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Customer Engagement customer experience

Purpose is the New Digital in Retail

We all need Organic Mango’s from Finca Los Pepones!

Purpose is the new digital in Retail

We all shop and spend our hard-earned cash, so everyone can relate to this, so thanks for opening and having a look, I thought I would share my thoughts on:

  • the changes in consumer behaviours
  • the trends for 2020 and beyond
  • my views on these, and why they matter
  • 5 things to add to your basket

Lounge suits are the new business dress, our lounges are for lunges J

2020 has seen a step change in consumer behaviours, due to convenience or really not having a choice due to restrictions, whether that be food shopping, clothes shopping or choosing a new car.  For some, spending has reduced or been paused due to worries about what the future holds.

For others the last few months has been a time to change: in wardrobes – more ‘comfy’ clothes as we spend our lives on video conferences; new cushions, or adding a few more pictures to make the house look nicer – as we are sick of staring at the same ones every day; and gardens which have been our staycations to replace vacations.  

There are various predictions about what 2020 will look like post the retail peak, with suggestions that the whole of UK retail will be down 4.6% versus 2019, and it will take to 2022 (for most) to recover to 2019 levels.  I am sure this will be a similar picture around the world.  Online has increased (no surprise there) by circa 17%.  

There’s no going back – this shift in our spending and our behaviours won’t revert

It’s become our new norms, some wish it would all go away so we can go back how it was at the start of the year, it won’t, but what is changing is our expectations.  We have experienced those brands that have really stepped up to the mark and given us great shopping experiences, our tolerance is now very low for ‘out of stocks’, ‘poor delivery’, ‘dreadful customer service’– businesses have had enough time to shift the dial, and in fact in the main, it’s the ones that were far behind the curve pre Covid that appear to have gotten worse and still using Covid as the reason for poor standards. 

Quite simply consumers won’t and don’t need to put up, as there is a vast array of choices and brands fighting for our money and I am sure like me, many consumers are really thinking about who and where they are spending the cash and the value it brings.

So what are the shifts? The re-inventions of retail?

According to the recent report published by Deloitte they refer to 3 trends:

  • Sustainability is the new paradigm shift
  • Re-invention of retail
  • Purpose is the new digital

Here’s the link if you want to read more on their report: Deloitte

KMPG has also shared their views and research too with 4 trends which are:

  • Business Models will evolve
  • Purpose to the forefront
  • Rethink the cost of doing business
  • Customer Choice is changing

Here’s the link if you want to read more on their report: KMPG

So, some similar themes between the two reports. 

It’s interesting, as I have reflected on an event that we chaired with a number of retailers over 6 years ago at Fortnum and Masons in London. A fantastic graphic artist sketched some the themes that came out of this – it feels a little bit sometimes like groundhog day, as some of the same themes, issues, trends are still being discussed today – and we can say this, as myself and my co-founder have come from many years working in retail and we have continued to work with many retailers over the last few years.

Retail Customer Experience

Emotionless Brands are simply products/services. This has always been the case, but it is now more important than ever.

So my 5 key things to add to your basket

  1. Everything has a Purpose – work out what yours is and see if that is what you want it to be
  2. Brand without emotion – is a product or service that adds no value to people – so how can you add more emotion?
  3. Think of digital in terms of how it can enable your purpose to reach to people who want it most
  4. Colleagues who deal with your customers (store, contact centres, delivery colleagues) understand most what’s not working, where investment needs to be made – so Listen to them, involve them in designing the changes
  5. Retail isn’t dead – it’s just the Old ways are, big adjustments (fast) matter

I hope you enjoyed this post, to read more go to www.custerian.com  – A company founded and run by practitioners to get (the right) stuff done using the experience gained operating at board level in large UK retail, distance shopping, financial services, logistics and service organisations, covering all aspects of the ‘C’ suite remit, from brand /proposition creation, to service model creation/development & operational delivery.

Emotionless Brands are simply products/services. This has always been the case, but it is now more important than ever.


So my 5 key things to add to your basket

  1. Everything has a Purpose – work out what yours is and see if that is what you want it to be
  2. Brand without emotion – is a product or service that adds no value to people – so how can you add more emotion?
  3. Think of digital in terms of how it can enable your purpose to reach to people who want it most
  4. Colleagues who deal with your customers (store, contact centres, delivery colleagues) understand most what’s not working, where investment needs to be made – so Listen to them, involve them in designing the changes
  5. Retail isn’t dead – it’s just the Old ways are, big adjustments (fast) matter

I hope you enjoyed this post, to read more go to www.custerian.com  – A company founded and run by practitioners to get (the right) stuff done using the experience gained operating at board level in large UK retail, distance shopping, financial services, logistics and service organisations, covering all aspects of the ‘C’ suite remit, from brand /proposition creation, to service model creation/development & operational delivery.

Nicola Collister

Nicola Collister – Co Founder of Custerian. Passionate about getting the right stuff done, through practical strategies and outcomes for the good of customers, colleagues and business. Creating alignment between purpose and outcomes through people. From a travel clerk to executive positions in FTSE 100 businesses. Now working with businesses who want to Transform for Good. www.custerian.com

Categories
Customer Engagement customer experience

Messy Processes – Messy Customer Experiences?

Messy Processes – Messy Customer Experiences?

I am sure you have heard more than once in your life as a customer, in your businesses, or a reply from a colleague: “Sorry, it is against our policy” or “It is against regulations”.  How is it against regulations when others are doing it? No, it is just an easy escape from feeling you offer bad customer experiences. How many companies actually mix bad internal processes with regulations or policies? Quite a few I’m sure!

Hopefully, that isn’t the case in your company. It is actually easy to test. Find out how many times your clients hear phrases like “I’m sorry, our system doesn’t allow us to do that.” Or “It doesn’t work like that. The way our process works is ……” or “the system is telling me that….”. Those are clear indicators of messy processes leading to messy customer experiences.

And why would you care? Certainly not because more clients would spend more money in your business if those processes were functioning better? Or if your existing clients give you 60-70% higher profitability than the new ones? There is a ton of research now that shows this ‘value’ yet why are more businesses reacting faster to the changes needed? The latest UKCSI report published in July this year https://lp.instituteofcustomerservice.com/ukcsi-july-2020 shows that overall customer satisfaction is the same as 12 months ago, but now 1.2 points lower that 2 years ago! In a world where digital is at the forefront, it is a lot easier to change the way we operate, and with the recent pandemic, there could be a burning platform that allows you to galvanise the changes needed.

 

I’m sure you find those as very good reasons to start aligning your organisation’s processes to customer experiences. It will actually increase your revenue; it is as simple as that. Removing waste from a lean perspective is great, removing it from a customer perspective can be remarkable.

Too many companies have “inside-out” focus, that is focusing on themselves instead of “outside-in” focus which is about putting the customer at the centre of everything. Journey mapping is one of the practical ways of putting customers in the centre.

So, what should you do?

Most companies can start from the basics. That is to map out all the relevant customer journeys, possibly by customer type. You can’t fix something you don’t understand first. Having a journey of what is going on makes it easier to plan the desired future state, that will respond to customer needs better. That leads to a second point, which is using the customer journey to see where the biggest pain points are – for people (customers and colleagues) and the business, and the opportunities for improvement, or innovation.  Then you can define how you want the future to look and build a roadmap to get there.

Summary

Your customer experiences are outcomes of your internal processes. Messy processes will lead to messy experiences, often for both customers and your colleagues. To fix your experiences, you have to fix your processes through the eyes of the customer – and that will take a much more customer-centric approach than traditional process methods may offer you (Lean, Six Sigma, BPM, etc.).

Here are some reflective questions you can use to evaluate your current situation:

  • Do you have a clear understanding of your different customer types & their needs? This is often referred to as Personas
  • Have you ever mapped their customer journeys? If yes, are they up to date? Are you using them to understand how they produce successful customer outcomes? And making it as easy as possible to interact with you?
  • Do you have a prioritisation model or framework to assess what will make the most difference, as you and your teams won’t be able to do everything at once!
  • Based on the priorities, do you have a plan in place, with clear activities, timescales, resource and the right governance to ensure that progress is made and activities are delivered?

It can help to get an outside in view – Many businesses get someone to help hold the mirror up to messy processes and less than perfect experiences. It’s important to ensure that you get a health check on your ‘Operational Fitness’ to deliver great experiences.

 

Custerian are expert practitioners having done this for lots of different companies across multiple sectors, often helping embed different tools, frameworks and skillsets into internal teams to continue on the journey of improvement.   Want to simply have chat or know more contact us on 01925 607060 or drop us an email at approach@custerian.com

By Beverley Stagg - Outcome Creation Specialist www.custerian.com

Categories
Customer Engagement customer experience

Successfully engage customers and realise 50% higher productivity

Successfully engage customers and realise 50% higher productivity

Successfully engage customers and realise 50% higher productivity

I’m hearing lots about customer expectations & how they’re changing. According to a recent report, companies that successfully engage their B2B customers realise 63% lower customer attrition. They also achieve a 55% higher share of wallet, and 50% higher productivity.*

*https://medium.com/@OutgrowCo/customer-engagement-statistics-in-2020-547e41c70c74

So how do you align operations to changing customer expectations? In this article I consider:

  • Why expectations are changing
  • How this could impact / what you should think about
  • How your operations may need to change
  • What you should measure to get to the right priorities

Customer Expectations are increasing

An ever-growing challenge that isn’t going to subside, is that we are always switched on & connected. At least 60% of UK adults use more than 2 devices with 87% of us using a smartphone*. We therefore have much easier access to organisations if things go wrong.

Equally, new and emerging consumer technologies continue to become a core part of our lives (I sit here typing this on my Mac with phone and laptop close by & iPad downstairs. They are accessible to all ages for a variety of different needs and are easy to use, with great product design (that isn’t just apple products, a lot of consumer electronics now meet this human need).

Along with next day delivery, (now even same day delivery), for virtually anything becoming part of our shopping habits, are we just becoming intolerant of poor product and service design?

What is a day in the life of an ever-typical customer – more so now…

So if we can check our smart phone 350 times a day, find out ‘near time’ information about: what our friends ate for dinner; how a family members birthday celebration went (as we couldn’t attend); and what a random person we met at a conference a while ago thinks about everything. We can at the same time: book our holidays / staycations from our phones; order dinner to be delivered from a local restaurant; purchase an electronic item through ‘click and collect’ for collection at a supermarket; and download a book that other people highly recommended. All whilst travelling if you need to!

Is this becoming more typical of your customers too?

We are now even more used to online shopping / apps since that has been our main way to purchase over recent weeks / months –  is it any wonder that our service expectations are increasing?

We no longer tolerate stuff that’s not personal or relevant. We get far too many e-mails that we’re quick to hit the “Delete” button or even unsubscribe if we can be bothered to go through that process. So how do we almost stop that deleting or ignoring of things and make it feel real for customers?

We naturally work across multiple channels. I find myself watching TV whilst texting and doing a little bit of retail therapy on my iPad. We are fast becoming anytime, anyplace, anything. How do we deliver that ‘martini service’ for all our customers out there?

We know far more about customers, they are quite willing in most cases to give us information about themselves, you can determine more a more about their persona from their social media footprint. Tailoring services or messages based on this drives engagement. 

So how does this impact how you operate?

The aim for organisations should be to maximise revenue through engaged colleagues and customers. In order to achieve this, we need to understand them. If we do this, we can align what we do best with what customers want most through our people.

Once you know what customers and colleagues want and the issues they face, you can work to improve your processes and ways of working and importantly, measure your effectiveness. It isn’t just about what you do, it’s how you do it.

Finally, you should look at how technology can make it easier for colleagues and customers to deliver and receive the service. There is still a relatively low level of digital automation being used and so cost benefits are not being fully realised.

What does the research say?

[ADD IMAGE – CONTACT BABEL FRONT COVER]

The mean cost per inbound transaction by channel was shown to be: Phone (£4.53); Email (£3.89); Web chat (£3.39); Social Media (£3.18). For emails, it is therefore the case that if the query is not answered satisfactorily within a single response, the time and cost associated with multiple replies and possibly phone calls is soon greater than if the customer had simply called in the first instance.**

We can see that customers want to use different channels at different times and after all, we are all different – you won’t win by driving customers to one cheaper channel.

There can be strong patterns for contact based on age, but it does also depend on the nature of the contact, whether emotional, urgent or complex. Urgent queries will for example drive self-serve attempts – to get an answer quickly. For a product which customers really wanted to receive and had been delivered but was incorrect, the most popular option was to email the organisation (46%), with the second most popular (19%), was phoning the contact centre.**

What should you measure?

Based on research and experience, you need to measure use of channels based on contact types, look at time to achieve an outcome, also did all the people who started a process in a certain channel complete it?  If not, why? If they are dropping out or aborting, where and why – have you tried this process yourself, have your customer service colleagues tried it, as an internal test?  and look for opportunities to improve efficiency and effectiveness of how you serve customers.  There may one or two channels that would be better for a customer to use and it may mean you really do need to speak with them. 

Depending on your organisation this may involve a whole scale change to your operating model, or a focus on the areas of the business where customers are served.

A final thought…

As the green cross code used to say:

STOP – take a pause & think about your purpose and how you’re doing in delivering it

LOOK – at your measures and what they’re saying

LISTEN – to your customers and colleagues (outside in and inside out)

Then start your planning to achieve an effective, seamless service that works for all your people.

 

Beverley Stag

Custerian Outcome Creation Specialist

 

*Statista, March 2020

** Contact Babel: The Inner Circle Guide to Contact Centre Remote Working Solutions, 2020

By Beverley Stagg - Outcome Creation Specialist www.custerian.com

Categories
Customer Engagement customer experience

Customer Experience or Customer Engagement – what’s the difference and how do you truly engage?

Customer Experience or Customer Engagement – what’s the difference and how do you truly engage?

Customer experience is traditionally focussed on flexing what you do to meet customer expectations. Achieving a great customer experience and maintaining it, needs ongoing focus and visibility of:

  • Strong employee engagement with customer vision & strategy embedded into the DNA of the company
  • Multi-channel consistency
  • Always ‘Easy’ to do business with (for the customer and colleagues)
  • Fixes customers’ mistakes easily, often proactively
  • Continuous improvement culture with closed feedback loops, always looking to improve
  • Brand promise delivered every time
  • Wow moments where relevant

Customer engagement, which Custerian have been talking about for years, is about matching what you do best to what a customer wants most. Matching purpose with outcomes.

We actually talk about People Engagement, people being customers, colleagues, suppliers.

People engagement starts with a clear business purpose that everything can be aligned to. You need to have a strong view of what your purpose is, and this is something many companies struggle with. Customer experience focusses on the outcomes – process and priorities.

You need to create this alignment between purpose and outcomes through people.

  • People – they need to understand the purpose and how they can contribute in a way that allows them to feel good/great.
  • Proposition – why should people deal with you rather than another organisation?
  • Process – do you work as efficiently and effectively as possible to deliver what you do best to your customers?
  • Priorities – do you relentlessly focus on creating a great experience for customers and colleagues?

Colleagues play a massive part in customer engagement. More companies are starting to recognise this and are thinking about ways in which they can drive further engagement here.

Here are some tips to start you thinking about colleague engagement:

  • Clarity – this is about translating the purpose so that it makes sense to everyone in the organisation – this may be done through your strategy, plans, values etc.
  • Relevance – build the level of trust through regular communication, consistently re-enforcing messages.
  • Value – showing the value of your colleagues – gaining opinions and developing your organisation through them.
  • Meaning – this goes beyond your organisation – many people want to give back through communities and create relationships with customers in a different way – this makes people feel good – about themselves and their organisation.

So, let’s get onto what customers want in order to create that alignment and in turn, engage them. People just want to know something and want life to be more simple, life is too much in the fast lane.

In recent dealings with customers, they were very clear. In a service delivery organisation where things do go wrong for customers (and they expect it can happen), then they ideally want to be contacted pro-actively but if not, want it to be easy to make contact in a way that suits them, and then they want their expectations managed. Do what you say, and they will be happy with that. If you actually go above and beyond, such as the pro-active contact, then they will recommend you to others.

We heard some other great examples of brands that were achieving this engagement by offering discounts automatically based on spend (that weren’t expected) or by their amazing returns/exchange policies. These companies now have loyal customers.

So, we have brands/organisations telling us about their products and services and we have customers that want a need to be met easily, through their channel of choice. So, what brings the two together? Data!

We have more data than ever before, and brands use this to their advantage. GDPR regulations have, however, thrown a spanner in the works somewhat – we as customers, now have more control over our personal information and can ask for our data to be removed! We’re all so quick to remove Apps that we haven’t used in a while or unsubscribe from annoying communications.

A lot of businesses really don’t know their customers habits. Have you thought about personas for your company and how these could help to drive your strategy? Get your colleagues involved in creating them – it’s a fun thing to do and really gets you thinking about how you need to treat people differently. Knowing your customers allows you to prioritise developments – where to automate and reduce customer effort. As customers we’re becoming increasing capable of serving ourselves – if this is an option for us to use (and we want to) and then it’s quick and easy, we’re happy. One point here – we do need to be reassured that our transaction has been successful!

Technology is moving fast, and we need to stay close and use the developments to our advantage. Adobe released survey data in July 2019 that found 48% of consumers are using voice for general web searches. With 87% of people in the UK using a smart phone*, we need to consider such growth in our contact strategies as our expectations as customers are increasing and quickly.

Hopefully I’ve got you thinking… as we look forward, what are the things you need to plan for and do to operate more effectively and really engage customers? Now is the time to start the planning and then perhaps this time next year any impacts of Christmas, winter or any peak season won’t quite hit as hard and more customers will be raving about your organisation!

*Statista, March 20202

By Beverley Stagg - Outcome Creation Specialist www.custerian.com