As many of you know, I do lots of 1-on-1 customer and prospect visits each year. Nothing substitutes for being at the coal face. Here are three top level takeaways from this year’s 150 or so visits:
Changing Titles
In 2008 the highest ranking title of the people I was meeting with included the words “Customer Service” or “Customer Operations”. In 2009, the most prevalent highest ranking title in each meeting was “CEO” or “COO”. Second was “CIO” and in third place was last year’s winner, “VP of Customer Service” (I also saw a number of top marketing execs starting to show up as well). Generally “Customer Service” was always in the meetings, but their boss and IT appearing are significant.
I believe this shift in attendance has to do with the increasing importance of customer experience and the growing recognition that due to globalization, price and product features no longer provide sustainable competitive differentiation, but excellent customer experience does. If you don’t take care of your customers they will leave. Finding new customers is not easy.
Our latest Consumer Survey conducted by Harris Interactive confirmed these findings:
• 86% of US consumers will stop doing business with you after a bad experience.
• 82% of them told their friends about the bad experience.
• The #1 reason consumers recommend you is outstanding service – not price or product quality.
• 60% of consumers will pay more for a better experience…you’d expect this to decrease …in fact, it’s up from 51% in 2007
Social Intensity
Every single customer I met with wanted to talk about how to leverage social networking in a consumer business. Not some of the customers I met with, all the customers I met with. We’ve made our recommendations on how to get started and where the ROI is so I won’t belabor the point, but this development is HUGE. Listening to third party networks and facilitating corporate sponsored communities are quickly becoming table stakes in today’s marketplace.
Government Cloud is Hot
At some point in 2009, governments woke up to Cloud Computing. That is always the way it is though. Work at something for over 10 years and all of a sudden you become an “overnight” success. During 2009 we launched our US Government Cloud, our Department of Defense Cloud and our Canadian Government Cloud offerings to very warm receptions. If you did not know, we have our solutions deployed in government agencies world-wide. In the US we are deployed at many state agencies, every federal executive cabinet level agency and every branch of the DoD.
I am excited to see what I learn in 2010 from my customer visits.
All the best for a Merry Christmas (or other holiday) and a Happy New Year.
Interesting. I was listening to a presentation by Joe Calloway a few years ago. He posed the same question about – price, quality, and service. Price is universal. Quality is expected. Service is now the primary differentiator. It now transcends related products or competitors. That is – customers will compare their customer service experience with their bank, dry cleaners, insurance company, resturant… with their customer service experience with your company – even if you’re not otherwise competing with those companies.
Hi Greg,
Interesting that I stumble upon these results.
Recently my company ran a industry survey on Customer Experience to assess the current focus for companies as the world heals from the GFC.
We learned that within customer experience – companies who focused solely on customer retention during the GFC and now equally focus on customer acquisition…an interesting development when compared to a year ago.
The company I work for is holding Customer Experience 2010 in Sydney next April. I’d like to talk to you more about your experience in this space.
Check out our website on http://www.customerexperienceevent.com.au
Merry Christmas
Chris,
I have forwarded your details to our staff in Syndey. I’m sure if we are both working on improving customer experiences, there is something we can work on together.
greg