Are you relating to your customer at all levels?

Much is said about being customer centric. Measurements are made, customer feedback is analysed against benchmarks and marketing teams create content about how much we care about customers. But how does the corporate vision of an organisation really connect, or more often fail to connect, with the beliefs and values of customers? This is not an accident: it is caused by a mismatch in the layers underpinning these lofty ambitions – but there is a way of making an analysis of this and a real improvement at all levels.

Most organisations of any significant size have invested in defining their vision or mission statement. Usually, they can be boiled down to variations along the theme of “We will do our best for our customers, shareholders and employees by exceeding expectations, by innovation, by being better than the competition…” – you can fill in the rest. It is usually predictably organisation-centric. Away from the boardroom and the executive vision planning meetings, the reality of dealing with the organisation from the customer perspective can seem far removed from this.

The reason is that an organisation is usually governed by cost management, operating models and process maps, locking out flexibility and sometimes making the vision statement seem like an ironic joke to employees saddled with processes and tools that do not suit the customer and cause frustration.

The entity that is the customer, however, is driven by emotions, feelings and a set of expectations that may easily be missed. To a customer, there are no explicit processes or operating models, although this does exist at a subconscious level. This does not mean, however, that the two can never interact without conflict and misunderstanding. Because there are two hierarchies. both have similar levels and by understanding how the customer perceives the organisation on each level the likelihood of improving engagement and customer satisfaction are much improved – as illustrated below.

The Customer Engagement Framework

1. Vision vs Beliefs and Values: the Strategic layer

In both cases, the top level of the framework describes the highest attributes and ambitions of the organisation or customer. With the organisation, this must be made both explicit and public it is ultimately a collection of individuals with naturally differing views on direction that can and do change. The customer as an individual holds internal beliefs and values that are deep-rooted and very hard to change. It is at this level that customers choose not to engage with firms that go against these values – for example those that focus on “controversial” products such as tobacco or alcohol, openly support political views the customer disagrees with, or companies that are perceived not to operate ethically. No matter how good the customer service, they will never interact with this organisation in principle.

On the other hand, firms that are seen as visionary for example, the consumer technology leader Apple, iconic fashion firms or those with significant charitable goals can attract and retain customers even when day to day customer service fails badly – they will be forgiven by the higher principle of aligning in values and aspirations. It is a rare thing to base relationships only on this, the lower levels almost always play a part in the final decision-making process, hence the most successful brands connect not only here but execution is also near-perfect. Most firms do not make a significant connection on this top level alone but, much as an iceberg is mainly below water and invisible, as long as the vision is not an issue it will not inhibit success.

2. Principles vs Emotions and Identity: the Brand layer

Here, the two are closely related. Principles are the manifestation of a Vision – the next layer that starts to define “how we make vision reality” rather than “what are we going (or not going) to do”. On the customer or individual side this is a close match to the Emotions (how I feel and react to my Beliefs and Values) and Identity (what makes me feel attracted to, or repulsed from, what I am experiencing with reference to my Beliefs and Values).

Why are they so closely related on this level? Because this is the bridge between concept and reality, on both the company and individual customer sides. In many ways it is the most critical area to get right. It is above the details of exactly what is productised, marketed, sold and serviced but below the more conceptual layer of a vision. Likewise on the customer side, it is the bridge between the “gut feel” of beliefs and values that are often hard to articulate and the more easily identified objectives and concrete expectations around customer service. While it is intuitively easy to like or not like a company based on the ethos presented – or perceived – and it is also fairly straightforward to evaluate how your expectations are being met or missed, the Emotions and Identity layer is really what underpins measures such as Net Promoter Score (other established measures e.g. Customer Effort Score is at the next layer down). It is partly derived from hard-to-express feelings and partly from real examples of good or bad service.

How do you decide to recommend or not recommend a company to a friend? It is both feelings based and also on the reality of contact. That is how humans make decisions – although the precise mix of the above and below layers will vary by person – think of the well-known Myers-Briggs measures and how people react differently to others in a similar situation.

3. Propositions vs Objectives and Expectations: the Define layer

The importance of aligning at this level cannot be underestimated. Propositions that are designed to serve the needs of internal functional silos will ultimately fail as the objectives of a customer never include an allowance for, for example, the finance platform not to interface seamlessly with customer helpdesk and therefore a refunds process takes three days longer than expected. Expectations are set not only by past experience, although this is important, but by direct and current comparisons with competitors. It can be pictured as many “pyramids” (organisations – the left hand side of our illustration) interacting with many more “tower blocks” (customers – the right hand side of our illustration) – a hugely complex set of interactions that ultimately drives an economy.

It should also be said that Propositions are not the exclusive domain of marketing – it is so fundamental to a business (as are all lower parts of a pyramid to keep it standing!) that they must be defined, designed and most importantly constantly tested by all functions to ensure that customer expectations are met and satisfied.

4. Operations and Delivery vs Engagement and Understanding: the Engage layer

The bottom layer, like Maslow’s Hierarchy of Needs, has a focus on the basics. Operations and Delivery is the core of the company – the engine room – and also the point of real contact with customers at every stage in the customer journey. On the customer side this is represented by the Engagement and Understanding layer, a level that relates to how a customer really interacts with the products or services provided. How does the product look and feel – is it a quality article? How was the interaction with the contact centre – did you find it easy to navigate and get what you wanted easily and quickly?

Slightly less tangible but still not based on any higher levels of the tower – how well did a customer feel engaged with the company? This can be influenced by brand – for example, O2. By them investing in the O2 Arena, customers may associate some great event experiences with the brand that lead indirectly to a more positive engagement. However despite positive feelings, if the engagement fails at a practical level: a hard to navigate website, perhaps, or a marketing message that completely fails to relate to the consumption experience, then there will be a mis-match between the various layers of the customer experience tower. It is comparable to Maslow’s bottom layers of physiological and safety needs – unless you have this right the higher layers meeting aspirational ideals are really irrelevant and you will lose the customer sooner or later.

In summary

This opinion piece shows how the component layers of an organisation’s DNA, from the high level vision to the handling of a minor customer problem, can have a direct match with how a customer relates at all levels. To succeed, an organisation should:

  • Connect the layers: make sure that your vision is being delivered in reality at the lowest levels as well as the top – or perhaps it is simpler to say make sure that every customer interaction, no matter how small, reflects your vision ideals. If this isn’t done, the vision isn’t credible
  • Compare and align frequently to the customer’s equivalent layers as far as possible: make sure that your principles relate to your customers’ emotions and your propositions match their expectations
  • Optimise each level across the organisation, and also against your competition: pan-organisational harmony is critical – there is no point in having a highly empathetic customer services team that relates to the customer’s emotions if the rest of the organisation fails in delivering promises made

In future opinion pieces, we will look in detail at each layer and show how customer centricity is more than a focus on getting process, people and technology customer focused internally – important as these are. It must fundamentally align the organisation at all levels to connect, collect and retain customers in a highly competitive world. This is not simply management levels, we mean here the complete hierarchy of high level values to low level operations.

Only by knowing the layers that shape and drive your organisation, and by being aware of the full conscious and unconscious things that drive customers can we make a significant difference in customer experience improvement.

Fix your leaky sales pipeline: a new way of looking at selling

The sales pipeline is the greatest opportunity – and source of frustration – to most businesses. We would like to challenge conventional thinking on this with a new way of looking at your sales performance.

The very term pipeline is often a misnomer, typically sales prospects are viewed as a funnel, where many opportunities are “poured” into the top, most drop out along the way (quite a leaky funnel!) and only a very few drip out of the bottom as closed deals and won business. However, even the pipeline analogy – left to right rather than top to bottom – suffers from poor quality engineering, as the leakage rate is also horrendous.

This is a very depressing way of thinking about sales. Each week, month and year a salesperson must find ten to twenty times their target in prospects and then expect the majority of them to vanish along the way as they struggle to maintain at least two or three really strong opportunities, hoping all the time that even these are also not going to fall victim to a “leak”. It also can lead to a defeatist mentality in sales teams, from defensive behaviour in not entering opportunities on sales prospect reports, to a sense of despair that yet another sale has disappeared, that perhaps never actually had a serious chance of success.

But a pipeline should be what pipelines are, a way of transporting a commodity – water, gas, oil – from start to finish of a journey with minimal, if any, loss. This may sound too good to be true – that every initial contact, however vague or unlikely, leads to a confirmed sale. We can’t offer this, but what we can do is to help you create a more positive vision of a pipeline – a full and stable pipeline, as engineering designed it to be. Sales can also become a commodity, something that comes naturally, with the right point of view.

The key change in concept is to think from the point of view of the buyer, not the seller. For each purchasing decision taken there will then only be two outcomes: no decision, or a purchase from a supplier (but quite possibly not from you, when switched back to the traditional view). It’s the “no decision” that is the biggest competitor out there in any industry and with a “market share” far in excess of any of your competitors. Estimates vary on this due to the difficulty of measurement but it can easily be higher than 60% of all identified needs to buy that end up with no progress. If you understand the pressures a buyer has – they need to perform too, just as your sales team needs to perform – then you are already ahead of most of your competitors in sales maturity.

Why is no decision taken? It is because the buyers themselves are confused by complicated purchasing processes, internal politics, uncertainty of available choices and general risk aversion within an organisation. Hence the second key concept is to extend your pipeline far beyond the traditional point of initial sales contact, connecting early in the needs identification process and often even before your product or service has been considered. You must think not only of the buyer’s needs but also their wants, and most importantly subtle things such as emotions and personal goals more than the features, pricing and closing tactics of your offering.

It is by facilitating the buyer in guiding them through the process that your pipeline becomes one and the same as the buyer’s experience. That way, buyers buy because your solution solves their needs. Unless a buyer can come up with their own answers for all the disruption to an organisation’s embedded systems, traditions and culture that a new identified need brings (i.e. a sale, viewed from the other side), the decision is often simply a no decision. But when a decision to buy is made, make sure it is from you and help to mend your leaky pipeline by being the one who empathises best with the buyer’s experience.

To put it simply, a buying decision is much more that a choice of product or service from competing suppliers. If viewed as that, your chances of winning the deal are already typically lower than 20%. If responding to a written request for proposal and with no previous relationship, probably even much lower than that again. Not odds worth taking a quick gamble on, never mind funding a full time sales team with all the associated costs. But once you have switched on to the buyer experience model, the traditional sales tactics only come in to play at the very end, often after the key decision to buy has been made. Then facilitation of a buyer’s needs and turning it into a sale is relatively easy.

Price is only an issue if the buyer can’t decide between two equivalent things, and in fact is not the key criterion for a sale by any means. If the pipeline process has been extended back far enough in the buyer’s process, it will be hugely more successful, and things such a price and detailed product features comparisons are far less important.

The goal is to get your spanners, nuts and bolts out and get your pipeline built right back into the early stages of a change process, long before it is clear that a tender or request for proposal will be made. Forget about selling, think about facilitating the buyer’s decision process. Many of these things have little to do with your product or service and can cover a diverse range of issues, mostly internal and sometimes quite specific to individual buyers. You can then drop the number of prospects to chase, as the leaks will be getting fixed by this attitude shift alone.

If you don’t extend your pipeline you are trying to catch, or tap into, an existing flow. Pipeline or funnel, call it what you will, but as in the real world example of trying to catch fluid in mid-flow, it is tricky, messy and a very leaky operation indeed. Pipelines do not work well when they are too short and far away from the source!

Hence the simple conclusion is that you need to focus on buyer experience. Sopra Steria has long and deep experience in consulting in customer experience and employee experience. We now think that the time is right to talk to us about buyer experience and allow us to help you improve your sales effectiveness, paradoxically not by thinking of it as sales but as buyer experience improvement. When we say buyer experience we mean not simply as that of the contact with your company, but the whole experience of making a decision about buying. The difference in thinking produces remarkable results!