This was passed my way through email the other day. You may have seen it, and I can’t claim for its veracity, but I’d like to believe it’s real. It’s the letter of a 98 year old woman to her bank after they dinged her with a penalty. Apparently it was published in The Times in London. Real or not, it’s a great lesson to businesses who want to serve customers the right way (i.e. as humans), and also for not underestimating the intelligence of your customers, no matter who they are:

Dear Sir,

I am writing to thank you for bouncing my cheque with which I endeavoured to pay my plumber last month. By my calculations, three ‘nanoseconds’ must have elapsed between his presenting the cheque and the arrival in my account of the funds needed to honour it.. . I refer, of course, to the automatic monthly deposit of my Pension, an arrangement, which, I admit, has been in place for only thirty eight years..  You are to be commended for seizing that brief window of opportunity, and also for debiting my account £30 by way of penalty for the inconvenience caused to your bank.

My thankfulness springs from the manner in which this incident has caused me to rethink my errant financial ways.  I noticed that whereas I personally attend to your telephone calls and letters, when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become.  From now on, I, like you, choose only to deal with a flesh-and-blood person.

My mortgage and loan payments will therefore and hereafter no longer be automatic, but will arrive at your bank by cheque, addressed personally and confidentially to an employee at your bank whom you must nominate.  Be aware that it is an offence under the Postal Act for any other person to open such an envelope.  Please find attached an Application
Contact Status which I require your chosen employee to complete.  I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative.  Please note that all copies of his or her medical history must be countersigned by a Solicitor, and the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof.

In due course, I will issue your employee with PIN number which he/she must quote in dealings with me.  I regret that it cannot be shorter than 28 digits but, again, I have modelled it on the number of button presses required of me to access my account balance on your phone bank service.  As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further.  When you call me, press buttons as follows:

1 – To make an appointment to see me.

2 – To query a missing payment.

3 – To transfer the call to my living room in case I am there.

4 – To transfer the call to my bedroom in case I am sleeping.

5 – To transfer the call to my toilet in case I am attending to nature.

6 – To transfer the call to my mobile phone if I am not at home.

7 – To leave a message on my computer (a password to access my computer is required.  A password will be communicated to you at a later date to the Authorized Contact..)

8 – To return to the main menu and to listen to options 1 through to 8.

9 – To make a general complaint or inquiry, the contact will then be put on hold, pending the attention of my automated answering service. While this may, on occasion, involve a lengthy wait, uplifting music will play for the duration of the call.

Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement.

May I wish you a happy, if ever so slightly less prosperous, New Year.

Your Humble Client

To build that perception you need to build a customer experience. Some companies understand this. But what many organizations fail to see is this: the customer experience is comprised of EVERYTHING. That is every interaction, communication, and process. It all matters. Look at your customer experience not as one grand process, but as an integrated series of processes, each with the goal of building toward an ideal customer perception.

So I ask you: What do you want your customers to do? What do you want them to think? Are each and every customer “moment of truth” consciously created to accomplish that? If not, it’s time to get to work.

As the late great Marshall Field said, “Your customers are your only profit center.” Yet most businesses are not set up with that as a core part of their philosophy. The businesses that do focus on the customer relationship, and build processes, product and service around it, seem to also be the companies that continue to succeed in down economies, which, last I checked, we were in right now.

Something to think about.

For most businesses, there is a business goal. Maybe it’s to maximize profits. Or it could be growth: increased revenues or a larger customer base. But at the core, you have a business goal. The mistake I see companies make when they decide to start paying attention to their customers is that they don’t start with the business objective. Instead, there’s a vague “improve” customer service or some such mantra.

If you really want to effect change that will impact your bottom line, there’s an order of attack that will increase your odds of success. Think of it as a logic problem:

1. What’s the Business Goal? Yes, this seems obvious, but humor me. You can’t accomplish your goals unless you know your goals, and everyone on the team agrees just what the goal is. Start here.

2. What’s the Desired Customer Behavior? In order to achieve your business goal, you must define a “desired customer behavior.” For example, if your business goal is to increase the size of the customer base without increasing your marketing budget, you need to drive your customers to refer your company to others more often.

3. What’s the Desired Customer Perception? To drive a desired customer behavior, you must create a desired customer perception. That is, you  must convince your customers to think about your company in a certain way, so that they will act in a way to achieve your business goals (e.g. tell others about you; stay longer; buy more).

4. What’s the Desired Customer Experience? In order to create that perception, you must provide a customer experience that delivers in a specific, positive way, everytime. That means each communication, each interaction, each channel must consistently leave the customer with a desired impression or emotion. What that impression is depends on your business goal and brand promise. Any experience, big or small, that doesn’t deliver will reduce your chances of achieving your business goal.

5. What’s the Current Customer Experience? Only after working through those issues of business goal, brand promise, desired customer behavior and desired customer perception is it time to get moving on your existing customer experience. Now is when you must take steps to objectively analyze your current customer experience, and begin to incrementally improve upon it in order to achieve your business goals.

I’ll talk more about the actual analysis and improvement steps in another entry. The important thing here is to first take a breath and figure out just what you want to have happen before you start down the customer experience path.

If you’ve been in business for awhile, you know that I’m right. Have you ever hired somebody with the right technical skills for a job, but also with a holier-than-thou air? It’s over. Spend money on training, spend money on processes, and you can improve the customer experience slightly, but with that attitude, your employee will be able to “overcome” those efforts to create a negative customer impression.

Think about the companies who take customer experience seriously - Zappos, Southwest, Union Square Hospitality Group. Do they all spend time and energy on processes, technology, and training in order to create a memorable customer experience? Absolutely! But first, each focuses on unique and time consuming methods for assuring that they’re hiring the right people. They understand that the foundation for exceptional service and experience is the people. The other stuff just helps those great folks to deliver what they want to in the first place.

How’s your company set up? Do you have employees that touch customers who don’t naturally seek out ways to connect with and help people? If so, you better take a hard look at your hiring processes. It’s the key to customers who - whether they know why or not - keep coming back.

When that happens, how eager are you to approach that person the next time you see him at a party, or at the coffee machine at work? Probably not so much. The reason, of course, is that we all like to be entertained, but a much more powerful need is to feel we belong, and that we’re valued. We’re social animals, and a primal force that drives us is a sense of connection with others.

And yet, when you think about the different companies you deal with, and the way in which they set up their processes, services, and communications, what is usually missing? In my experience, and our research, the ingredient often lacking is that connection.

Businesses like to disseminate, not discuss, to promulgate policies instead of engage in discourse with customers. And I’m not talking about just the poster children for bad customer service. Even companies that mean well avoid dipping too far into activities like listening and interacting with customers because, let’s face it, it can get messy.

But for businesses who want to change the dynamic and elevate the customer relationship to a new level, to a plane where customers have a real voice, and feel connected, with your company, the effort pays off exponentially. The reward for you is not just short-term gains in retention but a fierce loyalty – not just because of your products or services, but instead because of the more powerful emotions that drive human behavior: friendship, caring, and belonging.

If you’re thinking “you lost me at ‘economist’” then we are kindred spirits. It’s not my thing. But he was powerful in his predictions, and I’ve been thinking about the discussion ever since. I admit, when he first began speaking about 2011 and the future, I was growing uncomfortable. What about NOW? What about TODAY?

But his focus was on beyond. What happens beyond Chicago, beyond the United States, beyond 2011, beyond this economic turmoil in which we’ve been immersed.
It’s so tempting to think short-term. So many organizations are focused on the immediate realities of our world today. Even the “unsinkable” companies of past generations are looking at how to make the next payroll; how to pay off the latest debt; how to cut the costs FAST.

When it comes to customer experience, it’s easy to fall into short-term thinking. Here are some examples:

• Promotion without strategy – customers can smell desperation and often exploit it. Know your limits and understand your desired pay-off before promoting something too quickly. (KFC!)
• Talking without listening – Executives who decide what to say to customers without talking to them first will have a hard time appealing to them. (MotrinMoms learned this the hard way.)
• Sacrificing current, loyal customers for the sake of acquiring new customers – AT&T recently retreated on their original iPhone policy in response to the outcry from current customers.
• Finally – this one is a personal favorite – treating social media as the end-all of customer communications. Social media is a fabulous tool, as I discuss here, but it’s just that – a tool. It’s part of a larger strategy of connecting with customers in powerful ways to naturally create loyalty and retention. If there is no larger strategy at work, social media will be a way to possibly connect with a segment of customers, and that’s only if it’s executed well. If not, it’s just another tool being underutilized.

So, as hard as it is, I believe we all have to start looking at beyond. Take a minute, map out where you want to go with your experience strategy, and then take the steps to get there. I feel better already.

So I’ve been thinking about tyranny lately.

It’s typical for a tyrant to host “fair and free” elections, and then simply adjust the results to proclaim victory. Hello, Iran.

This got me thinking…how many companies are actually tyrants when it comes to how they treat their customers?

According to Wikipedia, a tyrant, in the classic sense, is a harsh and cruel ruler who places his or her own interests or the interests of a small group over the best interests of the general population which the tyrant governs or controls. How is this different from those companies that exhibit the following behavior when dealing with their customers?

1. You’re Mine Until I Say You’re Not Mine

Cell phone companies are easy to pick on in this category. They require customers to sign up for contracts for coverage which are impossible to get out of without big fees. Often, the contracts for coverage outlast the phones themselves. The customer has to choose between 3 totally undesirable options:

· Buy a new phone at a huge cost and play out the remainder of the contract.

· Extend the contract so the phone is reasonably priced, but only by committing to more time with a company that doesn’t care.

· Leave the carrier for another with big fees for leaving and no rewards for loyalty.

This is essentially a big ol’ “Screw You; We Got You” to the customer.

2. Now That You’re Mine, I Need to Find a Better Model (of YOU)

Just like Henry in England grew tired of his wives and looked to upgrade, companies seem to think if they hang on to you, they can treat the next customer better and you won’t care. The latest example of this is the new iPhone debacle. Current AT&T customers will pay (a lot) more than those who just walk in the door. The Twitterverse has been abuzz with this fact – causing major customer dissatisfaction…even petitions circulating around.

3. We Can Change Expectations. Customers Will Have To Deal With It.

It seems some companies are interested in finding loopholes – or worse – just changing the rules of engagement without warning or concern for customers. Retail is particularly notorious for this type of behavior. For example, a store proudly displays a banner announcing “Double Coupons All Week!” and then doesn’t display the fine print there is a limit of 3 or 5. So the very customer who made a special trip to the store for the double coupons feels deceived that only 3 of her 10 were doubled.

Should we even talk about the airlines? How many expectations have they changed in the last few years? No wonder customers are miserable.

Unfortunately, I believe that tyranny as part of the customer experience is the norm more than the exception. The irony is that those companies who decide to be above the tyranny are the ones who are building loyalty, creating great customer experiences, and showing results to prove it.

Yes, Southwest Airlines recently lost their long streak of consecutive profitable quarters. Compared to the other airlines, Southwest has consistently outperformed them. Southwest has made a business of treating people well – and exceeding expectations.

Zappos is also a company known for their unbelievable customer service. Their liberal return policy – up to 365 days after purchase – is just one reason many customers shop with them.

There are ways to serve the company’s leadership and stockholders without sacrificing customers. So I say…END TYRANNY NOW!

And yet some companies are innovating right now. Here’s a sampling of how some of them are working on the customer experience (and action you can take) TODAY.

1. Take one small step. A client of ours is focusing on their e-commerce strategy. With limited resources, they are making small changes to their e-commerce process to ensure customers have a better, faster checkout process. This has led to improved conversion, cross-sell and up-sell numbers via the web site.

2. Unite! One organization asked us to come in and rally the troops around customer experience. Summer is their big season, so we are helping every person at the organization - from the CEO to the janitorial staff - understand their place within the customer experience. It’s helped them create a common language and improve their own service standards.

3. Focus on the future. One client in a very hard-hit industry is creating a 3-year plan to get ready for the future. Dabbling in new ways to connect with customers, testing theories, and gathering feedback, they’re able to set the stage for success instead of stagnate where they are.

4. Communicate. Many industries have been hit hard, resulting in difficult times for customers and employees. The focus right now for a client in such an industry is on engaging their employees to deliver a superior customer experience. How? By implementing ways to stay connected through dialogue and communication that’s honest, compelling and relevant. They’re asking employees to celebrate each other and their little victories in new ways.  Engagement is up and customers are remaining loyal, even through bad news cycles.

These aren’t costly, cumbersome projects. These are lean and flexible in response to the times we’re in. Anything you can take away here to get started? Let me know.