The Modern Customer Podcast

Embarking on a full-scale customer experience transformation is a huge undertaking, especially for an organization as large as Cisco. The company has made huge strides recently as it evolves its customer experience to build on its existing customer-first culture. Cisco Live is the premier event for education, inspiration and making connections for technology professionals. This year had 27,000 in-person attendees and more than half a million online views of the keynotes and sessions. Cisco Live is also a great opportunity to showcase and celebrate Cisco’s ongoing customer experience transformation. It’s rare to see a large company make such bold moves on customer experience. But as Cisco Senior Vice President Ish Limkakeng says, the goal is to become the best customer experience company—period. One of the reasons for Cisco’s success is the clarity of vision from executives. According to Jason McLaurin, Managing Director, Customer Experience – Japan, the bold moves from leadership help customer teams move quickly and keep up with changing trends and demands. That laser-focus on customers starts from the top, and sharing the vision with all employees creates an energizing culture ready to make positive change. Mike Adams, Vice President, Learning at Cisco, says successful change starts when executives commit to sticking with the transformation during its ups and downs. Empathy is vital to driving customer experience. McLaurin recommends spending time in the customers’ shoes and consuming their technology. Learn what it really means to live their work for a day. Find their end goal and trace back the requirements. Customer experience should be outcome-based and driven by a strong vision of how to help customers achieve their goals. Part of helping customers reach their goals is providing useful solutions. Many of Cisco’s products have transitioned to subscription and cloud-based models in recent years. Adams says those updates change how the company engages with its customers and pushes the need to add value at every stage of the customer lifecycle. The goal is to create a friction-less renewal process because customers see the overwhelming value of the products. Limkakeng says Cisco aims to help customers realize the full value of their investments. Culture plays a huge role at Cisco. Employees are encouraged to innovate and put customers first. Customer experience is ingrained in the culture and is part of everyday life for all employees. Limkakeng also lives by the principle of explaining to employees what’s in it for them so they can see how what they do every day fits into the overall business strategy. When employees know their role in the puzzle, they are more engaged. Cisco’s customer experience transformation is one of the biggest in recent decades and can be summed up in five words: move fast and move big. Cisco is well on its way to becoming an experience leader across all industries.

Many companies think of customer service as just what happens when a customer calls with a problem, but Cisco has transformed customer experience to include the entire customer journey. According to Alvio Barrios, SVP Americas Customer Experience, the goal of customer experience is to proactively engage with customers and help maximize the value of whatever products they’re getting from Cisco. As the market transforms, Cisco’s products and services have also transformed. The same is true with customer experience. Customers want to get to market faster and be competitive, which means Cisco must proactively help customers and find opportunities to better optimize their solutions. A number of factors contribute to Cisco’s customer experience transformation. It starts with a commitment from executives across the company. Customer experience impacts all functions of the company, so all executives need to be on board. Employees must also be engaged in customer experience. At Cisco, employees understand what’s happening in the industry because they’re experiencing it themselves. Part of Barrios’ job is to leverage customer focus and turn it into customer obsession to create an open, customer-first culture. Customer experience transformation must happen fast because trends and technology are constantly changing. Cisco uses a feedback loop to listen to customers and find ways to improve its products and services so it can deliver a better experience in the future. Cisco also uses analytics and insights to find potential challenges and opportunities. Barrios says the most important thing about moving quickly is to be bold and totally committed. Challenges will arise, but a deep conviction and bold actions can help push through the trials. Transformation doesn’t happen overnight. Change takes time. Cisco celebrates the small wins and works to eliminate silos with a company-wide customer experience blueprint. Getting all employees on the same page and being honest will help everyone see success and the purpose of customer experience. The best customer experience is proactive and comes from companies that are obsessed with their customers. Cisco shows that like the customers themselves, the experience should also be constantly transforming to provide amazing, proactive solutions. This podcast is sponsored by Cisco.

Imagine having a human assistant to look after your money 24/7 and proactively find ways to save more and keep your money secure. It may sound like an impossible dream, but Capital One makes the same service available for its customers with a virtual assistant named Eno. Capital One has always been a pioneer in conversational AI. It was the first financial company to launch an Alexa skill that allowed customers to check their balance with a voice command back in 2015. In 2016, it introduced Eno as a text bot. Now, the revamped Eno is more intelligent, responds to conversational text and voice commands and even makes proactive recommendations and alerts. If you made an unusual charge that could be fraud, paid an astronomical tip that’s out of the norm or spent more in a certain area than normal one month, Eno will send you an alert. The bot not only reaches out, but also allows customers to quickly take action right within the channel instead of having to log on to a computer or call customer service. The goal of Eno and Capital One’s dedication to conversational AI is to remove friction and have real conversations with customers. Before Eno, Capital One had an SMS fraud alert system that would text customers to confirm or deny unusual charges. However, the company realized that half of the responses weren’t confirmed or denied. Customers would respond with things other than the Y or N that the system recognized. They were interacting with the service, but not in a way that the machine recognized. The move to conversational AI allows humans to talk as they normally would. Ken Dodelin, Capital One VP Conversational AI Product Development, says it’s a move to teaching machines to talk like humans instead of the old method of trying to have humans talk like machines, which was ineffective and frustrating for everyone involved. Eno’s conversational AI technology allows it to understand more than 99% of customer queries and responses—a major jump from 50% just a few years ago. Customer expectations are changing, and how brands design systems must also change. Conversational AI isn’t something to take lightly. When done well, like in the case of Capital One, it can be a major component of the company’s overall strategy. Dodelin says it’s important to have humility when designing the program. Customers don’t always act how companies expect them to, which means teams have to be agile to find what best matches what customers will actually do. Eno’s proactive approach has resonated with customers and had a very positive reaction. Eno and Capital One show the power of conversational AI to build bridges and improve the customer experience. Dodelin says that no matter the company, the goal of AI should always be to be helpful. The right technology can create extremely helpful solutions for busy customers.

Planning a vacation is often so exhausting that you need the vacation just to recover. Choosing a destination, planning the itinerary and scheduling all the details can take up a huge amount of time and energy. But a new company takes away the need for travelers to plan their own vacations and taps into the experience economy to create unique adventures. Manifest is the brainchild of Jeff Potter, the former CEO of Frontier Airlines and Exclusive Resorts. From his decades in the travel industry, Jeff learned the importance of getting away on vacation. Millions of vacation days go unused every year, and a major reason is that people don’t have the time or desire to plan their own trips. Modern travelers are also leaning more heavily to experiential travel and want to immerse themselves into the places they travel instead of simply staying in a resort. Manifest plans group travel expeditions throughout the U.S. Instead of long, international trips, these vacations are more manageable for people to fit into their busy schedules. Customers join a local chapter, pay the annual fee for the travel club and then can sign up for as many trips as they want. Because of Potter’s connections in the industry, the cost of private aircrafts, luxury accommodations and exclusive experiences actually ends up being close to what people would pay for booking a business class trip on their own. Group travel also brings people together in a unique way. With Manifest’s model, the people travelling together in a group likely live in the same city and have similar interests. The specialized trips range from an upscale Sonoma wine tasting weekend to whitewater rafting through the Grand Canyon. Potter calls it “tribal travel” as the groups consist of likeminded people who share a passion for experiential travel. Manifest is built around creating amazing experiences and building trust. According to Potter, what customers want more than luxury experiences is authenticity. They want to truly experience their travel destination. Manifest plans excursions that are often off the beaten path and something travelers might not find if they were making their own arrangements. To ensure guests are satisfied with the arrangements, Manifest customers complete a short survey when they join the travel club, which includes details about their preferences and activities. The company listens to customers to offer a wide variety of experiences to meet everyone’s needs. In our modern world, customers tend to value experiences over things. They’re investing more in travel than ever before, and Manifest takes advantage of the need for convenience, experiences and community by creating unique, personalized travel opportunities.

Digital transformation can have numerous goals, from saving money to improving customer satisfaction. But at Sprint, the goal is to empower both internal and external customers to do what they want, where they want, when they want. Rob Roy and this team called The Hive take a unique approach to finding creative technology solutions that meet the needs of customers and employees. Digital transformation at Sprint is a reverse cultural transformation. It means embracing new ideas and working across the company to build long-term, sustainable products. A major focus of the digital transformation is internal, with the philosophy that if employees have the tools they need to succeed in the digital world, it will spread to customers. Roy often brings on digital natives with fresh ideas to his team. They also partner with startups and other entrepreneurs who have fresh perspectives on the future of digital. In order to build a successful digital transformation that is accepted within the company, Roy says that it’s important to ask two questions: What is the direction of the company, and how does digital transformation align with those goals? What is the customer saying? What are their main pain points? Combining the answers to those questions can help companies prioritize the areas that are the highest need and that will have the biggest impact. Sprint uses customer feedback, analytics and real interactions with sales representatives to set its digital transformation priorities. After all, digital transformation isn’t effective if it isn’t accepted by employees and goes against the goals of the company. Instead of simply building digital products and hoping for the best, the team at Sprint gets input from employees and customers on what matters to them. Members of the digital transformation team flew to platinum care centers and sat with top care representatives for weeks to listen to their calls and understand how agents go about their days and work with their systems. Seeing the technology in action helped identify pain points and ways new technology could improve the efficiency and work of the representatives. The team then built a program called AI Agent Assist that is tailored to how representatives actually interact with customers. Many companies get pushback on new technology because the systems aren’t intuitive and require too much change, but Sprint’s new programs are familiar to employees because they played a role in designing them. Instead of working in an isolated box, Roy says it’s important for teams to work shoulder to shoulder across the organization. For Sprint’s digital transformation, it’s important to embrace new ideas and create an innovative environment. Roy and his team spend hours every week thinking through processes. They experiment with new technology, brainstorm with outside thought leaders and surround themselves with people who want to press beyond the norm. Staying close to customers and embracing new ideas has helped Sprint’s slightly unconventional digital transformation lead to amazing results that are driving future ideas.  

Are loyalty programs worth the cost? According to research by Citi, the answer is a resounding yes. As the company transformed its rewards program and analyzed customer preferences, it found that modern customers are more loyal and valuable when they participate in a loyalty program with a great experience. Mary Hines, Head of Customer Engagement and Innovation at Citi Cards, aims to deliver a seamless experience across all customer touch points. Customer loyalty programs are critical, especially in the retail and financial services spaces. What started in the 1980s for airlines and was often viewed as an unnecessary expense is actually a powerful way to engage with customers. Citi surveyed 1,000 consumers and found that 89% are more loyal to businesses where they are a rewards member. Citi customers who redeem their points spend twice as much as customers who don’t redeem their points. That engagement and loyalty can make a huge contribution to customer retention and the bottom line. However, not all loyalty programs are created equal. When Hines started with Citi in 2012, customers had to call the company or use a website to redeem their points. Now, the vast majority of customers redeem their points through a mobile app for intuitive and convenient access to their rewards. Citi’s research also found that 83% of consumers are more likely to participate in a loyalty program if they can access the program easily from their mobile phone. That number jumps to 94% for millennials. In many ways, customer loyalty programs reflect customer experience as a whole. Customers want resources that are accessible and applicable. They don’t want to go out of their way or jump through hoops to access a loyalty program. They also want personalized offers. Citi’s survey found that 95% of customers who are enrolled in loyalty programs are more likely to engage if they can get personalized offers. Hines has made a push to partner Citi with other popular retailers so that customers can easily redeem their rewards points right where they already shop, including Amazon, Best Buy and 1-800-FLOWERS. Rewards redemption also varies around the world based on culture and customer preferences. Customer engagement has a huge impact on loyalty. Providing a seamless and forward-thinking rewards program that is driven by digital can create a band of loyal customers who provide incredible value to a brand. Engaging with customers and getting more of their loyalty drives the bottom line and creates a company that customers are proud to be a part of.  

Two of the biggest buzzwords in customer experience are AI and empathy. But are the two concepts mutually exclusive, or can they be used together to create a harmonious customer experience? Dr. Rob Walker, Vice President Decision Management at Pegasystems, believes customer-facing AI initiatives can be programed to be empathetic. However, empathy is often lacking in customer interactions. It’s difficult for customers to feel empathy from brands when they are being spammed, have to repeat themselves constantly or are forced into irrelevant conversations. The majority of modern customer interactions are driven by AI, and there is a need to add empathy to those conversations. In order to show empathy in the customer experience, Dr. Walker says brands must make every conversation one-to-one. Many companies fall into the trap of traditional marketing and send the same message to every customer, which often ends up with customers getting multiple messages from different departments of the same company. It’s confusing and overwhelming. A one-to-one conversation focuses on the need of each individual instead of simply blasting them with the same message as everyone else. Another important principle is to take the customer’s view. Companies need to put themselves in their customers’ shoes and consider if their approach is appropriate or relevant. Just because a company can sell a customer something, should it? Understanding a customer’s circumstance can quickly build and show empathy. Personal experiences naturally build more empathy. It’s easier for customers to see empathy from a company when they interact with the brand one on one instead of just being part of the masses. AI plays a crucial role in identifying opportunities for a personalized approach. AI allows companies to target specific customers. It can decide the most relevant approach in real time that creates the most mutual value for customers. Instead of human employees having to guess their way through a conversation, AI makes it possible for companies to be more exact in their approach.   Combining AI and empathy to best connect with customers can require a culture shift in many companies. In a truly customer-centric organization, different departments won’t compete with each other because they want to do what is best for the customer. Dr. Walker recommends operationalizing AI and empathy, but says that brands shouldn’t look too far out because technology and ideas are moving quickly. AI is constantly changing and could soon infer empathy. For now, it is a powerful tool in creating personalized experiences that allow for more connection between customers and brands, which naturally builds more empathy.

Imagine being able to stream anything anywhere without having to worry about bad signals or data limits. Soon connecting to the internet will be as commonplace as connecting to electricity. 5G has the power to unlock limitless computing and impact the entire world, including the customer experience. Cristiano Amon is the president of Qualcomm, a company that has technology in every smartphone in the world. Amon is considered the godfather of 5G because of his work planning, advocating and creating the technology. He is passionate and optimistic about the potential of 5G to change the way we work, communicate, shop and live. The most obvious impact of 5G will be super-fast internet, with speeds up to 10 times faster than current levels. With current 4G, customers can experience poor signal areas where they don’t have the power to stream or access the internet as quickly as they like. That trouble won’t be an issue with 5G, as everyone around the world will have guaranteed connections no matter where they are. The impact of massively increased speeds is enormous. In recent years, even slightly faster internet speeds have allowed consumers to stream music, so they don’t need to buy CDs or download MP3s. The same buying shift will happen with 5G as consumers can stream 4K video anywhere in the world, which means they won’t need to buy DVDs or download movies. 5G will also have a huge impact on social media and allow for instantaneous connections. People will be able to share things in real time and have live conversations around the world. Gaming could also boom with 5G and cloud-based gaming. Instead of having to purchase expensive computers to handle large games, 5G will allow consumers to play any game on any device no matter the computing power required. 5G goes hand in hand with the growth of AI. Because of 5G’s fast speeds, everyone will essentially be constantly connected to the cloud. Al and machine learning can also build faster connections and flag activities that aren’t normal. Amon says that with this growth comes the need for more protection of our digital selves on par with how we protect our physical selves. What does this mean for the customer experience? Everything is changing. Consumers will be able to connect with brands in real time and will expect faster service and responses. Connectivity will impact innovation and allow products to come to market more quickly. Brands will also have more data on their customers to provide uniquely personalized experiences just when customers needs them. The world will get smaller as connectivity increases. Unlike today’s wireless technology that is primarily used in the wireless industry, 5G will touch all industries in both B2B and B2C. 5G will become part of the critical infrastructure and change manufacturing, IoT, healthcare and so many more industries. Amon says that consumers who like their smartphones today will be very happy once 5G is up and running. Companies will need to match that love and excitement with service and experiences that leverage the power of 5G.  

Digital transformation is all about using technology to better solve customer problems. But a new report from global telecommunications company Telstra found that many U.S. companies lean too heavily on the technology side and don’t focus enough on the people behind the decisions. According to Nicholas Collins, Telstra President for the Americas, digital transformation loses its effectiveness if companies forget about people. Brands need to continually evolve their businesses as technology and customer needs change. Instead of chasing technology, companies need to focus on what they want to be for their customers. “Technology alone is not a silver bullet for digital transformation. While investing in the right technology is crucial, placing too much importance on the role and performance of technology in digital transformation is a barrier to success,” Collins said. There are huge opportunities for companies that have yet to start a digital transformation. Collins says it starts with a top-down commitment from leadership. Companies need to strategically decide what they want to achieve through digital transformation. From there, they should assemble the right teams to bring those goals to life. The foundation of successful digital transformation is people, especially through strong leadership and culture. Telstra’s study found that focusing too much on technology can lead to stalled progress and a lack of measurable outcomes. It’s easy for companies to get caught up in the technology behind the transformation, but the most effective digital transformation simplifies how people work so they can be engaged and better serve customers. As businesses grow, they often add new products and services that only add to the complexity of the company. Collins recommends that companies regularly take stock of their offerings and processes and find ways to simplify. Work back from the customer and what the brand is trying to achieve and then streamline or simplify as much as possible relating to the customer experience. Digital transformation really comes down to using technology to simplify and streamline how a brand operates interacts with customers. Collins recommends involving the employees who are closest to the customers because they can often provide insights that people who don’t regularly interact with customers might not see. Digital transformation is a journey, not a destination. No matter where companies are on that journey, there is still plenty of opportunity to grow and develop. But in order to be successful, companies have to think about people and not just technology.  

It may have the word “medical” in the title, but by all accounts, The American Medical Association is actually a media company seeing the fruits of its digital transformation. In the last 18 months, association membership has grown by more than three times, thanks largely to a new digital approach. The AMA helps physicians in their quest to improve patient care. A large part of that is creating quality content from medical experts, including white papers and other documents. But that content is ineffective if it isn’t meaningful to members or easily accessible.   Digital transformation is a business buzzword, but it can be scary to people. Instead, Todd Unger, chief experience officer and SVP physician engagement at the AMA, likes to start with the business of basics, such as identifying the audience, the company’s growth goals and what digital platforms will help the brand perform on a bigger scale. The digital solutions for one group might not be what another group needs. In order to be effective, companies must segment their audience and tailor their approach for reaching out to certain types of people. Unger came to the medical world with a background in e-commerce and horse racing. His fresh perspective helped him see areas that could easily be improved. One of the best ways to build momentum for a digital transformation is to start with the low-hanging fruit. For the AMA, it was as simple as adding a button to its homepage that people could click to join the organization. Those simple changes can make a big difference to the overall experience, but it often takes someone with fresh eyes to find those simple solutions. Unger’s best advice is to start small, move fast and get quick wins. Digital transformation can be scary and overwhelming, but quick wins from low-hanging fruit can provide positive momentum. Success can also show people who are hesitant about the need for a digital transformation just how powerful digital tools can be. With that fresh perspective comes the need for a cohesive team. Unger says many companies have problems with digital transformations because the responsibility of digital marketing is split across multiple departments, which takes away accountability and makes it hard to get results. Within a few months of starting the digital transformation, the AMA brought its digital marketing teams together to one cohesive unit and immediately saw faster progress. Unger’s team tests everything to drive growth. Even something as simple as an email template needs to be tested repeatedly to prove that it can effectively meet customers’ needs. Testing helps digital teams move to making fact-based decisions instead of relying on their opinions. In the end, digital transformation comes down to trust. Are you communicating and connecting with customers in a clear way that builds trust? Digital solutions can drive growth and create meaningful relationships with customers. As Unger says, there’s never been a more exciting time to be in marketing. And it all starts with digital.