Don't Just Observe Customer Pain Points; EXPERIENCE Them!

When I joined Staples as a young MBA graduate, I spent part of my first week working in one of the retail locations.  I worked in the checkout lane, unloaded shipments, stocked shelves, and answered customer questions.  Tom Stemberg, Staples' founder and CEO, believed that we had to walk in the shoes of our store associates and interact directly with customers to understand the business. He was right.  I was reminded of that experience when I read a recent Fast Company story by Christine de Wendel, CEO of sunday, a company that provides a payment platform to restaurants.  De Wendel insists that every employee must work a restaurant shift during the onboarding process. She explains why: 

Using our industry as an example, the restaurant space can’t be disrupted from a distance. It’s intensely human. A server manages six tables, remembers who wanted dressing on the side, tracks which kitchen orders are running late, and still needs to radiate warmth when checking on the anniversary couple at table twelve. When we ask them to adopt new technology, we’re not just changing their workflow, we’re asking them to trust us with their tips, their table turn times, and their relationship with guests.  You can’t design for that kind of stakes without understanding them viscerally.

De Wendel argues that there is a critical distinction between OBSERVING customer pain points and EXPERIENCING them yourself.  It is not sufficient to just interview users or watch them in action.  You have to live their experience, filled with its obstacles, emotions, and frustrations.  

Perhaps the most interesting point that De Wendel makes in her article is a statistic about employee turnover.  She explains, 

"Here’s what surprised me most: this policy has become one of our best retention and recruiting tools.  We’ve had a 94% retention rate among employees who complete the restaurant shift program, compared to 78% at my previous tech companies. Employees consistently rank it as one of their most valuable onboarding experiences." 

Reducing Customer Pain Points: The Savannah Bananas

My former student, Jon Huntley, and I are working on a new case study about the Savannah Bananas, the wildly successful and highly entertaining barnstorming baseball team co-founded by Jesse and Emily Cole.  The company provides a wonderful example of how to identify and alleviate pain points in the customer experience.  In his book, Banana Ball (written with Don Yaeger), Jesse explains how the Bananas sought to find and eliminate all the friction in the fan experience.  

“Here’s what I don’t understand about many businesses.  Why do they continually do the things that their customers hate? Why are people endlessly put on hold, while a message plays that tells them how ‘important’ their call is, but they do a slow burn while waiting to talk to an actual human being… and maybe they still hang up in frustration.  In the Bananas’ organization, we have a word for this – friction.  We looked at all the friction points from a baseball experience – ticket fees, price gouging on parking and concessions, as well as limited access to autographs and fan photos with their favorite players – and we did the opposite.”

Jesse Cole explains that improving the customer experience involves a focus on both macro-frictions and micro-frictions.  At the macro level, the Bananas had to overcome the perception that baseball games were too long, slow, and boring.  At the micro level, the Bananas mapped the entire customer journey, from buying tickets to arriving at the ballpark, watching the game, and returning to their cars in the parking lot.  They identified each of the frictions, or pain points, along that journey.  They are relentless about eliminating friction.  

They use several methods to identify and eliminate pain points. First, employees pose as Undercover Fans during games.  Second, senior leaders in the organization work on the front lines at times to see the processes and fan interactions up close.  Third, the organization takes photos and video of the fans throughout the ballpark to see when and why they are frustrated.  Finally, they constantly look for opportunities to transform pain points into moments of joyful entertainment.  For instance, most people hate being put on hold.  The Bananas have created such entertaining voicemail messages and hold music that fans enjoy the wait.  Many people become frustrated by the wait times in the concession areas.  The Bananas try to reduce those wait times, but they also have developed all sorts of entertainment on the concourse.  

Sounds simple, right? Why do many organizations fail to alleviate these pain points?  In my view, three main reasons exist. First, managers become too isolated from the true customer experience.  When they "experience" the customer journey, it's not real.  Employees know they are watching and inspecting, and they create a "false" process for managers. Second, managers do not empower front-line employees to eliminate those frictions.  They constrict their freedom and autonomy such that the employees feel powerless to address problems that are clear to them on the front lines.  Third, and perhaps most importantly, managers convince themselves that an amazing product should be sufficient to satisfy customers.  It's like the doctor who thinks that patients should be happy if they receive the appropriate treatment to remedy their illness, even if patients had to experience long wait times, confusing insurance forms, an array of unexplained fees, and unclear instructions about medication and other treatments.  A great product alone is not sufficient to satisfy customers.  How you deliver that product matters.  In baseball, a competitive, well-played game is far from enough to satisfy fans.  That's the key insight that the Bananas have used to transform the ballpark experience into a magical one for fans. 

Customer Experience Hits Rock Bottom

Forrester Research recently released its annual Customer Experience Index (CX Index™) rankings. The results are dismal.   The chart below shows that the index has reached a new low.  

The scores probably do not surprise shoppers who have had some poor experiences lately.  On the other hand, you might be puzzled a bit given that many company leaders talk obsessively about customer obsession.   They appear to be talking the talk, but not walking the walk.  

Why might it be so difficult to elevate customer experience?  Here are a few hypotheses:

1.  Senior executives are extremely detached from the experiences of their everyday customers.  In fact, many of these executives live very different lifestyles than their average customers.  In short, they are out of touch.

2.  High employee turnover makes it difficult to maintain consistent customer service. 

3.  Company resource allocation processes are distorted.  It's often rather simple to quantify the return on investment from initiatives intended to reduce labor costs.  It's much more difficult to quantify the ROI when it comes to projects aimed at improving the customer experience.  Thus, programs aimed at cutting expenses get funded more easily.   

4.  Metrics drive behaviors in ways that harm customer experience. For example, one of my daughters once worked at a large national coffee shop chain.  One key metric focused on the time required to serve customers in the drive-thru lane.  The manager's focus on that metric caused employees to de-emphasize service to customers who came into the shop.   Frustration ensued for customers walking up to the counter. 

5.  Young people working in many retail locations have weak interpersonal skills, in large part due to the rise of the smartphone and social media platforms. During their childhoods, as Jonathan Haidt has eloquently argued, we have seen the smartphone cause a substantial decline in vitally important in-person interaction.  They never developed key skills that come from free play, in person, with other children.  

Customer Experience: Does it End with a Bang?

HBS Working Knowledge reports on interesting new research from Professor Julian De Freitas. He has studied customer journeys, and he finds that a strong memorable moment at the end of a customer journey can help shape a very positive longlasting impression.   As I read about the research, I was reminded about an article I read some years ago regarding Ritz Carlton's legendary customer service.  At the hotel firm, employees are allowed, and even encouraged, to spend up to $2,000 to address a customer's problem.  That holds even when the issue is not the hotel chain's fault, but instead involves  a customer error.   Now, not every firm can empower its employees to spend that much money.  Most firms don't have the margins that Ritz Carlton has, nor do they have the customer lifetime value that the luxury hotel chain generates.  Thus, firms might have a much lower limit.  Still, the concept is fascinating, because it often means that a customer's experience can end with a very memorable positive moment, rather than a frustrating memory.  

Consider a family that enjoyed a terrific stay at the hotel, but then managed to lose their son's favorite toy.   No matter how great the customer service was during the visit, the family will have a negative memory associated with that vacation.  It's not the Ritz Carlton's fault, but it still is a disappointing memory that tarnishes the entire experience.  Interestingly, the $2,000 rule enabled employees to transform that disappointment into a "big bang" positive moment which left a longlasting impression.  Micah Solomon explains in this Forbes article: 

The Rescue Of Thomas The Tank Engine (And Creation Of A Customer For Life)

This summer, a family with a two year old son spent a weekend at the Ritz-Carlton’s Dove Mountain Resort outside of Tucson. As the guests were packing up to leave for the airport the mom realized her son had lost his favorite Thomas The Tank Engine toy.

She found two Ritz employees, Jessy Long and Nathan Cliff, and explained what was at stake: that this Thomas toy was her little boy’s favorite and the loss would be heartbreaking for him. Jessy and Nathan couldn’t locate the lost Thomas train anywhere, but realizing how much this mattered to the guests agreed together that something must be done. After the guests left the property for their flight home, Jessy and Nathan drove to a toy store and purchased an absolute dead ringer of the original train for the little boy.

Then, they composed a note in longhand to the boy–in the voice of Thomas The Tank Engine himself –telling a sweet tale about the extended vacation Thomas had taken after being accidentally left behind. The account included adorable pictures (see above) of Thomas exploring the property, cooking in the Ritz-Carlton kitchen, and more. Four days after the disappearance of Thomas, he arrived by mail to a family that was, understandably, blown away, and that has shared the story at every chance they can find on Facebook and elsewhere, proclaiming that “The Ritz has earned our business for years to come!

Your Next Customer Could Be Your Mom

Source:  stockvault.net

I read an intriguing story in Fortune recently about Carvana, the company that has re-envisioned the new used-car buying experience. The article, by Nicole Gull McElroy, focuses on the organizational culture.   McElroy describes the core principles at the heart of Carvana's organizational philosophy. One principle proves to be particularly compelling. It's so powerful because it's so simple: treat every customer like your mother.  Why is this principle so effective at communicating the organization's values and philosophy?  It clearly guides employee behavior.  They don't need much explanation, or even guidance from senior management.  They can apply this criteria independently in any decision they make.  Would I act in this manner if my mother was buying this car?  McElroy explains:

This growth story, say the Carvana founders, is rooted in a single concept to which nearly every human can relate: Your next customer could be your mom. And that’s what Rachel Haynes, a customer advocate, was shooting for when in May 2020 she managed the sale of a BMW to one Texas husband as a Mother’s Day surprise for his wife, who had recently beat cancer. Haynes surprised the couple on delivery day, filling the back seat of the car with balloons, signs of congratulations, and a gift basket stocked with a blanket she crocheted, a bottle of Champagne, and a Starbucks gift card. No one asked her to do that; it isn’t in her job description and had no bearing on a commission check (Carvana doesn’t offer any to begin with).

“We said it from an early stage: We’ll take the best person with the best skill set every time,” says Keeton. “No expert is worth a ding to our culture.” That constant focus on culture is why, he says, anecdotes like that aren’t outliers at Carvana. Envisioning your mom on the receiving end of a sale is one of the company’s seven guiding principles. The remainder: We’re all in this together; there are no sidelines; be brave; zag forward; stay scrappy; and don’t be a Richard. (That last one is a tweaked version of, ahem, don’t be a word that rhymes with sick.  

Look Closely at the Outliers in Your Data

Kellogg Insight has written an article about the research conducted by Joel Shapiro, Clinical Associate Professor and Executive Director for the Program on Data Analytics.   Shapiro has some terrific advice for data scientists attempting to discover opportunities for improving the customer experience.  He recommends avoiding the usual practice of "scrubbing the data" of outliers.  Instead, he advocates mining those outliers for interesting insights about consumer needs and pain points.  Here's an excerpt from the article: 

“The mere presence of outliers in customer experience data means that really good or bad things can happen to customers,” says Shapiro. “Maybe you can move that [experience] toward something that either increases the number of positive experiences or doesn’t detract from them.”  When data scientists come across an outlier, their first inclination may be to discard it in favor of “cleaning” or “smoothing out” the data. After all, the data might have been entered incorrectly or appear as the result of a modeling error. Or it may represent a freak accident—a set of circumstances unlikely to replicate itself. Why waste time accounting for the easily discountable?  Resist that urge, Shapiro says. It is always worth examining why the outlier occurred.

Shapiro's point actually connects quite well with a technique employed by design thinking experts as they conduct qualitative/ethnographic research.   Design thinkers do not simply interview and observe "average/typical users."  They look for "extreme users" - people who out of the mainstream.  Perhaps, if you were studying a project on grocery stores, you might study someone who buys fresh food daily at the store, and prepares home-cooked meals for his or her large family each day.   At the same time, you might study a few individuals who never cook for themselves, and how rarely buy food at the grocery store because they eat out on a regular basis.   In the end, you are not designing a new product or service for these extreme users.  Instead, you are using these extreme users/outliers to gain insight and inspiration.  

How do we value things?

NYU Professor Adam Alter wrote an article for The New Yorker recently, in which he examined why we often do not value things properly.  He tells the story of how an elderly man tried to sell eight spray-painted canvasses in Central Park on a recent weekend.  The canvases were painted by a highly accomplished British artiest, who had sold two of pieces for more than $3 million several years ago.  Yet, on this Saturday, the elderly man selling these pieces on Banksy's behalf could not command very high prices.   In fact, the art was worth more than $225,000, yet he collected only $420.   Wow.  What an amazing disparity!  Why?  Alter argues that, 

"Beer and art share an awkwardly named property: they’re “inherently inevaluable.” Some concepts are easy to evaluate without a reference standard. You don’t need a yardstick, for example, when deciding whether you’re well-rested or exhausted, or hot or cold, because those states are “inherently evaluable”—they’re easy to measure in absolute terms because we have sensitive biological mechanisms that respond when our bodies demand rest, or when the temperature rises far above or falls far below seventy-two degrees. Everyone agrees that three days is too long a period without sleep, but art works satisfy far too abstract a need to attract a universal valuation."

In these situations where products are "inherently inevaluable," we look to certain cues to try to ascertain the value of an item.  Unfortunately, we pay attention to all the wrong cues.  Is the product sold at a fancy hotel or a cramped restaurant with outdated furniture and decor?   Is the product sold by someone in a fancy suit or a shabby t-shirt and jeans?   As Alter says, " We’re swayed by all the wrong cues, and our valuation estimates are correspondingly incoherent."   Think for a second about the types of products that you buy that may not be easy to value.  What cues command your attention?  Now, think about the products your firm sells.  What cues do you present the customer?  Are they helping to increase or decrease the perceived value of that product?

Disney MagicBands: This Could be Magical... and Expensive!

Source: Fast Company

Disney has used RFID technology to develop MagicBands - a wristband that serve as a guest's theme park ticket, hotel key, and payment system throughout DisneyWorld.   When I read about this project at Fast Company's website, I thought to myself... "These MagicBands could be REALLY expensive for parents."  It's going to make spending money that much easier.  I speak from firsthand experience.  We just stayed at DisneyWorld's Contemporary Resort a few weeks ago.   The cards you receive upon check-in serve as hotel room keys and park tickets, and they can be used to pay for food and gifts throughout the parks.  I found myself a bit less hesitant about spending money with that card in hand, as opposed to having to pull cash out each time we bought something.  However, as Fast Company writer Mark Wilson points out, these new MagicBands offer more than a way to dig deeper into customer wallets.  Here's an excerpt:

But the cashflow aspect is only one aspect of Disney’s new service. When you begin to consider the potential of wearing a wireless ID around your wrist, all sorts of natural, customized interactions will become possible. Imagine a child meeting Mickey Mouse, and after sharing a warm hug, Mickey actually wishing them a happy birthday by name. There’s a digital handshake going on here, of course, but it’s totally imperceptible. All a child is left wondering is, “How did Mickey know me … and that it was my birthday?!?” Animatronics will see a similar personalization, so the otherwise obtuse talking robots can specifically acknowledge the people standing in front of them.  At the same time, MagicBands enable a deeper level of data collection for Disney. They’ll be able to track someone through the entire park--to see their kingdom as a complex interaction model--finding trends in preferences and habits that can no doubt be monetized. Do people who meet Cinderella buy more princess apparel? Do those who eat the cheese fries for lunch go back to the hotel to take naps?

Talk about Big Data and Personalization all wrapped up into one incredible initiative!   Immediately, one thinks about privacy issues, but Wilson points out that parents will be able to establish some privacy controls on the wristbands.   The bigger issue is how Disney uses the wristbands.  I think that the real opportunity here lies in focusing first on enhancing the guest experience.  If this new tool can make the guests enjoy their stay even more, then the money will follow.  People will spend more if they are more engaged and more satisfied with the experience, and if the wristbands can be used to minimize some of the guest's typical problems at the park (consider how mobile apps have helped people find rides with the shortest wait times).   If the experience is enhanced, guests will stay longer at the park, interact with characters and exhibits in a more meaningful way, and avoid some of the frustrations that they typically encounter at the park.  When that occurs, the improved profits will come.

Learning from Improv

Russ Meyer has a great article on the Fast Company website.  Meyer offers some solid recommendations for how companies should go about trying to design better customer experiences.  For instance, imagine that you are trying to provide a better after-sale service experience for your customer, or you are trying to redesign the check-out process in your retail store.  Meyer draws on the lessons of Improv comedy to offer his advice to you in these types of efforts.   For starters, he argues:

"In improv, this means don’t disregard premise, no matter how outrageous... In experience design, you can’t start by denying what could be: 'We can’t change the check-in process because...,' for instance. For a great new customer experience to come to life, it will have to break some of the conventions of the current experience. Make sure you’re open, especially at the beginning of a process, to accept what may be an outrageous premise or idea."

Meyer also argues that "thoughtful watching" should be the approach one takes toward discovering a better customer experience.  In Improv, people concentrate intensely on what others are saying, and they listen actively.  Meyer explains, "Sitting back, watching, listening and concentrating on how people are presently experiencing the brand (while leaving yourself open to the outrageous) can identify moments where the experience could be improved."   Similarly, I've argued that systematic observations of customers and front-line employees yield powerful insights regarding your firm's problems and deficiencies, as well as how to improve in the future.