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24/7 Customer Centric

We live in a customer-centric society. Consumers no longer just go shopping; they want to be comforted by a brand. Been to a ball game lately? These are experiences that have a sporting event as a backdrop. People in our society are looking for an ever-increasing degree of satisfaction whenever they buy something. Ultimately, this manifests itself in wanting the highest possible quality at the lowest possible price. How did we get here? Who is responsible for this way of thinking?

I suggest two companies. First, there’s Taco Bell. In the mid-1980s they did something radically different. They introduced the value menu in fast food. This was like getting a raise. Suddenly you could get a taco for 99 cents – and a full meal for not much more than that. This move started a price war that the fast food industry continues to fight today. To confirm that the battle is still on, what is the first thing you look for when you walk into a fast food restaurant? For most readers, it’s the value menu – often priced at 99 cents.

An interesting, and often overlooked, point about this change in that industry is that Taco Bell made dramatic operational changes to their system to support the introduction of the value menu. They moved some of the food preparation out of individual stores and into central commissary kitchens. They also started using other pre-prepared items. This lowered their cost structure enabling them to charge less. In this case, they enjoyed a real competitive advantage. Other chains have been forced to mirror prices but have been slow to introduce an updated operating model.

The other company I cite is Fed Ex. Before FedEx if you wanted to send a letter from New York to Atlanta, or anywhere in America, let alone the world, it would easily take 3 – 5 days. With the introduction of FedEx, we could send a letter around the world with the reasonable expectation that it would get there overnight. Today we still send material cross-town, through Memphis (or a few other hubs), to make sure it gets there overnight.

Still other changes have made the consumer more demanding. The final push towards this customer-centric society is the internet and our new ability to access relevant information. If you want to know where your package is, how much your balance is, or how much your car insurance can cost, all you have to do is go online and after a few clicks, you have the information you need. Don’t forget the ever-present Wal-Mart and the impact it has on consumer expectations. Some reports indicate that more than 60% of Americans will shop at Wal-Mart in any given month.

All these changes mean one thing – your customer is more demanding than ever. Often business to business sellers will argue that the person buying from them isn’t using their own money, so they don’t really think so. How else are they supposed to feel? If most other purchases in their life are met with superior customer service and value, you can expect that they have the same expectation of you. Truly sophisticated shoppers may actually be familiar with your business model and the ensuing challenges with delivering superior service, but that doesn’t mean they don’t shop at Nordstrom or Wal-Mart and have a standard they’d like to see all shopping experiences achieve.

So, what have you been doing lately to make sure you’re delivering the experience your customer really wants? Notice I didn’t say deliver what they expect; their expectations may not be very high. Do you know what they really want? On time and on budget is not what they want – they expect it, it’s what you do for a living. Imagine you are buying a brand new car. You’ve been waiting six weeks for this baby to show up at the dealer and you’re really excited about the prospect of picking up your new machine. The day you have to pick it up, you took the day off to polish your garage floor and you drive your old swap to the dealer. When you come out of the old master, the salesman greets you with a real warm welcoming smile and addresses you by name. You honestly feel welcome as your old car silently disappears from the picture. The salesperson beams as he congratulates you on your purchase and invites you to walk with him. As he rounds the corner to the new vehicle delivery room, he stops and looks you straight in the eye and with total seriousness he says, “You’re going to love this car. We’ve gone out of our way for you… In fact, we even put tires on it for you!”

Are you blinded? Probably not. Don’t you expect the tires when you buy the car? What does your customer expect when they buy from you? Do you deliver? Even worse, what are they not expecting and are you delivering that? Too often we mistake the satisfied customer, the one who doesn’t complain, as the loyal customer. They may just be waiting for the next viable vendor to come along. You have to ask how you are doing. And you must ask in many ways; surveys, follow-up calls, face-to-face and whatever else is appropriate. Additionally, everyone in your company needs to be able to ask questions – and that takes some training but the payoff is in the form of increased customer retention because you show you care. This retention generally appears in market share and as profits.

The changes in customer purchasing practices over the past decade are constant. Ignoring this new reality is a strategy for business failure. As a consumer you are demanding and have expectations. The people who consume what you sell have demands and expectations. Do you know what they are? Ask them. 24/7, It’s all about them.

© 2006 FireStarter Speaking and Consulting

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