introduction

• What do you do for a living?
  – We find stuff we don't like and we change it
• culture/rituals/beliefs/tr...
2 stories

Denial of service
I am a heratic

• I am here to commit heresy
PLANNING YOUR ROUTE TO
      EXCELLENCE
              HAPPY
              STAFF




      MORE              HAPPY
     PRO...
FINANCIAL MODEL
Start with the staff – IT’S PROVEN:




          Practice What You Preach
PRACTICE WHAT
           YOU PREACH
•    I am highly satisfied with my job
•    I get a sense of accomplishment from my wo...
ESTIMATED LIFETIME VALUE -
REVENUE
FACT: A great customer is worth 102x an unhappy one.
ESTIMATED LIFETIME VALUE - MARGIN
Myths that get in the way

•   Recovery is expensive
•   Cross-selling
•   Warm body
•   CEO doesn't get it

• But I don't...
The CEO gap

• CEOs who believe their firm is above
  average on service – 75%

• Customer feedback – somewhat or
  extrem...
Issues
•   Keep handling the same issues
•   Self service doesn't exist or is rubbish
•   Service is reactive
•   Hard to ...
Solutions
• Eliminate dumb contacts
• Closed loop active listening
    – Cut the crap meetings
    – Owners of solutions
•...
Stop doing dumb stuff

• Why do customers contact you?
    – Phones calls
    – Emails
    – Support tickets
•   What happ...
Major Supermarket Chain




       Heatmap Interpretation:


       1. Promote success? For
          example, create
    ...
Self service example
Before
• 1000 “tickets” per day
• 12 staff
• Monthly purge to stay “on-top”
After
• 300 tickets per d...
Tools
Churn

First direct

4% annual customer churn

Peer1

7% annual employee churn
Recovery

• TNT found increased loyalty after recovery
• Done right it builds trust
• Don't just write you need to call
Measure your service

Not annual survey!
• NPS monthly
Customer touch points
• By employee
• By touch point
• Every time i...
Maximising The Value of Customer Feedback


                                                             1. MEASUREMENT
5....
Net Promoter Score
 Net Promoter score
   • Key metric to measure customer service
   • Would you recommend us to a frien...
Net Promoter Score
Net Promoter Scoring
• Answers between 0 to 10
  – 0 – 6 = Detractors
  – 7 – 8 = Passive
  – 9 – 10 = Promoters

• Score ...
Where does growth come
        from?
Easy to do business with
People Vision




Recruit great people and allow
them to do what they do best
every day.
Percentage of Buyers Getting
        the Same Make Again
50%

40%
             40%

30%
                                  ...
Employee Satisfaction
        Drives Loyalty
• MEANS
• Low employee turnover is directly linked to high
  customer satisfa...
How are you today?
Indicators

•   20% of new employees are internal referrals
•   Service revenue goals – 50% growth per year
•   Net promot...
Case study: itlab

 “We seek criticism”
THE CHALLENGES WE FACED
    “It’s not how good you are it’s how good you want to be…”

• Poor communication with clients –...
THE ACTIONS WE
                TOOK
• Clearly define excellence – Service Obsession™ & Core
  Values
• Create strong cultu...
THE IMPACT ON THE
       ORGANISATION
• Service gross margin – From 50% to 67%
• Profitability – From breakeven to 7% and ...
The smart cheater strategy
Dominic  Monkhouse  Peer1  Internet  World 2009 # I W E X P O
Dominic  Monkhouse  Peer1  Internet  World 2009 # I W E X P O
Dominic  Monkhouse  Peer1  Internet  World 2009 # I W E X P O
Dominic  Monkhouse  Peer1  Internet  World 2009 # I W E X P O
Dominic  Monkhouse  Peer1  Internet  World 2009 # I W E X P O
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Dominic Monkhouse Peer1 Internet World 2009 # I W E X P O

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I spoke at Internet World (#IWEXPO) in London on the 29th April on my passion for customer service excellence. I stole the title of my brief talk from the book by Bill Price (http://www.amazon.co.uk/review/RAVNQAFZBW9WL/ref=cm_cr_rdp_perm) about his experience at Amazon. At Rackspace and itlab I have seen the use of NPS (net promoter score) drive huge improvements in customer experience. Superior customer experiences are only possible with engaged employees and I mentioned some easy to emulate tips on engagement. Some of the financial models that show the bottom line value of having happy staff delivering world calls customer service get a mention – including the real world impact of NPS on growth from existing customers. In 1 example I discuss the introduction of some self service tools that have a huge impact on service and show how it is possible for all firms to emulate Amazon in quadrupling revenue without adding support head count or in the case of Pipex Hosting deliver better service with fewer staff. Finally I used itlab as a case study to show how this firm was transformed in a 2 year period from loss making also ran into a financially stable great place to work delivering awesome customer support.

http://dommonkhouse.wordpress.com/2009/06/11/the-best-service-is-no-service/

Published in: Technology, Business
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Transcript of "Dominic Monkhouse Peer1 Internet World 2009 # I W E X P O"

  1. 1. introduction • What do you do for a living? – We find stuff we don't like and we change it • culture/rituals/beliefs/tribes – Volunteers, cant force – Connections – Yearning – True believers
  2. 2. 2 stories Denial of service
  3. 3. I am a heratic • I am here to commit heresy
  4. 4. PLANNING YOUR ROUTE TO EXCELLENCE HAPPY STAFF MORE HAPPY PROFIT CUSTOMERS
  5. 5. FINANCIAL MODEL Start with the staff – IT’S PROVEN: Practice What You Preach
  6. 6. PRACTICE WHAT YOU PREACH • I am highly satisfied with my job • I get a sense of accomplishment from my work • The work I‟m given is challenging, not repetitive • I am committed to this firm as a career opportunity • Move the scores from 4 to 5 on a 6 point scale for a 42% improvement in financial performance. Practice What You Preach
  7. 7. ESTIMATED LIFETIME VALUE - REVENUE FACT: A great customer is worth 102x an unhappy one.
  8. 8. ESTIMATED LIFETIME VALUE - MARGIN
  9. 9. Myths that get in the way • Recovery is expensive • Cross-selling • Warm body • CEO doesn't get it • But I don't care!
  10. 10. The CEO gap • CEOs who believe their firm is above average on service – 75% • Customer feedback – somewhat or extremely dissatisfied with most recent experience – 59% » Accenture 2007
  11. 11. Issues • Keep handling the same issues • Self service doesn't exist or is rubbish • Service is reactive • Hard to contact the right person – Sorry I cant transfer you • Customer service dept..... • Company CANT listen • Wrong metrics • Wrong staff
  12. 12. Solutions • Eliminate dumb contacts • Closed loop active listening – Cut the crap meetings – Owners of solutions • Make yourselves easy to do business with • Self service tools that work • Change your metrics • Be proactive • Preventative support • First Call SupportTM
  13. 13. Stop doing dumb stuff • Why do customers contact you? – Phones calls – Emails – Support tickets • What happens to complaints? • How many invoice problems? • Credit notes for what? • Low rated support tickets?
  14. 14. Major Supermarket Chain Heatmap Interpretation: 1. Promote success? For example, create prominent banner for „Go Shop‟ or focus on less popular items? 2. What are users‟ missing? Can navigation be restructured?
  15. 15. Self service example Before • 1000 “tickets” per day • 12 staff • Monthly purge to stay “on-top” After • 300 tickets per day • 4 staff Costs • setup plus • £600 down to £200 per month
  16. 16. Tools
  17. 17. Churn First direct 4% annual customer churn Peer1 7% annual employee churn
  18. 18. Recovery • TNT found increased loyalty after recovery • Done right it builds trust • Don't just write you need to call
  19. 19. Measure your service Not annual survey! • NPS monthly Customer touch points • By employee • By touch point • Every time in real time Feedback, feedback, feedback
  20. 20. Maximising The Value of Customer Feedback 1. MEASUREMENT 5. COMMUNICATING TO • NPS issued monthly to 1/3rd customer base OUR CUSTOMERS • Insight Survey issued within 30 days of • Customers receive becoming a customer feedback on the changes we have implemented as a result of their suggestions 2. COMMUNICATING TO OUR EMPLOYEES • All can access survey results online (in real time) • E-mail alerts instantly sent to Operations Director if customer rates itlab less than 7/10 4. ACTION DEPLOYMENT • Customers that aren‟t delighted are followed up with a health check 3. ACTION PLANNING • Appropriate customer • Survey results (NPS, suggestions for improvement suggestions are implemented etc.) are reviewed at team meetings •Directors ring all text answers
  21. 21. Net Promoter Score  Net Promoter score • Key metric to measure customer service • Would you recommend us to a friend or colleague? • Your dedicated team is rewarded only on your satisfaction  Bad profits and Good profits • Bad profits are profits earned at the customer‟s expense, in other words, profits earned from customers which then become detractors • Good profits are earned from creating customer value, which in turn creates customers who are promoters
  22. 22. Net Promoter Score
  23. 23. Net Promoter Scoring • Answers between 0 to 10 – 0 – 6 = Detractors – 7 – 8 = Passive – 9 – 10 = Promoters • Score Calculation: – Promoters – Detractors/Total Responses = % Score • Management target - How do we turn passives and detractors into Promoters??
  24. 24. Where does growth come from?
  25. 25. Easy to do business with
  26. 26. People Vision Recruit great people and allow them to do what they do best every day.
  27. 27. Percentage of Buyers Getting the Same Make Again 50% 40% 40% 30% 24% 20% 16% 10% 0% Good Car/Good Dealer Good Car/Bad Dealer Bad Car/Good Dealer Source: J.D. Power Associates
  28. 28. Employee Satisfaction Drives Loyalty • MEANS • Low employee turnover is directly linked to high customer satisfaction. Dissatisfied employees are 300% more likely to leave. • SPECIFIC ACTIONS • Implement weekly yay/meh/boo (YMB) survey – act decisively on the results. • Management to be careful what is promised and then ALWAYS deliver on promises to staff.
  29. 29. How are you today?
  30. 30. Indicators • 20% of new employees are internal referrals • Service revenue goals – 50% growth per year • Net promoter scores – get in to 80% range • By customer segment • By product • By support channel • Net revenue growth per product per month - 3% • 50% of new customers by word of mouth
  31. 31. Case study: itlab “We seek criticism”
  32. 32. THE CHALLENGES WE FACED “It’s not how good you are it’s how good you want to be…” • Poor communication with clients – always reactive, never proactive. • Poor communication internally – impacting client service. • Lack of commercial confidence – Fear of discriminating about which customers to serve. • Crisis of bureaucracy – competing systems, conflicting goals. • Poorly integrated acquisitions – different product sets, cultures and teams. • Misaligned products – didn‟t reward adding value to the client.
  33. 33. THE ACTIONS WE TOOK • Clearly define excellence – Service Obsession™ & Core Values • Create strong culture – Flags, 10 Things, Balls of Glory, Charity & Social Committees, Friday Nights & Fun Zone. • Benchmark excellence – Net Promoter & closed case • Redefine Products – 2.0, Direct, ITMS • IT Manager – trusted advice from a techie NOT a salesman. • Specialist Practices – acquisitions role clearly defined • Netsuite – replace all internal systems for data unity, portal, single invoice, surveys, instant feedback loops
  34. 34. THE IMPACT ON THE ORGANISATION • Service gross margin – From 50% to 67% • Profitability – From breakeven to 7% and rising (35K pm) • SLA – 10 minute critical 97% last quarter average 2.34min • Responsiveness – average call answer is 4 seconds • 5 out of 5s! – 75% of rated tickets marked 5 – Serviced Obsessed (40% response rate) • Financial Times Top 50 Places to Work (companies of any size) • NPS - -2 to +14 and then +55 • The Results you Can’t Measure – go and visit for Richard‟s Mum‟s Cake!
  35. 35. The smart cheater strategy
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