Tagged with Customer Engagement

Aligning the Customer and Employee Value Proposition

Many companies are working hard to create a world-class customer experience and employee experience i.e. ensuring that they offer a compelling, clear value proposition for its customers and employees. At the same time, it is also critical to make sure that these two value propositions themselves are in alignment. For instance, if the customer value proposition is “on the spot resolution of problems”, then the employee value proposition cannot espouse a process-driven culture. After all, a culture of empowerment is more important to support that particular customer value proposition.

It is interesting to think about the fact that Marketing departments don’t really control how employees understand the brand or display the brand values or deliver the customer value proposition. And yet, company brand and reputation are typically drivers of talent attraction. Similarly, the HR departments don’t exercise much control over company brand, customer perceptions etc. And yet, employees are the key factor in delivering the customer value proposition.

More than anywhere else, I think this is particularly relevant in service sector industries like say financial services, hospitality, healthcare, professional services, retail etc. In these industries, every employee is a representative of the company brand. And every employee creates or destroys brand value at each customer interaction point. Companies need to think about how they can get HR and Marketing teams to work together to design and deliver an integrated value proposition to their employees and customers. Have you come across companies who are doing this effectively?

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Read Up!

Here are a few interesting reads I came across in the last few weeks:

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Read Up!

Scanning through the blogs and websites I visit frequently, I put together a fresh list of content that I found interesting. Spend time on these and I am sure you will come out a better professional!

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Employees First: Why Employee Engagement Matters

Systemic / Cultural Enablers—> Employee Engagement—> Customer Engagement—> Business Goals

As simple as it gets. In order to attain business goals like profitability, growth etc. organically, organizations need to engage customers effectively – deliver great products / services and delight them in every interaction they have with the organization. And, that’s where employee engagement comes in. Engaged employees create positive interactions and create customer engagement. Customer engagement cannot be created by locking-in customers through contracts or by offering the lowest price, but it is created by “positive emotions”. The employee-customer interaction should be a very critical part of your business strategy.

At a recent conference, Vineet Nayar, the CEO of HCL Technologies (a large Indian IT company) spoke about this subject.

How do you execute the change in how you run your teams? If we outsource our thinking and believe that the real responsibility of bringing about transformation really belongs to the CEO, I think we’re making a mistake. Each and every manager can bring about a fundamental change in the way he runs his company and teams, and I think he will succeed significantly more than if he looks up to somebody else to bring about a change.

If you look at the control pyramid, which is very critical in running your organization, I think you have to leave it intact for governance reasons. But if the value pyramid could be inverted, we have to ask three questions of ourselves. Where is the value of the company being created? In the interface of the employee and the customer. So, what is the business of the company? To maximize the creation of the value in that value zone. So, therefore, what should be the business of the management of the company? To maximize the value created in the value zone. If all companies focus on that, they can maximize the value that is being created in the value zone and the management will be infusing, encouraging, enabling, rather than controlling and reviewing.

Focus on Employees First, and a lot will follow. You can read the full text of the Vineet’s talk here.

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Designing Customer Experiences

These days I have been working with a client to help design their executive education center for their leadership cadre. They want to provide trainees a world-class learning experience, not only in terms of quality of education, but also hospitality. They don’t even call them “trainees”, but call them “customers”. So, it’s like they want to create the Ritz Carlton of executive education.

I am yet to fully immerse myself in the project, but am working with a simple construct in my mind. Many times, when companies are looking at customer experience programs, they end up automating processes & setting policies which definitely ease internal operations, but may not directly translate into positive experiences for customers. That’s internal focus. My simple thought is that the process has to be reversed, with focusing first on what the customer experience should look like, how would positive interactions / touch-points look like and then think about what systems / processes are needed to get to the desired state.

So, a fancy CRM will not do the trick for you, if it has not been designed & implemented with the customer in mind.

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