February 22, 2012

The Importance of Customer Listening

curiosity(Note: This post is a reprise of an earlier Customers Rock! blog post, and one that was very popular with my readers. As customer listening has become a common topic recently, I felt it would be helpful to post it again, especially as it discusses NON social media listening. Important to listen via all channels!)

Are we putting up walls between the enterprise and its customers?  Or are we putting up walls dedicated to its customers?

I was in Santa Barbara and had a chance to see how one company shares their customers’ voices.  Citrix Online hosted a tour of their facilities for me.  Besides being very employee-centric (one whole wing of their campus was dog-friendly!), Citrix Online is very customer-centric.

My hostess at Citrix walked me past their Voice of the Customer wall.  On it were three large groupings of many signs, each sign a verbatim quote from a customer.  Each quote was also directly attributed to a customer.  These customer quotes were divided up by Citrix’s main product lines, each grouping a different color.  It was in an area near the employee break room which gives the opportunity for many to stop and read “the writing on the wall.”

I love this idea of keeping customer comments visible to all in the organization.  It was inspiring to see the feedback plastered all over the wall!

Do you listen to your customers enough to get these types of quotes?  Or do you aggregate your customer feedback into several large categories so the true voice is lost?

In one of my previous posts, I asked you what other companies do to listen to their customers.  Kevin Hillstrom of MineThatData shared his experiences with some major apparel companies:

  • At Lands’ End, professionals had to help out in the warehouse, or on the phones, during the holiday season and during bad weather. You learn a lot about customers doing that.
  • At Nordstrom, we had to physically work in stores, or take orders over the phone, during major sale events.
  • At Lands’ End and Nordstrom, we learned a lot about customers, by actually spending some time being close to the customer. Both brands are well known for their appreciation of the customer, both brands require professionals to have some interaction with the customer.

When I worked at HP, we learned about the “Day in the Life of a Customer” concept, which was very similar to ethnographic studies.  HP researchers would go to a company which was a customer of HP’s and video tape their business for a day.  HP would then analyze places where they could help make that customer’s business processes easier.

Lego’s customer service team shares customer feedback from the front lines, support, with the rest of the organization in their regular internal newsletter.  The information helps product teams improve their designs as well as highlights any potential issues.

Some companies tend to hold customer information within their own corporate “silos”.  By this, I mean that departments are not always good at sharing what they know or learn about the customer with other areas of the company.  This kind of knowledge-is-power attitude cannot exist if one wants to create a Customers Rock! company.

Companies like Lands’ End, Nordstrom, HP, Lego, and Citrix get close to their customers and share the verbatim “voice of the customer” within the organization to improve products, processes, and ultimately the customer experience.

Where can you improve your customer listening?  Go find a spot to make your “customer wall”, and start the conversation! (Note: original comments here; worth reading!)

(Photo credit: sazonov)

Right-Selling Customers

 I read an interesting article on “Scientific Selling”, which started with the following tagline:

“The way in which a customer is handled has much to do with results obtained.”

How true that is!  It goes on to discuss how a customer cannot be “up-sold” unless that customer is thoroughly understood.

“The worst evil in selling is the action of the man who merely gives the customer what he asks for.  The man who does this is not a salesman, he is just a clerk.”

This article, by the way, is from the New York Times and was printed June 18, 1922!  It still rings true today. 

We need to understand not just who our customers are and what they say they want, but we also need to understand how they are currently using our products and services.  Yesterday, I spoke with Nancy Arter and Suzanne Obermire at RRW Consulting (their blog here) about the marketing basic of “right selling” customers.  We agreed that the most-satisfied customers tend to be those who are using the products and services which are a best fit for their needs.

For example, when I was at HP, I worked in the division where we marketed service subscriptions for HP’s mainframe computers to businesses.  Part of the service subscription included software updates and the ability to contact the call center (this was before eSupport was prevalent!).  At the end of the year, a customer could decide whether to renew their subscription.  If they never called in with a problem, they might have felt that they didn’t get value from their investment.  The most successful subscription services salespeople (say that three times fast!) were those that helped a business find the right level of service for the next year, rather than trying to renew them on the same (under-utilized) level of service.

Some of you may be thinking, hey, they left money on the table!  You should just try and get the most from the customer.  This, readers, is short-term thinking – trying to maximize the amount of revenues this quarter or year.  This type of thinking backfires when a customer realizes they have been over-paying for services they don’t use, and they then get upset that they weren’t told they could have switched to a subscription which was a better fit. (Does this sound familiar – cell phone plans come to mind…)

The long-term viewpoint says we want our customers to have the right level of service.  That may mean that they reduce the level of service they have with us.  However, if it is the right level of service, the customer will ultimately be more satisfied.  Customer satisfaction equates to long-term loyalty, which equates to increased positive word of mouth.

And that is what right-selling is all about!

(Flickr photo credit: TimParkinson)