Listening to Customers

•  Customers don’t notice messages.  So communicate often and use a variety of approaches.

• Customers can be annoyed by messages – there are too many/not enough, they are too flashy/not flashy enough, they are useful/wasteful … you get the picture.  Spend time planning/testing so your messages will be on target with your audience.

• Develop a consistent ongoing communication approach with customers so they are more alert to your messages and more likely to pay attention.  Focus on a long-term dialog, not just a one-time dazzle.

• Communication is often an after-thought and does not receive the kind of resources given to our product and service offerings.  Make sure that communication is an integral part of your customer engagement process, and make the most of the puny budget.

Recently when traveling by air I had an experience which made me wonder to what degree do airlines really listen to their customers.

We had been served our drink and the flight attendants were coming back down the aisle, asking if anyone wanted something else? This is obviously more than what often happens. When I handed my empty cup to the attendant asking whether she could take that from me, her response was, I don't have a place for it right now! That was it!

When did this airline last look at identifying customer needs and expectations, and seeing how they are currently meeting them, and/or how they might be able to adjust to better meet them. This has to go further than customer satisfaction surveys. It requires intense customer listening in order to tease out what aspects could make the relationship 'outstanding'. In this example, yes, the cart is small, but there was a section at the bottom that was empty.....could that have been used to collect used glasses? Or what about a plastic bag that is hooked to the cart. At the very least, the response should have been I don't have a place for it right now, but I will return shortly to collect!

 Pamela Toft
Walker Information

Walker's bi-annual Fall Forum is in full swing -- today, we explored several potentially powerful ways of using customer feedback to make a real impact on the business.  As just one example: have you ever really thought about how customer information could help inform an Aqcuisition decision?   

One forum attendee confided during a break: the number of applications and potential audiences for customer information is overwhelming, especially in my current company culture... I don't know where to start!   I'm sure you can relate to feeling that way at one time or another, and we all know what usually happens next too:  Nothing.  No action.  No change.  

Perhaps it's human nature to ignore all of those bright ideas we had and chug along status-quo when we cannot quickly find a simple and meaningful place to start.  

So where do we start?  One way would be to develop a roadmap - whether formal or informal.  I like to keep informal 'roadmap' ideas on my internal team wiki space, for instance.  Another good way is to ask for help from someone who has done it before.  What approaches have you found to be effective? 

Krista Roseberry
Senior Analyst
Walker Information
 

1. Thank your customer for the time they spent providing feedback and acknowledge its importance to you
2. Clarify and try to learn more about the issues that you’ve learned about from the customer’s perspective
3. Let your customer talk uninterrupted.  Really listening will defuse the situation and demonstrate your desire to address their concerns.
4. Talk about your suggested resolution.  This is also a chance for you to educate them on any misunderstandings or miscommunications that may have occurred.
5. Confirm the next steps and the timing for resolving their top concerns.
    

I have had the chance to talk with several companies over the last week about their overall customer measurement strategies.  While there is always good conversation about the goals, best techniques, and desired outcomes, there was a new tone that I was hearing. 

“Will the customer enjoy taking the survey?” 

“Will the customer feel like the survey is focused on them?” 

“Will our communication and approach make the customer trust us enough to give us some meaningful feedback?”

We know the goal of a customer survey is to learn how we can improve the customer experience.  What are we doing wrong?  What are we doing right?  Of course we care about the customer, or we would not be making the investment to do the survey.

But we do not always talk about the customer’s feelings while they are taking the survey.  Are the questions focused on what matters to the customer or what matters to us to better take care of the customer?  Do we ask about the steps of making a return (our viewpoint) or whether the return was handled easily (customer’s viewpoint)?  Do we show enough empathy that at the end of the survey the customer will take an extra minute and write us a note about something that has been bothering them, so we have a chance to get better?

I admit, I am guilty of not always giving this enough thought.  On the next survey, I am going to think about ways I can listen to the customer in a little different way, and hope that encourages them to give a little better feedback.

Chris Sego, Vice President
 

I love when I get great service, don’t you?  

All of us have many opportunities to experience service in our daily activities as business professionals and consumers.
 

As a follow-up to that service experience,
many times I’m asked to complete a short

survey to provide feedback. 
I’m happy to oblige.  

Here are some examples, which I’m
sure you might be familiar with:

- Booking a flight on a Web site. A short survey pops up to get my thoughts  
on functionality and design of their Web site, ease of navigation, speed of pagination, organization, etc.

- Taking my car in for service. An evaluation card is left on the front passenger seat for me to assess the overall service received, the convenience and time taken to book the service, the cleanliness of my car when I pick it up, etc.

- Dining at a restaurant. A code to a survey is included on my receipt for me to complete an on-line survey about my dining experience, i.e. wait time for a table, my waiter, wait time until the food arrives, quality of my meal, etc.

These are but a few of the examples where companies seek the voice of the customer to make our experiences more pleasurable. I’m sure you been asked for your feedback in these or similar situations. 

I must admit, I have become used to receiving great experiences when I shop, dine, or do business.  It brightens my day.  Moreover, I want to continue to receive great experiences.  Providing feedback takes but a small amount of effort to help companies create more value as they listen to us, their customer! 
 

I commend these businesses for taking the time to obtain the voice of the customer, monitor the service they are providing, and make adjustments as needed – all with the desire to provide us a better service experience. They’ve not only earned my business, but they are building a repeat and loyal customer! 

How about you? Have you seen a connection in providing feedback and an improvement in one of your service experiences?  

We all know about the role of positive word-of-mouth advertising (WOMA) and its impact on influencing prospective buyers. In the past this has largely come through friends and colleagues. More recently, grass-root organizations have sprung up as the ‘go-to’ site for prospective purchasers, for example of home services, such as Angie's List. More and more prospective shoppers are surfing the Web to look at others’ evaluations of products and services that they are in the market for. Shopping sites, such as Amazon support this by asking for and providing reviews of products by those customers who have purchased.

I think the world is amazed at the role of social networking in initiating and sustaining the uprising in Iran following the recent election. As expressed by Daniel Nations in About.com , "If there were any doubts just how important a role social media was playing in today's society, those doubts were quelched in the aftermath of Iran's election."

Do we have any idea of how impactful social networks are going to be in the future in terms of marketing of products – both being for them as well as against? Are these social networks going to make customer loyalty more volatile?  Some savvy organizations are both participating in social networks, as well as incorporating them into their customer loyalty research and overall customer relationship strategy.

Pamela Toft, Ph.D.
Vice President
Walker Information

I am part of a book club, and this week's discussion was about Groundswell by Charlene Li and Josh Bernoff.  It is a good read about the innovative ways companies are using social media to engage customers and employees to enhance their businesses.  One topic in our discussion was the comfort level that Gen Yers have with all of the social media and the impact this is going to have on the business world.
 

As has always been the case, the “new generation” will bring many fresh ideas to the work place – which is all good.  However, as I think about customer measurement and putting the customer first I think there are a few things they can also learn from us “oldies.”  Consider these recent adventures I have had:
 

• Tuesday night, softball game of 14-year old girls.  A high fly goes to center field.  The fielder runs wildly around with mitt in air, the ball hits the ground, and the fielder just stands there staring at it while the hitter zips around the bases.  I am shrieking, “throw the ball in.”  But guess what many other parents are saying? “Oh, that is OK.”  I can’t tell you how many times that is said at kid's sporting events these days.  Gosh, we would hate to  say anything critical to our precious children.  In 10 years, when they mess up a work assignment, is the customer going to say, “Oh, that is OK.” Certainly not.
 

• Thursday evening, Abercrombie and Fitch, low light, loud music, overpowering perfume (yeah, I’m with the same 14-year-old). We are greeted dozens of times by the many flawless, well-clothed, chirpy young people that man the store.  Until we are ready to try on clothes.  We go to the locked dressing room with arms of over-priced clothes and there is no one to be found to let us in.  We look around, we walk from room to room, and 5 minutes later stumble across a clerk.  They say, kind of puzzled, “Oh you want to try those on???”  Duh.  After trying them on, we wait another 5 minutes at the empty checkout counter.  These young people are the future of our world, and they don’t have a clue of how to serve customers.
 

• Sunday afternoon, local grocery store.  The bag boy is carrying on a very important conversation with a friend.  Every couple of minutes he remembers where he is, looks my way, and puts an item in the bag.  By the end he has asked me 6 times “how are you doing” without listening to my answer, used plastic bags when I asked for paper, and put the hamburger buns at the bottom of the bag.  Not sure about you, but my customers would not settle for this inattention or mediocrity.
 

There are some interesting times ahead as the different generations integrate the best of both worlds into the workforce of the future.  But I think one thing will stay the same – when I am a customer and paying for a service, I am going to want attentive, accurate, and competent service.
 

Chris Sego
Vice President, Client Services

Lost customers really are an interesting bunch.  Last week, I finished a lost and declining customer study for a major, global educational program and it spurred some interesting takeaways…
 

1. Essential segmentation

Results from this study took on greater meaning when we looked at the characteristics of students and educational facilities that have churned, and why.  For instance, we found that students and instructors in a couple of countries were facing extreme economic and political forces (and I mean extreme: unemployment rates in the 40-50% range, and governmental bodies that strictly regulate educational curricula). 
 

2. Competitive intelligence

Did they stop purchasing, in general, or did they go somewhere else?  If you tie together why they are leaving you and where they are going, you can draw out additional competitive intel for your marketing and sales teams.
Often, lapsed customers will be happy to tell you what it takes to get them to come back, too.  Recently, another client tested different incentive ideas so they could find out which ones were most attractive to each segment of lost/declining customers.
 

3. Double-check your retention metrics

This was a new twist for me over the last few weeks.  We found a sizeable share of customers who were still using educational services from the company... they just weren’t registering their activity!  Revving up the value proposition for registration will improve their retention metrics and also help ensure that all their marketing and communication efforts are reaching their true customer base.
 
 

Are you a good listener?

In business, and in life, much of our success is determined by how well we listen. Our best relationships are built on effective listening. Are you an active and engaged listener? All of us would like to think so.  Have you stopped yourself lately and asked, "How well do I listen"? Are you interested in finding out? 

I came across a listening quiz, offered by Chris Witt of Witt Communications, in San Diego California.  The quiz is at:

http://www.wittcom.com/listening_quiz.htm

I encourage to you take this short quiz (12 questions) and determine whether you are:

1) A Skilled Listener 

2) An Average Listener

3) Or, if you need help.

Being a skilled listener is often hard to do.  We all have busy lives with long to-do lists that create distraction.  Taking an assessment is a great way to see if listening is an area you need to work on.  Effective listening skills will take you a long way in life whether in business with your customers, employees, and associates, or in life with your family and friends, or frankly anyone with whom you come into contact.

If you tested well, congratulations!  If you didn't test well, start today to improve your listening skills to positively impact all that you come in contact with; you (and the person you are communicating with) will be glad you did.

Jane Gehlhausen
Vice President

• When might a decline in retailer customer count and spend reflect variability in unemployment rates across the US, rather than be the result of diminished customer loyalty? Geography is not usually the first variable that is looked at when doing customer segmentation in customer loyalty research.  However, with the downturn in the economy, there is much to be learned that can help explain changes in customer counts. 
   
• Unemployment statistics released today by the Bureau of Labor Statistics, Regional and State Employment and Unemployment, April 2009, provide insights.
  • It is likely that Retail will experience further softening, especially with customers in populous states with the highest number of unemployed, namely California, Florida, Ohio and Illinois.
  • However, there is more opportunity to attract and retain new customers among populous states that have not been as hard hit by the recession, such as Texas, Pennsylvania, and New York, and smaller states that have fared well throughout this recession, namely North Dakota, South Dakota, Nebraska, and Wyoming (all with unemployment rates below 5%).
     

Whenever you talk about customer surveys, there are two hot topics that come up.  The first is figuring out how to get an organization to use the results.  Customer surveys have been around a while now, but companies continue to wrestle with this issue.  How do we get our staff to act on the information?  How do we use the information to better engage our customers?  How do we use the survey as a one way to develop a meaningful dialog with customers?
 

Alas, the other topic is a lot less sexy.  How do we get as many customers as possible to respond to our survey, so we have reliable information?  In this environment of web surveys, when it is so easy to overlook/delete yet another e-mail, how do we make it a priority for a customer to notice, open, and complete our survey?
 

Here’s the double whammy – there is a solution that addresses both of these topics.  This week I saw a report that showed that response rates were rising (a strange concept) for companies that had better customer engagement strategies. These companies did things like made sure they selected the right customers and had accurate e-mails … they used pre-notification so customers would know the purpose of the survey and how their feedback would be used to improve their customer experience … they thanked customers for participating … they let the customers know what had been learned and the actions taken due to customer feedback. 
 

In short, they used the survey as just another way to engage customers in an ongoing dialog.  Apparently the customers liked the idea, because more and more of them chose to open the e-mail and join in the dialog.  And they scored a double whammy – customers are even more connected than before and that boring customer response rate issue took care of itself.  
 

LISTEN. The Encarta Dictionary defines the word listen as: to concentrate on hearing somebody or something. 

How well do you listen?  Great listening skills are an important quality for each of us.  In business, the effort you take in listening will have a direct impact on the success of your own career as well as the overall success of your company. 

How well do you listen to your customers?  In business, customers are king.  Without them, well you know … there would be no business.  Are you talking and listening to your customers? You will be amazed at the incredible insights they will provide which will directly impact your company’s success.   Perhaps you already have a mechanism for gathering customer feedback.  Or, perhaps you are just now getting input from your customers for the very first time.  Either way, as you embark to get customer feedback, make sure you are really listening.  I offer a few principles to improve your listening using the acronym of L.I.S.T.E.N.

L. Learn – Do you love to learn? Most of us do.  It’s not hard to argue that active listening equals learning.  Listening to your customers provides the opportunity to learn about their needs, issues, and wants.  In business, you don’t need to figure out all the answers.  By listening to your customers you will be amazed at what you will discover from them that will help you. Listen and learn.

I. Involve – When was the last time you had a meaningful conversation with a customer?  Don’t be afraid to ask how things are going, what issues keep them up at night, as well as, what are their immediate needs and challenges.  Incorporate customer feedback as part of your business strategy.  Involve your customers.

S. Seek – Change the way you listen.  Steven R. Covey coined a famous quote “Seek first to understand, then to be understood. Most people listen, not with the intent to understand, but with the intent to reply.” Does this message apply to you?  Change the way you listen. Seek to understand.

T. Trust - Trust is essential to maintain a positive and open partnership.  Maintaining confidentiality, respect and an open-mind are all key aspects to improving conversation. Build trust.

E. Engage – Listen with enthusiasm.  In your conversations, be sure there is a connection in the conversation.  Are you relating to them and what they are saying?   It’s easy to distinguish between passive listening and engaged listening.  Be engaged.

N. Notice – Listen both verbally and non-verbally.  Notice, what are they saying and what they are not saying.  Pay attention to important non-verbal cues to get the full understanding.  Fully notice.

Next time you have the opportunity to listen to your customers, I urge you to consider these six principles.  You might find yourself really hearing your customers for the very first time.   

Jane Gehlhausen

Vice President

Sometimes building customer loyalty is interrupted by external factors, such as the recent economic downturn that has resulted in job loss. In attempting to interpret what is going on with consumers it is helpful to look at job loss statistics by both gender and age groups. If there has been some decline in consumer spending, is it because the targeted consumer falls into a gender or age bracket that has been more impacted by the economic slowdown? This type of data is difficult to get from customer survey research.

Analyzing the loss in employment statistics available on www.bls.gov from March 2008 to March 2009 there are 3 findings that help our understanding of what could be going on with consumer spending, as well as where retailers may need to refine their current customer segmentation approaches. 

1.       The only age group where that has been a net gain in employment is the 55+ category.
 

2.        Males have been more impacted by job loss than Females. As seen in the adjacent pie chart, almost three-quarters of the job loss among age groups 18-54 have been among Males.

 

3.  As illustrated on the bar graph below, for both Males and Females the age group most impacted by job loss are 35-44 year-olds. However, whereas for Males this group represents 34% of those who have lost their job in the past year, it jumps to 55% for Females.

 Pamela Toft, Ph.D.
Vice President Client Services

1. Establishing Account Manager buy-in early on in the process
2. Leveraging Account Manager relationships to encourage customer participation (for more ideas on how to increase customer response go to http://blog.walkerinfo.com/blog/walker-information-blog/0/0/whats-lurking-in-your-customer-feedback)
3. Preparing Account Managers to receive the information and act upon individual customer feedback – (http://blog.walkerinfo.com/blog/turning-feedback-into-action has more ideas for taking action)