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Worst Case Scenario for Delivering New Customer Value

Here is a worst case scenario:

• A well known product, already experienced by the entire market.
• It’s had many re-introductions in different forms, packages, and industry verticals.
• Fully commoditized.
• The market may be emotionally attached to the original version so the new version may be potentially undesirable.

We must agree that under such a scenario new value-add, demand and certainly loyalty would be difficult to achieve.

However, if we are willing to look beyond our paradigms, and if we know our customers well enough to offer them something they never knew they wanted,
then, maybe we have a chance to lead.

Take a look:

What is special about this video?
Knowing your customer is the key to adding unforeseen value.

Rudy Vidal
Committed to XCL

I’d rather pay more, take longer and get tired, wouldn’t you?

Brilliant !
Here is a good example of the overwhelmingly powerful effect of experiences in creating customer behavior and loyalty.
The new product is clearly less effective than the alternative, yet customers prefer it 66% after the addition of the experiential component.

Suggestion:  Reduce your costs by dropping features and re-invest in adding experience.  The results are evident.
take a look:

Thank you  Volkswagen for the vision to undertake this project.

Rudy Vidal
Committed to XCL

 

 

A couple of days ago, I answered a question on a linkedin group that I thought was interesting:

Should we Send Client Holiday Gifts?

Answer: Yes, but having the right motivation and choosing the right gift is key.

Here are some thoughts:

1. If you need to – don’t:
If we feel not sending a holiday gift would hurt our relationship with the customer, then it’s probably too late. The gift should not be seen as a way to improve the relationship, it will not. Ironically, holiday gifts are most effective when they are not needed.

2. The purpose:
the purpose of the gift is to remind the customer we are thankful for their patronage and are thinking of them at this special time.  But the power of the gift is in the opportunity to underscore what our customers should already know and feel about us; that we are aligned with their values; that we care for their success and for them as people. After all, they value us because we add value.

3. The right gift:
Choosing the right gift is not always easy; it should address the purpose above.  If the person in charge of maintaining the customer relationship has not thought carefully about what the gift should be then a card is probably best.

4. Personal gifts:
If we’ve developed a personal relationship with our customer then we shouldmake a personal gift in addition to the corporate gesture, where appropriate.

5. No self serving gifts:
Don’t send gifts that are boldly logo-ed, can be seen as advertising or mild reminders of our presence in the market.  Save those for the trade show. The customer should remember who sent the gift simply by knowing no-one else would have thought, would know or would care enough to send it.  Special offers, pricing are not gifts.  Send them at some other time.

6. Make it fun:
We rarely take the time to choose the right gift for a customer if the process is not fun.  Encourage relationship managers to think out of the box and to know that choosing the gift is important.  Small brainstorm groups for similar customer segments can save time.

7. The same gift?:
There is nothing wrong with sending the same gift to multiple or even all our clients, as long as it hits the mark.  In fact, if we can figure out that one gift that shows the essence of what we stand for as a brand, then sending them to every customer, maybe the best thing we could do.

8. A gift for every customer?
Depending on the business, a gift to every customer may or may not be a reasonable undertaking.  We should also consider than all customers are not created equal.  Some are more strategic and may warrant special attention, while others may suffice with a more generic or less costly approach.  I remember sending Christmas cards to 800 customers, where every employee wrote the card’s greeting for two customers and then asked five other colleagues to add their signature and role they played in providing great service.

Regardless of what we choose to do, our token should be true to our purpose and the essence as our company.  The customer should remember the gift fondly and after the second year of receiving such a gift, should suspect a potential theme or trend in our effort or choice.

The best business gift I ever received was a research project reviewing the best project management programs along with an independent assessment of which would be best for my company.  Beautiful ! – How did you know ?

Happy Holidays !

Committed to XCL
Rudy Vidal

BlackBerry – Taking Their Eye Off the Ball?

We prefer to find good examples of customer centricity to make our point.
However, sometimes examples of poor alignment with customer values can serve as helpful warning beacons.

First, I must say that I love BlackBerry products, they are reliable and do the job.

Today I was delighted to see BlackBerry had corrected their lack of a Desktop Manager for Mac, which has caused me countless hours of grief in trying to sync my PDA and Entourage on my Mac. I was excited, so I followed the link and downloaded the software.

Here is my experience:

1.  The download did not include a pdf of the instructions. I went to the website to find the instructions and also found release notes – Cool.
2.  Oops, the release notes say that when synchronizing with Entourage there are several unresolved issues with data integrity, the same ones that were giving me grief with the third party software.
3.  I decided to call the contact center to ask if the release notes were still current and/or to get advice on whether I should make the switch.  No phone number listed for customer support.  They have self help and forums, I spent 15 minutes looking for an answer then gave up.
4.  Decided to send an email to the support desk with my question – I received a reply saying the email was not delivered, we have self-help options or payed-for-support.

• Why would a device come without necessary software to synch to well known computers?
• Why would they deliver software without operating instructions?
• Why would they deliver software that does not work, and not let you know before you download?
• Why would they lead customers to believe there is a support email address when there is not?
• Why would they consider reliable customer support for business people something beyond their responsibility?

The answer could be simple, and it can happen to any company in the blink of an eye:
Sometimes we may not consider the effects of our business decisions on the customer experience.
Perhaps even less if our products are leading the market.

Well, it’s not about the product, its about the customer and the company’s alignment to their values.

My 7 years of BlackBerry usage mean nothing if I don’t feel the company is ready to support me when I need them.

The point here is that great companies can quickly loose their footing simply by forgetting that we are no longer in a product economy.
Products are great, but no longer brand differentiators.  The differentiator is now the customer experience due to the company’s integrity of purpose.

My partner Donna Root, said it perfectly yesterday :  ” A company’s alignment to their purpose is critical because in an experience economy customers care about “HOW” companies win.”

Your customers have evolved.  Their criteria for loyalty has shifted to a more holistic view.  They care about what company’s stand for and about their authenticity in that purpose.

What does your company stand for?

Rudy Vidal
Committed to XCL

A master of Experience and Differentiation

Friends,

Some of you may remember this posting from over a year ago.

As the need to differentiate becomes more and more critical, I thought I would have Johnny remind us
how its done.

This is a perfect example of the importance of the experience and the value of differentiation.

Enjoy.

Click for Johnny’s Video

Thank you.

Some Lessons Learned

This posting includes video, please click here to see the post on Xtreme Customer Loyalty Blog

Thank you

Rudy Vidal
Committed to XCL

Dell Buys Perot Systems: The Hidden Benefits

Mr. Enderle explains very eloquently the benefits of services organizations in their ability to strengthen relationships post sale.  I could not agree more.

Imagine if sales organizations understood that the signing of a contract was only half the revenue and value, and that the other half came as a result of our alignment and authenticity to our purpose as a company, as people.

Imagine if sales organizations considered the lifetime value of a customer the true goal.

Imagine if sales organizations saw themselves as the conduit to future value for the customer, the matchmakers for a long term relationship.  Many do.  But we usually don’t pay them for that, we certainly don’t measure that.

Imagine if sales organizations and service organizations were on the same team.

When was the last time you were happy to see a sales person from a company you didn’t know.

Imagine.

Thank you for your post Mr. Enderle.

Dell Buys Perot Systems: The Hidden Benefits | Blogs | ITBusinessEdge.com

Xtreme Csutomer Loyalty Workshop

Xtreme Customer Loyalty Workshop
October 16th, 2009

Irvine Marriott
Invine, CA. 

Learn More

10 Considerations for Successful Culture Shifts-Contact Ctrs #2 & 3

2. Management Ownership

It’s interesting to note that the three cultural components in fig.1 are all under control of management.  In spite of this, the culture is often seen as an independent force, only to be addressed as a last resort.  It is not uncommon for managers to refer to the culture as “they,” perceiving it as the independent sum of employee attitude.  Experience shows, more often than not, that management does not take full responsibility for the culture, but at times may perceive it a cause of an inability to improve performance.

Another aspect of ownership that cannot be overemphasized is the need for management to lead by example.  Management, from supervisors to the president, need to show they understand and live the “WHY.”  Most of us assimilate examples and parables easier than literal explanations, emails or speeches.  When the workforce sees management in action, they can instantly translate what they saw into potential actions in their area of influence.  Walking the talk makes all the difference.

A successful shift is unlikely, without management ownership
of the current and future cultures.

3. Ensuring the Need for A Culture Shift

Many planned culture shifts are not necessary.  In many cases the culture is well aligned to the purpose and able to deliver, but may need incremental adjustments in one or more of its components.  It should be noted that changes in the components might not result in noticeable cultural shifts until certain thresholds are crossed.  Therefore, within these limits we are able to make adjustments for improved performance without needing to address a shift in culture.  The less invasive option is usually recommended.

It is important to assess the quality of the culture, based on its alignment to the purpose, and not based on organizational performance.

Cultures are less often a cause and more often an affect.

Next Post:

4. Clarifying the “Purpose”
5. Identifying Needed Cultural Qualities
6. Employee Engagement

Rudy Vidal
Committed to XCL

Copyright 2009 Vidal Consulting Group LLC

10 Considerations for Successful Contact Center Culture Shifts-Part 1

In this series of 3 postings, we will cover 10 considerations for creating successful cultures shifts in support contact centers.  Although not a complete or exhaustive list, it calls attention to areas often overlooked or of critical importance.  These considerations can apply to other types of organizations and contact centers.

These postings will shortly be compiled into a whitepaper available on our website.  If you’d like to receive a FREE copy, please click hereand we’ll email you a copy once compiled, or click here to be notified of updates.

Introduction
Contact Centers form very specific kinds of cultures, which can present challenges not usually seen elsewhere in the organization.  The proactive management of cultures is often avoided because it is seen as a difficult and even dangerous long-term endeavor.  This does not have to be the case, in fact, the proactive management of cultures increases the likelihood of success and is rewarding to all those involved.

Bob Greenberg, CMO of Panasonic, a dear friend and mentor, once said to me: “left alone, disarray and lack of grace always prevails.  If we want to maintain grace and beauty in our systems, we must be involved”.  An example is: A house left alone will deteriorate faster than one that is lived-in and cared for.  For the same reason, we need to nurture cultures over time.  Left alone, the forces of everyday business as well as changes in management and staff can move cultures away from the desired focus.

Through experience, we can list a few guidelines for initial thoughts:

-        Cultures require management ownership
-        Cultures are not the employees.
-        Cultures are usually the effect, not the cause.
-        Cultures cannot be changed; they are either shifted or damaged.
-        Culture shifts cannot be mandated.  Mandate = Damage
-        Cultures must be seen as a labor of love.

We feel very strongly about these factoids forming a foundation for success.  If you disagree, we love your comments.

1. Definition

Although there is room for interpretation, an over-simplified definition of a corporate culture is offered as:

“The  generally accepted norms and values of an organization that result in a behavioral or operational paradigm”

In short, an organization adopts certain norms and values that result in certain consistencies in the way it thinks, feels and acts.

Considering the definition we are tempted to equate “culture” to “workforce”.  But that is an incomplete view.  The culture is not simply the sum of the workforce, but is instead, the result of what can be considered a “chemical” reaction between People, Purpose and Environment.

This interaction results in the set of values and norms that allow us to predict organizational behavior under certain conditions.  To the extent that these norms and values magnify or support the core purpose of the organization, we can say we have a satisfactorily aligned culture.

Let’s cover the components briefly:

People:
As mentioned, the people component is not limited to employees but include all those in the interaction: management, customers, vendors as well as employees.  Some organizational behaviorists may include special external influencers such as labor unions or immediate family.

The importance of managing the people component is obvious, but the reason often eludes us.  We must manage the people component because it is “the people” that set the stage for the purpose, the environment and the chemical reaction and it is in “the people” that the chemical reaction takes place.

People are the most important asset of the culture, nothing happens without people.

Purpose:
In today’s experience economy (“The Experience Economy“, Pine and Gilmore), products and services are no longer considered long-term brand differentiators.  The market differentiators have now become “experiences”.  Experiences are a broader output and are driven by the organization’s intention or purpose.

The purpose of the contact center goes beyond the pragmatic “job” to be done, it reaches for the “WHY” or essence for which the contact center stands. (see “Start with Why”, Sinek)

By aligning our departments, employees, policies, processes, etc., to this “WHY”, we can create consistent and repeatable experiences for our customers across the organization.  A clearly defined purpose simplifies decisions, facilitates empowerment, promotes employee engagement and creates focus.

The purpose defines the culture.

Environment
The environment is the sum of the all other variables creating the conditions for the chemical reaction.  It is comprised of processes, policies, systems, tools, expectations, metrics, etc.  The variables we normally manipulate to improve our performance are most often part of the environment.

In Short
The Purpose defines the Culture, while the People and Environment make it possible.
By managing People, Purpose and Environment we can shift cultures.

Next Posting:

2. Management Ownership
3. Ensuring a Need for a Culture Shift
4. Clarifying the “Purpose”
5. Identifying Needed Cultural Qualities
6. Employee Engagement

Rudy Vidal
Committed to XCL