DCX Links | September 22, 2024
From Starbuck's New Employee Emplowerment Plan to Two Sides of the Experience Economy and Some Inspiring Words From Brene Brown...This Week's DCX Hot Takes!
Weekly inspiration, education, and coaching for customer-obsessed leaders.
Welcome to this week's roundup of customer experience insights!
For the 2nd week in a row, I’m excited to open up the Premium edition of the DCX Links newsletter to all 1K+ subscribers of the DCX Newsletter, thanks to Frost & Sullivan Executive MindXChange!
Inside, I've got a rich blend of topics to explore. We'll dive into the shift to selling experiences and its flipside “Experiangst,” discover six companies using AI to revolutionize customer feedback analysis, and guide new CX leaders through their crucial first 100 days. Plus, we'll draw inspiration from Brené Brown on daring greatly to the benefit of your customers.
Whether you're a seasoned CX pro or just starting your journey, there's something here to spark your curiosity and fuel your customer-obsessed strategies.
Dive in and let me know what catches your eye!
Happy reading!
-Mark
Free Access to this week’s Premium DCX Links Edition, is Courtesy of Frost & Sullivan Executive MindXchange
ONE MONTH AWAY: From October 20-23, Frost & Sullivan’s Customer Contact West 2024 is hitting Tucson, AZ, bringing together CX leaders for some real talk and genuine connections. You’ll get straight-up insights from industry pros and creative networking that actually matters.
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About Executive MindXchange Events
Here are this week’s must-read links:
Starbucks' Bold Brew: New CEO Aims to Recaffeinate Brand Experience
Selling Experiences. The New Business Imperative
The Dark Side of the Experience Economy
AI Whisperers: Tuning into Customer Voices in the Digital Noise
Your First 100 Days as a CX Leader
Fail Daring Greatly
Enjoy!
Starbucks' Bold Brew: New CEO Aims to Recaffeinate Brand Experience
Newly appointed Starbucks CEO Brian Niccol recently outlined his vision to refocus the company on its roots as a premier coffee destination and community gathering space.
Why it matters: Starbucks has faced challenges in recent years, particularly in the U.S. market. Niccol's strategy aims to address inconsistencies in customer experience and reinvigorate the brand.
The big picture: Niccol acknowledges that while Starbucks remains a beloved brand, it has "drifted from our core" in some areas, particularly in the United States.
Key focus areas:
Empowering baristas to improve customer service
Perfecting the morning rush experience
Reestablishing stores as community coffeehouses
Reinvigorating the Starbucks brand story
Between the lines: Niccol's emphasis on in-store experience and barista empowerment suggests a shift away from the recent focus on drive-thru and mobile ordering.
Planned actions:
Empowering baristas:
Providing baristas with the necessary tools and time to craft great drinks consistently
Focusing on personal drink delivery to each customer
Improving morning service:
Emphasizing timely delivery of outstanding drinks and food, especially during the crucial morning rush
Enhancing in-store experience:
Redesigning stores to better reflect the Starbucks atmosphere (sights, smells, and sounds)
Improving seating comfort
Creating a clear distinction between "to-go" and "for-here" service
Key takeaways for CX professionals:
Prioritize employee empowerment to drive better customer experiences
Focus on consistency in product and service delivery
Create distinct experiences for different customer needs (e.g., "to-go" vs. "for-here")
Leverage technology to enhance, not replace, human interactions
Reconnect with core brand values and communicate them effectively
Bottom line: Starbucks is betting on a return to its roots in coffee expertise and community connection to drive growth and improve customer satisfaction.
Selling Experiences. The New Business Imperative
You Don't Sell Products. You Sell Experiences | Inc.com
Companies often focus solely on product features and specs, today, that's not enough. Successful businesses are shifting their focus to selling experiences rather than just products.
Why it matters: In commoditized markets, differentiating through product features alone is increasingly difficult. Selling experiences can help companies stand out and boost sales.
The big picture: Andrea Olson, CEO of Pragmadik, argues that businesses need to look beyond their products to create unique value propositions and memorable customer experiences.
Key strategies:
Create new differentiators outside of product development, such as automated processes or superior customer service.
Shape unique and engaging customer experiences, like on-site inventory management or proactive maintenance services.
Identify and address customer pain points by streamlining internal processes and leveraging technology.
Between the lines: These experience-focused strategies can help shape a company's brand and set it apart from competitors, even in crowded markets.
Key takeaways for CX professionals:
Focus on the entire customer journey, not just the product itself
Identify opportunities to create unique experiences at various touchpoints
Leverage technology to enhance customer interactions and streamline processes
Continuously gather and act on customer feedback to improve experiences
Train staff to prioritize experience delivery alongside product knowledge
Bottom line: In today's business environment, selling experiences is crucial for differentiation and growth. CX professionals play a vital role in shaping these experiences and driving business success.
The Dark Side of the Experience Economy
The encore after a $400 concert: regret (hubspot.com)
As consumers splurge on pricey experiences, many are left with a new form of buyer's remorse.
Why it matters: The booming experience economy is keeping the broader economy afloat, but it's also leading to financial stress and disappointment for many consumers.
By the numbers:
37% of surveyed consumers said their expensive experiences were at least a little bit of a letdown due to the cost.
Sporting event admission prices were up 21.6% year-over-year in May.
Concert admission prices have increased ~6% year-over-year for much of 2023.
The big picture: "Experiangst" — dissatisfaction before, during, or after an expensive experience — is becoming more common as prices for concerts, sporting events, and travel continue to rise.
Driving the factors:
"Funflation": Consumers willingly paying high prices for experiences.
Dynamic pricing and reseller bots driving up costs.
High expectations set by social media and FOMO (fear of missing out).
Between the lines: While experiences generally contribute more to happiness than material purchases, the correlation between cost and satisfaction is weaker for experiences than for material goods.
What they're saying: "One type of critique that you hear in everyday conversations about people spending tons of money on concert tickets and things like that is you're spending your money on something that's fleeting," says Amit Kumar, a University of Texas Austin professor. "But what I think is important to point out from a psychological perspective is that our experiences actually do endure."
The bottom line: Despite the rise of "experiangst," consumers aren't slowing down their spending on experiences. However, the trend raises concerns about accessibility and financial stress, particularly for those with limited disposable income.
"Staying on top of the latest CX trends is tough, especially with how AI is transforming the field. Thankfully, the DCX newsletter does a brilliant job of curating the must-know info.” - Jimmy, CX Leader, Google
New from DCX: A CX Leader’s Guide to Organizational Buy-In
AI Audio Discussion
A CX Leader’s Guide to Organizational Buy-In is your go-to playbook for building a customer-first culture across your entire organization. It’s packed with strategies to get every department—from customer service to sales, product, tech, finance, and HR—on board with customer-centric practices.
This guide shows how aligning team goals with customer needs drives real business success and gives you practical, no-nonsense tips for making it happen. If you’re serious about getting everyone on the same page, this is your roadmap!
AI Whisperers: Tuning into Customer Voices in the Digital Noise
With all the daily hustle and bustle, it can be tough to really hear what our customers are trying to tell us. As CX professionals, we're all about making those genuine connections, but sorting through piles of feedback can feel downright overwhelming.
Thankfully, AI has come along like that friend who helps make sense of the chaos, turning messy data into meaningful stories about our customers' needs and feelings.
So, let's talk about some of the up and comers who are using AI to help us tune into the voice of our customers more clearly than ever before. They've taken on the challenge of transforming raw customer comments into actionable insights, making our jobs not just easier, but more meaningful.
Here are six companies going head to head in this space:
1. SpiralUp
SpiralUp focuses on turning unstructured customer feedback into actionable insights with an emphasis on predictive analytics and real-time processing. They help businesses not just understand what customers are saying now, but also anticipate what they'll need next. Plus, their customizable dashboards and easy CRM integrations make it a breeze to see and act on the data.
2. Chattermill
Chattermill brings together customer feedback from all over—surveys, support tickets, social media—and uses deep learning to really get to the heart of what customers are saying. They stand out by tailoring their AI to understand the specific language of your industry, so the insights you get are spot-on and truly relevant.
3. Thematic
Thematic uses AI to automatically find themes and patterns in customer feedback without any manual setup. It's like having a tool that not only listens but also picks up on the subtle trends and shifts in what customers are talking about, helping you stay ahead of the curve.
4. Keatext
Keatext is all about making things simple and accessible. Their no-code platform lets you dive into customer feedback across different channels and start getting insights right away. They focus on quick deployment and ease of use, so you don't need to be a tech wizard to get valuable results.
5. Kapiche
Kapiche takes a different approach by eliminating the need for any manual coding or preset categories. They use machine learning to process large amounts of unstructured text, helping you uncover deep insights about customer sentiments and what's driving their behavior without the heavy lifting.
6. Luminoso
Luminoso uses AI that understands language like we do, picking up on context and nuances. They can quickly interpret unstructured text data in multiple languages without needing a lot of training data, making it a great fit for companies with a global reach.
"Love your content and valuable insights into CX and industry trends. Thanks for sharing with us!" - Corey
Why it matters: The first 100 days in a CX leadership role are crucial for learning, gaining buy-in, and laying the foundation for future CX initiatives.
Key strategies:
Ask questions and gather information before making broad proclamations
Focus on building credibility through demonstrated progress
Identify and implement quick wins to build momentum
By the numbers: A 100-day plan broken down:
Weeks 1-2: Introductions and landscape review
Weeks 3-4: Outline initial plans and gather customer data
Weeks 5-8: Finalize roadmap and identify quick wins
Weeks 9-12: Implement quick win projects and develop long-term strategy
Key questions to ask:
Top 3 CX priorities for the first 100 days
Current CX strengths and weaknesses
Most valuable customer segments and their needs
Existing CX measurement methods and potential gaps
Between the lines: Building relationships with key stakeholders and partners across the organization is crucial for CX success.
The bottom line: By the end of 100 days, new CX leaders should have established regular stakeholder touchpoints, mapped customer journeys, launched quick win projects, and outlined a long-term CX transformation strategy.
Fail Daring Greatly
Brené Brown's speech is a powerful call to action for customer-obsessed leaders.
As CX professionals, we're constantly in the arena, putting ourselves and our ideas out there. It's scary, vulnerable, and we'll face critics.
But remember: the credit belongs to those who dare greatly.
Embrace your vulnerability—it's the birthplace of innovation and connection.
As we strive to better serve our customers, we must enter the arena, face our critics (including our inner ones), and risk failure.
The path of customer obsession isn't easy, but it's far better than wondering 'what if?' at the end of your journey.
Know your values, identify your critics, and reserve a seat for them.
But don't let them dictate your actions.
Instead, focus on serving your customers, bringing your whole self to the work, and surrounding yourself with supporters who'll dust you off when you fall.
By doing so, we drive innovation and forge deeper connections with our customers.
Remember, it's not about being fearless, but about taking action in spite of our fears.
This is the path to transformative leadership and exceptional customer experiences.
I hope you found this week’s links and commentary useful. If you have suggestions for future DCX Links editions, send me a note.
Thanks for being here. I’ll see you next Sunday at 8:15 am ET.
Please share with others you think would benefit.
P.S.
In addition to my day job and this newsletter, I want to share some of the exciting content and programs that I have cooked up for your personal and professional growth:
30 Days to Greater Influence – a FREE email course I've crafted specifically for customer-obsessed leaders like us.
DCX Executive Coaching - 1:1 coaching for customer-obsessed leaders (Mention DCX for 50% off the first three months)
The Daily Challenge SMS Service - Daily text messages designed to uplift your spirit, remind you of your worth, and inspire you to keep going, no matter what. - 7-Day FREE Trial
365 Days of Accountability - Accountability Books, Journals, and Exercises
I hope you find these programs useful. Let me know if you have any questions or need any further assistance.
-Mark
www.marklevy.co
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