06.16.09
Is there a better way to “listen” to customers?
Service is all about delivering value to our customers. We all say that we deliver value, but how do we know?
Service has been described in the service science literature as a process of value co-creation between the provider and the customers. Assuming that this is true, how do we gather the input from the customers? While we may be able to observe customer behavior in a consumer situation, how is this done in B to B transactions? Aside from possibly repeat business how do we measure success in value co-creation?
These are all questions that we need to be able to answer as we advance service business models. In the model that I call the Service Oriented Enterprise™, we can measure the success because the enterprise shares in their customer’s success, financially. However this model is not practical for everyone today and we must therefore develop other models for acquiring customer intelligence and measuring the value that we might create.
On the customer intelligence side, the standard methodology today is to survey the customers. (or potential customers ) We see these surveys today in terms of Customer Satisfaction Surveys, Net Promoter Surveys, direct and indirect market research questionnaires and the like. In other situations companies might create user groups, in person or connected via the web, to try to understand customer wants and needs. In essence, most companies today still gather input by the same methods that we have used for decades. At times the input from customers might actually inhibit innovation if it is taken too literally. Henry Ford once said: “ If I had asked my customers what they wanted, they would have said, faster horses”
To a greater extent the problems that we have with the common practices today around gathering input from customers is that we are asking the wrong people. First, we create surveys with natural biases then we ask people who are likely to respond. If you send out a customer satisfaction survey after a transaction then you will also see bias in the response. Getting response rates to surveys above ten per cent is considered good but look who typically answers surveys. Those that respond to customer satisfaction surveys are doing so because they care. They either like you or hate you and the middle ground remains silent. What you don’t know will hurt you so getting silent customers to talk to you is the key.
We live in a connected world and the truth is that you customers talk to you, and about you, everyday and you are not capturing the intelligence that they are giving you. Front line personnel in particular can hear about product improvement areas, complaints (that might lead to future legal action! ) and opportunities to sell. Even if they are equipped with the tools and training to capture the information, it too will be biased. Important and valuable customer intelligence is being lost every day. Let’s stop the leaks now!
Conceptually we can solve these problems and might effectively end “surveying” as we know it. What if we could analyze every customer communication that happened within the normal flow of business? What if we could understand what people were saying about our companies in the social media, blogs, forums and web communities? And, what if that data could be presented in a way that could show us the impact to our brand value? The truth is, this is all possible today.
The tools used to analyze electronic traffic by government intelligence agencies that protect our countries can also be used to protect and grow our businesses. The technology is here today but has not been put together with the business process and business analytics needed to turn the raw data into actionable business plans. We already use voice analytics in call centers for quality monitoring or threat analysis, we have so called ‘net-bots’ that roam the web looking for targeted marketing opportunities and we have text analytics for email, chats etc. None of these are well focused to discern unmet customer needs, attributes of satisfaction or other metrics that will increase our levels of customer intimacy. In spite of claims to the contrary by CRM vendors, ‘360 degree’ views of the customer are still missing quite a few points around that compass
This opens several new possibilities for companies. The barriers to create this have nothing to do with technology or even the science. The key barrier is a company’s willingness to become truly customer focused and remember that to understand, one must first know how to listen. The Services Transformation and Innovation Group has partnered with leaders in the technology and business process space surrounding strategic gathering and use of customer intelligence. If you are interested in learning more, contact us for pilot opportunites that will help you get ahead of the competition, reduce legal exposures and maximize your future opportunities. Email info@servtrans.com for more information.
