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1
Treating Employees as Customers
to Reduce Frustration and Increase
Success
Dreamforce
December 8, 2010
12:15 - 1:15PM
by John Goodman, Vice Chairman
2
Challenge to Developers
• Eliminate unpleasant surprises
• Enhance first level resolution
• Give employees clear believable explanations
• Aggressively get feedback and acknowledge it
• Empower the customer to manage their overall customer
experience
• Make technology either transparent or a delighter for both
customers and employees
• Create emotional connection
2
3
Agenda
• What causes frustration and extra cost? Problems and the
inability to resolve them.
• Solution – reduce problems and increase success.
• Strategy:– Reduce problems by setting proper expectations
– Quantify the revenue and word of mouth damage to get resources
– Create an effective Voice of the Customer
– Make your front line successful with flexibility, clear explanations and
positive incentives
– Use technology to deliver psychic pizza
4
About TARP
• Founded in 1971—39 years of customer experience leadership
–White House Complaint Studies 1970s-80s (instigated 800#s and
GE Answer Center)
–Assisted 6 Baldrige Winners and 43 Fortune 100 Companies
–Initiated concept of ―word of mouth‖ (TARP/Coca-Cola 1978
Study) and ―word of mouse‖ (eCare and Click & Mortar studies
1999)
• Offices in Wash., D.C.
• Credited with developing the approach
for quantifying the impact of quality
on revenue, cost & WOM for companies
like Neiman Marcus, Toyota/Lexus, Hyundai,
USAA, Cisco Systems, Xerox, 3M, Moen,
IBM, Intelligence Community, Qualcomm,
Ritz Carlton, Whirlpool, Museum of Modern
Art, USO and Chick-Fil-A.
3
5
Customers, donors, citizens
will:
Use again
Use or donate more
Tell others to use or donate
Try your other products &
services
+ =
DOING
THE RIGHT
JOB
RIGHT THE
FIRST TIME
MAXIMUM
CUSTOMER
SATISFACTION
& LOYALTY
ImprovedProduct & Service
Quality
Respond toIndividual Customers
Identify Sourcesof Dissatisfaction
Conduct RootCause Analysis
Feedback onPrevention
EFFECTIVE
CUSTOMER
CONTACT
MANAGEMENT
Formula For Maximizing Customer Satisfaction
6
Firefighting Mode
4
7
Riding the Wave of Customer Experience
Management: Six Big Ideas
1. Staff doesn’t cause most customer dissatisfaction –sales, products, processes and customers do
2. It is cheaper to give great service than just good service, the revenue payoff is 10-20X the cost
3. An effective Voice of the Customer includes all kinds of data describing the overall customer experience
4. People are still paramount – make the front line successful with flexibility and clear explanations
5. Deliver technology that customers will enjoy –delivering psychic pizza via any channel
6. Sensibly create remarkable delight
8
Employees Do Not Cause Most Customer Dissatisfaction
- Fails to follow
policy
The majority of customer dissatisfaction is NOT caused by employee error or attitude but
by products that cause disappointment and broken processes*
Customer20%-30%
Employee
20%
- Wrong expectations
- Customer error
-Fails to follow
policy
-Attitude
Company 40%-60%- Products and services
don’t meet expectations
- Marketing miscommunication
- Broken processes
Poorly designed products,
Processes, and marketing
create most unmet
expectations. Further,
employees are often not
equipped with effective
responses to problems.
Customer expectations
must be set and they must
be educated on how
to avoid problems
and surprises.
*Finding based upon TARP analysis problem cause
data in over 200 consumer and B2B environments.
At least
30% of
contacts are
preventable
5
9
Assuring You Are Easy to Do Business With?
• Can easily find where to go to get need fulfilled
• Easily get access to source of answer
• Eliminate bureaucracy
• Answer completely fulfills need including
anticipating next need
• Follow-through happens as expected and is
confirmed
10
Customer Expectation: Key Factors Driving
Satisfaction
• No Unpleasant Surprises
• If Trouble Encountered– Accessibility, Taking ownership, Apology
– Clear, believable explanation
– Creating an emotional connection rather than just
courtesy
– Money is often not the best solution
– Timeliness and Keeping promises
• Handle on First Contact Results in 10% Higher
Satisfaction and 50% Lower Cost
6
11
TARP’s Tip Of the Iceberg
Why customers
and employees
don’t complain:
• Hopelessness
• Fear
• Don’t know
where
What you don’t
hear about
often does the
most damage
12
1. Prevent Problems By Setting Proper Expectations
• Understand who the customer is
• Welcome packages and calls
• Encourage questions before customers get
into trouble
• Confirmations/Progress reports
Who has proactive education successes?
7
1313
2. Make the Support Center the Focal Point
of the Voice of the Customer on Customer Experience
• Customer surveys
• Customer contact and interaction data
• Internal operations process, quality data
• Employee input
• Together, these elements can identify opportunities and
give employees a feeling of control
+ = Total view of the
customer
experience
Internal process
and quality data
and employee
input
+Customer
contact and
interaction data
Surveys of
customer
satisfaction and
loyalty
Take The Role Of Chief Customer Officer
14
=
=
=
=
x xx
=
2,000
6,000
9,000
37,500
54,500Total Customers At Risk
200,000
Customers
with
Problems
20%
DissatisfiedMany Not
Repurchasing
Some Not
Repurchasing
50%
Satisfied
Most
Repurchasing
75% Do Not
Complain
25%
Complain
30%
Mollified
Some Not
Repurchasing
3. Get More Resources for the Support CenterDemonstrating cost of less than perfect support to the CFO, CMO and the General Counsel
Three strategies: Prevention, Solicitation of Complaints and Improved Response
At $1,000 per customer, $54.5 million at risk
8
15
Finance Wants Higher Margins
10%
22%
46%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No problems 1 problem 2 to 5 problems 6 problems or
more
Percent of customers dissatisfied with fees rises with number of problems.
16
4. Create A Culture of Success
• Stellar Leaders and Culture Are Great, But..
• Tools – issue driven flexible solution spaces
– believable explanations
– supported by tools and information on customer situation
• Training – ongoing training and story telling
• Motivation – celebration via victory sessions
& promotability
9
17
ABC company employees
Very Satisfied1
(49%)
Somewhat Satisfied2
(33%)
Neutral to very dissatisfied3
(14%)
Overall satisfaction
with ABC
(% of employees)
% definitely continue to work for ABC Company
(% of employees)
84%
27%
8%
=
=
=
1Top box2Second box3Bottom three boxes
Very satisfied1
(48%)
Satisfied2
(39%)
57 point drop
Impact of Satisfaction on Employee Loyalty • The impact of satisfaction on willingness to continue to work for ABC
indicates a need for employees to be very satisfied with the company. Less than half of employees report to be very satisfied.
18
IQuestion/problem
experience
II Contactbehavior
IIIContact handling
Employees
No problem
experience20%
Problemexperience*
80%
Non-contactors
21%
Contactors79%
IVMarketimpact
% Definitelycontinue to
work for ABC
Dissatisfied3
46%
Satisfied1
11%
59%
67%
37%
62%
% Extremely motivated
Mollified2
43% 49%
40%
52%
36%
33%
34%*In the past 6 months1Top box2Middle two boxes3Bottom two boxes
Impact of Problem Experience on Employee Loyalty
• An employee who has a problem, contacts, and is satisfied with how that problem was handled is more loyal and more motivated than someone who never had a problem to begin with.
10
19
* Based on most serious problem
** All employees excluding ―definitely‖ and ―probably will―continue to work for ABC in the future.
Note that analysis by job title was not possible due to a resulting low N size.
Overall %
experiencing
any problem Most serious problem category
%
Problem
frequency*
% Not likely to
work for ABC
in the future**
%
Potentially
at risk
Servicing clients 45% 11% 8.0%
Information/internal communication 22% 20% 3.5%
Work environment 20% 32% 2.3%
Performance, leadership, and growth 16% 17% 2.2%
Other 7% 25% 1.4%
80%
TOTAL EMPLOYEES AT RISK 17.4%
Quantify Employee at Risk by Type of Problems
• As many as 17% of ABC employees might not continue to work at ABC due to problems.
• Issues of most concern to employees have to do with servicing clients.
TARP Paper: Treating employees as customers
20
Specific problem
% frequency
of all
problems
% somewhat
or very at
risk
Servicing Clients
I have to call multiple times to get something done 40 6.7%
Other departments do not follow through on promises made 19 4.1%
I only get voice mail when calling other parts of the company 26 3.7%
Information/Internal Communication
Communication within the branch not effective 30 7.7%
Conflicts not surfaced openly within my branch 22 5.3%
Management objectives not communicated in a timely manner 16 4.6%
Work Environment
No/limited initial training on client service 22 9.5%
Hard to get things done within my branch 16 5.0%
No/limited opportunities to receive ongoing training 16 4.6%
* Multiple response variable
Employees At Risk—Most Damaging Problems• Servicing clients and getting needed training are biggest frustrations:
11
21
Identification of Issues Requiring Improved
Response Rules and Processes
Transaction which is biggest opportunity for improvement
Problem reports % Loyal (Top 2 Box) # Contacts
Routine order 98 1.1
Shipment status 91 1.2
Product return 93 2.1
Shipping charges 88 2.1
Backorder status * 67 3.3
Call center overall average 91 1.9
Misuse of resources to intensively measure this transaction
TARP Paper: Your monitoring and coaching may be doing more damage than good
22
Herman
―We’ve lost your stuff, but you get first choice of any
bag off Flight 601 from Athens.‖
12
23
Provide Tools to Assure Action, Address Policy
Issues and Cross-sell
• Auto-edits to save employees and customers from
errors
• Desktop tools – auto implementation – ― It has been
done!‖
• SLAs to create confidence in back office
• Ability to set proper expectations for completion
• Time to address policy and process issues and
education on how to avoid in the future - delighter
• Ability to make input to Voice of the Customer –
plop in front of the desk
24
5. Deliver Technology People Enjoy
• Why people hate technology– Wastes my time
– Gets in the way – phone trees
• Why they love it– Anticipates
– Simplifies
• Delivering psychic pizza
13
25
Press 1
for Automated
Information
Press 2
Literature
Press 1
Feedback
Press 2
Faxback
Literature
Press 3
Online
Services
Press 2
Sales
Information
Press 1
Ad
Responses
Press 3
General Sales
Information
Press 3
PCI SCSI
Press 2
Drives
Press 1
RMA
Status
Press 6
Other
Press 5
Video
Press 4
Hard Drive
Controllers
Press 4
Technical
Support
(800) ASK-4-WDC
Support Phone Matrix
Get Customer to Right Place First Time: Print the
Menu Where You Print the Phone Number
20% increase
In both compliance
And satisfaction
26
6. Delight: Heroics and Constantly Exceeding
Expectations is NOT Necessary Or Even Smart
Delight experience Average lift to repurchase or
recommend (Top Box)
Service beyond expectation - heroics 12%-14%
No unpleasant surprises 22%
Friendly 90-second staff interaction 25%
Personal relationship over months 26%
Tell me of new product or service I can really use
30%
Proactively provide information on how to avoid problems or get more out of your product
32%
14
27
Ten Myths About Service Existing in Most Companies
1. Always exceed customer expectations
2. Answering the phone really fast is the key to success
3. People always prefer talking to people
4. The customer is always right
5. Complaints are down, things are getting better
6. Employees are the cause of most dissatisfaction
7. Price and cost cutting is the key to success
8. We’re at 90% satisfaction – let’s declare victory!
9. Measure Net Promoter and we’re done
10. We have a 100% satisfaction guarantee – everyone is happy.
TARP Paper: Marketing myths and service slips
28
Challenge to Developers
• Eliminate unpleasant surprises
• Enhance first level resolution
• Feed employees clear believable explanations
• Aggressively get feedback and acknowledge it
• Empower customers to manage their overall customer
experience
• Make technology either transparent or a delighter for both
customers and employees
• Create emotional connection
15
29
Grade 1-10
Evaluate Your Employee Success Factors Grade
Marketing responsible for setting proper expectations for major products
Overtly warn customers about problems
Create a VOC allowing understanding of end-to-end experience & non-complaint rate by issue
Quantify revenue left on table, cost and WOM impact by issue
Create flexible solutions for top 5 tough issues
Provide staff with clear explanations
SLAs exist with support and marketing units
Lead customers to self service via education
Use technology to deliver psychic pizza
Continuously celebrate all employees doing things right
If below 75 – you’re wasting at least 15% of your support budget
Total _____
30
Summary
• Aggressively ask for frustrations and time wasters
• Eliminate unpleasant surprises
• Quantify the revenue cost of frustrations and touches by
type of issue at employee and customer level
• Deliver psychic pizza to reduce workload
• Use dead time to delight
• Practice continuous experimentation accompanied by
measurement
• Outlined in detail in Strategic Customer Service published
by AMACOM
• [email protected] or 703-284-9253