Mike Hohnen

Coaching for personal growth, change and development

customer experience

Great cultures are created with principles not rules

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Source: Netflix -https://www.slideshare.net/reed2001/culture-1798664

‘Another, customer complaint!’ thought the manager. ‘And what a stupid one at that. Some of our people just don’t get it. We will have to create a new rule for this kind of situation.’ And so he does. Up goes the memo on the information board, where it joins quite a few other new rule memos.

But rules only work when we can clearly define the situation and set clear boundaries. However, what we are looking for in our customer experience is personalisation. We want employees who are flexible in their approach and who can think on their feet. And with as few boundaries as possible… If there is one thing a customer hates, it is hard boundaries. ‘Sorry, sir that is not my section. Please ask your waiter.’

When we analyse why we create rules, it is not because we have a problem with the top performers. The top performers use their own good judgment to solve situations, which are typically also the situations that lead to praise and four-star reviews on social media. It’s the bottom 30% of the crew who need rules.

The more rules we create, the less room there is for good judgment.

The solution to the customer complaint is not to create another rule. It’s performance management, but not in the form of making a note for the yearly appraisal meeting, but here and now feedback and coaching. And, ultimately, if we have team members who don’t get it, they should not be on the team.

We can never create enough good rules to cover every situation. And even if we could, that would still not be the solution. Because top performers hate rules. What drives their engagement is autonomy, being able to use their own good judgement from situation to situation. And if you take that away, they will find somewhere else to work, a business where good judgement and personal initiative are appreciated.

But how will new employees know what good judgement looks like in our context?

This is where principles come in. Principles are the fabric of a great service culture. Principles frame what we believe around here. Principles are the foundation for our decision. Nordstrom, the US retail giant, has a very simple approach:

“Use your best judgment in all situations. There will be no additional rules.”

Southwest Airlines tell its employees: “You may do anything you are not uncomfortable doing in order to solve a passenger’s problem.”

Obviously, some people have better judgment than others. But that means that performance management is not about enforcing the rules but about helping people make better decision – and ultimately weeding out those who just don’t get it.

Get rid of the rule book and start thinking more about what  should be the guiding principles.

This spring we ran a series of blog posts around development, developing yourself and others. We have collected and edited those blog posts into a simple e-book that you can download below if you would like to explore this subject further.

Why culture is not enough to save your employee experience

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The four quadrants of the employee experience

Last week I argued that culture is an often overlooked and important part of the employee experience – and it is.

However, having a great culture is only part of the story – as we all well know, we can’t suboptimise ourselves to greatness.

A great employee experience is not about how high a fuzzy-feel-good factor you can score. It’s about sense making and meaning. Is this meaningful to me or not?

When things are meaningful, we thrive; when things become meaningless, we suffer.

When you look at it this way, it becomes clear it is not enough to make part of the employee experience pleasant. It is not about the free fruit or great lunch service. That is also important, but it’s also just another part – the same way that our culture is only a part of the whole experience.

So, if we recapitulate.

We are striving for high levels of engagement. Engagement emerges from an individual feeling of motivation, enthusiasm – call it what you like – but it is something that starts on the inside of an individual and it is influenced by the three other parts: culture, physical environment (system) and the job that we get to do (and how we are allowed to do it).

This is the very simple explanation why it is so incredibly difficult to achieve consistently high levels of engagement. If you are not hitting all the elements more or less perfectly, there is no engagement.

We can have exciting challenging jobs, but in a horrible culture that is not meaningful for very long. We can work in the loveliest of cultures, but where ‘nothing seems to really work around here’. That is also not meaningful. And, finally, we can build these beautiful work environments with lovely cultures, but everything is so controlled, right down to how I am supposed to do every little detail, and that is not meaningful either.

And, to top it off, we must, of course, mention the fourth variable – the individual. None of this works the same for everyone. Each individual has their preferences and their ideas of what is meaningful to them.

So, if you have a day where you feel frustrated that you have tried everything to create a great workplace, don’t despair! Getting it right is really hard, but if you manage to do so, the pay-off is amazing.

How is that for a meaningful challenge?

If you are interested in exploring what it takes to develop engagement you are welcome to download my free e-book here

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Your customer experience will never be better than what your employee experience was designed to deliver.

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Service Design Thinking is a fantastic toolkit for improving our customer service experiences. Mapping out customer journeys, identifying touch points and understanding different customer personas is going mainstream as everyone chases the elusive super loyal customer.

But did we get the wrong end of the stick?

Let just backtrack for a moment and ask ourselves the fundamental question: why are we so focused on the ‘experience’?

Because in order for something to qualify as service, it has to fulfill two criteria.

It needs to deliver a certain result and there needs to be a positive experience.

If you walk into your favourite coffee shop and they serve you a horrible wishy-washy cup of latte, the setting may be nice and the lady may be ultra friendly but your basic result was not delivered.

Or the other way round.

The coffee is great, but the place is filthy and noisy, the lady is rude. The result was delivered but the experience was horrible. You could just as well have made that cup of coffee at home and saved yourself quite a few bucks. When you opted for going to the coffee shop, you were looking for a service, not just a product.

Ok so far so good. Sometimes it can be sobering to get back to basics.

So assuming that you know how to deliver the result part of whatever service you offer,  let’s examine the experience part. As Seth Godin says, customer service is all about changing feelings. Experiences are emotions in action. No emotions, no experience. How was your train commute to work today compared with the same day last year? Ehhh?? Most probably you can’t remember because if it was just the way it always is, there was no emotion. You have not stored it in your memory as ‘an experience’ (Technically everything is an experience but we only retain in our memory the positive and the negative ones, the rest is auto-deleted).

“The only purpose of customer service is to change feelings.”
– Seth Godin

So as you look at your customer journey and map out the touch points, it’s a good idea to also map the emotional highs and lows. You can start out by estimating them but eventually, you will need to research and confirm your assumptions.

Let’s map a simplified example of a customer journey most of us can relate to, the airport check in: Arrive at airport, check in on the touch screen, walk through security, walk to the gate, board using automated boarding card verification, greeted by stewardesses, Settle into a seat.

What are the potential emotional highs and lows that we could work on to ensure that we maximise the experience? The touch screen provides no emotion unless it is not working, so it is just a negative risk. Walking the hallways can at best be neutralised by making the walk pleasant on the eye and informative. Boarding card verification is again automated. The automated or physical parts of the journey we can work on to eliminate negative emotions but they are hard to turn into over the top emotionally positive experiences.

The the two touch points that have the potential to provide emotional highs are the security check and the welcome onboard greeting by the hostess. The critical variable in achieving this is obviously the human being involved in these two touch points. The customer experiences are in their hands and totally dependent on how they feel (Technically we call that engagement, but that is actually just a fancy word for their feelings toward the job.) If they feel anything less than enthusiastic, they will deliver the minimum required to keep the job.

But, you may say,  we give them a service manual and they get the onboarding service course, they know what they are supposed to do. Yes, they know, but knowing and doing is not the same thing.  They will do or not do depending on how they feel.

In order to understand what drives their emotions, we need to map their employee experience. What is it like to be an airport security agent or a flight attendant? How does their employee journey unfold on a daily basis? What are the emotional highs and lows? Do we know and what can we do to maximise the highs and eliminate or neutralise the lows? (In a Service Profit Chain context, we would call this improving internal quality.)

If you are really serious about delivering best in class customer experiences, you need to start at the other end and look at what kind of employee experience you are providing that is your foundation.  Great service design pasted on top of mediocre employee experiences is like trying to paint over the rust spot on a used car.

You can download the Dream Team Checklist below and benchmark yourself!

 

 

How do you achieve the best value fit: Inside out or outside in?

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Everywhere you look, every ‘expert’  on service is telling you that the name of the game is to provide values. And that is true. No value, no business. Everytime you see a high profile brand or product tanks and disappears from the horizon, just think Nokia, Polaroid Kodak, it is basically because they lost it. From the customer perspective, they were no longer providing values.

In the drawing above, the square box represents the company’s offering. It is deliberately drawn as a square to illustrate that we often fall into the trap of having a set solution, a basic service package, our way of doing it. The polygon illustrates the uneven, ever-changing needs of our customers. So, when we overlay what we offer with what they need, we get three zones. The overlap represents the fit (A) where we meet customer needs. The better the fit, the more values we are providing. B is the part of our offering that we charge for, but what the customer does not actually need. And C is the money left lying on the table, in the sense that this is what the customer would really like, but they cannot find it with us and, therefore, either go without it (frustration) or source it from someone else.

Market leaders in a given segment easily get wrapped up in the beauties and benefits of their own products. When they do, the value fit shrinks.

Typically what happens is that they drift slowly from being the customer-centric companies that they were when they were created, and  as a result of over-focus on their own attributes and brilliance, they gradually become more and more product-centric.

This is the danger that lies in the asymmetry that is at the core of the service purchase. What the customer purchases is not what the supplier thinks he is selling. When we forget that, we get lost.

In order to avoid that, we need to understand the the crucial difference between an inside-out and outside-in  customer strategy

Basically you have three options:

  1. I stay behind my own walls, convinced that what I do is great. Great service, great product. It is so great that the world will always beat a path to my door, as they have done in the past. Those who are not here with me must be idiots.As a consequence, I become a hostage of my own past patterns. I look at and understand the world through a filter that is primarily composed of what has worked previously, not realising at all that none of the tomorrow’s problems will be solved with yesterday’s solutions.
  1. I venture to my window from time to time to look out and observe the world. Still, from the security of my own tower, I shake my head at what is going on out there and thank the Lord that I have the right solution. I may feel some concerns, or even frustrations, that out there “they” don’t get it. Maybe I should start thinking of ways to make them listen and understand, possibly turn up the advertising, or make more noise. Or maybe I should start by sending out a survey. I delude myself that I have understood the world by looking out the window.
  1. I leave the security of my tower. I stand next to my customers and together we look at what it is that I am offering. I even try to walk in their shoes for a while and gradually I start to understand what it really means to be in their place. It scares the living daylight out of me to suddenly be in such a vulnerable position.

Only option three will enable you to maximise the value fit.

That is is why the whole philosophy of Service Design Thinking is so important. This is the toolbox that will help you transition from inside out to outside in thinking in your organisation.

 

The real key to creating the eternally fantastic experience

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The Kano model teaches us that a service experience has 3 layers. There are basic attributes that need to be in place and that all services in a given category need to have to even qualify as a service. Then there are the performance features, attributes that define the better experience from the very basic experiences.  And finally, there is a category of attributes that we call delighters. Things that make our most loyal customers come back again and again. Not only do they come back, they also tell all their friends.

But as we saw in my previous blog post, the trouble with delighter is that they have a tendency to fade over time.   There is this notion of drift. Free high-speed internet in a cafe is a great example of this. So this puts all service providers under pressure to constantly innovate. They need to come up with new ways to delight their audience or risk fading into oblivion.

But there is actually another way to do it. There is one type of delighter that somehow never goes stale, that always stays fresh, and that is incredibly difficult for your competition to copy.

The key to understating this is likability.

Think about your own patterns. There are some services that you’re frequent not because of their physical attributes or technical specifications. You may even visit these services despite them not being quite up to par on some of these physical attributes. But there is one or often a whole crew of people that you find likeable. When I lived in Cape Town, we often used to go to Roberto’s. It was not the smartest cafe in town. It was also not the most elaborate culinary experience. But Roberto’s had one thing none of the smart cafes could match; there was Roberto and Roberto was immensely likable. Ah, you may be thinking, but that is a question of DNA, the Italians, the Greeks they know how to do to that, the rest of us don’t have those genes.

Not true.

As Rohit Bhargava explains in his lovely book Likeonomics, research has made the secret available. We know the components of likability and we can apply them to our own way of working and when can train our crew to practice these principles as well.

The key ingredients are: Truth, Relevance, Unselfishness, Simplicity, and Timing.

– Truth: you trust them. When the waiter says the special today is delicious, you know he would not say it if he did not actually mean it. He knows you and when he says you won’t enjoy that wine, you are so grateful

– Relevance: The service provider is not trying to upsell you like a robot (I so hate that expression “upsell”).  They make relevant suggestions that actually enhance your experience.

– Unselfishness: They go out of their way no matter what to make sure that you have a great time, even if it is not always the most convenient for them. A hotel where I have conducted workshops recently has two crews working the restaurant. One crew always sets the lunch table for my group in the window area where there is a pleasant view and lots of light. But it is the furthest from the kitchen. The other crew always sets the lunch table at the other end of the restaurant, not nearly as nice.  But it’s closer to the kitchen. One crew is likeable, the other one much less so. It comes through in all the little details of how they work because likeable is also an attitude.

– Simplicity.  As my vegetarian chef friend says to create a great salad, use only three ingredients; that is what makes it delicious and elegant.  As opposed to the salads where they dump the whole fridge into your salad bowl, they mean well I know, but…

– Timing:  The person servicing you understands empathy. They are aware of what is going on for you and they adapt their service delivery to suit you.  They understand the difference between coming in for dinner before a movie and coming in for dinner to celebrate your spouse’s birthday. And that is all about timing.

Now think again about some of those service experiences that you keep returning to again and again. I will bet you that it is because they are likeable.

And if you can implement these basic ingredients into your service experience, you have discovered the Holy Grail of delivering fantastic service experiences.   The concept is simple. The execution is what makes it hard.

Check out the book: Likeonomics: The Unexpected Truth Behind Earning Trust, Influencing Behavior, and Inspiring Action

If you are not familiar with the intricacies of the Service Profit Chain, we have a special treat for you:

You can download Mike’s book Best! No need to be cheap if … for FREE using this coupon 8WG55DP7C3. This is only available for a limited number of 30 people so first come first serve!

Download the book now!

The paradox of becoming a perennial service experience

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I spotted at least 10-15 new restaurants, cafes and other food related concepts on my walk downtown yesterday. I love the raw courage, energy and pure optimism many of these new service ventures exude.  They are brave because the reality is that by next summer, most of them will be struggling and many of them will already be gone.

And then once in a while, there is a survivor, a business idea that makes it through that first critical 2-year hurdle and becomes a viable stable business.  But that is just the first hurdle, the real test is to make it past the 5-year mark and beyond.

So what does it take?

You need to do two things equally well. On the one hand, you need to be extremely consistent in the way you deliver your product and at the same time, you need to be constantly renewing and innovating. That is the wicked paradox and that is why it is so hard to do.

One way to understand this is to use the Kano model.

Quickly explained, you could say that our goal is to reach total satisfaction, and avoid any dissatisfaction. In order to reach that goal. I will need to ‘implement something’. Certain things need to be in place.

If we stay with the simple example of the coffee shop, there are certain basics that need to be in place in order for you as a customer to even consider this a coffee shop. Tables, chairs, coffee, decent hygiene. If these basic are not there and well functioning, you would not even consider setting foot there. But that does not mean that more tables and chairs and scrubbing the floor even cleaner are going to attract even more customers.

It will take something more than just the basics.

You will need to implement attributes that we could call performance items. For a cafe to be considered a possible option for me. it would need to have high-quality coffee, friendly helpful staff, a selection of light bakery items etc..

This, of course, is individual and subjective. Now in my case, I can easily think of a dozen coffee shops that would fulfill these performance criteria. But there are a few coffee shops in town that I will actually go out of my way to visit. Not only do they get the basics right, they also fulfill my performance criteria AND they have something that delights me, a feature that I find unique and special for this place and that few others have in the same way.

But these needs are layers in order of priority. One layer builds on the next. It’s no use focusing on the delighters and neglecting the basics.

So the need for consistency is about the ‘basic’ and especially the ‘performance’ items. If they are not stable, you’ll very soon get tired of a place. If most days the coffee is great but sometimes it’s not, that is the end of that. You find somewhere that is consistent. Because the main reason we come back to a service experience is that we would like more of what we had on the previous visit. This is a fundamental customer need that we must never forget as service providers.

But at the same time, in the Kano model, there is also this notion of ‘drift’. Maybe, 6-7 years ago what really delighted you about a certain cafe was that it had free, no code high-speed internet connection (and it was one of the few that offered this in your area). Then 2-3 years ago, you started thinking of the free high-speed internet as a performance item, most of the good cafes had that. And today you probably consider that internet connection is as basic as the tables and chairs, and if it is slightly inconsistent in its performance, you will switch to a cafe that does have a stable internet connection.

So the service attributes that start out as delights, over time drift and become first performance items and then just basic. The reason for this is that customer expectation mature and competition is constantly copying the best delighters from each other.  That puts us under constant pressure to renew ourselves to continuously think up new delighters while skilfully maintaining our performance and basic attributes.

This over time becomes a delicate balancing act. What to add, what to maintain and what to let go. It can only be done successfully by being very ‘close’ to our customers. We need to fully understand why they chose us, and how their preferences are evolving!

If we are successful doing that, we achieve the nirvana of a great service concept and become perennial. My favourite example of this is the Danish Museum of Modern Art in Louisiana, it has existed for more than 50 years. There are certain things that are rock solid consistent and at the same time, they are always reinventing themselves. Brilliant!

If you are not familiar with the intricacies of the Service Profit Chain, we have a special treat for you:

You can download Mike’s book Best! No need to be cheap if … for FREE using this coupon 8WG55DP7C3. This is only available for a limited number of 30 people so first come first serve!

Download the book now!

Converting knowledge to wisdom

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“What use is it to have a bellyful of meat if one can not digest it? If it cannot transform us, if it cannot improve us and fortify us?”

Wrote Michel de Montaigne back in the 16th century in one of his many rants against a French school system that “requires you to just parrot back everything you are told”.

So how do we actually convert knowledge into leadership wisdom?

The key word here is experience, experience not as in breathtaking customer experience, but learning from experience.

Because we all agree that we learn from our experiences, or do we?

If you have ever made the same mistake twice, you will have to agree that we do not consistently learn from our experiences.

When then do you learn from your experiences?

Elementary my dear Watson: Whenever you take the time to reflect on your experiences, you make deeper learning possible.

Reflection can be a personal reflection, or it can tackle the form of a team reflection.

Our reflection can be a surface reflection:

  • What happened?
  • Which actions were taken?
  • What were the consequences that we observed?

Or we can choose to do a deep reflection:

  • What did I learn about myself through this experience?
  • What are we learning about how this team functions and handles conflict through this experience?
  • What broader issue can we see arising from this experience?

Surface reflection helps us understand past actions and behaviours. Deep reflection helps us examine underlying beliefs and assumptions.

Both are important. But even more important is to start developing a practice of reflection. Make a habit of having a regular end of day/week or month reflection session with your team. Develop a personal particle of reflection. The best way to do that is to start a journal and spend just 10-15 minutes a day noting down your answers to:

  • What has been my focus today?
  • What have I observed?
  • What am I learning?
  • What will I focus on tomorrow?

Now your are on track to convert knowledge into wisdom.

BestThis blog post is the second in a series of blog posts where Mike is exploring: Why is it important to develop not just yourself but also the people around you?

Building capacity is at the heart of the Service Profit Chain. If you are not familiar with the intricacies of the Service Profit Chain, we have a special treat for you:

For this month only, you can download Mike’s book Best! No need to be cheap if … for FREE using this coupon JLXW8P9QSE. It is only available for the first 50 people so first come first serve.

Download the book here!

What is our biggest challenge when we map our customer journeys?

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Customer Journey

The short answer to that is that we are deeply biased. Despite all our good intentions about delivering superb customer service, we time and again end up seeing the situations from our own point of view. And using that point of view, we make assumptions about what we think the customer is experiencing. But unless we actually walk in their shoes, we have no clue what they are experiencing.

I see this time and again when I give workshops that introduce Service Design to groups of service providers. In order for them to really understand what this is about, I let them try it for real. So we pretend that they are a group of city tourism planners that need to improve the tourism experience in our city. In order to do that, I let them choose a persona situation and set up their hypothesis (or assumption) for this experience.

One team of three said that navigating the Copenhagen subway is very hard if you don’t speak Danish. Another team of three had the assumption that tourists easily pick the wrong kind of restaurants and end up in the tourist traps. And other groups pick other similar situations that they felt had some problems seen from a tourist point of view. So we sent them out for a 3-hourr field study. Armed with just their iPhones, we asked them to bring back proof in the form of pictures or recorded testimonials that confirmed their basic assumption (so that we could start working on ideas for improvements).

So what happened?

None of the teams could prove their assumption to be correct, none. What they thought a tourist experience was like (here in their own home city) was nowhere near what the tourists said they experienced.

So then I had to ask them: So how many of the assumptions that you have made about how your customer experience your service do you think are accurate?

Food for thought: How can we test our own assumptions about our own service product?

The same way as we did with the tourists. We get out of the office and we observe, document and collect lots of testimonials in the actual situations (not post-experience 6-page surveys, please). With that raw data, we can now start truly talking about what we need to do to improve our various touchpoints.

If you don’t have the time or inclination to do that ground work, your next best solution is to ask a group of students (Anthropologists or service designers) and have them do the real-time observations for you.

Map out the guest journey. Record your assumptions at the critical touch points: “Our breakfast is the best in town.” or “Our meeting facilities are perfect.”; “Guests think our coffee shop has the perfect selection.” Now ask the researchers to prove you right if they can.

Don’t forget: Assumption is the mother of all f… ups.

This blog post is part of a series of answers to frequent questions that I get around the concept of the Service Profit Chain. In future’s posts, we will continue to explore other key points. If you would like the full concept served up in one go, you will find Mike’s book “Best! No need to be cheap if…” HERE.