Goods and Services Are No Longer Enough
Goods and services are no longer enough; what consumers want today are experiences – memorable events that engage each individual in an inherently personal way. To meet this demand, SOCAP members must develop experience innovations that turn mundane interactions into engaging encounters.
When it comes to people, you must direct workers to act.
Understand that in today’s Experience Economy work IS theatre. It’s not a metaphor (work as theatre); it’s a model. That’s why Geek Squad agents in remote Geek Squad City — where they have no face-to-face interactions with customers — wear the same uniform as do Agents in Best Buy stores. Help your workers embrace theatre by understanding the difference between what and how – what is the functional requirements for their interactions with consumers, but how they go about those interactions can make them memorable.
When it comes to process, you must mass customize your offerings.
Reach inside of your customers to create that personal experience within them, but do so with low costs, high volume, efficient operations. The secret to that is modularity, designing your processes like LEGO building bricks that can be put together in different ways for different customers. Progressive Insurance, for example, sends its customer service reps to the very site of member accidents, handling the claim and handing out a check on the spot over 90% of the time — while lowering its costs through its modular processes.
When it comes to technology, you must fuse the real and the virtual.
Recognize that consumers today don’t want to differentiate between off- and online interactions; they want to communicate with you whenever, wherever, whatever, and however they want. So innovate new ways of interacting, such as telecom provider 3 in Sweden, which created a “LiveShop” to connect consumers to its contact center. It’s like Skype on steroids, where its reps use a touch-screen interface to bring into view physically whatever phones and plans they want to talk about with the real, living, breathing customer in front of them virtually.
Follow these three imperatives and you will develop your own experience innovations that will shift you beyond goods and services and into today’s Experience Economy.
B. Joseph Pine II
Co-author, The Experience Economy, Infinite Possibility, Authenticity
Author, Mass Customization
Co-founder, Strategic Horizons LLP
Using Customer Experience to Drive Cultural Transformation
Customer Experience Focus Can Drive Culture Change
Technology has changed the way we do business. Customers can instantly find any information they want about a product or service via their smartphones. They can share their experience with it across social networks with hundreds, or even hundreds of thousands, of people. And they expect more personalized, convenient, and unique interactions with brands as companies like Amazon, Apple, and Google set the standards of their shopping, buying, and ownership experience. The world has changed and it's given customers the power to make the rules. But can focusing on the importance of building a great customer experience push cultural change in an organization?
At GM we asked ourselves that question. From how we design our cars and trucks to how we market and advertise. From how we interact with each other, our suppliers and our dealer network to how we assess quality, safety, and reliability. We've used the customer experience as our rallying point for culture change, and here are some of the ways we're enabling it.
First, we've become customer obsessed. Our decisions about products or policies or customer support start with customers in mind. A redesigned company vision was a starting point, but the real power came in how we shifted our resources. Customer care, data collection and analytics became high priority. We aligned our social listening and interaction tools to provide integrated customer support and conversation management. And we worked with our Dealer network to upgrade their facilities, training, and customer relationship management tools.
Second, we've increased our focus on making the customer experience a key measure of our success. To help manage how we execute those choices, a Customer Experience organization was established to coordinate across the company. Its mission is to strengthen customer service, improve customer listening posts, and maximize our investment in our dealer network. This team is closely integrated with product quality and brand marketing, and is now becoming integrated with our Connected Customer organization.
Third, we needed to make it known that customer-centric behavior was the right thing to for our team members to do. That's meant leading by example and sharing stories of customer-centric decisions. It's meant moving closer to the customer and having team members at all levels listen to customer calls. It's meant making customer-centric stories central to meetings, events, trainings, and internal communications. And it's also meant creating spaces and opportunities for collaboration and learning in the name of the customer. To do that we've created internal social media channels and forums dedicated to cross-functional teamwork in the name of improving our customer experience.
No one ever said that culture change was easy, but rallying around the customer experience has certainly energized us on our path to building the kind of culture we need to be successful. We've accomplished a lot in a short time, but we know work remains. We've become relentless in how we review every moment of a customer's journey with us. We have no fear of doing what's right for them. And we don't shy away from talking about how important it is that we made the tough choice for the right reason. It's excited us for the work we do today, tomorrow, and far into our future and made our purpose clear: everything we do starts and ends with earning customers for life.
Jim Moloney, is the Global Director for Customer Contact Centers for General Motors. In this position, Mr. Moloney is responsible for optimizing the site footprint and labor provider support models, and developing standardized processes, tools and scorecards for GM contact centers worldwide. Prior to this appointment, Mr. Moloney was the General Director of GM's U.S. Contact Center team, where he led a transformational change to the customer experience business model. Under his leadership, GM has embraced the concept that purchase loyalty, service retention and the organization's ability to conquest are all directly tied to the ownership experience, and are thus key drivers of the company's long-term success plan.
Moloney is a member of the SOCAP Board of Directors and serves as Board Advisor to SOCAP's Automotive Industry Community.
SOCAP 2014 Chapter Awards
SOCAP is proud to recognize the 2014 chapter award winners through the CARE Award, Membership Achievement Award and STAR Award.
The CARE Award is the Chapter Award in Recognition of Excellence and evaluates chapters in the areas of chapter programs and events, membership, communications and operations. Congratulations to the 2014 CARE Award recipients:
- Chicago Chapter – Lisa Diehl, Orbitz Worldwide
- Georgia Chapter – Robert Murphy, Georgia 811
- Great Lakes Chapter – Kimberly Sokol, Kelly Services, Inc
- Northwest Chapter – Heidi Verse, The Clorox Company
The Membership Achievement award recognizes chapters that achieve net growth of membership for the year, meet new member and retention goals for the year. 2014 Membership Achievement Award recipients are below:
- Chicago Chapter - Lisa Diehl, President and Frank Keith, Vice President of Membership
- Great Lakes Chapter - Kimberly Sokol, President and Terri Haffey, Vice President of Membership
The STAR Award recognizes hardworking, dependable and dedicated individuals who support their local chapter. Winners are nominated by the chapter board. The 2014 STAR Award winners are:
- Canada Community – Pierre Marc Jasmin, Triad Services
- Chicago Chapter – Allison Stauter, Travelzoo
- Georgia Chapter – Dan Valentine, Sales Growth Strategies
- Great Lakes Chapter – Tim Aulph, Percepta
- Great Lakes Chapter – Chip Rohde, Wilke Global
- Heartland Chapter – Derrell Chastain, Hyatt Hotels
- Heartland Chapter – Dee Kohler
SOCAP Chapters do a great job of providing networking opportunities, valuable events and programming and these efforts take a strong team of dedicated and talented individuals. Congratulations to all of the 2014 award winners!
Engage with SOCAP
By: Matthew D'Uva, FASAE, CAE
President and CEO, SOCAP International
Thank you.thank you for being an essential member of SOCAP International! This community association is here because of you and to serve you, ensuring your success as well as the success of your company and your consumers.
I am very engaged in the American Society of Association Executives (ASAE)-essentially, the Association of Associations. seriously there is a professional association for all of us! In my work with ASAE, I often spend time working on programming, preparing sessions and leading committees and work groups while juggling my full-time job here at SOCAP.
Whenever I reflect on the time invested with ASAE, the one theme that keeps coming back is that the time I invest with my professional association returns two-fold (sometimes more) in my career development and SOCAP. Frankly, I am better at my job, better able to connect to the right business partners to support our staff team and bring better ideas to the Board of Directors for implementation. Essentially, engaging with my professional association pays dividends to my organization and members every day.
In the same way, SOCAP pays dividends to you, your career, your company and your consumers. You and our membership network represent the "best of the best," and opportunities to network, learn and connect with industry leaders are tremendously valuable and produce an exponential return on your investment.
For those of you who agree - send me your comments. For those who are still considering, please review my following "Top Five" List of tools, resources and opportunities to engage and get the most value and benefit with SOCAP-your professional community-throughout the year and beyond.
5. Take Advantage of the SOCAP Learning Portal. There are a ton of resources available to members via our learning portal including past conference sessions, webinars and our online contact management course. If you have not had a chance to pursue these resources, take a look and share them with your colleagues at your company!
4. Read Customer Relationship Management Magazine and offer to write an article. SOCAP's flagship publication is full of important trends, news and best practices critical to your consumer affairs strategy today and well into the future. Whether you read it on your tablet, smartphone or in print (old school style!), SOCAP has the great content you need. Also, if you have not visited our archived articles - you are missing out on additional resources!
3. Register for a Webinar Today! Our monthly webinar series is free to corporate members and are full of great information. See why we have seen double-digit growth in attendance on our webinars and members continue to rate them so high. Don't let your competitors grab all of the best practices - Stay ahead of the curve!
2. Get engaged with SOCAP socially. Have you visited SOCAP's online private community, mySOCAP? If you have not, you are missing out! Visit today to see what your fellow members are talking about. Also stay current with SOCAP and your profession by following us on Twitter (@SOCAP) or join us on Facebook. It is so easy to stay connected!
1. Be involved - SOCAP is your professional association - SOCAP is managed and built by members like you! Join a committee; engage with a Task Force; volunteer to serve your local chapter (say "yes" to all three!). There are so many ways to support SOCAP and as our leaders will tell you - "You get so much more than you give."
SOCAP Membership is the first step to your professional edge, but you have to stay active to get the full benefit of your membership. Here's your homework.
First, commit to doing one item from my list this month, and I guarantee you will be amazed at the return.
Second, spread the word! Make sure that your colleagues and staff know the great opportunities of involvement with SOCAP. Corporate Membership allows membership access to an unlimited number of your colleagues. So, make sure everyone is taking advantage of all the benefits of SOCAP membership.
Finally, reach out to me and let me know what else we can do to serve you, your company and your colleagues better. We want your feedback and engagement. Give us a chance to serve you!
The Barefoot Spirit: SOCAP Interview with Bareofoot Founders Bonnie Harvey and Michael Houlihan
Bonnie Harvey and Michael Houlihan know a thing or two about success. As the founders of Barefoot Cellars, they took their brand from a standing start in 1985 to a popular favorite by 2005. When they sold the company to E&J Gallo Winery that year, the entrepreneurial company had made its mark in the wine selling world, shipping 600,000 cases annually. Not bad for a pair who began this unlikely quest in their laundry room turned home office, at the time lacking both working capital and practical insights into the vintner's arts.
So when Harvey and Houlihan say sales and customer care are priorities one and two in the successful business playbook-the functions that everyone else in the enterprise needs to get in line and support–it's worth a listen.
The entrepreneurs may have started small but they were thinking big. And part of what they were thinking was how to build a virtual enterprise, complete with outsourced grape growing, wine production, and bottling. Barefoot Cellars would be a company without vineyards or organizational silos, but its founders did have a commitment to treat everyone touching their product as part of the customer solution.
"We found out that you could outsource everything except sales, customer service and quality control," Houlihan says, adding, "We treated our vendors the way we treated our customers. We didn't take anybody for granted."
Instead, Houlihan says Barefoot took the long view of customer service, including wholesalers, retailers, the general public, and specific groups and organizations within the general public in its expanded definition.
Then the company builders got up close and personal with their customer set. "We went out to meet our customers in the community," says Harvey, engaging at various events to better understand consumer interests and issues. Harvey also says Barefoot came up with other innovative methods of reaching out to the public, including becoming, in 1989, the first alcoholic beverage company to put an 800 number on its product.
"We got lots of useful information from our customers," Harvey recalls. "A lot of it was complaints such as they had opened a bottle of red wine and spilled it on their white dress.we knew that whenever someone called us, there were between 100 and 1000 other people who were concerned about the same thing and didn't call us. So our 800 number was a real benefit to us."
Not so much for fielding complaints about red wine stains but for gaining valuable, actionable insights from actual end users into improving their offerings.
Says Houlihan, "Did they like the way it tastes? What did they pay for it? Was it in stock where they usually shop? Were the signs readable? What did they think of the packaging? Did the cork come out easily? If we got someone on the phone, we would ask them a lot of questions and we would make sure that our marketing department and our production department-this is what made Barefoot very different-would be listening to consumer relations input and would be incorporating that into the actual design and production of the product and marketing materials."
Product improvements traceable back to customer feedback included changes to the synthetic cork used in Barefoot wine bottles. "A lot of people were calling and saying the ah-so [a twin-pronged cork puller] wouldn't work. It was too tight. It would drive the cork into the bottle. We realized that we had to work on that problem," Harvey says.
Another "problem solved" was not getting the cork out of the bottle but how much wine was going in the bottle:
According to Houlihan, "Customers would call and say, 'I buy Barefoot wine but I can't seem to get a full measure. It seems like the fill lines are all different. Some bottles are high and some are low. Can't you get a uniform fill line?'"
Apparently not. The production people explained that atmospheric pressure, temperature, oxidization all make a difference in wine levels. Filling up to the top on a hot day could literally cause the wine bottle to blow its cork. Customers, the producers said, just don't understand the chemistry involved.
The Barefoot founders did not let a little science get in the way of customer service. "We thought about it and said, 'well, the customer is always right. So we went back to the customer and said, 'thank you for bringing this to our attention. We are going to solve this problem immediately.' We had no idea how we were going to solve the problem but we knew it was a perception," Houlihan said.
"A week or two later, we were at a party. Bonnie was admiring this skirt a woman was wearing. I said, 'what do you like about it? The fabric.the print?' She says, 'oh no, I like the idea that it covers the knees but shows off the calf.' I looked at her and said, 'that's it!'"
Barefoot added a longer foil cap to its bottles, adding uniformity to how wine level appeared.
"Here we had a very psychological, very subtle competitive advantage on the shelf. And where did we get it from? Customer relations," Houlihan says. Call it a clever bit of organizational ju-jitsu. "The production people said, 'The customer just doesn't understand.' That's just the point. Customers do not understand. It's up to us to solve their concerns," Harvey notes.
On the service end of things, avid attention to customer input helped Barefoot flag holes in its distribution network.
"When you start a brand, the biggest issue you face is out of stock," Houlihan says. "It's not that your product sells, it's that your product sells out and doesn't get replaced. Once it sells out and doesn't get replaced the consumers who like it are disappointed and, unfortunately, they will not complain. They will just buy the competitor's product that is there. So if somebody does call and has the decency to complain that they couldn't find the product, you have to multiply that by 100 or 1000 people who do not call. We would actually ask their permission to use their recorded message and play it for our distributors so that there was no question in our distributor's mind that there were customers for Barefoot who wanted to buy it and it was out of stock."
Putting the interests of the customer first is just part of the American entrepreneurial spirit, Houlihan says. After selling Barefoot Cellars, Houlihan and Harvey wrote a book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America's #1 Wine Brand. The title might have included a fifth "H": Hearing. "The American entrepreneurial spirit really has a component-if it's successful-where there is a deep respect for what the customer wants and perceives. Otherwise, they go out of business-and fast. When you are a small company or a mid-sized company or even a large company with a progressive attitude, you cannot ignore customer service. As far as we're concerned, it's where the rubber meets the road," Houlihan says.
Houlihan and Harvey could impress their views about customer service on others because they owned the company, clearly an important advantage. They do, however, have advice for customer care professionals whose companies just can't seem to find the right road to customer commitment–or don't have the ability to stay on it.
"The biggest problem SOCAP [members] face is that big corporations are so siloed and set up in pyramids.you've got the CEO on top, the senior vice presidents, the junior vice presidents, the divisions, the departments, the teams and the groups. One of those departments is called sales. If that department fails, you don't need any of the other departments. You are just out of business," Houlihan says.
One of the things that customer care executives need to do is team up with sales and say, 'look, we are the people who actually talk to the consumer. We have valuable information here that can help improve our products, service, and distribution. We feel obligated to pass this information along." He suggests getting that message to the company stakeholders and asking them to create a committee of all the department heads to work out the procedures for implementing this critical customer feedback from Sales and Customer Care.
He says Barefoot gave the boot to the traditional pyramid structure of corporations, putting sales and customer service at the top of the organization. "Customer was number one. Sales and customer service was number two. Under that was what we called 'Sales Support'. That included everybody who was not in Sales or Customer Care, like production, marketing, reception, legal, accounting and even the wine maker."
Making everybody part of sales support gives everybody the opportunity to derive professional satisfaction serving the general public, but "they need to get that feedback to know if what they are doing is right," Houlihan says, noting that such customer care generated feedback loops must at a minimum include production and marketing. "Sales and customer care are the only groups talking directly to the general public! So you really have to be kind of foolish not listening to these folks."
Even so, being made up of human beings, corporations can be rigid and change resistant. And wrong-headed. "Part of the problem is that production and marketing may actually think that they are above sales and customer relations. They get that idea because of the structure of the company. They often see Sales as somehow separate from "the office" and "to blame" when sales are suffering. They often see Customer Relations as "the complaint resolution department." But they are not above them. If fact, they should be below them because they are not going to have a paycheck if they can't stay viable and relevant," Houlihan says.
Company size can also get in the way of staying close to customers. According to Houlihan, as the amount of work grows, the division of labor expands. As the division of labor expands, silos appear. As silos appear, workers seek to make their jobs easier by making things uniform. "In the process, they start to remove things like quality cues or authenticity cues from the packaging. They say, 'why can't all of our packaging look the same?' Or they say, 'I'd still buy it.' Or they say things like, 'We're so big we don't have to bend over backwards anymore. And it makes my job a whole lot easier.' Well it's not about your job, it's about whether the customer is still married to your product or service."
Other change agent ideas? If the corporate pyramid, silos, barriers and impediments still remain firmly in place–short of uncorking a bottle of Barefoot wine–try promoting the entrepreneurial spirit. Individual initiative, risk taking and innovation are all qualities that can pique the interests of even the most conservative companies. Becoming more entrepreneurial means being better attuned to customer issues and perceptions.
"An entrepreneur does not have the luxury of not listening to his customer," Houlihan says. He suggests annual or semi-annual meetings featuring presentations from top sales and customer relations executives to share customer insights with others in the organization. "Marketing people will put millions of dollars into focus groups to get the information that the customer relationship people already know," he notes.
Regular reports with suggestion and complaint information gleaned from customers can also inform the enterprise and improve its competitive position. Making customers happy is part of the customer care role, Houlihan says, but making the company smarter is just as important. Such insights can cost less than market research and be more current.
"It's about opening up the lines of communication between the various departments," Harvey adds. It's about sharing information. And it's about getting organizational priorities straight. And as Michael Houlihan points out, it's about understanding the importance of customer relations–the last conversation a company has with the end user.