Every company likes to say that it listens to customers. But when was the last time you literally listened to a customer?
I've learned over the years that listening to customers--through audio recordings of interviews or direct conversation with customers--is one of the most powerful tools for developing customer insights and empathy. Through our voices we communicate so much more than mere words: we communicate emotions, context, and subtle shadings of meaning.
If you've ever tried (and failed) to use sarcasm in an email, you know what I'm talking about.
I firmly believe that how you use recordings of customer interviews is a big factor in whether your customer feedback process actually drives change in your company or just sits on a shelf. From coaching front-line employees to advocating in front of executives, audio recordings are often the difference between inspiring change and arguing about statistics.
But I've found that many companies don't use this powerful tool, even when it's available. They think that listening to audio feedback will take too long, or bias their thinking. Or they assign low-level employees to listen to recordings, and senior decision-makers never hear them.
Here's three places you should be using the literal voice of your customers to drive change in your organization:
As part of your customer feedback, you've probably identified a few areas where investment is needed. It's important to make the business case, but many other initiatives will also have a strong payback (at least on paper).
I believe that in a customer-focused company customer-focused initiatives should have priority (all else being equal). Using a few audio snippets to illustrate the customer impact can help drive this point home. Of course you will want to make sure that your recommendations are backed by solid data and statistics.
It's hard to ignore when actual customers are telling you that you've got a problem. Illustrating your recommendations with selected recordings can help build a sense of urgency for taking action.
Recordings of customer interviews can help you understand customers' needs and opinions in a way that statistics and written feedback often don't. Audio lends itself to empathy and understanding.
Rather than listening to a large number of customer recordings (which can take a long time and not feel very productive), I generally use the statistical data to look for interesting trends and correlations. When I see something that makes me go, "hmmm," I'll select several recordings that seem to have a similar pattern and listen to them all to see what's really going on.
This method avoids a lot of the guesswork and assumptions that often happen when you try to interpret survey data. Often you discover that the customer is telling you exactly what you want to know, you just need to listen.
Interview recordings can help employees better understand what customers want and need. Customers are viewed as more credible sources of criticism and feedback than supervisors and coaches.
I recommend having the employee listen to the entire customer interview, and then ask the employee to interpret the interview through the lens of how their actions could have better served the customer or changed the customer's opinion of the interaction. In many cases, when the customer was completely satisfied, there's not much that could be done. But if the customer was not happy, often the employee will see the root cause and what could have been done differently to help or mitigate the problem.
It's important with this kind of coaching to remind the employee that each customer's feedback is just one person's opinion, and should be taken in the spirit of constructive criticism. Viewed in this light, often very negative or unfair feedback can lead to ideas for how to better handle a similar situation in the future.
The bottom line is this: If you are collecting audio customer feedback and not actively listening to it and using it to drive change, you are missing one of the most powerful tools in the Voice of the Customer toolkit.
I just published the 106th issue of Quality Times, Vocalabs' newsletter.
This month I discuss what happens when incentives and the metrics which drive them get out of control, using three real-world examples as a guide.
Here are three stories which have one thing in common:
All three of these stories involve incentive systems that have run amok, leading employees to do things that are harming the company. What's more, most employees at these companies probably understand that they're doing the wrong thing, but they feel like they have no choice but to go along with the broken system.
Meanwhile, senior leadership is either unaware of the problem or (as is alleged to have happened at Wells Fargo) actively punishes employees who try to raise the red flag. The end result is that the numbers look good even while the underlying situation in the company gets worse and worse.
How do companies get in this situation? I see three key factors:
There's a strain of business culture that says an executive's job should be to set rigid goals and deal mercilessly with those who fall short. My view, however, is that true leadership means understanding what's really going on deep inside the company and ensuring that everyone is pulling in the right direction. Goals and metrics are just one tool for this, and an imperfect one at that. And when used improperly, they can lead to some very bad results.
I'm excited to announce that Vocalabs has released a Salesforce Marketing Cloud app that integrates with Marketing Cloud's Journey Builder to make it easy and painless to incorporate customer interviews into any Marketing Cloud journey.
All you need to do to is drag the Vocalabs icon into your Journey Builder journey* and we'll call your customers for phone interviews. It's really that simple -- we do all the work. All the data transfer and integration happens seamlessly behind the scenes.
(*We also need to design your interview script, which is part of our setup. But we'll want to collaborate with you on the script, so technically you do have to do a little more work than just that.)
It's never been easier and more painless to use the in-depth feedback of phone interviews. We don't require any minimums or contractual commitments, so you can begin and end customer interviews whenever you want, and do as many as you need. This is truly phone interviews on demand.
You can get more details and watch a short demo video on our app listing page. Check it out, and see just how easy it is to start getting the actual voices of your customers.
Today we published the 105th issue of Quality Times, our newsletter about all things Customer Experience and Customer Feedback. Email subscribers should have received their copied earlier today, and you can subscribe here.
This month I discuss the recent United Airlines fiasco. While it's always a bad idea to beat up your customers on video, most commentators have overlooked the fact that Delta Airlines also could have had a very bad PR month--but didn't. The reasons why United got all the bad publicity and Delta avoided it hold some important lessons for Customer Experience professionals.
As always, I hope you find this interesting and informative. Our newsletter is one of the ways we keep in touch with current and prospective customers, so if you know someone who might be interested please pass it along.
One of the reasons we do customer feedback is because customers have a different view of a company than the company has of itself. Getting that outside perspective is important not only because you want to please your customers. It's also often the case that customers see inside the company's own internal blind spots.
It's common for companies to have lots of internal moving parts that have some friction between them. This is especially true when the company has been around a long time, or has grown through multiple acquisitions. There can be very complicated multilayered processes to help all the pieces work together, and when thing go well all of this should be invisible to the customer.
But the more complicated the processes and organization, the more likely it will be that there will be gaps. That's where getting the outside view can be extremely helpful.
Because chances are if you have gaps in your processes, there's customers falling into it. They may not understand what exactly is going wrong, but they will definitely notice that they aren't getting the level of service they expect. Maybe calls aren't being returned, or paperwork is getting lost, or customers are getting incorrect invoices. But whatever the situation, the customers know that their expectations aren't being met.
Chances are that any process issues like this are relatively rare, because if they were common they would have been noticed and fixed.
(If problems like this are common, then you might have a completely different set of issues like systemic mismanagement or even fraud. Wells Fargo probably had lots of customer complaints about fraudulent accounts, but senior leadership had a strong incentive to ignore them.)
Just because a problem is rare doesn't make it any less important to the customer who experiences it. And some of those process gaps can be very expensive in terms of added customer service cost, lost business, and even legal expenses if the situation is bad enough.
Fortunately, it's not hard to bring the customer's perspective into your organization to shine a spotlight on your blind spots:
The key is to remember that there are two sides to every story, and two views of every company. Often we're blind to the problems inside our own organization, maybe because we've become habituated to them, or maybe because they don't seem as important as they should be. Getting the customer's view can help see gaps that live in your blind spots.
This has been a bad week for United Airlines. After making news for having a paying customer dragged off a plane, bloody and unconscious, for refusing to accept $800 to take a later flight, another slightly-less-horrible story emerged of a United first-class customer who was threatened with handcuffs if he didn't give up his seat to a "higher priority" first class passenger.
It's no surprise these stories went viral. They've got everything: giant faceless corporation beating up its customers (literally!), tales of woe about how unpleasant air travel has become, astonishingly tone-deaf non-apology. At least United didn't also kick puppies and kittens out of spite.
But there's another side to this story, one with some important lessons for Customer Experience. Because at the exact same time United was digging itself furiously into a PR hole, Delta managed to score some positive press when a customer wrote about getting paid $11,000 not to fly in the middle of Delta's own system-wide scheduling fiasco.
On paper this should have been a terrible week for Delta, too, since the airline cancelled thousands of flights after severe weather rolled through Atlanta. And there were certainly stories out there about customers struggling to get home and chaos in airports. So why is it United that lost a billion dollars in market value and not Delta?
The answer lies in an interesting pair of statistics: among the four largest airlines, Delta overbooks the most. But Delta, in contrast to its competitors, almost never bumps passengers involuntarily. Instead, Delta tries harder to get passengers to give up their seats willingly in exchange for compensation.
That's how a family was able to score $11,000 by negotiating with Delta for not flying. Delta empowers its staff to offer more compensation in exchange for customers willingly freeing up seats.
Meanwhile United apparently decided to draw the line at $800. When nobody was willing to accept that to give up their seat, they had left themselves no option but to remove already-seated passengers from the plane, by force if necessary. In hindsight, United probably wishes they had been a little more flexible and offered more money.
There's two CX lessons Delta has figured out that United hasn't. First, sometimes it's better to spend a little more money upfront to keep customers happy and avoid bad publicity. That's obvious.
Second, and more important, Delta understands that there is a segment of their customer base who likes making deals, customers who think about overbooked flights with anticipation, not dread, since they see an opportunity to score cash and free travel. Customers who get so excited about getting paid $11,000 to cancel a family vacation that they write articles about how they did it.
The accountants will probably do the math and say that Delta paid way too much to free up six seats total (from a family of three who cancelled a round-trip). That's almost $2,000 per seat, way more than the amount Delta would have been legally required to pay for involuntarily bumping those passengers. But what the purely financial analysis doesn't take into account is the fact that people hate being bumped involuntarily. There's a cost associated with forcing a customer to give up his seat against his will.
Usually that cost is hard to quantify, but this week it because large and obvious. Don't fall into the trap of ignoring the hidden cost of bad customer experience.
We've published the 104th edition of Quality Times, Vocalabs mostly-monthly newsletter about customer feedback and related topics. In this month's issue we discuss how it could be that the American Customer Satisfaction Index is showing increased scores for several retailers who are closing stores and losing customers.
As always, I hope you find our newsletter interesting and informative. Subscribers should have already received their emailed copies, and if you want to subscribe too, you can sign up here.
Back when news broke of Wells Fargo's fraudulent account scandal there was some speculation that we might be hearing of similar problems at other large banks. Wells Fargo is not the only large bank with aggressive sales goals and a punitive approach to employees who miss their targets.
Similar problems--though perhaps not as severe--are now coming to light among Canada's five largest banks. A CBC News investigation has led to thousands of reports from current and former employees detailing aggressive sales targets, punitive management practices, and pressure to sell customers products they didn't want or weren't in their best interests. A few laws may have been broken along the way.
It may seem strange that banks, traditionally stewards of their customers' assets, have succumbed to high-pressure sales tactics more at home on a used car lot. But this is a natural consequence of viewing the customer relationship as something to extract value from, rather than something to nurture and grow over time.
It's similar to a farmer deciding what to grow each year. Not all crops are created equal. Some are more valuable, some extract nutrients from the soil, some require more pesticides, and so forth. A good farmer won't just plant the most profitable crop every single year, since that's likely to deplete the soil and encourage pests. Over the long term, it's better for the farmer's bottom line and the health of the land to look for a tradeoff between what's profitable now vs. what's going to keep the farm sustainable over the long term. So while you could make a little more money now, it comes at the expense of future earnings.
Banking relationships are often measured in decades, so it's natural to think that they should be carefully tended like a farmer's fields. But we are long past the time when a bank's owners were local civic leaders interested in the health of the community and willing to take a long-term view. Today's large banks are publicly-traded corporations owned by financial investors who are mostly interested in quarterly growth and are perfectly willing to replace management teams who don't deliver. The pressure to risk long-term customer relationships for short-term profitability can be hard to resist.
Chances are that plenty of people have known for a long time that something was wrong in the five Canadian banks in the CBC report. I don't imagine that managers enjoy berating longtime employees over sales targets, any more than longtime employees enjoy being beat up over unrealistic goals.
It's likely that these banks will be paying the price for a long time, both in short-term loss of business and bad publicity, and in long-term customer distrust and regulatory oversight.
I don't have any magic prescription for avoiding these kinds of situations, other than to say that both employees and customers probably would have told the companies that things were going wrong if only they had been asked and the leadership had sincerely listened.
Instead, five major Canadian banks today find themselves issuing bland PR statements about employee codes of conduct and gearing up for government investigations.
Just some random Customer Experience musings on a Wednesday afternoon:
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