The Effortless Experience: Book Review
Besides that, to have a great customer experience (and conversion) in your digital channels you have to understand customer service!
So I decided to buy a book about customer experience. "The effortless experience" by Nick Toman and Rick Delisi. I've read it and below a short summary of my findings combined with my personal opinion and the relation with digital.
First the book starts with asking the question: what companies you do business with or buy from specifically because of the exceptional customer service they provide?
Then the follow up question is of course: what companies have you stopped buying from and refused to do business with because of the awful service you have experienced?
The second question is often much easier to answer then the first one.
This is in line with a recent study in China I published at my slideshare profile, where negative messages spread much faster at social media.
I sometimes buy with Coolblue, a company in the Netherlands which is know for it's excellent customer service. It's customer service reputation, might be a reason to buy there, but for me personally it is not my trigger to buy there. I bought a few products there this year, but I never needed the customer service department. So service for me, is not differentiator for buying at coolblue.
They just need to meet my expectations in delivery, communication and quality. And they do.
Should companies try to create differentiation and build customer loyalty by delivering superior service?
The answer to this question is in the book. Below the key findings.
The book defines three definitions of loyalty
- Repurchase - customers continue to buy from your company;
- Share of wallet - customers buy from you over time;
- Advocacy - customer say good things about your company.
All the things in a service interaction that could make customers loyal to companies, which ones actually do?
The authors did extensive international research to answer this question. They conclude the following:
- A strategy of delight does not pay
- Satisfaction is not a predictor of loyalty
Satisfaction does not always means loyalty.
- Customer Service Interactions tend to drive disloyalty, not loyalty
|Impact customer service at customer loyalty|
|A positive product experience has more impact on loyalty |
then customer service
- The key to mitigating disloyalty is reducing customer effort
The main argument in the book according to the authors is : mitigate disloyalty by reducing customer effort. That's the strategy you should handle.
Hej, customer effort, I remember, I wrote about it earlier, you can measure that :)
Read much more and the relation about customer effort score and digital marketing at the next page!
Why does a strategy of delight does not work for most company's?
- It does not work because delighting customers is rare and it does not make customers more loyal;
- It does not because customer service interactions are four times likely to drive disloyalty;
- It does not work because it is not improving the customer effort.
Lowering costs by sending people to self service, in the long run, is not always that easy. The majority of calls at some big companies with self service are from people who already tried self service, but somehow they got stuck or cannot find the information at the website.
Customers who attempt to use self service but fail and then have to call, are 10 percent more disloyal then customers who are able to resolve their issue in the channel of their choice.
Key is: avoid channel switching for customers!
How to avoid channel switching and by doing that, decrease the disloyalty?
It's starts with analysing data. If you have an integrated CRM/Website/Phone information system then you have the ability to analyse lot's of data and after that improve your processes and systems, but most companies do not have all of this integrated. Then this call script can be very convenient to reduce your channel switching customers and increase loyalty.
|Decrease channel switching by asking a few simple questions|
- Able to handle high pressure situations without becoming burned out;
- Takes responsibility for own actions;
- Repsonds well to constructive criticism by managers;
- Able to concentrate on tasks over extended periods of time.