Customerspectives, LLC

In tough times, commit to your customer strategy for a better bottom line

Many businesses continue to struggle in this difficult economy. It's harder, and more expensive, to acquire new customers than ever. Some companies turn the screws down on cost (a reasonable step), but few take the time to consider if they have an effective customer strategy and plan that will enhance the bottom line.

Consider that bumping your customer retention up by just 2% has the same financial impact as reducing costs by 10%. Which seems more realistic?

It's interesting that almost any truly successful company has a specific customer philosophy, but it's never the exact same philosophy. Apple, for instance, is totally committed to the product - the innovation, functionality, aesthetics, everything. It drives hiring, planning, and execution. Do they do extensive customer or market research? No, because they aren't committed to what the customer says she wants; Steve Jobs instilled the drive to figure out what the customer will want. Customer focused? Absolutely, and in a specific way.

Zappos, on the other hand is committed not to the product (it's basically a distributor), but to customer service. While a lot of companies say they're committed to customer service, the proof is in the pudding. You see Zappos' commitment not through process or lip service, but through employee engagement. It's been shown that engaged, empowered employees love doing the right thing for customers. Any company that sends its new hires through two weeks of training and then offers those folks $2,000 to walk away no questions asked, finds and creates engaged, loyal employees. And that drives incredible customer service.

So what's your core customer philosophy and strategy? If it's not obvious through the way your business walks and talks everyday, you need to start figuring it out. That's the bottom line to whether you will succeed or fail today.

There was an article in the Harvard Business Review quite a few years ago that's become something of a classic, entitled "Management Time: Who's Got The Monkey?"

The piece described a scenario wherein employees walk into a manager's office, lay a problem (or "monkey") off on the manager's back, and then stroll out again. In short, the point was that managers should delegate more effectively, which meant not allowing everyone to pass off their monkeys. Interesting metaphor, and it came to mind in a slightly different context recently when I was dealing with my bank.

I was trying to do something relatively simple (or so I thought): stop a monthly automatic debit that had been set up to automatically pay the office rent. Lease was up, no need to keep paying. Yet, I couldn't figure out how to do it online. And the kind folks on the 800 customer service line couldn't figure out how to do it, so they referred me to the e-banking service people. The e-banking rep didn't know how to do it, and sent me back to the 800 customer service line.

So here's the question: who had the monkey? It appeared to me that they weren't just passing the monkey back and forth; they were keeping it at arm's length.

Hmmm. What to do?

So I called a teller at a local branch, Sharon, who had been helpful in the past. She listened patiently to make sure she understood. Then she took the monkey. Sharon owned the issue. She took it upon herself to call the internal departments that could help stop the automatic debits. She told me what was supposed to happen, and when. Then she called me back to confirm it had happened.

That's customer service! Of course, it wasn't because of which bank I was using. It was actually in spite of the bank I was using. The only reason the right thing happened was because of a person with the right attitude. Sharon owned my issue. Sharon figured it out, and Sharon made sure it turned out right.

Think about your customers and their issues. When they bring a monkey into your store, your office, or onto your website, who's willing to take it? If you're not sure you know, there's a good chance there are a lot of monkeys jumping all over the place, and some confused, angry customers.

Cool! My book, "All Customers Are Irrational: Understanding What They Think, What They Feel, and What Keeps Them Coming Back," has been selected as the feature business books at dearreader.com, an online book club. They are featuring excerpts, so be sure to visit and sign up if you want to read some of "All Customers Are Irrational" for free.

Of course, I won't mind if you go to Amazon and purchase your own edition!

Just got back from a few fun days in Arizona with my 12 year-old son for White Sox spring training. Super fun! Bright blue skies, bright green field and a relaxed atmosphere. It's great to watch professionals up close as they go about the work of preparing for the season.

It struck me that, as these players - the very best in the world, making millions of dollars each year - work back into playing shape, it's the simple things that they focus on. Each day you see them stretching, then lobbing the ball back and forth. They hit off a tee, then start swinging at softly pitched balls. It's the stuff of little boys, and yet it's for a very specific purpose. They understand that - even if you are one of the elite - you can't walk into a real game situation and expect to hit a 90 mph slider, or throw a ball from deep left field to homeplate. Instead you start with the basics and work up to a high performance level.

So, I'm wondering, why do companies, when trying to improve performance (specifically around customer metrics), often over reach, spending thousands - even millions - on quick-fix solutions like CRM systems or training programs. Why not, instead, start with the little things. For instance, take some small steps aimed at improving employee engagement. Then incrementally increase the efforts to improve customer experience as you get your employees on board.

Major league players understand that trying to hit a home run in your first at bat of spring training will probably just lead to a pulled muscle and a stay on the disabled list. Businesses should realize the same thing.

Small things matter. And if they're done right, the small things lead to big things.

I've been working with more and more professional service firms, including investment advisors, web development agencies, and others. I'm helping them to better understand the experience they are providing for their clients, and how they can improve it to achieve specfic business goals.

What I think businesses are starting to understand is that it really doesn't matter what type of company you have: if you want to succeed in the long term, you better pay attention to the entire customer experience. What I wrote in my book, "All Customers Are Irrational," holds true for everyone: all decisions are emotional, including purchase decisions. And that doesn't change whether someone is looking at buying some new running shoes, or deciding which agency to select during an RFP process.

What about your business? Do you really know what type of experience you're providing for your customers or clients? Are you giving them the subconscious and emotional reasons (as well as the logical) for buying from (or staying with) your company?

If not, others are catching on, so you better start paying attention!