Invisible Customer Experience Innovation

www.ClearActionCX.com

Invisible Customer Experience InnovationGetting Your Act Together

is the Best Way to Differentiate Customer Experiencefor Sustained Business Results

Your Opportunity for Differentiation

1) CMO Council, Customer Affinity, 2007

© Copyright ClearAction. LLC All rights reserved.


59%

75%

Our Service is

Above-Average

Your Service

Left Me

Somewhat

to Extremely

Dissatisfied


2) Accenture, Delivering the Promise, 2007


31% 69% of Firms: Not High Commitment to Listening

32% 68% of Firms: Not Turning Problems into Opportunities


59%

75%

Our Service is

Above-Average

Your Service

Left Me

Somewhat

to Extremely

Dissatisfied


2) Accenture, Delivering the Promise, 2007

3) CMO Council, Turning Customer Pain into Competitive Gain, 2009© Copyright ClearAction. LLC All rights reserved.

1%

Increase

of Positive

Word-of-Mouth

0.14% Revenue Growth

-London School of Economics

Advocacy Drives Growth study

How Much Revenue is Gained via Positive Word-of-Mouth


1%

Reduction

of Negative

Word-of-Mouth

1%

Increase

of Positive

Word-of-Mouth

0.41% Revenue Growth 0.14% Revenue Growth

300% ROI on reducing negative buzz

compared to increasing positive buzz -London School of Economics

Advocacy Drives Growth study

3X ROI on Substance Versus Sizzle

Highest Growth from Ease-of-Doing-Business


Good news is no news

No news is bad news

Bad news is good news!

-Jim Morgan, Chairman, Applied Materials

Embrace Warning Signals From Customers


Nurture Customer-Centricity Constantly


ClearActionCX.com/blog


Customer

Feedback

Customer

Perceptions 1) Capture

Customer Inputs

Lagging

Indicators

WHY VOC is a lagging indicator:

Reveals what customers already think

Customer Experience Improvement Model


Customer

Feedback

Action Plan

Metrics

Customer

Perceptions 1) Capture

Customer Inputs

2) Create

Action Plans

3) Communicate

Progress

Lagging

Indicators

Leading

Indicators

WHY VOC is a lagging indicator:

Reveals what customers already think

WHY action plan metrics are a leading indicator:

Predicts what customers will think

Customer Experience Improvement Model

http://www.symantec.com/themes/theme.jsp?themeid=customer_driven&ptid=tab2

Close the Loop: Report Action Item Progress


http://www.motorola.com/governmentandenter

prise/contentdir/en_US/Files/ProductInformati

on/ITL%2006.pdf


© Copyright ClearAction LLC. All rights reserved.

http://www.boeing.com/commercial/aeromagazine/articles/qtr_2_08/article_01_1.html



Interview Customers Survey Reports Presentations

• Interpretation• Graphs, Comments• Multiple Functions

Institutionalize Customer Experience Improvement



Conduct Workshop

APPLIED MATERIALS

CUSTOMER FOCUS MEASURES WORKSHOP

Execution andFeedback Plans

Voice of theCustomer

Improvement ActionPlans to Benchmarked

Targets

Customer SatisfactionMeasures

Customer Focus

Measures

Customer Perceptions

Customer Focus Measures(Internal - Leading Indicators)

1.

2.

3.

Action Plan(Include Program Name, Owner, Completion Date)

1.

2.

3.

4.

Customer Feedback(Voice of the Customer)

1.

2.

3.

Customer Satisfaction Measures(External - Lagging Indicators)

1. (Satisfaction Index)

2. (% Deterioration)

3 (% Improvement).4. (Competitiveness Index)

Confirm w/Clients


• Prioritization

• Progress Reports




Conduct Workshop

APPLIED MATERIALS

Title of Action Plan

M1 M2 M3 M4

Actual & Target

Deadlines

1.) __________________________________________________

2.) __________________________________________________

3.) __________________________________________________

%

Owner

Problem Statement:

Goal:

Owner:

Action Plan:

APPLIED MATERIALS





Targets


Customer Focus

Measures



1.

2.

3.


1.

2.

3.

4.


1.

2.

3.





Single-Page Strategies

Operations Reviews Confirm w/Clients


• Prioritization• Actions + Metrics

• Drive Change • Progress Reports




Conduct WorkshopMetric Dashboards

APPLIED MATERIALS


M1 M2 M3 M4

Actual & Target

Deadlines

1.) __________________________________________________

2.) __________________________________________________

3.) __________________________________________________

%

Owner

Problem Statement:

Goal:

Owner:

Action Plan:

APPLIED MATERIALS





Targets


Customer Focus

Measures



1.

2.

3.


1.

2.

3.

4.


1.

2.

3.





Single-Page Strategies

Incentives Operations Reviews Confirm w/Clients


• Prioritization• Actions + Metrics• Leading & Lagging

• Recognition & Bonuses • Drive Change • Progress Reports



Who Owns the Customer Experience?

Sales

Service

Channels

Partners

Marketing

Quality

DesiredOutcomes

TotalCosts

Money

Time

Energy

Psychic

TotalValue

Product

Service

Personnel

Image

NeedAwareness

NeedExtinctionCircumstance


Channel Customer Voice into Company

19

PoliciesProcesses

Culture

Affinities

Convenience

Product

Service


Help Everyone Own the Customer Experience

Sales

Service

Operations

Manufacturing

Channels

Engineering

Finance

Human Resources

Legal

Marketing

Quality

Safety

Suppliers

Partners

Facilities

Information Technology

Purchasing

etc.

DesiredOutcomes

TotalCosts

Money

Time

Energy

Psychic

TotalValue

Product

Service

Personnel

Image

NeedAwareness



Airlift & Tanker (A&T) 1998 Malcolm Baldrige National Quality Award

http://www.bptrends.com/publicationfiles/11-05-WP-

BoeingATBPM-Garretson-Harmon.pdf

Everything Revolves Around Customer Experience


Process Improvement at Root Level

Market Results:

Customer's

View

Quality Results:

Manager's

View

Process Drivers:

Team's

View

Root Causes:

Leading

Measures

1) Why?

2) Why?

3) Why?

Roo

t of P

robl

em

Service Too

Expensive

Under-Utilized

Service

Value

Unappreciated

Customer Data

Not Integrated

Overselling

Communication

Issue

Incentives

Not Balanced

Instructions

Not Clear

4) Why?

Send root cause reports to originators

Outdated

Supply List


Discover Each Group’s Role in CEM

Department: __________________

Our RoleIn Outcomes

Our InternalCustomers’ Roles

In Outcomes• x• x• x• x

• x• x• x• x Customer Survey Results

= Customers’ Desired Outcomes


Department: __________________

Our RoleIn Outcomes

Our InternalCustomers’ Roles

In Outcomes

Our Possible Detractors to Outcomes

• Inconsistency:

• Overload:

• Waste:

Our Possible Value-Add to Outcomes

• Time:• Place:• Access:• Form:• Features:• Ease:

• ___________• ___________• ___________• ___________

• ___________• ___________• ___________• ___________

Customer Survey Results= Customers’ Desired Outcomes

Engage Everyone in Experience Innovation


Top-Down Objectives & Bottom-Up Metrics


Corporate

Objective

15% YoY C Sat

Division

Objective

Process

Improvements1. Cascading

Focus

2. Cascading

Focus

3. Cascading

Focus

Department

Objective

Timely Responses

Team

Objective

Confirm Solutions

Top-Down Objectives & Bottom-Up Metrics


Corporate

Objective

15% YoY C Sat

Division

Objective

Process

Improvements

4. Team Metrics

% Resolved < 48 Hrs

1. Cascading

Focus

2. Cascading

Focus

3. Cascading

Focus

Department

Objective

Timely Responses

Team

Objective

Confirm Solutions

5. Department Metrics

% Response < 1 Wk

6. Division Metrics

% Automation

Workshops for Everyone to Improve CEM


Root Cause MetricCustomer-Focused Problem Statement

Root Cause Statement

Root Cause Goal

Goal Owner (Person)

Goal Action Plan Action Owner (Person) Action Deadline (Date) Goal Impact

1)

2)

3)

4)

Week 1 Week 2 Week 3

Weave CEM into Staff Meetings, Ops Reviews


B CA D E

Total Company

BU #2 BU #3 BU #4BU #1Org A BUs

BU #1

BU #1Org C BUs BU #2 BU #3 BU #4

BU #4BU #3BU #2Org B BUs

Help Teams Help One Another


.

Cross-Functional

Teams Formed

Management's

Challenges

Announced Project Approach

Identified

.

Current Performance

Target

Motivate Prevention & Innovation

Team Chronicles

Progress


.

Cross-Functional

Teams Formed

Management's

Challenges

Announced Project Approach

Identified

.

Current Performance

Target

Constructive Feedback

from Panel of Judges

Wide Array of Congratulations

- or -

Chance to Re-Submit

Motivate Prevention & Innovation

Team Chronicles

Progress


NeedAwareness

NeedExtinction

EvaluatingAlternatives

AdditionalInformation

SalesContact

Word-of-Mouth, AdsSocial Media, Website

OrderingActivities

FulfillmentActivities

Problem ResolutionCross-Sell, Community

Initial UseExperience

Familiarization& Learning

Update Voice-of-Customer to Understand Whole CX


OU

R

PR

OC

ES

SE

S

TOUCH-POINTS

AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY

NeedAwareness

NeedExtinction

InitiatingSituation

ConsideringNeeds

IdentifyingAlternatives

EvaluatingAlternatives

InitialAssessment

AdditionalInformation

Decision Process

SalesContact

Word-of-Mouth, AdsSocial Media, Website

OrderingActivities

FulfillmentActivities

Problem ResolutionCross-Sell, Community

Initial UseExperience

Integration withPeople/Things

Familiarization& Learning

Adaptation,Extension,Disposal

Usage Steps

Customer Experience is More Than Touchpoints

CircumstanceCircumstance


OU

R

PR

OC

ES

SE

S

CU

ST

OM

ER

S’

PR

OC

ES

SE

S

TOUCH-POINTS

AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY

Inspire Innovation via Full Use of CEM Data

Complaint LogsSales/Service

Reports

Surveys/Win-Loss

Reports

CRM Database/

Blogosphere

Create or Enhance

Customer Experience

Personas

Panoramic View of Customer Experience:

Need

Awareness

Need

Extinction


Past Current Future Ideal

= Value Quotient

Solution A

Solution B

etc.Val

ue Q

uotie

nt

Circumstance

How Customers Judge Value

History


Desired Outcomes

Undesired Outcomes

Past Current Future Ideal

Desired Outcomes

Undesired Outcomes= Value Quotient

Solution A

Solution B

etc.Val

ue Q

uotie

nt

Circumstance

Outcome A Outcome B Outcome C Outcome D

Solution A

Solution B

etc.Val

ue Q

uotie

nt

Circumstance

Ideal

How Customers Judge Value

History

Priorities


Address Entire Customer Experience

DesiredOutcomes

Product Service

Business Model

Affinities Convenience

Policies Processes

Culture

Means-to-an-End

Firm’s Solution

TotalCosts

Money

Time

Energy

Psychic

TotalValue

Product

Service

Personnel

Image

NeedAwareness



Prevent Recurrence Through Systems Thinking

• Analogies

• Connectivity

• Framing

• Patterns

• Perspective

• Structure

LIKE …

DesiredOutcome

Barriers

Solutions

Why

Solutions

FuturePresentPast


Ease-of-Doing-Business = Invisible Innovations

Stream Relevant Listening

Data Segments to ALL

Departments

Good news is no news,

No news is bad news,


Make it Easy

for Employees to Accept

Customers’ Constructive Feedback


Handle Complaints

Systematically Like ‘RMA’

RMA = Returned Materials Authorization Process

APPLIED MATERIALS





Targets


Customer Focus

Measures



1.

2.

3.


1.

2.

3.

4.


1.

2.

3.





APPLIED MATERIALS


M1 M2 M3 M4

Actual & Target

Deadlines

1.) __________________________________________________

2.) __________________________________________________

3.) __________________________________________________

%

Owner

Problem Statement:

Goal:

Owner:

Action Plan:

Make Action-Planning Easy &

Motivate Follow-Through


Ease-of-Doing-Business = Invisible Innovations

Stream Relevant Listening

Data Segments to ALL

Departments

Good news is no news,

No news is bad news,


Make it Easy

for Employees to Accept

Customers’ Constructive Feedback

Do you like these concepts?

Let us help you master them

to increase your company’s growth!

Contact us today:

[email protected]

tel +1 408 687 9700

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“ClearAction taught us things

that wouldn’t readily cross our

minds and has increased our

efficiency & accuracy in many

areas. We highly recommend

ClearAction as a business

consultant.”

“The cross-functional collaboration

necessary to successfully manage

the customer experience requires

big picture, systems thinking.

ClearAction brings very practical,

well-thought out approaches to get

the internal cooperation needed.”

“ClearAction is very dependable

and detail-oriented, and has an

extremely high sense of integrity.

There's no question ClearAction

will do what's needed to ensure

the work is done correctly and the

client's best needs are taken into

account.”

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Consulting Roles

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Customer Experience Optimization Talk Show

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Sungard, SunTrust, Symantec, TELUS, tw telecom, Virgin Mobile, Wells Fargo

http://ClearActionCX.com/cx-podcasts

e-books available at ClearActionCX.com/cx-books

or Amazon Kindle:Metrics You Can Manage For Success

Customer Experience Improvement MomentumInnovating Superior Customer Experience

white paper available at ClearActionCX.com/cx-articles

Employee Engagement in Superior Customer Experience: 4 Overlooked Key

Competencies for Sustainable Results

Resources about customer experience optimization

See more at

http://ClearActionCX.com/best-practices



For More About Customer Experience:

www.ClearActionCX.com/best-practices

[email protected]

tel +1 408 687 9700