The Modern Customer Podcast

Most people consider customer experience the ultimate goal for companies and marketers, but according to marketing professor Peter Fader, customer experience isn’t for everyone. It’s no secret that modern customers are all unique. They have different preferences and also different value for brands. As Fader says, not all customers are created equal. Some will be loyal to the brand and purchase every new product, while others will only purchase items on sale and could dabble in other brands. While both types of people are customers, it’s definitely more worthwhile for the brand to invest in the loyal customer who makes bigger purchases. When it comes to customer acquisition and retention, brands should focus on quality, not quantity. 10 brand-loyal customers who recommend the product to friends and make repeat purchases are better than 20 customers who only purchase when it’s cheap and convenient. Today’s customers realize they aren’t always treated the same as all other customers. Some customers get VIP treatment and special offers, while many others don’t. Customers understand the difference and realize that companies are simply rewarding customers that deserve it a little more. That’s where customer experience comes in. Different customers have different kinds of relationships with brands. Fader uses the example of Stitch Fix, which offers a completely different box of clothes to each customer to create a one-of-a-kind experience. As technology and personalization continues to improve, Fader says that customized approach will become the rule more than the exception. In order to best grow and nurture a relationship with customers, brands need to understand what tactics are most effective, and it’s not the same for every customer. Some customers might respond well to a rewards program, while others may resonate more with customer experience. Companies can’t pick one tactic and think it’s the best thing for all customers all time. A large-scale customer experience campaign might only move the needle for some customers in some circumstances instead of being the ideal solution for every customer. Fader says the best brands use a variety of tactics because they understand their customers and the value they provide. Customer experience is still crucial to brands and can have a tremendous impact in creating loyal, long-term customers. However, as companies try to connect with customers, the key is to understand their value and preferences and build relationships in the way that best works for each person. Check out a great talk from Peter Fader at Google here.

Digital transformation is everywhere these days. But the idea of updating everything about how a company works and interacts with customers can be overwhelming. Comcast’s recent digital transformation shows that moving strategically and focusing on solutions customers love and employees champion can lead to great results. Comcast has made a major push in the last few years to get to a level where customers love the brand. The goal of the company’s digital transformation was to solve traditional problems with technology and create an easy and consistent experience for customers. Digital transformation is possible, even at large companies with standard processes. Scott McAllister, SVP Digital Transformation, narrowed the digital transformation down to four steps that proved incredibly successful for Comcast: Get senior level support. McAllister says it’s vital to have support from the CEO and other executives. At Comcast, the CEO was on board from the beginning. All executives in the company make two customer calls a month to discover customer pain points. Those calls showed leaders the importance of creating simple digital solutions for customers. Set clear objectives. Comcast started the journey with what it called a North Star metric: the percentage of customers who interact with the brand digitally. Tracking that single metric would show the success of the digital transformation. The number started in the low 60s% and is now up to the high 70s%. Get everyone in the company involved. It’s important to engage at each level of the organization to make sure everyone’s voice is heard. Comcast invited employees from all levels and divisions of the company to have a voice in the new digital experience. Involving everyone gave all employees buy-in and helped create digital products that represented all viewpoints. Create an initial focus on certain transactions. An entire digital transformation can be overwhelming, but McAllister recommends starting with the lowest-hanging fruit. For Comcast, that was bill pay. Figuring out how to transform the interaction and move bill pay to digital set the stage for the rest of the transformation. By solving one problem, the company could move more easily to other areas. Digital transformation is vital in today’s world to build customers who love the products and won’t go anywhere else. Digital solutions offer amazing opportunities to meet customer needs and deliver an experience that goes above and beyond. Comcast shows that involving everyone in the digital transformation creates internal champions and helps manage change. Although there will be bumps in the road, following these four basic steps to a digital transformation can keep your company on top of trends and first in customers’ minds.    

You’ve probably experienced this familiar scene: going to the doctor, having to wait to be seen in a sterile office, feeling rushed through the entire appointment and finally going home without feeling much better. It’s no wonder healthcare is one of the top five hated industries in the world. But One Medical is out to change people’s negative perceptions of healthcare by focusing on the patient experience and making it something people actually enjoy. It’s part of the growing trend to the consumerization of healthcare. According to CMO Doug Sweeny, One Medical thinks through the entire patient experience from start to finish to make visiting the doctor enjoyable. Instead of waiting weeks to get an appointment, patients can use an app to book a same-day appointment or virtually visit with a provider after hours. From the moment a patient walks in, the feel of the office is different. The modern style and calming décor is a stark contrast from typical waiting rooms. There aren’t phones at the front desk, which means receptionists can actually greet patients and talk with them instead of being distracted by a phone call. Appointments start on time, with the average wait time of just 30-60 seconds. The experience continues throughout the appointment. One Medical has automated much of the paperwork processes to allow healthcare providers to do what they love most—care for patients. They can take the time to build real relationships and meet the needs of each patient. Studies have shown that having a strong relationship with a doctor adds value to members and prevents things like urgent care visits. Aside from typical healthcare services, One Medical also offers services that patients really want, like mental health coaching, weight management classes, sports medicine, physical therapy and much more. The purpose is to help members meet their health goals instead of only seeing them when they’re sick. The company has partnered with large hospitals across the country to offer advanced specialist care to its patients. One Medical also works to engage with its employees by allowing them to focus on what matters most: patients. Instead of getting paid based on how many patients they see, all One Medical doctors are salary based. The entire experience is drastically different from the typical healthcare environment and could revolutionize the industry. One Medical remembers what many other healthcare companies don’t: that patients are people. Visiting the doctor can be an enjoyable experience. Like in other industries, consumers can take their business elsewhere if they aren’t satisfied, so healthcare companies need to understand changing consumerization trends to create a positive and personal experience. Healthcare is changing, and companies like One Medical that focus on patients and relationships will be the ones paving the way.    

Customer experience is a major focus of the B2C world, but it’s also vitally important for B2B companies. As B2B customers become more digitally savvy, companies need to focus on digital transformation to ensure high-quality customer experiences. According to Dushyant Mohanty, global head of transformation at Tata Consultancy Services, that means moving from being product-centric to being customer-centric. Mohanty helps companies around the world transform to meet the needs of modern customers. He is an expert in B2B manufacturing, energy and financial services. When creating a transformational customer experience journey, B2B companies should put themselves in the shoes of their customers to see if they are getting an immersive solution that meets their needs, or if the company’s offerings are outdated. An immersive omnichannel experience includes all types of outreach and technology. In order to make it happen, Mohanty says companies often have to include people who aren’t typically part of the buying experience. Involving these people earlier in the process can help companies get a more accurate view of their customers and help create a cohesive experience with everyone on the same page. In a digital transformation, the customer experience needs to be customized and in real time. That means adjusting as needed and using the correct customer persona. Just like how modern customers expect customization in their B2C experiences, they also want it in their B2B interactions. In theory, this new approach to B2B customer experience is relatively simple. Putting it into practice, however, can be quite challenging. Mohanty says executives need to first pinpoint the reason for the transformation. Is it to drive top-line revenue, or is it to establish their market share? Knowing the reason for shifting to a customer-centric company can help drive strategy. Once a company understands its incentive for changing, it should look at its current contracts to see what customers are asking for. An effective customer experience means that the company is responding to customers’ needs. The contracts can tell the true story of if that’s actually happening. Mohanty points out that a digital transformation is more than just updating a few processes. For many companies, it’s a complete overhaul of their approach to service and customer experience. Small changes will only get small results. To make a real change, executives need to take a step back and look at things objectively to see if they are reaching customers and achieving their goals. The underlying technology structure has a huge impact on customer experience, as does the data strategy. Start with these as a foundation to customer experience. In the end, it really comes down to having a growth mindset. B2B companies that can embrace digital transformation for customer experience are the ones that don’t simply do what’s always been done but instead look for new solutions to meet customers’ needs. Just like in the B2C world, B2B companies need to always be evaluating their approach to customer experience to stay on top of new trends and technologies. A digital transformation can help companies become more customer-centric to guide their customers through the changing digital world.

It’s a problem nearly every woman has faced: shopping for clothes and taking dozens of items into the dressing room, only to come out with just one or two items that fit. It’s a frustrating experience and one that can cause women to internalize their difficulty finding clothes that fit as something being wrong with their body.   But a new company is getting rid of standard sizing to create personalized, tailored clothing items designed to fit each customer’s body. Instead of standard sizes, customers can easily get clothes that fit their bodies perfectly. Every woman’s body is different, and it’s rare for someone to actually fit nicely into a standard size. RedThread was founded by Meghan Litchfield after she realized that she wasn’t alone in her shopping frustration. Countless other women also had difficulties getting the perfect fit, especially as their bodies changed. Litchfield and her team aim to turn that frustration around to create a positive shopping experience for all women. RedThread uses a 3D sizing model to customize fit, and the entire thing can be done from a customer’s living room. Each customer starts by taking a fit quiz so that RedThread can understand their fit preferences and what fit issues they commonly have. If pants are usually too long or too baggy in the thighs, the RedThread team takes that into account in their sizing model. Each customer is then sent a unique link, which she follows to take three photos of herself and one of an empty room. Those images create a 3D model, which pulls 15 specific measurements to get the right fit. RedThread tailors then create the item of clothing to match the size and fit preferences. The finished product is delivered to the customer’s door within a week. So far, Litchfield says women are enjoying the experience. Aside from creating clothing pieces that women love, RedThread’s goal is to give women the convenience and ease they crave. Modern women don’t have time to search for the right clothing items and take a gamble if they will really fit. In an industry that has long stood by standardized sizing, RedThread is changing the paradigm. Litchfield wants to own the entire process, starting with how women shop to how the clothing items are sewn and delivered. So much thought is put into each piece, which guarantees a great experience.  Instead of being stuck in a dressing room with nothing that fits, women can now be confident that their clothing will be comfortable and tailored exactly to them. RedThread shows how truly listening to customers can help meet their needs. Understanding your customer and taking the time to create a high-quality, customized product goes a long way in customer experience.

In a world where most of a company’s marketing and customer experience budget goes to new technology and flashy ads, it’s time to get back to the basics of word of mouth. According to Jay Baer, co-author of the new book Talk Triggers, it’s all about talking to customers and getting to know them. From there, brands can create talk triggers. It’s a simple concept but can be incredibly effective. A talk trigger is a strategic business choice that compels conversation. In order words, what can your brand do differently that people will talk about? Baer gives the example of Cheesecake Factory’s massive menu, which has hundreds of items and almost 6,000 words to describe them all. The menu didn’t just happen—it’s a strategic choice by Cheesecake Factory that gets people talking. Baer’s research found that 38% of Cheesecake Factory customers have talked about the menu in the last month without being asked. The novel-sized menu is a simple thing that encourages conversation and makes customers advocates for the brand. To be effective, a talk trigger must meet four requirements: be remarkable, relevant, reasonable and repeatable. As Baer points out, this isn’t about surprise and delight and creating an amazing experience for one customer. It’s about doing something believable and unexpected that all customers can experience and talk about. DoubleTree’s famous chocolate chip cookies are a great example of a talk trigger. The simple act of giving each guest a warm chocolate chip cookie when they check into the hotel makes a huge impact of the customer experience. People talk about DoubleTree cookies all the time, which is one of the reasons why the company doesn’t have to spend a lot of money on advertising. Every company can create a talk trigger. Baer recommends mapping the customer journey and identifying potential touch points and triggers. From there, interview new customers, long-time customers and lost customers to get their perspectives on the brand. Use that information to create something original and unexpected. What can you do that customers don’t see coming? That’s how you get them talking. Although data and technology play a huge role in customer experience, we can’t forget about the old standbys, including word of mouth. Taking time to understand customers and get them talking can create a memorable experience and make them loyal brand advocates.

In a world where older women are often expected to look and act a certain way, Chico’s is spreading a message of age positivity. The clothing store recently launched a marketing campaign and video that shows a 58-year-old influencer asking women if they would wear their age on a t-shirt. The idea is to showcase that getting older is really just getting bolder. Chico’s “Bold” campaign has received hugely positive reviews as women embrace the idea of showcasing their boldness and experience. In today’s world, it isn’t enough to just talk about products. Customers, especially women, care about a brand’s purpose and want a brand to stand for something they can relate to, says Chico’s CMO Shelagh Stoneham. Studies have shown that women are most comfortable with themselves when they are 60 years old, but so many messages in society go against that and say that older women shouldn’t take risks and be bold. Chico’s aims to show that women can do anything at any age and that women should dress themselves in a way that is true to them, regardless of their age. At Chico’s, aging is a badge of honor, not something that should be hidden. In order to successfully market the message of age positivity, Chico’s dove into research to find out about its customers’ demographics and what they wanted. The majority of Chico’s customers are age 40 or older and are experiencing changing bodies. Chico’s wanted to shift the perception of its brand and showcase that women of every age can accept their bodies, be confident and show their boldness. Customers and potential customers have connected with the authenticity of the message and campaign. Chico’s message is more than just words. The brand and its employees really believe that they are saying and walk the walk by showing their own boldness at every age. The marketing campaign is part of Chico’s larger focus on customer service. Stoneham says clothes are a form of self-expression. Chico’s focuses on delivering the most amazing customer service with its stylists who are trained to connect with customers and help them put together outfits that make them feel as beautiful, confident and comfortable on the outside as they do on the inside. Chico’s customers are so loyal that many have built decades-long relationships with associates. Employees spend time asking questions and are trained to be sensitive to customers and deliver high-quality, personalized experiences to everyone who walks into the store. Chico’s is constantly listening to customers and finding out what they want and need. Customer feedback is added into products, marketing campaigns and the entire experience. Chico’s shows that embracing an authentic message like age positivity and making it a hallmark of a company’s marketing can be incredibly successful. By standing for something more than just their clothes and highlighting a message that resonates with women, Chico’s is fighting ageism and connecting with customers.

A stock exchange might not seem like the most likely place to publish fresh social content and connect with younger generations. But then again, Nasdaq has always been ahead of its time. Nasdaq was the first electronic stock market and dates back to the 1970s. Although most people have probably heard of the company, many of them couldn’t actually tell you what Nasdaq does. That’s where Chief Digital Officer Josh Machiz comes in. His job is to connect Nasdaq with a younger audience and tell the story of what Nasdaq actually does. With a fresh strategy and relevant content, he’s connecting with a new audience and growing the company’s brand and experience. When Machiz joined the Nasdaq PR team in 2013, the company wasn’t doing much—if anything—with digital marketing and social media. But because Nasdaq is focused on innovation and technology, Machiz knew the company had to be able to showcase the stock market of the future digitally. A focused effort on growing social content has increased Nasdag’s followers from 20,000 to more than 3 million in just five years. Part of the way Nasdaq is gaining traction is by focusing on the innovators who are changing tomorrow. Companies come to Nasdaq to go public on the stock exchange. As Machiz says, the company is a dream factory where dreams come true. Many of the recent companies to go public resonate with entrepreneurs at different stages of building their companies. Nasdaq’s social content is aimed largely towards younger entrepreneurs and Millennials. These people likely aren’t the ones who will be considering taking their companies public any time soon, but it’s never too early to build a loyal audience. Younger people are very influential to older people. As today’s entrepreneurs and founders get even younger, it’s important to get in early with a consumer audience and build the next cohort of potential customers. Social content is huge for attracting a younger audience and showcasing the Nasdaq brand of innovation. One of the hallmarks of Nasdaq’s efforts is the “Never Settle Show”, a weekly talk show in front of a live studio audience that’s live streamed around the world. The show is regularly recognized for its interactive nature and even won a New York Emmy. The “Never Settle Show” covers the entrepreneurial hustle and is all about removing boundaries to entrepreneurship and making it accessible to everyone. Aside from the talk show, Nasdaq also has other podcasts and shows to showcase its brand and connect with a new wave of entrepreneurs. Live shows are popular at Nasdaq, though that hasn’t always been the case. Aside from the “Never Settle Show”, Nasdaq has also partnered with CNBC to broadcast “Squawk Box” and “Fast Money” every morning and evening from its innovative market site. Machiz hopes to increase partnerships in the future with online publications and new media outlets to expand Nasdaq’s audience.  As technology grows and changes, Nasdaq will keep growing right alongside it. The company already has big plans to integrate AR and VR offerings into its social content and office space. Nasdaq is living proof a company in any industry can transform its brand and connect with customers on a different level with quality social content.

Shopping for a new couch or rug is unlike any other kind of shopping. First, customers don’t buy these kinds of household items as often they do other products, and they often don’t know what to search for. Instead of knowing the right keywords to search, buying home items is more about the visual approach and knowing what items look good in the space. A customer might want a blue rug, but they don’t know what brands or details to put into the search bar. That’s part of the reason Wayfair, the largest online provider of home goods, relies so heavily on algorithms and analytics. The company has algorithms for managing all areas of the customer experience, from what a customer sees on targeted web ads to what delivery experience they have and how often they receive marketing emails. It’s all in an effort to better understand customers and make it easier and better to buy home items online. Wayfair uses visual search and computer vision to add a visual element to AI. Customers can take a picture of something they see at a friend’s house or in a store, and Wayfair’s visual search finds products that look similar. It makes for a more pleasant shopping experience than trying to find the right keywords to match the look a customer is going for. According to John Kim, Wayfair’s global head algorithms and analytics, much of the company’s success in customer experience comes from how it leverages its computer vision. Wayfair has 1,900 engineers and data scientists that are broken down into customer experience pods. One group focuses solely on how customers find what they are looking for, including things like keyword search, visual search and targeted ads. Another pod focuses solely on the buying aspect of the customer experience and makes it as seamless as possible for customers to buy what they want. Pods work together to make their aspect of customer experience the best it can be. By bringing together data scientists and engineers, the pod can not only come up with great ideas, but it also has the skillset to put them into action quickly. Wayfair’s culture focuses on customers and analytics. No matter if an employee is in marketing or IT, they understand the importance of analytics and can speak the language. Customers are the focus of everything the company does, and it aims to move quickly and respond to customer needs. Wayfair also uses technology as it moves towards the future. It recently partnered with Magic Leap to introduce mixed reality shopping, which allows customers to virtually see products in their homes to make sure they fit the space and style of the room before making a purchase. It brings together the best of AR and VR for an enhanced shopping experience. AI is the future, and it has a major role to play a Wayfair. Focusing on algorithms, visual shopping and AI-powered analytics drives a successful customer experience and makes it easier for customers to find what they need online.  

Some people say millennials don’t golf. That might be the case in the normal world of golf, but at Topgolf the stats show a different story. 51% of Topgolf customers are people who don’t play traditional golf. At Topgolf, customers visit for an experience away from other entertainment options they might have. According to Erik Anderson Topgolf Entertainment Group's Executive Chairman, they are competing with everyone including Netflix, bowling, music events or people who simply choose to sit at home on social media. It used to be that golfing was reserved for older people with money. It meant spending the morning on the golf course doing 18 holes. Today, you can get the same golfing experience, but with music, lights, food and friends. Topgolf is changing how people golf and capturing the future of customer experience. Creating Moments that Matter Topgolf competes in the attention economy. It’s up against anything else that can capture people’s attention, and in order to stand out, the company aims to creates moments that matter. Part of the reason for Topgolf’s success is that Erik Anderson and his team view the company as a creative company instead of a service company. It’s not just about serving customers their food or ball buckets—it’s about being creative to exceed their expectations. The goal is to create moments that matter, and employees at all levels are encouraged to be creative to do that. Anderson tells the story of an 11-year-old girl who celebrated her birthday at Topgolf. She didn’t like the guacamole she ordered because there was too much stuff in it. Instead of just offering a refund, the chef came out to talk to the girl and made a simpler version of his recipe that she loved. The creative approach to solve the problem helped create a great experience for the girl and her family. Customer Experience Defined Anderson’s approach to customer experience at Topgolf has three parts: 1. Must be authentic. Topgolf is a modern take on golf, but it is still an authentic golfing experience that has been updated. 2. Creates community. The goal of Topgolf is to allow people to golf how they want to. Guests can play games, watch TV and have fun. The experience is aimed at creating community and allowing people to experience great moments together. 3. Use technology to extend the community. The experience is designed to be shareable, which is huge for younger customers who share everything. Customers are encouraged to stay in touch with the brand through social media even when they aren’t golfing. A Culture of Trust Those three elements work together to build a culture that celebrates creating moments that matter. Leaders trust employees to create a great experience. Employees have to learn to take on that trust and be responsible for customers. Anderson likens it to a rowing team. Each person on the team must be precise and trust every other team member. If anyone takes a stroke off, the boat veers off course. Topgolf creates a culture where employees know their colleagues will do what they need to do. Employees trust each other and are allowed to be creative. Customers can tell the difference. Topgolf’s approach to creating an authentic customer experience shows what things will be like in the future. Instead of focusing only on basic customer needs, brands should consider the entire experience. Be creative, think outside the box and trust your team to create great moments for customers.