Nov 08 '19
Competing and Winning on MX with Dennis Campbell
Historically, the credit union sector has outperformed banks on customer and member satisfaction. To maintain this advantage, Filene hosted a research event focused on creating exceptional member experiences by redesigning organizations, looking at how credit unions operate, and how various internal teams and systems interact. The following soundbites are highlights from the live keynote during our event by Filene Fellow, Dr. Dennis Campbell of Harvard Business School, on his latest work around member experience and service excellence. Click the sound bar below to listen to the podcast in its entirety.
Three key ideas, two that are pretty stable and enduring and one that I think is relatively new and emerging. And the first two are this idea of focus and the related idea of customer compatibility. Focus in the sense of clarity in terms of what the experience should be, what the experience should be from the customer's perspective, and then clarity in terms of aligning your operations to deliver on that experience. That's the idea of focus. The second related idea is the idea of customer compatibility and the idea there is that it's very hard to serve multiple customer segments with one operating model, very hard to be all things to all people with one operating model.
How do we think about differentiating and creating great customer experiences in these sorts of channels? We think that one of the answers, is this idea of operational transparency, and that is the idea that, the work that's going on behind the scenes, the work that your employees are doing on behalf of customers is in many ways, invisible when people are interacting through these technology driven channels, how do we make that work actually transparent?
And so in general, right, the more incompatible customers we have, the more costs and the less performance we're going to have generally. The idea here, right, is that if we take this view compatibility as something that needs to be actively managed, and this is a difficult thing.
So the idea here decentralized means rather than you deciding who you will and won't serve, you are transparent, and you give information, and you empower customers to make their own decisions better, right? You empower them to make decisions and in effect, think about what I showed you with the idea that customers are boundedly rational. That they can't process all information, they learn slowly about service quality. This is about helping them learn faster. This is about giving them information so that they can make their own selection decisions. And so, one way to do this is what we call operational transparency. And the idea here is to be, communicate the value, create, and the trade-offs that are inherent in your model.
Long story short, this idea of operational transparency, we think is important because to the customer transparency can improve perceptions of value. Seeing the process leads to more perceived effort, better appreciation by the customer, more perceived value.