What you’ll learn:
In a world where social distancing is government mandated, businesses must change the way in which they interact with their customers. On today’s episode, we talk with JP Persico, Director of Innovation and Strategy at Bosch USA, on the importance of not only digitalizing your sales channel but of humanizing your online communication with clients.
About our guest:
Jean-Philippe Persico leads corporate development and strategy initiatives in the automotive aftermarket division at Bosch in North America. He thrives by finding disruptive services and product ideas and execute them through all phases of development and launch. JP recently launched an ecosystem initiative which is built on a mix of venture investments and internally developed solutions, to create the maximum value for Bosch’s customers. All these initiatives help the organization digitally transform the Bosch business to be nimble and future proof in an everchanging market landscape.
Key takeaways from this episode:
- Why building a new buying experience for customers—using innovation, digitization, and transparency—will help the automotive industry power through this emergency—3:10
- The power of empathy in response to the coronavirus crisis—8:45
- How the coronavirus is affecting different sectors of the automotive industry—9:42
- Why now is not the time to sell, but to listen—10:20
- Strategies to rethink your marketing approach when your industry is experiencing layoffs and closures due to COVID-19—12:02
- How to better serve your customers when in-person is no longer an option—17:40
- Partner venturing: how to leverage tools from multiple businesses to problem-solve and build solutions for your brand—19:46
- How to use passive listening to learn about your customers’ good experiences with your product—24:50
- JP’s advice to CMO’s, business owners, and marketers on how to standout and rise above the noise—28:09
Announcer: Welcome to the Page 1 Podcast, a twice-weekly podcast featuring a variety of guests and thought leaders on topics ranging from channel strategies to tariffs, influencer marketing, best in class product launches and all the details about how to accelerate your eCommerce sales with the big box retailers, or what we call rCommerce. Now, here’s your host, Luke Peters.
Luke Peters: Thanks for joining us on the Page 1 Podcast. I am your host, Luke Peters, CEO of NewAir Appliances and also CEO of Retail Band Digital Strategy Agency.
Luke Peters: We are now in a Coronavirus world and I know that’s on everyone’s mind. So I’m going to adapt all of these interviews to ensure that you listeners are getting the most out of the Page 1 Podcast. So you can expect us to get right to the point, I’ve cut out my long introduction and hopefully give you valuable insights so you can focus on your businesses with COVID-19 impacts and it is impacting all of us. Quickly, we are offering a free evaluation of your online digital strategy for Retail Band and if you’re interested, email me at email@example.com.
Luke Peters: Now more than ever, it’s important to be strong on the digital side. We’re talking about selling into Home Depot and Wayfair, Walmart and Amazon and all of those other online channels.
Luke Peters: In this episode, you’re going to learn from JP Persico and you’re going to learn how he innovates in markets and launches new SKUs with Bosch in the automotive sector. JP is a leading corporate development and strategy individual in the automotive aftermarket industry division of Bosch North America and he’s going to bring a lot of innovative thinking to this podcast. JP, welcome to the podcast and if you don’t mind, why don’t you start with a brief introduction?
JP Persico: Thanks for having me, Luke. Sure. I’ve been in the States for 10 years now. I’m originally from Switzerland. I was always in digital transformation, digital strategy. Right after college, I started a company who looked at sales, how they were done at that time in the more physical, bringing your binder with way and how we could transform it onto a digitalization platform, which at that time when the iPad one was launched, was our medium to really go out to sales forces and say, “Hey, go away from paper, bring it to the digital space,” which then led me to join Bosch and help them going down the road of really finding new ways and how we can approach our customers since becoming a company, which is enabled through digital transformation and those new products which are outside of the gimmick of the hardware and more into a softer space.
Luke Peters: Great. And JP, maybe in more of a tangible form before we dive into this interview or maybe to start this interview is, can you give us maybe an example or briefly describe better for the audience in a tangible way, what you’re doing. Would there maybe be a product example or how you think about and innovate?
JP Persico: Sure. I think I’m bringing it down to the term of going to a dentist. If you think about your vehicle, it’s always when your vehicle has a problem, it’s like you and yourself going to the dentist and some people have a lot of fear of going to the dentist. There’s not only that they have fear because of pain, they have also fear of what the bill is at the end of the day. And that’s the same as vehicle.
JP Persico: So we are trying to completely transform how you experience a vehicle maintenance. It should not be like a dentist. This is actually should be like booking a trip on a leading platform out there where you can do everything with a couple of clicks and then you’ll get your credit card and you know you have a great experience coming up. At the end of the day, an automobile is a recourse for us and it has to fulfill lots of tasks.
JP Persico: So we want to make sure that this vehicle is well taken care of and it’s taken care of with the most current and best technology there available. And that’s what we are trying to do is, so we are trying to transform that journey. You as the customer has to go for every single time you have your vehicle taken care of, become more of a journey of joy and less of a journey of pain.
Luke Peters: Wow, that’s great. And I can relate. Not that I want to jump into this, but I’ve worked on cars all the time as a kid, rebuilt motors, rebuilt pretty much everything, even worked at a transmission shop and did not rebuild the transmission. I think it’s literally more difficult than a motor for a lot of reasons. But I got to tell you, you may be working on a different area, but just, your answer there was interesting, making the experience a lot easier.
Luke Peters: And I got to tell you, a Yukon XL that we brought in, just to add a local shop, I was amazed actually at how they had diagnosed a power leakage, which ended up being a sensor on the brake pedal that was slowly draining the battery.
Luke Peters: And I know they can do this because now they have computers in there. But I got to tell you, I was even skeptical when they were telling me that this was the problem and it was a very unique problem. I would have never guessed that was the issue. But as a consumer, I was pleased with the outcome because it was pretty seamless. And again, you guys, you may work on a different side of the business than this experience that I’m relating.
Luke Peters: But I think just from a customer standpoint, that was a pretty good outcome and I totally agree with you that there’s a lot of friction in that industry and you’re probably going to win a lot more customers by reducing that friction.
JP Persico: Yeah, actually similar to what you experienced. You want to bring transparency in, so if you would have gone to an individual who has told you that you need to get this work done and wouldn’t have told you exactly why and just they’re like, “Well we do this, we bring you a new battery and then the alternator has to be done too,” and you wouldn’t have had any correlation of why this is actually happening. Most certainly what has come out of this experience is a complete different mindset.
JP Persico: So you experienced the top off the crop of what you left out there, which are shops who are willing to share to the customer the journey they have to go through, the repair experience they have to create and as well as also the craftsmanship which is behind it. And I think that’s really what we want to bring towards an end consumer.
JP Persico: We are building software solutions which give you a certain level of transparency as a consumer to educate yourself while also making decisions on how much care you give to the assets you’re actually owning and at the end of the day, that’s really what it comes down to. The experience of an individual car owner has multiple phases. You go through the honeymoon phase where you love that car because everything works.
JP Persico: And then you get everything done by the dealership because it’s all been born to you and it’s enlightened in cycles and you don’t have to spend too much money to get the assets going. But then you hit that post honeymoon, post a few first years, you’re still really loving this is asset. Oh and now it’s becoming actually something I have to take care of more often. I have to manage more often.
JP Persico: And then you want to manage it with the best care so you can prolong the life of this IASIS as long as possible. And that’s what you’re really striving for, you’re striving for to show you the value you put in into repairs on the car.
Luke Peters: Yep. And that makes a lot of sense. And speaking of that in the industry, in starting out in a Coronavirus mindset, what type of changes are you seeing even say from how you work and then maybe on a demand side and then maybe even on a product or ideation side?
JP Persico: Sure. So from how we work, I would say the biggest difference in our case is we have, as a team of individual consultants who are out there on the street on a daily basis, working with our network of workshops from making, I’m giving them the best advice and transforming them into the next business stage.
JP Persico: These guys usually walk into a shop where they have an appointment or if this is a person they know, an owner they know, and they know by the first second, what’s the state of affairs and walking into the door. Now this option’s gone. Now we have to pick up the phone. The state of affairs can be anything. It can be from fear to almost completely shutdown, but it also can be the state of affairs of like change is happening.
JP Persico: “I need to be here, I need to make a change now, and now I have an opportunity.” So it really changed from us of how we are approaching these individuals. And a lot of it is about empathy. It’s not about how to change their feelings, it’s about listening to their feelings and listening to their challenges. In this situation, you have to cope with this. Everyone has own challenges, everyone is affected differently.
JP Persico: I am personally affected with it, it’s not just you are personally affected with it. And we all need to deal with that overall challenge separately. And to understand that as brands, as organizations, we do not have the power to change people’s mindsets. But we have the power of being empathetic and real at this time.
Luke Peters: And that’s from a sales perspective with the clients. That changes how you’re communicating because you’re having to hop on a phone instead of seeing them in person. I imagine that’s not better unfortunately. It’s maybe hard for some of your customers or to convert them over to video calls, maybe I’m guessing, so that probably changes that aspect also.
JP Persico: Yeah. If you’re talking to thousands, individual business owners who are facing challenges such as layoffs, such as closing shop for a couple of weeks, such as complete the duration of the customer base, such as no changes at all because their community’s not affected yet. But we as the corporation, made the choice to take our people offline in the sense of online, but off the street really early on because we were really concerned that this is spreading really fast and we didn’t want to have our team exposed to any of the risks out there.
JP Persico: So that means that we also have to change in how we market and how we approach people. And I think it’s not the time to sell, it’s a time to listen and to be an ear and a support system towards our customers because at the end of the day, everyone is facing different challenges.
Luke Peters: In the industry specifically, I think it’s essential, so the shops I believe are all staying open.
JP Persico: Correct.
Luke Peters: People are driving their cars less so they’re probably seeing a little bit of a demand hit. Is that kind of a quick overview?
JP Persico: Absolutely. I mean it’s an essential industry, but you can imagine that if Shell can place orders, people are not going to be going outside. And then we have a massive economic hit as the all know. So the repair of your asset at this point in time might not be front of mind, especially if you’re working from home or if you just lost your job because your business had to close because it was not deemed essential.
JP Persico: So that said, the demand in the market definitely wasn’t hugely hit. And therefore, shops had to make decisions considering their environment of where they’re in. And it’s such a big country, so here we have COVID-19 affects each community differently. And you see that.
Luke Peters: And from your end on a marketing side, how would you advise other businesses? Obviously they could be totally different types of companies than the one you’re working within. But how would you advise them to change or adapt in this time? I mean maybe that’s from a marketing perspective or call to action perspective, or something else that you might have in mind. I’m curious your thoughts on that.
JP Persico: Well, I would look at it differently. I mean the call to action right now, it might not be the best idea to benefit from what they are going through with the call to action.
Luke Peters: Yep.
JP Persico: And from a marketing perspective, I would take this time to really understand my customer better. This is the first time you can go into a virtual experience with your customer where you just listen and understand their business and understand their concern as well as understand their ups and downs because some customers might be really opportunistic about what’s going on right now because they haven’t been affected by it.
JP Persico: Others might be heavily affected by it. So I think if the market tier for one, it’s almost like a call to listen, another call to action and in that call to listen, you will learn much more than what your CRM tells you about the customer. Because before you always sent in exact notions of what you want to learn from that customer. This time it’s going to, “Let’s see what the customer wants to tell me because I don’t really have a choice.” If I’m coming in as a sales pitch, most certainly the phone will be as quickly hung up as it was picked up.
Luke Peters: Absolutely. A lot of customers and a lot of business owners are shutting everything off because there’s a lot of fear. So your answer makes a lot of sense. People don’t want to make a new decision right now. They don’t want to make any decision except critical to their business. And I guess that gives, like you said, it’s a time to listen, but with that in mind, has that caused you to think of any new types of products or different types of needs for the customers?
Luke Peters: Because I guess the reason I bring it up is I think a lot of folks think this might be a V shape recovery. And I’m looking at the science of it and I think it’s going to be a lot longer. It doesn’t mean it’s always going to be like it is now, but I think we’re talking longer either until there’s a vaccine, which is not in the short term or until there’s herd immunity, which is not in the short term.
Luke Peters: And without either of those two things, people are going to keep getting infected or we’re going to stay locked down. And that would lead to potentially a lot longer than what everybody’s thinking. Everybody’s planning, hey Q3, we’re going to be all back in business 100% and I’m not so certain about that.
Luke Peters: With that in mind, I think it’s smart for companies to think about products, not in a way of taking advantage of it, but just in serving customers because customer needs may be different and even in some cases, permanently different but in a lot of cases, there’s going to be different needs coming up for the customer. And I’m curious if you have had a chance to have any thoughts or new product ideas on that end?
JP Persico: I mean you’re kind of being pushed into the digitalization at this point in time. If you think everyone has always been talking about that businesses have to become more digital, business has to become enabled with newer technology and now we are at that point. So you don’t really have a choice.
JP Persico: If you’re not digitally enabled, you’re not going to be able to serve the customers at this point in time. And I think it really when I look at a product and I look at what’s next, I think we really have to go down the route of how can we make an experience still be human while being digital.
JP Persico: And more than ever if you think about solutions which have come out in the past two years, digitalization has a lot been about automation, abut having someone else do the job a human does. At this point in time, I’m pretty sure not one of us wants to talk to a robot on the phone, especially because we are all headed for a lot of hardship.
JP Persico: So that said, it’s almost humanizing the technology to a factor where digital will enable you to do better business in the future with still a human touch. I think it really will help us to look at this experience now from our own experience because we are not sitting in a boardroom with whiteboards and markers, and you are trying to solve for something.
JP Persico: You’re not being able to prototype right on the spot and look at each other over the shoulders. We have to have that certain confidence in our teams that they will innovate and they will come out of this with a different notion. So I would say the human aspect of it, it’s really giving me a different point of view on how we want to innovate products in the future.
Luke Peters: That’s a great answer and there’s a lot in that answer. The simple way that reflects or relates to the audience and keep in mind the audience here is a lot of houseware and hardware businesses, a lot of them, and a lot of these companies kind of to your point, but a lot of these companies rely on the channel so they rely on the physical stores or they rely on the online channels.
Luke Peters: And truthfully, a lot of them don’t have a direct customer connection. They don’t even have a direct to consumer experience for their customers. And I think now more than ever, just tagging along on your comment there, this is the time to do it because first of all, you can control your brand when you have that D to C experience, but you’re not relying on that channel, and right now a lot of channels are getting hit hard.
Luke Peters: Customers still are looking for that experience, and Amazon’s great but they’re not going to give your customer the full experience that you’re able to get directly direct to consumer on your own website selling product and just for the audience listening, going along with your point, I would definitely encourage everyone to look that direction.
JP Persico: Yeah, exactly. I will agree with you. Now it’s the time because you only have one channel. Unless you’re in groceries, you only have one channel, which is the digital channel. So now is the time to humanize it, to be personal with your marketing, to be more personal with your outreach. And to actually be there when someone has a question.
JP Persico: You wouldn’t believe how many times till now, people wait too long because our customer service channels which are out there in retail weren’t set up for that amount of demand, which comes through digital.
JP Persico: If they were all set up, that people are walking into the store if they go and get an answer right away. “Oh well, I just spoke to the store, they will get me an answer at the cashier.” Well now guess what, now you don’t have the cashier which is actually getting you an answer. Now you have to have people in the back office writing down what the answer is to that customer’s complaint or customer’s request.
JP Persico: So I think it’s really shows us the importance that there’s still a human there at the time when there is a need. Not just the mailbox that you’ve seen fill up at the end of the day by one person.
Luke Peters: Now it’s a great question and just to talk on it, to give specific for the audience here. So for NewAir, what we tried to do, it was a goal, we haven’t achieved it yet, but we tried to have as many chats as phone calls and we tried to direct customers there because we all looked at ourselves and we’d like a chat, as long as we get a quick response.
Luke Peters: And so setting up KPIs within call centers and tracking response times and keeping response times under 15 seconds so it’s a good experience. And then you might say, well how do you convert more people to chat than call? You just make chat really easy. I mean you got to go on your website and say, how do we make it so easy that customers would rather just type a few words here and I think it’s like you go to self checkout at a grocery store and you need a PhD to figure it out.
Luke Peters: So you got to make things really easy. And to your point, a lot of call centers and getting a hold of companies just to ask a question is difficult now. And so I think that can be on everybody’s mind as well for the brand owners that are listening. So JP, looking through a little bit more of the profile and what I learned about you, it looks like, and correct me if I’m wrong, but it looks like you’re involved in what I might call partner marketing, do you describe it the same way? It’s kind of like you’re finding the right partners to create disruption.
JP Persico: Partner venturing, I will call it. I will call it partner venturing. So basically what we are doing, we are finding partners where we can venture together to build solutions which overlap. So basically create a Venn diagram of partners. The multiple of the circle, which meets in the middle, gives you a much higher value than just one circle independently.
Luke Peters: I don’t know if you know him, Jay Abraham is like a marketing extraordinaire. He’s maybe a generation back, but he’s written a lot of great books and his whole thing is partnering with folks. Are you able to give an example? Maybe you are or are not able to give a company specific one, but maybe just so the audience can understand how this might look more in a tangible way?
JP Persico: Sure. I mean, for example, when we worked this Mayfair marketing services company who provides us a certain tool so we can outreach to our audience, to all of the channels we have out there. If, for example, a company named Sprinklr’ which is a customer engagement tool. What we try to do is always look at the tool and the capability of the tool, but we also heavily steer ourselves insulting problems of our current business.
JP Persico: So we are not just solving the problem the tool is supposed to solve, but we are working with these companies to find solutions which are general business problems. Because I think the most of the times when you buy a tool, you’re just buying a bandaid. You’re not buying something which is actually enabling you to do better business. So you’re trying a lot of times to really go from a problem solving perspective and say, “Okay, what are the channel business problems we have to solve?”
JP Persico: And then we look at the framework of what this tool is set up to do. Can we scope our business with a similar framework just with the intelligence of the tool which the tool may have not been set up for. So for example, we prototype through simple search listening as well as social listening. So what do is, instead of saying okay, do you want to solve a certain customer problem, I would say like the business book, value proposition modeling where you could look at pains and gains.
JP Persico: They basically say, okay, let’s look in general what are people talking about when they do something, which has nothing to do with our product. So you look at for example of what are people talking about when they go on trips, what are the problems they’re facing? And you start to find trends, which you then can see if one of our products could solve that problem, which you weren’t aware of that actually happens in the category.
JP Persico: So we’re going away from just going into focus groups and starting to ask the customers of what the problems are, to then post that problem through the focus group, in going into the overall journey of the customer and when they are maybe using our product, which they are not talking about, but they’re experiencing something here in their use, which is not completely related to our product.
JP Persico: So trying to leverage these kind of information points and going towards the route of, I will call it, and partnering with the right organization who is also willing to learn from your problem, has helped us a lot to innovate quicker and also a bit more focused on the outside and less than to our inside. Does that make sense?
Luke Peters: I love that. It’s makes total sense. I got a couple of followup questions on that and I just that this is very usable for the audience that’s here. What tool is that? Is that Sprinklr’? Is that the tool you’re using for that listening?
JP Persico: Yes, that’s correct.
Luke Peters: Okay. And I’ve seen them. And what does it take from a resource perspective? Does this take a lot of people to have to sort through messages or does that software actually put it all together and make it easy from a company resource side?
JP Persico: I’m not trying to do advertising here for these guys, but I would say like where I said you need to be more human earlier, I would say that their automation really helps you. They’re highly automated so you don’t need too much overhead.
Luke Peters: Oh wow. That’s awesome. I mean that sounds like a really big breakthrough tool because that is tough. Everyone’s always looking for new product ideas. The problem is, we always think of it from our own needs when you’re absolutely right, we have to be listening to the customer and seeing what they’re talking about.
Luke Peters: And you probably have a higher conversion rate of successful products than if you guys just came up with things that were coming to your own mind. So I can definitely see how that’s useful. And I guess that that’s what you would call passive listening?
JP Persico: Correct, exactly. So instead of listening for certain cases, let’s say like I’m listening for a car being broken on the side of the road, that’s active listening because I’m listening to something which has an impact to what my business is doing because my business like Bosch in the automotive market. Our business makes one thing. You’re keeping cars on the road because you’re doing great parts, you’re building fantastic product so your car can stay longer on the road.
JP Persico: But what we are looking at is, when it comes to passive listening, we are looking at what are people doing without it. So instead of car being broken down, we are talking about road trips. So you’re talking about driving at night, talking about Da Vinci. Now they even does that, that’s always the active, but we are really looking at actions from point A to point P and less that like what’s actually breaking down.
JP Persico: So more of the good experiences, so we can see because most of the people share just as many good experiences as they’re sharing bad experiences. And from the good experience, you can learn what opportunities you have. For example, if someone says that they are driving lots at night and whenever they’re driving and it’s raining outside, they have a really hard time to see and it’s really blurry. And the headlights on the other side make it really hard for them to see out of their range field, that can spur a product idea.
JP Persico: And that Bosch expert a product idea of the Bosch and mission the Bosch focus wiper blade actually both nights information technology, which uses the blur on the windshield. So a bit TSA here. But that’s what we did at that point.
Luke Peters: Well, and I can relate to that. I was actually driving through a blizzard in Utah for a little ski trip and I couldn’t see anything. I was like, I must have the worst headlights on this car. But nothing broke down. So there would be no way for a company to know this pain because there wasn’t any event. But if someone’s talking about that on social media, then they didn’t actually have a car problem but you found out about it anyways because they talked about it.
Luke Peters: Are you able to guess on how many product innovations come from active listening verse passive, like percentage wise, is it more-
JP Persico: Hard to get because at the end of the day, we focus on the current problem and we don’t really focus on the problem which could be there. I would say for us, we have now, we have a good balance on giving feedback to our product marketing to really look at this from both ends of the side.
JP Persico: And I would say it’s still, I don’t know how many companies are actively using that kind of offer methodology. We have been using it for three, four years now, but I couldn’t tell you if anyone else and how they use it because every business has other challenges, other journeys they’re looking from the customers.
Luke Peters: Yeah, definitely and JP, it’s been an interesting interview because I’ve talked to a lot of marketing people, but not the way that you think. You think in a very innovative and different way and you come at things from a different perspective. And I guess just to finish up this interview, is there maybe even if it gets tactical, but is there something you would advise small and midsize business owners or marketers or CMOs on how to think differently? Like is there one or two things that you think they may not be doing but could be doing?
JP Persico: I would say, so for me when I think about small meeting business owners, if you do something, do it right. Don’t just do it to be there. Too many times I encounter people say, “I do social media,” but all they do is posting a picture once a weekend, they call it social media. Social media is an exchange between the individual and the corporation and it comes through to our space. So we are in that business.
JP Persico: So you want to, just as approachable as an organization, as an individual is approachable by their friends. And when I say do it right or not, don’t do it. I mean also, don’t just post pictures to show your plane to your product because too companies are funded on social media and that’s why there’s always a new platform for me because people are hoping that this platform doesn’t have as many public service announcements as the last platform had.
JP Persico: And that said, if you were staying authentic, if you’re staying real and if you’re also staying relevant to your customers. And in relevancy, I don’t mean that they market different now, start posting about COVID-19. I think that’s what we have our government for, to inform us about. But relevancy means solving problems which are real and not just solving problems which are a feature and benefit on your product roadmap.
JP Persico: And the second part I would say is, if you’re out there and if you’re digitally available and your customer experience is, “I have a website, I have an eCommerce shop and I type on the chat message window, which is a fantastic fog in, that is super cheap and everyone can put on, and it tells me that there’s currently no customer service agent available or my hours are just doing Eastern standard time until 4:00 PM.” Guess what? People don’t shop during business hours. They shop after they have done their work.
JP Persico: They don’t have time nowadays to shop during business hours. So I think be available when the customer is online and not just then your business is open.
Luke Peters: Well that’s a great one right there and it’s so easy to do that now too and I’m probably going to go look at how we’re doing it on chat. I know we’ve extended our hours, but we have a remote team and they’re in a different time zone and these are things that we can do now, and people can have people from all over the world maybe managing chat at different times.
Luke Peters: So I think that’s a great answer and I mean I’ve learned a lot. I’ve taken a lot of notes, so really appreciate you coming on the Page 1 Podcast, JP. How can folks get ahold of you if they’d like to follow up with you?
JP Persico: On LinkedIn. It’s Linkedin.com/jppersico, you should find me. No problem.
Luke Peters: Awesome. Well thanks again for being a guest on the Page 1 Podcast and just want to remind the audience that we’re offering a free evaluation from Retail Band. If you need help on your digital strategy and you want to sell more, especially right now into Amazon, Home Depot, Wayfair, Walmart, and all of this other channels, get ahold of us. Find me at firstname.lastname@example.org and I hope you all have really enjoyed the interview today. Truly appreciate all of your reviews on iTunes and hope to see you on the next interview.
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Episode References: Sprinklr
Contact Jean-Philippe “JP” Persico: LinkedIn