The One Thing
Many of my ServiceNow Linked-In and Twitter connections have been posting a quick video of Frank Slootman (our Chairman) talking in an interview around what successful leaders of companies do that is different: here is the 1 min video: Frank Slootman on doing One Thing
So – in that spirit – what is the one thing about ServiceNow CSM that has made it successful - in such a short time in the market - and will continue drive customer outcomes going forward? Its finding #Rootcause of customer issues.
The two trends driving the concept of “rootcause” to be so successful:
- Self-Service. In 2016 society hit a tipping point around service. Kate Legget of Forrester published this report: Self Service trends The net is: People would rather self-serve then have an interaction with a brand. I personally will go down deep dark rabbit holes on youtube trying to find an answer to my problem with a product before calling/interacting with the brand. I’ll email my friends. I’ll post my challenge to social media. Sometimes, I’ll just live with the problem longer hoping someone else fixes it… So, by the time I finally call, email, or chat the company – I’ve pretty much exhausted my efforts. Hence – a company should view every interaction with a brand as a defect! Something has broke! Could be simply a lack of self service options to include knowledge, videos, etc, no proactivity of a known issue to existing customers, the actual product/service broke, etc. This has made contact centers - "exception centers". Hence, companies need a “six sigma” (Created in manufacturing but has been perfected by nature) like process to drive defects out. The key to that is a process and a platform to do that = ServiceNow CSM.
- ServiceNow CSM takes the VP of customer care off of the island they are on and engages the entire organization = #teamsport = to find root cause (billing error, network outage, software bug, bad bypass line (I watched Fletch last night). We are able to find #rootcause through powerful workflows of the customer case - the ability to set tasks, subtasks, SLAs, escalations…all automated – until a rootcause is found.
- ServiceNow CSM Utilizes a disciplined method of delivering service (ITIL) and little known (to customer service execs) objects and processes like problem management and change management.
The Second Trend:
2. “Servitization” driving Digital Transformation – Companies want to sell services vs products (sticky, higher margins, recurring revenue). To do that – they first need to digitize all of their assets… no more sending servers or CD ROMs of software to customers… they now sell it as a service (SaaS). No more selling a product (engines, houses, cars – eventually clothes) – companies position the usage of those items. When you sell usage – companies only get paid when those items are being flown, driven, worn. This changes the overall operations of companies. Before – they needed to optimize the “buying cycle” and hence Sales and marketing was paramount (CRM). In the Digital age – companies need to make sure they optimize the “utilization cycle”. Monitoring and driving utilization requires they provide the best service – all the time. They connect with the customer differently (web portals, wearables, etc). They connect with product to monitor health (Operational Management - ITOM), they provide effortless experience surrounding the customer utilization. When there are problems – and there will be – they solve problems quickly, they find the root cause of the problem and repair it so other customers don’t have that problem, and then they proactively position the repair. This new paradigm diminishes sales and marketing and promotes service! A company that can’t retain customers in the new world of service – won’t be a company for very long. Some great infographics on the cost to acquire a customer vs simply retaining one
Action: Find #rootcause of service inquiries, complaints, cases! Why are your customers calling, emailing, chatting with you? Are these "defects" that can and should be driven out of the system? Understand the latest capabilities and trends around Self-Service and how your customers would like to utilize new and exciting means of self-service. Finally, understand how digital transformation will impact your service journeys and what your entire organization needs to do differently in support of your customers.