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There’s a Better Way to Create a Good Customer Experience

ECEW

We’re just back from the excellent two-day European Customer Experience Event where folks from Zappos and Harley-Davidson talked about how they build their ‘wow’ experience.

It’s our first time there and, to be honest, not the usual beat for us. But it should be – both for us and the insight community in general. Researchers who do anything related to loyalty or customer service should be attending this type of event because they get to meet the folks who actually put their work into practice – customer experience and service heads from major organisations, public and private.

We’ll blog more with some things that caught our eye. But first, in what’s becoming a tradition, here’s a wrap-up chat with three fellow delegates in which we talk highlights, learnings, customer experience in the public sector, digital natives vs. immigrants, behavioural economics, engendering loyalty by charging people (!), transparency and authenticity, convergence, and improvements for next year. Enjoy!

STARRING:

 
 Standard Podcast [14:21m]: Play Now | Play in Popup | Download

Building Strong Cultures: Zappos and Harley-Davidson

Alfred Lin, Zappos: “Being a company that other people want to work for is a very, very big thing. It’s getting harder and harder to recruit good talent. And you need good talent to attract good customers.”

 

ECEW

European Customer Experience World event

 

 

Alfred Lin, ZapposA lot of folks are drinking the Zappos kool-aid these days. And it’s easy to see why. Because every now and then you come across a company that’s so contrarian in its thinking and execution that it leaves most observers bewildered. Before it was Google with quirky initiatives such as 20% time, something we now know powers its innovation funnel.

Online retailer Zappos is the latest purveyor of contrarian thinking, all in the pursuit of its happiness business model. For example, staff can spend six minutes or six hours on the phone with a single customer – there’s never any pressure to hit productivity quotas. New staff are paid to leave to gauge their commitment. And customers can return shoes up to a year after purchase, postage free, for a full refund. The list goes on.

The result? Booming sales – a couple years ago they broke the $1bn mark. And they were recently acquired by Amazon for – insert Dr. Evil voice – one billion dollars!

Markus Kramer, Harley-DavidsonHarley-Davidson needs no introduction. It’s an iconic brand that, unlike Zappos, has been around for decades. And for many of us it conjures up distinct emotions such as freedom even if we’ve never experienced their products.

So, why are we telling you all this? Because you’ll learn more about how these companies are building strong cultures which drive profitability in the short podcast below (15 mins). It’s a discussion with the COO of Zappos and a senior marketer from Harley-Davidson, both of whom will be speaking at the upcoming European Customer Experience World event in May – check out the website for tickets and details.

Dean van LeeuwenKindly hosted by Dean van Leeuwen, TomorrowToday’s intellectual adventurer and scholar of the new world of work. He focuses on customer loyalty and talent engagement.

In the chat we learn about…

  • The genesis of Zappos quirkiness
  • How Harley-Davidson is managing to stay relevant today
  • Whether the ‘humanizing the organisation’ movement has staying power
  • Examples of initiatives to build a sustainable culture of positive experiences/behavioural economics
  • The evidence that these deliver topline and bottom-line results

STARRING:

Music by Amber Ojeda.

 
 Standard Podcast [15:11m]: Play Now | Play in Popup | Download

You’re Only as Strong as Your Weakest Link. Or are You?

For control freaks like Apple, partnerships must be really frustrating. Famous for wanting to control every aspect of their product – hardware and software – plus sales, service etc., the torrid iPhone experience over the last 24 hours must have sent Steve Jobs fuming to say the least. It’s not absolutely clear who is to blame, but the guns are pointing at Apple’s partner, AT&T (and other carriers overseas).

So even though many decry Apple for being a relatively closed platform, the events of the last 24 hours may have brought some people round to Apple’s way of thinking, or at least made them more sympathetic.

But the reality is that partnerships in most sectors are an increasing necessity. As markets mature, product life cycles and development lead times shrink in today’s ever competitive landscape, organisations have to pair up to provide services they couldn’t do themselves, or at least not cost/time effectively.

Apple clearly sees the mobile market as a crucial one. So would it make sense for them to become a mobile carrier to control the experience end-to-end? Well, that would seem overkill. The bad experience involves activation, the general experience using AT&T and other carriers doesn’t seem to be a particularly big issue (or is it?). Apple is not in the pipes business, so why worry about the mobile pipes if it doesn’t worry too much about the fixed broadband pipes?

So, this got us thinking. As the title of this post conjectures, is the Apple/iPhone brand damaged by having a partner that is a weaker link in the brand experience chain? Anecdotal evidence from people being interviewed outside Apple/AT&T stores would seem to suggest (a) many folks attributed the blame to AT&T, and (b) the diehards waiting in line, sometimes for hours, love the iPhone so much that hurricanes probably wouldn’t have stopped them. And although mainstream news covered the travails, we can’t really see it denting iPhone desirability or demand.

But then you wonder, did Apple anticipate this beforehand and decide to accept the consequences because to have improved it (the back-end systems supporting activation) significantly may have cost too much or been too much hassle? Was there a trade-off?

We are, of course, drawing a parallel here with the BAA/BA fiasco a few months ago at Heathrow’s Terminal 5, where some believe BA may have skimped on the staff training to try to save a bit of money. If that were true, it would have been a spectacular own goal given how much it’s cost BA in compensation and negative publicity, not to mention the senior heads that rolled.

Conspiracy theories aside, it seems we need a clearer way of showing senior decision-makers the short and long-term costs of making key decisions like those discussed above. Because just as environmental costs are starting to be factored into the price of goods, businesses need to be aware of the full hinterland affected by the occassional short-sighted decision.

Series:AdTalk
Series:MarketingTalk

Patrick Barwise – Building the ‘Simply Better’ Biz

The fact that companies like Toyota and Tesco and Proctor & Gamble in many of its categories have shown that you can in fact keep improving delivery on the basics, shows that it’s not just a commodity…
(Patrick Barwise)

Simply Better bookProf. Patrick BarwiseThe renowned marketing Professor Patrick Barwise is a relatively rare animal, an academic with commercial instinct and pragmatism. Here he talks to Michael Warren about the ramifications of his two most recent books, ‘Simply Better’ (which won the American Marketing Association’s 2005 prize for the best recent book in marketing), and one that he is currently writing with the working title: ‘Customer Insights – Beyond Market Research’. His ability to cut through marketing myths, hype and meaningless jargon using solid reasoning reinforces his position as one of the industry’s most valued thought-leaders

Listen to other podcasts featuring Patrick

 STARRING 

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 Standard Podcast [16:21m]: Play Now | Play in Popup | Download

What’s Hot in Branding

 Sponsored by BrainJuicer
Peter WalsheRob HoldawayOur team of brand specialists tell us what’s hot in branding, why they love the iPod brand, and why staff need to live the brand and product experience to maximise brand effectiveness. Markets mentioned: drinks, electronics, financial, Internet, retail, social media, telecoms

 STARRING 

This JuiceCast has been produced by ResearchTalk for BrainJuicer. BrainJuicer’s Chief Juicer, John Kearon, has kindly allowed us to host the podcast as a service to the community, to stimulate debate and innovation

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 Standard Podcast [15:36m]: Play Now | Play in Popup | Download

First Direct and Customer Service

Matthew Higgins, First DirectHow does First Direct manage to consistently excel on customer service? Does it offer different levels of service depending on customer value? Does it hold aspirations to extend it’s brand beyond finance? What prospects lie ahead?

 STARRING 

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 Standard Podcast [25:48m]: Play Now | Play in Popup | Download

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