Andy Lark: Service and emotional connection are fundamental to winning over customers

Iconic chief marketing officer of Xero highlights the need for brands to turn service into a weapon and care about the customer's experiences

The greatest threat to your brand is not whether customers hate you, it’s indifference, Xero’s chief marketing and business officer, Andy Lark, claims.

Speaking at the Zendesk Relate conference in Sydney today, the outspoken and iconic marketing leader highlighted the importance of an emotional connection between brand and client and why customer experience is the key to growing loyalty and advocacy.

It’s also not enough to try and emulate the superior experiences of digital darlings such as Uber, Lark told attendees, if you can’t provide actually provide strong customer support either.

“You actually have to care,” he said.

In a subscription-based business liked Xero, customer churn is a perpetual obsession, and the need to win customer experience and loyalty vital to ongoing success.

“What that [subscription model] challenges is the essential truth in most non-subscription-based businesses, which is that the vast majority of employees don’t give a shit,” Lark claimed. “They’re not incentivised or rewarded to care about the customer, and mostly they never meet a real living, breathing customer. But in the SaaS [software-as-a-service] world, where your compensation is irrevocably attached to growth, and we’re all high-growth businesses with double or triple digit growth… you really have to care.”

For Lark, there are three major “fundamental flaws” in most organisations today that inhibit a truly customer-centric approach. The first is having product distinct from service.

“These organisations don’t see that these are irrevocably bundled together, and that it’s one continuous experience,” he said. “That’s the first break point.

“The second thing is that they measure the wrong thing. They’ll be measuring NPS [Net Promoter Score] and talking about numbers… At Xero, we get really obsessed about language, as it’s a fascinating telltale.”

Lark noted one of the words most commonly used to describe Xero by its customers is ‘love’, an emotionally-driven response that direct reflects how they feel about the brand. That has become vital in understanding how Xero communicates and interacts with its customers, he said.

“I don’t ask someone how satisfied they are with their experience, I ask how they feel about Xero,” he said. “You have to measure the emotional response to the experience a customer is having with you.

“The third thing is that if someone is in trouble, they want a solution that’s on their terms. Great brands figure out how to rearchitect their experience based on users.

“Often, when our small business customers are in trouble, they can’t deal with the solution right then and there because they’re making coffee, cutting hair, or doing something really important.”

As a result, Lark said integrating product and service, measuring the right emotional response, and architecturing for the customer really matter to achieving customer advocacy and loyalty.

“The greatest threat to a brand is not hate, it’s not something going ‘I hate X’, it’s indifference. Because when someone else comes along, they’ll take it or leave it. It’s not enough to do service just because you don’t want to be disliked; you’re largely finding collective indifference.”

Lark said it’s the smart organisations that are turning service into a weapon against their competitors, relating customer insights back to customer support and marketing teams and basing their approach on experience.

“All Uber had to do was say ‘we’re better than a taxi’,” he added.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch Marketing Council Episode 3: Launching in the technology sector

Our multi-part video series, Ready to Launch, is focused on unlocking the secrets of launching brands, products and services by exploring real-life examples from Australia’s marketing elite. The series is being produced as part of the Launch Marketing Council initiative by CMO in conjunction with independent agency, Five by Five Global.

More Videos

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Time is of the essence, especially for customer service teams. With chatbots, you can interact and assist customers at a larger scale, al...

Jai

Triple-digit customer database growth, personalised engagement become reality for Stone & Wood

Read more

Hey Emilie - great read, and I particularly liked the section on the pressure of having brand purpose/Gen Z spending habits. It's great t...

Chris Thomas

Have customers really changed? - Marketing edge - CMO Australia

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

Blog Posts

The ultimate battle: brand vs retailer

At the beginning every brand is pure. Every founder with a dream cherishes the brand like a newborn. But very soon that newborn goes out into the big wide world.

Simon Porter

Managing director, Havas Commerce

How the CMO can get the board on the customer’s side

For some CMOs, it’s easy to feel alone in the undying quest to better serve the customer. At times, it feels like the marketing department and the boards are speaking a different language, with one side trying to serve the customer, and the other side more focused on the shareholders and financials.

Jeff Cooper

CMO and board, Business Excellence Australia

The Secret Ingredients of a CX-Led Company Culture

When I talk to organisations around the world about their customer experience strategy, it is often the CMOs and their marketing teams who take the lead. They’re keen to improve the ways they attract and engage customers, and they want to understand the technologies that can help them make their customer experience truly outstanding.

Steven van Belleghem

Author, CX expert

Sign in