GUEST POST from Shep Hyken

Last week, I introduced you to The Customer Hierarchy of Needs based on Maslow’s Hierarchy of Needs. This week, we focus on our employees. Before you can have a strong customer experience, you must have a good employee experience. So, here are the five levels of the pyramid that make up The Employee Hierarchy of Needs:

1. 1. The Paycheck: At the base of the pyramid is an employee’s primary need: money. Money is generally the reason people go to work. Without money, employees can’t pay their rent or mortgage, put food on the dinner table, send their kids to college, and more. And often, money is just part of the compensation. Other benefits include insurance, retirement contributions, and other less tangible, yet still important, reasons related to the paycheck.
   2. Alignment with Beliefs and Vision (The Culture): While money may be a basic need, the culture of the organization must meet the employee’s needs and what they value. This motivates them to come to work and helps keep them employed with you. Employees want to feel excited about going to work.
   3. Uniqueness: This is often an overlooked opportunity. One way to get more engagement and productivity out of employees is to recognize and appreciate their individuality and make it part of their jobs. For example, an employee may speak a foreign language. If one of your customers speaks the same language, doesn’t it make sense to let that employee talk to the customer? Whatever skill or talent the employee has, find a way to incorporate it into their job, even if just for a small percentage of the time.

1. Growth Opportunities: Most employees want to advance their careers. They want to know there will be opportunities to grow, learn, and feel better about themselves. Early in the interview process, there should be discussions about opportunities to grow.
2. Fulfillment: At the tip of the pyramid model is fulfillment. When employees are fulfilled, it usually means they love their job, who they work with, and even their boss. This corresponds to Emotional Connection on the Customer Hierarchy of Needs. Other words to describe fulfillment include satisfaction, happiness, and completeness – all emotions that potentially drive employee loyalty.

Nobody wants to work in a place that doesn’t emotionally fulfill them. Employees may tolerate a work environment that doesn’t meet their needs beyond a paycheck, but there is little incentive to stay when something better comes along. If you want to create a powerful and positive customer experience, work on the employee experience. Remember, what’s happening inside the organization with employees is felt on the outside by the customer.

Image Credits: Wikimedia Commons

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The Zero Consumer Revolution

GUEST POST from Shep Hyken

There’s a new type of customer in town, and you need to know and understand them. McKinsey has coined the term Zero Consumer, defined as a consumer who shops across different channels, expects excellent service (including fast shipping) and sustainable products. But even if you provide all of that, there’s one more critical thing to know—they show little loyalty.

For 40 years, I’ve preached the famous concept from Harvard Business School professor emeritus and former editor of Harvard Business Review, Dr. Theodore (Ted) Levitt, that the function of a business is to get and keep customers. Furthermore, research from many reputable sources tells us that it’s less costly to maintain and keep customers than to keep finding new ones. However, this new customer, the Zero Consumer, can make the second part of Dr. Levitt’s function (keeping customers) more challenging.

In addition to that, Dr. Levitt is also known for stating that “companies should stop defining themselves by what they produce and instead reorient themselves toward customer needs.” This is further explained in his article, What Business Are You In?: Classic Advice from Theodore Levitt. I love his example about gasoline.

In this article, Levitt states, “Let’s start at the beginning: the customer.” He uses the example that a consumer driving a car “strongly” dislikes the experience of buying gasoline. He said, “People actually do not buy gasoline. They cannot see it, taste it, feel it, appreciate or really test it. What they buy is the right to continue driving their cars.” He refers to a gas station as a tax collector that is paid a “periodic toll” as the price of customers using their cars.

My take on this is that the gas station is a commodity. People buy from a specific gas station out of convenience, including location (proximity to the customer’s home or place of work) and ease of entrance and egress (e.g., the gas station is on the right side of a busy street). Price is also a consideration. It seems gasoline is gasoline, regardless of where you buy it.

This ties into the McKinsey Zero Consumer concept. The majority of Zero Consumers seem to be Gen-Z and Millennials. Here are some general characteristics of this new group of consumers:

• Zero Consumers have zero boundaries in that they are influenced by social media, celebrities and content (articles, blogs, videos, etc.). They expect omnichannel options and move through different buying channels to make purchases. In other words, be prepared to sell to them when they are ready and on whatever channel is most convenient to them: in a physical store, on an app, on a website, etc.
• Zero Consumers no longer fall in the middle. Their shopping habits are tougher to define. They either try to save money or are willing to spend more on what they want. McKinsey’s research finds that mid-priced goods and services have declined 10%. That doesn’t seem like much, but the average consumer is “trading down” to lower-priced goods. But at the same time, 40% say they plan to splurge on their spending, especially in travel, apparel and restaurants.
• Zero Consumers have zero loyalty. That’s a bold statement from McKinsey. In 2002, they found that half of consumers claimed to switch brands versus one-third two years earlier. Furthermore, they say, “Absent truly differentiated, exclusive offerings, the retailer will soon become a utility—just a means of distribution. This sounds a lot like Dr. Levitt’s gasoline example. If you’re delivering a commoditized, same-as-everyone-else experience, don’t expect to be treated differently than a commodity.
• Zero Consumers have zero patience. This trend has been around since Amazon started teaching customers what fast and convenient service is all about. Consumers don’t need to wait, and if you can’t deliver at their expected speed, they will find another company that will.

I’ve taken direction on this article from McKinsey content and research. McKinsey is one of the go-to resources for understanding all things business. Regardless of the type of business you’re in or the type of customers you sell to, you must consider how the broader consumers behave. Your customers compare you to their favorite experiences, including their retail brand experiences. While you may or may not be a retailer and be subjected to this type of customer, you must understand they expect whatever they love from other places they do business with from you as well. The more you know and understand them, the better decisions you’ll make on how to market, sell and service them.

This article originally appeared on Forbes.com

Image Credit: Shep Hyken

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GUEST POST from Shep Hyken

“Curiosity killed the cat.” According to Wikipedia, this saying first appeared in a 1598 play, Every Man in His Humour, by English playwright Ben Johnson. The following year, Shakespeare used a similar quote in Much Ado About Nothing. The intent behind this saying is “to warn of the dangers of unnecessary investigation. …” In other words, be careful pushing for more information. Knowing more is not always best.

That may be the case for the cat, but it’s not so in the world of customer service. A good customer service rep, salesperson, or anyone interacting with a customer should be curious. And that kind of curiosity shows up in the questions they ask.

Here’s another quote for you to ponder, and this one is from Dan Sullivan, founder of the Strategic Coach program. He says, “In a world where everyone is vying to be the most interesting, be the one who is most interested.” In other words, be curious. Sullivan says to ask genuine questions, actively listen, and take the opportunity to get to know clients and customers anytime you have contact with them.

The idea of curiosity in customer service is simple. Ask more questions. Once you understand what the customer is asking for or what the underlying issue is, ask more questions for the purpose of clarity and understanding.

Certain types of questions are better than others. For example, open-ended questions allow you to gather more information. An example would be, “Can you please tell me what was happening right before the problem began?”  A follow-up question such as, “Can you elaborate on that?” shows you’re actively listening. You may even let the customer know you’re taking notes. But be careful about asking too many “closed-ended questions.” These are questions that require simple yes or no responses. You don’t need to avoid them altogether, but too many yes/no questions could make a customer feel like they are in a courtroom being cross-examined by an unfriendly attorney.

Your goal is to grasp what the customer needs, and asking the right questions shows you are interested in helping the customer. It also demonstrates empathy, as the right questions show you are taking the time to understand the customer. And the right questions build trust. They help make the customer feel as if they are valued and heard.

Curiosity may have killed the cat, but it will give life to your customer relationships!

Image Credit: Unsplash

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