Isn’t it great
when reality exceeds expectation?
This blog
was inspired by a recent visit to Glasgow. More through necessity rather than
choice I ended up staying at a
Premier Inn. Being my first
visit I thought it would be along the lines of Travel Lodge – lost cost and
functional. However I was pleasantly surprised to find my room was spacious
enough to bring agoraphobics out in a cold sweat. The bed was king-size, topped
with a choice of soft or firm pillows depending on your preference with a great
night’s sleep money back guarantee thrown in for good measure. The staff were
incredibly friendly and helpful. Kids under 16 can stay and eat for free. The
full fry up breakfast was great quality and offered lots of choice – with the
best part being you could munch through as much as you wanted for £8.95 (which
for me with hollow legs was like manna from heaven). And the check-out time was
a leisurely 12 noon.
What’s not
to like? And the fact that I’m sharing
this with you shows how the power of a great experience instigates word of
mouth recommendation, which is the most powerfully persuasive form of
‘marketing’.
However not
all companies are like Premier Inn…
Isn’t it
shitty when expectation is let-down by reality?
Do you
recall a time when a product or service failed to live up to expectation? I bet
you can as unfortunately there are still plenty of brands guilty of delivering a
sub-par experience.
Now, think of an airline company renowned for poor
customer service. I would also wager that many of you immediately thought of
Ryanair. Their CEO Michael O’Leary has famously been quoted in the past as
saying customers are “idiots”, people that forget to print their
boarding pass are “stupid” and told anyone looking for a refund to “**** off”.
Which is
counter-intuitive, when you think how successful they’ve become in catering to
81 million passengers a year. Or had.
It’s time
to step up to the plate
As Bob
Dylan once sang, ‘times are a changing’. Today, empowered buyers are
increasingly demanding a new level of customer obsession. More connected, more
informed and more discerning they are less inclined to put up with hyped up
marketing promises some companies resort to (at great expense) to shore up
shoddy experiences.
So it’s not
surprising to see time also catch up with Ryanair who have recently seen
passenger numbers dive resulting in them issuing a first profit warning in 10
years. However what is really interesting is that Ryanair is now looking to
cast off its ‘bad-boy’ image having realised that customers do have a choice
and that customer respect is necessary as good value isn’t solely represented
by low price.
As a result
of upping its customer service and improving its website experience Ryanair is
now shifting its strategy and marketing budget to focus on more brand-led
campaigns as they seek to attract a less price sensitive wider audience. Such
improvements include cutting some fees, introducing allocated seating and
offering a grace period where people can make minor alterations to bookings. O’Leary
himself has even gone on a charm offensive aimed at addressing its poor reputation
for customer service. “We want to people to like flying with us not just for
the savings but also because they like us,” he says. As U-turns go it’s a
biggie, however Ryanair have rightly taken the approach of putting the delivery
in place before driving awareness around the ‘promise’. A canny case of credibility before
visibility.
Smart
brands are flying high
Brands that
put customer experience at the heart of their strategy lead the way with hard
evidence from Forrester showing that a focus on creating great customer experiences
far outperform the laggards in terms of total return.
This is supported
by further research evidence from
Accenture:
‘UK consumers are unimpressed by brands’ customer
service in digital channels leading 53 per cent to switch brands in at least
one industry.’
It also estimates that the UK’s ‘switching
economy’ – comprising the revenue from consumers who leave one brand for
another each year – is worth £116bn, or 12% of UK consumers’ annual disposable
income. This is partly the result of companies focusing marketing efforts on
bringing in new customers rather than seeking to retain the ones they already
have.
Accordingly,
36% of consumers rate their loyalty towards brands as 1 to 3 on a 10-point
scale, with only 16% rating it from 8 to 10.
Coming back
to airlines, in Australia the
Promise Index, which measures
whether a consumer’s experience exceeds their expectations, placed Air New
Zealand (ANZ) joint top in their findings. It found that value for money,
creating a customer experience and being empathetic to customer’s specific
needs are what counts when it comes cultivating consumer loyalty. ANZ’s commitment to customers is reflected in
their company values which state
‘We
serve all our customers with the belief that if we can make them smile or enjoy
their day, it is such a privilege to us.’
Not
unexpectedly, ANZ recently reported a 29% rise in interim profit before tax
outshining other airlines in the sector. Perhaps another reason why Ryanair is
belatedly beginning to taking notice?
It’s the age of the customer
As
Accenture says, today the
journey is continuous because the touchpoints consumers are exposed to are ‘always
on’, and customers can constantly re-evaluate their purchase options. In what they
call the “Nonstop Customer Model”, it is easier for customers to compare a
provider’s promise versus delivery, and how the overall experience matches up
to their own expectations. Furthermore
they say that companies that play to win recognise that today’s customers will
define their own experience based on their personal expectations and needs.
More
companies are waking up to this fact.
The SODA Report 2014 asked companies to identify the ‘single most
exciting opportunity for 2014’. The highest ranked response was ‘customer
experience’.
For an
optimal customer experience, I’d suggest companies need to ensure they have a
deep understanding of human behaviour, harnessed creatively with the right technology
and aligned to a flexible and responsive culture with an emphasis on ongoing
testing and learning. At
we are
experience we’d go further to suggest it’s not enough to just deliver a
good product or service experience at an operational level (such as airplanes
running to schedule). Instead to prosper in the longer term, companies must
seek to raise customer satisfaction through the roof with forward thinking ideas
that enrich the overall experience and disrupt conventional market norms
(such as when ANZ
introduced the world’s first lie down economy bed in 2010).
For brands
still faking it, now is the time to step up.
After all a shiny turd by any other name is still a turd. Surely it is
far better to invest in polished diamonds by creating products and services
that are worth talking about and delight consumers.
(Extract of a blog originally posted on the service design consultancy we are experience website - http://www.weareexperience.com/).