Key Pillars for Delivering Effortless Customer Service

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Check out these slides from our recent webinar with Rufino Chiong, MD from CEB, who shared some of the findings from CEB's research into the key pillars for delivering effortless customer service, as …

Check out these slides from our recent webinar with Rufino Chiong, MD from CEB, who shared some of the findings from CEB's research into the key pillars for delivering effortless customer service, as well as explaining how a company’s ability to deliver on basic promises and solve day-to-day problems drives customer loyalty.

To access the recording from the webinar, please go to: https://www.salesforce.com/uk/events/details/webinar-service-23-07-2014/?d=70130000000hbQa

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  • 1. Transform your Customer Service The Key Pillars for Delivering Effortless Customer Service in your organisation Rufino Chiong Managing Director, CEB
  • 2. The Effortless Experience Conquering the New Battleground for Customer Loyalty Rufino Chiong Managing Director, CEB
  • 3. © 2014 The Corporate Executive Board Company. All Rights Reserved. effortless-experience.com HAVE YOU SEEN THIS GIRAFFE?
  • 4. THE MOMENT OF “WOW” effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 5. THREE QUESTIONS THAT GUIDED OUR RESEARCH effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 6. THREE QUESTIONS THAT GUIDED OUR RESEARCH What impact DO customer service interactions have on a customer’s future loyalty? 1 effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 7. THREE QUESTIONS THAT GUIDED OUR RESEARCH What impact DO customer service interactions have on a customer’s future loyalty? 1 2 What are the things customer service can do to DRIVE loyalty? effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 8. THREE QUESTIONS THAT GUIDED OUR RESEARCH What impact DO customer service interactions have on a customer’s future loyalty? 1 What are the things customer service can do to DRIVE loyalty? 2 How can service improve loyalty while still REDUCING operating costs? 3 effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 9. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 10. WHAT IS LOYALTY? effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 11. WHAT IS LOYALTY? ■ Repurchase effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 12. WHAT IS LOYALTY? ■ Repurchase ■ Share of Wallet effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 13. WHAT IS LOYALTY? ■ Repurchase ■ Share of Wallet ■ Word of Mouth effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 14. WHAT IS LOYALTY? ■ Repurchase ■ Share of Wallet ■ Word of Mouth effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 15. OUR STUDY IN BRIEF effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 16. OUR STUDY IN BRIEF ■ 125,000+ customers effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 17. OUR STUDY IN BRIEF ■ 125,000+ customers ■ 5,000+ customer service reps effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 18. OUR STUDY IN BRIEF ■ 125,000+ customers ■ 5,000+ customer service reps ■ 100+ companies effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 19. OUR STUDY IN BRIEF ■ 125,000+ customers ■ 5,000+ customer service reps ■ 100+ companies 3 major findings effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 20. FINDING 1: DELIGHT DOESN’T PAY effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 21. FINDING 1: DELIGHT DOESN’T PAY Less Loyal More Loyal Below Customer Expectations Meets Customer Expectations Exceeds Customer Expectations effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 22. FINDING 1: DELIGHT DOESN’T PAY Less Loyal More Loyal Below Customer Expectations Meets Customer Expectations Exceeds Customer Expectations The Perception effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 23. FINDING 1: DELIGHT DOESN’T PAY Less Loyal More Loyal Below Customer Expectations Meets Customer Expectations Exceeds Customer Expectations The Perception The Reality effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 24. FINDING 1: DELIGHT DOESN’T PAY Less Loyal More Loyal Below Customer Expectations Meets Customer Expectations Exceeds Customer Expectations The Perception The Reality • “Delight” only happens 16% of the time effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 25. FINDING 1: DELIGHT DOESN’T PAY Less Loyal More Loyal Below Customer Expectations Meets Customer Expectations Exceeds Customer Expectations The Perception The Reality • “Delight” only happens 16% of the time • “Delight” increases operating costs 10-20% effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 26. PROMISES, PROMISES Source: Gneezy, A. and Epley N. (2014). Worth Keeping but Not Exceeding: Asymmetric Consequences of Breaking Versus Exceeding Promises. Social Psychological and Personality Science. May 8. 1-9. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 27. PROMISES, PROMISES When [companies, friends, or coworkers] expend extra effort in order to exceed promises, their effort appears likely to be overlooked.” Gneezy & Epley Source: Gneezy, A. and Epley N. (2014). Worth Keeping but Not Exceeding: Asymmetric Consequences of Breaking Versus Exceeding Promises. Social Psychological and Personality Science. May 8. 1-9. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 28. FINDING 2: SERVICE DRIVES DISLOYALTY effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 29. FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty 1.00x 3.97x More Loyal More Disloyal Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 30. 1.00x 3.97x Drivers of Disloyalty FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. More Loyal More Disloyal effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 31. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 32. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 33. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 34. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers ■ Repeating information FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 35. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers ■ Repeating information ■ Robotic service FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 36. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers ■ Repeating information ■ Robotic service ■ Policies and processes customers have to endure FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 37. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers ■ Repeating information ■ Robotic service ■ Policies and processes customers have to endure ■ “Hassle factor” FINDING 2: SERVICE DRIVES DISLOYALTY Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 38. 1.00x 3.97x More Loyal More Disloyal Drivers of Disloyalty ■ Repeat contacts ■ Channel switching ■ Transfers ■ Repeating information ■ Robotic service ■ Policies and processes customers have to endure ■ “Hassle factor” Customer Effort FINDING 3: MITIGATE DISLOYALTY BY REDUCING EFFORT Customer Service Impact on Loyalty Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 39. THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 40. THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE Low Effort High Effort Repurchase 94% 4% Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 41. THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE Low Effort High Effort 88% 4% Low Effort High Effort Repurchase 94% 4% Source: CEB analysis. Increased Spend/ Share of Wallet effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 42. THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE Low Effort High Effort 1% 81% Low Effort High Effort 88% 4% Low Effort High Effort Repurchase 94% 4% Source: CEB analysis. Increased Spend/ Share of Wallet Negative WOM effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 43. THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE Low Effort High Effort 1% 81% Low Effort High Effort 88% 4% Low Effort High Effort Repurchase 94% 4% Low-Effort Experience High-Effort Experience Overall Disloyalty 9% 96% Source: CEB analysis. Increased Spend/ Share of Wallet Negative WOM effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 44. THE FOUR PILLARS OF LOW-EFFORT SERVICE effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 45. THE FOUR PILLARS OF LOW-EFFORT SERVICE Channel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 46. THE FOUR PILLARS OF LOW-EFFORT SERVICE Next Issue AvoidanceChannel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 47. THE FOUR PILLARS OF LOW-EFFORT SERVICE Experience Engineering Next Issue AvoidanceChannel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 48. THE FOUR PILLARS OF LOW-EFFORT SERVICE Frontline ControlExperience Engineering Next Issue AvoidanceChannel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 49. THE FOUR PILLARS OF LOW-EFFORT SERVICE Frontline ControlExperience Engineering Next Issue AvoidanceChannel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 50. WHICH WOULD YOU RATHER USE? effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 51. YOUR CUSTOMERS DON’T WANT TO TALK TO YOU Company Perception Web Preference Phone Preference 1.0X 2.5X effortless-experience.com Source: CEB analysis. © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 52. YOUR CUSTOMERS DON’T WANT TO TALK TO YOU Company Perception Actual Customer Preference Web Preference Phone Preference ■ 3-5 years ago, 66% of customers primarily relied on the phone ■ Today, only 28% of customers report that they primarily rely on the phone Pattern largely holds across issue types and demographics 1.0X 2.5X 1.0X 1.0X Web Preference Phone Preference effortless-experience.com Source: CEB analysis. © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 53. First Contact Channel Phone Web 57.7% of phone callers first went to the company’s Website Source: CEB analysis. BUT THEY’RE STILL CALLING effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 54. First Contact Channel Concurrent Channel Usage Phone Web Phone Only Web and Phone 35.5% of phone callers were on the company’s Website while talking to a representative 57.7% of phone callers first went to the company’s Website Source: CEB analysis. BUT THEY’RE STILL CALLING effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 55. CUSTOMER CHOICE IS NOT THE ANSWER effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 56. CUSTOMER CHOICE IS NOT THE ANSWER 16% Value CHOICE Over Ease Source: CEB analysis. • Want issue resolved in their preferred channel • Prioritize channel choice above all else effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 57. CUSTOMER CHOICE IS NOT THE ANSWER 84% Value EASE Over Choice 16% Value CHOICE Over Ease Source: CEB analysis. • Want issue resolved in their preferred channel • Prioritize channel choice above all else • Want fast resolution without bouncing around channels • Prioritize low effort over channel choice effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 58. GUIDANCE IN ACTION: The Virtual Concierge Source: Amazon.com. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 59. I didn’t have time to write you a short letter…so, I wrote you a long one instead.” -Mark Twain effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 60. THE FOUR PILLARS OF LOW-EFFORT SERVICE Frontline ControlExperience Engineering Next Issue AvoidanceChannel Stickiness effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 61. THE WORST QUESTION A REP CAN ASK effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 62. “Have I fully resolved your issue today?” THE WORST QUESTION A REP CAN ASK Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 63. “Have I fully resolved your issue today?” THE WORST QUESTION A REP CAN ASK Companies think 76.7% of customer issues are resolved in one contact Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 64. “Have I fully resolved your issue today?” THE WORST QUESTION A REP CAN ASK Companies think 76.7% of customer issues are resolved in one contact But customers claim only 40% of their issues are resolved in one contact Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 65. WHY DO CUSTOMERS CALL BACK? effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 66. WHY DO CUSTOMERS CALL BACK? Drivers of Callbacks effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 67. WHY DO CUSTOMERS CALL BACK? Explicit Issues ■ Human error ■ System or process issues Drivers of Callbacks Source: CEB analysis. effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 68. WHY DO CUSTOMERS CALL BACK? Implicit IssuesExplicit Issues ■ Adjacent issues ■ Experience issues Drivers of Callbacks Source: CEB analysis. ■ Human error ■ System or process issues effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 69. WHY DO CUSTOMERS CALL BACK? Implicit IssuesExplicit Issues ■ Adjacent issues ■ Experience issues Drivers of Callbacks Source: CEB analysis. 54% 46% ■ Human error ■ System or process issues effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 70. ONE STEP AHEAD effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 71. 4% 67% THE CUSTOMER EFFORT SCORE 2.0 …and a way for service functions to positively impact Net Promoter Score® A great way for service functions to detect potential disloyalty… Strongly Disagree Disagree Somewhat Disagree Neither Agree Nor Disagree Somewhat Agree Agree Strongly Agree The company made it easy for me to handle my issue Overall Disloyalty Percent of Detractors High EffortLow EffortHigh EffortLow Effort Source: CEB analysis. 9% 96% effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 72. To get a copy of this presentation, email us at effortless@executiveboard.com To learn more about reducing customer effort, visit us online at effortless-experience.com @CEB_Effortless www.youtube.com/CEB The Effortless Experience from CEB © 2014 The Corporate Executive Board Company. All Rights Reserved.
  • 73. Want to find out more? • If you are already a Salesforce customer, then please speak to your AE for follow up • Or visit our Salesforce1 Service Cloud page: http://bit.ly/1g8pJut • Webinar recording and slides to follow by email • View previous webinar recordings and sign up for upcoming sessions: http://www.salesforce.com/uk/events/webinars/ • Service Cloud webinar – 24th September: - Customer speaker – Sarah Metcalfe, Customer Service Manager, SureFlap Ltd
  • 74. Thank you!