A difference exists between what people say they will do and what people do. People say they want salads in theme parks but order hamburgers. People say they want to save the planet but then ignore the recycling bin. People say they want many choices but then complain that there were too many choices to decide. In short customers are irrational! We recently enjoyed debating this in our podcast Why Are Customers Irrational?
Barnes and Noble is learning this concept the hard way. People say they want major brick and mortar bookstores nearby, but then they don’t buy anything there!
I was texting with my daughter the other day and there was a pause in the conversation. I could see the three little dots. Surely she was typing a clever response to the remark I’d just made. I couldn’t wait to see it, so I sat there, phone in hand, staring stupidly at the little dots.
I went on like this for maybe a minute and a half before I realized I was being silly. My phone would alert me if she responded, so why was I glued to the screen?
How big does a company need to get before it is too big to care about Customer Experience? If this week’s news is any indication, telecom customers in the U.S. and grocery shoppers in the UK could find out.
We all can see from surveys like this (#2), or this one(#6), Customer Experience has been a significant area of concern for many CEOs recently. However, in my view, the Customer Experience (CX) movement has plateaued over the past couple of years and I question the real commitment of CEO’s to CX.
Facebook is in hot water with their users regarding the use of personal data. No matter where you are as a Facebook user—or not, as the case may be—we can all learn three crucial lessons from Facebook’s mistakes.
To summarize, the Facebook Cambridge Analytica scandal broke in March. Cambridge Analytica, a data firm that helped Trump win the 2016 election, had the personal data of around 87 million Facebook users. When compounded with allegations that Facebook allowed Russian propaganda and phony headlines to reach and ostensibly influence voters, this news invited scrutiny on how the social media site uses personal data.
Starbucks has announced that it will close more than 8,000 company-owned stores on May 29 to present racial bias education to its employees. This dramatic move is a response to last week’s incident at a Philadelphia Starbucks, where two black men were arrested as they waited for a third man to arrive for a meeting.
The response by Starbucks CEO Kevin Johnson has been impressive. I view it as a good example of a company taking responsibility for its wrongful actions and standing behind its stated values. Values help a company connect emotionally with its customers. But when a company says it believes in one thing and then does something completely opposite, customers notice. They lose trust, and the company loses loyalty.
A lot of business professionals talk about customer loyalty. However, if I’m totally honest, they often don’t know what they are talking about. Or they do know what they are talking about, but what they are talking about is not customer loyalty!
Many of the organizations I have worked with say that customer loyalty means, “the customer buys everything from us.” But buying everything from you does not make them loyal. Great customers? Yes. Loyal customers? Not so fast.