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2014 Nuance CES London - 7 Analyst Keynote- The Effortless Experience - Rick DeLisi
Citation preview
The Effortless Experience Conquering the New Battleground
for Customer Loyalty
Presentation to:
Nuance Annual Customer Service Summit
RICK DELISI, Co-Author
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHAT IS LOYALTY?
Repurchase
Q: What % of your customers are loyal TODAY?
Increased Spend / Share of Wallet
PWoM / NWoM
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDED
OUR RESEARCH
What impact do
customer service
interactions have
on a customers
future loyalty?
1
What are the things
customer service
can do to
drive loyalty?
2
How can service
improve loyalty
while still
reducing
operating costs?
3
Q: What do most companies believe they need
to do in order to create greater loyalty?
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
HAVE YOU SEEN THIS GIRAFFE?
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE MOMENT OF WOW
A strategy of delight @CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF
125,000+ customers surveyed to understand drivers of loyalty
5,000+ customer service reps surveyed to understand
drivers of performance
100+ companies analyzed to understand impact of policies
and processes
3 major findings
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESNT PAY
Less
Loyal
More Loyal
Below Customer
Expectations
Meets Customer
Expectations
Exceeds Customer
Expectations
The Perception
The Reality
Delight increases costs by 10-20%
Delight only happens 16% of the time
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
1. 00x
3.97x
More Loyal
More Disloyal
Drivers of Disloyalty
Repeat contacts
Channel switching
Transfers
Repeating information
Robotic service
Policies and processes
customers have to endure
Hassle factor
FINDING 2: SERVICE DRIVES DISLOYALTY
Customer Service Impact on Loyalty
Source: CEB analysis.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
1. 00x
3.97x
More Loyal
More Disloyal
Drivers of Disloyalty
Repeat contacts
Channel switching
Transfers
Repeating information
Robotic service
Policies and processes
customers have to endure
Hassle factor
Customer Effort
FINDING 3: MITIGATE DISLOYALTY
BY REDUCING EFFORT Customer Service Impact on Loyalty
Source: CEB analysis.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FOR
THE EFFORTLESS EXPERIENCE
Low Effort High Effort
1%
81%
Low Effort High Effort
88%
4%
Low Effort High Effort
Repurchase
94%
4%
Low-Effort Experience
High-Effort Experience
Overall Disloyalty
9%
96%
Source: CEB analysis.
Increased Spend/
Share of Wallet
Negative WOM
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CONCLUSION:
What do you want your customers to SAY
following a service interaction?
Source: CEB analysis.
We used to THINK it was:
Wow, that company really went out of their way
to delight me!
But now we KNOW it is:
Wow, that company really went out of their way to make it so much easier
for me to solve my problem!
LOW Effort Service = HIGH Customer Loyalty
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF
LOW-EFFORT SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF
LOW-EFFORT SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHICH WOULD YOU RATHER USE?
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMERS DONT WANT TO TALK TO YOU
Company Perception Actual Customer Preference
1. 0x
2.5x
Web Preference
Phone Preference
1. 0x
Web Preference
Phone Preference
1. 0x
Source: CEB analysis.
3-5 years ago, 66% of customers primarily relied on the phone channel
Today, only 28% of customers report that they primarily rely on the phone channel
Pattern largely holds
across issue types
and demographics
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
ITS NOT ABOUT GETTING THEM TO GO
First Contact Channel
Phone
Web
57.7% of phone callers
first went to the
companys Website
Source: CEB analysis.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
ITS ABOUT GETTING THEM TO STAY
First Contact Channel Concurrent Channel Usage
Phone
Web
Just Phone
Web and Phone
35.5% of phone callers were on
the companys Website while
talking to a representative
57.7% of phone callers
first went to the
companys Website
Source: CEB analysis.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER
Conventional Wisdom:
Weve got to come up with a way to allow: every customer to solve
every issue in
every channel.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER
84%
Value EASE Over Choice
Want fast resolution without bouncing around channels
Prioritize low effort over channel choice
16%
Value CHOICE Over Ease
Want issue resolved in
their preferred channel
Prioritize channel choice
above all else
Source: CEB analysis.
The vast majority of customers dont CARE what channel they have to use, they just want
the problem to go away. Now.
GUIDE them to the channel that is fastest and easiest.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
GUIDANCE IN ACTION: The Virtual Concierge
Source: Amazon.com.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
MYTHS ... BUSTED
Most think... The reality is...
customers want to
call for service.
most customers prefer to
self-serve.
the big challenge is getting customers
to try self-service
its hard getting customers to stay in
self-service.
customers demand more choice
in self-service.
customers demand simplicity and
guidance.
Source: CEB analysis.
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF LOW-EFFORT
SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
Have I fully resolved your issue today?
THE WORST QUESTION A REP CAN ASK
Companies think 76.7%
of customer issues are
resolved in one contact
But customers claim only 40%
of their issues are
resolved in one contact
Source: CEB analysis.
Unnecessary callbacks = HIGH customer effort
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?
54%
Implicit Issues Explicit Issues
Staff mistakes
System or process failures
Adjacent issues
Experience issues
Drivers of
Callbacks
Source: CEB analysis.
46%
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
ONE STEP AHEAD
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF LOW-EFFORT
SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE CUSTOMER EFFORT SCORE 2.0
Strongly
Disagree
Disagree Somewhat
Disagree
Neither
Agree Nor
Disagree
Somewhat
Agree
Agree Strongly
Agree
The company made it
easy for me
to handle my issue
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
??
4%
67%
THE CUSTOMER EFFORT SCORE 2.0
and a way for service functions to positively impact Net Promoter Score
A great way for service functions to
detect potential disloyalty
Strongly
Disagree
Disagree Somewhat
Disagree
Neither
Agree Nor
Disagree
Somewhat
Agree
Agree Strongly
Agree
The company made it
easy for me
to handle my issue
Overall Disloyalty Percent of Detractors
High Effort Low Effort High Effort Low Effort Source: CEB analysis.
??
9%
96%
@CEB_Effortless
2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
For more information:
www.effortless-experience.com
@CEB_Effortless