Delivering the ultimate customer experience...2018/10/10 · CXForum_Bain_MaritzCX_UK ... dy 5V11 LON This information is confidential and was prepared by Bain & Company solely for

Delivering the ultimate customer experience

CXForum

10 October 2018

2CXForum_Bain_MaritzCX_UK ... dy

V11

LONThis information is confidential and was prepared by Bain & Company solely for the use of our client;

it is not to be relied on by any 3rd party without Bain's prior written consent

The UK Consumer Study looks at 11 key consumer industries

through the eyes consumers

~18K UK consumers 11 consumer industries

• Consumer panel provided by Research Now

• Regional quotas nested within industry

• Brands either fallout naturally or are randomly selected

Consumer Goods

Automotive

Food& Beverage

PersonalGoods

Consumer Services

Retail& Logistics

Travel& Leisure

Healthcare

Telcoand Tech

Telco

Media

Technology

Finance

Banks

Insurance

FinancialServices

Real Estate

Utilities

Energy

Water

Source: FTSE Industry Classification Benchmark Taxonomy – Excludes non-consumer-facing industries Oil and Gas, Basic Resources and Industrials


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This represents a long list of ~200 brands operating in the UK

across industriesAuto

Audi

BMW

Citroen

Fiat

Ford

Honda

Hyundai

Jaguar

Kia

Land Rover

Mercedes-Benz

Nissan

Peugeot

Range Rover

Toyota

Vauxhall

Volkswagen

Volvo

ALDI

Asda

Lidl

Morrisons

Sainsbury’s

Tesco (Grocery)

The co-op

Waitrose…

Grocery

Fashion

Burberry

H&M

Next

Primark

TK Maxx

Topshop

Very (Shop Direct)

General Retail

Boots

Debenhams

John Lewis

M&S (Marks & Spencer)

Logistics

DHL

DPD

FedEx

Hermes

Parcel Force

Royal Mail

UK Mail

UPS

Yodel

Life Insure

Aegon

AIG Life

Aviva

AXA

Bank of Scotland

Barclays

Beagle Street

Canada Life

Clerical and Medical

Fidelity (FIL)

First Direct

Fortify

Friends Life

Halifax

Hargreaves Lansdown

HSBC

Legal and General

Liverpool Victoria Financial Services

Lloyds

MetLife

Old Mutual Wealth/ Skandia

OneFamily

Prudential

Royal London Mutual

Sainsbury's Bank

Scottish Widows

Smart Insurance

St James's Place Plc

Standard Life

Sun Life Direct

VitalityLife

Zurich

P&C

Admiral

Age UK

Ageas

Allianz

Aviva

AXA (P&C)

Bank of Scotland

Barclays

Bell

Carrot

Churchill

Co-operative

Direct line

Elephant

Esure

First Direct

Halifax

Hastings

HSBC

Insure4aday.co.uk

InsureDaily

John Lewis Finance

Legal & General

Lloyds

LV / Liverpool Victoria Financial Services

M&S Bank

More Th>n

NFU (National Farmers' Union)

Quote me Happy

RIAS

RSA

Saga

Sainsbury's Bank

Sheilas' Wheels

Swiftcover Insurance

Swinton

Tesco

Zurich

Booking

Booking.com

Expedia

Skyscanner

Tripadvisor

Air

Aer Lingus

British Airways

EasyJet

Flybe

Jet2

Norwegian

Ryanair

Thomas Cook

Tui

Virgin Atlantic

Hotels

Airbnb

Britannia Hotels

Crown Plaza

Double Tree

Hampton

Hilton

Holiday Inn

Holiday Inn Express

Ibis

Marriot

Marriot Courtyard

Novotel

Premier Inn

Sheraton

Travelodge

Water

Anglian Water

Castle Water

Dwr Cymru Welsh Water

Northumbrian Water

Scottish Water

Severn Trent Water

South West Water

Southern Water

Thames Water

United Utilities

Wessex Water

Yorkshire Water

Energy

British Gas

E.ON

EDF Energy

nPower

OVO Energy

Scottish power

SSEPayments

PayPal

Venmo

Telco

BT

EE

O2

PlusNet

TalkTalk

Three

Virgin

Vodafone

Media

Amazon

ITV

Netflix

Sky

Spotify

Tech

Amazon

Apple

Facebook

Google

Banking

Bank of Ireland UK

Bank of Scotland

Barclays

Clydesdale

Co-operative bank

Danske Bank

First Direct

Halifax

HSBC

Lloyds

Metro Bank

Nationwide

NatWest

Post Office

Royal Bank of Scotland

Santander

Tesco

TSB

Virgin Money

Yorkshire Bank


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The UK Consumer Study provides a unique view of the

‘Road to Leadership’ for customers of each brand in the study

Questions Covered Insights Available

Relationship: NPS and

Why for ~126 UK brands

across products

NPS Benchmarks

CX Drivers

Market Share

Product Holdings

Churn and Consideration

Channel Adoption and Usage

Complaints Volumes and Handling

Innovation trends

Behaviors: churn,

complaints, consideration

Experiences: episode

and channel usage and

NPS

Innovation/Disruption: exemplars and possible

innovation


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-20

-10

0

10

20

30

40

50

Average +14

Tech

Auto

Med

iaPa

ymen

tsB

ooki

ng

Ban

k

P&C

Gro

cery

Gen

eral

Ret

ail

Hot

elFa

shio

n

Life Ai

r

Telc

oW

ater

Ener

gyLo

gist

ics

Average +14

These industries represent a wide range of experiences today

with significant variation within each industry

Industry

Average

NPS Leader

in Industry% %Net Promoter Score

Promoters Detractors

–=


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NPS measures value across industries: promoters switch

less, recommend more and cost less to serve

7-8x more likely to have recommended

20% more likelyto choose self serve

Looking to switch Have recommended Use self-service

4-5x less likely to be looking to switch


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Across all industries only a handful of large UK brands

(top ~10%) have made it into the ‘over 40s’ range on NPS

Fashion

Water

Logistics

Telco

Hotel

Energy

Payments

NPS over +40%

NPS over +30%

Industry Leaders where no brand is +30%

25%

13%

11%

18%

27%

29%

23%

23%


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NPS leadership relies on the customer flywheel of customer

capability and customer experience

Customer capability

Customer experience

Customers reward company

with leadership economics

Customer-led company

delivers better experiences


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Customer capability

Customer experience






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The Net Promoter System translates customer ambition into

operational capability for customer

Leaders 100% committed

Reliable metrics and insights

Inspired employees

Robust operational and analytic infrastructure

Closed loop feedback

C U S T O M E R C A P A B I L I T Y

Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Huddle

Inner loop Individual learning, behavior change, and

connection with customers

Outer loopRoot cause analysis, prioritization and

implementation of structural improvements

Teamproblem-solving,issue escalation,

mutual commitment


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We assess along four stages of customer capability best

practices


Proactive

Prevalent,

proactive and

predictive

Responsive

Driving actions

and culture

at scale

Attentive

Data and

performance

focus

Emerging

Limited and

disconnected

EMERGINGEMERGINGEMERGINGEMERGING


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There are best practices evident across different dimensions

of customer capability


ProactivePrevalent, proactive and predictive

Economics linked and leaders role modelling

Predictive models support proactive use cases

CLF linked to operating model and all change activity

Fully empowered to work across bounds

Fully integrated with other systems and analytics

Leaders 100% committed

Reliable metrics and insights

Inspired employees

Robust operational and analytic infrastructure

Closed loop feedback


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EMERGINGEMERGINGEMERGINGEMERGING ProactiveResponsiveAttentiveEmerging

CXEvolution highlights room to differentiate on customer

capability – only ~3% of 4K companies ‘Proactive’


3%

15%

28%

54%

~70%

Source: CXEvolution MaritzCX, n=10K (40 industries, 700+ CX leaders, 4K companies) Figures shown are % of all CX Evolution Assessment Participants


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Companies with comprehensive CX capabilities…


93%More

profitableHigher NPS

scores

Greater retention

91% 89%

Source: CXEvolution MaritzCX, n=10K (40 industries, 700+ CX leaders, 4K companies) Figures shown are % of all CX Evolution Assessment Participants


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Qantas demonstrates leading capability in collecting and

democratising feedback

Crew - On Board Frontline Support Roles

‘RedApp’ provides crew with customer feedback in flight

‘QantasDirect’ screens in team rooms pipe real time customer

feedback

Visual 360o customer communications ensure living and

breathing customer



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Spark is breaking the mould to use real-time data to deliver

smart Closed Loop Feedback


MeasurablePersonalized Smart

“Customer experience is the

new source of competitive advantage.

To succeed, we are

concentrating our time and

energy on the things that matter for customers.”

Simon Moutter Managing DirectorSpark, New Zealand


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Lush focusses on employees to deliver highly tailored

customer experiences


Recognizing different customer types

Empowered to go the extra mile for customers

Leveraging the power of emotions

Leveraging the power of technology


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Customer capability

Customer experience






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What our customers are asking us to do for them

C U S T O M E R E X P E R I E N C E

Today

Keep me safe / informed

Give me the right solution

Make it easy for me

“Always clear information, with a friendly,

no-nonsense approach”

“It is easy, hassle free and on subscription no adverts- new and up to date music and simple playlists”

“Always coming out with new products which are making a big difference to people's lives”

“It's a reasonable price, doesn't lock you in and

gives a lot of choice”

“Easy to drive, easy to fix”

“Attention to safety, a quality brand, reliable

support team”


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What brands are changing your life?

How are your expectations as consumers changing?


Make it easy for me

Today


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Make it easy for me

Today


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Give me the right solution

Today


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Keep me safe / informed

Today


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First Direct has achieved UK leadership of +63 NPS

by delivering across all three customer needs


TodayFirst Direct has one of the best current accounts for switchers:

a £100 sign-up bonus (or free

Amazon Echo Spot) and

a £250 interest-free overdraft

People are not scripted and not timed on

their calls so they can build rapport -they take ownership and get back to the customer

“The biggest single reason people join First Direct is poor service from a previous provider”

First Direct was the first UK bank to launch a transactional banking App


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There is no one recipe for success – e.g. Barclays and Metro

Bank creating promoters their own way


Today

• Strong online/ offline service experience

• Reputation and longstanding brand

• Perception of fair fees and selection

• Best in class in-branch experience

• Convenience – opening times, locations

• Excellent people get the job done


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Which company in the UK do you see as most innovative in

any industry and why?


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Which company in the UK do you see as most innovative in

any industry and why?

Why do you think this company is the most innovative in the UK?


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What is ‘wowing’ our customer now – Why do you think this

company is the most innovative in the UK?


“Has brought in table service and queue busting self

serve podiums”

“Wide range of community involvement - workers take

part in volunteering projects”

“Breaks the mould – they try and invent and re-invent

things - new ideas”

“It helps people from all over the world connect via the

many services that it provides”

“Linking many aspects of my digital life - shopping, books,

audio books, Alexa etc”

“Modern, unique and trending”

Do morefor me

Empowerme

Connect me

Tomorrow


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16% of all UK consumers see Amazon as the most innovative

brand in the UK


Tomorrow

Source: Twentify.com


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brand in the UK


Tomorrow


Connectme

has well over 25,000 skills and has over

3,000 connected devices


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brand in the UK


Tomorrow


Amazon Go is a new kind of store featuring

the world's most advanced shopping technology.

No lines, no checkout – just grab and go!

Empowerme


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brand in the UK


Tomorrow


Do morefor me

Amazon has opened up lockers for delivery in Whole Foods locations. There are special discounts

and free delivery for Amazon Prime members.


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brand in the UK


Tomorrow

“Morgan Stanley predicts Amazon (market cap $922B) will continue growing at a 16% CAGR through 2025”


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Customer capability

Customer experience






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Customer capability Customer experience




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Take a momentto reflect

What will I champion in my company

on customer

capability and

experience?

What can we learn from others

about how to

meet customer

needs better?

What do changing customer expectations mean for my

company?

How are my customers’ (my) needs changing?

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Documents

Delivering the ultimate customer experience...2018/10/10 · CXForum_Bain_MaritzCX_UK ... dy 5V11 LON This information is confidential and was prepared by Bain & Company solely for