Latest / Customer Service Revolution | Customer Experience & Employee Experience for Business Leaders / 236: How can I make customer experience a true competitive advantage?
Transcript
- 0:58Welcome to the Customer Service Revolution podcast, where we help leaders build companies their customers cannot live without.
- 1:05Today, we're starting the year with one of the biggest questions we hear from CEOs.
- 1:10How do we make customer experience a true competitive advantage?
- 1:14Not a slogan, not a training event, a real baked into the DNA advantage that makes price irrelevant.
- 1:21We're living in what John likes to call the relationship economy.
- 1:26where organizations that win are the ones creating emotional connections, not transactional exchanges.
- 1:32And today, we're breaking down how the 10 commandments of world-class experience give companies a competitive edge that competitors can't duplicate.
- 1:41You'll recognize these principles from brands like Chick-fil-A, the Ritz-Carlton, and organizations that consistently outperform even when others try to beat them on price,
- 1:51speed, or convenience.
- 1:54How you doing, John?
- 1:55Happy New Year.
- 1:57Happy New Year.
- 2:00I want to start off today, I want to have you tell a story that I know you've told in workshops about the moment a CEO feared losing customers to a competitor based on them
- 2:11charging less, charging half the price.
- 2:14Can you talk about that?
- 2:16Yeah, I mean, the one you know, this is actually happened in my salon unless you have a different one.
- 2:22But.
- 2:23Any time probably still happens, but less at any time.
- 2:27We get a customer complaint about our prices.
- 2:31The staff immediately goes to were too much.
- 2:34You know, we shouldn't raise our prices anymore.
- 2:38They'll argue that they're going to lose customers when they raise prices.
- 2:41And the example I love to go to is back when I was involved in the salons in the mid 90s, there was a woman that came in, went to our level one designer.
- 2:53We have 10 levels.
- 2:55Level one is when they just graduate from our training program and they go on, they're probably charging
- 3:02you know, today $50, which is, you know, 50 or $60.
- 3:06Back then it was probably 35.
- 3:09Who knows?
- 3:09This is in the nineties, but the woman didn't like it.
- 3:15So it wasn't worth it.
- 3:18So I gave her money back and I sent her a gift certificate to go with like a Heather who at the time was like a level six or seven and probably charging $80.
- 3:31and the woman went to Heather and just assumed it'd be the one time.
- 3:35Well, today, 2026, she still goes to Heather and Heather charges $200 for a haircut today.
- 3:44She's a level nine or a 10.
- 3:47So, you know, it's funny that, at 35 we were a ripoff and at whatever Heather was then 80, she founded
- 3:57a great value and then stayed with her for close to 30 years, if not 30 years, and has chased her up the level and prices.
- 4:07And so this just goes back to whenever someone complains about price, it's not because they aren't willing to pay it or they're cheap, it's the experience didn't warrant it.
- 4:18And so that's why we, know, you know, that's a lesson because employees
- 4:22employees are sensitive.
- 4:24Another example of when we were working with Starbucks,
- 4:27we found out that like some baristas felt guilty about charging you four, $5 for a cup of coffee.
- 4:38This is in the 2000s, the late 2000s.
- 4:43they felt guilty about charging for such an expensive cup of coffee.
- 4:49Why?
- 4:50Because, you know, they made back then $5 an hour.
- 4:57That was one hour of work, right?
- 5:00They couldn't comprehend, you know, that was like you.
- 5:04paying $500 for a cup of coffee, right?
- 5:08Is that what you get paid?
- 5:10An hour?
- 5:10Exactly.
- 5:11It's close.
- 5:12It's close.
- 5:13Right?
- 5:14So back then, and now it's both, the cup of coffee and their wage has gone up.
- 5:19So I'm talking about in the late 2000s, but we had to help change their mindset that they weren't selling a $5 cup of coffee, right?
- 5:29They were selling a great cup of coffee that was personalized to exactly what you wanted.
- 5:33There's 170,000 ways.
- 5:36You can order your coffee.
- 5:37They're going to give it to you that way.
- 5:38Yada, yada, But back then, supposedly today, you could hang out for an hour, read a book, clean up your inbox, or conduct an interview, or socialize with your neighbors, or soccer
- 5:56moms, or whatever you're doing at Starbucks.
- 5:58So they're giving you rent.
- 6:01You know, you know, they're giving you a living room.
- 6:04They're giving you, you know, so much more the third place.
- 6:07So it also is important the mind shift that we train our employees because our employees, you know, react to be inexpensive.
- 6:17And, you know, like we always talk about, a lot of times our employees wouldn't be our customers.
- 6:23So.
- 6:23So let's talk about how companies can make that happen because it sounds nice when you hear it.
- 6:30But we also know that within your salons and within Starbucks, there are actual systems in place that allow and empower employees to do that kind of thing.
- 6:41So and this comes from the 10 commandments that you have written about and what you created as part of your consulting methodology.
- 6:51So let's break down the 10 commandments and show our listeners how they can create a system of differentiation that competitors simply can't copy.
- 7:01The three areas that I want to focus on today are emotional connection, building relationships that transcend the transaction, operational excellence or operational
- 7:11confidence and zero risk, removing the uncertainty and memorable signature touch points that you talk about as the creating an experience that others can't copy, something that's
- 7:25intentional, repeatable, branded moments that really elevate the experience.
- 7:29So let's walk through each one starting with emotional connection.
- 7:34You always say, this is the real currency of the relationship economy.
- 7:39Why does emotional connection matter now more than ever?
- 7:43um What drives today's customers are emotions and feelings, some of which can't be expressed in words and are triggered unconsciously.
- 7:53The most important element in a customer choosing who they buy from is how a brand makes them feel, unless you're the cheapest.
- 8:01So I think it's something that we've gotten away from.
- 8:05I think with all the technology explosion, which I can't, you know, express enough.
- 8:10love the technology.
- 8:12I love it as a tool, but not as a replacement.
- 8:16So we're just getting less human interactions and which obviously an app, a kiosk, any self-service chat bot is not going to make me emotionally compelled to a brand.
- 8:30All right, so let's talk about zero risk.
- 8:32You say customers aren't looking for perfection, they're looking for certainty.
- 8:38And we did a podcast a few episodes back on the certainty business.
- 8:45So let's talk about that a little bit.
- 8:47So repeat that again, customers aren't looking for what?
- 8:50Perfection, they're looking for certainty.
- 8:52Yeah.
- 8:53And so, and this is with zero risk.
- 8:57Yeah.
- 8:57So, I mean, zero risk, how we explain that, is, you know, so to me, Amazon, Apple, Nordstrom's, you go on and on with the great brands.
- 9:08There's zero risk to do business with as a customer.
- 9:12Now that doesn't mean they'll never screw up.
- 9:17they screw up less than anyone else, which is great.
- 9:21There's a trust factor, but the additional trust factor is when they do drop the ball, again, it's less than anybody else, but when they do, they pick it up, make it right.
- 9:30And you, lot of times you're more loyal than had they not dropped the ball.
- 9:36So,
- 9:36You know, that's really important, having systems in place that first recognize where do we drop the ball the most.
- 9:45And it's funny, we'll go back to the spa, the top five areas that we drop the ball, which really makes up way more than 95 % of anything that could go wrong fall into these
- 10:01categories.
- 10:02Appointment, appointment.
- 10:05And that could be, we got it wrong.
- 10:07Some, one of us got it wrong and you showed up today and the appointments tomorrow.
- 10:12Going with that is, or a delay, meaning that, you know, you thought you were going to get out of here at three and it's quarter to four and we still got work to do.
- 10:24So we didn't communicate well enough or, you know, but
- 10:29You have a daughter that's getting off a bus.
- 10:31You got to be back at work.
- 10:32You have a meeting, a Zoom meeting, all those things.
- 10:35So that's one.
- 10:36The second one is quality of work.
- 10:43You don't like what you're left with, right?
- 10:46Third one is professionalism of a staff.
- 10:51That means they gave you an attitude.
- 10:54didn't, you know, anything along that.
- 10:58Fourth one is price.
- 11:00And again, that's usually because we didn't communicate, you know, in that world it says, highlights or color starts at 135 and you get up to pay and it's 215.
- 11:11Right?
- 11:13We didn't warn you that what you're asking for is a lot more, you know, this is where it's going to be.
- 11:20Do you still want me to proceed?
- 11:21I forget the fifth one.
- 11:23Do you remember the fifth one, Denise?
- 11:24But anyway, when we worked with Price Waterhouse and we did their Zero Risk Workshop,
- 11:29they had the exact same five categories that their things fell in.
- 11:38Pricewaterhouse, an accounting firm for public companies B2B, John Roberts Spa B2C.
- 11:46So you find out where the majority of your things go wrong and then you start putting the systems into place that will reduce it being an appointment mistake.
- 11:56something silly that worked was, you when we're talking about you want an appointment with Sandy and I'm giving you options, she has Tuesday at four, Wednesday at noon, Thursday at
- 12:09six.
- 12:09And you finally decide on something.
- 12:13But we were talking about so many options that the person booking your appointment might have said it wrong.
- 12:18All right.
- 12:19So that's Thursday at noon.
- 12:23and you write that down or you, know, whatever it could have been what you wrote down, but there's a lot of dates and times flying around.
- 12:31And so now the software prompts a script that we're supposed to read.
- 12:36Okay, Denise, that's Thursday at 6 PM at our Willoughby Hills location with Sandy for a haircut.
- 12:45If we do that, that right there, you know, we'll catch some of the
- 12:49communication if Denise is paying attention and, you know, little things like that.
- 12:54What can you do that reduces, um, maybe making an appointment mistake from 6 % of the time to 4 % of the time.
- 13:03And then the recovery has to happen when it still happens 4 % of the time.
- 13:06What do we do at the salon when you walk in and you're not down for the right day?
- 13:11Right.
- 13:13All right, now let's talk about the signature brand experience and Secret Service, where the signature touch points come in.
- 13:22How do memorable moments become a competitive advantage?
- 13:27Well, so, you know, operationally, we have operational standards and that's that's kind of where I think, you know, AI is going to come in and absorb them all.
- 13:39That's, you know, filling out the right paperwork and getting you to sign here and add your credit card and, you know, all the necessities.
- 13:50But.
- 13:50The only time operational is memorable is when it's not done, right?
- 13:55You know, and you order something and you don't get everything, right?
- 13:59Not because it was out of stock, because the person's doing your order left it out, right?
- 14:05Or Walmart shows up and something's missing.
- 14:08Those are, is memorable, know, memorable, but typically operational, your competitors do it too.
- 14:14It's just who does it more consistently, which is really, really important.
- 14:18And then there's experiential, which is really the part of creating your signature experience that differentiates yourself.
- 14:27So what do we do at this stage, this journey mapping, this touch point that makes us stand out?
- 14:34You know, so in the salons, it's the white cape versus black cape.
- 14:37The white cape means you're a new customer.
- 14:39It's never been here before.
- 14:40Black cape, you're you've been here before.
- 14:43So now everyone in the salon can see that and greet you, you know, and personalize it like, you know, your first time to John Roberts.
- 14:53We have a spa over there that I work.
- 14:55I'd love to give you a tour and a 20 % off a facial, you know, pedicures, manicures,
- 15:02cappuccino machine, more information of what we do and how we do it, and more introductions.
- 15:07Black Cape, you're an old friend, right?
- 15:10Even if we don't know you.
- 15:12So those are, even though the employee doesn't know you, they don't have to have worked here three years or three months to understand how to distinguish.
- 15:21And so that's the experiential, that's the secret service.
- 15:29Gold cape, gold bag means they're a VIP.
- 15:32So it's a lot of things like that that make a brand stand out.
- 15:38That becomes your signature experience that no one else is doing.
- 15:42Nordstrom's, you know, when they, you like Nordstrom's, don't you?
- 15:48Okay, so what do they do when you're paying that's different?
- 15:53Right.
- 15:55Yeah, yeah, yeah.
- 15:56And another one that,
- 15:58I still think is rare is they don't limit you with how much you can bring into the clothing.
- 16:05Yeah.
- 16:05And that's important.
- 16:07Like I'm sure I'm not alone.
- 16:09I power shop, which means I only shop a couple of times a year.
- 16:13Fast and spend a lot in that time.
- 16:16But if you're not helping me do it fast, I won't, I won't stay.
- 16:21So if you're only limited me to three or four, I usually grab 20.
- 16:26I'm not, you know, coming out grabbing another four, going back in.
- 16:32Right.
- 16:34And then, but I want someone there saying, all right, how's the word?
- 16:37I love this shirt, need a size bigger.
- 16:40You know, don't like the shirt, keep it.
- 16:42You know, and boom, now I can, you know, knock out, you know, and buy 12, you know, things quickly.
- 16:49So, that's an example of Nordstrom's how they differentiate from a lot of other.
- 16:54retailers.
- 16:55Well, first of all, they help you, which a lot of retailers when you go in these days, you have to hunt to find somebody.
- 17:03Yeah, just to check out, to give them your money.
- 17:05And you know how back to your earlier topic, zero risk, you could bring it back.
- 17:11Nordstrom's has no return policy, meaning you could bring it back in a year.
- 17:15You don't need your receipts.
- 17:17They're not going to argue with you.
- 17:18That's zero risk.
- 17:20Yeah, love that.
- 17:21Love that about them.
- 17:22All right, let's make this real.
- 17:24Let's talk about a company that's actually implemented these different pieces of methodology.
- 17:31There was a financial services firm that you worked with that went from being just another bank to the bank that customers recommend.
- 17:39And their NPS score has continued to climb years into following what you've taught them.
- 17:47What part of the methodology moved first for them?
- 17:50Well, they followed the methodology in order.
- 17:55So it was the igniting this customer experience revolution, which does the day in the life, the client experience, action statement, the three pillars and the never's and
- 18:07always, which we always recommend.
- 18:10That's where you start.
- 18:11That's like drawing a line in the sand and telling internally and externally.
- 18:18we are going to be obsessed with the customer experience.
- 18:21And that's what they did.
- 18:23And then they, you know, just followed, then they did the creating the signature experience, which is looking at each journey mapping, each type of customer, whether it's
- 18:31a mortgage customer, a loan customer, a deposit account, you know, all the different types of transactions.
- 18:37And so, you know, they, they, they, they did it all.
- 18:40It took them years, but they saw an impact.
- 18:43you know, within the first six months of what you're talking about.
- 18:49And they really bought into it from the top down.
- 18:52And that's really key.
- 18:53Executive sponsorship has to, you know, be obsessed with this, not just write a check for the budget or, or, you know, saying it one time, but it can't be flavor of the month.
- 19:05It has to be something you really, you know, you really mean.
- 19:09And that means
- 19:10almost every time you talk, need to incorporate how whatever you're talking about affects the client experience.
- 19:17If you're listening to this and you're curious, it's sparking ideas for you.
- 19:21You're thinking we need to build this inside our company, but maybe you're not ready to go into full blown consulting, but you want to dip your toe in the water and understand this
- 19:32methodology a little better.
- 19:34That's exactly why we created the experience revolution membership.
- 19:38Every quarter we teach a live workshop on the exact systems we implement inside our consulting engagements.
- 19:45Things like creating your non-negotiable standards, delivering zero risk, designing signature touch points, and world-class onboarding.
- 19:54And our members for the revolution get access to all past replays, tools, and templates, giving your leaders and frontline a roadmap, not just inspiration.
- 20:04So if you want 2026 to be the year you build a competitive advantage that no competitor can copy, join us at tdg.click
- 20:14forward slash membership, or you can visit the DiJulius group website and look for membership.
- 20:21All right, John, what's the biggest blind spot leaders have today about competitive advantage?
- 20:27Well, you know, we've talked about this.
- 20:29I think AI is is the rage and as it should be.
- 20:34But once we get there.
- 20:36It's just keeping pace, anything that we're going to, you know, a company is going to create is going to be copied in technology wise.
- 20:44And we've talked about this, you know.
- 20:46I can't, other than the logo and maybe the color scheme, I can't tell the difference between, you know, United, Delta, American Airlines app.
- 20:56They're great, right?
- 20:57I you know, I can't think of how they could be better, but, you know, I could check my mouse, my next flight, move it, you know, everything.
- 21:06The app is great, but they all do the exact same thing.
- 21:09So Delta doesn't own the app experience.
- 21:14you know, Uber's app is identical to Lyft's.
- 21:17So, you know, that's, that's just going to be table stakes.
- 21:20So you still have to have the experience and the experience I believe is going to come in the, in the human experience.
- 21:28Some will get a head start, but eventually everyone will, will copy whatever we do or whatever anyone does.
- 21:36So I think it's still managing the human experience and
- 21:39And then the blind spot where I thought you were going with this is along the lines of customer service.
- 21:46And that's just that the blind spot is that it's common sense and it's innate.
- 21:52And it goes back to the service aptitude that, you know, most employees, their service aptitude gets shaped from their previous life experience and previous work experience,
- 22:02which as leaders, we can't control.
- 22:06your background.
- 22:07We can only control what we train you on and we have to have the service aptitude skills in the training along with the technical operational.
- 22:15All right, here's another one for you.
- 22:16Why do so many organizations default to price wars versus experience wars?
- 22:22Experience wars is hard.
- 22:24I prefer because there's a lot less players that don't know how to do it well, but...
- 22:29You know, committing to customer experience, truly committing is a lot.
- 22:34It is a lot of work.
- 22:36It's the greatest ROI.
- 22:38If you commit to it, there's the organic training and then there's the, I'm sorry, growth.
- 22:43And then there's, you know, bought growth.
- 22:45It's easier for me as a CEO to buy a competitor and get their market share.
- 22:53and get their employees and lay off things that are worry doing that we don't need their people to do payroll marketing, blah, blah, blah.
- 23:05It's easy to run a price promotion to get things to pop off the shelf or whatever the phrase is today to buy.
- 23:17But those things
- 23:20are artificial growth.
- 23:22And they usually put you in a place in six months that could be worse than you're already in.
- 23:28You bought a company, there could be some problems.
- 23:30There's certainly, and listen, buying companies is great, but if that's the only thing you're doing, there's culture issues, they're a different company, all that stuff.
- 23:41They might've had some skeletons in their closet that we have to clean out.
- 23:45That doesn't just mean you're going to, know, and the, price wars, if you, so, so now you go to, to, obsessing with customer experience and there's a lot to that.
- 23:59But, my favorite book, the slight edge and the compound effect are two different books, but basically the same are about, what you do today.
- 24:09or you don't do today doesn't matter today.
- 24:12You eat a donut at lunch or you eat three, really doesn't matter today.
- 24:18You're not gonna come home and Kenzaka say, whoa, Denise, what'd you have for lunch?
- 24:23Unless you have a gluten allergy, it makes you swell up, right?
- 24:26You get a workout in today or you don't, doesn't matter today.
- 24:31Again, no one's gonna notice, you're not gonna look, you know,
- 24:36noticeably different.
- 24:37You're probably not, you know, the scale is probably not going to read anything that's going to frighten you, you know, today.
- 24:43You train your new employees, your existing employees on customer service this week, or you don't, your sales aren't going to change.
- 24:51You your sales are still going to be the same this week.
- 24:54We call a client back within 24 hours or we don't.
- 24:59Again, you know, we're still going to do a million dollars this week, this month, whatever the period we're looking at.
- 25:07And so that's why you go for artificial growth.
- 25:11by mistake because I can't make my shareholders happy and change my P &L without laying off 10 % of our workforce, acquiring a competitor, and doing price discounts.
- 25:27That will get results today, this week, and pacify shareholders and all that.
- 25:34So the slight edge and the compound effect talks about doing these things consistently.
- 25:39For the first three months, you may not see anything different.
- 25:42And then all of a it turns into a freight train of if you're training everyone on customer experience, every new employee, every existing employee, and you're constantly doing all
- 25:52the things that never is and always.
- 25:54creating a signature experience and doing that.
- 25:57Now all of a sudden you got the emotional connection.
- 26:01got the, you know, loyal customers are a different breed.
- 26:04They don't just tell others, their friends and family, they demand that you do business.
- 26:10You start creating employee evangelism.
- 26:13start doing, you know, that's doing more marketing than your paid advertising does.
- 26:20I don't know, I explain the slight edge compound effect?
- 26:23Well enough?
- 26:24Okay.
- 26:25Yeah.
- 26:25I'm with you.
- 26:26I love that.
- 26:26I don't know that I've read the compound effect, but Slight Edge is still memorable.
- 26:31It's a good book.
- 26:32Yeah, he kind of bought it or something, Darren Hardy, because the first chapter is the slight edge.
- 26:38So I don't know if he bought it from him, but it's really good.
- 26:42Which part of the Ten Commandments do companies usually miss first?
- 26:46Miss First, they usually go by us.
- 26:50Uh, they should go by our recommendation after we find out where they're at.
- 26:55Uh, but some that they are like, uh, we're good at that could be like the above and beyond creating the above and beyond.
- 27:06Um, that's a, that's a cultural mindset shift and that's not necessarily teaching employees or, or, or how to go above and beyond.
- 27:16It's teaching the systems and mechanisms.
- 27:19to market and promote the above and beyond stories.
- 27:25So you get that FOMO and that positive peer pressure.
- 27:30Creating the signature experience, that actually is where we get specific of what's the above and beyond at each touch point.
- 27:38And above and beyond is just really pattern recognition.
- 27:42So when you're on the phones,
- 27:44depending on your call center, booking appointments or support or whatever, what are the most common things that a client may say?
- 27:52Or you hear the baby crying or the dog bark in the background or her say, whatever.
- 27:58You train your employees.
- 27:59These are the most common things that untrained those employees would just go right over their head.
- 28:06All of these need to be reinforced.
- 28:07What do world-class leaders do daily to reinforce this?
- 28:13So Toma, Top of Mind Awareness, visit great companies, make sure it's visited daily.
- 28:22And that could just be part of a minute of their pre-shift huddle Or it could be the micro learning video that you get every Wednesday at four o'clock.
- 28:36That's like a 60 to 90 second.
- 28:40TikTok YouTube video that you get on your phone, your iPad, your computer, that just reminds you something you've already learned.
- 28:49And it's just constantly reinforcing, you know, what Ford is, family, occupation, recreation, and dreams, or the five E's, or, you know, something you've already known,
- 29:01we're reminding you, and now you're going to be a little bit more heightened.
- 29:04Your senses are going to be for that.
- 29:07All right, for those leaders who are ready to start off 2026 focused on customer experience, what's one action you suggest they take this week?
- 29:17Hmm, that's a good question.
- 29:20Do an audit.
- 29:21If you can include the CSAT test, would take the customer service aptitude, I'm sorry, company service aptitude test that takes about 10, 11 minutes and it goes through, you
- 29:41you'd know better than me how many questions it has, but it probably has 50, 60 questions and it.
- 29:46then you get a report immediately saying, under the customer experience action statement, you are below average.
- 29:54Zero risk, you're above average.
- 29:56You're world class, you're in trouble.
- 29:58But it kind of helps you find out where your strongest and weakness is, and you can have other leaders take it.
- 30:06And that's really good because...
- 30:08Sometimes you'll find out that on a question or a thing, zero risk, me and you, same company, you come back with that you're, I forget, below average.
- 30:20I don't know what the lowest one is, one, do you remember?
- 30:25Unacceptable.
- 30:26So you might come back as unacceptable for the answers you gave zero risk.
- 30:30And I came back above average.
- 30:33That's a big disparity if we're both working for the same company, same team, same department, right?
- 30:40One of us is wrong, right?
- 30:43And so now we got to find out.
- 30:44And this has happened to me on something we do for hiring or orientating.
- 30:51I was much higher than the rest of the staff and the rest of the leaders knew, are right, I'm wrong.
- 30:58because I'm out of it.
- 30:59The reason why I said I gave higher grades is we've always done this since we opened and the HR person said, I've been your HR person for four years and we've never done, that's
- 31:10not the way I was never taught to do that.
- 31:12And she wasn't wrong, but you have assumptions that we're still doing that and it got lost along the way.
- 31:20And it wasn't just one thing, there was a lot of things.
- 31:23that as the president of the company, I was out of touch with.
- 31:29But there's a lot of good examples when you take the CSAT company service aptitude test, it'll give you a score right away.
- 31:36It's only based on what you're telling it.
- 31:40having multiple leaders take it is really eye opening.
- 31:44So listeners, we'll make sure we have that in the show notes so that you can take the company service aptitude test and share the link with your team and other leaders as well.
- 31:54And if you're ready to build an experience your customers cannot live without, join the Experience Revolution membership.
- 32:00You'll get the tools, playbooks, workshops to bring all of this to life inside your organization.
- 32:06You can join at tdg.clickforwardslashmembership.
- 32:11And be sure to join us next week when we're going to be talking about small actions that create massive loyalty.
- 32:19Thanks so much, John.
- 32:20And again, happy New Year.
- 32:22Thank you.