Author Archive

We Have to Change the Way We Change

Anybody who has ever owned an aquarium knows that you can only change a certain amount of the water at a time without upsetting the delicate bacteriological balance that keeps ammonia and nitrate levels safe for the fish. This principle might also be applied to organizations. How often have we seen sweeping changes in organizations that fail to address the issues that they have been targeted at, yet cause huge disruption and uncertainty, which eventually ripples through to the customer with unintended consequences.

In an insightful article by social entrepreneur Zenna Atkins in the Guardian online at http://bit.ly/2Eryg5, the author advises against the “big bang” approach to change, in favor of the incremental approach. Atkins argues that it is better to have multiple listening points, both internally and externally that enable an organization to be constantly aware of what is going on. This provides the necessary intelligence that allows the organization to evolve gradually to keep pace with ever changing customer needs. Listening posts might include customer and employee surveys, social media (blogs, customer forums, Twitter etc.), focus groups and direct conversations.

The bottom line – establish listening posts internally and externally. Introduce change in continuous small increments to allow your organization to become accustomed to each new state. Use the same listening posts to evaluate the success or failure of the change. Your customers and employees will be glad that you listened and acted.

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Three Degrees of Influence

Many years ago my father-in-law took his family on a day trip to Muir Beach, just North of San Francisco. It was a very warm day and parking was hard to come by. He observed a lot of cars parked in the red zone on the road approaching the beach, so he also parked there, figuring that because so many others had done it, it was somehow OK. He was livid when he returned to the car later to discover a parking ticket and was no less livid when he noticed that everybody else had gotten ticketed too.

How our behaviors are influenced by others, is the subject of one of the most fascinating and informative books I have ever read – Connected: The Surprising Power of Our Social Networks and How They Shape Our Lives by Nicholas A. Christakis and James H. Fowler. In the book the authors present the scientific evidence of how we not only influence our friends, but also those that are three degrees of separation away from us, in other words – our friends’ friends and the friends of our friends’ friends. Their book examines not only epidemics of disease, but also suicides, politics, happiness, sadness and many other human experiences.

The book offers interesting insights, based on real science on how ideas and beliefs can go viral. These insights into human behavior can shed light on troubling events such as asset bubbles or even genocide. It seems that our primeval need to belong in groups (who would want to be an outcast when cannibalism and human sacrifice was commonly practiced) can overwhelm our rationality and our morality with terrible consequences. The good news is that the effect works in reverse also so that positive outcomes such as altruism and social justice can also be contagious. The case in Winston-Salem, North Carolina where 44 Liberian orphans were adopted by various local families is a wonderful example.

In Chapter 8 of the book, the authors describe how our behavior in virtual communities mimics our behavior in the real world. Apparently, attractive avatars in Second Life are more confident than plain avatars – regardless of the sex and looks of the real person who “owns” the avatar. In the popular online game “World of Warcraft”, a virtual disease spread in much the same way as a real disease might spread. These findings offer new avenues of experimentation for social scientists exploring the human condition.

The key takeaway is that each of us has influence over others, even over those that we have never met, but who are within three degrees of separation. If we are depressed, we can depress others. If we are happy we can, with little effort on our part, cause happiness in others. This book should be required reading in schools and colleges. Perhaps understanding our propensity to follow the crowd and the potential negative outcomes, might prevent some of our more destructive behaviors.

 

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What Recession? – Small Home Builder Leveraging Social Media is Growing

 

Martell Homes of New Brunswick, Canada is growing their business. That’s right – a Home Builder is growing during a global recession that has been particularly hard on the construction industry. Martell Homes sold 16 units in 2007. They sold 40 in 2008 and hope for 100 in 2009. Martell uses twitter, a blog, youtube and facebook to engage with customers and gives those customers the opportunity to speak about their customer experience.

In his blog article,  Jason Falls of  socialmediaexplorer.com,  describes how Martells success is not simply due to the fact that he uses social media, but that he is using social media to tell a great customer experience story. On his website, real customers tell how Pierre Martell was very responsive to their requests and met his commitments. The messages from real customers are  very compelling and offer a powerful contrast to the contrived marketing messages found on the websites of many larger Home Builders. As Jason puts it …

“The first thing that hits you about Martell is their URL — http://www.themartellexperience.com. And, that, in essence, captures what Martell is about. Hiring them to build your house gives you an experience. “

You can read the whole article at Social Media For Small Business: Martell Home Builders

 The Martell Home Builder story is also featured as a case study at http://jfknet.com/case-studies


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Once Again Social Media Flexes It’s Power

Today T-Mobile dropped it’s plan to charge $1.50 per month for paper billing. This is in response to a huge outcry by customers who vented their opposition in multiple online communities. This generated some negative publicity for T-Mobile, who might well have turned that publicity in their favor by offering a reduced bill or additional minutes  for paperless subscribers. Consumers are leveraging the power of social media to broadcast their customer experience issues. The power of social media cannot be ignored and is growing rapidly.

@jimmytmaher

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Consumers Are Armed and Dangerous

In March 2009, Bob Garfield declared  victory for the Comcast Must Die campaign. OK – Comcast is very much alive, but somewhat chastened by the grassroots campaign started in October 2007 to publicize Comcast’s poor record of customer service and arrogant attitude towards its subscribers. Over the next two years Comcast was shamed into addressing many of the issues raised by its customers and by doing so improved its overall customer service and received some positive press for its efforts – particularly its Twitter campaign.

The success of the Comcast Consumer revolt has lead to the creation of a new site http://customercircus.net/ which allows consumers to post customer service problems on a variety of service providers including Comcast.

The “Comcast Must Die” campaign really highlighted the new found power that consumers have through social media. Businesses cannot afford to ignore customer complaints and must ensure a positive customer engagement at each customer touchpoint. Angry consumers have powerful weapons at their disposal and are not afraid to use them.

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Some tips for the Yahoo Customer Experience

Recently, my wife started to see the following error when she tried to access Yahoo Mail. The  error occurred on two different computers and with both IE 8 and Firefox 3.5. On the same computers, I can log onto mail.yahoo.com with my own account and have no problems receiving mail.

 

Sorry, Unable to process request at this time — error 999.

Unfortunately we are unable to process your request at this time. This error is usually temporary. Please try again later.

If you continue to experience this error, it may be caused by one of the following:

  • You may want to scan your system for spyware and viruses, as they may interfere with your ability to connect to Yahoo!. For detailed information on spyware and virus protection, please visit the Yahoo! Security Center.
  • This problem may be due to unusual network activity coming from your Internet Service Provider. We recommend that you report this problem to them.

While this error is usually temporary, if it continues and the above solutions don’t resolve your problem, please let us know.

 

As the error was not temporary, I submitted a request by clicking on the let us know link. I immediately got an automated response pointing the finger at my isp, my PC, malware etc. The error message ALREADY told me to do that.

Fair enough, it is an automated response and it gave a stock answer. I responded to the email and indicated that other yahoo mail accounts worked fine on the exact same pc’s with the same ISP. This time, a human being responded asking for more details plus some security information to verify identity. Alternatively, I could resubmit at the same let us know link. I choose the latter and this time had trouble with the confirm code required for submitting a help request …

 

Now that sure looks like 25uAMzez to me, but that code was not accepted after several repeated attempts. I later figured out that the A was a 4. I tried the audio code option and I failed at that too. I had to reload the page and start again with a new code to submit the ticket. Again, I got the same autoresponse as before. So I will respond to the email mentioned above instead. At the time of posting this, it has been a week since I first reported the issue and it is still not answered. OK – it’s a free email account and I should not expect instant access to a support person, but we do come to rely on email and it should work.

To whomever is responsible for customer experience at Yahoo – here are some easy wins that might help other users

 

  1. The error message and details are vague and might apply to any Yahoo page. As mail is an important service, the system should recognize this as a problem accessing mail and provide more specific diagnostic instructions.
  2. Definitely allow users to refresh the confirmation code – most other sites that use this irritating technology have the option to refresh the code
  3. Perhaps allow users to view and track  their help request tickets through a CRM
  4. Engage a third party (eg. Cubed Consulting) to audit your customer experience from the outside in

 

@jimmytmaher

 

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Little Interactions That Can Harm Your Brand

Would you alienate prospects attending your promotional event? Would you send people away from an event with negative impressions of your company?  How important are the little interactions?

Recently, a colleague and I registered to attend a “Solutions Showcase” in San Francisco, from a leading Telco demonstrating their latest generation smartphones.  We received confirmation and attended the event.

On arrival we were told that we were not registered. The manger was, at first, apologetic, indicating that the event had been overbooked by 20% on the expectation that there would be no shows.  After learning that the invitation had been forwarded to us by a colleague who knew we were looking for a solution for our business, he said he would do his best to seat us, but had to give priority to those invited directly by company sales people.  We were eventually invited into the event.

After some compelling demonstrations of their new smart phones, it was announced that ALL attendees would receive one of the phones with two months voice and data service along with some other giveaways in exchange for our time that morning.

When we stopped by the desk to collect the gift, we were once again directed to the manager.  He explained that as we had not been invited directly by a company salesperson, we would not be getting the gift. The whole experience was distasteful and showed the Company in a poor light. We sent a complaint letter to the office of the CEO and this was handled very well by a telephoned apology and an honoring of the commitment to provide smartphones to all attendees.

This particular company has a reputation for good service and did, ultimately, address the issue.  To a certain extent, the damage had already been done.  Even the best companies are at risk of interactions that can have a damaging effect on the company’s reputation. However, even when things go wrong, it is possible to enhance the company’s reputation by following the principles below …

  1. Customer/prospect engagement is unpredictable – plan and prepare to address situations that go awry. Have a “crisis response plan” that guides company actions when the brand is threatened.
  2. React quickly when the problem surfaces. Apparently, the Company knew that this event had been posted to a blog and a lot of people had registered who were not in their target demographic. This was the time to address the situation.
  3. Train and empower your people to do the right thing.  There may sometimes be a cost, but over the long term this cost will be repaid many times over in customer loyalty and positive word of mouth.
  4. Make great customer service a core value and drive that core value throughout the organization.

 

Key Takeaway: Design and implement customer experience programs that help your company avoid major (and minor) missteps and to respond rapidly when your brand is threatened.

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Don’t Eat Your Seedcorn

In today’s difficult economy, it is too easy for company leaders to become over zealous in making cuts. While it is understandable – particularly in public companies where pressures to meet quarterly Wall Street expectations drive short term decision making, it is important to be aware that many companies fail as economies pull out of recession due to the fact that cuts in various departments cause companies to be unable to keep up with customer needs.

An extreme example of this phenomenon is the Sunbeam story. Wall Street celebrated the actions of “Chainsaw” Al Dunlap, in downsizing Sunbeam boosting the Sunbeam stock price by 50% when he took over in 1996. Within two years, the company was nearly bankrupt. Dunlap was fired and Sunbeam limped along until 2001 when it finally filed chapter 11.
As we learn from Jim Collins in “Good to Great”, great companies have a long term horizon and are far less likely to take dramatic measures in order to address short term needs.
It is particularly shortsighted to reduce your customer support capacity even when there is a reduction in demand. Layoffs have a demoralizing effect on the remaining employees which impacts the quality of service delivered. An alternative is to utilize the additional capacity on proactive customer experience initiatives. Taking this approach leads to greater employee engagement and as Gallup has shown – that engaged employees are more productive, profitable, safer, create stronger customer relationships, and stay longer with their company than less engaged employees.

Remember – “Don’t eat your seedcorn” – your valuable resources will be needed as the economy recovers.

 

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Understand International Variances in your Customer Surveys

One of the challenges I have struggled with when interpreting customer survey results is understanding why some countries give lower scores than others on the same questions – in particular in relation to product performance, which should be the same for all regions.  Most global companies divide the world into the following regions – NASA (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia-Pacific Region).  I have observed that on the same survey, the NASA region will score highest, followed by EMEA, followed by APAC. In one instance, the NASA based support management assumed that this indicated that they were doing a better job and there was pressure applied to the other regions support teams to close the gap. Having worked in both NASA and EMEA based service organizations, I have suspected that variances in results might be culture related. Furthermore, if I took the APAC results for a particular survey and looked only at results for Australia and New Zealand, these closely matched NASA results – suggesting that the APAC support team was doing as good a job as their NASA counterparts.

Recently, I discovered the work of Professor Geert Hofstede who has conducted ground-breaking studies of cultural differences.  Analyzing a large data base of employee values scores collected by IBM between 1967 and 1973 covering more than 70 countries, Prof. Hofstede developed a Framework for Assessing Culture that identifies five dimensions of culture that can impact and predict behavior.

Wikipedia summarizes the five dimensions as follows …

  • Low vs. High Power Distance –  the extent to which the less powerful members of institutions and organizations expect and accept that power is distributed unequally. Low power distance (e.g. Austria, Australia, Denmark, New Zealand) expect and accept power relations that are more consultative or democratic. People relate to one another more as equals regardless of formal positions. Subordinates are more comfortable with and demand the right to contribute to and critique the decision making of those in power. In High power distance countries (e.g. Malaysia), less powerful accept power relations that are more autocratic and paternalistic. Subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions. As such, the Power Distance Index Hofstede defines does not reflect an objective difference in power distribution, but rather the way people perceive power differences. In Europe, Power Distance tends to be lower in Northern countries and higher in Southern and Eastern parts. There seems to be an admittedly disputable correlation with predominant religions.

 

  • Individualism vs. collectivism – individualism is contrasted with collectivism, and refers to the extent to which people are expected to stand up for themselves and to choose their own affiliations, or alternatively act predominantly as a member of a life-long group or organization. Latin American cultures rank among the most collectivist in this category, while Anglo countries such as the U.S.A., Great Britain and Australia are the most individualistic cultures.

 

  • Masculinity vs. femininity – refers to the value placed on traditionally male or female values (as understood in most Western cultures). So called ‘masculine’ cultures value competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions, whereas feminine cultures place more value on relationships and quality of life. Japan is considered by Hofstede to be the most “masculine” culture (replaced by Slovakia in a later study), Sweden the most “feminine.” Anglo cultures are moderately masculine. As a result of the taboo on sexuality in many cultures, particularly masculine ones, and because of the obvious gender generalizations implied by Hofstede’s terminology, this dimension is often renamed by users of Hofstede’s work, e.g. to Quantity of Life vs. Quality of Life. Another reading of the same dimension holds that in ‘M’ cultures, the differences between gender roles are more dramatic and less fluid than in ‘F’ cultures

 

  • Uncertainty avoidance – reflects the extent to which members of a society attempt to cope with anxiety by minimizing uncertainty. Cultures that scored high in uncertainty avoidance prefer rules (e.g. about religion and food) and structured circumstances, and employees tend to remain longer with their present employer. Mediterranean cultures, Latin America, and Japan rank the highest in this category.

 

 

Michael Harris Bond and his collaborators subsequently found a fifth dimension which was initially called Confucian dynamism. Hofstede later incorporated this into his framework as:

  • Long vs. short term orientation – describes a society’s “time horizon,” or the importance attached to the future versus the past and present. In long term oriented societies, values include persistence (perseverance), ordering relationships by status, thrift, and having a sense of shame; in short term oriented societies, values include normative statements, personal steadiness and stability, protecting ones face, respect for tradition, and reciprocation of greetings, favors, and gifts. China, Japan and the Asian countries score especially high (long-term) here, with Western nations scoring rather low (short-term) and many of the less developed nations very low; China scored highest and Pakistan lowest.

 

The scores on the dimensions are available at Hofstede’s website.

In summary, although not without it’s detractors, Hofstede’s work remains the most exhaustive and scientific study of cultural differences to date. It presents compelling evidence that an individuals behavior is influenced by their cultural background and provides a predictive model based on the research. I have observed a similarity in survey responses from countries scoring high on the individualism/collectivism dimension.  I will certainly be leveraging Hofstedes work in future surveys to determine if this observation continues to hold true.

The key takeaways for customer experience and customer support managers are …

  1. Survey results should not be used to compare performance across geographic boundaries, without taking into account the cultural background of the respondent.
  2. Compare single country results to known benchmarks, if possible.
  3. Survey frequently to capture trends. Trending will give you a reliable indication of your organizations performance over time.

 

 

 

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SAP UK Study finds that Customer Engagement is Key to Surviving Recession

The following appeared in an article posted at …

http://tinyurl.com/qrmxru

“Recent research by software provider SAP UK found that over 50 per cent of respondents are looking at a number of different technology channels to increase revenue.

A similar amount also claimed that focusing on customer engagement will be the key driver to surviving the downturn. “

Like most organizations, your company is likely engaging your customers through multiple channels, formal and informal, across different departments. This can cause the customer experience to be erratic and disjointed. Remember that the customer does not view your company as a collection of individuals or siloed departments, but very likely experiences your organization that way. Great customer experience requires a company wide strategy for all customer touchpoints. Based on the findings by SAP UK, many organizations are realizing this.

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