The Modern Customer Podcast

Blake Morgan
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Oct 12, 2021 • 13min

How David’s Bridal Launched A Successful Loyalty Program During A Pandemic

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.
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Oct 5, 2021 • 34min

How David’s Bridal Used Digital Transformation To Update Its CX (Part 1)

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.  
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Sep 28, 2021 • 31min

3 Ways Customer Preferences Are Evolving In Banking

Banking used to be a completely people-oriented business. Customers chose the bank that was closest to their neighborhood and went inside to interact with bankers for every transaction and question they had.  But now, what customers look for in a bank and how they interact with their money is changing. Customers now bank more digitally and want convenient technology-driven solutions. According to Beth Johnson, CXO of Citizens Bank, delivering a strong banking experience is now about tapping into customer needs holistically by leveraging technology, data and in-person interactions.  The goal of modern financial institutions is to drive change while still keeping the customer front and center.  Johnson says the pandemic accelerated the digital path Citizens was already well on by three to five years. Banking was already evolving, but customer preferences have changed drastically over the last 18 months. Understanding those changes and adapting the experience strategy is crucial to banks’ success, especially in these three areas:  Complex digital interactions. Over the last 18 months, the way customers are willing to interact with banks digitally has gotten more complex. Customers are now more willing to have emotional and complex conversations through digital channels, where in the past they were only willing to discuss things like their financial futures in person. Johnson says the change marks a big switch for the industry and has forced banks like Citizens to expand their digital offerings to make it easier for customers to conveniently have those complex conversations. AI capability. The ability of AI to impact business is changing rapidly, especially with developments in personalization, cybersecurity and natural language processing. In banking, the biggest innovations are in real-time AI capabilities. Customers have gotten used to instant service in other industries and now want it in banking. Johnson says one of the biggest use cases of these capabilities is in real-time payments to move money seamlessly and instantly. Role of brands. Just three years ago, the vast majority of customers chose a bank because it had a convenient physical location. Today, the biggest factor in choosing a bank is brand perception for its products, community involvement and commitment to diversity and inclusion. Banks need to develop brands that do more than just offer convenient locations and put their customers and communities first.   Going forward, banks won’t compete on products because products are too easy to copy. Instead, they will compete on their ability to tap into the rational and emotional sides of money to deliver innovative and convenient solutions to customers.  Banks must stay on top of changing customer preferences to deliver strong experiences in the ways that matter most. _______________ 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. 
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Sep 21, 2021 • 32min

How To Create Remarkable Experiences Customers Want To Share

When it comes to marketing, word of mouth is considered the Holy Grail. There’s nothing better for companies than customers sharing experiences and talking with family and friends.  And that often comes from customer experience efforts, not traditional marketing campaigns. Dan Gingiss, author of The Experience Maker and Winning at Social Customer Care, says that CX and marketing are coming closer and closer. In many ways, CX is one of the most powerful tools for marketing. A great customer experience strategy is the best way to get people talking about a brand.  The key is to create remarkable experiences that customers want to share. Gingiss calls it the WISER method: Witty, immersive, shareable, extraordinary, responsive.  Great experiences don’t have to use all of the WISER elements, but the letters build on each other so that the best experiences use all of them. Including more elements of the WISER framework creates a stronger connection with customers that they will remember and want to share.  The first element of the WISER method is what all remarkable experiences have in common--they are witty. Gingiss clarifies that being witty doesn’t mean being hysterical, but rather being clever and creative. Customers will never share or talk about an experience they think is boring.  Being witty and creating remarkable experiences requires creativity. These days, everything is a potential experience--from a product’s packaging and online presence to its physical display in a store. Something as simple as a witty catchphrase on a package creates a memorable experience that customers want to talk about and share.  With so many competing voices, customers are most likely to trust people they know. Brands that can create memorable experiences and get customers talking and sharing build unique connections that can transform into loyal customers and growth opportunities. To create remarkable experiences, think WISER and look for ways to turn everything into an experience.  _______________ 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. 
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Sep 14, 2021 • 30min

COVID Customers Are Counting On You—Are You Rising To The Occasion?

It’s been a long 18 months of pandemic life, and customers are feeling the stress and fatigue of constant uncertainty and chaos. They are yearning for a break and a chance to feel calm and normal.  But when they try to escape with a night out or a trip, they’re met with disappointing service.   Companies have to stop using COVID as an excuse for bad service. That’s especially true in industries like hospitality, air travel and restaurants. Yes, there are issues with staffing and turnover, but brands need to figure it out so they can deliver a strong experience.  Customers are tired and burnt out after 18 months of pandemic living. They are hungry to do things they haven’t done in more than a year, and experience matters now more than ever.   This is an incredible opportunity for brands to show up for their customers and provide an extra level of ease and personalization. But instead, too many companies let their service slip with COVID and haven’t made any effort to pivot and improve.  We’ve gotten lost during COVID—both as individuals and as brands. But now is the time to rediscover ourselves and create a sense of purpose. When brands are confident and have a strong culture, they hold themselves to a higher level and rise to the occasion. When everyone else is tired and only doing the bare minimum, it’s the people and brands who believe in themselves and their purpose that run the extra mile for the customers who are counting on them.  Brands that rise to the occasion now to meet their customers where they are and surpass their expectations will be remembered after the pandemic is over. They are the brands that will have loyal customers and an abundance of goodwill.  Now is the time to show up for your customers like never before. Put yourself in their shoes to imagine what it would look like to create an amazing experience in our uncertain world. It could be anything from shorter wait times to increased personalized or an easier return policy. And then go one step further to put those plans into action.  The world is busy and uncertain, but customers are depending on you. Now is the time to rise to the occasion and show up for them like never before. _______________ 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. 
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Sep 7, 2021 • 32min

The One Thing Every Contact Center Bot Needs

If you ask customers if they want to talk to a bot, most people would likely say no. For years, bots have gotten a bad rap for their nonsensical answers and inability to understand.   But if you ask customers if they want to get correct answers quickly, they would likely all say yes. Modern bots are one of the best and most scalable ways to offer faster, correct service. According to Ben Rigby, VP, Global Head of Product & Engineering, Artificial Intelligence and Machine Learning at Talkdesk, it’s all about reframing how customers think of bots and how companies use them in the contact center.  The key to a successful machine learning system in a contact center is adaptability. Rigby says most machine learning projects fail because companies can’t figure out how to retrain their bots to match their customers’ current needs. A bot created before COVID wouldn’t know how to answer questions about things like social distancing, safety measures or mask requirements, but those are crucial answers customers need during a pandemic.  Most companies turn to data scientists to retrain their bots, but Rigby says the best people to update the systems are the call center agents. Agents are familiar with what customers are asking and know how to tailor their answers to meet customers’ needs. They can take that experience and apply it to a bot to make sure the system has the most current and correct information. Rigby says putting contact center agents in the middle of machine learning is the best way to improve and continually update the system. After all, retraining a bot is a lot like talking to customers, something that contact center agents do every day.  Machine learning in the contact center isn’t one and done. It’s a continuous process that involves launching, observing, retraining, observing, retraining—indefinitely. Companies need to plan for the fact that the world is continually changing and their machine learning system and strategy also require regular updates.  Modern bots and machine learning systems are scalable, cost-effective and a great way to deliver a fast and accurate customer experience. The key to success is planning for updates and retraining and ensuring the right people complete the task. *This episode is powered by Talkdesk. Talkdesk's mission is to help organizations around the world build brand love and loyalty by delivering exceptional customer experiences. But how ? Talkdesk is a cloud contact center solution for the customer-obsessed. With enterprise-class performance and consumer simplicity, Talkdesk CX Cloud empowers you to adapt your contact center to the evolving needs of your customers and teams. The results? Increased productivity, higher customer satisfaction, more cost savings, and great customer experience. If you'd like to know more, visit talkdesk.com. _______________ 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. 
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Aug 31, 2021 • 32min

How To Engage Customers In An Uncertain World

The past 18 months have brought unthinkable tragedies and uncertainty to the entire world and changed how most people live, work and interact with companies.  But according to Jon Picoult, author of From Impressed To Obsessed: 12 Principles for Turning Customers and Employees into Lifelong Fans, out of every crisis comes opportunity. Even with the chaos and uncertainty, there are opportunities to strengthen relationships and improve customers’ lives.  Engaging with customers in an uncertain world starts by really understanding them, including their new and emerging needs and fears. What matters to customers and what they look for in a shopping experience is likely very different now than it was just a few years ago. By listening to customers, companies can capitalize on these changes to mitigate customers’ challenges and improve their experiences.  Picoult says that more than shaping experiences, companies are shaping memories. Truly engaging with customers involves stirring emotion. Experiences that are laced with emotion are far more memorable than those that aren’t. By connecting on an emotional level, companies can take customers from a place of vulnerability to a position of strength and create a strong, memorable experience.  Picoult gives the example of the Australian grocery chain Woolworths, which was one of the first companies to offer early morning hours dedicated to elderly and at-risk shoppers during the early days of the pandemic. Woolworths talked to its customers and realized at-risk people were scared to be shopping during busy times when the store was crowded. So it created dedicated early morning hours, and the practice spread to retailers around the world. Woolworths understood customers’ needs and went the extra mile to connect its solution to the emotions behind the challenge. In the process, it endeared itself to customers.  In these times of chaos and uncertainty, customers want something they can depend on. They want to interact with brands that will listen to them, understand their struggles and then go out of their way to fix them. Engaging with customers during these challenging times doesn’t mean completely changing the customer experience—it means tweaking your current offerings to match what matters most.  Although these times are challenging, it’s also a chance for brands to strengthen their relationships and turn their customers into lifelong fans. _______________ 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. 
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Aug 24, 2021 • 33min

6 Steps To Build Returning Customers

Growing a business is all about gaining customers and getting sales. And far easier and less expensive than attracting new customers is turning existing customers into regular, returning customers.  CX expert Shep Hyken says the key to building return customers is to discover the typical pattern of return customers and then replicate that experience for new customers. All companies should get people into the cadence of doing business with them regularly, but the timeline of that regularity—be it weekly, monthly or annually—changes based on the industry and type of business.  In his new book, I’ll Be Back: How To Get Customers To Come Back Again and Again, Hyken lays out a six-step process for finding that pattern and building return customers and strong experiences:  Ask why someone would do business with your company and not with the competition. Figure out what makes your company unique from others and what makes customers interested in your products and services.  Ask why someone would do business with the competition instead of your company. This requires digging into your competition’s offerings and customer service to discover their competitive advantages. Keep pace with what the competition is doing. If there is something the competition is doing, bring it into your company and make it your own. Look outside your industry. Ask all types of people what their favorite companies are to do business with and why. Look at why people are drawn to these companies that are outside your industry and may not be considered direct competition. Ask what those companies are doing to draw in customers. This step also requires digging deep to understand why certain companies resonate with customers. Think about what you could be doing that works for companies in other industries.  Come back and ask the original question—Now, why would someone do business with your company and not the competition?  Hyken recommends going through this process every six months to find little ways to improve. Taking these small steps can create amazing experiences that customers love and help distance you from the competition.  All companies, no matter their size or industry, can find ways to stand out from the competition. Playing to your strengths creates unique experiences that will make customers return. Hyken says even small companies can compete against e-commerce giants like Amazon by highlighting what makes them unique, such as by offering personalized human experiences and local events.  By continually improving and playing to your strengths, you can create a company where customers want to come back again and again. _______________ 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. 
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Aug 17, 2021 • 34min

How To Deliver Effective Hyper-Personalized Experiences

It’s no secret that modern customers crave personalization. Efforts to tailor experiences to customers’ needs are foundational to a strong CX strategy.  But the next step of personalization is here: hyper-personalization.  According to Raj Badarinath, CMO of Algonomy, hyper-personalization has three main characteristics: It focuses on individuals, not segments. Even if two customers have some similar qualities, they each have a unique experience that meets their exact needs. It creates experiences in real-time. Hyper-personalization delivers offers right when customers need them most. It uses AI and machine learning to improve over time. Hyper-personalization efforts get better as the technology and company learn more about each customer.  Instead of simply providing a certain experience for a customer depending on their demographic or preference segment, hyper-personalization considers the context to choose the right offer and experience in real-time. Hyper-personalization uses technology to look at countless variables and know what a customer is looking for and what they need at that exact moment.  Badarinath gives the example of a customer shopping in a store, likely while also using the store’s mobile app to look up products and get information. The store knows the customer’s preferences and that they are close by and can use hyper-personalization to send an offer that considers the context and meets their exact needs at that moment, perhaps by recommending a product that is relevant to what they are already buying or a discount on a brand they have bought in the past.  At the heart of hyper-personalization is strong digital solutions, especially around AI and machine learning. Badarinath says companies have to consider the digital maturity of their systems when making decisions. Some AI solutions only have the maturity of a three-year-old, while others have the maturity of a 30-year-old. That maturity impacts the decisions the technology makes and how it learns and grows. The same hyper-personalization strategy won’t work on all levels of maturity.  Although AI and technology are important, hyper-personalization is most effective with a human touch. The best companies provide their human employees with tools to access customer data and preferences in real-time to deliver those hyper-personalized offers human-to-human.  In today’s connected world, companies are no longer just competing against other brands within their industry—they are competing against every company. Hyper-personalization sets the standard and drives a strong customer experience and long-term loyalty to fuel business growth. *Sponsored by Algonomy  _______________ 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. 
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Aug 10, 2021 • 32min

How Better Health Helps Customers Do Hard Things Easily

The goal of every company should be to make their customers’ lives easier, even if it makes their work harder.  But that becomes even more important in a company serving customers with chronic health conditions.  Naama Stauber Breckler is CEO and co-founder of Better Health, a company focused on helping people with chronic conditions manage day-to-day life at home. Through innovative end-to-end solutions that bundle the delivery of medical supplies with education, peer support and telehealth services and an intense customer focus, Breckler and her team make it possible for customers to do hard things easily. The need for at-home care and supplies delivery was only highlighted during COVID when most people suffering from chronic conditions were left at home to manage their care and treatment.   Before starting Better Health in late 2019, Breckler spent months talking to countless people to learn about the industry, current challenges and where she could have the biggest impact. She ultimately narrowed her focus to urology and ostomy products. Most of Better Health’s customers have chronic conditions, so although the company can’t reverse the conditions, it can make customers’ lives better. Talking with customers highlighted two major issues: the selection of medical devices can be overwhelming, and online payments with insurance can be complicated. Both of these issues posed massive roadblocks to customers and made their lives incredibly difficult. Better Health prioritized addressing these issues and now offers personalized consulting and recommendations to find the right products and takes over payment issues from the customer. Better Health operates in an inverted way to make sure everything the company releases truly solves problems people care about. Breckler and her team interact with customers online and go into their homes to understand the experience so they can then prioritize the biggest pain points to make the largest impact.  That customer focus continues with each new feature the company releases. Employees pore over data to see where customers are getting stuck and dropping from the process so they know how to improve it.  Every company, not just those in the medical field, can and should make customers’ lives easier. A central focus on customers that starts from leaders, as well as data and feedback, can help companies improve their products and work to best meet customers’ 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 waitlist now for the new Customer Experience Community here. 

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