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Joseph's Blog

{Infographic} Customer Experience and Value Add

 

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Joseph A. Michelli, Ph.D. is a professional speaker and chief experience officer at The Michelli Experience. A New York Times #1 bestselling author, Dr. Michelli and his team consult with some of the world’s best customer experience companies. Follow on Twitter: @josephmichelli

Customer Experience and Value Add: Make it Personal, Emotional, and Sensory

Being raised in an emotionally expressive Italian family, it’s no wonder that I’ve been attracted to the emotional side of business and the importance of “emotional value” in customer experience creation.

emotional value

Over the years, I’ve gravitated toward thought leaders who’ve echo my belief that “all business is personal” and to my view that “behind every purported rational decision lurks a powerful emotional driver.”

Love and Profits

Dating back to 1991, I was taken by the writings of James Autry as he broke with traditional boss/employee power hierarchies and encouraged a more personal/emotional approach to leading people. Writing in his book, Love and Profits, James noted, “Good management is largely a matter of love. Or if you’re uncomfortable with that word, call it caring, because proper management involves caring for people not manipulating them….Management is a sacred trust in which the well-being of other people is put in your care during most of their waking hours…. So management is a matter of being ‘in relationship.’” From James Autry’s and my vantage point, leading through “love” and “relationship “ are authentic emotional drivers for employee engagement.

Predictably Irrational

Behavioral economist, Dan Ariely’s work on emotional decision-making has also been ground-breaking and inspirational; particularly, when it comes to consumer behavior. In this blog post from 2008, Dan noted:

We used to think about decisions as cold calculated, detached, computations that examine the costs and benefits, but recently we have gained a higher appreciation for the role of emotions in our decisions and for the fundamental ways in which they change us…. Emotions are an integral part of who we are, a part that represents our evolutionary history, a part that is a basic and necessary component of our behavior.”

Dan’s Nobel Prize winning research and books like Predictably Irrational continue to highlight the effects of human expectations, arousal, and “high-emotion” situations on decision-making, purchase behavior, and loyalty.

Emotional Value Across the Journey

Thought leaders and researchers like James and Dan champion the importance of incorporating emotional value into every decision we make when serving others (team members, direct reports, suppliers, shareholders, and customers). Our value and the value of our goods and services is often fully realized when people, processes, and technology align to make our deliverables personal, emotional and sensory.  

To demonstrate the importance of the sensory connection, for example, one need look no further than the evolution of virtual reality. From my first exposure to early Oculus Rift innovations to more advanced deployments leveraged by my clients and others, I’m convinced that virtual reality is emotional reality.

Evolving VR

If virtual technology to date isn’t immersive and intensely emotional enough, new breakthroughs are taking this brain-absorbing tool to a new level. Writing in Venture Beat, Dean Takahashi previews a new semiconductor being developed by Tegway called ThermoReal. According to Dean:

“ThermoReal is a thermoelectric device that can generate heat and cold upon demand and translate that feeling into your hands as you hold touch controls in VR. It is a new kind of human-machine interface….. I put on a VR headset and held the ThermoReal controller in my hand. As I touched something flaming, I felt actual heat. And when I touched something cold, I felt the coldness for real. And to make me feel pain, the ThermoReal device generated both heat and cold at the same time. It was an electrifying experience.”

Whether it is the heat, cold, or pain of ThermoReal, or the surprise and delight customers feel when they are remembered from visit to visit, brands that deliver emotional value are, in turn, emotionally valued by their customers. Those who simply deliver practical value are at the mercy of those who can deliver that same value, with a touch of the personal, emotional, and sensory.

How About You?

What are you doing to drive emotional value? How are you making it personal, emotional, and sensory particularly at the “moments-that-matter” for those you serve?

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Joseph A. Michelli, Ph.D. is a professional speaker and chief experience officer at The Michelli Experience. A New York Times #1 bestselling author, Dr. Michelli and his team consult with some of the world’s best customer experience companies. Follow on Twitter: @josephmichelli

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Infographic: Customer Experience Creation: Give ’em a Reason to Hire & Keep You

Customer Experience Creation: Give ’em a Reason to Hire and Keep You

Would you eat at a restaurant where no human employees are present? Ten years ago I couldn’t have imagined I would ask such a question. Now, I am saying “yes” to that inquiry!

Itsa Eatsa

In case you missed it there is such a restaurant it is called Eatsa. Eatsa is touted as an “employee free” dining establishment with seven locations spread across Berkely, San Francisco, New York City, and Washington D.C.

Hayley Peterson writing for Business Insider magazine describes Eatsa as, “unlike any fast-food chain we’ve seen before. The restaurant is almost fully automated, functioning like a vending machine that spits out freshly-prepared quinoa bowls. It was recently named one of the most influential brands in the restaurant industry by Nation’s Restaurant News.”

Eatsa provides an automated and, believe it or not, personalized experience. Eatsa’s value proposition is captured in three words “better, faster, and tastier.” This focused approach summates into what leaders describe as, “a new kind of food experience.”

Let’s take a look at the experience, through both words and pictures…

At Eatsa, you initiate the experience from your phone or through the in-store iPad kiosk. Here’s a screenshot from the Eatsa app:

Essentially you are building an Eatsa Bowl and customizing that bowl based on your preferences of bases, sauces, veggies, cheese, items that add crunch, and extras. You are charged through your app and you pick-up your bowl in a “personalized cubby” – as depicted on their website

In addition to one-touch mobile ordering and product customization, Eatsa touts “community” sourced menus. Customers suggest new menu items, and Eatsa takes a “data-driven” approach based on community input. If enough customers want it, Eatsa will make a customer-centric change.

Last but not least, Eatsa has created what the company calls “effortless rewards” which are swiftly and automatically applied to your purchases.

Customer Experience and Human Value

Ok, enough about Eatsa and on to the question of whether humans will be needed in the restaurants of the future. Maybe the better and broader question (beyond dining technology) is what will humans need to do to add value that justifies their expense in service delivery?

The rationale behind an Eatsa-type business innovation is only partly driven by customer choice, ease, and predictability. An added benefit from a business perspective is cost reductions beyond the initial technology investment.

Writing in Business Insider, Kate Taylor notes that the CEO of Carl’s Jr. and Hardee’s, Andy Puzdner, is considering a new restaurant concept much like Eatsa in order “to deal with rising minimum wages…We could have a restaurant that’s focused on all-natural products and is much like an Eatsa, where you order on a kiosk…and you never see a person…With government driving up the cost of labor, it’s driving down the number of jobs…You’re going to see automation not just in airports and grocery stores, but in restaurants.”

Employee Value Add

Irrespective of the reasons labor costs rise, all of us will need to know how we “add value” to every interaction. If our perceptible value is less than that of technology expect to be replaced. Ultimately, I envision we will reach a tipping point where “too much” tech will make “human touch” more valuable. Until then, we will have to “earn our keep” as the world moves to “employee free” business alternatives.

This weeks’ big takeaway is that we must all ask ourselves how do I add value such that my company doesn’t go employee free?

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Joseph A. Michelli, Ph.D. is a professional speaker and chief experience officer at The Michelli Experience. A New York Times #1 bestselling author, Dr. Michelli and his team consult with some of the world’s best customer experience companies. Follow on Twitter: @josephmichelli

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{Infographic} Customer Experience Speaker, Consultant, Author, or … A Robot

Customer Experience Speaker, Consultant, Author OR…A Robot

At first, I didn’t have the heart to place my various occupational titles in the search field. I was afraid I’d find I’d already been replaced. However, a wave of courage washed over me and I went boldly into the unknown. Whew…as an author I might be safe with a percentage just less than 4%.

In case you’re lost, you too can go to a website that predicts the likelihood your job will be replaced by a robot. That website aptly named willrobotstakemyjob.com – gives a 96% probability that original content creators like me will withstand the onslaught of AI and robots. That site (which in my view is really a computer algorithm somewhat akin to a robot) paints a less cheery picture for many other job categories.

Customer Experience Speaker, Consultant, Author VS. CASHIERS

Let’s say you are a retail cashier, your fortune (at least according to the website) is the reverse of that projected for authors. According to the site, your probability of being replaced by robots is 97%. That roughly translates to 97% of clerk jobs being replaced by robots in years ahead.

While I am convinced there is something to these predictions; I think there needs to be deeper analysis. Let’s say you are a first line supervisor of housekeeping and janitorial staff (the website predicts 94% of the jobs in your profession will be replaced by automation). In that case, it might be worthwhile to look at more “robot-proof” professions while also considering what skills will be needed to be among the 6% of remaining humans. Maybe it will require knowledge in how to oversee the efficiency of a robotic set of housekeepers or janitors.

Quite frankly, I’ve always believed we are 100% replaceable – if not by robots by other people who are poised to add more value. To mitigate against our replaceability, we have to constantly assess what produces value in an ever-changing marketplace of customer wants, needs, and desires.

I remember reading a Harvard Business Review article a number of years ago titled What Value Creation Will Look Like in the Future. In it, author Jack Hughes made three key points:

1.) Master the Machines

2.) Get Obsessed with Value

3.) Make Creativity Real

As a customer experience speaker who delivers keynotes and workshops, I’ve had to adapt to be the “master” over mobile technology. Unlike prior generations, audience members can opt-out of my live speaker content if they find something of greater interest or value on their mobile device. In that part of my business, I need to leverage and create greater value than what consumers can find through technology.

All of us, not just speakers or clerks, are competing with technology and automation to add value. When we are a provider that loses to technology we are likely to cry foul (a clerk replaced by a self-serve kiosk). On the other hand, when we are the consumer who wants self-service we are likely to complain if that self-service option is not available.

As a customer experience consultant, I am constantly working with business leaders to help them “get obsessed with value” and look for ways to provide the right mix of people and technology to deliver it. Together my clients and I look for what serves their customers best. In other words, we look for what adds the most value at each interaction point along the customer journey. Further refinements are made based on the differing needs of varied core customer segments.

I take little comfort in the prospect that my occupations might be somewhat insulated from the intrusion of AI and robotics. Instead, I spend a lot more time thinking about being creative to maximize customer value and strive to understand and gain mastery over machines whenever possible. How about you?

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Joseph A. Michelli, Ph.D. is a professional speaker and chief experience officer at The Michelli Experience. A New York Times #1 bestselling author, Dr. Michelli and his team consult with some of the world’s best customer experience companies. Follow on Twitter: @josephmichelli

{Infographic} Service Delivered: Timeless Change

Service Delivered: Timeless Change!

In the small town of my youth, Drs. John Bugelwicz and Peter Gamache did house calls. What an antiquated concept – physicians who would bring their healing arts right into your living room.

If that isn’t peculiar enough, in that bygone era John Fox of Fox Rexall Drug would run a prescription by our house after his pharmacy closed. We could also rely on Bob Fritz to deliver a part for our Ford truck if he had what we needed in his store at Western Auto Supply.

Those were the good old days when I “went to school without shoes uphill both ways in the snow…”

Alas, the world has changed so much!

Now, when it comes to customer service, home delivery (in keeping with the lyrics of a Peter Allen song) represents something “old,” which has been repurposed through digital technology, “to be new again.”

While online ordering and mobile technology afford us the ability to not only buy with a voice command or the movement of a finger, these tools also allow us to have products brought to us with unprecedented speed and convenience. In an article titled, “There’s a delivery service for that,” Crain’s highlights how home delivery continues to meet timeless and fundamental needs:

Consumers are buying not just a meal kit, but potentially a little more time in their day, a little more privacy, or in the case of subscription boxes, simply a little more whimsy.”

So if my childhood had medical service, pharmaceutical, and auto parts delivery, what’s in store for consumers today?

Let’s just look at a few examples from the panoply:

Indianapolis and Bloomington Indiana have ClusterTruck which essentially is a food truck that makes food to order as they bring it to your door. On their website, they refer to this as, “A revolution in food delivery…Nothin’ soggy. Nothin’ cold.”

While we are on food delivery, how about the market niche carved out by October Kitchen in Manchester, Connecticut? According to Crain’s Connecticut, “senior citizens and baby boomers are the…bread and butter” of October Kitchen LLC, the Manchester-based food home delivery business that Paul Finney started 17 years ago. In contrast to more recent startups in the meal delivery space, which tend to market themselves more toward millennials…his target demographic is seniors.

Indirectly related to the “munchies” is the delivery of medical marijuana in California. San Francisco-based Eaze has been referred to as the “Uber of the cannabis industry.” A 2016 article for Techcrunch noted that Eaze launched in 2014 allowing patients to order on demand cannabis and quickly enabled “people to get a medical weed card in the state of California over the phone in under 10 minutes. The startup now claims availability in nearly 100 cities in California and says it has delivered marijuana to more than 200,000 people.”

Founded in 2012, Drizly has expanded to 40 markets in states like Wyoming, Colorado, Texas, and Florida which is well beyond their founding location in Boston. As per their website, Drizly is “driven by the noblest mission of them all — to make sure cups, fridges, and coolers are never empty again.” As such Drizly works with “local stores so you can shop their shelves using your smartphone or computer to order beer, wine, and liquor at the touch of a button. You still have to drink it the old fashioned way, though.”

I have been sharing examples of this trend toward effortless home delivery with keynote audiences for years now, highlighting brief puppy visits, on-demand gasoline fueling, and subscription services that will curate, surprise, and delight consumers with virtually every imaginable form of merchandise. An example is, Loot Crate which purportedly has about 700,000 subscribers all of whom receive, on average, $40 worth of merchandise at a time in the form of “geek subscription boxes for gamers and nerds.”

Even Walmart is “all-in” with the home delivery movement. Currently, they are test marketing an option that they hope will help the big-box merchandiser compete more effectively with Amazon.com. According to a Fashion Network article, Walmart is exploring “a program that allows store workers to deliver packages ordered on the store’s website after they finish their shifts… the step will cut shipping costs, speed the delivery of packages and allow workers to earn additional compensation.”

The big idea from this blog is that every business owner or leader should strive to create options to deliver products/services to customers’ doors whenever possible with as much ease and speed as the business owner or leader can muster.

Based on my reflection of my childhood and the target market for October Kitchen, I’ll take the liberty to modify a 1979 commercial tagline which suggested orange juice is not just for breakfast anymore and instead suggest, “Home delivery is not just for Millennials anymore.”

That tagline, like digitally enhanced home delivery, truly does prove that “the more things change the more they stay the same.”

Lessons from a Young Leader

I’ve been a life-long student of leadership! Fortunately, I have worked with CEOs from some of the world’s most amazing companies – Mercedes-Benz, The Ritz-Carlton Hotel Company, Zappos, and Starbucks just to name a few.

One of the things I’ve learned about leaders is that they come in all shapes and sizes – which prompts me to introduce you to the blog journal of the daughter of a man with whom I’ve worked closely and for whom I have great respect – Harry Hynekamp, the General Manager of Customer Experience at Mercedes-Benz USA. But this isn’t about Harry (except for the influence that he and his wife, Flo, have had as parents); instead, it is about his daughter, Katie.

As you will see from her initial blog post below and the installments that follow, this amazing high school sophomore has a lot to teach us all about leading through challenges with authenticity, positivity, and grace. I am honored to introduce you to one of my newest leadership teachers – Katie Hynekamp…

First Time for Everything

{Infographic} Looking beyond the obvious: spotting customer experience subtleties