Jolly's Volleys: I love pets, not pet peeves:)

Ok, before I get to the article, I do want to share a hypothesis of mine. I honestly believe that by having a cuddly pet (or a smiling baby) present in the middle of a tense debate or negotiation could lead to more fruitful outcomes faster. They simply have a way of bringing the tension and temperature down. This image is also an experiment by me to see if the presence of golden retriever puppies increases engagement on LI in a meaningful way:) I will share the results in a couple of weeks, tut on to the task at hand...

Well, it’s summer and as we approach longer days (at least in the northern hemisphere), I thought I would give you all something to fill that time. And no, it’s not a lecture of the future of generative AI and creating an ethics framework as we approach complete AI-led dystopia, and it’s also not about geo-political tensions, global election upheaval and how now is a once in a millennium opportunity for India. Those are topics for future more serious blogs. For this version, I simply wanted to vent…about the topic that is top of mind for many -- the complete demise of the services industry, especially in the U.S.:) I will use a Shakespearean comedic device approach of hopefully witty banter to get my points across. Let me simplify the mumbo-jumbo. Recently, I had a series of events take place in my personal life here in the US that ‘made me go hmmm…’ There is no relationship among these events, except for the fact that collectively they represent seemingly mundane set of situations that tens of millions of Americans deal with every day. The goal here is to highlight service gaps that can be filled relatively simply, and if implemented can turn the everyday customer despair into customer delight. I think there may be an opportunity for a mini-Mckinsey to emerge as a result…and I will put a pet-peeve umbrella on the entire set of issues that I will dive into…in no particular order…so, enjoy the golden-doodle of peeves:

1.     Water: as a frequent global traveler, I have had the firsthand opportunity to experience the best and worst practices through the entire travel related workflow – I have written about air travel (India and the US) in the recent past. But let me mention a simple bit about hotels. When I travel to the Middle East or India, water (either plastic or increasingly, glass) in the room is a given. I am not sure why, but the developed world (Europe and the US) seems to have gotten really stingy. Notes to Mr. Marriott, Hyatt, Hilton and the rest of the hospitality fraternity…Please, provide water in the rooms on a complementary basis. The cost of goods in quantity is likely to be less than 50 cents but it will create what I refer to as “upside surprise” and loyalty. Let travelers hydrate, get healthier and feel like the hotel actually cares about them.

2.     Restaurants: The hangover effect of Covid seems to be there in perpetuity. Is it just me, or are restaurants constantly hiking the pre-populated tipping percentages. Recently, I was at a restaurant in San Francisco and the tipping range on the digital device went from 18% to 30%. Just for that, for the first time in my life, I felt like not tipping at all. Heck, the fast-food outfits are also starting at 15% and going to 22 or 25% and that’s for cases where I have to stand in line, order and pick up my own food. It’s another one of those WTF moments, and it seems to be happening more often. And then there is the room service tip expectation. Just this week, I got in late to one of the hotels, and ordered room service. The room service charge (delivery) of $11.99 was included on the receipt, but the delivery person had an expectation of a tip on top of the service fee. What the fudge factor is that all about? There was clearly a time during and soon after the covid peak where I, along with millions of others, felt empathy towards those in the restaurant and QSR business who were deeply impacted. But between real estate extensions (restaurants extending seating onto streets permanently, especially in California) and a boom in online orders, many of them are doing significantly better than they were pre-Covid. And while I understand inflation leading to overall price increases, I definitely don’t like the over-reach with extra charges. I think the era of a customer being guilted into tipping for no reason has officially come to an end:)

3.     Banks: I have been a loyal customer of a large bank (that shall remain nameless for the time being) for 35 years (I know what you are thinking. How can someone who looks like he is 25 (me) be a customer of an institution for 35 years!). I appreciate that sentiment. I happen to have a locker at a physical branch of this fine institution near my home. Given the constant staff churn at the bank, I am an unknown entity (even though I may be among their most valuable customers). Recently, I went to the branch for some documentation that was stored at the locker. The bank had a station set up right at the entrance to help make the workflow efficient (basically an initial check-in point to then direct folks the various sections of the bank). That check-in had a long line. The regular teller line was also long, as there were only two people working while there were six workstations. There seem to be other staff members either walking around or milling about. I approached one of them and simply asked to be let into the locker area. Without any inquiry about who I was (long term customer, for eg), I was simply pointed to the long line for the bank teller and asked to stand and wait my turn. After about 15 minutes in line, I got to the teller to let the gentleman know that I was there to access my locker. He asked for my driver’s License and debit card which I provided. After he spent 2-3 minutes of clicking on a bunch of keys on his computer, I asked if everything was ok. He smirked and indicated that there was an “issue” but he had fixed it. He then asked me to, guess what, “wait” until someone could let me into the locker area. After about 25 minutes, I was finally able to get to the locker. And while I wrapped up my business quickly, I again had to wait for someone to come back to lock the locker and officially let me out. What should have been a 2-3 minute errand, turned into a 40 minute grind. I wish I could switch banks easily, but I am not sure if other big banks will be any better, especially post the SVB/Signature debacle as customers are rushing to the bigger institutions without realizing that many simply have no capability or mindset to be truly customer-centric. Note to banks: figure out a way to understand your customer, not just online, but in the physical world (the need for lockers will be there. Perhaps there will be a non-bank affiliated option). I am simply waiting for an opportunity to switch.

4.     Healthcare: This is a major pet-peeve of mine, and could be a subject of a series of books, not just blogs. Recently I went through a fairly draining health emergency involving my mother with several visits to ER and multiple hospitalizations. The experience put on display the entire spectrum of what is good and what is absolutely deplorable about the current US healthcare system (I know I have written recently on this topic as well). Like a typical Indian family, there are physicians in the extended family. But during my recent ordeal, I point blank told the physician that the only time he and his colleagues seem to truly care about the patient/humanity is when they wrote their admission essay for medical school. Bedside manners and empathizing with the patient seemed to be completely absent. On the other hand, the nurses on the hospital floors were absolutely amazing, and despite being overworked, smiled and made my mom feel as comfortable as they could. There is a clear dearth of medical personnel in the US, and it is time for the US to roll out the red carpet to get the best and brightest doctors and nurses to come here if possible, both to fill the gaps that exist and will widen (with the aging population on the demand and supply sides of the healthcare equation), as well as move the empathy quotient in the right direction, hopefully. BTW, healthcare in the US is the only service that I can think of where the customer (patient) has no idea how much the product/service is going to cost until after that product/service has been consumed. The opacity of the entire system is by design such that there are multiple Ph. Ds required to decipher the code.

5.     Air: Ok, I had to weave it in. Recently, my partners and I were on a multi-city east coast trip in the US. One of those flights happened to be a short DC to Pittsburgh puddle jump of roughly 45 minutes. Incredibly, on that United flight, there was virtually zero service. Not even water (coming back to that necessary ingredient to sustain life). My partners were shocked. The in-flight service and the hospitality industry in general, is orders of magnitude better in Asia and the Middle East than it is here in the US. We were reminiscing that on 45-minute domestic Indian flights, we have actually been served warm meals (in economy class). And yet here we were on a 10:30 pm flight in none other than the US of A not being offered water. And I don’t know about others, but it’s not just the aptitude but the attitude that has fallen off a cliff. Whether it’s care at the hospital, a warm smile on a late-night flight, or service at a restaurant, the overall experience in the US leaves a lot to be desired. And unfortunately, these are necessary “human in the loop” workstreams that AI is not going to replace any time soon.

Bottom line: As the population in the developed world ages, and as the employment crunch intensifies, the US will continue to experience the service deficit. But as a VC and a “glass 25% full rather than 75% empty” guy (although admittedly it has been difficult lately), I know that entrepreneurs (not just tech entrepreneurs) will see the opportunities/gaps and find ways to fill them. Perhaps there should be a national initiative of some sort, to take those whose jobs are definitely going to be disrupted through the advent of generative and other forms of AI, and repurpose or retrain them, ironically, for more people centric roles where the human touch is not a “nice to have” but a “must have”.