The Modern Customer Podcast

With its stylish and comfortable shoes and bags made out of recycled plastic water bottles, Rothy’s bridges the gap between fashion and sustainability. But it has also tapped into the holy grail of customer experience: word-of-mouth marketing.  Rothy’s shoes were originally designed for women on the go who needed comfortable shoes that were still stylish. Many Rothy’s customers share similar stories of trying different types of shoes before finding Rothy’s and jumping into a sustainable brand that helps them look and feel good.  Rothy’s customers are fiercely loyal to the brand and often become brand advocates as they share their excitement for the products and brand with family and friends.  Elie Donahue, Senior Vice President of Marketing at Rothy’s, says there are three elements to turning customers into brand advocates.  First is the product itself. Word-of-mouth marketing doesn’t happen unless there is a product people love and truly want to tell their friends about. Rothy’s innovative and sustainable manufacturing practices are matched with comfort and durability that resonates with customers.   Second is the customer-to-customer connection. Because Rothy’s customers love the product so much, they automatically feel a connection to other Rothy’s wearers. If a woman sees someone on the street or in an elevator also wearing Rothy’s, Donahue says those customers instantly feel a special bond. Loyal Rothy’s customers have organically created huge online communities, which have expanded to real-life meetups at Rothy’s stores. Customers want to advocate for Rothy’s because of their passion for the brand and what it stands for.  The last element of creating brand advocates is how the brand connects with its customers. Rothy’s aims to create brand moments people can connect with. That means regularly sharing its founding values via email and social media to create shareable content. Rothy’s also involves customers in many events, such as its Vote It Back program where customers vote to bring back a discontinued style. Donahue points to the recent launch of Rothy’s recycling program when the brand invited customers to bring their old Rothy’s shoes and bags to stores to be recycled into thread. Involving customers in the brand process and showing they are part of something bigger makes customers feel valued and gives them something to tell their family and friends. By turning its customers into loyal brand advocates, Rothy’s has created a strong community that stands by the company’s values. Delivering a high-quality product and building relationships strengthens all aspects of the customer experience.   *This episode is sponsored by Quiq. Quiq is a leading conversational AI platform that drives two-way conversations to deliver a better experience for people and brands. Quiq enables enterprises to connect and engage in two-way conversations with their customers across varied messaging channels — including Facebook Messenger — in more than 170 languages. Quiq is the future of business-to-consumer messaging; it’s the wingman every brand and CX’er needs. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the new Customer Experience Community here.  

Net Promoter Score, or NPS, is one of the most widely used customer experience metrics across all industries. But according to its creator, Fred Reichheld, countless companies are doing it wrong and end up abusing the system.  The Net Promoter System involves asking a simple question to customers, typically after an interaction with a brand—how likely are you to recommend the brand or company to family and friends?  Best-selling author Reichheld says the core principle of NPS is love and the idea that you should treat others the way you would want a loved one to be treated. Reichheld created the Net Promoter System before cellphones were widely used, and the system has grown with new digital technologies. Even as the digital world grows, the core of NPS is timeless and is just as relevant today as ever.  The issue with using NPS in our modern world, Reichheld says, is that too many companies are sloppy about how they ask the question, including asking it at inopportune times, asking it too frequently or using it as a relationship question to grade employees. Many companies reach out to customers after a contact center interaction and ask the question with a strong implication that the service rep will get in trouble if they don’t receive a perfect score.  Instead of a way to discipline or grade employees, NPS is about tracking how well customers are treated and how loved they feel by the company.   Successfully using NPS starts with a company culture of loving and serving customers. Leaders set the example as they inspire their employees to make customers’ lives easier and better. Reichheld says the customer-first philosophy has to be at the center of every conversation and decision of leaders. When leaders set the example of running their companies as a way to show their love for customers, it comes through in how employees interact with and serve customers and leads to higher Net Promoter Scores.   With that mindset, companies can focus on asking the NPS question at the best times instead of throwing survey requests out left and right to get a mountain of abstract information. It can also lead to NPS innovation and reaching customers in convenient ways.  NPS is a powerful tool for all companies, but it has to be rooted in the right mindset: love and service. As leaders and employees aim to love their customers and treat them how they would friends and family, the NPS process is improved and scores will continue to rise. *This episode is sponsored by Quiq. Quiq is a leading conversational AI platform that drives two-way conversations to deliver a better experience for people and brands. Quiq enables enterprises to connect and engage in two-way conversations with their customers across varied messaging channels — including Facebook Messenger — in more than 170 languages. Quiq is the future of business-to-consumer messaging; it’s the wingman every brand and CX’er needs. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the new Customer Experience Community here.  

Every day, we text to communicate and quickly share news and questions with our family and friends.  Why can’t contacting a brand be that simple?  That’s the question that caused Mike Myer to create the digital CX company Quiq. As CEO, Myer has a unique view of the future of conversational AI and its power to transform customer experience. Conversational AI allows customers to chat with human agents or bots through text on a variety of channels and quickly and conveniently get the information they need.   One channel Quiq’s customers have seen strong success is through Facebook Messenger. Most customers are already using the platform, which makes it convenient for them to also use it to connect with brands. Through Messenger, customers and agents or bots can send images, create a menu of choices and even provide a carousel of options for quick replies. Myer says Messenger provides rich interactions that can greatly improve a customer’s experience with a brand. It’s a huge improvement over calling a contact center on the phone, which has dominated the industry for decades.  Conversational AI can be tailored to meet the needs of nearly any type of customer and is helpful with reducing churn, increasing return on ad spend and greatly increasing efficiency. Instead of contact center agents talking to customers individually on the phone, companies can do twice the customer volume with only 25% more agents. Quiq customers have also seen a 40x return on ad spend through Facebook Messenger. In most cases, adopting conversational AI actually leads to a decrease in budget, but it requires the courage to reallocate funds away from traditional contact centers to new technology and bots. Myer says conversational AI is still on the left side of the bell curve of adoption. But as more companies innovate with conversational AI through Messenger and texting and see the financial and service improvements, the practice will continue to grow.  Conversational AI is growing, and this is just the beginning. Myer predicts that in three to five years, the majority of customer interactions with large brands won’t be over the phone but will instead be through texting. Brands that take the leap of faith and get on the conversational AI train now are creating the next generation of customer engagement and shaping the future of CX. *This episode is sponsored by Quiq. Quiq is a leading conversational AI platform that drives two-way conversations to deliver a better experience for people and brands. Quiq enables enterprises to connect and engage in two-way conversations with their customers across varied messaging channels — including Facebook Messenger — in more than 170 languages. Quiq is the future of business-to-consumer messaging; it’s the wingman every brand and CX’er needs. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the new Customer Experience Community here.

Customer expectations have changed over the past 18 months of a pandemic, leaving brands with the challenge of pivoting and adapting not only to a new way of living and working but also to a new way of interacting with and serving customers.  Scott Finlow, CMO of PepsiCo Foodservice, has noticed two major trends during the pandemic. First is that people are looking forward to re-entering the world and having meaningful connections. As they do so, they want to try new products and have new experiences. Second, people are looking for more purpose in their lives and in their brand choices. That manifests in a variety of ways, including being more aware of the impact of their decisions on the environment and their health and wellbeing.  But Finlow says understanding and recognizing those changes is only the first step. Companies need to understand where customer needs are heading so they can focus on re-inventing a better normal. It’s not about going back to how things were but instead moving forward and creating a better future.  Perhaps nowhere is that more important than in the B2B world, where many companies are adjusting to new ways of doing business. Throughout the pandemic, PepsiCo has focused on forming partnerships to help support its restaurant customers as they pivot. The company is also investing heavily in digital and building out services to help its customers along their own digital journeys.  As customer expectations change, innovation is crucial. B2B companies need to find new ways to meet customer needs and break out of how things have been done in the past. With an increased focus on health and safety, PepsiCo set out to create contactless fountain drink equipment. Finlow says it required the work of multiple departments to deliver on the new hygiene standard. But it doesn’t stop there—the company is also piloting a drink machine in Europe that allows customers to gesture and pour the drink of their choice. Continual innovation provides B2B customers with the tools they need to best serve their customers.   Customer experience has always required continual change and evolution, but especially in a post-COVID world. B2B companies that stay in touch with their customers to understand their new needs and expectations, find ways to support their journey and continually innovate will lead the way towards the future.      *This episode is sponsored by Quiq. Quiq is a leading conversational AI platform that drives two-way conversations to deliver a better experience for people and brands. Quiq enables enterprises to connect and engage in two-way conversations with their customers across varied messaging channels — including Facebook Messenger — in more than 170 languages. Quiq is the future of business-to-consumer messaging; it’s the wingman every brand and CX’er needs. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the new Customer Experience Community here.

The last nearly two years have been dominated by short-term thinking. With the pandemic and world changing so rapidly, most companies had to abandon long-term plans to focus on what’s right ahead of them. In our personal lives, most of us are more focused on getting through the day than working towards our long-term plans.  Short-term thinking isn’t bad, but according to Dorie Clark, author of The Long Game, we can’t live our whole lives in emergency mode. When individuals and companies are too focused on short-term thinking, we miss the chance to proactively direct our strategy and outcomes. Long-term thinking helps us take back control and get us where we want to go.  As the pandemic slowly subsides in many places, long-term thinking is making a comeback. But the adjustment from focusing only on the here and now to the bigger picture can be jarring.  Clark suggests three steps to becoming a long-term thinker: Create white space. You have to have mental space to be able to think long term. It is almost impossible to engage in strategic thinking if you are mentally maxed out or overwhelmed. Focus on the right things. Get clear about what your priorities should be. Each person needs to focus on the right things for themselves. Keep the faith. Nearly every long-term goal faces setbacks and challenges along the way. It’s easy to get frustrated and give up, but Clark says it’s crucial to understand where you are in the process and persevere.  Thinking long term can get us out of the rut of monotony and searching for daily balance to instead see things from a different perspective. Clark calls it thinking in waves or the idea that we don’t need to have balance every day or every week as long as we have balance eventually. There are seasons and phases to life, and long-term thinking allows us to recognize those phases and shift so that we continually improve and work towards our goals.  The pandemic has changed how we think. But even as we adjust to new ways of doing things, the ability to embrace long-term thinking and proactively take control of our lives and careers can lead to tremendous growth. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the new Customer Experience Community here.

To say the real estate market in 2021 is a wild ride would be an understatement.  Anyone who has looked at buying or selling a home recently can understand the roller coaster of emotions in this crazy climate.  But the ups and downs of real estate, especially in the current fast-moving state, require a special focus on relationships and customer experience.  According to Deanna Haas, SVP of customer experience at SOLD.com, one of the biggest challenges for consumers navigating the real estate world is the abundance of options. Aside from the traditional ways of buying and selling homes, numerous alternatives are popping up that can also be great options. The challenge for people is to discover what option best meets their needs.  Haas says that above anything else, modern real estate customers are looking for education and an unbiased perspective. Real estate is emotional. And while the numbers are important, Haas says consumers need more than just the data—there must also be a human side to the transaction.  No matter how people choose to buy or sell their home, they want someone who is as invested in the experience as they are. With properties moving so quickly, it can be easy for sales to become routine for agents and companies. But each sale is unique for its buyers and sellers, who want their real estate professionals to take time to help them understand their options and be invested in the success of the transaction. Consumers want their feelings about real estate—both their fears and excitement—to be heard and acknowledged.  Personalization is crucial in customer experiences across all industries, and real estate is no different. Consumers want to have a personalized experience, especially as they make such a large and important purchase.   Ultimately, Haas says consumers are looking for individual and memorable real estate experiences where they are valued and understood. Real estate is emotional and should be treated as more than black and white.  And the need to deliver a strong experience will only increase--as the real estate industry continues to shift and evolve, understanding modern customers will become even more important. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the waitlist now for the new Customer Experience Community here.

The future of marketing is artificial intelligence.  But marketers are often faced with technical jargon and code instead of tactical ways to improve their strategies. Author and marketing professor Raj Venkatesan says marketers don’t have to know how to code, but they do need to understand the concepts of AI to build smart strategies and deliver superior customer experiences.  In his new book, The AI Marketing Canvas, Venkatesan breaks it down to a five-stage road map of how to implement AI in marketing. Before embarking on that roadmap, marketers need to understand the goal of AI in marketing, which is to personalize customer engagement. With that mindset and understanding, marketers can embark on the five-stage AI journey:  Create a foundation of data. Personalizing customer engagement and delivering great experiences starts by building the algorithms needed to make predictions about consumers. Experiment. Choose one customer engagement issue, such as customer acquisition or retention, and test what gains you can obtain through AI personalization. Venkatesan recommends running several small experiments to see which area delivers the strongest results for your company because each organization will see different impacts in different areas. Expand. Use that experiment as a launchpad to look at adjacent data. Take success in one area of customer engagement and expand AI into neighboring areas to grow in all aspects of customer engagement. Transform. As you expand your AI efforts to all areas of customer engagement, your entire customer experience will be transformed through AI. Monetize. Create a platform and develop a new revenue source. Companies like Starbucks are creating monetized versions of their AI marketing strategies and programs to help competitors. Sharing a platform speeds the adoption of AI across industries and can create lucrative revenue streams.  As they go through these five stages, modern marketers need to be able to work with different functions in the organization and be the voice of the customer to bring together AI and marketing and deliver a great customer experience.  Venkatesan says the fundamentals of marketing and customer experience haven’t changed—what has changed is the ability to serve customers well at scale. AI is an opportunity to serve customers better. When marketers embark on these five steps, they can lead their organizations and their customers to better experiences through AI.   _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the waitlist now for the new Customer Experience Community here.

Like nearly everything else in the world, leadership has changed dramatically over the last 18 months. Leaders are now faced with a new set of priorities and challenges as they lead their organizations in a rapidly changing world and lead teams and customers who are facing struggles and changes of their own.  Liz Wiseman, author of Multipliers and Impact Players, says that leaders who want to lead through uncertainty have to lead differently.  Too often, leaders who are trying to do the right thing slip into the role of having to have all the answers. But today’s leaders can’t possibly have all the answers, especially as they move through uncharted territory. Instead, leaders need everyone’s intelligence and have to use their knowledge and expertise in a way that allows everyone to contribute.  Wiseman compares it to running special forces—the leader doesn’t know everything or run the entire mission, but instead coordinates intel from their various employees and celebrates success. Often, that comes from asking questions and encouraging learning instead of always supplying an answer or opinion.  Wiseman also says that in these challenging times, leaders need to extend more grace and understanding to employees and customers than ever before. Many people are facing invisible challenges. That strain can be especially difficult on customer service and contact center employees who are working hard to help customers but can’t deliver what they’ve been able to deliver in the past. That exhaustion can lead to a feeling of languishing.  Wiseman’s research has shown that employees don’t burn out because of having a heavy workload—they burn out by not having an impact. Leaders can’t take their foot off the accelerator and have employees not do the hard stuff and expect it to fix the problem. Leaders need to give employees as much control as they can handle and soften the edges. The greatest challenge for leaders in the current climate is knowing where to put their foot on the accelerator and where to take it off.  Customer- and employee-focused leaders are multipliers who expect the best for their people, listen to their feedback and ideas and guide them through challenges. But they also extend grace and facilitate teamwork to help people contribute at their true capability.  Leadership is changing, but employees and customers will always be central to success. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the waitlist now for the new Customer Experience Community here.

Most people don’t associate bridal stores with loyalty programs.  Especially in the middle of a global pandemic when most weddings were postponed or downsized.  But the David’s Bridal loyalty program Diamond, launched in December 2020, is defying the odds and has already paid dividends with huge amounts of loyal and satisfied customers.  The program was created as part of David’s Bridal’s transformation to return customers to the center of the experience. CEO Jim Marcum said the company had lost its way by not focusing on what brides needed to make their wedding planning experiences amazing.  Because the wedding industry is centered around a singular event, the David’s Bridal loyalty program isn’t like most retailers’ loyalty programs. Marcum calls it a crowd-sourcing program that rewards brides for every David’s Bridal purchase for their wedding, not just the wedding dress. Anything anyone spends for the wedding, including bridesmaids’ dresses, accessories and the mother of the bride's dress, earns loyalty credit for the bride.  In the first nine months, the loyalty program brought in 700,000 members, an amazing 89% of whom have already transacted. KPIs across the board are staggering—loyalty program members spend more than non-members and have higher return rates.  Marcum said the amazing success is because the program is centered on brides and looks way beyond the singular purchase of a wedding dress. Brides are embracing the program because it is unique and meets their wedding planning needs. The rewards are also incredibly motivating for brides, with the top prize being a free honeymoon. So far, David’s Bridal has given away 41 free honeymoons to its most loyal customers.  The loyalty program also helps David’s Bridal improve its overall customer experience by helping the company serve and understand brides at every step of their journey. Employees can see where a bride is in the process, like if she has purchased a wedding dress and gotten alterations, and then can work with the rest of the bridal party to get them outfitted with everything they need. Marcum says the program has become an infectious part of the service journey and a significant portion of the business overnight because customers and employees see the value in it.  David’s Bridal’s loyalty program proves that there is always a market for a unique experience that meets customer needs. Even in the middle of a global pandemic, the loyalty program filled a gap and improved the entire experience, which has led to an outpouring of loyal customers. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the waitlist now for the new Customer Experience Community here.

Undergoing a digital transformation is challenging enough, let alone in the wedding industry during a global pandemic.  When Jim Marcum became CEO of David’s Bridal in 2019, he was tasked with turning around the 70-year-old company and creating innovative and personal experiences for modern brides. Much of that change has come in the form of a continued digital transformation.  Marcum started by looking for friction points and missed opportunities by meeting with teams throughout the company and paying close attention to customer feedback.  From there, David’s Bridal created a customer-first digital strategy that specifically addressed the friction points. The previous strategy had created different policies and experiences depending on if customers shopped online or in store, but the comprehensive new strategy created a seamless experience across all channels that put customers in the middle of every decision.  Changing how customers viewed the company also required personal service and a shift in the employee culture and mindset. Marcum and his team dove into thousands of online customer reviews to respond to every one- or two-star review across various platforms by reaching out to customers and listening to their feedback to get to the root of the problems. Constantly communicating with customers changed the company culture. Marcum believes that if you aren’t connecting to the customer, you are failing. The practice of quickly responding to low reviews permeates the company today as leaders and managers quickly remediate customer issues and concerns. Now, more than two years later, the company consistently averages 4.7 star reviews.  David’s Bridal’s digital transformation also changed how the company views its customer journey. By the time a customer enters David’s Bridal to try on and purchase her wedding dress, she has likely spent lots of time online looking for inspiration and planning her dream wedding. To become a larger part of the entire experience, David’s Bridal transitioned from being there when a bride wants to buy her dress to helping her see her wedding vision from the start. The company’s new array of digital wedding planning tools includes apps with checklists and digital vision boards brides can create and share with family and friends, as well as AI-enabled interactive chat and AR to bring wedding dresses to life at home.  Now, it’s not just about the dress, but the entire event. When a customer comes into the store to buy her dress, she has already been working with David’s Bridal, which helps consultants know what she is looking for and create a better and more personalized experience. Marcum says the new technology has been crucial as the company helps brides navigate wedding changes and delays due to COVID.   David’s Bridal shows how digital transformation can modernize a decades-old business and help find new ways to connect with and serve customers. _______________ Blake Morgan is a customer experience futurist, keynote speaker, and author of the bestselling book The Customer Of The Future. For regular updates on customer experience, sign up for her weekly newsletter here.  Join the waitlist now for the new Customer Experience Community here.