7Oct2024
Why do so many world class companies feel boring to interact with? Why do so few customers feel compelled to talk about the businesses they interact with in a positive light? In a compelling keynote address at Nordic Business Forum 2024, Steven Van Bellegham, a true Customer Experience Expert and the Co-founder of Nexxworks and Snackbytes, shed light on the essential leadership transformations businesses need to undergo to become customer-centric.
The Paradox of Customer Experience
Steven began by highlighting a significant paradox in customer experience: while companies often profess their commitment to customer-centricity, many fall short in execution. “Every company that I meet has great intentions.” However, the fact that only 1-5% of customers have experiences so positive that they share them with others serves as a stark reminder that intentions do not always translate into effective actions. Steven encouraged leaders to ask themselves “what we did to make the 5% so enthusiastic—and what did we forget to do for the other 95%?”
Unlike other industry experts, Steven believes technology will not solve this paradox. Citing Netflix as an example of a world class technology brand, Steven remarked that “in the beginning, they had the wow factor. After a while, we said they’re expensive. Today, many people say they can’t find anything to watch.” Steven believes a superb customer experience is how businesses will keep the wow factor high.
In short, “A fantastic customer experience is an exceptional differentiator driven by customer culture.”
A Positive Mindset Shift
For a business to build exceptional customer culture, Steven revealed that they must undergo four key transformations, the first of which is a mindset shift towards positivity. Steven was surprised at how many companies still communicate negative things to their customer bases, “often telling them what they won’t do instead of what they will do.”
Drawing parallels with the highly successful feel-good movie Top Gun: Maverick, Steven asserted that customers crave positivity and predictability. “Look for the details: automated emails, invoices, every touchpoint. Where applicable, adding positivity to these interactions will make your customers happier.”
Build Credibility and Trust
“A big problem for many leaders is that your team and customers don’t believe that you want to be customer centric.” According to Steven, this is the result of not adopting an “always fix it” mindset that serves the 95% of well-meaning customers, instead focusing on limiting the damage caused by the 5% of customers that make things difficult.
“Theft-proof hotel hangars address the 5% of guests that steal items, but lower the service quality for the remaining 95% that don’t cause problems,” Steven cautioned. A leader’s mindset should be to deliver exceptional service for the majority, and accept the rest will never be pleased.
Understand Your Customers More Deeply
Steven’s third transformation emphasized a more nuanced appreciation of customer needs.
“Like the oxpecker that acts as a poacher alarm for the rhino, your customers expect you to be present in a non-obtrusive way—but add value at the right moments.”
If a business is to become an oxpecker, it has to foster a culture of effective empathy by:
- Observing the differing needs of customers “in the wild.”
- Reading between the lines of customer requests to find the root cause of their issue.
- Giving space for your team to develop this mindset.
Citing a daily ritual of the hospitality team in Dubai’s Atlantis Palm, Steven revealed they identify unanswered customer questions—and install a new process for handling them—the same day they were raised. This combination of fast feedback loops and fast action loops “is very powerful if you master the art of keeping things small.” This creates the ability to say “yes” more often, and an unexpected “yes” sticks in the mind.
Loyalty Beyond the Transactional
As Steven emphasized in his final transformation, “Doing business from the heart is the foundation of loyalty.” He continued by critiquing the transactional nature of loyalty programs that require the customer to “buy 10 cakes to receive the eleventh for free.” Instead of asking how we can make our customers more loyal to us, Steven asked the audience to consider how we can show more loyalty to our customers.
Sharing the story of a Belgian chocolate company’s decision to email every customer and offer two free chocolates for pick up at every store, Steven revealed how this led to increased customer foot traffic and in store purchases sales.
Focus on 50 Small Things – Not One Big Change
Steven reiterated how continuous, small improvements form the bedrock of exceptional customer experiences. “Former Navy Seal Admiral McCraven said if you want to change the world, start by making your bed. This, for me, is the essence of customer experience.” For context, leaders tend to overestimate the impact of one strategic project and underestimate the impact of 50 small, easy to implement improvements.
Wrapping up, Steven issued a call to action:
“Think about how you will get the next 100 customers you serve to talk positively about working together with you. If you do so, that will help you to become that beautiful shiny diamond.”
Key Points
- Intent vs. execution: Companies often have strong intentions toward customer-centricity, but execution often falls short, as evidenced by the small percentage of customers sharing positive experiences.
- Positive communication: Shifting the communication mindset from negative to positive is vital for creating meaningful customer interactions.
- Credibility through trust: Organizations must cultivate an environment that trusts the majority of well-meaning customers rather than catering to the few who may exploit systems.
- Empathy in understanding: Developing a culture of empathy and understanding customers’ needs on a deeper level can significantly enhance customer relationships.
- Authentic loyalty: True loyalty is nurtured through genuine appreciation and emotional connections rather than mere transactional incentives.
Questions for Reflection
- How can you assess whether your organization’s stated commitment to customer experience aligns with actual customer perceptions?
- In what ways can your organization shift its communication strategy to prioritise positive interactions with customers?
- How can you foster a culture of credibility and trust among your customer service team?
- What steps can you take to better understand your customers’ unspoken needs and expectations?
- How might your organization redefine loyalty to focus more on the customer experience rather than transactional rewards?
