Thursday, July 24, 2008

Customer Experience

The Customer Experience—easier said than done
By Paul Herbig

The Customer Experience - it's the sum total of the FEELINGS evoked as a result of ANY interaction that takes place at ANY touch point in the

organization. It's based on the PERCEPTION of the value
delivered, both tangible and intangible. Most companies talk the good talk about customers, about customers being their number one priority, about being a customer centric organization. But when push comes to shove, the customer gets the short stick.

Once upon a time, quite recently, Delta Air Lines surveyed some of its customers, asking whether they'd be willing to pay a fee to talk to U.S.-based customer-service representatives rather than having their calls directed offshore. Frequent fliers were outraged, and before long a frank op-ed article by the company's chief customer-service officer appeared in The Atlanta Journal-Constitution . In it, she renounced the plan, quoted CEO Gerald Grinstein -- "That darn question should never have been on a survey" -- and noted that "creating a 'customer-focused culture' is a central element of a new plan to transform Delta and its business model."
True, the folks at Delta are in quite a pickle, and you can't blame them for brainstorming ways to save cash. But their example illustrates the issues at play for consumers today. Market forces such as offshoring are transforming service. Too many CEOs are removed from the customer. Coddling customers can seem like an expensive frill in tough times, a cost to be cut when it's time to make next quarter's number. And yet more and more companies are talking about creating a more customer-focused culture. "I think people are starting to understand that the customer experience is the next competitive battleground," says Tom Knighton, who heads the customer-experience practice at consulting firm Forum Corp. "It's where business is going to be won or lost."

But as Delta shows, talking about focusing on the customer and actually doing it are two completely different things. That's what makes truly customer-centric companies so worthy of our attention. They constantly try to innovate and manage based on what their customers want, not just on what they can sell to them. They do not delegate the customer experience to marketing or operations; it is a core function that has support at the highest levels of leadership. Companies that put customers first win their loyalty, and in our minds deserve to win even more.
The names that often float to the top were those that not only provide good service but a rich experience, too. The total customer experience -- the service, the quality, the design, the brand attributes -- connects on an emotional level, keeping customers satisfied and feeling well-served, as well as loyal. Chick-fil-A bonds with its customers through friendly, speedy service and by communicating its values of humility and compassion. Wegmans builds a marketplace-style atmosphere that's underpinned by its employees' deep knowledge. Mini USA engages its impatient customers with fun, customizable technology. Trader Joe's feeds customers with its authenticity and uniqueness. And Progressive reassures its insurance customers during a time of crisis through on-the-spot service.

Two categories also clearly emerged as more important than the rest. They are, not surprisingly, the ones that most depend on people. Without customer-centered leadership and without the right employees in place to deliver great service, other plans and programs won't amount to much. In fact, many customer-focused leaders talk about the value of putting employees first. Take care of your staff, this thinking goes, and they'll take care of your customers. Put your customer first and they will take care of you first.

A few extra bucks for customer service, a few extra bucks for trained staff, a few extra bucks for incentives to provide superior customer service, will pay off 100 to 1. With odds like that, it is surprising more companies do not gamble on a sure thing such as customer service.

Paul Herbig is the Managing Partner of Herbig Marketing Associates, (www.herbigandsons.com) a nationally renown marketing consulting company and former Professor Marketing and Dean, Ketner School of Business for Tri-State University. He can be contacted at mktgandme@aol.com.

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