Kustomer’s Look Back at 2020

Kustomer’s Look Back at 2020 TW

I would say that 2020 has been unprecedented, but let’s face it — we all want to permanently retire that word. From both a personal and professional perspective, it is undeniable that the past year has brought immense challenges, and you wouldn’t be alone to wish it was all just a fever dream.

While we are literally counting down the seconds until the clock strikes midnight on January 1st, 2021, it goes without saying that there are some permanent lessons that can be learned from the hurdles we faced in 2020. It was a year of success for Kustomer, with immense product developments, award wins and acquisitions, but customer service was also more important than ever before.

Without further ado, here is Kustomer’s look back at 2020.

Lessons From a Challenging Year

Many organizations are struggling to understand when they’ll go back to “business as usual”. And the fact of the matter is, they likely never will. The new way of working that 2020 forced upon CX teams will have lingering effects, and consumers are now used to doing business in a whole new way.

Changing Consumer Attitudes Means More Digital Commerce

While it is inevitable that commerce will partially shift back to brick and mortar once things go back to “normal”, there is now a massive new pool of consumers that are comfortable shopping online, and you can expect this increased volume of e-commerce and digital inquiries to continue. Consumers that perhaps would walk into a store to ask a question, or call a customer service number for assistance, now may find it more convenient to click on a chat widget while they browse your site online, or reach out to you on social after seeing your ads.

In fact, according to recent consumer research conducted by Kustomer, live chat continues to grow in popularity with consumers, now ranking as the second most popular channel to get customer service problems solved. Consumers are also more open to self-service options, with 53% of consumers preferring to self-serve versus speaking with a company representative. The same percentage of consumers also think that chatbots improve the customer experience, with that cohort growing to 62% among consumers aged 18-24. It’s therefore important to consider new, digital-first service options for 2021 and beyond.

Speed and Efficiency Beat All

Many CX teams were forced to do more with less during the global pandemic. An unfortunate result of forced closures meant that the economy shot into a depression, and organizations needed to be scrappier than ever. Kustomer research revealed that 63% of CX organizations needed to cut costs during the global pandemic, and 46% reported a need to reduce staff. At the same time, the volume of customer inquiries was rising (by 17% on average), and 57% reported needing to deal with more complex problems than usual. Sixty-four percent of respondents reported an urgency for more efficiency, and 59% reported the need to adopt more automation to achieve efficiency.

While it is true that some organizations have seen digital inquiries somewhat normalize after a spike earlier in the year, the pandemic has revealed significant gaps in CX strategies. What seemed like a nonurgent need—adopting new technology to increase efficiency—is now staring CX organizations directly in the face and preventing them from being successful. Whether it’s a similar unthinkable event that shakes the economy to its core, or simply a busy holiday shopping season overwhelming agents, organizations must be prepared to scale efficiently, at lightning speed.

Customers Are People Too

As AI and automation take on more of the busy work in the CX space, and more consumers shift to online vs. in-store shopping, customer service agents will take on a much more important — and challenging — role. They will become the face of the company, reflecting it’s values and building lifelong relationships. Think of all of the DTC disruptor brands with cult-like followings— yes they have chic branding, but they’ve also built a community of advocates based on how they treat (and value) their customer base. We could all take a page out of their book.

To personalize a customer’s experience, you have to know the customer—and that requires data. A platform that brings all the data about a customer into one place helps customer service agents understand the context of a customer’s conversations and enables them to deliver more efficient, proactive and relevant service. There’s no need to waste the customer’s or agent’s time by asking for repeat information. Instead, that information is available at the click of a button, allowing the agent to personalize the customer’s experience by giving fine-tuned advice, addressing problems proactively, and suggesting other products or services the customer might enjoy. The result? An efficient but personal interaction that builds a lifelong customer relationship.

Kustomer’s 2020 in Review

This wasn’t just an important year for the customer service space, it was also a momentous year for Kustomer as an organization.

January – Kustomer kicked off the year at NRF, where we not only rubbed (pre-COVID) elbows with CX retail experts, but also learned about the importance of delivering an exceptional experience to create customers for life.

February – Kustomer launched our first ever podcast — Customer Service Secrets — to help leaders transform their customer service, with practical information from thought leaders and practitioners who share their secrets to delivering exceptional customer service.

March – COVID-19 transformed business as we know it in March 2020, and as a result Kustomer began offering our Unlimited Package to customers for free, to enable seamless cross-functional communication and dynamic team oversight in a remote environment.

April – In April Kustomer officially launched Kustomer IQ, the artificial intelligence engine embedded across the Kustomer CRM platform. Kustomer IQ leverages advanced artificial intelligence to help agents more efficiently analyze and take action on customer requests, which was even more impactful during a time when agents were being asked to do more with less.

May – Kustomer kept the momentum going in May by acquiring Reply.ai — a top-rated customer service automation company — and began offering enhanced chatbot and deflection capabilities in the Kustomer platform.

June – For the first time, Kustomer was recognized in the Gartner Magic Quadrant for the CRM Customer Engagement Center. We believe this recognition underscores Kustomer’s important role in the space, where we are paving the way for the next generation of customer service CRM, driving intelligent and scalable experiences.

July – In July, Kustomer kicked off a new and exciting partnership, after being selected as the only enterprise customer service CRM platform in the Shopify Plus Certified App Program. Our enhanced integration with Shopify Plus helps brands and customer service agents optimize and personalize their experience, all within the Kustomer platform.

August – Kustomer was honored to be named the fastest growing SaaS company by SaaS magazine. Driven by the move to digital-only experiences, changing consumer behavior, and demand for omnichannel service, businesses in many industries turned to Kustomer in record numbers in 2020.

September – Kustomer released powerful new consumer research in September, breaking down what modern consumers expect from the customer experience. The research revealed that consumers rank customer service as the second most important attribute they consider when shopping, right below price, speaking to the importance of delivering on consumer expectations.

October – While we couldn’t get together in person, that didn’t stop Kustomer from hosting our premiere event of the year — Kustomer NOW. Attendees were able to gather insights from the brightest minds in the CX space, like Drybar founder Alli Webb who spoke about how her business was built from the ground up with the customer experience in mind.

November – In November we took the next step in the “Kustomer Journey” and announced that we signed an agreement to be acquired by Facebook subject to customary regulatory review. Once the acquisition closes, we will be able to help more people benefit from customer service that is faster, richer and available whenever and however customers need it.

December – Close on the heels of the announcement, Kustomer hosted Social Commerce Live, an action-packed, free digital event showcasing the power of social channels to build lifelong relationships with your customers. You can still watch on demand and gather insights from brands like Glossier and Bravo.

Kustomer Top Content

In case you missed it, check out some of Kustomer’s top content from the past year, where we explore break down the current state of affairs in CX:

E-Book: How to Leverage Artificial Intelligence for Competitive Customer Service
Report: What Consumers Expect From the Customer Experience
Guide: The 2021 CX Prep Guide
Webinar: How the Global Pandemic Is Affecting Customer Service Organizations
Blog Post: Top Metrics and Strategies for How to Measure Customer Service Performance


Top 5 Customer Experience Predictions For 2021

Top 5 Customer Experience Predictions For 2021 TW

Customer experience (CX) is a determining factor in whether customers are loyal to a brand or not. Over 80% of companies who prioritize customer experience report an increase in revenue. So, how can businesses ensure their CX is up to scratch?

Brands must stay on top of CX trends in 2021.

2020 brought huge changes to the business world and impacted customer service and operations across the board. Next year will undoubtedly bring even more fascinating developments. Below are five emerging trends that we predict will shape customer experience in 2021.

Remember, you heard it here first.

1. Personalized Customer Service With AI

The words “artificial intelligence” (AI) conjure images of Arnold Schwarzenegger in his iconic Terminator role, or epic Hollywood showdowns between man and antagonistic machine. But don’t worry, 2021 isn’t going to feature any giant robots wielding machine guns. At least, we hope it won’t.

It’s no secret that AI is transforming the way businesses interact with their customers. Microsoft predicts that by 2025 as many as 95% of customer interactions will be through AI.

Sales and CX teams are using business VoiP services equipped with AI to quickly address customer queries and improve their communication. The transportation industry is waiting in anticipation as automated cars threaten disruption. In finance, financial services companies leverage AI to recommend personalized products and services to individuals. It’s moving fast, and businesses need to keep up with AI developments to stay on top of their game.

AI re-imagines customer experiences and end-to-end customer journeys. The result? Improved customer experience that’s both integrated and personalized..

With AI, brands can be available to their customers at every stage of their journeys, instantaneously. Leveraging AI can help businesses better understand customers and deliver better CX, resulting in higher conversions and decreased cart abandonment.

One of the biggest customer experience trends happening right now are the challenges customer service teams are having in handling an increase in customer support calls, emails, and social media inquiries. Customer service teams can employ AI to handle low-level support issues in real time, and gather initial information for live agents before intervention is needed. This results in lower wait times and fewer frustrated customers.

In a world where a good customer experience strategy can make or break a business, AI is a great tool to ensure customers feel their time is valued and stay loyal to a business. Here are some examples of how businesses use AI to streamline CX initiatives:

  • Automated answering service for sorting and routing support
  • Automating manual tasks like tagging
  • Intelligently routing to the most appropriate agent
  • Augmented messaging that allows chatbots and human agents to work in tandem. The bots handle simple queries, and the agents can take over when it gets too complicated.

Enhanced support through call monitoring and real time suggestions for representatives.

The two major growing customer experience trends in 2021 within the AI customer service software industry are chatbots and virtual assistants. Here’s a closer look at how both technologies can automate business functions and boost CX initiatives:


Businesses in various sectors have already employed chatbots to better deliver on customer needs and improve the speed at which business can help consumers.

The chatbot market size is projected to grow from $2.6 billion in 2019 to $9.4 billion by 2024. We’ll see businesses using chatbots to cut operational costs and streamline customer service processes. They can’t completely replace humans, but chatbots can:

  • Provide instant answers to simple customer queries, 24/7
  • Collect customer data and analyze it to gain insight into customer behavior
  • Reduce pressure on customer service staff by automating low level support, allowing them to deal with more difficult inquiries
  • Increase customer engagement and conversions

Virtual Assistants

Virtual assistants allow users to interact with spoken language (Hey Alexa! Hey Google!) and help to relieve pressure on support staff by enabling interactive in-app support for users. AI virtual assistants are rising to new challenges and playing a vital role in automating customer service interactions.

As a top CX trend in 2021 and beyond, virtual assistants are set to become more customizable, contextual, and conversational.

Contrary to popular belief, virtual assistants aren’t being used to replace humans completely (Blade Runner, anyone?), but to streamline CX while freeing up human agents for important tasks.

2. The Future is an Omnichannel Approach is

A good customer experience strategy is becoming complex, with 51% of businesses using at least eight channels for CX alone.

In 2020, many businesses closed up shop and transferred themselves completely online. Many are still adapting to new strategies of providing digital customer service, as well as enhancing their CX initiatives to cater to customer expectations in a virtual space.

As CX organizations implement important customer experience trends for 2021, they need to focus on providing seamless, omnichannel CX to foster brand equity and drive sales.

Consumers demand consistent and highly personalized experiences as they interact with brands on various digital devices. For example, they might start interacting with a brand on Twitter and continue the conversation through e-mail. They’ll expect a seamless and integrated experience, no matter the platform.

A successful omnichannel CX seamlessly integrates online and offline communication channels to form a unified and unforgettable experience from the first to last point of contact.

If a customer base is interacting with a brand through phone, e-mail, live chat, social media, and SMS, as well as offline, a unified customer experience is a must.

In 2021 and beyond we’ll see more businesses further their digital transformation using instant communication to remove friction throughout the customer journey, and we’ll also see businesses tapping into customer data to personalize CX. As businesses plan their 2021 customer experience strategy, we’re likely to see big changes as brands acclimatize to an omnichannel customer service approach with increased virtual support.

3. Connecting Data to the Customer Experience in 2021

Businesses are becoming increasingly aware of the power of customer data in driving business outcomes and ROI. With customers expecting personalized, in-the-moment online experiences, the value of real-time data insights is paramount.

At present, predictive analytics helps retailers increase their margins by up to 60%. This number is set to grow as AI reaches greater capabilities.

Brands collect transactional, behavioral, and sensor data to form a customer ID that informs business goals as they move forward. This customer data is crucial to understanding what their CX does and does not get right.

Businesses are gaining deeper customer insights by collecting transactional customer data, analyzing customer behavior, segmenting personas, and more. Once all this data is collected and stored, predictive analytics can help businesses to understand how they’re succeeding or falling short of their objectives.

Businesses are using all this data about their customers to enhance the customer experience. How? By providing feedback in real-time, predicting customer needs, and identifying which customers they might lose. As a result, CX agents can satisfy their customers and prevent problems from arising.

As brands continue collecting meaningful data to build an omni-touch, real-time experience that allows customers to feel heard and understood, this will be one of the CX trends in 2021 that will continue for years to come.

4. Customer Service Goes Remote

With the recent advancements in technology, customer service and support have been able to optimize operations online. This has changed not only best practices and strategies, but also what customers expect from businesses.

This trend has a huge impact on businesses, employees, and, inadvertently, customers.

Remote working has plenty of benefits for all parties. Businesses can save significant costs on rent and technology, and hire from a more diverse talent pool. On the flip side, employees can work from anywhere (including their beds) and reduce commute time. No wonder most people who have tried remote work never want to go back!

Adapting to this shift can prove challenging. Remote working teams need to learn new methods of providing effective customer service from their homes or co-working spaces. It’s also essential that they find tactical ways to streamline project collaboration and to share information and customer data.

They’ll need to adapt to communicating in a virtual space, employ automated software to streamline operations, and find methods of staying motivated and on top of tasks.

As customer service goes remote, customer service teams will continue to face challenges when it comes to delivering an impeccable CX without setting foot in the office, but with the right technology, that allows for remote collaboration and oversight, it’s possible.

5. A Personalized Customer Experience Strategy Is Key to Success

As a top customer experience trends in 2021, we can expect businesses to customize their CX and meet customer expectations.

Today’s consumers expect personalized experiences to be tailored to their needs. Businesses need to focus on providing customers with relevant and valuable information. Customers demand proactive, valuable, and relevant outreach from CX teams, without having to share their personal information.What’s more, over 60% of consumers expect that companies send personalized offers or discounts based on items they’ve purchased.

The customer needs to feel valued and listened to throughout their journey with a business.

Nowadays, customer service teams can communicate with customers in their own digital spaces, through social media platforms like Facebook, Twitter, Whatsapp, and Instagram. Companies will likely increase efforts to contact customers through online platforms to provide order updates, offer support, or send promotions.

There are many ways businesses can continue to offer meaningful customer experience in 2021 and beyond. Make sure you know your customers’ communication preferences, and personalize the conversations and outreach you conduct. Personalized emails generate six times higher transaction rates, so stop treating your customers like strangers!

There you have it, five customer experience trends to watch out for in 2021. These trends have been driven by rapid advancements in AI and data collection, the advantages of an omni-channel approach, and the global shift towards remote work. In the future, we’re likely to see continuous developments in these areas which will continue to develop and shape CX.

Don’t get too comfortable, though. We expect that by the end of 2021 these predictions will look completely different! Let’s see what the future of CX holds, shall we?


Guest blog post written by John Allen, Director, Global SEO at RingCentral, a global UCaaS, VoIP and customer engagement strategies provider. He has over 14 years of experience and an extensive background in building and optimizing digital marketing programs. He has written for websites such as Vault and RTInsights.

Speakeasy: A Conversation Among CX Leaders

Speakeasy: A Conversation Among CX Leaders TW

We recently held an exclusive invitation-only online Speakeasy with CX executives in California. These leaders ranged from digitally-focused to family-run organizations, across all sizes and industries. The primary purpose of the event was to engage our Kustomer community to discuss complex topics during these difficult times. The conversations naturally flowed from how their businesses are handling the COVID-19 crisis, to transformation while resources are crunched, and finally their top three strategies for success.

What Is Being Done NOW

An executive began by reciting a quote from their CEO: “don’t let a good crisis go to waste.” And boy did that ring true. A key theme that kept surfacing was the importance of unifying product and CX. It’s critical to get buy-in and support from product and engineering around co-owning the CX goals. For instance, you may set a goal for the amount of CS contacts per thousand transactions, and the product team should take this information into account during development.

Several other executives stated that they had a growth problem during the pandemic. Finding the right resources to help the business scale was an issue. Others stated that their CX issues were a mixture of stagnation and scale, and they were seeking to optimize workflows to minimize the impact of furloughs. Regardless of whether the business was scaling or contracting, everyone agreed that baseline tickets were rising and removing friction between product, engineering and support was critical. A great example of this success was raised during the conversation: “How many times have you issued a support request to Netflix?” Most everyone responded: never.

Transformation While Resources Are Crunched

There is an old technology world competing with a new technology world that is now thriving. Is the old technology still relevant? Many organizations are moving towards modern technology and digital transformation.

One executive stated that they were part of the old school class of folks who thought that CX couldn’t be done from home. And yet, they transitioned their CX team to work from home in a week. Interestingly, the CX leader started the process a few weeks before COVID hit as she had a funny feeling. They configured laptops and had them out to agents who previously did not have access to laptops at all.

Another executive stated that their agents, based in London and Austin, already had laptops to successfully work from home, but 200 agents in the US needed monitors to work from multiple screens. Employees came back to the office for basic accessories like chords and power plugs. There was some hesitation about voice quality or even security using home computers, but that went away after the first week. The pandemic accelerated their business continuity plan and now challenges occur more due to kids, school and scheduling.

Many companies saw a surge in volume, so job enrichment and training had to be put on the backburner. They needed more people or more resources to get the job done. However, work from home presented some challenges around measuring metrics and understanding who can sustain remote work and who may not be up to par.

One executive stated, “I think there were people getting away with it at the office and the home office is not conducive to working. Kids are maybe getting in the way. Some folks are struggling and may not be candidates for working from home.”

Luckily, many individuals think technology can help. The CEO of one organization used to work at stodgy banks, and he doesn’t want that for his current company — he wants to be different. He wants to adopt AI and transform into a modern financial institution. Other executives stated that their companies were not as forward-looking on AI, and convincing management could often be a challenge.

Moving the Customer Experience Dial

A CX executive began the conversation by stating that moving the needle 1% is a good thing, and focusing on one single metric that does so could lead to success. In his case, it was support cost as a percentage of revenue. This metric scales because it is clear to everyone.

“If you double the revenue, you can double support costs,” he said. This metric sets a north star and ties every team back to the results. The CX group doesn’t own the code, the product or messaging, but once you touch the customer, you can take what the customer is saying back to the other departments. If a customer tells you a problem, it’s your job to take that problem to the business, and potentially increase revenue as a result.

Organic growth occurs when there is no friction. Look at a disruptive company like Netflix. You never contact Netflix support, and you don’t have friction. Everything slows down if you don’t eliminate friction.

Never Let a Good Crisis Go to Waste

It was overwhelmingly agreed that baseline tickets were rising and that it was important to remove friction between product, engineering and support. In a recent report by Kustomer, How the Pandemic is Affecting Customer Service Organizations, the data mirrors the conversations at the Speakeasy. Our study found that 79% of customer service teams have been significantly impacted by COVID-19, while only 1% reported no change at all. Of the customer service representatives surveyed, 48% observed longer wait times for their customers, 39% reported a lack of resources and 64% said they needed greater efficiencies. According to reports, inquiries are up across phone, email, web and social media channels.

In order to address this, Brad Birnbaum, Kustomer CEO, recommends leveraging technology that can “automate low level support with the help of AI.” This allows a greater number of customers to be served immediately, while freeing up agents to deal with more-complex issues — and 57% of respondents said they were seeing more of these than normal.

To reiterate a comment from one of our CX leaders, “Never let a good crisis go to waste!”

Your Top Ten Takeaways
1. Do a better job of capturing feedback and delivering to the product team
2. Build a strong product team for better customer experience
3. Reduce CX costs by 50% under the notion of do no harm to the business
4. Offer personal value-based services
5. Innovate support solutions like an effortless experience
6. Improve the bottom line AND customer satisfaction
7. Improve knowledge of the product and industry across the company
8. Hire people with industry-specific knowledge
9. Implement self-service as customers want to serve themselves
10. Use all the data you have to make support an effortless experience


Achieving a 360-Degree Customer View Isn’t as Tough as You Think

Achieving a 360-Degree Customer View Isn’t as Tough as You Think TW

One of the biggest challenges for contact centers and customer service departments is convoluted systems. According to CCW Digital research, two of the top five areas for improvement include agents spending too much time on low-value work and the absence of a 360-degree customer view.

When customer service agents don’t have a 360-degree customer view, they spend excess time navigating applications and databases trying to manually find customer information and history, which is frustrating and inefficient for both employees and customers. However, with the right technology, it doesn’t have to be that way. Read on to learn why.

Tap Into the Power of a Centralized CRM

Building a 360-degree customer view is dependent upon giving our front-line employees and customer service agents the tools they need to see customer history, route inquiries accordingly, and find solutions seamlessly through an efficient customer relationship management (CRM) platform.

As seen in a recent CCW Digital webinar, during a peak in the pandemic, customer contact volume increased ten fold, while agent capacity decreased 20%, call duration increased 62%, wait times increased by 27 minutes, and as you would guess, customer satisfaction decreased — by roughly 28%.

As customer volume increases and agent capacity decreases, friction is brought into the customer experience, exposing an unforgiving area for improvement in the contact center — the vast majority of CRMs being used are not getting the job done. Simply put, customer service departments around the globe are losing customers as a result of poor management and technology.

Specifically, incorrect and incomplete data means longer wait times, less ability to predict needs, and less ability to personalize interactions.

We’ve seen an uptick in digital channel utilization which means you have more touch points and data sources to aggregate customer history, and therefore a greater need for an omnichannel CRM.

The only way to alleviate the friction in the customer experience is to create a more efficient process, reducing the amount of applications agents need to record and access customer information, and resolve problems by using a single, unified, and actionable customer service CRM.

Increase Efficiency and Personalization Through AI and ML

AI can help you better glean insights from your data at scale. Then it can be used to improve routing and provide agents with real-time guidance and recommendations, thereby increasing their ability to “see” and “use” their 360-degree view.

AI and machine learning (ML) have the ability to improve the precision and speed of service by automating repetitive, manual tasks as well as your most complex business processes. For instance, high-volume conversation traffic could be intelligently routed to the most appropriate agent, loyal customers could be prioritized, and agents can quickly deliver standardized responses when appropriate.

With Robotic Process Automation (RPA), AI can simulate human actions to complete repetitive and rule-based tasks and processes. RPA can allow chatbots to fully complete a customer conversation without the need to escalate to a human agent, as well as provide the customer with more self-service opportunities by tapping into appropriate backend datta. This makes agents more efficient, freeing up their time for complex and proactive support, and gives customers more accurate information quickly.

Let’s take a closer look at chatbots. They are growing in popularity with both businesses and consumers, and can be used to collect initial information, provide responses to simple questions, and even complete standard tasks like initiating a return or answering an order status question. While there is always fear of losing personalization when using AI, ML, or automation, with the right platform, businesses can actually do the opposite.

If a business leverages customer data properly and gives the chatbot a 360-degree customer view, chatbots can ask personalized questions based on an individual’s purchase or browsing history. These interventions save time for both the customer and agent, and increase the time spent on the actual issue rather than information gathering and low-level support. Of course, if needed, once the customer experience requires a transfer to an agent, automation can route the customer to the right agent, best equipped to solve the problem, and transfer all of that data into the agent’s view.

Want to learn more strategies to deliver standout customer service through a 360-degree customer view? Download CCW’s latest report here, filled with insights from Kustomer CEO Brad Birnbaum and NYT bestselling author Shep Hyken.


The Customer in the Future with Blake Morgan

The Customer in the Future with Blake Morgan TW

Listen and subscribe to our podcast:

In this episode of Customer Service Secrets, Blake Morgan joins Gabe Larsen to discuss the importance of focusing on the customer and its role in attracting more customers. For the last 12 years, Blake has been in the customer service industry as either a practitioner or thought leader. She got her start as a customer service executive at Intel and for the past 5 years she has been a keynote speaker. Blake is dedicated to helping prepare businesses for the modern customer and helping them become the companies of the future. She is also the author of The Customer of the Future and hosts her own podcast titled “The Modern Customer.” Listen to the full episode below.

The Customer and Company of the Future

Times are changing very quickly and the customer service industry is not immune. The modern customers are in an interesting situation because they are being exposed to a variety of service experiences and not all of them are good. So what exactly should we expect from the company of the future? Blake states, “The company of the future has a soul. The company of the future is thoughtful. They’re thinking about more than just how much money they’re making the next quarter. They’re looking at the implications their behavior has on not just the customer, but the employee, the community, the environment. They’re thinking about innovation as a core piece of their competitive strategy.” If these are the characteristics of future companies, how does your company compare?

Why This Change is Slow

There is a very pressing need for change, but it is happening at a much slower pace than what is needed. Blake suggests that this is happening because of the nature of CEOs and their short time investments in companies along with the need to change culture. Changing a company’s culture and being willing to make a long term investment into customer experience isn’t always appealing and is not a quick fix. One of the elements of Blake’s philosophies is the psychological aspect of customer service. This involves the mindset and the culture. If CEOs were willing to invest more time, be more patient and persistent, psychological and cultural changes would occur in a company. Blake recalls, “Customer experience has to permeate through the culture of the company. It has to be in the fabric, in the mission, the values, the way people talk. We’ve got to have that humble, open culture. It’s not easy to simply replicate what somebody else does, especially for big companies that have toxic cultures or have cultures where things move very slowly and change is hard. I think it’s extremely difficult for these companies to change the culture, which is the biggest piece.” Making these changes is a slow process normally, but Blake is optimistic that it will speed up as companies apply the principles in her book and invest more fully in customer experience.

What it Takes for a Company to Stand Out

In the middle of their discussion, Gabe asked a simple, yet powerful question, “Why does CX matter?” Blake’s response is that in today’s world, there is so much product competition that simply having a good idea isn’t enough. She further explains that by excelling in the customer service and customer experience department, companies can manifest their value. It’s important for companies to take the time to care about people and recognize the humanity of the customer. As Blake so eloquently describes, “In a time where many of our products and services are the same, customer experience is the only way to stand out. Our products and services have become commodities or simply competing on price. And maybe that in the short term, but in the long term we want to be relevant. We have to compete on experience on how we make people feel… Thoughtfulness is truly a competitive advantage today.” Quality customer service and experience is essential for the companies of the future and the customers of the future demand nothing less.

To learn more about the customer and company of the future, check out the Customer Service Secrets podcast episode, and be sure to subscribe for new episodes each Thursday.


Listen Now:

Listen to “The Customer in the Future | Blake Morgan” on Spreaker.

You can also listen and subscribe to our podcast here:

Full Episode Transcript:

The Customer in the Future with Blake Morgan

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
Hi, welcome everybody to today’s show. I’m excited to get going. We’re going to be talking about the future of the customer or the customer being the future. To do that, we brought on Blake Morgan. She is a customer experience expert. She does keynote speaking. She also happens to have a new book coming out called “The Customer of the Future.” It talks about 10 guiding principles that we’ll dive on to just a little bit today. So Blake, thanks for joining. How are you?

Blake Morgan: (00:39)
Hi. Good, thank you. Thanks for having me on your podcast. I love podcasting. I have my own podcasts, so —

Gabe Larsen: (00:46)
That’s right. Can you tell us, maybe add that in, but tell us a little more about you and some of the fun things you do in your day to day.

Blake Morgan: (00:57)
Well, what’s super fun now is I am 29 weeks pregnant, so I’m a mom.

Gabe Larsen: (01:05)
It’s your first?

Blake Morgan: (01:05)
It’s my second.

Gabe Larsen: (01:08)
Okay, congratulations.

Blake Morgan: (01:09)
Yeah. So you asked me what’s fun. So I guess that’s like fun. That’s fun news. I also have two dogs. They’re fun as well. And a husband. The one thing I do is I bring my message that if you focus on the customer, if you make people’s lives easier and better, you will always attract customers to you. And that’s the basic message that I bring all around the world, whether it’s on a stage, on my podcast “The Modern Customer,” on my Forbes column. It’s a simple human message that we’ve gotten too far away from treating people like wallets. And we have to be real about how we are building and designing experiences for other people and how do we make them feel?

Blake Morgan: (01:57)
And now feelings are a business metric. And that’s really exciting for people like me. For over 12 years I’ve been telling stories about why how you make people feel matters. And now, businesses are starting to draw the correlation between, oh gosh, we’re making people feel like junk. And I can see our market share shrinking. Oh, it makes sense. So it’s been a pleasure to be able to do this job and I’ve been doing it for about five years, completely focusing on thought leadership. And before that I was a practitioner as an executive at Intel, the chip maker. But I’ve been in the customer world for about 12 years whether as a customer service executive practitioner or on the thought leadership side producing content.

Gabe Larsen: (02:46)
I love it. I love it. Well, let’s dive in. That’s a great intro. I want to hear a little bit about the book, but the looming question– I always like to think about titles and you’ve got this kind of customer of the future. So maybe start there. Who is the customer of the future?

Blake Morgan: (03:00)
The customer of the future. She is already here and I recently heard a quote that “the future is here, It’s just not widely distributed.” And I love that because you know, in your life you’re getting some beautifully easy, seamless, zero friction, personalized customer experiences from companies like Spotify and Netflix and Amazon and Apple products. And depending on where you get your healthcare or your airline, I mean hopefully you’re with the best, but many of us are not. So you’re getting these wonderfully delicious experiences in some areas of your life. But like if we look at the five most hated industries, they are travel, especially air travel, insurance, cable, Telekom and wireless services and internet services. So basically many of these experiences are extremely broken. But then, when we say the future is not widely distributed, but it’s here, the customer is comparing those horrible experiences with the wonderful ones they get. So everyone today is being held to a different standard.

Gabe Larsen: (04:14)
Wow. Yeah. You nailed it with the industries. I’m thinking of my cable bill, my Telekom bill, and like yes, me, me, me. But you’re right, times definitely are changing. So how does that compare to the company of the future? Is that similar? Does it have to react differently with some of the different changes with the customer of the future.

Blake Morgan: (04:37)
Yeah. The company of the future has a soul. The company of the future is thoughtful. They’re thinking about more than just how much money they’re making the next quarter. They’re looking at the implications their behavior has on not just the customer, but the employee, the community, the environment. They’re thinking about innovation as a core piece of their competitive strategy. And that’s why you see — when I put out my lists on Forbes of the most customer centric companies, these are companies that do everything well. They’re good to their people, they have a huge innovation focus, they are good on customer service and they also are trying to look at ways to be more sustainable, to impact the community in a positive way. And so they do everything well. And that’s why when people ask me, Blake, what are the most customer focused companies in the world, I just point them to the great place to work list because we see that companies that are great places to work often have excellent customer experiences and their stock prices are going up as a result.

Gabe Larsen: (05:49)
Yeah, and that first thing you said; companies won’t just look kind of at the numbers, you know, they’ll have a soul. Well why is that so hard to make that transition? Is it that hard? Is it just something we got to kind of do? Because I feel like you still have leaders getting up there and yeah, it’s all the almighty dollar and that does matter. But if the customer is not happy the dollar doesn’t come. It’s like they’re not getting it. Why is that not happening? Or is it as simple — is it changing your mindset or what’s going on there?

Blake Morgan: (06:23)
Yeah, I think we have to look at what individual leaders are measured by and what their goals are. If you think of a CEO, they often come in, take over at a big company and their goal is to be there a few years, turn the company around, make it profitable and then move on to a better paying or more fancy, we’ll say, CEO job. And that’s a problem because for these customer experience programs, they required long term investments. They often require being misunderstood for long periods of time. And when founder CEOs, they focus on their businesses, it’s often the long term view because they aren’t held to the standards by the board. They don’t really care because they’ve built the company, it’s their baby. And they’re willing to be misunderstood. Yeah, like Reed Hastings of Netflix. So I think that’s one of the problems is that the performance metrics for these leaders are not in service of customer experience. They’re in service of the almighty dollar, quick turnarounds. And it’s really a conflict when we think about things like digital transformation that require at least five years or so of sometimes taking a loss in order to transform into a better company.

Gabe Larsen: (07:52)
Yeah, that’s so interesting looking at some of the different examples of like a turnaround CEO versus an original founder, right? That mindset of this is my family, or this is — there’s just such a different futuristic view on that. You mentioned the Netflix gentlemen as an example, you’re right, they kind of see things different. The CEO compensation, yeah that probably would change behavior, right? What are you actually here to do?

Blake Morgan: (08:22)
Right, exactly.

Gabe Larsen: (08:24)
So, in all of this going on in the world, we talked a little bit about the future of the company, the future of the customer. CX, a lot of people debate its importance. Why, why does it matter so much today?

Blake Morgan: (08:38)
So in a time where many of our products and services are the same, customer experience is the only way to stand out. Our products and services have become commodities or simply competing on price. And maybe that in the short term, but in the long term we want to be relevant. We have to compete on experience on how we make people feel. Um, and that’s why I think customer experience is the great leveling field of our time because any tiny company can build something that’s simply better where they take something that has been the way we do business for a long time that customers hate and just said, well, let’s make it better. Why does it have to be like this? And they simply win by creating something that people just love and can’t stop using. It often comes from frustration. There’s a company called Good Grips or Oxo Grips and the founder of Oxo Grips, which is a company that makes things that are like easy to handle.

Blake Morgan: (09:42)
Like in my shower, I have a window wipe, I guess you’d call it, or like a glass — I don’t even know what the name for this is. Basically, when your shower gets all streaky, it wipes the shower down and it has an amazing grip. And the reason this founder created this company, Oxo Grips was his wife had I believe Parkinson’s or her hands shook. She had a disease where her hands shook and she couldn’t hold things well. And so he created this company with products that were easy for people who had disabilities to be able to hold them. I think some of the best innovation just comes from frustration. Like why does it have to be like this? It can be better. And let’s just build it. And so you asked, why customer experience? Why now? It’s the great leveling field of our time. Experience matters. It is the only way to make a customer remember us and we can no longer simply rest on our laurels and ride our legacies into the future. It just won’t work anymore.

Gabe Larsen: (10:44)
Why, that is true, right? I mean, it’s like when you think you’ve got a cool product innovation and oftentimes, it can be knocked off. Whether it’s here or somewhere else. But yeah, that service level is one of those things that in particular about the customer. And there are multiple areas I think in the customer experience, but I like the service. What’d you say? What’d you call that? The great leveling field for — yeah, there’s something to that. That’s so bloody hard or whatever word you want to use. I’m not, not British, but it’s so hard to meet or knock off because that does require a culture and all these different, kind of, aspects where its products sometimes you can find the ingredients and you can do it quicker. So let’s dive quickly just into the book for a minute. Where is the book at the moment? It’s obviously — we can see it here on your LinkedIn profile, but give us some of the different topics in the book and some of the things you hit on there.

Blake Morgan: (11:46)
Yeah. The book is live, it’s been out since October. I’m really excited because it became a best seller on Amazon and Porchlight books, which is where the conference organizers buy books and the book is based on my 10 guiding principles. In my speeches, I bucket that into three categories and that includes the psychological, technical, and experiential aspects of a strategy. The psychological, the first piece, is the most overlooked piece of a customer experience strategy. And that’s mindset, culture, and leadership development because we don’t realize that the answers are often right in front of our nose and they’re free. But we don’t want to look at our culture. We don’t want to think about, well how do the executives walk around and talk about customers at our company. The second piece is the technical piece and that’s where I dive into digital transformation. Analytics.

Blake Morgan: (12:43)
What is customer experience technology? What does the market look like? And I talk about personalization. And then in the third piece we look at the experiential aspects of the strategy, which are more about marketing, which are more about data ethics and privacy. And lastly, experience design. And so the three pieces again in the book: psychological, technical and experiential aspects of strategy. You won’t find it bucketed like that in the book, you’ll find the 10 principles. But when I’m talking about it 10 is just too damn many for anybody to sit through me. It sounds like a laundry list. So for the sake of like keynotes or podcasts, I explain it in these three buckets, which I think people, it’s easier for them to get.

Gabe Larsen: (13:33)
Three is always a little easier than 10. Where do you feel are the best or the worst as you think about these three buckets? Or is there areas that you typically see we kind of are floundering the most or maybe have the biggest strengths?

Blake Morgan: (13:48)
Yeah, I think that the first is mindset. The biggest is mindset and culture. Because most companies, what they do– and I talk about this often because it’s like the biggest bruise in my industry– is they hire a chief customer officer or they hire an experienced group and that group or that person has no power, no influence, no one in the company really even knows who they are, or what they do. It’s just putting lipstick on a pig really. And even when I worked at a fortune 100 company, I remember asking my boss, because I was an executive in customer service and I said, we have a customer experience group. Well what do they do? And she said to me, Oh, I think they produce events. And I thought, what? That makes no sense. Customer experience has to permeate through the culture of the company. It has to be in the fabric, in the mission, the values, the way people talk. We’ve got to have that humble, open culture. It’s not easy to simply replicate what somebody else does, especially for big companies that have toxic cultures or have cultures where things move very slowly and change is hard. I think it’s extremely difficult for these companies to change the culture, which is the biggest piece. Instead of just hiring one person, like a chief experience officer and then just saying that, okay, we’ve done our job.

Gabe Larsen: (15:15)
Is there a leader or a company that you would highlight that kind of embraces some of these concepts? The customer experience, customer service in a way that is something that maybe you aspire to? Whether it’s the cultural aspect or one of these different ideas. Where would you go with that?

Blake Morgan: (15:35)
Yeah, I would say that from a culture perspective, Workday is one I really like. The founders are just good people and if you find inside the company, just the stories you hear are just human stories of leaders doing the right thing for employees. And they’re one of those companies that’s on the great place to work list. And they’re also known for customer experience. You can’t really talk about customer experience without talking about Amazon. They have changed the game for everyone. I went to Amazon because I wanted to know like, was there any magic or would I find bunnies being pulled out of hats at Amazon headquarters and when I did the tours and met with executives. What I found is that there was no secret sauce or magic that it’s simply a company that’s run extremely efficiently, focused on innovation, very hardworking, humble people. I met a head of logistics who would go driving with his delivery people at two in the morning just to see some of the hiccups or hindering blocks in their process to make more efficient operations for his employees. And I think most people in big companies just don’t have the stomach or the commitment to go through that to go on a 2:00 AM drive just to make something 10% more efficient.

Gabe Larsen: (17:02)
Yeah, that’s what it feels like they’ve been able to do. Right. It’s like that effortless experience. I know I’m stealing that word from others. But they seem like they have mapped that customer journey a billion times. They just know exactly where — they’ve just eliminated every, well, they’ve eliminated a lot of different headaches to make it so easy to do business with them that you’re like, I’d rather do that than go somewhere else. Well Blake, I really appreciate the time. It’s a fun talk track. I’m excited. Blake was a referral. I was talking to someone else and they said you’ve got to talk to Blake who’s got this new book.

Blake Morgan: (17:40)
Thanks Dan.

Gabe Larsen: (17:40)
So I quickly researched her. I wrote out to her, I ordered the book and it gets here in a couple of days. I’ll have to check that out. I’m trying to learn more about the whole customer experience and customer service. So I appreciate the talk track. In summary and then maybe for people who want to learn a little bit more about what you do Blake, how would you bring it to a close?

Blake Morgan: (18:02)
In summary, I think the best thing you can do for your business is hire sensitive, empathetic people who are interested in other people’s experiences. And these are the people that will build beautiful customer experiences because they’re very thoughtful and they really think about what it feels like to be on the receiving end of something. And that’s truly the number one thing is hire thoughtful people, whether they’re leaders, employees, customer focused agents. Thoughtfulness is truly a competitive advantage today. And if you want to learn more about me, I would love to connect with your listeners. Come to my website blakemichellemorgan.com. I’m launching a new podcast soon on entrepreneurship with my husband Jacob Morgan. So hopefully you’ll find that as well on my website and would love, any way I can help, anybody listening please reach out.

Gabe Larsen: (18:58)
Yeah, that’s so fun. As I was talking to Blake pre show it was like I honestly don’t know how to introduce you. You got all these different accolades and things you’re doing. So where should I start? So anyways, do check her out. I think that’s a great idea. We will make sure we put some of that in the show notes. So Blake, thanks for joining. For the audience, have a fantastic day.

Blake Morgan: (19:17)
Thank you so much. I enjoyed it.

Exit Voice: (19:20)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


The Cult of the Customer with Shep Hyken

The Cult of the Customer with Shep Hyken TW

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In this episode of Customer Service Secrets, Gabe Larsen is joined by Shep Hyken to discuss his book, The Cult of the Customer and the different phases of customer experience. Shep Hyken is a customer service expert and has spent 37 years in the industry. He is passionate about customer loyalty, engagement, and management. He is a keynote speaker, a New York Times and Wall Street Journal bestselling author and is currently the CSP, CPAE, and CAO (Chief Amazement Officer) at Shepard Presentations. Shep is very knowledgeable and brings valuable insights to the table as he and Gabe discuss the five “cults” in his book. Listen to the full episode below.

Why Use the Word “Cult” with Customer Service?

Most of the time when people see the word cult, they automatically think of small groups of individuals with negative and radical beliefs. “Cult” does not typically have a positive connotation. However, by discussing the latin origins of the word, Shep explains that it actually means a group of people with common interests and a unified goal. In this sense, cults aren’t inherently bad and the word could reference a lot of different groups. Shep states, “It’s a group of people that have a common interest and in this case, the cult of the customer is all about people that are fanatical, if you will, about taking care of their customers, both internal and external…” Throughout his book, Shep uses this word not only to describe the overall commitment and passion to positive customer service, he uses the word “cult” to describe different phases of the experience.

The Five Cults, or Phases, for Customers and Employees

To better understand the experience of customers, Shep created these five cults. The first is uncertainty, meaning that the customer is lacking knowledge or experience with the company. After moving through uncertainty, the customer arrives at alignment. In this phase they better understand what the company actually does and the company’s mission. Third is experience: where the customer actually has personal experiences with the product or service. Fourth, take ownership. When a company takes ownership for any unfortunate mistakes or mishaps, they gain the customer’s trust. Fifth, amazement. Shep recalls, “Now if it is positive and it’s predictable and consistent, you’re actually operating into the ultimate cult, the cult of amazement.” Additionally, Shep relates these phases to employees as well as customers. For example, when a new employee joins a company they have uncertainty, then they learn and align, have experiences, take ownership, and then, hopefully, enter the amazed state.

Consistency and Amazement as a Realistic Goal

While reaching the amazement cult and staying there seems like an unattainable goal, Shep assures that it is possible. It may be a fluid experience but it is possible. To understand how it is possible, Shep defines amazement as being “consistently better than average.” By taking the time to understand customer expectations and then creating better than average standards, customer loyalty will spike as well as customer satisfaction. Consistency is the key to being in the amazement cult. To make this point clear, Shep states:

I’ve been talking about consistency since the 80s. No matter how good you are, if you’re one day good and the next day okay– even if you ever dropped below average– you’re still going to be seen as inconsistent . . . To be better than average means simply as Horst Schulze, the cofounder and first president of the Ritz Carlton Hotel Organization, said “If you want to create a world class brand and be recognized for amazing service, just be 10% better than average all the time.”

Finding the weaknesses or trouble spots in your company, reevaluating customer expectations, and creating goals of consistency is the way to help every customer have an “amazing experience.”

To learn more about The Cult of the Customer and its various applications in the customer experience realm, check out the Customer Service Secrets podcast episode, and be sure to subscribe for new episodes each Thursday.


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Full Episode Transcript:

The Cult of the Customer | Shep Hyken

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
Hi, welcome everybody. Today we’re going to be talking about cult, the cult of the customer. I think it’ll be a fun dialogue. To do that, we brought in Shep Hyken, probably heard about him. I’ve been tracking him for six months. People have probably been doing it longer, but I’m newer to this space so that’s my excuse. He is a customer service and experience expert, New York Times bestselling, he’s got an author, keynote speaker, and he does run his own company. So, you’ll see him across multiple channels, very active on social, got a podcast. I think we’ll learn a lot today and I would definitely advise after, to make sure you follow some of his thought leadership content. So Shep, thanks for joining and how are you?

Shep Hyken: (00:54)
Hey, thanks for having me. Great to be here. Excited. And while you may have only been doing it six months, I’ve been doing this about 37 years. So, I don’t know if any — I guess I have had followers for 37 years because there are people, this is true. My very first contract I ever signed to do a speech was in 1983 with the company, Anheuser-Busch, or Budweiser. Yeah. And just about two months ago — I mean, I’ve worked with them, gosh a hundred times, maybe more over those years. Okay. But my most recent one was just a couple of months ago. So some of those people had been following me for a long time.

Gabe Larsen: (01:33)

Shep Hyken: (01:33)
And hiring me.

Gabe Larsen: (01:33)
You say 1983? Is that what you said?

Shep Hyken: (01:36)
Yeah. Yeah. Before you were born maybe?

Gabe Larsen: (01:38)
I don’t want to go into it, but it’s pretty close.

Shep Hyken: (01:41)
I know. I look young and I’ll tell you why. I cut my hair off. Just shave it all off. No, you can’t see — has he got gray hair? Well, unless I take my shirt off, you won’t know. Back hair could be gray, but hey, we’re not going to do that here. But seriously, old guys that are bald, they don’t look old until one day they do look old. But I’ve got about another 10 years before that happens.

Gabe Larsen: (02:05)
Yeah. Well I won’t make you share your age, but it sounds like 37– That’s a long…we’ll just go with that.

Shep Hyken: (02:10)
1983 I started my business. Yep.

Gabe Larsen: (02:12)
You are a seasoned professional. Wow. Well again, tons of information we’re going to try to dive into it today. Let’s start high level cause when I saw this book, I mean it is kind of a revised edition coming out, but this idea of cult. I mean most people see that and they’re like cult, that’s some weird people doing some weird stuff in some weird place.

Shep Hyken: (02:34)
It’s got the rep. It’s got the rap and the rap — got the reputation and a bad rap. Cult is actually, it’s an interesting word. And by the way, this is a completely updated, revised edition; new stats, facts. We took out a few of the case studies that weren’t relevant. We got rid of some names of people that are in jail now that we used as examples. They’re now, they’re no longer part of the book. True. That’s true. I won’t tell you who it is either. No, it’s true. There was a guy in there who’s in jail right now. He’s out of the book.

Shep Hyken: (03:05)
You never know what’s going to happen. Right?

Gabe Larsen: (03:08)
You don’t, you don’t.

Shep Hyken: (03:08)
So, the word cult. When I sent the book out, the first time the book came out, I actually sent it to a bunch of my clients. One client sent it back, a healthcare system that has a religious persuasion and said, the word cult disgusts me. You will never work for my company again.

Gabe Larsen: (03:28)
Whoa you’re kidding.

Shep Hyken: (03:28)
Whoa, Whoa. I apologize profusely. But, if you read the back cover of the book or the inside jacket, it says cult is not a dirty word. The word cult is really, first of all, it comes from the word cultus, the Latin word cultus, which means care and tending which is interesting. But beyond that, the actual definition of a cult is not about fanaticism. It’s about a group of people with common interests headed toward the same direction, doing the same thing.

Gabe Larsen: (03:59)
Is that right?

Shep Hyken: (03:59)
So, in effect, it could be a religious order, but it could also be a bunch of people who go out and it’s almost like religion. Every Sunday morning you see them running through the park, working out together. So it’s a group of people that have a common interest and in this case, the cult of the customer is all about people that are fanatical, if you will, about taking care of their customers, both internal and external; creating an environment that’s care and tending toward those people. And, ideally doing such a great job that these customers, especially the outside customers, become evangelists; which is why the subtitle is “Create an amazing customer experience that turns satisfied customers into customer evangelists.” People that will praise what you do and share and spread the word about how great you are.

Gabe Larsen: (04:50)
I love that. You know, I don’t — there was another gentleman, Russell Brunson, he’s kind of a marketing guru.

Shep Hyken: (04:56)
Yep I know Russell.

Gabe Larsen: (04:57)
Cult-ure. Like CULTure, culture. Like something that people are a little more intense about that they really care about and want to be a part of. You’re right. I like that the history shows that it’s not just a negative, kind of crazy people that we sometimes assume. But there is kind of a positive– just a group of people that are really dynamic in following the cause.

Shep Hyken: (05:19)
So here’s some trivia. I’ll give you trivia that I’ve never shared with anybody before. I don’t think I have anyway. So when this– I did not come up with this title. When I was approached by Wiley a dozen plus years ago to write this book, I had the idea that would be called “The Customer Focus,” which is after my training programs.

Gabe Larsen: (05:41)

Shep Hyken: (05:41)
And they said, we’ve got a different title. We would like you to consider, “The Cult of the Customer.” Whoa, that’s an interesting name: Cult. The “cult” caught my attention too. So ironically, that summer I saw a woman speak, she was wonderful. She’s the one that came up with the Aflac commercial. “Aflac.” So she talked about how it would be a polarizing commercial; that people would love this because it’s funny, people would hate it because it’s stupid, but everybody else would remember it no matter what because who’s going to forget Aflac. Right? And so, I asked her. I had a chance to ask her about the word cult in the title, and she says it will do the same thing that Aflac does in a sense. And that if people are walking through the bookstore and they see “The Cult of The Customer,” they may stop and look at that word cult because it jumps out at them.

Shep Hyken: (06:34)
And it may cause them to pick up the book and look at it. Some people, it’ll just like, “who would use that word in a title,” and others will go, “well that’s a really interesting way of putting it.” So in effect — but everybody remembers that word cult because it just stands out.

Gabe Larsen: (06:49)
Oh my heavens. When I first saw it, it did.I think you nailed it.

Shep Hyken: (06:54)
Thank you.

Gabe Larsen: (06:54)
It’s a little bit of a head turner. You walked by and probably some people are like, what? But other people are like — so whatever it is, good for you because it worked.

Shep Hyken: (07:04)
It worked. We sold a lot of books. When it first came out, it immediately, interesting. It was the number one book of all books sold on Amazon for just a real short time. But it was the number one book. It stayed number one in business for weeks and weeks. It also hit the Wall Street Journal list, the USA Today list. And I was surprised it didn’t hit the New York Times. The next one did. But this one still, it hit a bunch of good lists.

Gabe Larsen: (07:31)
Wow, well, congratulations on a bunch of books. Yeah, I’m sure the title had something to do it, but the content as well. So let’s hit the content. Can you talk about these five cults or phases customers go through? Maybe start there.

Shep Hyken: (07:45)
So, I started to look at — my goal in life is to simplify the complicated. And it’s not even that complicated. We want to create an experience that gets people to want to come back. Well, let’s talk about what people are thinking through their journey. And the first time a customer decides to do business with someone, no matter how good the reputation is, they can only hope that it’s going to be as good as what’s promised.

Shep Hyken: (08:11)
And I call that the cult of uncertainty. That’s a phase that customer’s in. The next is they’re going to get into alignment. So they get into this cult of alignment. They’re starting to understand what the company’s about. And by the way, B2B, B2C doesn’t matter. It’s, I want to understand who it is I’m dealing with, what they’re promising me. Okay, I get it. Now I need to experience it. And as I experience it, hopefully I’ll like it and it’s a good experience and I like that experience, but it’s not predictable yet. It only becomes predictable when it’s repeated, when I can count on it. So you go from uncertainty to alignment to experience, and then you go to ownership. That’s when it is predictable. People say things like, “they’re always so helpful, they always get back to me, they always are friendly.” Yeah, the word “always” followed by something good.

Shep Hyken: (08:57)
Now, if it is positive and it’s predictable and consistent, you’re actually operating into the ultimate cult, the cult of amazement. And that’s where, and by the way, amazement can be over the top, blow me away. But you can’t count on over the top experiences every time. Usually, you have to wait for a problem to fix it. Or maybe you overhear something and you can surprise someone. But if day in and day out, you’re just predictably above average and creating that positive experience where your customers go, “I love doing business with them.” And if you said, well, what do you like about them? They always get back to me so quickly. They’re always, like I said, knowledgeable, helpful, friendly. You can use all those. Even when there’s a problem, I know I can always count on them. Which by the way, when you’re in amazement and then there’s a problem, that customer immediately goes back to uncertainty. Immediately. And if you handle it right, they quickly jump back to amazement. And that’s when they’ll say, even when there’s a problem, I know I can, here’s that word, always count on them. So that word “always” followed by something positive.

Gabe Larsen: (10:01)
But that is scalabil– it’s consistent.

Shep Hyken: (10:06)
Consistency counts. I would say that as I do my speeches, I don’t know how many, I mean I’ve done thousands of them over the years, but, as I’ve been talking about consistency; I’ve been talking about consistency since the 80s. No matter how good you are, if you’re one day good and the next day, okay, even if you ever dropped below average, you’re still going to be seen as inconsistent. So if on a scale of one to five where one is bad and five is great, three is average or in the middle. To be better than average means simply that Horst Schulze, the cofounder and first president of the Ritz Carlton Hotel Organization said, if you want to create a world class brand recognized for amazing service, just be 10% better than average all the time. Because that “all the time” part that’s not easy to do.

Gabe Larsen: (10:57)
Yeah, but that’s interesting because we do — sometimes we celebrate the crazy stuff, right? The over the top, I think is the word you used. And those are nice, but it does require maybe a big blow up or a big problem. It’s that consistent, repeatable, scalable, whatever other word you want to throw in, that 10% above average. But it’s getting there. That ain’t that easy.

Shep Hyken: (11:20)
Well over the top is hard. I mean, you know, it’s like if you’re a server at a restaurant and you overhear a couple talking that it’s their year anniversary and you surprise them with a cake with a candle. That’s not really over the top, but that’s a surprise. Okay. But if the rest of the time you are inattentive and didn’t bring them their drinks fast and the food came out and it was sloppy the way it was, put–. See, you’ve got to always be — I want them to say, “you know what, that server was wonderful and that surprise was amazing.” And wonderful is attentive, friendly, nice, made suggestions. And that’s a very simple hospitality example. But again, B2B, it’s the same way. We’re a manufacturer. We’re selling to a company. You feel good about the order you place. I call you up and say, just want to let you know the order– or I email you– the order has shipped, here’s tracking information. I’m going to watch it too. I call you to let you know it arrived and, or I email you to let you know, and I’m on top of it. And you’re saying to yourself, wow, these people have it together. And when that happens again and again you go, “I can always count on them.”

Shep Hyken: (12:29)
That’s why people love Amazon. It’s because they send out these notices, your order is placed, your order has shipped, your order is received. Then on top of that, if there’s a problem, they have a pretty great system of management.

Gabe Larsen: (12:42)
I want to get through the rest of the phases, but just one more click on that because that’s like the Holy Grail. That consistency. It just seems like we can’t do it. Is it because we don’t have the technology, the wherewithal, the knowledge, that there’s just too many complications? How come we’re not there?

Shep Hyken: (12:59)
I believe that the majority of the problem with inconsistency, sure there are issues built into a process that can be fixed. But a lot of the problems have to do with people where they’re not paying attention to what’s going on in that moment. And I will tell you when I work with clients and one of the exercises we’ll do is say, I want to have the group sit down in small groups and talk about– come up with the three biggest problems you hear customers complain about all the time. And I love this because they come up with some great ones and I go, all right, let’s figure out what the most important one we want to deal with. So this happens all the time. Oh yeah, it happens every week, every day. I go, well, if it’s happening all the time, why haven’t you fixed it yet? Okay. And by the way, some things are not fixable. Jeff Bezos said, we don’t need a customer service department. We need to be that good that customers should never need to call us for anything. And that worked until the shipment went out of the warehouse and then UPS, FedEx, Post Office, whoever it is, picked it up and lost it on the way. Now, it wasn’t in Amazon’s hands. It isn’t even Amazon’s fault. By the way, every time a customer called and said, where’s my shipment? It didn’t get here. And they found out that it was lost by UPS, FedEx, or Post Office, whoever. Amazon always said, no problem. We’ll take care of you. Okay. And see, that’s the kind of thing that kind of started that consistency of ownership. And whenever there’s a problem, I always say, apologize, acknowledge or acknowledge and apologize, doesn’t matter. Fix it. That’s the third step. Acknowledge, apologize, fix it or discuss what you’re going to do. Take ownership of it. Don’t blame others, just get it done. And number five, do it fast. And when you do that, you’re going to restore confidence. Now, even though a shipment that’s lost isn’t Amazon’s fault, how quickly they say, we’re going to get one out to you right away.

Gabe Larsen: (14:52)
They take ownership and they recognize it. You know, it’s funny, I remember one time, just to be thinking of your example when you talked to your group. I started even new at this company, but it’s funny when you have fresh eyes on a perspective problem. I remember I joined this company right in the front door, there was this big orange cord that kind of went across the front of the office. And I remember walking in and thinking, guys, why is this orange cord here, this large orange cord? Every day we have this step over it. And you know, to a point, it’s like, well, it’s just always been there. [inaudible]. So sometimes we don’t even acknowledge it because it has become just what we deal with. The orange cord is in our way. It’s always there.

Shep Hyken: (15:39)
There’s an old story. Zig Ziglar, the famous motivational speaker who’s passed away, used to tell a story about — there’s a big family dinner and the little girl says, “mommy, why do you cut the end of the roast off before you put it in the oven?” And mom thought about it and she says, well, that’s what your grandma taught me. And so she went to grandma, “grandma, why do we cut the end off the roast before we put it in the oven?” And she goes, “well that’s actually, that’s a very good question. But when I learned how to cook a roast, that’s the way I was taught by your great grandma.” Great grandma, four generations is in the room. She goes over to this elderly woman, “great Grammy, why do you cut the end of the road off before you put it in the oven?” And she said, because those roasts are so big, you have to take the end off so it will fit in the oven.” But the oven has got bigger, but they still kept cutting the end of the roast off. And it’s like, because we always did it that way and sometimes we become so used to something that it just doesn’t phase us. So back to the original concept, when our clients say this happens all the time ago, why is it happening all the time? There’s got to be some way to eliminate or at least mitigate it. So anyway, we have digressed away from the five columns.

Gabe Larsen: (16:54)
I’m so sorry, that’s so fun.

Shep Hyken: (16:56)
Oh I love it. This is what happens.

Gabe Larsen: (17:00)
[inaudible]. Oh man, you’re right. Bless his soul because that was a lot of great quotes. So go ahead and finish the five. I did have one other question.

Shep Hyken: (17:06)
Those are the five. We’ve got uncertainty into alignment, into experience, ownership and then amazement. And by the way, you mentioned Gabe, as you walked into a new company, employees have the same exact experiences that customers have, the five phases or five calls. Because when you walked in to work with, you know, this new company Kustomer, which by the way, I love the way they spell it. Different. Okay. Because whoever said — there is truth to this, that spelling is no indication of intelligence. Okay.

Gabe Larsen: (17:41)
No comment.

Shep Hyken: (17:43)
Very smart people just don’t know how to spell. Okay. You spell by remembering, by feeling it and kinesiology. I don’t know. There’s all kinds of ways they talk about, anyway.

Gabe Larsen: (17:53)
He’s mocking because we spell it with a K. For those of you who don’t know Customer with a K.

Shep Hyken: (17:57)
Is the K backwards? No, it’s Customer with the K. So, here’s the thing. The employee comes in and they go, Oh, I’m looking forward to work. I hope I love this job. Hope. Hope is not a strategy as they say, but hope is also an indication of uncertainty. Now I’m in there, I’m being onboarded, I’m learning about the mission, the values, the vision. Now I’m getting into alignment. I’m understanding it. So now I’m going to go to work. I understand this is what we’re supposed to do, this is how we’re supposed to be, and now I’m experiencing this and hopefully I’m liking it. By the way, I’m assuming that I’m enjoying this experience. Can’t wait for tomorrow. Oh, more of the same, more of the same every day. Now I’m owning it. And when you say to me, how do you like your job when you come home and your partner, your spouse, your best friend says, how do you like your new job? And you say, I love working there. You’ve now moved that employee from hope or uncertainty into amazement.

Gabe Larsen: (18:56)
Wow. Yeah. So, the employee’s journey does follow those same things, those five phases or five cults. Got it. One thing I wanted to dive into on the five, you talked just a little about the employee side of it, but we were talking about consistency. Is it– how possible is it really? I mean, you’ve been doing this for 37 years Shep, so you can just tell me it’s not possible, but is it really possible to get to that amazing level? I mean, can you be that?

Shep Hyken: (19:22)
Yeah, that’s the whole point. That’s what I try to preach to my clients. And by the way, I have lost a couple of speeches and projects because my definition of amazement is better than average all the time. And, there was a client that said, we need to always be, we need to blow our clients away every time. We need to prove to them over and over again. I go, you prove it when you’re consistently better than average. And by the way, the client defines who and what average is, but you can get a pretty good idea after being in business for a while, what your clients basic expectations are, and then say, where can I make it better? Where can I exceed it? I don’t ever want my client — you could say this, or Kustomer, you can create standards. You could say our clients will never be on hold for more than 45 seconds and if they are on hold, they’ll be given the option, by technology, allowing us to tell the client, “your call really is important in spite of what other people say and we value your time. We unfortunately are overwhelmed today and your whole time will be about four minutes or we can call you back at whatever time is convenient.” And you know, there’s a system that allows them to just punch in the numbers on their keypad and that shows you appreciate their time and effort. I can’t stand calling and they say it’s very busy, please hold, forever. We don’t know how long it’s going to take. So anyway, there is an example.

Gabe Larsen: (20:50)
We almost don’t even put up with that anymore. Now that we know there’s a different option, right? So, I love that definition of amazing, by the way. It just makes it so much more obtainable. That that does makes me feel better.

Shep Hyken: (21:01)
Little better than average all the time. And that means, and you can set your standards and you could say you’ll always return a phone call within two hours. You’ll always return an email within whenever. And you create these standards and you know, these standards are not just acceptable, but they will impress your customers. And you do that by talking to your people about what they know impresses their customers both internally and externally. We do an exercise here, in our office — and we teach our clients all over the world to do this — where every week they have to bring in an example of a good experience that they’ve created either for an internal or external customer. Sometimes it’s just, give me a general customer service moment of magic, positive thing again or give me an example of when you did something very specific that we’re talking about and they have to look to find that example. And what will happen is they’ll make that example happen, which is great because now they’re service aware, they’re making an effort to make things happen, so it’s positive. By the way, the types of exercises we’re talking about are included in the book. At the end we have a whole workbook and these are the same exercises that our trainers from our company go out and deliver to companies all over the world, so it’s included as part of the book.

Gabe Larsen: (22:15)
Let’s get there. I mean we’ve hit on a couple of points. I love some of the action items. If someone wants to learn more about you — get into the book. We’re obviously recording it now. It will be hopefully releasing soon here in conjunction with this session. What would you recommend to take the next step and learn more about Shep Hyken and what he does?

Shep Hyken: (22:35)
Well, you can go to hyken.com but if you want to learn more about the book, cultofthecustomer.com, and you can learn more or go straight to Amazon. By the way, if you buy the book, you need to go back to the website and there is, you’ll see it as you scroll down– I’m looking at it now– a big circle with a star in it says if you already pre-purchase a book, click here for your free gift. But you know what, we are going to modify the free gift just a little and let me tell you what we’re giving away. Anybody that clicks on that will get free access to one of my courses. We charge $49 for this course. It’s an online service course. Here’s what I want people to do. You can look at it as an individual. Print the workbook out, fine. If you’ve got a group of 25 people, print out 25 workbooks. It’s your paper at that point, and show it to everybody. You’ll have a great one hour with a group of people — have an hour long customer service workshop that you’ll be able to do with your group. No charge. Once you get it, you’ve got to use it because it’s not going to be there forever.

Gabe Larsen: (23:40)
Got it. Oh I love it.

Shep Hyken: (23:41)

Gabe Larsen: (23:43)
Cult of the Customer. Um, make sure we get that. Shep best of luck. Again, sounds like the book, the new version of the book, obviously it’s been out for a while, but new version with new stories, nobody from jail, et cetera.

Shep Hyken: (23:56)
It’s crazy. Yeah. And if I won’t tell you — if you read through the book you’ll go “Oh I know this is.”

Gabe Larsen: (24:02)
I probably don’t. Well, I really appreciate you taking the time. A great talk track on the Cult of the Customer. So again, appreciate you taking a minute for the audience. Have a fantastic day.

Shep Hyken: (24:14)
Thanks Gabe, thanks for having me. Bye bye.

Gabe Larsen: (24:16)
Bye bye. Alrighty and that is a wrap.

Exit Voice: (24:29)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


Top 8 Customer Service Trends You Need to Know

Man in coffee shop with iPhone

Consumer expectations are changing daily, and technology has a lot to do with this. The digital age has made customers expect instant gratification; when technology makes just about any information available at the click of a button, more and more people are turning to their devices for answers. With this technological transformation comes many up-and-coming customer service trends that companies can get behind to transform their business and cater to the expectations of the customer. After all, Gartner research predicted that 85% of consumer interactions will occur without interacting with a human face-to-face.

Does this mean that companies should rely solely on artificial intelligence to run their business? No, but they can certainly benefit from using it as a supplemental tool.

What are Customer Service Trends in 2021?

Customer behaviors have drastically changed since the pandemic hit in 2020. There’s been a shift in what customers find valuable and important. The changes in consumer behavior and digital-first shopping transformed customer service trends have taken on a new identity in 2021. Throwing out the old and bringing in the new, here’s an analysis of some of the critical customer service trends happening right now that every business should be addressing.

It’s all about enhancing the digital customer experience. Let’s take a closer look at the current trends in customer service that can help you run your business and satisfy consumers:

8 Current Trends in Customer Service

Keeping up with what’s new in customer service trends can be difficult when trends emerge so regularly. However, we can help you navigate through the trenches and understand the ones that matter most. We recommend addressing these trends in your CX strategy:

1. Promote a Strong Company Culture

Customer service has always been dedicated to taking care of the customer. But at NRF 2020, Alex Genov, the manager of research and user experience at Zappos shared the importance of shaping the company culture of your business to reflect the customer care you want to provide. More speakers at the event detailed how they refer to their customer service employees as something more encouraging, such as “brand ambassador.” Empowering the customer service agent is one way to get the positivity flowing through the customer journey.

2. Make Your Customer Service Options Mobile-Optimized

Today, everyone you know has a smartphone. And if they don’t, it’s rather shocking.

With so many people using devices that bring convenience right to the palm of their hand, it’s advantageous for your business to make sure its website works on mobile. Specifically, it’s critical that your customer service options are optimized for mobile. According to a Gartner survey of nearly 9,000 customers, the most preferred device for issue resolution was the phone at 44%.

The more channels your customers have to reach you, the better their odds of doing so and feeling satisfied with your ability to communicate.

3. Build Strong Customer Connections

Making the customer feel as though they’re a part of a community when they purchase your products or services is a great indication of strong customer service. This builds brand loyalty and advocacy and strengthens the relationship between the consumer and the business. When customers trust your brand, they’ll feel more comfortable and confident reaching out to your customer service representatives if something does go wrong.

4. Take the Omnichannel Approach

This isn’t exactly one of those new trends in customer service, but it’s still very important to consider in 2021. Often confused with multichannel support — or offering customers more than one option for contacting your customer service representatives — omnichannel support is guaranteed consistency in customer service as they shift from one channel to the next, so conversations are picked up right where they left off. With the right technology, your business can achieve an omnichannel approach with ease.

5. Focus on Self-Service Opportunities That Benefit Your Business

Many customers are confident in their ability to navigate your page and figure out the answer to their problem without feeling the need to contact customer service. While we do encourage having additional options like chatbots and live agents, one way customers can answer some of their own queries is through your Knowledge Bases (KB) or Frequently Asked Questions (FAQs) page.

As explained by Knowledge Owl, a KB and FAQ page are similar pieces of collateral that are each considered a self-service option that, giving your customer service agents a break from the repetitive questions that tend to flood their inboxes.

Building these pages up on your website can enable effortless self-service. Just make sure customers are directed strategically back to your customer service agent as needed

6. Be Responsive on Social Media

Just like owning a smartphone, most consumers have a social media presence on one or more channels. Not only are they using these platforms to communicate with family and friends, share pictures and laugh at memes, they’re also turning to social media as a way to connect with brands from a customer service standpoint. Patrick Cuttica, Director of Product Marketing at social media management company Sprout Social, told Business News Daily that brands should focus some of their customer service efforts on social media to satisfy their customers.

“Brands need to be thoughtful about which social platforms their customers are using [and] … focus their engagement efforts there,” Cuttica said. “A successful customer service strategy requires that a brand be present and available across the channels their customers prefer.”

7. Use Chatbots to Your Advantage

Contact forms are becoming less attractive to consumers. Why? Because they want fast, convenient service when they have a question or problem that needs to be solved. Chatbots are a great way to get the conversation started with customers without resourcing your agents to stand by every time a customer enters your site. Chatbots can pull information from knowledge bases to serve answers up to customers. Plus, they can be used to answer low-level support questions and provide 24/7 support, saving agents thousands of man hours.

8. Continuing to Utilize Live Support

Remember: While chatbots are highly advantageous, that doesn’t mean that AI should replace your talented human resources. Your business can benefit from bringing both together to increase scalability and drive efficiency across all customer service channels. AI can automate manual tasks and provide initial information about customer problems, giving agents the information they need to solve customer problems without compromising quality. This makes customer service more convenient for customers and can even improve your engagement and satisfaction scores over time.

Does Your Digital Customer Service Strategy Deliver?

Customer service technology can help you incorporate these new trends into your current strategy. Kustomer enables you to deliver effortless, personalized customer service, powered by intelligent insights and unified data.

Understanding how to deliver on growing customer expectations can be challenging without the right tools. That’s why we’ve created our Buyer’s Guide to provide the resources you need to evaluate potential partners, measure your success and pick the perfect customer service software solution. Request a demo today to schedule your 15-minute introductory call and learn how Kustomer can help.

The Standard for How to Treat Your Customers with Jeanne Bliss

The Standard for How to Treat Your Customers with Jeanne Bliss TW

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In this episode of Customer Service Secrets, Jeanne Bliss, CEO and founder of Customer Bliss, joins Gabe Larsen to discuss her book and her four pillars of quality customer service. Jeanne Bliss wrote Would You Do That to Your Mother? in 2018 about the standards companies should have for treating their customers. She started her career at Lands’ End and has been in the industry for 25 years. Her theories have developed as a result of her personal experience of coaching around the world. In this podcast episode, Gabe and Jeanne discuss a lot of concepts that companies need to be more aware of to improve customer service. Listen to the full podcast episode below.

Enabling Employees and Asking Probing Business Questions

One of the first pillars in Jeanne’s book is the importance of enabling employees to rise up to be the “good guys” in terms of customer service. She states, “We do things inadvertently inside our business that gets in their way. We wire [employees] into policies that they have to constantly feel bad about enforcing. We don’t trust them to make the call.” By taking extra care in the hiring process and trusting employees to make important customer service calls, the quality of service will rise. She also mentions allowing employees to have a “congruence of heart and habit.” When you let employees live their values in the workplace and not just check boxes, they will be in a better position to thrive in their jobs and make customers feel more appreciated.

Another important pillar that Jeanne discusses is the importance of making it easy for customers to get help. She introduces this concept by asking questions that spark businesses to become more conscious of their practices. Some of these questions include: “Do we make it easy to get help? Are you getting old waiting on hold? Do we make our customers feel like a hot potato passing them around?” Employees and customers are people, and both need to be treated with respect. So, it may be necessary to make changes to ensure this kind of respect is implemented within the company. Whether that means enabling and trusting employees more, or revising the customer service process, it will be worth it.

Make Customers More Important Than the Process

Company policies and practices are often created for company efficiency rather than customer comfort. Companies truly need to make their people more important than processes and policies. Jeanne brings this up with the following question, “Do you walk customers out of trouble spots? When the power goes out, are you there immediately saying, ‘we know your power’s out and here’s what’s happening.’” Again, Jeanne reminds business owners that perspectives, ideologies, and processes need to change in order to best help those the company was created to serve.

The Benefits of Doing an “Audit” of Company Policies

At the beginning and end of the podcast, Jeanne talks about how bad customer service policies and perspectives often seep into companies; compromises are made as the company grows. That said, there is a need to look into businesses and do an audit to find the negative practices that have seeped in. Customer and employee trust is something that is essential and must be preserved. Trust will ensure that the company stays true to its vision and purpose. Jeanne shares the following advice and experience:

“Every relationship that’s created between a customer and a company comes because customers have to trust us. But are we trusting them in return? Read your fine print, do a trust audit. Is there anything in there that says we don’t trust you? Do you have any gotcha moments? The Columbus Public Library … got rid of late fees because their whole purpose is to help young minds read.”

The Columbus Public Library is just one example of an organization that did an audit of their policies and made changes to better serve their customers. Jeanne recommends that businesses do “trust audits” and take the time to change policies often. When they do so, they will be more successful and have more loyal customers.

To learn more about Jeanne’s four pillars and successful customer service tactics that positively affect businesses, check out the Customer Service Secrets podcast episode, and be sure to subscribe for new episodes each Thursday.


Listen Now:

Listen to “The Standard for How to Treat Your Customers w/Jeanne Bliss @Customer Bliss” on Spreaker.

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Full Episode Transcript:

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
Alright, welcome everybody to today’s podcast. We’re going to be talking about customer experience, how to do it, why to do it, some of the details around that. To do that, we brought on Jeanne Bliss. She is currently the CEO and founder of Customer Bliss. In addition, she is the five time Chief Customer Officer and what some people refer to as the “Godmother of Customer Experience.” I love that one. That was fun. That was really fun. Um, Jeanne, thanks for joining. How are you?

Jeanne Bliss: (00:41)
I’m great, how are you?

Gabe Larsen: (00:43)
Yeah, fantastic. I appreciate you coming on and we were talking pre-show, trying to learn all that I can about customer experience and I think Jeannie, obviously has a lot of background —

Jeanne Bliss: (00:51)
It’s Jean actually, if that’s okay with you. Yeah, that’s okay.

Gabe Larsen: (00:55)
Okay. I apologize.

Jeanne Bliss: (00:57)
No worries! It’s spelled Jeanne but I say Jean, just to confuse the heck out of everybody.

Gabe Larsen: (01:02)
I’ve got some of that going on. I’m Gabriel and I go by Gabe. Some people say Gabby, so I know the feeling.

Jeanne Bliss: (01:09)
Hey Gabby. There you go. Yeah.

Gabe Larsen: (01:10)
That actually happened yesterday in the taxi. He’s like Gabby, I’m like, whatever. I’ll just take it.

Jeanne Bliss: (01:15)
What’s on your Starbucks coffee cup?

Gabe Larsen: (01:18)
That’s exactly right. That’s exactly right. So, anything you’d add kind of to your background? I mean, I did short and sweet. Anything you’d add for the audience, Jeanne?

Jeanne Bliss: (01:27)
Sure. I was a practitioner for 25 years before I started books and coaching leaders around the world. And so I’ve lived in reality and I think that’s what people gravitate toward: that my stuff is not pie in the sky, it’s not kumbaya, it’s been field tested, has to be real and that’s really also why I keep changing how I write about this work. So it’s accessible.

Gabe Larsen: (01:59)
Hmm. Yeah. I mean the practitioner always makes a difference rather than someone who just talked about it or consulted on it. So I think that gets into the talk track that I wanted to dive into today. We were talking a little bit about one of the books that you’ve written and this is, “Would You do That to Your Mother?” So, start big picture for us. Can you talk just a little bit about why the book, why you want to get it, what it’s a little bit about it, etc.

Jeanne Bliss: (02:24)
Absolutely. Yeah. So this is my fourth book and what’s happening with customer experience, like anything that becomes something that is in the conscience and everybody wants it or it’s in their top two things for their CEO is now, suddenly, we have a capacity to do two things. Overcomplicate the heck out of it or water it down so much that it means nothing. So it means either nothing or everything and we make it more and more complicated and or inaccessible. What’s happening with customer experience is that both of those things are happening and while we’re getting into journey mapping and all of these other things, which are fine, we’re also missing the basics of what’s still impacting each of us as human beings, as we try to get value from the companies who serve us. And so this is a fast track to identify those common things that affect our lives that either don’t show us honor or trust or don’t honor or trust our employees. And so it’s broken into four categories. You’ll recognize them as a human being, and a customer, and as our leader — leading service or support people and serving customers — you will recognize these are the four major areas that you have the opportunity to impact. And so that’s why I wrote it, to make it very accessible and fast track people into this world.

Gabe Larsen: (03:50)
And then, from a title perspective, I do have to ask, how did you — where’d that one come from? I mean it’s certainly unique.

Jeanne Bliss: (03:57)
So, originally the working title was “Why Oh Why?” Why oh why do companies charge $7 for a bottle of water? Why oh why, la la la. And at one point in time this, “would you do that your mother” jumped in because what’s happening is in a well-intended or not deliberate way, we’re letting things seep into our business that we wouldn’t do to the people that we care about in our lives. And so this is a conscience question. It goes all the way back to the beginning of my career when I went to Lands’ End and was training 2,000 phone operators. So, and back then, Gary Coleman, the founder of Lands’ End actually called me the conscience of the company. And so this is a conscience question and you can ask this question at every level. You can ask it personally as you’re interacting with the customer, maybe you’re not in charge of that policy.

Jeanne Bliss: (04:51)
But, would you deliver the know the way that you might consider delivering it to your mother or whatever it is. When you’re in the middle of an organization creating processes that put customers through 50,000 hoops, it kind of forces you to think about that. At a leadership level it gets you into those more strategic decisions about how you make the money in the business.

Gabe Larsen: (05:16)
I love it. I love it.

Jeanne Bliss: (05:16)
So, yeah, and again, back to my thing of simplifying. Whether you’ve got a major customer experience transformation effort on, or you’re leading a big part of the organization, we can start asking, would we do this — it doesn’t have to be your mother — somebody you love. Would you do this to your favorite aunt? Would you do this to your uncle? Would you do this to a friend or a neighbor —

Gabe Larsen: (05:38)
Keep it close, keep it personal.

Gabe Larsen: (05:38)
It’s just about to humanize. There’s this person at the end of every decision that we make. Full stop.

Gabe Larsen: (05:46)
Yeah. Yeah. So, okay, so that’s the title. That’s one of the reasons you bought the book, or you wrote the book. These pillars that you talked about. Let’s dive into those just a little bit and talk about how that can then be translated into changing the way we do customer service. Maybe start at the top.

Jeanne Bliss: (06:01)
Sure. You bet. So four categories or four pillars of the book. The first one is around enabling your employees to rise. We do things inadvertently inside our business that gets in their way. We wire them into policies that they have to constantly feel bad about enforcing. We don’t trust them to make the call —

Gabe Larsen: (06:23)
All true, all true.

Jeanne Bliss: (06:23)
We don’t trust them in the moment with data about customers. We don’t give them the opportunity to make a call or extend grace or exceptions without touching the desk or passing it on or escalating five times. The way we hire; we’re hiring perhaps for technical skills before we hire for care. We inadvertently put our people in the position of being survey score beggars. We’re coaching them to score versus coaching behaviors. On and on, giving them — and there’s this other thing around spirit in an organization. It’s what I call congruence of heart and habit. Are you letting people live their values at work? Are we letting them be memory makers or are we making them watch a clock and tick off boxes that there’s no way that they can go beyond checking boxes? Are we giving them the ability to put themselves in the moment and leave the customer with a memory that is, “Man, I want to deal with these people again.”

Gabe Larsen: (07:28)
Wow. Wow. I mean, as I hear that list, I’m just like, wow. That’s so many things that we can do right or do wrong. If you were coaching an organization, is there a place you typically say, this is where you should start on enabling employees? Like make sure you hire right or make sure you get this part first because it’s kind of the baby step to getting, enabling employees to really rise or thrive.

Jeanne Bliss: (07:54)
Yeah. A couple things. One is be really clear about who you’re hiring for. What kind of humans do you want in your organization and how do you want to show them, help them show up. The second one is around trust. You know, trust given is trust received. If we have — if we’re hiring the right people, then we should also be identifying the places where customers are constantly hitting their wall, hitting their head and asking for exceptions. Two things here: help your people identify stupid rules or policies and be open to that feedback. Reward people for bringing it up and then get rid of them. So that’s number one. And number two is trust your people. This is what I call leadership bravery. Trust your people in the moment to make the call. For example, um, you know, one of the things I say in the book is, “would you turn down your mom’s warranty claim three days out warranty?” Well, you don’t want to, but we force our people into these black and white things.

Jeanne Bliss: (09:02)
But what about if we were brave? So we hire them for the right reasons. We know they have these humanity plus technical skills and then we give them —

Gabe Larsen: (09:10)
Empower them a little bit.

Jeanne Bliss: (09:10)
— enough. It’s not blind trust. This isn’t about do what’s right, the customer’s always right. Everybody gets confused. This is about putting them in a position of growing the business by making the right call. You may be — if you’re turning down somebody’s warranty in three days out of warranty, it may be a 20 year five line of business customer. Goodbye Charlie and the customer’s gone, man, we’re dumb. The employee’s going, man, we’re dumb. And I didn’t want to do that, but I was forced to do that after I escalated it five times. So we’re doing two things here. What we have done is condition our customers — think about your own life — to do what I call service roulette. You ever call an airline more than once?

Gabe Larsen: (09:59)
No comment, no comment.

Jeanne Bliss: (09:59)
Okay, so you call it — I love the airlines but the poor airlines people are put through the ringer– call an airline more than once, you reach a policy cop, probably a nice smart person, but they’re just going to spout it off. And so what we do is we hang up and we dial again, hoping for somebody else every time we call. Every one of those calls, what does that do? That costs the company money.

Gabe Larsen: (10:24)
That costs tons. Yeah.

Jeanne Bliss: (10:26)
So service roulette is costing the company money. Not trusting our people is costing the company money, not only in customers who depart, but in employees whose spirit is diminished and don’t want to be a part of: A, a company that makes such dumb black and white rules that they’re forcing their best customers away, and a company that doesn’t trust them to make the call in the moment.

Gabe Larsen: (10:51)
Yeah. Wow. Wow. Interesting. I like that. You call it service roulette? Is that what you said?

Jeanne Bliss: (10:58)
Yeah. Service roulette.

Gabe Larsen: (10:58)
Boy do I play that. I was laughing because I, yeah, I do that too often. I didn’t know there was a name for it. I thought I was being sneaky.

Jeanne Bliss: (11:07)
I made that up. So in that — those were the top eight things. Do we honor the dignity of customer’s lives? Do we show up [inaudible] company? Do we trust the frontline to extend grace? Number two, do we hire people with the ability to care? Three, are we doing any survey score begging? Four — our people hate that — do we check our bias at the door? We’ve got built in biases. We have to coach people. Five, do we have any rules that inhibit people’s ability to serve? Six. Do we reward for congruence of heart and habit? Seven, and do we nurture memory makers?

Gabe Larsen: (11:42)
Wow. Wow. Interesting. Okay. So that’s all about enabling employees. You’ve got a whole eight kind of recipe process. So let’s go number two now. I want to see if we can get through a couple more. We may not get through all four pillars, but the next one was easy, right? Make it easy to do business with you. How do you think about that one?

Jeanne Bliss: (11:59)
I actually call that chapter, because this is a mom book, “Don’t Make Me Feed You Soap.”

Gabe Larsen: (12:05)
Now for someone who actually — I have this one memory, you’ll love this Jeanne. I have this one memory. I’m walking home from a church activity and someone did something and I swore at them and my mom happened to be right there and boy did she feed me soap. So I have eaten soap before.

Jeanne Bliss: (12:22)
I have eaten a lot of soap.

Gabe Larsen: (12:23)
It tastes terrible.

Jeanne Bliss: (12:25)
It’s terrible. Yeah. Okay, so this is all about those things that roll under the feet of the call center people. Now here is how you can solve this everybody out there; start keeping track of how many times you get this. Okay? Do you honor customer’s time in their clock, right? How often has an airline pushed away from the gate and caused an on time departure? Or are you waiting for a refrigerator repairman and waiting for half a day? Are you put in a queue? So are you building your business on customer time or your time? You take the monkey off the customer’s back and if you’ve ever tried to put in an insurance claim or lost your luggage and you call and instead of helping you, the company gives you homework.

Gabe Larsen: (13:14)
Sounds like you’ve been through this. I think we’ve all been through this before.

Jeanne Bliss: (13:16)
Do we let customers depart gracefully? You know? Remember that whole AOL thing a million years ago? Well, we won’t get into it, but a graceful departure can lead to an eventual return. But if you badger your customer, you penalize them for leaving early. You do all of this handcuffs stuff, the customer is going to say, well now of course I left ‘because they’re meanies.

Gabe Larsen: (13:44)
Yeah, boy, boy. It seems like a lot of people do that. That’s a bad one. That’s a big problem.

Jeanne Bliss: (13:50)
Do we make it easy to get help? Are you getting old waiting on hold? Do we make our customers feel like a hot potato passing them around? These are the things that affect all of our lives. Would you send your pile of paperwork to your mom?

Gabe Larsen: (14:10)
Yeah, I probably wouldn’t. I don’t know if she’d do it.

Jeanne Bliss: (14:13)
So those are some of the eight in that section.

Gabe Larsen: (14:16)
Yeah, I love that. So, number two is all about we gotta make sure we do — It’s easy, but I love that. Looking at it from the customer’s viewpoint, not just our own. Because we’re always like, well, this process is very efficient, but might be efficient for you. It’s not efficient for the customer. Okay.

Jeanne Bliss: (14:30)
In fact, I call this section, build your respect delivery machine. Are you respecting? Does the customer at every turn feel like you’re respecting them?

Gabe Larsen: (14:39)
Yeah. Yeah. That’s a great way to summarize it. Okay. That’s pillar two. Where do you go for pillar three?

Jeanne Bliss: (14:45)
Pillar three is around rebuilding your business from the customer standpoint. I call it put others before yourself.

Gabe Larsen: (14:53)

Gabe Larsen: (14:55)
Does your hello focus on people or process? Ever walk into a reservation center or a hospital? You’ve got somebody, eyes down, and they hand you a clipboard, right? Or a business room or whatever, or you call to put in a claim. Instead of saying, Hey, how are you? They say, what’s your policy number? Or order number, ticket number? What — the hello? That is the first impression of who you are as people. Do you allow for human error? If you return that rental car three minutes late, are you going to get dinged for half a day?

Gabe Larsen: (15:38)
Yeah. Do you put — I like that. Do you put people first or put people above process?

Jeanne Bliss: (15:46)
So it’s redesigning. Do we build for customer emotions? I have a story in there about the emotional and health impact of the hospital gown. People actually get sicker in hospitals wearing those crummy gowns where you can see your underpants. You know what I mean? Cause you’re cold. You’re cold and vulnerable and all this other stuff.

Gabe Larsen: (16:08)
It’s a terrible experience. It’s a terrible experience. You’re right.

Jeanne Bliss: (16:13)
Do you walk customers out of trouble spots? When the power goes out, are you there immediately saying, “we know your power’s out and here’s what’s happening.” So, it’s a bunch of prodding in this section to have you rethink what you, how you run your business.

Gabe Larsen: (16:29)
And that literally is, I mean, it’s examining almost the entire process beginning to end and seeing where you can put, not you first, but the customer first.

Jeanne Bliss: (16:38)
The starting point of the work is different.

Gabe Larsen: (16:40)
Yeah. Okay. Got it. Okay. Then number four, where do you go for number four? We’re cruising now.

Jeanne Bliss: (16:45)
We’re cruising. It’s called take the high road. It’s getting rid of the bad legacy practices that seep in. Again, we’re good people, but we let crummy things seep in. So for example, are we honoring customers as assets? Ever see your phone company give a better deal to a new customer then you spin around?

Gabe Larsen: (17:07)
TV. My TV company. Yeah.

Jeanne Bliss: (17:09)
I’m a multi million miler flyer of an airline and I lost my club card. You don’t need them anymore. But at the time I said, “could I have another club card?” And the woman looked me in the eye and said, “that’ll be $30 please.” We make the silliest decision. Does two way trust define our actions? Every relationship that’s created between a customer and a company comes because customers have to trust us. But are we trusting them in return? Read your fine print, do a trust audit. Is there anything in there that says we don’t trust you? Do you have any gotcha moments? The Columbus public library, metropolitan library got rid of late fees because their whole purpose is to help young minds read. But if you’ve gotta return a book before it’s ended because you’re worried about the late fee, we’re completely getting in the way.

Gabe Larsen: (18:05)
That goes against your whole policy. Yeah. Your whole vision.

Jeanne Bliss: (18:09)
Your whole reason for being — yeah. Or gullibility tax. You bring your car in to have the radiator looked at it and there’s now a $2,000 bill that’s presented to you because it’s an opportunity. And then a nickel and diming, you know, who loves cracking open a $7 bottle of water in the middle of the night, charging you what you can. And is your apology your finest hour. I know. It’s funny.

Gabe Larsen: (18:40)
The seven dollar bottle of water. Oh my goodness. I hate that experience.

Jeanne Bliss: (18:44)
The cool thing about this book is I actually hired a cartoonist. So there are cartoons for every single one of these.

Gabe Larsen: (18:50)
Well it’s, that’s so much. Yeah. I mean there’s a lot to take on and I appreciate you kind of running through in a fairly quick manner, the four pillars. As you take a step back and you think of the audience, you’ve got these customer service leaders trying to nail down some of these principles. Where — the baby steps or the place to start. Do you typically go to pillar one, two? How do you coach people? Guys, there’s a lot, but start simple. That’s why I loved your message. Start simple, start here. Where do you kind of go?

Jeanne Bliss: (19:17)
I would definitely do the start with the first chapter because I say what’s on the inside shows up on the outside and the chapters around employees and it’s called “be the person I raised you to be.” [inaudible] things around them, silly momisms. And there’s a quiz at the end of the book and if you want to, I will give you the first chapter and the quiz that you can put as a link that people–

Gabe Larsen: (19:40)
We’ll absolutely do that. Let’s get that after. And that probably answers my next question. So if someone wants to learn a little bit more about you and some of the things you do, the book, we’ll certainly put those notes in. Anywhere else you’d pushed them to take the next step in learning about Jeanne and what you do.

Jeanne Bliss: (19:55)
Sure. Definitely. I have a really simple website. I married a guy named Bliss, so my website is Customer Bliss, B L I S S happiness.com. I did not make that up. Customerbliss.com and there are all kinds of goodies and things. There’s a whole section called downloads. Many, many gifts for you to drive this work inside your business.

Gabe Larsen: (20:17)
Okay. All right, well Jeanne, really appreciate you taking the time for the audience. I’m sure you’d love that. Great information, high level, tactical, strategic. Hopefully you enjoyed it. Have a great day. Jeanne, thanks again for joining.

Jeanne Bliss: (20:30)
You’re welcome. Thanks. And Hey everybody, keep pushing that rock up the hill.

Gabe Larsen: (20:33)
Take care. Bye bye.

Exit Voice: (20:42)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


What is Punk CX and Why Should You Care with Adrian Swinscoe

What is Punk CX and Why Should You Care with Adrian Swinscoe TW

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In this episode of Customer Service Secrets, Adrian Swinscoe joins Gabe Larsen to discuss his philosophies and strategies for improving the customer service experience. For the last 25 years, Adrian has been consulting individuals and companies on their marketing and business development, customer insight, and customer service spaces. He has a passion for helping businesses create positive spaces for their customers and helping organizations simplify their strategies to make them more effective. Adrian is also the author of How to Wow and Punk CX, the latter being one of the subjects of discussion in this episode of the podcast. Listen to the full episode below.

What is Punk CX?

Punk CX is a new way of looking at customer service that Adrian thought of back in 2017. He was inspired by the emergence of punk music in stark contrast to the prog-rock era of the 1970s, at which time punk music became a statement to go against the norm. The creators of punk saw prog rock as becoming too measured and overly technical, and Adrian sees a lot of similarities in the customer experience space. Adrian believes that companies were getting too meticulous with their strategies. When instead, they needed to develop more of a punk mindset. Adrian describes this mindset by stating, “It was a very DIY, democratic, back to basics approach. It was more about mindset and daring to be different and being okay that not everybody would like it.” If companies can drop the technicalities and start committing to action-based solutions in their customer service, they will have a greater capacity to help their customers and grow their business.

Connecting Strategy with Business Objectives

To illustrate this point, Adrian shares an interesting story about the interviews he has had with business executives. First, when executives are asked what their customer service strategies are, they repeat all the typical buzzwords; such as omnichannel, effortless, digital, connected, etc. – all responding in similar ways. When asked follow up questions, their answers are even more vague. Adrian recalls, “the second question I say is . . . tell me how your strategy supports and enables the delivery of the overall business’s strategy and overall business’s objectives. And then you get some blank faces.” Overly technical customer service strategy does nothing for the business or the customer if they aren’t aligned with the business objectives. Too many organizations are draining resources on little details that aren’t connected to their business or customers. By simplifying strategies and connecting strategy and objectives, organizations will find their business growing and their customers happier and more satisfied.

How to Simplify and Amplify the Customer Service Experience

Most organizations aren’t listening to the feedback their customers give them and it’s hurting their business. Adrian quotes a study that states “only 20% of them [companies] have actually delivered and developed the resources, the content, the knowledge bases, the facilities and the tools to help customers help themselves.” While most companies know that their customers want to help themselves and don’t want to jump through the customer service hoops, they aren’t investing in finding solutions. Adrian’s recommendation for organizations to simplify and amplify the customer experience is to do the necessary research and start implementing it.

The next challenge for companies to develop punk CX is to keep evolving with their consumers. In a remarkable comment about the true nature of customer service and the need to have a punk attitude about it, Adrian explains:

“People’s queries and inquiries and problems and their questions, they change and evolve over time. So that content needs to be managed and maintained and upgraded on a consistent basis. And so, you need to make an ongoing investment in that if you want to keep ahead of that curve. Because absolutely guaranteed, your products, your services will evolve and therefore the problems or the questions or the queries that your customers will have will evolve as well.”

By researching and continually investing in the customer experience, companies will stay ahead of the curve and give the consumers exactly what they want, the means and tools to help themselves.

To learn more about punk customer experience strategies, check out the Customer Service Secrets podcast episode, and be sure to subscribe for new episodes each Thursday.


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Full Episode Transcript:

What is Punk CX and Why Should You Care | Adrian Swinscoe

Into Voice (00:04):
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen (00:11):
Alight, welcome everybody to today’s podcast. We’re going to be talking about a little different perspective on how you should be looking at customer service. And to do that, we brought in Adrian Swinscoe. He’s actually the author of a couple books. One that I’ve come across is How to Wow and we’ll be talking a little bit about that today. Then, there is actually another one that came across; we were talking a little bit pre-show, it’s called Punk CX and we’re going to start with that one. He does run his own show at Adrianswinscoe.com. But I’m excited to have you on the show Adrian. How are you?

Adrian Swinscoe (00:49):
I’m great Gabe and nice to see you. Nice to speak to you. Nice to be on your show. Thanks for the invite.

Gabe Larsen (00:56):
Yeah, it’s been refreshing. Again, I did just kind of stumble across Adrian if I’m honest, and I liked some of his content, so I wanted to interview him for this podcast. But this “punk CX” thing definitely jumped out so I want to dive into it. But, before we do Adrian, can you tell us a little about yourself and kind of your background?

Adrian Swinscoe (01:15):
Okay. So quickly, I work in this service experience sort of space and have been in this sort of space for, crumbs, probably somewhere in the region of 11 or 12 years. I’ve been, I have a background as an economist, a teacher, I worked as a business developer in a corporate environment doing an innovation related sort of projects, worked as a general, sort of like a freelance, independent consultant. Nearly bought a steel company at one point. So I nearly became a steel magnet, which was a near miss. Unfortunately, I wanted to be able to wander around with a big hat and a cigar, but that’s obviously in a parallel universe. But right now, I am in this sort of space. My, I describe myself as a lover of simplicity and the human touch with a really useful bit of technology thrown in. And the thing that I really am interested in, and focus on, is how do we build organizations that deliver better outcomes for both their customers and their people.

Gabe Larsen (02:27):
Yeah, yeah. I love it. Great introduction. I’m sorry to hear about the steel mill. Maybe in a future life to your point you will be able to do that.

Adrian Swinscoe (02:36):
You’ll see me on a sidewalk somewhere kind of like smoking a big fat cigar.

Gabe Larsen (02:41):
I’m just not picturing it, but it’ll take me a little time. I’ll get there. So let’s dive into this. That was a great kind of intro of you. I was a little bit taken back as you were talking about this thing of “punk CX.” I was like, Whoa, that feels, truthfully different than I think a lot of people have framed it. Give me kind of the why, what, how. Why “punk CX,” and what does it mean?

Adrian Swinscoe (03:05):
So I’ll give you the short, I mean, I will try and make it as short as possible. About, back in December, 2017, you know, as is my one from time to time, I was in the pub with my friend O’Sheen drinking a couple of pints of Guinness and I was having a bit of a rant about the state of the experience and service and experience sort of space. And I was getting frustrated by the idea that we weren’t seeing really significant material kind of changes in the experience that one; companies were delivering, and two; that their customers were getting. And I was almost a bit like banging on the table, just, I wish some people would do something a bit more punk. And when I say punk I don’t mean the green hair and piercings and kind of like destruction and loud music and raging at people.

Gabe Larsen (03:58):
Right, right.

Adrian Swinscoe (03:59):
I mean, just doing something which dares to be different. It’s a little bit kind of stand out from the crowd, that’s a bit more experimental, that is a bit of a bit of a change. That idea sat with me for about six months and in the summer of 2018 I started to think about it, started to think about that a bit more deeply. And it made me think about where does, where did punk come from? Now punk came, exploded out of the back of prog-rock in the 1970s. Now prog-rock, for anybody that is a music fan, it was popular. It was also accused of being overly elaborate, somewhat self-indulgent, kind of overly technical. You almost needed a PhD in music to be able to be part of a prog-rock band. In some respects, and in danger of disappearing up its own arse — i.e. it was more interested than it was, maybe, in its fans.

Gabe Larsen (04:59):
I love it.

Adrian Swinscoe (05:00):
And then punk exploded out of the back of that with this idea of like going, well anybody can make music. And it was a very DIY democratic, back to basics approach. It was more about mindset and daring to be different and being okay that not everybody would like it. And I thought that’s cool, but then I thought, you know what’s funny, it’s like the service and experience space I think is starting to exhibit some of the same characteristics as prog-rock did in the 1970s — i.e. It’s becoming overly specialized, functionalized, measured, certified, professionalized, blah, blah blah, yada, yada, yada. All that sort of stuff.

Gabe Larsen (05:37):
It’s over complicated. Yeah, over complicated so many things. Got it.

Adrian Swinscoe (05:40):
And also get into the same point where it’s becoming more interested in itself then actually the people that are supposed to benefit from it — i.e. our customers. And that sort of explains a lot of the lack of real movement and improvement in this whole space, particularly for employees and customers.

Gabe Larsen (05:56):
Got it.

Adrian Swinscoe (05:58):
And I thought, well, if that’s true, then what would a punk version of CX look like? And I was a bit like, that’s cool. Well let me figure something out. And then, what it spoke to was this idea of like trying to inject a bit of urgency, a call to action into the experience space to say, stop over complicating things. Stop, get out from behind your desk and your spreadsheets and your dashboards and all these different sort of things and do stuff that really matters to your customers.

Gabe Larsen (06:34):

Adrian Swinscoe (06:34):
And so I wrote the book, it’s more like a fanzine or a manifesto. I call it a visual slap in the face for the customer experience industry because it’s not like any other business book in that it’s not 50,000 words of black ink on white paper. It’s like a full color, short pithy to the point. It’s almost designed like an album and that rather than having chapters, I talk about having a track listing. So you end up with this, here’s a title, here’s a few short words that kind of basically makes the point and then ask a couple of questions or maybe just makes a point that says, right, now crack on, get on with it. I’m more interested in better action that produces better results. That’s it.

Gabe Larsen (07:17):
Yeah, yeah. It does seem like I’m still newer to the space. Your point on just kind of a lot of talk, a lot of over complication and just this idea when you kind of deuce it to me, you know, let’s simplify, let’s focus on what matters most. And I mean, again, some of the other things on the outsider, they’re important, but they’re not as important as what the goal of this whole function is; that is obviously to make the customer’s life easier and better. So, as you’ve kind of taken that idea of “punk CX,” I assume you’ve probably seen this in different areas, you’ve consulted different companies. Let’s go into the, not necessarily the tactical, but how would you start thinking about some ways to clear that crap out and just simplify CX or the experience that customers are having with different brands?

Adrian Swinscoe (08:12):
So one of the things I would say, where I would really start, cause you can get a little tactical and you start fiddling around in different sort of things. I think the one thing I would say is that, I think we actually have to start fundamentally at a strategic kind of level. Okay. And the thing that strikes me, and this is where we’re, I think we’re getting caught, it’s creating a lot of problems, is that — I’ve met a bunch of people and particularly leaders, directors, managers in this sort of space. You turn around to them and go, right, fine. I want to ask you a couple of questions. And the first question is, what’s your experience strategy? And they go, right, okay. And they go, we want to create an effortless, digital, connected, omnichannel, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah.

Gabe Larsen (09:02):
Buzzword, buzzword, buzzword,

Adrian Swinscoe (09:04):
Experience. And then it goes like, you’ve got a room of like 50 people and pretty much everybody’s saying the same thing, right? And you go, brilliant, okay, thank you for that. I’m not going to make you wrong just yet, but I will thank you for your answers. And then the second question I say is go, okay, now, tell me how your strategy supports and enables the delivery of the overall business’s strategy and overall business’s objectives. And then you get some blank faces.

Gabe Larsen (09:39):
You get some blanks. Yeah, I can see that.

Adrian Swinscoe (09:42):
And then you end up with this kind of thing with people, and then you’ve got blank faces and then you get some twinges of panic and nervous twitches and stuff going on because people know. Then they’re kind of like, oh, okay. It feels really obvious, but actually that’s the thing. If you’re not connected to what the business is going to really do, then — in time, and I think that time is actually starting, is coming right now, is that people start to challenge the worth of what you’re doing and why you’re doing it. Right? So that’s one of the big questions is because what we’ve seen is this proliferation of activity, whether it’s like this or that or the other; I don’t want to name and shame any particular areas.

Gabe Larsen (10:32):
Right, right.

Adrian Swinscoe (10:32):
But yet out of all this explosion of activity, you got to look at it and go, yeah, but none of it’s all connected. None of it makes sense. None of it is driving positive changes and outcomes that make a difference to the business and therefore make a difference to customers.

Gabe Larsen (10:48):
Yeah. So, one is that idea that we get so caught up in the minutia sometimes, we need to make sure that we are strategically aligning with what the business wants.

Adrian Swinscoe (10:59):

Gabe Larsen (11:03):
It’s simple but it’s true.

Adrian Swinscoe (11:04):
I know, completely. It’s a bit like, you have to be measured and considerate and everything that you can do because ultimately, it’s about delivering value for both the business and the customers.

Gabe Larsen (11:15):

Adrian Swinscoe (11:16):
It’s not about what you want to do. It’s about what is required.

Gabe Larsen (11:20):
Yeah, yeah, yeah.

Adrian Swinscoe (11:22):
And right now we’ve got this elaborate, nest of things; many of which don’t make any sense. So it just feels an expensive mess if you’re an exec — a C level executive looking down at this and going, we’re spending all this money, what are we getting?

Gabe Larsen (11:36):
What are we actually getting?

Adrian Swinscoe (11:38):
And I am kind of getting letters and emails and tweets and all this stuff coming from customers going, what the? I’m spending all this money and I’m trying really hard and they’re still bombarding me with all this crap.

Gabe Larsen (11:54):
All this kind of nonsense. Right? Yeah. Because it just doesn’t work for the customer ultimately. Got it. Got it. So, one is strategy. The other thing I wanted you to kind of click into, you and I talked about this a little pre show, but there was some research you came across and it did feel like another one of those points that was like, duh! Why don’t we do the simple stuff versus making the complicated stuff you want to touch on that briefly?

Adrian Swinscoe (12:18):
Yeah. So, one of the big things that really, really frustrates me is this idea that we know that customers don’t really want to get in touch with us, they don’t really enjoy the idea of the prospect of having to phone and then navigate a phone tree, or send an email and wait for a response, to do all that sort of stuff. So, if you have a problem that you think is a reasonably simple problem, we like to help ourselves. Right? So even my mom and dad who are in their seventies will probably like to do some research and figure out how to do something, try to figure out how to do something first before we try and involve somebody else. Now, the interesting thing is that there’s some research that says that somewhere in the region of 60%, if not more, of all inquiries into help desk, support teams, contact centers, whatever, come about for two reasons. One is that your customers can’t find what they’re looking for on your website or you’ve just failed to answer their question the first time around and you sort of messed it up. So you’ve got this kind of 60% of your inbound demand for help can be solved either by you being better at solving things the first time around, or two, helping customers help themselves. Interestingly, Zendesk, who is one of your competitors, so asked for permission to talk about this beforehand, they produce a piece of research, which said something in the region like 50% of all companies, north of 50% of all companies know this, they understand this, yet only 20% of them have actually delivered and developed the resources, the content, the knowledge bases, the facilities and the tools to help customers help themselves.

Gabe Larsen (14:15):

Adrian Swinscoe (14:15):
And I’m going, my mind is exploding here. I’m like, good people. Listen to your customers, hear what they’re saying and do the bloody work.

Gabe Larsen (14:23):

Adrian Swinscoe (14:25):
Cause I’ll tell you what, it will make your life easier.

Gabe Larsen (14:28):
Yeah. Yeah. What do we — I mean I love the point because again, I think that’s kind of that, it’s just the simplicity of CX. We get caught up in all the things. Would you say — that 20% number, give or take, it’s very interesting. Well, why don’t we? This does drive back to this “punk CX” thing. We just, we get caught up in all the minutia and we lose that simplicity. That’s the whole point.

Adrian Swinscoe (14:53):
I think the thing that is, that’s part of it. I think there’s also the other part of it is that it requires us to do different things.

Gabe Larsen (15:00):

Adrian Swinscoe (15:01):
And the different things include being able to develop, manage, and maintain content that responds to our understanding of what customers want.

Gabe Larsen (15:18):

Adrian Swinscoe (15:19):
Naturally, an organization will look and go, well, developing content requires people with different skills. Whether it’s the data analysis and listening skills and then the producing of the content and the quality management and the digital uploading and thereof et cetera, et cetera. But, that requires people and that requires a cost.

Gabe Larsen (15:46):

Adrian Swinscoe (15:46):
Right. And what they’ve got to do is they’ve got to try and manage off. We’re making an investment here in terms of the development thereof of that content against how much we’re going to save on the inbound inquiries, right? And you’ve got to get that balance. Now, the trap that people fall into is they’ll go, Ooh, we’ll develop that content and then that demand is going to disappear. I’m like, no! Because here’s the thing, people’s queries and inquiries and problems and their questions, they change and evolve over time.

Gabe Larsen (16:20):
Right, right.

Adrian Swinscoe (16:20):
So that content needs to be managed and maintained and upgraded on a consistent basis. And so, you need to make an ongoing investment in that if you want to keep ahead of that curve. Because absolutely guaranteed, your products, your services will evolve and therefore the problems or the questions or the queries that your customers will have will evolve as well.

Gabe Larsen (16:48):
I love it.

Adrian Swinscoe (16:48):
And so if you’re not developing that knowledge consistently, this demand here, this inbound query demand may go down a little bit, but it may spring back up again as you do a new product launch. It’s an ongoing investment. You’ve got to try and get that balance there.

Gabe Larsen (17:06):
And people just really struggle finding that balance. That’s a really interesting insight. I liked that. I liked that a lot. Well Adrian, man, there’s always more to discuss, always more to go through. We didn’t even get to the, to the 60, what is it, 63 principles in the “Wow” book.

Adrian Swinscoe (17:23):
68 in fact.

Gabe Larsen (17:24):

Adrian Swinscoe (17:25):
I did want it to be 69, but my publisher wouldn’t let me go there.

Gabe Larsen (17:31):
That’s a great way to end this show. We may have to bring you back to dive into maybe not 69, but a couple of these, “How to Wow” customers going forward. But I do appreciate you jumping on. If someone wants to learn a little bit more about you and understand more about Adrian Swinscoe, where should they go?

Adrian Swinscoe (17:49):
Just going to look me up on Adrianswinscoe.com , Which is A D R I A N S W I N S C O E.com. You’ll find everything you need over there.

Gabe Larsen (18:00):
Well, again, really appreciate it, I love the simplicity message. I think it’s something we need. So thanks for taking the time and for the audience, Have a fantastic day.

Adrian Swinscoe (18:08):
Dude, thanks Gabe.

Exit Voice (18:16):
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


The Five Key Elements that Drive Customer Experience with Mary Drummond

The Five Key Elements that Drive Customer Satisfaction with Mary Drummond TW 2

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Mary Drummond, CMO of Worthix, a specialist at improving customer experiences, joins Gabe Larsen on the Customer Service Secrets podcast to discuss the fundamental elements of building beneficial relationships between companies and customers.

The Value Of Time Well Spent

Mary shares an experience she had during a podcast interview with Joe Pine, the decorated author of the book The Experience Economy. As they discussed customer experience, Joe said, “Mary, when people talk about customer experience, they’re talking about something entirely different than what I’m talking about.” When most people talk about customer experience, they’re actually referring to customer service, customer satisfaction, customer relationship, customer success. However, Joe’s understanding of customer experience is centered on the value of “time well spent”. Mary adds to this point, stating, “it’s taking your time to create an experience out of that purchase.” From this perspective, customer experience can be seen in terms of the economic offering of an experience.

Starting With The Customer’s Needs

In order to create these experiences, one of the best starting points is by going through the process of identifying the customer’s needs and expectations. While the advancement of innovation and technology are continually changing the ways in which expectations are expressed, many of the fundamental needs remain the same. Mary shares an example of the basic need of transportation to convey this point. Before the invention of cars, people still needed to get around, but they either walked, rode a bicycle, or used horses to do so. “Now, as value propositions changed, innovation and technology came around. That need was exactly the same, but the expectations of the market started changing. And as the expectations changed, companies adapted to this ever-changing speed of the customer and provided more and more innovation in the form of automobiles.” As a result, Mary claims that it is the company’s job to identify “the need of the customer according to their ever-changing expectations.”

Building on this, the customer’s experience is established through each of the interactions they have with a company. However, these interactions aren’t limited to the moment of purchase, which is the way many companies see it. The interactions customers have with companies and brands begin as soon as they realize their need, and lasts past the point of purchase. In this context, Mary defines the experience as “the sum of the interactions that work together to provide a solution to the need according to the customer’s expectations.”

The Five Drivers of Customer Satisfaction

Mary offers five of the most important drivers that influence purchasing decisions and customer satisfaction. These main determining factors are “price, quality, relationship, social proof, and brand identification.” All of these hold value to some extent when someone is deciding which food to eat, which clothes to wear, or how they are going to spend their day off. “Depending on how they weigh out in a customer’s mind, you can either increase one in order to improve that perception of a good experience, or reduce them in case it’s causing a bad experience.” By examining these drivers and how they impact the customer’s experience, we can get a better idea as to whether the customer views the experience as “time well spent”.

For more ideas on building your customer experience, listen to the Customer Service Secrets episode “The Five Key Elements that Drive Customer Experience” wherever you listen to podcasts.


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Full Episode Transcript:

The Five Key Elements that Drive Customer Experience with Mary Drummond

Intro Voice (00:04):
You’re listening to the customer service secrets podcast by Kustomer.

Gabe Larsen (00:10):
All right, welcome everybody to today’s podcast. I’m excited to get going! We’ve got Mary Drummond. She is the CMO at Worthix. Mary, thanks so much for joining, and how are you?

Mary Drummond (00:23):
I’m good. So I’m like your marketing counterpart here at Worthix.

Gabe Larsen (00:26):
That’s right. We’re like marketing partners. I actually hope we are partnering on more stuff. Mary was just giving me a little tour of how to be a podcaster because outside of being the CMO at Worthix, she is also the podcast host of something called the “Voices of CX.” I probably can’t do it justice. Mary, can you tell us a little about yourself, the podcast and what you do over there Worthix?

Mary Drummond (00:51):
So, more than considering myself the chief marketer, I do truly consider myself the chief evangelist. And it’s probably because other than the CEO, you won’t find anyone in this world who is as passionate about this company as I am.

Gabe Larsen (01:08):
We can feel it from your voice, by the way. I’m like feeling the passion.

Mary Drummond (01:12):
I get genuinely excited when I talk about it. Yeah, but it does, it makes my job really, really easy because all I have to do is then take this passion and convert it into something that people can identify with. So, all I have to do is make sure that I’m distributing that message properly, which is why I have the podcast in the first place. Which is a great way to get that message across, to speak to the people in the industry that actually matter, that everybody else is listening to. And it’s been great because honestly, as the host of Voices of Customer Experience or Voices of CX, I have spoken to some of the most brilliant brains that are out there nowadays. And it’s been the biggest learning process of my life for sure.

Gabe Larsen (01:59):
I can only imagine. I can only imagine. I was telling Mary, I’m setting up on my own journey to become a podcast expert, so she might have to be a little bit of a coach and as I do that, but we’ll save that for a later time. Today, we want to jump into some of the trends and problems facing customer service leaders. And one of the things we were talking pre-show that actually was, you know, and I’m being honest here, it was pretty cool was this idea of not looking at it so siloed. A lot of organizations are looking customer experience as just kind of one point. And you kind of blew that up for me and said, Gabe, it’s different. It’s bigger than that. Give me a little more on that. How are you seeing that play out and why is it so important?

Mary Drummond (02:40):
So, I think that the number one problem that we have nowadays is that it’s really difficult for people to agree on a definition of customer experience. It’s just extremely problematic when you think about it. But when people are looking at the experience, there are a lot of definitions out there. The most accepted or the most commonly used one, and it’s the one that’s used by the CXPA, which is the Customer Experience Professional Association, is the idea that experiences are the sum of the interactions that a customer has with a company. Okay, in a nutshell it’s like 20 words, but basically that’s what it is. So, some of the interactions, right? And I agree with that definition, let’s say with some reservation. Now, customer experience has recently become super duper popular. Everybody’s using it. I like to say that customer experience has gone mainstream and you know, it’s gone mainstream when they start using it in advertising. So if you’re going through airports, you’ll see big signs that say, “Try to improve your airport experience.” I’m like, wow, airport experience… Turn on the radio.

Gabe Larsen (03:52):
Airport experience, well yes, there is an experience I guess. That’s weird.

Mary Drummond (03:55):
The bathroom experience when you’re at the airport is a thing too. And they’ll talk, there’s an ad running on the radio from Quicken Loans and it’s talking about improving your mortgage experience. You know, so experiences have really hit mainstream, which is pretty much a dream. I think that there are a lot of people out there, a lot of authors, a lot of thought leaders that really put a lot of work into making this happening, where people actually care, not only people, companies, investors, shareholders, everybody cares about the experience. So that is great. Now it also means that the message gets diluted and it also means that there’s a lot of confusion surrounding what it truly means. And since the industry is new, there’s still a lot of questions. So I understand that my definition of customer experience might not necessarily be same definition as the listener, but hopefully there is an overlap and hopefully what I do for you makes a little bit of sense.

Gabe Larsen (04:58):
Yeah, one quick followup on that, and I’m still kind of a newbie so I can ask this, but is there a big difference between customer experience and customer service? I mean obviously they’re interrelated, but how would you kind of coach people who are like, why are they people acting like those are different? How would you navigate that?

Mary Drummond (05:17):
That’s my favorite question…

Gabe Larsen (05:21):
If it’s too basic, you can be like that’s a dumb question.

Mary Drummond (05:23):
No, I think that it’s the first thing we need to get out of the way. Especially because your company Kustomer works very closely with customer service. And it’s probably one of the biggest focuses, right? We met at Customer Contact World, which is a conference that’s focused on bringing solutions to call centers and customer service. So there is a huge overlap, but it’s an overlap. One is not the same as the other. So as for a definition, I’m going to use what Joe Pine said. So if you know who Joe Pine is, he is the coauthor of a book called The Experience Economy, which was written in 1999. And it was the book that set off the whole idea of customer experience. So he could be called the father of customer experience. He created this whole concept.

Mary Drummond (06:26):
Yeah, and when I had Joe Pine on my podcast, what he told me super clearly was, “Mary, when people talk about customer experience, they’re talking about something entirely different than what I’m talking about.” So most people, when they’re talking about customer experience, they’re actually talking about customer service, customer satisfaction, customer relationship, customer success. What Joe Pine is talking about when he’s discussing the experience is very much the idea of time well spent. So it’s taking your time and creating an experience out of that purchase. So he’s speaking directly to the idea of an economical offering that is an experience.

Gabe Larsen (07:21):
Yeah, that’s deep. My mind… I’m kind of like, ooh… That was deep. So really, customer experience is kind of, I don’t mean to say it’s better, but it’s on top of, right? It’s like it almost, I would almost say, based on what you’re saying is it is, it’s on top of it. There may be that overlap, but it does feel like it is the broader category of some of these subsets like customer service, customer success, etc.

Mary Drummond (07:47):
Well, you see, the thing is that Pine was speaking of the economic offering of an experience. So that would be something like, Candytopia right? Where you offering an experience that people go in there and they have this experiential thing with candy and then you have like the ice cream museum or you have other things like Meow Wolf, this like immersive art. You know, so Pine was speaking specifically of these things, but if you take that concept and you apply it to business, what you understand is the experience boils down to the need. Okay, so way before products or companies or anything else, humans had needs. So if you consider before the automobile was created, people still had the need for transportation. So what were they using at the time? Horses. Bicycles. Whatever. Right, that need, that need existed. And the market was somehow providing that need.

Mary Drummond (08:55):
Now, as value propositions changed, innovation and technology came around. That need was exactly the same, but the expectations of the market started changing. And as the expectations changed, companies adapted to this ever changing speed of the customer and provided more and more innovation in the form of automobiles. And you know, nowadays we’ve got electric cars, right? If you think about it, essentially they’re still solving the same basic need that was there from the very beginning. It was being solved by a horse previously. Right? So what the experience, what I consider to be the experience in the business sense is the way that the company is providing the need of the customer according to their ever-changing expectations in the market. This goes from before the moment of purchase, the moment the customer realizes that he or she has a need, all the way to way after that purchase or transaction has concluded. Even once the relationship with the company has so-called ended, the customer continues to have expectations about that brand and about that company. So that’s what I consider the experience: The sum of the interactions that work together to provide the solution to the need according to the customer’s expectations. I know it’s a little bit confusing. That is how we see it.

Gabe Larsen (10:27):
It does seem like, and that goes back to almost my original question and maybe that fits in a little bit, right? There are different points in the customer journey, and oftentimes we have focused on one versus the other, but if you really map out that customer journey, it is pretty long, right? There are different touch points and there’s ultimately different things that drive that overall experience and therefore loyalty or satisfaction that really does drive people to again come back, repeat, you know, grow with you, stick with you, etc. Interesting. I’ve got a noodle on that one for a minute… That kind of customer experience versus customer service idea.

Mary Drummond (11:09):
Well i’ll build on it if you want. So when you have customer service, what you’re speaking of is a very particular moment or aspect of the experience, which is the relationship. So customer service is the relationship that the company builds with their customer. And relationship is crucial, it’s really, really important. But it is one of the multiple factors that ultimately affect the customer’s decision to choose to do business with your company or with another one that’s out there. So there are quite a few factors. So if we say customer experience is customer service, it is not, but customer service is definitely experiential. It’s definitely part of the experience.

Gabe Larsen (12:02):
But it is just part of it. It’s not the whole experience. The whole experience is… Well, paint that picture. So of customer experiences, what are some of the other parts of the experience that aren’t encompassed in customer service? For example:

Mary Drummond (12:17):
If we’re speaking of attending the need, right? So you talk about the need, you have to have a product, right? So when someone purchases a product, there are two like really easy cost-benefit factors that we can take into consideration there, which is quality versus price. So we always kind of make that relation, you know, like okay, I’m going to pay this much to gain this benefit. And pricing is so complex that there are whole schools of business that focus entirely on pricing. It really is very, very complex. But what we do know is that it’s not always directly related to quality. It is at times, but there are other things that affect it, like relationship is definitely one of them. People will pay more for a company that they have a good relationship with. Because it’s important to them, right? So just to kind of explain it really quick, what we believe in is that there are decision drivers and all of these decision drivers put together drives the customer to decide on how much of each they need in order to have a positive experience or negative experience. But it depends on the customer’s need and the expectation that they set for that company. So if I’m an Apple customer and I go to buy an iPhone, am I looking for price? No, I’m not looking for price. I’m not price sensitive. They are the most expensive. What am I looking for? I am probably looking for really good quality and probably looking for a very easy experience. So low effort in usability factors. Right? But there’s also something huge that’s a lot less subjective, let’s say, then price and quality, which is social proof. How you’re perceived by your tribe or by the people that surround you. So take it this way. I don’t know what phone you have, but I get really upset when I’m in a group chat and there’s that one person with a Google phone that’s making all of my text bubbles green. I’m like, just stop it already. Just go away. Stop ruining my group text.

Gabe Larsen (14:36):
I’ve got to stop you because I was having problems with the app. I have this total dovetail. It’s only five seconds, but I was that person. I literally was that person. I switched to a Samsung, or Android, I don’t know what it was. But I switched and the whole executive team at my last company, I hope they’re listening, they were all on Apple. And honestly, you would have thinked, you would have think you would have thunked. You wish you would’ve thought, that I killed the president or something. I’m dead serious. There was like a revolt. They were just like, you SOB, you mother***, we won’t put up for this. We won’t stand for it. And I got peer pressured back. So now, I mean, you’re not seeing this, but I’m holding this up for Mary. I’m back on an iPhone because I got guilty. So, sorry for the for the thing, but yes, I know what you’re talking about.

Mary Drummond (15:33):
Do you see how strong social proof is? It’s a huge motivator. And another one that’s also more subjective is brand identification. So one thing that we’ve seen recently, and you know, it’s been all over the news, is brands taking a more active stance politically and standing behind their beliefs and really making strong statements that maybe 20 years ago companies wouldn’t dare do. Oh my God, talk about something controversial. No way. But the truth is that the generations of today, they really want to stand behind something that matters to them. You know, so you have companies, I’ll give two, Nike is an example of a company that stood strongly behind what they believed in with the Kaepernick campaign that they ran last year. Or what was it, 2018? And analysts were freaking out, “Oh Nike… they’re really gonna take a hit for that.”

Mary Drummond (16:28):
And it was actually very successful, but it really could have gone either way. The truth is that Nike did some really, really deep research and they knew who their customers were and they knew that their customers would back them up even though they would lose some customers. The customers that actually mattered to them would stick around and actually create a stronger emotional connection with the brand because of that. I remember when that whole thing happened and people started burning their Nike’s. I remember going onto my phone as I’m watching the news go to Nike’s website and ordering anything. I just ordered anything because I just wanted Nike to see that people were still going to buy from them, you know? So I’m like, I’m going to buy right here just to show Nike how much I care.

Gabe Larsen (17:14):
So what do you feel like? And some of these examples are extremely powerful. Are there certain things that you’ve found that are the typical drivers to kind of get this? I mean, it sounds like, you know, price quality. You’ve listed a couple. Is there a typical list that you’re like, Gabe, these are the normal ones that companies need to be thinking about to drive that overall satisfaction?

Mary Drummond (17:35):
Yeah, we have five. Now these are the ones that we… So we did tons of scientific research and we narrowed it down to five, and these five drivers, they’re the main influencers of purchase decisions. Now, as you changed the decision, because you see the things that we make decisions all day long and ultimately on a daily basis, we’re constantly weighing out cost benefit. Let’s say, let’s call it cost benefit to decide whether or not something is worth it. So I’m going to give you an example. Waking up at 6:00 AM to go to the gym. Do you want to do it? Hell no. Hell no. Today it was raining so hard in Atlanta and I got out of bed and I’m like dragging myself out of bed. I’m like, I’m going to the gym. Did I want to? No.

Mary Drummond (18:21):
But in my mind, I’m telling myself that the benefits that I’m going to obtain from that sacrifice, what I’m giving up is worth it. So I go and I do it. So every moment in our lives, whenever we’re faced with a crossroad, we weigh out price, which can be money, it can be effort, it can be a sacrifice of morals. There are a series of things that we can do as paying a price in order to gain a benefit. And what does that benefit? It can be a better body. It could be health, it can be anything. So when it comes to purchase decisions, normally we’re giving up money in order to gain a product or service. So what we identified as the five decision drivers or purchase decisions are: Price and quality. It’s not in any specific order… It changes radically according to the customer and the situation. Price and quality, relationship, social proof, and brand identification. Each of the five things that I brought up.

Gabe Larsen (19:24):
Oh, price and quality are one. Okay. Got it. Okay, so say it one more time, one more time just so I got them. So, price and quality…

Mary Drummond (19:30):
Price, quality, relationship, that’s where you come in, right? Social proof, and brand identification. Depending on how these five factors… depending on how they weigh out in a customer’s minds, you can either increase one in order to improve that perception of a good experience, or reduce them in case it’s causing a bad experience. So if your customer has a really good impression of you and you don’t know why, you can run a Worthix survey and find out what’s causing that good impression so you can boost it.

Gabe Larsen (20:03):
Hmm, and really focus on one of those key drivers, right? Because I did like what you had mentioned pre-show, like oftentimes you guys were running these MPS survey and I’m just using MPS an example. But you know, it’s like, “Overall how satisfied are you?” And then you’re like, I don’t know what to do with that.

Mary Drummond (20:22):
Satisfaction doesn’t actually lead ultimately to the buying.

Gabe Larsen (20:24):
Well, I just love the idea of like when you talk about those drivers, I’m like, I can do something with that. I can coach my people. They can own it. We can do something. But satisfaction does feel like it’s so, uh oh, well they’re not sad. Then you gotta dive down more and more, so I like the action of building.

Mary Drummond (20:45):
Satisfaction is great if you’re doing a conformity check, right? So like I’ve got expectations as a customer, is that company living up to my expectations, yes or no? If the answer is yes, then I’m satisfied. If it’s not then no. Now am I going to leave you because I’m not satisfied?

Gabe Larsen (21:04):
Personally, I don’t believe that someone… it’s probably is all over the board. Some people, yes. Some people, no. I don’t know if it’s predictive of what we’re talking about here.

Mary Drummond (21:18):
It’s not because it’s only one factor. So if the price is really, really good, I might stay with you even if you suck. If I’m looking to buy like family heirloom that I want to pass onto my daughter when she grows up, I’m probably not going to measure the price because what I’m looking for is quality. I’m looking for durability, I’m looking for something that’s going to withstand the test of time, right? If I’m looking for a quick fix, something that I’m going to use one or two times, why on earth would I spend all this money for something temporary? So I’ll sacrifice quality, then I’ll probably sacrifice relationship cause all I want is this product for like whatever you know a party. Now what happens is… I’m a customer of Comcast. Okay, this this like the perfect example, because Comcast is known for having truly terrible relationship with their customers right now. Why is it that after five years with Comcast, I am still with Comcast even though their relationship sucks? Because I don’t need to call them that often.

Gabe Larsen (22:23):
It’s quality. It’s finding this balance between the different drivers.

Mary Drummond (22:29):
And when I think about the effort that I’ll have to leave Comcast and go to their competition, and then is there competition going to be that much better? Not necessarily, right? So in that specific example of Comcast, I’m not going to leave. But then again, internet isn’t a market that’s that commoditized. You don’t have that many players out there. It’s not like retail where you have hundreds of options. So depending on the industry you’re in, if you’re in an ultra commoditized market where price isn’t a differentiator, nor is quality, then you really have to stand out on other things like relationship.

Gabe Larsen (23:06):
You start to play those different games, yeah.

Mary Drummond (23:09):
And that’s where you have to innovate, truly innovate in the experience. So, you know, an example that I give all the time is Chewy. I don’t know if you know who Chewy is, it’s like a subscription for pet food. It’s like the most basic thing in the world. Chewy doesn’t sell cheap dog food. They’re more expensive than Amazon. They don’t sell super high quality or any different quality than all of the other pet stores out there. They’re selling the exact same products everybody else is selling. So an ultra commoditized market. How does Chewy get their customers to stay with them? How do they guarantee that loyalty if they’re not different at all in price and quality? Well, they really work hard on their customer service. They really work hard in their relationship. They like cultivate this intimate relationship with their customers. They’ll write handwritten cards. My dog got a birthday card! A birthday card in the mail from Chewy! These are these little things that make a difference.

Gabe Larsen (24:22):
Fascinating. Fascinating. So these companies got to find the different things that really drive their differentiators or behaviors, which really can separate them in the market. And you’ve narrowed it down to five doesn’t mean you have to do one could do the other. It’s about finding what’s unique in your industry and potentially commoditize a non-commoditized market. Well, Mary, that was not what I expected. I had like 10 more questions we’re going to have to bring you on again next time. But I really like this idea of experience looking at the whole journey and then the drivers that potentially drive that and you obviously narrowed it down to five. I’m going to have to think a little bit about that.

Gabe Larsen (25:02):
So as we wrap, if someone wants to get in touch with you or learn a little bit more about what y’all do over there at Worthix, what’s the best way to do that?

Mary Drummond (25:13):
Okay, well I’m on Twitter and LinkedIn and Instagram and everywhere is like @drummondmary, it’s really easy to find me. I’m like the one and only. You find some other people, but they look very sketchy. So don’t go with them. I’m like the one and only @drummondmary who looks like a person that would give you lots of interesting thought leadership.

Gabe Larsen (25:32):
So don’t follow them, follow her.

Mary Drummond (25:34):
Don’t follow them. You can also find me on Medium if that’s where you get your fix. And worthix.com to learn more about Worthix.

Gabe Larsen (25:42):
I love it. I love it. Well, it does it seem like a cool technology.I love the talk track and I’m looking forward to interacting more. Thanks again for joining and I wish everybody a fantastic day.

Exit Voice (25:58):
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


How to Combine the Best of Both Human and Artificial Intelligence to Kindle a Successful Customer Experience

How to Combine the Best of Both Human and Artificial Intelligence to Kindle a Successful Customer Experience TW

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In this episode of Customer Service Secrets, Vikas Bhambri, Senior Vice President of Sales and CX at Kustomer, joins Gabe Larsen in discussing how both human customer service agents and artificial intelligence (AI) are mutually beneficial in the development of real and positive customer experiences.

AI Bots Alone Cannot Solve Customers’ Problems

The artificial intelligence bots of today’s world are not only growing in popularity, but they are also growing in capability. They are the focus of various customer service conferences around the globe; but are they being utilized in the correct way? Vikas Bhambri, with his 20 years of experience in customer service, claims that even though they are receiving growing amounts of attention, people do not seem to understand where AI bots show their strengths.

Bhambri discusses how everyone is “hyper fixated… it’s getting kind of buzzwordy… [but] the key to me is, let’s think about the customer. Let’s start with the customer and the experience that they want, whatever you want to offer them, and then let’s figure out where you appropriately position the bot versus the human being.” Only in the future, when innovations permit even further data for both bot and human, can they coexist in beneficial harmony.

Knowing Your Customer

Human reps and bots will more successfully coexist when the bots are able to recall previous data from individual customers. Doing so will enable customer service branches to personally help clients, rather than run everyone that calls for assistance through the same AI loop. Vikas goes on about the necessity of “AI machine learning… [bots should be] looking at the results of anybody who’s ever asked a similar question and what has been offered to them and what actually resolved their issue… that’s where it gets… more in depth.”

He also gives an example of treating customers differently by comparing clients that have different demographics. Your company will have “all [of] these different issues that have been resolved across [your] entire customer base and now a multimillion dollar customer comes to [your] website and asks a question.” Your bots of today are “probably going to offer them the same solution as [it] did to the last 20 people that asked that question… they’re only looking at the question, and they’re not looking at who [they] are.”

Where the Bot and Agent Best Work Together

Once the customer has been personally identified, it is vital that both the bots and reps focus on the customer’s needs. Not only is the client’s problem important, but the means, or channel, that your company uses to resolve it should be an additional focus. It is essential to understand the customer’s situation, and realize whether a personal interaction with a rep or an automated conversation would be more efficient.

Vikas and Gabe talk about the idea of whether the customer wants “to speak to somebody [or] if [they] don’t, and want to do it [themselves].” Vikas gives the potential example of using new tech-advances like geolocation to aid in the customer experience as well. He says, for example, “I’m an airline, and when you’re reaching out to me from an airport the moment I kind of initiate that, [I] should be like, ‘Oh Mr. Barry, I see you’re booked on the flight from Orlando to New York because — and I know you’re in the airport right now. You know what, we’ve already rebooked you. Just head over to gate 43.’” The future holds great potential for the merger of AI and human reps, but the customer experience can only really be elevated when the customer’s needs and situations are understood by both.

Do you want to enjoy more in depth ideas about how to better the customer experience? Listen to Customer Service Secrets episode “Bots Vs Human: How to be Successful in AI Customer Experience” to hear it directly from the experts.


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Listen to “Bots Vs Human: How to be Successful in AI Customer Experience | Vikas Bhambri w/Kustomer” on Spreaker.

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Full Episode Transcript:

How to Combine the Best of Both Human and Artificial Intelligence to Kindle a Successful Customer Experience

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets podcast by Kustomer.

Gabe Larsen: (00:11)
Hi, welcome everybody to today’s show. Today we’re going to be talking about bots versus humans, all things customer experiences. We’ve brought on Vikas Bhambri where he currently is the SVP of sales and customer experience over here at Kustomer. Vikas thanks for joining man, how are you?

Vikas Bhambri: (00:26)
Glad to be here man. My partner in crime. Guest number what, 56 on the podcast?

Gabe Larsen: (00:32)
No, when this comes out man, this is, you’re going to be earlier than that.

Vikas Bhambri: (00:37)
I asked to be number one. I would like to quickly dismiss it… Now it’s like 56, 57, somewhere along those lines.

Gabe Larsen: (00:45)
If you could see me right now, my face is red. I did tell him that but I’m not going to fulfill that promise. Well you’ve been on vacation for like a whole four days. So what do you expect me to do, wait?

Vikas Bhambri: (00:55)
I’m glad the place is still intact, you know?

Gabe Larsen: (00:59)
So I probably didn’t do justice introducing you. Tell us just a little more about your background, some things you do over here at Kustomer, etc.

Vikas Bhambri: (01:04)
Sure, I’ll give you the short version. You can tell me if it’s not short enough or if you want me to go into more detail. Twenty years, CRM, contact center veteran. A lot of people don’t actually know this about me, but I started my journey, or my career in the contact center. I was a guy who carried a pager around, got the call — the page at two in the morning that something was wrong with my application. So back in the day, you have to actually be the coder and the QA, and the help desk for your product. So I did that, but then found myself actually implementing contact center technology. My first client was CSX transportation. If you don’t know them, they’re a big commercial railway on the East coast. And I actually implemented the contact center solution where if you were at a railroad crossing and the crossing was down or broken or the gate was smashed, you call the 1-800 number, it would route into the platform that I implemented with the agent.

Gabe Larsen: (02:10)
What was this 1970, 1960?

Vikas Bhambri: (02:15)
I’m not that old. It was probably just around the .com, so 2000, 2001. I went from there to implementing contact centers, like Bank of America, UPS. So I’ve been on this like CRM contact center journey since its inception.

Gabe Larsen: (02:31)
Was that on purpose or was that just by accident? I mean, are you that passionate about the space?

Vikas Bhambri: (02:36)
You know what, I’ve become passionate about it. I mean, you know, initially it was a job. Oh this is interesting. And you know, for me it was more around I love technology. So it was the perfect role to be a business analyst or project manager working with technology. But then as I got into it more and more and spent more time in the contact center, in the trenches, and then in the CRM world, which now encompasses sales, marketing, etc. And just seeing that evolution. So it’s been fun. I’ve worked across the globe, I spent five years in Europe. I’ve done CRM sales service marketing, you name the industry: retail, TELCO, financial services, insurance, healthcare… so it’s really been a great run over 20 years.

Gabe Larsen: (03:23)
I love it, man, that’s right. It’s funny, you and I have known each other for a few months now, but I forget that history, that’s a pretty rich history.

Vikas Bhambri: (03:31)
Yeah, a lot of people, they get caught up in the title, the most recent title, right. Like, oh you’re sales and CX leader and reality is, I actually started my career as a developer. It’s been a wild ride.

Gabe Larsen: (03:42)
Yeah, that’s a little bit of a change, right? Board room to dev room. So let’s dive in: Talk bots and humans for a minute. So obviously it’s a little controversial, isn’t it?

Vikas Bhambri: (03:55)
It is, because I think, of late, everybody is hyper fixated. You go to any conference, you go to any meeting and everybody wants to talk about bots. It’s getting kind of buzzwordy right? And everybody now says they do it. Everybody says they’ve got one. The key to me is, let’s think about the customer. Let’s start with the customer and the experience that they want, whatever you want to offer them, and then let’s figure out where you appropriately position the bot versus the human being. And I think ideally, and I think that the future will actually be where, they coexist. And so we can stop having this…

Gabe Larsen: (04:37)
One eliminates the other, one pushes the other out.

Vikas Bhambri: (04:42)
Right? And even the way some people talk about bots is they’re like, “look, we’re going to — we’re going to implement the bot and they’re going to solve the problem.” And then what happens when they don’t? Now the customer’s frustrated, right? Now, they pick up the phone or they called the agent and the agent has no idea that they just went through an eight step process with a bot and it failed. So even understanding like how do I take a journey that may start out with a bot, and actually escalate it to a human experience.

Vikas Bhambri: (05:11)
And what nobody talks about is, when did it start out in a human experience and then maybe kind of escalate to a bot, right? So you actually empower the human agent with more information, more data, more automation for them to give intelligent solutions back.

Gabe Larsen: (05:27)
Let’s go back to it. So maybe take one step back real quick because I want to dive into those two use cases. But when you say bot, how is that different than chat versus AI versus… give us a little click on that.

Vikas Bhambri: (05:43)
Sure. I think for me, when you think about bot, I kind of liken it to just robots, right? It’s technology that does a task. Now when you get in a chat box that’s just serving technology through a medium, which happens to be chat. But I would argue chatbots are already outdated because chat is only one digital interaction. Why wouldn’t you do the same on Facebook messenger? Why wouldn’t you be the same on WhatsApp or SMS? So even the whole nomenclature now it’s already outdated.

Gabe Larsen: (06:13)
Well and it did feel like chat — chat’s been around for so long. It’s like wow, is this really something that new, adding a little more of a bot or a push notification in a bot? But it seems like maybe as we take it to different channels, that would be one thing that would certainly be different. It’s this automated interaction in a channel, chat particularly, that allows you to potentially deflect or get rid of some of the human interactions.

Vikas Bhambri: (06:39)
Chat was rightfully kind of the first kind of place to offer it. Because at the end of the day, people are already used to doing pre-chat surveys and asking certain questions. So it kind of made sense to offer it there, right? And you know, you’ve got companies like Drift and others that are doing it in different styles. So it makes sense. But why wouldn’t you offer some sort of automation when somebody goes to your knowledge base? So now we call that — now we’ve kind of pocketed that into self-service deflection. At the end of the day, it’s still a bot. It’s still technology that is looking to the customer to answer certain questions or make some self identifiers and then offer them a solution.

Gabe Larsen: (07:21)
Got it. Got it. Okay, perfect. That’s great to just get the fundamentals. And then one step above that, where do you feel like it’s, maybe it’s where we are currently or where we should be going, but there’s stuff that’s like pre-programmed, like branching stuff you could put in. So they like press a button or they answer yes and then it delivers them a message versus true intelligence, like they write something, the bot reads it and actually responds back in an intelligent way. Are both of those happening? Is just one of those happening? Where are we in this evolution of the bot, so to say?

Vikas Bhambri: (07:57)
Sure. So, to me it’s kind of the if, then, else, right? Like the choose your own adventure. For those of us that are old enough to remember those.

Gabe Larsen: (08:04)
Those books were good. I should get one of those for my eight year old, actually.

Vikas Bhambri: (08:13)
But here’s the thing: So the if, then, else, the branchable logic that’s there. It’s been done. I think you see that quite often now.

Gabe Larsen: (08:22)
That’s pretty table stakes now.

Vikas Bhambri: (08:24)
Right? That’s table stakes. I think true AI, where you’re looking at the question the person’s asking, analyzing it, then comparing it to other questions… When we talk about true AI, machine learning, it’s now looking at the result set of anybody who’s ever asked a similar question and what has been offered to them and what actually resolved their issue. So that’s where it gets a whole much more in-depth. Now, I still think the problem with even that concept and why I’m excited about some of the things we’re working on, is that it’s still very limited to all the problems that people have asked and answered. It still doesn’t really take into account who that customer is. I think that’s still one of the things when we talk about bots and you’re only as good as your data. So what I describe to people is… look, imagine you bought a robot to clean your house and you only put it in one room of your house and said learn and then you unleashed it on the whole house. You’d probably end up with a wreck because the dimensions of your one room are not all of the rooms. And I think that’s when people create these algorithms, they’re only thinking about one problem area and then all of a sudden they unleash it. For example, I’ve got all these different issues that have been resolved across my entire customer base and now a multi-million dollar customer comes to my website and asks a question. I’m probably going to offer them the same solution as I did to the last 20 people that asked that question. Now taking into account that they’re a $5 million customers, now I’m going to wreck my house.

Gabe Larsen: (10:00)
Oh, interesting. Almost like a tiered… you know, we talk about like tiered support where if I’m a gold member, I call in and I’m treated different. But you’re not really treated different with a bot because they don’t know a lot about you, and they’re only looking at the questions.

Vikas Bhambri: (10:14)
They’re only looking at the question, and they’re not looking at who are you.

Gabe Larsen: (10:16)
So that might be one of the future trends, as you think about bots and how they… I can’t think of anybody doing that, that’s pretty… wow, that’s different.

Vikas Bhambri: (10:27)
That’s it. The more data you can feed this, the more intelligent it’s going to be. I think the problem is when people are thinking about it, they’re not thinking about what data am I going to keep using with the robot? Because that’s easy for people to say, “what information you’ve giving the robot?” And if you’re not giving them all the details, they’re going to make foolish decisions.

Gabe Larsen: (10:47)
What else do you have? If you had to kind of say a couple of years from now, I mean I just thought that was interesting. Kind of the personalization of the bot around the individual, the company, whoever it may be, and then treat them slightly different. Any other things you see in a couple of years from now, where the bot is going to that might be a little outside of the norm?

Vikas Bhambri: (11:06)
I think the big thing — well, before we even get there is I think there’s going to have to be this harmony between the bot and the human experience, which I don’t think exists today.

Gabe Larsen: (11:17)
So lets click into that, and then we’ll come back to the trends. So right now people are kind of thinking about it: as I interact with the bot and then there is a chance I would maybe escalate to human.

Vikas Bhambri: (11:31)
It’s still clunky. The hand off is clunky because a lot of times, well we’ve all experienced that as consumers. I get asked a bunch of questions by the bot, I get served up to human agent because the bot can’t actually answer my issue. And the agent actually asks me all the questions again. That’s like the most fundamental failure of the hand off because they have no visibility. They may know that you did communicate. A lot of brands won’t give their bots names. So like you, you asked Jeeves or you asked Elsa, right?

Gabe Larsen: (12:06)
Elsa is a Frozen reference in case anybody’s wondering.

Vikas Bhambri: (12:11)
Right, anybody whose kids are listening, they got it. All of a sudden, they talked to Elsa before me, but you don’t know what they asked and answered. So that’s a very fundamental flaw, but people are getting better at that. They’ll at least give you the tree, showing everything that the person went through with the bot, right?

Gabe Larsen: (12:27)
Do they? I sometimes question if they’re even getting that, but fair. Yeah, they could get that far.

Vikas Bhambri: (12:34)
There are some people who are a bit further along, if you look on a maturity index, so now I know what questions you asked the bot or answers you gave, and why they can’t resolve it. But to a degree, I almost have to still go and do my own due diligence and figure things out. So I think that’s step one. Now the other thing is, how do I take that data that I did get, plus what the agent captures and now offer up intelligent suggestions to the agent to resolve? That’s where I think you start getting true harmony is automation on the front end, smooth pass off, but then also helping the agent be smart by giving them smarter answers.

Gabe Larsen: (13:16)
But help me visualize that a little bit. So what would that look like? The first part I get, so you get the automation. I like the second part, the smooth transition, because that just feels clunky in my own experience with bots. But that third part. It’s like, ooh, how can we enable the effectiveness of the agents so they are responding back smarter? Any examples, like tactical examples that may come to mind?

Vikas Bhambri: (13:38)
Think about this and let’s just use your cable box provider. You just went through an eight step troubleshooting process with the bot. It failed. You’re on the phone with the human agent and the technician is saying, “Ah, okay I see that you went through this process.” Maybe the agent gathers one or two more details from you. You know what I mean? You check the remote, you know the batteries in your remote or whatever. Now, the intelligence to the agent says I’m going to take all the steps that the customer did with the bot, plus what you gathered and now I’m going to offer up a solution. Take both sides of that discussion and then offer up a solution.

Gabe Larsen: (14:20)
Cool! Interesting. So now flip it, because that’s kind of the standard idea, that can we deflect –? Well, do one more quick double clickback on that. So I liked your three step process. You have automation. If you need to escalate, you pass it off smoothly and then you kind of provide real intelligence or a recommendation. A lot of people are wondering how far you can go with a bot before you have to escalate. That’s, I guess, the elimination conversation. Where do you kind of recommend companies who aren’t thinking about that? Try to get rid of the small stuff, focus on the return? How far can you automate that bottom part of customer service?

Vikas Bhambri: (14:58)
I think the two factors you have to look at are one, what can the customer do themselves or can you kind of use the bot to guide them through to conclusion? So that to me is number one, because at the end of the day, as much as brands don’t want to talk to customers, customers don’t want to talk to brands either. Right?

Gabe Larsen: (15:20)
Do you think that’s true? I mean is that kind of where we are? I mean people don’t want to really do it.

Vikas Bhambri: (15:25)
They don’t want to. It’s not a bad thing. And I think we need to get away from that. If I’m booking a round trip flight from New York to LA, I don’t want to talk to anybody, I want to go to a website, I want to go to a mobile app, I want to book the ticket, get a reasonable fare, select my seat and I’m done. It’s paid for it and everything, right? I don’t want to ever speak to a human being and the airline doesn’t want to speak to you either.

Gabe Larsen: (15:53)
It just sounds bad.

Vikas Bhambri: (15:54)
But quote unquote, we’re talking, right? Because we’re obviously transacting business, but we don’t have to have an elongated discussion. Right? So that’s number one. Number two is when do you want to get that human being involved? Because now I’m booking New York to San Francisco, to LA, to Portland.

Vikas Bhambri: (16:19)
It gets more complicated. I want to be able to speak to somebody if I don’t want to do it myself. Number two is there’s an adverse event, right? My flight to San Francisco gets canceled. Now everything is going to be botched. I want somebody to jump in. And third, you have customers whether it’s ato demographic, whether it’s a high end customer, that you want to offer, that additional level of service, if they choose to use it. And that’s why I said bots can be a one size fits all because if you’ve got a premiere business traveler, you want to be able to say, look, if you want to go and book that round trip ticket yourself, go for it. But by the way, we’re here for you.

Gabe Larsen: (17:00)
And maybe it’s just where I am. Don’t get me wrong, I like to book stuff on my app and things like that, but I’m in like a Delta premiere or whatever that is, gold or medallion, and maybe I’m driving, you know, I’m just gonna call them up and have them walked me through it and book my roundtrip ticket or something. I like that sometimes, so I do like that option. I like the complication. The emergency totally resonates, right? It’s like when your flights booked and you’re trying to go home for Christmas, the last thing you want to deal with is a bot. Is my flight canceled? Just help me, I need to talk to someone.

Vikas Bhambri: (17:35)
So that’s why I think brands need to look at where is that inflection? Where does that point where the customer is going to yell? Now there might be some customers, they don’t care if they’re yelling all day long, right? But certain segments of customers, we care, the brand absolutely does care because they want your repeat business. Right?

Gabe Larsen: (17:54)
So do you feel like if you implement some sort of automated bot program, are you affecting negatively or impacting negatively the customer experience?

Vikas Bhambri: (18:02)
No. If it’s done thoughtfully where you’re thinking about that journey and go back to the customer journey, or customer map. It may actually benefit the customer. If I want to change my address, do I want to speak to somebody by changing my address? No I want to go in, I want to punch it in and I want to hit submit and let it go.

Gabe Larsen: (18:25)
I think the problem people are running into is because it’s such a trendy word now, I think I’ve run into this in the past a little bit is you’re like, well, let’s throw a bot on our website or let’s throw a bot somewhere and you don’t watch the rest of that customer journey and that’s where you drop off on kind of points two and three. We have a bot, but the experience actually got worse because we didn’t help them.

Vikas Bhambri: (18:42)
I think like anything, A, you need to AB test, and B, you need to do the what if scenario. What if a customer wants to do this? What if they do that, and you need to really think it through. But the easy thing to do is just… you almost need like a program management around iit.

Gabe Larsen: (18:59)
You really do. What I learned in my last gig is, we got a bot and it was cool. We threw it up there and pretty soon I was like, I need someone to own this and own the journey. It’s not just a side gig that someone else can do by themselves..

Vikas Bhambri: (19:16)
Like in marketing, right? You have somebody who does your search engine optimization. You need a bot optimizer.

Gabe Larsen: (19:28)
So flip the other way then. Is there a reason or a method to go to a human, then to a bot? Is that in our future, that certainly would be kind of a side scenario or side use case. But is anybody doing that? No.

Vikas Bhambri: (19:47)
No. I don’t think anybody’s doing that. I think right now it’s about bot to human. But where I think is a missed opportunity in the near term is to empower that agent with more choice for automation, where they can do things. And you’re seeing in some industries I think TELCO is actually ahead of this where your agent will take action on your behalf, like so you don’t have to get up and reboot your cable box. There’ll be like, we can do it from our side.

Vikas Bhambri: (20:19)
It’s things that financial service institutions are able to do, where the agent can initiate fraud detection and things like that. So I do think there is things happening on that side, but I’d like to see more of that across the board.

Gabe Larsen: (20:31)
See if we can’t bring that together. Okay, last two questions and I’ll let you get back to your day job. So one is for people who are starting to go down this journey, human versus bot, I think you’ve given them a lot of material. Where would you kind of say, if you’re starting this journey, here’s a couple things I think about or if you start, here’s the baby step you could do now, what’s kind of that easy step that you could take starting the journey of maybe getting a bot into your program and your customer service journey?

Vikas Bhambri: (20:59)
I would start with my knowledge base, your FAQ’s. The reason I think people should be putting FAQ’s or their knowledge base together is they’re like, oh this stuff is so darn easy that I expect my customers can do it themselves. So start there and start putting that into your initial bot journey. Where you’re basically pointing them to existing artifacts, things that exist. And then as you start triaging through those, then it’s like what are the next level of… let’s actually sit down with the agents or the reporting, and look at what are people reaching out to us about. And ideally you want to look at the end of the day, you want to fix the end solution. But if you can’t do that in the near term, what can we do that can automate the solution.

Gabe Larsen: (21:54)
I love that, I love that. That’s a great place to start. Okay. Last question is, we touched on it a little bit before, but there’s a lot of movement in the space. A lot of new technology is coming out, all different languages. Obviously some buzzwords. Any kind of predictions as you move into the future, thinking about humans, bots, anything kind of on your mind that says, I think it’d be fascinating if we saw X or Y in the future as bots evolve and iterate?

Vikas Bhambri: (22:20)
I think the biggest thing is, how much data can we feed? What I mean by that is, look, if I’m on my mobile device and you’ve got so much information, whether we believe it or not, the brand potentially has access to my geolocation. They have access to certain data about me on my phone. They have a profile on me. They understand the question I may be asking. Where to me almost get to the point where you’re doing predictive analysis. Before I even ask you my question, you know the question I’m going to ask because we have so much data about you. So we’re like, wait a minute, most of the time when somebody is reaching out to us, I’m an airline, and when you’re reaching out to me from an airport. The moment I kind of initiate that, you should be like, “Oh Mr. Barry, I see you’re booked on the flight from Orlando to New York because, and I know you’re in the airport right now. You know what we’ve already rebooked you, just head over to gate 43.” That’s the Nirvana.

Gabe Larsen: (23:28)
You know the funny thing is I used to be nervous a little bit about the data thing and giving too much data, but now I’m like, I want to give, and I think there’s people like me in this world who are willing to give up less privacy. They’ll have less privacy to get better service, to get more personalization. I’m like, dude take my social security number and take whatever you want, but give me that type of service.

Vikas Bhambri: (23:51)
I think that’s ultimately it. Like look, GDPR, you’ve seen the California Consumer Privacy Act, all of this stuff, people are still hitting every website. You know, I was in Europe, and every website comes up with a pop up and everybody hits accept. Why? Because I’m giving you data because at the end of the day I’m hoping you’re going to market to me better, sell to me more intelligently or are you going to give me better service. There will always be people that will opt out. Most people think, “if you’re going to offer me more value, I’m willing to give that.” And there is so much you can do with it to benefit the consumer.

Gabe Larsen: (24:31)
Could you be proactive? You’ve heard some of those stories where you know people are the target. Did you hear the target story where they were buying this family was buying different things and then they sent them like a gift card or a coupon for… I won’t get into the details, but basically send them a coupon and they were like, “Hey, we’re not, we’re not actually experiencing that. We’re not doing it.” Well they went and asked their daughter, and it sounded like that person is sick or is not working. But based on the behavior, their AI triggered, and sent a coupon for something, this father got it so it can get a little bit out of hand. But my goodness, the stuff you can do with data, wow. You can take this pretty far.

Gabe Larsen: (25:17)
Cool man. Well, I appreciate it. So if someone wants to get in touch with you, learn a little bit more about what you do, you know, continue the dialogue, what’s the best way to do that?

Vikas Bhambri: (25:26)
LinkedIn is always a great place to hit me up. You can hit me up at kustomer.com as well, either or.

Gabe Larsen: (25:34)
Love it, man. Well, I appreciate you joining. Great times. Audience, have a fantastic day.

Exit Voice: (25:47)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


The Customer Experience Summit Is Coming Soon

The Customer Experience Summit Is Coming Soon TW

Things have changed. We all understand that. Customer service and customer experience organizations are not operating like they were just one month ago. Teams are not simply thinking about great customer service anymore, they are thinking about working remotely, doing more with less, and building customer loyalty more so than ever before.

With all of these problems, we know that the desire to come together as a community to learn has not changed. Now more than ever, we need to share our knowledge and figure out how to adapt to our new realities. Just because we can’t travel, and many of us are working from home, doesn’t mean we can’t learn and grow in our professions. It doesn’t mean we can’t hear from amazing speakers and learn from each other on how to take our customer experience organizations to new heights.

So instead of just worrying about what this new reality means to our net promoter score, we decided to do something about it. Kustomer is partnering with Tethr, and the Challenger Inc. to bring together organizations like Thankful.ai, Convey, StellaConnect, ExecVision, Ada, Aircall, Fullstory, Worthix, Simplr, Guru, Lessonly, Gallup, Vengresso, Stream and many more to host an amazing one-day virtual event.

The Customer Experience Virtual Summit gives attendees the opportunity to come together and learn from each other, as well as some of the most influential thought leaders in the world. And the best part is, we’re bringing the conference to you — wherever you may be in the world.

Join us on May 6th as leaders from across the customer experience and customer service community bring in-depth sessions on topics that you care about most.

Register Now


Encouraging Loyalty in Challenging Times with John DiJulius

Encouraging Loyalty in Challenging Times with John DiJulius TW

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In this episode of Customer Service Secrets, Gabe Larsen is joined by John DiJulius of The DiJulius Group to discuss customer loyalty, growth preparation, and employee management. John is an entrepreneur and has three businesses. However, most of his time and attention goes to The DiJulius Group, a customer experience consulting firm. He has written several books from Secret Service, The Customer Service Revolution to The Relationship Economy. As a keynote speaker, John is committed to helping people understand customer experience and he strives to improve that aspect within businesses. He shares insights with Gabe Larsen and emphasizes customer service principles to focus on amidst dealing with today’s pandemic. Listen to the full podcast below.

Why a Recession is Good for Businesses

The current COVID-19 pandemic has hit the economy very hard. From large scale operations to brick and mortar businesses, everyone is feeling the impact. The last big recession was in 2008 and no one wants to relive that. However, John DiJulius recently wrote an article about how to prepare for a recession and in his discussion with Gabe, he explains why recessions can be good for businesses. He starts by saying, “One of my favorite, but also least favorite, quotes is ‘nothing ruins a company’s customer experience faster than rapid growth.’ … I can’t tell you how many companies in the past year that have hired us and the reason why is because they’ve gone through incredible growth and they got away from the soul of their startup.” While it is never ideal to be in financial trouble, John suggests that it’s a good time for business to hone in on providing quality customer service.

This can also be a great time for creative thinking and focused efforts on ideas and projects that were brushed aside in the hustle and bustle of everyday life. We can use this downtime to dive deep into the details of the company. John adds this statement of hope: “I believe that now that we have the opportunity to do this, we’re going to come out of maybe third or fourth quarter 2020 better. And I know that 2021 is going to be a better year as a result of this opportunity than had we not gone through this crisis and never been temporarily shut down or paused.”

Showing Compassion to Your Customers

Strong leadership and management will also be essential for any business to survive the pandemic. By keeping the needs of customers at the center of managerial focus, companies will be able to maintain customer loyalty. John suggests ceasing sales messages and emails; instead, companies should reach out to customers with kindness and concern. While airlines might have a bad reputation when it comes to customer service, John quotes them as being an example of how to care for customers in these challenging times. He states, “the U.S. airlines came out and did it right. I mean they did it weeks ago saying, ‘Hey, if you need to change your flight there will not be a fee.’” Now, more than ever, it is essential that customers know you care. The kind of transparency and compassion the U.S. airlines showed is what customers are looking for. Further, it will be a great way to drive customer loyalty throughout the recession.

Necessary Leadership Skills to Care for Employees

Intense fear of the unknown is looming in communities everywhere. Employees are particularly troubled about their vulnerability and being subject to the actions of their employers. By being transparent and not being afraid to over-communicate, leaders will be able to maintain the loyalty of their employees. Also, being clear about the company plan and the motives behind it will eradicate some of the fear and anxiety employees have been experiencing. Transparency and communication will be some of the most important leadership skills practiced at this time.

Adding to the principle of transparency, John also recommends “making sure that we’re giving our employees resources. Resources to immediately get on unemployment if that’s the case. Resources to immediately know what their health benefits are.” This will continue the chain of communication and let employees know that their employers care about them and their well being in this troubling time. John continues to note that candid CEOs help increase connection and a sense of normalcy. The pandemic and recession are only temporary, but the actions of company leadership will either keep customers and employees loyal, or drive them away.

To learn more about leadership recommendations and how to encourage employee and customer loyalty in a pandemic, check out the Customer Service Secrets podcast episode below and be sure to subscribe for new episodes each Thursday.


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Full Episode Transcript:

Encouraging Loyalty in Challenging Times with John DiJulius

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets podcast by Kustomer.

Gabe Larsen: (00:11)
All right, welcome everybody. Today we’re going to be talking about a lot of different things about customer service. It’s a timely topic about managing in times of change, as well as this idea of being recession-proof. How do you focus on the customer to become more ready and prevalent in this ever-changing business environment that we have right now? To do that, we brought on John DiJulius, a man of many talents. Currently the presidents of the DiJulius Group. Excuse me, John, but he’s also a book author. He’s got multiple books out. One of his latest is called “The Relationship Economy.” We’re going to touch on that hopefully just a little bit today, but we’re going to be dancing around multiple topics. John, really appreciate you joining and how are you?

John DiJulius: (00:54)
Thank you. I’m doing great. Thanks for having me.

Gabe Larsen: (00:56)
Yeah, I’m excited. Can you tell us just a little bit more about — there’s so many multifaceted topics, can you give us just maybe one more click on who you are and what you do?

John DiJulius: (01:05)
I’m an entrepreneur. The past 30 years I have grown three businesses. My primary is the DiJulius Group where we are only a customer service/employee experience consulting firm. And we just work with some of the best of the best and helping them become the brand customers can’t live without, and ultimately make price irrelevant in normal times.

Gabe Larsen: (01:34)
I love it. I love it. Well I think that’s very fitting for today’s conversation. So, let’s dive in and then we can kind of tie in a couple of different concepts. So big picture, we were just talking about an article and we can start there. You’d call it how to make your business recession proof. I don’t know if you saw it coming, but maybe give a big picture thought on kind of the current environment we’re working and how companies should be thinking about it.

John DiJulius: (01:57)
Yeah, before this Coronavirus crisis, I wrote an article because I knew… well I wasn’t predicting it, but it doesn’t take a genius to know that everything’s cyclical. So I wrote an article saying it’s time to recession proof your business. And I might be the only person that says this, but I say it all the time. I enjoy a recession, okay? And I don’t like any of the financial crippling it does to people and jobs and all that. But as a business owner, there are so many benefits. So, let’s look at the negatives from a booming economy: Even one of my favorite but also least favorite quotes is “nothing ruins a company’s customer experience faster than rapid growth.” And think about that: We’ve gone through it. I can’t tell you how many companies in the past year that have hired us and the reason why is because they’ve gone through incredible growth and they got away from the soul of their startup. And when we started, we were able to interview 10 people to get the right person. Well, now when we’re growing by leaps and bounds, and we need 50, and we’re interviewing 55 and saying, well he’s not the best for us, but of the candidates here, he’s the best, so take him. We start talking about, you know, “What about Joe who’s underperforming and doesn’t get it?“ Well, we’ll work with him.

John DiJulius: (03:39)
Because not only can we not afford to lose Joe, we need 10 more of him. And all those things. You start fast tracking, you start compromising and the growth is intoxicating, and we all want it. But you wake up and you look around and you’re like, who are these people? This wasn’t the company I built. So, what are the opportunities when you go through a recession? This has been especially prevalent the last three years, it’s been an employee market where there’s been more jobs available than employees. And turnover in 2019 was an all-time high and all these things. So now people got to pay $15 an hour for a $12 an hour job, and may not be getting the best candidates.

John DiJulius: (04:30)
So this stuff all becomes cyclical and now it becomes an employer market, where there are more people out there and better opportunities to choose from. You start making decisions that getting rid of things and fat and silly expenses that we shouldn’t have been doing anyway. And so, it forces you to make decisions. And it always cleans out your competition. I always say a recession is like a business enema and there’s a lot of shitty businesses that are having success. So, when the economy is doing good and so the old quote “even a turkey can fly in a tornado… But when that tornado stops flying, the turkeys start dropping.” So, the people that have worked on customer loyalty and employee loyalty really shine and emerge as the leaders of the business. So, sorry, that was a long answer.

Gabe Larsen: (05:31)
No, I love the setup. I think that’s, I mean the turkey, I’ve never heard this statement with the turkey and the tornado. I’m just going to trust you.

John DiJulius: (05:38)
I’m going to say I made it up.

Gabe Larsen: (05:41)
I love it. So, as you think about some of the things that people can do as these times get difficult, the enema example; it is a time to reflect and cut back the fat, trim the fat maybe refocus in areas. I know we were talking a little bit about that as we jumped on here. How would you coach organizations to start thinking about doing that so that in the next month’s here, they maybe can come out of this a little more on top than they would have?

John DiJulius: (06:11)
Well, the first thing is our leadership, our customer experience, and their employee experience need to all be on center stage. And we have got to be careful with these knee jerk reactions. We businesses probably have to close, hopefully temporarily, and lay off people, or ask people to take one day less, whatever. We don’t know when it’s going to stop and how severe it could be, but man, do we have to do it with empathy and compassion and make sure — and we have to walk a fine line as leaders of transparency and fear. I was talking to a CEO yesterday that had to make some major cuts. And one of his employees that got cut or laid off said, “Yeah, that’s so the company can have a stronger bottom line.”

John DiJulius: (07:07)
That’s not true. So we have got to be transparent and say, look, the reason why we’re doing this is because we want to make sure you have a company to come back to in 90 days and we have to be going into our lines of credit and we have to do these things. So, we need to be transparent in what we’re doing, and why we’re doing it without also causing panic. But I think great leaders right now need to show that they were born for this moment. I love moments like this because I think this is when I operate best. I don’t want to always be in this moment, but I think this is when, while everyone else was running around with their head cut off, I act like this is, I knew we were going to be here.

John DiJulius: (07:53)
I didn’t know when, I didn’t know how, but I knew this was, and we’re prepared for it and we’re going to get through it. And you couldn’t be working with, or for a better brand to help you and us get through this. And so, knee jerk reactions, like with events being canceled and all these things, whether it be a speaker’s or conferences or venues or hotels that first try to enforce their contracts. That’s crazy. And then they’re getting into pissing matches, saying, “Hey, this is not considered forced majeure.” Listen, this is going to die down. People are going to have to have their events again in six months and into 2021 and they’re going to remember how you treated them and no court in the world is going to enforce a penalty or anything like that.

John DiJulius: (08:51)
So I think it’s really a burden. And the really embarrassing thing is, I can’t believe I’m saying this and using them as an example, but that the U.S. airlines came out and did it right. I mean they did it weeks ago saying, “Hey, if you need to change your flight there will not be a fee.” I mean they were probably one of the first. They’re usually the butt of everyone’s jokes and it’s pretty sad that they’re the ones that are showing the way right now. Which, give them credit.

Gabe Larsen: (09:22)
Do you feel like… let’s double click on that because I think that’s a question that people have struggled with in challenging times: How do you work with your customer? You were kind of joking saying you probably shouldn’t go after him and that small fine print clause attack them. Given your seed away and given your pants, you have all my stuff for free for the next 12 months. Maybe not, that’s the other extreme. Is it just a partnership? Come on man, be real, is there a middle ground that you’d advocate for? How do people find that middle ground?

John DiJulius: (09:56)
Yeah, I think the first thing is back off on the sales and pitching because I’m even really offended by like “dude, you’re really emailing me right now about upselling me on something while I’m trying to work through this mess and I’m worried about employees and their families and keeping food on their table?” I just think it’s insensitive, I think we need to reach out to our customers and say, “what can we do for you? What’s the best thing you need? Is it a pause? How can we best serve you?” And I think there’s great opportunity to also step up and give back to the community.

John DiJulius: (10:40)
I’ll give you an example of that. A couple of things that we’re doing and obviously you and your customers can figure out how that applies in their world. But the first thing we did was we reached out to our consulting clients and said, “listen, number one, everyone’s going crazy and because of your loyalty I want to offer your leaders a free leadership webinar on what they need to do, and the face they need to be wearing.” Even if that means when they’re not in front of their employees, they have to curl up in the fetal position and cry. We have to show the employees that we’re right where we want to be, and we have our competitors right where we want to be.

John DiJulius: (11:27)
But then the second so I said, that’s complimentary I want to give to you and listen, while it might be generous, what else am I doing right now for the next few weeks? It’s not like it’s — so I want to give back. The second thing is we have offered our clients, if you want to pause right now, we can pause. If you want to, since we can’t come out there, turn it into virtual consulting, we have that capability. It’s totally your call. And then the final thing that we thought of that one of my employees thought of, which was just brilliant, and again, this isn’t about the DiJulius Group, I’m just trying to give your audience ways to do this. So, we have an online education format that companies take and train their employees.

John DiJulius: (12:13)
But with all of these restaurants, with all these small brick and mortars, or mom and pops closing temporarily, hopefully, it’s scary times. We’re offering, we’re rolling out our online modules to all these small mom and pops to say, take advantage of the downtime and give this to your employees. And again, selfishly if you think about it doesn’t cost us anything. Okay, we’re not going to lose revenue because mom and pops don’t hire us. But we are giving back to them and hopefully doing something that’s valuable to them, because they’re in a horrible position right now.

Gabe Larsen: (12:58)
Yeah, I love that. I just find like finding that balance, looking at it more of a partnership. How do we give more than we get I think is something we’ve got to be kind of thinking about to make this more of a structured environment. I think that’s just some of the things we’ve got to kind of nail down.

John DiJulius: (13:15)
And also in my examples, I want to be clear. Again, none of them are going to cost me or my team anything, so it wasn’t like we are saying, “Hey, give it for free and lose revenue.” No, that’s the last thing we can afford. But these are things that are really about us having either downtime or available online modules that really don’t have a higher cost to us, to customers that would never be our customer. So, it’s not like you would have you’re getting a free and now you’re not going to ever use us. The mom and pops that were all small businesses wouldn’t hire us anyway, so we’re not losing future revenue.

Gabe Larsen: (13:54)
I love that. I love that. One other thing you touched on, and I just wanted to see if we could click on that for a second, was that leadership and the employee side of it, right? So, okay, we got a couple of customer things. Let’s go back to the employee. Got a lot of leaders listening in and trying to figure out this “in environment.” How do I coach and care about the individual? How do I also manage my business? The transparency versus —

John DiJulius: (14:16)
Fear. Panic.

Gabe Larsen: (14:20)
Fear costs. How do I make sure I give enough information about the company but not again — I think your word fear and panic are right. DoubleClick that. How are you finding ways? What coaching would you provide organization’s leaders to make sure they manage that employee the right way?

John DiJulius: (14:35)
And I think you can’t over communicate enough right now. I think the CEO needs to be visible and doing videos and sending out to his employees or her employees and every leader, because some people don’t have access to the CEO, but you might be my GM, you might be my shift manager, whatever it may be… And so, you’re the CEO to me. And just constantly, because worse than what is happening is the fear of the unknown. And that is the other shoe going. I’m waiting for you to come in and tell me that we’re out of business or we’re closing, or I’m permanently laid off. And you can’t promise what’s going to happen in six months or 90 days because we hope that it’s not going to last long.

John DiJulius: (15:25)
All you can do is say, “Hey, here’s our plan and here’s why. I want you to understand why we are taking these steps.” And the other thing that is really — is making sure that we’re giving our employees resources. Resources to immediately get on unemployment if that’s the case. Resources to immediately know what their health benefits are. Because I believe health benefits are still enacted versus traditional times when you lay off someone, they could lose their health benefits and they have to go on Cobra or whatever. I believe that that isn’t the case, because that’s what they’re scared of. Also, something that’s been really, really good is teaching our employees how to deal with it personally, and give him education saying, “listen, we all know what we have to do right now to be safe and avoid.”

John DiJulius: (16:17)
And the thing you don’t need to be doing is checking headline news every five seconds and being on social media too much because the numbers can never go down. They can only go up. So, when you hear other people, a hundred people were infected or whatever it is, and then you hear another industry is forced to close, that’s not helping. As long as you’re not being irresponsible and going out and not practicing social distancing. So now, what to do and teaching them “Hey, take advantage of this time.” Like I told you, when we got out, we’re playing the DiJulius family olympics and we’re going through old pictures and I’m showing my kids my home videos, they’re black and white when I was a little kid.

Gabe Larsen: (17:09)
Come on, they’re not black and white?

John DiJulius: (17:09)
They are, they are. Yeah, but it’s funny, my kids are calling me, they’ll say, “Hey Dad, I thought you had to walk to school both ways up-hill and snow without shoes?” “That, Oh, we don’t have footage of that.” But to see the hairstyles and making fun of dad because his hair was feathered back like it was in the late seventies, early eighties. It’s taking advantage — I think whether it’s God, nature or fate, I think this has a way of giving us a wakeup call saying that we’re out of balance here and we need to get back to that human nature.

Gabe Larsen: (17:52)
Is there something that they’re almost, does feel like there’s a little something bigger of like we need to kind of take a step back as people, individuals, families, groups, and kind of figure out what’s most important. And you’ve seen — I’ve heard some amazing stories of people kind of coming to a better relationship or truth or understanding because they have just said, you know what, it’s the first time I’ve taken a deep breath in five years and I’m going to do things different.

John DiJulius: (18:16)
Yeah. I call it the holidays. It is the holidays right now without the chaos, the mess or the third cousin that we really didn’t want to have to entertain. It’s the best part of the holidays where you play games and look at pictures and videos. Another thing that we’re doing is we’re doing DiJulius family trivia game. So everyone has to think of five questions and see who knows the most. And it’s just, it’s kind of cool stuff now, but let’s take that to the business realm. Listen, I could speak for myself. My business, I have three, we started looking at — there’s several things that it’s been shame on us that I have been mad at; throwing erasers at chalk boards that we haven’t gotten to, that we should have three years ago.

John DiJulius: (19:10)
The next evolution, the next, the better service or product, all these. But none of us can because we’re so busy with the day to day fulfilling customers and our jobs. And all of a sudden, we’ve just created the time to do these things to work on the next innovation that we know was critical to our evolution and revenue stream. I believe that now that we have the opportunity to do this, we’re going to come out of maybe third or fourth quarter 2020 better. And I know that 2021 is going to be a better year as a result of this opportunity than had we not gone through this crisis and never been temporarily shut down or paused.

Gabe Larsen: (19:56)
I love it. I love it. I think that’s As you have the time to pause, make sure you use it effectively, because when this thing ends and it’s going to end, come out on top, find a way to make sure 2021 is a big hit. So, John, I love it. I love the talk track. I appreciate it. It’s very relevant. It’s very contextual. John and I were going to be talking about something different today, but we thought, you know what, all that’s been going on the last months, weeks for wherever you are, that this would be more interesting. And I thought you nailed it John. So, if someone wants to learn a little bit more about you, the DiJulius Group, what you guys do, what’s the best way to do that?

John DiJulius: (20:31)
They can go to thedijuliusgroup.com or they can email me john@thedijuliusgroup.com.

Gabe Larsen: (20:39)
Okay, well really appreciate it, John. Fun talk track, and for the audience – have a fantastic day and do be safe!

John DiJulius: (20:46)
Thank you for having me.

Exit Voice: (20:55)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


How to Focus on the Right Customers for a Strategic Advantage with Peter Fader

How to Focus on the Right Customers for a Strategic Advantage with Peter Fader Twitter

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In this episode of Customer Service Secrets, Gabe Larsen is joined by Peter Fader to discuss the different types of customers and how to have customer centricity. Peter is a professor in the Marketing Department at the Wharton University of Pennsylvania. He also consults and works in many different markets, from telecommunications to financial services. His most recent startup, Theta Equity Partners, helps organizations evaluate their worth based on the worth of their customers. Peter’s philosophies are centered around the lifetime value of customers and sales forecasting for products. His ideas are new, innovative, and are bringing about positive changes in the industry. Peter is also the author of the book Customer Centricity: Focus on the Right Customers for Strategic Advantage and its principles are the focus of the discussion in this episode. Listen to the full podcast below.

Not All Customers are Created Equal

Most organizations are focused on making sure that every customer is happy, satisfied, and motivated to continue buying their product. While this is a good focal point, customer service and customer treatment cannot be “one-size-fits-all” because all consumers are created differently. While equal treatment is normally the goal, Peter suggests the opposite to help businesses grow. He states, “we’ve got to really focus more on . . . the right customers, on the ones that we project to be more valuable. And by investing our marketing and other assets where the value is going to be generated, we will do much better than the kind of one size fits all . . . practices that we’ll see [from] a lot of companies.” Peter further mentions that by creating different levels for customers, they will get the treatment they want and deserve.

Questions to Determine How to Segment Customers

Determining the type of customer treatment starts with evaluating customers and determining how their worth can contribute to the worth of the company. Instead of segmenting customers into groups according to demographic, organizations need to look at the worth that a customer could bring or the amount of time they are projected to stay with the company. Peter states that these behavioral patterns are the best way to segment. The following questions are suggested by Peter to determine the lifetime value of customers.

“How long is this customer going to stay with us? Over that horizon, how many purchases will they make? And how much will we earn off of them on each of those transactions?” Companies who make decisions based on the value and behavior patterns of their customers separate themselves from other companies and they will see more success.

The Link Between CFO and Customer Valuation

For the rest of the podcast, Peter and Gabe discuss the importance of the finance department in a business, specifically the role of the CFO. Most innovations or new ideas are stopped by the finance department. However, with Peter’s model of seeking out the value of the consumers, it creates more hard evidence and space for the finance department to get on board. Peter recalls:

“If we can show the CFO that she can do a better job of valuing the entire company from the bottom-up, by projecting the number of customers they are going to acquire and the value that will derive from them, and go to Wall Street and say this is what we’re really worth, then we’re going to win her respect and then it’s going to spill over across the organization. And we’ve been doing that for real and it’s been amazing how well that’s been working.”

Peter’s “customer-based corporate valuation” tactics are winning over CFO’s and helping companies evolve and do more for their customers. By linking all these different corporate aspects, with the focus on customers with predictable behavior patterns and differential treatment, companies are innovating and expanding. It is a successful new model of thinking and as Peter said, “[it’s] been working.”

To learn more about customer centricity, how to focus on the right customer and what to do about it, check out the Customer Service Secrets podcast episode below, and be sure to subscribe for new episodes each Thursday.


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Full Episode Transcript:

How to Focus on the Right Customers for a Strategic Advantage with Peter Fader

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
All right. Welcome everybody to today’s podcast. Today we’re going to be talking about customer centricity. And to do that, we brought on Peter Fader. He’s currently the professor of marketing at the Wharton School out there in Pennsylvania. He is also the co-author of a couple of books. One that I actually ordered when I reached out to him called Customer Centricity, focusing on the right customers for strategic advantage and he also advises some startups. So, a man of many talents. Peter, thanks for joining. How are you?

Peter Fader: (00:37)
Oh, I’m doing great Gabe. Good to talk to you about this topic and other related ideas.

Gabe Larsen: (00:44)
Yeah, yeah, I love the idea of customer centricity. I did a little bit of an intro. Anything you’d add or explain as far as your background, some of the fun things you’re working on?

Peter Fader: (00:54)
Yeah, in addition to all the academic work, which is the day job, developing models, professing to others. Not only advising startups, but I’ve actually co-founded a couple of startups to take these ideas and methods and bring them to life at full commercial scale. So what we’re going to talk about here might seem a little radical, might seem unconventional, but it’s proven and it’s been quite successful so far.

Gabe Larsen: (01:20)
I love it. I love it. Interesting. Well, let’s dive right in. Start big picture for us. I mean, people use different words, customer engagement, customer service, experience. You talk a lot about customer centricity, big picture, what does it mean to you? How do you define it?

Peter Fader: (01:35)
Yeah, I have to tell you, Gabe, it’s a very bad choice of words and I mean that sincerely. I look back at the book, which has been very, very good. It’s sold a lot and people have been, like yourself, have been reading it and intrigued by it, but the title doesn’t do justice to it. In fact, I think, I don’t know if you have a copy of it in front of you right there, but Gabe what’s the subtitle of the book? That tells us what it’s all about.

Gabe Larsen: (01:59)
Yeah. Yeah, it does say here it’s the focus on the right customers for strategic advantage. Does that, that’s kind of where you’re at.

Peter Fader: (02:06)
So we’re talking about exactly the idea that not all customers are created equal. And it’s not just a matter of being centered around the customer. It’s rather being engaged with, intimate with, responsive to, providing experiences to, the customer and some faceless, nameless, one size fits all way. It’s recognizing the vast differences across them, the disproportional value that some bring. Say, we’ve got to really focus more on those, on the right customers, on the ones that we project to be more valuable. And by investing our marketing and other assets where the value is going to be generated, we will do much better than the kind of one size fits all we love everybody, kind of practices that we’ll see for a lot of companies.

Gabe Larsen: (02:59)
Interesting. So do you feel like — certainly, we, I think for a long time we’ve operated in the world where we all treat customers kind of the same way. It’s that vanilla-type experience. What are the challenges for trying to do this? To actually get to a place where you treat customers either the way they want to be treated or specifically based on their need?

Peter Fader: (03:23)
That’s is the challenge and that’s what keeps me gainfully employed, keeps me in the streets. The challenge is to recognize or at least project what each customer is going to be worth in the future. See, too often we base our customer management strategies either on the past like what did they do with us? Or on totally irrelevant cues. Like are they millennials or gen Xers, or demographics? The real way to value manage your customers is based on, what do we think they’re going to be worth? In other words, how long do we think they’re going to stay with us? How many transactions are they gonna make over that horizon? How much are they going to spend? How much margin are we going to make? In the old days, it was impossible to do that. You couldn’t tag and track and project your customers nearly as well as we can do today. And so we wouldn’t even go there and anyone who would try to do it would be laughed out of the room. But today, given the kind of data that we have, given the kinds of analytics that we can lay on top of it, and given the kinds of technologies that then let us serve up different kinds of experiences, and products, and messages to different kinds of customers based on their value, we can do it; and it’s now a strategic imperative to do it. That’s the idea that I’m pushing.

Gabe Larsen: (04:40)
Wow. Wow. Interesting. If you just had to say, I mean obviously it’s your point, you’re gainfully employed, what percentage of companies are doing this to a level that you would say is, these guys are doing it world-class Gabe? Is it 5%? Just kind of a guesstimate on how the market is reacting to this, so to say.

Peter Fader: (05:03)
That’s a very interesting question that we got to ask. Where are we going to draw the line? Are we going to draw it at world-class? Are we gonna draw it at adequate to keep up with the changing times? So let’s, let’s first be a little bit more modest and talk about just those who are keeping up.

Gabe Larsen: (05:20)
Yeah. World-class is maybe… Yeah, that’s fair. That’s fair. Yeah, go ahead.

Peter Fader: (05:26)
And I’m happy to talk about world class too. It’s just that there aren’t a lot to talk about. And, the issue is this, and it’s an issue that comes up every podcast you do, every conversation you have, Amazon. And the funny thing is that even though Amazon touts itself as being the world’s most customer centric company and they’re not bad at it, that’s not their thing. Their thing is operational efficiency. Their thing is just being able to stock a lot of stuff, get it to the customer real quickly, keeping the prices low. They are operational efficiency, just incredible. They make an operational efficient firm like Walmart or Toyota look like they’re terrible. But, the amazing thing about Amazon, what really sets them apart, isn’t only that they turn the crank better than anyone, but in the process, they’ve also raised the bar on these ideas of customer engagement, intimacy, responsiveness. So Amazon is just a paragon of operational efficiency. And in the process they’ve actually raised the bar on all this — what we ever want to call it, customer centricity, customer engagement, customer intimacy, responsiveness — to the point where even though that’s not their truly main goal, it just arises as a side effect, a spillover from their operational efficiency. And, it makes it impossible for every other company to keep up on either dimension. So again, even though that’s not really what they do, although they’d like people to think about that; companies need to at least be at that level of understanding customers, how they’re different from each other and how the kinds of services and products that we put out there are going to be reasonably responsive to their differential wants and needs. And most companies are just really bad at it cause most companies, most retailers let’s say, are just chasing after Amazon on the efficiency side and not even coming close. And so they’re falling way behind on these other dimensions.

Gabe Larsen: (07:36)
Fascinating. Fascinating. Do you feel — so going again is a little more tactical then. So, you’ve talked about some of the tagging capabilities that allow people or brands, companies, to start to do this idea, start to treat people slightly different. What are the most typical or the recommended ways to segment customers? Sounded like there were some bad practices; millennials for example.

Peter Fader: (08:02)

Gabe Larsen: (08:02)
Sounds like there’s some good practices

Peter Fader: (08:04)
There are. Well that’s again my thing is, let’s not segment people based on what they look like. Let’s not segment people based on necessarily what they’ve done or where they live or any of that. Let’s segment people on a good guess of what they think they’re going to be worth. Or, on the dimensions that are one level below that. So, like I said before, I focus on customer lifetime value, the overall future value of a customer; and that’s the Holy Grail. That’s the gold standard. That’s the best way to do it. But, that’s also, for a lot of people in companies, it’s kind of hard to get their brain around it. So, let’s just knock it down one level and, and break it down into the three or four dimensions that I mentioned before. How long is this customer going to stay with us? Over that horizon, how many purchases will they make? And how much will we earn off of them on each of those transactions? So, those three dimensions, that’s the basis of it. So, Hey, look, we’ve got some customers over here and they’re going to stay with us for a long time, but they’re not going to spend very often. We have some customers over here and they’re going to be come and go. But, when they’re with us, they’re going to spend a lot. And we have some customers over here who, well, they’re not going to buy very often, but when they do it’s going to be giant, giant purchases. So we want to segment people on these relevant behavioral—

Gabe Larsen: (09:34)
Behaviors, yep.

Peter Fader: (09:34)
—topics and we’d like to do it with an eye towards the future as opposed to the past. The past isn’t terribly misleading but it might be a somewhat distorted view of what they’re going to be doing as we move ahead.

Gabe Larsen: (09:50)
Now do you feel like, so once you’re able to segment based on some of those things and I love the idea like lifetime value for example, is the Holy Grail. That’s a great one. Do you, what is, how do you do it differently then? I mean, now that I know this, now that I’ve segmented it appropriately and I’ve got to use some different methodologies, technologies to potentially do that. Is it the more experienced agents? Do you do kind of the gold level, the gold standard experience for the bigger lifetime value customers? Finish that piece of it. How do you –?

Peter Fader: (10:21)
Sure thing. okay, let’s do it. Sure, so once we have our lifetime value magic wand and we wave it over each customer’s head and we see that number shining, then we put them in buckets based on, let’s say high, medium, low. So, you just mentioned the most obvious thing, which is let’s create the presidents, gold, metal, blue ribbon, red carpet club. Let’s give them this special 1-800 number. Let’s check in with them every now and again, make sure they’re happy. So that’s kind of a given. And a lot of companies get that even if they don’t do it particularly well, they don’t use the right basis segmentation or they don’t go far enough with it. So that’s step one. But when I’m looking at some of the best practice companies, it’s amazing how far this differential treatment will spill over.

Gabe Larsen: (11:08)

Peter Fader: (11:08)
So, a really good example would be, it should spill over all the way to product development. So instead of going to the R and D people say, Hey, R and D people come up with something cool that we’re going to sell a lot of. No, it’s, Hey R and D people. We’ve got these really valuable customers over here. Come up with something for them. We don’t mind if other people buy it too, but job one is to make sure that we maintain, enhance, extract the value from those really good customers and acquire more like them. So let’s come up with not just awesome products that will be good to the masses, but that will be especially appealing to the valuable customers. Let’s really double down on and give them differential treatment, not so much when it comes to customer service, but even when it comes to designing products in the first place.

Gabe Larsen: (12:01)
Wow. So basics on that front is, well maybe basics isn’t the right word, but foundationally speaking, yes, do the red carpet, blue ribbon type thing, 1-800 number. The next level on top of that is to actually sit down and say, from a product standpoint, how are we delivering something to that group that keeps them close to us and grows the relationship? Interesting.

Peter Fader: (12:25)
Of course, I endorsed what I just said, but I wouldn’t necessarily call that the next level.

Gabe Larsen: (12:31)
Oh, okay.

Peter Fader: (12:31)
It’s kind of a far off level.

Gabe Larsen: (12:33)
Oh, okay.

Peter Fader: (12:33)
So the first level is just to do it purely on the direct marketing and then customer service side. The second level would be to do it, let’s just go one step away from marketing. Let’s go to sales. So when we’re interacting with our sales people and when we’re incentivizing our salespeople, let’s encourage them not just to bring in as many customers as they can as cheaply as possible; let’s incentivize them to go after the valuable customers.

Gabe Larsen: (13:01)

Peter Fader: (13:01)
Let’s use lifetime value as the metric to guide and gauge their activities. Which salespeople kind of like. They don’t want to just bring in customers. They want to build relationships.

Gabe Larsen: (13:13)

Peter Fader: (13:13)
And so let’s use these lifetime value metrics for sales as well. So that’s one step away from marketing and then maybe the next step away would be on the supply chain. So as much as we want to deliver things quickly and cheaply to everyone, we’ve got to make sure that we get the stuff to the good customers in a way that’s even going to be fast and really reliable. So let’s tip our supply chain a little bit more towards them. So basically we take these ideas and have them diffuse through the organization one step at a time and product development is several steps away. And sometimes there’ll be a lot of pushback from those folks, but if we can win over enough parties within the organization. Now for me, the ultimate partner that we want to have would be finance. And all too often, the folks in finance are really, really skeptical of, if not downright disdainful of what’s going on in marketing. And so that’s been a Holy Grail for me personally, that’s been over finance and that’s what I’ve been doing lately and a lot of my recent research and my newest startup; the idea of customer based corporate valuation. If we can show the CFO that she can do a better job of valuing the entire company from the bottom up by projecting the number of customers they’re going to acquire and the value that will derive from them and go to Wall Street and say this is what we’re really worth. Then we’re going to win her respect and then it’s going to spill over across the organization. And we’ve been doing that for real and it’s been amazing how well that’s been working.

Gabe Larsen: (14:49)
Wow man it sounds like you’ve got your hands full, project here, project there, project there, project here. Ultimately, so this finance thing that you just talked about, maybe just one more click on that. So just bringing it all together, you get this kind of customer centric message and this customer, prioritization engine or model working and you’re really starting to focus on this as a strategic, go to market, what, what does that do different for the organization? Maybe that’s an obvious question, but are you seeing that, end outcome, you know, valuations are higher, end outcomes, the NPS scores are bigger, better, it’s lifetime value grows? All of that?

Peter Fader: (15:35)
All of the above. I’d be happy to give you the specifics on it. So, one thing just from a spreading of the gospel, like we said, we’re going to start with marketing, more over sales [inaudible], and so on. Once we get to finance, then these ideas, these practices, spread like wildfire through the organization. At that point, all of this — once the CFO nods their head and says, yeah, I’m on board with it, then all the other C level people are instantly bought in. I mean, let’s just face it. That’s the power and respect the CFO has in the organization. So it just helps spread the ideas. That’s number one. Number two, all of the stuff, the idea of building relationships for the long run instead of trying to squeeze as much money as we can out of our customers today goes against the grain of traditional Wall Street valuation procedures. It’s really hard for a company, for a CEO to stand up in front of Wall Street and say, trust me, our quarterly numbers aren’t that great, but just wait till what they’re going to look like in two years. But once you have this lens of customer base, corporate valuation, you can actually go to your external stakeholders and say, look at these customer assets. Maybe they’re not showing up on our balance sheet, but they’re real and hold us accountable for them. It’s a kind of thing that Jeff Bezos has been doing informally for for years, but now we’re showing how to do it formally where we’re really working with companies directly, with investors and saying, here are those future looking numbers. You should share them, you should hold yourself, and me, accountable for them. And it works.

Gabe Larsen: (17:14)

Peter Fader: (17:14)
So you get the external buy in as well and it really gives a jolt to these ideas that, I hate to say it, that no internal marketing activity can ever achieve.

Gabe Larsen: (17:29)

Peter Fader: (17:29)
So this is something I had never thought about. Like again, if you looked at my first book, there was never this notion at all, but the key to finding success in customer centricity is win over the CFO first.

Gabe Larsen: (17:41)
I love that. I love that.

Peter Fader: (17:43)
Again, this is what I’m seeing. So if you look at my new startup company called Theta Equity Partners, thetaequity.com, it looks like a straight investor play and working with private equity firms and others, just to basically show the value of the customer base or the companies that they’re working with. We’re trying to make it distinctively appealing to them about, again, once they see the value of it, then they start to ask these questions. Wait a minute, wait a minute. Why has all this customer value plateaued? Is it that we’re not acquiring enough customers, they’re not staying long enough, not spending enough? So it starts getting the CFO to start asking marketing type questions and having a really productive conversation with the marketing folks instead of just saying, no, all the time.

Gabe Larsen: (18:35)
Boy, do I know that world. But I do find it fascinating Peter. Right. It’s kind of like the way the world finance has always been. It’s been more of the lag, I’m going to use lagging indicators. We always are looking back and what I’m hearing you say is if you guys can start to look at, I’m going to use the word broadly, like leading indicators, but maybe something that’s not your typical SaaS metric, for example. It’s more customer focused. That would be different.

Peter Fader: (19:04)
So, let’s spin it around. You mentioned just a few minutes ago, net promoter score. Well, so we’ve been spending a lot of time talking to the current holder of the flame of, of NPS. That’s Rob Markey at Bain Consultants.

Gabe Larsen: (19:20)
Yes, absolutely.

Peter Fader: (19:20)
He, along with Fred Reichheld, who first came up with the ideas, they’re not just standing still and just shouting about NPS and ending the conversation there. Rob, to his great credit, is thinking exactly along the lines that you just mentioned, which is let’s augment net promoter score with other forward looking customer metrics. Ones that are a little bit more behavioral and not just attitudinal, like NBS.

Gabe Larsen: (19:46)
I love it.

Peter Fader: (19:46)
Let’s figure out what metrics will be good indicators of how profitable and healthy our customer base is. And you know what? Let’s not just talk about them. Let’s not just insist that our clients look at them and disclose them. Well, let’s go to regulators. Let’s go to financial accounting standards boards and say, you know what? You should be mandating that every couple of weeks we should put these things out there.

Gabe Larsen: (20:14)
I love it, I love it. I love it. That’s so funny.

Peter Fader: (20:14)
Now this is real. If you go look at the current issue of the Harvard Business Review, Rob has an article and we basically have companion articles where he’s talking about the new loyalty economy and painting this picture about how the world has changed. And then we have this companion piece about customer base, corporate valuation. This is my partner in crime, Dan McCarthy and myself. And we both submitted letters literally to FASB, the financial accounting standards board, saying things have got to change; these metrics really work. We should really be having a conversation about which one should be disclosed, what caveat should be associated with them, what investors should or shouldn’t be doing with them. We’re really, really serious about this. And, it’s really taking off, I mean, just in the last year or two, it’s amazing how much progress we’ve had and it’s just beautiful how we’re building the bridge between marketing and finance in a way that it was just really inconceivable just a couple of years ago.

Gabe Larsen: (21:15)
Yeah. This is, I’m looking at the Harvard business review, you guys. Interesting. Well, I know, I know we’ve got a hard stop here, so let’s, let’s let you jump. But wow, real interesting dialogue. If someone wants to, Peter, learn just a little bit more about some of the things we’ve talked about or learn a little bit more about you. What’s the best way to do that anywhere you’d send them.

Peter Fader: (21:35)
So, three different directions. So there’s me personally, so I’m always tweeting about this stuff @faderp, love to connect with people on LinkedIn, keep the conversation going there. Then there’s the day job if you go to Petefader.com you see my Wharton faculty page and all the research, teaching stuff. And then as I mentioned, there’s the new startup thetaequity.com, where would we have all these wonderful case studies of how we’ve valued publicly traded companies from the bottom up using these marketing metrics. So lots of different things. They might seem kind of different and unrelated, but they really do come together and paint this picture of what customer centricity is and what it should be.

Gabe Larsen: (22:18)
I really think that’s forward thinking, Peter. I mean, we’ve been looking backward long enough, so I appreciate your work. I’ll have to check some of that out. I had gotten your book, but I was truthfully not aware of some of these other projects. So I appreciate you taking the time.

Peter Fader: (22:29)
And Gabe, I appreciate your giving me the opportunity to talk about it.

Gabe Larsen: (22:32)
Alrighty well we’ll let that, and I’m sure the audience appreciates it. And for both of you, have a fantastic day.

Exit Voice: (22:46)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


Being Prepared in a Time of Crisis with Dr. Merilee Larsen

Podcast: Being Prepared in a Time of Crisis with Dr. Merilee Larsen TW

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In this episode of Customer Service Secrets, Gabe Larsen invites Dr. Merilee Larsen to discuss the essential and non essential things we need in this time of crisis and how we can be prepared. Merilee is the Assistant Professor at Utah Valley University. Her background is in disaster thinking and education. She has been at Utah Valley University for 20 years and within that time, she has switched from Emergency Medical Services to Public Health. Dr. Larsen has a Masters in Public Health and a Doctorate in Health Education. She is very authoritative on crisis prevention and, during her time with Gabe, she shared some valuable insights for all.

Fear, Hoarding, and What You Actually Need

It has been very clear that the current COVID-19 pandemic has struck fear into the American public and citizens of all nations. The United States has experienced an interesting side effect of the pandemic: excessive purchasing at grocery stores. On that note, Merilee did an experiment with her social media followers. She wanted to determine which items were out of stock and the location tied to that shortage. Dr. Larsen found that cleaning products are out of stock in most places, but results also showed that the Midwest has been buying superfluous amounts of toilet paper. Merilee also mentioned that the excessive shopping and hoarding of items, like toilet paper, is driven by fear. It has become a trend that people participate in because they see others doing it. She states, “I have a friend who went to the store to get paper cups and came home with $300 worth of groceries. And when I said, ‘Well, why did you do this?’ She said, ‘Well, everybody else was doing it and I didn’t know what to do.’”

The solution is not to hoard. Rather, we should be preparing for a 14 day quarantine. Merilee clearly states that we need to have a good food supply. Fruits and vegetables, non perishable items, and a sweet treat to help on tough days. While having an abundance of toilet paper isn’t necessary, she recommends focusing on other toiletries like shampoo or toothpaste and staying on top of prescription medications. By focusing on the daily essentials without hyper focusing on toilet paper, people will be more prepared and less stressed for the coming weeks.

Physical and Mental Health Tips

In her dialogue with Gabe, Dr. Larsen gives listeners a suggestion to promote physical health: we should be washing our hands for at least 20 seconds. While this is simple, it will make a big difference. The disease spreads when “droplets” land on a surface, a person touches those surfaces and then that person proceeds to touch their face. By washing your hands, it is less likely for the virus to spread. On top of that, daily physical exercise is recommended not only for physical health, but especially for mental health. Combined with good nutrition, exercise can help calm a lot of the symptoms of anxiety and depression. In addition, because of the need for isolation and the extended time people are spending with their families, Merilee recommends having a family mental health plan. She states, “Talk over this with your families. Make sure that there’s a plan so you guys can handle being in close quarters together or with your roommates or wherever you’re at. … Have a plan for conflict and … a plan to handle anxiety and depression in your home.”

What is Social Distancing and How is the World Going to Change Because of the Pandemic?

Social distancing, the buzzword of 2020, is avoiding public places and large gatherings. Most states have regulated the size of gatherings or have been placed in a state of emergency. However, when people are required to leave their houses for certain things, like going to the grocery store, the public has been asked to be socially distant. When possible, it is recommended that we stay at least 6 feet apart.

Merilee adds a visual to social distancing, she says, “imagine as if you are holding a hula hoop around you. Don’t let anybody into your hula hoop space.” This prevents the spread of the virus further. Merilee and Gabe also comment on how society will change because of the pandemic. Isolation will probably become a common practice for the flu, the custom of shaking hands might go away and new social norms will appear. Businesses are learning to be flexible, and with technology, employees are becoming a “remote workforce.” Despite all these changes, Merilee is hopeful for the future. One of her final statements is: “I have high hopes for us. I hope that we can — I think we can come out of it, but yes, I think it will change how we are doing things and how we continue to do things.”

To learn more about individual and public health amidst the COVID-19 pandemic, check out the Customer Service Secrets podcast, and be sure to subscribe for new episodes each Thursday.


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Listen to “How to be Prepared in Times of Crisis | Dr. Merilee Larsen” on Spreaker.

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Full Episode Transcript:

Being Prepared in a Time of Crisis with Dr. Merilee Larsen

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
Hi, welcome everybody. We’re excited to dive in. I think this will be a fun talk track today. We’re going to be talking about preparedness during today’s crises. And to do that, we brought on Dr. Merilee Larsen, currently Assistant Professor of Public Health at Utah Valley University. Merille thanks for joining. How are you?

Merilee Larsen: (00:32)
Good, thanks Gabe. Thanks for having me on.

Gabe Larsen: (00:34)
Yeah, I think this will be obviously very timely. It’s a fun talk track. Before we dive in, maybe you could take just a minute and tell us a little bit about yourself and kind of your background.

Merilee Larsen: (00:45)
Sure. Thanks. Like you said, I am an Assistant Professor at Utah Valley University. I have been there for 20 years. I spent the first decade teaching in emergency services. So I have a background in EMS and emergency services and then the second half I have been in public health. So I have kind of an interesting combination of emergency services and planning and preparedness coupled with public health. I have a Master’s in public health and a Doctorate in health education that I got from Loma Linda University. And so my research base is in disaster thinking and in education. And that’s kind of my background.

Gabe Larsen: (01:27)
Well that’s very fitting because that seems to be where we are; the word disaster. A lot going on in the world and we want to dive into it. As we talked a little bit before we jumped on, right? I mean, obviously we have an interesting situation going on in the world today. Many business leaders kind of wondering what’s going on with this virus that’s going around. How can we be thinking about it? And so today we wanted to dive into that and figure out how can we think about preparedness in these times of crisis. So maybe let’s start big picture for a minute and I do want to narrow in a little bit on this Coronavirus. Maybe talk to us about just the basics of it. I think there are some spells about how do you get it, myths about how dangerous it is. Big picture, what’s going on here?

Merilee Larsen: (02:13)
Okay. So the Coronavirus or COVID-19, it is basically kind of a major virus. It can infect both animals and people. We have had outbreaks of coronaviruses in the past. If you think of like the SARS outbreak or, there’s a Middle East outbreak called MERS. Both of those we’ve had. Normally SARS type infections can cause very mild respiratory infections, like the common cold. But this particular virus is crazy. It’s kind of a gangbusters virus. So it’s big. Currently right now, CDC estimates in the United States, we have 300,000 infected as of today. So it’s pretty major. And the reason that’s so big is because it’s new. Nobody’s ever had it before. Nobody’s ever had this kind before. So it is highly transmissible and easy to get.

Gabe Larsen: (03:04)
Yeah. When you talk about the virus itself; anything that jumps out to you as things that… either ways people can get it or ways people can’t get it. I’ve heard some things about my kids swinging on a swing set, boxes coming from Amazon versus direct contact; sneezing, coughing. Any kind of thing you’d highlight there as people think about some of these different things that they’re trying to avoid in order to not get this?

Merilee Larsen: (03:36)
Sure. Well, things to avoid would be direct contact. Once you have it, you have these, basically droplets that you can breathe out or you can talk out or you cough or sneeze on somebody, which is super gross, and it travels through the air. So, most of these respiratory droplets, they just kind of fall to the ground in front of you. But if you’re in super close contact, you’re going to breathe them in or you’re going to get them on your hands and touch your eyeballs. If you’re a kid, you’re going to pick your nose. I mean, and you’re going to get sick. We don’t really know how long they can live on surfaces. Scientists are estimating three to four hours. So is there a little bit of a risk with going to the park or touching things that other people have touched? Yes. There’s a little bit of a risk, but there’s differences. Your Amazon boxes, you’re probably fine. They’re finding that it’s not living on cardboard for super long, but it can live on non porous surfaces. Like stainless steel, still up quite long there, but not on copper. So it just depends on what you’re touching really.

Gabe Larsen: (04:37)
I don’t know all the things that I’m touching. Now I’m thinking about it. [inaudible].

Merilee Larsen: (04:37)
Thank the Lord. Amazon, you’re fine. Prime, we’re going to all be okay. If we can’t get on prime we’re not getting it anywhere.

Gabe Larsen: (04:51)
That’s good, right? Obviously, everything is shutting down. That’s good. Kind of set the level. I know a lot of people read that, but just to kind of set the table. I think the more important thing is where do you go next? Right? So, knowing the times have changed, knowing that we are in a crisis situation, you are hearing things like people making a run for this crazy stuff going on with toilet paper. Right? And that being almost a psychological thing of preparedness. As you think about preparedness and thinking about the times we’re in, how should we be prepared or how can we prepare?

Merilee Larsen: (05:24)
Well, for starters, you’re not going to need this much toilet paper. You’re going to be fine. Everybody’s going to be fine. We need to back off the toilet paper, otherwise you’re going to be very hungry, but you’ll have tons of toilet paper. So we want to try and avoid that whole thing if we can.

Gabe Larsen: (05:43)
Have you seen some of those videos? It’s just crazy, right?

Merilee Larsen: (05:43)
Yes, it’s insanity!

Gabe Larsen: (05:47)
I mean, look, you gotta go, you gotta get what you can get. But, it’s like what is this craziness with toilet paper? But it must be…

Merilee Larsen: (05:54)
I don’t know.

Gabe Larsen: (05:54)
…Our brains that knows we’re panicking and so that’s all we know how to get.

Merilee Larsen: (05:58)
Toilet paper and water. So I hope you’re going to be okay. But, your systems are going to be fine. You can drink water out of your tap. You’re just fine. Toilet paper, you probably need enough in your house for 14 days, maybe, maybe three weeks. I don’t know. I don’t know how much you’re going through, but you don’t need that much. So, if you’re looking at true preparedness and if you’re looking at their recommendation that FEMA is making, you do need food. You need at least 14 days worth of food. So that means perishable and non-perishable and some candy. Everybody’s going to need some candy. So just get some good stuff that you can keep in your house and that you have enough for everyone to eat. Candy and novelty items are really good to kind of break up things, especially if you have kids or if you’re like me and you just kind of need something at the end of the day so you don’t go crazy. Like you just need a little, you need a Twix once in a while. So, some shelter items that are always nice to have on hand. Like if you have a wood burning stove; it’s freezing here in Utah right now, so you might need some wood or something like that. Propane is always nice if you have access to that. So, everybody you need to wash your hands and do it for 20 seconds. Dipping it under the water and pulling it back out, that doesn’t work.

Gabe Larsen: (07:14)
I mean this is obviously, I don’t want to mock it but, this is obviously real. [inaudible] Follow some of the best practices you’re seeing around the 20 second thing, etc.

Gabe Larsen: (07:24)
Right. Sing the chorus to your favorite song; a little “Mr. Brightside,” a little “Touch of Grey,” whatever. Sing the chorus to it while you’re washing your hands. It’s perfect. 20 seconds. Do it when you leave your house and come back, wash your hands, kids too. And then watch your face. Don’t touch your eyeballs. Don’t pick at your teeth, keep your hands out of your face. You’re going to need some household goods. You probably need some laundry soap. You probably need some dish detergent, some paper towels. The big thing that we always talk about is cash. You really need to have or work on having enough savings that if you are out of work for however long this quarantine lasts, that you can afford it. You can afford to pay your utilities, you can afford to pay door dash; because we all know we’re going to use it. Then you just have enough cash on hand so that you can pay your bills for two weeks or more. So you need some stuff if you’re bored. You need maybe some board games, some books, some things to pass the time, which is a big one. If you have babies, you need baby supplies. Diapers, again, don’t hoard. But, you do need enough diapers, wipes and formula for your little ones. And if you have a neighbor that has one, they could always use a little help. Personal hygiene items; shampoo, conditioner, tissues, floss. We all appreciate it, some floss. Prescription medications are huge. If you have a prescription for something, make sure that you get those filled. I recently had to have a prescription filled for my little boy and we waited for three days because they had so many prescriptions to fill. So make sure you’re ahead of the game on that. Talk to your doctor and if you have pets, please get some pet food for your pets at least long enough that if you have to stay inside for two weeks or more that they’re covered as well. So mentally, we also talk about mental preparedness. Talk over this with your families. Make sure that there’s a plan so you guys can handle being in close quarters together or with your roommates or wherever you’re at. And if you have a plan for conflict and if you have a plan to handle anxiety and depression in your home. The mental aspect is just as important as the physical, always, especially in this time. There’s a lot of fear going on right now and we have to help each other and we have to help…

Gabe Larsen: (09:33)
Yeah, it does seem like one of the areas that people, I mean, and I think we’re hoarding different items is as we kind of go into this nervous preparedness or whatever that psychological state is of hoarding. But, yeah, the mental thing is a little bit overlooked. Whether that’s in work or at home. I definitely find that that resonates with me as I’ve talked to different employees. I’ve got obviously family myself and there are ups and downs. Is there anything, I mean you mentioned kind of having a plan. Is there other things from the mental preparedness standpoint? A little bit of exercise, psychological, well I don’t know if there’s psychological help that is available to different people, but any other thoughts on the mental side?

Merilee Larsen: (10:14)
Yes, mental — always, exercise is great for mental health. It does wonders for anxiety and depression. There’s countless amounts of studies and research that’s behind that. So really if you’re feeling an anxiety attack, come on, I would recommend for you to go out and take a walk or a run and that can really help pull back some of those symptoms. Other things mentally is to eat a little better, to choose a little bit healthier food and that can help mental clarity as well. There’s an app called Calm, which is fantastic, that has meditations and things like that on it that are really helpful. And there are a few apps that you can find out there that have chats with psychologists. So if you need to, there’s an option for that kind of thing as well. Now that we can’t really — there are a lot of psychiatrists and psychologists who will do face to face over zoom and that option is out there as well. But I would really tell you to try and get a little more exercise, try and eat a little better. And if you’re feeling it come on, go put some running shoes on and go for a walk.

Gabe Larsen: (11:14)
I like the mental and physical part. And do you have any thoughts as to why — I mean, is that just human nature? I mean, we joked a little bit about the hoarding and the toilet paper and stuff, but is that just the grasping at straws mentality or why do you feel like people went that direction versus maybe some of the recommendations you said, which was a little more food preparedness or a little more mental preparedness. Is that just the human emotion kicking in?

Merilee Larsen: (11:43)
I think it’s fear too. And it’s kind of interesting as I’ve been talking to people and doing a little more research during this time, I have a friend who went to the store to get paper cups and came home with $300 worth of groceries. And when I said, well, why did you do this? She said, well, everybody else was doing it and I didn’t know what to do. So I think we’re kind of following each other and we are very panicked about the unknown. We don’t know what the next six weeks is going to look like. And we’re afraid to go without. And you know, people are choosing different things. We see our neighbors…

Gabe Larsen: (12:18)
Because we all deal with it a little differently, right? Now you did a little exercise. What was that? You did a little exercise where you had different people send to you as they were going around and shopping. What was that?

Merilee Larsen: (12:27)
I did. On my social media I asked my friends from all over the world to tell me what their grocery stores were out of and where they were located. And it was kind of fascinating to see the Island of Tahiti was out of hand sanitizer of all things. And we had — I had friends and it seemed like more in the Midwest toilet paper seemed to go like wildfire. But in other places, it was hand sanitizer and Clorox. So it was kind of fascinating to see what was happening where and where the panic was.

Gabe Larsen: (13:00)
Hmm. Interesting. We’ll have to check that out. As we think about businesses, I want to turn just for a minute. Definitely we’ve got companies with the economic struggles now that this virus is putting on the economy. I mean it’s obviously very real and many people are facing dire and sometimes interesting situations. We’ve got business leaders trying to take care of their customers and their employees. As you think about preparedness, and maybe more on the employee side, is there anything you’d recommend to business leaders — and maybe it goes down kind of that mental preparation and enabling some of that as people are facing things in their personal life and also trying to manage work — that you’d recommend to them as they try to navigate the business side of the preparedness equation?

Merilee Larsen: (13:52)
The business side is kind of an interesting side. This is a side that there’s so many facets to. But really a lot of the top, I would really talk about flexibility. I think too, as a business leader, I would look to see how flexible we could have our employees be. Can we reduce our meetings and our travel? Can we do more on Zoom? But can we still somehow stay connected? Maybe have morning coffee over Zoom or whatever it looks like for you. Being transparent with your employees as well as your customers I feel like that is huge as well. And if you’re having your workers come into your workplace, really stress hygiene and making sure that everyone’s taken care of in the building, but then when they leave so that we’re not just becoming a hotbed of illness and then carrying it out to the families. But really be flexible. Really have your people self-monitor if they’re feeling sick and if they need to, have the flexibility that they can isolate or quarantine at home. That is a great way to help.

Gabe Larsen: (14:54)
And make it a little bit easier both for the business as well as I think for society as a whole. We were talking a little bit about social distancing and obviously that’s become a big buzzword. It is something people are kind of practicing, but I don’t know if I know what it means. I know what it generally means. But, what are the best practices for social distancing that you have in mind? Again, I’m thinking of some people, you know, a lot of businesses are obviously closing. Some are mandatorily staying open to others. You’ve got factories, you got Amazon; people are trying to still manage. Best practices in this kind of social distancing for people who are put in a situation where they may need to be around others and interact with others?

Merilee Larsen: (15:40)
Social distancing is really, you’re trying to avoid large events, mass gatherings. So, imagine as if you are holding a hula hoop around you, don’t let anybody into your hula hoop space.

Gabe Larsen: (15:51)
I like that.

Merilee Larsen: (15:51)
Socially distance. No close talkers. Keep them outside of your space.

Gabe Larsen: (15:57)
Yeah. Is there kind of that hula-hoop, is that about the right distance? I mean, is it 12 feet, six? I think I’ve heard six feet.

Merilee Larsen: (16:05)
Six feet is great, but if you’re in a situation where you’re in a meeting, then maybe just try for that hula hoop distance. Something is better than nothing.

Gabe Larsen: (16:16)
Wow. Crazy times, right? I’m starting to kick off — I went to one conference, this is now weeks ago, but it was just the beginning of it and they kind of, you know, no handshake conference, right? So people were, it was awkward. We were doing this elbow thing and fist bump thing and that was a month before. I wonder how this — assuming things do continue, assuming things improve — how this will just change. Obviously we’ve got the flexible workforce, a remote workforce. We’ve got interactions between people as they talk about different waves, if you’ll kind of get rid of things like social norms of shaking hands? Some people say the world will never be the same, but hopefully we have semblance here.

Merilee Larsen: (17:01)
Well, hopefully, hopefully we can get back. I think it’s going to take a little bit of time though. Like if you look at the last time we used a federal quarantine, the last time we were totally restricted was the Spanish flu in 1918.

Gabe Larsen: (17:14)
Is that right?

Merilee Larsen: (17:14)
Yeah. So, it took a little bit of time to come out of that. But I think I have high hopes for us. I hope that we can, I think we can come out of it, but yes, I think it will change how we are doing things and how we continue to do things. We may socially choose to isolate in flu season normally. And that’s not a bad thing. So this may change the atmosphere of public health, which I don’t hate. It’ll be okay.

Gabe Larsen: (17:44)
1918, right? This definitely is unprecedented. I mean, I’m not that old, but I’ve lived through the 2000s, 2004, 2008. This is definitely different than all of those so it is uncharted water. But, real interesting talk track, appreciate you jumping on and talking through just some of the different things companies and people can do to get prepared in these times of crisis. So, if someone wants to get in touch with you or just learn a little bit more about some of the things you’re thinking about, is there a good way to contact or stay connected?

Merilee Larsen: (18:16)
Yeah, my LinkedIn page is great or you can feel free to email me at merilee.larson@uvu.edu.

Gabe Larsen: (18:24)
Awesome awesome. All right, well, really appreciate you taking the time and for the audience. Have a fantastic day.

Merilee Larsen: (18:29)
Thanks Gabe.

Exit Voice: (18:38)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


How Customer Service Has Transformed in the Last 20 Years with Brad Birnbaum

How Customer Service has Transformed in the Last 20 Years with Brad Birnbaum TW

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In this episode of Customer Service Secrets, Gabe Larsen is joined by the CEO of Kustomer, Brad Birnbaum. They discuss the transformation and evolution of the customer service experience over the last two decades. Brad started his customer service career by founding eShare Communications. As Chief Technology Officer and Executive Vice President of Product Development, he helped create the first chat tool used for customer support. He later co-founded Assistly, which was acquired by Salesforce and rebranded as Desk.com. With his extensive knowledge and experience in the CX space, Brad knew where solutions in the market fell short. He decided to create what customer service agents were looking for and founded Kustomer, a company dedicated to creating a modern customer support tool for the 21st century. In this podcast, Brad and Gabe discuss how the industry has changed, the different channels being used today, and what companies can do to create rich support experiences. Listen to the full podcast below.

The Evolution of the Customer Service Experience

Customer Service has drastically changed within the last 10-20 years. With the advent of online support, customer service was done over chat, and it was very transactional in nature. Phone support was used, but chat options were preferred. Due to the creation of new technologies, chat use declined at first but came back strong. Channels like Facebook messenger, SMS, and web chat solutions soon became popular. Brad summarizes this point well by stating, “We were doing a tremendous amount of support through chat and I sort of saw chat tapering off in the […] 2010s. It wasn’t nearly as popular. And I think with … mobile phones coming online and then people starting to really text… chat just took on a new light.”

An Omnichannel Approach Creates a “Rich Support Experience”

Today, there are multiple channels used in communicating with customers. In order to create a “rich support experience,” companies need to consider their customer when deciding which channels to use. Brad specifically warns against singular channel customer service because it often creates frustration for both the consumers and the agents involved. Although phone calls generally come to mind when customer service is mentioned, Brad suggests that calling should not be the only option available. In fact, he recalls what issues surface when you focus on a singular channel.. “In those traditional systems, a ticket or a case can be a one channel type, a singular channel type. What that does though is [it] creates a really miserable experience for customers because, in the end, you’re going to get agent collision.”

Supporting Customers and Creating Success

Now more than ever, consumers are demanding excellent service from brands, and the bar is constantly being raised. Brad gives a great insight into what the attitude of an organization should be when it comes to supporting their customers. He states, “mak[e] sure you’re supporting your customers in the way that they want to be supported.” It’s all about the people. The more brands focus on their customer’s needs, the happier and more loyal that customer will be, leading to company success.

Brad shares a few ways to keep customers happy, but first he asks brands to remember that negative experiences travel faster than positive ones. Consumers immediately turn to social media, friends, and family when something goes wrong. Therefore, companies need to overemphasize the positive experiences they have and put all of their efforts into creating a quantity of quality experiences. Brad mentions that this can be done by having a “higher caliber of agents” with exemplary training. Having the right tools to enhance the training of the agents is also essential. Brad knows Kustomer’s product is the type of tool to “enable […] agents to be successful” in creating the support system that consumers are looking for.

To learn more about the evolution of the customer support experience and how that affects businesses, check out the Customer Service Secrets podcast episode below, and be sure to subscribe for new episodes each Thursday.


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Full Episode Transcript:

How Customer Service Has Transformed in the Last 20 Years with Brad Birnbaum

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.

Gabe Larsen: (00:11)
Welcome everybody to today’s podcast. I’m excited to get going. We’ve got Brad Birnbaum here, CEO of Kustomer. Brad, thanks for joining. How that the heck are you?

Brad Birnbaum: (00:19)
I am great. I am great, excited to be on my first podcast with you.

Gabe Larsen: (00:22)
That’s right. Kicking off the Customer Service Secrets Podcast. I wanted to have Brad on. Brad, can you tell us just a little about yourself and what you do over here at Kustomer?

Brad Birnbaum: (00:32)
Sure, my name’s Brad Birnbaum, CEO and co-founder of Kustomer. Been in the customer service space my whole career, started my first company in the mid-nineties, focused on doing internet-based customer service. We were one of the first companies doing so. We used to be the online customer service for companies like Microsoft, Dell, Sprint, AOL, et cetera. And, I’ve just been a part of many, many companies along the way and on that journey, had a couple of great exits. Fast forward a little further along, I co-founded Assistly in 2009 and we’re all about SMB, SaaS services. It was kind of awesome back then and we were doing real, real well. It was frankly 18 months from–

Gabe Larsen: (01:13)
That’s so cool!

Brad Birnbaum: (01:14)
[inaudible] from Salesforce and it was a super fun ride being a part of Salesforce, but ultimately –

Gabe Larsen: (01:22)
Three years with Salesforce. Right?

Brad Birnbaum: (01:22)
I spent three years with Salesforce.

Gabe Larsen: (01:24)
And what were you doing over there?

Brad Birnbaum: (01:25)
Well, when Salesforce bought Assistly they rebranded it to Desk.com and that was our SMB play for customer support.

Gabe Larsen: (01:33)

Brad Birnbaum: (01:33)
And we were very focused on that; frankly, doing well. But, decided that there was a bigger vision out there. And, we just saw the opportunity to do something in a much more modern way than what Salesforce was doing at the time. We understood the value of the Salesforce platform, but it was 20 years old. It was built in a different generation; I would argue almost two generations ago. It was built pre-AWS, it was built pre-mobile, the tech around it was different, there was no such thing as documents stores, and was built on RDMAs. We knew that the world needed a better version of it and decided to set forth and create Kustomer with that in mind. Right? So we wanted to reinvent, or re-imagine the customer service space.

Gabe Larsen: (02:18)
Yep, yep.

Brad Birnbaum: (02:18)
So, the platform first approach. It took us over two years to build our platform and our platform was designed to know everything about customers, to be able to take that information that company has acquired about customers and use it to enhance support experiences.

Gabe Larsen: (02:34)
I love it. I love it.

Brad Birnbaum: (02:34)
Use it to present support agents with the relevant data they need to provide that optimal support experience customers want. Use it to automate routine and mundane tasks in RPA like fashion with our business process automation, especially in retail. We’re seeing just amazing benefits and efficiencies around that and overall improvements in customer satisfaction. It’s been a great journey and, Kustomer is about five years old now and it’s starting to transform the world.

Gabe Larsen: (02:58)
I love it. I love it. Well, let’s get into that. I think that’s a good introduction. 20 plus years in customer service. You highlighted a little bit, some of the challenge, but also what customer service looked like back then. And then as we start to translate into, what it does look like now, how would you paint that picture of some of the big changes?

Brad Birnbaum: (03:19)
So, it was back in the 90s and early two thousands, it was super transactional in nature.

Gabe Larsen: (03:25)

Brad Birnbaum: (03:25)
We still see some people’s view of that as transactional in nature, but it was, it was very transactional in nature. In the late nineties and early two thousands, we saw chat as a really up and coming channel and everybody was jumping on chat.

Gabe Larsen: (03:38)
But that would have been new because phone was–

Brad Birnbaum: (03:41)
Yeah it was. Phone and email was coming online, but we saw a lot of chat. We were doing a tremendous amount of support through chat and I sort of saw chat tapering off in the two thousand and 2010s. It wasn’t nearly as popular. And I think with the resurgence of, well mobile coming along, mobile phones coming online and then people starting to really, you know, text and things went right. Chat just took on a new light.

Gabe Larsen: (04:06)
Right, right, right.

Brad Birnbaum: (04:06)
It’s become an incredibly popular channel and all forms of chat, right? Whether it be web chat, mobile chat, whether it be Facebook messenger, chat, texting, et cetera, et cetera. We’re just seeing that being super–

Gabe Larsen: (04:16)
That is, I mean, you saw back in the 90s, but chat has kind of reemerged. Is it due to the mobile? [inaudible]

Brad Birnbaum: (04:21)
I do think so. I do think so.

Gabe Larsen: (04:22)
It’s old but new.

Brad Birnbaum: (04:22)
I think so. Think about how we communicate nowadays. I communicate probably more through various forms of texting, anything from Slack, to texting, to even LinkedIn messenger. It’s all, it’s all text-based, right? The amount of time I spend on actual phone calls is far less than it was 10, 20 years ago.

Gabe Larsen: (04:40)
Right, right.

Brad Birnbaum: (04:40)
You would probably say the same. That has been driving it for sure.

Gabe Larsen: (04:44)
So that was a big difference back then. But chat was coming online and that’s where you jumped in.

Brad Birnbaum: (04:49)
That is, that is.

Gabe Larsen: (04:49)
To see if you could provide a third channel for customer service back then.

Brad Birnbaum: (04:54)
For sure. Back then companies were just starting to understand what e-commerce looked like and they were realizing that the benefits of it and they were saying, well, if we’re going to start selling online and driving people online, we have to support online. And how do we do that? And chat was the predominant channel.

Gabe Larsen: (05:13)
Got it, got it. And then you also touched on, so chat was a big one. The new channel.

Brad Birnbaum: (05:16)

Gabe Larsen: (05:16)
This ticket concept or kind of the structuring of the way we looked at it.

Brad Birnbaum: (05:21)

Gabe Larsen: (05:21)
Zendesk, some of these created 15, 20 years ago. What does that mean when we say ticket? What does that? How else? What is the structure of that.

Brad Birnbaum: (05:28)
Sure, for pretty much all of eternity in various forms of customer support, it was, a very transactional nature. You were always bound by a ticket or sometimes people would call them cases. People use those words synonymously, right? And that was just a single incident, had a finite resolution. Um, but it was a very small piece of understanding the customer, right? Like businesses were always thinking of customers in terms of that ticket or case they weren’t thinking of customers as the actual person that they are. Right? Like you and I as we have gotten and grown to know each other, we form a relationship and we learn more and more about each other and it’s not that single transaction that defines us. It’s the entire relationship with the business that’s important. And we’ve seen this over the years as a barrier to amazing and incredible support experiences and knew that in transforming the way that people at the companies receive support can truly adopt that shift of the way the world’s going. So, here at Kustomer, we took a pretty different approach. We are support agents, people who use our product don’t think in terms of tickets or cases. They think in terms of customers and you’re always working on a customer. We call that our customer timeline. And the customer timeline is, everything about the customer, right? You might see what we call conversations. Some people might think of that as a modern lightweight case or ticket, but it’s more than that. And then inside of that timeline might be, if you’re a retailer, orders and shipping information, everything about that customer and how they interface with the business. And that has really transformed. The information architecture around it has transformed how support agents can–

Gabe Larsen: (07:09)
Can actually interact with their customers.

Brad Birnbaum: (07:11)
And customers really appreciate it and it is the modern way of engaging with customers, right? The world has gone from thinking of call centers as call centers and they’re now starting to really think of it as profit centers, right? They are investing heavily in amazing support experiences. They’re no longer trying to save 5 cents off a phone call. That’s not how the game is played, right? But it used to be that way.

Gabe Larsen: (07:32)
No, no. Absolutely. That at all costs $1 and 8 cents. How do we make it $1?

Brad Birnbaum: (07:37)
They’re no longer focused on that. Right? What they’re focused on is these amazing experiences–

Gabe Larsen: (07:40)
I love that.

Brad Birnbaum: (07:40)
–that you are investing in, right? As the world is going more direct to consumer, as the world is going online–

Gabe Larsen: (07:46)

Brad Birnbaum: (07:48)
–The stores in the malls are closing. The stores on Fifth Avenue are closing and companies are investing in a very different way. They’re investing in amazing experiences through tooling and through support.

Gabe Larsen: (08:00)
Got it, got it.

Brad Birnbaum: (08:00)
It’s producing repeat buyers, producing customers for life. And some of us, we’ve all seen the Zappos stories, right? Where our people stay on the phone for–

Gabe Larsen: (08:08)
15 hours.

Brad Birnbaum: (08:08)
–extreme amounts of time to provide those rich supporters. That’s extreme and exaggerated, but companies are embracing that philosophy because they realize once you get those customers, you get them for life and they become advocates and that’s what they want.

Gabe Larsen: (08:21)
I love that. I love that. Okay, so one big thing was certainly the ticket. Now focusing kind of on the customer. You talked a little bit about the channels, and I want to dive into… let’s go there next because back then it was kind of chat, phone and email. It’s like 30 now.

Brad Birnbaum: (08:38)
Look, there is more and more. If you look at your phone and all the different ways you communicate with your friends and family–

Gabe Larsen: (08:42)
And how important is that?

Brad Birnbaum: (08:44)
It’s very important because everybody has a preferred communication mechanism, right? Within our business, we use a lot of Slack inside the business, right? There’s different tools that people use. And some of my friends I will text with some of my friends, I might Facebook messenger with some, I might actually hit up on Twitter, right? We all communicate with people with a multitude of channels and escalate them accordingly, right? So, it’s important that you can converse with your customers in any way. The other thing you’ll, you know, that that has happened is there’s the immediacy of channels. You know, if customers, they may try a slightly more asynchronous channel and if they don’t get a response fast enough, they would gravitate towards moving towards a more synchronous channel–

Gabe Larsen: (09:25)
Got it.

Brad Birnbaum: (09:25)
–or real time channel. And ultimately each of those channels tend to be more expensive to support as well. Ultimately landing on telephony, on voice, which tends to be the most real time in nature. And, we’ve approached that in a really solid way, right? We’ve, we’ve changed, we’ve transformed it in that the way we think about omni-channels is very different than most companies do, as we’ve reimagined customer service. So, our definition of omni-channel is actually quite simple. It is a single thread of conversation around a topic where we could converse with your customers on any channels and provide support on.

Gabe Larsen: (9:58)

Brad Birnbaum: (9:59)
And while that sounds obvious and you’re like, of course Brad and I would tell you nobody does that, right?

Gabe Larsen: (10:03)
It certainly wasn’t that way.

Brad Birnbaum: (10:05)
None of our competitors do that, right? They, the way our competitors see the world is, is they, they do support you across different channels. But each of those channels would be a separate ticket or case, right? So if I have a problem with company X as a customer, initially I might email in and, I’m an impatient guy, so after 15 minutes–

Gabe Larsen: (10:22)
I jump to the channel.

Brad Birnbaum: (10:22)
–If I don’t get a response, I’m like, all right, I’m going to jump to another channel. Maybe I’ll text and I don’t get a response ultimately, maybe I’ll end up on voice. A lot of the solutions out there, really all the other solutions out there today, those will be three separate tickets for cases–

Gabe Larsen: (10:38)
The channel and searching, [inaudible].

Brad Birnbaum: (10:38)
Because in those traditional systems, a ticket or a case can be a one channel type, a singular channel type. What that does though is creates a really miserable experience for customers because in the end you’re going to get agent collision. So eventually agents will probably get to all three of those.

Gabe Larsen: (10:54)
Yeah, and you’ll get different answers.

Brad Birnbaum: (10:55)
Again, getting three responses. Hopefully you’re not getting three different answers; hopefully, or at least getting the same answer three different times and from three different people. But you’re wasting a lot of your business time because three of your agents are ultimately supporting them. Hopefully you’re not given three different answers because then your business really doesn’t– [inaudible]

Gabe Larsen: (11:11)
Actually, that’s a little bit, I’m nervous about that because one of my favorite things to do is call Delta, and if I get an answer that I don’t like, I like to call another agent.

Brad Birnbaum: (11:19)
Yeah, absolutely. Try again.

Gabe Larsen: (11:20)
So what you’re doing is you’re eliminating kind of my channel.

Brad Birnbaum: (11:22)
Sure, yeah, yeah. But for us, those all funnel into a single conversation, which is a really interesting and amazing paradoxical shift. And not only is it helpful for when customers contact you multiple times, through different channels, but even when you’re on the same channel, let’s say we’re on a phone call, and I’m like, Hey, you know, check out this link. I’m going to text it to you, and I can text it to you from the same conversation, and you’re getting it through touch while you’re on the phone call. You could click on it, see it if you want to. Like there’s, there’s a lot of value in being able to context switch.

Gabe Larsen: (11:50)
Cool. Makes tons of sense.

Brad Birnbaum: (11:50)
Through the proper omnichannel. And we’d probably do ourselves a disservice here by calling it omnichannel because it’s a word that’s so used, it’s so used by everybody else. But I just think they got it all wrong. Their definitions are just wrong.

Gabe Larsen: (12:02)
On this multichannel versus omnichannel can, I think sometimes be a little confused.

Brad Birnbaum: (12:05)
It’s very confusing, yeah.

Gabe Larsen: (12:07)
Okay. So, we got one is kind of the different view of the ticket and customer. Two is this channel thing.

Brad Birnbaum: (12:11)

Gabe Larsen: (12:12)
Data. Talk to me about data. I can only imagine when you were back in the day talking through different chatbots etc. The availability of data then versus now has got to be completely different. What does that mean for customers?

Brad Birnbaum: (12:23)
I know we saw over my entire career. We would always see companies trying to use the various point solutions that I had in market. Right? Starting from my first company eShare or to my most recent one, Assistlydesk.com where people were trying to stick data into cases or tickets. They were trying to know more about the customer, know more about the transaction and trying to stay–

Gabe Larsen: (12:46)
–But it wasn’t making–

Brad Birnbaum: (12:47)
–and it just didn’t fit. It was a round peg and a square hole. Right? It’s like, well, we need more custom fields on the case object, and we went from 10 to 25 to 50 to a hundred to ultimately 200– [inaudible].

Gabe Larsen: (12:55)
Why do you need all these customers?

Brad Birnbaum: (12:56)
Because you’re trying to fit data and because you want to have those richer support experiences; you want it to be more CRM-like in nature. But most of the solutions out there are not, they’re not CRM-like in nature. They are point solutions for ticketing. So, when we started Kustomer, we knew that we needed to think about the world differently. We knew that we needed to be a CRM system.

Gabe Larsen: (13:14)
Right, right.

Brad Birnbaum: (13:14)
Because the only way you can deliver amazing support experiences if you truly understand the customer that you’re engaging with, right? Otherwise you have such a myopic view of them you’re not going to provide that optimal experience. And if not, you’re then going to be context switching between a multitude of other applications to try to get that information out.

Gabe Larsen: (13:30)

Brad Birnbaum: (13:30)
Whereas in the Kustomer world, we’re able to actually aggregate it together, present it, leverage it for those richer support experiences. And then we’re able to take advantage of Kustomer IQ, which we’re rolling out, which will be able to automate a lot of routine and mundane tasks around that like something like processing a return or processing an exchange if a retailer could often be…

Gabe Larsen: (13:49)
That’s why, but the whole AI stuff comes in.

Brad Birnbaum: (13:52)
And it’s also our business process, our RPA business process automations where it could often take five different steps of going to one system, generate an RMA number; another system to process the return and another system to see if you have that same item and let’s say a larger size, let’s say if it was a shirt–

Gabe Larsen: (14:07)

Brad Birnbaum: (14:07)
If not, go to a suggestion engine, finding it in–

Gabe Larsen: (14:09)
Got it.

Brad Birnbaum: (14:09)
–Another one, ultimately placing the order. We can automate that down where it might take a person many minutes to do across these different systems with a whole bunch of copying and pasting.

Gabe Larsen: (14:18)
[inaudible comment]

Brad Birnbaum: (14:18)
When it’s in our system and when our system, our platform, what it means is it takes milliseconds to actually do actions.

Gabe Larsen: (14:24)
I love it. I love it.

Brad Birnbaum: (14:24)
What we’re seeing is we’re seeing it across our customer base, right? Significantly. Significant improvements in agent productivity and efficiency.

Gabe Larsen: (14:35)
Of course you eliminate–

Brad Birnbaum: (14:35)
We publish case studies where we’ve seen customers go anywhere from 10% to 25% improvement in engine productivity, which is just– which is massive. That’s not your five seconds off of a five-minute phone.

Gabe and Brad: (14:48)
That’s an agent. That’s measurable, right? That’s a day.

Brad Birnbaum: (14:49)
So you’re really able to … your customers are getting service faster so they’re happier and agents are not spending time doing those routine and mundane tasks. So, they’re happier because they’re spending their time actually doing what’s important and supporting the customer.

Gabe Larsen: (15:01)
Right, right.

Brad Birnbaum: (15:01)
And then your business is more efficient. So arguably you might need fewer agents. Right?

Gabe Larsen: (15:04)
No, I love it.

Brad Birnbaum: (15:05)
Which is arguably a very large cost for most customers and [inaudible] agents.

Gabe Larsen: (15:07)
And I still think people are always looking for ways to make that more efficient. Right?

Brad Birnbaum: (15:12)
Of course, of course.

Gabe Larsen: (15:12)
Got it. All right. Well, love the three trends, kind of big differences that you’ve seen in the past and now in present day. Because you think about the audience and maybe this is just kind of your final summary statement. You’re a new customer service leader trying to make a change in your organization. What’s kind of the baby step or the one takeaway you’d say, guys, my quick advice for you would be start here or do this or do that. Anything you’d kind of leave for the audience?

Brad Birnbaum: (15:37)
Well, I mean, I would say make sure you’re supporting your customers in the way that they want to be supported. Right? They– the bar is going up and up every single day, right? People are, when you have a bad experience, you’re taking it to Twitter, you’re telling all your friends about it, right? So over index on those amazing support experiences and the ways to do that would be through higher caliber of agents here that are very well trained and then a tool that’s going to enable those agents to be successful. And certainly, our product can help you do that. But I would focus on that. I think that’s one of those amazing support experiences that will drive customer loyalty and retention.

Gabe Larsen: (16:15)
Yeah. I like, you’re right. The bar is being raised and if you don’t do something quick, you’ll be falling behind. So, Brad, thanks for joining.

Brad Birnbaum: (16:24)

Gabe Larsen: (16:24)
Appreciate your time and for the audience, hope you have a fantastic day.

Brad Birnbaum: (16:28)
Thank you much.

Exit Voice: (16:36)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.


How Automation and AI Can Help Your Business Succeed in Customer Service

Why AI and Automation are a Man’s Best Friend Twitter

We all know that customer experience is becoming more important than price and product when it comes to loyalty. And the businesses who prioritize customer experience are the ones that are succeeding. The question becomes, when that awesome customer experience begins to pay off, how can you continue to execute on a high level of service without hiring an army of people, or sacrificing the human touch? AI and automation can help you scale.

How Exactly Does Automation In Customer Service Help?

Automation in customer service reduces menial work for agents and can prevent human error from happening. This reduction in friction also gives your agents much more room to provide personalized service to your customers.

AI can help solve a core problem when your organization experiences hyper growth and your customers need answers to their problems quickly. It is possible to grow your business without losing the human touch. In fact, it’s essential not to lose this. Businesses that prioritize a personalized customer experience are the ones that are succeeding in this fast-paced environment. Although it might sound counter-intuitive, by introducing automation into some of your core systems and processes, you can actually provide an even more personalized touch within your customer service department.

Automation Helps Reduce Repetitive Tasks for Your Agents

Many folks still think of AI as a threat to their jobs….as robots taking over the world! Despite the doomsday rhetoric, the fact is that current day AI can actually make customer service professionals’ jobs less time consuming and simultaneously more fulfilling.

Oftentimes the most tedious tasks on an agent’s plate are manual and repetitive, and may not require human intervention. Luckily AI can automate much of this work. For example, when an agent needs to initiate a return, they may be talking to a customer in one system, looking up a customer’s order history in another, and using a third system to create a return management authorization (RMA). A fourth system may send a message to the person who handles those returns asking to expedite for an important customer. With AI and automation, a single button click could start the RMA process, create the shipping label and notify a team to expedite.

Automate Common Customer Questions With the Help of AI

Businesses have the opportunity to provide more self-help opportunities with the help of AI. Chatbots are growing in popularity with both businesses and consumers because they can quickly answer common questions without the need for a live representative to be on the chat. While there is always fear of losing personalization when using AI and automation, with the right data, businesses can actually do the opposite.

For instance, if a business leverages customer data properly, chatbots could ask personalized questions based on an individual’s purchase or browsing history. These interventions save time for both the customer and agent, and increase the time spent on the actual issue rather than information gathering and low-level support. When you have AI in customer service, you provide a more relevant customer experience and buyer experience to your clients.

Superpower Your Agents

Beyond freeing up agent time, AI can also be used to arm support agents with all the information they need to quickly and accurately service their customers. AI support technology can suggest messages to send to customers based off of historical conversations and customer attributes, which can become more accurate and personalized over time in conjunction with a machine learning model.

You can also power sentiment analysis with AI technology, which means you can analyze the tone in the customer’s messages, and determine whether they are satisfied or dissatisfied. If you have a dissatisfied customer, you can escalate the issue quickly and give a more hands-on approach to save the customer relationship.

How We Can Help

Customer service is increasingly being thought of as a revenue driver and not a cost center, and customer service insights are being leveraged to inform larger business decisions. Keeping a consistently high level of support as you scale your business could be the difference between rocketship growth vs. staying stagnant. Automation in customer service gives you the exact tools you need to keep your customers happy without sacrificing quality as you grow rapidly.

Finding the perfect customer service software solution is imperative. If you’re interested in delivering a superior customer experience at scale, whether that means personalized and proactive support or true omnichannel experiences, consider Kustomer to be your right-hand man. With Kustomer’s unique customer service CRM platform, businesses are easily able to have a single view of the customer journey, seamless omnichannel communications, and the ability to automate complex business processes and knowledge management.

Download our Scalability Guide to learn more, or reach out and get to know us through a free demo.

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3 Keys to Modernizing the Customer Experience

3 Keys to Modernizing the Customer Experience Twitter

Customers are gravitating towards brands that fulfill great experiences, leaving those that don’t in the dust. With this in mind, brands are beginning to realize that customer experience is directly tied to their revenue. According to a 2016 study by Forrester, superior CX drives superior revenue growth in industries where customers can easily switch to competitors that deliver a differentiated customer experience. Since then, 81% of organizations cite CX as a competitive differentiator and research continues to support the notion that more organizations are leveraging CX to gain an edge against their competition. By ignoring CX, brands are missing out on market share and revenue.

In this blog post, we share three ideas and concepts that will help you modernize customer experience and transform your CX organization from a cost center into a profit center.

Take a True Omnichannel (NOT Multichannel) Approach to Customer Experience

Many believe that the concept of omnichannel dates back to 2003, when Best Buy created a strategy that centered around the customer in order to compete with Walmart’s electronics department. At this time, retailers were starting to see online sales grow at a fast pace, especially for items that didn’t require you to touch them to feel confident in a purchase decision, such as electronics. All that was needed when it came to shopping for consumer electronics were specifications and dimensions of the products. Best Buy knew that since they could not compete with Walmart’s low prices, they would have to take another approach, one that focused on the customer experience both in-store and online, while providing superior post-sales support. This is where the concept of “customer centricity” was born, which is at the core of an omnichannel approach to customer engagement.

So what does a true customer-centric omnichannel approach look like in 2020? Let’s start by first explaining the concept of multichannel, which is often mislabeled as omnichannel.

In the diagram above, we have the typical multichannel model of customer engagement, where the customer reaches out through the channels of their choice. Each individual engagement becomes a “ticket” or “case”, with different customer support agents tackling each issue. This creates three main problems:

1. Each agent fails to recognize that their colleagues are working on the same issue, which in turn becomes an unnecessary expenditure of resources for the company.
2. The customer experiences inconsistencies with how their issue is solved, as each agent may have their own way of wording or solving the issue.
3. Unless the agents recognize that these tickets are from the same customer and take steps to merge them, reporting will be skewed, as there may be different response times, resolutions and CSAT scores for each ticket.

Now let’s take a look at what a true omnichannel customer engagement model looks like:

In this model, we are still meeting customers when and where they want to be engaged, yet on the back-end there is one major difference: each individual engagement shows up as one conversation for a single agent to respond to. This sole difference alleviates the three problems outlined above.

So how does a true omnichannel approach help turn your CX organization from a cost center into a profit center? According to Aberdeen Group, companies with extremely strong omnichannel customer engagement see a 9.5% year-over-year increase in annual revenue, compared to 3.4% for weak omnichannel companies. Similarly, strong omnichannel companies see a 7.5% year-over-year decrease in cost per contact, compared to a 0.2% year-over-year decrease for weak companies.

Differentiate by Appealing to Your Customers’ Emotions

Daniel Kahneman, psychologist, economist and winner of the 2002 Nobel Prize in Economics, introduced the idea of a dichotomy between two modes or systems of thought. “System 1” is fast, instinctive, unconscious, automatic and emotional; “System 2” is slower, more deliberative, calculated and logical. In these modes of thought, “System 1” dominates “System 2”, as it takes much less effort, making it the default system.

If you have ever worked in customer support, you will quickly notice that some customers may be disrespectful and downright nasty. But it’s important to note that none of these outbursts are personal attacks and are oftentimes the expression of frustration when it comes to solving their problems. This is an example of “System 1” thinking and the impact of this “System 1” thinking from your customers is a powerful double-edged sword. The reward or punishment for solving their issue is magnified by social media and online reviews. As Spiegel Research Center finds, nearly 95% of shoppers read online reviews before making a purchase. Each interaction will either create brand advocates for your company that will help bring in more revenue, or brand detractors that will bring negative financial repercussions. That being said, we can create more brand advocates if we meet customer expectations.

This begs the question: what does the modern day customer expect? Nowadays, customers expect their problems to be resolved quickly, effortlessly and empathetically. Essentially they want to talk to an agent that is a “System 2” thinker.

As a leader in your organization, it is imperative to set up an infrastructure that is designed to take into account the emotional component of the customer experience. Fortunately, modern day artificial intelligence (AI) methods such as machine learning, natural language processing (NLP), predictive analytics, deep learning, and multi-dimensional neural network mappings can be leveraged. These sophisticated technologies allow for functionalities such as customer sentiment analysis and automatic language detection. By considering how your customers are feeling, your organization can take appropriate action to ensure they leave the interaction happy and on their way to becoming brand advocates.

Streamline and Automate Customer Experience Business Processes

In a traditional CX technology ecosystem, customer data is siloed. Each individual system may require manual updates as agents work through each ticket or case. Reports will need to be pulled from separate systems in an attempt to get a 360 degree view of the CX organization. In this ecosystem of siloed customer data, we are not only pulling agents away from being in front of customers by requiring manual data entry, we are also compromising the integrity of our reporting and visibility into the CX organization. Ultimately, this is hindering our ability to be agile and adjust to changing customer expectations.

The solution to these problems caused by fragmentation is to consolidate your customer data into a customer experience platform that is capable of taking all of your customer data and making it viewable, searchable, actionable and reportable. Notice we are not talking about a helpdesk product, but rather a next-generation platform for customer experience, support and service.

With all customer data under one roof, business process automations can be leveraged to their full potential. Automations are no longer limited within each individual silo, but instead can impact the entire CX ecosystem.

As businesses are seeing a bigger impact on their revenue directly from customer experience, CX leaders need to ensure that their technology is up-to-date in order to stay competitive. The days of customers tolerating poor experience are over. Think about it—your closest competitor is just a 15-second google search away. As they should, customers expect more from us. Fortunately technology exists today to modernize your customer experience, build more brand advocates, and ultimately turn your CX organization from a cost center into a profit center. It’s time to take a good look at your organization and ask the tough question: is my CX organization built to deliver a modern day customer experience that will turn brand detractors into brand advocates?

Want to learn how your CX organization stacks up against the competition? Take our interactive CX Assessment: Take the Assessment


Starting a Revolution: The Launch of the Customer Service Secrets Podcast

Starting a Revolution: The Launch of the Customer Service Secrets Podcast Twitter

Listen and subscribe to our podcast:

Three years ago, I wanted to start a podcast so…I did. A mentor of mine, Ken Krogue, told me that if I was going to do it, I needed to be consistent. I’m not sure he thought I’d take his advice but after three years we recorded more than 250 episodes and had nearly 20,000 subscribers. It was a blast and we want to do it again, but this time the focus will shift from the sales experience to the entire customer experience.

This isn’t just another podcast, it’s a podcast focused on customer service secrets. Customer service is broken and you and I both know it. Why? Think about the last time you were surprised by the service a brand provided to you. Can you remember? If you can, it’s probably only happened once or twice in your lifetime and that’s exactly the problem. We as consumers are WOWed by customer service so infrequently that it is a shock when it happens.

I had a friend tell me the other day that he had booked a dinner reservation for his son and when they got there the restaurant immediately welcomed them with birthday wishes and he was…shocked! I was happy for him and I could tell, as he spoke, that he was generally impressed. But, as I thought more about it, I couldn’t help but think, really? He made a reservation for his kid’s birthday and the restaurant acknowledged it? Is that how desperate we are for great customer service? Sadly the answer is yes and it’s got to stop.

The brands that are winning are ones that create memorable and personal experiences with their customers. The phrase “customer obsession” gets thrown around constantly, but it doesn’t quite get to the bottom of how we should be treating our customers, only that we should be obsessing over them. “Customer care” gets more quickly and directly down to brass tacks. When we really, truly care about our customers, and build a company culture that supports this care, we’re able to become leaders and disruptors.

And what do our customers care about in 2020? They no longer want to be treated like a transaction or a ticket. They want to feel like a valued part of the brand, and often choose where to shop because they identify with a brand and believe in their mission and values. Being able to deliver on a brand promise, before, during and after a transaction, naturally leads to a community of advocates. Customer service can be your most powerful tool, building up lifelong fans that go out and market your business for free, or your quickest downfall. The choice is yours.

The Customer Service podcast will launch in the next two weeks and each week a new episode will come out on Thursday’s at 6 AM ET. It will focus on helping leaders transform their customer service, with practical information from thought leaders and practitioners who will share their secrets to delivering exceptional customer service.

We need a new type of customer experience and this podcast will help facilitate it. We want to help build modern CX leaders instead of traditional ones.

  • Modern CX leaders are waging war against transitional thinking and they are winning left and right.
  • Modern CX leaders are turning their service centers into profit centers while traditional leaders are focusing on cutting costs.
  • Modern leaders are asking for forgiveness as they break barriers while traditional leaders are still looking for permission to be great.
  • Modern leaders are doers not talkers.
  • Modern leaders test everything with data while traditional leaders are still guessing.
  • Modern leaders have a playbook, while traditional leaders simply throw hail marys and hope to get lucky.
  • Modern leaders do whatever it takes to win, while traditional leaders are doing their best.
  • Modern leaders are changing the world and traditional leaders are simply trying to change their pay.

If this sounds like you, get ready to join us as we help revolutionize the customer experience!

Here’s a quick preview:

Listen to “What is the Customer Service Secrets Podcast?” on Spreaker.

Listen and subscribe to our podcast here:


How DTC Brands Deliver Standout, Personalized Online Experiences

How DTC Brands Deliver Standout, Personalized Online Experiences Twitter

Direct-to-consumer (DTC) businesses are upending entire industries and putting customers first. By cutting out the middleman and selling directly to the consumer, rather than through a retailer or third party, DTC businesses are exploring new ways to reach consumers with amazing and transformative customer experiences. But how do they do it?

Know the Customer History

Imagine having a conversation with a friend, but not being able to remember anything about that friend, or any interactions you’ve ever had with them previously. It would be difficult to have a truly personal or meaningful conversation. That’s how traditional retailers have historically interacted with consumers, with a large blind spot around customers’ preferences and behaviors.

Digital-first brands don’t have to deal with this problem. Every aspect of the online journey can be adjusted to meet customer needs, and with the right technology can be available to staff in a single view. You’ll be able to know a customer’s preferences, buying history, sentiment, previous interactions with the brand, status of their orders, even their preferred channels of communication. You’ll no longer be interacting with Customer #45634, but with a valued human being who feels heard and appreciated.

In-Action With Glossier

Hyper-popular beauty and skincare provider Glossier makes buying their products as intuitive and personal as possible. To replace the experience of trying on makeup at a counter in a department store, Glossier creates an immersive, digital journey. Customers can get a personal consultation from a member of the gTeam, who is prepared to provide all the support they might need over the channel of their choice, and has all the necessary context and information about their shopping history.

Solving for Decision Paralysis

The spread of e-commerce has created a paradox. In the heyday of big box stores, a huge selection of products and styles used to add value. Customers did most of their shopping in a physical space, as it was still faster, cheaper, and more accessible than shopping online. A large number of stores and a wide selection meant customers were more likely to shop and find what they were looking for. However, the near-infinite amount of choices provided by Amazon and other big box stores and marketplaces has flipped this notion on its head.

Now, customers are overwhelmed with choices. If you search the word “soap” on Amazon, you get over 60,000 results. Picking a simple product becomes paralyzing as you try to weigh price, benefits, ingredients, and other factors all at once. And having your product feedback heard or incorporated can feel hopeless.

Products Customers Want and Need

Focusing on a few good items done right, at a fair price point, is key to tapping into modern shopping trends, and encourages brand loyalty and repeat business by making products that become an essential part of customers’ lives.

Some high growth DTC brands, such as hair care company Prose and dog food company The Farmer’s Dog, even incorporate customer feedback into their product. Through proactively seeking feedback from customers, these leading brands ensure that both their products and service are exceptional, and they keep their customers coming back time and time again.

Additionally, DTC brands are able to use customer data to inform business decisions. If you document why customers are reaching out, you can use this information to optimize UX, make product or fulfillment tweaks, or even open a new store location.

Want to learn more about how high-growth DTC brands are standing out from the competition through CX? Download the guide here.

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