With ten years and over 1,000 case studies complete, this award-winning insight informs companies on ‘what matters most’ and ‘what doesn’t matter at all’ when it comes to customer experiences impacting share of category decision making. By identifying the most important 25 customer attributes and experiences (refined from a total of 300), the ‘Experience Quality Measure’ accounts for up to 88% of a customer’s decision making. Making it the most reliable CX measurement available.

Each individual study completed highlights the specific set of activities and their relative importance for that company. No two outcomes are the same making it the unique CX DNA of a company. The principal advantages of this approach are as follows:

  • It doesn’t matter which CX measure you have in place already, or which VoC platform you use, we run a one-off separate study alongside what’s already in place.
  • The volume of customer contacts engaged to arrive at the experience measure is around 125, so it’s a much smaller study all round, than a VoC programme commitment
  • We are now into our third year working with the approach and translating the academic science into a more workable and accessible insight source for clients to prove profitability from CX
  • The measurement won’t shift overnight, because it’s based on actual behaviour change, not just opinion. So, we recommend capturing and tracking progress annually
  • Competitor data is also captured which means we also know 1) who else has your customer’s share of category and 2) what customer experiences attract your customers to them
  • This insight can be identified and the MILO matrix complete within 8 weeks

So, there you have it. The ability to identify what drives share of category rather than just favourable commentary.  The confidence to pull out from your plan those activities which matters least. The insight to keep ahead of your competition in CX. Which means CX leaders can demonstrate to budget holders that CX investment isn’t being wasted. In fact, with all four of the MILO strategies pursed it’s driving profitable growth.

If you’d be interested to see how it works with a case study or how easy it is to add this essential CX insight to the CX governance, please contact christopherbrooks@lexdengroup.com 

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Lexden helps deliver effective customer experience insight, strategy and solutions for clients seeking sustainable profit from customer experience. If you’ve got a CX challenge, see if we can help.

(1) Bain (2) Dr Professor Phil Klaus
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Customer Lifetime Value – can you solve the formula?

Can you solve the formula
to the right?
If you paid as much attention to algebra as me in maths lessons at school, probably not.

That said, I can almost guarantee that you do understand the formula (or at the very least will by the end of this blog!).

In my time working on a very progressive service initiative in the commercial insurance area, the organisation I was with were responsible for a huge upturn in their new business, rate and retention results by understanding that just because a customer doesn’t choose you this time, doesn’t mean they will make the same decision the next time round.

What will dictate their next decision will be the feelings and associations they have of you and your brand as a result of the experience you gave them.

I listened in to a call once where a city Broker spoke with our Trader to say he was placing a £900k risk with a rival insurer after three months of effort on our Traders part. I’ll never forget the startled reaction of the Broker as our trader told him:

“not a problem, well done, you’ve done a great job to get that price. We’d love to speak with you about it again next year, I’ll put something in our diaries as a reminder”.

Not only did we win back the risk the next year, but we got a lot more incremental business in the following 12 months from the Broker.

Moving on to an example of a slightly smaller value, my mortgage company with whom I also have a credit card and a debit card (let’s call it a 321 debit card) recently failed to apply the new rate I had chosen following my initial two year rate coming to its end. They said they hadn’t received the letter, I knew I had sent it – it was their word against mine and as a result of the mistake, I had been overpaying for three months.

As the conversation unfolded, it became clear that the experience I had expected; application of the new rate going forwards, and no reimbursement for me, wasn’t going to happen. In fact, the excellent, empathetic, and well trained advisor applied and backdated the rate, taking the corresponding amount of money off my next mortgage payment.

Am I likely to move my mortgage or any of my cards now? Not a chance.

We at Lexden take the same view. We feel that when deciding whether to set out on a CX journey or not, the last thing any organisation should do is call in the consultants to decide for them.

It sounds counter-intuitive coming from a CX consultant, but it’s something that we beleive must be owned and driven from within rather than outsourced. It can lead to a complete lack of ownership of CX within the business.

Whereas we find the most fruitful engagements are those with clients who have a clear desire to deliver excellent experiences. We do of course help them understand what matters most to their customers and how to amplify their authentic difference through customer experience, but throughout we are ensuring ownership, drive and knowledge rests with our clients.

Our experience of this approach has led to client’s inviting us back in and welcoming us rather than judging the value of CX support provided, time after time. This is my understanding of customer lifetime value (even if I still can’t quite decode the equation!)

Posted by James Edmonds, Senior Consultant, Lexden

Lexden helps deliver effective customer experience strategy and solutions for clients seeking sustainable profit from customer experience.

If you like what you’ve read please sign-up to Lexden’s ‘Customer Experience’ Update for monthly ideas, inspiration and insights to improve your customer strategy endeavours. 

At last! A complete listing of all Customer Experience Conference Events

Earlier this week, we hosted an impromptu gathering of CX leaders for an afternoon tea and a chance to share best practice and trade battles scar stories. One of the areas discussed was the growing number of Customer Experience events and conferences now running.

Some said they went often, some not at all. But all agreed there are so many now it’s difficult to keep on top of what’s happening and which events you will get the most value from.

We worked out that if you attend all events you would need a budget of more than £200,000 and over 100 days on the road each year. Increase the budget and you could be travelling from Dallas to Dublin to Dubai to furnish your CX knowledge banks!

With Customer Experience being such a popular and potentially profitable business model, the signs are that the conference circuit will only be getting busier!

Which is why we have decided to compile a complete list of all Customer Experience events provided by event promoters and vendors in one place. That way anyone thinking of attending can compare and plan where to go more easily.

Initially, it will be a listing with some basic criteria highlighted (e.g. sectors, top speakers, location, dates of events, prices, formats, link to websites etc.). But over time we intend to extend the criteria and gather ratings and opinions from those who attend. All of which should allow anyone looking to attend an event a more informed decision.

If of interest to you, sign up and we will send you the listing.

We will be producing a free quarterly listing of what CX events are coming up. We may eventually set this up on our website with filters so you can search based on sectors, dates, prices etc. Our first listing will be released later this month.

Why attend CX events at all? We support attending the right events. Having spoken and attended before, I know if you pick the right event it will be jam-packed with insight, ideas and inspiration. You can meet some wonderful people in CX there who are generous with the benefit of their experience and will walk away with learning relevant to your business challenges. All of which adds up to a day well spent.

But pick the wrong event and you could be listening to other people’s worlds failing to connect them to yours, feel passively sold to by vendors, find yourself edging into a corner to lunch away from the over-networking crowd and eventually decide that the ‘not quite so urgent’ email needs immediate attention and leave early.

So why are we doing this? We are independent Customer Experience Consultants and not associated with any group or vendor running these events. Those who know us know we like to help those in CX improve their skills, what they do and what positive change they deliver. So, whenever we see the opportunity to do this we endeavour to help.

 

 

 

Lexden delivers effective customer experience solutions for clients serious about sustainable customer relationships.

If you like what you’ve read please sign-up to Lexden’s ‘Customer Experience’ Update for monthly ideas, inspiration and insights to improve your customer strategy endeavours.

Lexden’s top 3 Customer Experience moments of 2016

As you would expect from a Customer Experience Consultancy, we collect examples of good and bad practice in customer experience as sales execs collect air-miles. So the office conversation often turns to something we’ve seen or experienced and what impact we feel it has on customer’s future commitment to that brand.

We took this ‘I wonder’ a little further and created two twitter characters to collect stories from people too. Grumpy persona @vexvox collects and distributes stories from others on the woes of customer experience, whilst his upbeat cousin @fondfox shares applauds stories of positive customer experience.

If you want to here what people have been saying about your brand, let us know

Keeping the mood on customer experience light, we’ve collated our favourite three experiences from last year. We hope you find these examples inspirational and can see how the ‘themes’ involved can be taken back and embedded in to your own programmes.

#1 Adidas (Christopher, MD, Lexden)

July 2016 and walking down the Champs-Elysee my son spots an Adidas store. Despite his heart being set on a pair of Nike ‘sock’ football boots for his birthday the following month, we go in.

adiddas-2

In the store, we were approached. When we mentioned the sock boot the assistant said the only way to know if the Adidas boot might be better is to play football in them. At which point he got a pair out which my son tried. The Adidas assistant also got out a ball and turned the shop into a training ground; passing, lobbing over clothes rails and shooting at walls. My son stated it was one of the highlights of his time in Paris. The next month he switched his allegiance and requested a pair of Adidas sock boots for his birthday. Link to full article.

#2 Wordery (Leanne, Office Manager, Lexden)

wordery2One of the gifts Leanne ordered up as a Christmas present for a nephew was an Aladdin, popup book which also played music. Although on opening it her nephew found it didn’t play anything. Fretting about how to get it returned as it had been free delivery, Leanne contacted the online retailer, Wordery. Their returns policy couldn’t have been better. They apologised, didn’t question the legitimacy of the dispute, explained even though it doesn’t happen often a replacement was in the post already. Not bad.

But what about returning the faulty book? Returns are proving to be a killer pain point in customer experience for online companies. Not with Wordery, they said no return of the book was needed, just a copy of the ISBN page details. What really impressed us was they asked if Leanne could drop the book off at a children’s home or hospital to enjoy.

#3 Mercedes-Benz (James, Senior Customer Experience Consultant)

You may be aware but Mercedes-Benz are one of the best performing customer experience brands in the world. Their CX drives contentment, commitment and contribution from their customers. This example highlights why.

mercedes

https://mercedes.citnow.com/vxxHgsLNh9S link to service video.

James’ took his car in for a service. Most of us worry about what the costs will be and part of the anxiety is created by the ‘behind closed doors’ set-ups of garages. The layout is no different at Mercedes-Benz, but recognising this anxiety and wanting to reaffirm their transparent approach to servicing, they sent a video of the service being conducted through. It’s not a new idea, Pizza Express brought the kitchen experience into the restaurant a few years ago. But it’s still a powerful one which creates confidence in the quality of the service and therefore overall brand trust.

We hope you enjoy these varied examples from our 2016 vaults.

If it floats your boat, our monthly Customer Experience Update contains similar content as well as the latest developments in Customer Experience, successful case studies and interviews with leaders. You can the vanguards in customer experience, and subscribe for free here.

cb2

 

 

 

Lexden delivers effective customer experience solutions for clients serious about sustainable customer relationships.

 

Can you really coach Customer Experience?

Because I’m totally sure you can.

A recent visit to Bluewater involved buying some new shoes for my wife. On inspecting two different colourways of the said shoes, we inadvertently swapped their designated positions on the wall display. Having worked as Floor Manager between College and University (a good few years ago) in the Nike store in Brighton, I understand that visual merchandising does have a purpose, but what happened next led me to ask the above question.

As we stepped back to review the range again, an employee of the shop then walked over (without asking us if we needed any help may I add) to stand in front of the shoes, and moved the two shoes back to their original positions, while being so far in to our personal space that we had to take a couple of steps back.

No big deal really, but I can think of at least six very simple things that were wrong from a CX perspective within this ten second (non) interaction.

How did it impact our behaviour? We went and got the shoes at a direct competitor.

The thing is though, if I had gone through this with the assistant, I really don’t think he would have for one second understood why any of those six points were a poor experience, and I think his response would have been something like ‘well the shoes have to be in that order…’.

Saving the conversation about customers’ having poor experiences because internal rules and processes for another time, can you really coach Customer Experience to someone this oblivious to what’s best for the customer at any given time?

Satisfied at having a new customer experience to talk about, I began to think back to my time in the Nike sto
re – did my customers have poor experiences under my watch when I was young and single-minded? Well, yes, they did.

I can remember two instances. Firstly, obsessed with my sales figures vs. the 1st floor of the shop, I would routinely send customers upstairs for refunds so my figures weren’t affected. Secondly, I remember closing the changing room to customers once, just so I could get in and out to access mannequins/shelves/fittings etc. to work on merchandising. The area Manager turned up that day, and at the time I scoffed at his disgust that I was making people go upstairs to try on their clothes – of course now practising customer experience I acknowledge how right he was!

So, here I am now able to recognise and improve poor customer journeys – what happened? Was I coached, or did I just learn through osmosis, working in organisations who care about the customer? A mixture, is the answer. Formal coaching has had a place, customer focussed programmes and developing a Customer Experience Centres of Excellence have too, as have particular managers, whom I had great respect for.

The true answer though, if there is one, lies for me in recruitment (and the resulting culture). While my conclusion means that I slipped through the net as someone who didn’t really understand the value of every interaction with the customer at the time.

If your recruitment programme has genuine focus on recruiting staff (consistently and at all levels) who understand that everything they do has a positive or negative emotional impact on the customer at each touchpoint, the organisation itself will begin to take the shape of one that customers want to join, stay with, and talk about positively.

If you run or are involved in a customer experience programme consider how central are Recruitment to that? do they look for people with suitable customer experience tags, or individuals who can talk about emotive and commercial impact in the same sentence? I’d argue the former gives you shoes laid out in the right order, the later a deep understanding of why customer experience matters.

With 89% of companies prioritising customer experience in 2017, attention to all impacting areas on CX success come in to play if you want to drive success. If you’d like to know how to recruit the right customer experience types, contact us and we will let you in on the secret.

Posted by James Edmonds, Senior Consultant, Lexden.

Lexden helps deliver effective customer experience strategy and solutions for clients seeking sustainable profit from customer experience.

If you like what you’ve read please sign-up to Lexden’s ‘Customer Experience’ Update for monthly ideas, inspiration and insights to improve your customer strategy endeavours.  

There’s always a better way with CX

signs 2Inspiration for CX improvements are all around you. Which is why CX practitioners, like creatives before them should carry a little black book and camera for idea collection everywhere they go.

I was in Italy earlier this week with Dr Prof Phil Klaus working through some customer performance measurement analysis for a retail client bank. Whilst travelling I came across this alternative to the abrupt ‘Drop & Go’ signs I’ve seen at UK airports. It reminded me that if you take a step back from the functional purpose of the activity, there is often a more engaging way to communicate it.

IMG_6966On another trip a couple of weeks ago I was grateful for this application of signage. Rather than buried amongst the transfer, bag collection etc signage the ‘how to get out here’ directional signage was very evident and allowed me to get out of Copenhagen airport, which I didn’t know, faster than those I am more familiar with.

citizen mBut my out and out favourite brand for putting more effort into the message and by doing so always putting a smile on my face too, is Citizen M. I’ve only ever stayed at the Citizen M hotel in Glasgow hotel. But whenever I’ve stayed in Glasgow I’ve only ever stayed at Citizen M.

Every standard and specific message visible at Citizen M has been well thought through and crafted to convey the spirit of the brand. Door signage, soaps, menus – you name it. Even the door mat. I can imagine the brand/marketing/design/CX/Facilities (I’m sure they are well integrated) team sitting down and saying, ‘there has to be more we can get out of the door mats’ and then arriving at this ‘concierge flattery style’ approach.

Looking at those underutilised spaces in retail, on livery, on the website or across communications present wonderful low cost opportunities to reinforce the personality of the brand or draw attention to experiences that have been developed to increase customer contentment. Fun without connection to the business and it’s intention is frivolous, but alignment is powerful stuff.

It’s also delivers a quick win way to evidence of CX improvements if you need to demonstrate to colleagues, customers or the CEO that things are happening.

We call it SIBI (small ideas = BIG IMPACT). If you would like to know how we can identify Experience Design SIBI’s for your brand, we’d love to hear from you.

Posted by Christopher Brooks, Customer Experience Consultant, Lexden

Lexden helps deliver Customer Experience Strategy and Programme Management for clients seeking sustainable profit from customer experience.

If you like what you’ve read please sign-up to Lexden’s ‘Customer’s World’ Update for ideas, inspiration and insights to improve your customer strategy endeavours. 

For further information on how we can help with your customer challenges contact christopherbrooks@lexdengroup.com or call M: +44 (0) 7968 316548 orT: +44 (0)1279 902205.  You can also follow us on LinkedIn, Facebookor Twitter or read client testimonials and case studies at www.lexdengroup.com.

 

With customer experience design, functional is good. But don’t stop there.

“Focus on the whole journey, not just the transaction”.  In the world of Customer Experience (CX) you will hear this phrase frequently.  But what does it mean?

It’s the difference between a task and a purpose.  The difference between a user story like the one above, and meeting a customer’s overall goal.  It is important to understand the difference between the two, because how you frame the interaction determines how your customer will experience it.

This is perhaps best illustrated with an example:

The background.  You are a lifelong customer of Locality Bank.  Your parents took you in to the bank open your first account when you were a child, and you remember how you felt when a moneybox was presented to you as a thank you.

Your dealings with the bank over the years have always been consistent, efficient and straightforward.  You don’t usually give banking too much thought, often using online services.  It just happens in the background.

But recently you decided to strike out on your own and start a business.  This is new and uncharted territory, and you are looking for help to get started.  Locality Bank are the first people that spring to mind.  You phone them to make an appointment – you don’t want to leave anything to chance.

Scenario 1.  The person who answered was fantastic.  She knew exactly what you were looking for, apparently quite a few customers are in the same boat, so they have put a package together just for people like you.  She invited you to come in , walk through how everything works, then decide which elements will work best for you.  She knew you had been with them for years, so they know you pretty well.  There will be very little form filling, and lots of talking about your business and what excites / worries you most about starting up.

Scenario 2. The person who answered was polite and efficient.  She asked if you would like an appointment to see a new business adviser.  You  asked whether that was the best thing, but she didn’t have any other options, so you booked an appointment anyway.  She promised to send a pack in the post which you can fill in and bring along.  It will help the Bank assess your suitability for a business account.  You felt a little unsettled by this.   What if they can’t help?  If you can get through this stage, it’s another step towards your little business getting up and running, but you will look at other options just in case.

Scenario 1 leaves you reassured, and looking forward. Scenario 2 leaves you anxious and looking for a plan B

We’ve all encountered these scenarios, where we’re left feeling a certain way by one supermarket/airline/store/bank and completely different by another.  It’s something you can’t put your finger on, but it makes you feel…something.

So why the difference?

In scenario 1, the business understood this customer’s whole journey.  The history of the relationship, their context right now (nervous excitement), and their goal (I want to start my own business, I need help to understand how it works).  It was efficient and easy, but it went beyond the transaction and delivered the total experience – which was reassuring, empathetic and human.  Almost as if they were standing beside this customer when she made the call.

In scenario 2, the business focused purely on delivering an efficient, easy transaction for their customer.  The customer’s goal is likely to have been framed as “I want to make an appointment to speak to a new business adviser”.  Nothing wrong with this – efficient and easy is the foundation of a good customer experience – but they were looking at the wrong goal…

It was all about the bank, not the customer.  The experience was functional, and process-driven, and left this customer feeling unsettled.

 Customers are human.  We all have complex brains.   When I set out for the supermarket I can be very task focused and impatient; I want to get in and out quickly (rational).

But I also equate food with home, and making people happy (not so rational).

Perhaps what I am really looking for is kudos from the family – a hugely effective distraction from price labels, and the reason why I often come out of the supermarket without the items I went in for (completely irrational).

So how do we avoid falling into the trap of designing purely functional journeys which miss the point for customers?

Map the journey.  From the customer’s point of view.  Journey mapping is a brilliant method of stepping back from the minutiae and seeing the whole picture:

Map the journey.  From the customer’s point of view.  Journey mapping is a brilliant method of stepping back from the minutiae and seeing the whole picture:

  • Get close to customers, in the moment.  This helps you to understand how customers think (and ex-customers, and near-miss customers)
  • Decide how you want your customers to feel, and what you want them to say about you.  What does your brand stand for?
  • Use journey mapping to show where you are hitting the mark, or not.

Journey mapping helps to clear the mist, so you can design interactions with purpose, which meet their true goals and deliver the total experience.

Reproduced with kind permission by Beth Richardson, Lexden Consultant – helping business get closer to customers.