Going Executive with an Actionable Voice of the Customer


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Contact center executives are well positioned to gain a seat at the C-level table by becoming the focal point for the voice of the customer (VOC) and providing actionable guidance on driving the customer experience. In this enlightening session, discover how to create or evaluate an existing VOC process for the contact center. Hear case studies that show how others have gained broad organizational support and quantified valuable benefits.

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Going Executive with an Actionable Voice of the Customer

  1. 1. Going Executive with anActionable Voice of the CustomerService & Support Professionals:ICMI Contact Center EssentialsJohn GoodmanVice Chairman, TARP Worldwide
  2. 2. Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995:This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any suchuncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differmaterially from the results expressed or implied by the forward-looking statements we make. All statements other thanstatements of historical fact could be deemed forward-looking, including any projections of product or service availability,subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans ofmanagement for future operations, statements of belief, any statements concerning new, planned, or upgraded servicesor technology developments and customer contracts or use of our services.The risks and uncertainties referred to above include – but are not limited to – risks associated with developing anddelivering new functionality for our service, new products and services, our new business model, our past operatinglosses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breachof our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergersand acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand,retain, and motivate our employees and manage our growth, new releases of our service and successful customerdeployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprisecustomers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is includedin our annual report on Form 10-Q for the most recent fiscal quarter ended July 31, 2011. This documents and otherscontaining important disclosures are available on the SEC Filings section of the Investor Information section of our Website.Any unreleased services or features referenced in this or other presentations, press releases or public statements are notcurrently available and may not be delivered on time or at all. Customers who purchase our services should make thepurchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation anddoes not intend to update these forward-looking statements.
  3. 3. Agenda  The Opportunity: VOC leads to CE management  Drawbacks limiting actionability of VOC process  Eight factors leading to an effective VOC  Critical data sources which must be included  Collecting and integrating data  Quantifying the economic impact of service to gain support from nine other departments  Out-of-the-box actions; delivering Psychic Pizza
  4. 4. About TARP Founded in 1971—40 years of customer experience leadership – White House Service Studies (instigated 800#s & 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) Credited with developing the approach for quantifying the impact of quality on revenue, cost & WOM for companies like Toyota/Lexus, Apple, IBM, HP, 3M, USAA, American Express, Qualcomm, Museum of Modern Art, Allstate, AARP, FedEx, Neiman Marcus, Hyundai, US Green Building Council & Chick-Fil-A.
  5. 5. Context of VOC Within the Customer Experience DOING EFFECTIVE MAXIMUM THE RIGHT CUSTOMER JOB RIGHT THE + CONTACT = CUSTOMER SATISFACTION MANAGEMENT & LOYALTY FIRST TIME Respond to Customers will: Individual Customers Use again Improved Identify Sources Buy other of DissatisfactionProduct & Service products Quality Conduct Root Tell others to buy Cause Analysis Feedback on Prevention
  6. 6. Firefighting Mode
  7. 7. Building an Effective VOC: Six Big Ideas FromStrategic Customer Service1. Staff doesn’t cause most customer dissatisfaction – sales, products, processes and customers do2. It is cheaper to give great service than just good service, the revenue payoff is 10-20X the cost3. An effective Voice of the Customer includes all kinds of data describing the overall customer experience4. People are still paramount – make the front line successful with flexibility and clear explanations5. Deliver technology that customers will enjoy – delivering psychic pizza via any channel6. Sensibly create remarkable delight
  8. 8. Why Most VOC Processes Lack Impact and AreCost Inefficient No unified picture of the customer experience – Depend on survey data which is a lagging indicator – Unstructured data not systematically included – Contact and internal data doesn’t tie to survey Does not estimate revenue damage by granular issue – No action without economic imperative – Broad indices are not actionable and cause frustration Doesn’t focus on root causes and why answers didn’t work Improvement must often be monitored with another survey
  9. 9. Departments with Interest in Your Unit’s Impact1. Marketing – retention and word of mouth and “word of mouse”2. Finance – margin and cost reduction3. Brand – brand-aligned service stories4. Quality – reduced customer error and innovative fixes5. Channel partner management – less channel hassles6. Risk – reduced claims7. Legal and Regulatory – better service reduces visibility8. HR – less problems leads to happier front line and lower turnover9. Product development/market research – ideas and panels
  10. 10. Moving Beyond Being “Just the Call Center orCustomer Insights Department”  Create an integrated Voice of the Customer  Create alliances and act as a consultant – Marketing, brand management and PR – Risk, regulatory relations – Operations, distribution  Do the dirty work and the pilot testing  Let other departments get the credit
  11. 11. Eight Factors for an Effective Voice of the Customer Process 8. Process supported by company-wide incentives 5. Clear 6. Formal 7. Formal revenue processes for systems for and profit translating data tracking impact implications into actions and targets 1. Well-defined 2. Unified data 4. Visible, 3. Integration of ownership of collection granular, multiple data actionable process and across whole sources issues lifecycle reporting
  12. 12. Collecting Data On Cause Of Dissatisfaction The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes* Customer expectations Customer Employee must be set and they must 20%-30% 20% be educated on how - Wrong expectations- Fails to follow -Fails to follow to avoid problems - Customer error policy and surprises. policy -Attitude At least 30% Company 40%-60% Poorly designed products, of contacts are preventable - Products and services Processes, and marketing don’t meet expectations create most unmet - Marketing miscommunication expectations. Further, - Broken processes employees are often not equipped with effective*Finding based upon TARP analysis problem cause responses to problems.data in over 200 consumer and B2B environments.
  13. 13. Key Factors Driving Satisfaction No Unpleasant Surprises If Customer Has to Contact – Accessibility – NOT ASA, broad hours via all channels, accent can make strong first impression – Taking ownership, Apology – Clear, believable explanation, treated fairly – Best estimate – reduced uncertainty – Emotional connection – Money is often not the best solution – Timeliness and Keeping promises
  14. 14. Creating A Data Foundation for The VOC  Customer surveys  Customer contact, social media, communities and interaction data: coded and unstructured –why it happened  Internal operations process and quality measures  Employee input – second source of why Surveys of Customer customer + + = Total view of the contact and Internal customersatisfaction and interaction data process and loyalty experience quality data and employee input Take The Role Of Chief Customer Officer 15
  15. 15. Use The Full Range Of Data Available  Operations data  Coded contact data  Unstructured data  Survey data  Social media  Employee input  Multiple levels and types of customers
  16. 16. The Challenge of Using Multiple Data Sources(Health Insurance Example) Status call or email 1 2 3 4 5 6 7 8 9 Weeks
  17. 17. Unifying Sources into a Single Picture  Understand how representative the source is of the marketplace  Understand how to extrapolate to the marketplace as a whole  Classify in a manner compatible with other sources  Key question is how many customers have encountered a particular issue. Analysis by granular type of issue
  18. 18. TARP’s Enhanced Tip Of the Iceberg With Social MediaVOC mustextrapolatecomplaints to themarket placeEach touch pointgives a separateestimateRatio ofcomplaints toproblems is “themultiplier”,usually 1:20-1:200
  19. 19. Estimating Number of Customers and MarketImpact from Contacts to Different Touch Points* 2% to flight attendant 0.8% to consumer affairs/ 100 customers relationsAirline customers 7% to supervisor on site encountering a 5% to social media rude gate agent 0.2% to executive by e-mail 1% to frequent flyer 800# 4% to reservations 800# 1% airline web site 3.5% Other * Data obtained via survey of random sample of customers on problem experience and touch point contacted, if any.
  20. 20. Integrating Touch Point Data (Airline Example) Total Problem Estimated Best Estimate Source Reports Multiplier Instances # Instances Web Site 6 100 600 Social Media & 20 20 400 Unstructured Data Reservations 14 25 350 555 Executive Complaint 2 500 1,000 Consumer Affairs 4 120 480 Survey 0.5% 100,000 500 # Customers Damage to Value of Monthly Revenue in Month Loyalty Customer Impact 555 x .25 x $2,000 = $277,500
  21. 21. Converting Instances Into Revenue and ROIImplicationsDemonstrating financial impact with the CFO and CMO x x 50% x Most = 2,000 Satisfied Repurchasing 25% 30% Some Not 6,000 Complain Mollified Repurchasing = 200,000 Customers 20% Many Not with Dissatisfied Repurchasing = 9,000 Problems 75% Do Not Some Not Complain Repurchasing = 37,500 Total Customers At Risk = 54,500 If customer worth $1,000, $54,500,000 at risk Three strategies: Prevention, Solicitation of Complaints and Improved Response Analysis should be done overall and by specific point of pain
  22. 22. Show The CMO That Negative Word Of MouthCan Trump Marketing Example calculation of potential impact 10% Tell two = 2,000 delighted 10,000 customers 70% Tell one = 7,000 satisfied 20% Tell = -12,000 dissatisfied six -3,000 20% dissatisfaction can counter 80% satisfaction
  23. 23. Great Service Is A Word of MouthManagement Mechanism Example calculation of potential impact 10% Tell two = 2,000 delighted 10,000 customers 80% Tell one = 8,000 satisfied Tell = -6,000 10% dissatisfied six 4,000 10% decrease in dissatisfaction results in net positive WOM BrandWeek: Use customers’ word of mouth as primary marketing mechanism
  24. 24. Create the Economic Imperative for ActionQuantifies the cost of inaction to precipitate action Experience Delight Contact Business Impact handling Customer Loyalty WOM Value/Yr. Delighted 98% 3.6 $162 No Problem Satisfied 88% 1.0 $100 Experience Satisfied 80% 1.0 $107 Contact behavior Category Complained Mollified 58% 3.0 $85 Customers Consumers Dissatisfied 18% 6.0 $34 Problem Did Not 55% 2.0 $63 Experience Complain What are the Why are How can we What is the ROI on issues? they not improve addressing specific Where are the contacting response / issues? you? recovery? issues? issues? See article: Setting priorities using market damage by point of pain
  25. 25. Root Cause Analysis is DifferentThan Analysis of Reason For Call! Cause is expectation, customer, process, product and response as well as staff Speech Analytics can assist with the analysis of cause and response effectiveness – Larger numbers of cases – What words works best and worst – Nuances that hard data will never pick up Appliance company example
  26. 26. Understanding the Cause Allows Broadening the Range of Solutions Welcome kits, calls and emails Enhance response with flexible empowerment and explanations Create efficient emotional connection Use technology to deliver psychic pizza – JIT education – utility visit – Anticipates - Continental – Simplifies - esurance Delight sensibly – during slow service periods
  27. 27. Summary Create a unified VOC to identify opportunities with payoff Understand the full range of root causes using speech analytics Quantify the revenue and word of mouth impact overall and by granular issue Prevent workload by proactively educating, connect, explain and deliver psychic pizza Take control of the VOC and then become the Chief Customer Officer Outlined in detail in Strategic Customer Service published by AMACOM For care package of articles: jgoodman@tarp.com or 703-284-9253
  28. 28. Questions & Answers John Goodman jgoodman@tarp.com 703-284-9253 ICMI Information - icmi.com facebook.com/callcentericmi, @callcentericmi
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