Adopting Mobile; Lessons from the Taxi Industry

On my way to an appointment recently I was taking a moment to look at a building and a taxi approached me.  On it's way it gave me that familiar, brief and subtle nudge - hoping that I was in fact looking for them, and in need of a ride - a honk.

Jerking me from my momentary trance, the honk made me look, but no I didn't need a ride and I looked away.

It got me thinking about how other people and industries try to get consumers to notice their brands or services.  By shouting out their message to create awareness and hoping that we need them or have any interest.

Like the rap of the tongs on the bbq grill by the hot dog vendor, or the shaking of the cup by the guy on the street looking for change these obtrusive signals are not to far off from traditional advertising.

Shout loud, shout often and hopefully people will come to you.

The taxi industry (barring the aforementioned driver) has adapted quickly however to the use of mobile and if they can, anyone can.

Independent mobile services like Hailo let users connect with a cloud based dispatch system, that through GPS allows drivers to see available fares and claim them for their own.

Not to be overly facetious, but what a novel concept and what a rewarding experience for the customer that every industry should heed as a lesson.

Using a  mobile app to hail a taxi lets the customer identify their need on their terms, through their device, when and where they want it.  Payment, thanks and future notices all go through the device.  As a set of basic principles these should be standard to marketers and embraced through mobile.

Think of how this can change grocery shopping.  The roles of the weekly flyer driving you to your retailer and brands promoting new products on TV have well-valued, long-standing traditions that continue to drive sales.

Mobile however let's retailers know when a customer is coming to the store, when they are at the store, where they are in the store and the length of time at a particular location.  The power of this information partnered with functionality like meal planning, making your grocery lists and the checkout experience have tremendous potential to deliver the same value (and sales) to grocers.

Advancements in analytics and customer segmentation have brought customization and personalization to direct channels like email and direct mail, but there is still room for more.  Focusing on the stated need by the consumer supported by behaviour allows for more meaningful and relevant engagement.  Not shouting.

Unclosed Loop - Referrals to Ad Networks

A couple of days ago I wrote about closed loop ecosystems and the new Red Flag Deals Cashback program.  They are fantastic because they allow a single platform to track consumer behaviour through to purchase.

Here is an example of what can happen to the customer experience when the loop isn't closed.

To reserve a hotel for an upcoming bike race I was looking on Expedia.ca.  Using their search tool I was able to find a number of available rooms.  Clicking on one in particular brought me out from Expedia and to the Hotel's website to make a reservation.  After completing it I even received a notification from Expedia with all of my details - very handy.

Image of Banner Ad day of making reservation

But visiting another website later in the day I was presented with a banner ad to book a hotel in the very same city, with similar offers.

I'm used to seeing activity like this from sites like Clearlycontacts.ca when I browse, but don't complete the order.  But I had completed with my transaction.

Giving them the benefit of the doubt, I went under the assumption that the files between Expedia and their Ad Network provider hadn't reconciled yet.

Image of Banner Ad 2 days after making reservation

Visiting another website two days later I was presented with another offer - different details but same trip parameters.

For Expedia to get into the Ad Network business would be a bit of a stretch from the service they provide.  But passing details to close the loop with their Ad Network provider should not be.

As a customer I now feel that they don't know me and are only interested in pushing me more.  I would be open to them offering me other services that I might need for my trip like flights, car rental, restaurant reservations or travel insurance (if it was international travel), but don't try to sell me something I already bought from you.

How to Document and Measure the Customer Experience

Do you want to know what your customers are doing - and how you are doing at serving them?  Start by documenting the steps that they take in their journey with you and then measure against them.

Most consumer purchase processes follow a typical cycle of Research, Purchase, Service, Recommend and Renew.  Different organizations may call them different things, but you need to start somewhere.  Some industries or products may not have a service element (yes I know that even toothpaste has a 1-800 number, but does anyone call them?).  Map out the big steps a customer takes in it's interactions with you throughout the purchase process as phases.

Within these phases is where the nuances of your service offering and specific product will differ from industry to industry and across competitors.  We'll use getting a phone plan as the example.

Think about what you do in researching a similar product and breakdown the activities that you partake in to move to the next phase.  These are the elements within each phase.  For illustrative purposes only, this is not a set of definitive activities for getting a phone plan, it's a start.

Within these steps are key moments of truth where it is truth where a customer's satisfaction and ability to move forward with the process have the most impact.  This is a critical piece in understanding what your customer is going through and are highlighted for illustrative purposes.

The elements and moments of truth for your particular organization may change over time, and your customers will tell you if they should.


Finally, survey your customers at regular intervals evenly across all phases and elements to gauge their satisfaction and understand the drop-off points within the purchase process.  Applying a heat map technique (illustrated below as green is good, yellow is ok, red is bad) will help your organization understand where your operational focus should be in addressing the needs of your customer - awareness, sales team, customer service, product, etc.


In this example the company ranks high in Comparing Plans and Making Purchase Decision.  This would be typically achieved by having competitive rates and easy-to-use comparison tools available.  Their is however a drop off at Negotiate Final Plan which may mean a sales training issue exists that needs to be addressed.

Design for your Customer, not Tactics

Building a strategy?  Please don't build it around a tactic, or start talking about tactics until you understand your customer.

Start by thinking about your customer and the benefits of your magical widget to them.  Whether a product or service, you should be able to gain some insights when thinking about the emotional and functional benefits.

Emotional benefits?  How it is going to make them feel.
Functional benefits?  What they are going to be able to do.

Understanding how to apply those benefits to customers through tactics can be done by knowing more about your customers.  They are out there, but you need to identify some simple things;

What channels are they interacting in?
How are they using those channels?
How can these benefits intersect with that pre-existing behaviour?

This customer centric approach will produce a more engaging and effective program.