Customer service
strategy & CES as a
metric to measure
loyalty
How often does companies patronize a company
specifically because of its over-the-top service?

How often do consumers cut ...
Companies punish bad service
more than they reward delightful
service.
3 year period
75,000 B2C and B2B customers
Dozens of industries
North America
Europe
South Africa
Australia
New Zealand
According to
conventional wisdom,
customers are more
loyal to firms that go
above and beyond.
Exceeding customers’
expectations during service
interactions makes customers
only marginally more loyal than
simply meeti...
89% of Customer service managers say that their main
strategy is to exceed expectations.
84% of customers say
their expectations had
not been exceeded during
their most recent
interaction.
“There is only little relationship
between satisfaction and loyalty.”
Fred Reichheld
20% of the satisfied
customers say they
intent to leave the
company.

28% of the dissatisfied
customers intent to
stay.
Loyalty
vice
Ser

Product
quality

Brand

Disloyalty

Service
We buy from a company
because it delivers quality
products, great value, or a
compelling brand.

We leave one,
because it ...
Hoeveel moeite heeft het jou als
klant gekost om iets voor elkaar
te krijgen?
Op de
schaal van
1 tot 5
CES
Customer loyalty
Customers’ intention to:
- Keep doing business with the company
- Increase the amount they spend
Low Effort

High Effort

94% of the customers who report
low effort have an intention to
repurchase
88% would increase the...
Net Promotor Score
In welke mate zou je mijn bedrijf aanbevelen binnen jouw netwerk?
London School of Economics 2005
CES

Captures customer
expressions at the
transaction level

NPS

Captures more-holistic
impressions of a
company
Implications
•

Customer Effort Score question can be asked only if a customer has actually
contacted the company after a ...
9.732 customer responses
102 service companies
19 industries
Implications
•
•

Customer Effort Score question can be asked only if a customer has actually
contacted the company after ...
- What are the various customer service touchpoints? 
- What effort does the customer encounter as part of the touchpoint?...
?
1. Don’t just resolve the current issue - head off the
next one
2. Arm reps to address the emotional side of customer
interactions
3. Minimize channel switching by increasing self-service
channel “stickiness”
4. Use feedback from disgruntled or struggling
customers to reduce customer effort
5. Empower the front line to deliver a low-effort
experience
Is CES the right metric?
- The number of CES best practices is growing.
- Simplicity is nice, but too simple is dangerous....
“78% of all our perceptions are wrong”
Albert Einstein
http://www.businessmonitor.nl/businessmetrics
Thank You!
KATHERINE KUCHERENKO
Online Business Strategist
drs.

katherine@icons.nl
@katherinekucher
06 423 923 66
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
Customer service strategy with ces
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Customer service strategy with ces

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Presentatie tijdens de relatiedag van Cendris over Klantenservice strategie met Customer Effort Score als KPI.

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Transcript of "Customer service strategy with ces"

  1. 1. Customer service strategy & CES as a metric to measure loyalty
  2. 2. How often does companies patronize a company specifically because of its over-the-top service? How often do consumers cut companies loose because of terrible service?
  3. 3. Companies punish bad service more than they reward delightful service.
  4. 4. 3 year period 75,000 B2C and B2B customers Dozens of industries North America Europe South Africa Australia New Zealand
  5. 5. According to conventional wisdom, customers are more loyal to firms that go above and beyond.
  6. 6. Exceeding customers’ expectations during service interactions makes customers only marginally more loyal than simply meeting their needs.
  7. 7. 89% of Customer service managers say that their main strategy is to exceed expectations.
  8. 8. 84% of customers say their expectations had not been exceeded during their most recent interaction.
  9. 9. “There is only little relationship between satisfaction and loyalty.” Fred Reichheld
  10. 10. 20% of the satisfied customers say they intent to leave the company. 28% of the dissatisfied customers intent to stay.
  11. 11. Loyalty vice Ser Product quality Brand Disloyalty Service
  12. 12. We buy from a company because it delivers quality products, great value, or a compelling brand. We leave one, because it fails to deliver on customer service.
  13. 13. Hoeveel moeite heeft het jou als klant gekost om iets voor elkaar te krijgen? Op de schaal van 1 tot 5
  14. 14. CES
  15. 15. Customer loyalty Customers’ intention to: - Keep doing business with the company - Increase the amount they spend
  16. 16. Low Effort High Effort 94% of the customers who report low effort have an intention to repurchase 88% would increase their spending 1% would speak negatively about the company 81% would spread negative word-of-mouth
  17. 17. Net Promotor Score In welke mate zou je mijn bedrijf aanbevelen binnen jouw netwerk?
  18. 18. London School of Economics 2005
  19. 19. CES Captures customer expressions at the transaction level NPS Captures more-holistic impressions of a company
  20. 20. Implications • Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason.
  21. 21. 9.732 customer responses 102 service companies 19 industries
  22. 22. Implications • • Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason. Asking the CES question is a good predictor of the impact of the service experience on customer loyalty, but it won't tell you what to do about it.
  23. 23. - What are the various customer service touchpoints?  - What effort does the customer encounter as part of the touchpoint?  - What are your customer interaction systems and processes like?
  24. 24. ?
  25. 25. 1. Don’t just resolve the current issue - head off the next one
  26. 26. 2. Arm reps to address the emotional side of customer interactions
  27. 27. 3. Minimize channel switching by increasing self-service channel “stickiness”
  28. 28. 4. Use feedback from disgruntled or struggling customers to reduce customer effort
  29. 29. 5. Empower the front line to deliver a low-effort experience
  30. 30. Is CES the right metric? - The number of CES best practices is growing. - Simplicity is nice, but too simple is dangerous. - Only for measuring transactional / situational loyalty. It’s not a absolute loyalty metric. - Relative performance over time, unique to a single firm. - If you combine the metrics in order to predict loyalty, the predictive power is higher than only using NPS and CSAT alone.
  31. 31. “78% of all our perceptions are wrong” Albert Einstein
  32. 32. http://www.businessmonitor.nl/businessmetrics
  33. 33. Thank You!
  34. 34. KATHERINE KUCHERENKO Online Business Strategist drs. katherine@icons.nl @katherinekucher 06 423 923 66
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