Creating Memorable Customer Experiences in a Challenging Economy
by Diane Berenbaum and Jean Marie Johnson -
August 21, 2009
Creating Memorable Customer Experiences in a Challenging Economy
By Diane Berenbaum and Jean Marie Johnson
There is no question that these are challenging times. Customers are stressed, easily unnerved, and sometimes, just plain mad. The experience with your company may be the straw that breaks the camel’s back. They are also more apt to have higher expectations, be more demanding and looking for greater value for what they spend.
Meanwhile companies are forced to do more with less as sales and employee morale decline. According to Business Week (March 2, 2009), “the tough economy has made starker the difference between companies that put customers first and strive to improve the customer experience versus those that sacrifice loyalty for short-term gain.” The best performers in this year’s ranking of Customer Service Champs increased their service focus and “their customers rewarded them for the effort.”
The bottom line: this is an opportune time to create memorable customer experiences.
What is Customer Experience?
According to Bruce Temkin, vice president and principal analyst at Forrester Research, “Customer experience is the connection that companies make with their customers across all functions and touchpoints. It is the perception that customers have of their interactions with an organization.”
And Temkin’s research found that there is a direct correlation between customer experience and customer loyalty. In his February 2009 study, the results were compelling: during the recession, the correlation between customer experience and loyalty increased in all 12 industries surveyed.
The good news: Creating an experience that’s meaningful and memorable doesn’t have to cost a lot. (It may even cost less if it cuts down on rework, escalations and complaints.)
The Empathic-based vs. Transactional Approach
Focusing on the customer experience does require thinking beyond the limits of the telephone; of a service or sales transaction. Organizations that have mastered a customer focus approach the entire interaction from an understanding of what the customer is experiencing and why it is significant to him. They don’t just respond empathically. Empathy is inherent in the design of the interaction.
Consider this example: In an article entitled They Feel Your Losses, The New York Times cited a national financial services company that is taking a uniquely empathic approach with their I.R.A. and 401K investors. This institution hired a specially-trained team of temps who share one critical demographic: they are all Baby Boomers. Who better to relate to the legions of “weeping and crying…mad” customers than folks who themselves are feeling the pain? Considering that fifty percent of the callers are angry, the boomer temps demonstrate both the compassion and the competence to respond effectively.
So what’s the lesson here? Is your customer focus transaction-based or rooted in the experience itself? Are your associates responding with “moments” of understanding, empathy and compassion, or do they “come from that place?” A re-engagement strategy is in order to make this key shift.
Strategy of Re-engagement: with Employees and Customers
Your Employees Come First
Engage
Your employees are truly the keepers of your brand. So, it makes sense to engage employees in a continuous dialogue on how to create memorable experiences with an empathy-based approach.
Encourage employees to think out of the box. And, if you’ve made that box a sacred cow, it’s time to reposition it as a construct with malleable borders. Embark on a passionate hunt for best practices that are emerging in your associates’ interactions with customers. Then share them to unleash the creativity and ingenuity of everyone in your organization.
Train
Train them so they feel confident to handle any situation, no matter how irate or challenging the customer may be. When times are tough, customers may make unreasonable demands and be relentless with their questions and objections.
When faced with that adversity, many associates retreat into “competitive mode” and tell customers what they “have to do” or what the company “can’t do” to meet their demands. The result? A win/lose situation at best; one that zaps your associates’ energy and chips away at your customers’ trust in your organization.
When employees are trained in the cooperative approach, one that involves listening, empathizing and offering alternatives, they build trust with each interaction. Rather than battling with customers, they convey confidence and feel like they are really making a difference. And, your customers will be grateful for the care and attention.
Empower
Equally important is to empowered action, not just words. Encourage your employees to think like a customer, to anticipate their needs and act accordingly.
Case in point, J.C. Penney retrained all 150,000 employees to promote greater employee autonomy and a stronger focus on customers. Managers no longer need to approve every unusual transaction, and staff is no longer divided into helpers and stockers. These days, all associates are encouraged to drop everything should a customer require help.
Focus on Customer Needs
Customers are making tradeoffs and decisions with every dollar they spend. The better you understand their needs and wants, the more likely you will win their business, trust and loyalty.
Really Listen and Uncover Needs
Now is a critical time to suspend your assumptions and question your antiquated data about what your customer is looking for. Because in all likelihood, it’s changed. More than ever, you need to ask, and you need to pay attention.
Your employees are in the cat bird’s seat when it comes to understanding your customer. When you make them partners in customer focus, you can expect a significant payback. Invest in your employees’ ability to really listen to customers and gain an understanding of what’s driving their inquiries or concerns—not just answer their questions. By asking more probing questions, they can uncover unspoken needs, wants and expectations. In other words, they can provide you with the type of reality check that will inform the direction of the products/services you offer.
Increase Communication
Make it a priority to increase communication with customers. The rule of thumb here is to acknowledge what people are experiencing; to not act like you’ve had your head in the sand for months! Here are just a few examples:
• An investment firm sends a monthly letter to investors, acknowledging their experience of fear and uncertainty, while reiterating their cautious and prudent approach in these times.
• An on-line retailer sends a “Thank you for your business. We appreciate your loyalty.” e-mail message as well as a piece of candy with each order.
• A printer acknowledges their clients’ need to watch expenses and provides a newsletter with cost-savings ideas and alternatives that yield high quality products for less time and money.
Aim to exceed expectations with every communication. If you say you will deliver by the 15th, do what you can to surprise the customer with an early delivery. Customers always remember and appreciate that extra effort.
Differentiate with a Human Touch
There’s nothing like the human touch to make an experience meaningful and memorable...one that customers can’t wait to share with others. Here are a few examples we have experienced:
Use their name
The Ballantyne Hotel in Charlotte Hotel has a “greeter” by the front entrance. She immediately welcomes you with a smile and “We are so glad you are here.” Then, she asks for your name. And, she remembers your name during the entire length of your stay. For five days straight, she used our names in every encounter with us…without fail.
This focus on the customer name was not just the role of the greeter—it was integrated in their telephone system. When I called the hotel shop to inquire about their hours, the associate answered with, “Good afternoon, Ms. Berenbaum. How may I help you today?”
Make it personal
When I arrive at the Twelve Hotel in Atlanta, the front desk staff warmly greets me with a huge, “Welcome back, Mrs. Johnson!” Then, after reconnecting with them and securing my room key, they hand me a little bag that holds the little creamers I so like with my in-room coffee. That small touch brings me back, again and again.
Express sincere and appropriate empathy
In a call with 1-800-Contacts, I mentioned that I received a defective lens in the last batch. The representative, Brandi, expressed concern and immediately offered an apology: “Jean Marie, I am so sorry you received a defective lens. That shouldn’t have happened.” Then, she went a step further and said. “What I am going to do is to send a replacement for you along with this order. I apologize for the inconvenience.”
Give them want they want—then give them some more
Not only did Brandi at 1-800-Contacts express empathy, apologize and send a replacement lens, she also included a gift certificate with a personal note: “I apologize about the dried out lens that you received! Please use this gift certificate toward your next purchase!”
Olga at the Ballantyne did far more than greet us by name. She anticipated our needs. When she saw us come into the lobby dressed in golf attire, she immediately asked if we would like bottles of water for our game. We were pleasantly surprised when she reappeared with two chilled (and free) bottles.
It’s Time to Stand out from the Crowd
By focusing on creating a memorable customer experience day in and day out in this economy, you will stand out from the crowd and reap long-term benefits. Remember, sometimes all it takes is a name, a smile and a bottle of water.
Communico Ltd.
www.communicoltd.com
203-226-7117
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