dominos digital strategy innovation cx bold move

CX Bold Moves: Domino’s Making the Right CX Choices

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

Domino’s Pizza made two CX bold moves – changing a nearly half-century old recipe and committing to digital innovation. These moves are translating into more sales and more engaged customers.

The pizza giant is placing a big bet on digital and customer experience and following through with a strategic execution. 50% of Domino’s orders are digital and two thirds of them are through mobile devices. Achieving such a meaningful channel shift is not easy (or cheap). The payoff – increased sales and revenue – makes it worthwhile. Last year Domino’s CEO Patrick Doyle told CNBC the strategy is not demonstrating impactful cost savings, but improved customer experience is driving sales up.

Thinking Beyond the Phone

Domino’s incorporated Alexa and Goggle Home as ordering channels. The in-home connected devices are a significant part of the Domino’s voice strategy to create customer experiences that drive sales. Similar to JetBlue, Domino’s believes that future customer interactions with brands will be completely digital and not tied to devices like phones. JetBlue’s facial recognition product does not require customers to have any paper, or a phone, to board a plane. Similarly, Domino’s is building the ability to order pizza using only your voice.

Going Outside the Home

After listening to customers say they want to get pizza delivery on the beach or at a game, Domino’s announced its plan to deliver pizza anywhere their customers are. The brand took a customer need and built a product around it – a smart CX move executed in a bold way.

Dennis Maloney, Domino’s CTO, stated that this product is not a case of discovering new technology. Rather, it is an example of a new use of existing technology – this is exactly how we define innovation! Of course, there are caveats around the current version of the product. The delivery spots are pre-defined and not available everywhere. But that is not really the point. The point is that Domino’s stock has gone up 5000% since 2008 based on a new recipe and this kind of digital transformation. The brand put the customer’s needs and desires at the center of its product design and it is winning, big time. It is a great CX story to move from a tweet like “worst pizza I’ve ever had” to ordering pizza on Twitter using just the pizza emoji.

Making Hard Choices

Delivering an item to customers where and when they want it satisfies a standard customer experience need, but it is complex to accomplish. Brands like Amazon and Zappos grew their customer bases on that basic offering alone. But Domino’s is not just perfecting delivery with this strategy. The brand showed the strength to throw away a 49-year-old recipe. Many brands can’t manage to make a transformation like that, and suffer the consequences (see ToysRUs and so many others). In Shift Ahead, Allen Adamson talks about how National Geographic magazine died from its refusal to acknowledge the digital trend and shift to other channels. The book also covers Playboy’s inability to reinvent when times changed. Both brands did not move fast enough and fell into oblivion.

Domino’s shifted. Domino’s made the big bet on CX. For those of us working in customer experience, this is an impressive – and inspiring – move from strategy to execution. Building hot spots and a customer journey around those hot spots is neither easy nor cheap. If it pays off, Domino’s will have created an entirely new customer segment that does not exist today.

Now that is genius. Creating a new product, and a new industry/business segment? We’re witnessing the ultimate shift to the future.

 

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

CX Bold Moves Cadillac DoingCXRight

CX Bold Moves: Cadillac Scores Millennial Customers with Future-Forward Thinking

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.
The automotive industry is right next to the airline industry in terms of innovation and keeping up with the pace of technology growth. Surprisingly, both are extremely slow to keep up with the new world when it comes to customer experience. Just last week this tweet popped up in my feed:

This tweet sums it all up. If you ask me, the gate of the future should not have any printer at all. We need to change the way we think about customer experience.

A month ago, I was walking home with my husband in New York and we passed through the car dealership part of Manhattan. Look at the 2018 displays today on 11th Avenue! They are pretty much the same, regardless of brand. All have plastic mannequins… I am not sure who is the target of this advertising technique. One thing is certain –  nobody born after 1980 will be converted to a customer because of it.

In the last six months, I am sure we all have at least one friend or acquaintance who has complained about the painful car buying experience. An entire industry emerged in response – companies like Shift and Carvana are the result of the notoriously bad customer experience of buying a car.

Just when I had given up on the car industry, I met the Head of Marketing and Member Services of Book by Cadillac. An innovative way of owning a vehicle, Book by Cadillac is a subscription service for luxury fleet vehicles that members can rent and swap for a month or a week. For $1,500 a month, a concierge delivers a vehicle directly to the member. The car arrives with the member’s favorite radio station tuned in and the seat in position. If the member informs the Cadillac team they are headed out of town for the weekend, they will find a picnic basket in the trunk.  Members feel a sense of freedom and convenience. Gone are the daily worries about car maintenance and insurance. Gone is the stress of owning a car. All of that is replaced with the feeling of being cared for by the car company.

Book by Cadillac is as much a great customer experience case as it is a strategic business case. A few years ago, Cadillac realized that its customer does not necessarily live in  Detroit but is more likely to live on a coast, so they moved the brand headquarters to New York. Second, the car manufacturer discovered that Millennials were not buying Cadillacs. To solve for that, the brand created Book by Cadillac, a product focused on experience vs. material product – a product that gives customers options and freedom. The strategy worked! The average age of the Book by Cadillac customer is 40 vs the overall Cadillac customer’s age of 60.

Customer experience strategy, when applied correctly, works very well. When a brand puts the customer at the center of its design and business, new customers do come. Cadillac is living proof that shifting your business model at the right time means shifting your business to the future. Take a risk and it will pay off. Follow the customer and the customer will lead you to the future!

If you like this article, please share with others so they can benefit. Sign Up for our newsletter to continue learning how to increase your skills and transform your organization! When you register now, you will get free access to our whitepaper on how to go from CX Novice to CX Expert

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

CX Bold Moves: New York Times Beats Google

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

One of the most disrupted industries in the last 10 years is the newspaper media. Newspapers have always had a certain sophistication, history, and nostalgia associated with them. This makes it particularly hard to observe their disappearance. Of the newspaper industry’s most recognizable brands, the New York Times is one that brings an additional layer of style that makes so many of us never want to let go.

At the same time, even I, a New York Times devotee, have to admit that my interaction with the famous brand has changed. While I used to subscribe to the New York Times in 2009 and 2010, today I am a digital subscriber. Although I love the idea of the newspaper, even I stopped buying it. Although I married a man who reads the New York Times (it was one of the requirements), I am not reading the digital subscription nearly as often as I used to read the paper itself, in college.

Because of my personal affinity with the paper, I was even more happy to read that the Times’ overall digital business is growing faster than Google and that the annual growth of new online subscriptions is averaging 46% since 2011.

Now that is a noteworthy shift that not many “old school” and “traditional” businesses are able to execute.

How was the Times able to do this? By being bold and building a strategy in 2015 that they are executing flawlessly today. The Times did not wait to fade into oblivion before it chose to re-channel itself. Since April 24th, 2017, the news outlet added the millennial channel to their portfolio by joining Discover on Snapchat. This shift is arguably the most digital signaling a news brand can give to tell its customers, “I am where you are. I have not changed my core value proposition of reliable, credible news delivery. I have just adapted to the times (no pun intended) and I am doing it in a different way.”

For a brand to do what The New York Times is doing it needs courageous leaders. It needs leaders who are able to know exactly what they are selling and who are able to recognize, in time, that their customer has changed. The New York Times has earned its position in our CX Bold Moves Series for doing all of this and not having an identity crisis.

We see brands in such crisis every day. Brands that are holding on to the image of their past customer or who are so afraid of change that they say they are investing in a digital transformation, but all they do is hire a Digital Transformation Director with no support infrastructure around the role.

46% average annual growth only happens when an organization is focused on that goal and when leadership and funding are appropriately allocated to this big, bold, transformational move. The New York Times clearly has that focus and courage. Do you?

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

eBay

CX Bold Moves: eBay’s Vibrant Marketplace of the Future

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

Two years ago RJ Pittman and eBay made a big bet and made AI (artificial intelligence) a core discipline of the company, similar to brand marketing and sales. The organization was able to focus and build upon existing technologies to create a truly personalized experience on eBay. This is the definition of a big bet, and the reason why eBay is part of our AI (Artificial Intelligence) series.

In the retail world of RJ Pittman, the conversational commerce does more than assist us in buying an outfit, it uses predictive analytics and AI to design the outfit if it does not exist anywhere in the world.  Now that is the ultimate personal relationship any brand can have with a customer. Once eBay is able to consistently deliver this value proposition to the customer and to scale it for the 3Bn online users today, Amazon will finally have a match – and become less ubiquitous.

How did eBay get here?

“Don’t start from the tech, start from the experience and start with transformative experiences that your customers will feel…” is how RJ Pittman summed up his approach at the Forrester conference in San Francisco this fall.  eBay is an excellent case study of a brand that followed the principles for self-service that we laid out last week – the brand will enable the customer of the future to post and sell any item without any effort or friction. Through computer vision, deep science looking at images, real time pricing, conversational commerce with interactions, and a world price guide, eBay is building an AI-enabled ecosystem that will have the power to create many real personalized experiences for all of us.

What about the eBay brand?

“The brand is the product is the brand” are the words of RJ Pittman that sum up the future of marketing. Today marketing is less about ad campaigns and more about a brand’s products and the customer experience that accompanies them. This year JetBlue achieved $33M of ad spend equivalency with its launch of facial recognition technology at the gate. This is much more brand exposure than an ad campaign. Without the existing social media and mobile technologies, that would have been impossible. But in the world in which we live, the brand is more about keeping and living the promises you have made as an organization and less about what those promises are.

This is an important note of caution for all those who have brand marketing and customer experience under two different executives. How are you ensuring that there is a real alignment between those two legs of your customer relationship?

What did eBay really do?

eBay applied technology to build a dream no one has imagined yet. The innovative brand did not merely optimize its responsive website (some of us actually even call responsive design digital revolution:( ), it invested heavily in a conversational commerce that will define how customers purchase in the future.

This disruptive strategy is not a science project. It is the birth/built of a vibrant marketplace of the future. Rik Reppe said on stage in San Francisco that courage, flexibility and imagination will make or break our efforts with AI. Listening to RJ Pittman it felt like he has all three of them. Do you?

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

CX Bold Moves: Uber Bets On Self-Driving Cars With Big Volvo Purchase

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

For anyone brave enough to imagine the future it is clear that autonomous vehicles are coming and that the flying cars taxi chase of The Fifth Element will be a reality soon after. The question that remains unanswered is who will be part of the future of transportation. More and more players are claiming a stake in the multibillion market place, but like any innovation the odds of winning are 50%/50% until the industry gets mature enough for us to even see what it will be. So who are you betting on? Uber? Lyft? Yourself?

The Uber bet

Uber is going for the vertical integration – the whole pie. The future industry of urban transportation will be made of players in three different categories: cars, self-driving software, and ride-sharing network. With the #UberVolvo deal Uber made a stake in the cars part of the equation. They already have the ride sharing network and the in house research and development of self-driving software.

Every company struggles with the right balance of internal development vs. partnerships. There are pros and cons of either approach. The factors in the final decision are costs of maintaining the technology (capital vs. operating), level of customization available (much harder when the technology is built by a partner) and speed to market (depending on the staffing level of the internal teams the speed can be faster or slower if the R&D is internally driven). Uber is betting on taking all the risk and owning all parts of the autonomous vehicle ecosystem.

The Lyft bet

In contrast, Lyft approaches the future through partnerships. Their vision improving lives with the world’s best transportation inspires the creation of cities for people, not cars. In the last two years they have formed multiple partnerships with various small and big players in the new tech space. The choice of partners: Waymo, nuTonomy, Drive.ai (self-driving software) and the large direct investment by GM (cars), proves that Lyft plans to be an integral part of the autonomous vehicle solution (ride-sharing network), but not the whole technology stack.

Their strategy is much more tactical in nature. Lyft does not need to build the whole future of urban transportation. It suffices to be the bolt without which the system will not function. The success of this approach is founded on successful partnerships and is collaborative in nature.

The George Hotz belt

And if you still want to own a car in the future, the self-driving platform Openpilot and the Neo device may be the way to go. The Neo will transform your Honda or Acura into an autonomous vehicle that you can control with Openpilot. George Hotz’s company Comma.ai has activated users to share driving data to perfect the self-driving algorithms for the future by learning from drivers today. In his opinion “Self-driving cars need nothing but engineers in order to solve it.”

The approach to autonomous vehicles of Lyft is more congruent with the sharing nature of the future economy. Sharing is rooted in partnering and collaborating with others. The future generations are less likely to associate themselves with a conglomerate that monopolized the market space. It looks like Lyft, although a smaller player, does have the more sustainable strategy to autonomous vehicles. Then again, we are missing a big piece of the puzzle. We really do not know how the government will play in this space and if it will come up with regulatory obstacles that require a lot of funding to overcome.

Smart brands put equal time and energy in building partnerships with the government agencies. So far Uber is behind on that front too. Both Uber and Lyft are making bold moves in the autonomous vehicles space. The question is, who has the winning strategy?

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

 

 

self-boarding with facial recognition at a JetBlue gate.

CX Bold Moves: JetBlue Paperless And Deviceless Boarding

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

This year JetBlue entered the ranks of the innovators who disrupt industries and not only imagine the future, but also build it. With our award winning facial recognition boarding technology we were able to provide a preview to our customers of what traveling will be in the future. The fact that JetBlue’s facial recognition trial was named as one of the 100 greatest innovations of 2017 by Popular Science was one of the many signs we received about the excitement of the public about innovation in the airline space. JetBlue realized that our customers are not only ready, but also eager to step into a world of  new experiences that are personal, helpful, and simple.

So why is it so hard to eliminate the friction points on the travel journey and enable repeatable, intuitive, and empathetic experiences when we fly?

Variability is almost impossible to manage

In the book “Uncommon Service” Frances Frei and Anne Morriss lay a whole customer management process for successful brands. They present several examples of Progressive Insurance and Shouldice Hospital where through different processes these organizations are able to select the right customers for the experiences they have built. Airlines cannot do that. We cannot choose who we fly. Since the industry is driven by small margins, every customer flown counts. JetBlue’s mission bring humanity back in the air travel is driving us to welcome on board anybody who would like to fly us. And we consistently design all our product and experiences with that in mind!

Integrated experiences are based on integrated technologies

The future of flying is here only if we are able to integrate virtual reality and other technologies in a meaningful way that adds value. In JetBlue we are collaborating with JetBlue Technology Ventures and Strivr to test VR for training of our maintenance crewmembers.  The technology is more advanced in helping with decision making and not necessarily recreating the feeling of loading bags under the plane. For those immersive experiences the integration, build and scaling of the experiences is much more complex. Integrated and intuitive experiences are not hard to imagine, they are very complex to create and personalize.

Somebody has to pay for it

The moment we begin scaling and implementing customer journeys that use technologies of the future, we have to build the business case and its ROI. CFOs see customer experience design projects as process effectiveness work that increases output of existing infrastructure. Customer experience is much more than that of course, but knowing your audience is half the battle. Regardless if you agree with finance or no, you need the funding they hold. If you list the funding and maintenance requirements for a VR or a biometric solution very quickly you will see that to extract value from future technologies, you also need other future technologies to be cheaper. We all depend on a faster network (5G, 8G, 10G?) and even cheaper storage (cloud that is free to maintain and does not hit your operating expense every year?). Until that happens we probably will trial more and scale less.

We all share the excitement for the possibilities that new technologies like facial recognition and VR bring to us today. Some of us even venture to realize and share those possibilities with our customers. Customers have the power to add and co-design their experiences, which is really exciting too. In JetBlue we  used facial recognition boarding  to lead the industry. Our innovation was embraced by our customers and that is why we all won at the end!

# biometrics #facial recognition #VR #disruption # customer experience # game changer #NY Times #JetBlue

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

cx bold moves customer experience news t-mobile replaces remote workforce

CX Bold Moves: Mobile Provider Eliminates Remote Workforce

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

When it comes to customer support we all want the same things. We measure the efficiency metrics FCR (first call resolution), average wait time and talk time. We train our contact center agents to be personal and helpful.  Some of us even build incentives around goals for ancillary sales. When it comes to delivering on those KPIs right, customer experience managers have a lot in common. None of us has figured out how to deliver on all metrics. We are happy if we get one of them right!

Making Customers Feel Good when They Call

At JetBlue, our contact center is our heart. Our Contact Center crewmembers live the company’s mission to inspire humanity. If you want to feel what JetBlue is about, dial 1800 JetBlue where the customer experience is driven by empathy and understanding. And that is before we even train our crewmembers on our hospitality standards (that will happen in a few months as planned on the rollout roadmap).

JetBlue further empowers those crewmembers to be BlueHeros – to act as citizens, protect the JetBlue brand, and do the right thing for the customer when things go wrong. This is how we approach contact center management.

Loyalty that’s Worth the Wait

T-Mobile, self-described “Un-Carrier” is taking on a different approach. Two weeks ago at the Forrester conference in San Francisco, Sid Bothra shared the brand’s new strategy of call centers management. Instead of having frontline agents work from home, T-Mobile launched mini-call center “pods” of approximately 50 people each that cover specific geography and have cross-functional agents. Those groups are managed as P&L centers, not only as cost centers.

This is a completely new and risky approach that maximizes FCR at the expense of wait and talk times. Yes, in the new world, customer calls will not be transferred a second (or third) time. With this design, the agent who knows data sits next to the network specialist and the international calls expert. The agent’s efficiency loss, however, will be substantial and impact both wait and call times.

The results Sid Bothra shared were inspiring. As expected, customers now wait 2x longer (from 40 seconds to 1m-1.3m), but NPS went up by 50% and employee retention increased by 75%. In addition, customer share of the wallet also increased because now, callers are more open to buying ancillary products.

Sid Bothra’s plan is a great example of thinking outside of the box and challenging the norm. Very few traditional call center leaders would agree with this new approach.  In the long run, though, giving employees a sense of ownership of the business is the best way to inspire excellent service and care. It sounds like T-Mobile has found one way to do just that. It is one thing to feel like a cost, a burden to a business. It is another thing to feel empowered to earn money for your company and manage profits for your investors.

Recalibrating Goals

There is a third view on call centers that contradicts both JetBlue’s strategy and T-Mobile’s. Matthew Dixon in his book states that “any customer service interaction is four times more likely to drive disloyalty than to drive loyalty.”  Dixon argues that our efforts to make customers happy when they reach out to our contact centers is not the right approach because at the point of the call, we have lost their loyalty.  Dixon recalibrates the goal of customer service to mitigate that negative impact by reducing effort because reducing effort is more tangible to the customer and more sustainable to organizations than our current work to delight our callers.

Regardless of the approach, you decide to take with your call center management, I urge you to be disruptive, even to yourself, and not to look at the traditional models. Technology advancements are adding more tools to our toolboxes and the new workforce is looking for more meaning and impact in any job. T-Mobile has addressed both opportunities in a creative and innovative way that has potential to differentiate them in the future.

That could be you!

If you like this article, please share with others so they can benefit. Sign Up for our newsletter to continue learning how to increase your skills and transform your organization! When you register now, you will get free access to our whitepaper on how to go from CX Novice to CX Expert

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

CX Bold Moves: Starbucks Bets On The Physical Experience

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

This month Starbucks closed its online store.  In April of this year Executive Chairman and former CEO Howard Schultz took a stand in front of his investors:  “Your product and services, for the most part, cannot be available online and cannot be available on Amazon.” In a time when brands are investing in omni-channel experience, Starbucks makes the bold move to close the foundational web channel and focus on the in-person experience.

How big is the risk Starbucks is taking of losing loyal customers who buy merchandise online? Companies like Ryanair and IndiGo designed check- in for flights primarily on their apps and their customers adapted accordingly.  Over time, customer behavior follows the design put in front of them.  Yes, some Starbucks customers will miss their pumpkin spice syrup. The loss of their loyalty though will free capital for Starbucks to create an even more seamless app experience and re-imagine its physical spaces. That sounds like a great trade off in the long run!

This is not the first bold move Starbucks has taken. In 2011 the brand dropped the name Starbucks and the word coffee from its logo.  Around the same time the company began testing its “evening program” and expanded its product offering to include wine and beer in select locations.  With those tactical moves the brand strategy emerged – Starbucks was trying to reposition itself as a lifestyle brand. In January 2017 we heard the last call on the alcohol idea. With the closing of the online store it is clear that the brand is on to the next approach toward the goal of lifestyle brand presence. Will the brand be successful this time?

Smart brands make bold decisions to drive the customer where they want him/her to be. The only way to drive customers to a desired channel is to take away their choices. As long as the choice is available, customers will make it.   It is clear that Howard Schultz wants us to be in his stores. But unless he gives us an immersive experiences with cleverly designed space we might not stay there long.

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.