So… we’re ten years into the Experience Economy and, over that time, there’s been an explosion of attention and investment in creating and improving customer experiences. Even in this midst of very challenging economic environment, it’s hard to find a company that isn’t either actively involved in or planning customer experience investments. As the economy now starts to show signs of turning around, we’ve observed an increasing level of interest in getting closer to customers.
Despite the attention paid to customer experience, with a few exceptions, people are no happier with their experiences as customers today then they were 10 years ago. It’s as if the majority of customer experience efforts have produced little more than “better sameness.” Better sameness is doing what you’ve always done… and what pretty much all your competitors do… a little bit better and faster; providing friendlier customer service, incrementally faster response times, a more appealing retail environment, a more streamlined web catalog and ordering processes, etc…
The problem is, customers don’t perceive these incremental differences. If you’re looking for a competitively relevant improvement, you need to do something that actually grabs the customer’s attention and positively influences how they feel and what they do. These are the only things that actually improve your competitive differentiation. Moving beyond better sameness demands doing something that isn’t just a difference in degree; it demands doing something that’s a difference in kind.
Umpqua Bank represents a difference in kind financial experience is a sea of highly undifferentiated consumer banks;
Unless what you’re after is better sameness…
…the most common tools for improving customers’ experiences are insufficient ! !
Customer Satisfaction Measurement: Most companies ask customers for subjective evaluations of the company’s or product’s performance on the assumption that these expressed attitudes drive behavior, such as repeat purchases or positive word of mouth. Unfortunately, decades of research into the correlation between evaluations and subsequent behavior show, although the link exists, it tends to be relatively weak. Most customers who switch said they were satisfied. Satisfaction is not an emotional state that powerfully drives behavior. In order to get beyond better sameness, companies need to surface how the the experience influences customers’ perceptions and feelings about themselves not the company.
Voice of the Customer Insight: Listening to customers is critical for gaining insight into their lives, their goals, their needs, as well as, their frustrations, feelings, and behaviors. However, as Henry Ford said, “If I asked customers what they wanted, we’d just have ended up with faster horses.” In addition, what customers say they want is not often well-correlated with the deeper goals and subconscious factors that influence their behavior. In many cases, what customers say they want is inconsistent with what ultimately drives their behavior… leading companies to invest in the wrong things. Getting beyond better sameness involves engaging customers in fundamentally different kinds of conversations and getting beneath the surface of what they say to understand their deeper goals and the experiences they’re having.
Touchpoint Mapping and Service Level Improvements: Touch point mapping is a highly company-centric activity. Customers’ experiences do not just happen at your company’s touch points. Customers follow an end-to-end set of activities that make sense to them given the goals and needs they’re trying to address. You can’t understand and meaningfully improve the customers’ experience by just looking at and incrementally improving service levels at your touch points. As customers go about their busy lives, they rarely pay attention to or act on any of the incremental service improvements at the existing touch points. Getting beyond better sameness involves creating high contrast, signature experiences that get customers’ attention, influence how they feel, and shape the story about what you stand for.
Training and Motivating Front-line Service Employees: Having engaged, well-trained, and motivated service employees is important. However, a lack of training and motivation is rarely the real issue behind a poor experience. The experience customers’ have with any organization is the product of behavior that emerges from a complex organizational system. The root of that behavior is a leadership, management, measurement, and cultural environment that reinforce “unwritten rules” inconsistent with employees doing the right thing for customers. Focusing on training and motivating employees without surfacing and addressing the unwritten rules is like hacking at the leaves rather than striking at the root of the problem. Getting beyond better sameness involves surfacing the unwritten rules and leadership and management beliefs and behavior that constrain the experience.
Creating positively and profitably influential experiences, that go beyond better sameness, requires a more fundamental shift in perspective. You have to focus first on how customers HAVE experiences… not on how your organization or product DELIVERS experiences. This includes being very clear on: What are customers really trying to accomplish? What influences the pathway they follow in pursuing those goals? How do they actually construct preferences and make choices along that pathway? How does the process make them feel about themselves? How does the experience influence the relationships they care about? In most cases, understanding how customers HAVE experiences, leads to a completely different set of strategies for creating experiences that really make a difference for customers and the business.
Customer Innovations follows a unique Cognitive-Affective-Behavioral Engineering approach that enables companies to design products, services, and experiences from the mental model of the experiencer… not just the mental model of the company. Over the course of 25 years track we’ve helped leading organizations realize bottom line results of 10-25% in the form of increased retention, incremental sales, reduced acquisition costs, positive word of mouth, higher price realization, and improved productivity of customer-facing operations.
The Customer Innovations approach is driven by three toolsets deliberately structured to push companies beyond better sameness:
- Behavioral Portraits – Generates deep insight that enables you to understand why customers behave as they do and identifies the most important behavioral drivers for specific groups of customers.
- Trigger Analysis – Surfaces how people perceive, interpret and evaluate their experience and identifies the specific customer interactions that elicit positive or negative behavioral responses.
- Influence Strategies – Designs the product, service, and experience interventions needed to influence customer behavior and creates the mechanism for consistent delivery of those changes.
Filed under: customer behavior, Customer Experience | Tagged: better sameness, consumer behavior, customer behavior, Customer Experience, customer innovations, customer satisfaction, experience design, experience designer, experience economics, experience miner, unwritten rules, VOC, voice of the customer |