SDP-003. Make It Easy For Customers to Come Back

Guy: Three. Make it easy for customers to come back.back.

Guy: Welcome to Service Design Principles, I'm Guy Martin, Joined by the author of the ServiceGuy Martin, Joined by the author of the Service

Design Principles series of books. Founder of the Swiss Innovation Academy and Service Designthe Swiss Innovation Academy and Service Design

Practitioner, the energetic Daniele Catalanotto.

Daniele: Hi Guy, it's such a pleasure to hear your voice again.your voice again.

Guy: Thank you very much. Now, each episode, if you're new to this podcast, we look at one ofyou're new to this podcast, we look at one of

the principles from from your book. Daniel The Service Design Principles 1 to 100. And todayService Design Principles 1 to 100. And today

it's principle number three. Make it easy for customers to come back. Now, if you want to turncustomers to come back. Now, if you want to turn

a first time customer into a repeat customer, you have to make it easy. So instead of startingyou have to make it easy. So instead of starting

with the ideal situation where we're making it easy for customers to come back, can you give aneasy for customers to come back, can you give an

example of where this doesn't happen? What's the negative example? Where are people or businessesnegative example? Where are people or businesses

making it hard for customers to come

Guy: back?

Daniele: Okay. So a good example is in Swiss in Switzerland, we have this thing where every yearSwitzerland, we have this thing where every year

you have to decide where you put your health insurance again,insurance again,

Guy: Okay.

Daniele: because every year the prices change. And a lot of us,you know, just move to theAnd a lot of us,you know, just move to the

cheapest one every year and as the cheapest one is very different every year, we just have tois very different every year, we just have to

change every year.

Guy: Mm hmm.

Daniele: But what happens and this happened to me this year is that sometimes you come back tome this year is that sometimes you come back to

one that you already have been to.

Guy: Right

Daniele: And so what happens is that I have to refill all the same stuff then I had to fill tworefill all the same stuff then I had to fill two

years ago, you know, and it's like, but you already have that kind of information. So and Ialready have that kind of information. So and I

have been already a customer, and so why can't I just say, Hey, I'm back, it's okay. Or the samejust say, Hey, I'm back, it's okay. Or the same

happens, you know, with phone companies. We have the same thing with phone companies inthe same thing with phone companies in

Switzerland where from mobile mobile plans, you know, they some one year is the cheapest one isknow, they some one year is the cheapest one is

in that one and the next year it's another one. AndAnd

Guy: Mm hmm.

Daniele: so basically you've been almost any of us have been the customer of all of them at oneus have been the customer of all of them at one

time in our life. But every time you go back, they will just say, okay, I have to make athey will just say, okay, I have to make a

completely new

Daniele: profile for

Guy: Right.

Daniele: you.

Guy: Oh, I get this with hotels.

Daniele: Yeah.

Guy: Like, I go in, I visit our hotel. I've made the booking. They have all the information. I'mthe booking. They have all the information. I'm

a loyalty customer, even at some of these places. Right. So they have more than the normalRight. So they have more than the normal

business would have about me. And I come up to the desk and they give me the registration card,the desk and they give me the registration card,

and it's completely empty. So you already have this information. Why do I have to fill out mythis information. Why do I have to fill out my

name again and my address and, you know, my phone number and my passport number and. But youphone number and my passport number and. But you

already have this. Why couldn't you just print this out and I'll sign it for you, or even letthis out and I'll sign it for you, or even let

me sign it digitally or something like this? It's so frustrating. So it makes me less likely,It's so frustrating. So it makes me less likely,

even though my loyalty customer, to say, well, what's what's the benefit of my my loyalty here?what's what's the benefit of my my loyalty here?

Why did I set up his profile if it's no use and I have to spend all this time refilling out allI have to spend all this time refilling out all

of this information, it's so frustrating.

Daniele: And then and obviously, you know, people will tell us. Yeah, but it's, it'speople will tell us. Yeah, but it's, it's

because of the privacy goes, you know and, and then I'm not a I'm not a legal expert, but Ithen I'm not a I'm not a legal expert, but I

would assume that there is a way to say when you close that contract, please keep the basic dataclose that contract, please keep the basic data

about me in your register because I might come back and or say please remove everything youback and or say please remove everything you

know, because obviously, you know, there is data that they don't need because it might change andthat they don't need because it might change and

stuff. But say, Hey, my name, my birth date, you know, everybody has that doesn't I don't feelknow, everybody has that doesn't I don't feel

that there's a problem that every company in Switzerland knows that I'm 34 years old. It'sSwitzerland knows that I'm 34 years old. It's

okay. And I think there we always we often hide behind the legal stuff where we say, yeah, butbehind the legal stuff where we say, yeah, but

it's a big legal problem. And often if you speak with a good lawyer, you know, they will tell you,with a good lawyer, you know, they will tell you,

Oh, it's not so complicated after all. You just have to be clear in the contract.have to be clear in the contract.

Guy: Yeah. We just have to ask them. Get their consent.consent.

Daniele: Yeah.

Guy: But. But then that. That that takes effort as well. Because then you need a mechanism toas well. Because then you need a mechanism to

manage that consent and to hold the information, even if they're not a customer. So maybe it'seven if they're not a customer. So maybe it's

the more difficult path, but it's. It's better for the customer. Right? It makes it easier.for the customer. Right? It makes it easier.

Daniele: yeah, definitely. And that's where small businesses have a, have a big, big chance.small businesses have a, have a big, big chance.

I think today you know of often service design is practiced by the big companies but it's hardis practiced by the big companies but it's hard

for them because if you want to do that at scale, you know it's super hard. But when you are, youyou know it's super hard. But when you are, you

know, a cafe or boulangerie a bakery, you know, and, and you're you're just one or two, you know,and, and you're you're just one or two, you know,

if you do some exercises, you know, to improve your memory, you don't even have to writeyour memory, you don't even have to write

anything and have legal problems of storage. You know, you just remember that this is Guy and Guyknow, you just remember that this is Guy and Guy

loves his croissant,

Guy: Right.

Daniele: you know, and it's okay. You know, And as you are a small company, you can do thatas you are a small company, you can do that

easily in your mind, which there is no legal framework for what you can store in your minds,framework for what you can store in your minds,

you know, And so you have an unfair advantage here.here.

Guy: Yeah

Guy: , reminds me actually, of I have a local coffee shop, and they came in several years ago,coffee shop, and they came in several years ago,

and I thought, okay, I like my coffee. I come from, from Melbourne, which is the coffeefrom, from Melbourne, which is the coffee

capital of Australia. And I moved to Denmark to a town called Vejle. And the coffee culture isa town called Vejle. And the coffee culture is

not quite the same as it is in Melbourne. So I'm looking for good coffee. This guy just opened up.looking for good coffee. This guy just opened up.

So I visited his store and and got a coffee. It was a good coffee so I thought, alright, I'llwas a good coffee so I thought, alright, I'll

come back here. And the next time I came back here he said hello. He didn't know my name athere he said hello. He didn't know my name at

that point but said, Oh you want a tall cafe latte, right. You want a big cafe latte and yeah.latte, right. You want a big cafe latte and yeah.

Okay, thanks. So already I'm saying okay, this guy knows what he's talking about and weguy knows what he's talking about and we

established this relationship. He got to know me by name and it was just a really pleasantby name and it was just a really pleasant

experience every time I went in there. So it was very easy for me to return. Right. I didn't evenvery easy for me to return. Right. I didn't even

like other coffee shops started opening up and I was like, I don't even feel I need to try thatwas like, I don't even feel I need to try that

because I have what I want here, right? There's no friction coming back here. And, you know,no friction coming back here. And, you know,

brand loyalty. I mean, it only goes so far, right? So if there's as much friction to remainright? So if there's as much friction to remain

a customer as there is to churn to a competitor, then You already have the customer make it easythen You already have the customer make it easy

for them to stay. If you make it hard for them to stay or harder than it is for them to goto stay or harder than it is for them to go

somewhere else, they'll go somewhere else. I guess there's look, there's lots of research orguess there's look, there's lots of research or

lots of people trying to understand how do I make my customers more loyal. And this ismake my customers more loyal. And this is

probably one of the easiest ways, right? Is you just make it easy for them to return.just make it easy for them to return.

Daniele: Yeah. And I'm just return you know it can be the return of having a relationship acan be the return of having a relationship a

coffee is a good example. You know, it's something that starts ends every day, you know.something that starts ends every day, you know.

But also there are relationships where you are with a company with a subscription, and then youwith a company with a subscription, and then you

end it because maybe you don't need it anymore for that time, but you still might like it. Andfor that time, but you still might like it. And

you say, Hey, I don't use it anymore now, but I know maybe in a year I'm going to use it again.know maybe in a year I'm going to use it again.

And so I think there it there are these two moments which are little endings. You know,moments which are little endings. You know,

there are the big endings and there are the small endings. Small endings happen lots, yousmall endings. Small endings happen lots, you

know. And if we can go become better at those small endings and understanding that, oh, evensmall endings and understanding that, oh, even

if it ended now and we will restart tomorrow, maybe I can remember something of thismaybe I can remember something of this

interaction to give it back to like later look like the coffee guy that you know. So yeah youlike the coffee guy that you know. So yeah you

took a I grant the it. Oh that's, oh that's really cool. Obviously you need to train yourreally cool. Obviously you need to train your

memory, you need to do a bit of work. And here again, small businesses. Oh my God they haveagain, small businesses. Oh my God they have

this unfair advantage

Guy: for sure. I mean, you mentioned subscriptions and the video streaming services.subscriptions and the video streaming services.

There's so many of them. So now people are starting to cancel, like when their favoritestarting to cancel, like when their favorite

show ends, they'll cancel and they'll go to another service. They won't have five servicesanother service. They won't have five services

running at once because that's really expensive. So they'll pick and choose and it will beSo they'll pick and choose and it will be

seasonal. Right. When when my show ends after ten episodes or 20 episodes, I'll cancel. I'llten episodes or 20 episodes, I'll cancel. I'll

go to another service and watch another show. But then next year, whe the new season is on, IBut then next year, whe the new season is on, I

want to come back. And if I'm coming back and you've already got my favorites, they're on myyou've already got my favorites, they're on my

preferences and all of that sort of thing, that makes it really easy.makes it really easy.

Daniele: I'm one of the guys doing that with Disney. So sometimes I just just because, youDisney. So sometimes I just just because, you

know, the Star Wars series are very good, but I do not need all the rest. And so basically I'mdo not need all the rest. And so basically I'm

taking again, the subscription. And what's lovely to me is that when I take it again,lovely to me is that when I take it again,

basically I have all the things already saved and it knows that the last time it came, I cameand it knows that the last time it came, I came

for this series. So it shows me is it this one that you want to look because we know you'rethat you want to look because we know you're

back, which is super cool.

Guy: Fantastic. Great conversation. Thanks very much,Daniele , again. And we'll see you onmuch,Daniele , again. And we'll see you on

principle number four.

Daniele: Thanks so much. Right.