Category Archives: How to Deliver 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.

Aligning your Business to Customers: Pillar 3 – Communication

In earlier posts we’ve focused on how important employees and products are to ensuring the business is aligned to your customers.  In this post, we’ll look at how communication helps your company align with customers.

  1. Listen and Understand the ‘Need’ – Technology companies often miss this piece.  Very ‘cool’ technology that doesn’t meet a need will not be turned into revenue.  Recognize that the ‘need’ will be different depending on the audience.  The user may need new features; the buyer may need different contractual terms.  But each of these elements (and more) makes up the total experience and must be considered.  It sometimes helps to map the customer experience from the first interaction (e.g. learning about you via billboard, website, radio jingle, etc.) to the purchase point, to the point after which they’ve made a purchase and need to receive ongoing support.
  2. Respond – I’d never advocate doing everything your customers ask (rejection is good in business) but you should respond in some way.  Some companies set up automatic mechanisms where the feedback is self-evident (for example, online voting where results are visible).  Customers know that a certain number of votes are required before an idea is considered and learn not to expect anything for unpopular (read: not profitable) ideas.
  3. Follow-Through – The most-missed step.  Your brand relies on integrity, just ask Congressman Weiner.  Your company can’t afford to agree to change and remain stagnant.  If it does, there’s no point in listening in the first place.
  4. (Optional:  Claim Credit) – Dizzy Dean is often attributed with saying “it ain’t braggin’ if you done it.”  If you listen to your customers and use their feedback to change some aspect of your company, make sure you (1) thank them and (2) point out how responsive you were.)

The pivot point is that to align your company to your customers, it must start with a commitment to listening, and then continue with a commitment to doing.  Companies that omit Step 3 become known for listening and ignoring (a shaky pillar indeed).

Don’t miss Pillar 4 – Leadership… subscribe here.

Aligning your Business to Customers: Pillar 2 – Products

If employees are the starting point for connecting businesses to customers, products come in a close second place.  For a company to have value to a customer, products must have value.

There are many ways to determine value.  Some customers value speed, some value low cost, and others value status.  Products must appeal to the targeted market.  Walmart knows it is not Nordstrom’s.

I occasionally run across companies who confuse “revenue at all costs” with “revenue at the right margin.”  What would happen, for example, if Nordstrom’s tried to appeal to a typical Walmart customer?  In order to sell anything, prices would have to come down.  Falling prices would be followed by fewer perks, say less personalized service when buying clothing.  Or perhaps Nordstrom would have to eliminate its well-known return policy.

Another case arises when the target market doesn’t place enough value on the products to support the business.  Blockbuster and Hollywood Video are finding out what happens when the products no longer meet the convenience and cost objectives of customers.  Companies like Netflix must take steps to align their products with their customers.

In short, the products and services we offer must meet a need.  Note that being trendiness is not likely a sustainable business.  Pet rocks and parachute pants had their place once.  They now belong in museums as relics of earlier times.  Sad note for engineers… cool stuff (e.g. products without a market) isn’t the answer either.

The pivot point is that products that meet customers’ needs, sold at a fair price can sustain a business.  Meanwhile, the opposite is not true: businesses cannot be sustained by products that fail to meet customer needs.  The second pillar of aligning businesses to customers is to develop/deliver products that succeed in meeting customer needs.

Don’t miss Pillar 3 – Communication… subscribe here.