To infinity & beyond?
1. Growth & crisis
2. Why is this happening
3. Why is the customer never happy?
4. The GAME case
5. What can we do about this?
Progress of the Internet
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Dotcom Burst Steady Integration ?
People accessing and buying
Growth/Crisis in ?
Crisis of service
Growth in inclusion
Crisis of red tape
Growth in consolidation
Crisis of control / collaboration
Crisis of trust/confidence Growth through direction
Growth through creativity
Young 1994 --- 1999 --- 2004 --- 2006 Mature
After Greiner 1972
Growing pains as move from
mass service to service shops
Why the customer is never happy
The famous 1967 Stanley Milgram study which showed
there were at most “six degrees of separation”
between any two people in America
Despite the increase in population the number has
now fallen to 4.6
Customers bad experiences spread faster than ever
The Economist 21 01 06
Bombarded, cynical & informed
“We now have a far more
informed but far more cynical
Average of 3,500 daily
messages 99% have no
The Guardian 19 11 05
Expose your guts
… or the customers will
Our experience of the informed customer on a mission
1. Tangibles: site, usability, abandonment
2. Reliability: pick, pack & dispatch.
3. Responsiveness: customer contact, proactive
4. Assurance: ability to inspire trust & confidence.
5. Empathy: caring, individualised attention
provided to customers.
After Parasuraman et al 1994
• Many retailers now face a crisis of service due to
• The challenge is to move to a ‘service shop’ –
high customisation & low labour.
• The networked customer is cynical and
bombarded – target well and work with them or
they will work around you.
• Measure & monitor service levels to take us to
the next phase of growth.