Managing the Customer Experience: Turning Customers into Advocates [Hardcover]

This book builds on the original thinking by Pine and Gilmore in the book "The Experience Economy" (also recommended) which sets out the ground-rules for making a service into an experience for the customer.

Smith and Wheeler offer some good examples from companies like Richer Sounds, First Direct, Carphone Warehouse, Harley Davidson and Pret a Manger - loved the quote from CEO who said "greet the customer when they arrive, look them in the eye when you put the change in their hand, make sure you say something when they leave, but more than anything else, be yourself". That is really the essence of the book. On the downside the airline instances were less convincing. If you are after practical examples of companies who are winning in practice also check out the book "Customers that Count"

I liked the idea that a brand is less about what is said in the ads and more about how they act with customers. The model of head, heart and hand is good - your employees must know what is expected of them (head), they must want to deliver the experience (heart) and they must have the skills, tools and empowerment to deliver (hands). The checklist on page 161 on creating a product experience is useful as is the customer touchline model on page 233.

Actually, the title of this book is somewhat misleading because Smith and Wheeler have as much of value to say about how to create an appropriate customer experience as they do about how to manage it effectively. In fact, the two are not only connected, they are interdependent. The ultimate objective is to establish an ever-increassing critical mass of customers who are "advocates" or as Ben McConnell and Jackie Huba would characterize them, "evangelists."

Obviously, customer relationship management (CRM) is a multi-stage process which begins with obtaining sufficient and relevant information about the target customer (or customer segments), proceeds through the design and implementation phases, continues with refinement and modification based on rigorous evaluation of CRM initiatives and measurement of their impact. Effective marketing creates or increases demand for whatever is offered whereas effective CRM ensures that "customer satisfaction" becomes "customer loyalty" which, eventually, becomes and remains "customer advocacy."

At this point, it is worth noting that, in several dozen research studies on what customers consider to be most important, three attributes were almost always ranked among the top five: feeling appreciated, convenience (i.e. easy-to-do-business-with or ETDBW), and perceived value. Cost? Depending upon which research study is consulted, it was ranked 9-14 in importance. By the way, Warren Buffett once observed something to the effect, "Cost is what you charge but value is what they think it's worth." Marketers and service providers would be well-advised to keep that in mind.

Credit Smith and Wheeler with providing a remarkably thorough analysis of how to manage the development of relationships with customers which evolve from their satisfaction to loyalty to advocacy. As Bernd Schmitt correctly notes in the foreword, "Towards the beginning of this book, the authors distinguish two key routes toward a Branded Customer Exerience: `experiencing the brand' and `branding the experience.' Experiencing the brand...begins with the brand, turns it into a promise, and delivers on it. Branding the experience is about creating an innovative experience for customers and then branding it.."

Starbucks offers an excellent example. Under Howard Schultz's leadership , the international chain of gourmet coffee shops demonstrates how to combine "excperiencing the brand" and "branding the experience." The result is that Starbucks has become, as Schultz proudly notes, not a "trend" but a "lifestyle." Perhaps no other organization treats its part-time employees treats better (both compensation and benefits) and they reciprocate with a consistency high level of service (both competence and cordiality) and thus function as - yes - advocates. According to Schultz, "What we've done is said the most important component in our brand is the emplopyee. The people have created ther magic. The people have created the experience." Appropriately, Schultz entitled his autobiography Pour Your Heart Into It.

One final point. Most organizations which have problems retaining valued customers probably also have problems retaining valuable employees. Hence the even greater relevance and value of what Shaun Smith and Joe Wheeler share in this book. Peter Drucker once observed, "If you don't have a customer, you don't have a business." There corollary to that insight: "If you don't employees who are competent and cordial as well as committed to the enterprise, you won't have any cuistomers."

Managing the Customer Experience is full of great practical examples and advice with a good mix of US and UK companies featured. I really saw the potential of Triad Power and now view the concept of customer experience as a whole company initiative as opposed to just led by Marketing or Customer Service. The appendix of tools at the back is invaluable.

I definately recommend reading this in conjunction with Shaun's first book, Uncommon Practice as you can see how everyday simple practices can reinforce the experiences you provide customers.