Making a Pact

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Tony Hsieh opened up our Customer Service is the New Marketing Summit with a compelling statement: “We’re a customer service company. We just happen to sell shoes. Twenty years from now, hopefully people won’t even remember that we sell shoes.”

That’s a strong statement from the CEO of a pretty strong company: Zappos. You may not know it, but they’re not in the shoe business. Having effortlessly bought — and effortlessly returned — many pairs of shoes from and to them, I’m inclined to agree with him. They ooze customer service.

To help us foster and encourage the kind of spirit that Tony believes in, we’ve introduced the “Company-Customer Pact,” a simple, usable framework for company-customer interaction.

The provisional draft of this document is now available at CCPact.com. We’re actively seeking community support, as well as public comments on this document. Support and comments can be voiced right on the wiki pages. Having your voice included would be terrific.

Please forward this post to folks that you’d like to hear in this conversation — or anyone you think would be interested in building better company-customer relationships.

Customer Service = Insurance?

I hate almost anything that relates to finances. Boring!

That probably explains why I’m not freaked out about the stock market’s downward spiral this week; why I nod off when dinner conversation turns to options, commodities, and splits; and why I am still stuck renting a tiny, overpriced apartment in one of the most expensive places on Earth. I’m a financial idiot.

Luckily, there are bloggers like Trent Hamm who can dumb it down for financial nit-wits like me. Trent’s blog, The Simple Dollar, strays into customer service territory today, and he’s put forward one of the best common-sense explanations of customer service that I’ve heard in quite awhile by asking himself this question whenever he is considering purchasing an item: “What would be the implications in my life if it ceases to function and there’s no customer service available?”

Unfortunately, he’s come to the conclusion that “good customer service is like an insurance policy.” It’s a shame to hear it said that way, but I have a hard time disagreeing with him.

The long wow.

Brandon Schauer from over at my other company, Adaptive Path, has just published a sharp and informative essay on “The Long Wow,” an experience and design-driven approach to creating real customer satisfaction by building genuine, widespread, and lasting customer loyalty over time (hint: it’s not accomplished through “loyalty programs.”) As Brandon describes it:

Notably great experiences are punctuated by a moment of “wow,” when the product or service delights, anticipates the needs of, or pleasantly surprises a customer. OXO’s Good Grips Angled Measuring Cup triggers such a moment of wow. A set of angled markings on the OXO cup lets you quickly measure liquids for recipes without having to stop cooking and bend over. Suddenly a little part of your life is easier, because OXO thought carefully about the way you cook. This delightful surprise resonates because it feels tailored to your needs.

This essay resonates with the work we’re doing, because it speaks to those moments where companies genuinely interact with their customers — not as numbers in a spreadsheet or tables in a CRM database but as people with thoughts, concerns, feelings, and most importantly, a need for surprise, empathy, and delight.

With Satisfaction, we’re working to build a tool, a service, and an experience that allows companies to find ways to make these delightful moments more regular, more repeatable, more enticing — more “wow,” really. And longer-term, our goal is to create ways for companies that succeed in producing those wow moments to derive the maximum amount of value from them. We’re developing tools to help companies translate the effect of these wow moments into internally valuable and quantifiable benefits — not just increased sales, but also cost savings, marketing outreach, market research, future product development, and any other touchpoints we can find where consumer affection and joy can be funneled back into a company’s bottom line.

So customers are happy, because they get regular moments of surprise and delight from the companies and products they care about, and companies are happy because they’ve maximized the internal benefit of that experiential response, guaranteeing that they’re going to want to provide it again and again. Everybody wins!

The essay is well worth reading in its entirety. And best of all, the closest Brandon gets to mentioning Apple is the iPod+Nike sports kit — no small feat when you’ve got as big and obvious an example as the entire iPod ecosystem (with its wildly dedicated fan base) looming right there in front of you.

The ant farm of innovation

Ant Farm
An article in the NYTimes today asks whether all the hype over product co-creation and consumer directed design misses something essential–that big innovations still come from highly controlled, top-down organizations and processes. The piece, “In a Highly Complex World, Innovation From the Top Down” by G. Pascal Zachary, also makes the point that many of the most innovative products like the iPod aren’t even customizable, and fundamentally exclude the role of democracy in their design. The suggestion is that new technology is so complex that it could only be created by “corporate or government initiatives overseen by elites.”

Zachary tries to manufacture controversy by pitting “elitists” such as Thomas P. Hughes (”New technologies are becoming so complex that many are beyond the possibility of democracy playing a role in their development”) against new schoolers like Eric Wilhelm of Instructables (”If innovation isn’t tailored to [customers], they expect to be able to tailor it to themselves”). But where’s the conflict? The iPhone is a phenomenon that is Apple doing what Apple is best at (i.e. elite design), but there are thousands of developers hacking away at its hardware, operating system and applications. And as Eric von Hippel (the MIT evangelist for user-led innovation) would point out, this is where most democratic contributions are made, at the edges of the maker’s business. If history is a guide, we can expect some of these apps and hacks from users to end up influencing Apple engineers or being integrated wholesale into its products.

Many of us are attracted to this notion of ivory tower-based innovation, but it’s largely mythical. Many of us know that Thomas Edison, the original icon of the elite genius generating invention after brilliant invention, owed much of his success to raw opportunism and the willingness to crush superior technologies that threatened his business. The technology his famed Menlo Park lab produced often relied on the work of outsiders, usually mavericks and hobbyists. For instance, Edison famously took credit for the early motion picture projector known as the Vitascope, which had been invented by a couple of kids trying to distinguish themselves in trade school.

And Apple, that most singular modern epicenter of technology innovation, owes much of its success to the innovations that came from outside its hallowed walls. The early Mac was a refined set of innovations from Xerox Parc and Douglas Englebart (with design help from folks like my alma mater, Frogdesign). The resurgence of the Mac with OS X is due in part to the fact that it’s based on freeBSD, an open source UNIX system built with contributions from many scattered developers.

And the iPod, the iPod! Not at all the pure creation of isolated genius within the company that Zachary implies in his article. The iPod chip came from PortalPlayer, its interface designed in part by third-party firm Pixo, and even the iPod name was coined by a freelance copywriter.

But one thing’s for certain. Apple will never be able to farm out its MacWorld keynote presentations. There are some things that only Steve Jobs can do.

Customer Service is CTRL+Z for the real world

We all make mistakes. Great customer service is like the CTRL+Z for real life, or Apple+Z for us mac users.

I’ve had three really remarkable customer service experiences this past month. The companies could have refused me service saying that it was simply my mistake: Losing my wallet, showing up for a concert on the wrong day and an application error that led to a misprint on a business card. Instead they did something better.

In all three cases the companies responded with information, help, and forgiveness. A Zipcar employee helped me get back my lost wallet and then even asked me if there was anything else he could do. When I tried to exchange tickets at a concert, Doug behind the desk, helped me understand why it wasn’t possible (even though he really wanted to) and how to make sure I’d have that option the next time. MOO Cards reprinted new cards with no questions asked, no returns required and at no charge.

I know that working on a customer service application makes me more aware of…well…customer service, but it’s also making me more aware of the cases of exemplary service. In the past I only noticed the bad examples. Nowadays, those good examples stand out because I can see what principles are guiding the actions that lead to great experiences. I can connect the dots.

Too often we’re just left frustrated with bad experiences. It can be hard to explain why it was so bad or how it can be better. Hopefully we can stop saying “that sucked” and start saying “that would have been better if they had shared more information” or “that would have been better if they had tried to understand my intentions”. We can change customer service if we have a direction.

It’s my hope that the principles of the conversation-centric approach to customer service enabled by Satisfaction will extend back out to the offline world. Unlike the cold efficiency of the phone tree which seems to have rubbed off on so many in-store service departments, Satisfaction might have a positive transformative effect online AND offline. A return to humanity in customer service through the influence of an online example. This is the kind of web app I’m excited to be building.

-Leslie