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Customer Experience Management – What it is, Why it matters, and How to begin
Citation preview
Customer
ManagementWhat it is,
Why it matters,
and How to begin
Experience
Richard RandolphFlorida Customer Service Institute
What if…Your Customers
had to PAY an admission fee for the privilege of shopping with you?
What would you have to do to bring them in and keep them
happily engaged while shopping?
Today’s Agenda① What is CEX?
② Why Does it Matter? –The Economic Imperative
③ Key Ideas
④ Where To Begin
⑤ Action Tips
⑥ Next Steps
Appendix: Resources
Welcome to the
Experience Economy
1. What is
Customer
Experience
Management?
What is a
Customer
?
Functional: How well do experiences meet Customers’ needs?
Accessible: How easy is it for Customers to do what they want to do?
Emotional: How do Customers feel about the experiences?
Experience Attributes
Logic and Emotions
LOGICRationalCause & Effect‘Manufacturing’Price-DrivenTransactionsThe Head
EMOTIONSFeelings & Intuition
Not Linear‘Agriculture’
Not Price-DrivenExperiences
The Heart
PEOPLECustomer-centric
ENVIRONMENT
5 Senses
PROCESSES
ETDBW
Effort Require
d
Customers perceive service
in their own unique, idiosyncratic, emotional, irrational, end-of-the-day, and totally human terms.
“
~ Tom Peters
Perception is all there is.
All Business is Show
BusinessIntentionally “Stage”
Your Experience
It’s the sum total of the interactions that a Customer has with a company’s products, people, and processes. It goes from the moment when Customers see an advert to the moment when they accept delivery of a product and beyond.
Sure, we want people to think our computers are great. However, what matters is the totality of customers’ experiences with us: talking with our call-center representatives, visiting our Web site, buying a PC, and owning a PC. The customer experience reflects all of those interactions.
Richard Owen vice president of
Dell online worldwide
2. Why Does
This Matter
To YOU?
The Economic Imperative
Increased Loyalty / LTV Lower Acquisition Costs Word of Mouth Price Premiums Lower Operating Costs
Attract new CustomersIncrease Customer Loyalty
More wallet share Increase purchase frequency Increase Lifetime Value Reduce ‘Churn’
Increase referralsBlock competition
Why This Matters to You
84% of executives believe their company has a good understanding of how to serve Customers
57% of Customers rate overall service from “average” to “not meeting expectations”
The Big Disconnect...
but...
83% of executives said their companies have a solid understanding of their Customer’s experience
92% say they listen to and act on Customer feedback
but...
45% of Customers say companies do not understand their experience
37% say companies do not listen to or act on their feedback
80% of companies say they deliver “superior” customer service.
8% of Customers think these same companies deliver “superior” customer service.
but...
The Cost of Poor Experiences
78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience.
On average, loyal customers are worth up to 10 times as much as their first purchase.
In 2011, 86% of consumers quit doing business with a company because of a bad Customer experience.
70% of buying experiences are based on how the Customer feelsthey are being treated.
People will forget what you said, they will forget what you did, but they will never forget how you make them ~ Maya Angelou
“
feel.
The way to make advocates
out of satisfied Customers
is to strongly appeal to the
Customers’ emotional needs.
Experience Matters!9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience.
3 in 5 Americans would try a new brand or company for a better experience.
7 in 10 Americans said they were willing to spend more with companies they believe provide an excellent customer experience.
5%-20%
Probability of selling to a new prospect
60%-70%
Probability of selling to an
existing customer
Company Performance
Employees only ask for the customer’s name 21% of the time.
Hint: The person has a name 100% of the time, and they like hearing it.
A person’s name is to that person the sweetest and most important sound in any language. ~ Dale Carnegie
“
Small Business Advantage
80% of Americans agree that smaller companies place a greater emphasis on Customer service than large businesses.
Most Cringe-Worthy Phrases Customers Don’t Want to Hear
‘We’re unable to answer your question.Please call xxx-xxx-xxxx to speak to a representative from xxx team.’
‘We’re sorry, but we’re experiencingunusually heavy call volumes.You can hold or try back at another time.’
‘Your call is important to us.Please continue to hold.’
Deliberate, Intentional Customer Experience
Management is an
3. Key Ideas
➟ Customer Centric
➟ Customer Lifetime Value
➟ E T D B W
➟ Journey Map / Touchpoints
➟Customer CentricThink like a Customer• How would you feel? Remember: It’s
more about emotions (feelings) than logic!
• The Company exists for the Customer – not the reverse!
When was the last time you bought your company’s product?
Customers Are From Venus Companies are from Mars
Your Customers
Your Company
High company knowledge High interest in topic Egos Internal Politics Varied understanding of
Customers
High self-interest Immediate Needs Wants Desires Interests Barriers and blocks
35
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6See the world from your Customer’s point of view — think like a Customer!
➟ Customer Lifetime ValueThe potential contribution of your Customers to your business over their lifetime.
Add the value of referrals and positive word-of-mouth promotion.
Customers are an ongoing stream of revenue as opposed to a one-time sale.
Knowing the Lifetime Value of your Customers is crucial.
➟E T D B WCustomer Effort
From the customer’s standpoint, doing business with you is as
effortless and inexpensive as possible.
Product price is only part of Customer cost.
Are You Driving Your Customers
C R A Z Y ?
Watch out for these signs, most are our own doing:
Repetitive procedures
Multitude of documents
Questions you already know the answers to
Customer run-around
“It’s company policy”
E T D B W• Present a single face to your Customers –
not sales, Customer service accounts, etc. – just your Company
• Work in different ways for different customers – one size does not fit all!
• Know what your Customers really want and anticipate their needs –
if a Customer buys x will she also need y?
• Let your Customers do more for themselves – let them input their own orders, check progress…
➟Customer Journey Map
Going tothe Movies
Customer In
Customer Out
Park Car
Wait in line to buy ticket
Buy theater ticket
Enter theater; Give ticket to taker
Wait in line for popcorn and soda
Go to restroom
Go into theater; find seats
Pay for food
Exit theater, return to car
Sit and watch movie
Exit Parking Lot
Actions before the transaction
Actions after the transaction(includes follow-upand follow through)
Cycle of Service withMoments of Truth
Moments of TruthTouchpoints – any interaction between a Customer and your Company
3 Levels of Service
1. Processing – done TO you (any time there’s a line)
2. Service – Responsive, customized attention
3. Experience – Creates a memory
4. Where Do I Begin?
1. Start With Your Employees!2. Customer Experience Audit3. Know Your Customers4. Voice of the Customer5. Customer ‘Bug’ List6. Map Customer Touchpoints7. Improve and Sustain
Your Improvement Plan
1. Start With Your Employees
The Service Profit Chain
Unengaged Employees Don’t Create Engaged Customers
Customer experience depends on Employee experience
You can design and create and build the most wonderful place in the world. But it takes people to make the dream a reality.
~ Walt Disney
2. Conduct a Customer Experience
Audit Your company’s experience for new and
existing/returning Customers
Shop competitors / industry peers – how do you feel about their experience?
Benchmark against the very best – Amazon, Ritz-Carlton, Zappos
Hint: Your Customers do!
47
Every interaction creates a personal reaction
Experiences should be
designed for individuals.
47You need to understand your Customers personally
3. Know Your Customers!
Serve Customers – Not YourselfYes, you know more than your Customers — deal with it
Educate your CustomersAvoid jargon, acronyms
and process steps
Don’t “sell” things — help Customers buy them
Look at all interactions as an opportunity to help Customers to do something
Tune In To W I I F M
What’sInItForMe?
People are infinitely self-interested!
Preferences
Options
Information needs
What do they want that they can’t get now?
4. Voice of the Customer
“Listening posts”
• Needs– Basic: water, food, shelter
– Situational: requires a product or service
• Wants
• Emotions / Expectations
• Assumptions and stereotypes about you
V O C
Anticipate needsPrepare for predictable questions
Clarify
Validate
Respond
Plus it
What time is the three o’clock parade?
Exercise 1: What Are Your Customers’ Needs and Wants
Instructions
1. Identify one ‘Basic’ need your Customers have
2. Identify one ‘Functional’ need your Customers have
3. Identify one ‘Want’ your Customers have
4. Identify one ‘Stereotype’ your Customers have about your industry
Time: 5 minutes
5. Create a ‘Customer Bug
List’?What ‘bugs’ your Customers?
?How can you fix that?
Look for Opportunities to Reduce Friction
Eliminate Points of Confusion
1. Generate a Customer “Bug” List internally (brainstorm with front-line Customer contact workers)
2. Prioritize according to Customer impact and contribution to Customer Value
3. Confirm with real Customers (questionnaires, interviews, focus groups)
Customer “Bug” List
A simple list of things that “bug” your Customers about your
business
Customer ‘Bug’ ListWhat ‘Bugs’ Our Customers?
Customer Expectations Our Goal“As Is”
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Exercise 2: Start your own Customer ‘Bug’ List
Instructions
1. Identify one thing that ‘bugs’ your Customers now
2. List Customer Expectations for that experience
3. Describe “what’s going on now”
4. Specify what “should be happening”
Time: 5 minutes
6. Map Customer Touchpoints
Example: Open A Bank Account
The Bank Branch
Customer In
Customer Out
Park Car
Enter Bank
Ask for New Accounts Clerk
Wait for New Accounts Clerk
Meet Clerk; Explain needs and wants
Fill out forms; Make first deposit
Get temporary checks
Clerk Explains Bank’s Services and Options
Exit Bank
Confirm understandings
and expectations
Exit Parking Lot
Exercise 3: Map Your Customer’s Touchpoints
Instructions
Identify meaningful steps (touchpoints) in your Customer’s interaction cycle with your company.
Begin with the first contact.
Finish when they leave.
Time: 5 minutes
Touchpoint Analysis and Improvement
Analyze your Customers’ Moments of Truth
MINUS FACTORS PLUS FACTORS
MOMENT OF TRUTH CHART
Park CarDifficult access into
parking lot
No spaces available;Only distant spaces
available — long walk across trashy lot
Visible signage directs Bank Customers to preferred parking
Covered parking in clean, wide slots
Easy access into parking lot
Close spaces available
Lot clean
Spaces clearly marked
Enter BankOld, dirty signs
Front entrance has debris
Windows are dirty and covered with ads
Clean, clear signs
Front entrance clean professional and
inviting
Interior directional signs
Clear signs
Meet “Greeter” who directs Customers
Child Care area available
CUSTOMEREXPECTATIONS
Moment of Truth ChartCustomer Expectations
What do Customers think should happen?
Plus FactorsHow can we delight Customers
at this touchpoint?
Minus FactorsWhat might detract
from the experience?
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Touchpoint Analysis and Improvement
Functional: How well do experiences meet Customers’ needs?
Accessible: How easy is it for Customers to do what they want to do?
Emotional: How do Customers feel about the experiences?
Experience Attributes
Exercise 4: Moment of Truth Analysis
Instructions
1. Identify one Moment of Truth Touchpoint
2. List Customer Expectations for that Touchpoint
3. List two “Minus Factors”for that Touchpoint
4. List two “Plus Factors”for that Touchpoint
Time: 5 minutes
7. Improve and SustainVerify Improvements
Using your Customer-focused priorities and standards:1. Measure the results: Do the improvements show up?2. If not, fix it.3. If yes, move to next items on your priority list —
but confirm that the priorities have not changed!
Follow Up and Follow Through
Results Check-Up
Measure and track ‘Satisfaction’
9 – 10 Promoters – Apostles
7 – 8 Passives – subject to competitors
0 – 6 Detractors – unprofitable
range from “OK” to “Assassins”
to “Ninjas”
Improve and SustainKeep Score!
Net Promoter Score‘How likely is it that you would
recommend my company to a friend or colleague?’
How To Calculate Your Net Promoter Score
% of Promoters – % of Detractors = Net Promoter Score
94 84.7% 13 11.7% 4 3.6% 111 100% Promoters Passives Detractors Total
The NPS is 81.1% (84.7% - 3.6% = 81.1%)
What it really means
1. Everything Speaks!
2. Be Consistent
3. Be Nice (Customers are Guests)
4. Simplify
5. Service Recovery Matters
5. Action Tips
Pay Attention to Detail
1. Everything Speaks!
Appearances count. Design matters.
Everything Speaks!
Everything Speaks!
Everything Speaks!
Everything Speaks!
Everything Speaks!
Everything Speaks!
2. Be Consistent“I know what to expect”“Everything is going to be friendly and easy every time”
• Visual / Sight• Sound
Consistency is viewed by Customers as reliability, predictability, stability, and certainty
which build confidence and trust.
• Smell / fragrance• Touch / tactile
Consistently Remarkable Experiences Build TRUST and LOYALTY
3. Be Nice! Treat Customers as Guests in Your Home
4. Simplify! (K.I.S.S)
Confused Customers don’t buy!
5. Service Recovery When Things Go Wrong
The Customer may not always be right – but she’s always our Customer!
It’s not our fault – but it is our problem!
Customer ComplaintsA typical business hears from 4% of its dissatisfied Customers.
For every customer who bothers to complain, 26 other customers remain silent.
• 1%-5% Complain to Management
• 45% Complain to Agent/Branch/Front Line Rep
• 50% Encounter a Problem But Don’t Complain
A Complaint is a Gift!
Service Recovery Can Be Profitable!
Customers who complain and are satisfied are up to 8% more loyal than if they had no problem at all.
It is 6-7 times more expensive to acquire a new customer than to keep a current one.
A Complaint is a Gift!
Executives think only 20% of Customers share “bad news” about their experiences
87% of Customers tell others about their bad experiences
– increasingly through instantaneous channels
but...
Exercise 5: Your Action Plan
Instructions
Identify one Improvement Item for each of the five Action Areas
Time: 5 minutes
6. Next Steps
1. Start With “Why”
2. CEM Maturity Model
3. Be Authentic / Commit!
4. Resources / Continuing Study
Next Steps
2. CEM Maturity Model1. Don’t Know – Don’t Care!
(and stop bothering me with this stuff!)
2. Aware – Don’t Know What To Do
3. Know What To Do – Working On It
4. Very Experienced and Capable
5. It’s Just Part of ‘Who We Are’
3. Stay True To Yourself
Be
Authentic
94
Authenticity is all about being real. Genuine, not an imitation.
A truly great person never reminds us of anyone else.
Commit!
If you’re not committed to Remarkable Customer Experiences,you can only fool yourself.
Be prepared to burn the ships!
When is the last time you were this joyful?
And your Customers???
Enjoy Your Journey…
THANK YOU!