Customers dump Businesses for poor Service? Yeah, Right!
Good customer service, customer experience and customer experience management are all about technology and its right use. This is what many of the articles that one could read on various platforms can make one think. Just that it isn’t. I guess I contributed my share to this misconception, too. My excuse is that I am a techie by trade and at heart. Sure, technology is a part of delivering a good customer experience but there is much more to it. Technology enables the digital presence of a business and helps its employees delivering better experiences – if available and used. But delivering a good customer experience first and foremost involves people, then policy and process. Technology is the last priority contributing, it is an enabler, a means to an end – not the end itself. On the other hand there are reports over reports saying that customers stop doing business with a company after bad experiences, sometimes even after a single bad experience, e.g. shocking 89 per cent according the 2011 Rightnow Customer Experience Report, or 62 per cent according to the 2015 Parature Global Customer Service Report. The 2016 Institute of Customer Service UK Customer Satisfaction Index finds that most UK customers want a balance of price and service, given there is a minimum service level. And the list goes on and on. While all these statistics likely have some grain of truth there are also numerous examples of poor customer experience not having a detrimental impact on a company. This is probably in part due to who asked the question, how the question was asked; this often...
Another Strong Year for SAP
On January 24, 2017 SAP released its results of their fiscal year 2016 – and the fourth quarter thereof. In a nutshell SAP: Delivered to its increased 2020 guidance Had an increase of 31 per cent in cloud subscription and support revenue, while still being able to increase the software license and support revenue. Cloud revenue increased especially in Q4 and promises to stay at a high level with a very healthy backlog Increased its full year operating profit by 20 per cent to 5.12 Billion Euro (IFRS) Has a strong backlog of cloud bookings This success has a slightly negative effect on the company profitability while it negotiates the shift from license revenue to subscription revenue while being in an investment mode. It, however, seems to be driven by an increasing adoption of S/4HANA, a strong increase of the Hybris set of CEC solutions, including e-commerce and increasing traction in the HCM space. So it is broad. Based upon the strong delivery of 2016 SAP expects the cloud business to increase by up to 34 per cent in 2017 (all numbers of course at constant currencies) and increases its guidance of revenue and profit for 2017. In line with this the company is also bullish in its mid term outlook to 2020, which it increases, too. My Take Of course the big increase in revenues, expressed as a percentage, is partly owed to the fairly low number. In comparison Salesforce reported 2.14 Billion dollar for their third quarter alone, as opposed to 2.99 Billion Euro for SAP’s fiscal year. Oracle reported 798 million dollars in their FY Q1...
AI and Bots will kill our Future – Or Not
After the Hype 2016 has been the year of bots, AI, and automation the beginning of 2017 seems to be the time of looking at wider implications. There is a lot of discussion going on in academia, politics, and on the web, e.g. the one spurred by Denis Pombriant with a very readable article, and two follow-ups here and here, in November and December 2016. Denis, supported by Vinnie Mirchandani, took a very optimistic stance – something that is highly important in times of simplification and pessimism. There is no doubt in my mind that technologies that are driven by artificial intelligence can have a tremendous benefit for both, companies and organizations, as well as consumers. Consumer technology like Amazon’s Alexa, Google Assistant, Siri, generally intelligent home automation, self driving cars, etc., can simplify peoples’ lives tremendously by taking away routine activities or making it just easier to execute them. Organizations can create improved customer and employee experiences via automating existing processes, and they could create entirely new experiences using technology – doing things more effectively. Opportunities to do so can be found within the complete value chain. Automation also serves the aspect of doing the same, or more, at less cost, i.e. more efficiently. And in the last point lies a catch. This means that less people are needed to deliver on an amount of work. This means less employed people and, on a first view, more unemployment. This means less disposable income. Because advances in technology have the tendency to benefit only a few, which are those who deliver the automation systems and those who are able...
Ocean Medallion – Which Customer Problem Does it Solve?
A few years ago Disney embarked on a massive customer experience journey that included the introduction of a ‘Magic Band’. Disney at that time followed (and likely still does) an idea that can be paraphrased as looking at everything through the eyes of the customer and pay attention to all details. During his 2016 CRM Evolution opening keynote Dennis Snow explained this concept and implementation in depth (see also my earlier CRM Evolution post). Dennis talked about the Disney way of creating great customer experiences, which basically follows three simple rules Design your processes with the customer in mind, not with internal/operational priorities; look through the lens of the customer Pay attention to details Create little “Wow Moments”. These add up to a lasting great experience and are easier to achieve than single “big” experiences. To me the most important message that Dennis conveyed is that the simple things and consistency are what matters. Consistently provide little experiences throughout the customer life cycle. He underpinned this with some examples from the ‘ordeal’ of getting out of the park and back into the hotel. Everybody is exhausted, kids may be edgy, riding the bus is usually not fun. What about the bus driver singing some songs or doing a little trivia? The rooms showing some little surprise, like specially folded towels? Another of his core messages was that a company gets loyalty and advocacy only by creating those “wow” moments mentioned above. For this to be effective, however, it must not fail at base priorities. Customer expectations can get mapped to a pyramid. Every customer expects accuracy and availability. These...