Author Archives: Shep Hyken

About Shep Hyken

Shep Hyken is a customer service expert, keynote speaker, and New York Times, bestselling business author. For information on The Customer Focus™ customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

The Loyalty Gap

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The Difference Between Repeat Customers and Loyal Customers

The Loyalty Gap

GUEST POST from Shep Hyken

In a recent Shepard Letter, I discussed the Trust Gap, which is the difference between an organization’s belief that their customers trust them and the percentage of customers who actually do. I’ve covered different gap concepts in the past, and it’s time to add yet another to the list, and that is the Loyalty Gap.

By the way, this is a perfect time to mention International Customer Loyalty Month, which happens every year in April. It is a time to focus some extra care and attention on your loyal customers. You can learn more at www.CustomerLoyaltyMonth.com.

So, back to the Loyalty Gap. This is the gap between the percentage of customers you think are loyal and customers who actually are loyal. If you’ve been following my work, you may remember that I preach there is a big difference between a repeat customer and a loyal customer. A customer that comes back again and again could be mistakenly labeled as a loyal customer. Before we can call someone a loyal customer, we must find out why they keep coming back and buying from us. And there are many reasons why customers might return that have nothing to do with being loyal. For example:

1. The Price Is Lowest: Customers who buy based on low price aren’t loyal to you. They are loyal to the price. The moment a competitor has a lower price, the customer disappears. And you thought they were loyal!

2. The Location Is More Convenient: Does the customer buy from you because you are closer than your competition? You don’t know if you don’t ask. As soon as a competitor moves into the area, if their location happens to be more convenient, the customer moves on. Again, you thought they were loyal!

3. The Customer Is Satisfied: This one is super important. There’s a big difference between a satisfied customer and a loyal customer. Satisfied customers are just … satisfied. The experience is good, but not great. It’s enough to get them to come back until they find another brand or organization that satisfies them just a bit more.

A loyal customer not only comes back but also spends more than a typical customer and evangelizes your brand by sharing word-of-mouth referrals. This is because there is an emotional connection. Maybe it’s the way the customer is treated. Or maybe there is an employee the customer loves to work with. Maybe it’s the confidence that’s created when a customer interacts with the brand. There are many reasons, but they all evoke an emotional connection.

So, what’s the Loyalty Gap in your business?

Do you understand your customers’ buying patterns?

Do you know why they come back?

In a perfect world, there shouldn’t be a gap. But that’s not reality. There will always be customers who don’t have the emotional connection needed to drive loyalty. There’s nothing you can do but keep trying. For the rest of your repeat customers, understand why they return, then keep delivering the experience that makes them want to return.

Image Credit: Pexels

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At the Intersection of Innovation Way and Extraordinary Drive

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At the Intersection of Innovation Way and Extraordinary Drive

GUEST POST from Shep Hyken

No matter what business we’re in, our storefront better be located at the intersection of Extraordinary Drive and Innovation Way.

Of course, I am speaking figuratively. But, I’ve literally taken a photo at this real intersection that exists in the middle of High Point University. I am a fan of the university and its leadership. I’ve attended special programs there on several occasions, and every time I go back I’m reminded of its focus on being extraordinary and its innovative approach to education.

We can all learn from HPU. Higher education is a sector that is facing major disruptions from every direction. (Did you think it was just your industry having to find new ways to compete?)

Consider the looming demographic shifts impacting higher ed. According to a CNBC story, undergraduate enrollment is down 9.4% compared to two years ago. Fewer kids going to college in the next few years means a leaner market for universities to fight over. Then there’s all the chatter about whether college is really worth it. Just go to a trade school, a coding boot camp, etc. The headwinds that higher education is facing are stronger than ever.

Yet, HPU has created a distinctive niche in the higher education industry by becoming the Premier Life Skills University. How much of what a student learns in school can really be called life skills? Of course, students must embrace the liberal arts and explore subjects like literature, math, art, history, science and so on. These make us smarter and provide us with more knowledge, but are they translated into life skills? Shouldn’t education go beyond information and theory, and instead prepare us to implement those lessons in real-world scenarios?

What happens when we’re asked to describe ourselves in a job interview? How do we handle ourselves in client meetings and boardrooms? Are we ready for conflict, constant change and complex problem solving? These skills are not typically taught in school, but it’s exactly those abilities in which HPU excels, differentiating it from other colleges and universities.

So, let’s take a lesson from HPU and discover how it has created value for its students (and their parents) and how we can do the same in our businesses and organizations. In short, they’ve done it by living at the intersection of Extraordinary Drive and Innovation Way. Here are a few examples:

When critics of higher education suggest that college isn’t worth it, HPU decides to create extra value by providing every freshman with a professional success coach, equipping its Career Office to deliver an impressive 99% placement rate for recent graduates. It even offers a tuition-free Master’s Degree in Communication and Business Leadership. How are you adding additional value for your clients and customers?

When critics of higher education suggest young people should just learn a trade, HPU’s answer is weaving the “trade” of leadership and life skills into every major. It even has an “In Residence Program” that puts industry leaders in the classroom. Imagine being mentored by founders of companies such as Apple Computer or Netflix. Imagine being coached by the CEO of the Dallas Mavericks or Domino’s Pizza. They, along with dozens of other accomplished executives and leaders, all work with HPU students. So, beyond the fully accredited classroom experience that HPU offers (like every other accredited college in the nation), it has added real-world mentorship to the value equation. What is the lesson for you and me? We better be sure we deliver extraordinary and relevant benefits that add value to our customers’ and clients’ experience.

When critics of higher education suggest just going to a coder boot camp instead of college, HPU reminds families that technical skills aren’t enough when it comes to building a sustainable career. HPU has studied and surveyed employers and proven through its data that life skills are the unshakable foundation for earning and sustaining success no matter our occupation or our age. So, how are you interpreting your value to your clients? Because if you don’t, you are leaving it up to someone else. And that someone else may be your competition!

And beyond the critics who question the value of a college education, there are others who specifically criticize HPU. Success is sweet, but it also comes with competitors and critics putting a target on your back. One of the often-mentioned criticisms is the look of its campus. Really? HPU is proud that almost everyone who sees the campus for the first time says, “Wow!” It’s hard not to be impressed with the manicured campus, the beautiful buildings and the engaging, positive environment that students enjoy. But there’s far more to this university than its good looks. Look beyond the surface and you’ll find some of the most extraordinary and innovative classrooms and programs, such as the $500 million Innovation Corridor filled with cutting-edge labs where research funded by NASA and the National Institutes of Health takes place.

While higher education is in the midst of disruption like most industries, HPU has transformed what a college can do and be, and that by nature draws criticism. But here’s the lesson we can all learn: When your business or organization creates transformational change, it will surely attract criticism. As long as you are rendering value for your clients, then you know you’re doing something right.

We all have critics of our business or industry. And we all have challenges we must overcome. How we succeed or fail is directly related to how we respond to criticism and how we deliver on behalf of our customers. When we make the decision to live at the intersection of Extraordinary Drive and Innovation Way, we have no choice but to keep up our neighborhood and deliver value.

This article originally appeared on Forbes.com

Image Credit: Pexels

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Ten Reasons You Must Deliver Amazing Customer Experiences

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Ten Reasons You Must Deliver Amazing Customer Experiences

GUEST POST from Shep Hyken

Ten years ago, I wrote an article about why delivering an amazing customer service experience is important. While many of those concepts are still valid today, it’s time to modify the list and give a few of the original reasons a facelift to bring them into current times.

First, a reminder that an amazing customer experience isn’t about being over the top. It’s simply consistently meeting or (ever so slightly) exceeding expectations. It’s the consistent and predictable experience that makes customers trust you and come back.

So, here are today’s ten (10) reasons why you should deliver an amazing customer service experience:

  1. Creating customer service builds trust, credibility and confidence. Our customer experience research found that 83% of people trust a company or brand more if it delivers good customer service. The benefit of building trust is potential customer loyalty.

  2. Your happy customers become the best members of your marketing department. The right customer experience gets customers to talk about you, refer you and evangelize your brand.

  3. Delivering an amazing customer experience makes price less relevant. Fifty-eight percent of customers we surveyed said excellent customer service is more important than price.

  4. A great customer experience goes hand-in-hand with a great employee experience. It’s no surprise that the best customer-focused companies are also some of the best places to work. Just compare a list of companies that provide the highest levels of customer satisfaction with the list of the best places to work on www.GlassDoor.com. It’s no coincidence that many of the same companies appear at the top of both lists.

  5. Customers who typically receive excellent customer service from you will be more willing to provide honest feedback when there is a problem or complaint because they trust that you will fix the problem. And when you do, they come back.

    6. Shep Hyken Amazing Cartoon

  6. Seventy-eight percent of the customers we surveyed said they would go out of their way to do business with a company that delivers a better customer service experience.

  7. You can’t afford not to deliver a strong customer service experience. Seventy-four percent of customers would switch to a business that provides better customer service.

  8. A good customer service experience leads to higher customer retention and customer lifetime value (CLV).

  9. An amazing customer service experience begets positive comments and reviews.

  10. Finally, do it because it’s the right thing to do!

If you want customers to do business with you, you must treat them in a way that makes them want to do so. Don’t expect them to be loyal to you until you show loyalty to them. That comes in the form of delivering an amazing customer experience.

This article originally appeared on Hyken.com

Image Credit: Pixabay, Shep Hyken

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How Community is Reshaping the Marketing Landscape

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How Community is Reshaping the Marketing Landscape

GUEST POST from Shep Hyken

According to bestselling author and marketing expert Mark Schaefer, the next—and last—great marketing strategy is community. When I read his latest book, Belonging to the Brand, I was intrigued by the subtitle, Why Community is the Last Great Marketing Strategy. Is it really the last? Having read Schaefer’s past books, I put faith in his words, but it’s up to you to decide.

First, let’s look at the definition of community, as it applies to marketing and business. The community includes customers aligned with the company, its brand promise and what it stands for. Schaefer writes in his introduction, “Helping a person belong to something represents the ultimate marketing achievement. If a customer opts into an engaging, supportive and relevant brand community, we no longer need to lure them into our orbit with ads and SEO, right? What we used to consider marketing is essentially over.”

Schaefer is saying that once the customer is part of the community, the need to engage with intrusive advertising and marketing messages is no longer needed. You will want to find meaningful ways to connect with customers other than traditional advertising and marketing programs, and these can include positive customer experiences, quality dependable products and services, the contribution the brand or company makes to making the world a better place and more.

In my book, The Amazement Revolution, one of the seven strategies covered was community. Harley Davidson was failing and rallied its community of customers to make suggestions that would get them to come back and buy its motorcycles. The company listened, the customers noticed and Harley regained its popularity and iconic status.

Lush, a cosmetics retailer with more than 950 stores worldwide, chose to make its products cruelty-free, which means no animals are harmed in manufacturing the products. They knew this would appeal to a segment of customers who are against animal testing practices. Those customers show intense loyalty toward Lush.

Apple created different communities of customers who voluntarily offer suggestions and answers to other customers in need of help and support. These communities are in addition to Apple’s regular customer support options.

These companies (and many others) have created communities of customers willing to evangelize their brands. They enjoy and love the companies so much that they provide some of the most powerful marketing techniques ever in the form of positive reviews and referrals, also known as word-of-mouth marketing.

Early in Schaefer’s book, he shares ten (10) reasons businesses can’t ignore the power of creating a community. I’ll share three of them with some of my commentary on each one:

  1. Brand Differentiation: Beyond price and product, which are often similar to the competition’s, the community can create an emotional connection. People like to belong to something. When they love a company and its products and find others who think and feel the way they do, they naturally gravitate toward the community. Once people join, they are participating at a higher level of brand engagement and their connection to the business is deepened by this connection.

  2. Market Relevance: How do you stay relevant? Listen to your customers. The community gives you the forum to listen and engage with your customers. The conversations you monitor or participate in will fuel you with ideas to make you even more relevant to your customers. Just remember, no matter how powerful the ideas and information you learn from listening are, they won’t mean anything unless you take action.

  3. Brand Loyalty: Loyalty is an emotional connection. Creating a community is a powerful way to drive loyalty. Schaefer shares some stats that make the case. Sixty-six percent of brand community members say they are loyal to the brand. Twenty-seven percent of customers say belonging to a brand influences their decision to do business with the brand. And, 66% of companies claim their community has impact on customer retention.

As powerful as creating a community is, don’t be lured into thinking you have a captive audience to which you can sell. That’s abusing the privilege and could be an insult to your customers. While members of your community may be more engaged and buy more, they don’t want to be sold. Use the community to offer early access to products and updates, ask for opinions and feedback, help in testing products and more. You want to give them a reason to meet and something to talk about.

So, is creating your company’s community your next big marketing strategy? If you haven’t already created one, it’s a concept worthy of serious consideration.

This article originally appeared on Forbes.com

Image Credit: Pixabay, Shep Hyken

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Top 5 CX Strategies, Objectives, and Challenges

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Top 5 CX Strategies, Objectives, and Challenges

GUEST POST from Shep Hyken

Reuters Events puts on a series of global leadership conferences that focus on key topics & challenges within particular industries, such as pharma, energy, automotive, and more. Their mission is to “offer help in the sectors where it’s needed most, using specialist industry knowledge to promote development.” Their upcoming Conference in San Diego, Customer Service & Experience 2023, caters to service & experience professionals from across industry lines.

I had a chance to interview Josh Wheeler, strategic events director, customer service & experience, to discuss their recent research titled State of Experience and Service Report 2023. In this report are some fascinating findings that we can all learn from. They surveyed 321 global business leaders from various industries. The first big question:

Why should you invest in CX and customer service?

  • 93% of the executives said it’s a key brand differentiator.
  • 86% said it’s the bedrock of profitability.
  • 79% said it’s the foundation of customer loyalty.

More and more, the concept of CX (which includes customer service) is becoming as important – if not more so – as any other important strategic initiative. In a world where most of us have direct competitors who might sell exactly what we sell, the only thing to differentiate us from the competition is the CX we deliver.

With that in mind, here are five of the top objectives, challenges, and strategies from the project’s findings, along with my commentary:

1. The Biggest CX Investment Challenges

You have an idea to improve CX, but you must get buy in from the C-Suite and other stakeholders. It turns out the number one challenge is demonstrating ROI. While we all want happy customers, our leaders are often concerned with the cost to do so. I’ve always preached that CX shouldn’t cost. It should pay. When asking for new technology, more people, training, etc., you must show the return. It must go from a “nice to have” to a “must have” based on the benefits to customers, employees, and the bottom line.

2. The Top Customer-Centric Objectives

The number one objective of the 321 executives surveyed was analyzing and using customer feedback. Often a company will ask for feedback, and they get it. Then what do they do with it? Many times, not enough. Feedback is the best opportunity for improvement. Get it and use it.

3. Two More Customer-Centric Objectives

The second and third most important objectives, improving the quality of the customer support experience, and creating frictionless cross channel experience. Whether you’re making a purchase, gathering information, or reaching out for customer support, quality and ease – as in low or no friction – are important. This is what customers want and expect. Anything less may have them looking elsewhere to do business with a company that is easier and more customer-focused.

4. KPIs Make the Case for Investing in CX

The C-Suite and leadership live and die by met KPIs. When it comes to CX, two tied as most important; CSAT (Customer Satisfaction) score and NPS (Net Promotor Score). Both of these numbers give you similar information. They let you know if your customers are happy (or not). A high score in either of these measurements is like a grade in school. Our leadership is grading us on our CX. Right behind these two are two more that are tied; ROI and Customer Lifetime Value (CLV). Both of these numbers are tied to profitability. We all want to put more money to our bottom line. One way to do so is to increase the CLV. Once we have a customer that loves us, nurture that relationship to keep them loyal. Loyal customers not only keep coming back, they typically spend more than other customers.

5. Focus on the Employee Experience and Not Just the Customer Experience

The executives were asked, “How important is a good employee experience when looking to achieve a world class customer experience?” A staggering 87% said it was important, with more than half of those saying it was extremely important. Brilliant! If you want to have a good customer experience, start with a good employee experience. There’s an old saying that it costs less to keep existing customers than to keep finding new ones. It’s the same with good employees. The cost of hiring and training to replace good people can be a big expense on a company. Give employees a reason to stay, which starts with the culture of the organization. They will work harder, engage better with customers and colleagues, and they will stay.

This article was originally published on Forbes.com.

Image Credit: Pexels

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Rise of the Chief Trust Officer

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Rise of the Chief Trust Officer

GUEST POST from Shep Hyken

Do your customers trust you?

Are you sure?

According to PwC’s 2022 Consumer Intelligence Series Survey on Trust, 87% of executives think customers highly trust their companies, but only about 30% of customers do. That’s a 57% gap!

The PwC survey also found 71% of consumers say they’re unlikely to buy if a company loses their trust, and 71% of employees say they’re likely to leave if they lose trust. The lack of trust can result in huge problems.

Deloitte reports that of more than 260 C-suite executives surveyed, 61% claimed their organizations would work to improve trust with customers and employees. However, just 19% have a leader in the C-suite to oversee the effort, and less than 14% have a way to track trust. Ashley Reichheld, principal and trust leader at Deloitte Consulting LLP, says, “Building trust is among the most powerful ways brands can earn loyalty, drive differentiation and create competitive advantage.”

According to David Horsager, global authority on trust, “A lack of trust is your biggest expense in business.” His research has found that when a leader is untrusted, both employee and customer satisfaction decreases. Conversely, if a brand is trusted, revenue and employee retention increase.

The goal is to narrow the trust gap. Ideally, you want to eliminate the gap altogether. Here are ten ways to make that happen:

  1. Be Transparent – Being open and honest about your policies, delivery times, processes and more builds trust and confidence with your customers. You want them to know you and how you operate.

  2. Do What You Say You Will Do – Deliver on whatever you promise. There are many ways to lose a customer’s trust, but the fastest may be to break a promise. In short, a broken promise is a lie.

  3. Provide Excellent Customer Service – Our customer experience research found that 84% of consumers trust a company or brand more if it provides an excellent customer service experience.

  4. Protect Your Customer’s Privacy – Data protection is a hot topic. With all the data breaches, customers need to know you make a great effort to protect any information they share with you.

  5. Don’t Abuse Your Customer’s Data – This goes right along with protecting your customer’s privacy. If they are willing to give you information about themselves, even if it is just payment information and an email address, don’t abuse it by spamming the customer or selling the information to others.

  6. Be Reliable – A customer expects that what they buy from a company does what it is supposed to do. Products must be reliable and dependable. In addition, they also expect the company to stand behind what it sells with the right level of customer service.

  7. Fast Response – Customers have different tolerances for how long they will wait on hold, wait for a return phone call, an email response, etc. When it comes to customer service, fast means meeting a customer’s expectations.

  8. Be Accessible – Start with being easy to reach. Easy-to-find contact information on a website is important. Hours of operation, at least for customer service, must also meet your customer’s needs and expectations.

  9. Act on Customer Feedback – It’s one thing to gather feedback. It’s another to act on it. And once you act on the feedback, let the customers know they were heard. Always thank customers for their feedback, and follow up if it is appropriate to do so.

Create a Chief Trust Officer Role (or Something Similar) – This goes back to the finding from Deloitte at the beginning of this article. Just 19% of companies have a leader in the C-suite to oversee the effort of creating trust with customers.

Now that we understand more about the importance of trust, we might say those companies with a dedicated “trust officer” are a step ahead, taking advantage of a somewhat overlooked aspect of customer service. Seems like a great opportunity for any company to step up and focus on building trust—and the business that is sure to follow.

This article was originally published on Forbes.com.

Image Credit: Pixabay

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Radical Transparency is One Key to a Better Customer Experience

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Radical Transparency is One Key to a Better Customer Experience

GUEST POST from Shep Hyken

Most customer-focused businesses work very hard to streamline their encounters and interactions with potential clients, curating the experience to the smallest detail so every step of the process can be managed and controlled. It all starts with a customer journey map that optimizes the process. When the process is consistent and predictable, you start to build trust with your customers. And, there’s a way to take that trust to another level, and that’s with transparency.

Darryl “The Hammer” Isaacs, a Kentucky-based attorney, has built a profitable career by being surprisingly straightforward — another word for transparent — with his clients. He has the process down, which means he knows the law and how to litigate. But just as important as winning a lawsuit is how his clients are treated.

Since it opened in 1993, his firm, Isaacs & Isaacs Personal Injury Lawyers, has helped thousands of people recover over $2 billion from insurers. He is a celebrity in the three states where he operates (Kentucky, Indiana and Ohio), with plenty of TV ads and billboards lining the highways. But Isaacs will tell you that his secret goes beyond exposure from a big ad budget. And it isn’t about knowing the law and winning. For him, it’s just as important to build a reputation by being transparent. And he takes the concept to an even higher level by being radically transparent.

I had a chance to learn from Isaacs’ success and his thought process, which he says is based on three concepts: being humble and embracing adversity, providing easy access and trusting the public with your pain.

1. Embrace Humble Beginnings and Adversity

Isaacs’ journey to becoming a lawyer wasn’t easy. It began at age six when he watched his father’s legal swearing-in ceremony. That inspired him to want to practice law, but inspiration wasn’t enough. He failed the bar exam the first two times he took it. No one would blame Isaacs for keeping that information from the public. After all, in the competitive legal field, lawyers like to let clients know about their prestigious law schools, industry awards and big wins. Isaacs recognized the importance of that, but also chose to embrace his “humble beginnings” as a possible advantage. He believed people could relate to his struggle. This transparency makes him real and approachable to his clients. He also has an incredible work ethic. Isaacs says, “I’m not smarter than other lawyers, I just work harder.” His clients may not know about the legal world’s awards and top schools, but they understand and appreciate hard work.

2. Provide Unexpected Access

Have you ever tried to reach the CEO or owner of a successful company? Typically, the bigger and more prosperous the company, the more challenging it is to get through to the business owner or high-level execs. Isaacs is not only successful, but his advertisements and reputation have given him celebrity status in his market. His firm has more than 55 employees, many of whom could act as a “first line” of defense for deflecting calls, emails, letters, etc. But Isaacs embraces the concept of approachability. He happily shares his direct line and cell number with his clients. Text him, and he responds. Call him, and he returns the call. Isaac believes, “If you provide unexpected direct access, clients feel valued and appreciated.”

3. Trust the Public with Your Pain

Similar to the way Isaacs embraces his humble beginnings, he embraces the transparency of results. In an age of social media, it’s nearly impossible to hide any negative news affecting a high-profile business. Issacs says, “The best option is to get comfortable and let the public in.” In other words, embrace the negative and view it as an opportunity to be authentic and transparent. And it goes beyond social media reviews and comments. Isaacs took this concept to a personal level in 2015 when he was hit by a speeding car while riding his bicycle. His neck was broken in two places, and he sustained a traumatic brain injury. The face of a successful company was now in the hospital in a near-death situation. That could have been the beginning of the end for the firm. He might not ever be back. And what if people found out about this? Well, rather than try to keep the news out of the press, Isaacs did a phone interview from the hospital. First, he wanted to let the world know he wasn’t dead and would be back. Second, he was now experiencing a similar condition to many of his clients. Isaacs knew transparency—and even vulnerability—at this level would make him more approachable. The result was an even higher level of trust.

Isaacs uses the word radical, meaning extreme or intense, to demonstrate just how important it is for him and his firm to be transparent. But are his three concepts really that radical or extreme? Maybe, because customers aren’t used to this level of transparency, but isn’t this what customers want? Isaacs’ three concepts could easily form a foundation of transparency that would help any company or brand, big or small, build trust, create confidence and connect emotionally with customers.

This article was originally published on Forbes.com.

Image Credit: Shep Hyken

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How to Turn Customers into Superfans

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How to Turn Customers into Superfans

GUEST POST from Shep Hyken

What do Apple, Zappos, and Chick-fil-A have in common? They are considered “rockstar” brands. Their loyal customers—and they have many—keep coming back and evangelizing these brands, singing their praises to the world. The customers are also willing to defend their favorite brand should someone say something negative about it.

There is a word to describe these types of customers. They are fans, and more specifically, they are superfans. Brittany Hodak may be the foremost expert on the concept of creating superfans in business. In her recently published book, Creating Superfans: How to Turn Your Customers Into Lifelong Advocates, she defines a superfan as “a customer or stakeholder who is so delighted by their experience with a brand, product or service that they become an enthusiastic advocate.”

Hodak’s mantra is:

If your customers aren’t telling their friends about you, you’re in trouble.

So, how do you get your customers to come back, defend your reputation, and spread compliments about you? Follow Hodak’s SUPER model. The word SUPER is an acronym. To whet your appetite for this important literary contribution to the world of customer experience, I’ll share what each letter of the acronym means, followed by my commentary. Some of this is my own interpretation of Hodak’s model, but you will get the idea. So, here is Brittany Hodak’s SUPER model:

  • S – Start With Your Story: Sharing your “story” is powerful. Just make sure it’s the story that will get your customer excited about doing business with you. How should it start? Ask yourself, “Why does a customer want to do business with us (instead of our competition)?” Responses that are truly different will be important to the story. Hodak says, “Your story is your superpower.”

  • U – Understand Your Customer’s Story: Why do customers need you? The answer is their story, and when their story intersects with yours, you have the opportunity to do business, grow the relationship and create a superfan.

  • P – Personalize: The concept of personalizing the experience is a hot topic. Using data about the customer (in the right way) will create a connection. Abuse the data, and the customer will disassociate from you. Hodak uses Chewy, the online pet food, and supply retailer. The company not only know its customers’ buying habits but also often knows their pets’ names—and they use that information to create a better relationship and emotional connection with the customers. This is an excellent example of personalization.

  • E – Exceed Expectations: People often think exceeding expectations is difficult. The reason is because they confuse exceeding expectations with going above and beyond. There are opportunities to do that in special situations, but most of the time, you just need to be a little better than expected. Even the slightest bit better. When you’re at a restaurant, and you are told the wait will be ten minutes, but your name is called in eight minutes, that’s an example of exceeding expectations by being slightly better than expected. The key is to do this consistently. You want your customers to use the word always followed by something positive, such as, “They are always helpful,” to describe their experience with you.

  • R – Repeat: I love the idea of repeat. Create the system with an outcome that drives a positive customer experience every time. The key word here is system. A system can be scaled and is repeatable. It is consistent, and customers love consistency. If the initial experience was good, the next time they come back, they want more of the same. When it happens again and again, the customer “owns” the experience. They can count on it happening. Their confidence about the experience is so high they not only come back, but they also tell others. Creating superfans is an everyday, never-ending effort. Do what works again and again.

Okay, I admit it. I’m a Brittany Hodak superfan. I fall under the category of evangelizing her brand, and recommending her to clients, and now I’m writing about her book. I’m a perfect example of one of the ways Hodak describes a superfan, which is a great way to wrap up this article:

Superfans are customers who create more customers!

This article was originally published on Forbes.com.

Image Credit: Shep Hyken

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Frontier Airlines Ends Human-to-Human Customer Service

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Frontier Airlines Ends Human-to-Human Customer Service

GUEST POST from Shep Hyken

In a bold move to cut costs, Frontier Airlines announced that it would no longer offer human-to-human customer support. As a customer service expert, I was surprised at this move. I have waited to see the fallout, if any, and thought the company might backpedal and reinstate traditional phone support. After almost two months, it hasn’t returned to conventional customer support. The dust has settled a bit, and people (passengers and employees) are adjusting to the decision.

The decision to go digital is different from the decision Northwest Airlines (which eventually merged with Delta) made in 1999 to introduce online check-in to its passengers. The idea behind that technology, and eventually the technology driving online reservations, was to give the customer a better and more convenient experience while at the same time increasing efficiency. The big difference in that decision versus Frontier’s was that there has always been (and still is) an option to connect to a live agent. If passengers didn’t want to use the self-service tools the airline provided, they could still talk to someone who could help them.

That does not appear to be the case with Frontier. There is no other option. The airline is relying on digital support. If you check the website for ways to contact them outside of their self-service options on the site or mobile app, you can use chat, email or file a formal written complaint. Chat is in the moment, and can deliver a good experience—even if it’s AI doing the chatting (and not a human). Email or a written complaint could take too long to resolve an immediate problem, such as rebooking a flight for any last-minute reason.

For some background, Frontier Airlines is a low-cost carrier based in Denver. It has plenty of competition, and when you combine that with rising expenses in almost every area of business and a tough economy, Frontier, just like any other company in almost any industry, is looking to cut costs. In a recent Forbes article, I shared the prediction that some companies will make the mistake of cutting expenses in the wrong places. Those “wrong places” are anywhere the customer will notice. Cutting off phone support to a live human, just one of Frontier’s cost-cutting strategies, is one of those places the customer may notice first.

If a customer wants to change or cancel a flight, make a lost-luggage claim and more, if they have the information they need on hand and the system is intuitive and easy to navigate, the experience could be better than waiting on hold for a live agent. Our customer service research found that 71% of customers are willing to use self-service options. That said, the phone is still the No. 1 channel customers prefer to use when they have a problem, question or complaint.

Frontier’s decision to stop human-to-human customer support has generated controversy and criticism from customers/passengers and employees. The company’s management defends its decision, stating that they need to cut costs to remain competitive. They claim you can eventually reach a human, but their passengers will first have to exhaust the digital options. While self-service automated customer support may help the airline cut costs and increase efficiency, it obviously frustrates customers and negatively impacts employees.

The big concern is that 100% digital or self-service support is still too new. We are still a long way from technology completely replacing the human-to-human interactions we’re used to in the customer service and support worlds. Efficiency is important, but so is the relationship you maintain with your customers and employees. It takes a balance. The best companies figure this out.

Consider this: Video did not kill the radio star. ATMs were predicted to eliminate the need for bank tellers. And for the foreseeable future, technology will not kill live, human-to-human interactions. Frontier customers looking to save money will be forced to adapt to its new way of customer service. Knowing this upfront will help. But also consider this, something I’ve been preaching for several years: The greatest technology in the world hasn’t replaced the ultimate relationship-building tool between a customer and a business, and that is the human touch.

This article was originally published on Forbes.com.

Image Credit: Pixabay

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Today’s Customer Wants to Go Fast

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Today's Customer Wants to Go Fast

GUEST POST from Shep Hyken

Customers don’t want to wait. Specifically, they don’t want you to waste their time. If you do make them wait, you risk losing them. Making your customers wait sends the message that you don’t respect them or their time.

Jay Baer, a customer experience and marketing expert, proves this in his latest study, The Time to Win, which measures the impact of speed and responsiveness on customer experience and loyalty.

Just how important is speed? Consider these findings from Baer’s report:

  • Two-thirds of customers say speed is as important as price.

  • More than half of the customers surveyed hired the first business to respond to their requests, even if it was more expensive.

  • Half of all customers will not wait more than three minutes in a store.

I had a chance to interview Baer on Amazing Business Radio, where he shared some important insights that should be considered. Here are six of my favorites, followed by my commentary:

  • Speed is the most important component of customer experience and the only one that never pauses or goes backward – Calling it the most important component of the customer experience is bold, but consider a key finding from the report: 50% of customers are less likely to spend money with a business that takes longer to respond than they expect. Baer says, “Customers’ expectations for speed and responsiveness escalate every year without fail.”

  • Everyone has the same amount of time, 1,440 minutes a day, and there is nothing we can do to get more – Time is the same for everyone. Nobody gets more than anyone else. It has nothing to do with being rich, poor, young or old. And once it’s gone, you can’t get it back. Starting with that premise, business leaders should ask themselves, “What can we do to make sure we’re not to blame for wasting our customers’ time?”

  • Age makes a difference – In our interview, I was surprised when Baer shared the generations that were most and least patient. I would have thought Baby Boomers (the older generation) would have been more patient, but I was wrong. Gen-Z is the most patient generation. Boomers are the least patient. The point is to know your customers. Who do you cater to? Understand the demographics and improve your response time accordingly.

  • The first company that responds to a customer has an incredible advantage – If your company is the first to respond, you could win the customer’s business, regardless of price. Specifically, 53% of consumers hired the first business that responded to them. Customers want to make decisions and move on. If you give them what they want, they can skip the hassle and time of comparing all the competition.

  • Fast response impacts your bottom line – Just as customer service and convenience make price less relevant, so does quick response or fast service. The research found that customers would pay an average of 19% more for “always immediate service,” which includes no waiting in line, not waiting on hold, etc. In other words, customers put a premium on speed. It’s about convenience. Furthermore, 27% of customers are more likely to spend money when the brand responds faster than expected.

  • Right now is not really right now – As customers’ expectations and their need for speed increase, the concept of “right now” can seem daunting. According to Baer, the concept of “right now” is the optimal amount of elapsed time in every customer interaction throughout the entire customer journey. If that sounds technical, here’s a simpler way of putting it: “Right now” is simply slightly faster than the customer expected.

With only 1,440 minutes available each day, customers want to devote as few minutes as possible to waiting, as Baer’s research proves. This is so important that people will pay more for it. The security lines in airports are perfect examples of this. If you’ve taken a flight in a major U.S. airport, you’ll notice three lines to get through security. The TSA security line is for most passengers. This is free. Then there is TSA PreCheck. For a small investment of $78 (which covers you for five years), you can get pre-qualified to use a shorter line where you don’t have to take your computer out of your bag, take off your shoes, and more. And for a bit more money, you can sign up for CLEAR, which allows you to jump to the front of the TSA lines.

Baer’s research makes an important point. If you want a competitive edge in business, respect your customer’s time. Don’t make them wait. Respond quickly to their questions, requests, and problems. Find ways to incorporate speed into your customer experience and you’ll reap the benefits of returning customers who spend more and say, “I’ll be back!”

This article was originally published on Forbes.com.

Image Credit: Wikimedia Commons

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