Several years ago, a Canadian musician’s $3500 Taylor guitar was severely damaged by baggage handlers from United Airlines. When Dave Carroll couldn’t get the airline to take responsibility for what they had broken, he made a music video that was viewed by millions on YouTube, creating a public relations nightmare for United.
Wikipedia reports, “It was widely reported that within four weeks of the video being posted online, United Airlines’ stock price fell 10%, costing stockholders about $180 million in value.” (That would’ve bought over 51,000 replacement guitars!)
I bring this up because a couple that lives near us in Las Vegas had a terrifying incident at a local Starbucks. Lauren Weyand writes on Nextdoor:
“5 or 6 teenage kids came in shirtless, shoeless, and screaming profanities at each other…using incredibly vulgar language and pulling all of the food products out of the fridge section with no intention to buy anything. They asked the cashier for large water, one for each of them. Each of them was given water. They were heading out of the store.
My husband saw them line up — waters in hand — and said, ‘Ready, go!’ Before I knew it, I was hit in the head with a water cup. Two large cups of water doused our computers and us. We were startled and overwhelmed by what had happened. The whole store acknowledged the incident and asked us if we were okay. The Starbucks staff said nothing and started mopping up the mess. Nobody contacted the police or managers to ask for help with the situation that had just occurred.”
Weyand continues that she and her husband later returned to Starbucks to speak to the manager about what had happened. They were told they could not have video of the incident, and no police report had been filed because an employee got tired of waiting for the police to answer the phone, so they hung up and didn’t try again. The manager then led them to the door and told them more information would be forthcoming.
Look, we could turn this issue into a political or generational topic and press hot buttons all day long. Let’s not – that isn’t what this commentary is about.
At the current point, the Weyands must buy two new laptop computers, as neither of the ones they were using at Starbucks is now working because of the water damage. The Starbucks helpline – using the term “help” a bit loosely here – told them the case was closed and had been resolved, even though nothing was truly handled. From Weyand’s perspective, Starbucks has chosen the profane, shirtless troublemakers who threw water in their store over two loyal customers.
When I contacted Lauren Weyand, she confirmed that Starbucks remains silent – which she understandably perceives as a lack of concern and commitment for their customers.
In the frequently negative world of social media, some are questioning if Starbucks has any liability in this matter. I’m not a lawyer, so I don’t know the correct answer – but the important issue is that we should care less about liability and be more concerned about the customer experience.
What did United do in the wake of the PR disaster over the music video, “United Breaks Guitars”? As I relate in my new book, “The Ultimate Customer Experience,®” they licensed the video from Carroll to use in their training curriculum. They’ve hired him to speak at meetings for them to emphasize the importance of the customer experience.
And United’s share price has gone from $3.25 when Carroll’s video was the hottest thing on YouTube to closing today at $53.34! That’s what happens when you listen to your customers, learn from your mistakes, set things straight with those you have wronged, and focus on the Ultimate Customer Experience!
Starbucks may save a couple of grand by staying silent and not offering the Weyands replacement laptops, hoping they’ll just give in and give up. But just like United discovered how they could be “penny wise and pound foolish,” we’ve seen from experience that ANY business, no matter their size, can get on the wrong side of the public and lose millions when basic empathy and concern for the customer is ignored.
Every customer has a right to presume they aren’t going to have water thrown at them and have their computers ruined because they chose to do business with you.
So, what should Starbucks do? I’d suggest the minimum is that they apologize, replace the laptops, and provide the Weyands with a couple of gift cards with handsome amounts attached.
(They might also increase security so that shirtless, shoeless individuals can’t enter their stores in violation of health ordinances…and provide the store’s video to the police so they can press charges.)
Starbucks should learn from its mistake. Because they didn’t get it right, they should take advantage of the opportunity to make it right. If they fail, they may discover more people than a nice couple here in Vegas who are beginning to question if it’s worth a trip to get coffee from them, as opposed to their competition, if the experience is going to be so inferior – even problematic.
(Full disclosure: I’ve had the privilege of working with United and consider their Chief Customer Officer, Linda Jojo, a friend.)
The Ultimate Customer Experience® book is now available – get yours today!
Look, I realize that I’m prejudiced. However, I genuinely believe that in today’s world, the customer experience is everything.
Customers, whether B2B or B2C, expect to be treated with respect, courtesy, and efficiency when interacting with your organization. Unfortunately, this is not always the case.
Many companies fail to deliver the Ultimate Customer Experience®, leaving customers frustrated and unsatisfied. Let’s examine three reasons why the consumer experience in so many enterprises is so terrible.
Lack of Training
Lack of training is one of the primary reasons why the consumer experience of so many enterprises is terrible. The majority of companies do not devote enough time or money in educating their employees to provide the type of customer service that generates repeat and referral business. Training is necessary for employees to learn how to effectively manage difficult consumers and resolve issues. Failure to do so results in lengthy wait times, incorrect orders, and an overall negative consumer experience. When employees lack the skills and knowledge necessary to provide a positive customer experience, the company suffers.
Training should be continuous and consistent, as well as tailored to the specific requirements of the organization and its customers. It is not nearly enough to conduct a single training session and then forget about it. Regular updates and feedback should be provided to employees to develop their skills and ensure customer satisfaction.
“No organization would invest in an activity—or ask their employees to invest in an activity—in which they had little interest! Just as you wouldn’t buy season tickets to the games of a sports team you didn’t care about, or you wouldn’t watch every episode of a television show you didn’t enjoy, your company would not have given you this book if they weren’t interested in this content and focused on your important role in enhancing customer experience.”
Unfortunately, it is often the case that companies who claim to be “all in” on the customer experience are not. If they were, they would properly invest in the training and education that ensures their frontline teams can deliver what their marketing promises.
Inadequate Communication
Inadequate communication is another reason why the consumer experience of so many businesses is so poor. When customers have questions or concerns, they want to be able to communicate with the business easily and quickly. However, many businesses do not provide adequate communication channels for their customers. This can result in frustration and discontent as customers can feel ignored and insignificant.
Effective communication is crucial for a positive customer experience. Businesses should provide multiple channels for customers to communicate, such as email, phone, and chat. Customers should be able to reach the business easily and receive a prompt response. Additionally, part of the previously mentioned training should include effective communication skills, such as active listening and clarity in communication. This will improve customer satisfaction and loyalty.
Lack of Empathy
A lack of empathy is the third reason the customer experience is so awful from so many businesses. It’s one of the five steps to an Ultimate Customer Experience from my forthcoming book.
Employees who lack empathy may not be able to relate to their customers’ concerns or emotions. This can lead to a lack of understanding and a failure to provide the level of service that customers expect. Customers want to feel heard and understood, and when businesses fail to provide this, they are likely to lose customers.
Empathy is the ability to understand and share the feelings of others. It is essential for employees to have empathy when interacting with customers. This means actively listening to their concerns, showing understanding and compassion, and taking action to resolve issues. Businesses should foster a culture of empathy and understanding, starting with hiring employees who possess these qualities. Additionally, businesses should provide ongoing training to reinforce empathy and customer service skills.
The Ultimate Customer Experience® is essential to the success of any business. Unfortunately, many businesses fail to provide it, leaving their customers feeling frustrated and dissatisfied. When businesses prioritize the customer experience, they will see increased customer engagement, loyalty, and, ultimately, success.
In today’s competitive business landscape, you must constantly innovate and adapt to stay ahead of the curve. One of the most critical aspects of this is providing an Ultimate Customer Experience® (UCX). A UCX can be the difference between a thriving business and a struggling one. Let’s explore the importance of customer experience, how to transform your business by implementing the Ultimate CX, and the benefits that come with this transformation.
The Importance of Customer Experience
As you know, customer experience is the sum of all interactions a customer has with a company, from their first encounter with you to their most recent interaction. It is a crucial factor that determines whether a customer will become a loyal advocate or a dissatisfied critic. Research has shown that companies that prioritize customer experience are more likely to experience higher revenue growth, increased customer retention, and improved customer satisfaction.
In fact, a study by Forrester Research found that companies that excel at customer experience grow revenues 5.1% faster than those that do not. Furthermore, a Temkin Group report discovered that companies earning $1 billion annually can expect to earn an additional $700 million within three years of investing in customer experience.
Transforming Your Business with the Ultimate Customer Experience
You must focus on creating the Ultimate Customer Experience to unlock explosive growth for your business. Here are five key tactics to help you achieve this transformation:
Know your customers: Understand your target audience’s needs, preferences, and pain points. Conduct surveys, interviews, and focus groups to gather valuable insights that will help you tailor your products, services, and communications to meet their needs better.
Create a customer-centric culture: Encourage every member of your team to prioritize customer satisfaction. Provide training and resources to help employees understand the importance of customer experience and how they can contribute to its improvement.
Map the customer journey: Identify all touchpoints where customers interact with your business, from initial awareness to post-purchase support. Analyze each touchpoint to identify areas for improvement and create a seamless, consistent experience across all channels. Then the critical factor is training and engaging every team member to deliver the desired experience at each step of your customer’s journey.
Leverage technology: Utilize tools and technologies that can enhance the customer experience, such as chatbots, CRM systems, and analytics platforms. These tools can help you personalize interactions, streamline processes, and continuously gather valuable data to improve your UCX strategy.
Measure and optimize: Regularly evaluate your customer experience efforts by tracking key performance indicators (KPIs) such as net promoter scores and customer retention rates. Use this data to identify areas for improvement and make data-driven decisions to optimize your CX strategy.
The Benefits of the Ultimate Customer Experience
By implementing the ultimate customer experience, your business can unlock numerous benefits, including:
Increased customer loyalty: A positive customer experience fosters trust and loyalty, leading to repeat business and long-term customer relationships.
Positive word-of-mouth: Satisfied customers are more likely to share their experiences with friends and family, driving new business through referrals and recommendations.
Competitive advantage: In a crowded market, providing an Ultimate Customer Experience can set your business apart from competitors and help you gain market share.
Reduced customer churn: By addressing customer pain points and providing a seamless, enjoyable experience, you can reduce the likelihood of customers leaving for a competitor.
Higher profitability: Companies that excel at customer experience enjoy higher revenue growth and increased profitability.
A recession is a distinction test for every business.
If you stand out from your competition, you earn their continued trust and engagement. However, if you offer nothing that separates you from the pack, you will fail to inspire them to spend money with you when times are tighter than before. The Ultimate Customer Experience® is your primary tool to win when the economy slows down.
Prioritizing the customer experience is crucial for businesses looking to unlock explosive growth. By understanding your customers, creating a customer-centric culture, mapping the customer journey, leveraging technology, and measuring and optimizing your efforts, you can transform your business and enjoy the benefits that come with providing the Ultimate Customer Experience.
