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?!

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.

How To Demotivate Employees

I have had the pleasure of working for organizations of nearly all size and shape, ranging from solo ventures to 3-member teams to a few hundred employees, and all the way up to 30,000+ soldiers marching to a common tune.

Since my work has revolved around Services, the one thing that has been common to these stints is People. And, having seen a wide variety of industries and functions, I’ve had a ring-side view of how organizations motivate – and demotivate – their most important resource.

Here are some of the ways I’ve encountered in my journey, that result in employees being demotivated…

  • Not providing clarity on what constitutes “success”
  • Waiting for the annual appraisal cycles to provide much-needed feedback and course-correction to team members
  • Playing favorites within the team, or hiring old favorites from your past employment, with little regard for competence
  • Not creating a strong Reward & Recognition program to encourage performance achievement
  • Hiring outsiders at senior levels (and at commensurate pay hikes), at the cost of ignoring equally-competent loyal employees
  • Offices offering no transportation options / no cafetarias (especially relevant for large enterprises and those having poor access)
  • Managers promoting unqualified resources for positions that require technical competence, without including the necessary checks and balances (this one is especially demotivating for those who are competent!)

Needless to add, any one who is reading this and cares about doing it right, should do the exact opposite.

If you are an entrepreneur, build your organization the right way, and don’t compromise by hiving off “people management” to some trainee or junior resource. If you are a mid-level manager, watch out for such danger signals in your own enterprise, and try to compensate for what you see around you. If you are in a position of leadership, you can take measures to undo the damage this causes to your staff.

Remember, no matter how long you’ve traveled in the wrong direction, you can always take a u-turn.

Building Organizations That Scale

Have you heard of the ‘King of Murud Janjira’? Nope?

According to a Wikipedia entry:

Janjira State was a princely state in India during the British Raj, located on the Konkan coast in the present-day Raigad district of Maharashtra.

Its rulers were a Sidi dynasty of Arab Abyssinian (Habesha) descent. The state included the towns of Murud and Shrivardhan, as well as the fortified island of Murud-Janjira, just off the coastal village of Murud, which was the capital and the residence of the rulers.

How about the ‘King of India’? Still no?

Yes, I know India is now a democratic nation and has a modern governing structure. But, what about in the days gone by? Sure, India had countless nawabs, princes and other rulers for its provinces and states. But, how did that benefit our resource-rich, culture-rich nation? History teaches us that we were repeatedly plundered by invaders across the world, and ruled by others for nearly 200 years with strategies like ‘divide-and-rule’.

Now, think about the way typical organizations are structured.

Departmental silos abound. Incentives are provided for individual achievement, or at most, a small team’s effort. If one business unit or region implements a novel idea, it is often regarded as unacceptable for others to simply copy-paste it and execute as-is. Basically, everyone agrees that  at least “some creativity” ought to be incorporated while adopting someone else’s idea in your unit, not just resorting to “shameless copying”!

In other words, every one wants to be the “King”, but of their own small kingdom.

Surely, such an organization will spend at least some of its energy fighting internal battles and motivating its employee base. Such an organization will find it difficult to standardize its operations, or achieve scale. Such an organization is likely to get overtaken by unforeseen threats, when it finds itself least prepared.

Think about that for a minute. If you are in a position of leadership or an entrepreneur, what kind of an organization are you building? If not, what kind of a leader are you following?

 

This post was inspired by a meeting with an industry leader of repute, who raised some interesting questions in a business review.

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.

Richard Branson: Two Gems

The typical commute in Mumbai is harsh, to say the least. And, listening to insightful podcasts is a great way to make the most of your drive time.

One such talk I really enjoyed was a conversation with Richard Branson, founder of the international conglomerate the Virgin Group. Stephen J. Dubner of Freakonomics fame, spoke with Branson as a part of the series: “The Secret Life of a C.E.O.

While the entire series – including this episode – is worth its weight in gold, here are two takeaways that really made me stop and take notice.

1. When asked if he is actually the CEO of any of his companies, Branson had this to say:

… I’ve delegated pretty well all the C.E.O. roles. And I actually believe that people should delegate early on in their businesses, so they can start thinking about the bigger picture.

 

If I’m ever giving a talk to a group of young businesspeople, I will tell them, you know, go and take a week out to find somebody as good or better than yourself. Put yourself out of business, and let them get on and run your business day to day, and then you can start dealing with the bigger issues, and you can take the company forward into bigger areas, and you can — maybe if you’re an entrepreneur, you can start your second business or your third business.

 

And so I think too many young entrepreneurs want to cling on to everything, and they’re not good delegators.

I can’t tell you the number of people I know – personally – who need to hear this and truly internalize it. An “entrepreneur” and a “CEO” are two distinctly different mindsets. Some folks may be able to traverse the two worlds – fleetingly. But doing both simultaneously, and over a sustained period of time, is nearly impossible. The sooner an entrepreneur makes peace with that fact, the sooner he/she will be on the path to growth and success.

2. When asked about his famed approach to motivating people via employee-friendly policies across the Virgin group of companies, Branson replied:

… Let’s just look at this business of forcing people to come to an office.

 

First of all, you’ve got maybe an hour or an hour and a half of travel time in the morning, another hour and a half of travel time in the evening. And, you know, when you’re at the office, it’s important that you say hello to everybody and that you’re friendly with everybody, so you use up another hour or two, you know, socializing with people. Then, because you’re not at home, you need to communicate with your family. So you spend another bit of time communicating with your family. And so the day carries on and you might get a couple hours of work done.

 

If you’re at home, you know, you wake up. You can spend a bit of time with your family. And be a proper father, which is perhaps the most important — or mother — most important things that we can do in our life. But you can also find the time to get whatever your job is done, because you’ve got another four or five hours free to do it. And you know, we’ve never been let down by people that we’ve given that trust to.

Think about that. How many CEOs or business leaders do we know who are sensitive to the realities of day to day Life, the way the average employee perceives them? And, how many organizations can we speak about that actually “trust” their people to this degree? Work-from-home is just one dimension of this thinking; Branson also talks about a ‘prisoner program’ that Virgin runs to employ current and ex prisoners across roles, including in Security!

In my view, there has never been a better time to access the world’s riches. Insights are all around us, and conversations with folks who have done it all, are just a few clicks away. Some of us will make the most of it and learn from these experiences, while some of us will spend our time watching cute cat videos.

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.

Change Is The Only Constant

The idea of ThinkShop was born way back in 1999, when I first started a web-design studio called UncommonWisdom to work on Internet-based Communication Design. My boutique consulting firm was way ahead of its time, but we were able to deliver some interesting work in the digital space, including digital strategy, website design and UX for enterprise-grade applications.

In its second avatar, ThinkShop began life in 2013, helping its clientele bridge the gap between Idea and Execution, until the end of 2017.

As an independent consultant at the helm of ThinkShop, I was fortunate to work with some of the leading players in Financial Services, Insurance and Education, on projects that included developing Customer Engagement strategy and Marketing Communication frameworks, User Experience Design across multiple platforms, and architecture for a 100,000+ page web presence.

With the beginning of 2018, I have decided to take up an assignment that, once again, offers me the opportunity to apply my skills to problems of scale. With it, I commence a new chapter in my professional life, as ‘Group Head – Customer Experience’ at the Edelweiss Group – one of India’s leading Financial Services conglomerates.

A big Thank You for all the support you’ve shown to ThinkShop and me.