The 5 Ps of CX

“Customer Experience” (CX) is quite the buzzword, these days. In corporate meeting rooms, and on industry panels – every one seems to be talking about it. However, many of the folks I meet grapple with how to prioritize their efforts around improving customer engagement.

Over decades of helping clients and employers bridge the gap between Business and what their Customers really need, I have come to understand that there are 5 Ps that impact CX. These are the levers at your disposal. These are the elements you need to influence, so you can strike the right balance…

  1. Product (or Service)
  2. Platform (or System)
  3. Processes
  4. People
  5. Pricing

Product/Service – Define your Target Audience clearly. Don’t build your product or service around what you think they need. Find out what they seek from you, then build your offering around their real needs. No more, no less. Competition does not matter. Customers do.

Platform/System – We are surrounded by Technology, and it’s here to stay. Your customers are probably embracing it faster than you are able to keep up with it. Don’t resist: Embrace it without excuses. Invest in what matters to your customers, be it Mobile or AI. Invest in creating a friction-less User Experience (UX). Good Design matters.

Processes – Customer Experience is built on a foundation of consistent delivery (of promises made), not found in pockets of excellence. Processes, therefore, form the backbone of a good CX. Stay away from ad-hoc and discretionary management. Strive to build an organization that outlives you and your key managers. Process Excellence is the key.

People – In any enterprise, people are an essential factor of success. Research shows that happy employees drive a 2x improvement in CX. Employee engagement matters. Hire right, then provide them with a clear vision of your business goals. Once they have understood what is needed of them, empower them to take actions that help them meet customer needs.

Pricing – Customer expectations change as the price changes. We expect much more from products and services that are sold at a premium. So if you plan to charge a premium for your brand, make sure you justify the outcome. In every case, think hard about the relationship between Price (you charge) and Value (you provide). Every Moment of Truth matters.

These 5 Ps are how you can ultimately impact the outcomes your customers experience. Of course, you can ignore this list if all you want to do is pay lip-service to the cause.

P.S. If you look closely, you will find that this doesn’t just apply to CX – these are also the attributes that can help you build a robust enterprise – one that outlives you.

What Really Matters

Every business acknowledges that the reason for their existence is the Customer. Every business wants to design products and services that are meant to address their customers’ needs. Yet, almost every business struggles to understand what their customers really want from them.

Is it any wonder that billions are spent worldwide in trying to gauge the truth of the matter, via interactions driven by focused groups and metrics like C-SAT and NPS? To make matters worse, in this Age of Digital and A.I., the “Customer” is also ever evolving!

How do you make sense of it all? 

Yes, customers do exhibit different personalities and needs. But, there are a few insights and common traits that can help most businesses get going.

Here are some of my learnings…

In the India context, it helps to keep in mind that the first 100 Mn Digital Consumers were Younger, More Urban, More Men, More Desktop, while the last 100 Mn are relatively Older, More Rural, More Women, More Mobile.

That said, customers all over the world are figuring out how they can leverage the abundance of Technology that now comes embedded in most platforms, products and services.

They want more and more to happen via Digital channels, so they can access it On-The-Go.

They want lesser clicks, faster page loads, shorter queues, reduced turnaround times, smaller forms.

They want more self-service options (Starbucks?), and want less IVRS interactions (Your call is important to us…?).

In other words, they want their interactions with your brand to be relevant, useful and enjoyable.

Oh, and thanks to online forums, reviews, ratings, and social media exchanges, they probably know more about your product or service than your Sales agent does!

Keep these factors in mind when trying to improve relevance of your offerings, instead of simply believing “you know what’s best for them”. And, don’t leave any opportunity to talk to a real customer – to listen to what really matters to them.

After all, there is just no substitute for a real conversation.

Survival of the Fittest

The headlines keep spewing out paranoia:

AI is taking over hundreds of jobs!
Uber and Ola have all but replaced traditional cabs!!
The hospitality industry objects to predatory pricing by Oyo!!!

So, what does all this mean for corporates, marketers and industry professionals like you and me? Should we become paranoid too? Should we be doing something else instead? Is it already too late?

Here are some interesting statistics compiled by HostingFacts:

  • There are 4.1 billion Internet users in the world (Dec 2018)
  • China has the most Internet users for any country (~802 million or ~20 percent of total), trailed by India (~500 million)
  • Amazon is responsible for more than 49 percent of all online sales and about 5 percent of all retail sales in the U.S.
  • There are 3.7 billion global mobile Internet users (Jan 2018)
  • About 75 percent of ecommerce sales in China are done via mobile devices
  • Mobile traffic is responsible for 52.2 percent of Internet traffic in 2018

The combination of super-cheap data plans (as in Jio) and super-cheap smartphones (as in Android + China) is already making a dent in India. With a plethora of payment platforms (PayTM, RuPay, etc.) that enable everything from micro-payments and P2P money transfers to mutual funds and ticket booking, Indians are also embracing newer ways of dealing with money. And, we are only at the nascent stage of this ‘perfect storm’, as it were.

Whichever way you look at it, the Indian consumer is doing more on their mobile phones today than ever before. Even without the local language content that millions of them want and need. Even without high-speed internet access in their semi-urban and rural towns. Even if it means that their first exposure to the world wide web (remember WWW?!) is on a 2-inch device in their pocket.

So, if you think “going digital” means creating a website and posting some brochureware content on it that gets updated every quarter, you’ve got another thing coming. If you already have a web presence but it doesn’t render elegantly on a mobile screen, you have a lot of catching up to do. If you’re a marketer who thinks all this “AI” stuff is for the geeks in your IT department (or even for your ‘Digital’ team), you may need to learn some harsh truths real soon. And, if you think your business is all offline, so you can continue to manage it the way you have been doing for decades – may be you do need some paranoia in your life.

Voice, Video and Vernacular (content) are going to be the success drivers of tomorrow. Add Velocity to the mix, and you will have a potent combination of forces at play. The environment is certainly ripe for disruption. The only question is will you be making it happen, watching in wonder as it happens, or wonder what happened?!

Beginner’s Guide to Smart Devices

Everyone and their cousin seems to be talking about Smart Homes, lately. TV ads are filled with mentions of “OK Google” and “Alexa…”, banner ads want to make us buy Smart Wearable devices & Smart Lights, while contests like #GetFitWithFlipkart are trying to make us go outdoors and get more active.

But, is it all hype? Is India ready for the #SmartHomeRevolution?  And, do you need be a techie to try out some of these new technologies?

As a matter of fact, what earlier used to involve technical know-how has now reached the Consumer market. India boasts of the second-largest Internet user base in the world (after China). And a large majority of us are experiencing the Internet mostly through our smartphones. The bottom line is that if you have a smartphone and access to WiFi in your home, many of the “Smart Home” devices are already within your reach.

Here are a few examples you can get started with:

1. Smart Speakers

Google Home and Amazon Echo offer multiple devices (with varying sound quality) that enable you to do a variety of tasks by simply “talking” to your speaker! They easily connect to your home WiFi, and have built-in capabilities for Internet Search and streaming music (including Indian services like Saavn). Adding reminders or checking appointments from your linked calendars is also a breeze. You can also connect multiple devices from different rooms for a seamless experience.

Benefit: Fill your house with Music + Search at the tip of your tongue.

2. Smart Cameras

There are hundreds of models of WiFi-enabled cameras available online, that can be easily configured to work with your home WiFi network without breaking the bank. Also called IP-cams, most offer a mobile app that can be used to access the live feed from any of the linked cameras. They typically have a micro-SD memory card slot (just like your smartphone) to store recordings from their feed. Higher-end models also enable you to “talkback” from a remote location, and have “night vision” to see better in dim light conditions. So, choose the model that best suits your needs.

Benefit: Easily monitor your children/maid/aged-folks from outside your home.

3. Smart Watches

This is a category that has a huge range of devices in all shapes, sizes and costs. Basic ones offer a “pedometer” that counts the steps you take to keep track of your activity level through the day. Advanced features include “inactivity alerts” (that remind you to get on your feet every X minutes), “sleep mode” (that tracks the quality and quantity of your sleep) and “heart rate” (that tracks your heart rate when evoked). Most come with companion apps for smartphones that can be used to store past data and access more detailed analytics of your behavior. The key here is battery life, since models range from those that need charging daily to those that need charging just once a year. So, choose wisely. I should also mention that some of the inexpensive models are highly inaccurate when it comes to the basic task of counting steps. So, do read reviews before you buy one.

Benefit: Know how active (or inactive) you are, and take steps to improve.

As you can see, there are a wide variety of “smart” devices that just need a smartphone and a WiFi connection to deliver their smarts. So, don’t be afraid to take the plunge and give it a try.

Who knows? Your’s may just turn out to be the “smartest” home in your neighborhood!

Connections

A friend proudly posted on an online forum that he was able to fit in multiple activities in his life (including running a startup!), thanks to no cable TV, no YouTube, no tea breaks, no FB and no What’s App groups. His argument was that we all have a finite amount of time, and hence, need to ‘make time’ for what matters by giving up something else.

I agree with that last part, and have lived with that belief for as long as I can remember. Defining your priorities, and making time for them, is the only way this works. I’d also recommend improving efficiencies to get more return on investment for the time you do spend on your chosen pursuits. But I also fear that my friend, like many others, is missing out on a vital part of life.

There is a case to be made for widening your horizons and interacting with perspectives that are not like your own.

Most of today’s online technologies are designed to give you more of what you’ve already liked, or interacted with. But, it helps to push yourself out of your comfort zone and understand Life from the eyes of those who don’t think like you. And, that’s where ‘mass media’ can help.

The way things like newspapers and TV work is that someone else decides what constitutes “good content” for the large majority of us. That may not coincide with what we would like, or agree with, but that can be a good thing… at times.

Today, more than ever, we need to embrace diversity of thought in all spheres, from politics to society to technology. We need to seek out views that are significantly different from our own, whether through a thought-provoking Netflix documentary (on a subject we may know little of), or a feature in the local daily that proposes a view contrary to our own (closely-held) beliefs.

That’s how new connections will form. That’s how we will someday go past our predispositions. That’s how we will eventually stop judging or fearing those that do not resemble us, and truly begin to understand each other.

There are 7 billion of us, and every one has a unique world view, shaped by diverse, multi-cultural experiences. Let’s not allow easy access to the Internet to dumb it all down.

Engaging Smarter with AI

Last month, in suburban London, a delivery of a parcel was attempted by Amazon Prime.

The homeowner was out on a school run, but had a video doorbell from Nest Hello (Google) installed in the home. An Apple iPhone X received a live feed from the doorbell, and a 2–way chat soon transpired. It turned out that the homeowner’s Tesla was parked right outside, and was accessed via the Tesla app – thanks to its permanent cloud connectivity. The boot was remotely opened by the homeowner, who could see it live on the video stream. The delivery guy was able to leave the package inside, after which the car was remotely locked via the app, resulting in a successful delivery.

What is noteworthy about this story is that it involved four distinct services – Amazon, Google (Nest), Apple and Tesla – all of which were digital, but none were specifically designed to work together.

Yet, in many ways, we are probably in the first hour of the evolution of AI (think before the Internet happened).

Futurists like Kevin Kelly (Founding Editor of Wired) speak of a rapid “cognification” of the machines around us, giving them the ability to harness superhuman powers – minus the (human) distractions. But, they also augur that the most popular AI product that will be in use 20 years from now, hasn’t even been invented yet!

What is (or isn’t) AI?

The Merriam-Webster defines Artificial Intelligence as: “The capability of a machine to imitate intelligent human behavior.”

We humans possess a number of cognitive abilities that help us learn new concepts, apply logic & reason, recognize patterns, comprehend ideas, solve problems, make decisions, and use language to communicate. We call this intelligence.

This “intelligence” enables us humans to think, to be self-aware, to experience Life.

And, human intelligence is not just linear and one-dimensional.

Howard Gardner in his ‘Theory of Multiple Intelligences’ argued that there were a wide range of different abilities operating in the human mind. – ones that did not necessarily correlate with each other.

Gardner proposed that these distinct types of intelligences – including logical-mathematical, linguistic, spatial, musical and interpersonal – are what enabled people to become a plumber, farmer, physicist or teacher.

Modern machine capabilities typically classified as “AI” include successfully understanding human speech (as in voice-recognition), competing at the highest level in strategic game systems (such as Chess), and intelligent routing (as in Content Delivery networks or Military simulations).

But the scope of AI is disputed: As machines become increasingly capable, tasks considered as requiring “intelligence” are often removed from the definition, a phenomenon known as the AI effect. As a result, routine technologies like Optical Character Recognition (OCR) are frequently excluded from the definition.

In fact, we tend to think of AI as whatever hasn’t been done yet!

The fact is, AI is not just embedded inside Netflix algorithms or voice controlled ‘smart assistants’, it’s embedded in our lives.

The decades-old autopilot systems that fly our commercial airplanes is just one example of that. The humble “calculator” is already smarter than most of us in arithmetic, and the GPS chip in our phones is already better at spatial navigation than the average human – both being examples of machines exhibiting intelligence.

Growing significance of AI

Clearly, AI is relevant to any task requiring intelligence.

High-profile examples of AI include autonomous vehicles (such as drones and self-driving cars), powering search engines (such as Google), and improving spam filtering or targeted advertisements.

In Medicine, AI is being applied to numerous high-cost problems, with initial findings suggesting that AI could save as much as $16 Billion. In 2016, a ground breaking study in California found that a mathematical formula, developed with the help of AI, correctly determined the accurate dose of immunosuppressant drugs to give to organ patients.

In Financial Services too, there are several use cases for AI. Banks use artificial intelligence systems to organize operations, maintain book-keeping, and invest in stocks. AI-based tools help read documents, process cheque payments and respond to customer requests. AI has also reduced fraud and financial crimes by monitoring behavioural patterns of users for any anomalies.

Today, AI can even analyze “silence patterns” on Customer Service calls to infer insights from excessive hold-times about system delays, outdated CRMs, etc.

Engaging smarter with AI

However, in our quest for providing more bells and whistles, we may sometimes lose sight of what truly matters. We need to connect the dots… across devices, channels and teams. We need to listen to our customers, our distributors, our employees. We need to move from proposition to purpose.

Does Customers + AI have to equal chatbots?! Or can we use AI-based tools to actually improve outcomes for our customers?

Here are just a few examples where intelligent use of AI can help improve Customer Experience, regardless of the underlying business:

  • Design more relevant products and services for your customers by listening to your customers and putting those insights to work
  • Continue conversation threads in CRM systems, regardless of their initial entry point, so you can provide contextual help
  • Predict a lapse or termination, and intervene with appropriate measures, before you lose the customer

Technologists argue that in the not-so-distant future, if a task needs to be done efficiently, it will most likely be done by robots (as in AI with bodies), while humans will focus on activities that are typically inefficient – think exploration, innovation, science and art.

Ultimately, our ability to deal with what comes next will depend on our willingness to embrace a co-existence with machines and their intelligence. Only then will they become our partners, not just tools.

This post first appeared on YourStory.

CX vs Hyper Customization

Intuitively, we believe that all customers expect personalization and customization in the products or services they buy. Marketers are told they need to be more ‘relevant’ to the target consumer. Product Managers are taught to map out customer needs, and then address those needs through the products they design. Business folks understand that the revenue numbers they chase will grow as more and more customers see ‘value’ in their offerings. So much so, that n=1 is now the mantra of success – the ultimate segmentation goal is a segment of just one!

But, does hyper-customization always lead to an improved Customer Experience?

It’s a question worth asking, since considerable dollars are being diverted to the pursuit of providing customers with the tools they need, to tailor their experiences to their unique needs.

Take the example of a leading food-delivery app. Its initial mandate was to induce trial among hungry customers by offering them the ability to order food from their favorite local restaurants. As more and more restaurants (and customers) signed up, the app may have attracted bigger rounds of funding. And with it, came even better “features” in the app.

One such feature is the ability to add a “special instruction” along with the order placed. Of course, the app makes it clear that they merely promise to do their best to pass on these instructions to the restaurant. But, what happens if you are allergic to a substance, make a mention of strictly avoiding that substance in your order, and take delivery of a dish that includes said ingredient?

The customization feature in the app offered you the means to specify your needs, but the restaurant did not pay heed to it while preparing your order. By the time the app’s delivery boy arrived, it was too late to re-do the whole order. In such a scenario, who should take responsibility for the end product? Who is accountable for the ultimate customer experience?

Take another example of a leading five-star hotel chain that aims to make a guest’s stay as comfortable as possible. While signing up for its loyalty program some years ago, a friend of mine specified his preference as “smoking room/floor”, and this info was promptly relayed to the reservation systems for all future bookings.

Now, for the past few months, this friend has been working on quitting his smoking habit. Since his office does his bookings, he was not surprised when he discovered during a recent check-in, that he was assigned a room on the smoking floor. However, on requesting a change to a non-smoking floor, he was told that since he is a member of the loyalty program, the system would not allow this change until he logged in to his membership and updated his preference!

Imagine the plight of a weary traveler, at the end of a long working day in another town, made to recall a password to login to a system he hasn’t used in over a year – just to get a non-smoking room! Of course, it is possible to design the system such that this requirement is not mandatory. But, that’s not the point.

In our quest for providing more bells and whistles, more personalization and more customization, we may sometimes lose sight of what truly matters to our customers…

More does not always mean better. Technology does not always enable. And, let’s not forget that CX is how the customer ultimately experiences the product or service.

Fostering Innovation

We spend most of our lives in an “operational” world – one that is defined by rules, routines and rationality. But Innovation requires a different skillset that includes connection making, curiosity and experimentation. So, how does one go about building a culture that fosters these values?

This week, I had the privilege of attending a workshop run by Amazon’s Innovation team on Customer Centricity and Building a culture of Innovation. And, here are some of the principles that particularly resonated with me…

  • The key is learning how to handle experiments and failure; If you already know its outcome, it doesn’t count as an experiment
  • Culture ultimately drives Innovation; Make sure your hiring, reward & recognition, performance assessment, etc. are all aligned to support it
  • If your focus is on truly improving the life of the Customer, the other business metrics are sure to follow
  • When working on a new product/service, take the MVP route: What is the smallest thing I can do to test my idea? Then, release to users. Then, iterate and improve.
  • Avoid slide decks, and instead aim for simple narratives written in customer-speak; It will provide much-needed clarity on what will really work (and what will not!)
  • When it comes to Innovation, you need to be “Stubborn on the Vision, but Flexible on the Details” ~ Jeff Bezos

Much of this may seem like common-sense, or even something you may have read elsewhere. But, try to implement any one of these (at a team or organization level), and you will truly appreciate what goes into making it happen.

It may take a while to get there, but the reward is well worth the effort.

Doing UX Right

Yes, we live in a multi-screen, always-on world. Yes, most of us agree that Design and UX matter. Then, why is it so hard for most organizations to do UX right?

There are, of course, some challenges involved. Business enterprises are trained to think of customers as belonging to various segments. And, as the business grows, it tries to tap into an ever-expanding market, reaching out to newer customer segments that eventually have little in common with the original tribe. This is especially true of large, diversified groups of companies.

In such a context, how do we establish which design approach to take? After all, what works for one customer type, may not work for the rest. More importantly, how do we institutionalize the pursuit of “good design” across the enterprise? As it turns out, it is possible to do a few things right and meet the objective of delivering a good UX…

1. Good Design is a Thing

Segmentation is important, and customers often exhibit different personalities and needs. But ultimately, we all like an elegant, friction-less experience. So get your team thinking about what constitutes “Good Design”, learning from the principles laid down by Dieter Rams, Don Norman and others. Build on those principles when you start working on aspects like Presentation, Interaction, Content, etc. and you will be a step closer to your goal.

2. Know Thy User

Understand your “user”. Walk in his/her shoes. Meet with them often to keep in touch with their needs. Find out what they want from you. Reflect on what you want from them (Hint: There can be more than one possibility). Then, align your design philosophy to those insights as closely as possible. After all, design is not just art. It is about crafting solutions to real issues.

3. Embrace Insights

Be open to insights from diverse functions – UX is a multi-disciplinary science. Ask “why” like a five-year-old would. And, don’t be afraid to split test and iterate all your ideas. As Kate Zabriskie once said, “The customer’s perception is your reality.

4. Aim for Amazing

Understand each medium or channel that your customer interacts with. Aim for a consistence experience across channels – your customer is expecting you to do so. Every design decision is a trade-off, and you can never please every one. So make sure you make the trade-offs that matter the most. Remember: Good experience + Thoughtfulness makes for an amazing experience!

Design Thinking and Innovation

Having spent more than twenty years (as an internal or external consultant) addressing a variety of business problems for both clients and employers, I do know a thing or two about “Design Thinking”. In fact, my consulting outfit – ThinkShop.in – regularly works with clients across industries on a range of business/technology/marketing solutions, including organizing custom boot camps on topics that include Digital Strategy, Design Thinking and Customer Engagement.

But even Teachers can become Students, and there is no limit to the learning one can assimilate. So, when the opportunity arose a few months ago, to attend a workshop on the subject of ‘Design Thinking‘, I looked up the profile of the coach, and realized this was an opportunity not to be missed!

The workshop was being conducted by Prof. Srikant M. Datar – the Arthur Lowes Dickinson Professor of Business Administration, Faculty Chair of the Harvard Innovation Lab, HBS One Harvard Faculty Fellow, and Senior Associate Dean for University Affairs at Harvard Business School. A Chartered Accountant by training and a gold medalist from IIM (A), Prof. Datar holds two masters degrees and a Ph.D. from Stanford University, and brings decades of experience working with leading Fortune 500 companies as a consultant.

Though no single post can capture the depth of this subject, if you are just starting off on your journey, here are some key learnings you may find useful:

Innovation can be a breakthrough or even incremental change at a product, process or business-model level

Innovation ultimately depends on the quality of observation and insight, how we frame the problem, and quality & quantity of ideation

‘Breaking Fixedness’ – our fixed ways of thinking that help us in our day to day life, our hard-wiring – is the key to Innovation

The risks of not innovating are even greater than the risks involved in innovating

Most of us spend most of our lives in the “operational” world defined by rules, routines and rationality, while Design Thinking requires skillsets that include connection making, curiosity and experimentation

‘Status Quo Bias’ is a real thing that adversely impacts the pursuit of Innovation in any field

Techniques like multiplication, division, rapid prototyping, etc. can be used to overcome prevalent cognitive biases, when it comes to designing a relevant solution

Of course, if you are serious about building an Innovation practice, you will need to do a whole lot more, including equipping your team members with the skills they will need to make a dent.

‘Design Thinking’ matters, and investments (of time and money) made in building a strong foundation will surely reap rich rewards for your organization, when it starts impacting the Customer Experience positively. As an added bonus, you will find that it also ingrains in you a new, refreshing way to look at the world.

Did I mention, ThinkShop can help?!