July 2009 | Vol. #10

It’s About Value

Wow, what a quarter it has been here at The Michelli Experience! This last month alone, I’ve been on a international speaking tsunami with stops in Berlin, Toronto, San Juan, Sydney, Melbourne, and Brisbane – and that itinerary doesn’t even include domestic engagements.

I’ve been finding audiences craving a message rich with the importance of “customer experience creation” as a cost-effective way to increase value. Warren Buffett makes an important distinction about value. According to Mr. Buffett “Price is what you pay. Value is what you get.” This quarter’s newsletter focuses on the importance of creating customer value in a tightened economy.

A Dramatically Different Customer

Recently I have been speaking to a lot of groups about how customer behavior has changed since the third quarter of last year. Further, that those changes speak to the increased importance of a service culture dedicated to creating legendary customer experiences. The following research findings have connected with audiences lately:

· Even in difficult times 50% of consumers will pay more for a better experience. Harris Interactive 2009

· 50% of customers leave businesses because of bad experiences. Accenture

· Companies successful in creating functional and emotional bonding with customers had higher retention ratios (84% vs. 30%) and greater cross-sell between products (82% vs. 16%) compared with those that did not. IBM/Ogilvy Loyalty Index Brand Survey 2008

With products and services becoming more similar, customer experience design is a great differentiator between competing brands. Once a business understands how to create a unique experience for customers, it possesses a competitive advantage. For that unique experience to come alive for customers it must first exist for employees. When a business executes a well-differentiated experience for its staff and customers it wins the battle of staff retention costs, increased customer purchases and maximum customer loyalty. Here’s to your customer experience creation efforts this quarter…

New Resources

In addition to my podcasts and books, I have many new offerings since my last visit to your inbox including:

A new website design at www.josephmichelli.com

The upgraded website includes my new weekly blog, as a compliment to my podcasts.

I am now on twitter and can be followed at www.twitter.com/josephmichelli

Next Newsletter

In the fall newsletter, I will be announcing a new book deal that I am signing this month (involving Healthcare and Patient Experiences) and telling you about a plethora of new products and subscription services I will be launching.

Thanks for reading and for all your support. Until next time: it’s not about what they pay, it’s about the experience they get!

Joseph