The Customer Experience Podcast
The Customer Experience Podcast

Episode · 1 year ago

56. 3 Customer Experience Myths Debunked & Set Straight w/ Ethan Beute

ABOUT THIS EPISODE

The most economically valuable thing you can do is to meet customer expectations.

Meet the expectations. Not exceed customer expectations. Not surprise and delight your customers at every turn. Actually, the best way (economically and experientially) to serve your business and especially your customers is to meet their expectations.

I’m Ethan Butte, here today on The Customer Experience Podcast to share my appreciation for a book that I’m, yes, late to the party on. It’s called The Effortless Experience: Conquering the New Battleground for Customer Loyalty by Matthew Dixon, Nick Toman, and Rick DeLisi

The first chapter of The Effortless Experience starts out by calling out myths that tend to be overlooked by marketing, sales, and leadership — but which are highly relevant to these people and their organizations. There's so much focus on customer delight and the so-called “wow moments,” but not enough focus on something much simpler and more economically valuable: meeting customer expectations and reducing their effort.

  1. Delighting customers in the service channel does not pay.
  2. Customer service drives disloyalty, not loyalty.
  3. The key to mitigating disloyalty is reducing customer effort.

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Ninety six percent of customers who hadhigh effort experiences reported being disloyal compared to only nine percentof customers with low effort experience. The single most important thing you cando today is to create and deliver a better experience for your customers,learn how sales marketing and customer success experts create internalalignment, achieve desired outcomes and exceed customer expectations in apersonal and human way. This is the customer experience podcast. Here'syour host Ethan Baute, the most economically valuable thing you can do-is to meet customer expectations, notice that I didn't say, exceedcustomer expectations or surprise and delight your customers. The mosteconomically valuable thing you can do is to meet customer expectations. Myname is Ethan Bute, I'm the host of the customer experience podcast and thecohost of the be to be growth. Show I...

...host the CX series on the show, and inthis episode I'm going to share a handful of awesome takeaways from abook that I'm late to the party on it was published more than five years agoit's called the effortless experience it's by Matt Dixon, Nick Toeman andRick Delisi Dixon. By the way. Also coauthored the Challenger sale and theChallenger customer- and these may not be revelations to the more well studiedcustomer success. Experts who listen to the show, but likely will be foreveryone else as it was for me. I am only going to share some takeawaysfrom the first chapter of the book, and this chapter, as well as the greaterportion of the book, is based on research with ninety seven thousandconsumers and hundreds of executives inside businesses serving thesecustomers. So here's the setup and a quote from the book. What, if you gotup in front of the team and instead of asking them to delight your customers,you ask them to make things as easy as...

...possible for your customers, and youtold them to do this by focusing on a small set of actions like avoidingsituations where the customer is likely to have to call back not transferringcustomers when they can handle the issue themselves, not asking customersto repeat themselves, not treating people in a generic manner and so forth.By the way. Those are four of the most annoying things to the customersurveyed and likely, if you've looked at your own customer feedback, or youlooked at your own experience as a customer. These things anknoy you aswell. So what this chapter does is open up by dispelling a couple of myths thatare typically off the radar of marketing sales and leadership, butthey're highly relevant to these people and to the entire organization. Youknow, there's so much focus on customer delight in wow moments, but not enoughfocus on something: much simpler and more economically valuable meetingcustomers expectations and reducing their effort. Three takeaways from thechapter delighting customers in the...

...service channel does not pay number twocustomer service drives disloyalty, not loyalty and number. Three. The key tomitigating disloyalty is reducing customer effort. So let's focus on that.First, one delighting, customers delight is not the fully sensible andmost effective mission of the CS organization. A lot of stories that wehear are typically what they call quote: Unquote: Lottery ticket logic. We tendto overcelebrate the rare moments of delivering above and beyond andoverspend on training toward moments of wow. I'm going to quote them here,there's virtually no difference at all between the loyalty of those customerswhose expectations are exceeded and those whose expectations are simply met,loyalty actually plateaus. Once customer expectations are met. So whatdo they mean when they say loyalty? They define it with three specificbehaviors one is repurchasing...

...continuing to buy from you number twois share of wallet buying more from you over time and number three is advocacy,say Nice things about you to other people. So again, there's no difference inloyalty between customers whose expectations are exceeded versus thosewho are simply met, and, of course, when they interviewed senior leadersexceeding expectations comes with much higher operational cost, so higher costfor no particular benefit. I'm going to quote them again that data show that anaggregate customers who are moved from a level of below expectations up tomeet's expectations offer about the same economic value as those whoseexpectations were exceeded and, of course exceeding expectations is moreexpensive for us. From an operational standpoint, so the goal here is basiccompetence, professional service and getting the fundamentals right solvingthe problem and getting people back to their day point one: Delighting:Customers in the service channel...

...doesn't pay point. Two customer serviceinteractions tend to drive disloyalty rather than loyalty. You know here atBombam we have amazing customer success in customer support people, and weoften get those very positive replies about how a particular team member ofours made someone's Day or really overdelivered for a customer, but anaggregate and I'm quoting from the effortless experience here. Anycustomer service interaction is four times more likely to drive disloyaltythan to drive, loyalty and worse, and I'm quoting here. Those customers wemake disloyal are much more likely to spread that disloyalty to otherpotential customers through negative word of mouth and even worse andfinally- and I'm quoting again here forty five percent of the people, whohad something positive to say about a company told fewer than three people.By contrast, forty eight percent of people who had negative things to sayreported that negative speak to more...

...than ten people. So those positive experiences areshared less. Those negative experiences are shared more and were four timesmore likely to drive this loyalty anytime, someone gets into our supportchannel by phone or email or elsewhere. Final quote here we pick companiesbecause of their products, but we often leave them because of their servicefailures. So the goal is selfservice productservice, great product and service experience, so that people don't needto get into your customer service channel in the first place. Finally, point number three: from thefirst chapter of the effortless experience, the key to mitigatingdisloyalty is reducing customer effort. This is the third one in the chapter ofcourse, because it teas up the rest of the book. It's all about reducingeffort. Four of the five drivers of disloyalty are about additional effortthat customers must put forth and HEU've already heard them at the top ofthis episode in rank order. They are...

...requires more than one contact toresolve the issue. Number two generic service, treating people like a numbernoncommittal responses. Corporate speak number, three having to repeatinformation. I know that's a frustration for me. You told oneservice rep, you know this piece of information or this number and you haveto tell the next person the same thing right. People hate having to repeatinformation, number four perceived additional effort to resolve. Thisreminds me of an episode I released with Mike Redboard of hub spot, whoreally drove home. The point in that podcast conversation that the customersreality is the reality, so there perceived additional effort to resolve,even if on our side of it as the service provider. We think Oh, wasn'tthat big a deal if the customer perceives it as such, it is a big dealperiod. It is a matter of fact finally transfers getting bounced around now.If you're, not a very large organization, probably doesn't happenso much, but if you're in a medium to large organization, you may have tobounce people around the more you do...

...that the more effort and the moreperceived effort and the greater likelihood of producing disloyaltyhere's how common they are. Fifty six percent of the customers interviewedagain about a hundred thousand people interviewed fifty six percent tsat.They had to reexplain their issue during a service interaction. Fiftynine percent had a higher perceived additional effort to resolve the issue.Fifty nine percent also said they were transferred during a serviceinteraction. Finally, sixty two percent of people said it took more than onecontact to resolve the issue. This produces frustration because itrequires effort and therefore it produces disloyalty. Ninety six percentof customers who had high effort experiences reported being disloyalcompared to only nine percent of customers with low effort experience,I'm going to say that one more time low effort experience, only nine percent ofpeople were disloyal high effort experience when we're asking ourcustomers to spend time and energy,...

...mental and physical and emotional.Ninety six percent of the people in high effort experiences were disloyal to close here there. Four principles ofcreating low effort service number one low effort, companies minimized channelswitching by boosting the stickiness of selfservice channels. This preventscustomers from having to reach out in the first place, number two head offthe potential for subsequent calls by having employees practice next issueavoidance being a little bit proactive, hey now that we've addressed. What'sreally on your mind right now, let me tell you about something upcomingproactively, avoiding future issues, a huge value to the customer, because itreduces effort number three succeed on the emotional side of the serviceinteraction, one or more chapters of the book go through experience.Engineering tactics vary specific things you can do to manage this ifyou've been listening to the customer experience podcast, you know that videois a great way to manage that emotional...

...side of the service interaction. Fourthand finally, here empower frontline reps to deliver a low effort experienceby using incentive systems that value the quality of the experience overmerely speed in efficiency. It's really easy to measure and reward speed andefficiency. It's a little bit more difficult to get a quality, but qualityin effort reduction is a big big deal. It's a huge value driver in yourbusiness. Their book goes into way more detail on all of these topics. I justwanted to share my appreciation for the book and the provocative openingthoughts in that first chapter. The single most important thing you can dotoday is to create and deliver a better experience for your customers as anindividual as a team and as an entire organization. Reducing effort is agreat way to do that. I hope you found this valuable. If you did subscribe tothe customer Experience Podcast, you...

...can find it in your favorite podcastplayer and while you're there take a minute and leave a review or droperating. It's super helpful to the PODCAST and to people evaluatingwhether they might get some value out of it to thank so much for listening.My name is Ethan Bute and I welcome any feedback on linkedin or in my email,inbox, ethen at Bombomcom, clear communication, human connection,higher conversion. These are just some of the benefits of adding video to themessages your sending every day. It's easy to do with just a little guidance,so pick up the official book rehumanize Your Business, how personal videos,accelerate sales and improve customer experience learn more in order today atBombamcom Bock, that's Bo Mb Bombcom book thanks for listening to thecustomer experience. podcast remember the single most important thing you cando today is to create and deliver a better experience for your customers,continue learning the latest strategies...

...and tactics by subscribing right now inyour favorite podcast player, or visit Bombomcom podcast.

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