Customer Experience

Make something consumers love

  • Thursday, 12 July, 2007
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Bubblegum generation presents a compelling model for Apple’s iPhone strategy:

1) Pick an industry which sucks (ie, imposes significant nuisance costs/menu costs/externalities on consumers)
2) Redress the imbalance by making something consumers love
3) …Which disrupts the long-standing industry equilibrium, and shifts market power
4) Use said market power to redesign (a hyperefficient) value chain

Don’t think that organisations in industries that suck don’t aspire to “do an iPod”. Go to any proposition development or product strategy workshop and it won’t be long before someone is mentioning Apple products. Yet all too often they fail to do anything truly revolutionary; they end up doing something different rather than “Redress(ing) the imbalance by making something consumers love”.

Do customers want something that is different or something that is just better?

Interestingly, little functionally in the iPhone is new. Like every other phone on the market it makes phone calls, sends messages, receives emails, takes photos and allows users to listen to music. Nothing different or new there… other than being better than every other phone on the market.

What Steve Jobs espouses is the experience of the phone. He says “So, we’re going to reinvent the phone. Now, we’re going to start with a revolutionary user interface… Now, what’s the killer app? The killer app is making calls! It’s amazing, it’s amazing how hard it is to make calls on most phones.”

He’s not looked to do anything radically different, rather do it radically better.

So how do you bring revolution to your product set? Rather than trying to be different, why not try to better. Make something that consumers love?

Take a leaf from the Apple book and focus upon the experience. Design and attention to detail are critical. Moving beyond purely functional and satisfying products to crafting experiences that engage the emotions. In agile product development it is often easy to focus upon delivering functionality that is perceived to deliver business benefit, yet end up with a mediocre product that has little resemblance to the original idea it was meant to become. Incremental delivery is a key feature of agile; it means you get stuff out there early and often. The challenge is to identify what that stuff is. To make something that consumers love using the agile approach, in addition to great developers and focussed project management, you need three people;

1. A passionate sponsor who has a dream and a vision and can articulate that to the team, banishing mediocrity from the outset
2. A business analyst who will help the team slice the functionality according to consumer needs and desires; that take the consumer of the journey they want to travel, not a predefined route that constrained to picking those features that eventually will deliver greatest value.
3. A customer experience architect, interaction designer or graphically minded usability dude who can champion the product aesthetic and usability.

Get them on your side and maybe you might be taking the first step on developing a better gizmo that your consumers will love, and sleep outside your retail outlet for hours to buy one.

How to loose your customers

  • Monday, 9 July, 2007
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Last year, Barclays offered a fairly compelling home insurance proposition. They beat your current deal by £50. A friend took advantage of this offer. A year later they sent the renewal documents through. Being a reasonably busy and disorganised guy, he never got round to renewing the insurance until six weeks after it had expired. He rang the call centre explaining that he wanted to renew; yes, he had been without insurance for the past six weeks, but wanted to take advantage of the premium they had quoted. But Barclays refused to honour the renewal quotation. They told him that as the policy was not continuous he would be treated as a new customer. The policy he was now being quoted was significantly more than on the renewal letter. He asked to speak to a manager and was again told the renewal quote was no longer available.

So he went to Money Supermarket and got a competitive deal from Halifax. Indeed it was much more competitive; five times cheaper than the Barclays call centre was offering.

So despite all the cost of acquisition, Barclays were quite happy to loose an otherwise loyal customer who was prepared to pay their original quotation. They then gave him good reason to shop around and have now lost him for good.

If there is a moral in this story, it is when developing new products, propositions or supporting technology, play out all potential scenarios. Customers are not always rational beings, they don’t always behave in the way you assume they will. Don’t just design for the “happy path”, but challenge your thinking with “what if” scenarios for what happens in the real world outside your idealised customer model.

Buy my bus to learn about community!

  • Thursday, 5 July, 2007
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When VW beetles, kombi vans, or any Volkswagen air-cooled motor pass each other, their owner’s wave. There’s an unofficial community around the product. How cool is that to have people passionate about product?

Do your customers wave each other? Do your products inspire a bond, knowingness amongst their owners, a community?

Maybe you’d like to experience that VW passion. Look no further than the baddest bus in town; my head-turning 15 window is for sale on ebay!

VW 15 window Split Screen camper for sale

Forty five grand to line your trolleys up?

  • Wednesday, 27 June, 2007
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Trolleys lined up at Hong Kong MTR station

They’ve thought about the customer at Hong Kong airport. At every MTR station on the express route to the aiport, the trolleys have been lined up so that they are in front of the passengers getting off the train. No hunting for a free trolley – they are waiting for you! Nice!

But stop to think about that. Someone is employed to line up the trolleys. Given the hours the station is open (18 hours) it is going to be more than one person every day, more likely two; three to cover shifts across the whole week. Trains arrive every 15 minutes, so there will be other tasks for this role to do, but if they are offering a consistent customer experience then the focus will be this role.

So let’s work a UK equivalent, we need to employ three additional employees at, say, £8 per hour. Once Employers National Insurance is factored in (and not including sick pay or any benefits) that’s about £15k for each individual, or an optimistic £45,000 pa for the customer experience of having the trolleys lined up.

Justify that to the beancounters…

Missing planes

  • Friday, 15 June, 2007
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Reminder to get to the airport on the the right date. flight is post-midnight

After a month living out of a suitcase, circumnavigating the globe I’m homeward bound. I’m flying with Oasis… going to be interesting how the words “budget” and “longhaul” reconcile with each other. So far the experience is promising, a nice touch with their e-ticket (the date which I have subsequently changed). The plane flies at 00:50. BA fly back from Hong Kong a little earlier; on their e-ticket they don’t make it clear that the flight is a post-midnight one. Last time I did this trip I arrived at the airport on the Sunday night beleiving my flight was late on Sunday. Only it was a few minutes after midnight… on the Monday morning. I’d missed my flight by 24 hours. An easy, and expensive mistake to make. Oasis have gone out of their way to help me not make this mistake.

The little things really do count

  • Thursday, 14 June, 2007
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Ever since I saw Joe Walnes demonstrate it, every project that I find myself on which has a search requirement, it is never long before I am trying to convince the team that a “find as you type” search mechanism is the way to go. Usually everyone is in agreement, but occaisionally stakeholders try and de-scope it saying it is low priority “gold plating”.

Now look at the way that google finance and yahoo finance handle their stock ticker search. Over time, tell me which one you would prefer to use? Tell me that the Google search is just “gold plating”.
It gets worse for Yahoo; they treat tickers and stock names seperately, requiring different searches. As The Stawart states “the fact that Yahoo has its ticker search and its name search in separate boxes, after all this time, seems downright negligent.“

Are you building a potato or a Sensation?

  • Wednesday, 13 June, 2007
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The humble potato is not worth a lot. The farm gate price for a 150g spud is negligible. How do you add value? How do you turn a worthless Maris Piper into a valuable commodity?

Potato

Potato crisps (chips) are a great example of a low value product being turned into high value one.

Walkers salt and vinegar crisps

But that’s the easy part. The real value add is further transforming the product without fundamentally changing it. Innovation through packaging and marketing, making a basic product appear more desirable. Appealing to higher sensations beyond just satisfaction; differentiating the same basic product into an up-scaled, up-market luxury item. The same item that customers will happily pay more for.

The retail price for a 50g bag of Walkers Salt and Vinegar crisps at my local One Stop is 35p. The price of the Sensations bag is 47p. (For reference the retail price of a 50g potato – is 5p). Now I’m no crisp expert, but I’d guess that the incremental cost for adding a couple of new ingredients to the flavour is marginal. There’s some sunk cost in product development- creating the new flavours and developing the new brand, but this is little effort compared to the benefits that will be accrued.

Walkers Oven Roasted potato crisps

But that is not the end of the story. Focussing upon the experience of the Sensations product, Walkers see an opportunity to change the packaging – to increase the bag size. Now their basic Sensations product is a whopping 150g bag that retails at £1.35.

Walkers Lime and thai spices crisps

Sometimes it is easy to focus upon just delivering the basic package, to just satisfy the customer. Is there anything you can do on your project to transform delivering the hygiene of customer satisfaction, to selling a compelling value-added experience?

Won’t you please… be concise

  • Saturday, 26 May, 2007
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Won't you please give this seat to the eldery or disabled

Seen on the New York subway.  Is the “won’t you” really necessary?  The tone of the notice is trying to be friendly, but surely when you are writing signs or labels it is better to be concise and to the point. Afterall, it’s a sign, not conversation.

Heard on a suburban comuter train going into London, a pre-recorded generated message.  “London Underground inform me that there are currently no delays on the system”.

“Inform me?”

The “me” is a recording.  Again, the tone is trying to be friendly, but it is not real.

When communicating to customers use a style that is appropriate to the media.  If it is impersonal information you are providing, be concise and unless it is coming from the mouth of a human in real time, don’t try to fool me that it is otherwise.

Humanising the corporate voice

  • Tuesday, 15 May, 2007
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Friday evening, the train is pulling into East Croydon railway station. There’s an announcement.

We are now approaching East Croydon, please mind the gap between the train and the platform. Don’t leave any of your belongings behind…

The usual scripted stuff. Then…

Hey! I’ve just realised its Friday! The Weekend is here.

People on the carriage look up. Did he really say something, that’s something that breaks the mundane monotony of the commute.

Remember folks, drink sensibly!

I looked around and people on the carriage were smiling. An unscripted, personal touch. It wasn’t a canned message from an anodyne voice. For a brief moment South Eastern Railways became really human. It made commuters smile. And commuters travelling into East Croydon rarely have anything to smile at.

There is more to Customer Experience than homogeneity and consistency in interactions. It is more than scripting customer contacts. It is more than sheepishly adhering to the corporate line. It is about empowering employees to have the confidence to be human. It is giving employees some degrees of freedom to do things differently if it is in the interest of the customer. To be spontaneous.

There’s the story of the Ritz-Carlton bell boys being given a budget to help customers. To be spontaneous without having to jump through hoops of approval. No “I’m not really sure, wait a minute and I’ll ask my supervisor (because even though I’m grown-up enough to want to help you the Rules by which I’m employed don’t let me)”.

Maybe I’m getting a bit carried away. But customers remember these human touches. And if they have the seed of a positive emotion planted in their memory, an emotion associated with your brand, you have the seed to grow lifetime value.

Are you doing the simple things well?

  • Thursday, 10 May, 2007
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Anthony Bourdin in Kitchen Confidential writes “Good food is very often, even most often, simple food.  Some of the best cuisine in the world… is a matter of three or four ingredients.  Just make sure they’re good ingredients, and then garnish them.  How hard is that?”

How hard is that indeed.  There’s a lesson there for building out your product set.  Are you doing the simple stuff well?

Another meeting, another executive talks about the need for innovation and creative thinking and pushing the boat out and beating competitors with something new.  Meanwhile, doing the the simple “hygiene” things that will delight existing customers (reducing customer attition and churn) get lost with the innovation hyperbole foccused on “capturing market share”.

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