This document discusses the importance of customer experience (CX) as a key differentiator for competitive advantage. It notes that by 2020, CX will overtake price and product as the main brand differentiator for most businesses. Creating positive customer engagement through intelligent integration and analysis of customer data, appealing to customer emotions, and understanding the full customer buying cycle can increase sales opportunities and customer loyalty. The best companies, like Disney and Ritz Carlton, strategically focus on balancing technology with humanization to consistently improve the customer experience.
24. • AAA Four and Five Diamond Award - January, 2015
• Forbes Travel Guide 2015 Star Awards
• Travel + Leisure World’s Best Awards 2015
• U.S. News & World Report 2015
• Condé Nast Traveler Gold List 2015
• Condé Nast Traveler Gold List 2014
• Condé Nast Traveler Hot List 2014
• Travel + Leisure and Fortune 2014
• Best Hotel Brand for Business Travel Travel + Leisure an
• Best Hotel Brand for Customer Service
RITZ CARLTON SERVICE AWARDS
So, let’s start at the very beginning, by defining the difference between customer service and customer experience. Customer service is undoubtedly an important part of any service strategy and it has served many companies well to date, but focusing on customer service alone is taking a one-dimensional view of the customer (1d slide) which has traditionally focused all service efforts on the face to face interactions that front-line employees have with a customer, whether that is at a restaurant, a retail outlet or by means of a sales representative.
Customer experience on the other hand requires us to take a 3d view of our customer, from the time they even think about using products and services, all the through the purchase cycle and level of after sales satisfaction. It requires that we carefully analyze and dissect every single touch point where a customer engages to find out how we can do it better.
Let’s take the restaurant visit as an example. Customer Service focused companies do some advertising and hope their customers arrive and when they do, they incentivize their waiters to smile and give them good service. Now there’s nothing wrong with that, it’s just not enough anymore. Customer Experienced focused companies understand that a visit to a restaurant starts long before a customer arrives and order their food. They look at what drove the customer to choose that restaurant in the first place and how can we get their attention and influence that decision earlier in the process. They analyze what a customer would find if they searched the internet for a restaurant in their area and if website came up, what was on the website that either influenced them to come to or influenced their decision to go somewhere else. A strong cx strategy then traces every single step and interaction a customer has with the restaurant to see how it can be improved. Finally, they do not just let those customers walk out of the door, without finding some innovative way of getting their details, so that they can engage with them again in the future.
The important message in that video is that customers today cannot be segmented into age or generation, because every single person on the planet is using technology for convenience. I mean hell, my 87-year-old Mother does her banking on her tablet and the only way she knows where I am every day is by following e on FB. And heaven help me, last week she asked me how to open an Instagram account because she saw them using it on the Kardashians. Ok moving on…..
Absolut Vodka (Alcohol)
Absolut Vodka were looking for ways to improve their customer experience by eliminating the hassle of them having to go all the way to the shop to buy their Vodka. So, Absolut created a ‘smart bottle’ which now senses when the liquid is almost finished and remotely orders you a new bottle and has it delivered to your home.
Rolls Royce
Not to be outdone, Rolls Royce have created a vision for the next 100 years campaign, that is totally centered around the customer. With the new Rolls Royce, you don’t even have to call it or drive it, you simply get in and it drives itself, while you entertain your friends.
So yes gentleman, you’re going to have to up your game if you want a date with a beautiful lady in the future.
But even these innovative companies are in for some tough competition, if we think that UBER disrupted the Taxi industry a few years ago, well let’s take a look at what they are planning for the future. Uber are already in the advanced phases of launching their Autonomous Flying Drone Taxis which can carry one passenger with a max weight of 220 pounds, for a distance of 40 -50 km’s on one charge with a top speed of 100 mph. Dubai officials pilot them from a centralized command center, and the city says it’s already started test flying the vehicle in Dubai skies and expects them to go mainstream by 2020. They are also currently working on a self-drive version.
I have a couple of concerns with this one, heaven help us if any of the Joburg taxis drivers get their hands on one of these drones, but more than that, I hope they make them a little bit bigger just in case a few Bulls supporters want to get in.
Finally, I just had to show you this one that I found last week, This is for those critics who tell me that they can ‘t drive a better customer experience because they are just an accounting company or just an engineering company. we now even have Intelligent toilets!!!
Yes, Kohler have launched their Intelligent Toilet and in the advertising campaign, which is totally focused on driving a better experience; they tell us that this loo offers the perfect balance of art and technology, it has a sleek look of sophistication and that tomorrows comforts are here today.
With refined curves and crafted for comfort, you don’t even have to lift the lid of these innovative latrines, they sense when you are coming and open the lid for you (I’m sure that there are many married women in the audience who will be happy to hear that) no only that, but they automatically sanitise themselves every 24 hours and come standard with a remote control
And so, ladies and gentlemen, whatever industry you are in, the bar has already been set extremely high and only those companies who go out of their way to meet the wants and needs of their customers will be the ones who continue gaining market share in the future.
SLIDE - CHANGE STRATEGY FROM PROFIT TO CUSTOMER
SO where do we start to create a cx strategy that will ensure that WE REMAIN RELEVANT IN THIS CONTSTANTLY CHANGING ENVIRONMENT - WE’VE GOT TO SHIFTING OUR THINKING
Firstly, change has to start at the very heart of the organisation, with its leadership and the focus of its strategy. Traditionally, companies have always placed profit at the centre of their strategy and built their businesses and committed all their resources to focusing on profit. The companies I demonstrated earlier have changed this whole outdated mindset and focus their strategy and everything around it on the needs of the customer. It makes sense that if we are fulling the wants, needs and demands of our customers, not only will profit follow, but so will customer retention and increased loyalty, which will in turn again, convert to profit.
One of the most prominent customer service success stories ever, is that of the Ritz Carlton
And I offered wondered what they did to get it right, year in and year out.
Employee engagement and empowerment
The next thing we should be looking at is the customer buying cycle. Traditionally we have focused all our efforts and resources on the ‘point of purchase’. In fact, research shows that 44% of companies focus more on customer acquisition than they do on customer retention and we all know that it costs more than 5 times the amount to acquire a new customer than retain a current customer. The probability of selling to an existing customer is 60 – 70%, whilst the probability of selling to a new customer is between 5% - 20% So; let’s take a closer look at a customer buying cycle, we’ll see that it presents us with multiple opportunities to interact and engage with customers and that’s where the secret lies.
Increasing customer retention rates by 5% increases profit by as much as 25% - 95%
SELL THE EXPERIENCE – NOT THE PRODUCT
And this applies to any business you may be in – well I suppose the Kohler Intelligent toilet is testament to this phrase isn’t it.
It’s like when most people go to buy a buy, well me anyway, if a sales person tells me that it’s got a 3l fuel injected engine with turbos that give it 500 kilowatts of power and a more torque than other cars, I not only have no idea what he’s talking about, but it means nothing to me, it doesn’t move me emotionally. And it’s not going to make me buy the car. But if the salesman says to me it’s safe, reliable and it has the smoothest ride in its class and by the way, you’ll look like a million dollars driving down the highway with the roof down, I’m going to buy that car.
The fact that Montecasino has been the top entertainment destination in South Africa for over 10 years is also not by mistake or due to good luck. Over 10 years ago when I was at Montecasino, they created a ‘Mind & Mood’ management department that is responsible for every single thing you see, hear and feel in this Tuscany style village. You wouldn’t notice, but they cleverly put the smell of popcorn through the aircons at certain times to drive you to go and watch a movie or late at night, they pump the sweet smell of rose blossoms through, so that you feel fresh and happy. Experience is not achieved by mistake, it is achieved by forward thinking people in companies who have the courage to implement it.
In the same vein, but from a sales angle, Sun International realised that they could not keep selling hotel rooms, because they were just one of millions of hotels selling rooms every day. So last year, sun international bought Virtual Reality sets for their sales team and filmed all the interesting, exciting and unique experiences visitors can have around their hotels and resorts and their sales team now use vr to sell the experiences available at their destinations with very little emphasis on their rooms.
Finally, we have to find a point of competitive differentiation with our products and in our industries and many people say to me Lynn that is impossible, we sell auditing or we sell machines just like everyone else, how are we supposed to differentiate ourselves. Well I want to show you how Coca Cola did it. I’m sure you will agree that the cola market is as saturated as any other you may like to mention, but in true Coca Cola style, they continue to innovate and find new ways to drive a different and better customer experience. Let’s have a look at what they did a couple of years ago
Coca Cola cap ad
What Coco Cola teaches us here, is that in order to remain relevant, drive sales and increase customer loyalty, we need to challenge conventional thinking, we need to smash stereo type mind sets and we have to reconsider how, when and where our products and services can be changed, redesigned or even replaced in order to meet the needs of todays customers.
I was thinking about this concept recently and I know that its not easy to challenge norms and do things differently, but just imagine if we did, imagine the possibilities. Here’s what I was thinking about:
i.e. For instance, when we go shopping, why are we charged more for parking if we stay at the shopping centres longer? Surely landlords should be encouraging us to stay longer and giving us a financial incentive to do so.
Why are we charged more for a flight if we want to book the day before we leave? If there are seats available on that flight, chances are they are not going to sell them all before it takes off, so why not incentivize customers to pay half the price if they book the day before, because 50% of the revenue of the seat is better than no revenue at all.
Why are we charged the same rate for a hotel room, whether we stay one night or 5 nights? Surely hotel companies would rather have bums in beds at half the price, than no bums in beds at all, because if you stay at the hotel, you can be say with almost absolute certainty that the customer will either visit the bar and have a few drinks or eat at your restaurant and we all know that food and beverage is more profitable than beds.
Even as a speaker, I have had the conversation with my agent about why they charge double if a client books me for a keynote speech and a customer journey mapping intervention. Surely it is their best interest, my best interest and the best interest of the customer to have me there for 3 hours rather than one hour and they would get more value. I’m there anyway, yes there is a cost, but its certainly not double.
10 mins
Convenience is the biggest driver of profitability today, this has been well demonstrated by Uber, Airbnb, Amazon.com, Alibaba and they like.
But it’s when we combine convenience and personalisation that the magic happens and this is all about the intelligent integration of data. Let me show you an example: -
Airbnb
Without a doubt, one of the companies who have done an exceptional job of remaining
Relevant is Disney.
When you think about it, Disney build their famous brand on delivering great customer experience,
But the difference with Disney, is they never stop looking for ways to improve their customer exp.
In fact, in 2014, Disney invested…………………….
This one is close to my heart, as I was fortunate to study customer service at DisneyLand in
Florida a number of years ago.
Hotel entry card
The method by which you book to go on all the rides at Disneyland
Its how you pay for your travel
Its how you buy cooldrinks, pay for hotdogs and hamburgers
Its how you book and pay for restaurants
URUP app demo 5 mins
Ladies & Gentleman, I hope I’ve dispelled any doubts you had about cx being just another business school buzzword and I wish you well with your endeavors in driving a better cx to dramatically increase your completive advantage moving into the future.