Featuring Shep Hyken, customer service and experience expert

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Episode Transcript

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The following is a paid podcast.iHeartRadio's hosting of this podcast constitutes neither an
endorsement of the products offered or theideas expressed. It's time for Mind Your

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Business on seven ten w R andthe iHeartRadio Network to present the weekly business
radio show produced by the award winningmarketing firm bottom Line Marketing Group the LMG,
sharing business and marketing strategies to makeyou and your business successful. Now
here's your host, the president andfounder of bottom Line Marketing Group, Yitzaks

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Sapless, and what a treat wehave in store for you tonight. Tonight's
show is all about marketing's role andthe customer experience. And I'm not going
to be in suspense this week.One of the greatest guests we've had on
in the past and Tennight with avery unique approach to marketers role in the

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customer experience, Schef Hiken. Schephikenis back with us once again on seven
ten WAR and of course I justneed to go through my intro. Welcome
to another edition of Mind Your Businesshere on seven ten WAR, the voice
of New York and around the worldon the powerful iHeart Radio Network. How
many incredible guests we've had on theshow over the years. Steven Sadof,

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the former CEO of Sacks off theAvenue, Joe Hart, we just had
him on recently, the President andCEO of Dale Carnegie, John Scully,
the former CEO of Apple and Pepsi, and so many other great guests.
Dick Chules, the founder and chairmanEmeritus a best Buy, and so many
other great guests. The ones thatwere videoed are up on our YouTube channel

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on YouTube were at seven ten WAR. Mind your business and if you follow
our channel you're automatically notified when ashow goes live. Well, I gotta
be a menshare chef talks about thatall the time. Gotta thank our staff.
We have a great team here atbottom Line MG, in particular Surulli,
Mikhal Nachi DJ, and the entireteam at bottom Line Marketing Group who

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plays such an important support role inputting this together each week. Special thank
you to the team at seven tenWR, Darren Peter Robert, Thank you
zeb Brenner. That's a nice shoutout. Thank you. I'm shouting back
to you and to the great differentchannels that we are syndicated on. Nuki
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selected shows in a Q and Aformat. What about Business Class Clips?
Every single day we reached over twentyfive thousand people. You could sign up.
Hey, we'll get to that soon. I gotta get to my guests.
But on Instagram, we're on WhatsAppBusiness Class Clips, and of course
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But with how further ado our incredibleguest, Chef Hiken, Customer service

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and Experience expert. Chef is anaward winning old speaker. He's in the
NSA Hall of Fame. Sheep.How many people are in the whole of
fame? Out of out of inthe NSA, I think it's like around
fifty thousand people. How many arein the whole of Fame, I don't
know. But first of all,let's make sure everybody knows what NSA is.
That's right. It's not the onesthat's listening, the National Security Administration.

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It is the National Speakers Association.We're the ones that talk. The
other NSA, they're the ones thatlisten. They listen. So each year
they induct typically five into the Hallof Fame, and people like you know,
Ronald Reagan and Colin Powell are membersof the Hall of Fame of the

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National Speakers Association, and I wasinducted in New York in two thousand and
eight. Gosh, that seems likesuch a long time ago. And what
an honor was to join that reallyexclusive group of amazing speakers. It's such
an honor. Shef is a NewYork Times Wolf Street Journal best selling all

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and he is the Chief Amazement Officer. What a great title at Shepherd Presentations,
where he helps companies and organizations createan amazing customer focus culture. He
does it for companies worldwide, manyFortune five hundred companies, many companies that
you would recognize. But we're notgoing to share that because we'd run out
of time if we stopped talking aboutall your customers. CHEP, we're gonna

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open up, and by the way, thank you for sharing the incredible new
eight twenty twenty three ACA study thestate of Customer Service and CX, of
course, and also how AI andChat GPT can crush customer service. We're
gonna get to that a little bitlater, because that's of course very twenty
twenty three AI Chat GPT hades thatold tie end. But before we get

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into specifics, just a general,straight up question. What is marketing's role
in the customer experience? Yeah?Yeah, and you have before I do
that ACA another acronym. What doesthat stand for? Yep? It is
achieving customer amazement. It's the stateof customer experience and customer service. But
my goal is everybody should amaze orcustomers and that ties directly into marketing,

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which is exactly what this whole segmentand this program that we're doing today is
all about. So here's my takeon it. A customer experience is the
new marketing. I've been saying thatnow for maybe five or six seven years,
so maybe it's not so new,but it's marketing is not typically marketing,
you know. Marketing is what companiestypically do to get people interested in

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a product, aware of a product. If you want to create awareness of
your product, one of the bestways to do it is let your customers
do it for you. And whenyou deliver an amazing level of service or
create that experience that gets people towant to come back, guess what else
they do. They evangelize the brandand they talk about you to their friends,
their colleagues at work. Their familymembers. And the next thing,

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you know, your best marketing isthat word of mouth that's talking about that
great experience that that customer had withyour company. Do you remember there's a
song out there by the famous philosopherand artist Bonnie Rate. You remember Bonnie
Rate's famous song. It was agreat hit. Let's give them something to
talk about right now. She wastalking about love. I'm talking about the

(06:15):
customer experience, the experience that makesyour customers say, in the words of
Arnold Schwarzenegger, I'll be back.And in a previous episode we had a
great conversation about that book. Andyou know that was like my most recent
book titled I'll be Back, Howto get your customers to come back and
get it again again and again andagain and again and by the way,

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just now, that's called marketing.We're talking about the book. That's right,
that's right now, by the way. He is a key question that
comes up all the time, andthat especially because you know we represent the
marketing firm. People say, youknow, the best form of marketing is
word of mouth. I believe that. I get that, But how does
one fuel that? How does onemake sure that they they have older all

(07:01):
that clients there are becoming their brandambassador. How does one fuel word of
mouth marketing? Well, let's startwith the very basic and this is what
what you want it to be.This is an overarching comment that is so
simple, although simple doesn't mean easy. And once I give you this simple
idea, we can spend the restof the hour or the next seven hours
breaking it down. But deliver theexperience, a good experience. By the

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way, if you deliver a badexperience, they will also talk. If
you want to deliver the right experience, it should be a good experience that
gets people to talk about you.And you could prompt that. You could
ask them with the follow up survey, would you leave you know, a
review on Amazon? Which would yourleave a review on you know, whatever

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the platform is. But the ideais why, if you're really good,
you won't have to They'll just doit because they want to do it.
And when they're at dinner talking about, Hey, you won't believe the great
rest and I went to you won'tbelieve the great experience I had with this
business. That's what you want peopleto talk about. And by the way,

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there's lots of you know, youhave a restaurant, you have a
hotel. There's lots of sites thatyou can leave those reviews on. I
don't care what business you're in.You can be in a manufacturing business.
There are we used to call thembulletin boards, but there are platforms where
your customers are interacting and talking aboutyou. Associations for industries have events where

(08:31):
customers get together. Those are opportunitiesfor them to talk about the experience they
have with you. They're at acocktail reception and somebody says, I'm doing
business with such and such. Youknow what, They're Okay, who do
you do business with? Well,that's the opportunity for your customer to just
share the glowing accolades you want themto share about you. CHEP and the

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newly released twenty twenty three ACA studypresented by five nine, I want to
give a shout out the farmer sponsor. Thank you five to nine, who,
by the way, is a communicationsplatform and a technology platform in the
customer service and support world. Sothey know what great service is all about.
Their goal is to create a technologythat is so great for the employees

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to use that the customers have agreat experience as a result of the employee
experience being well, you know,really well done. On page five,
there's a stat here's incredible stat.Yeah, I better look at page five,
right, page five. We'll getyou ready. I'll start reading it.
And if I'm ready, you knowit by hard come on chep.
Eighty two percent of customers in twentytwenty three are likely to recommend a brand

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or company to friends and family ifit provides a convenient customer service experience.
What is that all about? Well, I did write a book titled The
Convenience Revolution, and if you thinkabout it, it came out just before
the the COVID pandemic, and convenienceback then was truly a differentiator. How

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easy are you to do business?And when you create that easiness and that
convenience, what happens is customers stoplooking at price and they start wanting to
do business with a company that's easiestto do business with. Guess what else
they do? When it's super easy, They start to share. You won't
believe how easy it was for meto order this. You wouldn't believe how

(10:26):
easy it was they made it forme to buy whatever. You wouldn't believe
how easy it was to return somethingor exchange something that I bought from them.
When you start creating ease in theexperience, you start to get the
create the loyalty because then customers don'tbecome loyal to you because of a low
price. They become loyal to youbecause of the way you do business.

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Now, when we got into thepandemic, lots of companies recognize opportunities to
find ways to deliver, which,by the way, that's one of the
six convenience principles is delivery. Theyfound ways to deliver product of all kinds.
I'll give you an example. Mycar dealership. Actually my wife now
because I bought a different brand,but I bought several cars from this car

(11:11):
dealership. This was one of mylead case studies in the book. I
went to the dealership because I happenedto be driving by and I saw a
beautiful car in the window. Isaid, I want to take a look
at that. My wife had toldme this could be your next car.
So we walked in. But theywere ten miles away from where I live.
By the time we go through trafficand stoplights, it's probably about a

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thirty minute drive. Now, keepthis in mind, I'm very sensitive to
how much you know how much timeI have in a day to work.
If I've got to drop my caroff for service, I got to get
it there. Then I got toget a ride back, which they said
they would provide for me. That'salmost an hour. But then I got
to do the same thing when Igo to pick it up. Two hours
of my day. It's twenty fivepercent of the typical work they will be

(11:52):
spent driving back and forth to thedealer. So my dealer that I had
been buying all my cars from,which also was a dealer in this particular
brand, less than a half amile from my office, I would actually
walk from the dealership to my officeand then go back and pick up my
car whenever it needed service. That'sconvenient, right, But this is what
the dealer said to me, thesalesperson. I walked in and can I

(12:16):
help you? Sir, Oh,I'm just looking. We've heard that before,
haven't we? And you know,And then I said straight up front.
When the guy kept pushing more andmore, and by the way,
not pushing in an obnoxious way,but just trying to get more information,
I said, sir, I don'twant to offend you. I don't want
to waste your time. Your dealershipis like a half an hour from where
I live, and the dealership thathas the same car is less than half

(12:39):
a mile. I have better bedriving by here, and I saw it,
so I don't want to spend yourprecious time working on a customer you're
not going to buy from. Thisis what he said. Look around,
do you see a waiting room anywherein this place? And I looked around
and I don't. He goes,well, we have one. It's very
small, and the reason it's smallis because nobody ever uses it. I
go, what do you mean?He says, When you buy a car

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from us number one, we willdeliver the car to you, so you
don't even have to come back tothe dealership number two. When you need
service, you just call us,make an appointment. We'll bring a brand
new car out for you to driveduring the day, and when your car
is ready, we will drop yourcar off and take our car back.
But this is so good. Wedon't ever expect you to come in here
until it's time for you to buya new car. And if you already

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know the car you want to buy, you don't even have to come in
We'll just get it for me andbring it to you. I thought,
are you kidding me? And bythe way, what is this going to
cost me? He goes, Ifeel we're very competitive. Let me write
up the paperwork. I'll give youthe deal. You don't have to buy
it today, and if you wantshop it around, you know, And
I thought, why not? Guesswhat about three cars from them so far?

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Convenience? Yeah, convenience sells.So tell me is that marketing is
that sales? It all ties together. And guess what else? I wrote
about them in a book that soldtens of thousands of copies. So guess
what the world is learning about mycar dealership here in Saint Louis, Missouri.
That is such a great example aboutMarketer's role in the customer experience.

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They shouldn't just think that like here, I mean here they impressed obvious.
I mean, listen, the kingof the customer service is chef hiking.
I don't know if they knew thatgoing in, but they were. They
They struck gold on that one.Hey, but you're right. They have
to do that with every customer.They don't know, that's right. They
gotta do that with every custom andI would imagine that was the approach.

(14:26):
It wasn't like, Wow, it'schef hiking coming in. I gotta say
a funny story. After I gotto know the salesperson, after we decided
to buy that that first car,I came back in and I said,
Okay, we're gonna buy the car, and then he goes I googled you.
I just wanted to see if Icould find that information. Oh my

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gosh, I am. I'm onmy best behavior. How have I done
so far? I said, I'mbuying the car. What does that tell
you? And I will let youknow if you ever let me down?
Promise. What a great story Beforewe go to a commercial break ship.
How can people find that more informationabout your incredible array of services that you

(15:09):
provide for Fortune five hundred companies andsmall businesses worldwide. Yeah, I like
to say I work for the Fortuneone hundred companies that have less than one
hundred people. So just go tohiken dot com hy k e N And
by the way, if you geekout on stats and facts and findings,
there is a tab at the topit says research. Click on it and

(15:31):
you can download my most recent reports. We've been doing now this study for
about four years, coming up onnumber five, and like I say,
five nine has been a wonderful partnerand a great sponsor, and I appreciate
them for this year's contribution to makingthis work because it's not inexpensive to do
this kind of research, but it'sso incredibly important to understand the way customers

(15:52):
think. Hiken dot com, Hykandot com amazing. When you take a
show, commercial break, stay tuned. A defining moment in your life could
be transformational, and when that momentcomes, you need to be prepared with
emotional intelligence. Hi. I'm ChuckGarcia, author of Amazon's best seller Acclimb

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to the Top, and my newbook called The Moment That Defines Your Life
is coming out in February twenty twentyfour. Learn how to integrate modern practices
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(17:22):
one. I ever wished, asyou're sitting alone in a corner at one
of those networking events that you couldconnect better with other people. Ever beat
yourself up because you didn't speak upagain at that meeting, or have been
sweating buckets, terrified before a presentationbecause you aren't confident about your public speaking

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(18:03):
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that are available to you Dale Carnegiedot com. And we're back with ship

(18:36):
Hike in Man tonight show Marketing's rolein the customer experience. In case you
missed the first part of the show, no worries. Mikailies it up by
the next day at around ten o'clockmaybe ten thirty, but it's on all
the popular podcasting channels, and ofcourse the YouTube episode goes up shortly thereafter.

(18:57):
But when it will go up,Hey, if you subscribe to the
YouTube channel on YouTube or at seventen WR and you subscribe, you automatic
be notified when the show goes live. Well, marketing's role in the customer
experience. At the end of theday, every single touch point, and

(19:18):
Sheff has spoken about this for decades, every single touch point is factored in
to the overall customer experience. Thereis a great quote you have from Jan
Carlson that really brings the point home. Could you please share that incident,
that story, that thought and theimpact that every single touch point has with

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a customer. Sure. So JanCarlson is the former chairman of our I
guess the president chairman, the guythat ran Scanninavian Airlines and he was asked
to take this over many many yearsago, probably in the early nineteen eighties,
when when the airline was literally losingmillions of dollars, and he took
it over and he says, wegot to turn this around. So what

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he did is he took all ofthe employees and every city they had a
presence, brought him into an airplanehangar and he had a little presentation he
delivered and he talked about something hecalled the moment of truth in business.
And he referred to the moment oftruth in the airline business is anytime a
passenger comes into contact with any aspectof Scandinavian Airlines are going to form an
impression. And you can paraphrase thatanytime any customer, client, guest,

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patient, member, whatever you wantto call the people who do business with
you, anytime a customer comes intocontact with any aspect of your business,
they form an impression. Now,Jan Carlson said, these impressions can be
good and bad, and give yousome examples. If you were going to
fly on an airline, and backin the early nineteen eighties there was no

(20:47):
internet that we could use, soyou had to actually pick up the telephone
and make a phone call. That'sthe main moment of truth. You pick
up on the day of departure,you drop off the bags in the front
of the airport and they take them. In main moment of truth, you
go to the ticket counter. Mainmoment of truth. Every touch point along
the way, every interaction, eventhe smallest ones is you're walking by a

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flight attendant from Scandinavian Airlines and theysmile at you. It's not a big
moment of truth, but it's stillimportant because it adds to the experience.
And what you're trying to do ismanage every interaction to be a positive experience.
And when all of these interactions arepositive and you don't let your customer
down, well, then they wantto come back and find the airline again.

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So he says, it's real simple. Manage the moment of truth now
with this simple idea. And bythe way, he said, they're just
good or bad, make them goodwith this simple idea, Jean Carlson got
everybody on board. And by theway, he said, if you're not
dealing directly with the passenger, you'resupporting somebody that is, or you're part
of the process that's making that customer'sexperience hopefully a good one. But this

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idea managed to turn the airline aroundto become not just profit again, but
become the most admired airline in theentire airline industry. And think about that,
all with this simple idea, justmanage every interaction you have with a
customer. Now today, with digitalinteractions online, all of these need to

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be thought of because like a website, it was designed by a person,
a web designer or a group ofpeople to be used by customers who are
also people. So we want totry to emulate as much as we can
a positive experience that we might havein person digitally. And the whole goal
of Jan Carlson, he said,was just manage the moments of truth and

(22:37):
they come back. Now. Itook that idea and I read this article
in the early nineteen eighties when Iwas first starting my business, and eventually
Jean Carlson wrote a book. Iknow I don't look that old. But
I've been doing this now forty years. Seeing no gray hair, right,
but you haven't seen the hair onmy back. Okay, there's no hair
on my head, no telltale grayhair. Anyway, I gave names to

(23:03):
the idea of what a good momentof truth and a bad moment of truth
is, and I read this articlelike I mentioned in the eighties, and
he eventually came out with a booktitled Moments of Truth. You can still
get it, just go to Amazonand buy it. Anyway. I call
the good moments of truth moments ofmagic. I call bad moments of truth
moments of misery. Obviously want toavoid those. And then there's another kind
of moment of truth that Jean Carlsondidn't talk about, and that's the one

(23:27):
that's in the middle. That's theone that's just average or satisfactory. Are
just fine? Fine? Is notfine because it's just not good enough.
It's like, no, who,if you can find a place that's better
than just okay, you're probably gonnago there until that time, you'll put
up with it. So we tryto avoid average or mediocrity. We definitely

(23:47):
want to avoid moments of misery,and we try to create moments of magic,
which, by the way, aren'tabout being over the top and blowing
me away with the most incredible serviceI've ever had. It could be,
but the goal is to create anexperience that's just the tiniest bit better than
average. Or here, let's makeit easier. You know what your customers
are expect. It's common sense.If your column, they expect you to

(24:11):
return the column, They expect youreturn it in a reasonable time frame.
If you can consistently and predictably meetthose expectations, maybe be a tiny little
bit better than average. Like,hey, thanks for calling me back so
quickly. That so quickly part isthe a little bit better than average,
right, So if you can dothat consistently and predictably, this is what
customers say. I love doing businesswith them. They always call me back

(24:34):
quickly. They are always so friendly, They're always knowledgeable. They always give
me the answers I need. Evenwhen there's a problem, a moment of
misery, I know I can alwayscount on them. That word always followed
by something positive. Lets you knowyou're in that zone of amazement that's always
consistent and predictability comes from that wordalways, and when your customers start talking

(24:57):
about you that way, then youknow you're doing the right thing. Obviously,
there always needs to be followed bysomething positive. If they you know,
they're always so hard to get ahold of, is not what you
wanted them to say. And bythe way, a nice thing about a
moment of misery is that some customerswill complain and tell you when there's problems.

(25:17):
Many won't, which we try tofind out if there are, but
keep that in mind. At leastsomebody will tell you when there's a problem
once in a while, which givesyou the opportunity to turn that moment of
misery into a moment of magic.But if you hear the same problems happening
several times, are often well,now you know you have something that you
can fix, so hopefully nobody willever complain about it again. So nobody's

(25:38):
ever going to complain about average becauseit's not much to complain about. It's
just not any good. And asI mentioned, the opportunity to be better
than just okay, or do businesswith somebody that's better than okay. That's
when you start to see people leavingyou, even though they never complain.
We thought they were happy. Theynever said anything bad about is we never
gave them a chance to say anythinggood about you either. The other one

(26:00):
before we move on the other ideafrom Jan Carlson that I would love to
just touch on is that every touchpoint makes an impression and the people.
Could you please talk about that tradetable example? So Jan Carlson said,
you know, it's not just peoplethe people interactions, it's any interaction that
that customer has with your business.For example, the trade table on the

(26:23):
airplane. You know you put itdown. If a trade table's broken,
this could be what's going on inthe customer's head. Boy, if the
trade table's broken, I wonder ifthe landing gear is going to work.
Now, I know that's extreme,but imagine you're pulling up to a grocery
store and you see people unloading foodout of a very dirty, dirty looking

(26:44):
truck. Don't you think that maybethat food might be dirty, maybe you
don't want to go in there andbuy that food. Those are the kinds
of connections the customers make to theinteractions they have. So you need to
manage the experience. And that's whyyou know it really does bother me when
I start to when I'm in anairplane and let's say, you know,
the electricity, you know, maybeit keeps flickering. I'm going, oh,

(27:07):
my gosh, what's gonna happen whenwe're up in the air By the
way, no doubt, I wouldrather find out about mechanical problems, electrical
problems, or any other kind ofproblems on the airplane while it's still on
the ground. I don't mind waitingfor a repair. I don't want to
be up there when they say,hey, bad news, the windshield is
gone. No oh no, ohman. Okay. Now this leads us

(27:32):
to the next point, and againtonight show is the market the role of
marketing in the customer experience. Nowwe I don't know what the latest that
is about how much more difficult itis for a company to land a new
account as opposed to just keeping anaccount that they have inside anyways to keep

(27:55):
a customer. We know that it'ssignificant the difference because between keep a customer,
if you keep the customer happy,retaining them as a customer retention,
we call it, as opposed togetting a new client. Now, that's
part of marketing, right, marketing. So the question is what's involved that,

(28:15):
why is it so critical for acompany to be mindful of always creating
moments of magic in terms of makingsure that they have great retention among their
clients. Sure, so, letme go back to a book that I
read many many years ago, writtenlong I think before I even started my
career, which, by the way, I'm going to predict that fifty years

(28:36):
from now it's still going to bea relevant book based on this one idea
that doctor Ted Levitt, the seniorprofessor at Harvard Business School, had,
and this is in the book wastitled Marketing Imagination. Actually, I've got
a stack of books over here Ishould add that book. These are my
ten favorite books of all time.Marketing Imagination had a concept that became my

(28:57):
favorite, even though the whole bookit's probably a little academic, but anyway,
the idea behind this is that thefunction of a business And and by
the way, you think if Iwere to ask a hundred people on the
street, what's the function of abusiness? What do you think most people
would say? To solve a painpoint? Oh maybe I don't know if

(29:18):
most people would say that, butthat's what I would say to solve a
pain point. That's why I didn'twant to ask you, because you're smarter
than most people. Right, whatwould most people say, to make money?
To make money? Right? Exactly, that's what a business wants to
do. They make money. Well, doctor Levitt said, that's not the
function of the business. That's thegoal of the business. The goal is

(29:38):
to make money. The function isto get and keep your customer, acquire
and maintain that customer. And hesaid, if you confuse the function with
the goal, you don't always reachthe goal. So figure out a way
to get your customers and then finda way to keep your customers. And
every stat will show you it ismuch less expensive to keep your customer than

(30:03):
to deal with churn and keep tryingto find new customers replace customers you're loss.
So let's go back to how doesa customer first decide to do business
with you. First, they haveto become aware of you. That's marketing.
Then they have to buy. That'smore of a function of sales,
and sometimes they're very very closely related. And then they have to be served.
So customer service is not a departmentthat happens when something goes wrong.

(30:27):
Customer service is how somebody's treated throughthe entire interaction. Now, customer support
is the department you call when somethinggoes wrong. So once you have that
customer, what are you doing tokeep that customer? And once you give
them the experience that makes them wantto come back, you're back to marketing
again. So it comes full circle. Marketing at the beginning, marketing at

(30:48):
the end, and then it justkeeps going. We're speaking with Chef hike
in one of the former one ofthe world's leading experts and the customer experience,
and we are reference the amazing reportthat came out to sponsored by five
nine, the twenty twenty three ac A study the State of the Customer
Service Ship. How can people findout more about your speaking engagements and the

(31:14):
many titles, the best selling titlesthat you have written. Sure, well,
you know you just go to hikendot com. I mentioned that before
hy k N. You'll see littletabs speaking research and you'll see the books
online store. You can also gostraight over to Amazon to buy the books.
They have them all. I hopethey have them all. There's eight
of them. They hopefully have alleight. If not, you let me

(31:37):
know we'll get your book. Amazing. We're gonna take a short commercial break.
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(32:45):
emotional intelligence. Hi. I'm ChuckGarcia, author of Amazon's best seller Acclimb
to the Top, and my newbook called The Moment That Defines Your Life
is coming out in February twenty twentyfour, Learn how to integrate modern practices
of emotional intelligence with classic stoic philosophies. Pre order on Amazon today. And

(33:13):
we're back with Chef Hiken, theone of the world's foremast customer experience experts.
He speaks around the world. He'sin the National Speaker Association's Hall of
Fame, and he's written eight titlesbest selling books New York Times, Wolf
three Journal best Selling Books, andit's an honor and a treat every single

(33:35):
time we have a chance to speakto him. And tonight show specific specifically
titled Marketing's Role in the Customer Experienceand Chef for this segment, we're going
to jump right in with loyalty programs, rewards programs. I mean that certainly
fits under the title of marketing.However, you talk about a difference in

(33:57):
fact in the ACA study, yousay, of eight I'm going to quote
a line on page twenty six,there is a difference between a repeat customer
and a loyal customer. What doyou mean by that, Well, there's
sure is. And the interesting statis that customers love the loyalty programs.

(34:19):
But let's call them what they reallyare. They're not loyalty programs. They're
marketing programs, and they are designedideally you want to create a loyal customer,
but they are designed to get customersto come back. Ideally, you
want them to be loyal, andyou think just because they keep coming back,
they are loyal. So let's breakaway from that and just tell you
that repeat customers are not necessarily loyalcustomers. And I'll give you an example.

(34:45):
Customer keeps coming into this store andthey come back again and again and
again, and then one day theydon't come back at all, and you
happen to see them six months laterand go, how come you don't come
back anymore? We thought you wereone of our loyal customers. And the
customer says, oh, yeah,yeah, you guys are great, but
somebody moved in. That's a littlebit closer to where I live. Okay.

(35:06):
That means they were loyal to thelocation, not the business. So
it is important to understand why yourcustomers keep coming back. And if it's
because your price is better the moment, there's a better price somewhere else,
guess what they're gonna leave. Maybethere was a particular employee that you have
and they left it and went toa competitor and the next thing you know,

(35:29):
that customer's gone. Why they followedyour employee? They were. And
by the way, I love itwhen customers are loyal to somebody that works
in your business. Oh my gosh, do everything again to keep that customer.
I mean to keep that employee,because that employee is probably as plenty
other loyal customers that they might.You know that people enjoy doing business with

(35:50):
him or her, and ideally youwant to keep that person. So you
understand what I'm trying to say isthere's many reasons why customers come back.
Loyalty programs are designed to give incentivefor repeat business. If you have,
in the most simplistic form, you'vegot a card, it's got five little
areas. As soon as you goto the restaurant and all five cards are
punched, then guess what they get? A free sandwich. Is that a

(36:14):
loyalty program. No, it's arepeat customer marketing program. And really what
it is is a discount program.Because if I get a free sandwich one
out of every five, that meanstwenty percent of what I spend with you
is a discount. And if youthink about what the airlines are doing the
airlines give you miles or points inexchange for the amount of money or how

(36:35):
long or far that you fly.And if they were to take away those
perks, those points in the freerewards and the free upgrades, which is
still fly on that airline. Andif the answer is yes, then they
have a truly loyal customer. Ifthe answers no, it means they're loyal
to the points and perks, notnecessarily to the experience that they have with
your airline. So it's very importantto understand the difference between repeat business and

(37:00):
loyalty business or loyal business. Andit's also important to understand that your loyalty
program is probably a repeat business inmarketing program, and that doesn't mean it's
bad. By the way, Iencourage you to do this, but at
the same time, figure out away and here's the key to make an
emotional connection that makes your customers sayI wouldn't want to do business with them

(37:24):
anywhere else. In one of mybooks titled Amaze Every Customer every Time,
I love that word amazing, andit shows up in a bunch of my
titles Amaze every Customer every Time.In that book, I have the epilogue,
and it is the fifty third exampleof how to create amazement. And
here's the way it goes. Createa demanding customer. Now, most people

(37:47):
think of demanding customers is somebody thatwould just complain and demand of you.
None. No, that's not whatwe want to do. We want to
be so good at what we do. We want to deliver the most incredible
experience to the point and by theway, I want to emphasize that incredible
experience is the consistent and predictable experiencethat customers use the word always in front

(38:10):
of again, always so knowledgeable,always so helpful, they always get back
to me that we're always That's thepredictable experience that puts you into amazement.
So what we want to do iscreate the experience that's good to where if
the customer were for some reason totry another business, to go somewhere else
and do business, they would demandthe same level of business that they are,

(38:35):
the same level of experience excuse methat they got from the other company
that they left. And guess whatthat new company is going to say,
You know what, that is ademanding customer. And that's the way on
them to say about us. Becausewe're that good. And then of course
the customers are going to say whydid I ever leave them? And ideally
they come back now sheep. Inthe last segment after the break we're going

(38:59):
to talk about twenty twenty three CHAT, GBT and AI that's in everyone's mind
and how that ties in to thecustomer experience and that of course ties into
marketing. But before we get tothe break in on page twenty nine,
on page twenty nine of the Stateof Customer Service and CX, the twenty

(39:20):
twenty three ACA study put together byyour team and brought to you by five
to nine question you have over hereimportant words. Now this is important for
marketing also because maybe they should beused in marketing. And on the top
of the page we asked what threewords best describe an excellent customer service experience

(39:40):
in today's world? What are thosethree words? Well, and realize we
asked over a thousand people to sharetheir three words, and we got are
you ready helpful, friendly, knowledgeable, boom. What you want to do
is create an experience and makes yourpeople deliver on those three ideas. And

(40:01):
by the way, helpful is howeasy it is sometimes to navigate a website.
Oh it's so easy and it tellsyou exactly what to do. It's
intuitive and friendly, well you know, it's not hostile and of course knowledgeable.
You're getting all the answers you want. So the same experience that you
have people to people, you wantpeople to machine if you will, which

(40:23):
is a perfect lead into AI internext segment and how that plays into the
experience. But that's what people want. They want something as simple as that.
And by the way, that hasnot changed year after year after year.
We do the same question. Andalso if you go back twenty twenty
five years, questions like this we'reasked, and many of the same reasons
keep popping up. This is whywe love doing business with people. It's

(40:46):
not because they have a lower price. It's not necessarily because by the way,
low price was factored in there.And by the way, let's round
out these other ideas, the otherwords top ten beyond helpful, friendly and
knowledgeablepathy, fast, kind, understanding, quick light, and listener. At
no point did they say low price. Wow, that's amazing, because that

(41:09):
question always comes up. Say youknow how important this price? Do I
have to low ball? Do Ihave to be cheaper than everyone else.
And the answer is, if youdeliver the right experience, it will make
price less relevant. You still needto be competitive, but you don't necessarily
need to be the lowest. Asa matter of fact, or earlier in

(41:30):
the report, we have the statsthat prove that even the Gen zs,
who probably have less money than allthe other generations, it's more important that
they have a great experience and they'rewilling to spend more money for it.
It's amazing. Before I go toa commercial break, what's the website?
What I could see? They entirechef Hiken Experience, Hiken dot com,

(41:55):
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(45:20):
And we're fact Mind your Business withthe Sexaphlis riding here on the Voice of
New York seven to ten w Rand around the world on the powerful IHR
Radio network. My guest cheficn Andwhat's the topic, Marketing's role in the
customer experience? And before the breakand fact in the previous what is it

(45:40):
now? Forty five minutes, it'sgoing way too fast. The time is
flying. When I'm on the setwith you, it just goes too fast.
That it's it's an amazing experience.It's a moment of magic. And
we're talking about the His firm putout a two incredible reports. One is

(46:02):
the State of the Customer Service andthe twenty twenty three ACA study. We've
been talking about that. Now we'regoing to today eight Now, of course
that's also today, that's also today, but AI Artificial Intelligence Chat GPT,
and he has a special report here. I'm just say hey, I'm gonna

(46:23):
hold it up for the audience.And by the way, you can get
this if you go to Hiken dotcom, h y k e n dot
com. This is available. Thisis a very expensive study. I'm not
going to push up on the spotand ask how much it costs to do
it. Thank god he got goodsponsors. The fact is this is a
very expensive and it's free if yougo to Hiken dot com. On it.

(46:45):
How AI and chat GPT can crushcustomer service? Now we're talking about
marketing, we're talking about technology.How does that all apply? I thought,
right before the break you said helpfulwas the number one word? Empathy
is in there? Are we takinghumans out of the experience? Yeah?

(47:07):
Great question, and by the way, empathy. I just recently did a
little study on chat GPT. Iasked the question I was, I'm writing
an article. You'll get a kickout of this article. By the way,
it's a lot of fun. Isomebody said to me they used an
acronym. I didn't understand or didn'tknow what it meant. And it drives
me crazy when companies use jargon oracronyms or abbreviations that customers and everybody knows

(47:31):
what CX is customer experience and ifyou don't know what it is, it
means customer experience. And why theydidn't say CE because it's experience starts with
an E. But hey, Iget it. EX is employee experience,
so ex is two employees is CXis to customers. WX stands for the
Web experience. D X stands forthe digital experience. So there's lots of

(47:53):
these xes, right, So Igot my creative juices flowing, and I
said, wow, let me comeup a few of my own x's.
All right, and I'm going ona long story here, but let me
tell you what happened. Actually,I should pull up so I can give
you the exact response the chat GPTgave me to this. Okay, get
this. So I said, I'mgoing to come up with the NX.

(48:16):
That's the nap experience. This isthe comfortable place employees might enjoy a short
nap during a stressful day. Bythe way, this article hasn't come out
yet and it won't come out untilafter this show is first. So why
X is the yawn experience on ascale of one to ten, how likely

(48:37):
your customers employees to yawn during ameeting or presentation. The PX is for
the procrastination experience. So I waslooking for something funny to say, so
I said, how would you summarizein two or three sentences this article that
I just wrote? And it gaveme a great little line or two to

(48:59):
use. And then I said tochat GPT, thank you great idea,
thanks for being so smart, andyou know what, chat GPT immediately said,
You're welcome. I'm glad you foundthe suggestion enjoyable. If you have
any other questions or need further assistance, feel free to ask. I'm here

(49:20):
to help. No. By theway, Chap, I actually saw somewhere
I forgot which report It said ifyou use please, you'll get a better
response. Isn't that nice? Youknow? I wrote an article a while
back that was at a coffee shop, and I did a cartoon and on

(49:42):
one side it says, for nicecustomers, here's our price. For customers
that aren't so nice, it's alittle higher. So but anyway, I
digress. Here's the point. ChatGPT is a great technology. Any AI
is a great technology. Most peoplethink this is all brand new, but
we've been using it for years.How long has outlook been around? I

(50:05):
mean it's probably been around for twentytwenty five years. And you know your
junk folder that automatically sends emails thatyou don't want to the junk folder that
is AI at work. Okay,you didn't realize, Oh my gosh,
I'm using AI anytime you interact withyou know, Amazon's election and I don't
want to. I think she justheard me back there, Yeah, hello,

(50:28):
Hi, Yeah, yeah, Iknow. That's that's AI infused technology
and it has been used for years. Back in the mid like maybe twenty
fourteen fifteen, IBM hired me andI was doing some work with them.
They sent me to Cognitive College,that's what they called it, to understand
how AI is better interacting with customersand giving customers a better experience. And

(50:51):
it was a chat bot, whichis like when you type things in and
get answers on a website, it'seither coming from a machine or a humans
typing it in. Well, thebot is for a robot. Chat bot.
Okay, that's what that means.And I said, here's a conversation.
If I was going to buy abike, I would type into the
chat bot. I would like tobuy a bike, and a smart chat
bot would say, well, whatkind of bike do you think you want

(51:14):
to buy? I want to buya road bike. Is this for you
or for someone else? It's formy daughter? How old is your daughter?
How much does she weigh? Otherquestions, what's your price range?
So the bot's going to ask mea bunch of questions so that it could
eventually give me a suggestion. That'sAI doing its thing. Now that sounds

(51:35):
pretty sophisticated, because that's exactly thetypical experience we have with a chat bot
using AI. So today, withAI and chat bots, as a customer,
I can go on and I caninteract by either typing or it's now
becoming somewhat common where voice. Youknow, the voice recognition is there.
And by the way, it doesn'tmatter if I miss spell words, I

(51:58):
misspronounced words. If I'm using youknow, the voice technology, I could
speak with an accent. I couldspeak in a completely different language. The
AI infused chat GPT is going tocome back to me and give me good
answers. Now here's the big question. How can this be used in customer
service? And to your point,is it going to eliminate jobs. Remember

(52:19):
when ATMs came around, the automaticteller machines, you know, back in
the nineteen sixties, when Barkley's Bankfirst introduced the ATM, everybody said,
that's it, We're gonna fire allthe tellers. We don't need bank tellers
anymore. Well, the last timeI went to a bank, there were
plenty of tellers working in there,and the ATM was right outside the bank
for customers to use when the businesshours, you know, outside of regular

(52:40):
business hours. So ATMs are stillgreat, and so are tellers. Well,
I don't think customer service reps aregoing to go away. As a
matter of fact, we just dida study and we asked customer service leaders
people that ran service departments inside theircompany. With the new invention chat GPT,
not invention, but the new wayof using it, are you going

(53:01):
to start to eliminate people and cutdown on the staff they said? On
the contrary, seventy some odd percentsaid, we're actually increasing staff because the
chat GPT questions are meant to bethe questions that are easy, that you
shouldn't have to call and wait onhold and put in passwords. You should
go straight to the website, login with your credentials and say, hey,

(53:25):
when's my shipment going to arrive?How much is the balance in my
account? Basic questions, and thenlet's leave the more sophisticated and complicated questions
available for people to answer. Andby the way, it's the person's job
not just to answer questions, butto build the relationship and create empathy and
understanding on a customer situation. Andwhen that's done well, where you got

(53:50):
the relationship building piece tight into givingthe good answer. And on the other
side of it, with chat GPTanswering basic questions, you have the convenience
of a good experience of getting basicquestions answered quickly. You put those together,
it's a winning combination. Now beforewe close out, and I'm sure
you're asked this question all the time. Is there a risk relying on chat

(54:14):
GPT in the role of the customerexperience? That's even ben a simple stuff,
but they may come back with ananswer that's off and the customer away
right. In general, if youuse chat GPT in our typical you go
to go onto the platform open AIand you ask it a question. You
might want to ask it two orthree different ways. To ensure you're getting

(54:36):
the right answer. However, inthe world of customer service, the companies
are using the chat GPT interacting technologythe way we communicate with people as the
platform, and they're creating something calledthe data set, which is to take
all of the frequently asked questions andanswers and drop them into basically a bucket.

(54:57):
And you're telling chat GPT the owninformation you're allowed to use is what's
inside that bucket. You can't gooutside of the Internet and find another answer.
You have to use what we provideyou. Therefore, the only answers
the customers is going to get isthe answer that you want them to have.
And here's what's cool. If I'masking a question that comes back with

(55:19):
a sophisticated answer, I could sayI don't understand it. Would you explain
this to me like I'm a sixthgrader, and the chat GPT technology will
reword the information so that a sixthgrader could understand it. I mean,
so you're still using the technology,but you're controlling the information. That's why
it's going to work so well withcustomer support. What an incredible edition of

(55:42):
Mind Your Business. Tonight's topic marketing'srole in the customer experience, and we
experienced one of the greatest experts anda customer experience out there, Chef Hiken.
To find them more information and toget a copy of the report the
State of Customer Service and the CustomerExperience, visit Hiken dot com, hykn

(56:04):
dot com. We're at a time. Tune in again next Sunday night for
another way to nial'm on your business. Right here onn ten Wore, the
Voice of New York have a successfulweek seven ten War and the iHeartRadio Network
present Mind Your Business, hosted bythe president of bottom Line Marketing Group,
Jitsok. Sapflis founded in nineteen ninetytwo. Bottom Line Marketing Group is a

(56:29):
strategic, creative and execution driven marketingagency helping businesses by clarifying and promoting their
vision, mission and purpose to supportits lead generation and customer retention initiatives to
gain market share in their industry.Mind Your Business focuses on business and marketing
strategies for success. Tune in everySunday evening at ten pm for this intriguing

(56:50):
radio show. Is Jetsok interviews Fortunefive hundred executives, business leaders, and
marketing gurus from a wide variety ofbusiness industries. Now, Jitsok and his
guests offer their knowledge and expertise tohelp you be successful every Sunday night on
Mind Your Business. The proceeding wasa paid podcast. iHeartRadio's hosting of this

(57:19):
podcast constitutes neither an endorsement of theproducts offered or the ideas expressed