Customer Experience Self-assessment: Belgian Benchmark 2010

The Naïve to Natural ® ModelThe Naïve to Natural ® Model

Building great customer experiencesQaalfa Dibeehi, CEO Beyond PhilosophyGeert Martens practice leader 4C ConsultingGeert Martens, practice leader 4C Consulting

Content

01 Introduction to 4C Consulti01 Introduction to 4C Consulti

02 The counterintuitive nature

03 The Naïve‐to‐Natural mode

04 Belgian Benchmark 2010

05 Questions

ngng

e of customer experiencep

el

More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | [email protected]

4C Consulting | Our Missiog | n

E hi h tEnsure higher return on

customer interactionscustomer interactions

throughthrough

smarter solutions

in marketing, sales & service

3


4C Consulting | Our Playgrog | yg

C I iC I iCustomer InteractioCustomer Interactio

Enabling the consistent delivery of thfor each of your targeted segments, across all touch

Marketing ExcellenceMarketing Excellence Sales ExcelSales Excel

Enabling smarter approaches to your marketing operations

Enabling smarter ayour sales deliv

… a l l o w i n g f o r a r e j u v e n… a l l o w i n g f o r a r e j u v e n

Customer Insight Customer Insight

Enabling the transformationEnabling the transformationinto actionable insights throug

ound

MMon Managementon Management

he desired customer experience h points and all stages in the customer lifecycle

llencellence Service ExcellenceService Excellence

approaches to very model

Enabling smarter approaches to your customer service delivery

and exploitation

a t e d s t r a t e g i c f o c u sa t e d s t r a t e g i c f o c u s

ManagementManagement

of your customer data of your customer data h high-end data analytics

4


4C Consulting | Our Customg | mers

5

Content

01 Introduction to 4C Consulti01 Introduction to 4C Consulti

02 The counterintuitive nature

03 The Naïve‐to‐Natural mode


05 Questions

ngng

e of customer experiencep

el

02 The counterintuitive naturre of customer experience


Beyond Philosophy | Emoty p y |

Colin Shaw Qaalfa DibeehiColin Shaw Qaalfa Dibeehi

tional engagementg g

Going Beyond the Philosophy: Practical implementations

Focus on the Customer Experience

Thought Leadership as differentiator

A number of unique methodologies

Links with academia

4C Consulting owns the exclusive rights for Continental Europerights for Continental Europe

8


Key Strategic Customer Expey g p

We help companies answer a

What is the future of our competition?

What do our customers expect of us?

How much is my current Customer Experi

What is the Customer Experience we are

How deliberate is our Customer Experienc

What emotions are we trying to evoke in y g

Are our senior executives engaged in the

How can we ensure our people understanp pExperience to our organization and becom

erience QuestionsQ

nd action tough questions like:

ience costing me?

trying to deliver?

ce?

our Customer Experience?p

Customer Experience?

nd the importance of the Customer pme motivated to change their behaviours?

9

CCCNOT about d

CNOT about d

C t i iC t i iCustomer experience is doing whatever it takes Customer experience is doing whatever it takes g

to “wow” customers g

to “wow” customers


Customer Experience | A dp |

Picture taken by Geert Martens (4C Consulting) on 06/05/2010 at Chaussée de Haacht – Bruxelles, BELGIUMResult of the encounter: big smile… and indeed as it turned out to be: a very nice day: TX 3M!(The number plate has been changed for privacy reasons)

definition

A Customer Experience is an interaction between an

organization and a Customer.organization and a Customer.

It is a blend of an organization’s physical performance,

the senses stimulated and emotions evoked, each intuitively measured

against customer expectations across all moments of contactacross all moments of contact.

11

What do you see here?What do you see here?What do you see here?What do you see here?


Customer Experience | A dp | definition

A Customer Experience is an interaction between an

organization and a Customer.organization and a Customer.

It is a blend of an organization’s physical performance,

the senses stimulated and emotions evoked, each intuitively measured

against customer expectations across all moments of contactacross all moments of contact.

13


Why improve the customer exy p

1 Shif1. Shifdemcur

Grecusto

i

4. Buildcompetitiveadvantages

Rational elements (product features, service attributes,…) are

easy to copyKey success factor for impacting

experiadvantagesy p gthe customer decision journey

3. Genreve

Customers become ambassadors

xperience?p

ft the

Customers are prepared to pay a price premium.Price is the most important differentiator in rational competitionft the

andrve

competition

eatomer 2. Reduce

costs

Customers get involved and share their thoughtsCustomers manage

encesg

themselves.

neratenue

who promote the brand to others

15


Consumer decision journey j y

McKinsey Quarterly: The consumer deci

| Traditional funnel|

16sion journey – June 2009




| Actual journey| j y




Enhance speed of evaluation

ChChangeOwn exp& recom

Initiate:RecommendationsExcellente postpurchase experiences


| Impact of CE| p

Recommendations

Enhance speed ofdecision taking

h lthe rules:periences

mmendations

Confirms & reinforces


hhthetheResults of investing in

?Results of investing in

?e customer experience?e customer experience?


Results of investing in the cusg

Regional utility provider:Regional utility provider:20% increase in Customer

Satisfaction and 25% reduction in call volumes

20% increase in Customer Satisfaction and 25%

reduction in call volumesInternational FMCG

1% increase in CuInternational FMCG

1% increase in Cu1% increase in CuSatisfaction driving

increase in reve

1% increase in CuSatisfaction driving

increase in reve

Global multi-service telco:36% improvement in Customer

Satisfaction, 17% costs reduction and

Global multi-service telco:36% improvement in Customer

Satisfaction, 17% costs reduction and 200% increase in customer-facing time200% increase in customer-facing time

Global PC manufacturer:79% improvement in “Missing, Wrong &

Damaged” deliveries resulting in reduced back office headcount

Global PC manufacturer:79% improvement in “Missing, Wrong &

Damaged” deliveries resulting in reduced back office headcountreduced back office headcountreduced back office headcount

stomer experience?p

Regional utility provider:Improve public and industry image, e.g.,

Regional utility provider:Improve public and industry image, e.g., p p y g , g ,

winner of the 2003 Utility Industry Achievement Award for Customer Care

p p y g , g ,winner of the 2003 Utility Industry

Achievement Award for Customer Care / retailer:

ustomer / retailer:

ustomerustomer g a 1.3% enues

ustomer g a 1.3% enues European insurance

provider:80% reduction in

European insurance provider:

80% reduction in80% reduction in transaction costs80% reduction in transaction costs

International wireless telecomsInternational wireless telecomsInternational wireless telecoms provider:

82% of Customer Interactions “better than last time” helped by a 4% increase

i fi t ll l ti

International wireless telecoms provider:

82% of Customer Interactions “better than last time” helped by a 4% increase

i fi t ll l tiin first call resolutionin first call resolution

C di B k i 26% f hi h lC di B k i 26% f hi h lCanadian Bank – Losing 26% of high value customers:

Saved 6% of high value Customers – value CDN $ 85m

Canadian Bank – Losing 26% of high value customers:

Saved 6% of high value Customers – value CDN $ 85m

20

03 The Naïve‐to‐Natural moddel


Customer Experience | Sep |

Questions we answerQuestions we answer…

How good/ bad is your current CE?How good/ bad is your current CE?

What CE do you want to deliver?What CE do you want to deliver?

What needs to be done to create/ correct your CE programme?

What needs to be done to create/ correct your CE programme?correct your CE programme?correct your CE programme?

What will get your people toWhat will get your people toWhat will get your people to deliver a deliberate CE?

What will get your people to deliver a deliberate CE?

rvice portfoliop

Typical approaches we takeTypical approaches we take…

Customer Experience Statement

Customer Mirror

N2N Assessment

Emotional Signature

Moment Mapping

CE Training

I di id l A i Pl iIndividual Action Planning

22

The Naïve to Natural modelThe Naïve to Natural modelThe Naïve‐to‐Natural model assesses a company’s capabi

“ i l d li

The Naïve‐to‐Natural model assesses a company’s capabi

“ i l d lito “consistently deliver a deliberate customer experto “consistently deliver a deliberate customer experpp

ilities ilities

ience” ience”


Naïve to Natural ® | The N2|pe

rienc

e

Sensory

exec

uted

st

omer

exp

Emotional

liber

atel

y e

ts o

f a c

us

Physical Transactional

De

com

pone

nt

y

c Product Naïve

Source of diffe

ProductFeatures

Services C

n = 186

2N Model

highhighNatural

r foc

us

Enlightened

Cus

tom

er

low

erentiation

CustomerRelations

CustomerExperience

24


Naïve to Natural ® | 9 orien| ntation areas

25


Naïve Orientation

high

ocus

high

ecut

ed

mer

exp

erie

nce

Emotional

Sensory

Enlightened

Natural

Cus

tom

er fo

Del

iber

atel

y exe

pone

nts

of a

cus

tom


low

com

p

Product

ProductFeatures

Services CustomerRelations

CustomerExperience

Naïve

Source of differentiation

Features Relations Experience

Very product focused – price and features leadReactive to customer demandsDo not measure customer satisfactionD li h i ll b d C t E iDeliver a very physically based Customer ExperienceEmployees are treated poorly and not given any authority to recompense customersProduct siloed organisation

An organisation that focuses on themselves to the detriment of the customer.the detriment of the customer.

They are “inside out” either through choice or because they don’t know what they should be

doingdoing.

Customers asked to call on separate numbers for different parts of the organisationEfficiency and productivity are the most important KPIs – NOR customer KPIsPeople reward on sales productivity and efficiencyOrganisation dictates which channel customers use

26


Transactional Orientation

high

ocus

high

ecut

ed

mer

exp

erie

nce

Emotional

Sensory

Enlightened

Natural

Cus

tom

er fo

Del

iber

atel

y exe

pone

nts

of a

cus

tom


low

com

p

Product

ProductFeatures


CustomerExperience

Naïve



Have customer KPIs included but all physically based. Are functionally organized and have recognized the need for Customer Service. Have contact with the customer via 0800, haveHave contact with the customer via 0800, have looked at coordination, and have extensive call menus that are used to screen calls. Take into account Customer Physical expectation. Have Senior Managers that spend limited amountHave Senior Managers that spend limited amount time with customers.

An organization that focuses primarily on the physical aspects of the Customer Experience.

They have recognized the importance of theThey have recognized the importance of the customer, however, their focus is rudimentary as many aspects of the Customer Experience remain left to chance, are uncoordinated and “inside out”. They are typically reactive to

customer demands.

They say: "Hello you're through Alan in Customer Complaints myThey say: Hello, you re through Alan in Customer Complaints, my customer representative number is 43578632b, please state your customer reference number and post code" For example: British Gas

Have no complete view of customer on systems. Have no defined Customer Experience. Recruit people with the right attitude, rather than just skills.just skills. Have training that takes place on how to deal with difficult customers. Have employees that are given some limited authorityauthority.

27


Enlightened Orientationg

high

ocus

high

ecut

ed

mer

exp

erie

nce

Emotional

Sensory

Enlightened

Natural

Cus

tom

er fo

Del

iber

atel

y exe

pone

nts

of a

cus

tom


low

com

p

Product

ProductFeatures


CustomerExperience

Naïve



They have defined their Customer ExperienceThey focus on stimulating planned emotions and build these into the design of their Customer ExperienceThey have recognised customers have emotional expectations and plan how to meet and exceed theseHave started to align the employer experience and their Customer Experiencetheir Customer ExperienceEmploy people with emotional capabilities

An organisation that has recognised the need for a holistic, coordinated and deliberate approach to the Customer Experience.approach to the Customer Experience.

They are proactive in nature towards the Customer and orchestrate emotionally engaging Customer experiences They stimulate plannedCustomer experiences. They stimulate planned

emotions.

Look at the end to end Customer ExperienceHave appointed a Customer Experience Director and established a Customer Experience CouncilCustomer involved in design of processesCustomer involved in design of processesIntegrated system, “complete view of customer” achievedCustomer Experience measures account for large

t f bpart of bonus

28


Natural Orientation

high

ocus

high

ecut

ed

mer

exp

erie

nce

Emotional

Sensory

Enlightened

Natural

Cus

tom

er fo

Del

iber

atel

y exe

pone

nts

of a

cus

tom


low

com

p

Product

ProductFeatures


CustomerExperience

Naïve



They are completely focused on the customerThe customer is in their DNAThey have a deliberate Customer Experience and a clearly defined Customer Experience statementclearly defined Customer Experience statementSystems are built to improve the Customer ExperienceThe culture is designed, and aligned to the customer E iExperience

An organisation where focus on the customer is total.

They are very proactive and are naturally focused on the Customer Experience. In order

to produce memorable and captivating Customer Experiences they use specific sensesCustomer Experiences they use specific senses

to evoke planned emotions..

They focus on depth of emotionThey consciously use senses to provide a captivating experienceThey use theatre as a delivery methodThey use theatre as a delivery methodThey recruit people who are good at actingThey have an integrated approach to the customerThey have and experience mapThey understand customer sensory expectations

29



Belgian Benchmark 2010 | g |

Online survey – email invitation: Decembe

In collaboration with HUBrussel: master d

186 respondents of 89 companies with cu

18 multiple‐choice questions feeding into

36

59

40

50

60

70

36

59

40

50

60

70

15 14

29

9

24

0

10

20

30

40

15 14

29

9

24

0

10

20

30

40

19% 8% 31% 8% 16% 5% 13%00

Methodologygy

er 2009 – March 2010

dissertation of Ann‐Sofie Lamon

ustomer‐facing activities in Belgium

o the N2N model

98

80

100

120

98

80

100

120 SOHO

34

223240

60

80

34

223240

60

80

B2B

22

0

20

B2C ‐ individuals B2B ‐ self‐ B2B ‐ SME B2B ‐ large

22

0

20

B2C ‐ individuals B2B ‐ self‐ B2B ‐ SME B2B ‐ large

53% 18% 12% 17%

employed companies employed companies

31


Naïve to Natural ® | Belgian| gpe

rienc

e

Sensory3

exec

uted

st

omer

exp

Emotional

liber

atel

y e

ts o

f a c

us


66%

De

com

pone

nt

y

5%

c Product Naïve

Source of diffe

ProductFeatures

Services C

n = 186

n Benchmark Results

high0% highNatural

30%

0%

r foc

us

Enlightened

Cus

tom

er

low

erentiation

CustomerRelations

CustomerExperience

32


Naïve to Natural ® | Top pe| p ppe

rienc

e

Sensory3

B2B telco

exec

uted

st

omer

exp

Emotional

B2B telco

liber

atel

y e

ts o

f a c

us

Physical

66%

De

com

pone

nt

y

Transactional

5%

c Product

Naïve

Source of diffe

ProductFeatures

Services C

n = 186

erformers

high0%B2B pharma highNatural

30%

0%

B2B services

B2B pharma

r foc

us

Enlightened

B2C media

B2C utilities

Cus

tom

er

g

low

erentiation

CustomerRelations

CustomerExperience

33


Naïve to Natural ® | Bottom|pe

rienc

e

Sensory3

exec

uted

st

omer

exp

Emotional

liber

atel

y e

ts o

f a c

us

Physical

66%

B2C banking

De

com

pone

nt

y

Transactional

5%B2B pharma

g

c Product

Naïve

B2B banking B2B utilities

B2C banking

Source of diffe

ProductFeatures

Services CB2B banking

n = 186

m performersp

high0% highNatural

30%

0%

r foc

us

Enlightened

Cus

tom

er

g

low

erentiation

CustomerRelations

CustomerExperience

34


Naïve to Natural ® | Industr|

45

46

45

43

45

4344

45

41 41 4142

43

40

41

39

Telco Utilities Banking Insurance Pharma Media Other

n = 36 15 59 14 29 9 24

stdev = 6,4 8,6 7,9 8,5 7,6 9,4 10,3

ry breakdowny

0,07

0,06

01 Telco02 Utilities

03 Banking 04 Insurance

Industry0,07

0,06

01 Telco02 Utilities

03 Banking 04 Insurance

Industry

r0,05

0,04

ensity 45,03 6,434 36

43,13 8,601 15

Mean StDev N

04 Insurance 05 Pharma

06 Media07 Other

0,05

0,04

ensity 45,03 6,434 36

43,13 8,601 15

Mean StDev N

04 Insurance 05 Pharma

06 Media07 Other

0,03

0,02

0,01De

41,37 7,867 5944,5 8,546 14

41,45 7,586 2941,44 9,435 943,21 10,34 24

0,03

0,02

0,01De

41,37 7,867 5944,5 8,546 14

41,45 7,586 2941,44 9,435 943,21 10,34 24

6456484032240,00

N2N645648403224

0,00

N2N

35


Naïve to Natural ® | Bankin|pe

rienc

e

Sensory2

exec

uted

st

omer

exp

Emotional

liber

atel

y e

ts o

f a c

us


63%

De

com

pone

nt

y

8%

c Product Naïve

Bottom performer

Source of diffe

ProductFeatures

Services CBottom performer

n = 186

ng varianceg

high0% highNatural

29%

0%

r foc

us

Enlightened

Cus

tom

er

EnlightenedTop performer

low

erentiation

CustomerRelations

CustomerExperience

36


Naïve to Natural ® | SOHO v

80%80%

|

70%

60%

70%

80%

70%

60%

70%

80%

56%

40%

50%

60% 56%

40%

50%

60%

average

B2B = 45Stdev 8,6

30%

40%

30%

40% SOHO = 42Stdev 7,8

5% 4%10%

20%

5% 4%10%

20%

0%

Naïve Transactional

0%

Naïve Transactional

SOHO = 132B2B = 52

vs. B2B

41%41% SOHO

25%25%

B2B

0% 0%0% 0%0% 0%

Enlightened Natural

0% 0%

Enlightened Natural

37


Key take awaysy y

Customer experience is an interaction betweeA blend of physical performance, senses stimula

Intuitively measured against customer expectat

The Naïve‐to‐Natural model assesses a compadeliberate customer experience”

It th ti “C d it?”It answers the question “Can you do it?”

It does not say anything on the quality of the cu

N2N looks at the “machinery” not the output

Benchmark results:Less than 1 in 3 companies are able to consistenLess than 1 in 3 companies are able to consisten(enlightened stage)

The majority of Belgian companies are still very

Telco and Insurance slightly outperform other inTelco and Insurance slightly outperform other inbut do they deliver in line with these declared c

Large variance within industries: some compan

en an organization and a customerated and emotions evoked

ions

any’s capabilities to “consistently deliver a

stomer experience you deliver

nly deliver a deliberate customer experiencenly deliver a deliberate customer experience

much product‐oriented and think “inside‐out”

ndustries leaving banking pharma and media behind:ndustries leaving banking, pharma and media behind: apabilities?

ies clearly take the lead

38

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Customer Experience Self-assessment: Belgian Benchmark 2010