CHAPTER 7
The Positioning – How DCS Future-Proofs Your Company

What we'll share in this chapter:

  • Transforming to DCS creates the opportunity for companies to position themselves for future success – both internally and externally.
  • Internally – executives and leaders need to send a clear message to the organization that digital transformation is an operational and cultural shift, a change of mindset and a rallying cry that must be continually reinforced in order to position the company for future success.
  • Externally – a DCS service model creates clear differentiation between your company and competitors. It signals that you are evolving as quickly as your customers have. When service interactions occur on the customer's own screen and in front of their eyes, this “experiential differentiation” can be as powerful as product differentiation.
Cartoon illustration of DCS in 2030.

TIME TO MOVE TO THE CENTER OF THE UNIVERSE

Fun facts:

  • The Model-T Ford was introduced in 1908. A decade later, approximately 1 in 10 Americans owned a car.1
  • The iPhone was introduced in 2007. A decade later, approximately three out of four Americans owned a smartphone.2

The screen has become the center of our universe. That's not even a “fun fact,” it's just a fact of life. So the question your company needs to grapple with is: “Shouldn't the entire service experience take place on the customer's screen?”

Do you ever think about how all that screen-time is impacting us?

  1. Q: Are the digital changes that have happened in our society good or bad? Are we better – as humans – with so many of us heads-down most hours of most days staring at a screen? Are we?
  2. A: There is no right or wrong answer. There are convincing arguments to be made for “we're much better off” and “we're way worse off.” But opinions ultimately don't matter because the world is the way the world is.

But here's a question you should answer:

  1. Q: What are you going to do about it?
  2. A: Whether you are a primary decision-maker at your company, an influencer of decisions, or just a “bug in the ear” of your superiors – the stance you should be taking is:

In this final chapter, we'll explore how to position the transformation to Digital Customer Service (DCS) – in order to build momentum, drive consensus, and increase the impact of the evolution of your service model.

  • Internally: What is the optimal “message” you should be communicating about digital service? How can you help your people understand why it's so critical for the company, and for them? What do you need your team and your executives to internalize so they will be “leaning in” with you instead of “pushing back?”
  • Externally: How can you position the “experience” customers have in DCS interactions as an advantage over competitors? If CX is a true differentiator, how can DCS make customers feel smarter about doing business with your company, and most importantly, about themselves? And how will that kind of reaction help to future-proof your business?

INTERNALLY: IT'S A 6 × 3 AND A-TO-Z WORLD

Those automatons who sing all day in the Fantasyland section of Walt Disney World have never been more correct: For most of us who live on our screens all day, it is a small world after all – approximately 6 inches tall by 3 inches wide.

No matter how obvious this is just from our own personal observations (raise your hand if there is some screen within one yard of where you are right now … yeah, that's all of us), at many companies it still doesn't feel like the message has fully sunk in.

As quickly as digital technology and smartphone ubiquity have evolved – enabling each of us to have access to anything and everything we could ever need or want, all within the palm of one's hand – most companies are only just now coming to the realization that they have not transformed nearly as fast as their customers.

This is why the message that “we must live on our customer's screens” is more critical than ever. To the extent that your company is still receiving thousands or even millions of phone calls per year, that's a signal that your company is no longer in touch with the way the world works. That's not how customers live.

They want to be in control at all times, and the screen is the center of their universe. The most “high-effort” parts of any customer experience come from the feeling that the company is in total control, and I'm not.

ICMI founding partner Brad Cleveland says companies need to come to the realization that most customers have become almost entirely digitally oriented so quickly. “There are so many things customers want to do by themselves now. The desire for low-touch, or even no-touch experiences was high before and has only grown since the pandemic.” He says, “Customers get upset ‘when I can't do what I want to do, the way I want to do it' and that isn't likely to change.”

Justin Robbins asserts that many organizations are still awakening to the fact that customers are hungry for digital experiences that take place on their screen:

I think a lot of companies are doing the opposite of digital transformation, they're just trying to avoid digital stagnation, meaning they don't want the tools and systems they're using to become obsolete or ineffective. To me, transformation has got to be based on a very clear definition of the overall digital strategy for the business – what you're hoping to enable, what problems you're trying to solve, what's the value you're trying to drive, what kind of experience are you trying to create for your customers?

Digital transformation in customer service may have seemed like a “tomorrow” consideration for many companies just a few years ago, but it is quickly becoming a matter of “right now” urgency as more customers are on their screens most hours of the day, and have now experienced service interactions with companies that were founded as digital natives.

John Goodman, the author of the National Rage Study mentioned in Chapter 1, says all you have to do is consider your own personal experiences with the “digital super-companies” that now dominate the landscape – often referred to as the A-to-Z phenomenon: “A small number of companies have completely re-invented what great service feels like – and as always, Amazon and Zappos are the most frequently mentioned – but that kind of experience has now become the new standard, while the average company is perceived as having done a worse job.”

In order for your company to fully “get onboard” with a commitment to transforming your service operation, the core message that needs to be socialized, popularized, and internalized up and down the org chart is:

Why Customer Service for “Traditional” Companies – Like Casino Blackjack – Isn't Fair

Have you ever played blackjack? You know, each player gets two cards and the dealer gets two cards. From there, both sides can either stand pat with the total they have or keep drawing more cards. Closest to 21 wins. But be careful, because if you go over 21, you lose. So simple.

You, as the player, are free to make your own choices for every hand. You can stand on 9 if you feel like it, or you can take a hit on 19 (please don't do either of those things, ever!). But your decisions are entirely your own.

The dealer, however, has to play by rigid “house rules.” Dealers must take a hit if their total is 16 or less, and they must stand if it is 17 or higher. That basic set of rules is how blackjack is played everywhere from Vegas to Monte Carlo to your kitchen table.

But here's the thing: You, as the bettor, can play by the same exact rules as the dealer – and in most cases you should.

So why does the house win so much money? If you're drawing from the same deck and playing by the same rules, shouldn't it be a 50/50 game? Shouldn't the players and the house come out dead even every time?

But the house has one clever advantage that most players never even notice.

  • If you tie the dealer – if you both have 20, for example – that's a “push” and you get your bet back. No one loses.
  • Of course, if you draw one card too many and “bust” by going over 21, your wager is swept away on the spot.
  • However, in that same hand – if the dealer ALSO busts, they don't reach back into the chip rack, refund your bet apologetically, and offer you a free drink. You already lost.

The house's advantage is that they get to go last.

This is why the companies that invented themselves as digital companies (the A-to-Z companies) have such a leg up. They were conceived based on the way people think and behave in today's digital world. They got to go last.

But service organizations founded 15 or more years ago (let alone 50 years ago) are now faced with having to compete in the digital arena – to somehow emulate an “Amazon-like” experience. Being a “traditional” organization can feel like a massive disadvantage – and no matter how much these companies have tried to evolve, it seems nearly impossible to keep up.

However, thanks to a convergence of technology, creativity, and a deeper understanding of customer digital psychology, the opportunity to transform to a seamless, effortless, economically efficient DCS operation is available to virtually every company. It is in many ways the ultimate do-over. Your organization needs to recognize that now is the time to take the steps necessary to reinvent the way you serve your customers.

In a 6 × 3 and A-to-Z world, customers are on screen with friends, family and colleagues all day. They prefer this digital lifestyle because it gives them control (convenience and agency). If your company isn't positioned in a way that feels “in sync” with this behavioral evolution of digital-first customers, it is easier than ever for them to switch to another competitor.

Transitioning to DCS positions you in a way that is more consistent with how people live in today's world. This will help you meet and exceed the “expectation” for how service is supposed to feel – an expectation set by digitally native companies like Amazon and Zappos (which, of course are now the same company!).

The Dichotomy of Expectations

For all the talk over the past few years about the continual rise in customer expectations, one thing that's become increasingly apparent is the sloppiness of the term itself. A quick count shows we've already used the words “customer expectations” 12 times so far to this point in this book (including twice in just THIS paragraph!), but it feels like those two words should have an (*) next to them. What we've been observing is that at a psychological level there are two sets of customer expectations that most people experience (simultaneously!) just as they are initiating a service interaction – and they are polar opposites.

  • Customers expect digital service experiences to be excellent. They have a standard that they think is reasonable, and they don't think they should have to settle for less than that.
  • Customers also expect that their service interaction will be a big hassle. They anticipate that their standard will not be met.

They expect service interactions to be increasingly digital, customized, and personalized. And why shouldn't they? Most people believe companies have all the information about them somewhere in their “systems” – what they've purchased, how much they've spent, how long they've been buying from the company, their overall satisfaction with the company through whatever feedback they've ever provided in surveys – so there's an expectation that every interaction should be “all about me.” However, we also know – based on qualitative customer research from focus groups and interviews – that when a problem arises and there's a need to reach out to customer service, they are often disappointed:

This leads to this potentially dizzying dissonance:

Change the Experience, Shift the Mindset

You need to engineer the experiences your customers are having in a way that makes them feel “digitally effortless.”

Consider the following: How differently would customers feel if you were creating a service interaction that put them totally in charge – because it was happening on their screen – but you still offered the opportunity to connect with an agent at any time they feel the need, but without ever having to dial a phone number ever again? How would that impact their “confidence equity” over time?

Digital transformation in service is the key to long-term customer loyalty. Loyalty is the key to your long-term success – and it mostly comes from how customers feel about us. And by understanding the psychology of digital interactions more clearly – focusing a little more attention and communication on how customers feel – think about how your company could position its service experience in a way that makes customers feel better about doing business with you.

To the degree that your influence can reach – this is the mindset shift you need to be part of engineering in your organization:

As an organization, we now have the opportunity to influence the way customers feel about doing business with us in ways that were never available before – the technology now exists – and it's not only way better for customers but it's far more efficient than what we've been doing.

EXTERNALLY: CX IS THE LAST FRONTIER FOR DIFFERENTIATION

How different is your company or organization from your competitors?

That is an important question, but it's unfair to ask YOU – because you know too much. If you're a service leader, a CX professional, or any part of your company's digital team, you are being paid to analyze (perhaps even micro-analyze) the complexities and idiosyncrasies of the marketplace your organization competes in. And you likely have been doing so for years.

You have what's called the curse of knowledge.

But even your most loyal customers who've been with you for years or decades are unlikely to have even a fraction of your understanding about the difference between what your company offers and what other similar companies are offering.

No matter how much daylight you believe there is between your company and your competitors, the gap appears much smaller among people who don't have your years of experience.

Products and even services have become so overcommoditized. Among competitors, the degree of copy-cat-ism is typically very high. The minute you come up with something that feels very different – if it's any good – others in your category will likely adopt it almost immediately.

Take a common competitive set that most of us are generally familiar with – national pizza delivery chains:

How different is Pizza Hut from Domino's from Papa John's?

  • Yes, you may like one of those brands better.
  • You may prefer the crust, sauce, cheese or toppings that one offers compared to others.
  • One of them may be offering a special at the moment that could save you a few dollars.

But aren't they essentially the same types of companies, doing virtually the same exact things?

This is why customer experience is the final frontier in competitiveness and differentiation. It is your last best hope to position your organization differently from others who offer more or less the same thing, in the minds of people who don't know a fraction of what you know. The choice you make about which pizza delivery company to order from will likely be based as much on the delivery experience as it is on the pizza itself.

So, what is your company doing to create a truly different experience?

Positioning “Digital CX” as a Differentiator

To digital-first customers, your website is your “virtual presence.” It is your brand, but it plays out on your customer's screen. This is the arena where differentiation takes place. In the mall called The Cloud, it is your storefront. But the opportunity to truly differentiate lies not just within the visual elements of design and graphics, but also based on the digital experience your customers are having every day with your company.

Customer service expert Shep Hyken says creating a digital experience that makes things as easy and convenient as possible is a differentiator that makes economic sense, “You don't have to sacrifice profit to create additional convenience, customers are willing to pay more – it's become normal. He says that 62 percent of customers are willing to pay more for better service and 69 percent are willing to pay more for greater convenience. Price is kind of important, but if you can make my life easier, save me time and a big hassle, that used to be a luxury – but today that's considered standard equipment.”

Jacqueline M. Ridley is a customer alignment strategist whose firm Break Tradition has worked with dozens of companies to help them better understand the psychological impact of the customer experience. She says it is not enough to emphasize what is different or better about your company at a logical level, you must also understand the differences at an emotional level: “When a customer makes a purchase, something drove them to your company, but are they walking away feeling like they want to tell people about the experience? Is the experience fulfilling a psychological need of some kind?”

She goes on to say that since customers have unlimited access to information about your company and your competitors – including feedback and reviews from peers – creating a differentiated experience is crucial:

Customers are savvy, they've done their research, they know there are other companies that do the same things. They want to feel like they're “part of the family” and they want to know they're being heard and that someone is listening. That is the kind of experience that makes one company different from another. But when customers have a problem that seems hard to solve or creates a lot of negative mental energy, it's like letting someone down in an intimate relationship. That takes a psychological toll.

To customers, what's different about a DCS experience is that it's easy. It's effortless. It is the ultimate in convenience because whatever I need is right there on my screen.

You Must Accelerate Your Transformation Just to Keep Pace

The massive changes in customer expectations and behaviors within digital self-service we've all been witness to – from zero expectation, to the expectation that everything should happen on my screen with me in total control – have now gone to a point that is edging toward its realistic maximum.

Think about how quickly that happened. If you take “one giant step back” and consider the “evolution” of digital self-service – from 1977 (the first ATMs), to today's all-digital world – that transition occurred in about a second-and-a-half in evolutionary terms.

So, it doesn't seem fair to expect that “traditional” companies should be able to transform their service operations as quickly as that.

Perhaps customers should “cut a break” to those companies and organizations that have been a little slower in their digital transformation. Or, for companies that have evolved their digital capability in some other areas, but haven't quite reinvented the way they serve customers.

Maybe customers should be more patient and forgiving. But that's not how it works.

Joe Borkowicz of Shared Service Solutions says:

You have to evolve to stay relevant, right? I believe to stay relevant in today's marketplace – this is either with your customer set, your member set or your employee set – you have to embrace digital capabilities. If not, you're gonna be left out. It's about relevance. And because in almost every marketplace, there's someone trying to steal your share. There's too many disruptors.

If the way customers perceive the experience of doing business with you feels out of date, or less digitally evolved than they have become, that is not the position you want to be in.

Using DCS Technology to Create a Differentiated “Human” Experience

What do you and your company want to be known for? What do you value most? Every organization has a set of values – maybe they're posted on the walls of break rooms or perhaps they're framed and on display in a lobby or waiting area.

Take a look at them (most companies have about three to five) – and consider the following distinction between them:

  • How many of your values are about being a great organization?
  • How many of your values are about being great people?

At most companies, values tend to skew slightly toward the “great people” side. Honesty. Integrity. Fairness. Passion. Equality. Leadership. Empathy.

Any of those on your list? Probably.

So how do you want customers to be thinking about your company? How are you projecting your “values” in a way that would make a customer be more loyal? Especially following a service interaction, in which they are likely at the greatest risk of disloyalty if it goes poorly.

What “values” should you be portraying in the way you interact with customers?

In a digital-first world, even during digital interactions that are completely automated – the experience should still feel “human.” That doesn't mean chipper, cheerful, and friendly (no customer is going to buy it when a bot tries to fake being “bubbly”). But the experience should feel like it is empowering to customers, it should make them feel that they are in charge, and that your goal as a company (that they chose to do business with) is to make it easier for them to become more digitally self-sufficient.

As a solutions architect working in a DCS environment, Mark Coleman of Members 1st says he's proud of the fact that his company is a technology leader in their space, because of the human experience it creates:

So, I think the approach that we have – connecting people with people – allows them to understand that it's more than just technology. It is more, there's people behind this. There's people behind everything. It's not just the machines building the system, the code, the interactions. At some point there is a person involved and trying to get that one person on our side as close as we can to the one person on the other side through digital means is the goal for how we want people to see us.

For your company to achieve competitive success in the months and years ahead, now is the time for you to use your creativity and expertise to influence the three most critical factors in any transformation:

  • Process
  • People
  • Positioning

We hope that what we've shared in this final section – and throughout the chapters of this book – will give you the greatest possible head start in the direction of a successful and rewarding digital transformation.

KEY TAKEAWAYS: CHAPTER 7

  • The screen is the center of the universe. People of all ages now live on their screens. Whether you like it or not, whether it's better for society or not – that's just the way we've evolved. Companies need to do the same. The customer's screen needs to become the single focal point for all interactions. It's a 6 × 3 world.
  • The “digital disadvantage” can be overcome. For “traditional” companies, the pressure to create an experience that competes with companies like Amazon and Zappos seemed insurmountable. That is no longer true. Transforming to DCS is being accomplished by companies of all sizes, even smaller organizations that have served their local regions for the past century.
  • DCS is the last best hope for differentiation. In a commoditized industry or segment, creating a truly different customer experience is often the best way to create separation between you and your competitors. An effortless, seamless, personalized DCS service experience feels different at an emotional level. For many customers it is more self-affirming, which promotes greater long-term loyalty.

NOTES

  1. 1.   Daniel C. Schlenoff, “The Motor Vehicle, 1917,” Scientific American (January 1, 2017), https://www.scientificamerican.com/article/the-motor-vehicle-1917-slide-show/.
  2. 2.   Aaron Smith, “Record Shares of Americans Now Own Smart Phones, Have Home Broadband,” Pew Research Center (January 12, 2017), https://www.pewresearch.org/fact-tank/2017/01/12/evolution-of-technology/ (accessed March 29, 2021).
  3. 3.   Matthew Dixon, Nick Toman, Rick Delisi, The Effortless Experience: Conquering the New Battleground for Customer Loyalty (New York: Penguin Group, 2013).
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