Customer has changed

ShouldWeCare

Smart devices online access to information has changed customer and definitely has certain and strong influence to human behaviour, business and society. This change allow us and our customers to be more smart, safe, monitor over lives and … have more fun in life :)

Well-known radio DJ told a story: he was looking for a cat toilet. He went to his regular Pet Supplies Store in the super market. He was busy and actually cat toilet was not the world’s most important object for him. This particular cat toilet he wished was not available in his regular Pet Store he was used for years. Store assistant said „you could come and check next week again….“ Radio DJ turned around and went to the neighbouring Pet Store – just for checking. This type of cat toilet was not available also there, but … the assistant recommended to pick together from e-store in his computer the desired model, make the purchase and the cat toilet will arrive by tomorrow to customer’s home. So they did. And … the customer did not ask for the price as most important thing and he will use the same e-store for next purchases for his cat. Because it is really quick, very convenient and has caring attitude from a sellers side. 

CUSTOMER EXPERIENCE management is one of the main business drivers today

Change is always uncomfortable – entering to the unknown area, lots of work, some mistakes, risks to failure… BUT there is no possibility to ignore the change – unless we want to be out from business.

NB! Opening access to data of both parties, us and customers has also risks to be kept in mind like data security, cyber security, information abundance. This is important to be considered as could impact customer trust towards our product significantly.

Business Transformation in Near Future

IBM CEO Predicts The Future Of Business

Rapid shifts in technology, outburst of social media will impact substantially the way businesses are run tomorrow.

Individual  approach – More and varied input of managers, colleagues and customers on each employee’s performance may create more objective pay models.

Consumer Segments Will Cede To The Individual – Rather than meeting the needs of different consumer segments (e.g. geographic, age, income) businesses will be able to truly serve the individual based on specific needs and desires. “What you will see with rapid data and social sharing is the death of the average and the era of you,” “It’s about a dialogue” with each individual understanding her/him, not about just handling the script any longer.

“At the end of the day, it’s about mindset and culture” – Just because the technology exists and will become increasingly accurate, the shift will require new ways of thinking in business management.

The Social Network Will Drive Value –  In the near future “your value will not be what you know, but what you share.”

Data Analytics Will Revolutionize Decision-Making – Data will be the basis of competitive advantage going forward, calling it the “the next natural resource.” Decisions will be based on predictive elements versus gut instincts compared today when judgments are still based on anchoring biases – leaders and managers interpret information through the lens of their subjective perspective and set of experiences.

 

Rules for creating a Great Customer Experience

In 2005 the UK’s most outspoken chef & entrepreneur Gordon Ramsey was a speaker at Customer Management 2005, London. We made then summary of some of his quotes that are really valid also today – eight years later.

    • – leaders do not create followers – they create more leaders
    • – create an organization with buzz. You need to involve your customers as players here – it is the customers who create the ambience.
    • – wow all your customers, not only the best ones
    • – listen your customers
    • – you are the customer’s champion, challenge complacent practices in your sector
    • – do not let success go to your head and you do not take customers for granted
    • – use the best ingredients (that includes people!)
    • – all business is show business – companies from all sectors are learning how to let customer in and join the “prosumption”experience – instead of being treated as just consumers.

“If there’s a buzz in our industry about a new restaurant opening anywhere in the world, there will be a booking made for a table for six within 48 hours of the restaurant opening. Those six will be my staff – three waiters from front of house and three kitchen staff. They’ll be there to learn and to report back. That’s how we keep up with competitor innovation and stay abreast of what’s going on.”

G. Ramsay quotes

“I was interviewed on the Letterman Show in the States. He said to me ‘While you’re over here, who’s doing the cooking back at your restaurants?’ I said ‘The same people who do it when I am there.’  “We have ten restaurants around the world. I don’t cook in all of them. It’s about inspiring and developing people to aim for perfection for customers then letting them get on and deliver. The better they become, the easier my job is.” “David Letterman was wearing a very nice suit. I leant forward and asked him who made it. He flashed the Armani label and said it cost around $1,000. ‘And did Georgio do the stitching?’ I asked him.”“If I seem abrasive it’s because I have to engrain in every member of staff that we are not more important than the customer. I am demanding perfection on behalf of the customer. Part of getting that message across is we insist that staff put themselves in the position of the customer.

“I had a talented young chef who insisted on making impressive little towers out of his dishes – you know the way chefs make your food into an architectural statement. I asked him to keep them flat and simple on the plate. He was very reluctant to. “One lunch time I noticed him constructing a lamb cutlet tower of Pisa-type thing on a plate, ready to send out to the customer. I came up to him and said ’Put on an apron that doesn’t have food stains on it and follow your food into the restaurant to see what happens.’ He wouldn’t. I, er, insisted. “So he creeps out as quietly as possible, not wanting to head out of his territory, and follows the food to the customer who had ordered the lamb. The customer immediately dismantles the tower so they can eat it. The young chef is crestfallen. But he gets it. The customer is there to enjoy the flavors, not marvel at an art form. From then on he always lays the lamb out flat on the plate. Because it’s about the customer, not about your precious work of art.”

“How do you develop the social skills of a chef, putting them in touch with the customers like that on a regular basis? At Claridges, that’s one of the reasons we set up the Chef’s Table, at the edge of the kitchen, so chefs can connect with customers.“

“We had young chefs working there who had never previously met their customer. Now they were forced to. They had to spend two minutes meeting a table of people and explaining to them what they would be doing to their dishes. Then, two hours later, they had to revisit the table and ask the customers what they thought of the experience.”

“Not only is this immensely powerful for the customer experience and for putting the chef right there with the customer, it also makes financial sense: each chef’s table turns over about three-quarters of a million pounds a year in what was the pot wash area.”

What influences Customer Experience?

Previously we have written about Customer Experience and how it gives the company competitive advantage. Customer experience is vital part in experience design, where we try to analyze service through customers’ eyes. This is also important part in service design. But what customer experience and what are the differences of customer desires?

Customer Experience definition

 

It’s known that more than 50% of Customer Experience is about emotions. This includes also B2B environment. So this means that it is more important to look deeper inside the customer to understand their motivations, desires and what drives value for them.

In the book “Customer Experience: Future Trends and Insights” the authors have made a model where they show all of the levels of customer desires.

Customer Desire Model

In this model we see that all customer desires are divided in 4 categories:

  • SUBCONSCIOUS– they don’t say it but it still drives value
  • CONSCIOUS – customer knows they want it and it drives value
  • INVISIBLE – customers don’t want it and it doesn’t drive value
  • DECEPTION  – customers say they want it but it doesn’t drive value

It is important that company knows their customers to understand which of these desires drive value to the customer and what doesn’t!


Relations as the basis of enterprise strategy

Enterprise strategy management can be described via 3 development stages: focus on product, customer or relations.

Relations as the basis of enterprise strategy

Which strategy would ensure sustainability, depends on environment: economical situation, competition, and increasingly the capability to evaluate the development of society and skill to go along.

4 possible relations focused models of strategy  

1.Shared Value =  society & business
–creating long-term competitive advantages by engaging with societies in deeper level e.g. fair trade
2.Platform/standard based = platform owner, partners & customer
–i.e. software producers or telecom providers provide free platforms, solutions for creating wide basis for new developments, new applications or increase other services usage
3.Co-created = Customer & company
–the businesses rely on customers to create meaning for the frame, platform they are providing customers with (Warcraft, Facebook, Habbo Hotel, LinkedIn etc) where a company provide customers a platform for communications, social interaction and fun. Each party at these platforms act selfishly and use the opportunity of
a)great communication platform as a customer
b)great reach and dialogue opportunities as an advertiser
c)enjoy the scale and free value creation by users and advertisers enabling commercial success as a platform owner
4.Coalition = Several companies/ products & customer
–to join forces and relationships of several companies/ products in to one single offering in order to enable stronger hold of customers in variety of different contexts and also offer higher reward for buying from this coalition as well to ease customer choice
–spread current customer relationship and tie it to new partners enabling effective cross selling operation and increase in sales for all partners/ products resulting a tool for market growth in all participating partner categories