Lou Carbone - Customer Experience (70 min)

http://itc.conversationsnetwork.org/shows/detail1749.html

In this entertaining talk at Adaptive Path, Lou Carbone, author of 'Clued-in', shows us:

How companies make the customer/you feel
vs
How people feel about companies & products

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Clue-out vs clued-in of customer experience
Howard Johnson's: Cutting cost for efficiency at the expense of the customer

vs

Disney: Being in the customer's head by making an emotional connection

Relationship drive by Data vs customer experience (Northwest)
Having customer relationship management system/data doesn’t mean you have a relationship with the customers. Why would it?
Northwest think Lou is a very loyal customer with a gold membership, but he would leave in a heartbeat. ‘They do not understand how they make me fell, which is in turn how I feel about them…In one moment I went from hero to zero’

Satisfied customers NOT= Loyal customer
Satisfied customer does not mean loyal customer; In the car rental industry, 60-80% Customers that leave was satisfied customers.
Key question: Would you recommend this experience to a friend?

Clued in
Hair cut experience: Lou became a loyal customer with an incredible experience though a series of small clues; even though he had a horrible haircut.

We have experiences that we:

Reject, Accept or Preferred -> then we create the reason afterward

Remember: Decisions people make are rational & emotional

Going from the world of product to experience
The worst thing happened to Banking industry was product, they used to be in the service business. By thinking they have product, they lost sight of the relationship.

It's not just about quality, but the impact customer experiences as well.
Designing business experiences, such as Starbucks & iPod by increasing value, then profitable also got increased.
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Key Message:
All the numbers in business are made up of people & what people do & feel. The brand value & customer value fuel each other

-> it’s about how customers associate with product.

Peter Drucker said:

‘The reason for a business’ existence is
to create value for the customer
& profit is the reward.’

Malcolm Gladwell: Human Nature (30 Min)

http://itc.conversationsnetwork.org/shows/detail230.html

From IT Conversations, this talk is from Malcolm Gladwell describing how we don't mean what we say & how it affects product we get. (The first story is a bit long, so if you want then skip to the 10 min mark)

It begins with the Story of Aeron Chair (8 Min long), we see people preference change from calling the chair ugly to become the best selling chair of all time. In business & life, we try to come up with things that people would like by asking them; From this case it failed, because in-between feeling -> expressing preference, something was lost.

The 4 lessons from this talk:
Lesson 1: Preferences are unstable
Preferences are not stable/constant -> it can change in different conditions
Example: Pepsi Challenge & new Coke, how New Coke launch failed after 100000 taste test. Then are focus group & objective measure reliable?

Lesson 2: Story Telling Problem
People make up stories when ask to explain what they do, feel or want
Example: When Tennis pro explains how to they hit a top-spin forehand

Lesson 3: Preference changes when asked why
Asking people to explain their choice changes their preference in a negative way; They gravitates the more conservative & less complex choice.
Example: Hang in there vs impressionist art poster

Lesson 4: Cannot explain new concept & uncertainty
There is language problem of describing radical ideas & products, we just class it ugly or un-preferable:

We don't have away to describe between ideas or product that are :
Ugly (un-preferable) vs Radical (challenges us)

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Key Statement:
People/We are really bad at interpreting the contents our own hearts;
So be mindful of when people say no to an idea, is it un-preferable or is it just complex/radical?

Useful Commute:Negotiation Genius (11 Min)

This talk give insight to how have success in negotiations from the author of Negotiation Genius. A lot of tips are given within the 11 minutes, below are the usual notes
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The key to negotiation success
1st key to success: Preparation
Three point to prepare before negotiation:
1. Identify all the stakeholder (in meeting or not)
2. All of the alternative of each side
3. Looking at all the interest of all parties

You need to put yourself into the other’s shoe
- Their Needs & case
- Their Priorities
- Their interest & get them going
- What are the constraints?
- What are their perspectives?
Think of all parties & figure out solutions & Alternative

2nd key to success: Listening
People talk too much & Listen too little: Since we go in with a prepared set of arguments to convince the other side ‘How it should be’
-> Instead listen to the other side’s perspective.

You might be arguing a case over & over again, while the other party is constrained on an item.
If you don’t consider this, you would be stuck arguing instead of creating a solution or alternative.

Once you understand what they are up against, then you are in a better position to get solutions that they can offer.
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Day to Day/Salary Negotiations
Think systematically during such negotiations, the sit down with your manager & make your case clear:
- Think about what you want get & state it upfront
- Everyone's value proposition are different
- What are the Barriers?
- What are the statistics to prove my case?

People might not even take consideration of what you value
-> Frame your case early on.
(Example: Customer satisfaction v.s. Sales #)

Take control of the situation & justify your demand/case
(Example: 'Here is what I think is fair & here is the info why…' using statistics)
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Catch Lies in Negotiations

People don't like lying, but they have no problem giving the wrong idea
Example:
Q: Is this the lowest price you can give?
A: I had never ever given a lower price! (This is a misleading & it didn’t answer the question)

Listen carefully to the answer they are giving & not giving
- Are they avoiding telling you the truth?
- Is you question clear or focus?
- Do I need to ask deeper question?
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When Not to Negotiate
There are situation when negotiation is a bad idea:
1. The negotiations would ruin the relationship
2. If everyone knows you have a best alternative is horrible
3. Not the right time, when negotiations losses your position or offer
(Example: A great work/job opportunity of with low salary
… It might be a good idea to negotiate a future time to do a negotiate to re-evaluate)
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Key Summary:
Most cases, how valuable THEY think we are much less than how value WE think we are, since:
- We overvalue our contribution
- They have other priorities instead of only thinking about youSo state clearly & justify your demand with statistics.