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Delight Your Customers!
(Part 1)
Who is the 21st Century customer?
Alienated, alone, frustrated, not valued…
“…and surrounded by morons!”
Short of money
Time Poor
Bored
Savvier…
• Know more about what you sell and how it works
• Interact with many suppliers, getting more quotes
• In many different channels and media….
Nothing influences people more than a recommendation from a trusted friend
(Mark Zuckerberg)
For a generation of customers used to doing their buying research by search engine, a company’s brand is not what the company says it is, but what
Google says it is. Word of mouth is now a public conversation, carried on in blog comments and customer reviews, exhaustively collated and measured.
The ants have megaphones now
(Chris Anderson, Editor-in-Chief, Wired, from his book The Long Tail: Why the future of business is selling less of more)
Four forces are making customers smarter and more demanding…
Digital Sensors Track Everything
Pervasive Memory Remembers Everything
Social Influence Share Everything
Physical WebShare Everywhere
How can you play in this same game?
And the Biggest Challenge of All? The declining power of
traditional advertising and promotion, and of traditional media
Maximising Value through Customer Management
Advertising is expensive!Advertising is expensive!“I know that only
50% of all advertising
works. I wish I knew which
50%”
But that was then… now 14%Maximising Value through Customer Management
Twin-Sumers
• R & D and market research• Product & service development, and launch• Advertising and promotion• Getting new customers on board
Customer loyalty is extremely profitable
Year0 1 2 3 4 5
Cust
omer
Pro
fit
Acquisition Costs
Base ProfitBase ProfitMarketing Cost ↓Marketing Cost ↓Cost to Serve ↓Increased SalesIncreased SalesReferralsPrice Premium
But benefits also accrue from…
Why should you care?•Lifetime value of loyalty
• “Profitability” of company
•Customer reaction and response to us
• “Marketing” and communication costs
•Word of mouth & public reputation
•Tolerance & forgiveness
•Effect on “competitors
•Company security and your job stability
•Financial reward and other recognition
•Pleasant work environment & morale; better work relationships
•Growth opportunity & career advancement
•Sense of pride
Maximising Value through Customer Management
“Be very afraid of our customers,
because they are the folk that have
the money.
Our competitors are never going to send us money”
organisation?
Let’s Talk About
Customer Loyalty
What is a customer?• Anyone who is affected or impacted or
influenced by our efforts, or anyone that we pass our work onto…
• Anywhere…• Whether they pay us or not…• And who can affect our future in a
positive or negative way
Customer Loyalty
Behaviour
Customer Loyalty
Behaviour
Low
High
Customer Satisfaction Perceptions
Customer Satisfaction Perceptions
Low High
What is customer service?
“Taking action to create value for someone else”
How do we make ourselves indispensable?
How do we make ourselves indispensable?
By giving them irresistible experiences…
By giving them irresistible experiences…
And thereby making competitors irrelevant!
And thereby making competitors irrelevant!
Offensive Marketing: Chasing chickens Offensive Marketing: Chasing chickens
• Is the barrel full?
• What do they do for us?
• Why do they “leak” out?
Thus, once they are inside we need to defend! The key question should be: “Why
should they stay?”
Thus, once they are inside we need to defend! The key question should be: “Why
should they stay?”
1%
3%5%
9%14%
68%
Five Key Objectives of Any Strategy…
•Identify and find•Identify and find
•Win (& win back)•Win (& win back)
•Retain: but happy•Retain: but happy
•Grow•Grow
•Reduce cost to serve•Reduce cost to serve
Maximising Value through Customer Management
Most resources spent here. Why?
Real success lies here!
“Smooth” Touchpoints: Get the basics incredibly right. Kill “dumb contacts” (3)
High barriers to switching
Continuous value
innovation
Put Relation-ships First
Sustainable Customer Loyalty
If you cannot be distinct, then you’re going to be
extinct
Be interesting, or be invisible
If you cannot be distinct, then you’re going to be
extinct
Be interesting, or be invisible
What do you want when you spend your money?
Service
ImagePeople
ProductProduct
Maximising Value through Customer Management
The Customer Experience Model
Product: Must Work
ServiceService
ExperienceExperience
Delivery SystemDelivery System
Dimensions of Service QualityGetting the Basics Right
• Reliability: Consistency of performance and dependability. The company performs its work right first time, and honours its promises
• Responsiveness: The willingness or readiness of staff to provide service, (rather than apathy). It also involves timeliness and a sense of urgency. It’s about short queues and no delays
• Competence: The possession of the required skills and knowledge to do the job and perform the service
• Access: Approachability and ease of contact, both by telephone, and in a “live” face-to-face situation. We can include things like hours of business and convenient location in this category
• Courtesy: Politeness, respect, consideration, friendliness, warmth, and even love from staff who deal with customers
• Understanding the Customer: Knowing customer’s specific needs & requirements, & who they are. Examples: individual attention and recognising them
• Communication: Keeping people informed always. Especially true if something goes wrong, (reassure customer that problems will be handled.) Includes explanations, training & clarity about prices/costs. Half communication is about listening
Dimensions of Service QualityGetting the Basics Right
• Credibility: Trustworthiness, believability, honesty, ethics and integrity are all important here. It’s about having the customer’s best interests at heart. Your name, brands and reputation contribute to this, but so do the personal characteristics of the people who work there
• Security: Freedom from risk, danger, doubt, and/or worry. Whether customers feel comfortable doing business with you. Includes elements of physical safety, financial security, & confidentiality.
• Tangibles: The physical evidence which impacts on the customer: appearance of staff, the physical facilities, the tools and equipment, even other customers. Anything that affects or attacks any of the five senses is important here. (Customers use physical representations of the company as symbols of the quality of products and service.)
Dimensions of Service QualityGetting the Basics Right
ActivityActivity
Who are my customers? Which Moments of Truth do
they experience?Complete the Moments of Truth
Impact Analysis
Who are my customers? Which Moments of Truth do
they experience?Complete the Moments of Truth
Impact Analysis
1. What are ten examples of your customers’ basic standard expectations?
2. Ten examples of things that make them unhappy
3. Ten examples of things that currently delight them, or could delight them in future
1. What are ten examples of your customers’ basic standard expectations?
2. Ten examples of things that make them unhappy
3. Ten examples of things that currently delight them, or could delight them in future
Once you have defined who are your customers, and listed some moments of truth…
Creating the “perfect customer experience” begins with making it easy to do business
with your company
Customer Effort Defined
The physical
mental/intellectual
emotional, and
time energy or effort
needed to do something
The Pillar ATMThe Pillar ATM
Mapping the Customer Journey
Touch Points in Time Sequence
Cust
omer
Effo
rt Sc
ore
Location
Check In
Car Park
Lounges
Security
Shopping*
Signs
Hurry up and Wait*
Maximising Value through Customer Management
Home Check In
Aircraft seating
BoardingGate seating
Toilets
Gate seating
ToiletsAircraft seating
LocationCar Park
Home Check In Lounges
No need to wait*
Signs
Shopping*
Security
Boarding
“I hate this! Why do I keep doing it?
“Aaaah! If only I could do this always”
Customer Journey Map
Touch Points in Time Sequence
A separate graph for each of physical, cognitive, emotional and time-effort1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
How
easy
(1) o
r diff
icult
(10)
is it
?
10
0
5
= Action possible
Identify customer thoughts and feelings for each important one
Activity
