KNOWLEDGESTREAM AT-A-GLANCE
The Age of Continuous Connection
ABSTRACT
The Age of Continuous Connection - the May June 2018 issue of HBR. Thanks to new technologies that enable frequent, low-friction, customized digital interactions, companies today are building much deeper ties with customers than ever before. Instead of waiting for customers to come to them, firms are addressing customers’ needs the moment they arise—and sometimes even earlier.
PARTICIPANTS
OBJECTIVES
1. Methodolog: Explore the four different strategies within this concept and their specific applicability.
In-depth reviews of the four strategies were completed to understand the appropriate circumstance for each strategy. The common thread through all is that Customers are no longer viewed as part of a larger market segment, but rather as an individualized ma
2. Organizational Structures: Review organizational structures that are needed to foster a more continuous customer connection.
Unlike typical customer-facing efforts, the journey to Continuous Customer Connection is not exclusive to marketing and sales. Rather, it requires back office functions such as HR and Technology to be embedded in the design and approach.
3. Mutual Reward: Evaluate the ability to generate 'mutual reward' in the context of evolving customer relationships.
In exchange for personalized and customized customer interactions the company is provided a wealth of customer data that can be used to better understand purchasing patterns and product/service demand.
4. Technologies: Examine technologies that are key to engaging in continuous customer connections.
A strong technology backbone is needed to enable the level one-on-one customer interaction that is the foundation of Continuous Customer Connectivity. Safeguarding this level of customer data is of critical importance and should be accompanied by an increa
End Date: Oct 4, 2019
CONTRIBUTIONS
ACTIVITY
126 Days
9 Themes
39 Contributors
1067 Posts
568 Comments
308 Followers
OUTPUTS
8 Slide Deck
2 Blog Post
8 Video
6 Social Post
CALLS ATTENDED
• 2019-05-29 - Scoping Call & Talent Review
• 2019-06-27 - Check-in call
• 2019-06-28 - Integration Brainstorm Session Emmanuel/Michelle Part 1
• 2019-07-19 - Check-in Call
• 2019-08-02 - Check-in Call
• 2019-08-02 - Check-in Call
• 2019-08-30 - Check-in Call
• 2019-08-30 - Check-in Call
• 2019-08-30 - Check-in Call
• 2019-09-27 - Check-in Call
EXECUTIVE SUMMARY
The movement to customer-centric organizations is gaining momentum and new approaches like Continuous Customer Connection are on the forefront. Successful implementation requires not only an enterprise-wide commitment to customer service, but it creates a one-on-one opportunity for the company to connect with their customers. Companies need to be diligent in their treatment of this relationship and ensure that this trust is not used simply as a means for more mass-marketing or promotion - but rather to serve the customers need with the most appropriate strategy available.
THEME #1
What are your initial thoughts regarding "Continuous Connection"?
THEME SUMMARY
The consumers expectation for proactive identification of needs and personalized curation are forging new opportunities for companies that can execute Continuous Connection in a way that delivers an effortless and mutually beneficial interaction.
- Customers do value the overall concept of Continuous Connection when implemented with a very personalized and permissive approach.
- Companies need Continuous Connectivity to remain relevant, however, in comparison to earlier methodologies it requires a more humanized and authentic approach that is exceptionally executed.
- In attempting to adopt a Continuous Connection with consumers, many have stumbled and created a backlash of frustration and distrust -- creating a major hurdle for companies to overcome.
- Ultimately the progression of Continuous Connection will replace grouped market segments with bespoke offerings curated and delivered to meet the needs of an individual consumer.
Customers do value the overall concept of Continuous Connection when implemented with a very personalized and permissive approach.
I prefer to replace the word “Continuous” with “Timely” and add two adjectives: “Relevant” and “Value Added” to the word “Connection”; so my proposed phrase will be “Timely, Relevant and Value Added Connection”.
I think today's digital consumer is in a confused state of mind - On the one hand they are apprehensive about sharing their data and information with brands, while on the other hand, there is a basic expectation of the communication and offering to be highly personalized.
I tried to locate myself on the HBS article table and found that my preference as a customer was highly dependent on the situation. I like suggestions from Netflix and alerts from AT&T that my data usage is running high but I hate getting emails from 800 Contacts telling me it is time to reorder.
Companies need Continuous Connectivity to remain relevant, however, in comparison to earlier methodologies it requires a more humanized and authentic approach that is exceptionally executed.
In today's environment if you are not doing it you will quickly be behind and lose relevance. Not because you don't have inherent value but because you may lose the sale as someone gets there first with proactive efforts.
This has to be looked at through a completely customer-centric (or I would say, customer obsessed) lens that places utility, service, experience at the top of the priority list and friction, time wasted, inefficiency and dead ends at the bottom of the scrapheap.
We have to find ways to “Humanize our Digitization approach”, make it more “Authentic”, and bring more “Heart” in interactions. Leveraging holistic data, applying more refined AI for an event specific, personalized treatment will be one of the ways to humanize the customers experience.
In attempting to adopt a Continuous Connection with consumers, many have stumbled and created a backlash of frustration and distrust -- creating a major hurdle for companies to overcome.
In many cases today Continuous Connection simply overwhelms Customers through chaotic interactions and often fails to connect to them objectively. The reasons may be the lack of data insights and intelligence.
It is not continuous selling, it is a continuous connection and that means it needs to be personal. This opens up a whole new set of challenges for brands
Everything I witness with technology translates to unconscious rapid acceleration at the expense of any mindfulness. I see this at the group and organizational level as well as on the individual level.
Ultimately the progression of Continuous Connection will replace grouped market segments with bespoke offerings curated and delivered to meet the needs of an individual consumer.
I foresee this driving a hyper-personalized commercial experience that drives everyone to be catered to as their own population of one and yearns for creativity, yet lacks it due to the overwhelming noise from various mediums when one looks outside their own sphere.
Convenience, speed & intuitiveness are definitely important aspects & they are a key differentiator for a few brands today, but tomorrow when every brand is able to provide the same level of agility & customization, what will differentiate one brand from the other?
THEME #2
Respond to Desire Strategy
THEME SUMMARY
In the journey to Continuous Customer Connection the Respond to Desire strategy focuses specifically on operational tactics such as speed and precise execution. Of the four strategies it is most applicable to situations where the customer knows exactly what is needed, or precisely what the.......
- Companies who set the bar for execution of the Respond to Desire strategy quickly address customer needs with an emphasis on speed, precision, and minimal customer effort.
- Respond to Desire targets interactions where the customer has the knowledge necessary to determine the specific product or service that meets their immediate need.
- At the core of Respond to Desire is the need to minimize friction and elevate trust in all stages of the customer journey.
- The ability to continually evolve and keep pace with customer expectations is an ongoing process.
SURVEYS
Companies who set the bar for execution of the Respond to Desire strategy quickly address customer needs with an emphasis on speed, precision, and minimal customer effort.
When it comes to setting the bar or gold standard in terms of responding to desire, surely there can be no better at this point than Amazon. From One-Click-Order to Alexa integration, Amazon has near perfected the ability to scratch any itch and do it without any friction or pain whatsoever.
Zappos - probably one of really best examples with customers able to call and tell the operator "I've seen the red shoes on character A in season 1 episode 7 of the show Z - I want the same ones, my size is..." and operator searched for the item and placed an order.
Chewy. They'll show up in the other strategies but they rock it in Respond to Desire. Fast, efficient, easy to do business with and if/when a problem happens its resolved easily.
Respond to Desire targets interactions where the customer has the knowledge necessary to determine the specific product or service that meets their immediate need. Industries where the custo......
Medical is often in the respond to desire category. Instead, we are faced with a system where one often does not know the cost until after the service has been delivered, get sent from place to place honing in on the next specialist, and many times provided treatment for symptoms not cures.
banking products: Most of the product (Money Transfer, Mutual Funds, Mortgage, Credit Cards, etc) is not personalized. Same for their service arms (online banking, mobile banking, and in-branch banking). Even if you leave the product part apart, delivery and customer experience are not that great.
Automotive - One day consumers will buy new cars online, but there is a lot of offline interaction involved (even if the research is still driven online). There is a need for having a seamless connection between the two journeys, making life simpler for the consumers.
At the core of Respond to Desire is the need to minimize friction and elevate trust in all stages of the customer journey. With the goal of minimizing the amount of effort a customer must apply.......
Chewy trusts the customer & front line service reps. I had a high value coupon to use & I just had to tell them & they credited the account, asked for me to send it in, immediately applied the discount, & shipped the product. Great example of how the nuances can provide frictionless experiences.
More and more companies are removing human element from customer service. No contact us phone number or email or chat. Help may appear to be backed by a human but it becomes clear its just a program serving up links or send you to a forum that never seems to address the issue.
In our case, we knew what our customers are saying but not how to engage them (earn loyalty). We started listening to them from our ticketing systems, social media, emails etc. The difference was a quick personalized response that shows we are listening. Sometimes that is also "Response to desire".
The ability to continually evolve and keep pace with customer expectations is an ongoing process enabled by internal company values and structures that maintain a focus on future needs and ........
1) clear internal vision genuinely focused on the customer 2) customer journey mapping & aligning efforts to delight the customer 3) relentless commitment to remove points of pain 4) simplifying ops to the fewest & repeatable "steps" 5) empower the front lines 6) customer metrics are top KPIs.
1) Do core business the best you can. No perks etc. will save you from bad quality of your core business 2) Do more for your customers than they expect 3) Do by yourself as much as you can, don't ask your customers for any action you can exclude 4) Anticipate the needs, if it's possible
1) Right and exceptional team 2) Local (country) freedom in decisions 3) Team's desire to make a breakthrough (not disruptive, but breakthrough) service 4) The right to make mistakes - we could try any features we believed in (of course we had to champion and calculate those initiatives).
HOLDING QUOTES 5
Your cable company - Comcast for me - will serve up movies instantly with a point and click of the remote, a product of technology for sure, but pre-digital/mobile app era level technology.
Insurance products of any kind (a lot of what is wrong with insurance is also true for credit, lending, mortgages and so forth). Maybe it goes even further to extend to any industry that employs some level of dynamic pricing and limits transparency to protect margins.
Two critical internal drivers to success: First is the internal will to invest in analyzing a dynamic landscape to anticipate what customers will desire in the future. Second is willingness to take large risks for high returns on developing solutions that meet the outputs of your initial analysis.
Holding Quotes 6
In your company do you teach all professional staff how to be value creators or innovators? -A focus on important needs -Shared understanding of value proposition, innovation, customer value, etc. -Recurring forums where teams present their value propositions for 2-5 minutes and get team feedback
Look from another side: customers within different industries are the same people. It's the same customer buying coffee, filling the tank, subscribing for movies, going to dentist, buying an insurance, renting a house and etc. It's the same customer with the same needs and desires.
THEME #3
Curated Offering Strategy
THEME SUMMARY
Within the scope of Continuous Customer Connection, the second of the four strategies uses specific customer preferences to provide a personalized experience tailored to the individual customer. The Curated Offering strategy allows customers to efficiently complete a transaction ......
- Market Differentiation
- Customer Collaboration
- Refining Customer Preferences
- New Customer Analytics
Companies who excel in the correct execution of Curated Offerings can differentiate themselves in otherwise crowded market segments.
Graze positions itself as tasty healthy snacks, portioned controlled, giving customers permission to snack. Customers vote on what was sent to them - which helps Graze improve future curation and engages customers. Curation allowed an innovative business model in the competitive sea of snacking.
Personalized 'box' senders - Lots of retailers are jumping in the 'monthly' or other periodic box sending, be it fashion, dog treats, kids toys. The more you like what's in the box by guessing your preferences (using your profile, etc) the more likely you are to keep it coming.
The M.A.C stores: They give you a free demo with the makeup that you wish to try. They provide recommendations about what would go with your skin tone, hair & skin type. In a store like this, you are bound to end up buying even more than you actually needed!
By definition the Curated Offering strategy applies to customers who have not made their final decision, providing the company a unique opportunity to participate in the decision making process.
Progressive Insurance rate comparisons: They provide the consumer with product information even where they may not offer the low bid. Trust develops, and eventually, that feeling leads to a purchase. With a curated approach, the sale results in the end rather than being pushed from the beginning.
Ikea: Apart from providing great decor ideas through its app and in store, the Swedish company has also acquired Task Rabbit, which takes care of home improvement related services, right from fixing the broken sink to curating your furniture.
Schwan: sales people introduced customers to pizza or ice cream...high impulse indulgent items. Data showed that this was not the ideal start to the journey as it caused people to see Schwan's as an indulgence. Starting people with center of the plate items solidified the brand as a meal solution.
A key aspect of Curated Offerings is providing frequent (but unobtrusive) opportunities for the customer to influence the predictive analytics.
One way to gather more info and involve the customer is asking for feedback on suggestions you make. Using a simple thumbs up or down you can start to gather richer insight to help your back end analytics be more effective at serving up the best recommendations.
ex: The company knows you buy a certain type of latte since you order through their mobile app every day. The company also knows what people buy together from their sales data. Tee up the food most often purchased with the latte you always buy. Even better by people with the same profile as you,
Companies need to be like Goldilocks (what is "just right"). Maintaining balance is difficult with many opportunities to engage the customer. Sticking a survey in front of them every time they move from one spot to another on your site creates resentment rather than connection with your customers.
Artificial Intelligence (AI) and Machine Learning (ML) are key tools for the execution of Curated Offerings. So how can companies quickly gather AI & ML inputs from new customers?
New Cust: Serve up "profiles" and ask the customer to tell you which is most like them. Illustrate with concept boards and words. I am a fan of this approach since it results in a detailed algorithm that has proven to be effective AND doesn't require the customer to go through a boring survey.
Incentives work. Vendors can incentivize consumers (discounts, etc) to complete a survey to collect information and gain a better understanding of how to help them make a selection. Then use artificial intelligence and machine learning to better correlate information and more effective offerings.
New Cust Ex: Suggest something that 'everyone' loves. Sites that suggest 'most popular' and 'bought most' are hoping you like what most other people like, and teeing those ideas up will resonate with you too. it doesn't hurt to have a psychological push to do what everyone else does too.
THEME #4
Coach Behavior Strategy
THEME SUMMARY
Coaching Behavior emerged predominately in the B2C marketplace and has fundamentally changed customer expectations in both B2C and B2B relationships. Panelists highlighted these key aspects:
- Early Adopters
- Eposodic to Continuous Relationship Dynamics
- Opportunities for the Financial Sector
- Cautionary Reminders
B2C companies were early adopters of Coaching Behavior strategies and have fundamentally changed the market expectations, which could be a bellwether for B2B industries.
For some industries (health, weight mgmt) coaching is no longer a differentiator but a cost of entry. Coaching needs to be more than a brand interjecting themselves into a customer's life...it must be provide viewed as true support that is appreciated and valued.
Baby product companies communicate with moms before the baby is born. Baby Center app to know what to expect during pregnancy. An interesting example of pregnancy monitoring is Ovia which is not only coaching for moms-to-be, but also providing insurance companies and employers with health data.
Coaching is a common approach within CPG food. Marketers communicate recipes and different ways to use the product. Why? CPG products have a dual challenge...they need to get into the pantry (initial sale) and out of the pantry (consumed) to drive future sales.
When Coaching Behavior is used correctly the result is a relationship that extends beyond the traditional sales cycle. The additional services create a platform approach which means you are [cont]....
Kimberly-Clark Professional: Reducing the spread of germs to reduce employee sick days is a way to encourage purchase and use of a variety of hygiene products (hand sanitizer, facial tissue, hand soap, etc). This is a metric that can easily be monitored though not typically of concern to the company's buyer.
Multi purpose products such as kitchen counter top mixer. People buy it for a particular use but reminding consumers of other applications (such as meat grinder or ice cream maker). Increased usage can increase the purchase cycle of what is traditionally an infrequent purchase.
It is important to tailor coaching to where customers are in the journey. New customers will benefit from help on how to best use the product/service where existing customers can fall into a "rut" and benefit from reminders of what is possible (e.g. additional features, services, etc.).
The financial sector provides a vast opportunity to implement Coaching Behavior strategies.
Financial Services: Ellevest will heavily leverage coaching emails based on your profile goals and needs (savings? growth? income?). They will pepper you with coaching emails to keep you on the right path. Topics range from tips on how to save more, write a budget, decide who to invest with, etc.
Insurance: Yearly policy renewals asking if anything changed. Savvy companies would mine data to learn if something did indeed change that would impact their coverage. Second, they should prompt the customer with examples of those changes and how/why that might cause coverage reconsideration.
Banks are realizing they need to better use customer data instead of just attempting to service customer needs. The realization of open banking creates a sense of urgency for deploying trusted financial advice across channels, asset levels, and price points (including free).
Benefits of the Coaching Behavior strategy can quickly be derailed if the assistance is perceived as a sales tool -- rather than an authentic approach to helping meet the customer need.
They key thing to me is curation, personalization and authenticity. Most tools I find simply become another tool or coach with a single minded focus which is their selling needs rather than my needs and supporting what I'm trying to accomplish.
Take what customers desire and deliver it with no strings attached. IMO, many times firms tend to be self-centered and focus as much (and often more) on what the company will get from the customer (more leads, more revenue, more etc.) rather than vice versa.
There is a fine line between coaching as a benefit and coaching as nuisance. The customer is more likely to embrace coaching if it directly meets their needs. Education and motivation are two benefits where coaching can help.
THEME #5
Automatic Execution Strategy
THEME SUMMARY
At the most basic level Automatic Execution is the tactical fulfillment of a customer need, completed without customer intervention. Most recently this strategy has evolved into a realization of mutual reward by providing additional benefits to the customer.
- B2B Legacy of Automatic Execution
- Transition to B2C Market
- Evolution of Mutual Reward
Automatic Execution emerged years ago in the B2B market with the emergence of outsourcing and managed services.
Outsourcing has been around forever so may be less data rich/cool than newer examples. Outsourcing companies certainly have access to data that would normally reserved just for the client resources in a non-outsourced scenario, and are expected to execute as needed to fulfill their contract.
More companies are moving to Managed Services to create predictability and defer to others with deeper competencies. This plays out in spades each and every day in IT Infrastructure, ceding the responsibility to outside parties to design, deliver, and execute within specification and price.
Remote tech support and monitoring services provide ongoing 24/7 remote tech support and monitoring, If there is a problem their systems will find and correct it (in theory) without your intervention, then advise the customer after the fact.
With the proliferation of IoT and AI technology, automatic execution transitioned from B2B into B2C providing unprecedented convenience to consumers.
A connected med tech monitoring service can identify, alert, and direct actions to avert health crises or death. You can see this working in areas like arrhythmia detection, hypertension, diabetes, and perhaps even a number of mental health situations where there are clear biometric warnings.
Refrigerators using Samsung Bixby automatically detect some of the foods you put inside. Samsung has launched a home hub which will include many in home devices along with the ability to automatically buy groceries with Instacart, browse recipes with the recipes app and even order in with GrubHub.
On Star is a great example of the customer having trust of complete data flow to the company. There are infinite random variables that On Star will respond to such as accidents, car problems, etc. The privacy yield here is huge as the owner allows all their travel patterns to be recorded.
The ultimate representation of Automatic Execution is to not only fulfill a specific need, but to establish a platform of mutual reward. For example, Neo/Challenger banks provide [cont].....
Neo Banks are reinventing the practices and processes associated with traditional banking. I've opened accounts with several Neo banks including Simple, Chime, Varo etc. No fees at all, higher savings rates, great "human" customer service and online chat, and 24/7 access.
Pill Pack puts medicines in little plastic bags labeled with days and times and supply is regularly replenished. This is great because people's medication regimens can be complicated. It also ensures a pharmacist is checking the combination and dosing.
Another area where automatic execution strategy is prevalent is in the financial services industry. Real time alerts push information from the institution to the consumer sometimes surprising the customer as these can detect unauthorized purchases, log ins and more.
Holding...
Whether commercial or personal, property management clearly represents this strategy. The customer empowers the company to watch over, care for and make decisions on what is needed. In many cases this means the company is an agent, deciding where and when something needs to be done or purchased.
On Star is a great example of the customer having trust of complete data flow to the company. There are infinite random variables that On Star will respond to such as accidents, car problems, etc. The privacy yield here is huge as the owner allows all their travel patterns to be recorded.
THEME #6
Company Transformation Using Continuous Connection Strategies
THEME SUMMARY
Implementing a Continuous Customer Connection strategy within a traditional banking entity would first involve building the case for change, then tackling the operational aspects of the project.
- External Market Review
- Internal Perceptions
- Organizational Engagement
- Tactical Implementation
Banks looking to implement Continuous Customer Connectivity can begin by looking at creative approaches adopted within the global banking sector to provide motivation for change.
Respond Desire: Polish Idea Bank has branch/coworking spaces on commuter trains (staffed w/bank employees). Any passenger can use the space while the train is moving, but priority is given to Idea Bank customers. Goal is to support small business owners by giving them a place to work from the road.
BMO Harris Bank recently opened a “Smart Branch” to combine the best of interactive technology and human advice. The branch includes video tellers to interact with customers, Smart ATMs, & on-demand video to showcase products and advice.
Coaching: In Spain, BBVA has an app feature called Bconomy, to help custs set goals, save money and track progress. The app also suggests how to save money and compares prices on things like utilities and groceries. In just 3 weeks Bconomy had 500k users.
Before diving directly into tactical implementation it is important to take a hard look at internal perceptions and dialog openly about the changes needed to re-align the organization.
Create a customer experience vision illustrating what success looks like...how we will service our customers. this should not be hindered by where we are today or perceived barriers to change. this becomes the anchor that drives where we go next.
To provide a curated experience organization structure must change. The customer sees one company and expected to be treated like everyone knows them. When they talk to a customer service rep who does not know they opened their account last week, they become frustrated.
If you don't change your filter from maximizing profit to one balanced by purpose, experience, security and profit, you can implement any continuous connection strategy you want and it will fail. Fail to be an authentic advocate and enabler for the customer, you will also fail.
Engage the services of all functions in the organization understanding that even though this is a customer-facing initiative, the back office functions will be key to success.
Many orgs are finding that that IT can actually lead in the new world of digital transformation in ways they couldn't before and are are learning from internally incubated ideas. When you can truly see IT that way, you'll have the beginnings of a transformation. The mindset shift is on all sides.
HR plays an essential role in creating a new workforce-management practices, proactively managing changes, and using analytics to plan and coordinate the redeployment and reskilling of employees. Working closely with HR from the beginning is essential.
A close partnership with IT is critical. IT designs the overall systems lifecycle, manages the rollout, supports development, and performs ongoing maintenance. A successful partnership requires early and ongoing engagement with IT through a program steering committee and governance structures.
The Respond to Desire and Curated Offering strategies focus on meeting customer needs in an efficient, frictionless, and customer-centric manner. Engaging first with these strategies would [CONT...]
Focus first on Respond to Desire with analysis of existing products and services where Customer Desire is a combination of products and services. Then Curated Offering, banking products are highly compliance-driven and cannot be changed easily, but you can always change or improve your service.
Customers now expect a quick, simplistic and seamless account opening processes (respond to desire). Customers want to open an account on "their" terms. Failure to create a frictionless experience can result in a lifetime of lost business for the bank and a frustrating memory for the customer.
Curated offer: Banks offer a broad array of services many of which the avg consumer is unaware. Rather than serve up emails and mail with the latest product why not ask the cust a series of targeted questions then provide me with a curated list of what would be most applicable and valuable to me?
After streamlining the customer experience in the first two strategies the organization will have built a solid foundation of customer-centric focus and streamlined processes. This will allow [CONT..]
I do most of my banking activities via an app. Not only does the app execute my orders (Respond Desire), but also gets pro-active (Automated Execution) warning if my credit card gets used while my smart phone is in a different place.
Employ Coaching based of FAQ's: Identify several outreach methods - direct emails, 'splash page' advertisements on banking platforms. 'Prepare for your future', "Make sure you are ready for an emergency", and so on. Msgs would not be offered for those who have plans.
Banks see where customers need help to better manage their finances. They know about late charges, bounced checks or racking up atm fees. There is an opportunity for banks to coach their clients on different options. Tough sell internally as banks make a lot of money from clients "bad" behavior.
THEME #7
Employee Preparation and Transformation
THEME SUMMARY
All of the Continuous Customer Connection strategies require a team of customer-centric employees to be successful. To quote another HBR article: “At most companies the culture remains product-focused or sales-driven, or customer centricity is considered a priority only for certain functions [cont]
- Approaching the Transformation
- Leadership Roles
- Driving Change
- Pragmatic Tools
It's critical to reframe the change - it's a transformation into a customer-centric organization, not simply a new operational model applied to legacy processes.
Inspire the why, help with how. And be in it for the long haul. Customer centricity is not a strategy, a tactic or a tool. It is fundamentally changing your organization's DNA. It's all about leadership so if it's not your forte then ensure you have partner who can coach and guide you.
Actions speak louder than words. If management funds new initiatives, executives constantly talk about it, and the business offers employees support (training, financial incentives), the chance for success increases. While it seems obvious, many management teams do not take those simple steps.
PASSION- Brands that are committed to customer centricity are passionate, and truly believe the customer comes first. They believe that without the customer, they cannot succeed in business and see the world through the customer’s eyes.
Set the stage from the top but don't create the path, create the momentum.
Fundamentally, people need to be able to: 1) connect to higher cause 2) understand where they are going (vision) 3) understand how they work together (particularly in a world where that has fundamentally changed) 4) know what they are contributing to (where they fit in the strategy).
I've seen good ideas fail and "bad ideas" succeed. It comes down to execution: the combination of culture, planning and control, purpose-driven customer obsession and stellar decision making from the Exec Team (committed to a path and aligning all things behind it).
Failures: -Initiatives that were treated as initiatives rather than "how we do business" -Initiatives aren't framed with purpose driven customer obsession -Initiatives that emphasize technology over solutions -Initiatives that replicate everyone else which creates a never ending wheel to the bottom
Engage employees in a way that provides the collective employee base the opportunity to own the specifics that drive the organization transformation.
The first job is establishing metrics that measure success and failure in new ways. Every department needs to think in terms of delivering noteworthy customer experiences. The initiation needs to come from the top down, be implemented in visible and tangible ways, and communicated across the org.
1) Outline new goals for customer centricity 2) Show examples of success 3) Challenge employees come up with new ways to accomplish the goal 4) Select the best ideas to implement 5) Put stellar employees in 'super user' positions to peer influence the rest 6) Monitor outcomes, tweak, and repeat
The most successful approach I have observed is where the employees themselves come up with the ways they can change when presented with a new goal and challenged to come up with new pathways. If simply 'shown the way' they tend not to adopt.
Examples of pragmatic, employee-driven initiatives to drive employee engagement, workforce upskilling, and maintain momentum.
IDEATING or IDEA-ATHONS: Start with subject such as customer satisfaction, pour in as many ideas as possible, empower the employees who have shared best ideas, recognize and reward them. This way employees will feel responsible and take ownership which is key to continued success.
Implementation of a Customer Board to orchestrate and comprehensively steer all company activities affecting the customer experience. As a result, company activities that influence customer experience would be reviewed and championed by this board.
AT&T's Future Ready gives employees an online portal showing open positions, salary ranges, and skills needed. Through partnerships with universities and online providers employees take classes and earn certifications. In just a few years, nearly 60,000 workers have earned those certifications.
THEME #8
Creating the Business Case for Continuous Customer Connection
THEME SUMMARY
The journey to becoming a customer-centric organization should be viewed as an overarching philosophy that is used to evaluate existing initiatives and operationalize new capabilities. Prioritizing capital and operational expenditures that enable Continuous Customer Connectivity will [cont]......
- Justification
- Initial Investment Focus
- Identifying Initiatives
- Vetting and Testing Initiatives
Continuous Customer Connection serves primarily as the conduit to facilitate future innovations that are driven by the new customer feedback processes. It should be viewed as a component of [cont]....
Ability to provide extraordinary experience: "If I asked what they wanted, they would have said a faster horse"-Henry Ford. Sometimes the justification is a step change in experience. If your gut says it will create extraordinary experience, in a world where experience matters, it's critical.
Continuous connection with customer will enable company to receive multifaceted feedback and suggestions faster than earlier. this will help company to identify areas for improvement and create initiatives for the same.
Catching up is not winning the race. They obviously can be helpful, but they are not going to create significant new customer and enterprise value. In some cases they will give the impression of succeeding while actually missing the main opportunities in the new white spaces.
Initial investments should be focused on education and staffing to ensure the organization embraces the need for change, and has the skillsets required to maintain momentum.
The unknown and typically unaccounted for cost, culture shift, skillset shift and business model shift. The people running your business today, the old way typically aren't the folks to envision the new way and in many cases don't have the needed skills.
Continuous Communication is an ongoing initiative and new ideas and aspects of connection would be included on regular basis. The key here is to ensure that the right technology backbone is created so that the deployment as well as refinement becomes easy.
Human resource cost With new processes and tools, you need training. Training is a cost. Also, to fill the talent gap you need to hire more people. In the transformation journey, human resource cost plays a significant role.
Major workstreams are focused on the customer experience and begin with envisioning what creates value from the customer perspective. These major themes spawn off individual initiatives that [cont]...
Start with purpose. Then get to customer. Major worksteam. How will you define voice of customer? Major worksteam. You understand your customer. What journey do you give them? What journey do you want? Major workstream.
Value-Creation Forums: Have the teams meet every 2 weeks and present short versions of their value propositions. Each team receives feedback from all present -- i.e., what is good, what needs improvement from eyes of the customer, and eyes of the investor. The teams learn and motivate each other.
Key concepts should be vetted to test the assumptions by providing a test-bed for experimentation and refining of the concept prior to wide-scale rollout.
Business Experiments bring the developed prototypes into an external environment and test the idea and its most critical assumptions with customers. Organizations get the chance to understand their idea from a market perspective in contrast to the mere internal-oriented prototyping phase.
Piloting is a savvy way to vet hypotheses, validate what is needed to maximize the impact. Leadership loves piloting as it demonstrates innovation in a thoughtful and measured way. It also provides the proof points to influence the broader organization as new initiatives require significant change.
Ideally a subset - channel, geography, or brand - that could be carved off with a smaller scope to try a continuous connection initiative. The smaller scope would help ensure a 'bite size' trial run to learn how to do this properly within your organization without attempting a full scale transition.
THEME #9
Thank you and farewell (for now)