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Page 1: The Complete Customer Experience Collection - Your ......or services. Allow your staff to add its emotional touch to the overall customer experience, and by that create preference

The Complete Customer Experience Collection

© 2006, Strativity Group, Inc.®Printed in U.S.A.

Page 2: The Complete Customer Experience Collection - Your ......or services. Allow your staff to add its emotional touch to the overall customer experience, and by that create preference

© 2006, Strativity Group, Inc.®

All rights reserved.

All templates, questionnaires, and methodology contained herein remain the property ofStrativity Group, Inc. and they are proprietary and confidential.No part of this material may be reproduced, stored in a retrieval system, or transmitted by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the Strativity Group, Inc.

Strativity Group, Inc. - 1719 Route 10 East, Suite 311, Parsippany, NJ 07054, USAwww.StrativityGroup.com [email protected]

Page 3: The Complete Customer Experience Collection - Your ......or services. Allow your staff to add its emotional touch to the overall customer experience, and by that create preference

Table of contents

Is Your Product Really That Great?........................................................................................2Loyalty programs won't work if a company's core product or service is perceived to have little

or no value.

Customers Are So Emotional .................................................................................................4When it comes to building customer relationships, that's a profitable thing.

Do Your Customers See Your Value?....................................................................................6Organizations must show the value of their offerings if they want to command more than acommodity price.

The Power to Serve .....................................................................................................................8Let employees make mistakes—you'll be better off.

Training Is for Dogs...................................................................................................................10Use educational programs to enhance contact center agents' attitudes & skills.

Complaints Are Great. Keep Them Coming ..................................................................12Customers who air their grievances are giving vendors a second chance.

Be a Bag..........................................................................................................................................14Britain's leading handbag and accessories designer lets customers puttheir own identity on the products they buy.

Meet Expectations Before Trying to Exceed Them.....................................................16By trying to reduce costs, companies reduce the overall value they provide to customers and drop performance below customer expectations.

Other People's Customers.....................................................................................................18Stop coveting competitors' CRM savvy and start making changes in yourown organization.

The Disappearing Act...............................................................................................................20We're all customers. So why does our customer mind-set vanish themoment we enter the office?

About Strativity Group, Inc...................................................................................................22

© 2006, Strativity Group, Inc.®

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If you're like many customers you carry several loyalty cards from yourlocal supermarket, video store, or coffee shop (get-a-free-coffee punchcards are popular). How many airline mileage programs do you belong to?Ask yourself a simple question: Do they really work? Do you really shiftlarge amounts of dollars to those vendors? If you are like most consumers,it is simply a way to collect freebies. Loyalty programs are a dime a dozenand everyone does them these days.

The search for customer loyalty is in full gear and not about to stopanytime soon. Companies are spending billions in the name of loyaltymarketing, seeking ways to reward loyal customers and trigger future—hopefully larger—purchases. An entire industry has developed to assistcompanies in loyalty marketing. But a crucial question remainedunanswered: Are your products really that great that you deservecustomers coming back repeatedly.

The question of the core experience, its quality and value in the eyes ofcustomers, is a critical one all companies must address before they rush tocreate a loyalty program. Unfortunately, we often see companies rushing toloyalty programs to cover up a harsh reality: Their products and servicesare not that exciting. These companies seek redemption through freebies tomask the boredom their products or services inspire. A lipstick-on-the-pigprogram that increases the cost of doing business, but does not increasethe overall value provided to customers, is bad business.

A good example is the pioneers in loyalty marketing—the airlines. Since1982, when American Airlines established its mileage program, the industryhas barely demonstrated any visible impact like increased loyalty orimproved margins.

© 2006, Strativity Group, Inc.® 2

Is Your Product Real ly That Great?

Loyalty programs won't work if a company's core product or service is

perceived to have little or no value.

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As a form of customer compensation for ever-depreciating values,customers have taken full advantage of these programs, but the additionalvalue to the airlines' business has been marginal. The struggle the airlineshave had with limiting bonus tickets, increasing the miles required for eachticket, and other tricks demonstrates how the loyalty program simply didnot build loyalty. Why didn't it work? Because the flight service was notauthentically exciting. Airlines' loyalty programs are proof that you cannotfool customers. They will not come back to a lower quality value or boringexperience subject to ongoing value reduction efficiency efforts. Simplyput, loyalty programs will not save you from the truth.

For companies to build true loyalty that actually improves both top- andbottom-line growth, they must address the critical question: Do we havethe type of product that will trigger loyalty? Companies with great productsdo not need a superficial loyalty program. Customers do not needincentives to buy what they perceive as valuable, authentic, and different. Itis much easier to create a loyalty program, but it will not solve the criticalquestion of whether your company is valuable enough for your customers.

Just like a good cup of coffee, a great experience will bring people backnaturally. Authentically appealing experiences are difficult to create, butthey are well worth the effort. Next time you wonder why loyalty isdeclining, skip the inclination to use short cuts. Face the truth. Sit downwith a good cup of coffee (no loyalty punching cards allowed) and considerthe simple question: Are we really that great to merit customers comingback to us?

Enjoy the coffee and the journey.

3 © 2006, Strativity Group, Inc.®

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Emotions make the corporate world uncomfortable. The perception is thatsince emotions cannot be managed well and they are difficult to fit into piecharts or reports, they must be ignored. The efficiency-oriented operationswe so pride ourselves on are full of logic and predictability, and we tend totreat the customer accordingly. CFOs have no clue how to factor emotionsinto their financial models, so emotions are treated as irrational behaviorwe must shy away from.

That thought process is fundamentally flawed. Businesses that buildthemselves on logic only will be expensive to operate. We want emotionsin our relationships with customers. A purely logical customer will shop forthe lowest price every time and will demonstrate no loyalty at all. The costof doing business with those customers will be high, because we will haveto constantly reacquire them through expensive incentives.

When we speak in terms like relationships, loyalty, and experiences, we mustunderstand that those are emotionally loaded terms. We borrowed thoseterms from personal relationships in which individuals prefer a deepercommitment to a single individual over shallow relationships with many.

Relationship means taking a stand and showing a preference. It is aboutmaking an emotional selection and sticking with it. The stronger therelationship the longer it lasts, and the deeper the commitment. This isexactly what we want our customers to do with our products and services.We want them to develop a deeper, longer commitment to our brands—even if they are not the cheapest on the market.

Emotions usually happen in environments that support showing them. Theproblem is that emotions demand mutual commitment, but companies

© 2006, Strativity Group, Inc.® 4

Customers Are So Emotional

When it comes to building customer relationships, that's a profitable thing.

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tend to exploit customers' emotions and to not deliver any in return. That isprobably why there are so few companies that will put emotions in theirname, as Southwest Airlines did with the stock ticker symbol LUV.

It is time to face emotions and understand that they are strengths, notweaknesses. It is also time to realize that even if you cannot place them ina pie chart, it does not mean customers' emotions don't exist. Understandthat relationships and loyalty require reciprocity, and that your companyneeds to initiate it.

So unleash the power of emotions to create differentiation in your productsor services. Allow your staff to add its emotional touch to the overallcustomer experience, and by that create preference and positiveexperiences in your customers' hearts. Build a mechanism thatdemonstrates to customers your sincerity and authenticity so they will bewilling to forgo the next price cut from the competition, and prefer yourproducts despite the higher price.

Emotional customers are not problematic customers. They are customerswho care, who share their views with the world, who pay you a premiumand stay for the long run. In that, they are often your most profitablecustomers.

5 © 2006, Strativity Group, Inc.®

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Strativity Group's recent Global Customer Experience Management Studyrevealed to us that 50 percent of sales professionals cannot justify theprices of their firm's products and services.

Instead, salespeople often blame their discounting on the customers'demand for lower price. But why are customers asking for lower price? Theeasy answer is, because they can. The real answer requires a deeper look atthe value organizations deliver.

Many businesses and customers fail to fully appreciate the value of whatthey purchase, and as such they ask for a discount. They do not see theclear correlation between the value delivered and the price they are beingcharged. This is the essence of commodities. If customers fail to see value,they regard your products or services as commodities, easily replaceableby other similar products.

Commoditization was accelerated in the past few years as companiesreduced their total value through cost-reduction efforts. Delivering morevanilla and uninspiring—a.k.a. boring—products and services, companiessignaled that their products are not worth the money they ask for them.

The problem is even more acute in certain industries where comparison iscomplicated (wireless phones) or the product is intangible (insurance orbanking). In those cases the burden is on the vendors to create new toolsand methods that will demonstrate to the customers the value provided.

Organizations need to help customers visualize the value they deliver tocustomers, who will in turn appreciate the overall experience. Thisappreciation will translate to a reduced churn rate and premium prices, ifthe value visualization is correctly executed.

© 2006, Strativity Group, Inc.® 6

Do Your Customers See Your Value?

Organizations must show the value of their offerings if they want to

command more than a commodity price.

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Visualizing value is a serious challenge, especially in today's overcrowdedmarketing-communication world. Customers often cannot tell thedifference between products, and companies do not demonstrate a clearenough differentiation to justify a premium price. Very few companiessucceed in establishing their value in a visual way.

As you plan this year's business activities to deliver a more complete andexciting experience to customers, remember this fundamental rule: If yourcustomers cannot see the value, they will not appreciate it and will not payfull price for it. Creating value visualization tools requires a deeperunderstanding of the customers' total experience and the way customersview your products and services. The creative work of designing ways tosend a visual image to customers to help them appreciate and differentiateyour products then starts.

Verizon's famous “Can you hear me now” ad campaign helped thecompany to defend its retention rate and increase the customer base, whilekeeping its prices fairly stable in a tough competitive environment. Verizonsucceeded in achieving those results by creating a way for customers tovisualize Verizon's quality assurance. By doing so Verizon shiftedcustomers' considerations from pricing to quality.

Regardless of how great the value you deliver is, if the customer does notsee it, it is useless. As you design and improve your products, services, andexperiences, you must consider value visualization. Customers needconstant reminders of why they should stay in business with yourcompany and pay fair prices for the value you deliver. It is yourresponsibility to deliver that experience, which is an integral part of thetotal value proposition. The sale is never over.

7 © 2006, Strativity Group, Inc.®

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Empowerment is one of those strange management concepts. Everymanager claims to provide it in abundance, but many employees don't feelthey have any. How do you explain such a contradiction? There are severalways to approach the issue. It was best expressed during one of ourconsulting engagements when an employee said, “In our company we areall empowered...to make the right decisions.” Empowerment to make theright decisions is not empowerment; it is a fear-based control technique.When employees feel that they are only empowered to make the rightdecisions, their inclination is to make none. The possible repercussions ofmaking wrong decisions are stronger than any other threat a manager canuse to shape them into obedience and compliance.

In Strativity Group's 2004 Global CEM Study 31 percent of the executivessurveyed claimed that they have the tools and authority to service andaddress customers' issues. This is a drop from 37 percent of therespondents who claimed the same statement in our 2003 study. To clarify,more than two thirds of the executives did not feel that their companyoffers the right environment and tools to do their job. They show up towork every day with a task they are not equipped to accomplish. You canonly imagine what messages they send to their employees.

Empowerment is a difficult issue for many managers because delegatingpower is perceived as losing power. They view authority as a zero-sumgame—the more they give, the less they have. The more they delegate, theless they are relevant and needed in the organization. They may argue: Ifthe employees can make all the decisions and are empowered to makemistakes, then why do they need me? So these managers will continue toclaim they empower their employees, but will make sure such

© 2006, Strativity Group, Inc.® 8

The Power to Serve

Let employees make mistakes—you'll be better off.

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empowerment is applied to the right decisions only—the decisions that willmake the managers look good.

Another challenge of empowerment is the employees' willingness to takepart and take responsibility in the company's future. It is often assumedthat employees are ready and eager to assume more responsibility in theform of empowerment to make decisions on behalf of the company. Weought to remember that empowerment is not a fun perk: It means moreresponsibility and accountability for your decisions. If the company doesnot provide employees with the incentive and motivation to be part of theorganization, they will be reluctant to assume the additional responsibilityrequired as part of empowerment.

So here we are in a cycle of managers and employees struggling towardempowerment, each group for its own reason. Who pays the price? Thesame person who keeps on paying the price, the customer. She is beinghassled through a maze of underpowered employees and heavilycontrolled, authority-driven measures that are geared toward protectingpersonal agendas and power centers, not toward servicing the customers.

As simple as it sounds, the power to serve customers becomes adifferentiating factor. Customers will grant loyalty to those who are nothassling them. It is common sense, but only 31 percent of the companiessurveyed managed to implement it. As you approach the changes requiredto empower your people, remember that both employees and managersneed to be addressed. Think about your company's approach to mistakes:What happened to people who made mistakes in your company? Were theypromoted or fired? Did you celebrate mistakes or hold them as an exampleof the wrong thing to do?

Mistakes are the result of employees who take risks—the type of risksthat will lead to excellence and breakthrough. Do not crush that spirit,embrace it. Celebrating mistakes will send the message of empowermentbetter than any memo can. It will be a wonderful, not mistaken, step inthe right direction.

9 © 2006, Strativity Group, Inc.®

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All too often training programs represent a set of restrictions that tie thehands of contact center agents and other customer-facing employees, andprovide the best excuse why not to service customers well. Built withcontrol in mind, these training programs are about following proceduresand adhering to guidelines. They send a message that the procedures arewhat matter. Rarely do we see principles-based education that allowsemployees to use common sense to solve the customers' problems, anddeliver a pleasing experience.

When you train your people with procedures and rules you train them tofocus on adherence to corporate matters. In the process you strip them ofany form of responsibility, because they realize that the only responsibilitythey have is to follow the rules. Performance evaluations often reinforcethis priority over any other.

To improve this situation let's start with a basic: terminology. Training is fordogs. We train dogs to repeat actions and not to be creative. Education andlearning are for people. We educate them to assume responsibility andcontribute to the company, and then we must allow them to do so. So thefirst step is to change the terms.

The next step is to create a comprehensive learning experience. A goodeducation program should focus on providing data that empowersemployees to execute well, and then allows them to use their commonsense to resolve customer issues. The most important information yourstaff must have includes: 1. company's financial data2. products or service profit margins and costs 3. customer history

© 2006, Strativity Group, Inc.® 10

Training Is for Dogs

Use educational programs to enhance contact center agents' attitudes & skills.

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4. customer profitability5. customer preferences6. the average cost of a complaint

This information will allow employees to use their judgment and apply it totheir decisions and solutions. By having this information readily available,they are able to solve the customers' problems faster and more effectively.

Take, for example, my recent trip on Virgin Atlantic from New York toLondon, during which the entertainment system did not function. To myamazement the crew immediately offered free duty-free items or 10,000miles to passengers to compensate them for the hassle, and offereddifferent levels of compensation to economy class passengers from whatwas offered to business class passengers.

When I asked about how the flight attendants handled the situation I wastold that they do not have a procedure regarding such an incident.However, they explained to me that the cost of opening a complaint isL25 (approximately $40) and that is before the cost of resolution. Theflight attendants applied their common sense and decided to solve theproblem faster and before customers would have actually complained.(What a concept!)

If this idea is so simple, why aren't more companies doing it? One reasonis simple: They don't have all the data. Most companies have nevercalculated the cost of a complaint.

But that is the easy part. The hard part is the delegation of power.Managers often feel that empowering employees with this information willrelinquish too much power to the employees and make the managersirrelevant. It is time for those managers to understand that power is not azero-sum game. The more you give, the more you will have. The better youremployees perform and delight customers, the better they will look—hence, the better you will look.

It is time to put the responsibility where it belongs, into the hands of thepeople who deliver the service. Empower them with the knowledgerequired and set them free to execute.

11 © 2006, Strativity Group, Inc.®

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Most companies consider customer complaints a primary source of theirongoing corporate headache. It is the part of the job that most peoplecould do without. After all, who enjoys talking to upset people who are onthe verge of screaming?

But most companies do not understand the nature of complaints and whatthey truly represent. Complaints have a completely different meaning fromthe customer viewpoint than from the company viewpoint.

Customers do not enjoy getting upset. They hate waiting on hold for 15minutes listening to a message about “how their business is so importantand their patience even more,” just to voice their grievances.

Customers are seeking something more fundamental when they are callingto complain. They are trying to rectify a conflict, and basically are seekinghelp from their relationship partner (you, the company).

Complaints also represent second chances. Customers are giving you arare, second opportunity to make things right. They in a sense are saying,Help me stay with you and not defect—give me a reason to believe in youone more time. This is a rare plea that every company must embrace andact on immediately. After all, the alternative is worse: those customers whoare upset and did not even bother to call you.

When a customer calls to complain that his hotel room was dirty and hecould not sleep due to noisy air-conditioning, the wrong response is to besorry about it. By saying sorry and leaving it as such, you are suggesting tothe customer that the problem is somehow his fault. How otherwise wouldyou explain the fact that you have done nothing about a problem that wasyour responsibility?

© 2006, Strativity Group, Inc.® 12

Complaints Are Great. Keep Them Coming

Customers who air their grievances are giving vendors a second chance.

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© 2006, Strativity Group, Inc.® 13

Complaints Are Great. Keep Them Coming

Customers who air their grievances are giving vendors a second chance.

Most companies consider customer complaints a primary source of theirongoing corporate headache. It is the part of the job that most peoplecould do without. After all, who enjoys talking to upset people who are onthe verge of screaming?

But most companies do not understand the nature of complaints and whatthey truly represent. Complaints have a completely different meaning fromthe customer viewpoint than from the company viewpoint.

Customers do not enjoy getting upset. They hate waiting on hold for 15minutes listening to a message about “how their business is so importantand their patience even more,” just to voice their grievances.

Customers are seeking something more fundamental when they are callingto complain. They are trying to rectify a conflict, and basically are seekinghelp from their relationship partner (you, the company).

Complaints also represent second chances. Customers are giving you arare, second opportunity to make things right. They in a sense are saying,Help me stay with you and not defect—give me a reason to believe in youone more time. This is a rare plea that every company must embrace andact on immediately. After all, the alternative is worse: those customers whoare upset and did not even bother to call you.

When a customer calls to complain that his hotel room was dirty and hecould not sleep due to noisy air-conditioning, the wrong response is to besorry about it. By saying sorry and leaving it as such, you are suggesting tothe customer that the problem is somehow his fault. How otherwise wouldyou explain the fact that you have done nothing about a problem that wasyour responsibility?

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Here is a case in which your product was defective and yet you leave thecustomer to bear the consequences of your wrongdoing. The last thing thecustomer wants to hear is that nothing is done about it, which is how thecustomer views your actionless “sorry.”

Even the smallest action-based gesture can diffuse the potential anger. Bysending a small token of apology (a music CD, movie tickets, extra-milespoints, etc.), you will be taking responsibility and demonstrating that youown the problem.

Speed is a critical factor in the process. The resolution must be presentedimmediately and without layers of management approval. This is how youturn the customer into a happy one and turn your second chances into aloyalty-building activity. Rest assured that this happy customer will sharehis experience with others and will buy from you again very soon (and bydoing so will cover the costs you incurred by taking the responsibility forand ownership of the problem, and not just paying lip service to it).

Remember, customers have a choice when facing a complaint: They cancall you or call your competition. Complaints are second chances, and wedon't get too many of those. They're also opportunities to help customerswhen they really need us, and to differentiate ourselves from the rest of thecompetition. They're great opportunities—keep them coming.

14 © 2006, Strativity Group, Inc.®

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How inclusive is your customer experience? Do you conduct the usualcustomer studies and allow customers to send you their thoughts, only toleave them with no real choice but to accept your terms? Or do you adaptto a truly participative model in which customers can determine what theywant and how they want it delivered?

The above headline is not original—I stole it from a brochure produced byAnya Hindmarch, one of Britain's leading handbag and accessoriesdesigners. What caught my attention and inspired me is that Hindmarchallows her customers to participate in the creation of their handbags byproviding a personal photograph that is then expertly transposed onto oneof her beautifully designed bags. Talk about customer experience!

Unlike most companies, which define customer participation in productcustomization by providing a suggestion box, Hindmarch takes it to thenext level. She invites customers to assist in the design process, andagrees to put her brand logo on these unique, customer-designed products.The result is a tailored, one-of-a-kind bag, together with the endorsementof a brand name. She allows every customer to be as unique as each wantsto be, and steers clear of the one-size-fits-all bag (and experience) availableeverywhere else.

In Hindmarch's model, however, both the designer and the customerparticipate in the creation and fulfillment of the experience. Each contributesdistinctive insight and skill. This results in a very individual experience forthe customer, a one-of-a-kind solution not shared by others. The “Be a Bag”experience is participative, individual, different, and inclusive.

A participative approach does not have to cause major disruptions tooperations. Little things like allowing customers to determine their

© 2006, Strativity Group, Inc.® 15

Be a Bag

Britain's leading handbag and accessories designer lets customers put

their own identity on the products they buy.

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payment terms or the time of the month when you send them invoices willgo a long way toward a participative, inclusive experience.

And it's not just about being nice. You build barriers to defection and fostercommitted, dependent, long-lasting, and profitable relationships. Youreduce your dependency on price as your only differentiator, and give yourcustomers non-price reasons to remain loyal. Finally, you veer away fromthe commoditization trap of eroding margins and little perceived value.

Inclusion of the customer in the total experience is far from where it shouldbe. Stopping at surveys means stopping short of great potential. The moreparticipative and inclusive you can make your experiences, the moreaddictive they will become to your customers.

This is the next front of differentiation. It is far more than the message onyour brochure: It is where true customer intimacy comes to life. The moreinvested your customers are in the experience, the less reason they willhave to go elsewhere. The more participative the experience is, the morecustomers will pay.

So go ahead—let them be your bag. Open the doors for your customers tobe true participants in the total experience. You owe it to them and you oweit to your business.

16 © 2006, Strativity Group, Inc.®

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In the pursuit of delighting customers, companies are rushing to declare anew frontier: exceeding customer satisfaction. The problem is, companiesare often so far removed from meeting even basic customer expectationsthat exceeding them is almost impossible. Throughout the years, multiplecost reductions and efficiency initiatives have caused companies todevelop myriad processes that prevent simply meeting customerexpectations. Companies making objectives to exceed expectations areoften met with customers' skepticism, because they are still struggling toget basic service and support from those companies.

One of our clients had a procedure that only allowed customers to complainwithin 21 days after an event. After that time, the response customers gotwhen trying to register their complaint was that it was simply too late. (Whoknew that like milk, grievances expire after a short period of time?) Theassumption by the company was that by eliminating all the “old”complaints they could save money and reduce costs at the call center.

Call centers are rife with such poor practices and procedures. Another badpractice is to assign a limited number of phone lines to the call center. Thislowers the call volume and costs associated with it, but businesses end uppaying anyway: More busy signals will frustrate more callers. Still anotherpoor practice is minimizing the authority of employees to settle customerdisputes. Ultimately, the customer is dragged through a maze of managersand supervisors to clear up a $20 disputed invoice. Behaviors such as thesehave mushroomed over time, and now degrade customer experiences tothe point of unprecedented lows.

The aspiration to exceed expectations is admirable, but customers willappreciate a much more attainable goal: meeting their expectations.

© 2006, Strativity Group, Inc.® 17

Meet Expectations Before Trying to Exceed Them

By trying to reduce costs, companies reduce the overall value they provide

to customers and drop performance below customer expectations.

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Adding a little humanity and common sense to solving problems goes along way to building loyalty. I understand that exceeding expectations doessound inspirational and exciting as a corporate mantra, but in the spirit oflistening to customers, we may want to start with just doing that. Don'theighten customer expectations only to not meet them—that's a moreserious crime than not meeting lowered expectations.

Review your employee manual and operating procedures and ask yourselfthe following:• Are these the procedures of a customer-centric company? • Are they designed to protect and delight customers, or to protect and

delight CEOs? • Does it make sense to conduct business this way? Is it profitable?• Are these procedures designed to address abusers or mainstream

customers?

Answering these questions should allow you to identify opportunities tochange processes and procedures, and to start designing the way youconduct business from the customers' perspective. If you believe thatdelighting customers is profitable for you, you will soon realize that thecustomer perspective is your perspective as well.

The first order of business in meeting customers' expectations is toidentify those conflicting procedures and remove them. It is the first andcrucial step to exceeding expectations. I know that meeting customerexpectations doesn't sound as exciting as exceeding expectations, but it isreal and it is possible.

18 © 2006, Strativity Group, Inc.®

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For years we have been searching for the right formula for customerrelationship success. We've heard the gurus and bought the books. Wewere inspired by the Ritz-Carlton's commitment to outstanding service. Wewere jealous of Southwest for the fun environment in which its employeeswork. We craved Starbucks' customer commitment and rushed to buy aVenti Caramel Macchiato to get a taste of that fabulous relationship-building style. We were ready to turn the world upside down for customers.But, we didn't.

What went wrong? Why is it that we marvel at others' success strategies, yetdon't formulate our own? We have plenty of financial and qualitativeevidence to justify a better commitment to customers. Still, nothing happens.

We did not act for many reasons—and none of them is due to lack of ideas,knowledge, or examples. Other companies took the risk and jumped intothe cold water before us. These pioneering companies made the mistakesand fine-tuned their approach to CRM, which can help prevent us frommany pitfalls. These companies also reaped the benefits in a big way.

I argue that underneath the surface there are at least five major issues thatprevent us from execution. Acting requires recognizing and addressing them.

Fear of change - Many of us are comfortable enough to keep the systemoperating the way it is. Change is often intimidating, and causes internalresistance. We have not gathered enough strength to actually turn ourideas into action, despite the inspiration. Our perceived internal obstaclesseem more powerful than our perceived ability to execute.

Immediate dismissal - We do not want to give change a real chance in ourown organization, fearing failure and ridicule. We have been there before,

© 2006, Strativity Group, Inc.® 19

Other People 's Customers

Stop coveting competitors' CRM savvy and start making changes in your

own organization.

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and have seen others being dismissed for bringing new ideas. “This is nothow we do things here,” was the response. So, we convince ourselves thatCRM will not work in our workplace. In a sense we become the immediatedismissal we so fear.

Size matters - We often perceive the challenge to be too large anundertaking with too substantial a risk. “I am too low/small in theorganization to do it. This is the CEO's job,” we say to comfort ourselves. Inreality, we are as small as we allow ourselves to be.

Fake humility - “No one listens to me anyway,” we often tell ourselves. Inan amazing acceptance of the virtue of humility, we drive the message toourselves that we are just not the type for such a challenge.

Too big/too bureaucratic/too...whatever - Our organizations, we convinceourselves, are not made for such a thing. Customer individuality is forsmall and nimble companies, we want to believe, as we again spin ourrefusal to drive change in large companies.

There is some truth to each of these arguments. However, it does notnegate the fact that these are all excuses.

Individuals with courage and conviction drive change. Stop admiringothers' CRM successes, and start acting to create your own. Choose tomake the right impact on your company.

20 © 2006, Strativity Group, Inc.®

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When we wake up in the morning we are customers: We brush our teeth—we are customers of the toothpaste company. We get dressed—we arecustomers of the clothing companies. When we drive our cars we arecustomers, as well.

But then a transformation occurs. Just as we enter our offices we drop thecustomer mind-set and assume a new one: We become executives. We stopthinking like customers. Throughout the day we completely forget aboutthe customers' feelings and concerns. Then at 6 p.m., as we leave theoffice, a reverse transformation takes place. Our executive mind-setdisappears and reverts to the customer mind-set.

As people who are in charge of pleasing customers, we should be welltrained to know and understand their needs. Instead, we find ourselvesagain and again puzzled by customers' needs, and we fail to address them.Unlike other jobs where the practitioners cannot assume the role of therecipient, we should have natural training. We are all customers. Acardiologist might never really know and feel the pain of her patient. Thefirefighter may never fully understand the impact of losing all of hisbelongings in a fire.

Customer practitioners, on the other hand, receive daily training in theform of service from other vendors. They are very well acquainted withwhat constitutes unacceptable service. They have a clear idea of what itmeans to please and exceed their expectations.

So, why is it that we do not apply this knowledge and understanding to ourexecutive decisions, and make the right decisions for our customers? Weneed only make the same decisions we wish our vendors would make for us.

© 2006, Strativity Group, Inc.® 21

The Disappearing Act

We're all customers. So why does our customer mind-set vanish the

moment we enter the office?

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Often executives make decisions based on corporate restrictions andrequirements. They may face a situation in which their hands are tied andthey cannot do the right thing for the customer. They often know what theright decision is, but instead they make the very same offer they wouldflatly reject if asked of themselves as customers. Processes and guidelinesoften conflict with managers' common sense. These processes may beefficient and cost-effective, but they are created without the customers inmind and are not designed to retain customers in the long run.

Before companies rush to declare the customer-centric program du jour, theyneed to stop and take a serious look at their own processes and procedures.They will often find that they send conflicting messages to their employeesand managers. On the company walls a poster of a smiling customer will callfor sensitivity and commitment, while training and compensation dictate anentirely different focus. This conflicting situation forces employees torepresent and defend procedures they do not believe in.

Therefore the first act of a customer-focused business model is not anotherbig promise—it's to untangle confusing corporate guidelines: Unbind thehands of employees and managers, and allow them to do what theynaturally want to do and believe is right. Eradicating the internal conflictfaced by employees and managers will go a long way towards deliveringcustomer-centric service. Simplifying processes, removing conflicts, andproviding consistent guidelines is the first order of business needed to getcloser to customers. As customers themselves employees know whatneeds to be done—but they need corporate guidance and support to do it.

Allowing employees to be customers all day long will release a new way oftreating and delighting customers. There is no better way to forge a lasting,profitable connection than by freeing employees to do what is right.

22 © 2006, Strativity Group, Inc.®

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About Strat iv ity Group, Inc.

Strativity Group, Inc. is a global consulting firm advising organizations oncreating lasting, profitable relationships with their customers and employeesby transforming corporate strategies and execution guidance to revolvearound the customer experience. Customer Experience Management (CEM)strategies enable companies to bridge the inherent product focus and createtrue competitive advantages by focusing on the customer.

Strativity Group, Inc. works with both Global 2000 companies as well asemerging businesses around the world. Our clients include ComputerAssociates, FedEx Europe, Hewlett Packard, Honeywell, AmericanManagement Association, SAP, Siemens, Seagate Technology, CDI Groupplc, Orange, Tremco, Toyota, Tata Telecom, Herbalife, IPQC, Dimension Data,Magic Software, Polivec and TMW Systems. Strativity Group brings theexperience and knowledge to allow organizations to successfully transformtheir businesses into a customer-centric operation.

____________________________

Strativity Group, Inc.

1719 Route 10 East, Suite 311Parsippany, NJ 07054, USA

[email protected]

© 2006, Strativity Group, Inc.® 23