The customer-centric focus
Over the past few years, one message has been gaining momentum within the marketing world: customer experience is king.
“Customer experience” (CX) refers to your customer’s perception of her relationship with your brand—both conscious and subconscious—based on every interaction she has with your brand during her customer life cycle.
Companies are obsessing over CX, and for good reason(s):
- It is 6-7x more expensive to attract a new customer than it is to retain an existing customer
- 67% of consumers cite ‘bad experiences’ as reason for churn
- 66% of consumers who switch brands do so because of poor service
Across sectors, satisfied customers spend more, exhibit deeper loyalty to companies, and create conditions that allow companies to have lower costs and higher levels of employee engagement.– McKinsey & Company
As conversion optimization specialists, we test in pursuit of the perfect customer experience, from that first email subject line, to the post-purchase conversation with a customer service agent.
We test because it is the best way to listen, and create ideal experiences that will motivate consumers to choose us over our competitors in the saturated internet marketplace.
Which leads me to the main question of this post: Which companies are currently providing the best customer experiences, and how can you apply their strategies in your business context?
Each year, the Temkin Group releases a list of the best and worst US companies, by customer experience rating. The list is based on survey responses from 10,000 U.S. consumers, regarding their recent experiences with companies.
And over the past few years, supermarkets have topped that list: old school, brick-and-mortar, this-model-has-been-around-forever establishments.
In the digital world, we often focus on convenience, usability, efficiency, and accessibility…but are there elements at the core of a great customer experience that we may be missing?
A quick look at the research
First things first: Let’s look at how the Temkin Group determines their experience ratings.
Temkin surveys 10,000 U.S. consumers, asking them to rate their recent (past 60 days) interactions with 331 companies across 20 industries. The survey questions cover Temkin’s three components of experience:
- Success: Were you, the consumer, able to accomplish what you wanted to do?
- Effort: How easy was it for you to interact with the company?
- Emotion: How did you feel about those interactions?
Respondents answer questions on a scale of 1 (worst) to 7 (best), and researchers score each company accordingly. For more details on how the research was conducted, you can download the full report, here.
In this post, I am going to focus on one supermarket that has topped the list for the past three years: Publix. Not only does Publix top the Temkin ratings, it also often tops the supermarket rankings compiled by the American Customer Satisfaction Index.
Long story short: Publix is winning the customer experience battle.
So, what does Publix do right?
If you don’t know it, Publix Super Markets, Inc. is an American supermarket chain headquartered in Florida. Founded in 1930, Publix is a private corporation that is wholly owned by present and past employees; it is considered the largest employee-owned company in the world.
In an industry that has seen recent struggles, Publix has seen steady growth over the past 10 years. So, what is this particular company doing so very right?
1. World-class customer service
Publix takes great care to provide the best possible customer service.
From employee presentation (no piercings, no unnatural hair color, no facial hair), to the emphasis on “engaging the customer”, to the bread baked fresh on-site every day, the company’s goal is to create the most pleasurable shopping experience for each and every customer.
When you ask “Where is the peanut butter?” at another supermarket, an employee might say, “Aisle 4.” But at Publix, you will be led to the peanut butter by a friendly helper.
The store’s slogan: “Make every customer’s day a little bit better because they met you.”
2. The most motivated employees
Publix associates are famously “pleased-as-punch, over-the-moon, [and] ridiculously contented”.
Note the term “associates”: Because Publix is employee-owned, employees are not referred to as employees, but associates. As owners, associates share in the store’s success: If the company does well, so do they.
“Our culture is such that we believe if we take care of our associates, they in turn will take care of our customers. Associate ownership is our secret sauce,” said Publix spokeswoman, Maria Brous. “Our associates understand that their success is tied to the success of our company and therefore, we must excel at providing legendary service to our customers.”
3. Quality over quantity
While Publix is one of the largest food retailers in the country by revenue, they operate a relatively small number of stores: 1,110 stores across six states in the southeastern U.S. (For context, Wal-Mart operates more than 4,000 stores).
Each of Publix’s store locations must meet a set of standards. From the quality of the icing on a cake in the bakery, to the “Thanks for shopping at Publix. Come back and see us again soon!” customer farewell, customers should have a delightful experience at every Publix store.
4. An emotional shopping experience
In the Temkin Experience Ratings, emotion was the weakest component for the 331 companies evaluated. But, Publix was among the few organizations to receive an “excellent” emotion rating. (In fact, they are ranked top 3 in this category.)
They are able to literally delight their customers. And, as a smart marketer, I don’t have to tell you how powerful emotion is in the buying process.
Great for Publix. What does this mean for me?
As marketers, we should be changing the mantra from ‘always be closing’ to ‘always be helping’.– Jonathan Lister, LinkedIn
In the digital marketing world, it is easy to get lost in acronyms: UX, UI, SEO, CRO, PPC…and forget about the actual customer experience. The experience that each individual shopper has with your brand.
Beyond usability, beyond motivation tactics, beyond button colors and push notifications, are you creating delight?
To create delight, you need to understand your customer’s reality. It may be time to think about how much you spend on website traffic, maintenance, analytics, and tools vs. how much you spend to understand your customers…and flip the ratio.
It’s important to understand the complexity of how your users interact with your website. We say, ‘I want to find problems with my website by looking at the site itself, or at my web traffic’. But that doesn’t lead to results. You have to understand your user’s reality.– André Morys, Founder & CEO, WebArts
Publix is winning with their customer-centric approach because they are fully committed to it. While the tactics may be different with a brick-and-mortar store and an e-commerce website, the goals overlap:
1. Keep your customer at the core of every touch point
From your Facebook ad, to your product landing page, to your product category page, checkout page, confirmation email, and product tracking emails, you have an opportunity to create the best experience for your customers at each step.
2. Make your customers feel something.
3. Keep your employees motivated.
Happy, satisfied employees, deliver happy, satisfying customer experiences, whether they’re creating customer-facing content for your website, or speaking to customers on the phone. For more on building a motivated, high performance marketing team, read this post!
Testing to improve your customer experience
Of course, this wouldn’t be a WiderFunnel blog post if I didn’t recommend testing your customer experience improvements.
If you have an idea for how to inject emotion into the shopping experience, test it. If you believe a particular tweak will make the shopping experience easier and your shoppers more successful, test it.
Your customers will show you what an ideal customer experience looks like with their actions, if you give them the opportunity.
Here’s an example.
During our partnership with e-commerce platform provider, Magento, we ran a test on the product page for the company’s Enterprise Edition software, meant to improve the customer experience.
The main call-to-action on this page was “Get a free demo”—a universal SaaS offering. The assumption was that potential customers would want to experience and explore the platform on their own (convenient, right?), before purchasing the platform.
Looking at click map data, however, our Strategists noticed that visitors to this page were engaging with informational tabs lower on the page. It seemed that potential customers needed more information to successfully accomplish their goals on the page.
Unfortunately, once visitors had finished browsing tabs, they had no option other than trying the demo, whether they were ready or not.
So, our Strategists tested adding a secondary “Talk to a specialist” call-to-action. Potential customers could connect directly with a Magento sales representative, and get answers to all of their questions.
This call-to-action hadn’t existed prior to this test, so the literal infinite conversion rate lift Magento saw in qualified sales calls was not surprising.
What was surprising was the phone call we received six months later: Turns out the “Talk to a specialist” leads were 8x more valuable than the “Get a free demo” leads.
After several subsequent test rounds, “Talk to a specialist” became the main call-to-action on that product page. Magento’s most valuable prospects had demonstrated that the ideal customer experience included the opportunity to get more information from a specialist.
While Publix’s success reminds us of the core components of a great customer experience, actually creating a great customer experience can be tricky.
You might be wondering:
- What is most important to my customers: Success, Effort, or Emotion?
- What improvements should I make first?
- How will I know these improvements are actually working?
A test-and-learn strategy will help you answer these questions, and begin working toward a truly great customer experience.
Don’t get lost in the guesswork of tweaks, fixes, and best practices. Get obsessed with understanding your customer, instead.
How do you create the ideal customer experience?
Please share your thoughts in the comments section below!
Grab your complete copy of the new “State of Experimentation Maturity 2018” research report
What makes some organizations so successful when it comes to experimentation? This new 45-page report provides benchmarks for stages of experimentation maturity at leading North American brands.Get Report