Customer Insight Summer 2021

www.tlfresearch.com | Summer 2021

STARLING BANK’S CUSTOMER “OBSESSION” ALSO INSIDE… Latest UKCSI results Beyond Working From Home Apprenticeships Segmentation Behavioural Science 101

CUSTOMER JOURNEY Mapping Online training course - by Stephen Hampshire

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The course is scheduled to run over 6 weeks, with a new chapter released each week and consists of:

Video lessons

Case studies

Quizzes

Forum

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Over 6 chapters we will take you step by step through planning, developing, using, and communicating your own map for one specific customer journey:

Chapter 1: Making decisions and getting buy-in Chapter 2: Qualitative research to explore the lens of the customer Chapter 3: Quantitative research to prioritise and track Chapter 4: Service design to improve Chapter 5: Systems thinking for the customer journey

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EDITORIAL

Foresight Whatever happens between me writing this

I don’t have the answers to these questions,

and you reading it, there’s no doubt that this is a

but I do know that the companies best placed to

time when all organisations are starting to think

understand and meet their customers’ needs will

seriously about what the near future is going to

be the ones to thrive in the long term. Whatever

look like.

else may change, the importance of doing best

Where will we be working? We may not know

Editor

what the future of work looks like yet, but we do

In a packed issue we also have the latest

know that it’s likely to involve a move towards

UKCSI results (page 20), Nigel Hill continues

more flexible ways of working. On page 23 Cat

his series on segmentation (page 12), this time

Lewis outlines the way Reward Gateway has

focusing on the characteristics which define a

approached this with their “work modes” model.

good segmentation model, Albert Evans from

We also spoke to Cat on our podcast, so look out

ContactEngine introduces the potential of

for that episode if you enjoy the article.

behavioural science to shape customer behaviour

How will we recruit and train the right people?

On page 16 Steve Morris of Learning Curve explains why they believe apprenticeships are an

(page 28), and we review Cal Newport’s latest book “A World Without Email”.

Enjoy the articles, and please drop us a line

important part of getting the right people with

if you’ve got an interesting story to share for a

the right skills in your workforce.

future issue.

How will we interact with customers? In what ways will traditional markets be disrupted by changing patterns of consumer behaviour or innovative new technologies? On page 6 we hear from one of those potential disruptor brands, as Starling Bank talk us through their approach to building a new bank brand based on a great, empathetic, customer experience.

ADVERTISING Marketing Manager Richard Crowther

Customer Insight is the magazine for people who want to deliver results to employees, customers and any other stakeholders as part of a coherent strategy to create value for shareholders. We publish serious articles designed to inform, stimulate debate and sometimes to provoke.

DESIGN & PRODUCTION Creative Director Rob Ward

We aim to be thought leaders in the field of managing relationships with all stakeholder groups.

Designers Becka Crozier Jordan Gillespie Rob Egan

www.tlfresearch.com uk@leadershipfactor.com

EDITORIAL Editor Stephen Hampshire

CONTACTS

Stephen Hampshire

what matters most to customers is a constant.

PRINTER AB Print Group Ltd

Customer Insight C/O TLF Research Taylor Hill Mill Huddersfield HD4 6JA

NB: Customer Insight does not accept responsibility for omissions or errors. The points of view expressed in the articles by contributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published.

All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form

or by any means without prior written consent of the publisher. © CUSTOMER INSIGHT 2021

ISSN 1749-088X

www.tlfresearch.com | Spring 2021 Customer Insight 3

C O N T E N T S

-

S U M M E R

16

How to build a future-proof workforce

CONTRIBUTORS

06

Starling Bank They may be a challenger brand, but Starling have ambitions to build a “grown up” bank based on lasting relationships with their customers. Here’s how they’re going about it.

2 0 2 1

12

Segmentation In the second part of his series exploring customer segmentation, Nigel looks at the characteristics of a successful segmentation model.

Steve Morris of Learning Curve explains the potential for apprenticeships to help organisations plan for the future and ensure their workforce has the right skills.

Nigel Hill

Stephen Hampshire

Wine-lover, Munroist and customer satisfaction guru

Conference speaker, book-lover and occasional climber

4 Customer Insight Summer 2021 | www.tlfresearch.com

CONTENTS

CASE STUDY Starling Bank "Something that you feel"

06

20

UKCSI

23

Cat Lewis of Reward Gateway explains how their “work modes” model helps to clarify what their people are doing, and where’s best to do it in a hybrid working model.

33

Book Review

The latest UKCSI results show customer satisfaction is rising, and also that customers are getting tired of hearing excuses about the pandemic.

RESEARCH Segmentation Part 2

12

GUEST FEATURE Learning Curve - How to Build a Future-proof Workforce

16

RESEARCH UKCSI Latest Results

20

GUEST FEATURE Reward Gateway Beyond Working from Home

23

Beyond working from home

28

Behavioural Science 101 Albert Evans from ContactEngine introduces some of the ideas from behavioural science which are important to consider when designing customer experiences and interactions.

GUEST FEATURE ContactEngine Behavioural Science 101

28

BOOK REVIEW A World Without Email

33

In “A World Without Email” Cal Newport’s ideas about the power of focused attention for productive knowledge work turn into clear recommendations for how we should organise our working lives.

!

! !

DESIGNERS

Published by

Becka Crozier

Jordan Gillespie

Rob Egan

Right brain mastermind, music enthusiast and have I told you I’m vegan?

Creative magus, genuine tyke and 20ft wave rider

Beer drinker, pixel pusher and dour Yorkshireman

www.tlfresearch.com | Summer 2021 Customer Insight 5

CASE STUDY

Something that you feel

6 Customer Insight Summer 2021 | www.tlfresearch.com

CASE STUDY

Building trust

One of the slightly unexpected knock-on effects of the 2008 financial crisis was the decision to open up the banking market, which had become totally dominated by the “big four”. It’s still far from easy to set up a new bank, but it’s an awful lot easier than it used to be, and that has seen the launch and growth of a number of “challenger banks” hoping to carve out a niche based on FinTech efficiencies and, in some cases, differentiated service.

We spoke to Paul Ford of Starling Bank, which received its banking licence in 2016, about the culture of customer obsession which he believes has led to Starling being voted “Britain’s Best Bank” for three years running , and now holding £4.7 billion of deposits with over 2 million customer accounts (both personal and business).

"If you look at the way that banking is going, customers want banking at their fingertips.

Where we're trying to get to is that effortless, painless, experience where it's 24/7 – if you need your bank, we’re there."

Being a challenger

Many of us, as customers, have probably at least dipped our toes in the water to try out a challenger bank, perhaps by downloading an app to see how it feels, but moving your main account is a different question: “We realised that the big challenge within FinTech is trust. People have it as a second account, but they might not completely trust it.”

Starling aims to hit the sweet spot between tradition and innovation by making sure that many of its senior people, like its founder Anne Boden, have an established banking pedigree. They’ve also relied on traditional advertising campaigns more than some of their competitors, and that may help account for their more balanced demographic mix.

They’re aiming, as we’ll return to at the end of this article, to build a reputation as a proper “grownup” bank, not just a challenger.

This means that many of their customers use Starling as their main bank (the average personal customer deposits over £1,500 a month).

An important moment for Starling in terms of its business customer proposition

digital channels we might assume that their

came during the pandemic, where it

“challenger”? We’ve seen similar

customer base has a younger, perhaps urban,

made the decision to offer loans to many

trends in markets such as energy

demographic. In fact the average Starling

businesses who needed them to survive.

and telecoms, and what challenger

customer is almost 37, and only 23% are

In total Starling lent over £1

brands often bring is a combination of

based in London.

billion to 45,000 different

What does it mean to be a

slick marketing, a low cost base, and

“There's a huge array of different types

businesses through

innovative technology. Done right that

of customers, not just the tech-savvy. A lot of

its “Bounce Back”

customers now are very open to this type of

Coronavirus

banking.”

loans.

can create a compelling proposition, for the right kind of customer. But who is the right kind of customer, and what is Starling aiming to achieve?

“We've got a strategy of changing banking for good. If you look at the way that banking

The truth is that most of us are now very comfortable to do the majority of our banking digitally, as long as it works and as long as we trust the company we’re dealing

is going, customers want banking at their

with. That might present a challenge — the

fingertips. Where we're trying to get to is that

traditional banks and building societies

effortless, painless, experience where it's 24/7 –

have had decades or centuries to

if you need your bank, we’re there.”

establish a reputation, so how can

It’s easy to fall into stereotypes, so

the challenger banks compete?

when we think of a bank which prioritises

www.tlfresearch.com | Summer 2021 Customer Insight 7

CASE STUDY

Another good

“That's why we could justify doing the Bounce

example of Starling’s

Back and the Coronavirus loans, because people need to keep their businesses afloat, so we're

Agility

ability and willingness to respond quickly was their

helping them. If we end up with a percentage of When it comes to processes,

customers that aren't totally loyal, then that's

introduction, during lockdown when many

okay, because we did the right thing by trying

there’s no doubt that the challenger banks

customers were self-isolating, of a second debit

to get the funds to them and the government

often have an advantage, particularly when it

card with its own PIN that customers could give

desperately needed facilitators for those funds.”

comes to technology:

to a helper, volunteer, or family member so

Where many organisations might focus on

“We're quite lucky we own our own platforms,

that they could buy shopping for them:

acquisition, by grounding their approach in

and we have our own software, so we can change

doing the right thing for customers Starling

things really quickly and for very little cost

seven or eight weeks of the pandemic kicking in,

is hoping to build a relationship of trust with

compared to many others.”

and I think that's just an example that when we

“We turned that around really quickly, within

the kind of customer who will show loyalty

get feedback from customers we can help, and we

in the long term. With higher than average

can do it quickly.”

retention figures, it looks like it may be paying off.

“You see companies that start off as a challenger focus on just getting numbers in the door, thinking they’ll get to a retention strategy later. That often doesn't work out the right way.

With Starling it's a lot more calculated, and doing the right thing by the customer is part of that

"As a brand, we want to challenge, we want to be creative.

To introduce that kind of innovation, at that kind of speed, and to do it safely, is unquestionably very impressive. How do they do it?

“I think where we do things a little bit differently is our engineers are extremely engaged with our experts and the people that talk to customers. We regularly bring engineers

process.”

We’re big believers, as readers will know,

together with agents to review customers’

in the idea of a loyalty strategy — finding

But having good, adaptable, software

journeys directly, which brings it to life and adds

and keeping the right kind of customers.

platforms doesn’t deliver a good customer

the sentiment into it. That's the key thing for me,

Customers won’t trust you until you have

experience on its own, that also requires a

that if we're looking at some of these processes,

shown yourself to be trustworthy, and one

philosophy of customer-focused innovation.

it's great having data, but let us bring that to life

of the best ways to do that is to demonstrate

Many organisations talk about being

trust in them.

customer-led, but in reality hide

A loyalty strategy only works if you’ve

behind the perceived cost or

found the kind of customers who will reward

difficulty of making

your trust with loyalty, and if you are able to

a change when

deliver a consistently excellent experience.

it comes to

That, in turn, requires an excellent

it.

foundation of good products and slick processes combined with a culture rooted in wanting to do a good job for the customer.

8 Customer Insight Summer 2021 | www.tlfresearch.com

CASE STUDY

with the sentiment and the emotion that comes

always about fixing

with the process.”

problems:

Many companies talk about customer

“Let's reflect upon that.

centricity, or about using a design thinking

This works really well, why did it

approach to embed an understanding

work well? Where else can we apply

of customer needs into their product

that, because customers seem to love that part

development, but in practice this is often

of the process? It's a more collaborative way of

create

hamstrung by the distance between

working.”

a better experience. You

colleagues.

Customer obsession

"...the big thing for me is that we have the right people, and we've done a really good job in terms of recruiting so far.

It's just building on what we've already done and keeping that family feel."

also need to have the right kind of people:

Culture is something we come back

customer-obsessed people

and there is nothing more important

that really love to do the right

when it comes to improving the customer

thing for the customer, and

experience. There's never a shortage of ideas

really listen to our customers.

for making the customer experience better,

Looking at customer service in

whether those ideas come from customers or

isolation, the big thing for me is

frontline staff, but the culture in which those

that we have the right people,

ideas land makes all the difference.

and we've done a really good

“One of the first things I noticed was how

job in terms of recruiting so far.

engaged people were about collecting feedback,

It's just building on what we've

being able to make improvements, and being

already done and keeping that

part of that change. As a brand, we want to

family feel.”

challenge, we want to be creative. It then embeds itself into the culture, which is great

Culture and leadership

because it makes these types of changes really easy because there are so many ideas coming through.”

A cynic might say “that’s all very well, at the moment, but will it scale?”

What are the essentials to build a culture

So, acting as devil’s advocate, I put that

that’s receptive to customer-led change? An

challenge to Paul — how do you retain this

essential starting point is to have good data,

collaborative approach and fleetness of foot

so that you have an accurate picture of the

as you get bigger? Surely it’s going to get

customer experience as it exists right now:

harder?

“I came in at a great point where we started Bringing together customer-facing staff,

“You've got to have these

to again and again in Customer Insight,

He believes that the secret is that

building what is now a very big contact centre

senior people in the business are open and

data and sentiment from customers, and

and a hub for all customer information. We've

personable:

the engineers who are designing journeys

got great data, we’ve got great MI. I'm not

to meet customer needs in a collaborative

the most exciting person to talk to sometimes

contact with people across the business. That

because I absolutely love customer data!”

culture filters down. Every week we’ll have

environment is crucial to make this kind of innovation work. As Paul points out, it’s not

Data is the starting point, but to work

“I've never seen a CEO have so much personal

conversations with her on a personal and

with it you need to understand customers

professional level, and that does carry through.

more deeply. That’s why you need the

It’s an incredibly friendly place to work.”

emotion, you need the sentiment, you need an understanding of the customers that generated that data in order to

If you’re reading this, you probably already believe that happy employees create happy customers, and that’s ultimately good for long term profitability. One thing we know from the employee surveys we do at TLF Research is that employee engagement and customer satisfaction is not a one way street, it’s a virtuous circle. Employees like being able to create happy customers, and one of the best things organisations can do is get

CASE STUDY

systems depend on customer empathy in design), and restricting

Paul Ford

the channels available to

Head of Customer

customers only increases the

Service at Starling Bank

importance of empathy: them the right information, and then get out of their way while they make improvements.

“People listen to the customer regardless of what area they're in, and I think

“We don't have branches. People can't walk

Paul has extensive experience in people

in and meet us, so we have to make sure that

management, systems change and Lean

our communications that are digital and via the

Six Sigma, and is passionate about Voice of

phone are beyond what people would expect.

Customer.

Otherwise we won't build trust. There's the human element – self-service can be quite a cold

https://www.starlingbank.com/

experience, which is very business-driven as opposed to customer-driven.”

We see again and again with our clients

the customer numbers that are disloyal. We want

that's a unique thing about

that customers are quite happy with self-

to get those customers that do deposit highly,

Starling, because you can easily

service, as long as it’s easy to do what they

that use their account for the right things.”

get separated if you work in

want, for most day to day transactions.

an area that doesn’t deal with

It’s when the emotional stakes are raised,

ranks of the challengers to become a fully

customers directly. Everyone

perhaps because they’re anxious that they’ve

established bank? And can they do it without

wants to do the right thing for

been a victim of fraud, or in the case of

losing what makes their culture special?

the customer.”

bereavement, or because something has

The human touch

throughout the business are

room within the challenge of the FinTech arena,

interaction.

we will break out of that arena into the big bank

the call centre for most interactions, but when you do, you really want people to be there.”

The long term So what does the future hold for Starling

This has come to the forefront through the

Bank? I asked about their strategy and

pandemic:

targets, and how those have been affected by

“Empathy and honesty run throughout everything at the moment. Even though a lot

grounded in delivering for customers may be will be the first to tell you whether or not it’s working: “The culture in Starling is something that you

the past year. The answer, in a nutshell, is a

feel. The reviews you see on sites like Glassdoor

loyalty strategy:

show that people are extremely proud to work

of customers are unhappy and frustrated, it's

“We've grown much faster than we had

someone showing empathy and thinking how

originally planned, and we now make a profit.

you would feel if you were in that situation, that

We need to keep growing, but not beyond our

just allows us to be more human. That's what

means – we need to keep the quality. We

we do as a bank, we're not bots behind screens,

need to continue doing a really

we’re people based in Cardiff, based in London,

good job and we'd rather

and we try to get to their level, even if we're not

stay smaller for

able to help them.”

longer, and do

This view might come as a bit of surprise,

It’s not easy to make that transition, as many organisations have found over

the key. There’s no question that customers

empathy is most important, particularly when customers are stressed or frustrated.

arena, but we'll still have that trust base.”

the years, but focusing on a culture that is

focused on customer needs, but it’s at the point of interaction that

“I think if we keep being the grownup in the

gone wrong, that they need that human “It's a differentiator. Customers may not use It’s vital that people

When does Starling Bank move from the

it properly,

after all aren’t FinTechs all about high

than just

technology and ease of use, not empathy?

get

Well, the truth is that good systems are part of creating an empathetic customer experience (in fact good

10 Customer Insight Summer 2021 | www.tlfresearch.com

for Starling, and that really does come through to customers.”

TLF GEMS NEWSLETTER MONTHL CX INSIGHTS FROM MONTHLY RESEARCH TLF RESE

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TLF GEMS PODCAST

A MONTHLY PODCAST FROM TLF RESEARCH ON CUSTOMER EXPERIENCE AND INSIGHT

If you’re reading this and you like podcasts, you should definitely check out the TLF Gems podcast. Each episode Stephen and Greg talk about a different topic related to Customer Experience research and insight.

Search “TLF Gems” in iTunes or subscribe directly using the feed http://feeds.feedburner.com/tlfgemspodcast

RESEARCH

In Part 1, we established that

Almost regardless of the objectives a

segmentation divides customers into groups

worthwhile segmentation exercise would have

such that within a segment customers are

to pass the following tests:

similar but between segments they differ.

That’s always interesting but segmentation is a time consuming and costly exercise so it’s worth doing only if it will help you to achieve one or more clearly defined objectives. These could include helping you to give customers a better experience, to

1. Understand: Does it improve your understanding of customers’ needs and preferences?

2. Identify: Does it identify customers by segment?

3. Reach: Does it enable you to reach customers by segment with tailored messages?

communicate with them more effectively or to sell them more.

But defining the objective(s) still isn’t

Understand As we identified last time, there are

enough. You must also be clear how

many ways of dividing customers into

segmentation will help and what criteria

groups but most of them will not help

it would need to meet to be helpful. For

us to make customers more satisfied.

example, we might say that our objectives

Since the definition of a great customer

are to:

experience is one that meets our customers’

1. Deliver a better experience to customers

needs perfectly, a segmentation exercise

by tailoring it to meet the exact

would fall at the first hurdle if it didn’t

preferences of different segments

improve our understanding of customers’

2. Communicate more effectively with

needs and preferences. A really deep dive

customers through segment-specific

into customers’ preferences and the way

messages.

they make choices will almost always

12 Customer Insight Summer 2021 | www.tlfresearch.com

RESEARCH

demonstrate that your customers are not all the same and will provide a basis for dividing them into groups that would enable us to develop segment-specific experiences that would improve customer satisfaction.

Identify Many segmentation exercises pass the “understand” test by doing lots of research, gathering loads of data and using it to divide customers into groups labelled with catchy names based on characteristics the data say they share. This will often enable the organisation to design several experiences or levels of service calculated to appeal to different segments. But that’s of little business value if you can’t identify which segments your real customers fall into. You therefore need to ensure that any deep dives into understanding customers’ needs and preferences also gathers detailed profiling information that will enable you to identify which segments your real customers belong to.

www.tlfresearch.com | Summer 2021 Customer Insight 13

RESEARCH

improve their satisfaction – but only if customers know about the different product or service offerings and have opted for the most suitable one. To make this happen you need to be able to communicate the right offerings to the right customers. And since customers' satisfaction is often based on perception as much as reality you must continue to tailor ongoing communications by segment.

Sometimes this will be easy. A tour

For direct, database-driven,

operator, for example, might profile its

communications this is relatively

customers according to family life cycle with

straightforward, but customers absorb

such categories as young singles, young

messages that influence their attitudes from

childless couples, young families, families

many other sources. Your segmentation

with older children, younger empty nesters,

research must therefore gather detailed

older singles, older couples.

information about customers’ media habits

But what if you’re a housing association,

including traditional and digital media. This

a local authority or a bank? Family life

is obviously imperative for organisations that

cycle would certainly help the housing

don’t have a database of customers but is also

association but most demographic variables

essential for companies with databases. First,

would not be good differentiators. Dividing

you can’t be at all certain that customers

customers into segments by gender and age

will notice your direct communications,

bands would be poor predictors. Males in

and second they will absorb messages and

their 30s or 40s would have many different

information from many other sources. And

attitudes and preferences about housing, local

finally, of course, most companies also

authority services or banking. Apart from

want to reach potential as well as existing

tailoring services for a few high net worth

customers via suitable media.

individuals, even income would not be a great differentiator for banking.

A good profiling suitability test is whether the information can be recorded and updated on your database of real customers.

Reach The final usability test for a segmentation exercise is “reach”. If you have divided your customers into identifiable groups and you understand their differing needs Nigel Hill Chairman

and preferences you will be able to design segment specific offerings that should

TLF Research

14 Customer Insight Summer 2021 | www.tlfresearch.com

IN THE NEXT ISSUE OF CUSTOMER INSIGHT WE WILL APPLY THE ABOVE CONCEPTS TO A REAL SEGMENTATION EXERCISE.

BOOK REVIEW

New book

YOUR CUSTOMER SURVEY: Using research to build a distinctive customer experience is a book about making the most of your customer survey.

Customer research is ubiquitous now, but much of it is a tick-box exercise focused on reporting a score. Nothing wrong with that, you might think, but with a little more knowledge you can use your survey to uncover genuine insights about your customers and what makes them tick.

If you’re serious about using customer research to design experiences that will create long-term loyal customers, then this is a great place to start (or review) your journey.

Price: £10 + £3 P&P Order your paper copy at tlfresearch.com/shop or search for the kindle ebook version on Amazon.

G U E S T F E AT U R E

How to Build a Future-proof Workforce 16 Customer Insight Summer 2021 | www.tlfresearch.com

G U E S T F E AT U R E

Many businesses are now planning their

utilising apprenticeships to build a loyal

recovery from the impact of the COVID-19

workforce who are trained with the specific

pandemic, which has been a difficult time for

skills needed to keep up to date with new

both the employer and the employee. There is

technologies or practices within their sector.

no doubt that the phrase customer service has

According to a Government survey, 86% of

been usurped by the word furlough but is all

employers said that apprenticeships helped

that about to change?

them develop skills within their workforce

Organisations are now seeing more than

that are relevant to their organisation,

ever the importance of having highly skilled,

meaning employers can mould new recruits

loyal employees to help their business evolve

to meet their business needs.

through the ‘new normal’ way of working.

Modern day businesses should always be

Closing skills gaps

pointing in the direction of change, and adaptability is key to keep a company

Apprenticeships are an effective way for

profitable. Being able to recognise changes

current workers to upskill and progress in

and new trends as they happen and then

their career. Ensuring that employees are

learning the new knowledge, skills and

refreshing their knowledge helps to narrow

attitudes that are needed to cope with the

the skills gap in any business, meaning that

demands of the transforming landscape can

employees are equipped with the insight and

only end positively.

skills needed for an organisation to grow and innovate. Employers can enrol existing staff

Apprenticeships for all

on to a relevant apprenticeship programme, no matter their prior attainment – as long as

Apprenticeships are a valuable option for

they can demonstrate that there is a business

both the employee and the employer. They

need, where additional skills and a greater

are a cost-effective way to help build and

understanding will be achieved. The employee

grow a strong workforce as they help to

will still fulfil the role of their job while they

develop an individual’s skills, knowledge, and

study. By the end of the qualification, they

understanding required to fit key roles within

will have gained the knowledge needed to

an organisation. High quality training helps

enhance your business from within – and

employers to build and sustain a long-term

they’ve probably already started doing it!

edge in their industry whilst also allowing

When you train your staff, they become better

individuals to take the first steps in their

learners. With an agile, fast-learning team,

career, upskill, or change the direction of

you can work more efficiently and effectively

their career completely.

than your competition. By upskilling your

We have entered a new age of

current employees with an apprenticeship,

apprenticeships where training and education

you will be investing in the training and

is accessible for people of all ages, from

education of an individual that you trust and

entry level to CEO. Apprenticeships are

who already has an interest in the business.

no longer exclusively for school leavers

This will inspire staff to move through the

who need an alternative route to A Levels

ranks, producing a progressive workforce,

or University. Many businesses are now

increasing their morale and trust in you.

www.tlfresearch.com | Summer 2021 Customer Insight 17

G U E S T F E AT U R E

training provider we know first-hand how many young people are keen to learn and are eager to begin an apprenticeship programme.

For some roles, we have been literally deluged with applications.

The range of apprenticeships A sector where we have seen apprenticeships have a real impact is customer service. Customer service apprenticeships enable businesses to train their staff to deliver the best service to the consumer as possible. This is going to be especially important for the hospitality and retail industries as the competition will be high coming out of the pandemic.

It gives people the opportunity to gain an understanding of customer insight and why continuous improvement is important in a service environment. Customer service is a complex profession which includes a lot more than being polite to customers, it involves problem solving, finding solutions under pressure and the knowledge to make the correct delivery decision in different situations.

It is obvious that experience is vital when it comes to a career in customer service but

People development

recently at organisations like The Hut Group,

building knowledge around best practice is

who have become an online retail force in

just as important therefore, giving individuals

the last decade. They have enrolled over 200

the opportunity to do both through an

help young people get their foot in the door

new staff members onto apprenticeships in

apprenticeship is the perfect solution. It is

and gain real life work experience, whilst also

customer facing roles and embedded them as

essential that businesses who are customer

earning a wage. I have seen this first hand

part of their people development strategy.

facing realise the need to train their staff to

Apprenticeships are a fantastic provision to

The value of real work experience has

be able to compete, as businesses who do

increased in recent times as it shows

not invest in their staff often get overtaken

employers’ commitment and motivation.

by those that do. In a Government survey,

Steve Morris

However, due to the Coronavirus pandemic,

86% of employers said apprenticeships

Commercial Director at

there is an increasing number of young

helped them develop skills relevant to their

Learning Curve Group

people that have found themselves in

organisation and 74% said apprenticeships

difficult situations regarding employment

helped them improve the quality of their

and/or training opportunities. Currently,

product or service.

Steve has over 20 years’ experience gained in the world's largest and most successful recruitment, training and HR consultancies.

Steve has a deep expertise within the world of work and learning which he uses to deliver Learning Curve Group’s core value of ‘transforming lives through learning’.

Steve.Morris@LearningCurveGroup.co.uk

unemployment amongst the 16-24 age range

There are multiple levels of

in the UK is at 14.3%, equating to a large

apprenticeships from those which equate

talent pool that businesses can have access

to GCSEs all the way up to a master’s

to and could be working with. Many young

degree, including specific apprenticeships

people have grown up with exposure to digital

in Customer Service. It is possible for an

technology and we know from experience

ambitious apprentice to continue lifelong

they can bring a new confidence, approach,

learning by progressing from a level 2

and outlook to their new employers. As a

(intermediate) to a level 7 (master’s degree)

18 Customer Insight Summer 2021 | www.tlfresearch.com

G U E S T F E AT U R E

In a Covid world of change the words

over years of education and training to

important that employers realise the true

expand their skills in their profession. This

value of apprenticeships and how they can

of the consultant Peter Drucker resonate

is valuable for businesses because it allows

have a lasting impact on their business, so

more than ever “We now accept the fact that

employers to create a workforce that is

they can grow a loyal, future workforce and

learning is a lifelong process of keeping abreast

trained effectively to keep up to date with the

experience the vast number of benefits that

of change. And the most pressing task is to teach

changing ways of working and new trends

high quality training provides.

people how to learn.”

whilst also improving employee engagement.

On-the-job training As a training provider, we have found that businesses have previously been reluctant to hire apprentices because of the 20% required off-the-job training, where the apprentice had to attend a college facility away from the workplace. Now, businesses can combine work and study by mixing on-the-job training and traditional learning, with the help of an Apprenticeship Trainer.

This training can take place in the workplace where the apprentice can learn new skills suited to the business. Apprentices can immediately put their knowledge into practice and make an instant impact by contributing to improving productivity.

Learning Curve Group work with over 4,500 employers a year and, as one of the UK’s largest and most diverse training providers, we have seen how apprenticeships can transform lives and also transform businesses. There is more funding available to businesses now than ever for hiring an apprentice. Not only is there funding for the cost of apprenticeship training, but there are also grants which are paid directly to the business. Employers are now eligible to receive up to £4,000 for each new apprentice they take on. This money can be used for training, uniform, or be put towards a business recovery plan.

Apprenticeships are a way for young people to get their foot on the ladder whilst also offering an opportunity of lifelong learning for people who want a career change or to advance their skills to progress. Getting young people engaged in advancing their customer service skills can encourage them to build a career in the profession whilst also giving current employees ambition to work towards moving up the ladder in the business. It is

www.tlfresearch.com | Summer 2021 Customer Insight 19

RESEARCH

U KC S I L

S E AT

SULTS E R T

JULY 2021

Latest Headline Results

The UKCSI is an independent, national

The UK Customer Satisfaction Index (UKCSI) is 77.4 (out of 100), 0.4 points

benchmark of customer satisfaction published each January and July across 13

higher than in July 2020 and 0.6 points

The latest UKCSI report was released at the

above the January 2021 UKCSI.

sectors of the UK, conducted by The Institute

beginning of July 2021. Here are some of the

of Customer Service. The UKCSI measures

highlights. The full report, published by The

customers’ experiences and relationships

Institute, is available to download free on their

problem with an organisation, the highest

with organisations on 26 metrics which are

website: instituteofcustomerservice.com/ukcsi

rate since 2009 but satisfaction with

based on customer priorities. For over a

complaint handling is at its highest ever

For more detail, including scores for all

decade it has provided us with a biannual

named organisations, it is also possible to

snapshot of how UK consumers are feeling.

purchase in-depth reports on each sector.

78.0 77.3

14.9% of customers experienced a

78.2

77.9

77.4

77.8

78.2

78.1

77.9

77.4

77.1

76.7

level.

77.1

77.0 76.3 76.0

75.6

77.4

77.7 76.9 77.0 76.8

76.2

75.2 74.1

20 Customer Insight Summer 2021 | www.tlfresearch.com

Jul-21

Jan-21

Jul-20

Jan-20

Jul-19

Jan-19

Jul-18

Jan-18

Jul-17

Jan-17

Jul-16

Jan-16

Jul-15

Jan-15

Jul-14

Jan-14

Jul-13

Jan-13

Jul-12

Jan-12

Jul-11

Jan-11

Jul-10

Jan-10

Jul-09

Jan-09

72.0

RESEARCH

The Public Services National, Retail (Non-food) and Telecommunications and Media sectors have each improved by at least 1 point, compared to July 2020. Average customer satisfaction in the Public Services (Local) sector fell by 1.6 points.

The Retail (Non-food) sector has

its highest ever score.

improved by 1.2 points to 81.2 and is the

Within the Transport sector, average

highest rated sector.

satisfaction for experiences with Rail and

Public Services (National) has also risen by 1.2 points, to 77.3, its highest ever score.

Coach / Bus companies improved by 2.4 and 1.3 points respectively. But average

The Telecommunications and Media sector is 1 point higher than a year ago and

satisfaction with Airlines is 70.5, 3.8 points

like Public Services (National) has registered

lower than in July 2020.

first direct, John Lewis and amazon.co.uk are the highest rated organisations.

They are the only organisations who were also rated amongst the top 10 in July 2020.

Jul-21 Rank

Organisation

Sector

Jul-21 Score

Jul-20 Score

Jul-20 Rank

Change in score Jul-20 to Jul-21

1

first direct

Banks & Building Societies

86.6

84.2

3

2.4

2

John Lewis

Retail (Non-food)

84.4

85.3

1

-0.9

3=

Amazon.co.uk

Retail (Non-food)

84.0

83.3

6

0.7

3=

Suzuki

Automotive

84.0

78.9

79

5.1

5=

Swinton

Insurance

83.9

74.9

186

9.0

5=

Tesco Mobile

Telecommunications & Media

83.9

82.8

12

1.1

7=

Home Bargains

Retail (Non-food)

83.8

81.0

27

2.8

7=

SAGA Insurance

Insurance

83.8

81.2

24

2.6

9=

Greggs

Leisure

83.5

82.1

17

1.4

9=

Jet2holidays.com

Tourism

83.5

80.2

45

3.3

9=

Scottish Water

Utilities

83.5

77.3

128

6.2

9=

Specsavers

Retail (Non-food)

83.5

81.2

24

2.3

p Increase in UKCSI score of less than one point

q Fall in UKCSI score

p Increase in UKCSI score of one point or more

Customer experience during the Covid-19 crisis Overall customer satisfaction was higher for experiences recorded in spring 2021 than

Customer responses that make up the July 2021 UKCSI

for those in autumn 2020.

The customer data used in the July 2021

Index scores out of 100

UKCSI is based on survey fieldwork collected between 14 September and 12 October 2020 and between 8 March and 6 April 2021.

Therefore, the latest UKCSI data was collected after the return of strict lockdown measures in large parts of the UK from 31 December 2020 and before the re-opening of non-

77.0 July 2020 UKCSI

76.8

76.6 Responses given 14 Sept 12 Oct 2020

Jan 2021 UKCSI

78.2

77.4

Responses given 8th March 6 April 2021

July 2021 UKCSI

essential retail on 12 April 2021.

Evidence from the latest UKCSI data shows that average customer satisfaction for experiences recorded in March and April 2021 was 78.2 (out of 100), 1.6 points higher than those recorded in the previous period (September – October 2020).

www.tlfresearch.com | Summer 2021 Customer Insight 21

RESEARCH

The Transport and Tourism sectors show the biggest improvement in overall customer

The Institute conclude their review of

satisfaction, when comparing data for customer experiences recorded in March – April

the state of customer satisfaction in

2021 and September – October 2020.

the UK by reflecting on key lessons for organisations from the Covid-19

27% of customers have experienced a change in customer service during the Covid-19 pandemic.

pandemic and implications for customer experience;

1

In the context of Covid-19, organisational purpose is even more critical to success

2

of those customers who saw a change

Combining the best of digital and human interactions to design experiences around customer needs

55% positive change

24%

3

negative change

Developing a blend of digital, interpersonal, applications development and customer experience skills

Customers who have experienced a positive change in service during Covid-19 are slightly more satisfied than those who have seen no change. But customers who have experienced a negative change in service are much less satisfied than other customers.

4

Complaint handling is essential to reduce customer dissatisfaction but is not enough to drive further

Average customer satisfaction index scores (out of 100)

improvements in satisfaction and engagement

Overall UKCSI 77.4

81.9

5

Environmental and social impact are increasingly relevant to an organisation’s customer proposition

6

Proactive communication and engagement to maintain and develop trust

61.5

7

Developing flexibility and innovation to respond to change and create opportunities

80.6

8

Customer satisfaction and employee engagement have

Customers who have experienced a positive change in customer service during Covid-19

become important measures of

Customers who have experienced a negative change in customer service during Covid-19

corporate governance

No change

The main positive changes in customer experience during the pandemic are better

9

scheduling of appointments, support to improve well-being, and proactive communications.

A long-term focus on customer service to enable sustained business performance

49% of customers who experienced a new idea or improvement said they were more likely to buy from that organisation in future. 24% of customers feel that organisations have sometimes used the Covid-19 situation as an excuse for lower levels of service.

22 Customer Insight Summer 2021 | www.tlfresearch.com

10

Learning the lessons from Covid-19 to prepare better for future shocks

G U E S T F E AT U R E

Reward Gateway takes a fresh approach to workspace use, driving engagement and productivity through its activity-based model. As more businesses welcome employees back to the office, Cat Lewis – Reward Gateway’s Head of Global Engagement and Internal Communications – explains how this alternative way could help your business make best use of its space.

In a post-Covid world, businesses are

choose from eight work modes. And multiple

starting to think more deeply about flexible

workspaces to support the work they needed

your office space, I’d recommend taking a

working. Yet, on social media, debate is

to do. Five years on – and with additional

bottom-up approach. Talk to your employees

confined to home or office-based working,

post-Covid insight – I’m here to share what

to find out about the work they do and

or a hybrid of the two. I believe that this

we did and how we did it with you.

the group sizes they typically work in for different tasks. This will give you a complete

represents a missed opportunity to drive additional benefits for employees and firms alike.

Introducing activity-based work modes

understanding of the activities associated with every job role. And clarity about the workspaces needed to support them.

In 2016, the lease came up for renewal on one of our London offices. So we seized

If you want to think about how best to use

It’s easy for senior leaders to make

This is what we did at Reward Gateway.

the chance to re-think our workspace. By

assumptions about how your employees

The research produced eight different work

exploring how our employees work, their

work. But these beliefs might not be right.

modes each of which handily matched to one

behaviours and habits, we created an activity-

And when you’re investing money into

of our company values. As the image on the

based work model to inform our office

your workspace with the goal of driving

next page shows, we subdivided our eight

design. With a detailed change management

engagement and productivity, incorrect

work modes into the option to work from

plan, we empowered our employees to

assumptions could be expensive.

home or the office.

www.tlfresearch.com | Summer 2021 Customer Insight 23

G U E S T F E AT U R E

RECOMMENDED HOME MODES

WHERE TO WORK GUIDE

I feel

I can

This supports our value to

These workspace elements support my success

RG recommends working from

• • • • • • • • • •

Retreat

Plugged In

1-to-1

Recharged

Accomplished

Supported

De-stress Reflect Refocus Decompress Relax Balance Meditate Reset Wellbeing session Read

• • • • • •

Produce Flow Focus Concentrate Accomplish Work on complicated task • LTTV virtual sessions • Virtual volunteering

We are human

• Quiet and private space • Ability to step away • Being empowered to take time

Home

24 Customer Insight Summer 2021 | www.tlfresearch.com

We work hard

• • • • • • • •

Headphones Music No distractions Desk Wifi Charger Monitor Clean desk

Home

• Hold client demos • Meet and strengthen relationships • Mentoring • Make decisions • Address concerns • Provide feedback

We speak up

• WFH Desk Bundle • Well lit • Privacy encouraged • Headphones • Video conferencing

Home

G U E S T F E AT U R E

RECOMMENDED OFFICE MODES Meeting Little

Meeting Large

Buzzin’

Briefing

#rgfun

Connected with my team

Connecting with my clients

Collaborative and productive

Aligned

Happy

• Align with my team • Collaborate • Inspire • Share • Problem solve • Learn • Communicate • Celebrate • Boom!Fest

• • • •

• Brainstorm • Connect with teams and clients • Hold demos • Plan • Learn • Focus • Huddle • Bond • Share • Set goals

•

• • •

We push the boundaries • Bookable spaces that allow social distancing or video conferencing • Privacy encouraged

Office

We think global • Bookable large spaces that allow social distancing • Seamless connectivity • High energy • Bright and airy • Transparency

Office

Do lively work Mindmap Create ideas Show I am available Talk on the phone and video calls Shadow and mentor Have impromptu meetings Work side by side

Learn Onboard Train Network Align Celebrate Interact Inspire EP!C events

• • • • • • • • •

We delight our customer

We own it

• Comfortable noise • Movable chairs • Teamwork • Collaboration with team mates

Office

• • • • • • • • •

• Seamless connectivity to global teams • Large spaces • Digital displays • Whiteboard • Sticky notes • Notepads & pens.

Office

Socialise Play Drink Gather Celebrate Learn Team wellbeing EP!C events De-stress

We love our job • • • • • • • •

Games Food Activities Events Dogs Downtime Well Experience Manager support • Non-disruptive space

Office

www.tlfresearch.com | Summer 2021 Customer Insight 25

G U E S T F E AT U R E

At Reward Gateway, a new office lease

anxiety about doing so. Which supports

• Start small – we’ve taken an iterative

put us in the enviable position of being

people’s mental health and frees them to

approach of continuous improvement to

able to remodel our working environment.

focus on work priorities.

our work modes and workspaces. We’ll

We used our work modes to inspire the

• Concerns about presenteeism will reduce.

invite a small number of employees back

redesign of our London office to include a

When people know they don’t have to be

into the office post-Covid to ensure our

range of different spaces. Within the office

seen to be trusted, they’ll feel free to work

refreshed work modes and spaces support

environment, employees can choose to work

from wherever makes most sense. This

delivery. Then we’ll continue to consult and

from:

boosts productivity.

• The Annex with 18 workstations and desks for individual, focused work • Tech-free zones like our Attic, Garden and Library for quiet time or socialising • Small and large meeting rooms for more

• Giving your team the tools to make the right decisions about how and where they

meetings aren’t going to go away, so

work builds trust. Which leads to higher

we asked our employees to tell us what

levels of engagement and performance.

makes a great online meeting. We’ve

• Manager decision making will reduce with

intimate meetings and bigger groups,

everyone on the same page and employees

collaboration, training and presentations

self-directing. This frees up time and

• Dens, Study Booths and The Snug for one-

headspace for other priorities.

communicated tips – like ‘make a conscious effort to ensure a balance of voices’ – to help us hold better calls.

• Change takes time – so allow plenty of it for your managers and employees to adjust

on-ones and individual work With so many different workspaces,

adapt to meet changing needs.

• Define good meeting etiquette – online

My key learnings from our rollout

to new ways of working. We’re giving our managers four weeks to review our

employees can move from one place to We first implemented our work modes in

refreshed work modes guide. And we’ll

doing throughout their office-based days.

2016. Five years on, and with a long spell of

provide employees with a one-pager to

And employees know when to work from

home working under our belts, I’ve refreshed

home and the types of activities they can

our work mode guide to include some

carry out there.

additional points:

another. This supports the work they’re

• Don’t mention hot-desking – if you decide

Clarity brings comfort plus a range of other benefits Providing clear guidance around the workspaces you have does much more than help your employees succeed in their roles.

help them shape their work days.

• Measure success – there are two key measures of success for me. The first is when people start using our work mode

to take a more flexible approach to desks,

language. For example, by adding ‘plugged

avoid the name ‘hot-desking’. This can

in’ meetings to their diaries. The second

make people feel that something’s being

is by measuring sentiment. A pre- and

taken away. Instead, talk about working

post-change survey revealed what was

more flexibly or agile working.

working and what needed to be tweaked

• Onboard new hires in the building – our

for our original rollout. We’ll repeat this

Being clear about where to work and when

onboarding process can be delivered

survey as people return to the office after

delivers other advantages too:

remotely or in person. But we’ve found that

the pandemic.

• Direction gives people permission to work

face-to-face is best. We recommend that

in the place that’s right for their day. This

all inductions take place in the office with

removes any guesswork and associated

full, in-person support from the manager.

Optimise your workspace Your office space will likely be an expensive budget item so it’s important to ensure it works for your employees. To make

Catrin Lewis

the most of your space you need to truly

Catrin Lewis is Head of Internal Communications and Employee

understand what your employees do and how

Engagement at Reward Gateway, the HR Tech business.

they work. This will enable you to make the best use of your existing workspace. Or even

Catrin is a published author, regular conference speaker and spends time coaching employee

create alternative spaces to help your teams

communications professionals in a wide range of sectors. Catrin runs the Internal Communications

succeed. Follow this up with long-term

& Employee Engagement Network for Tenzing, connecting HR professionals across the portfolio.

change management and you’ll leverage all available spaces ensuring the engagement

https://www.rewardgateway.com/

and productivity needed to help your business thrive.

26 Customer Insight Summer 2021 | www.tlfresearch.com

WEBINARS ON DEMAND 40 of our webinars are available free and on demand at www.tlfresearch.com/webinars/#past-webinars Here are some of the most popular

CSAT, NPS, OR CUSTOMER EFFORT Is your key metric the right one for your business? This webinar walks through the pros and cons of CSat, NPS and Customer Effort with some practical tips to minimising the disadvantages. Chris will provide examples of when each metric and a basket of metrics have worked well.

THE CUSTOMER EXPERIENCE LANDSCAPE 2021

USER STORIES & CUSTOMER JOURNEY MAPPING

Picking up on our research into customers’ changing priorities, we’ll take a closer look at how this may vary by customer type, and what that means for your planning. This webinar will cover: How attitudes and behaviour vary by demographics, new research that reveals the different personas emerging amongst lockdown customers, how those personas may translate to post-lockdown segments, and the impact of customer attitudes on their behaviour and future loyalty

This is one of our most popular training subjects and helps you understand how things look from your customers’ point of view. Mapping all the touch points of a specific customer journey is a must for designing positive experiences. We can’t give you an in-depth guide to customer journey mapping in 30 minutes, but we can give you an outline of best practise, what to focus on and common mistakes.

NPS BEST PRACTICE

CUSTOMER EMPATHY – POWER OF A MIRROR SURVEY

If you’re using Net Promoter Score (NPS) as your headline measure, this webinar is a must. NPS should be the starting point for customer insight, not the ultimate goal. We’ll be discussing a range of best practice and latest thinking around the metric, from how to ensure a robust measure and common mistakes, to gaining in-depth insight and practical hints and tips to help drive change.

Do your colleagues see things the same way as customers? Improving their customer empathy can help them understand the how and why of customer feelings and as a result they will be better prepared to solve their problems and meet their needs.

A mirror survey can help you identify the difference between customers and internal colleagues’ perceptions, for example what your customers see as their main problems versus what your customer service team believe they are. This is a powerful tool and can help you prioritize areas for improvements.

TURNING INSIGHT INTO ACTION

HOW SERVICE BLUEPRINTS CONNECT THE CUSTOMER & INTERNAL VIEW

There is no point doing customer research unless you’re planning to do something with the results. Action planning is the best way to ensure you are using the insight gained from your customer research to drive positive change to the customer experience. Greg will guide you through best practice when creating an action plan and show you some practical examples of how they can work.

Service Blueprints can take Customer Journey Mapping to the next level.

Corresponding to a specific customer journey, which could involve multiple channels, touch points and business functions, Service Blueprints can help ensure a consistent customer focused experience. In this webinar, Stephen will be discussing how Service Blueprints can help you connect the customers' experience with the views of your internal teams and business functions.

Watch online at tlfresearch.com/webinars/#past-webinars

G U E S T F E AT U R E

28 Customer Insight Summer 2021 | www.tlfresearch.com

G U E S T F E AT U R E

Influence

Your organisation is having a

doublethink, that sort of thing. All very dramatic! But the reality of influence is not

conversation with its users every day. Are you doing everything you can to nudge those

You are a wielder of influence. You’re

users in the right direction? Because if you’re

wielding it in favourable conversations about

not, you’re leaving success on the table!

workload with colleagues, when you put your

nearly that frightening or dystopian. It’s everyday things.

It’s peer-pressure at work,

authority behind a resolution you believe in

‘recommendations’ from an online retailer,

of how to use language, structure, and

and when you send emails outlining your

conversations with friends and other normal

heuristic bias to influence decision making.

preferred plans for a project. But you’re also

things like that. You see, influence can be a

subject to influence: when you navigate the

lot blander on the surface than what you’d

behavioural science, starting with the

menus of your favourite website, stamp a

probably expect, and it’s everywhere…

importance of influence. Read on

loyalty card at your local coffee shop and

In this series, we get into the nitty gritty

This article introduces our crash course in

This is a key feature of influence in

especially when you’re deliberating with a

the digital age, and what makes it a

partner about where to eat out! But don’t

sophisticated driver of human behaviour.

be alarmed - all of these things are okay!

The truth is, we’re all subject to some level

and what

Because, for the most part, being a subject

of influence all of the time. It’s happening

this means

and wielder of influence is a key part of

right now. And that’s what makes influence

for your

normal social and professional life.

in a general sense subversive – it’s hard to

to discover why you should care about influence and ‘nudging’,

customer journey!

Recognising influence in decision making

track or quantify - which makes influencing,

and becoming a better wielder of positive

nudging and priming difficult without the

influence is important! Commanding

right skill set.

influence has serious benefits: you’re more likely to successfully negotiate a pay

So, what exactly is influence?

rise, you can enhance your business by implementing a better customer journey,

Influence has many facets, as we shall

and you can improve the productivity

see over the course of this series, and it’s

of your team through carefully framed

important to recognise them. In the context

language and priming.

But there’s a problem.

Influence is a

of this post, we’re considering influence at a high level: as useful language to describe what occurs when behaviour is modified,

notoriously tricky

by something beyond a subject’s control.

phenomenon to

In the next post, we’ll get stuck into some

pin down. First

specifics, but for now, let’s introduce some

thoughts about

initial distinctions:

it tend to be rather Orwellian – brainwashing

Influence may be positive or negative

political prisoners,

It doesn’t seem obvious how influence can be positive, and it’s quite a paternalistic notion, but often we’re being influenced for our own benefit. “Smoking Kills” labels on cigarette boxes and “Change your password” reminders being some straightforward examples.

On the other hand, without realising it, you may be pushed in a direction you’d

www.tlfresearch.com | Summer 2021 Customer Insight 29

rather not have gone. It’s common practice

examples of overt influence. The difference

applied. Nudges are normally simple but very

online - websites often gain compliance

is in whether or not you can actively perceive

specific, taking place within a given choice

on tracking cookies and privacy policies by

the intention to modify your behaviour.

architecture – the context and structure within which a decision takes place.

exploiting our habitual biases and using misleading UI. This is known as dark

Influence and your journey

future post.

These concepts have been widely popularised by Richard Thaler, through

patterning, which we’ll explore deeper in a In the context of your customer journey,

his extensive academic work and excellent

influence you exert is going to be positive.

books – ‘nudge’ and ‘Misbehaving: The

You’re trying to help a customer do the right

Making of Behavioural Economics’. As a

thing. And hopefully, it can be imbedded

method of mass behaviour change, tailored

in your technology. But above all, it should

nudges have proven extraordinarily effective.

be considered an environmental, personal,

The UK’s own Behavioural Insights Team

ads and big data into the lexicon of our

and social phenomenon. What a user

has expanded across 31 countries to help

everyday lives, serves as an enormous

perceives and interacts with within their

governments and NGOs nudge away major

source of influence and not always in the

environment may be a source of influence,

societal problems.

ways you might expect. Worry less about

as well as their beliefs, motivations, and

“Influencers” on Instagram, and instead

individual differences. Adding further

navigates a series of ‘choice architectures’,

consider how user-data, cognitive biases and

complication is a customer’s interactions

with interactions likely happening across

clever UI design can be used to manage your

via conversations: with advisors, messaging

several different modes. Whether it’s

behaviour. Here’s a hint: decision structures

services or artificially intelligent things

scrolling a webpage, speaking to an

set the parameters for choices.

- in ContactEngine’s case, proactive

advisor, or responding to an email, these

conversational AI. These factors determine

architectures come about within a mixture

the context of the customer journey.

of reactive, and sometimes proactive,

Influence is imbedded within the technology we use every day The imbedding of social media, online

Influence can be covert and subliminal or overt and directive Covert influence is deeply related to the

interactions. In reactionary customer

What about Nudges and Choice Architecture?

journeys, it can be awkward to establish consistently effective and specific nudges.

This is due to a lack of control over context,

technological factors mentioned above, though it’s always been a thing. Think about

In your customer journey, a user

Influence is a woolly and high-level

how you’re shown or recommended certain

concept. So, if you want to do it reliably,

products over others, or what results you’re

you must do so in a targeted and strategic

shown within a search engine. These are

way called ‘nudging’. If you’re not familiar,

both examples of attempts to subliminally

this is the art of using behavioural insights

modify behaviour. On the other hand, “click

to move a user towards choosing or doing

here” buttons and speed cameras are good

certain things over others. It’s influence

which leads to reduced nudging specificity.

How can nudges benefit your business?

The better approach is to be proactive and use targeted, outbound conversations to influence the customer towards a successful outcome. By working within a proactive framework, it’s possible to influence customers using tailored interventions at

Albert Evans

specific decision points. These interventions

Implementation Analyst, ContactEngine

will use specific measures, backed by

You can find out more about ContactEngine’s work here: https://www.contactengine.com/insights/how-leading-communications-service-providers-are-reducing-the-cost-to-serve-customers-with-proactive-communications/

strong evidence, within a context that your organisation has already determined!

Identifying where a user is susceptible to influence in this process and how you can intervene to nudge your customer is the goal

30 Customer Insight Summer 2021 | www.tlfresearch.com

G U E S T F E AT U R E

of this series of articles. By the end, you’ll

What’s next?

decision science, because understanding the systems people use to make decisions is vital

have the knowledge required to identify what kind of cognitive process is occurring, at any given decision point.

Your practical understanding of decision

Whether it’s developing an appointment appointments, a troubleshooting solution

making, heuristic bias and error, and the

that allows your customers to do without an

methodology behind implementing nudges,

engineer’s appointment or messaging service

will allow you to target these biases – for

which allows a user to engage with their

your business and users' benefit. You’ll also

government’s services, these are the kinds

better understand your decision-making

of benefits you can expect, if you command

processes and those of your team, which

influence within your customer journey.

should help you avoid some very common heuristic errors!

At ContactEngine, we take decision

In upcoming articles, I’m going to share with you the science behind how we organise conversations and the

making, influence and choice architecture

practical applications of behavioural

very seriously. Because this is the approach

science. In a nutshell, a few ways

we use when influencing our client’s

of enacting ‘wise interventions’,

customers and users, and it’s a vital

using ‘nudges’ and a

component of our iterative process of

limited understanding

improvement. At the heart of our solutions is

of choice architecture.

an intelligent conversational AI, listening to

So far, we’ve been

and guiding users along a bespoke journey.

setting the tone

This guided customer journey should

and you should

proactively solve a problem for our client.

now have a

By using an advanced conversational AI,

preliminary

we are able to prepare tailored responses to

understanding

a broad set of contexts and meanings that

of these

customers respond with. This allows us to

concepts.

prepare wise interventions, carefully select

In the next

influential language, test different outcomes

article, we’ll

for success, and maintain control of context

delve into a

throughout the journey.

three-minute

Understanding the power of the language

when trying to manage them.

booking journey that reduces missed

crash course in

you use is crucial because the way you structure conversations can secure powerful outcomes. We conduct communications at scale, so even small effect sizes can have enormous business impact. This means saving our customers anywhere between £10 million and £90 million pounds per year in op ex, reducing carbon footprints, and dramatically improving customer service.

www.tlfresearch.com | Summer 2021 Customer Insight 31

Consumer Insight The data for the UKCSI article came from TLF’s panel.

The TLF Panel offers you an easy way to access the views and opinions of UK consumers. It’s a flexible research solution with a range of uses, including: Insight into consumer behaviour, attitudes and usage Facts and figures for compelling content and PR stories Brand awareness and competitor surveys Testing advertising and product concepts Recruitment for focus groups and interviews

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In depth reporting and analysis Demographic splits as standard

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BOOK REVIEW

!

!

Cal Newport has gained quite a

and it takes time for us to return to a state

productivity with his previous books So Good

of focused attention on the task at hand.

They Can’t Ignore You, Digital Minimalism

The human brain is simply not built for

and Deep Work, all of which are useful and

multitasking.

thought-provoking. In A World Without

!

This is widely accepted when it comes to

Email his thinking takes a step up from the

certain jobs, like coding, but it’s true of all

personal, and that’s what makes this such a

of us, even those that fall into what Newport

profound and important work.

calls “manager” or “minder” roles, as

This book focuses on productivity as a

opposed to “makers”. It’s just not a good way

system problem, rather than a personal

for any of us to work, and the research proves

problem. Newport engages with the most

this over and over again.

common stumbling block all of us experience

!

brains incur the costs of task switching,

following as a guru in the world of personal

“In the short term, running your team on a

when we try to use fashionable productivity

hive mind workflow might seem flexible and

systems — the world won’t let us! The idea

convenient, but in the long term, your progress

of personal productivity is a dangerous red

towards what's important will be slowed.”

herring, when we should be looking at how we work together at an organisational, or

Email makes us miserable

even societal, level.

Email is not the only culprit in this

The hyperactive hive mind

hyperactive hive mind workflow, and simply banning email (as some organisations

Newport refers to the way most of us work nowadays as the “hyperactive hive mind”: “The modern knowledge work organization

have done) is unlikely to be the solution.

Nonetheless, the rise of email — enabling free, direct, asynchronous communication — does

truly does operate like a hive mind — a collective

seem to have driven the trend towards this

intelligence of many different brains tethered

distracted, reactive, way of working. Not only

electronically into a dynamic ebb and flow of

that, the research shows that email makes us

information and concurrent conversations.”

miserable and stressed.

We’re all constantly interrupting each

“As long as we remain committed to a

other, even though it is well known that good

workflow based on constant, ad-hoc messaging,

quality knowledge work requires sustained

our Paleolithic brain will remain in a state of

attention. Every time we’re distracted our

low-grade anxiety.”

www.tlfresearch.com | Summer 2021 Customer Insight 33

!

BOOK REVIEW

The emails we send are less clear than we imagine, our ability to correctly interpret the

flexibility…but at what cost?

“Introducing smart production processes

emails we receive is less good than we think,

to knowledge work can dramatically increase

and emails are too easy to send. The result is

performance and make the work much less

a blizzard of miscommunication. How many

draining.”

emails back and forth does it take to arrange

!

Just to reiterate, this doesn’t mean that

something as simple as the date and time for

the work itself or its outputs are dictated

a meeting? No wonder we’re stressed.

by process, but that the workflow and coordination of the work should be. In

Structured autonomy

concrete terms, Newport suggests that tools such as task boards (e.g. Kanban, agile,

Part of the problem is our resistance to the idea that knowledge work can be structured in the same way that a factory production

Trello) would help to reduce unnecessary communication and coordination.

“Designing rules that optimize when and how

line is. This is an idea that I found myself

coordination occurs in the workplace is a pain in

instinctively rebelling against — I’ve always

the short term but can result in significantly more

felt that autonomy is incredibly important for

productive operation in the long term.”

!

the kind of work that I do.

Newport explains that he is not talking

Communication versus doing

about copying assembly-line methods.

Part of the problem is that we spend

deployed within a consistent workflow

a large proportion of our time on admin,

that is designed to maximise what he

communication, and coordination rather

calls “attention capital” (i.e. our ability to

than on producing useful outputs. We need

concentrate on useful tasks).

to find ways to preserve periods of sustained

“The productivity of the knowledge sector

attention for doing the work. Tools such as

can be significantly increased if we identify

scheduling assistants, “office hours”, and

workflows that better optimize the human brain’s

managing client expectations on availability

ability to sustainably add value to information.”

and communication will all help with that.

To do this we need to separate out work

“If you design workflows that allow

execution (which is where the autonomy

knowledge workers to spend most of their time

comes in) from workflow. Those workflows

focusing without distraction on the activities for

should be designed to minimise context

which they’re trained, you’ll produce much more

switching and communication overload, both

total value than if you instead require these same

of which are characteristic of the hyperactive

workers to diffuse their attention among many

hive mind model.

different activities.”

Production process thinking

Conclusion

One of the lessons from industrial

It’s been fascinating to follow Newport’s

productivity is that what’s important is not

evolving thoughts on the power of managing

just how you work, but how you coordinate

attention to create valuable work through his

the work. In knowledge work we’ve spent

books and online. A World Without Email is

far too much time trying to make individuals

important precisely because it isn’t a self-

faster and more productive, without really

help book about personal productivity, it’s a

addressing processes. We have tended

call to arms to unpick the damage that email

to think that a lack of process creates

has done to our ways of working, and to design something that works better.

This book doesn’t necessarily have all the answers (and nor does it pretend to),

Stephen Hampshire

but it does lay out important fundamental

Client Manager

principles that will underpin those answers.

TLF Research

It’s up to all of us to find ways to turn those

stephenhampshire@leadershipfactor.com

!

Autonomy can be much more productively

principles into better ways of working within our own organisations.

34 Customer Insight Summer 2021 | www.tlfresearch.com

!

!

Customer Insight Magazine is created and published in house by TLF Research.

The magazine is our way of sharing features and latest thinking on creating an outstanding customer experience. We hope you enjoy reading the magazine as much as we enjoy creating it.

If you’ve got an interesting customer experience story to tell and would like to feature in the magazine, we’d love to hear from you. Please contact our editor Stephen Hampshire for more information.

Email Stephen at stephenhampshire@leadershipfactor.com or give him a call on 01484 467014

ABOUT TLF RESEARCH We are a full service customer research agency. Specialists in customer insight, we help our clients understand and improve their customer experience.

Get in touch to find out more about what we do.

Visit us online at tlfresearch.com or call 01484 517575

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UNDERSTANDING CAUSATION FROM A/B TESTS TO MODELLING Wednesday 11th August 2021 11:00-11:30am

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DO YOU NEED TO MEASURE CUSTOMER EFFORT?

Wednesday 1st September 2021 11:00-11:30am

Wednesday 15th September 11:00-11:30am

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Wednesday 22nd Septemeber 11:00-11:30am

Wednesday 6th October 2021 11:00-11:30am

Do you struggle to find the key pieces of customer insight from your research? We’ve all been there with really detailed presentations that provide a wealth of useful information, but the key takeaways can be lost. In this webinar we talk through techniques for finding the insight that really matters and how to share effectively this information to make a positive impact.

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Corresponding to a specific customer journey, which could involve multiple channels, touch points and business functions, Service Blueprints can help ensure a consistent customer focused experience. In this webinar, Stephen will be discussing how Service Blueprints can help you connect the customers experience with the views of your internal teams and business functions.

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