For Fabienne Galzin (BVA Xsight), creating a bond strong enough to build customer loyalty – and thus achieve a real ROI – requires a very special effort on the part of brands. This means touching their emotions and giving them positive experiences that they will really remember. There’s nothing quite so obvious about this, and it goes far beyond what is usually done by companies. She tells us about the recipes and tools designed by BVA Xsight to help you succeed in this exercise.
MRNews: In theory, the quality of the customer experience is not an end in itself, but a key factor in building customer loyalty. Do the people you talk to in companies often take an ‘economic’ view of these issues?
Fabienne Galzin (BVA Xsight): Yes, in the sense that the question of ROI is very high on their agenda. This is nothing new, but the context in which we are evolving only reinforces this phenomenon: every investment must be economically justified. However, the problem is not so simple… On the one hand, there is the issue of the link between customer satisfaction and loyalty. But there is also the question of the ROI of each of the possible actions. And then there’s the time factor, as certain efforts can only be profitable over time, not in the short term. Companies therefore tend to take a pragmatic approach to these issues, trying above all to prioritise their investments.
I should point out, however, that the people we talk to nowadays often use NPS-type approaches, with the ‘recommendation’ metric being much more explicitly present than the notion of ‘loyalty’ in their briefs, even though the 2 are closely linked.
What is BVA’s philosophy on these issues? Or, to put it another way, what do you think is the best KPI for steering Customer Experience?
Seen from my window, the best KPI is the one that is most consistent with the company’s strategy and key ambition. If the company’s number 1 challenge is to eliminate irritants (‘pain points’), then it makes sense to monitor this specific point first and foremost, with the percentage of dissatisfied customers being an appropriate KPI. This would not necessarily make sense for a brand aiming for excellence. Or for another whose strategy is based on a Quality/Price positioning… So each company has its own battle and the KPI most in line with it.
Seen from my window, the best KPI is the one that is most consistent with the company’s strategy and key ambition (…). So each company has its own battle and the KPI that is most in line with it.
But, ultimately, the most universal key issue is the quality of the relationship with customers. This is what generates both loyalty and recommendation. At BVA, as you know, we are passionate about behavioural science. This has led us to develop a number of convictions, including the fundamental importance of emotions. They play an essential role in all people’s decisions, including when they buy a product or service. And they are also key to ensuring a strong bond between people and brands. They are THE key lever for engaging customers over the medium to long term, quite simply because they are what enable them to remember their experiences. Feeling positive emotions generates positive memories, and that’s how the bond and loyalty are created, and even the recommendation to friends and family. And that’s all there is to it: to establish strong links with its customers, a brand needs to provide them with memorable positive experiences!
Ultimately, the most universal key issue is the quality of the bond with customers. This is what generates loyalty and recommendation (…). We are convinced that emotions are THE key lever for engaging customers over the medium to long term, quite simply because they are what enable them to remember their experiences.
Do they do this so often?
No, it’s not that simple! Brands can very well respond ‘correctly’ to your needs, without leaving any solid memory traces in your mind. The overall experience will seem acceptable; but if it’s too ‘smooth’, as is often the case, it won’t really build loyalty! It’s a strong commitment to go the extra mile to touch the emotions and create positive memories. But it’s based on a proven scientific background, with the famous Peak End rule evoked by specialists in behavioural economics, and described for the first time by Daniel Kahneman. The idea is that we do not remember every moment of an experience, but first and foremost the most intense moments, whether positive or negative. And even more so if they come at the end of the experience. If you spend the day at Disneyland with your children, and you see the joy in their eyes at the parade or the final fireworks, there’s a good chance you’ll have a very positive experience too. And you’ll forget all about the time spent in queues or the fact that the hot dog was « average ». To put it another way, it’s not enough to remove bread-points to make an experience memorable; you have to create these kinds of positive peaks in the experience you give your customers. This is naturally reflected in the figures, with a huge NPS delta (close to 40) between customers depending on whether or not they have had these memorable positive experiences.
The famous Peak End rule evoked by specialists in behavioural economics, and described for the first time by Daniel Kahneman, states that we do not remember all the moments of an experience, but first and foremost the most intense moments, whether positive or negative. And even more so if they come at the end of the experience.
How can a company act on this, and objectively ensure that it is generating this type of experience?
To help them do this, we have defined an essential metric, the Net Memory Score (NMS). This is a new indicator linked to memory that really speaks to the teams and guides their actions. It simply corresponds to the balance between the proportion of customers who say they have positive memories and the proportion who have negative memories. And we use a proprietary model that we call EPIC. This is inspired by the behavioural sciences and in particular the reference book « The Power of Moments » co-authored by two academics, Chip and Dan Heath. The principle behind EPIC is to focus on the 4 major emotional drivers that can trigger the positive peaks we have mentioned, and thus generate memorable experiences.
To help brands, we have defined an essential metric, the Net Memory Score (NMS), which simply corresponds to the balance between the proportion of customers declaring that they have positive key memories and the proportion retaining negative key memories. And we use a proprietary model that we call EPIC. It is inspired by behavioural sciences, and in particular by the reference book « The Power of Moments » co-authored by two academics, Chip and Dan Heath.
EPIC is also a reference to spices in cooking, the idea being to use the 4 ingredients summarised in the acronym in the right proportions to enhance the experience. E stands for Elevation. It’s about positively surprising customers, by going beyond their expectations. P stands for ‘Pride’, making the customer feel valued and even unique. Then comes the I for ‘Insight’, when customers discover something new, have a revelation, for example about themselves or the brand. That’s how I felt when I managed to fix my washing machine by listening to the Darty technician’s instructions on the phone. For me, it was an unforgettable experience with Insight and Pride! (laughs). Finally, we have the C for ‘Connection’, a moment when you feel connected to others – in a ‘one to one’ mode or within a community through a shared vision. This can take the form of laughter, for example when your airline steward puts on a humorous show to tell you what safety instructions to follow, you’re experiencing a moment of connection.
It’s by combining these 4 ingredients that a brand can create positive memories for its customers…
Absolutely. At the same time, it’s also vital to ensure that the basic relational contract that customers expect is in place. To do this, at BVA we have identified 4 key elements based on fundamental customer expectations, which together enable us to deliver the basics. This is our FREE model. The brand must be « Fair », in the sense of demonstrating fairness and honesty, and « Reliable ». It must also give customers the choice to decide, with services or options adapted to their needs, which corresponds to the E of « Empower »; and finally facilitate the relationship, which must be as « Easy » as possible.
It is also essential to validate that the basic relational contract expected by customers is in place. To do this, at BVA we have identified 4 key elements based on fundamental customer expectations, which together enable us to deliver the basics. This is our FREE model.
How do you integrate these approaches and ‘models’ when you already have tools, such as NPS barometers? Do we break everything down to build something new?
That’s a good question… No, we mustn’t break everything! And certainly not the NPS. The NPS has its limits, it requires you to manage a balance, which is not easy. But it also offers enormous advantages, including the fact that it is massively distributed, which provides powerful benchmarking possibilities. What’s more, it can be used in a relatively flexible way, the basic question being that of recommendation intentions, which most often makes perfect sense. The idea is that the EPIC&FREE approach and the measurement of memories that we have mentioned can be adapted to existing systems and complement relational studies in the form of modules. They are therefore very easy to integrate and provide a framework and a new, highly operational perspective for defining or adjusting your CX strategy. FREE questions generally exist, such as Reliable or Easy (cf. the customer effort score), and we do of course sometimes revise their wording.
The last thing you want to do is break everything! And certainly not the NPS. It has its limits, and requires you to manage a balance, which is no easy task. But it also offers enormous advantages, including the fact that it is massively distributed, which provides powerful benchmarking possibilities.
As you mentioned, companies need to rationalise their actions, to avoid making efforts that are too costly to implement in terms of economic spin-offs. Can you help them with this? How can you help?
This question can be addressed using statistical models. Our data scientists have all the necessary know-how to work with our customers in this direction. However, this means using a lot of internal company data, with possible limitations in terms of availability. So we also need to be able to work with our customers in a pragmatic way. Firstly, by helping them to formulate an overall strategy with clearly defined priorities for action, particularly in terms of key moments and emotional drivers to prioritise. This is precisely what the tools we’ve just mentioned – the new XPASS approach – are designed to do.
But our support in these areas goes beyond that. Once the priorities have been established, we need to rethink and redefine the design of the Customer Experience, thinking in terms of emotional peaks and ROI, which is what we do with our Experience Factory. And then we need to monitor performance, using feedback management and Mystery Shopping systems – BVA is a specialist in these areas. Working on customer culture is also essential, because it is the glue that binds everything we do together, so that everyone is on board and the initiatives we put in place are sustainable. This is what we are proposing with our new MindXset approach. I would add that working effectively on these issues sometimes requires companies to undertake far-reaching transformations. Once again, these are issues that we are addressing by drawing on the principles of Nudge.
Working effectively on these issues sometimes requires companies to undertake far-reaching transformations. Once again, these are issues that we can help to address by drawing on the principles of Nudge.
Do you have any final advice for corporate teams on these issues?
I don’t think we can ever stress enough the importance of Customer Culture in companies. Because there can’t be a satisfactory Return on Investment without real commitment from the teams. It is important, and companies know this, to work on the symmetry of attention, by giving meaning to the teams, and by giving them the means to deliver a memorable CX. And action to optimise the Experience must not be a soufflet that falls as quickly as it rises. This often requires the implementation of real transformation projects to work over the long term, thereby creating the best possible conditions for success.
FOR ACTION
– Discuss with the interviewee : @ Fabienne Galzin
