Customer Loyalty is Dead

It’s a bold statement, I know, but I’ve been struggling with the idea that true loyalty can’t really exist in today’s digital world. Hang in with me for a moment.

My colleague was taking her 16-year-old son to open his first bank account (exciting!). Naturally, she chose to go where she and her husband have banked for over 19 years and enjoyed exceptional service. So what happened? When they arrived, the teller said the bank’s systems were down and suggested they come back the following day. So what did they do? They went to the bank across town whose systems were working and allowed the account to be opened that same day. That instant gratification that’s so expected and needed today trumped the more than 19 years of positive experiences and service she had enjoyed with her bank. So much for loyalty!

My children aren’t any different. They’ve been huge advocates of the Uber car service. They even got me hooked on it. Every experience has been seamless for all of us. So, imagine my surprise on a recent trip when my daughter pulled up Lyft to get us a “lift.” What did Uber do wrong? Absolutely nothing. They did everything right; it’s just that Lyft is the driving service du jour and it’s apparently way cooler … for the moment.

In both examples, the brand hop wasn’t about a series of shoddy customer interactions. A few decades ago, my colleague likely wouldn’t have switched banks so easily. What’s different today? Short of actually opening an account, banking can be done in your hand. Before tech, she likely would have waited until the next day simply to avoid having to drive across town to bank at different locations (those were the days when we had to walk into a building to make withdrawals and deposits). Convenience most certainly would have come into play and kept her loyal to her bank. In my daughter’s example, it was about easy access to another well-known choice. Technology, which is accelerating at rapid speed every day, has changed the game and has leveled the playing field for new companies to emerge and easily compete with well-established companies.

It’s About Customer Experiences

If we acknowledge that customer loyalty is a thing of the past, then what are we left with? Providing exciting, sought after and irresistible experiences—plural, not singular—to our customers. The types of experiences that make us salivate for more.

Let’s look at recent headlines. I think we all heard a collective groan during Apple’s latest launch event when the “wow” factor we wanted just wasn’t there. There isn’t any doubt that Apple has revolutionized technology in nearly every way; but it’s not enough. We expect Apple to continue to innovate and blow us away, especially given the hype attached to their launch events.

Last year when Apple introduced the first Apple Watch, the world took notice. It was new, sexy, innovative and a wearable that people actually wanted to wear (I’m looking at you, Google Glass). But just because Apple has the world’s best brand recognition and loyal user base doesn’t mean that the Watch wasn’t introduced with mixed reception. It’s a very polarizing product that’s still in its infancy. After all, breaking into a new product segment and expecting overnight success is something that every company dreams of, but very rarely ever achieves.

I recently viewed Samsung’s launch event where the company previewed the soon-to-be released Samsung S3. It’s a smartwatch and let me tell you, it’s beautiful. It looks like a watch, and its capabilities blow Apple out of the water. And get this … most any watch band will fit on the Samsung S3. That’s right. Samsung is catering to customers. The company knows that customers may want to personalize their watches so they give them that feature.

Conversely, Apple recently announced that we need wireless headphones or headphones with a lightning cable for the iPhone 7. How many companies can you name that make audio devices with a lightning connector? That’s a very niche market. Apple used to be about simplicity. The company’s motto was “it just works.” What’s simple about having to carry two sets of headphones or adapters? How will my new lightning headphones “just work” on my MacBook? Apple has begun to fail their customers and create negative experiences.

Admittedly, I don’t think Samsung will outperform Apple in sales of their watch or phones, but I do think they’re making a dent in Apple’s customer base. Little by little, other companies are taking away market share from Apple. This will continue until Apple steps up its innovation game and starts redelivering on customer experiences.

Creating Limitless Customer Experiences

What can we learn from Apple? We need to keep “experience” top of mind. Consider these stats:

  • The most important driver of brand loyalty for millennials is a great product at 77%, followed closely by brand recognition and trust at 69% (NewsCred). What I glean from this is that great products can be replaced by other great products pretty easily (case in point: Uber versus Lyft and Apple versus Samsung). Surprising to me is how important strong name recognition matters to millennials (cool rules!). So what’s hot today definitely drives purchasing decisions.

  • 46% of customers are more likely to switch service providers (across industries) than they were 10 years ago (Accenture).

  • 78% of consumers are not loyal to any one particular brand (Nielson).

My advice? Constantly innovate. Take chances. Don’t be afraid to fail. You don’t have to be first to market, but you must steadily outpace your competitors once you get there. Perhaps most importantly, take a good look at your own customer experiences in your daily life. What makes them great? Why are you likely to go back to a particular company to do business? Did they personalize your experiences? Did they consistently go above and beyond? Did they make you feel special? Was your interaction with them seamless and easy?

Sometimes small details are just as impactful when it comes to experiences. Take these golden nuggets and apply them accordingly. As we lay customer loyalty to rest, let’s bring to life experiences our customers have come to expect and so richly deserve.

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A Prison Partnership That’s Changing Lives with Intention and Compassion

As someone who passionately advocates for female empowerment and corporate social responsibility (CSR), you can imagine my excitement when I was invited to visit the Phoenix-based contact center of B2B lead generation agency Televerde. I had been familiar with Televerde as a sales and marketing solutions company, but I soon found out it’s so much more. Four of Televerde’s five contact centers in Phoenix are employed entirely by women incarcerated at Perryville-Arizona State Prison Complex. Here’s what I experienced during my recent visit.

Stepping Inside a Prisoner-Run Contact Center

The unsettling experience of entering a prison complex was immediately brightened by the smiling faces of Televerde’s contact center employees. Behind these smiles were infectious personalities, positive outlooks and ambitious attitudes that permeated the four walls of the facility. Underneath each woman’s classic orange jumpsuit was a deep propensity for learning, the kind that many organizations now consider their “steel bridge.”

Keeping this in mind, it didn’t surprise me to learn that 25% of these women continue to work with Televerde after they’re released from prison. Even more impressive, about half of Televerde’s Phoenix corporate office employees came from Perryville. Working in departments like IT, marketing, finance and HR, these women are qualified and educated with a GED at minimum. In fact, with Televerde’s support, numerous ladies have gone on to complete their bachelor’s and master’s degrees, and one Televerde alumna received her M.B.A. at Arizona State University and now heads the customer service organization, globally.

In conjunction with the two contact center managers appointed by Televerde to supervise the facility, these women were clearly helping to successfully run the operation. As I observed the contact center in action, I could see one woman acting as head of training. Another worked as a sales primer. These women were writing scripts, handling calls and managing data just like any other organization. They engaged in friendly conversations before starting their shifts. Each employee worked fluently and expertly in what looked like any other call center in the world.

TELEVERDE

I had the privilege of sitting down and speaking with these incredible women, where I learned more about who they were and how they came into this business. Each woman met Televerde’s work eligibility requirements: a sentence of 10 years or less for a non-violent crime, a specific level of phone articulation and personality skills, and at least six weeks of training. Each woman is paid a minimum wage for eight-hour shifts. In addition to training, Televerde supports these women by offering educational opportunities, mentorship, and career building skills as they transition out of prison.

It didn’t take long for me to see that this group of women had profound ideas about business, social responsibility, and female empowerment. Each of the women I sat with had far-reaching career goals. They desired to excel by continually developing their interpersonal and technology skills. They had countless questions about how to launch a career in STEM (science, technology, engineering and math). As a female CMO working in the male-dominated tech industry, I was honored to help these women develop a foundation upon which they could continue to build.

Getting to the Heart of Operations (Literally)

My experience at the Perryville-Arizona State Prison Complex can be summed up in one question an employee asked during our group conversation: “Did your impression of us change when you came in and saw us in our jumpsuits?”

These dedicated women were noticeably concerned about what others thought of them. They wanted to be accepted and respected, despite the poor decisions they’ve made in the past. Televerde reminds these women daily that just because they’ve made poor choices doesn’t mean they are bad people. The organization’s unique rehabilitation and education model allows us to see ourselves in these women. In showing compassion, empathy and respect, Televerde pulls back the curtain to reveal who these women really are. They are indeed convicts, but they are also part of the 14 million Americans who desire a full-time job. They’re flourishing members of today’s growing labor market. They’re hard-working, forward-thinking individuals who simply arrive to work in a different uniform than you and I do.

The benefits of this movement are astronomical. Televerde is helping to actively lower the rate of jobless individuals with a prison record, which is currently as high as 60%. The organization is empowering women by helping them determine what kind of leaders they want to be as they work to complete their sentences. The brand is reversing the psychological effects of U.S. penitentiaries that drive so many back to prison. Above all, however, Televerde’s mission serves as a critical reminder of the things we all must be constantly aware and in pursuit of: compassion, intention, kindness and respect.

TELEVERDE

We hear how companies need to go above and beyond for their customers, staff and communities at large. To me, there’s no better way to do this than by showing compassion and respect as an organization. Despite today’s rapid pace of innovation, the best way to connect and drive change is to simply be human. Imagine the profound global impact of more organizations understanding and embracing this sentiment. At the end of the day, we’re all in need of some help. We’re all in this together.

When it comes to corporate social responsibility, Televerde is walking the talk. For that, I give the brand a standing ovation. Learn more about Televerde’s mission.

3 CX Stats That May Change How You Think About Digital Transformation

Technologies like Artificial Intelligence, automation, big data, and the Internet of Things have made digital transformation an absolute necessity for organizations. With people, processes, services and things more dynamically connected than ever, companies are feeling relentless pressure to digitize, simplify, and integrate their organizational structures to remain competitive.

But there’s a big hole in the fabric of most digital transformation (DX) plans: the customer experience (CX). The problem isn’t that companies fail to understand the importance of the CX in relation to digital transformation. Rather, most fail to understand their customers well enough to envision a truly customer-centric, digitally-transformed environment. Just consider that 55% of companies cite “evolving customer behaviors and preferences” as their primary driver of digital change. Yet, the number one challenge facing executives today is understanding customer behavior and impact.

A massive part of digital transformation involves building a CX strategy, and yet customer centricity remains a top challenge for most. In fact, I encourage you to be your own customer within your organization. Walk in your customers’ shoes, contact your organization as your customers would. What was your web experience? Was the expert knowledgeable during a chat conversation? How well did the mobile app work for you? Did you have a connected experience? Given your experience, how brand-loyal would you be to your organization?

Here are three statistics that will get you rethinking your CX strategy in relation to digital transformation:

  1. 52% of companies don’t share customer intelligence outside of the contact center. In other words, over half of companies are limiting the customer journey to the contact center even though it naturally takes place across multiple key areas of business (i.e., sales, marketing, HR, billing). Businesses must ensure customers are placed with the right resource at the right time, whether it’s in a contact center or non-contact center environment. The key is being able to openly share customer data across all teams, processes and customer touchpoints.
  2. 60% of digital analytics investments will be spent on customer journey analytics by 2018. Customer journey analytics—the process of measuring the end-to-end customer journey across the entire organization—is critical in today’s smart, digital world. Companies are rapidly investing in this area to identify opportunities for process improvement, digitization, automation and, ultimately, competitive differentiation.
  3. 60% of customers change their contact channel depending on where they are and what they’re doing. This means organizations must focus less on service and more on contextual and situational awareness. Businesses must work to create a seamless experience—regardless of device, channel, location or time—supported by customer, business and situational context captured across all touchpoints.

The CX should influence every company’s digital transformation story. For more tips, insights, and impactful statistics check out our eBook, Fundamentals of Digital Transformation. Let me know what you think. We look forward to hearing from you.

What It Takes to Be a Technology Leader in an Evolving Digital World

The definition of a leader varies greatly, especially in business. From my perspective a leader is defined by their ability to pivot and adapt to the evolution of a market. Like many companies today, Avaya, its customers and partners are riding the often daunting—yet consistently exciting—wave of digital transformation of the enterprise. As a technology leader, Avaya is not only pivoting and adapting to this new environment for itself, but pivoting and adapting our services and solutions to enable its customers and partners to thrive during their own transformations.

Unlike many of our competitors, digital transformation is something we saw coming years ago. We recognized right away that it wasn’t a passing fad but something that could truly transform how business gets done, with communications playing the most important role. We knew that for us to be successful, we would need to focus on transforming ourselves first so that our customers and partners could learn and benefit from our experiences, our lessons learned. During our own transformation, we gained that extra insight that we were able to leverage in the development of truly transformational solutions and services.

As we drove our own multi-year transformation, we also maintained our global market share leadership position in Contact Center. According to Canalys research, we hold more than 34% of the market, which is almost greater than the No. 2 and No. 3 competitors combined. No technology leader gets to claim this size of market share without making its customers a priority.

Last month for example, we hosted a private event in New York as part of our Future of Communication Experience series. The purpose was to update and inform specially invited customers about our portfolio roadmap and vision. We encouraged them to come with questions and to be prepared to have real, in-depth conversations about the challenges they’re facing during their own transformations. As always, it was a great experience for the customers and Avayans in attendance. Overall, customers from world-leading payment brands, to high-end retail chains, to players in the automotive industry said that they are very optimistic, confident and excited about what we have to offer today and what we have planned for the future. And next month we will be in Mexico City for our twelfth consecutive year with 3,000 Avaya customers and partners from all over the Americas. This is the largest customer and partner event we do all year.

In particular, two of the solutions our customers are most excited about are Avaya Oceana™ omnichannel contact center and Avaya Breeze™ development platform. These same solutions were recently touted as visionary by a global analyst firm as part of its latest Magic Quadrant ranking.

Avaya Oceana, which was launched last year, adds advanced multi-channel functionality to our own contact center solutions, such as Avaya Aura® Call Center Elite voice platform and Avaya Aura® Contact Center. It also integrates with third-party automatic call distribution solutions, as well as offering advanced reporting and customer journey mapping capabilities through Avaya Oceanalytics™ insights. Specifically, we have been told by analysts that Oceana’s new approach to routing—which is attribute matching so that it includes data consideration and customer journey mapping—is something our competitors simply can’t offer.

The Avaya Breeze platform, which Avaya Oceana was built upon, enables users to be flexible when responding to the ever-evolving digital marketplace. It has garnered industry recognition for its ability to enable developers to quickly create unique communications-enabled contact center applications and workflows for within and beyond the enterprise—with little or no development required and nearly instant deployment. We are seeing customers use Avaya Breeze to create unique applications tailored to their specific business and communications needs.

According to Irwin Lazar, Vice President and Service Director at Nemertes Research, “More than half of the companies are using or planning to use APIs to embed communications capabilities into their apps, while another 25% are looking at using them to build custom apps. Platforms like Avaya Breeze offer organizations the ability to deliver enhanced business value and execute on their digital strategies by integrating communications and collaboration into workflows, business processes and existing applications.”

These solutions are just the tip of the iceberg for Avaya. We are a long-standing industry standard with a significant global footprint. We are focused on continuing to expand and develop our solutions to meet the needs of our growing global customer base, with more than 5,400 patents awarded and pending, including foreign counterparts.

Our strong service provider and system integration partnerships around the world enable us to meet the needs of a wide variety of organizations, both large and midsize. We’ve received industry recognition for our strong Contact Center integration solutions.

Our continued strength in the industry is evident by our 300,000 customers worldwide. In fact, the top 10 largest banks worldwide are running Avaya solutions and 90% of Fortune 100 companies are Avaya customers.

At Avaya, we are re-imagining the industry, bringing visionary products and solutions to market, and enabling our customers to digitally transform their businesses with ease. I am excited and proud of our ability to continue to evolve, pivot and adapt to the changing business communications world. After all, that is the responsibility of a leader.