Why The Old Ways Of Doing Business Are The New Differentiator
Andrea Belk Olson, MSC
Expert in Operationalizing Corporate Strategy. HBR Contributor and Masterclass instructor, Behavioral Scientist, Author of 3 Best-Selling Business Books.
Think about a business you frequent. One where you walk in and the staff knows your name. You have some banter about recent local happenings. They ask how your children are doing, and congratulate you on your daughter making the state finals. They know your purchasing habits and suggest a new product that just came in that they think you'll love - not simply because it's new, but because they truly know what you like. In addition, you may see them later out and about in the community, and you strike up another conversation. They share a tip about an upcoming event and even offer to get you a discount on tickets - because they know the program is right up your alley.
This is what might be deemed as the "old way" of doing business. Business owners and staff who had built deep, genuine connections with their customers. And for that effort, they had truly loyal customers. This deep connection wasn't built by sifting through immense amounts of data, tracking purchasing patterns, or even a series of special offers. It was built by truly knowing and caring about the customer.
As organizations grew, this interpersonal connection started to wane. More and more services moved online, increasing the gap between the customer and the organization. Customers started to view the organization's offerings as a commodity, and began to shop around for the "best price". Companies that began to feel this commoditization pressure ramped up marketing programs, special offers, and promotions to stay 'top of mind'. New customers would be drawn in by a great deal, but then moved on to the next "best offer" shortly thereafter.
While many customers in this fast-paced environment want services and offerings that center around convenience and flexibility, there's something to be said about the old fashioned "customer relationship". Companies often try to manufacture these "relationships" by telling front line staff to "call the customer by their first name" or "offer them a cup of coffee" when they come in. This isn't a relationship, it's simple courtesy. Building a relationship, and in turn, customer loyalty requires consistency, persistence, listening, and genuine caring.
As consumers, we all have those companies we are loyal to. Those that even though we might be able to find the same product or service "cheaper" somewhere else, we still stick with our same patterns. Why? It all boils down to relationships. There's a difference between knowing someone and understanding someone. When we continue to churn an organization's front-line staff, limit their ability to build relationships and create a unique experience, and bog them down with complex internal processes, the result is no surprise. Building customer relationships become one thing on a long list of tasks, and it sinks to the bottom.
We try to counter this effect with training - bringing in an "expert" to talk to the team about the importance of service, and providing a long list of "tips and tricks" they can use, and then send them back out to the front line again. Maybe there's an incentive program added, pushing them to achieve "3 great customer comments" per month. However, this doesn't incentivize a great experience for all, and it doesn't clarify what it means to create a great experience. In short, we repeat the cycle of disconnection over and over again.
But how do we overcome this problem? We need to get back to the "old way of doing business" - by building real connections with customers. This requires a behavior shift - from being a service or product provider to a relationship creator. And surprisingly, most organizations actually already know how to do this.
Each and every organization has its "service rockstars" - those people that have built relationships with customers. That already "go above and beyond" to genuinely delight and engage people. These individuals are setting the standard for your organization, and they are your great, untapped opportunity. Get your "service rockstars" together, examine what's working, what's not, and most importantly - why. This will enable you to start taking that "old way of doing business" and leverage it into a lasting organizational differentiator.
About the Author
Andrea's 22-year, field-tested background provides unique, practical approaches to creating more efficient, more competitive, customer-centric organizations. A 4x ADDY award-winner, she began her career at a tech start-up and led the strategic sales, marketing and customer engagement efforts at two global industrial manufacturers. She now leads a management and communications consultancy, dedicated to helping organizations transform their organizational cultures from "internally-focused" to "customer-centric".
In addition to writing and consulting, Andrea speaks to leaders and industry organizations around the world on how to craft effective customer-centric organizations. Connect with Andrea to access information on her book, keynoting, training or consulting. More information is also available on www.pragmadik.com or www.thecustomermission.com.
Executive Omnichannel Marketer | Digital Strategist | National Speaker | Team Builder | Product/Services Program Leader
5 年Andrea - This is a great post. It is very helpful to make the conscious distinction.