Category Archives: Customer Service

Moneyball, Metrics, and the Customer Experience

If the customer experience profession can learn one thing from Moneyball it should be that tracking the wrong metrics can be expensive and lead to the wrong result.

Moneyball, Metrics

Part of the Oakland A’s success arose because they turned away from conventionally accepted activity-focused metrics (RBI, stolen bases, and batting average) and turned towards achievement metrics (slugging and on-base percentage).

What metrics are you tracking that are misleading you into a false sense of security?  Here are a couple to get you started…

  • Mean Time to Repair and Average Speed of Answer – Many companies track trends in ASA.  The reality is that such a measure may lead to behaviors that are inconsistent with a quality customer experience and interaction (e.g. answering quickly but immediately placing a caller on hold).  What matters more is experience consistency.  So companies would be better served to achieve smaller variance around their average.  Once they tighten the bell curve, then entire experience can be improved.  First make the experience predictable.  Customers hate surprises as much as any company does.
  • Call DurationZappos put an end to the fallacy surrounding this metric.  Their philosophy was to develop customer relationships (to achieve loyalty).  By shortening call duration, they realized they were limiting the likelihood of a meaningful relationship.  A more appropriate metric would be some sort of customer satisfaction measure, like NetPromoter.  Basically, “did we meet your expectations/needs?”  Not “did we get off the phone fast enough?”  The first question addresses a customer need while the second meets a corporate need for efficiency.

The pivot point is that, like the Oakland A’s, by adopting a ruthlessly self-critical look at the metrics we track, we can improve our winning percentage while reducing payroll costs.

Occupy Wall Street (#OWS) and Customer Service

The publicity surrounding Occupy Wall Street makes me think we need our own movement in customer service.  I just don’t know where to gather (suggestions here).

Occupy Wall Street (#OWS) and Customer Service

In many ways the #OWS experience is exactly what I advocate relative to customer service.  Vote with one’s wallet.  One thing the “99%” understand… change requires action.  Sadly the same malaise that affects American voters (perhaps the 99% are upset, but few vote) wreaks havoc on consumers too.

Companies need not be obligated to deliver good service, and in fact many do not.  But those that do, reap higher rewards in the form of decreased acquisition costs, loyal customers, and higher profit/customer.  Government can’t compel good customer service.  But it shouldn’t have to either.  Customer service and corporate profit motives are not mutually exclusive.   Companies should freely deliver superior service because it improves profitability.  I have first-hand knowledge that such service can improve corporate profitability while leading to more satisfied consumers.  (Yes, the proverbial win-win.)

Rise up brothers and sisters!  The pivot point is that although we aren’t entitled to great customer service we can choose to take our business elsewhere.  Failing action in the political sphere, guilt rests with a complaisant American public.  Too many remain mute on the sidelines and too few have exercised their right to vote for too long.  In the realm of customer service, how do our actions stack up?  Or are we too guilty of failing to change when better alternatives exist?

What steps will you take to initiate change when you experience unacceptable service?  And with which company will you start?

Another Customer Secret – Wants vs. Goals

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Think about the kind of product feedback you solicit from customers.  Now think about the kind of demands your sales force routinely makes related to features/functionality.  Companies commonly end up with a laundry list of “what I want the product to do.”  Responding to these types of requests is commendable (beats ignoring them) but misses the opportunity to innovate.

secrets prevent you from achieving customer goals

Customer Goals

Customers don’t keep this secret consciously, but they rarely consider what they are trying to accomplish.  Companies would be better served to re-frame the question to focus on customer goals.  “What are you trying to accomplish?” not “what do you want?”  If the difference between these two approaches isn’t intuitive, consider an example.

Q:  Which Mercedes customers asked for:

A: None

Instead, through a combination of direct observation, one-on-one conversations, and focus groups, companies should identify what the customer is trying to accomplish (in Mercedes’ case to arrive safely at their destination).  Mercedes’ response to this goal (safety) resulted in innovative solutions which provide competitive differentiation in the market.

Most customers are happy to be asked their opinion if they think their input will provide the impetus for a change.  The pivot point to overcoming this secret is to focus on what customers are trying to accomplish.  Innovate around customer goals and you can dominate the market.