What a Customer Wants

10 new rules for the customer experience

October 2007 By Darcy Bevelacqua & Michele Fitzpatrick

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The customer rules. These three words seem simple enough at first glance. Yet look a little deeper, and they reflect the recent enormous changes in consumer behavior and technology that are forcing leading companies to bring their products, services and brands to market in a very different manner. They also underscore the tremendous burden placed on organizations and marketers as they embrace customer-centricity—the new paradigm in which the customer, not the product or brand, is the focus.

“The customer rules” also suggests a list of guiding ideas toward understanding just what customer-centricity truly means to a business and its customers, and how an organization might optimize all the necessary components—strategy, people, processes, technology and marketing—to achieve it.

There are (at least) 10 rules that indicate what today’s customers demand from the brands they buy and the stores they visit. And with them come 10 examples of companies and industries that already are embracing the new rules and reaping the rewards.



Rule #1: I want it my way. Not surprisingly, consumers everywhere have embraced Burger King’s famous tagline, “Have it your way,” and they increasingly expect the products and services they buy to meet their specifications—no pickles; make it in blue or green, not red; change the knobs. To build truly strong customer relationships, companies must consider how to enable and empower customization. For example, Scion lets consumers design their own cars straight from the company’s Web site. They can customize the interior, transmission, lights, spoiler, steering wheel, sound system, shifter, engine, clutch, mirrors and paint job—and pick up the vehicle at the dealer location of their choice. Scion even allows consumers to arrange for financing online.



Rule #2: I want the same service regardless of channel. Online, on the phone or in the store, customers expect equally high service and quality in every channel. And they expect communications that begin in one channel to flow seamlessly to another, such as Web to store, or catalog to Web. JCPenney is a high performer in this respect. It is one of a handful of retailers to make Internet access available across its 35,000 checkout registers, and it was one of the first companies to allow online shoppers to pick up and return their catalog and online orders in the store. Now customers can check which clothes are in stock at their local stores, a feature few, if any, apparel retailers offer. Not surprisingly, the Internet now accounts for 6 percent of the company’s sales, well exceeding its primary competitors.



Rule #3: Know me. Customers expect the companies they buy from to know them and what they want, and to use that information to deliver a better customer experience. Several airlines have taken the lead by offering premier airline status that enables loyal fliers to board first, access separate toll-free numbers for more rapid service and receive perks such as special meals and free upgrades. American Airlines has even created a women-only section on its Web site that allows women to connect with other female travelers, book flights and enjoy perks specifically designed for them.



Rule #4: Communicate relevant information. Customers don’t need more information; they need more relevant information. They expect the content, timing, channel and frequency of communications to reflect their needs and interests. Amazon.com performs exceptionally well in this area by tailoring site content, product recommendations and e-mail communications to reflect shopper preferences.



Rule #5: Listen to me. Companies must take customer feedback seriously. This means reviewing blogs on relevant topics, collecting data from customer service, performing ongoing market research and, wherever possible, asking customers for their input on everything from product design and development to marketing best practices. Frito-Lay recently garnered attention for its innovation in this area. The company regularly consults with consumers in online communities across diverse topics such as packaging, distribution and advertising, and uses the feedback to understand and improve how its brands fit customers’ lifestyles.



Rule #6: Make it easy for me to do business with you. For some organizations, this rule presents many challenges. For example, it may require round-the-clock staffing of stores or call centers, or sharing real-time data between online and offline channels. Somewhat simpler changes might include placing toll-free numbers for service in shipments to customers, or formatting invoices and monthly statements to make them easier to understand. L.L. Bean’s lifetime guarantee is a prime example of applying this rule. The company allows customers to return any item at any time, no questions asked.



Rule #7: Surprise and delight me. Customers love to receive something extra that makes them say “Wow!” Consider Infinity. The company’s dealerships always wash cars inside and out at every service appointment, and give their owners a free loaner car during scheduled service that is the same make and model of the car they currently drive.



Rule #8: Innovate and change. This needs to happen before sales or response numbers start trending down. Just because a firm has a good product or service now does not mean that customers still will consider it superior five years from now. Customers expect their preferred brands to keep up with the times and keep reinventing themselves, so innovations must be scheduled and delivered. Best Buy’s Geek Squad is an example of this kind of innovation—a new way of delivering service that resonates with customers.



Rule #9: Be reliable. Become a trusted resource. This rule goes to the heart of how organizations build long-lasting customer relationships. Companies must demonstrate that their products, people and communications deserve a high level of trust if they are to win and keep customers. Disney has done well here. The entertainment conglomerate has developed travel-planning tools and services that customers trust to make their vacations at Disney locations more enjoyable.



Rule #10: Stand for something other than making money. Just as customers are more than dollars on a financial statement, brands must be more than faceless, money-making monoliths. When it comes to building a well-rounded brand that reflects customer values, consider relevant charitable initiatives, being green and using recycled goods, or giving employees time off for volunteer work, for example. American Express is putting this rule into practice with “The Members Project”—an initiative that empowers the company’s members to nominate, and collectively select, a charitable effort to which it will donate up to $5 million.



These are the new rules. By and large, they’re not optional. Firms that follow as many of these rules as possible demonstrate value to their customers and prospects every day, and empower and encourage their employees to have a greater impact on the customer experience. As a result, they are more likely to win business, establish loyalty and enjoy continued growth and profitability.



Darcy Bevelacqua is senior vice president of strategic marketing services and a senior consultant for Harte-Hanks. Michele Fitzpatrick is chief marketing officer, data-based marketing solutions, and heads the company’s customer optimization practice. Harte-Hanks Inc. is a worldwide, direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities. Contact Bevelacqua at darcy_bevelacqua@harte-hanks.com or call (607) 796-2445. Contact Fitzpatrick at michele_fitzpatrick@harte-hanks.com or call (215) 750-6600.

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