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Invisible Customer Experience Innovation

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Innovate customer experience where customers want it most: your behind-the-scenes processes, policies, etc. These things may be invisible to customers, but they're the most powerful toward aligning …

Innovate customer experience where customers want it most: your behind-the-scenes processes, policies, etc. These things may be invisible to customers, but they're the most powerful toward aligning with customers, enabling (not enticing!) them to love you.

See http://ClearActionCX.com

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  • 1. www.ClearActionCX.com Invisible Customer Experience Innovation Getting Your Act Together is the Best Way to Differentiate Customer Experience for Sustained Business Results
  • 2. Your Opportunity for Differentiation 1) CMO Council, Customer Affinity, 2007 © Copyright ClearAction. LLC All rights reserved.
  • 3. Your Opportunity for Differentiation 59% 75% Our Service is Above-Average Your Service Left Me Somewhat to Extremely Dissatisfied 1) CMO Council, Customer Affinity, 2007 2) Accenture, Delivering the Promise, 2007 © Copyright ClearAction. LLC All rights reserved.
  • 4. 31% 69% of Firms: Not High Commitment to Listening 32% 68% of Firms: Not Turning Problems into Opportunities Your Opportunity for Differentiation 59% 75% Our Service is Above-Average Your Service Left Me Somewhat to Extremely Dissatisfied 1) CMO Council, Customer Affinity, 2007 2) Accenture, Delivering the Promise, 2007 3) CMO Council, Turning Customer Pain into Competitive Gain, 2009 © Copyright ClearAction. LLC All rights reserved.
  • 5. 1% Increase of Positive Word-of-Mouth 0.14% Revenue Growth -London School of Economics Advocacy Drives Growth study How Much Revenue is Gained via Positive Word-of-Mouth © Copyright ClearAction. LLC All rights reserved.
  • 6. 1% Reduction of Negative Word-of-Mouth 1% Increase of Positive Word-of-Mouth 0.41% Revenue Growth 0.14% Revenue Growth 300% ROI on reducing negative buzz compared to increasing positive buzz -London School of Economics Advocacy Drives Growth study 3X ROI on Substance Versus Sizzle Highest Growth from Ease-of-Doing-Business © Copyright ClearAction. LLC All rights reserved.
  • 7. Good news is no news No news is bad news Bad news is good news! -Jim Morgan, Chairman, Applied Materials Embrace Warning Signals From Customers © Copyright ClearAction. LLC All rights reserved.
  • 8. Nurture Customer-Centricity Constantly © Copyright ClearAction. LLC All rights reserved. ClearActionCX.com/blog
  • 9. © Copyright ClearAction. LLC All rights reserved. Customer Feedback Customer Perceptions 1) Capture Customer Inputs Lagging Indicators WHY VOC is a lagging indicator: Reveals what customers already think Customer Experience Improvement Model
  • 10. © Copyright ClearAction. LLC All rights reserved. Customer Feedback Action Plan Metrics Customer Perceptions 1) Capture Customer Inputs 2) Create Action Plans 3) Communicate Progress Lagging Indicators Leading Indicators WHY VOC is a lagging indicator: Reveals what customers already think WHY action plan metrics are a leading indicator: Predicts what customers will think Customer Experience Improvement Model
  • 11. http://www.symantec.com/themes/theme.jsp?themeid=customer_driven&ptid=tab2 Close the Loop: Report Action Item Progress © Copyright ClearAction. LLC All rights reserved.
  • 12. http://www.motorola.com/governmentandenter prise/contentdir/en_US/Files/ProductInformati on/ITL%2006.pdf Close the Loop: Report Action Item Progress © Copyright ClearAction LLC. All rights reserved.
  • 13. http://www.boeing.com/commercial/aeromagazine/articles/qtr_2_08/article_01_1.html Close the Loop: Report Action Item Progress © Copyright ClearAction LLC. All rights reserved.
  • 14. Interview Customers Survey Reports Presentations • Interpretation• Graphs, Comments• Multiple Functions Institutionalize Customer Experience Improvement © Copyright ClearAction LLC. All rights reserved.
  • 15. Interview Customers Survey Reports Presentations Conduct Workshop APPLIED MATERIALS CUSTOMER FOCUS MEASURES WORKSHOP Execution and Feedback Plans Voice of the Customer Improvement Action Plans to Benchmarked Targets Customer Satisfaction Measures Customer Focus Measures Customer Perceptions Customer Focus Measures (Internal - Leading Indicators) 1. 2. 3. Action Plan (Include Program Name, Owner, Completion Date) 1. 2. 3. 4. Customer Feedback (Voice of the Customer) 1. 2. 3. Customer Satisfaction Measures (External - Lagging Indicators) 1. (Satisfaction Index) 2. (% Deterioration) 3 (% Improvement) . 4. (Competitiveness Index) Confirm w/Clients • Interpretation• Graphs, Comments• Multiple Functions • Prioritization • Progress Reports Institutionalize Customer Experience Improvement © Copyright ClearAction LLC. All rights reserved.
  • 16. Interview Customers Survey Reports Presentations Conduct Workshop APPLIED MATERIALS Title of Action Plan M1 M2 M3 M4 Actual & Target Deadlines 1.) __________________________________________________ 2.) __________________________________________________ 3.) __________________________________________________ % Owner Problem Statement: Goal: Owner: Action Plan: APPLIED MATERIALS CUSTOMER FOCUS MEASURES WORKSHOP Execution and Feedback Plans Voice of the Customer Improvement Action Plans to Benchmarked Targets Customer Satisfaction Measures Customer Focus Measures Customer Perceptions Customer Focus Measures (Internal - Leading Indicators) 1. 2. 3. Action Plan (Include Program Name, Owner, Completion Date) 1. 2. 3. 4. Customer Feedback (Voice of the Customer) 1. 2. 3. Customer Satisfaction Measures (External - Lagging Indicators) 1. (Satisfaction Index) 2. (% Deterioration) 3 (% Improvement) . 4. (Competitiveness Index) Single-Page Strategies Operations Reviews Confirm w/Clients • Interpretation• Graphs, Comments• Multiple Functions • Prioritization• Actions + Metrics • Drive Change • Progress Reports Institutionalize Customer Experience Improvement © Copyright ClearAction LLC. All rights reserved.
  • 17. Interview Customers Survey Reports Presentations Conduct WorkshopMetric Dashboards APPLIED MATERIALS Title of Action Plan M1 M2 M3 M4 Actual & Target Deadlines 1.) __________________________________________________ 2.) __________________________________________________ 3.) __________________________________________________ % Owner Problem Statement: Goal: Owner: Action Plan: APPLIED MATERIALS CUSTOMER FOCUS MEASURES WORKSHOP Execution and Feedback Plans Voice of the Customer Improvement Action Plans to Benchmarked Targets Customer Satisfaction Measures Customer Focus Measures Customer Perceptions Customer Focus Measures (Internal - Leading Indicators) 1. 2. 3. Action Plan (Include Program Name, Owner, Completion Date) 1. 2. 3. 4. Customer Feedback (Voice of the Customer) 1. 2. 3. Customer Satisfaction Measures (External - Lagging Indicators) 1. (Satisfaction Index) 2. (% Deterioration) 3 (% Improvement) . 4. (Competitiveness Index) Single-Page Strategies Incentives Operations Reviews Confirm w/Clients • Interpretation• Graphs, Comments• Multiple Functions • Prioritization• Actions + Metrics• Leading & Lagging • Recognition & Bonuses • Drive Change • Progress Reports Institutionalize Customer Experience Improvement © Copyright ClearAction LLC. All rights reserved.
  • 18. Who Owns the Customer Experience? Sales Service Channels Partners Marketing Quality Desired Outcomes Total Costs Money Time Energy Psychic Total Value Product Service Personnel Image Need Awareness Need ExtinctionCircumstance © Copyright ClearAction LLC. All rights reserved.
  • 19. Channel Customer Voice into Company 19 Policies Processes Culture Affinities Convenience Product Service © Copyright ClearAction LLC. All rights reserved.
  • 20. Help Everyone Own the Customer Experience Sales Service Operations Manufacturing Channels Engineering Finance Human Resources Legal Marketing Quality Safety Suppliers Partners Facilities Information Technology Purchasing etc. Desired Outcomes Total Costs Money Time Energy Psychic Total Value Product Service Personnel Image Need Awareness Need ExtinctionCircumstance © Copyright ClearAction LLC. All rights reserved.
  • 21. Airlift & Tanker (A&T) 1998 Malcolm Baldrige National Quality Award http://www.bptrends.com/publicationfiles/11-05-WP- BoeingATBPM-Garretson-Harmon.pdf Everything Revolves Around Customer Experience © Copyright ClearAction LLC. All rights reserved.
  • 22. Process Improvement at Root Level Market Results: Customer's View Quality Results: Manager's View Process Drivers: Team's View Root Causes: Leading Measures 1) Why? 2) Why? 3) Why? RootofProblem Service Too Expensive Under-Utilized Service Value Unappreciated Customer Data Not Integrated Overselling Communication Issue Incentives Not Balanced Instructions Not Clear 4) Why? Send root cause reports to originators Outdated Supply List © Copyright ClearAction LLC. All rights reserved.
  • 23. Discover Each Group’s Role in CEM Department: __________________ Our Role In Outcomes Our Internal Customers’ Roles In Outcomes • x • x • x • x • x • x • x • x Customer Survey Results = Customers’ Desired Outcomes © Copyright ClearAction LLC. All rights reserved.
  • 24. Department: __________________ Our Role In Outcomes Our Internal Customers’ Roles In Outcomes Our Possible Detractors to Outcomes • Inconsistency: • Overload: • Waste: Our Possible Value-Add to Outcomes • Time: • Place: • Access: • Form: • Features: • Ease: • ___________ • ___________ • ___________ • ___________ • ___________ • ___________ • ___________ • ___________ Customer Survey Results = Customers’ Desired Outcomes Engage Everyone in Experience Innovation © Copyright ClearAction LLC. All rights reserved.
  • 25. Top-Down Objectives & Bottom-Up Metrics © Copyright ClearAction LLC. All rights reserved. Corporate Objective 15% YoY C Sat Division Objective Process Improvements 1. Cascading Focus 2. Cascading Focus 3. Cascading Focus Department Objective Timely Responses Team Objective Confirm Solutions
  • 26. Top-Down Objectives & Bottom-Up Metrics © Copyright ClearAction LLC. All rights reserved. Corporate Objective 15% YoY C Sat Division Objective Process Improvements 4. Team Metrics % Resolved < 48 Hrs 1. Cascading Focus 2. Cascading Focus 3. Cascading Focus Department Objective Timely Responses Team Objective Confirm Solutions 5. Department Metrics % Response < 1 Wk 6. Division Metrics % Automation
  • 27. Workshops for Everyone to Improve CEM © Copyright ClearAction LLC. All rights reserved.
  • 28. Root Cause Metric Customer-Focused Problem Statement Root Cause Statement Root Cause Goal Goal Owner (Person) Goal Action Plan Action Owner (Person) Action Deadline (Date) Goal Impact 1) 2) 3) 4) Week 1 Week 2 Week 3 Weave CEM into Staff Meetings, Ops Reviews © Copyright ClearAction LLC. All rights reserved.
  • 29. B CA D E Total Company BU #2 BU #3 BU #4BU #1Org A BUs BU #1 BU #1Org C BUs BU #2 BU #3 BU #4 BU #4BU #3BU #2Org B BUs Help Teams Help One Another © Copyright ClearAction LLC. All rights reserved.
  • 30. . Cross-Functional Teams Formed Management's Challenges Announced Project Approach Identified . Current Performance Target Motivate Prevention & Innovation Team Chronicles Progress © Copyright ClearAction LLC. All rights reserved.
  • 31. . Cross-Functional Teams Formed Management's Challenges Announced Project Approach Identified . Current Performance Target Constructive Feedback from Panel of Judges Wide Array of Congratulations - or - Chance to Re-Submit Motivate Prevention & Innovation Team Chronicles Progress © Copyright ClearAction LLC. All rights reserved.
  • 32. Need Awareness Need Extinction Evaluating Alternatives Additional Information Sales Contact Word-of-Mouth, Ads Social Media, Website Ordering Activities Fulfillment Activities Problem Resolution Cross-Sell, Community Initial Use Experience Familiarization & Learning Update Voice-of-Customer to Understand Whole CX © Copyright ClearAction LLC. All rights reserved. OUR PROCESSES TOUCH-POINTS AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY
  • 33. Need Awareness Need Extinction Initiating Situation Considering Needs Identifying Alternatives Evaluating Alternatives Initial Assessment Additional Information Decision Process Sales Contact Word-of-Mouth, Ads Social Media, Website Ordering Activities Fulfillment Activities Problem Resolution Cross-Sell, Community Initial Use Experience Integration with People/Things Familiarization & Learning Adaptation, Extension, Disposal Usage Steps Customer Experience is More Than Touchpoints Circumstance Circumstance © Copyright ClearAction LLC. All rights reserved. OUR PROCESSES CUSTOMERS’ PROCESSES TOUCH-POINTS AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY
  • 34. Inspire Innovation via Full Use of CEM Data Complaint LogsSales/Service Reports Surveys/Win-Loss Reports CRM Database/ Blogosphere Create or Enhance Customer Experience Personas Panoramic View of Customer Experience: Need Awareness Need Extinction © Copyright ClearAction LLC. All rights reserved.
  • 35. Past Current Future Ideal = Value Quotient Solution A Solution B etc. ValueQuotient Circumstance How Customers Judge Value History © Copyright ClearAction LLC. All rights reserved. Desired Outcomes Undesired Outcomes
  • 36. Past Current Future Ideal Desired Outcomes Undesired Outcomes = Value Quotient Solution A Solution B etc. ValueQuotient Circumstance Outcome A Outcome B Outcome C Outcome D Solution A Solution B etc. ValueQuotient Circumstance Ideal How Customers Judge Value History Priorities © Copyright ClearAction LLC. All rights reserved.
  • 37. Address Entire Customer Experience Desired Outcomes Product Service Business Model Affinities Convenience Policies Processes Culture Means-to-an-End Firm’s Solution Total Costs Money Time Energy Psychic Total Value Product Service Personnel Image Need Awareness Need ExtinctionCircumstance © Copyright ClearAction LLC. All rights reserved.
  • 38. Prevent Recurrence Through Systems Thinking • Analogies • Connectivity • Framing • Patterns • Perspective • Structure LIKE … Desired Outcome Barriers Solutions Why Solutions FuturePresentPast © Copyright ClearAction LLC. All rights reserved.
  • 39. Ease-of-Doing-Business = Invisible Innovations Stream Relevant Listening Data Segments to ALL Departments Good news is no news, No news is bad news, Bad news is good news! Make it Easy for Employees to Accept Customers’ Constructive Feedback © Copyright ClearAction LLC. All rights reserved.
  • 40. Handle Complaints Systematically Like ‘RMA’ RMA = Returned Materials Authorization Process APPLIED MATERIALS CUSTOMER FOCUS MEASURES WORKSHOP Execution and Feedback Plans Voice of the Customer Improvement Action Plans to Benchmarked Targets Customer Satisfaction Measures Customer Focus Measures Customer Perceptions Customer Focus Measures (Internal - Leading Indicators) 1. 2. 3. Action Plan (Include Program Name, Owner, Completion Date) 1. 2. 3. 4. Customer Feedback (Voice of the Customer) 1. 2. 3. Customer Satisfaction Measures (External - Lagging Indicators) 1. (Satisfaction Index) 2. (% Deterioration) 3 (% Improvement) . 4. (Competitiveness Index) APPLIED MATERIALS Title of Action Plan M1 M2 M3 M4 Actual & Target Deadlines 1.) __________________________________________________ 2.) __________________________________________________ 3.) __________________________________________________ % Owner Problem Statement: Goal: Owner: Action Plan: Make Action-Planning Easy & Motivate Follow-Through © Copyright ClearAction LLC. All rights reserved. Ease-of-Doing-Business = Invisible Innovations Stream Relevant Listening Data Segments to ALL Departments Good news is no news, No news is bad news, Bad news is good news! Make it Easy for Employees to Accept Customers’ Constructive Feedback
  • 41. Do you like these concepts? Let us help you master them to increase your company’s growth! Contact us today: OptimizeCX@ClearActionCX.com tel +1 408 687 9700
  • 42. ClearAction clients praise our insights on actionability & engagement “ClearAction taught us things that wouldn’t readily cross our minds and has increased our efficiency & accuracy in many areas. We highly recommend ClearAction as a business consultant.” “The cross-functional collaboration necessary to successfully manage the customer experience requires big picture, systems thinking. ClearAction brings very practical, well-thought out approaches to get the internal cooperation needed.” “ClearAction is very dependable and detail-oriented, and has an extremely high sense of integrity. There's no question ClearAction will do what's needed to ensure the work is done correctly and the client's best needs are taken into account.” © Copyright ClearAction LLC. All rights reserved. Page 42
  • 43. Consulting Roles We have provided ClearWisdom™ to dozens of companies Partial List© Copyright ClearAction LLC. All rights reserved. Page 43
  • 44. Customer Experience Optimization Talk Show Hear interviews with companies such as: Adobe, Aon, CenturyLink, Cisco, Citrix, Coca Cola Enterprises, Dell, EMC, GE, HP, ICW, Intuit, Kimpton, NCR, Philips, Safelite, Sungard, SunTrust, Symantec, TELUS, tw telecom, Virgin Mobile, Wells Fargo http://ClearActionCX.com/cx-podcasts e-books available at ClearActionCX.com/cx-books or Amazon Kindle: Metrics You Can Manage For Success Customer Experience Improvement Momentum Innovating Superior Customer Experience white paper available at ClearActionCX.com/cx-articles Employee Engagement in Superior Customer Experience: 4 Overlooked Key Competencies for Sustainable Results Resources about customer experience optimization See more at http://ClearActionCX.com/best-practices © Copyright ClearAction LLC. All rights reserved. Page 44
  • 45. © Copyright ClearAction LLC. All rights reserved. Page 45
  • 46. For More About Customer Experience: www.ClearActionCX.com/best-practices OptimizeCX@ClearActionCX.com tel +1 408 687 9700

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