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Customer Experience

Customer Experience, Customer Success, Emotion, Products, SaaS, Startups

A Completely Different way to Look at Customer Fit for SaaS Startups ft. @LincolnMurphy

There are so many ways businesses segment customers, and many of them are useless: demographics, location, purchasing histories, size of company, how much the customer pays, and so many more.

But there’s one method of segmentation that tends to be overlooked. And overlooking it will lead, invariably, to churn.

It’s called Appropriate Experience (AX). And I guarantee it’s not what you think.

What is Appropriate Experience?

Appropriate Experience is an extremely customer-centric idea, because it’s all about them. The customers. Their experience. But this isn’t “customer experience.” Forget CX and customer satisfaction. No, no. This is completely different.

Appropriate Experience is about how the customer needs to be treated and supported by you so they can reach their desired outcome.

But what is it really – in practice?

For SaaS, a good example of Appropriate Experience might be customers who need high-touch customer support vs. low-touch. Maybe the customer’s Appropriate Experience is self-service, because they have the expertise and technical abilities to figure out most things for themselves. Or maybe the customer’s Appropriate Experience requires some hand-holding, a designated customer-success manager and 24-7 help desk.

Lincoln Murphy, who championed AX, explains it this way:

You see, a customer has a required outcome. A thing that they need to achieve… And they have a way that they need to achieve that Appropriate Experience. That Appropriate Experience – AX as I call it – goes across the entire customer lifecycle.

He mentions Appropriate Experience within the context of the checklist he recommends using to see whether a customer has “success potential.”

Here’s that checklist (view full descriptions on his article about success potential.)

  • Technical fit
  • Functional fit
  • Cultural fit
  • Competence fit
  • Experience fit
  • Resource fit

In many ways, Appropriate Experience (aka. Experience fit) is the flip-side of Resource fit. Resource fit asks the customer if they can spare the resources to put in the time/money/manpower to succeed with the product. Experience fit asks you – the SaaS company – the same question.

The question you need to ask yourself is…

Do you have the resources to ensure that this customer has the experience they need to reach their ideal outcome?

What experience are you able and willing to provide?

You may not have the resources to serve customers who need the high-touch approach.

And that means that you can’t give that particular customer segment their Appropriate Experience, and they won’t be successful with you.

You can’t afford not to identify your customer segments by the experience they require.

Yes, that also means you can’t afford to keep customer segments to whom you can’t deliver an Appropriate Experience. Even if they’re paying you.

It sounds crazy to turn away good money, I know.

But these are people who will never be satisfied with what you offer. They won’t refer you business. They’re highly likely to leave lackluster reviews. And they will churn – after wasting a tremendous amount of your time and resources trying to make them happy when that was never gonna happen.

What happens when you segment your customers and find that a lot of them could use a different experience? Well, then it’s…

Problem-solving time

When you use Appropriate Experience as a factor in customer segmentation, you may find that a large part of your customers demand a type of experience you’re not currently providing.

Uh oh.

You have a few options.

You might consider expanding your services and scaling to meet that need.

If this is a possibility, you’ll want to first survey that segment and ask them what experience would most help them achieve their desired outcomes. But when you do, keep Lincoln Murphy’s checklist in mind. Are these customers who have success potential, if only they had a slightly different experience?

Also keep in mind that Appropriate Experience isn’t limited to how much help a customer gets. It’s not just a high-touch/low-touch issue. If my desired outcome is to go out to dinner with my significant other for a romantic evening, there is a very specific experience I need to achieve that, and Burger King isn’t going to do the job. Think holistically.

Another option, of course, is to not scale or change the experience you provide. You could decide to focus on the customer segment whose Appropriate Experience matches what you’re prepared to offer.

Both are actually good options.

The only bad option is accepting the business of someone you can’t really serve.


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Content Marketing, Conversion Rate Optimization, Customer Experience

The Customer Journey Mapping Guide to Getting Started ft. @Wootric

A customer journey map is a diagram of all the places customers come into contact with your brand, online or off. Each of these touchpoints influences the customer, and by analyzing customer behavior, feelings and motivations around each touchpoint, you can begin to identify opportunities to establish more positive relationships by giving customers what they need at any given stage of their journey.

The goal of journey mapping is to gain a deeper understanding of your customer, how they interact with your brand, and how each interaction affects your relationship. It’s also a way to ensure that the brand experience remains consistent for each customer across touchpoints.

“With the number of touchpoints a customer has with a brand increasing with the proliferation of technologies and channels, the need to create a consistent experience is critically important.” – McKinsey & Company

But the big picture goal is why there is so much buzz around customer journey maps now:

Customer journey maps can move you towards more conversions, greater customer loyalty, and improved customer experience from end to end (or from end to forever, if your subscription-based and there’s no bottom to your sales funnel).

But customer journey maps can be complicated to create, and their results can be difficult to track and interpret from end to end. Many businesses are tempted to ignore it altogether in favor of lower-hanging fruit to increase conversions.

However, that hesitancy to use journey maps is quickly disappearing as more companies are seeing the results from properly mapping their customer journeys.

And, if your company is struggling with the question: “Why aren’t customers completing (or repeating) purchases?” – there is no better time to create the map that will lead you to that answer.

Read More on Wootric


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Customer Experience

Customer Experience Quotes from Experts on the Cutting Edge ft. @Wootric

“Customer experience” is a phrase that is generating increasing amounts of buzz. It’s grown from a philosophical understanding of the effect of customer/brand interactions into a metric to track, a goal to obtain.

We’ve collected customer experience quotes, definitions and statistics from industry sources to help you understand the power of improving CX.

What is Customer Experience?

“Customer Experience is the sum-totality of how customers engage with your company and brand, not just in a snapshot in time, but throughout the entire arc of being a customer.” – Harvard Business Review’s Adam Richardson in Understanding Customer Experience.

Forrester puts it in even more amorphous terms: “Customer Experience is how customers perceive their interaction with your company.”

The first definition gives companies the illusion of control over CX – after all, you can manipulate engagement metrics, study touchpoints. But Forrester throws a monkey wrench into the works. Because CX isn’t about you. It’s about the customers – and their perceptions of you.

The expert CX quotes we’ve gathered explore Customer Experience from all of these angles and show just how much impact results when brands and customers align.

The CX Status Quo(te) Roundup

Sections:

Read More on Wootric


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Customer Experience, Customer Success, Customer Support, SaaS

The Loyalty Metric: A Brief History of Net Promoter Score and How to Use it in Practice Today ft. @Wootric

More than two-thirds of the Fortune 1000 list currently use Net Promoter Score, a customer loyalty metric introduced by Fred Reichheld in a 2003 Harvard Business Review article, “The One Number You Need to Grow.”

One number. And to get to that one number, you only have to ask one question: “On a scale of 0 to 10, how likely are you to recommend this [product/brand/company/service]?”

Anyone who scores 0-6 is considered a Detractor. Passives rate 7 and 8. Promoters are those who score 9s and 10s – extremely likely to recommend.

The Net Promoter Score is calculated by subtracting Detractors from Promoters. Scores can range anywhere from -100 to 100. It couldn’t be simpler, or more powerful.

Since 2003, the popularity of that one number has grown exponentially, spawning specialty apps to track it and spurring researchers to study it. The most recent study by Temkin Group of 10,000 U.S. consumers showed a direct connection between NPS and customer loyalty across 20 industries. In 291 companies, NPS was highly correlated to the likelihood of repeat purchases from existing customers. In fact, promoters across those 20 industries were 92% more likely to make more purchases than detractors (not surprising), were 9 times more likely to try new offerings, and 5 times more likely to repurchase. Promoters were also 7 times more likely than Detractors to forgive companies if they made a mistake.

Loyalty is lucrative.

The ability to measure and improve it is imperative. And that’s where NPS comes into play.

Read More on Wootric


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Customer Experience, Customer Success, Customer Support, UX

8 Innovative Ways to Use CX Metrics to Create Unbeatable Customer Experience ft. @Wootric

Image created by Yasmine Sedky (@yazsedky).

What we call Customer Experience (CX) is the total effect of each interaction between brand and customer over the course of the entire relationship (and it’s really all about how they feel). Positive feelings = effective CX, whether the interaction happens in a SaaS product, on a social media page, a website, over the phone, in person, or driving on the freeway.

This isn’t the same as User Experience – not at all.

Whereas UX is commonly concerned with evaluation of your product or website – a very limited scope – CX encompasses the entire experience of each customer from end-to-end, including touch points on your website, off your website, offline, on mobile, and person-to-person contact. You need both.

Fortunately, UX can be relatively easy to optimize.

Optimizing CX, on the other hand, can seem like an impossibly large task.

But keep in mind: CX is the sum total of specific, concrete, controllable occurrences. You know exactly when and how your customers interact with your brand, right? (No? You should – if it happens online, it’s all trackable). Your task then becomes understanding which CX metrics to track and how to use those metrics to create unbeatable – unforgettable – customer experiences for all.

Read More on Wootric


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Artificial Intelligence, Customer Experience, Customer Success, Customer Support, Emotion

Use Real Emotion with Artificial Intelligence for Positive Customer Experiences by @NikkiElizDemere

Image created by Yasmine Sedky (@yazsedky).

Just yesterday my partner and I hit a snafu: Our bank had not paid our homeowners insurance, resulting in a panic-inducing email titled “your policy has expired.” Adulting in overdrive ensued.

The bank’s call center was a byzantine maze of pre-recorded messages, and it took three calls just to navigate it to the point of talking to a human being. Just when I was contemplating slamming my phone onto the pavement, I finally reached a person. A person who was clearly chagrined that I’d made it through the labyrinth undeterred. What a grump.

Not finding any help there, I then called my insurance company, which connected me directly to a person — a real, live person! — who cheerfully told me she’d contact my bank, sort out the mess, and call me back. And she did.

It was glorious.

This, friends, is why customer service, and in particular automation, has earned such a loathsome reputation.

Customers don’t want to be pitched from bot to bot, like projectiles in a pinball machine.

That doesn’t make us feel like valued customers. That doesn’t make us want to work with the company again, if we have any other choice. And forget about recommending the company to anyone else (at least, anyone we like).

But what if we could change that paradigm? What if we could create automation that was intelligent enough to give us the answers we need, and send us, quickly and efficiently, to the very best human agent capable of solving our problems?

This is the future I see as imminently possible, at least if we use automation intelligently to create more positive, relevant, and enjoyable user experiences.

Forget bots for a moment — let’s talk about people

For automation to be an integral, genuinely helpful, part of customer support (and customer success — we’ll get there), the customer support process needs to be grounded in a basic understanding of what humans need to be happy — and what customers need to be successful.

The first thing to know is: Every problem is emotional.

We tend to take people at their word. They tell us the problem; we logically try to fix it. But, whatever they say the problem is, and however logical the solution, there is always an emotional component. We’re human; emotions are part of everything we do.

When neuroscientist Antonio Damasio studied people who had sustained brain damage to areas of the brain that generate emotions, he found that the subjects were unable to make even the smallest of decisions. Their logic and reasoning abilities were fully functional, but if they were asked to choose between pasta and risotto for dinner, they couldn’t do it. They couldn’t feel one way or another.

The conclusion: Almost every decision is an emotional one.

What this means for customer service is huge:

If your customer service interaction produces positive emotions, you have the power to generate positive decisions.

Think: making sales, upsells, generating referral traffic — you basically turn customer service into a marketing, sales and retention engine.

All of that potential income is what’s at stake in every customer interaction.

Not sure emotion holds that much purchase power?

A study out of Missouri University of Science and Technology reported that “consumers’ emotional responses” while on e-commerce websites were predictive of purchases. It might seem obvious, but they essentially proved that we buy from stores we enjoy. And there’s no better place to create a joyful experience than customer service.

Positive experience is the start of a positive association, which builds upon itself over time. One transaction or interchange turns into a relationship. Zappos, Wistia, and MailChimp are three companies that have a business approach which accentuates the positive, and, as a result, their customers are both passionate and loyal.” — Walter Chen, co-founder of iDoneThis, for Kissmetrics

Eliminate Pain Points

So how do you create positive emotional experiences? First of all, don’t add to the customer’s pain by forcing them to run the gauntlet of automated options they neither need nor want.

Pain is emotional, and reducing the pain your customers feel will go a long way towards creating a positive experience. Just think how happy I was to find a HUMAN BEING on my first try with my insurance company!

The worst pain is caused by a-thousand-cuts annoyances, and when you can relieve those small irritations, the customer’s experience will be more positive — and studies show those positive experiences are directly linked to customer loyalty and repeat purchases.

Read more on Medium


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Customer Experience

There is a Correlation between CX and Revenue Growth – and Here’s the Data to Back It Up ft. @Wootric

The-Correlation-between-3

Image created by Yasmine Sedky (@yazsedky).

“Our conclusion: superior CX drives superior revenue growth.”
Harley Manning, Forrester

“Customers who had the best past experiences spend 140% more compared to those who had the poorest past experiences”
Peter Kriss, Harvard Business Review

There is a lot of chatter happening in business circles about customer experience (CX) as a growth engine. It’s almost intuitive – you and I both understand how having a great experience affects us as customers. We all have businesses we love, products we’ll follow to the ends of the earth (in hopes they’ll finally go on sale), and websites we follow with almost religious fervor.

As CMO, VP of Success, or Head of Customer Support, you are constantly advocating for customer experience within your company. After all, from the very first moment the second blacksmith’s shop appeared in the village, creating competition for the first blacksmith’s shop, customer experience has been a deciding vote for who gets the business – just as much as price and quality. But as a business owner, or a professional marketer, you can’t afford to go with your gut. To win resources you need data to back up your argument that CX is the future (you know it is).

There is a correlation between CX and revenue growth, and we’ve compiled the research to back it up.

Read More on Wootric


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Customer Experience

2017 Trends in CX: Expert Advice for Marketing, Customer Success and Customer Support ft. @Wootric

2017-trends-in-cx

Image created by Yasmine Sedky (@yazsedky).

As we enter 2017, what trends are shaping how companies are treating Customer Experience (CX)? What obstacles, challenges or blind spots will Marketing, Customer Success and Customer Support leaders likely run into when trying to improve CX? And, how can they do CX better?

These are the questions we asked people who live, breath and develop CX for companies around the world. We also sourced trends from places like UserIQ and Forrester, for a more holistic view of what 2017 has in store for us.

How will Customer Experience develop over the next year? Here are their answers, predictions, and suggestions.

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Customer Experience, Customer Success, Emotion

Don’t Underestimate the Power of Emotion to Drive Customer Loyalty ft. @Wootric

dont-underestimate-the-power

Image created by Yasmine Sedky (@yazsedky).

Emotion is coming to the forefront of Customer Experience (CX) management, not because it’s warm and fuzzy, and not because leveraging feelings is devilishly manipulative, but because when you use emotion to drive your CX efforts, it becomes a powerful differentiator.

More companies are getting better at the functional basics of customer experience, like responding in a timely manner to questions, streamlining the purchase process, and smoothing out onboarding (not to mention creating a decent product) – which means they need something unique to offer that separates them from their competition.

What is the most unique, even unforgettable thing you can offer? The way you make your customers feel. It’s for this reason the bar for CX is inching up.

The fact that understanding and influencing emotion is a vital ingredient for business success is not surprising — it has been the heart and soul of brand efforts. It is also the foundation of the emotion-recognition techniques (measuring physiological responses) currently in pilot for some retailers and old-school ethnographic research. Forrester 2017 Predictions: Dynamics That Will Shape The Future In The Age Of The Customer

 
Emotion not only carries the ability to define your company in a sea of competitors, it can also inspire viral word of mouth marketing from people who love you and want to express that to a large audience, whether because they’re influencers with their own followers, or reviewers.

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Customer Experience

The Real Pros & Cons of Net Promoter Score (#NPS) ft. @Wootric

the-real-list-of-pros-and-cons

Image created by Yasmine Sedky (@yazsedky).

I’m biased – I like the Net Promoter Score system, and I’m going to tell you why (in a minute). But, I also think we need an unbiased perspective on NPS, one that airs the dirty laundry, so to speak. Net Promoter Score is both a customer loyalty metric and a system for improving loyalty over time. NPS isn’t a perfect metric. It’s also not a complete system. But, most of the people talking about NPS are the ones touting it, which means you’ll rarely find a genuine report of its pros and cons.

Well, that’s exactly what I’m doing here.

In the interests of transparency, I have to say that Wootric, an NPS SaaS platform, suggested I write this piece and requested that I don’t pull any punches. No punches have been pulled.  This is my take.

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