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Greg Kilstrom
Your brand may be staying on top of current trends, but are you agile enough to stay relevant, resilient and successful as customers, competition and the world continues to change at a breakneck pace? I'm thrilled to share the newly revised version of my first book, the Agile Brand. I'm calling it the Agile Brand Revisited. It's been updated to reflect our continually changing world and it provides seven principles that form the backbone of an agile brand, offering detailed insights and actionable steps for incorporating them into your business strategy. This is the book that started it all and I'm excited to share it with you. It's now available in print and digital formats and available everywhere. Learn more by going to the Agile Brand guide website at www.agilebrandguide.com.
Ken Hughes
The Agile Brand.
Greg Kilstrom
Welcome to season seven.
Of the Agile Brand where we discuss the trend, trends and topics marketing leaders need to know. Stay curious, stay agile and join the top enterprise brands and Martech platforms as we explore marketing technology, AI, e commerce, and whatever's next for the Omnichannel customer experience. Together we'll discover what it takes to create an agile brand built for today and tomorrow and built for customers, employees and continued business growth. I'm your host Greg Kilstrom, advising Fortune 1000 brands on martech, AI and marketing operations. The Agile Brand Podcast is brought to you by Tech Systems, an industry leader in full stack technology services, talent services and real world application. For more information, go to teksystems.com to make sure you always get the latest episodes, please hit subscribe on the app you listen to podcasts on and leave us a rating so others can find us as well.
Now onto the show.
The consumer is no longer navigating the map. They are the map. Welcome to the era of the blue dot consumer. Always centered, always scrolling, and always expecting the world to orbit around them. What does that mean for your brand, though? It means everything from the rise of instant gratification to the evolution of seven yes, seven active generations, the customer experience game has changed forever. Today's guest is Ken Hughes, also known as the King of cx. He's a consumer, behavioralist, futurist, and one of the world's leading authorities on customer experience. He's here to break down how digital evolution, generational shifts and consumer expectations are reshaping the rules of engagement for brands of all sizes. Ken, welcome to the show.
Ken Hughes
Thank you very much. Delighted to be here.
Greg Kilstrom
Yeah, looking forward to diving in here. And yeah, I caught you at the Qualtrics X4 show and thought you did a great job there. And looking forward to having this conversation and sharing it. But before we dive in too much to the topic, why don't you start by giving us a little background on yourself and how you became known as the king of cx.
Ken Hughes
Yeah, sure. I'm a social scientist. I often describe myself as a Frankenstein. I'm kind of part anthropologist, part psychologist, part sociologist, part cyber behavioralist, fascinated by the science and psychology of the human mind. I've been in marketing and branding all my life. The king of customer experience came about. I was introduced as that at a conference a few years ago, and a couple of delegates kind of tweeted it afterwards. I thought, oh, I like that. Makes me sound like Michael Jackson. And so it kind of stuck. I'm passionate about. About what is customer experience and what it isn't. You know, a lot of people, the data science, the tech stack, it's all amazing stuff. But unless we're making people feel, you know, unless we're actually engaging emotion, driving with meaning and purpose, that's what loyalty is. You know, people mistake, I think, transactional loyalty for emotional loyalty. Buy nine cups of coffee, get a tenth coffee free. You know, if that was dating, it would be like, you know, does this hanky smell like chloroform to you? Like, it's kind of customer retention acquisition. Even the words we use, they're weird. And so a lot of my work involves just helping people lean into customer experience, marketing and branding from an emotional point of view. So all the behavioral stuff, great, great.
Greg Kilstrom
So, yeah, let's dive in here. And you know, I introduced a term in the intro. So let's talk about the blue dot consumer. And you've said we've gone from reading maps to being the map. Can you explain what that means and how that mindset has shifted that relationship?
Ken Hughes
Absolutely, absolutely. I have one here. So we use these, like, to navigate the world. This is a map of France. And so these cause many a divorce. And so old tech meant that you had to know where you are first, then you had to know where you were going, like the exact geolocation of it. And then of course, between those two points, there was like hundreds of potential routes. You had to choose the route yourself. You had to keep checking the map as you went. And so all the work really was on you. You grew up in a huge world and you understood as a consumer that you were a small part of it, kind of an inconsequential part of it maybe. And so the onus was on you to do the work, and you were the kind of the customer making their way through the customer journey. And that was the old way. And today, as you said that, you know, when we pick up our phones, we're at the center at all times. And so this metaphor I wrote a few years ago about the blue dot consumer, the consumer does expect to be at the center of everything. If they take a step left, they expect your brand, your business, your proposition to move left with them. So they're at the middle. And I love the metaphor because not only does it work from a kind of an instant, one click, one swipe world that we live in, it also gives a nod to personalization. Like, you wouldn't follow someone else's blue dot around, you know, because you're going to end up at their destination, not yours. When you ask for Google Maps for a restaurant, doesn't show your restaurants 20km away. It shows them on the street that you're at because it's contextual. And so all those modern values come to the surface really quickly with that metaphor. You know, we have to be contextual with our customers. You have to be highly personal. We have to be seamless, and friction is an instant. And so a lot of companies talk about customers, customer centricity, you know, oh, yeah, I put our customer at the center, but as a philosophy, very few are actually there. And so it's a challenge to look at how you distribute, how you market, how you converse to customers and put them truly at the center.
Greg Kilstrom
Yeah, yeah. And so, you know, from, from some of the work that I do, more on the, on the Martech space, you know, there is this, there was this notion of journey orchestration. I mean, still is, you know, still a term, but it was really predicated on this idea of we're going to guide the customer from this step to this step to this step. So, you know, I love what you're saying here about this blue dot, because that's really how customers see themselves. They don't see themselves as moving through a funnel or moving from one step in a journey to another. They're where they are. Right, so does that ring true?
Ken Hughes
100%. I mean, the customer journey work is amazing, but often brands feel that the customer at the end point, like the terminus, you know, it's the last thing that you need to think about. And so the priority for the brand becomes branding, marketing, logos, retail distribution, operations, all those things, not the actual moment that matters. The customers purchase the product, the customer's experience of the product, what they talk about in terms of their peer network, about the product, that's the power. The most powerful marketing asset we still have today is the conversations because customers have around our product with their peers and so understanding that and kind of recalibrating the entire organization. And some industries have this worse than others, like financial services, healthcare, These are fully product and policy centered industries that really the customer is some kind of inconvenient truth. In fact, if you think about your own hospital stay ever, you know, the moment the plastic band snapped on the wrist, you became a series of numbers. In fact, you know, date of birth, they don't even use your name. And so you enter this process driven experience as opposed to a, well, like what would healthcare look like if it was fully customer centered? What would financial services look like if it was fully customer centered, not product focused? And so these are the big challenges and we're in a race for relevance with the next generation of customers. As you alluded to seven different generations of consumers now, everyone from traditionalists, boomers, Gen X, millennials, Gen Z, Gen Alpha and now gen Beta. There are some industries that are simply not fit for purpose for the gen Alpha consumer coming their way. Those consumers are 12 and 15 now. So only in another five or 10 years they'll be entering the workplace, they'll be entering as major consumers everything from credit cards to travel. And I don't think industries are really ready for that sleeping giant of I want it, I want it now, I want it all on me. I want hyper personalization. I've grown up in a world of AI and robotics. Why doesn't everything work seamlessly and frictionlessly? And for marketing there's a huge challenge there, you know, and that's why there's so much work going on in customer experience at the moment. Because they realize that that relationship is everything. Because it's going to be a huge commoditization of product delivery and service delivery and even customer experience delivery at the high level. Everything's going to be perfectly personal and everyone's going to be amazing through the tech stack. So to actually differentiate yourself, you're going to have to have depth of connection. And that's what really the work I do on keynote stages all over the world, but also with brands to help them understand as we scale, how do we hold on to that authentic, genuine depth of connection with customers. It's a fight for the emotional heart space. Come the 80s, 90s and even the 2000s was all around mind space. You know, brands were hysterical, measuring mindspace, measuring cut through, measuring tone of voice, share of voice. Whereas really Today it's all about what kind of heart space you have. Do, do customers feel that sense of tribal belonging to you as a brand? Do they feel that brand community again? Do they share that brand story within their peer network? It's like going back to a metaphor of Frankenstein earlier for myself. For brands it's the same. The electricity that you jolt into your brand is that authenticity, that connection. Otherwise it's just pieces of, of various arms and legs stitched together. Product, commodity. And anyone can do that, you know.
Greg Kilstrom
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And so to kind of build on the generational thing that you mentioned. So you know, again, we have seven generations from you know, the traditionalist to gen Beta, which I feel like is a very, just unfortunate name for a gen, a whole generation of people. But it is what it is.
Ken Hughes
Maybe they'll generation.
Greg Kilstrom
Right, right. Maybe they'll feel differently about it. But. So you touched on this a little bit. But you know, it's like professionals, marketers, you know, often whether it's Personas or segments or however they look at customers, you know, they're, they're, they're dividing them into different groups. Now we've got seven generations in addition to that. How do you, you know, how do you look at values and expectations? Is it a generational thing or you know, how, how should, how should people be look or brands be looking at?
Ken Hughes
Yeah, I mean the generational divide is quite crude. It is to be fair. And we do, we do it in 15 year blocks and anyone who's got a 8 year old, a 12 year old and an 18 year old in their home right now can already see that even though those people might be of one generation, you can see the differences every three or four or five years now in terms of how they interact with tech, how their values are around seamless and purchasing and being a consumer. And so it's faster, the development is faster. There's also an Interesting commonality where you can talk to a boomer consumer and you can talk to a Gen Z consumer and they want the same thing, which is kind of a bit of a shock. The naturalization of the digital reality has happened across the generations much faster than we thought. And watching AI be adopted actually is really interesting case in point where you know, the generations you're as likely to see a boomer are a Gen X person playing with deep fake AI and content than you are a Gen Z and Gen Alpha. And so AI is going to be actually quite a technological leveler for us in a way. And that's to be fair, back to 2006 in terms of the tech interface that Steve Jobs gave us with the iPhone, that also was an acceleration point for various generations to get involved in the digital immigration. So I think there's actually more commonality than you would think. But certainly the influences that drive you, that set you up for life in terms of what your core values are the. So a boomer growing up listening to vinyl and being exposed to the Vietnam War and all those economic, political things is different to someone who's growing up today. I mean, the Gen Alpha kids grew up with the global pandemic and very much a different digital reality in terms of connection. And so their ability to connect through text, not voice, and then they're going to grow up inside that AI. Robotics, where robotics is going, is fascinating. And the line between, you know, oh, that's human versus tech is going to start to fade. So one of the pieces that I'm quite interested at the moment is AI therapy because globally we have mental health therapist shortage. And so there are some things like depression, loneliness, anxiety that are quite if then therapy discussions. And so obviously I can do that very, very well. And when you come away from text and go on to deepfake versions, the average person can log on for half an hour a day and have a chat to their therapist. And that kind of really blurs the line because if now you have a tech delivery, but making you genuinely feel quite listened to and you can feel the empathy, that's the beginning of the end, if you like, of that tech versus human dividend. And so our previous interactions with those kind of quite crude chatbots and things, and we were all thinking, God, is this AI? This is awful. That would fade away, it's 1.0. So imagine AI of 3.0, 4.0, 5.0 in five years time, where we all have our agent AI running our life from a consumer's point of view and in education, in healthcare, in therapy and all these touch points. We're used to technology being the prominent connection maybe, and we have empathy with that and we have connection with that and there are bigger social concerns around that. Of course, if you're familiar with the movie Wall E, the Pixar movie, you know, we could be that way. But I think there's a lot more in terms of customer experience and interactive and empathy to come with the tech. We're only in the beginning, so it's, it's a very exciting time for the customer experience industry. For marketing. If you told a 1950s marketeer that you could talk to everybody on individual basis, hyper personalized through a device in their pocket, and that was 10 years ago, they'd wet their trousers. But now we're telling them not only can we do that, but we can get super personal, we can use all their data, we can predict what they need and they can have a phenomenally personal experience through our brand. That's excellent. It's mind blowing.
Greg Kilstrom
Yeah, well, and, and along those lines, I mean, you know, already, you know, the, the stats are out there as far as, you know, consumers expect. They don't, they don't just like personalization, they expect it. So, you know, already there's this expectation there. But you know, extrapolate a couple years from now, you know, what does such prominent usage of AI, not only on the personal level, but from the brand level. What, what does that mean for, you know, expectations? You know, how, how do brands need to get ready for the expectations of consumers in a, in a few years?
Ken Hughes
Yeah, I think they need to do it now. Unless you're investing in AI and making people feel special right now, you're missing the point again. People get excited about data and systems, but unless you're outputting a feeling at the other side of it, you're kind of, it's pointless. Let me tell you a really simple story from Octopus Energy in the uk Sustainability utilities company. They sell, you know, gas, electricity, it's quite a commodity product, you know, so it's hard to kind of make that a successful brand story, isn't it? And so they decided to go after customer experience as their big differentiator during the pandemic. Obviously they had problems with staffing, working from home. They had a huge amount of inbound calls as people were furloughed and working from home and trying to pay bills. And so they had this extended call waiting time which they didn't like as a customer experience centered organization. So they thought, well, what can we do. We can't hire more staff because we just can't get them right now. And we can't slow down the inbound call. So we got to make people feel a little bit better while they're waiting. No one likes waiting on call to broadband. Oh my God. 30 seconds in and you're like listening to either bland music or you're listening to their campaign song from their recent ad or trying to be upsold, some other package. And so one of their executives had been reading an article a few weeks prior about nostalgia. And it had said in the article that the most nostalgic music you can ever hear as a human is the track that was the summer hit when you were 14. So age 14, that big long, hot summer you spent smoking sneaky cigarettes behind the bike shed full of hormones. And you know that summer is quite a coming of age summer. Whatever music backdrop was to that summer will have quite a powerful, positive feeling on you as a human. And so they thought, well, why don't we do this? And really, simply such a simple implementing of technology. The inbound call would have to harvest your number and link it to your account. That's normal for any customer. Inbound customer center, really. But then they went one step further. Once we have your account details on screen, we just pull your date of birth and then from the jukebox of 60 songs, we'll play you the song that was the summary when you were 14. So every single caller, no matter what the age you were, was getting the unique song that was the song hit. So then what happens when you're listening now, waiting. It's not just a standard product you're getting, it's personal just for you, based on a small piece of data. Makes you feel good enough. When people actually did pick up the call, they were told, no, I was listening to that. And so this is a really good metaphorical example for anyone listening here to say, well, what data can we use in the company right now with the technology we have right now? It doesn't have to be sophisticated, but certainly going forward it's going to get better, that we can make the customer feel something, because you're not making the customer feel seen, heard, valued, belonged to again. You're just another product that they bought. Today what we want is brands that get invited into their lives. That's an expression of love. You know, every time someone buys your product, they've invited you into their life. And it's an invitation that we need to respect a little bit more. And if we want customer Lifetime value. This word that gets thrown around boardrooms. Then we have to invest in a relationship. That's how relationship works. You invest, you have a desire to invest, not a return on investment ideology where you're thinking about what do I get back? No, you have to have a desire to invest in relationship. That's how human relationships work. And brand, customer ones are no different.
Greg Kilstrom
Yeah, and totally agree with that. I think often it's difficult to convince those that are very short term, ROI driven to do that because what you're talking about is longer term. And definitely lifetime value I think is critical to look at from a number of, even employee lifetime value and all of those things as well. How do you reach the skeptics that are like, yeah, that sounds nice, but instead of, you know, investing in the birthday, you know, or in the, the year of birth song or whatever, you know, let's do this other thing where we can get tangible results. And three, you know, how do, how do you kind of convince the skeptics there?
Ken Hughes
Yeah, I think I always tilt it back to human relationship again. So if you kept a ledger, a really weird ledger of everything your partner said nice to you and then you only did nice things back to them based on what they did to you, that would be a very toxic relationship, you know, I mean, especially when your partner found the ledger under your bed. And so that's what we do in branding and business. If that's the approach you're taking, you're saying, well, we kind of invest where we get a return. Our focus is revenue and profit and scale. But you know, the realization that without the customer, you don't have any business at all. And so really I bring people always back to the core human relationship aspects of trust, integrity, authenticity. And it is a long game. 100% like any relationship is, you get what you, you get back what you put in. And so I think for too long corporate and consumer brand relationships have been one sided. If you look at the word marketing, communication, we use that as, as a, as a subject. We teach it in MBAs and business careers all over the world. No one wants to be commun, that conversation is fine, but most brands have a megaphone in their hand and it's not market communication is supposed to be a two way thing. But for most brands, it's not even the new channels that we've been gifted, social media, where you can have a conversational economy. You know, 99% of brands are still using those channels as broadcast channels. It's just, look at me, look at My product, look what I'm doing. They try and dress up in funny ways. They might use whatever the current thing is, oh, let's use stitches, great. But actually it's still about me, me, me, me, me. So moving things from a me to a we economy is really important in authenticity of connection. And the brands that do that well build huge tribal fandoms and belonging. And that's evident in like brands like Harley Davidson. Talk about the hundreds and thousands of sales reps they have on the road every weekend because every single person riding a Harley is a sales rep for the brand. Red Bull is the same. Every snowboarder, every X Games guy with the tattoo of Red Bull on their shoulder. You know, it's not about the product in the can, it's about the community, the tribe. And so for every brand wanting to build that tribe, you think, well, how do we start? When you start with authentic connections, connection is everything. So how do we connect with people? How do we make them? How do we invite them into the brand? How do we invite the brand into their lives? How do we blur that line between us and them? How do we go into a kind of a collaborative consumer space as opposed to an us and them divide? These are all really great discussions that are happening in the CX strategy meetings.
Greg Kilstrom
And so how do you see this within an organization? Is this, I mean, is this a top down, like leadership has to be on board with this, Is this a bottom up? Is it all of the above? You know, how does this work best?
Ken Hughes
I think top down first if I have to choose one. Absolutely. The organizations that do well on this are the ones that live and breathe it from the very beginning. It's very difficult for an employee who isn't empowered, who doesn't feel this at their core to actually deliver amazing customer service. Let me tell you a really simple story from Virgin Atlantic. This family immigrating from the UK to the us, Mum, dad, little eight year old boy, they're checking in at the airport and the lady checking in starts to laugh because the behind the parents, the little boy is holding his goldfish in a plastic bag and she thinks you can't bring that liquid on board a plane. And anyway, fish don't get to emigrate to America if they're pets and it doesn't work like that. So she starts laughing and tells them they can't bring the fish on board. And the boy starts roaring, crying in the airport. Of course he does, he's emigrating, he's leaving his friends and his family and his School, his hobbies, you know, snot and tears. And quick as a flash, she butts in. No, no, honey, honey, what I mean is you, you can't bring him on board. I got to bring him on board myself. You got to give him to. And he's going to go with all the other VIP goldfish that are flying today to Atlanta. And so little boy wipes his tears and hands his fish proudly over to go to the VIP special tank on the plane. And so the parents get the boarding card, they wink at the lady, think, thank you, thank you. And they usher the kid through security, thinking, my God, isn't that Virgin Eddie wonderful? She kind of dissolved the pain point. He'll forget about the fish on the way. Now, what those parents don't know is that when they went through security, that lady at the desk took out her phone, took a few pictures of the fish, sent those pictures on WhatsApp to her colleague in Atlanta who left her workstation, drove to the local pet stop, bought an identical looking goldfish, and 10 hours later, when that boy's little plane touched down, she was standing at the top of the ramp and he took his fish proudly to America. Now, what's wonderful about that story, not only does it bring the Virgin brand to life, is it a peer to peer driven story that brings the brand to mind. All those things are true. But what's interesting to your point, neither those ladies had to call Sir Richard Branson and say, do you mind if I take an hour off to buy a fish? Because they live inside north organization. They've been trained, they've been empowered to say, if you see a moment in a customer journey where you think you can make a difference, where you can bring the brand to life for these customers beyond their expectation, then you do that. You do that without management approval. You do that at their core. And it's an organization that runs that way because of who Sir Richard Branson is. And there are so many organizations that bring me in to help them change that philosophy. But unless it comes from the top, unless the board, unless the CEO, unless every level at the top truly believe this is the way to go, all you get is motivational rah, rah. And then ultimately the thing breaks down at some point because everyone on the front line can activate this, but they have to feel empowered at every level of the organization to do it.
Greg Kilstrom
Yeah, yeah, I love, I love that story. And I mean, yeah, it definitely brings, brings to life that idea. It's a, you know, it's a, it's a Simple thing. It doesn't, it didn't involve, you know, databases and, you know, complex integrations and AI agents and so on and so forth. It involved just someone thinking about, okay, you know, how can I improve this?
Ken Hughes
And the humanity of that's quite interesting. Back to your point, no investment, the return on investment is off the charts in terms of the amount of times that story is being told. And then what I challenge people after I share that story on stages is, well, what are your goldfish moments like? If you haven't created a goldfish moment today for customers, then why should they tell your story? And if you're not creating goldfish moments at every touch point, at every opportunity, then you just wasted the connective moment that you had with the customer. And it does send people away to think, okay, every day, every day I need to do, I need to bring my goldfish moment to life. The most common question I get asked afterwards in Q and A, by the way. You do a 45 minute hour keynote and you're expecting amazing questions. There's always one smart person in the room that puts up their hand and thinks, what happened the first goldfish? Well, I'd like to think that the lady took him home and he lived a long and happy life in her house. It probably went down the toilet at Gatwick Airport, but they made a movie called Nemo about that afterwards. So it was all good.
Greg Kilstrom
Right, right. It could have ended well.
Ken Hughes
It, who knows?
Greg Kilstrom
So, you know, as, as we look out ahead, you know, we've got quantum computing, metaverse, humanoid robots, we've got all this stuff, you know, how soon it comes to fruition, you know, it's, it's hard to tell at the moment, but, you know, how does, how does a brand stay kind of grounded in emotion when there's also this, you know, even with AI, you know, there's so much pressure to adopt it, show return on it, and, and all that, you know, how, how do you recommend that a brand stays, stays balanced?
Ken Hughes
Yeah, I think there's two things I think definitely invest in technology as it emerges and keeping up with what AI can do is terrifying. Every single, I think everyone shares this fear as executives that I don't know enough and I, I should know more. And so look, it's evolving at a fast pace. What's interesting is the consumers are actually putting it through faster than we're able to give it to them. So it's one of those techs that the consumer is actually ready for it more than we are. So it's Really a place that we have to be playing quite quickly. So throw them out of the wall, see what you can do. Again, going back to the octopus energy example, you don't have to be overly tech driven, you just need to be smart. So for me it's about the creativity of your people. It's about, you know, looking at all these data lakes and tech stacks that we have right now and saying, well, what can we do better with the stuff we already have? It's not necessarily about, oh, there's this amazing robotic piece coming down the line. We can change all the way our kitchens work. Yeah, that'll all happen. It will revolutionize industries. It's not one industry that won't be revolutionized by robotics and customer experience. And marketing is no different. Different. I mean the most terrifying thing for marketeers listening to this is suppose for thousands of years and certainly for the hundreds that we've had marketing as a social science, we've been able to influence customers. That's the point. So we, we tell you what you need to buy. If you go back to 1950s Mad Men type stuff, you know, we say here's a product but let's dress it up in a different way and then let's press the buttons, let's use guilt and emotion and so on. And you know, that's the science of marketing in a way. But now what's going to happen with agent AI is that the consumer for the first time steps out of the consumer decision making process. I'm going to trust my agent AI to do to book my holiday because it knows the kind of places I have to go, it'll show me the hotels. And the more and more I use it, of course, the more the learning program kicks in. After six months it knows me so well that it doesn't even ask me anymore what brands I want because it knows the brands I want. And it'll either, you know, and take something as commodity as utilities. Again, I don't particularly care which electricity company delivers the electricity to my home. So it'll just broker that business every month. And so it could be a race to the bottom on some industries for price, for quality, for delivery times. But ultimately if you take a customer out of the customer decision making process, every marketeer listening to this should be terrified because you can't really influence a machine the way we can influence. I mean having so having spent my whole career behavioral sciences, that's the field of wonder marketing. Clever, creative can get people thinking, get people curious and off you go. Whereas machines don't get curious. And so business to machine. So we have B2B, B2C, B2M is a very exciting development. And so this is again, the power of investing now in customer experience and brand because the brands that are genuinely part of your life and that own a huge part of your heart, you're not going to get let your agent AI buy you anything else, but the command you'll give is buy me this one, because this is where I belong. And so belonging is so important. I have a book later on coming out in the year about Taylor Swift and I find her fascinating because again, not as an artist, even though she's a very talented producer, director, writer, all those things. As a savvy entrepreneur, she is someone who truly understands customer connection. And for 20 years she's been investing in the customer experience experience. She's been investing in vulnerability, authenticity, intimacy through social media. She was one of the first artists to use social media to kind of allow fans choose the next single from the album. And she, she understood collaboration, the power of digital collaboration. And to this day, even though she's a super idol at this point, she still will interface with fans, invite them into her home, step into their lives. She understands tearing away the line between us and them, as I spoke earlier on. And so as a brand, her success isn't necessarily just about music. Her brand is about, you know, she has the biggest tribal fandom, one of the biggest tribal fandoms in the world in her Swifty Army Army. And you know, where is the army of Lady Gaga and Pink? And you know, they're all popular artists, but they don't have an army because she invested in the customer connection. She understood that it's more about the music. The music is the product. But branding is more about that. Branding is about connection. And every single person in a 70,000 person arena has a parasocial relationship with Taylor Swift on stage, thinking that she's my best friend, she's the girl next door, she's not like Beyonce, kind of inaccessible. Taylor Swift is wholly accessible and that's an illusion. She's not. But, you know, you think that she is because of the intimacy that she's built and the authenticity that she's built into the brand. And so I spend my life with large brands all over the world. Doesn't matter whether it's Starbucks or NFL or wherever. And teaching them, you can have the scale, but you can also hold on to the intimacy. That's the magic, the magic of customer experience and investing in the right things and the Right. Connective points is that you can have depth and scale. And for a. That's what AI gives us. For the first time ever, we. We've always kind of had a balance there. We could have depth of scale. You could have the goldfish moment, the lady, you know, doing the one interaction. Then you think, oh, how can we make all our staff like that? So we sacrifice that then for scale. So we have a system, but it's only kind of very blunt. Whereas with AI now you've got depth and scale potential, you've got both things. And that's going to be a magnificent opportunity for customer experience, connection.
Greg Kilstrom
Yeah, yeah, I love it. Well, yeah, and definitely looking forward to catching your new book as well. Well, Ken, thanks so much for joining today. One last question for you before we wrap up up here. I like to ask everybody, what do you do to stay agile in your role? And how do you find a way to do it consistently to stay agile?
Ken Hughes
Well, I spend my life, I'm a professional motivational speaker, so I spend my life touring the world at conferences everywhere, and people always ask me, you know, where you get your ideas. I have a very unique and lucky role, I guess, because I can be at a health care conference on a Monday, financial services on a Wednesday, branding and retail on Friday. I can go from Dubai to New York to Sydney. And so I'm continuously jumping markets and jumping industries and I'm exposed to the same challenges, challenges in one way, and hearing how all the different industries and brands are dealing with those and often them exposed to different technologies and different. So in terms of how I stay agile, I find that actually by exposing yourself to new ideas on a continuous basis, you learn after a few months and years of that to always kind of look for the next thing and look for the next idea. And so I suppose all the downtime, then on planes in between all those places, I'm continuously weaving a kind of a fabric of what's happening and who said what and what the challenges are. And actually, if you look, let time just distill that for you, you end up thinking like, oh, yeah. So my mind's always kind of curious about where we are and where we're going. So you have just exposure to all those conversations is great, which is why podcasts like this are great. And so anyone listening who take, anyone who takes the time out of their day to consciously decide to listen to something else, that to me is the secret of agility, because you're, you're, you're choosing to either learn something new or maybe challenge what you already know. You're choosing to put something else into the top of the funnel. So everyone listen to this right now. You've made the right choice.
Greg Kilstrom
Nice. I love it. Well, thanks again to Ken Hughes, the King of cx, for joining the show. You can learn more about Ken and his work by following the links in the show. Notes thanks again for listening to the Agile Brand brought to you by Tech Systems. If you enjoyed the show, please take a minute to subscribe and leave us.
A rating so that others can find.
The show as well. You can access more episodes of the show@theagilebrand.com that's theagile brand.com and contact me if you're interested in consulting or advisory services or are looking for a speaker for your next event, go to www.gregkilstrom.com that's G R E G K I H L s t r o-m.com the Agile brand is produced by Missing Link, a Latina owned, strategy driven, creatively fueled, fueled production co op. From ideation to creation, they craft human connections through intelligent, engaging and informative content. Until next time, stay curious and stay agile.
Ken Hughes
The Agile Brand.
Greg Kilstrom
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Podcast Summary: The Agile Brand with Greg Kihlström®
Episode #676: The Consumer is No Longer Navigating the Map—they Are the Map, with Ken Hughes, the King of CX
Release Date: May 14, 2025
In Episode #676 of The Agile Brand podcast, host Greg Kihlström engages in a compelling conversation with Ken Hughes, renowned as the "King of CX." The discussion delves deep into the evolving landscape of customer experience (CX), the shifting paradigms brought about by digital transformation, generational changes, and the burgeoning role of artificial intelligence (AI) in shaping consumer-brand relationships.
Ken Hughes introduces the concept of the "blue dot consumer," a metaphor illustrating how consumers are now the central focus of brands, effectively becoming the map themselves. Unlike the traditional consumer journey where brands guided customers through a predefined path, today’s consumers expect brands to adapt instantly to their needs and preferences.
Ken Hughes [04:24]: "The consumer does expect to be at the center of everything. If they take a step left, they expect your brand, your business, your proposition to move left with them."
This shift signifies a move towards hyper-personalization and seamless, frictionless interactions. Hughes emphasizes that while many companies proclaim customer-centricity, few genuinely embody it in their operations and strategies.
The conversation transitions to the impact of generational shifts on consumer behavior. With seven distinct generations—from Traditionalists to Gen Beta—brands face the challenge of catering to diverse expectations and values. Hughes points out that despite the broad generational categories, there is significant overlap in consumer desires across age groups, particularly in the expectation for personalized and intuitive experiences.
Greg Kilstrom [10:23]: "We have seven generations from you know, the traditionalist to gen Beta, which I feel like is a very, just unfortunate name for a gen, a whole generation of people."
Hughes notes that technological advancements, especially AI, are leveling the playing field, enabling even older generations to engage with cutting-edge technologies similarly to younger cohorts.
A critical theme discussed is the distinction between transactional and emotional loyalty. Hughes argues that true brand loyalty stems from emotional connections rather than mere transactional incentives.
Ken Hughes [04:07]: "Unless we're making people feel, you know, unless we're actually engaging emotion, driving with meaning and purpose, that's what loyalty is."
He cites the example of Octopus Energy in the UK, which transformed a routine service interaction into a personalized and emotionally resonant experience by playing a caller’s favorite nostalgic song, thereby enhancing customer satisfaction without significant technological investment.
Hughes underscores the importance of organizational culture in delivering exceptional customer experiences. He advocates for a top-down approach where leadership actively fosters a customer-centric mindset, empowering employees at all levels to create meaningful interactions.
Ken Hughes [20:55]: "The organizations that do well on this are the ones that live and breathe it from the very beginning."
The story of Virgin Atlantic exemplifies this approach, where employees are empowered to go above and beyond standard protocols to delight customers, thereby strengthening brand loyalty and advocacy.
The discussion shifts to the transformative potential of AI in marketing and customer experience. Hughes predicts that AI will revolutionize the way brands interact with consumers, enabling unprecedented levels of personalization and efficiency.
Ken Hughes [25:11]: "We're only in the beginning, so it's a very exciting time for the customer experience industry."
However, he also cautions about the risks of over-reliance on technology, emphasizing that emotional connections and authentic relationships remain paramount. Hughes highlights the necessity for brands to balance technological advancements with genuine human interactions to maintain trust and loyalty.
Hughes explores the possibility of achieving both depth and scale in brand interactions through the intelligent use of technology. He uses Taylor Swift as a case study, illustrating how the artist successfully blends mass appeal with deep, authentic connections with her fanbase.
Ken Hughes [29:37]: "Taylor Swift...she understands collaboration, the power of digital collaboration. She was one of the first artists to use social media to allow fans to choose the next single from the album."
This example underscores the potential for brands to scale their operations while maintaining personalized and meaningful engagements with their audience, leveraging technology to enhance rather than replace human connections.
Towards the end of the episode, Hughes shares personal strategies for maintaining agility in his role, emphasizing continuous learning and exposure to diverse industries and ideas.
Ken Hughes [29:55]: "Anyone listening who take, anyone who takes the time out of their day to consciously decide to listen to something else... that to me is the secret of agility."
He advocates for a proactive approach to embracing new technologies and ideas, encouraging marketers to remain curious and adaptable to stay ahead in the dynamic landscape of customer experience.
Episode #676 of The Agile Brand offers invaluable insights into the future of customer experience, emphasizing the necessity for brands to prioritize emotional connections, leverage technology thoughtfully, and cultivate an agile, customer-centric organizational culture. Ken Hughes’ expertise provides a roadmap for brands striving to navigate the complexities of modern consumer expectations and technological advancements, ensuring sustained relevance and loyalty in an ever-changing market.
Notable Quotes:
Ken Hughes [04:24]: "The consumer does expect to be at the center of everything. If they take a step left, they expect your brand, your business, your proposition to move left with them."
Ken Hughes [04:07]: "Unless we're making people feel, you know, unless we're actually engaging emotion, driving with meaning and purpose, that's what loyalty is."
Ken Hughes [20:55]: "The organizations that do well on this are the ones that live and breathe it from the very beginning."
Ken Hughes [25:11]: "We're only in the beginning, so it's a very exciting time for the customer experience industry."
Ken Hughes [29:55]: "Anyone listening who take, anyone who takes the time out of their day to consciously decide to listen to something else... that to me is the secret of agility."
Additional Resources:
Ken Hughes’ Upcoming Book: Hughes mentions an upcoming book focusing on Taylor Swift’s branding strategies, promising deeper insights into authentic customer connections.
Octopus Energy Case Study: For more on how Octopus Energy leverages personalization to enhance customer experience, refer to their recent campaigns and customer feedback.
The Agile Brand Website: Visit www.theagilebrand.com for more episodes and resources on building agile brands.
Stay Connected:
For more insights into marketing technology, AI, and customer experience, subscribe to The Agile Brand podcast and follow Greg Kilstrom on www.gregkilstrom.com.