How To Be 'Customer Faithful'

How to ‘bookend’ in customer experience design

One of the goals of customer experience design is to differentiate - to make a lasting impression that will live long in the memory. To achieve this, designers pay particular attention to the first and last impressions - these are the ‘bookend’ moments that bracket the experience in the consumers’ memory. If you get these right, they create a halo effect for the more everyday aspects of a product or service, but if you fail here, it can leave a stain that is hard to shift.

Here’s an example of doing it well - last week I visited many of the major law firms in London, but only one of them stands out in my mind. It wasn’t because of the quality of advice offered by their lawyers (although excellent I’m sure), but rather the exceptional experience provided by their reception staff.

As we arrived at the top of the escalator, we were greeted by name and gently ushered through reception. En route, we were invited to leave coats and bags in the cloakroom. We were then personally escorted to our meeting room - a longish walk, during which we were engaged in thoughtful conversation. Upon arrival we were offered tea, coffee and refreshments including fresh fruit and biscuits while our host was advised of our arrival.

I was as impressed by what that been designed out of the experience as much as the classy simplicity of what remained. Our group had no need for hush-toned pre-meeting conversations in a frosty reception under the blast of a CNN news feed. We suffered no sitting on low, squishy leather chairs struggling to look or feel comfortable, thumbing through corporate bumf. No gazing at impossibly expensive art, whilst stressed and busy lawyers brushed past. It was personal, professional, comfortable and beautifully delivered. Potential clients are left wondering, ‘if they take this much care of me in reception, how good must the rest of it be?”

So let’s give them a shout-out - they deserve it. Allen & Overy’s ‘welcome’ experience is five star, which had me feeling like a highly-valued visitor the moment I arrived. They made something routine feel significant, and embedded their first positive brand impression before a minute of their expensive lawyers’ time had even started……

Further reading: for more about the behavioural psychology that lies behind human experience vs. memory, check out this 20 min video clip of Daniel Kahneman, who won the Nobel in Economics for his pioneering work in this field no less !

Go to TED video clip

“Worthy Choice” – don’t make consumers feel bad, make it easy for them

Recycling is a hot topic these days – not just environmentally, but politically and commercially too.

The new coalition government has ruled out the ‘pay-as-you-throw’ charging plans for waste collections proposed by Labour in 2009, in favour of a reward programme. One scheme aimed to discourage waste creation, the other to encourage recycling, carrot or stick – which is better?

Whilst there may be a role for legislation and government, my experience of how to change consumer attitude and behaviour is to make ‘the better choice’ so easy and as close to ‘normal life’ that the decision to change feels ‘simple and right’.

In other words, make the big impact of a worthy choice the outcome of doing it, not the action of doing it – consumers want easy lives, not tough, moral decisions.

A great example of promoting a ‘worthy choice’ instead of a worthy cause is the ‘Simply Drop’ scheme, run by the Royal Mail. For some, it may seem like just another way to recycle your unwanted mobile phone and get a little cash for doing so.

But the smart bit is how the scheme fits into consumers’ everyday lives and promotes Royal Mail services at the same time:

• Royal Mail send you a prepaid envelope (fully biodegradable of course)
• the envelopes are designed to carry up to 4 items and still fit into a pillar box, so it’s super-easy to post
• consumers can choose to donate any rebate to 5 charities, spanning health, children and animal care
• consumer can choose to pick up their rebate as cash from any Post Office
• consumers can track their package progress just like a valuable parcel using the Royal Mail service

Unlike other schemes, Simply Drop envelopes can also be used not just for one-off items like a mobile phone or digital camera, but for printer cartridges too. With over half of the 1.1 billion printer cartridges sold worldwide ending up in landfill, this feature can involve consumers in doing good more regularly.

And of course, the Simply Drop brand name itself conveys the idea neatly too – what could be easier than adding a prepaid envelope to the letters you’re posting anyway ?

So how is your business promoting itself as a worthy choice?

What can you do to make your proposition feel admirable to consumers, something they would like to buy into personally, whilst making that choice slot seamlessly into their existing habits ?

http://www.simplydrop.co.uk

PS: The principle of ‘Worthy choice’ is one of 4 consumer trends I promoted at a European retailer conference earlier this year. To explore the other 3 trends, download the presentation slides from the Customer Faithful website here (note: 12Mb file - be patient whilst it downloads!)

Switching Off Britain

It’s almost exactly a year ago since the “Digital Britain” report was published.

Within its 245 pages, there was a short chapter on plans for digital radio, which also included a switch-off for all of the UK’s analogue national radio stations and many local services by the end of 2015.

Certainly – digital radio has some benefits, such as ‘rewind-and-pause’ of live broadcasts, and more scope for channel information about traffic jams. It’s also well suited to the internet, with the ability to download podcasts of programmes, access UK radio stations from abroad and so on.

But the decision to scrap analogue stations, rather than offer the choice of both doesn’t really seem to stack up with consumers.

12 months on from the report, I’ve been exploring the current mood of pundits and the general public, and what buzz exists is overwhelmingly negative.

Most of the anger is focused on the fact that the switch-off will make millions of radio sets obsolete, at the time when money is tight. Aside from the environmental impact, 91% of UK consumers are already satisfied with the existing choice of radio stations in their area (Ofcom’s own research) – in short, it’s hard to see where the consumer appetite is coming from. 

Ofcom points to an existing base of up to 20% of radio users already owning a DAB (digital) set. But this seems to miss the fact that 37% of radio listening is out-of-home, much of it in vehicles. With fewer than 1% of cars having DAB radios fitted, (according to DRWG data), the switch-off seems more likely to disenfranchise existing analogue radio fans than introduce new listeners.

Away from the stats, the switch-off strikes an emotionally dischordant note amongst many, eloquently summed up by veteran broadcaster Libby Purves:

“Your existing wirelesses - the bedside one from which Humphrys or Wogan talks you into sentient life, the old Roberts on the bathroom windowsill, the wind-up Freeplay in the garage, the jogging one with a clip, the flash stereo for listening to Radio 3’s Haydn season, the pocket one that consoles you on the freezing railway platform, the one in your car…all could be useless after 2015. Which is an eye-blink away - less than half new Labour’s tenure, or a secondary school career. That ramshackle collection of radios, perfectly functional despite the odd bent aerial or melted chocolate on the £5 tranny in the schoolbag, could in less than six years be deaf to Radio 1, 2, 3, 4, and 5”

This is not about luddite attitudes and burying-heads-in-the-sand – quite the contrary. In my experience, UK consumers have an uncanny knack of quickly working out a technological winner when they see one - just witness the speed at which digital TV was embraced, as soon as ‘Freeview’ made it possible to add many more channels at a low, one-off cost. Similarly, the popularity of mobile phones soon soared, once consumers realised the convenience of making calls without having to find a phone box and the handy brevity of an SMS text.

Instead, the bottom line is that the consumer benefit of digital radio only really stacks up as an additional service, not a replacement, at least for the foreseeable future.

The lesson to take from this is simply not to make the mistake the Government did, by ignoring the impact on consumers’ lives. Businesses would do well to pose the same killer question that consumers ask: “What’s the benefit over what I already have?” followed by what economists call a cost-benefit analysis, and what everyday folk describe plain and simply as……. “Is it worth it?”

Download the Digital Britain Report

Staying Faithful in a Crisis - Lessons from a Volcano

Who would have thought a few months ago that an unpronounceable volcano in Iceland could have caused so much disruption around the world? For some, the closure of British airspace was welcome, allowing them to enjoy an extended holiday or simply some peace and quiet under the flightpath. But for many, it was the cause of huge inconvenience, stress and extra cost. It also proved to be a test of whether many companies involved could keep their customer’s faith. Some excelled, managing to delight customers in very difficult circumstances, whilst sadly others fell very short of expectations.

Contrast Easyjet and Ryanair- both budget airlines faced losing large amounts of money, but chose very different responses. Ryanair initially refused to pay out to cover accommodation and food, in contravention of European regulations. They were then forced to make an ungracious u-turn, by which time the damage to the brand had been inflicted. Easyjet proactively supported passengers- providing over 100,000 hotel rooms and rescue flights once airspace reopened. Who would you rather make your travel plans with in the future?

Insurance cover highlighted further contrasts. Endsleigh, Virgin Money and others point-blank refused to allow any claims relating to the ash, declaring it an “act of God”. HSBC decided to “stand behind policy holders” and stated that “travellers have the reassurance that valid claims will be met”. That reassurance counts for a lot when making decisions on insurance providers. Not only that, but HSBC announced it would refund all cash withdrawals made abroad during the crisis – both surprising and greatly exceeding customer expectations.

Whilst some travel companies floundered, there are stories of others following the example of Wellington School in sending homework out to stranded pupils - maybe not so popular with the kids but earning points with the parents!

Some businesses, even those not directly affected by the ash were creative in turning it to their advantage. Savvy travel agents, with an eye to the future, illustrated the advantages of using ABTA-approved agents, in an age when many holidaymakers have migrated to ‘DIY’ holiday bookings. Meanwhile, The National Trust, Disney and many other attractions gave free visits to stranded passengers, gaining great publicity (at marginal cost) in the process.

So how can you stop your brand relationship turning to ash? How can you build loyalty and advocacy in difficult circumstances?

 Key lessons from the volcano experience:

1. Consider the long term – immediate business costs may be easy to spot and calculate, but weigh any actions against the lifetime value of your customer. If you are able to delight them in a crisis, what benefit could this bring to repeat purchase and word-of-mouth advocacy in the future?

2. News travels fast - in this multi-media age, reports of good deeds and, more damagingly, bad customer service can circulate around the world in seconds. When planning a response, consider how traditional PR and contemporary social media can support your actions in a consistent manner.

3. Think outside the business box - know your customer and put yourself in their place. Be creative; understand what will make a difference to them in the situation they are in, beyond your normal business boundaries and responsibilities.

4. Be flexible – in a crisis, it’s rare that one rule will fit everybody. Take the opportunity to demonstrate that your business is not hidebound to a policy, but instead look for a range of options that offers choice and care. You may even discover a new way of working, better policies for the future or even a new customer offer altogether….

Advocacy Case Study

Last month saw a series of music and comedy concerts organised in aid of the Teenage Cancer Trust at the Albert Hall. As standalone music gigs, they were enthusiastically reviewed in the national press, but it’s the ‘anecdotal extras’ from blogs and social media that have really caught our interest here at Customer Faithful…..

“….who’d have thought we would see Noel Gallagher of Oasis fame singing racy rock songs in such a traditional venue which is largely set to seating (though no-one remained seated for long)?   Who would have expected such a rebel from the rock world would show us his caring side, not only by offering his services (over 2 evenings) for free, but also for his ability to get the venue hosts on his side.  He persuaded the Albert Hall to allow alcohol (though not glass) into the concert hall for the first time; there was no searching of bags, there was no insisting we purchased our drinks from the (expensive) bars on site, there was no censoring of anything.”

 “……His set list was constructed by the audience as he went along – he had no desire to plug his new solo career. Instead he told us that this was a charity gig and we had made significant charity donations to be there, so he asked the audience to nominate their songs as the show went on.  The result was a singing, swaying, perhaps inebriated but well behaved crowd, who felt privileged to have been able to spend money and give to this charity.”

 “….Even though we were allowed to take our own drinks into the hall, the bar receipts for the evening were reported at record levels!”

Our social takeout from these comments is the unusual and unexpected nature of it all, the appropriate bending of the rules, the trust instilled in the audience and the true connection with all parties involved.

And from a commercial standpoint, there’s another learning: If you surprise paying guests or customers with something truly unexpected, it can create such strong feelings of warmth, they may want to tell others about it. 

http://www.teenagecancertrust.org/what-we-do/royal-albert-hall/2010/

Your Customer’s Bandwidth Invitation

So, we’re just about through the harshest winter in the UK for 30 years. And when the quarterly fuel bills arrive, there will be one final shiver to endure. Combined with the rising cost of energy, the price of domestic gas and electricity for the average UK household is now over £1300 per year.

Yet, there’s another set of monthly household charges that gets far less attention, but are just as dramatic - let’s call them ‘bandwidth costs’.

If you add together fixed line telephone, mobile phone, broadband and any satellite/cable TV fees, you’ll start to see this figure emerging. Such a combined cost is no longer about early adopters - developments such as the BBC’s hugely successful iPlayer have seen to that. Now, add in wireless devices like sat nav and Blackberries (even iPads before long, if we believe the hype from Apple) and you’ll arrive at your bandwidth cost.

If it wasn’t for the cost of petrol, millions of middle-class families would already be spending more on bandwidth than their energy.

So what ? Well - all this bandwidth cost adds up to the fact that today’s consumer is getting serious about staying connected. Much of this is about personal communication - calls, emails, texts, photos and alike. But it also includes a desire to stay in touch in brands who they relate to and trust.

For a company’s loyal customers, think of it as an open invitation from them, an opportunity to interact, but only provided both parties understand the social graces of networking and digital marketing.

So what does your company’s bandwidth invite say, and how good are your digital media manners ?

How to Win the Heart of a Businessman

In recent weeks, I’ve been researching business travellers - listening to their stories and exploring their world. And the wisdom of this business crowd is centred around productivity - every individual I spoke to had their own sacred rituals and routines for multi-tasking and making the best use of time.

At the heart of this fast-paced world was the mobile device - I can’t call it a ‘phone’ anymore, because much of its use is for email, calendar, web browsing, podcast-listening. 

I found plenty of iPhone users amongst this business crowd, contrary to the popular view that Blackberry is the weapon-of-choice. And unsurprisingly, having invested in this most stylish of devices, its users had loaded dozens of apps to increase its functionality.

Yet the simple truth was that, even when they found time to use their apps, they were all instantly sacrificed for an incoming text or email. And the irony that these two killer-apps both pre-dated and out-muscled their shinier and sexier iPhone app newcomers was not lost on its users. “It’s not that I don’t use my apps,” said one businesswoman inbetween sips of hastily-drunk latte, “but when you’re on the road, its about priority - I’ll find time to text my kids, or keep pace with email before I think about Facebook or sports scores. Remember with an iPhone, it’s one-thing-at-a-time”.

In the world of the business traveller, the secret of productivity is momentum - you can speed up and slow down, just as long as you keep moving. That’s why hotel express checkout, food-on-the-go and fast-track airport security are so valued by this group. Sure - indulge in a little self-treat every now and then, but don’t break stride.

So what’s the perfect iPhone app for a businessman ? I couldn’t help smile at “Email ‘n Walk” (59p from the App Store) - it uses the iPhone’s internal camera to project an image of where you’re going behind the email you’re working on. So you don’t even need to look away from your screen, even when you’re getting off the escalator !

Read a review of Email n’ Walk

To explore more about Customer Faithful, click here

Consumer Lag - Toyota’s Hidden Millstone

At first glance, it might seem things could hardly get worse for Toyota – up to 8m cars being recalled globally on safety concerns, new sales predicted to be as much 20% down for February 2010, whilst tackling embarrassing congressional hearings in the United States.

Yet the biggest fear for Toyota execs should be what is still to come – the consumer lag effect that can keep a brand dragging its feet, even when its real-life problems have long since been corrected.

How does it work? Take a look:

1.     Safety Recall – whilst owners have their car off the road, they’re experiencing rental vehicles of other manufacturers – for many super-loyal customers, this is the first time they’ve driven a non-Toyota in quite a while, and some will be pleasantly surprised by what they find

2.     New Sales decline – anyone in the market for a new car right now is under siege from Toyota competitors, offering unbeatable deals especially for classic Toyota-profile customers. US market share for Toyota has already tumbled from 17.5% to 12.1% since Jan 21 [Source: auto information company TrueCar.com]

3.     Repeat Sales decline – for those planning a future car purchase more than 12 months out, the seeds of doubt have already taken hold, with Toyota’s market-leading 58% repeat purchase rate down to 51% last month, behind Honda, whose own reliability and value scores are climbing

4.     Fading Residuals – Toyota’s past reliability has always kept resale prices above-average. But with the brand tarnished, and so many older Toyotas still on the road, that’s a huge number of second-hand owners who have suddenly taken a hit from a faulty model they’ve never even come close to owning

5.     Loss of trust – so many product recalls at once may cause many, once-loyal and satisfied owners to start ‘looking’ for faults they previously may not have noticed.

Suddenly, what looked like a containable problem, restricted to particular models has the potential to be far more widespread, with a lag effect of many years.

Such a prognosis does not make Toyota’s task an impossible one – only that they have to tackle the consumer lag effect at each stage, with just as much dedication as the more obvious recall-affected vehicles.

http://www.toyota.com/recall

To explore more about Customer Faithful, click here

Too busy to do business

In these tough economic times, it’s hardly rocket science for companies to focus on protecting their business. And for the embattled airline industry, fighting to hang on to the loyalty of your customer base is an obvious priority.

Or so you’d think.

I’ve flown British Airways for over 20 years in business (that’s a business trip, not always a Business ticket), and today I found myself needing a flight for next week. But in booking on-line at ba.com, I had a question regarding my flight that the website couldn’t answer, so I called BA on the telephone.

After navigating my way through the push-button options for a minute or so, I braced myself for being on-hold for a while. Instead, I was simply told that “we’re experiencing an extremely high number of calls” and told to call back later or go (back) to the website. Not asked, but told. Because after being informed of the situation, the line simply hung up. BA had finished with me.

As a customer experience designer, my professional antennae starts twitching:

“They need to fix their call centre resource levelling capability” it tells me, and “there’s changes needed in the IVR routing and recording loops.”

But what does it say to ANY regular customer just interested in flying with British Airways, let alone a regular traveller ? In short, that BA processes are more important than passengers are, and BA will explore your needs only when it’s convenient for them.

Last year, British Airways profits fell from £883m profit in the previous year to a £401m loss. In turn, the share price has collapsed from a high of 550p in 2007 to 206p at the time of writing.

Clearly, investors are going elsewhere, having lost confidence in BA’s ability to attract, retain and grow customers profitably. And when an airline gets to the point of hanging up on its own customers’ inquiries, its passengers will quickly follow suit…..

To explore more about Customer Faithful, click here

A Host of problems on Twitter…..

Tuesday was not a good day.

From just after 0900 through till nearly 1800, all my company email stopped working – inbound, outbound, everything.

At first, you’re unaware of the scale of the problem – an email gets bounced, it happens. But then you notice, after 30 mins or so, that every email is failing, and you’ve had no incoming either.

My internet connection was functioning fine, and so were personal emails. It had to be my email hosting provider, Fasthosts, at fault.

I check out their website for information, but there’s no news. I try to call their helpdesk, and I’m sitting in a queue for over 10 minutes before I give up. Something must be seriously wrong.

So I turn to Twitter. And now I KNOW…..I am not alone.

Twitter is a chorus of frustration and anger, with page after page of Fasthosts customers like me, full of questions and rage and threats to leave the provider forever. And amongst the angst, there is a light sprinkling of tweats from Fasthosts themselves, acknowledging that.. “this email issue is still ongoing for some customers, once again apologies for any inconvenience.”

By the evening, the service was restored, but for Fasthosts’ customers, their faith was most certainly not. As I browsed Twitter the following morning, I found another whole barrage of complaints about a similar outage only the week before. I had been lucky enough to escape that, but the Twitterlog had alerted me.

Since then, I’ve had no personal email or tweat of apology from Fasthosts, even after I tweated them directly.

What I did get was a polite and eager telephone call from UK Fast, a rival hosting provider who clearly kept a keen eye on market sentiment and possible opportunities.

For 24 hours, Twitter has facilitated an all but real-time account of the lifecycle of loyalty - a story of how quickly customers can lose faith, not just in the quality of service, but also in the attitude of the service provider towards repairing the fault. And the whole sorry saga washed out in the full glare of the public.

See for yourself….http://twitter.com/#search?q=%23%20fasthosts

To explore more about Customer Faithful, click here