Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting


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Not all touch points are of equivalent value. Service interactions matter more when the core offering is a service. Companies need to map the corridor of touch points and watch for snarls. At each touch point, the gap between customer expectations and experience spells the difference between customer delight and something less.

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Customers instinctively compare each new experience, positive or otherwise, with their previous ones and judge it accordingly. For example, Dell transformed buying computers over the Internet from a risky to a reliable experience.

When it extended that set of procedures to the selection and purchase of expensive plasma HDTV sets, however, it disappointed. Dell did an effective job of creating positive customer expectations, but they turned out to be better fulfilled by the in-person sales force at Best Buy.

Ideally, good design makes both the most routine and the weightiest customer experiences—checking a price, getting a question answered, or placing a multimillion-dollar order—pleasant and efficient. However, even when dissatisfaction or wariness arises, artful control of consumer experience can overcome it. Upon releasing the new medication, which had demonstrated advantages over existing ones, Gilead noticed that while sales to patients new to therapy were robust, sales to patients already undergoing treatment were growing far more slowly than expected. Switching requires ending a trusted relationship in the hope of reaching an uncertain improvement level.

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The company also learned that HIV-positive patients are far more interested in the potential adverse effects of a new drug than in its supposedly superior efficacy. Three forces in the main conspire to preserve this gap. Having spent millions of dollars on customer relationship management software, many CEOs consider their problem to be not a lack of customer information but a superfluity of it. Before investing more time and money, executives justifiably want to know how customer experience data are different and what their value is.

CRM tracks customer actions after the fact; CEM customer experience management captures the immediate response of the customer to its encounters with the company. CEM Versus CRM Customer experience management and customer relationship management differ in their subject matter, timing, monitoring, audience, and purpose. Leaders who rose through customer-facing functions, such as Cisco Systems CEO John Chambers, are more likely to act with reference to customer experience than those who have not.

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When competing new technologies are difficult to choose among, Cisco defers its choice until key customers have registered their reactions. Because the company knows there will be a market for the choice it finally makes, it can afford to commit itself later than its competitors. In contrast, executives who rose through finance, engineering, or manufacturing often regard managing customer experience as the responsibility of sales, marketing, or customer service.

Once data start flowing, the bogeymen come out of the closet. Can we afford to do what customers are asking for?

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How do we choose between conflicting preferences? Can we accept what customers say they are experiencing without first telling them what they should be experiencing?


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Corporate leaders who would never tolerate a large gap between forecasted and actual revenues prefer to look the other way when company and customer assessments diverge, as they do in the Bain survey. Corporate leaders who would never tolerate a large gap between forecasted and actual revenues prefer to look the other way when company and customer assessments diverge. However, statistical analysis has developed to the point where it can dependably quantify both the relative importance of each touch point and the experience it provided.

It can also isolate key transactions, accounts, regions, customer segments, and so forth, and then parse the resulting data.

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About ten years ago, companies started collecting experience information electronically. Now they can instantly combine it with data collected from CRM systems and other customer databases, conduct analyses of both individual and aggregate responses in real time, and then automatically route and track issues needing resolution. Approached, however, with the requisite empathy and insight, they can be in their own way more revealing than concrete findings. Many organizations place responsibility for collecting and assessing customer experience data within a single, IT-supported customer-facing group.

Doing so accomplishes at least three things: It saves money; it protects customers from redundant and annoying solicitations; and it permits direct comparison of customers on the basis of their location, choice of product, or some other criterion. But it is a mistake to assign to customer-facing groups overall accountability for the design, delivery, and creation of a superior customer experience, thereby excusing those more distant from the customer from understanding it.

In contrast to this common pattern, Palm drew on customer experience to make the Treo one of its most successful products ever. A combination of cell phone and Palm Pilot, the original Treo used the same built-in rechargeable battery as the Palm organizers. When used as a cell phone, the device consumed far more power than it did when used as an organizer. So customers who were heavy users of the cell phone feature found that their Treos were often losing power—and often at an inconvenient distance from their rechargers.

Dissatisfied with the status quo, customer service vice president Dan Gilbert, showing unusual initiative, distributed the experience data his department had collected to product development, which went to work on the problem. The next-generation Treo came with a battery that users replace. Typically, however, a vigorous reaction to intelligence gathered on customer experience requires general management to orchestrate a response to customer problems.

Intuit learned that when it tried to address the trouble customers were having installing a new release of TurboTax. There are three patterns of customer experience information, each with its own pace and level of data collection. Tracking Customer Experience: Persistent, Periodic, Pulsed Companies can monitor various patterns of interaction with customers to gain a better understanding of the customer experience they are providing. Depending on the precise information a company is seeking, it may choose to analyze past patterns, present patterns, potential patterns, or a combination.

Each pattern requires a distinct method of generating and analyzing data and will yield different types of insights. When companies monitor transactions occurring in large numbers and completed by individual customers, they are looking at past patterns. As these two examples demonstrate, each attempt to determine the quality of the experience directly follows the experience itself. Although surveys are the tool used most often for gathering data on past patterns, customers are sometimes approached through online forums and blogs.

For this reason, the employees evaluating results must be attuned to areas of customer experience that a survey or other tool does not directly address. Analyses of present patterns are not simply evaluations of the meaning and success of a recent encounter. They envision a continuing relationship with the customer.

By initiating contact with different customers at different times throughout the year, BearingPoint has created an almost persistent data flow that does not depend on the completion of a given transaction, while permitting comparisons among customers on a range of issues. BearingPoint learned in this fashion that the best practices it had established in one vertical-market group had not migrated to other groups. Present patterns are collected through surveys or face-to-face interviews, studies tailored to the subject, or some combination thereof.

It helps to prepare customers for the inquiry by telling them the purpose of the survey, how they will hear about the findings, and what role they might play in addressing them. Accordingly, Hewlett-Packard rewards its account managers on survey-participation rates as well as results. Potential patterns are uncovered by probing for opportunities, which often emerge from interpretation of customer data as well as observation of customer behavior.

Most companies apply a single summary metric to data on past and present patterns. As relationships with customers deepen, companies tend to collect data with greater frequency. The patterns that emerge suggest further areas of inquiry.

Other tech giants, such as Facebook and Twitter, describe themselves as platforms, partly as a way of justifying spotty oversight of their sites. Amazon owns the marketplace. They can do whatever they want. Reporters for the Enquirer had been trailing Bezos and Sanchez for months, the e-mail indicated, photographing them in hotels and at airports, and compiling a dossier of trysts.

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Bezos and Sanchez were both married, and the Enquirer was prepared to expose it all. Bezos and his wife, MacKenzie, a novelist, had been together for twenty-seven years. It was that kind of relationship, real inspirational. Like, if they could stay together and keep their family sane, with all the work and money and stress, then the rest of us could, too. He appeared on television at the Academy Awards. He bought a mansion in Beverly Hills, and he threw a party co-hosted by Matt Damon. He was following an intense weight-training and diet regimen.

He was in Seattle less frequently, employees noticed, and he often attended events without MacKenzie. But everyone was all worked up and excited about it—cackling about blackmail and dick pics. It was like the unpopular kids had finally found something embarrassing about the quarterback.

But the tabloid did not end up publishing racy photographs; it ran mundane images of Bezos and Sanchez, some of which had already appeared online. According to the former American Media executive, the publication might not actually have had explicit images. And then this thing happened, and it was so hard to make that fit into the picture of the person we knew.

Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting
Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting

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