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Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction
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Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction


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Customers are unpredictable. And sometimes customer situations arise that you simply can't anticipate in advance. When this happens, are your employees willing and able to resolve the issues? And what …

Customers are unpredictable. And sometimes customer situations arise that you simply can't anticipate in advance. When this happens, are your employees willing and able to resolve the issues? And what can your company do to optimize those interactions?

In the webinar, “Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences With Every Interaction.” Peppers & Rogers Group Founding Partner Don Peppers and President Ron Wince discuss how to bring innovative customer interaction strategies and optimal process design together to build customer value with every interaction.

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  • Hello! Welcome to the Customer Strategist webinar: “Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction.” I’m Liz Glagowski, editor-in-chief of the Customer Strategist journal, and I will be moderating today’s event.
  • I am joined today by Don Peppers and Ron Wince of Peppers & Rogers Group, a TeleTech company. Don is a founding partner of Peppers & Rogers Group, and is recognized as one of the leading authorities on customer-focused management strategy. Ron Wince is PRG’s president and general manager. He leads the company’s expanded offerings around process innovation, technology, and operational improvements. Welcome gentlemen.
  • Before we begin, let’s quickly review the On24 interface.For a PDF copy of today’s slides click the green resources widget at the bottom center of your screen. We also have another PDF download available, which we will detail later in the presentation.  We also encourage you to submit questions at any time during the event. Just click the red ‘Q&A’ widget, type your question, and hit submit. We made time for a Q&A section at the end of the webinar to answer any questions you have. Your questions will be discussed anonymously. We will also have a brief survey for you at the end of the program.If you run into any issues, our technical team is on hand to answer any technical questions you may have. Click the gold “Help” widget to check FAQs, or you can contact the team. Additionally, contact information for Don and the PRG team will posted at the end of our event. And since this is a Customer Strategist journal event, there is a link to the online version of the journal in the pink globe widget for you to check out articles and register for a free quarterly subscription.You’ll also notice that we have a hashtag -- #customerstrategy. I will be live tweeting from the @peppersrogers group, and I encourage you to tweet and share your webinar experience using the hashtag, as well.Ok, let’s move on to today’s agenda…
  • Today’s presentation will focus on 4 types of customer interactions that companies can plan for. Don and Ron will drill down into the strategies and tactics needed to succeed for each interaction category. We will then examine the role that technology plays in enabling and advancing customer-company interactions, as well as what it means for competition. During the event there will be a poll question for you to answer, and we have set aside some time at the end for an interactive Q&A, so please feel free to submit your questions at any point during the presentation.
  • So, I will hand it over to Don to begin.
  • Don: will go through the points shown on the slide, then…Ron: The volume of these are high but they are also declining over time as customers are expecting a more individualized experience
  • Tactic: Enable self-serviceCustomers can make their own decisions and feel a sense of “accomplishment” when they solve their own problem. Benefit: Consumer trust, cost effectiveness and reliabilityRisk: Not doing it. Customers will deselect if interaction is poorRon: a few comments here:The tactic we tell customers to follow in this segment is to quickly get to a low touch/self-service environment as quickly as possible. I allows for a customer to feel they are getting an individual experience because they are making their own decisions and feel a sense of “accomplishment” when they solve their own problem. Done correctly this can earn a company a high level of trust while also allowing for cost effectiveness and reliabilityThe flip-side of this is the risk associated with doing it wrong – get this wrong and customers will deselect
  • Intuit Product is kept up to date with constant feedback from customers Individual customer data is used to render more personalized product for each Intuit won a Gold CRM Excellence Award for 2013LinkedIn/FacebookThey thrive on self-service Community organically creates and enhances the interaction LinkedIn: 200 million members Facebook: 1 billion+ active membersAmazon and Dell Engaged customers to redesign their websites for direct to consumer interactions Simple, automated processes with customer in mindRON: Amazon is a great example to use here as is Dell who has engaged customers to redesign their website for direct to consumer. The best examples outside of commerce – which is what we discuss with our customers – are Linked In, Facebook, etc. They thrive on self-service and have grown exponentially.
  • RonThere are varying levels of complexity in this space. We would do a fair amount of segmenting the complexity of these interactions and trying to apply quadrant 1 techniques as appropriate. With each level of increasing complexity and variation you’ll need more human intervention.
  • Ron:What we often find is that companies aren’t very good at predicting these predictable events For instance, when you move, we should KNOW that you’re going to need certain kinds of services or products…One of the things we help clients with all the time is anticipating these kinds of high-engagement, predictable customer events, and helping them create great value for customers by doing so…
  • Ron – agree with this roadmap AND we would add some diagnostic around the variation and complexity in this space as we map the journeyWe would be able to create customer personas in this space
  • Ron: segmenting the complexity of these interactions and trying to apply quadrant 1 techniques as appropriate. With each level of increasing complexity and variation you’ll need more human intervention.Automate simple interactions based on segments Add human interaction for complex interactions Create customer personas
  • Ron: USAA is the best at this. They make predictable and unpredictable lifecycle events easy and seamless.
  • Infrequently asked questionsProduct attributes or usages unimportant to most customersIn the B2B catgegory, sales or account “administrative” details and record-keeping
  • Strategy: Data captureNeed a “collection mechanism” to capture instances of unanticipated interactionsStrategy: Develop guidelines Guidelines ensure that you delivering the most “frictionless” customer experience possible
  • Ron does this slide in its entiretyThis is where TeleTech leverages the social knowledge and social learning platform the best. Capture information about interactions from social media sources (Twitter, Facebook, blogs, customer and partner communities, etc.) Develop consistent responses based on common experiences
  • By making use of social/community technology tools they are able to capture information about these events and respective customers and then develop consistent responses.
  • Ron: This is where we would work in a client’s “social architecture”. The social architecture was in a Bennis book called “Leaders” and we’ve used it since to describe how you create the culture that leaders desire.Once you start with that sense of purpose you mention you need to work on the elements that make up the rest of the social architecture:Common language and terminology Valued behaviors – what are they and how can you recognize them?RecognitionTo reinforce this we talk about Cycles of Use – coaching of people to develop new habits that reinforce the social architecture; similar to some work from Noel Tichy and also from a book called “Talent is Overrated”DIRECTLY FROM BENNIS (added by DP):“A leader must be a social architect who understands the organization and shapes the way it works. The social architecture of any organization determines who says what to whom, about what, and what kinds of actions then ensue. It governs the way people act, the values and norms that are subtly transmitted to groups and individuals, and binding and bonding within a company. Social architecture provides context (or meaning) and commitment to its membership and stakeholders and presents a shared interpretation of organizational events, so that people know how they are expected to behave. It also generates a commitment to the primary organizational values and philosophy. Finally, an organization’s social architecture serves as a control mechanism, sanctioning or prescribing particular kinds of behavior. “
  • Ron to discuss
  • Machines can’t automate non-routine decisionsBut technology can extend and enhance the decision-makers’ own capabilities, by Reducing low-value transactional activities required of high-value employees Extending the breadth and impact of non-routine decisions Boosting quality, speed, scalability of decisions
  • Efficiency advantages from automating production and routine are easily matched Every automation advantage eventually pervades a whole industry sectorBut proficiency at non-routine decisions cannot be easily imitated by competitors More complex organizational models will slow the dissemination of performance improvements What is a “best practice” in judgment-based decision-making, anyway?
  • Thanks to Don Peppers and Ron Wince for sharing their expertise and knowledge in such an important area of business strategy. We have a few minutes left for Q&A. I see we have a few questions in the queue for our speakers. If we don’t get to everyone’s question, we will answer you via email. Before we begin the Q&A, I would like to remind you that you can download a PDF copy of today’s presentation by clicking the green resources link. In addition, there is a PDF reprint of Don Peppers’ original blog on the topic of customer interaction strategy for you as a thank-you for attending.And as I mentioned earlier, Peppers & Rogers Group has expanded its reach into the operational side to deliver a more holistic suite of customer strategy services. If you are interested in learning more, you can contact Don Peppers or Tom Schmalzl for follow-up. I will post their contact information as we begin the Q&A. So let’s get to your questions.
  • Transcript

    • 1. 1Prepare for theUnexpected:How to Deliver OutstandingCustomer Experiences withEvery Interaction#customerstrategy
    • 2. 2Today’s SpeakersElizabeth GlagowskiEditor-in-ChiefCustomer Strategist JournalDon PeppersFounding Partner,Peppers & Rogers GroupRon WincePresident & General ManagerPeppers & Rogers Group
    • 3. 3Event logisticsPlease turn off your pop-up blocker• You will not be able to participate in today’s surveyDownload a PDF of today’s slides• Click the green Resources iconHave a question for the presenters?• Click the red Q&A iconHelpful tools• Click the gold question mark for help with technical issues• Link to the Customer Strategist journal• Twitter Hash tag: #customerstrategy
    • 4. 4Agenda4 Types of Customer InteractionsThe Role of TechnologyImplications for CompetitionQ&A
    • 5. 54 Types ofCustomer Interactions
    • 6. 6Routine and non-routinemoments of truthConsumerEngagementProcess StandardizationHighLowLowHighBusiness asusualPredictablecustomerlifecycle eventsSurprises, trialsand tribulationsThreats to costefficiency1243
    • 7. 7Routine and non-routinemoments of truthBusiness asusualPredictablecustomerlifecycle eventsSurprises, trialsand tribulationsThreats to costefficiency1243ConsumerEngagementProcess StandardizationHighLowLowHigh
    • 8. 81. Business As UsualProviding productinformationSelling or servicing aproductCollecting orprocessing a paymentInteracting at thestore or point of saleInteracting online orin the call center
    • 9. 91. Business As Usual: StrategiesDo things right• Don’t makemistakes• Good intentionProductcompetence• Quality• Price• Features• ServiceCustomercompetence• Customerinsight• Interaction• Customization• Customer trust
    • 10. 101. Business As Usual: TacticsEnable self-service
    • 11. 111. Business as Usual: Examples
    • 12. 12Routine and non-routinemoments of truthBusiness asusualPredictablecustomerlifecycle eventsSurprises, trialsand tribulationsThreats to costefficiencyLow1243ConsumerEngagementProcess StandardizationHighLowLowHigh
    • 13. 132. Predictable Lifecycle EventsFirst invoice for anexpensive or complexproduct or serviceRelationship renewalor end (e.g., auto leaseor service subscription)Upgraded ordowngraded status in aloyalty program
    • 14. 142. Predictable Lifecycle Events:StrategiesCustomermapping• Map thecustomerjourney aroundthe potentiallifecycleStandardize• Scripts andtemplates togovernresponse tocommoninquiriesOnboarding• Implement newand returningcustomeronboardingprograms
    • 15. 152. Predictable Lifecycle Events: TacticsAdvancedsegmentation
    • 16. 162. Predictable Lifecycle Events:ExamplesUses customer datafrom both membersand non-members ofMileagePlusAirline deliverspersonalized andrelevantcommunicationsinvolving critical day-of-travel updatesConsolidatedmarketing, sales andservice into onegroup to betterunderstand completecustomer lifecycleIt makes predictableand unpredictablelifecycle events easyand seamless.
    • 17. 17Routine and non-routinemoments of truthProcess StandardizationHighLowHighBusiness asusualPredictablecustomerlifecycle eventsSurprises, trialsand tribulationsThreats to costefficiencyLow1243ConsumerEngagementProcess StandardizationHighLowLowHigh
    • 18. 183. Threats to Cost EfficiencyInfrequently askedquestionsUnpopular productattributes or usesAdministrative detailsand record-keeping
    • 19. 193. Threats to Cost Efficiency: StrategiesData capture• Collectionmechanism willcaptureunanticipatedinteractionsDevelopguidelines• Deliver africtionlesscustomerexperience
    • 20. 203. Threats to Cost Efficiency: TacticsSocial learning
    • 21. 213. Threats to Cost Efficiency: ExamplesCiscoBusiness customershave many differentuses for wide variety ofnetwork products• Cisco relies oncustomer communitiesto capture new anddifferent uses• Smart WebTechnology Group(SWTG) at Ciscoconstantly harvestscomments to improvesite
    • 22. 22Routine and non-routinemoments of truthConsumerEngagementProcess StandardizationLowProcess StandardizationHighLowBusiness asusualPredictablecustomerlifecycle eventsSurprises, trialsand tribulationsThreats to costefficiencyLow1243ConsumerEngagementProcess StandardizationHighLowLowHigh
    • 23. 234. Surprises, trials and tribulationsCustomer experiences amajor service issueDisaster or crisis causedby outside eventsSocial mediaconflagrationDisruptive initiative bya competitor
    • 24. 244. Surprises, trials and tribulations:StrategiesSelf-organizationYour employees need to beEngaged in their work andEnabled to accomplish their mission
    • 25. 25The most powerful motivations for “heuristic”work are not monetary: Autonomy of decision-making Support of a team or a cohesive group A purpose-driven profession or careerStrategy: Motivating high-valueemployeesA culture of customer trust provides the idealplatform for maximizing these motivations
    • 26. 26Engaging Your Company’s Employees:TacticsDefine internalsocial architecture• Sense of purpose• Common language• Valued behaviors• RecognitionCycles of use• Coach employees to develophabits that reinforce thesocial architecture• Evolve the social architectureas the company evolves
    • 27. 271. Confidence in the organization’s leaders2. Collaboration and collegiality3. Development opportunities4. Clear and promising sense of purposeHay Group sees fourrequirementsEngaging Your Company’s Employees
    • 28. 28Engaging Your Company’s Employees:Example
    • 29. 29The RoleOf Technology
    • 30. 30Technology can extend and enhancedecision-makers’ own capabilitiesTechnology can improve decisionsSource: McKinsey Quarterly 4, 2005
    • 31. 31Implicationsfor Competition
    • 32. 32Implications for competitionSource: McKinsey Quarterly 4, 2005The bottom line:Proficiency in non-routine decisionscannot be easilyimitated bycompetitors
    • 33. 33The world’s biggest companies are growing ata faster rate than smaller firms! Not just because of scale and marketdominanceGlobal firms combine tangible and intangibleassets across the whole enterprise Leveraging capabilities for non-routine decisions Mobilizing talent and knowledge across businessunitsThey create their own “network effect”Global companies definitely “get it”
    • 34. 34ExxonMobil thinks global, acts localTotal headquarters staff: 300 86,000 workers (down from100,000 in 5 years) 10 separate operatingcompanies, using three majorbrands – Exxon, Mobil, Esso Present in more than 150countries ExxonMobil’s sales are thesize of Taiwan’s economy
    • 35. 35Q&A SessionElizabeth GlagowskiEditor-in-ChiefCustomer Strategist JournalDon PeppersFounding Partner,Peppers & Rogers GroupRon WincePresident & General ManagerPeppers & Rogers Group
    • 36. 36Don PeppersFounding InTom SchmalzlDirector of Business