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The art of apologising

Jetstar’s recent one page apologetic newspaper advertisement to the public of New Zealand didn’t quite do it for me. I’m sure it was published at great cost with the best of intent but i think the money could have been better spent much more effectively elsewhere.  So let’s examine how Jetstar could have done better.

My major premise is based on basic human factors. Jetstar customers (past, present and future) will effectively have a personal relationship with Jetstar. They will expect to be treated humanely and receive great service. They expect to be respected by Jetstar as human beings at a personal level. And they in return will pay for this. Customers who have taken the time and effort to complain have started an even more personal relationship. They have given up their time and emotional energies and proactively communicated with Jetstar. Their feedback is invaluable to Jetstar improving its ongoing performance. A two-way channel of communication is open and working.

But then Jetstar chooses to use a one way channel to communicate the apology. There was no chance for the customers to give feedback, no mention of a website link that might enable the two way communication to start up again, no attempt to contact the database of email addresses it undoubtedly has, nothing. We are sorry, please don’t write us off in the future – end of discussion.

So here’s what i would have done:

  • Created a specific apology webpage where customers could continue the conversation and help re-establish the relationship. Customers could simply post feedback, ask questions, maybe receive a small token of appreciation for making the effort to start up the relationship again – 20% off next trip – something.
  • Accessed the email database and sent all customers a personal message of apology.
  • Started a competition for all customers as a way of saying sorry. $X,000 worth of travel vouchers, hotel vouchers, petrol vouchers – whatever. 
  • A special prize given to the top 10 customers who got affected the worst.
  • Listed what was going to change going forward to give the customers confidence that lessons had been learnt and were not going to be replicated again.
  • Adopted a proactive tone and manner rather than an apologetic one. “yep, we stuffed up and we are sorry but it is not going to happen again, no way. We will do everything we can to provide you with the customer experience you deserve and that we are known for in Australia.” 

Ultimately, actions speak louder than words. Customers will purchase more off you if they have a two-way relationship with you and you have a proactive manner when things go wrong.

Service Tiers – a retail optimisation tactic

In retail, selling to someone unusual or with an unusual need is a hassle because often they want unusual products, something your ‘regular’ customers don’t normally want, which would sit around taking up limited space, and resources. Of course the web is changing this paradigm with its ability to overcome the costs/pragmatics of limited retail space, but that’s not much help here-and-now to today’s retailer (unless they’re up for a move to online, more on that another time).
What about regular customers, who from time to time want something a little bit over and above the call of duty? Those times where they have unusual needs – not for your products – but for how they access them, and for how they are treated. These aren’t people who want you to stock highly unusual products, they just need a level or style of service which isn’t normal for you. What do you do with them?
Most of the time retailers treat people who want unusual products, and people with unusual service requests, the same. It’s all too hard to meet the various expectations, so they don’t try to. They focus on doing well the other 70% of the time, and provide ‘normal’ services only. That approach works for them, first and foremost, not for their customers.
What many retailers overlook is that one of these two needs can be addressed quite easily. People who want to buy your normal products, but have unusual service needs, are remarkably easy to cater for.
Retail service-tiers are fertile ground for customer experience improvement. There is no downside to adding new service options, if you’re paid well for them, and can manage them in a controlled way. The great thing is that if your customers are prepared to pay for them, then clearly you’re creating a win-win situation.
Here are some ideas:
For a fee, open the doors for customers any time of the day or night. If they spend enough – even waive the fees (why would you not?). How much would it really cost for one of your staffers to be on call and pop in every now and then? Have you ever been frustrated that the sports, motorcycle, music or the clothing store weren’t open when you were ready to buy and happy to pay some kind of premium?
Offer to send your product via urgent courier during business hours, literally within minutes, for when they’ve got an emergency or just want to buy their way out of the waiting time. Pass on the real costs, but that’s it. This applies to anything from business shirts to baby clothes to gelato. Ever wished some gorgeous gelato could materialise before your eyes on a hot-summers afternoon when you were stuck in the office? Or that classic: stained your shirt on the day of the big meeting, or forgot to pack a new shirt on your business trip, and only realised when it was almost too late.
Offer an ‘anytime’ delivery option. Ever tried sending flowers last minute to someone in hospital only to find you’d missed the ‘normal’ delivery times and were completely out of options (even the local florists are closed at these times right)?
There are lots of examples of companies doing this well, but not enough retailers:
Cinemas – Premium seating/service for a fee, same old movie
Platinum/Gold credit cards – Convenience and complimentary services – for a fee, same basic product
Apple retail – Personalised special attention – for a fee, no change in product
Koru club – Convenience, status, complementary services – for a fee, but you still get on the same plane
Photo printing – Faster turnaround/delivery – for a fee, no change in product
Drycleaning – Faster turnaround – for a fee, still the same core service
Passports – Urgent processing – for a fee, no change in product
Freight/Postage – Faster delivery/more security – for a fee, and it still ends up in at the same destination
Service tiers are different to product tiers. Service tiers are about finding ways to sell the same basic product, wrapped in more useful services, to meet a broader range of reasonable customer wants/needs, and improving revenue and retention along the way.
It’s possible that by thinking creatively you can create whole new revenue streams, and that’s worth considering, but the killer benefit is in the impact of these services on your customer relationships. You’ll have found a way to go above and beyond for your customers, when your peers aren’t, at a time when they really need you to, or want you to. You’ll create strong ‘word of mouth’ because you’ll be providing something remarkable.
There’s a catch: if you don’t really know who your customers are, or what they value, you’ll have a hard time identifying a mutually beneficial value added service. Worse still, you might end up doubting there is anything you can do to improve.

In retail, selling to someone with an unusual product need can be a hassle. They want products that your ‘regular’ customers don’t, which is therefore a stock hassle and ties up your operating capital.

What about ‘regular’ customers, who occasionally  want you to give them a whole new level of service, say when they’re in crisis, or desperate? In these times they don’t have complex product needs they just need a level or style of service which isn’t normal for you. What do you do with them? Read the rest of this entry »

Use longitudinal customer insight gathering on big projects

I was having a coffee this morning with a couple of clients about a potential project we could be involved in and during the conversation the importance of customer insight came up. We talked around how for a very large investment, like this project, you would want to base your thinking on some pretty sound customer insight (not to be confused with customer research!).

As we were talking, I raised the idea of longitudinal insight gathering. I define this as touching base with same person across the development part of a project in order to obtain insights that can optimise the development process.

Coincidentally, when I got back to my desk and and Google reader I came across a couple of blogs that caught my attention around the same area.

Read the rest of this entry »

Is the Customer always right?

Being a frequent flyer i’ve been following with interest the introduction of Jetstar to the New Zealand market. I don’t think i’m being libellous in saying it hasn’t got off to the best start. The most common complaints have been the strict adherence to the 30 minute pre-flight cut off time, bad customer service in handling the cut-off time, lost luggage, lateness, rescheduling and the inability to land in visually difficult conditions.

Is it fair enough for customers to criticise Jetstar? Are they right? Read the rest of this entry »

7 things to do in retail to be extraordinary in the eyes of your customers

Here are the seven things I’ve heard over and over from shoppers when they talk about the retailers they tell other people about. They are literally walking out the door of their favourite stores looking for someone to tell about how good it is. They’re called “promoters” and there had been a lot of discussion suggesting this is one of the most important numbers you need to worry about in a business.

Most retail is unfortunately pretty average. I think this can be put down to one major fact: the barriers to entry are actually quite low. it’s easy for anybody to do it. Space, fixtures, finishes, products, store staff, even supply chain and IT – all pretty easy to buy off the shelf.

So good is easy, but how hard is great? Well, to be honest, great is not at all hard… it just takes a little focus, a little passion and a little inside knowledge – from shoppers.

How do you become extraordinary. How do you get people recommending you to family and friends? When you talk to people about stores they love this is what you hear:

“I know why they exist. I know what they do. Most importantly though I know what makes them special and different. Everything they do seems to reinforce this.”

“The things they do, the way the store looks, the little things are memorable and stick in my mind.”

“As a store they put substance over style.”

“There is always something happening that is new and different.”

“The staff are knowledgeable and passionate.”

“I end up spending a lot of time in the store, lingering, looking, reading.”

“There is a store and a website and the two work together seamlessly.”

There you have it.  The inside knowledge. The difference between good and great… between good and extraordinary. If you’re in retail, go for extraordinary. You’ll get more promoters and make more money.

What people really want to do on the web.

Recently I have been becoming more curious about where the web is at for the mainstream population as opposed to the leading edge innovators and early adopters.

This is one of the best visual representations I’ve seen about people’s intent: www.ruderfinn.com/rfrelate/intent.

Not surprisingly as humans we are using the web to do what we have wanted to do for centuries – learn, play and socialise. This is probably not earth shattering in itself, but good a reminder for us involved in customers and the experiences they have with businesses, that we shouldn’t lose sight of the core human drivers.

Do you know the real intent of your customers and potential customers in this channel? If your answer  is “No” or “Not sure”, you need to spend time getting close(r) to your customers. Build your business through eyes not yours. The best way to bring the customer into the centre of your business is to develop personas for them. This brings them to life and they can then metaphorically ‘join’ your management team.

What good is knowing the value of customer experience, if you don’t know how to improve it?

In a great post on the increasingly measurable links between customer experience and revenue (Customer Experience Boosts Revenue) Bruce Tempkin builds on his earlier thoughts. OK, so that’s great, and something I’m still surprised is taking business so long to trust and measure.

But I’m more surprised, at how many New Zealand businesses still don’t actively monitor and optimise their ‘customer experience’. I’m not talking about some soft general effort to make customer interactions ‘feel better’ rather, ongoing, pragmatic and focussed review of actually how those interactions play out and how they can be improved.

Perhaps my background working in the web gives me a bias toward measurement, apparently it’s an easy channel to measure effectively, but even in that domain I see a distinct lack of anything other than low-level functional testing.

Perhaps what’s been missing is a belief (and or the proof) that improving the customer experience affects revenue? Or simply the guidance and methods for improving customer experience in a focussed pragmatic way.

Great Customer Service isn’t good enough any more

A lot of organisations in the financial services sector (and probably most other sectors  to be honest) speak with pride about their much vaunted Customer Service and occasionally release research findings that indicate they are competing well against their peers. Some even have chosen Customer Service as core planks of their brand positioning both externally and internally.

At first glance this sounds like a good notion to have central to your brand. All customers love to be given great service. 

So what is the problem then? Read the rest of this entry »

In a nutshell…

This is a place for us to share and discuss our thoughts and experiences about the role of the customer relationship in business. We're particularly focussed on how that's possible - on exploring the pragmatic aspects of incorporating customers into businesses.

This blog is written by the CTO team at DNA. We help improve businesses by looking through the eyes of their customers.

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