Sephora’s customer focus is simply brilliant (and, at times, brilliantly simple)

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I get pushback when I point to Disney, USAA, or T-Mobile as examples of companies that excel at consumer-first marketing or customer-centricity. People argue that these companies have some sort of unfair advantage or extenuating circumstance that somehow makes focusing on the customer easier for them. But, even if you’re not trying to be the next Disney or USAA, every company can improve – and that starts with a mindshift, and doesn’t have to involve spending lots of money upfront.

To make the point, I usually turn to Tom Boyles, former SVP of global customer managed relationships at Disney Parks & Resorts. Tom spent most of his career in banking, and would point out that his opportunity to connect with customers at Disney was no greater than at any other stage in his career. He once told me that people would look at him and say, “it’s easy for you to connect emotionally with customers. You’ve got everything from Mickey Mouse to Johnny Depp at your disposal.” But, Tom would turn that around and ask them, “what’s more emotional than the roof over the head of your family, your ability to send your children to college, or your ability to afford your retirement?” Mortgages, 529 accounts, and 401Ks could be boring products to promote, but if you put yourself in your customer’s shoes and understand their emotional connection, it makes it a heck of a lot easier.

I’m not naive. I know that Disney spent more than $1 billion upgrading the customer experience at its parks. But, one of the reasons I point to Disney as a great example of a consumer-first business is because of the small things that it does. Look back at Tom’s title. He wasn’t running the CRM team. It was CMR – Customer managed relationships. Why? Because they believe that the customer owns the relationship and not the company. In Marketing to The Entitled Consumer, we reference the story of a security guard at a Disney park asking little girls that were dressed as princesses for their autographs.

I love finding small examples that demonstrate a firm’s commitment to being customer-first. Last week, on LinkedIn, I posted a picture of two stacks of shopping baskets in a Sephora store. The baskets are in two colors – one indicates that the shopper would like to be assisted and the other that they would like to be left alone. The response to my LinkedIn post has been tremendous. Thousands of people have viewed the post and hundreds have liked or commented. As I said in that post, customer-centricity and customer experience start with a mind shift – by putting yourself in your customer’s shoes.

Sephora is another one of those companies that I point to as an example of a consumer-first business. They’ve shown over the years a commitment to understanding and providing value to their customers. But, what I loved about this example was its simplicity. You don’t have to invest a billion dollars as Disney did to overhaul your entire process and system. Instead, you can change your outlook – truly consider what is valuable to your customers and make small, incremental changes that can have major impacts on your customer’s experience.

Why do entitled consumers rebel?

In our conversations with marketers and strategists, they often complain about consumers’ rising expectation levels. For many of them, calling consumers entitled is a pejorative term. We disagree. We think marketers need to change how they think AND how they behave to accomodate and engage with entitled consumers. Marketer behavior is so bad that we dedicate an entire chapter in Marketing to the Entitled Consumer to marketing overload.

There are lots of reasons – but for consumers, there are no excuses. Among the consumers we surveyed, 43% agree with the statement that, “Companies are lucky to get my attention and they should act like it.” And, for Fully Enittled consumers, that proportion rises to 59%.

Meanwhile, we bombard consumers with retargeted ads and assault their inboxes and mobile devices until they stop paying attention, and even seek out ways to block us from communicating with them. Marketing is not necessarily the enemy of a good customer experience, but unless it is carefully managed, it can be. When marketers are too focused on the bottom line and short-term results, they can go off course.

At their core, most marketers want to do the right thing. They want to make customers aware of products or services that will make them happier. The challenge has been to deliver on that promise in an efficient, and respectful way. That’s what Marketing to the Entitled Consumer is all about – how to stop bombarding your customers and to turn their unreasonable expectations into lasting relationships.

Who and where are entitled consumers?

Marketing to the Entitled Consumer goes on sale today. We’ll spend the next few days highlighting some of the major findings, conclusions, and recommendations in the book. Starting with a question posed by the book title. What exactly is an entitled consumer?

For a long time, our working description was consumers that consider themselves deserving of privelege and special treatment. And, we’ve always believed that entitled consumers are far from a threat to marketers. We don’t see the term as pejorative. We believe entitled consumers represent an opportunity. But, only if marketers adjust how they attempt to build relationships with them.

We wanted to gain a more complete understanding of today’s consumer, and to get beyond entitlement as an abstract idea. So, we surveyed 7,000 consumers in six countries (2,000 in the USA, and 1,000 each in France, Germany, Italy, Spain, and the UK) to better define and measure the concept. And we worked with outside experts (thank you KGR+C) to derive an Entitlement Factor from the data.

We were surprised by some of the findings. Most notably, entitlement is pretty much independent of traditional demographic categories. We expected to see a more hightened sense of entitlement among millennials, for example. But, we found limited differences according to generation, gender, socio-economic status, or education background.Entitlement segments 2x2

We found that entitlement is a synthesis of two related qualities, which we call hard and soft entitlement. Hard entitlement manifests in people making demands. Their basic attitude is “if you don’t give me what I demand, I’ll punish you.” Soft entitlement is related, but different. It’s reflected in people who are willing to share data to get better service, and expect companies to understand their needs. Their attitude is “I’ll help you give me what I want, because that’s what I’ve come to expect. When consumers demonstrate both hard and soft entitlement, we call them Fully Entitled.

Although the exact number of consumers in each category differs by country, our data indicates that more than two thirds of consumers are entitled – and we expect the trend to continue. And, since you can’t use traditional segmentation methods to identify them, we recommend that you treat everyone as entitled. Demanders will punish you if you don’t, Anticipators will leave in disappointment, and the Fully Entitled may do both. But, if treat them as though they are deserving of privelege and special treatment, you’ll be able to build profitable relationships with them. That’s what our book is all about!

 

On Sale Today!

Book cover with background

We will continue to share the major themes from the book over the next several days, but we hope you’ll want to learn more. We encourage you to purchase the book, and would love it if you’d leave us a review. Among other sources, you can find it here:

What causes hostility towards brands?

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When my former colleage Augie Ray posted recently that he has “given up on Amazon until they become a better employer and corporate citizen” it set me thinking. I realized something about how I patronize different brands. When I favor a brand, it’s often due to aligned values — I’m willing to spend more at Patagonia, for example, than at many of their competitors. Yes, they produce a quality product, but I also respect, and am willing to compensate them, for their principles.

I once commented that some companies seem to engage in “concerted acts of hostility” rather than “random acts of kindness.” And, unlike Augie’s principled stand against Amazon, I realized that when I have blacklisted brands, it’s almost always due to negative customer experience – or concerted act of hostility. There are companies that I refuse to patronize. For example:

  • I once rented a car from Hertz to drive to Miami airport. When I missed my flight, I ended up driving back home. I went back to Hertz, was given the same car, which hadn’t even been cleaned yet, and they charged me for two one-way rentals (which was significantly higher than returning it to the same rental center, even though I ultimately did).
  • Avis isn’t any better. They recently charged me for an extra day when returning a car that was 20 minutes late. They failed to take into consideration the fact that I received it late — waiting in line for more than an hour to pick it up — two days previously.
  • Uber has pissed me off in so many ways, but the final straw was when I ordered from UberEats when my son was in hospital. The driver drove in the opposite direction for 20 minutes to deliver a different order, and took more than an hour to actually get our food to us. When I spoke to customer service, initially they hung up on me. When I dialled back, they denied that he dropped off another order, finally admitted that he did, and then told me that our food was delivered within their permitted window. The food was cold and congealed. The customer service was just cold.
  • I live two doors away from a hotel in Palm Beach – The Tideline. It has a beautiful outdoor patio which we should love to frequent. We used to go their occasionally for breakfast or lunch, but the service is so bad that it was hard to keep going back. The final straw was when my son and I were sitting at the Sushi bar eating dinner, and were informed that we wouldn’t be able to order for 45 minutes because they had just received a large order. This had happened to my wife and I previously (although not in the middle of our meal). Beause it had happened before, and we had previously been told the cause, I asked them if it was because the owner had put in the order. And, they confirmed it. So, the billionaire owner of the hotel would rather interrupt a patron’s dinner so that he can be served. I’m not spending any more of my money at his establishment.
  • I once drove more than an hour for an appointment at the Cleveland Clinic. After waiting another hour to be seen, I was told that the doctor I was waiting to see was not an ENT specialist – which is why I had set up the appointment to see him. The RN was pleasant about it, but we canceled the appointment. I pointed out to the receptionist what had happened, and she didn’t seem to care. Nobody ever followed up with me either to apologize or to schedule with an actual ENT specialist.

To complicate matters, I do know that my expectations are higher for the Cleveland Clinic than for other hospitals. This is mainly due to having heard from their executives while I was at Forrester, about how much emphasis they place on customer experience. When they failed to meet basic courtesy, yet claim to value CX, I gave up on them.

I had a similarly nuanced experience with JetBlue. I used to hold them to a higher standard due to the experiences that I had enjoyed. When they let me down, badly, on a subsequent occassion, I stopped flying them for a while. Then, when I began to fly with them again, I changed how I thought about them. I now think of them as just another uncaring airline. They’re no worse than the others, but I no longer think of them as better. And, then there’s brands like Comcast, that I’d love to avoid, but I live in a condo which has a monopolistic relationship with the company. I live with them, but loath them.

I don’t have the answers on this one, but I’m intrigued to explore further. Do shared values lead to higher loyalty, while negative experiences lead to hostility? Certainly for me, that’s the case, but what’s your experience?

 

Marketing to the Entitled Consumer – so real, you can touch it (well, I can at least)

Marketing to the Entitled Consumer - the bookI just received my first copies of Marketing to the Entitled Consumer, which will be on the bookshelves on October 30.

After countless hours of deliberation, debate, writing, and editing – and then waiting – it’s finally real.

And, we only have 35 days to wait to see it on shelves and hear the reaction. Our goal has always been to spark a conversation — about consumers, what they want, and how brands can and should give it to them. We hope you’ll chime in on this site as part of that conversation.

We’ve launched a separate site which is dedicated to the book if you’d like to check that out. It gives a detailed view of what to expect in each chapter. We also hope that you’ll buy and give feedback on the book. It’s available for pre-order on Amazon, and wherever else you might buy books.

We have launch events and signings in London on October 4 and New York on October 17. Let Nick, Josh, or me know if you’d like to attend.

Humbly,

Dave

Use unsafe thinking to align with entitled consumers

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This is not a political post. For as long as it takes you to read this post, I’d ask you to put aside whether you think Nike was right or wrong to feature Colin Kaepernick in it’s “Just do it” ad, and acknowledge that it was a high-risk move.

Author, Jonah Sachs calls this type of move “unsafe thinking.” Sachs cites other examples like CVS deciding to stop the sales of cigarettes. When CVS began to consider the decision, the unsafe question that they asked was whether they could make more money by not selling tobacco – compared to the $2 billion in tobacco sales they were making at the time.  I’m not so sure that CVS was employing unsafe thinking though, as much as bowing to the pressures of a health care market, and a recognition of the hypocracy of selling billions of dollars worth of cigarettes while claiming a mission to deliver health to their community.

Nike, on the other hand, had to know that it would alienate a segment of its customer base. I wonder if they were surprised when people began to cut their swoosh of their socks, burn their shoes, and vow to never purchase from the brand again.

We have long advocated for aligning your company’s values with those of your consumers. But, what the Nike example shows is that your customers aren’t all aligned. So, you have to go a little deeper. Figure out which values are most important to the customers you want to keep. In Marketing to the Entitled Consumer we consider examples such as TOMS, Thrive Market, and Figs that pursue a buy-one-give-one model or how Danish pharma company, Nordisk supplies insulin at reduced prices in developing countries. These are values that are important to the company, but they are not particularly controversial.

Increasingly, however, we see the rise of activist commerce. Sleeping Giant, an anonymous watchdog organization, alerts brands when their advertising appears on extremist websites – with an inherent threat to boycott them if they don’t react. Consumers that want to take control can download buycott, whose barcode scanning app lets them vote with their wallet on all sorts of issues that might be individually important to them.

When it comes to aligning with consumers, companies that identify the causes their customers believe in and find creative ways to support those causes will create a way to differentiate themselves in the consumer’s mind. How controversial you want to be, is up to you. But, start by employing some unsafe thinking. And then, just do it.

Good customer support can instill loyalty

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Although I own a lot of Apple products, I don’t consider myself a fan-boy. If anything, I’m constantly on the edge of giving up. Every time my Apple products don’t work the way they’re supposed to (isn’t ease-of-use a big part of the promise?) I start thinking about giving the Pixel phone a go or trying to work with a Surface or chromebook.

Usually, inertia takes over. I realize the effort it would take to manage and migrate my photos and music, and there’s the need to re-learn which way to scroll and which corner to click to minimize a window. None of it is insurmountable, but the magnetism of the new just isn’t strong enough to overcome the habits of the present (with a hat tip to Jobs to be Done research for this description).

But then I had a great customer support experience that guarantees my loyalty for the foreseeable future and raises the bar for the support team of every other company that I ever interact with. Without boring you with the technical challenge, I contacted Apple’s customer support team and, after some time, my case was escalated to a manager. As well as regular troubleshooting, at a couple of stages I had to send logs for him to forward to engineers.

When we first spoke, he told me that he would remain on my case until it was resolved. It took several days, but he was true to his word. What shocked me was his communication and tenacity. He told me exactly which days he was working and when he would follow up. He arranged specific times to call me and then called me at those times. He explained as much technical detail as I wished to know – and didn’t overwhelm or bore me with the rest. In short, he owned my case. He wouldn’t let go until it was resolved and I was satisfied.

My expecations of every company’s support are now so much higher, and my appreciation for Apple has pushed thoughts of Google, Microsoft, or Samsung to the very back of my mind.

How do you show you care?

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A few weeks ago, I was in Miami and needed to order lunch for my family. We had flamed out a couple of times with different local eateries, and I once again looked online for highly rated lunch places near us. I came across a sandwich place — Super Subs — that was close by and got four-and-a-half stars on yelp. But something seemed iffy about it. So, rather than call in an order or use a delivery service, I decided to drive there to either order or find an alternative.

When I got there, the store was bustling. There were some people sitting on stools around the perimeter, and it initially felt like you needed to be a regular to have any chance of decent service. Then, when it came time to give my order, I realized how wrong I had been. It wasn’t that they were treating regulars differently. They were treating every individual as though they were the most important person in the world. The questions were endless – they wanted to get every aspect of my order exactly right. They wanted me to avail of extras – not upsells, but additions that I might want and alternatives I might prefer. And, all of this was done with a huge smile and in the server’s second language.

While I was waiting for the order to be prepared, I noticed a sign to their customers. The language and grammar wasn’t perfect, but the sentiment was. It basically informs customers that mistakes made by Postmates (although Doordash also seems to deliver from the store) can’t be avoided by the store. The sign pointed out that “they only care about their delivery charge and we only care about your food being ordered correctly.” Here’s the thing — I believed them. I’ve had enough mediocre to lousy experiences with Postmates, Uber Eats, Delivery Dudes, and others to know that they don’t care. My experience with Uber Eats was so poor that I refuse to use the service again.

But, having experienced Super Subs first hand, I knew how much they cared about getting my order right. There was something so authentic about their store, their note, and their service. As they pointed out, they are not in control of their brand when a customer orders through an intermediary, and yet, they sometimes get the blame. That’s life, but their little sign brought a smile to my face. It reinforced the notion of authenticity and emphasized how much they care. In the era of social media, none of us fully controls our brand. But, we can be honest and authentic, and trust that this resonates with customers.

Oh, and next time you’re in Miami, check out Super Subs — just be sure to call in the order yourself, or to visit in person!

Customer feedback: do you really want to know about my experience?

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Companies try all sorts of ways to get customer feedback. You see those emoji button stands as you exit airline security. Every fleet truck I get stuck behind seems to be emblazened with a “How’s my driving?” sticker.  And, last week I took my first ride on Florida’s new express train, the Brightline. On the multiple screens laid out in each train car, the messages alternated between ads, service information, and one message that encouraged passengers to “share your experience!” providing a hashtag for Facebook, Twitter, and Instagram. OK, Brightline, since you asked, here was my experience:

  • I was supposed to get a $10 coupon for registering. I never received it. When I explained that to the lady at the ticket counter, she took down my name, email, and phone number, but a week later, I haven’t heard anything from anyone. And, she was pretty rude and patronizing.
  • I tried purchasing tickets on my home computer, on my mobile browser, on the app, and at the kiosk in the station. None worked. The rude, patronizing lady succeeded in booking us on the train. By the time we got upstairs to board the train, we were, late for it. Our tickets didn’t work at the turnstyle. A very nice security officer got us through the gates and radioed ahead to hold the train for us.
  • Although our train car only had about 15 people in it, my son and I were given seats that were four rows apart. There was nobody else at the table which I was allocated, nobody in the seat beside him, and nobody in the 6 seats between us. There was also no way to change our seats in the app, so we just both sat at my table, and nobody questioned us.
  • On our return journey two days later, we booked the “Select” service, which Brightline bills as its “first class service”. This time the app did work to buy tickets (but still no coupon). Thanks to a collosally incompetent Lyft driver we missed the train we had booked. Brightline staff kindly and efficiently booked us on the next train — which was an hour later. We went to the Select lounge, where our advertised “enhanced experience” was supposed to include “an ever-changing lineup of enticing bites throughout the day and evening.” Neither my son nor I had eaten dinner (thanks Lyft driver!) and when we got to the lounge, all of the food was gone. Despite advertising “champagne, premium wines and beers, handcrafted cocktails, juices and soft drinks,” a lounge employee was removing everything except the beer, juice, and soft drinks. When I asked about food, I was told that food was only served until 9 o’clock. We got to the lounge at about 9:04. But, nowhere in Brightline’s ads or promotional literature does it say that food was only served until 9pm. And then, the lounge employee was about as rude and patronizing as her colleage from two days ago. I bought food for my son at Brighline’s over priced cafe — although the only reason we had booked “Select” was because we hadn’t eaten. Finally, a very kind employee at the cafe responded very appropriately to our story and put together a plate of cheese and cold-cuts for us.
  • I bumped into a manager and explained our plight. She was rude and patronizing. Maybe she trained the other two employees.
  • The WiFi wasn’t fast enough for my son to play Fortnite. That was a negative for him and a positive for me.

In Brightline’s defense, it is relatively new. But it’s not that new. The West Palm Beach-Fort Lauderdale segment opened in January, and they extended to Miami in May. I’d have thought they’d have worked out the kinks by now. My wife had taken it the week prior to my son’s and my trip and she loved it. Maybe that led to a hightened expectation on my end. And, some elements worked great. Melba, the cafe member in Miami that put together the charcuterie plate for us was a sweetheart. The security staff in both the Miami and West Palm stations were efficient, showed empathy, and frankly displayed better customer service than most of the service staff. And, the on board experience is clean, efficient, and pleasant.

But, I came away underwhelmed and disappointed. I’ll give Brightline another go — it’s not like driving to Miami is fun! But, Brightline, I offered my feedback to your employees and to one of your managers, and for the most part they were rude and patronizing. Since you asked for feedback on social media too, I’m happy to share it there. But there’s a lesson for companies to reconsider how they treat feedback — when you get it directly, in particular. If you genuinely want feedback, you might want to invest in some employee training and introduce some processes to capture the feedback and evolve your experience. If it was just an excuse to display your hashtag, I messed that one up for you. Sorry.

Want to Be Customer Obsessed? Forrester Recommends Starting With Email

Shar VBCustomer Obsession is a theme that Forrester has spent the past few years researching and advocating. It’s not so different from consumer-first marketing. Both terms refer to the practice of allowing insights about consumer behavior to dictate brand behavior.

In a recent Forbes interview, analyst Shar VanBoskirk explained that many brands understand the idea of Customer Obsession, but get stuck when they try to implement it. In a big company, so many processes are already in place to push merchandise, run a sale, or send mass messages that personalizing interactions or communicating with individuals based on their needs is hard to prioritize.

Shar’s research shows that email is an affordable, effective tool that brands can use to become more customer obsessed. It makes sense. Most brands have email platforms, email experts and a lot of information about the consumers that receive their messages. The email team also usually has a reasonable amount of autonomy to direct their messaging strategy.

Rather than think of email as only a promotional tool, email should be used as a communication channel, where marketers interact with individuals. Email can be used for market research, for personalized updates based on past behavior, or just to create goodwill with heartwarming stories.

Shar cites Hilton as a good example. The company delivers a personalized “year in review” email that shows a customer everywhere they traveled, loyalty rewards, and how close they were to reaching the next level of loyalty status. This simple (and automated!) email then allows for Hilton to create ongoing customer-obsessed communication. For example, Hilton could easily send a follow-up that helps the customer achieve extra points to graduate from gold to platinum member status.

Email marketers can be customer obsessed without overhauling the marketing department. Hilton doesn’t need to know every single thing about a customer to send a personalized email, they just need to pull a year’s worth of sales activity into a standard template.  Many customer-obsessed email campaigns can be relatively straightforward, like reminding people what’s in their shopping cart before it expires. Or they can be really complicated. Netflix uses an algorithm to understand consumer’s preferences and recommend movies. Customer-obsessed email campaigns can also pull double-duty. Many personalized digital companies from Birch-Box to TheNest use survey emails to better understand customer preferences – and these messages get significant customer participation. Some companies like Spotify put little survey questions throughout their online experience to gather data when the consumer is most engaged.

Yet, even before data is gathered, the concept of thinking about the customer’s needs must become part of the planning. Someone at Hilton understood that customers react well to seeing a review of their past activity and that the personal touch will mean significantly more than another “Labor Day Weekend Sale” message.

This insight might be the best takeaway from Shar’s research – that email marketers have the power to think about what communication the customer might want, and then craft a campaign around that concept. A customer-obsessed email marketer would try to determine what makes those customers tick first and build around that, rather than blast them with “clever” but vanilla messages that focus only on extoling the products virtues, rather than truly connecting with the consumers’ needs.