So would we all be better off without customers?

We’ve all joked about the impractical notion of life without customers. Imagine it, it’d be super not having to deal with constant questions, complaints, rudeness and slow payments. We could say “so long” to our investments in marketing, better systems and the constant challenge in creating engaging consumer environments. We’d be able to spend time on doing the things we think are more important. You know like, well, hmm…

The undeniable fact is that whether we like it or not, our ability to attract, influence, convert and retain customers need to be at the forefront of our business strategies – top down and bottom up.

Surprisingly however, we continue to report some less than satisfactory customer experience scores from organisations (in Australia and abroad) that should be doing better. I put it down to four key factors:

1. Hollow messaging.
2. Lack of a clear picture of how customers engage with you.
3. Poor training and continuous improvement systems.
4. Ill-directed investment.

I will briefly discuss each one.

1. Hollow messaging

Think about this common phrase – “Say what you mean, and do what you say”. Successful leaders understand that the customer must sit at the centre of everything they do. They’re constantly humbled by their customers and listen intently to cues. Far too often the marketing spin doesn’t get translated to what happens at the coalface and the customer experiences this mismatch. Focus on creating a customer culture from the top down and put systems in place to reinforce great performance.

Let me share with you a quick example. Just recently I had the unpleasant experience of making a general insurance claim. When I decided to take on the policy my wait times were short and the sales team were responsive. However, when I went to make a claim a waiting period of over 45 minutes would ensue, each time I called. The brand messages speak customer centricity, but in reality I felt frustrated and a little cheated. I will be reconsidering my insurer at renewal time.

2. Lack of a clear picture of how customers engage with you

A simple customer survey is not going far enough. Today we’re faced with growing customer expectations and channel proliferation and a more complete and integrated picture is needed. You may want to consider these six steps in your organisation:

1. First define each of the touch points you provide to customers and what you offer through them.
2. Benchmark your performance at each channel against competitors and best practice, and analyse the key customer data you have available.
3. Speak with a good sample of your prospects and customers to understand more about what they were trying to achieve.
4. Re-think and remodel what you’re offering through each channel (note: you don’t need to provide everything in each channel but make sure what you provide is done well).
5. Implement measurement tools that can provide you with a performance pulse.
6. Make changes, constantly review, benchmark and iterate.

3. Poor training and continuous improvement systems

This item is pretty self-explanatory but often requires some reinforcement. Transient workforces, changing roles, evolving systems and processes require a constant focus on people development.

If you’re a small team, regular refresher training on products, offers, options and complaint handling is crucial to keep everyone aligned. A study completed this year by comScore, Inc in the US identified that one in three people would make a purchase from a Twitter or Facebook referral. So considering the popularity of social media and its reach, a dedicated focus on the experience you offer through your team is certain to pay off.

4. Ill-directed investment

If you invest in getting your customer experience right then you may experience a nice positive impact to your bottom line. Our friends at the Temkin Group in the US have recently reported that “customer experience leaders enjoy a double-digit advantage in customers that are willing to buy more from them, reluctant to switch business away from them, and likely to recommend them”.

They went on to estimate the revenue affect of improving customer experience across 12 industries. What they found was that for just a modest improvement in customer experience, health insurance companies could derive revenue gains of US$179 million and hotel groups US$308 million over three years for every US$1 billion in annual sales. Good levels of ROI for your customer experience program.

The key take-out here is for you to focus on your customer’s buying behaviour and motivations. Spend time understanding as much as you can about them. Integrate your sources of customer intelligence, share it with your team and use it to refine or reinforce your operating guidelines.

Greg Muller is the Chief Executive Officer of international research and insights firm, Global Reviews.