#CXTHUS Exchange Insights – winners and losers?
Attending conferences is a significant investment of both time and money. Even if you are speaker at the conference, like I was last week, the time away from your non-stop email flow can bring more stress than pleasure to your days. Once we reach a certain level of responsibilities, learning becomes a luxury. The key for all of us is not to let those other demands on our time stop us: there is no professional growth without learning from the successes and failures of our peers. Events like the CX Exchange Travel & Hospitality Conference make us more aware of what is going on in our industry and adjacent industries. They help us to better shift our own organizations ahead of our time.
So what did I learn from my peers at the conference?
A good expansion strategy may or may not work
TripAdvisor, the travel website that “enables travelers to unleash the full potential of every trip” reached 60% of all people who booked their travel online in the second half of 2017. TripAdvisor had a great strategy in mind – allow users to complete purchase without going to the hotel websites. Unfortunately, that strategy did not work. We are talking about this conference takeaway first, because we often overshare successes and do not talk enough about business failures. We can learn even more from our peers’ unsuccessful programs.
Conference speaker, Matthew Mamet, did not delve into exactly what went wrong at TripAdvisor, other than to explain that the hotels did not make it worthwhile to keep on TripAdvisor. You can imagine how long it took to build and launch this e-commerce experience on the travel site. Did somebody put the wrong assumptions in the financial model or did the contract with the hotels lack the proper incentives for commission? Regardless of the reason, sometimes things don’t work as planned. The best thing to do is move on and pivot as fast as possible. That is exactly what TripAdvisor is doing right now. An estimated 1 in 11 worldwide users visited TripAdvisor last July. I would not worry too much about the company. I am sure they will find another way to monetize such a powerful position.
Uber really gets it. All of it.
When Uber achieved 20% growth per month for 43 consecutive months, the company had to start from scratch with all of their processes and procedures. The innovator did not simply scale what it had (something many brands do). Instead, Uber used new technologies to reinvent itself. Uber uses machine learning to flag voice and text messages that over-index on negative sentiment, so they can pay attention to those messages and respond to them faster (read more about how Uber does this). The rideshare company uses the same technology to intercept customer care cases that are forwarded among many agents and do not fit a particular category (the ping-pong effect). Those cases are re-routed to a specialized team to handle. The AI technology also allows Uber to find a needle in a hay stack – the extreme cases in which something really bad happens to the customer. The algorithm looks for specific words early in the customer support message. When those words are there, the complaint is sent to a special care team.
COTA is the Uber in-house platform for digital agent assist that already has saved the company 9.5% – 10% of costs. Uber also does something very few brands do well. The company has a living document, a playbook. When they do something, they actually document it so other sites can replicate it. Not earth shattering in concept, but none of us does it! An important takeaway for Uber (and many of us) is that the saying about self-service – “build it and they will come” – is not working. Much more needs to be done in order to increase adoption of self-service. Many people underestimate the amount of effort and design required AFTER you launch something. Last, but definitely not least, Uber has already realized that the human agent of the future will have a completely new profile. He/she will have new skills, will come from different backgrounds and geographies, and will be paid much more. Uber’s estimate goes as high as 20% – 40% more pay. How do you fund that? With the savings from the digital agents that will be solving basic customer problems.
Before you read any further, watch MGM’s Welcome to the #SHOW ad – and pump up the sound. You will not be bored. I promise.
After the 2008 financial crisis, MGM had to find a new identity for the organization. “Welcome to the Show” is a story about the integration of 27 independent brands and the rebuilding of a company culture on the core belief that entertainment is a fundamental human need. To achieve that, MGM incentivized their executive leadership (through bonus and compensation) to travel around the world and become employee trainers on new service level standards. They made the MGM employees heroes and gave them a stage where to run their own shows. The brand is a year into this transformation so it is hard to prove results. One thing is certain though – MGM still strong and employee engagement scores are up. One lesson from MGM – stay longer at the local level when you think you are done, to ensure sustainability and reinforcement of standards. This is probably the hardest part of any hospitality program, especially with 27 resort destinations and 15 brands.
Hertz will not be in business by 2025
This may sound like an extreme prediction, but it is fairly obvious. One of the items covered at the conference was the need “to operationalize their loyalty program in the field.” What does that say to you? To me it says, our loyalty program is not working. The speaker talked about the realization that Hertz is not in the transportation business, but in the customer service industry. The conversation then became more about Hertz’s “concierge” program making “wow” experiences. I hope they have many loyalty members since it seems all efforts are channeled to those customers only.
The most alarming part was the Q&A during which the speaker said that the rideshare industry is NOT a threat to Hertz’s business. This is a classic case of not seeing the red flags as Allen Adamson writes in his great book Shift Ahead. Unless Hertz learns the importance of recognizing and acting fast on new business trends and shifts ahead soon, it will not exist in ten years.
Lessons from the CX Exchange Travel & Hospitality Conference abound. We are all returning to our offices ready to put into action what we have learned from the successes and failures of our CX colleagues.
The recording of my speaking engagement at the CX Exchange Travel & Hospitality Conference will be available for our readers on our Speaking Page. Last, but not least, my favorite quote of the conference: “Do not confuse activity with results.”
Get Better Results for Your Customer Experience Strategies
Become a Member of The Petrova Experience.
Autonomous Customers, Traveler Privacy and More Questions for CX Professionals in a Changing World
“As we move toward a more automated culture, most travelers will adapt to a Jetsonian, automated lifestyle. Every industry we know will be disrupted. For those of us in aviation,…
Poor Integration is Bad for Customers and Worse for Brands
Although we all have bad customer experiences, there is still a big debate about “the CX field” and whether it will survive the test of time. There is no doubt…
Customer Experience View of your Call Center Technology
By 2022 the global cloud based contact center market is growing from USD 6.8Bn in 2017 to 20.93Bn in 2022. This makes for CAGR of 25.2%. If you do not…
The One CX Goal You Need to Set for 2019
For 2019, I urge you to make only one CX goal – bring about business success with your customer experience work. Don’t just do work in the general sense. Rather, set a CX goal that has a real impact on your customers and their experiences with your brand.
Hospitality and Why We lack Seamless Travel Experiences
Hospitality is taken for granted across government agencies, airlines and hotels. In my line of work, I often hear “I want to have the JetBlue customer experience.” Although many claim…
Our Holiday Wishes for Great CX
Every successful customer experience initiative starts with a skilled CX team. Brush up on your CX skills to strengthen the business case for CX; to develop relationships within your organization; and to deliver standout customer experiences in the new year.
Customer Experience Audit: eBay’s Vibrant Marketplace of the Future
Editor’s Note: This post is part of a series of Customer Experience Audits. See all audit stories. Two years ago RJ Pittman and eBay made a big bet and made…
Culture Is King – The Power Of Employee Engagement
In 2017 we introduced our ROI series recognizing the challenges all customer experience professionals have to obtain funding for CX initiatives and to prove their positive returns. Our second ROI…
Why You Need Culture Not Call Center Training for Customer-Centric CX
If the organization does not understand what customer experience is, you will not get the funding or organizational support you need to build customer-centric experiences.
Are You Ready to Go Exclusive with Jane, Your Digital Concierge?
In 2015 JetBlue introduced bag fees. Seven years after the competition. The media exploded. Many publications were negative. They blamed the airline for “selling out.” One headline read “A New…
Customer Experience Audit: FedEx Omnichannel Disaster
In our Strategy, Org Design & Culture series we cover customer-focused companies that are willing to adapt, take risks and discover new ways of staying relevant. Sometimes, we encounter brands…
CX Skills Builders: You May Have a CX Job and Not Know It
Last week we talked about the identity crisis of CX professionals and we urged you to fix any small problem or seam on the customer journey in order to build internal brand equity and buy in.
Why Customers Are Not Responding to Your Customer Experience Survey
When you solicit customer feedback sometimes matters more than how you ask the questions. In the case of a survey about new biometrics boarding initiatives my team and I created for JetBlue, we had a list of feedback that was most important for us.
Customer Experience Audit: New York Times Beats Google
Editor’s Note: This post is part of a series of Customer Experience Audits. In this series we walk you through customer experience examples across industries. We feature brands that made…
CX Design Makes Form and Function Beautiful – and Cosmopolitan Magazine Notices
At its core, design is about value creation. In the world of Customer Experience, value-driven design requires CX professionals to use empathy to imagine a future customer experience that is…
Customer Experience Design – Make the Customer Know Who You Are
Now that we have helped you become experts in the design of space and function and the design of feelings, it is time to turn our attention to aesthetics, and to connect customer experience…
Hiring Tips: Who Should I Hire First on My CX Team
The pressure to demonstrate business impact and ROI on your Customer Experience initiatives quickly makes your first hire even more important. As usual, there is no answer that fits all scenarios perfectly. We have some helpful strategies to consider based on the structure of your organization and your goals.
How to talk to your CFO about customer experience and revenue growth
Last month we introduced the topic of Customer Experience ROI and the complexity of building a good business case for it. The Customer Experience business case is strong, but not easy to prove. Today we will focus on two big wins of a successful customer experience investment – revenue and customer growth of your business.
Create Your Tribe: How Great CX Makes a Lifestyle Brand
Newcomers to the market realize that their business is only as strong as the growth of their customer base. With that in mind, senior leaders work hard to shorten the distance between them and the customer.
How Not to Leave Customers Stranded on the Busiest Travel Day of the Year
Meet Diane. She is traveling with her 2 year old and 5 year old to her in-laws’ house for Thanksgiving. This is the one annual trip she has to take….
Customer Experience Audit: Cadillac Scores Millennial Customers with Future-Forward Thinking
Editor’s Note: This post is part of a series of Customer Experience Audits. See all the audit stories. The automotive industry is right next to the airline industry in terms…
From Pain Points to Magical Moments: Transform the Customer Experience
Argyle Journal interviewed Liliana Petrova about emerging self service technology and meeting and exceeding customer expectations in airports. In the below recording Liliana explains how JetBlue addresses the pain points…
How a Personal Interaction builds Customer Loyalty
A customer-centric methodology is key to the successful outcome of my interaction with Hello Spud. It is the reason this story appears here, and not among the CX Big Fails! The company did not send an automated response. It did not deliver a message stating “sorry we couldn’t help you, would you like something else.” Instead, the company co-founder reached out to me personally across multiple channels (a handwritten note, followed by personal emails).
Customer Experience Audit: Starbucks Bets On The Physical Experience
Starbucks is opting in for the physical experience in order to become a lifestyle brand while other brands are investing in omni-channel experience.
Customer Experience Tips and Best Practices In 2017?
In Post 2 of Liliana Petrova’s series on customer experience tips, lessons learned, and best practices for the new year on JetBlue, she explores the importance of “keeping the human…
Customer Experience Lessons for Freelancers: To Grow Your Client Base, Add Your Personal Touch
For small businesses and freelancers alike, it’s important to recognize that your business is as strong as the relationships you build with your customers. We can learn a lot about…
Do You Know Why The Iconic Brand Toys ‘R’ Us Closed Doors Despite All Our Memories? #RetailBlues
The year is 2016. You are the CEO of Toys ‘R’ Us. Your brand still controls 13.6% of the toy market although the company is highly leveraged, a strategy of…
Customer Experience Design – How Do You Want Customers To Feel?
Last week, we talked about CX Design in terms of space and function. Today, we continue our CX design journey to talk about the design of emotions and feelings. The new…
Employee Experience and Customer Experience Depend on Strategy
This week, Andy Newman wrote a great article in The New York Times about the life of a retail sales agent. He used the example of an Old Navy sales…
WeWork Does CX Right with a Wow Moment
Used at the right time and place along the customer’s journey, the Wow Moment is an excellent retention technique. When a brand creates personal, relevant experience at exactly the right time, it can build a lifelong, loyal customer relationship.
Would You Pitch In To Save Toys “R” Us For Your Children To Experience? #ToysRUsGoFundMe
Last week we laid out the big moves that the leadership of Toys ‘R’ Us failed to take to evolve with customer needs. This week, billionaire Isaac Larian set up a GoFundMe…
Why you need a defined culture to do CX right?
When designed and built correctly, customer experience expresses an organization’s brand. Your brand and marketing promises serve as a guiding light to your experience team. Similarly, organizational culture serves as a goalpost for the service side of customer experience.
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 CX Bold Moves stories. This year JetBlue entered the ranks of the innovators who…
Get Customer Experience Basics Right and You Don’t Need to Invest in Wow Moments
Wow Moments are a Customer Experience hot topic. Customer experience professionals ideate how to build, prioritize, finance, and measure these Wow Moments. Chip and Dan Heath wrote a whole book on the topic: The Power of Moments. No Wow Moment saves you from negative word of mouth if your brand fails to get the customer experience basics right or to deliver the expected brand experience consistently.
How To Define Your Purpose And Have Unique Culture
If you Google the word “purpose” you get the definition “the reason for which something exists.” This is a challenge if you think about it in the context of an…
Why Customer Retention is the True Measure of SaaS Success
Guest Post by Callie Reynolds In SaaS (Software as a Service), like in most businesses, sales is king. Sales gets the glory, and while I’d like to say this has…
Customer Experience Audit: Uber Bets On Self-Driving Cars With Big Volvo Purchase
The question that remains unanswered is who will be part of the future of transportation. 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. In contrast, Lyft approaches the future through partnerships.
The Importance of Wellness In The Workplace: Guest Post
Today, The Petrova Experience brings you a guest article by Natlie DeVito of Commonwealth Joe. Commonwealth Joe is an innovative company, new to the New York City market, that offers…
Coronavirus Isn’t The Only Thing Killing the Aviation Industry
Eighteen years ago, September 11th caused a three-day halt of the US commercial airlines and resulted in a 31.6% reduction in travel in September 2001 compared to the previous year….
Why BtoB Businesses Need to Think Like BtoC in the Next Decade
According to Gartner at least 80% of BtoB buyers now expect the same buying experience as BtoC customers in 2019. Gone are the days when BtoB organizations did not need…
Is Covid19 What We Needed to Build Seamless End-to-End Travel Experience?
On January 10th, we published an article called The Future of Travel We Deserve. In it, we laid out the foundation necessary to implement innovation at scale. Four months later,…
United CEO does not care about #customers happiness. Really?
Lately, I have been thinking about United Airlines. In the beginning I was thinking about them, because I was asked if it is possible to build a customer-centric culture in…
3 Ways to Get Started Creating Better Employee Experience
Guest Post by Gabe Smith, CCXP The relationship between employee experience and customer experience has long been discussed. Without engaged employees, we’re told, it’s difficult to create great experiences for…
4 Career Tips to obtain a Customer Experience Role
In honor of the 4th of July, we are rounding up 4 career tips for CX professionals. Set aside some time during the break from work to take stock in your CX career and evaluate the steps you need to get to the next level.
Culture Starts at the Top
Without a leader who believes that today’s business success is about acquiring and retaining customers, you cannot even begin the process of building a culture. Leaders who are passionate about the customer are also passionate about creating culture and employee engagement.
Customer Experience, Self Service, and the Gift of Time
Time is the most precious gift in life. If you think about it, time is the one thing we all want more of. As we get older and busier, time gets even more valuable to us.
Liliana Petrova Talks Patient Experience on Healthcare Podcast
Today we share with you a recent healthcare podcast we recorded with Stacey Richter. I was very excited to have the opportunity to discuss with her the similarities between the…