But there is a potential problem that occurs when companies become so enamored with technology that they forget why they are using it. The goal isn’t to have better technology. The goal is to create a better customer experience.
I recently had the opportunity to interview Clifford Hudson, former CEO of Sonic Drive-In and co-author of Bricks and Clicks, on Amazing Business Radio. Hudson spent 35 years at Sonic. He didn’t start by cooking burgers or running food out to the cars. At age 29, he joined Sonic as legal counsel and eventually spent 23 years as CEO. During his leadership, Sonic grew from approximately 900 stores to 3,600, and sales increased from $300 million to $4.5 billion.
In our interview, Hudson shared several lessons about how Sonic modernized a very traditional business without losing sight of the customer. After all, all the technology in the world is worthless if you don’t have customers.
Start with the End in Mind
One of the biggest mistakes some companies make is getting seduced by technology to the point of buying it before they realize how customers will use it. Do the opposite.
Start with the experience you want customers to have and work backward. What do you want them to experience? Even more importantly, what do you want them to say about you? Once you have the answers, only then should you determine what processes, people and technology will help you get there.
When asked how he thought of technology, he said, “Don’t think about technology. Think about your customer.” Whenever the company considered something new, he asked how it could enhance the customer experience. His point was that technology should support the customer experience, not drive it.
Success Can Be Dangerous
When things are going well, it’s easy to become comfortable. Sales are strong, customers are happy, and business is growing. Why change anything?
While he didn’t say it exactly, Hudson was making the point that Marshall Goldsmith so eloquently explained in his bestselling book, What Got You Here Won’t Get You There. While the book focuses on leadership opportunity, the point applies to what prevents a company from growing: success can often get in the way of more success.
Hudson knew that competitors were always trying to take customers away from them, so even in their very best year, he would keep asking, “What’s next?”
Use Technology to Create Convenience
Hudson shared a story about how Sonic started taking credit cards. About 25 years ago, Sonic learned from Visa that more consumers were using credit cards. At the time, credit card sales represented only 5% of Sonic’s sales.
Hudson’s advice is to stop asking, “What can this technology do?” Instead, ask, “What can this technology do for our customers?”
Technology wasn’t the reason for the growth. It’s what technology created. In one word: convenience.
As a Leader, You Don’t Have to Have All the Ideas
Near the end of our interview, I asked Hudson to share a favorite idea from his book, Bricks and Clicks. His answer had less to do with Sonic and more to do with an important leadership lesson.
Don’t assume that because you’re the leader, you have to have all the best ideas. Hudson said, “New ideas abound around you. Keep your head up and your eyes open and seize on when it makes sense.”
The credit card idea didn’t originate from Sonic. Hudson and his team saw what was happening in other industries. Other companies inspired the innovation, and other team members can do the same. His point was to watch and listen to what others are doing, especially outside of your industry. That’s what customer-focused innovation looks like.
Final Words
Technology will continue to change. There will always be a new app, system, and now, AI solution promising to transform your business. Some of them will, but technology should never be the strategy. The customer should be the strategy.
Start with the experience you want customers to have, then determine what you need to deliver it. Stay curious about “what’s next.” Pay attention to what other companies and industries are doing. And when the technology can make the experience easier, more convenient or simply better for your customers, that’s when you’re using it for the right reasons.