Stop Wasting Time on Making CX Frictionless

“Good night Clarence I had a truly w o n d e r f u l evening,” Alabama said on the steps of her front porch on a beautiful August evening.

They had just had a lovely dinner at a fancy restaurant and then enjoyed some live music afterward. The full moon glowed on the couple as cicadas quietly chirped in the distance.

Clarence looked down nervously, anticipating this first date moment of truth and carefully planning his next move. He gathered his courage and his breath and then went for it.

“Alabama?” Clarence stammered as he looked deeply into her eyes.

“Yes, Clarence?” swooned Alabama.

“On a scale of zero through ten, how likely would you be to recommend this date to a friend or relative?”

Sound ridiculous? It is, yet we subject our customers to this kind of non-thinking metric abuse much more often than we should.

That’s not to say measurement isn’t important. It is and is largely responsible for me making my mortgage payment and beer budget for the last 30 years. However, so much time and energy is spent on measurement, I have concluded that most Customer Experience (CX) programs are lacking something else very important.

In Praise of Measurement

One of my favorite management gurus, Peter Drucker, was reputedly fond of saying “only what gets measured, gets managed.” And managed the customer experience has been over the last 50 years, all too often focusing on metrics vs. true outcomes. Most CX programs (many of which are really Voice of the Customer (VOC) programs) focus on asking customers about their experience in very specific terms. They ask how promptly you were greeted or how well was the representative able to answer your questions or resolve your issue. As such, that level of detail has been often the main focus.

While there is a place for the details, perhaps we are being too atomistic and reductionistic in our measurement. I have conducted thousands of ‘driver analyses’ where the independent variables were aspects of the experience (e.g., prompt services, comfort of blah blah blah) where the dependent variable was some form of “overall experience” or “would recommend”. Most of these models come up short on explaining the variance in these outcome measures, even with the benefit of mono-method measurement bias. Why is that?

Attributes vs. Experiences

Imagine for a moment designing a traditional VOC measurement to evaluate your partner or romantic interest. You might provide a rating on attractiveness, witty repartee, intellect, and so on. Does such an approach really provide a good measurement of your interest and attachment to that person? Would it be predictive in continuing the relationship? Probably not. In that scenario you are measuring attributes of your romantic interest, not the experience that you had with them and what makes you look past dirty dishes in the sink or dirty socks left on the floor and instead remember those piña coladas together at O’ Malley’s.

The truth is, most VOC programs are compliance-driven and operate just one rung above mystery shopping programs. While those mystery shopping programs can tell you, with some certainty, is if the bathrooms are clean, and today’s orthodox VOC program will tell you if that cleanliness was pleasing to the customer. What neither of them does is tell how to create an amazing memorable experience in the first place.

Revisiting “Quality”

Noriako Kano (1984) addressed this issue nearly forty years ago with the method now known as the “Kano” model. Building on Herzberg’s (1959) two factor model, he had four “satisfaction drivers”: must-be, attractive, one dimensional, and indifferent. 

“Must-be quality” or “Basic Needs” are those things that we are disappointed by if they are not there (such as a car not turning on). They do nothing to make us love the experience if it is there. They are expected. “One dimensional” quality as known as “Satisfiers” have a linear relationship between satisfaction and the attribute. For example, as price decreases satisfaction increases. “Indifferent” drivers are those that are largely irrelevant to the customer and so, therefore, has little influence on consumer behavior (loyalty or otherwise).

The final dimension is what Kano called “Attractive Quality”. It has also been referred to as “delighters”, these are the unexpected things that happen that make the experience exciting.

Given “basic needs” are satisfied, the “delighter” measurement dimension was seen as the holy grail amongst VOC folks. While you are unlikely to revisit a hotel with no electricity and a lukewarm shower, it is hardly going to make you want to come back just because when you turn the light switch on it works and the water in the shower is warm enough (“must bes”). Also, you can only get the pillow and sheet so soft and get the price so low (“satisfiers”). So “delighting” customers became all the rage. But the measurement of this became somewhat of a challenge.

VOC’s Eldorado…

Delight is after all, by definition, undefined so you can’t exactly put it on a survey. It’s that surprise that you didn’t expect. Some folks tried just measuring it directly, but that tends to be an awkward method and probably does not capture the true essence of delight. For some reason asking, “On a scale of 1 to 10 with 1 being undelighted and 10 being truly delighted, how delighted was the experience today?” doesn’t seem to cut it. Others have tried a more organic approach by asking open ends about “most memorable” experiences to limited success.

The true problem in measuring delight in this fashion is that it cannot be measured at the atomistic level nor should it be measured as an attribute, but as an experience as a whole. In fact, I don’t think you can directly measure “delight” at all. You must create delight, not be preoccupied with measuring it.

While traditional CX metrics have a critical role in assessing the success of these experiments, as an industry we have become too dependent on fixing problems versus creating experiences. You’re not going to frictionless your way to creating memorable “peak” experiences. While you could probably capture what happened via voice to text and text analytics, the only way to measure it really, is as a behavioral intention or business outcome.

Designing Experiences

As an industry we need to put less emphasis on compliance and incremental improvement and more focus on experience design. Sure, we still need to monitor how the experience is going, but are you going to really differentiate your brand by having really clean bathrooms or really soft pillows. At some point, there are diminishing returns. We need to think bigger.

Thankfully, traditional product development research techniques combined with more human-centered design thinking approaches can move us from compliance to creation. It starts with understanding the current customers (and their manifest and latent needs) and their current customer journey. While we can look at the current journey and say “where can we reduce ‘friction’ points?” that will only get us so far. Are you going to really win people’s hearts by spackling over annoyances? You may well just be created a frictionless but also boring experience.

In their excellent book The Power of Moments the Heath Brothers (2017) talk about this concept extensively. They talk about ‘building peaks’ rather than ‘fixing potholes”. The idea is that customers remember the awesome stuff and that is paramount in creating amazing experiences (and returning customers). They don’t remember the long lines, humidity, and bad smells of Disneyland, but do remember the 16 minutes on the Pirates of the Caribbean or the 3 minutes riding Space Mountain. Experiential time, it turns out, is not proportional to the actual time. 

Of course, no amount of roller coaster rides or pictures with costumed actors will make up for the spoiled chili dog that made you wished for mercy from above, but the point is, just removing ‘friction points’ makes Jack a very dull boy. The Heath brothers provide many fine examples of reimagining the experience from the first day on the job journey or the Popsicle Hot-Line at the Magic Castle Hotel where guests can order a popsicle free of charge delivered on a silver plate. That’s where experiential magic lays.

This really is the essence of moving us forward in customer experience. We should focus on creating, prototyping, and deploying minimal viable product experiences rather than getting mired down in the measurement of atomistic attribute benefits of products and services. There is a larger Gestalt here.

Where to Start?

This can start with what Farhad Manjoo (2003) of the Wall Street Journal calls the Andy Rooney business plan. It goes like this: “first, find the most annoying, obvious problem that millions of people deal with every day. Then ask if things really have to be that way.”

If you pay attention, these opportunities are everywhere.

  • Does landscaping equipment (i.e., leaf blowers, etc.) need to be so loud?
  • Why is health care and insurance in the United States so bewilderingly complicated?
  • Why do we need professionals to help us with taxes?
  • Why do we need to drive to a giant warehouse and go down aisles to put a can of beans in our cart that are identical to 50 other cans of beans on the shelf?
  • Why do I need to drive to work every day, only to sit behind a computer most of it?
  • Why does higher education have to be a pursuit where the professor lectures and the students listen?

Sweat the Small Stuff

Changing a classroom and changing an organization are magnitudes of scale different. If you are feeling like experiential design is a monumental task requiring immediate large scale organizational change, let me allay your concerns. While organizational commitment to change is a pre-requisite for improvement, these changes can be made over time. Large scale change needs to be made in a series of boot-strapped successes (or at least learnings) building on one another.

Second, little things can have a big impact. An unexpected box of chocolates or 6 pack of local beer for hotel or Airbnb guests can create an inexpensive and memorable surprise for guests. A cook inviting a young aspirational chef for a quick tour of the kitchen in an upscale restaurant, or perhaps even the wink of an eye from a professional athlete to fan can make a huge impression. You can’t necessarily plan all of these experiences, but you can select, train, and empower your employees to do so. Experiences aren’t necessarily designed; they are, many times, improvised with customers in a shared experience.

Learn by Doing

While a bias for experimentation is important there are circumstances where that proposition is too risky. Funerals, weddings, and emergencies are probably not good times to experiment with new concepts ‘live”. In these cases, or if you simply don’t want to rush into just “doing”, you can adopt a more conservative approach by conducting concept testing first. Good ole fashion experimental design and storyboarding can go a long way in ironing out the kinks of a new way of doing something and mitigating the risk with customers.

While traditional CX metrics play a critical role in assessing the success of these experiments, as an industry we have become too dependent on fixing problems versus creating experiences. You’re not going to frictionless your way to creating memorable “peak” experiences. We need to figure out where those underlying needs and desires are and then use our creativity to enable and create experiences that keep customers coming back again and again.


Heath, C. & Heath, D. (2017). The Power of Moments. Simon & Schuster.

How to Build a Successful CX Program

Much has been made about the lack of progress in CX and the impotency of ‘Insights’ in making a meaningful difference to the business. That lack of effectiveness isn’t for a lack of effort or investment. Markets and Markets predicts that spending on CX will balloon from $8.5b in 2020 to $14.9b in 2025. There are millions of ‘CX’ programs out there…but it seems only a precious few seem to really move the needle. According to a study by Acquia in 1999, nearly half of all customers globally said that the brands they engage with don’t meet their expectations. 

While there are certainly many reasons, I think the blame for this failure may rightly lay right at our own doorstep. I am often asked to recommend if there is a good ‘starter’ manual for CX for those interested in learning more in the field. While there are many excellent books, programs, and classes that help neophyte CX professionals become more acquainted and skilled in the tactics of being in the field, I have yet to find a good definitive ‘how to’ guide on building one from the ground up. Many of the ones that attempt it, seem to get caught up in cool frameworks, principles, ‘best practices’, concepts without getting down to brass tacks; how do I practically build one? Those wanting to build a greenhouse, don’t want ‘best practices’ in building one, they want an actual plan so they can build one[i].

To fill that void, I decided to write one (on building CX programs, not greenhouses).

I hope in some small way, my upcoming book “The Customer Experience Field Guide: A Practical Manual for Getting Things Done”, will help those struggling with getting started (or reinventing their program) and help our efficacy challenge. In the book, I lay out a step-by-step process on how to get a CX program up and running from the ground up. Based on the unapologetic cribbing from my many amazing colleagues and my own experience in building these programs over the years, I broke the “Playbook” into three major stages: PlanKnow, and Do.


In the planning stage we have three important steps. First for any organization starting their CX journey getting organized and coordinated from day one is important. Provisional and permanent governance will set the stage for moving forward, eventually working my way to a discussion of the heralded Chief Customer Officer. While others have done a thorough job on discussing the topic, I tried to also advance the topic a bit by exploring the role of the CCO in the context of a larger group dynamic. It usually takes a team (whether part or full time) to make CX efforts move forward.

As Ferris Bueller once said, “life moves pretty fast. If you don’t stop and look around once in a while you might miss it.” While not discussed much, in planning your customer experience revolution, it is good to heed Ferris’ advice and look around at what is going on by examining both what the competition is doing and what others are doing in other industries. For example, if you make bowling balls, maybe look at what other ball makers are doing…or what other “lane sports” consumers are doing. Explore the trends and potential disrupters. It’s fun and informative work and can be a great inspiration to both motivate folks and draw inspiration for CX design work. We call this an environmental scan and it is a combination of secondary and observational research sometimes supplemented by expert interviews. 

Also, in standing up CX programs sometimes overlooked is the art of communication. Getting off the block right with a holistic, inspiring, and comprehensive communication plan can make or break a CX program as it signals to the organization how serious senior leadership is about the effort. A solid internal communication plan should be run much like an external campaign focusing on the areas of education, excitement, and engagement. Even great content gets overlooked if not marketed well.

I’ve seen the “Plan” process in real-time several times and it always follows roughly the same flow. Take for example the rapidly growing Midland States Bank. The C.E.O., Jeff Ludwig, and the President, Jeff Mefford had a hunch they did fairly well on CX, but they were on an acquisition spree and had no on-going formalized method to get concrete feedback from their growing customer base. They tapped Aaron Rios, Head of Operations, to get the ball rolling quickly set up governance and a series of actions of teams.

Provisional governance was composed of people from across the organization representing marketing, operations, human resource, retail operations, call center, and other areas across their business units. They selected Curiosity to help with their overall CX playbook, provide advice on internal communications and structure, as well as their metric strategy. As of this writing, they are in the process of deploying VOC metrics across the organization by business line and already generating value from the feedback they are getting on an ongoing basis.


This section has traditionally been the heart and soul of most CX programs, so much so that for some VOC and CX are used interchangeably (they are not the same thing). We use quite a bit of ink on this topic blending traditional market research principles with design thinking approaches. 

First stop in this process is understanding the market. No one has ‘one’ kind of customer; by understanding differences amongst groups and individuals you can further fine-tune both your products and communications. Even Customerthink has many different readers; folks from VOC, Call Center, Marketing, Technologists, and so forth. Understanding their difference (and similarities) is key to designing and delivering a good experience.

Partitioning the market by common needs is achieved through the orthodox market research methodology known as consumer segmentation. With that in hand, we turn to a more traditional topic in CX; Journey mapping. While familiar territory our approach is a bit different than others in that we incorporate segmentation into the methodology and philosophically view Journey Mapping not only as a way to understand the customer’s points of pain and opportunities but also as an organizational change catalyst. The act of getting folks in a room from disparate areas of an organization and working on journey mapping initiatives can result in magic for moving the organization forward.

One initiative we worked on for a grocery delivery initiative brought together at 7 departments from across the globe. Working together on the initiative from the eyes of the customer created many ‘oh wow’ moments in understanding what others were planning for their portion of the project. In essence, it helped everyone see the whole elephant and mitigated many missteps in the limited market launch.

We also spend a fair amount of time talking about metric strategy and architecture. We answer questions such as: What is a relationship study? What is a transactional study? How should they be organized and harmonized? What about text analytics? How does text analytics fit in? These are all questions we address in great detail through my usual juvenile parables and non-sequiturs.

Many in hospitality use basic segmentation well in their VOC programs. They look at business traveler vs. pleasure travelers and distinguish amongst their gold and platinum customers vs. those who just stay occasionally. In many cases, a small loyal base can make up the majority of the volume, and this happens often in hospitality. Splitting out your sample to understand differences in both needs and evaluations is not only motivational for your front line operators but also critical in knowing what assets to allocate to improve the customer experience.


Probably the most neglected aspect of CX is, ironically, doing anything with all the great information generated. Why? Because it is really hard, and it can seem almost overwhelming to unjam an organization stuck in well-worn ruts of the organizational inertia of we’ve-always-done-it-that-way-ism.

We lay out an approach, called AgileCX® whereby change can be enacted through a series of small incremental experiments that can be run in parallel. After all the fork didn’t arrive as is in its current form out of thin air, it started as a two-pronged stick and evolved through iterations of refinement and improvement to the four-pronged wonder we take for granted today. 

We can run these experiments in the petri dish of market research concept testing or just jump right in and start messing with stuff in isolated corners of the market. This process consists of four simple steps borrowed from Design Thinking and software professionals everywhere. First, frame the problem; ensure you are solving for the right problem. People (and I noticed anecdotally especially guys) love to ‘fix things’. It takes some discipline to hold back and really identify the problem and get alignment. Not doing so can result in rework or quite possibly in failure.

Next, we dream. Brainstorm and document it. We can generate thousands of ideas for a problem, most will be bad, but a critical few will be good. We only need one. Then we move to the prototype stage. Why develop a full-blown product when you can explore a basic prototype or even a mocked-up concept for feedback? While many think of a prototype as a physical object, it doesn’t have to be. Food trucks are excellent prototypes for full-blown restaurants. Blogs are great prototypes for books. Meetings are good prototypes for conferences. Finally, you build something and then tweak it ad infinitum.

Recently we have been engaging more and more in helping brainstorm solutions. As my friend and colleague Greg Iszler commented “rather than leaving the client with a folder of problems uncovered in the research how much better would it be to leave them with a folder of solutions!” I really think this is where the emphasis needs to be placed more squarely rather than worrying about scores and return rates. Besides, it’s more fun.

Your Thoughts

While still in the editorial process I am excited about the new book and also would encourage your feedback. I hope to provide a useful go-to reference guide for the practitioner. What do you think? Did I miss anything? What would you like you or your end clients like to know more about? I am interested in your feedback and am passionate about moving efforts from an emphasis on a study of the problem, to an emphasis on creating great solutions to improve the customer experience.

[i] If interested, here is an excellent plan for building a greenhouse.

A Holiday Challenge: Experience the Day

Christmas used to be my favorite holiday. I remember it as a day of giving…or if I am honest with myself, a day of getting. As a child, I remember getting up early and trying not to look too anxious waiting for the wave after wave of gift mania to wash over our household. Grandma, then Friends, then topped off at Nana and Pop’s house Christmas eve. As a child that’s what you are concerned about. Stuff.

As I grow older, I look forward to simpler things. Things I used to hate I now enjoy. I no longer dread a five-hour car drive or just doing nothing on a rainy afternoon. I don’t mind futzing around an antique store or dreaming up things to build on a scratchpad. I try everyday to make an active choice to try and be present with my family, even though I often failed at that goal. 

That’s why Thanksgiving is now my favorite holiday. It doesn’t have anything to do with Native Americans, Turkey (the bird or the country (no offense Funda)), or burying a piece of fish on a kernel of corn. I enjoy Thanksgiving because it is a time when you can fully concentrate on yourself and those around you. It is, in essence, the quintessential experiential holiday. Notwithstanding the Canadian version, it is somewhat ironic it that it is a uniquely American holiday.

America the land of stuff. The land of things and status. The latest gadget. The newest game. The latest fashion. Ugg boots. 

Amidst this maelstrom of materialism sits this 24-hour period of reflection and introspection in the eye of the storm between candy and stuff. Hats off to retailers who restrain from tempting customers and allowing their employees a day of rest before the hectic holiday season.

Thanksgiving is a time of family. Of old traditions and political arguments. It is a time where people, for just maybe even a day, forget about their own bullshit. For just maybe a 6 second prayer or moment of silence holding drunk Uncle Mike’s hand, people think of others. We remember and mourn those who were here last year and are no longer at the table. We spend just a bit of time considering our own unique assets versus a focus on what we don’t have. Many have the ability to look at their own situation and think, ‘god damn, I have it pretty good’. Because by and large most of us do.

I like this time of year. I like zenning my brain out. Maybe taking a run. Maybe playing Monopoly or Risk with friends and family. I like re-connecting with myself and with others. I like sitting on the couch on the cusp of a long-forgotten feeling; boredom.

As I get older, somehow my parents get wiser. Quiet observations my mother made oftentimes now hold the profundity of Yoda. I think the same can be said for our society as a whole. We should look to our past for guidance in these days of kinetic impulsiveness and sectarian angst.

There was (and is) a reason for the downtime of Sabbath beyond spiritual observance. Those long-bearded guys in the desert knew that people needed a break to be mentally healthy. They thought, perhaps rightfully so, that break should come weekly. The Amish shun technology not because they are Luddites (well they are I guess), but because they believe it gets in the way of family. It puts things between people. Between relationships. 

The protagonists of Thanksgiving, the Puritans, regarded things as an abomination to God. In their view, it put something between them, and their creator. Perhaps one the worst forms of idolatry took the form of the gold coin.

While I won’t be contemplating what particular patina of black to put on my buggy or to forsake shellfish anytime soon, I will say those ancient belief systems make an important point. It is, in fact, a gift to be simple. To just take it in for a bit of time. To take a mental time out. To be here.

So, if only for a day, take a step back. Look at your life and relish it for what it is. Stop texting and for god’s sake stop looking at LinkedIn. 

Mop up the experience of today with the fervor of that croissant roll in that turkey gravy mash potato mess you made on your plate. Fling a spoonful of cranberry goo at cousin despite getting a rash of shit from your mom. This is what you will remember in the days and years ahead.  In short, experience the day…and if you can… every day after that.

Pax vobsicum.

Unboxing: The Forgotten Gift in CX

It was Easter morning. My wife always tries to make things special for our two little girls. Today was no exception as she prepared to have her favorite chocolates delivered in advance to our home all wrapped up as a big surprise.

Easter morning our chocoholic girls (9 and 11) bounced down the stairs to tear open their Easter baskets. They ripped through the packaging to reveal the content of the box.

“Gross! “said my oldest opening up the box.

Her wrapped chocolate set look like the Vulcan from Star Trek who had a transporter malfunction. It was one melted mess. 

“Ack!” said my youngest. Same melted mess.

My wife looked utterly devasted. I realized the store screwed up, but I didn’t know how bad they screwed up in the eyes of my wife. To me it was melted chocolate, to her something much more profound.

For her there was meaning behind this brand of chocolates. They were connected to her childhood memories of when her rather health-conscious Aunt and Uncle gave this same exact same high-end brand of chocolates as a rare treat to her during a difficult time in her life.

The melted chocolates were symbolic of a special and emotional moment in her life. One that was sullied by the molten mess before all of us that morning.

When it comes to out of the box experiences you can’t un-ring the bell.

Great Boxes and Broken Boxes

Many companies unknowingly completely blow it through just plain neglect. This results in disappointment, lack of use, and in some cases, outright defection from the brand.

It’s a shame, as this is a critical moment of truth that when done wrong can flush millions of R&D, marketing, and distribution efforts down the drain with one wrong mishap.

The “unboxing” experience has long been well researched and respected in CPG, but much less attention has been paid in other industries. Apple is one of the masters of the unboxing experience. Their packaging looks high-end, it is simple, and you are up in running very quickly after opening the package.

Others such as Stitch Fix make the unboxing experience the experience; even more prominent for some customers than the contents of the package. Perhaps not accidentally, this also creates a nice social media buzz and free media.

The unboxing experience is not relegated to hardline and softline goods, but can also be applied to experiences. Disney Resorts does a fantastic job of getting their guests excited for their vacation by providing a Welcome Package


Other verticals have floundered. For example, it is not unusual to buy a $50,000 automobile and have it delivered with a 20-minute walk around tutorial from a salesperson with little fanfare, leaving customers confused and a bit let down. With the increasing amount of technology piled into a new vehicle, this can become a real issue in usability and adoption as well.

The most expensive items you will buy in your life — your education and your home — also can have a dismal on-boarding experience. Newcomers approach these large and complex purchases for the first time and must interface with a half a dozen different unique entities to complete their purchase. They are unsure of the flow or the people involved. Intermediaries such as agents and registrars can help, but even their oversight is inadequate in creating a seamless experience.

So, how do we make the out of the box experience better? Here are a few hints.

Do your Homework

This may surprise you, but I would recommend the first thing you do is try and really understand your customer. This involves two preliminary steps: understand your different customer personas and then understand their journey. For example, this is a generic and simplified journey for typical traditional college student.

Looking at this journey, first ask: How might this journey look different for those engaged in distant learning, for working students, and non-traditional students. Is it the same journey or slightly different? Are the steps the same or are their additional ones or ones that are skipped.

Secondly, identify where things can be made better by persona. Where can we eliminate ‘friction’ or provide an opportunity for the client that benefits both the University and the student. 

As I have written in the past, this does not need to be an arduous prolonged process. A good plan acted upon is better than a perfect plan that takes months. There are better and worse ways of doing this, but the main point here is this; get it done.

Reduce Complexity and Clutter

Which of the following packaging is more appealing to you?

I have asked this question at conferences all over the world. Guess which one people prefer by a 5 to 1 margin? It’s not hard, but it’s amazing how many very large companies are just plain bad at it.

Likewise, don’t just think about the appearance, layout, and information displayed, it is also about opening the package itself. Ever try and open a well-engineered blisterpack? While it does keep the product well secured, it is a maddening enterprise to open and almost an impossibility for the very young or the very old. It’s not only annoying, some estimate this clever packaging result in nearly 6,000 trips to the emergency room in the US every year.

Finally, think about waste. In this day of delivery and fear of damage during transit, there is a lot of packaging waste. How can you minimize the amount of packaging required? For example, do we really need to wrap up fruit when it is already encased in god’s own wrapper?

There are many good strategies for reducing waste such as using bio-degradable and recyclable materials. The best strategy to reduce waste, however, is to reduce packaging material.

However, keeping it simple isn’t limited to just product packaging and modulars, but also very much applies to websites. is infamously bad. While few approach Ling’s sensory onslaught, there a numerous UX experiences that certainly approach that level of visual mania.

When it comes to ‘out of the box’ or onboarding experiences, less is more. Figure out ways to very simply communicate how to people the information they quickly and effectively. 

While Cox Communications has some challenges in other aspects of their CX, I have found their installation guides to be simple and easy to use. This has the benefit of saving Cox the expense of sending a tech out to do something 95% of Americans can do and doesn’t require the customer to sit around waiting for that tech to show up in a 12-hour window. With available call in support techs, this approach likely reduced cost while increasing CX.

Always keep in mind the key question; what is the customer trying to do? Then make it simple for them to do it.

The Art of Surprise

One day I observed my then 8-year-old daughter spend about 6 hours watching other children opening cheap plastic eggs on YouTube. Besides mulling over the fact that I will never win the Parent of the Year award, I also reflected on the trance-like state it put my normally loquacious daughter in. She’s not alone, these short 5-10 minute videos attracted views in the billions. Billions of views of a low res, amateur video of other kids unwrapping eggs. 

What can we learn here?

First, we might conclude our society is going to hell in a handbasket. Setting that fact aside, we might also conclude that people really, really, like surprises. In fact, research shows that it is an emotional turbocharger, creating much more pleasurable feeling than when just presented with something pleasant that is expected. Why do you think you find so many people at the gambling table late at night in Vegas? It’s not just the free booze folks, it’s to get that one last gambler’s high feeling of winning. An unexpected blackjack or a serendipitous roll of the dice. That’s what makes Vegas…Vegas.

Ask yourself; how can inject that surprise into the out of the box experience? Put a pleasant variable element into your delivery. Some use a gift, but that’s kind of boring and really has no surprises associated. Why not do what stitch fix does and build the surprise into the offering. Own a lawn service? Maybe some customer randomly receives other ancillary services with having the overall cost structure built-in across customer to minimize risk.

At our AirBnBs, we throw a random six-pack of local craft beer for some of our guests…and local chocolate for others. They don’t expect it, and it’s a small expense…but it sets us apart in a highly competitive environment.

Consistently Deliver

An unpleasant surprise is equally unwelcome as we opened with. You MUST meet the minimum requirements for out of the box usage very consistently. Delivery services rarely lose packages but when they do, there is hell to pay.

Before working on simplifying packaging and creating surprises, you first must ensure that basic blocking and tackling is covered. Products cannot be damaged, they shouldn’t be late, and they shouldn’t be out of stock. Even small incidences of this can seriously damage a brand and the related deleterious consumer behavior consequences.

Thinking Out of the Box for Out of the Box Experiences

If you haven’t thought about how people first interact with your product or service, you should. First impressions are powerful and will predict whether you win or lose that customers business in the future.

There are many simple ways to make the out of the box experience better. From simplifying the process to making it more celebratory and fun for the customer. However, whatever you do, don’t screw it up and melt the chocolate. Good luck on your out of the box reinvention.

The Heroes and Zeros of COVID-19

With unemployment predicted to reach 30% caused by a pandemic of truly biblical proportions, panicked human beings are drawn to their basic instincts of fight or flight instincts. Stand for what’s right or retreat to what is easy. This instinct translates into the leadership of governments, non-profits, and for-profit organizations. The response by organizations have been varied as it relates to CX and EX. 

Author Robert McKee I think best sums it up the current state of affairs…

“True character is revealed in the choices a human being makes under pressure. The greater the pressure, the deeper the revelation, the truer the choice to the character’s essential nature”

Over the past few days and weeks, we have seen the true nature of many has been revealed. Some are surprises, most are not. Let’s take a look at the good, the bad, and the ugly as to how companies treat both their employees (EX) and customers (CX) during this global crisis.

We Do Need Another Hero

Sticking to their brand principles, Disney has prioritized guest health over profits. As an early mover closing parks and resorts before most states had even issued stay at home recommendations (much less shelter in place orders) the company is also readily refunding the costs of unused vacation pre-paids, such as resort reservation costs, prepaid meals, and special event tickets. The Disney Vacation Club has also proactively refunded any points scheduled for use during the closure period, which has now been extended to indefinite duration. The CEO and other top execs are foregoing salary this year as the corporation seeks to keep customers and employee’s whole, as much as possible. Email communication from the company has highlighted that they want to help their guests get through this hard time without having to call to cancel plans and request refunds. The proactivity and integrity are very much on-brand with the Disney resort experience.

Global retailing juggernaut Walmart has announced over $25 million in grants to frontline responders. As the world’s largest grocery store, they are relied upon by their 265 million customers who visit weekly to stay open and in-stock for their communities. Walmart has kept to its everyday low price (EDLP) policy and they also used their buying influence to ensure suppliers keep their prices from inflating due to increased demand. They have deployed social distancing floor decals in their store, provider “elder hours” to help older customers shop first, closed stores at night for thorough disinfecting, provides wipes and sprayers for carts and now are checking employee temperature every day as they report to work and making gloves and gloves available to associates who request them.

Amazon has delayed delivery of non-essential products, prioritizing products essential to health and wellness, such as medical supplies and household staples which are very important for homebound customers and those at greater risk of exposure in public markets.

Others are helping folks out financially by providing relief and avoiding defaults. For example, ToyotaFinancials Servicesis offering payment relief, lease-end support for current customers and 90 day payment deferrals for new customers. Hyundai, GM, Nissan, Chrysler, and Ford are also digging in with their own approaches to soften the financial blow and reduce defaults.

Most Internet Service Providers (Comcast, Cox, Verizon, etc.) have removed data caps and increased speeds for customers during this crisis since most customers are at home and the Internet is the primary avenue for work, education, entertainment, and social interaction during shelter-in-place orders. We live in incredible times when some of our most fundamental needs can now be satisfied by virtue of our ISPs.

In fact, most of the nation’s largest companies are reacting in a pro-social and responsible manner. provides a great wrap up of exactly what they nations “top 100 largest public employers” are doing for both their customers and employees.


The Ugly

On the flip side, we have seen some poor choices made by organizations in the context of this disaster. 

For example, many were critical of the Florida’s state government for being slow to close beaches to spring break revelers, potentially making a bad situation worse. Understandably the Florida economy (and especially the beach cities) are heavily dependent on tourism dollars. However, putting money over health may cost many people their jobs in the future and sadly for some, it will cost their lives. There is data to indicate that this decision may have also contributed to accelerating the spread of the disease across the nation as spring breakers return back home.

Hobby Lobby probably also did itself no favors, having reputedly have retaliated against its employees for speaking out it policies and staying open during epidemic. While closing down, there are documented cases that indicate the store continues to defy state-mandated lockdowns by reopening stores, unnecessarily endangering both customers and employees…and well apparently just breaking the law. While people do need toilet paper and food, Styrofoam shapes, hope chests, and pre-made birdhouses are not business-critical items. This PR will not help them when the dust settles.

While Amazon is trying to do the right thing by its customers, it looks like some of their employees have a different point of view. As of March 31st Whole Foods workers have walked out and demonstrating over lack of personal protection in the workplace. To make the PR mess a bit worse, the organizer of an Amazon warehouse walkout was fired. To some this validates Amazon as a great place to shop…but a horrible place to work. These incidents are not going to help them shake that reputation.

Likewise Instacart’s workers felt the company’s response to their safety concerns may have been a bit tone-deaf as a growing number of their workers are getting sick or risk of getting sick. Some of their workers are saying the company hasn’t done enough to safeguard them against the illness, prompting a walkout. Being ‘gig’ workers Instacart workforce are not afforded insurance and so getting infected makes them particularly susceptible to devastating economic and health consequences. They are demanding “hazard pay”, a minimum tip amount, and two weeks sick leave. So far, some of the demands have been made…but workers are still striking.

Another perhaps well-intentioned mishap is when Yelp and GoFundme started to auto-enrolling businesses into a compulsory fundraising campaign. While the intent is laudatory; trying to help local businesses being devasted by the effects of COVID-19, the execution was poor in that it did so by making participation compulsory for those same ravaged businesses and making opting out very difficult. A good idea poorly executed.

The Pivot

Some companies were able to adapt to the new situation; both keeping their employees…well …employed and helping to do social good in the fight against the virus. This obviously is the best solution…to find the white space and adapt quickly to new circumstances.

Ford, GM, GE, 3M, Chrysler and others quickly moved on the opportunity to manufacture Personal Protection Equipment (PPEs) like masks and respirators to supply front line medical professionals with necessary gear to continue safely treating patients.

Ever shrewd marketers, Hyundai dusted off their “Assurance Job Loss Protection” guaranteeing up to six months of payments for a new vehicle in the event buyers lose their job due to COVID-19. This creates peace of mind for new buyers and pulls forward sales that people might have put off until after the dust settled.

Anheuser-Busch is making and donating hand sanitizer, relying on the Red Cross to direct donations to reach front-line medical professionals where the need is greatest. According to the New York Post, “The sanitizer was shown in containers similar to those usually holding its beers — which also include Michelob Ultra, Stella Artois and Hoegaarden — and the tagline, “It’s in all our hands to make a difference.”

Making a Difference…Locally

You don’t have be as large as Amazon, Walmart, GM or 3M to make a difference. Just like every long journey begins with one step, every big and enduring change starts with just a few good people doing the right thing. 

You can see it right here in my local community in sunny Northwest Arkansas. For example, tiny distillery Fox Trail has quickly changed from making high octane booze to life-saving hand and surface sanitizer. Tiny Trash Creamery has been sponsoring free ice cream (at responsible social distancing) in exchange for donations which are donated to local charities battling the COVID – 19 epidemic.

Hang in There

It is comforting to see so many companies stepping up in these hard times. As a CX practitioner it’s wise to make the right decisions today for customers and employees versus ones based purely on economic gains or losses. It’s painful but customers AND employees will remember what you did (or didn’t do) when they really needed you. This is the very definition of how to create customers and employees for life.

The good news is everyone can do something and do it now. The other good news is that there will be an end to this pandemic. Judgment day will be here and you should ask yourself; will your company be judged a Hero or a Zero?

How to Measure Internal CX

Being an unusually warm Super Bowl Sunday, the citizens of the tiny town of Bentonville, Arkansas were out and about before the big game.

My daughters (9 and 11), always scheming for a way to score a buck or two, took advantage of the weather and downtown foot traffic to set up a lemonade stand. The venture took off immediately, requiring the youngest to produce more product and the oldest to eventually get more lemons.

While working together unusually well, I did hear grumblings from both sides on the inadequacy of their performances or the perceived in-balance of the workload. I generally try not to play referee but hearing from both sides I could understand their views. Afterall, you only see what you do not what others do.

Modern companies are not so different. We all have our ‘go-to’ person in some other part of the organization who gets it done and we all know that guy who never responds to emails. These underperforming areas exist due to lack of competency, tools, or resources. 

Under performing departments on internal CX are not only an inefficient organizational nuisance, they can also cost you customers. Long processing times, cumbersome and unnecessary red tape, and general unresponsiveness internally will also always be manifested in the front line not being able to serve their customers as effectively.

Wouldn’t your organization want to move away from internal performance hearsay and gossip as a method to gather this important information and get to a more disciplined and actionable approached? 

Measuring Internal Service Levels

Back in my days of working in organizational development (OD) we worked with a bank to conduct a survey of associates. While they had their normal employee engagement work, we also developed and fielded quarterly an inter-departmental survey. The results were then tabulated and sent back to each department as to how they did. It was also a point of discussion in business planning and used as a barometer of leadership competence. 

In the end it made everyone accountable for customer experience and was great way to bring it to the forefront of the culture. We made it very easy to complete and we did all the leg work in reporting. It also helped bring teams together in much the same way a hotel or other organization focuses on their external CX measure.

Interested? Here’s how we did it.

Step 1: Determine what matters in your culture

Each culture is a bit different in determine what makes for good customer experience. While various tools of yesterday year have been developed such as SERVPERF andSERVQUAL you really need to make it your own. You should try and have a standardized battery of no more than 5 questions in your survey. I generally recommend the following domains:

Easy to do business with – do other departments throw up roadblocks or is easy to get things done with them? Do they respond in a timely manner?

Domain Competence – do they have the skill set to do their job effective as a department and are they able to render internal services effective? Can they get done what they are supposed to getting done?

Empathy – do they treat me as an important customer and understand the needs from my point of view, or they focus on their viewpoint only in providing service?

Others may be things such as trust, value, quality, range of services, and relationship but if you ask something along the lines of three above you will get to core of what makes for a good customer experience in most internally. 

If you have to make it your own, so make sure these are dimensions are ones that everyone can live by. I usually recommend a series of short group discussions with different parts of the organization to get both the concepts and the proper language identified. It’s goal setting 101: if you are going to be held accountable to some kind of metric, it’s best to have buy in on what that metric is.

Step 2: Determine what the core deliverables are for your department

If you are in corporate accounting, you keep track of budgets. If you are in marketing, you help promote your company’s products and services. If you are in HR you are recruiting, selecting, onboarding and engaged in employee relations. You get the idea. Pick the big 3-5 deliverables for which your department is responsible and ask people to evaluate how you are doing.

You may also want to swap certain measures in and out as you experiment with new initiatives or services you are providing; or perhaps just how you are delivering. You want to maintain some continuity so you can figure out if you are improving or not, but there is some flexibility here to change and adapt to the changing needs of the department.

Step 3: Develop a Departmental Taxonomy

Not all departments interact with all other departments all the time, so it will be important to get a departmental list together. You will have some decisions to make. What level of specificity do you want to go to? Do you want to have corporate communications, digital, brand, product, and retail marketing all rolled up together or separated? The trades off are if you get too specific it becomes a vary burdensome survey for respondents. You go too high it becomes watered down. Generally, we find that units of 5 or more are a good rule of thumb to be a minimum and units larger than say 75-100 should be broken apart if possible.

Step 4: Decide if you want transactional or relational measures

In the CX world a transactional survey is exactly what it sounds like. It happens right after the interaction and asks specifically about that interaction. Relational studies, on the other hand, ask about things in general with the department. There is no one “best” approach, and in fact, in customer CX programs we often times do both, with the transactional informing the relational studies. 

How to decide? If most of your departments have a ‘beginning’ and ‘end’ point to an interaction or if they have a logical trigger, then transactional is going to be more actionable. Many times, that is not the case, and services are rendered on an on-going basis. In this case the relational approach might be better. If there are many small interactions, you may also want to go the relational approach to avoid everyone spending their days filling out surveys on one another.

Relational measures are generally done in waves. For example, in my banking example we did it quarterly. In the case of a transactional survey it down after the transaction; a completion of a report or project. The key here is making sure you are asking the right questions and not too often.

Step 5: Deploy

This is where you are going to need some technology. I would not recommend trying this with Google forms or freeware, you will get hopelessly entangled to the complexity of who to whom and customized content by area.

You will need a tool to conditionally display questions. Also, you need to do a sample load so you can tie back individual departmental responses and limit multiple responses from individuals. Paid versions of self-service platforms will fit the bill (AYTM, Qualtrics) if you want to do it yourself (like I said it can get complicated), or if you want to leave to the experts there are many out there (MaritzCX, Medallia, InMoment, Confirmit, Customerville, etc). Some platforms do both.

The general structure so be to ask about what departments with which individuals interacted. Then the general questions (from Step 2) and then the departmental specify question (from step3). You may wish to limit the number of departments they have to evaluate to ensure the survey doesn’t get too lengthy, but in many cases, you will find most people only interact with a handful of other departments, so this might not be a concern. You may also want to offer up a comment box where people can hand out praise or productive criticism.

Step 6: Analyze

Again, there are many great analytic platforms out there that can be used in the analysis of data. Typically, the best approach is through dashboards. Self-serve platforms have dashboards usually built in, or you can simply import it into Tableau or other data visualization platforms. The CX vendors all have dashboards pre-built with access level restriction built in to make it easy for you.

Step 7: Doing

This is the most important step. Taking the information and using it. This can be used as a rallying cry for the team to focus on a specific area. While there are many approaches to this, the formula that have seen work best is the following:

  1. Figure out what the right problem is to start with
  2. Determine what processes, resources, tools, and policies may be causing it
  3. Figure out who would be involve in solving it
  4. Get in a room with those people and brainstorm ideas
  5. Pick one, build an MVP, and test it
  6. If it worked great! If it didn’t was it 1) not the right problem 2) not the right solution, or 3) bad execution

Lemons into Lemonade

In the end my kids mopped up, even encouraging a neighborhood competitor to literally pitch their tent around the corner with a competitive offering (market intelligence reported the offering to be “too sour”). With only two of them it doesn’t really make sense to evaluate one another, but in much large organizational contexts where there are even low churn rates many people are leaving and joining the organizational daily. Getting a read on who is doing well and who is not doing well in delivering will help you understand both work flows as well areas for investment and coaching to improve their performance. This, in turn, will help your organization deliver a better experience to those who are paying the bills: your customers.

Making Hard Decisions in Hard Times

“We’re going home,” the President of the company said.

You could hear a flea fart in the room. We were 2 hours from going in to a major pitch with a Luxury Automotive client. There was literally millions of dollars on the line and we had spent weeks preparing. People flew in from all across the United States to participate and we were down to 11th hour…literally.

It was a sunny day in Los Angeles (as most are) and everyone was on their way to work. But this wasn’t a usual day.

You see, a plane had just flown into the some tall buildings in New York City, followed by another shortly thereafter. No one knew what was going on, but everyone was freaked out. The United States, was under attack from an unknown enemy with lethal intent.

As we were meeting they were grounding planes throughout the US. There were rumors of others that might be at risk. Was there one heading to Los Angeles? What else was going to happen? No one knew.

One guy did do the right thing. He made a moral decision on what was right and wrong,

“It’s not appropriate to pitch anything today” the President stated.

And with that he and about a half dozen other suits got in their car and drove back to St. Louis.

That man’s name was Tim Rogers and he was President of Maritz Research (now MaritzCX an InMoment Company).

What he did on that Autumn Tuesday in sunny Los Angeles made a lasting impression on me. Tim was able to rise above the buzz and business imperative of his own company and make the right call under high pressure…even if it meant him potentially losing millions of dollars.

Now we have another unknown enemy we are confronting. In the days and weeks to come, we don’t know what the future is and once again, most of America and the world is seriously freaked out.

There are many articles about the greedy and altruistic behaviors of corporations toward their employees and customers. I do think people will remember what people do in this time of crisis. They will vote with their wallets and their loyalty in the months that follow. So making the right decision is very very important in the upcoming days.

Unfortunately, the right decision is not always apparent. While you will not always know what that decision is, one hint is that it will be the one that is the hardest to make.

I often think of that day with Tim and what he did. I can’t remember if we won or lost that pitch or if it ever happened. What I do remember is admiring his ballsyness and leadership. Clients sensed it too, and counted on him to do the right thing.

The days ahead are when heroes are forged and villains are unveiled. COVID-19 will pass and humanity will emerge hopefully stronger and a bit more humble. What everyone will remember and judge, is if we, as leaders and humans, made the right decisions or the easy ones.

Here’s to good decision making in the days ahead.

CX Sh*t’s Gettin’ Real…

What the recent InMoment/MaritzCX merger means and what the future holds

Just a few days after it was announced that Confirmit and Dapresy joined forces, today venerable CX solution provider MaritzCX merged with Utah based InMoment. This has in essence created one of the largest, if not THE largest in terms of market share and revenue EFM provider in the space.

It’s no secret I am familiar with both of these firms, having worked in various positions with Maritz for over 13 years (including CMO) and partnered with InMoment in the years after my departure.

The MCX/InMoment merger is a bit different than others in that, to some extent, it is a merger of equals. Both with strengths and weakness in their own right, but in my estimation two culturally compatible entities with an industry foot print that is big-foot wide.

Having been around the CX block , I can tell you they make for a formidable competitor to the more recent disruptors Qualtrics and Medallia, not withstanding the excellent soirées they hold.

Are we done with EFM consolidation? I don’t think so, but we are getting close. The big players hailing from a call center heritage are Verint and NICE. Both also have been on a buying spree with Verint mopping up Vovici in 2011, then Opinionlab in 2017 and finally Foresee in 2018. NICE decided to swoop up NPS banner holder Satmetrix in 2018 too.

A few years back MCX itself merged with Allegiance and Empathica and Mindshare merge to form InMoment.

This was all done in a race to complete a successful “solution stack” in this space. EFMs are like Mexican food; it’s essentially the same ingredients combined differently. The first who can offer the best tasting, cheapest meal with the most variation wins.

That full product stack includes: dashboards, data processing (ability to crunch big numbers fast), cross platform connectivity (APIs), text analytics, social media harvesting, predictive analytics, data capture (fancy survey builders), installation services, and expert services.

All the current big players have built (Medallia), borrowed (Customerville & Clarabridge), or bought (Dapresy & Confirmit, Qualtrics & Temkin) their way to ‘full stack status’. We now have really cool state of the art locomotives. I mean these things are huge, powerful, and reliable. But they are locomotives.

In my opinion these waters are more red than an Arkansas Razorback football game and if we are honest with one another, they have been for quite a few years now. So what’s next?

Here’s what I think.

Qualtrics Provides Some Clues

First, we can certainly see in the tea leaves when SAP spent the equivalent of the GDP of Burundi on the acquisition of Qualtrics. I remember a friend of mine coming back from one their extravagant conferences and asking me “Dave, I don’t get it…they are just doing surveys right?” Surveys indeed. You would think they have created an anti-matter powered jet pack…but no. At the end of the day it is the same Mexican food, but presented really nice; buy something-get a survey-fill out a survey- report on the survey. That is the basic use case and has been for 50 years.

What’s different about the Qualtrics acquisition (other than sparking my fascination with tinted eye glasses) is that SAP has a pretty fancy CRM platform. Connecting EFM and CRM…wouldn’t that be cool. I’ve been talking about it for at least a decade, and it seems to be coming to fruition. That is part one of how to get us out of this Mexican Food Rut (although I do very much like Mexican food). CRM can help do more than prevent churn or send a carton of Bon Bons to a disgruntled hotel CAN MAKE MONEY. It’s not only about cost avoidance any more, it’s about revenue generation too.

Channel Changes

Email is dead. So much so, that I know some insight suppliers that are turning back to mail surveys to get opinions. The good news is that the fundamentals are still there; most people are inherently narcissists. They like talking about themselves and they like other people reading about their opinions. This is good.

Businesses are more thirsty than ever for the voice of the customer. They want to get smarter so they can win. Even stodgy old price leaders have pretty much come around to this realization. Customer has and always will be king. This is also very good.

What’s bad for us in ‘the biz’ is a majority of Americans have a fake email address for their ‘junk’ email and others use temp email approaches to get a gated contact, email is not a good way to do much of anything nowadays. If you get past that hurtle you have spam filters and even still…seriously? filling out a survey? The next CX conference or bar-mitzvah you go to get a show of hands from the crowd of how many people actually fill out surveys.

Unlocking how to get in contact with folks who want to be heard and giving them incentives to do so will be the key. SMS and Social Media channels show some promise, but I think it is much bigger than that.

Look to the Past to Find the Future

The largest prize to unlock is a very old one but still the most powerful. In the 1940s there was this fellow by the name of Kurt Lewin who said “hey what if we ask a bunch of people what they thought, took that information and made some educated guesses about what to do, and we just well…did it?” Thus the field of Organizational Development was born.

Companies who realize that technology alone will never make a difference and that it is really all about organizational change will win the day.

Having great golf clubs does’t make you a better golfer. Commitment and practice does. This requires a whole different set of skills that no one in the EFM space currently possesses in adequate quantities (well, I do know this one little firm in Bentonville…).

By change, I am not talking about making sure Dora got her large fries or that you were able to up-sell a cable package to an AARP customer. I mean meaningful structural change. This is very rare to witness in the current state of affairs; bringing together marketing and ops to provide one holistic experience.

To achieve enduring positive change involves working directly with organizations to help them implement change and helping them create the right culture, tools, processes, policies, products, and tools to make meaningful and permanent cross organizational change. It’s a hands-on very intimate approach that is akin to an agency relationship to an organization.

You cannot change your customer experience by correcting mistakes or cramming more stuff down their throats. Changing CX starts from within. Companies changes for the better or worse through the people who work there. The CX provider who figures out how to do this best…will win.

And for my friends at MCX and InMoment, I sincerely wish you the best on this new exciting page in CX history.

The Secret to Unlocking CX: Segmentation

“A FOUR, A F*CKING FOUR!???” I yelled at my smart phone.

I stared at the number in disbelief.

I looked at my wife who shrugged.

It was our first non-perfect score (4 out of 5) at our Airbnb and I was incensed. It got worse on the other ratings but thank god that only the overall was publicly displayed.

I took a breath and started reading. It had complaints about no live TV (we use only streaming in our Airbnb), the couch was uncomfortable, a lack of ‘grab bars’ in the shower, and ‘pricey’. I took a breath and then looked at the picture of our guest and then it struck me.

This isn’t our usual customer.

Our customers tend to be 30-50 somethings who are traveling to Northwest Arkansas to mountain bike or for business meetings. They tend to be affluent, active, and tech-savvy. Their priorities are ease of check in and check out, quiet, good parking, distance to city center and Northwest Arkansas’s trail system. We’ve had close to 100 guests so far and only perfect scores.

This customer who dared to give us a 4 out of 5 was 60 something older women from a neighboring town in Arkansas. She doesn’t watch Hulu, doesn’t mountain bike, and is apparently not too steady on her feet. What she does want is a comfortable couch, a low price, and the ability to watch American Ninja Warrior on live TV.

It was a mismatch thus our ‘low’ score.

This happens all the time. This is also why many syndicated studies that publish ‘lists’ are of limited value. If you served a meat lovers pizza to a vegan, of course you are going to get low marks. Young people want different things than older people. Families have different needs than singles. Mountain bikers want different amenities than pinocle players.

The Danger of Hiding Behind Averages

An old market research research joke goes… “on average, humans have one breast and one testicle”

This of course is true in the aggregate, but I wouldn’t call it an accurate depiction of human beings. To understand customers, we can’t view them a uni-dimensional, we have to understand individual differences and provide services accordingly. We also need to measure the experience in this way.

Unfortunately, the CX world has largely ignored this and favor of monolithic NPS and other “indices”. Using indices to mindlessly benchmark yourself to others is misguided. My favorite example of this come from the intrepid mystery shoppers at Pied Piper with their ‘Prospect Satisfaction Index’. In this study of auto dealers, they found that Tesla ranked dead that purported to report on which brands were ‘most helpful’ in shopping to customers. 

Here’s the problem, most dealerships jump on customers like they are the last slice of pizza after a Phish concert. This PSI index measures such things such as if the sale person asked about the customer about visiting the dealer website or if the salesperson had to get ‘best price’ from management. Things that can frankly annoy some customers but can help sell cars. But…that’s not Tesla’s model. They simply let the customer shop and answer questions if they have any. 

Tesla took the news of their last-place position in stride….

Segmenting Your Customers

So how do you go about parsing your customers (and non-customers) into categories. What the CX world needs to adopt is a technique used in traditional marketing research since the 1950s: Market Segmentation. Let’s do a quote shall we?

Market Segmentation involves viewing a heterogeneous market as a number of smaller homogeneous markets, in response to differing preferences, attributable to the desires of consumers for more precise satisfaction of their varying wants” (Smith, 1956)

I think we can all agree if we could customize an experience on an individual level that would be ideal, but it is usually not practical, so we split the difference and focus on (fairly) homogeneous groups. We can then adjust both the experience for each group accordingly. Here’s how you do it.

Step 1: Understand Your Customers

Let’s pretend that instead of two houses, the Trailhouse brand (our Airbnb) had 100 locations. Let’s also say we regularly collected customer experience data. We first might conduct a brief study among past guests and find out a few things; why did they visit, what things are important to them about staying in an Airbnb for that stay, and how was their experience, and some profiling variables (age, gender, family etc.).

If you owned your own booking platform (we don’t) you could capture the reason for the trip at the time of booking. You could capture their overall experience upon check out. This leaves you to gather up things important to them about their stay either at check out or at a later time. Many booking platforms require a ‘profile’ which is another place to gather up this one-time information. With this data in hand, you can move on to segmenting your customers.

Step 2: Segment Your Customers

There are many methods to segment your customers. Segmentation masters Michel Wedel and Wagner Kamakura provide a great framework in their aptly entitled book “Market Segmentation”. In segmentation, you have two things to consider; your ‘base’ or what you going to segment on, and how you plan to classify folks. Your base choices vary on observable/no observable and general vs. specific.

In our case we would probably want to focus on “unobservable” and “specific”; aspects of their stay that are important to them. We would also want to pick some profiling variables that could be used as surrogates for our base. That way we don’t haves to re-ask questions on an on-going basis.

As far as classification approach we have a variety of methods to choose from based on the nature of the data and the technique. In our example we would probably want to understand what is driving certain customers to like or dislike the Trailhouse experience. To predict drivers and cluster groups simultaneously we would use Clusterwise Regression or Latent Class Analysis

Here’s what the output might look like.

In the rows have the attributes and, in the columns, we have data-derived clusters. First, we see are largest segment are “Outdoor Actives” followed by “Active Family”. We also have some business users, and finally Value Minded Pensioners. The clusters were derived from the data (the base variables). 

We can see they have very different priorities and preferences with the darker shades of blue being more important and lighter shades less important. For example, business traveler strongly values flexible booking and cancelations while young families need more space. We can also see most folks like the Trailhouse with some weakness amongst Value Minder Pensioners.

Step 3: Apply the Algorithm to Your CX Tracker

Where possible, I advocate very short surveys, especially in transactional programs. These are the surveys you get in-app after your Uber ride or after calling the call center via SMS text. In this circumstance, we could perhaps ask two questions via text or email (or in-app if there is one).

  1. What was the reason for your trip? (select that all apply)
  2. How was your overall experience?

We might also ask if there is a need for a follow-up and comment box. We now can use the reason for their trip as a proxy (statistically derived) for their segment. This could also be achieved by asking a subset of questions and using modeling to predict their segment. Now you are not looking at all your customers the same. Your dashboard could look like this.

We can see that we rock it with business customers, but they are a smaller part of our business (25%). We don’t do too well with value-minded pensioner, but they are a smaller share of guests, and they are not on target, so we probably don’t want to be something we are not, and our best bet is to steer these folks to another property.

Step 4: Make Changes to Your Experience

This is the most important part of the process; using the data to make strategic and tactical changes and then observing what, if any impact, it had on the experience and business outcomes. 

For example, if we looked at this in January, we might be concerned about our Outdoor Active Singles. Perhaps we mined the comments and found that lack of storage for bicycles was an issue in some locations and decided to install smaller bike lockers on-site in those locations. 

Now we can see the result of our investment. In March things start picking up for this younger outdoor group. In this way, you could separate your target customers from your non-target and also developed segment-specific tweaks to their experience and observe it made a difference.

Making Data Work for You

I always tell my daughters to keep their eyes on their own paper when comes to grades. I think the same advice is worthy to follow in CX measurement. While it is good to know where the competition is at and if possible, learn from them, ultimately you need to focus on delivering on your value proposition for your customers.

Developing and implementing a segment based CX system will help you do just that. The good news this isn’t new. Marketing and product development folks have been doing this for decades to very good results. It’s time to move away from the monolithic one score one customer mindset and look at customer differences as they relate to the experience you are delivering.