Thursday, December 13, 2012

The Misinformation Age

An article I read presented a study that suggested about 70% of customers are misinformed - such that the task of helping them select a product that is likely to meet their actual needs is made more difficult because the customers have done research on the internet and have been misled by inaccurate, incomplete, or misleading information.

I won't link to the article or the study because I find it to be specious, stilted, and unscientific. It was an informal survey done of salesman - whom I suspect to be strongly biased (to say the least) to dismiss any information that gives the customer the idea they don't need what the salesman wants to sell them. While I regard the survey as invalid, that's not to say it doesn't raise a very good point that would likely be supported by a less questionable investigation.

It speaks to the problem of half-wittedness, which I sense to be one of the major issues of the present age: a person who knows nothing is able to learn, but a person who knows something acts boldly and with confidence, even if the information he has is insufficient or wrong. Such people do a great deal of damage to themselves, and in some situation do a great deal of damage to others.

To better concretize the problem, consider the issue of medical information on the Internet: a person becomes very certain of his condition and the treatment he requires because of the incomplete and inaccurate information he is able to find online, even to the point that he becomes confrontational with a medical professional who is attempting to treat him.

If a doctor's diagnosis disagrees with what the patient has found online, he is likely to disregard the advice and regard the doctor as incompetent. The same problem is evident in a variety of situations: the misinformed patient, the misinformed customer, the misinformed executive, etc. In virtually any situation where information is taken into account when a decision is made, it has the potential to be poisoned by incomplete and inaccurate data - and given the degree to which people turn to the Internet as a tool for gathering information to make decisions, the potential is being fulfilled.

From what I have seen, social media is making the problem worse rather than better. When information from alternative sources disagrees with information from traditional sources, some people seem to believe that they have discovered something new or a truth that the establishment is attempting to prevent from leaking out, and they leverage social media to spread the disinformation.

Not only does this person spread misinformation, but social media metrics are based on the number of people who express an opinion, rather than the validity of the opinion itself. Therefor, a bad opinion that is widely discussed is given more prominence and, by some measures, more creditability that valid information.

This likely leads my meditation in a different direction than I had intended, so to drag it back on track ... the point I intended to work toward was that the amount of misinformation and the level of faith that is being placed in it makes it extremely difficult to provide good customer service. Where customers are misinformed, yet staunch in their belief that they have valid information, it is difficult to un-poison their minds and get them to recognize valid information.

The problem is so difficult that many firms seem to have given up even on trying: they give the customer exactly what the customer demands in order to please them immediately, but later find themselves in confrontations with dissatisfied customers because the product or service they specifically demanded did not achieve the outcome they had hoped for.

What results, in disturbingly many instances, is service providers that must defend their products against customers who found them to be unsatisfactory - by the wording of the contract, the print on the label, and the disclaimers on the Web site, the service provider has delivered as promised. This is generally a valid defense against consumer lawsuits, but it is also highly effective in preventing customer satisfaction.

There doesn't seem to be a singular solution to what has become a widespread problem - but it is a frequent, widespread, and persistent issue with which companies and brands must contend in the (mis)information age.

Tuesday, December 11, 2012

The Customer Experience Fad


In one of the forums I frequent, someone issued a lengthy diatribe against customer experience - suggesting it was just snake oil and didn't do firms any good, and that many corporate bigwigs feel the same way.   I'm copying my response (a little different to what was posted to the forum because character limits compelled me to shorten it) here, as I think this attitude is worth considering  when making any suggestion to the contrary...

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The concept of "customer experience" is fairly new and I cannot disagree that it has the distinct aroma of a fad.   Some practitioners are dishonest, and use CX as a label on the very same bunkum they sold as "intercompetitive synergistics" or whatever the popular thing happened to be called last year, and clients who don't understand what it means but want to buy some anyway, hand buckets of cash to anyone who promises to deliver - and are disappointed when the magic doesn't happen overnight.

You can't expect a C-level officer to admit he was mesmerized by buzzwords and failed to practice due diligence, disregarded the advice he paid for, or rolled up a program prematurely to admit he got fast-talked, willfully disregarded expertise, or lost his nerve too soon ... such an executive would seem incompetent.   He must let on that he made a sound decision and that CX just doesn't work.

The core principles that drive CX are difficult to refute: all income is given to a firm by customers, who assess their willingness to do business with the firm according to the experience they had - and whose word-of-mouth is the most credible source of information for others who are assessing whether engaging with the firm is worthwhile.   If customers have a positive experience of interacting with the firm and using the product, they will buy again and encourage others to do the same.   If they have a poor experience, they will take their business elsewhere and encourage others to do the same.   I don't think you can disagree with any of that that.

The problem within CX is that it is still very young.   Practitioners seek to understand what causes the customer to have a positive experience, and those who are intelligent and humble will readily admit customer satisfaction derives from a number of sources - the functional benefits of the product, the full price (which is more than the nominal money-price), the way they are treated by the firm in each interaction, what other people think of them for using the product, etc.    There is no single, simple answer, and many are clutching at straws.  Even the few who do research find there are factors they fail to identify, often revealed only when their plans are being executed.

Some of the factors that impact customer experience are not fully understood - and the reasons they are not understood are likely 20% that more study is needed to understand the factors, and 80% that the firm needs to understand how reasonable and well-researched theories can be put into practice, given the idiosyncrasies of their own customer base.   If their desire is genuine, it's likely that the firm was unwilling to invest the time and budget in doing sufficient research - to understand, before planing, before acting.

The more common problem in the business world is much more fundamental: the customer isn't sufficiently valued in the first place, which is why firms are unwilling to spend the time and money on understanding how to serve them better.   There's a great deal of navel-gazing and a desire to keep things the way they are, longing for the good old days when the customer would accept what ever was offered and kowtow to the provider because a single seller was the only source from which customers could get a specific product or service they needed ... and if they didn't like it, they would have to do without the product and suffer from unfulfilled needs because there was no other source.   That has changed and businesses must change, or cede the market to competitors who will.

However, some firms cherish business-as-usual so much that, when there is an opportunity to change their business processes to better serve the customers, they decide would rather keep their business processes than their customers.   So they reject the notion of customer experience, or compromise based on what little they are willing to do in order to avoid changing the business processes.   It's not until the customers leave in sufficient number that they realize that the firm does not exist by preserving its business practices, but by serving its customers.

What all of this implies is this: customer experience isn't something a firm can pay a consultant to do for them.   It has to start within, with a company that recognizes the customers are the source of all its revenue - and it must seek to understand the reasons customers are willing to do business with them, and be willing in turn to make the changes necessary to genuinely serve those needs and desires better than anyone else can.

Said another way: a business that doesn't understand and value its customers will likely hire consultants that don't understand or value them either - and the only good that will come of it is that the executives will have someone else to blame.

If you want to achieve real results, put real effort into it.   Hiring a consultant and letting them do what they will is tantamount to abdicating your own responsibility to discover and deliver the value your organization provides to the market.   Instead, seek to hire the help you need to understand what customers value, then hire the help you need to make the changes necessary to deliver an experience that achieves that end.   You must be very closely involved throughout, and not merely hand over the keys.

If you fail to be careful and deliberate, understanding what you're buying into, you will not achieve much except by accident ... but don't make out it's someone else's fault when that happens.


Saturday, December 8, 2012

Scientific Selling

I've recently added reading notes for Scientific Selling, which discuses the value of applied psychology to the sales process - or more aptly, its application to the management of sales staff - largely stilted to promote the authors' own consulting services, but which nevertheless provides some insight into the possible application of valid science to the selling process.

It's an interesting read, as many books on the topic of sales are based on folksy wisdom and self-aggrandizing tall tales, neither of which contributes to an understanding of the topic or a sense of practical application that would be beneficial outside the idiosyncratic case-studies presented.

Aside of the obvious topic (selling and sales management), there are some valuable insights into the selection, hiring, training, and coaching of employees that might be valuable in any context.

There's also excellent food for thought that can be put to practical use when designing user interfaces that are intended to serve as a substitute for a "live" salesman or customer support representative. It's definitely worth taking into account when designing user experiences related to prospecting and selling.

I have the sense that this note is more in the nature of a book report than a meditation - just too many topics to reflect upon at the moment, and it's more of a reminder of myself to dig back through the book and explore some of them in future notes.


Tuesday, December 4, 2012

Compromising Experience


I noticed an off-brand of tomato sauce at the supermarket - it caught my eye because it was sold in a slightly larger can than the other brands between which it was shelved, and it struck me as an interesting and effective packaging gimmick - but on closer inspection, it led my thoughts in a different direction: to the way in which customer experience is compromised for other goals.

Specifically, the "large" off-brand can contained 16 ounces of product - an even pint - whereas the leading brands were sold in odd quantities, 15 ounces or 14.5 ounces.   Quite some time ago, most products were packaged in more or less even quantities (a 16-ounce pint, an 8-ounce cup, or a 4-ounce half-cup) and that today, most brands seem to offer slightly less (14 ounces, 7.5 ounces, 11 ounces) that don't even come out to an even quantity in metric units.

This is a common observation, and the knee-jerk reaction among people who notice is along the lines of "they are cheating me."  There's some argument that firms were faced with increasing ingredient costs and made a compromise: to keep the unit cost to the customer the same, they would reduce quantity per unit, so it's for the economic benefit of the customer that package sizes were reduced so the package price could stay the same.  I don't think this dismisses the complaint, especially since the producers who short their content during a crisis never seem to size their products back up to the previous standard when ingredient costs normalize.  Also, when you consider price-per-ounce, the customer is still paying more, and the producer is hoping they don't notice.

But more to the point, companies that make such decisions have clearly failed to consider the impact to customer experience.   That is to say that the producer didn't consider the consequences of downsizing their product after the financial exchange - specifically to the experience of the consumer who will be using the product after it has been purchased.

Obviously, a shopper buys tomato sauce because it is an ingredient in a recipe (I'm not aware people heat the stuff up and eat it like soup) - and the recipe calls for a pint of tomato sauce.   So in a situation where 16 ounces is needed and the product is sold in 14-ounce increments, the ultimate outcome is negative:

  • Compromise: the customer can buy one can and accept that the meal they make will taste slightly off due to the imbalance.   The conclusion: "Brand X makes my recipes taste worse"
  • Complexity: the customer can buy one can and adjust the remaining ingredients proportionally, doing the calculations to consider that if they use 14 ounces of tomato sauce rather than a pint, they would have to add 1.75 tablespoons of basil instead of two.  The conclusion: "Brand X makes cooking more complicated."
  • Dissatisfaction: Another consequence of the previous solution, downsizing the recipe to accommodate a smaller package, also means having less benefit (food) than is needed.  It's just a little less, bit it leads to the conclusion: "Brand X does not fully satisfy my needs."
  • Guilt: the customer can buy two cans, use 16 ounces, and throw the other twelve ounces away because it is not needed.   The conclusion "Brand X is wasteful."
  • Obligation: the customer who buys two cans and has leftover, and can't bear the guilt of throwing away perfectly good food, could find another use for the leftover 12 ounces.  The conclusion: "Brand X burdens me with additional tasks"
  • Disgust: the customer who has leftover and fails to make use of it quickly will eventually notice a smell of rotten tomato in his refrigerator, emanating from a container of leftover sauce that has turned foul.  The conclusion: "Brand X is disgusting"

I don't think that any of these conclusions are attributes a firm would like to be associated to its brand - nor do I think that if the full range of outcomes were considered, producers would have been so hasty to make this compromise.   All that was considered is that reducing package volume would enable the firm to maintain profit, and maybe get people to buy an extra unit once in a while.   And if customer experience were really considered, it would be clear that all of these problems are not worth saving a nickel or a dime on the purchase price.

It's worth noting that all of this is speculation - that customers have largely accepted the compromises above, though likely not because they had a choice: all a customer can do is decide whether to accept what is offered or undertake the effort to find other alternatives, and when their preferred brands and close competitors all made the same operational decision, the customer has to accept as fact that tomato sauce now comes in 15-ounce cans (for all brands) and to ratify the decision with their dollars.

It would be interesting to see if the emergence of a competitor (the off-brand that caught my eye) will lead the remaining brands to upsize their packages, but I don't expect that to be so.   People have strong loyalty to the brands they buy habitually and accept disappointment as a matter of course, and its likely that recipes that call for "a can" of product are used by the people whose palates are not that discerning to begin with.   It's a bit depressing, and very counterproductive to the general welfare ... but such is the way of things.

I recognize that I am lapsing in a cynical state of mind and meditating on this topic urther will likely not be productive - but to end with a quick summary of the points: decisions made for reasons of economy and efficiency can easily achieve their primary goals, but often at the cost of customer experience - and that it's worthwhile, and perhaps even critical in the long run, to pause for a moment to consider the full breadth of the consequences.

Monday, December 3, 2012

Broken But Usable

A site I use to track investments was still broken this morning - though I suspect that it wasn't the site itself, but one of the gateways, proxies, or whatnot that constitute the labyrinthine firewall at work was preventing the stylesheet from loading, so what I saw was a bit ugly - here's a screenshot of the "broken" and "normal" views of part of the screen:



What struck me as worth mentioning is that the broken site was still entirely usable.  For my immediate purposes, I still had an at-a-glance view of all the securities I was tracking (though I had to guess what the second symbol was and squint to see the first, third, and fourth), I could still click links to ancillary information such as the chart and board.   Within about ten minutes, the situation was rectified and back to normal, so I didn't get the chance to fiddle around with the other links and utilities - but by that point, I had all the information I originally wanted and was done with it.

I tried the same experiment with a different finance site I occasionally use - went into the browser settings and told it to ignore the stylesheet.  Not only did the display render in a completely unreadable manner, but none of the buttons worked, and most of them had disappeared.   It was completely hosed, useful for nothing at all.

I would very much like to give credit to the designers of the first site for making sure that it was usable even when conditions weren't perfect ... though I don't know for a fact that they even thought about it, and the way that the left column overlays the first column of the table suggests that the result is a lucky accident.   But I was nonetheless impressed by the fact that the site, while broken, was still completely usable, insofar as I needed it to be at the time.

This calls to mind some of the incidents I've had with my vehicle, as opposed to my wife's experience with hers.   I ran over rather a large piece of rebar, but the "self-healing tires" enabled me to get through my day just fine and have the tire replaced after work; another time, my transmission broke (I'm not mechanically inclined enough to be more specific than that) and the vehicle went into "limp-home" mode and enabled me to drive it, albeit very slowly, to a repair facility a few miles away.   Meanwhile, my wife once went out to her car to find it wouldn't start at all - the battery was fine, but the starter would not engage.  Why was this?  Because the parking brake sensor, which has absolutely nothing to do with the vehicle's ability to run (and safely), had failed and the onboard computer, noticing this picayune issue, went completely limp.  German engineering at its finest.

The point I'm getting at is that I expect, and feel I am right to expect, that the things I own will still work even when there is a minor defect and conditions are less than perfect.   Certainly, there are catastrophic errors that, when they occur, should cause the entire system to shut down and prevent any kind of interaction at all to prevent serious damage.   If my wife's brakes had failed, not just a parking brake sensor, shutting the system down and not letting her drive at all could prevent serious property damage, injury, and even death.   And I would be grateful that the designers had the foresight to prevent the vehicle from being driven.   But again, I can't give them credit for that - they had a system that stopped working altogether, likely by happenstance rather than intention, when a minor and inconsequential part failed.

Ultimately, this brings me to the notion that a site, product, or system of any kind that will operate only under perfect conditions and will break down completely when even something relatively minor goes wrong cannot be described as being well designed.   And given the way in which many products become entirely unusable when something small goes wrong (and especially that they are cheaper to replace entirely than repair, but that's a different rant entirely), I'm led to the sense that many of the products available today are, in spite of great effort, very poorly designed.   They just don't make them like they used to.