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Service vs Sales: Driving Loyalty through Engagement

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Strategies and tactics to making Sales and Service complimentary instead of contradictory. American Express Case Study. Presented at the Loyalty USA Conference, Nov 2011.

Strategies and tactics to making Sales and Service complimentary instead of contradictory. American Express Case Study. Presented at the Loyalty USA Conference, Nov 2011.

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  • 1. Loyalty USAAmerican Express Relationship Care - SMServicing a Relationship, Not a TransactionDerek F Martin SMDirector of Relationship Care , Customer Engagement, Sales &Retention, American Express, World ServiceJune 17, 2011
  • 2. Introduction: Derek F Martin Director Customer Engagement, Sales & Retention, World Service, American Express Board of Directors, ATA BetterBusinessBanter.Blogspot.com /@derekfmartin 2
  • 3. Ice Breaker: Your Last Experience with “Hard” Sales  Turn to the person next to you and share a memorable experience where a company or sales person used ‘hard” sales techniques such as:  Engage without permission  Omit potentially negative product attributes  Disparage competitor products  Scare tactics  Don’t take no for an answer  Did you buy?  Did you repeat purchase?CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 3Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.
  • 4. Sales Vs Service Agenda I. Myths and Methods  Complimentary not contradictory  First build a Foundation of Trust  Understand your Customer to Find Relevance  Value-based Offers  Aligning Metrics & Objectives I. Case Study: American ExpressCONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 4Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.
  • 5. I. Myths & Methods Complementary Not ContradictoryCONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 5Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.
  • 6. Customer Lifetime Value (CLV) is a longterm play r m = margin or profit from a customer per period CLV = m 1+ i – r { } r = retention rate i = discount rate CLV $500 $400 $300 $200 $100 $0 50% 60% 70% 80% 90% Rate of Retention CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 6 Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of American*Source: Sunil Gupta, “Managing Customers Express.as Investments,” Wharton 2005
  • 7. Fitting The Customer Lifecycle Sales Sales Effort Effort Welcome Educate Engage RewardComplexity Value Prop Product Entice Encourage Usage Excite Recognize Prospect Purchase RePurchase Loyalty Customer Lifecycle (Time or # repurchases) 7
  • 8. Tug of War Example: Card Activation A new Cardmember calls in to activate their card -> What else do you want to discuss on that call? Account Additional Set Up Cards Explanation Insurance of Benefits SalesCONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 8Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.
  • 9. Deliver on the Promise: Earn Customer Trust Recognition 24/7 Global Support Personalized Voice Response Know Me Accurate Human Reliable Promise Solve Online Easy FairFast Secure Proactive World-Class Customer Service 9
  • 10. Understand Your Customer: Make it Relevant MOOD INQUIRY PROFILE Relationship CareSM World-Class Customer Service 10
  • 11. Deliver Value: The Engagement Spectrum Digital Spend / Account Benefit Loyalty / Coverage Addl Card InsuranceRetention Enroll & Reinforce Servicing Rewards Campaign Card Upgrade Engage Customer Engagement Relationship CareSM World-Class Customer Service 11
  • 12. What is A Value based offer? Provides communicable customer benefits Utility (Quality/Cost) Companion air ticket Fits with Brand / Image Magazine Subscription? Relevant to the customer Ice for Eskimos? Appropriate in the context of the contact Airmiles for Electric Bill? Hassle Free Miles Redemption, blackout dates, addl fees, expiration 12
  • 13. Aligning Goals and Metrics Shareholder Customer  Revenue  Satisfaction  Cost & Efficiency  Resolution Rate  Offer Rate Both  Net Promoter  Customer Handle Time  Sales Rate (Offer/Conversion Rate)  Referral Rate  Retention Rate…CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 13Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.
  • 14. II. American Express Case Study: Our Heritage, Our Vision 1850 Today Vesey Street To become the world’sA brand is born. most respected service brand. Service has been the foundation since the beginning 14
  • 15. Our Vision is to Become the World’s Most RespectedService Brand Service is a core focus of our company Drive Growth Drive Efficiency Deliver Superior Service 15
  • 16. We Aim to Be Among “The Best” 16
  • 17. New Customer Service ParadigmExpectations are informed by broadening service experiences across industries Interconnected, More informed consumers “want it now,” global society Sharing information Increased regulatory scrutiny in virtual communities Experiences Multiple across service touchindustries points 17
  • 18. Our Customers Expect MoreThe voice of the American Express Cardmember: “Recognize me as an individual and my relationship with you … make me feel special and valued, don’t treat me like one of the masses” “Focus on genuine conversations – move beyond the script…listen and show empathy” “The Representative should have authority and expertise to handle all requests” “… expect all contact channels to be integrated and work seamlessly” “Don’t behave like a cost center, act as a friend/ally” 18
  • 19. Our Customer Care Principles are the Foundationof Relationship Care SM Extraordinary CareExtraordinary Peopleat the Right Margins 19 19 19
  • 20. Delivering “High Touch Relationship CareSM”A human and holistic mindset focusing on extraordinary customer care and deepening relationships that forms a competitive advantage Competition American Express Transaction Servicing Relationship CareSM Efficiency/Cost containment  Respect for the relationship Scripted, robotic approach  Humanity in communications  Empowered environment Command & control environment  Product reinforcement  Relevant cross-selling Hiring for a call center environment – high attrition  Cost-effective servicing  Business growth driver 20
  • 21. Relationship Care is focused on Relationships SM SM Relationship Care is a service ethos focused on Relationships, not transactions. It is about making an emotional connection… Hire for passion, teach the skill Act with humanity Create a culture of passion and pride Empower your employeesSuccess is measured at all levels of the organisation by asking the ultimate question: “Would you recommend us to a friend?” 21
  • 22. Great Service Is Great BusinessPromoters are the most profitable customers Promoters vs Detractors…. Spend/Cardmember 20 –25% Why use “Recommend to Share of Wallet 15 -25% a Friend”? 6 x Attrition Level 10% Service Margin 22
  • 23. World Service Is a True Competitive Advantage Competition American ExpressCompleting Transactions Building Relationships Rules Principles Hit-and-miss ConsistencyAverage Handling Time “Customer” Handling Time Ops Training Learning Full Time Employees Impassioned Ambassadors Internal Quality Voice of the Customer Siloed Structure Unified Network Scripted Conversational Expendable Invaluable Best-of-Credit Cards Best-in-World Back Office Growth Engine 23
  • 24. Embedding Relationship Care with our business partners SM 24
  • 25. In summary • Service is a core competitive advantage for American Express, and differentiates our company • Relationship CareSM is our overall service ethos and is part of our “secret sauce” • We are seeing great results from Relationship CareSM so far and are continuing to roll it out throughout the world • Success is measured at all levels of the organisation by asking the ultimate question: “Would you recommend us to a friend?”CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION - This document contains confidential, proprietary and trade secret information of American Express Travel Related 25Services Company, Inc. ("American Express") and its subsidiaries and affiliates, and must not be disclosed in whole or in part to any third parties without the prior written consent of AmericanExpress.

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