In early days of business the focus was to create entry barriers for competitors , especially putting constraints at customer end . Ensuring that the product which customer has bought will provide him service only under one vendor and he will not be able to switch vendors. This way customers have to at times take decision to stick with one service provider and one of the classic example is mobile number portability .
In my 5 years of corporate career I have changed more then 5 places because of work , that means every time I have to change my mobile number or at times I if it was short duration like 2-3 months then I had to take a call to be on roaming and increase my phone bill . With mobile number portability my service provider who gave me first number is not holding my number in case I decide to change to new operator.
People talk about customer centric organisation , here I see a customer centric industry . Thanks to innovation in technology , regulations and of course willing ness of players now entire industry is thinking from customers point of view .
Another similar example will be one of the recent decision to enable customer accessing any DTH operator using same set top box , this will be called conditional access and will be executed by associating a small device with your Set top box.
It is definitely hard decision for service providers to let their customers go to some one else with such an ease but developing a seem less experience for customers will be beneficial for entire industry in terms of common standards and competitive environment . If one will loose customers then similar manner he will gain them from rival providers.
Overall entire industry will be very competitive with all service providers have to match the best offers given by competitors and The differentiation will be significant from each other to retain the customer base.
Showing posts with label customer. Show all posts
Showing posts with label customer. Show all posts
Tuesday, January 26, 2010
Sunday, February 1, 2009
Evolution of Customer Experience : Retail
One of the oldest business of the civilised society, what all changes it has seen in terms of customer experience.
“The Shopping is no fun” Experience:
Historically this business started with small shops catering to different needs. For a customer there was no fun being in these shops why?
1) There used to be only one narrow counter where all the customers have to line up. Most of the time counters were designed in a way so that customers have to stand outside the shop.
2) One or two attendants serving customers for whole day so in rush hours customers have to make extra effort to draw their attention.
3) Customer used to receive only what he asks for, all the brands, sizes, shapes could not be placed on display shelves.
4) Shops used to cater only a particular need , there were different shops for grocery, cloths, footwear’s etc.
Overall it was a tiring experience for the customer, he felt happy to get out from the shop as early as possible.
“Delighted to be ” Experience:
By 1862 seeds of organized retail had started germinating, this was the year 3 players who would change the future of retail industry started their operation. Kmart, Walmart & Target , there is not much to discuss about K mart but it is interesting to see how walmart and target decided to provide very different kind of experience to the customer in the same retail business. First of all let’s see come commonalities which they brought
1) First time customer can experience the satisfaction of seeing & feeling almost all major brands and before taking any decision , as larger shelf space made sure that all prominent brands for the same category are displayed at one place.
2) Customer could walk at his own ease in privacy; he did not have to ask someone to give him the merchandising; however reps were few meters away whenever there was a query.
3) Now it was time to make sure that customer does not waste much time on counter waiting in queues for transaction to be processed.
4) The shop floors were huge which meant customer can come with entire family or friends and shop.
5) As these stores received discount from vendors on volume, they passed their savings to customer. Which gave customer feeling of getting value for their money?
6) Advanced point of sales systems made checking out easier, it not only gave a sense of comfort to customers but also helped retailers in maximizing customer’s time spend on the floor shopping merchandising rather then waiting on POS.
So some of the common experience enhancements were: Sense of independence, A better ambiance, Satisfaction of having checked all available brands, I can shop at ease and my own pace, value for money.
“Shop till you drop” Experience:
Late 90s and early 20’s started seeing altogether a different side of retail , customers were now being spoilt, not only by the choice of merchandising but also by providing various facilities in the store.
Food joints: Some of the retailers leveraged on amazing combination of having food joint inside the shop, Shoppers Stop, bigbazar , spencers, Trent and many other retailers were now giving no excuse to customer to go out of the shop.
Child care : Many retail outlets started having special children zone where trained employees take care of younger ones while their parents shop. This is amazingly relaxing for mothers who can not leave kids alone at home .
Not only this , lifestyle retailers in particular have been spending a lot on their ambience which has given birth to various shop interior consultancy firms who claim to know art and science of shop interior.
WalMart here also broke all the records and started keeping photo labs, dry cleaners, optical shops and hair salons in its super stores in early 90s
The experience was of complete peace of mind , shopping in an environment where one does not have to worry about anything.
“From my couch” Experience:
After satisfying all kind of sense in the shops, retailers started driving sales by technology. As the new generation started getting tech savvy, retailers knew its time to take the store the house.
Several have tried their fortune in online retailing or e-tailing but not too many success stories. Tesco remains international leader because of following
1) Ease of shopping online: Online shopping can be a very complex business hence the focus has to be bringing simplicity in customer experience which Tesco & Amazon have done quite well with the help of good technology and customer data.
2) Personalization: This facility of offering you items which may be of your interest could have never been a possibility in a brick and mortar business of several hundred square foot but in e-tailing this is the vantage point. Tempt customer with her interest , giving him a personal experience of being cared.
Saturday, January 17, 2009
Evolution of Customer Experience
When we talk about customer experience in interaction with business, this experience is made of two factors
1) Senses of customers ( i.e. sight, sound, taste, touch, smell).
2) Emotions of customer.
To make sure that customer gets a brilliant experience which satisfies both of above parameters , following drivers need to be focussed.
1) Customer Expectation: What is the expectation of the customer while entering into the shop. It is interesting that most of the organizations will have standard operating procedures of hundreds of pages describing how customer should be treated but yet there is no practice to have documentation of what customer is actually expecting or what kind of experience customer desires.
2) People: Employees who are facing customers will directly impact customer experience. Specially in the industry where entire business depends upon customer facing , it is very important to have trained employees facing customers.
3) System: Today when technology drives business, systems being used impact highly on the customer experience, for example it was really embarrassing for customers to undergo the security scanner of handheld metal detectors, which used to take some time. Instead walking through those metal detector doors is a better option.
Similarly another important touch point for customers is POS, the smart your POS system will be the better customer experience will be. Another complain raised by customers is about IVR systems. Complicated answering systems in call centres make customer feel as if they are any transaction which is under processing.
4) Facility: In physical interaction with customer, this is the most obvious and a very strong touch point with customers. Today organizations (specially retail, hospitality chains) are very particular about the kind of experience they want to provide to customers in organization premise. Not only they are spending huge sums on making better, elite, sophisticated, easy to navigate facility outlets but they are also thinking out of box, Mid Columbia Medical center is one special hospital where patients are allowed to choose room interiors of their own choice. This clearly shows to what extent they care about human choice and experience, it is also very obvious in health care industry where if one is able to make patient feel happy then entire process can run smoothly.
5) Organization culture : Once George drapper Dayton ( founder of Target) noticed one of his employee is arguing with customer in what seems to be the customers mistake. He immediately resolved the issue and later on told the employee “ It is not important whether customer is right or not , what’s important is whether she thinks she is right” It will be difficult to view assume that this change was same for almost all the businesses , we will try to see 3 major industries which have been influenced heavily by technology to provide better and effective experience to their customers.
1) Senses of customers ( i.e. sight, sound, taste, touch, smell).
2) Emotions of customer.
To make sure that customer gets a brilliant experience which satisfies both of above parameters , following drivers need to be focussed.
1) Customer Expectation: What is the expectation of the customer while entering into the shop. It is interesting that most of the organizations will have standard operating procedures of hundreds of pages describing how customer should be treated but yet there is no practice to have documentation of what customer is actually expecting or what kind of experience customer desires.
2) People: Employees who are facing customers will directly impact customer experience. Specially in the industry where entire business depends upon customer facing , it is very important to have trained employees facing customers.
3) System: Today when technology drives business, systems being used impact highly on the customer experience, for example it was really embarrassing for customers to undergo the security scanner of handheld metal detectors, which used to take some time. Instead walking through those metal detector doors is a better option.
Similarly another important touch point for customers is POS, the smart your POS system will be the better customer experience will be. Another complain raised by customers is about IVR systems. Complicated answering systems in call centres make customer feel as if they are any transaction which is under processing.
4) Facility: In physical interaction with customer, this is the most obvious and a very strong touch point with customers. Today organizations (specially retail, hospitality chains) are very particular about the kind of experience they want to provide to customers in organization premise. Not only they are spending huge sums on making better, elite, sophisticated, easy to navigate facility outlets but they are also thinking out of box, Mid Columbia Medical center is one special hospital where patients are allowed to choose room interiors of their own choice. This clearly shows to what extent they care about human choice and experience, it is also very obvious in health care industry where if one is able to make patient feel happy then entire process can run smoothly.
5) Organization culture : Once George drapper Dayton ( founder of Target) noticed one of his employee is arguing with customer in what seems to be the customers mistake. He immediately resolved the issue and later on told the employee “ It is not important whether customer is right or not , what’s important is whether she thinks she is right” It will be difficult to view assume that this change was same for almost all the businesses , we will try to see 3 major industries which have been influenced heavily by technology to provide better and effective experience to their customers.
Saturday, November 8, 2008
What Retail Quotes
Walmart and Target are the pioneer of the retailaing industry , both are so different in thier management and expansion styles yet very same when it comes to following business ethics and treating customer well. Both organizations show that it was the strong foundation pillars laid by founder members and then management by some of the best brains that took them to peak of Retailing and to the depth of consumer's heart
Sam Walton was a firm believer in the potential of small towns , because of his philosophy Walmart served small town customers very well and created a strong entry barrier for others.
Following statements shows the priority for Mr Walton was providing better services in the existing stores before expansions.
I always wanted to be the best retailer in the world but not necessary the biggetst : Sam Walton ( The walmart decade)
Sam's style was Management by walking around was the
I have always had soul of an operator, somebody who wants to make things work well , then better and then the best they possibly can : sam Walton
Stock it , price it right , Show the value , Take the money : Tom Coughlin , VP, COO Walmart ( Walmart decade)
Drapper put the foundation stone for target , he was initially into banking , mortgage and lending business where he always made sure to lend money to people who are strong in character , sending interests to investors much before time and doing business with complete integrity and honesty.
Buiness integrity is doing things as you agreed to do them. doing things when you agreed to do them. doing things you ought to do. George drapper dayton , Target ( from on Target).
Character is a matter of slower growth but the reward is certain : George Drapper
Target has always been particular in store decoration and putting stylish merchandising arrangements.
Capture the customers imagintion with array of goods and earn loyalty with generous merchandising policy : George Nelson
The concet of integrity and honesty in these houses is so strong that it keeps going on at the same pace with new management , always.
In retail there are lots of ways to be marginally crooked and we decided we weren't going to do that : Norman McMillan , VP, Strategic planning Target
Here is how target proposes building up talent for business
You want a good manager , put him under a good manager and let him run the business : Flyod Hall, Target CEO Retailing is detailing : On target
Sam Walton was a firm believer in the potential of small towns , because of his philosophy Walmart served small town customers very well and created a strong entry barrier for others.
Following statements shows the priority for Mr Walton was providing better services in the existing stores before expansions.
I always wanted to be the best retailer in the world but not necessary the biggetst : Sam Walton ( The walmart decade)
Sam's style was Management by walking around was the
I have always had soul of an operator, somebody who wants to make things work well , then better and then the best they possibly can : sam Walton
Stock it , price it right , Show the value , Take the money : Tom Coughlin , VP, COO Walmart ( Walmart decade)
Drapper put the foundation stone for target , he was initially into banking , mortgage and lending business where he always made sure to lend money to people who are strong in character , sending interests to investors much before time and doing business with complete integrity and honesty.
Buiness integrity is doing things as you agreed to do them. doing things when you agreed to do them. doing things you ought to do. George drapper dayton , Target ( from on Target).
Character is a matter of slower growth but the reward is certain : George Drapper
Target has always been particular in store decoration and putting stylish merchandising arrangements.
Capture the customers imagintion with array of goods and earn loyalty with generous merchandising policy : George Nelson
The concet of integrity and honesty in these houses is so strong that it keeps going on at the same pace with new management , always.
In retail there are lots of ways to be marginally crooked and we decided we weren't going to do that : Norman McMillan , VP, Strategic planning Target
Here is how target proposes building up talent for business
You want a good manager , put him under a good manager and let him run the business : Flyod Hall, Target CEO Retailing is detailing : On target
Similarly both corpoarte houses are extremely careful on customers services .
It does not matter whether customer is right or not what matters whethe she thinks she is right - Dayton , On Target
Tuesday, January 29, 2008
USe customer to innovate
If we talk about innovations , researching on cutting edge technologies , working on new systems and frameworks , the immediate thing which comes to mind is the huge cost associated with it which does not always provide a good return . Imagine how many innovations and research never make it to the production environment . What could be the way in which companies can still get innovative ideas without having to spend too much on thier own workforce , that is surely learning from customer and involving him in your system to innovate.
Who would know customer better then himself , Customers are the biggest source of innovation . They can come up with any weird idea because it is not going to cost them any thing , they won't be afraid of failure (It hardly matters to them ) and they don't have any pressure from thier management to drive innovation in a certain direction only . One such idea is innvated by customer in Punjab , Dhaba owners of Punjab also purchase Washing Machines but not for washing clothes , guess what they make lassi in those washing machines. Just imagine if one of the negineer in Videcon would have come up with this idea that lets project our washing machine as Lassi maker also , what would have been reaction from his management ?
Now when customers have shown the way , they must be seeing a business proposition here , may be in future they can simply do some changes in design of washing machine and make it more suitable for lassi making .
Going forward it will be very important to involve your customers into your business , just imagine you end having a workforce of millions of people by using this methods and guess what you even don't have to pay these people . All you have to do is to listen to them carefully , understand them and thir needs and encourage them to provide feedbacks on any aspect of product and services . One other industru where I see this practice prevalent is media and entertainment , Many news channels have started making thier cutomers their reporters . They ask viewers to send any latest happening around them , You see now they are literally coveringentire nation without sending any one physically anywhere. What adds to this is tehonology which has made it all very simple.
So remember when next time you meet your customer , don't think that he is just customer , give him a new role that is of critique and Engineer for your product and he may change the way you do business.
Who would know customer better then himself , Customers are the biggest source of innovation . They can come up with any weird idea because it is not going to cost them any thing , they won't be afraid of failure (It hardly matters to them ) and they don't have any pressure from thier management to drive innovation in a certain direction only . One such idea is innvated by customer in Punjab , Dhaba owners of Punjab also purchase Washing Machines but not for washing clothes , guess what they make lassi in those washing machines. Just imagine if one of the negineer in Videcon would have come up with this idea that lets project our washing machine as Lassi maker also , what would have been reaction from his management ?
Now when customers have shown the way , they must be seeing a business proposition here , may be in future they can simply do some changes in design of washing machine and make it more suitable for lassi making .
Going forward it will be very important to involve your customers into your business , just imagine you end having a workforce of millions of people by using this methods and guess what you even don't have to pay these people . All you have to do is to listen to them carefully , understand them and thir needs and encourage them to provide feedbacks on any aspect of product and services . One other industru where I see this practice prevalent is media and entertainment , Many news channels have started making thier cutomers their reporters . They ask viewers to send any latest happening around them , You see now they are literally coveringentire nation without sending any one physically anywhere. What adds to this is tehonology which has made it all very simple.
So remember when next time you meet your customer , don't think that he is just customer , give him a new role that is of critique and Engineer for your product and he may change the way you do business.
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