Tag Archives: Lexden

Are customers being unfair on Ryanair?

It’s been difficult to miss the recent trauma caused to the Ryanair brand following its announcement that its pilots are off on holiday for the rest of the year. An estimated 2% of flights were to be cancelled, meaning very few ‘customers’ are impacted (according to them).

‘Have your say’ poll below

I’m one of the 98%, whose flights went ahead, but it didn’t mean I wasn’t aware or affected by the situation. I have still seen all the news and abuse they been getting in the press and social media. It’s also crashed into my customer journey when I flew because I had to put more effort in to remove the anxiety involved with sticking with Ryanair.

When I saw the initial announcement, I had flights booked to Copenhagen for business. I didn’t know if they intended to publish a cancellation but heard stories of passengers being told two hours beforehand that their flight had been cancelled. I was due to run two days of customer journey mapping workshops, so couldn’t take the risk.

I booked the flights originally because of the convenience factor of them. I’d be departing from an airport close to me and at a time that suited. The cost of the flights matters less to me. a lot less than an airline honouring a flight where there are dependencies at the other end.

So, I booked back-up flights in case the Ryanair flights were cancelled and I didn’t know whether they’d tell passengers about cancellations. The back-up flights were from an airport 90 mins further away from me than the Ryanair flights, so a lot less convenient, but at least I knew I’d get there if mine were cancelled which had now become a more important criteria than convenience.

When the cancellation list was published my flight was not on it. But as a colleague said, ‘when you buy cheap, you end up buying twice’. Ryanair positions itself at the cheap end of the cheap brand spectrum, so the old advertiser’s wife’s tale certainly came true for me. In fact, I’ve ended up lining the pockets of two other airlines they compete with just so I can use Ryanair.

Is Ryanair being unfair to me as a customer? 

I don’t think it is. I understand I am a transaction to Ryanair and not a customer. It’s always been that way. I accept that to afford the price of their ticket I need to lower my expectations. I need to sacrifice quality and a lot more besides because we enter into a transaction, not a customer relationship. That’s the trade. If I want to be treated like a customer, I should choose an alternative carrier. I get that.

So it’s my choice and they don’t try and present themselves as anything more than that, so we get along just fine. In fact, I’ve booked over twenty trips so far this and a noticeable proportion of those have been with Ryanair so I hop it’s commercially viable for them too.

But will everyone feel the same?

From a share price perspective, they are 25pts up on where they were this time last year. But what’s your view? Complete the survey below and see what others think too.

Will passengers change their airline?

Perhaps those who have lost hundreds on hotels and car hire will be less likely to consider Ryanair, especially as they cant get refunds from their travel insurers for which Ryanair state legally isn’t their problem.

People who had events and activities planned like visiting family abroad for key birthdays, weddings organised or taking friends and loved ones away for much anticipated trips might hold a long term resentment if they can reschedule at no extra cost.

I know they have slim margins and are looking for me to demonstrate my fallible human side and make a mistake (e.g. I forget to check in 2 hours before hand or I need a drink of water and pay €3 on board when it costs 69p if i’d remembered to get it before I flew, or if show weakness and exercise my right to sit with my wife and young sons on the flight and pay for seats to do so). Those extras are part of their business model, they need to protect them.

But in return, they don’t expect me to be ‘very satisfied’ with the experience. they don’t expect me to tell others to use their airline, they don’t expect me to be loyal to them and they don’t expect me to enjoy using Ryanair. It’s a transaction. We both know where we stand and I think it works pretty well.

Can I remember when I travelled with Ryanair and where to? No, it’s a pretty forgettable experience.

Can I tell you how good the experience was? I didn’t notice anything, but I didn’t expect to.

Can I recall a positive memorable moment from dealing with them? They are not creating happy memories. That’s not what cheap brands do. 

Would I tell others to choose them? No, but that’s not important to them. They aren’t looking to give me any reason to do so and I have no reason to tell anyone else to use them.

If I want a memorable flight I should choose another airline. Ryanair do not have the margins or the brand to satisfy customers, so why would they focus on it?

Does this episode reaffirm Ryanair’s brand, rather than damage it?

I’ve also found the Ryanair cancellation was a hot topic amongst the Swiss, German, Danish and Belgium attendees at the workshop. It seems others are not so accommodating. Listening to the discussion amongst the international group of business travellers, I hadn’t appreciated how wide reaching this incident had become.

Some decided to use a different airline to get to the workshop to previously used Ryanair. They said it was a nice experience so they would carry on now they’d realised the flight experience was important to them.

But we shouldn’t be disappointed in Ryanair. The incident itself and how they have conducted themselves throughout the flight cancellation saga has been true to their brand. Whether it’s not publishing the cancellation list early enough, putting pilots holidays before passengers holidays, sitting in front of an advertising poster of smiling actors posing on a beach as the CEO says sorry we can’t fly some of you to the beach or not sharing compensation information legally obliged to until the regulator barks, they been consistent.

All these have been executed perfectly in line with the values of Ryanair. Few other companies could turn a crisis in to such as demonstration of unwavering alignment to their brand.

Posted by Chistopher Brooks, Customer Consultant, Lexden (London)

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Lexden helps deliver effective customer experience insight, strategy, content and creative activation clients seeking sustainable profit from customer experience.

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Highlights from the 2017 Manchester Customer Experience Conference

With over 60 CX events available each year, why did I choose to attend the Customer Experience Conference in Manchester and what did I learn?

With some events, you know what you are going to get. Such as those run by tech vendors, who show case their tech stack as the CX silver bullet. Or the key notes from the ‘professional CX speaker’ circuit, who preach non-practised rhetoric. So, it’s important, considering how much they cost, to find ones which offer fresh content from a broad range of company perspectives I feel.

Why I chose the Manchester CX Conference  

It was this diverse range of promised case studies that initially attracted me to the September CX Event in Manchester. Among others, Virgin Trains, eBay, British Gas, Atom Bank and Leeds Rhinos were on the bill. I knew from this selection I would hear about battles in the board room and fantastic frontline improvements. In addition, I always look for an excuse to visit Manchester which is a firm favourite city of mine. And being a consultant, it was refreshing to see an affordable priced ticket for non-clients.

So, I got up at 4.30am and set off to Manchester with my note book in hand ready to capture some pearls of wisdom. The first speaker was the Head of CX from Virgin Trains, so as I boarded their 6.45am I wondered if I’d arrive on time and in good shape, or would I be raging having endured a miserable trip. VT didn’t let me down. I arrived at the conference hotel in time for coffee and croissants, laid out by the organiser in the middle of the now customary sponsored vendor’s baiting arena!

The hall was full and John Lewis’s Head of Contact Centre Operations kicked off proceedings with exemplary professionalism.

What I learnt at the Manchester CX Conference

We were off with several client presentations following in quick succession. Some were brutally honest and revealing whilst others skimmed over edited highlights. But scattered among the day were several gems which made the day valuable to attend.

eBay, Atom Bank and Virgin Trains presentations stuck in my mind as insightful and the Cystic Fibrosis Trust and Leeds Rhino’s CX presenters put passion in their pitch.

My five CX take outs from the day were:

  1. Some are losing faith with Net Promoter Score and its unreliable correlation with the commercial drivers of the business. With one highlighting the move to a more accountable ‘behaviour’ measure proving more insightful. That said many are still pegging everything to it
  2. The CX tech stack is still seen as an unwieldly However, some are shunning expensive platforms from gold plated sales reps opting for self-built solutions or using ‘free to use’ cloud based off the shelf set-ups to some effect
  3. Getting the CEO onside to drive CX is still critical. One organisation cited how they used to ignore customers until the new CEO arrived, who is customer obsessed and things have now changed
  4. Artificial Intelligence is proving a distracting for some who have more fundamental improvements to prioritise. The focus appeared to be on cost reduction rather than quality improvements. The issue of digital ethics was also raised in consideration of chat bots. Should companies declare to customers they are trying to kid them into believing they are talking to a human?
  5. Understanding how to engage other stakeholders with conflicting objectives is important to break down silo barriers. Which all agree is essential to move forward with CX.

Overall it was an enjoyable day. I heard passionate people talk, met a couple of interesting practitioners over coffee, caught up with vendors on what client challenges they are facing and heard much from the speakers to reaffirm our own methods and models we provide to clients are still at the front of the pack.

It was a shame Shopping Direct, Barclays, BooHoo and RBS from the originally advertised programme didn’t show. Even without these the organisers managed to run over time!

I got home about 8pm from the 16-hour round trip, making it a tiring day in search of fresh CX insight. The following day we ran an all-day planning session with a new client appointment’s team, so I was glad to have prepped beforehand and grab an early night.

Attending an event is a big commitment, both in terms of time and cost, so it must be worthwhile. However, the proof of the pudding is in the eating as they say. The reality is it will be when you are in an improvement session or journey mapping months later that you will reach in to the memory banks and pluck out the relevant example you heard from that day at an event, making the value of attending conferences difficult to quantify.

On reflection, I gained.

With over 60 events every year in CX, keeping up with what’s on is hard enough, let alone picking the best ones.  If you want to know what’s on email christopherbrooks@lexdengroup.com and I’ll email you the FREE listing of 2017 Global CX Conference and Event we’ve compiled to help others.

Posted by Christopher Brooks, Director of Lexden, Customer Experience Consultants.

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’s World’ Update for ideas, inspiration and insights to improve your customer strategy endeavours. 

How bottled water, fresh fruit and Ipads build a more emotive Customer Experience

I was judging at the FS CX awards last week. Each year the standard and the activation ideas improve. With some significant developments such as retail banks shifting from business discipline silos to customer journey org structures and others ditching CSAT and other measures in exchange for measuring their ability to fulfil ‘what matters to customers’.

It was a day of inspiration. And being a day time judging and dinner event, I returned home by Greater Anglia train at a reasonable time, stopping at Tesco to pick up some provisions on my way home. At the event, the passion, the performance and the future potential of the finalists impressed me. But so did Greater Anglia and Tesco in their own small way too.

Reflecting on what I’d heard at the event I realised that for all the strategically sound structure and progressive programming, it was the emotionally engaging stories of how customer-led thinking had resulted in a betterment for customers which were staying with me. Especially because the organisations believed it would mean they would retain the heart and the purse of the customer.

It’s the same when I think about the ever increasing number of ‘professional’ speakers on the CX circuit, for all their philosophy without practice experience, it is their emotionally connecting self stories of CX that stick.

With the right framework to ensure ‘what matters most and when’ is prioritised, and is designed consistent to amplify the strength of the brand across all experience activity, any organisation can create it’s own set of low cost, emotionally engaging experiences which customers value, and motivate colleagues.

Here are three which I encountered on the aforementioned day of judgement:

1. Greater Anglia offering bottles of water, for free, to help passengers with the sustained spell of warm weather. It might not have been their idea and it might be an investment to minimise the impact of not being able to deal with dehydrated customers, but leaving cynicism at the ticket gate if I may, this is a lovely gesture.

Whilst not own-able I accept, it doesn’t need to be. It just fulfils a need for a customer, whose route to work is ingrained, they probably only think about refreshment on a hot day when they are half way there.

2. Tesco offering free fruit to children of shoppers. I recall a few years ago working with the Tesco group, before CX really took hold. They were attempting to reaffirm their difference through hundreds of small improvements to the customers experience. Some we see, such as this, others are more operational but help customers in the long run.

So whilst this could be Every Little Helps #147, it stands out because of the benefit to parents, who often need a pacifier for children in store and feel guilty about serving up sweet treats and the children (and from what i can see in our store it’s working) who still seek a distracting pacifier to keep them occupied, but now have one which is good for them. Which in turn is good for the parents soul too.

3. GI provider discovers speaking to the grand kids on Facebook comes before rebuilding the house. I am sure this is becoming common place practice with Home insurance providers, but it’s great when you hear it being delivered all the same. When treated as a standard insurance claim, customers are taken care of through a logical but generic risk management process with steps to put people who encounter a flood or a fire, back to the position they were in before it occurred. That’s what insurance does after all.

Typically the big things like temporary accommodation and assessing what’s damaged are the first steps to be undertaken. But that’s often not what is on the customer’s mind. If you ask them, ‘what do you want done first?’ it’s a more personal and human request pertinent to the life and behaviours they’ve established. For instance, the example I heard was a couple whose house had been impacted had wanted a replacement Ipad because the highlight of their week is a Sunday catch up with their grandchildren in Australia.

I’ve gathered quite a catalogue of these small improvements on my travels. If you have your own, please comment below, I’d be delighted to hear from you.

Posted by Christopher Brooks, Director of Lexden, Customer Experience Consultants.

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’s World’ Update for ideas, inspiration and insights to improve your customer strategy endeavours. 

 

 

Copyright: <a href=’https://www.123rf.com/profile_stockbroker’>stockbroker / 123RF Stock Photo</a>

What are the hot topics on the CX Event agenda this year?

From what I heard, ‘It´s (still) about the emotions and the figures’

Speaking to various participants and listening to the key note speeches at Germany’s CX Forum 2017 earlier this month, I tried as always to get a sense of ‘the’ questions which are driving the CX scene here in Germany.

There was no surprise that the responses are highly dependent on the CX maturity level of the companies involved. But priority points most often heard were:

  • How do I prove and link figures to CX activities?
  • How do I get the ‘people’ on board?

Our own experience with assignments across Europe echoes these two points as well. it seems conventional thinking on what is a sound measure of CX and some of the ‘lean’ style transformation programme approaches adopted for customer experience have created problems for organisations hoping to progress with CX.

Why is this?

One reason is many companies settle for a measure which is easy to obtain and simpler to report when it comes to CX. So whilst the business is interested in what drives profit, the CX team is reporting how many customers (say they) are promoting the business? Evidence from studies conducted by Dr Prof Phil Klaus (Author: Measuring Customer Experience) show a less than 1% correlation between ‘recommend’ measures and profit. Not the sort of weapon you want to take in to the boardroom when it comes to justifying CX investment!

The good news is that we are finding many are waking up to the value of the right CX measures and the investment in cultural change required to support CX.

And more good news: B2B companies are now asking for the applicability and best practice for their businesses when it comes to CX. The top 10 messages shared are not new, but probably cannot be repeated often enough for new entrants into CX, and as reminders for the converted:

  1. Make sure you have your sponsor on-board and understanding the commercial potential from CX
  2. Measure, measure, measure what matters to customers – but what CX drives behaviour change as well as inference and sentiment (such as NPS and CSAT)
  3. CX, like all strategic imperatives, takes time to establish, normalise and create return. It is a journey of discovery for organisations with several steps to take before reaching ‘the land of unicorns’ (quote Stefan Osthaus)
  4. Stop over surveying. Feedback fatigue is a modern virus. Start watching more.
  5. Bring CEOs in contact with the real world in creative ways (Samsung’s channel: Email to CEO is a great example of this)
  6. Don’t forget we measure for the ‘why’ not the ‘how many’ verbatim from CX are a much more valuable source for improvement than a score of -3 or +28.
  7. Involve your people and take care of them like you take care of your customers. employee experience is not a nice to have, it’s a fundamental. Colleagues who feel the value of CX, deliver the value of CX.
  8. Use methodology and techniques like customer journey mapping for a structured approach. It’s amazing how many organisations map the customer journey from a ‘how it impacts our process’ perspective. Start with the customer problem, to arrive at a better outcome overall.
  9. Know your customer before starting other effort – not demographically but what makes them tick, what drives their choices and what fulfils them. Think ZMET.
  10. Think digital but with the customer experience in mind – not the technology. Digital first is really modern customer first. Don’t sacrifice engagement for effortless or satisfaction for self-serve.

Events are great to get a sense of where your industry is in it’s growth. I went through a storm of mixed feelings during the day. In the morning, I was happy to see 170 participants name tags. Compared to last year there were more titles and roles included in Customer Experience.  it’s a great sign that CX has arrived in the organisational setup.

Having said that I went to the state of shock at the podium discussion in the of the day: Were they seriously arguing which department (!) was best to lead CX in companies?  Sad but true – in times of discussing agile working ‘old world’ is still out there. We still have many who just don’t get it or see CX as a new model for a quick buck – beware of these pretenders!

There were some other moments which connected with me emotionally:

  • I had admiration for the guy from ThinkPen with his great visualisations of the key notes. My brain and I just love that kind of communication.
  • I was amused about Prof. Heinemann who is the digital optimist and her entertaining ‘show’ after lunch on why digitalisation is no revolution but more yesterday’s news as it is out there everywhere already. Although quite a few companies in Germany still think it´s a buzz word and do not align it with the purpose of their business. Mmmh… not so amusing!
  • Respect for all the companies who have the courage to and share their learnings like Stepstone, even though they have just started
  • I was thankful for the openness during the sessions as well as the breaks. Once again I experienced the people who were very enthusiastic on the matter of CX and eager to learn and share.
  • And not to also thank the team from MaritzCX for pulling together this event in times where time is limited and precious. Nothing is more worthwhile then talking to others who are battling the same grounds.

And finally, a take away from Markus Nessler’s presentation on Samsung’s path to superior CX: Online Channels upfront are great but in the end the trend is clear: Customer still love personal contacts – CX is clearly a people business! And that’s from a world leader in technology.

There are many CX events throughout the year. Pick which ones you go to wisely. And be prepared to share if you want to learn.

Posted by Karin Glattes, MD & CX Consultant, Lexden (Germany)

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Lexden helps deliver effective customer experience insight, strategy, content and creative activation clients seeking sustainable profit from customer experience.

 

 

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 

If you’d like to receive more of these, and other articles on driving more profitable Customer Experience, please sign up to our newsletter.

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

5 of the best: Top Customer Experience ideas and inspiration direct from CX hot seats

We’ve been running a series of interviews with CX Directors charged with shaping and driving their company’s Customer Experience. With several now complete, we thought we’d pause and share the articles as a collection.

At Lexden, we are committed to customer experience as an effective business model. And whilst we enjoy applying our expertise to help clients leverage the effectiveness of their programmes, we believe much of what needs to be done can be done by taking inputs from others in the same role. Which means you need external support less, but when it is needed, it’s valued more.

With utilities, retail, entertainment and finance covered we hope there are tips and advice in here for everyone.

How intu Are Revolutionising the Destination Shopping Experience for Consumers

Read the full interview with Roger Binks, Director of Customer Experience. Click here.

At British Gas a Customer Strategy Is Useless, Unless People Believe in It

Read the full interview with Richard Shenton, (former) Customer Experience and Continuous Improvement Lead. Click here.

FSForum CX Award winners, OneSavingsBank say, “Take Everyone on the Journey with You”

Read the full interview with Kent Reliance’s Head of Customer Strategy & Insight, Stephen Plimmer. Click here.

When You Are in Your Customers’ Homes, You Have to Make It Right according to Carpet Right

Read the full interview with Carpet Right’s Head of Customer Experience, Toni Adams. Click here.

npower explain how customers are taking centre stage

Read the full interview with npower’s Head of Customer Experience, Kelly Iles. Click here.

With aviation, insurance, and hospitality lined up for 2017, we look forward to bringing further inspiration later this year. All our interviews are sent to our Customer Experience Update subscribers.

If you’d like to receive more of these, and other articles on driving more profitable Customer Experience, please sign up to our newsletter.

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.

 

 

 

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.