Measuring the customer experience
and increasing customer loyalty, customer retention
and customer acquisition in the process
Fredrik Abildtrup
CEO @ TeleFaction A/S
The Return on Behavior Company

About TeleFaction - What do we do?
• TeleFaction is a global ―Voice of the Customer‖
Company offering real-time customized closed loop
feedback methodologies.
• Our core service is Return on Behavior®, a results-
driven solution which translates objective customer
data into actionable insights. 2
• These insights provide specific action points for
management and individuals to secure revenue,
retain customers and increase loyalty.

About TeleFaction - Offerings
• Measurements on customer experiences
– on telephone
– email, web,
– letters
– and postal surveys
• Coaching support 3
– Voice Coaching
– Individual reporting
• Knowledge web repository
– to gather and present reports and recordings
– provide actionable data
– best practices and industry benchmark
– Closed loop feedback management

Contact details
• Fredrik Abildtrup
• fab@telefaction.com
• Web site
• www.telefaction.com
4
• Inspirational online magazine
• www.returnonbehaviormagazine.com /.de

Measuring the customer experience
and increasing customer loyalty, customer retention
and customer acquisition in the process

Topics
• Why manage experiences?
• CEM vs CRM
• Measuring and how to be successful
6

Why manage experiences?

It is though out there!
58% say it is harder to make a reasonable profit, compared to 5 years ago
Maturing
Markets
8
The Global
Ourselves
Internet Trade
Supply
Chain
Efficiencies

How to remain successful
• Staying on top is not easy
– I.e. Mercedes
• Difficult to hide
– I.e. Blogs, websites
• Shopper help each other
– I.e. consumerist.com
9
• That also count for small businesses
– I.e. reviews by amateurs, ratings etc.

Your customers today are ...
...more critical and less loyal
• Customers today have:
– Less time
– Zero tolerance for waiting time og lack of empowerment
– More choices than ever before
–
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More buying power
– High expectations and no patience
– No problems changing vendors/supplier

The voice of the customer
– why is this important?
A big survey, In Customers Are People, shows, that 70 procent of
the customers buying decision are based on how they feel they are
being treated.
Another survey shows, that 69% of the customers say, that
emotions count for more than half of the total buying experience
A survey conducted in Denmark, where the customers were asked if they
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would change supplier if they had a bad customer experience, showed,
that
• 32% would change immidiately,
• 67% would change if it happened again, and only
• 1% would not change
• A good customer experience are told to 8 others
• A bad customer experience are told to 22 others
• It takes 10 good experiences to make up for one bad

On which channels?
• 92% of all customer interactions happen via the
phone (Gartner)
– 80 -90% transactions completed
– 84% view Speech as equal to, or better than Web
• 85% of consumers are dissatisfied with their phone
experience (Gartner) 12
• Around 90% of unhappy customers will not buy again
from a company that disappointed them
• 68% of customers will switch brands based on a poor
service experience (Gartner)

Be distinct or be extinct
Operational
Excellence
13
Product
Leadership
Customer
Experience
Idea sourced from Tom Peters

Interactions drives loyalty
Lowest price or
cost of ownership
Superior products or
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services
High-quality interactions
with people and systems
Percent High Importance

Customer Customer
Experience vs. Relationship
Management Management

CRM to CEM
• The right brained approach to Customer Management
CEM
CRM
Left Brain Right Brain
Enterprise’s
Customers
value to value to
Enterprise customer 16
Systems and People and
Transactions Transactions
Functional Emotional
Value Value

Build or destroy profits!!!
• Memorable experiences can lead to customer actions
that build—or destroy—profits
Recommended to a friend or colleague
Pleased
Comfortable Praised a company representative
Appreciated
Purchased more products/services
Important
Special 17
Continued relationship about the same
Complained to a friend or colleague
Frustrated
Let Down Complained to a company representative
Angry
Ignored Switched to new supplier/provider
Confused
Purchased less products/services

Customer Experience Management…
…is or should be the execution of a customer centric business strategy
Customer Centric
Give customers what
they want
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Business Strategy
Make money and
beat the competition

Enterprise managers wear rose-colored
glasses
• Survey:
– Companies Provide an Excellent Customer experience?
19
Net Agreement: Customer +4, Enterprises +34

How to be successful

To get success – be SMART
Strategy for customer value
Metrics to steer
Alignment of people
21
Redesign of experiences
Technology to optimize

Customer Value…
• Companies see customer relationship value this way
Profit
Sales
22
Strategic fit
Lifetime value

Customer Value…
• Customers see the value differently
Empowered Employees
High-Quality
23
Rewards for loyalty
Honest communication

Metrics – The steering wheel
• Customer focus are visulized through the results of
the measurements
– The customer says that...
– The customer experienced that...
• Translate what you mean with customer satisfaction
• Operationalize your vision through measurements 24
– And rememeber you get what you measure!!!
• Primary areas to create instant results
– Customer Satisfaction
– Cross sales/Up sales
– Operationalization of strategies and values
– Retention of customers

People are the drivers
• The Top 5 attributes of companies that deliver
‖Constantly Excellent Customer Experiences‖
The key ingredient: People!
– Well-trained and Helpful Employees 25
– Excellent Customer Service
– High-Quality Goods and Services
– Friendly and Caring Employees
– Personal Attention, Reward for Loyalty
Source: Bob Thompson, CustomerThink Corp.

Redesign Experience
• Customer experiences as parameter for success
– Every contact with the company gives the customer a
chance to evaluate if the experience have been bad / neutral
/ good
– Over time these customer experiences will make a lasting 26
impression of the company’s values or the company as a
brand
– Act on the feedback of your customers experiences and reap
the benefits of satiesfied customers

Use technology to optimize experiences
• Assess the quality of customer experiences with
telephone, online and contact center monitoring and
measurement systems
• Optimize marketing with analysis and campaign
management systems to deliver relevant offers
• Treat customers as individuals and reward their
loyalty 27
• Provide tools to help employees be helpful and
responsive, including sales coaching and support
knowledge bases

Poll
• Do you have a feed-back management process in
place for Customer Satisfaction?
– We are discussing it
– Yes we have
– Yes we have – it is IT supported
– No
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Some words on how to do that!

Obtaining info on customer needs
• Surveys
– Completely Automated Telephone surveys
– Mail
– E-mail
– Live Interview
• Focus Groups
• Customer Observation 30
• Market Research
• Customer Complaints
• Call Monitoring
The KEY?
It is never ending

Taking Quality to the Next Level
• You need to have customers evaluate the service
delivery immediately after the interaction
• ...the best solution is real-time customer feedback.
– Eliminate the gap between service and evaluation
– Too late to recover poor interactions
– Enhances believability of results 31
• 50 to 75% less expensive than follow up telephone
interviews allowing for continual measurement

Taking Quality to the Next Level
• Respond to questions using telephone keypad or
voice
• Verbatims: capture caller suggestions for
improvement
– Verbatim comments
– In the customer’s own words (capture the emotion)
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• Identify and highlight employees that delight
customers

Taking Quality to the Next Level
• Receive alert of a dissatisfied caller!
– Pro-actively prevent market damage
– Service Recovery Opportunities
– Detect Process and Procedure that are flawed
• Frequent reporting of customer feedback
– Daily, Monthly or quarterly, Fact analysis
– Annual summary presentation 33
– Benchmark scores with others
– Frequency to meet management’s needs

Return on Behavior
High Monitoring scores
≠
Customer Satisfaction
• Service quality is not about internal compliance – 34
It is about satisfying your customer
• It is the change in behavior that gives pay-off in terms
of customer experiences