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Breaking free from the data silos that shackle customer experience

In the business of delivering better customer service it is well known that a silo-driven approach to the main touch points of sales, marketing and service is counterproductive.  Over the last few months, having spoken to many online retailers for a new project,   I have seen a parallel in the world of delivering a better customer experience – or more precisely understanding the experience you have delivered so you can make it better. 

Most online retailers collect their customer data in silos.  They have reams of data off the web site, they get feedback from their third party delivery companies on fulfilment and they get customer satisfaction data off their post-event forms or emails.  All useful in their own ways but they don’t give a picture of the individual customer’s journey or experience. If you don’t measure it you can’t understand it and so you are going to struggle to improve it. 

What about those silos?  I have seen web site managers flicking through reams (yes, it was usually printed off) of paper.  But one of the big problems with this very detailed web data is it tells you what visitors have done but you have to infer information about why they’ve done it.  With post-event satisfaction surveys you tend to get data from either end of the happiness spectrum. Whereas the majority of customers are usually either slightly happy or slightly unhappy and tend not to respond. But unless you understand this single biggest group you are never going to move them up the happiness scale. 

Also ask yourself why you are collecting information and what are you going to do with it.  Satisfaction ratings are a top level measurement of past performance but they don’t tell you what is driving performance – it’s  a bit like trying to reorganise the defensive line of a football team at half time in a game based on their final league position last season.  

Because this customer data is collected and stored in solos it is coming from three different groups of customers so it is inconsistent.  This means it is impossible to link together to get a picture of the customer experience or journey across multichannel interactions. (There is another point here about measuring and so treating customers as individuals and not as socio-demographic groups but that’s for another blog.)

The best way to break down these silos is to follow individual customers as they experience the different channels.  As you do you’ll find many will have largely good journeys and you can identify what they qualify as a good experience and so you can deliver it more often and a few will highlight where problems occurred so you can address them. 

And don’t forget to ask the three key questions that will allow you to understand the outcomes of the customer experience: how satisfied were you?  Would you repurchase from this site? Would you recommend this site to friends or colleagues?  Armed with intelligence you can target your improvement programmes.

It will also give you an idea of the weighting of how serious an issue it is for a customer i.e. is a call centre issue more significant than a web site navigation one in driving poor recommendation levels.    You will gain insight into the “why” customers do things as well as what they have done. 

Use this actionable intelligence to feedback into development and you will improve your performance for the silent majority.

The five big questions for all online retailers and how to answer them.

Those questions are:

  • How satisfied are my customers with their total web site, delivery and after sales service experience?
  • What is our customers’ reaction to their experience and how will it affect future sales?
  • Do I know where our processes let us down with our customers?
  • How much better or worse is our competitors’ customer experience?
  • Who is the best in class and what makes them so?

These questions were defined during the research phase of a major new initiative for the UK’s eRetailers I have been working on and which has just been announced called the Index of Customer Experience.

This new annual programme is aimed at helping online retailers increase sales and reduce costs while boosting consumer confidence.  ICE tests, measures and quantifies the customer experience right through the purchase cycle: from log on through delivery and on to after sales service.

As all our research subjects acknowledged one of the key differentiators  in the online retailing world now is customer experience.  Positive experiences engender loyalty and recommendation; poor ones can ruin a brand’s reputation and lose you some market share at the speed of light in the world of social media. But the experience is governed by more than just the web site, it is also affected by the delivery process and any subsequent service inquiries the customer may have.

As an independent customer intelligence and opinion based research programme, ICE 2010 will produce actionable feedback to help eRetailers improve sales and competitive differentiation while also reducing cost.  It will help them understand how that experience affects the customers’ likelihood to repurchase and/or recommend your brand to friends.  It will allow them to benchmark themselves consistently and fairly against their sector. 

And, through an extensive award and promotion campaign, the ICE and its badge of honour will also heighten staff engagement and, I believe, will increase consumer confidence in online retailing.

I am particularly pleased that this initiative is being fully endorsed and backed by the online retail industry’s association, the IMRG.  Managing director, David Smith said: “This bold and original initiative supports our aims of helping individual performers raise their game and also boosting consumer confidence in online retailing. In future the customer experience will be the key factor in winning and keeping customers. ICE provides a unique and consistent measure to help businesses manage and develop their own customers’ experience.”

The programme is also endorsed by the Institute of Customer Service.  Its chief executive Jo Causon said: ‘The Institute of Customer Service is pleased to support this initiative which alongside our own UK Customer Satisfaction Index brings a further customer-centred focus on how organisations are performing in customer service delivery and importantly helps identify which parts of their delivery needs to improve.”

eRetailers are going to have to substantially raise their game and to do that they need to understand what the customer experiences not just what they offer to the customer.  And I believe ICE can help them do that and I’m looking forward to making it happen.

Personalising the faceless transaction is key to winning online business

April 12, 2010 Leave a comment

There was an interesting statistic last week from the Office for National Statistics that said for the first time more than half of the UK population has bought something online.  Frankly I was a little surprised that by now  it was still only half but then that is probably my fault for living in a tech bubble and forgetting that so many have yet to be touched by the eCommerce revolution. 

However what it also suggests to me is that there is still a huge amount of growth still to be had for eRetailers – above the 15% pa they are currently experiencing – as existing buyers get more confident and more and more people join the party.  So there is a great opportunity but also a great challenge as the honey pot attracts more and more competitors. 

The big question is how do you make yourself stand out on the web – or why will the consumer choose you, keep coming back to you and recommend you to their friends?  The days of technical innovation on a site while not behind us yet are unlikely to make a huge difference so it has to be something else.

No, obviously the answer is around the service you provide and the experience that the customer takes away – pretty much like in store retailing really (and don’t forget price IS a part of the experience).  But unlike store retailing, online the transaction is faceless and impersonal.   Your best customer could be online and you may well have no idea who they are, what drives them, what repels them.  If they stay, great; if they go why? How can you possibly win them back?  In a flash they are gone and you have no understanding why.   Interestingly you also have no idea why those other customers are staying but if you did know why then you could do those right things more often. 

I discussed recently why personalisation is important  over routine “hygiene factors” in making the positive difference to customers but there lies the rub – how can one personalise a service to a customer when you don’t know who they are.    Your analytics and other clever software systems will tell you what they do on your site, not why they do it?  Nor will they tell you what their reaction is to that experience and how that will affect their propensity to repurchase or recommend.  Nor will they tell if the delivery agent was surly, the packaging damaged or any number of things that could go wrong with the fulfilment.  Nor will they tell you when the customer phoned to ask for explanation that the agent in the call centre was considered surly and inattentive.  But now the customer may well have gone for ever even after a successful online experience.  

Will pure play online retailers have to have a high street, bricks and mortar presence as a way of establishing customer relationships and securing brand values?  Possibly not if they can find a way of personalising (and always improving) the online experience.  Will all retailers doing business online need to align their channels so they present a consistent brand and customer experience across all touch points – absolutely certainly they will.