I don’t need to make you wrong

I don’t need to make you wrong to have a valid point.

I don’t need to make you wrong to express my wants and needs.

I don’t need to make you wrong to own my truth.

I don’t need to make you wrong just to feel better about myself.

My happiness does not require others’ suffering.

And what exactly is the point of creating a longer list of enemies and idiots?

When we make cutting the other person down our priority, our energy is almost always wasted.

When we start from a position of  “I’m right, you’re wrong,” our capacity for compassion is diminished.

When our ego pushes us to focus on everyone else–and to believe that everything would be okay if all these other folks would just get their act together–we lose sight of what we uniquely can do…what we are called to do…what we must do.

Customer service: Are you a ninja or a nincompoop?

Having divorced and moved earlier this year, I’ve had quite a few occasions to interact with companies’ customer service functions. In most cases, I’ve merely been updating my personal information. In others, my request was a bit more complicated. I’ve also bought a fair amount of new stuff, so I’ve had to deal with delivery issues and the like.

Most requests have gone smoothly. A handful were remarkable. Others were noteworthy for their sheer incompetence.

Addressing customers’ problems can be the proverbial moment of truth for a brand. The commitment to owning the customer’s issue can truly illuminate the difference between those that view customer service as a necessary evil and those that understand it as a key competitive advantage. Reflecting on my recent experiences, I’ve come up with a few simple guidelines to separate the ninjas from the nincompoops.

Seek first to understand. Before you shoot off the canned response or solve a problem I’m not having, make sure you actually know what my desired outcome is. I’m still trying to get an account issue resolved with a major upscale home furnishings retailer–I won’t say their name, but it rhymes with Festoration Lardware–because their CSR’s keep suggesting fixes to a problem that’s different then the one I’m experiencing.

Start where we left off. If I’m already into my third conversation or umpteenth email, don’t make me start all over again with my story. Pay attention to the chain of interactions.

Respect my communication requests. If I say I prefer to be contacted by email, don’t call me. Seems simple, but two companies specifically asked for my preference and then promptly ignored it.

Do what you said you we’re going to do. The folks at Regus told me they’d get back to me in 1 or 2 business days. 3 weeks later I’m still waiting. And they haven’t responded to my follow-up requests.

Anticipate. You can merely do what the customer requested, or you can act as an advocate or trusted agent and look at the bigger picture. I asked Hilton to update my account information and reset my password. They handled that request very efficiently but also noticed that I had not gotten credit for a recent stay. So they went ahead and took care of that without my asking. Nice.

Add a dose of wow. Offer to waive a delivery charge because I’ve made multiple purchases? Upgrade my shipment to next day delivery? Expedite my order because I’ve had a problem? Yes, please.

Avoid ironic messages. “Your call is really important to us.” Really?  Then why am I in a 10 minute queue?

Treat different customers differently. Yes, every customer deserves good and respectful service, but some needs must be prioritized above others. If you know–or can reasonably surmise–that some customers have greater lifetime value and/or significant brand influence potential–you might want to show a bit more care and attention.

It’s worth remembering that every customer interaction with your organization is an opportunity to enhance or detract from your brand’s value. Every interaction has the potential to increase the odds of positive word-of-mouth or turn someone into a detractor–and, worst case, a vocal and influential one.

You don’t have to call your customer service staff ninjas to get this right, though maybe that helps. Mostly, you just have to care.

Let’s get physical

Amidst all the breathless pronouncements about the inexorable decline of brick and mortar retail emerges an interesting phenomenon: some of the fastest growing and most exciting internet-only brands are opening stores.

Recently, Bonobos raised $55MM largely to accelerate its foray into “Guideshops.” Other e-commerce innovators such as Warby Parker, Trunk Club, Nasty Gal and Bauble Bar are all expanding into physical store fronts. Expect more announcements soon, not only from earlier stage companies, but from larger direct-to-consumer brands as well. This seemingly counter-intuitive trend reflects a few realities.

First, most of these venture capital funded darlings have thrived in their first few years by exploiting a highly specific customer niche and leveraging the heck out of the advantages of a direct-to-consumer model. Alas, the number of customers who are willing to buy product sight unseen, without working directly with a sales person and lacking the instant gratification that physical stores provide, is comparatively small when it comes to product categories where fit, material quality and fabrication are important. For these brands to continue to grow–and have a chance for material profitability–physical locations aren’t a nice-to-do, they are a necessity.

Second, brick and mortar retail is different, not dead. In most product categories, for many, many years to come, the overwhelming majority of sales and profits will continue to come from, or be influenced directly by, physical locations. Regardless of whether a brand started as an actual store or as a virtual entity, the ones that will ultimately win will offer a tightly integrated experience across their various channels and touch-points. They will eschew traditional mass, one-size fits all strategies and embrace more personalized missions. There remains plenty of business to be done in brick and mortar locations–if you have something remarkable and meaningfully customer relevant.

Finally, when we think about the market or the customer we inevitably get it wrong. Global pronouncements about industry dynamics or the “typical” consumer are rarely particularly illuminating and almost never sufficiently actionable. The brands that are winning–the ones that are stealing share from you–go beyond the averages and the mega-trends. They understand how to apply technology to create frictionless commerce. They delve into data and apply customer insights that inform stronger acquisition, growth and retention tactics. They are committed to experimentation. They treat different customers differently. And on and on. None of this is fundamentally rooted in how a brand started or whether trends tend to favor its success.

Of course it’s far from certain that these previously web-only brands will successfully transition to an omni-channel world. Some will stumble mightily. A few will fail completely. Others will see their growth stall at only a handful of profitable locations.

The one thing for certain is that for quite a lot of customers, the benefits of physical shopping are here to stay. For traditional players the rush to close and down-size their store base may have some merit. But it’s equally likely the problem isn’t just the real estate portfolio.

 

Attend your own lectures

I wish I could count how many times I’ve given advice to others that, while perfectly suited to my own circumstances, I’ve never taken.

I wish I could resist being irritated by character flaws or annoying behavior among friends, families and (sometimes) even random people on the street. Of course, usually what irks me in them is some reminder of my own perceived shortcomings.

Why is it so easy for me to notice  your failings while conveniently ignoring my own?

Why do I feel better pointing the finger at someone else, when really it should be pointed right back at myself?

Carl Jung pioneered the notion of the shadow self, describing how we often project our perceived, often unconscious, inferiority onto others while being unable or unwilling to see these traits in ourselves.

Debbie Ford–until her untimely death last year–and quite a few others have carried forth Jung’s work and expanded it in many useful ways.

In 12 Step groups “you spot it, you got it” is a familiar refrain.

And believe me, I’ve heard the phrase “consultant heal thyself” more than a few times.

None of this should be news. But I sure need to be reminded of it quite often.

I am aware that when I remember to spend less time worrying about you, and more time focused on the things within my control, things go a whole lot better for me.

I accept that when I attend my own lectures most of the time I have all the knowledge I truly need.

And then it’s time to act.

 

 

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Might happen, will happen, has happened

In a classic Rowan Atkinson and Richard Curtis routine, Rowan asks “what is the secret to great comedy?” But before Richard can offer his reply, Rowan interrupts. “Timing” he blurts out.

Timing is, of course, essential to great strategy as well. Commit too early, and we risk over-investing or distracting ourselves from something more urgent and important. Commit too late, and we might miss a new opportunity entirely or end up falling woefully behind.

Understanding when to act at all, much less knowing when to act decisively, has everything to do with developing keen awareness of relevant factors and acceptance of their implications. Here is where most get it wrong.

Because most brands fail to invest sufficiently in developing actionable market and consumer insight, their ability to discern between “might happen”, “will happen” and “has happened” is woefully lacking.

Because most organizations do not have sufficient commitment to experimentation, they aren’t ready to act boldly when “might happen” becomes “will happen”.

Because most companies spend more time defending the status quo rather than embracing the future, they are often stuck in the past and miss “has happened” entirely.

Many important dynamics have–or are about to–change your customers and your business. Whether you realize it or not, is one thing.

And whether you are prepared to act on that realization is ultimately the difference between winning and wondering what the heck just happened?

 

Rewarding stupid

The brand that incentivizes lowering the cost of its customer service function, when faster response time–and assuring the customer’s problem gets resolved the first time–is what drives customer value.

The retailer that slavishly measures–and provides bonuses for silo leaders based upon–individual channel performance, when the majority of its consumers research and shop across channels.

The credit card company that relentlessly increases late fees and other nuisance charges to maximize “other” income, while card-holder retention and usage rates are dropping.

The marketer that continually increases the frequency of promotional e-mails because they are cheap and reach a lot of people, when opt-out and conversion rates of its very best customers continue to decline.

It shouldn’t surprise anyone that when we reward stupid, we get stupid.

But apparently, sometimes, it still does.

Life lessons from the World Cup

If you watched both games of the World Cup yesterday you witnessed two powerful performances.

In the first game, nearing the end of extra time, Argentina’s Lionel Messi charged toward Switzerland’s goal with the opportunity to score what would almost certainly be the game winner. With the burden of his nation on his back, not to mention his reputation as one of the greatest in the sport, you might think he would use his phenomenal skills to control the outcome and own the personal glory. You’d be wrong.

Instead, he made a beautiful crossing pass to Angel di Maria, who guided a perfect left-footed low shot past Switzerland’s outstretched keeper for the win. Selflessness personified. Teamwork exemplified.

In the second game, USA’s Keeper Tim Howard put on one of the more astonishing performances in World Cup history. With the Americans largely outmatched by the Belgian side, Howard faced an offensive onslaught throughout the match. Without much help from his teammates, Howard demonstrated incredible grit and acrobatic flair, making a record number of saves and, incredibly, keeping the Belgians scoreless during regular time. Alas, Belgium finally broke through in stoppage time and the Americans were unable to keep pace and secure the storybook ending.

A Goalkeeper is one of the few roles on any team, in sports or otherwise, where the job is so narrowly prescribed. His (or her) job is almost entirely limited to playing defense, to prevent the other team from scoring. The Keeper typically has no significant contribution to whether his team scores or not. He can play fantastically and his team can still lose. To be a successful Keeper you have to do what you can–to do your very best–and accept that the rest is almost completely out of your control.

I know I would be well served to keep my energies focused on doing my level best and not worrying so much about things I cannot change.

I know the teams that I’ve been on perform a whole lot better when I cast my ego and selfishness aside.

And I don’t even play soccer. Or football.

Retail’s zero-sum game

I’ve got some bad news for you if you are in retail in North America or Western Europe.

In just about every sector–if you strip out inflation–the size of the pie is not growing. Moreover, you would be hard pressed to argue that this will change any time soon. With few exceptions, the brutal reality is that the capacity and willingness of most of your customers’ to increase their category spending is stuck in neutral. Get used to it.

Sure, the high-end is doing a little bit better (for now), but that’s largely driven by relatively price inelastic demand and an influx of foreign shoppers. Chances are that’s not your situation.

And, yes, there is continued strong growth in e-commerce, but most of that is either channel shift or leakage to unprofitable pure-plays. Of course if you are Amazon it’s a totally different story. But you are not Amazon.

Perhaps you work at a handful of brands that offer something truly differentiated and highly relevant to a sizable part of the market. If so, you are grabbing a greater share of that pie. For the rest of us, that just means our share of the pie is shrinking. Unaddressed, that is almost certain to end badly.

More and more, the vast majority of retailers are playing in a zero-sum game. More and more, the opportunity to drive top-line through store openings has evaporated. In fact, most retailers will be closing stores and shrinking the square footage of the one’s that they keep. Shrinking to prosperity is rarely a sustainable strategy.

Simply stated, driving real growth only happens by stealing market share, by growing share of wallet. And that means being more relevant and more remarkable than the competition.

It demands developing actionable customer insight as a basis for competitive advantage. It requires abandoning much of what you got you to where you are and embracing strategies and tactics that will get you to where you need to be. It means taking on more risk than you are used to.

Sure it can be scary. But quite frankly you have no alternative.

Oh, and I’d hurry if I were you.

 

 

This is not for you

Maybe it’s somehow coded in our genes.

Or maybe society conditions us to mindlessly think that bigger is definitely better; that more is always more.

Perhaps our fear of failure drives us to cover every imaginable base?

Yet the brutal reality is that the list of organizations that require scale to succeed AND can actually pull it off is undeniably short. And friends, I’m here to tell you, chances are neither you nor your organization is on that list.

Alas the pull of mass is undeniable. Let’s reach more people. Let’s gain more subscribers. Let’s try to sell more stuff, regardless of customer relevance or potential for profit.

As media choices explode, and the world becomes ever noisier, our default tendencies seem rooted in casting a wider net and shouting louder. That’s just stupid. It’s also expensive.

The best marketing plans are crystal clear about who the product or service is for and what it takes to become highly relevant and remarkable for that precise audience. By extension, the other thing a great marketing plan does is to declare who the brand is NOT for. As most brands are at the end of the life cycle of mass-driven strategies–or never should have been there in the first place–this is a critical distinction.

Confident brands don’t chase their tail or get sucked into a race to the bottom by reflexively pursuing volume for volume’s sake. They spend their time in search of depth and meaningfulness with their core, not trying to rope some generic somebody into engagement with gimmicks or endless discounts.

More and more, there is great power in knowing who your brand is for and who it most clearly is not.

More and more, there is great freedom in declaring simply and confidently: this is not for you.