This graphic portrays the overall client experience. Read the chart from the left, walking the audience first through problem experience, then complaining rate then outcome of complaining. Define the three outcomes, satisfied, mollified, and dissatisfied. For this chart, satisfied is “completely satisfied with the action taken to resolve a problem”. Mollified is “‘not completely satisfied but the response is acceptable” or “not completely satisfied but some action was taken”. This is a so-so reply. The bottom category is “dissatisfied” and “dissatisfied, no action taken” on the complaint. Point out the resulting loyalties on the right hand side. No problem is the highest at 90%. Satisfied complainants are also 90% loyal. In some environments, their loyalty is actually higher than those with no problem but research in this industry does not show that – possibly because clients have to be persistent to get things fixed rather than one call and resolution is accomplished. Also point out that mollified patients have 30% lower loyalty than satisfied complainants, meaning that for every three clients who are mollified, one who will likely not buy again. Also point out that non-complainants are actually more loyal than mollified complainants. Therefore, if they complain you must satisfy them if you are to get a return on your complaint handling investment. The good news is that it is not that hard to satisfy the client.
Ask each dealer to grade themselves on each function. Ask the group which is the weakest functions. Stress that ServiceMaster can help in those areas and that one or two customers will pay for the whole program.
Creating a Voice of the CustomerProcess That Has ImpactCustomer Management ConferenceOctober 23, 2012Moscow, RussiaJohn GoodmanTARP Worldwidewww.tarp.com
Agenda• The Opportunity: How the VOC leads to CE impact• Eight factors leading to an effective VOC• Critical data sources and integrating them (surveys, contact centers, operations and employee input)• Creating the economic imperative for action• Myths about service• Grade yourself 2
About TARP• Founded in 1971—41 years of customer experience leadership – White House Complaint Studies 1970s-80s (instigated 800#s and 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 McDonalds, Toyota/Lexus, IBM, Harley Davidson, Cisco Systems, Xerox, 3M, HP, Honda, Hyundai, Pepsi Cola, Apple, Frito-Lay, Coca-Cola, Mercedes- Benz, Merck, Amway, Lexmark, Allstate, Cathay Pacific, Shell Oil and Qualcomm. 3
Building an Effective VOC: Six Big Ideas From Strategic 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. People are still paramount – make the front line successful with flexibility and clear explanations4. Deliver technology that customers will enjoy – delivering psychic pizza via any channel5. Sensibly create remarkable delight6. An effective Voice of the Customer includes all kinds of data describing the overall customer experience 6
Set Priorities Based on Revenue Damage& Customers at Risk Overall Problem % Won’t % Customers problem experience freq recommend potentially lost (45%) (%)1 Will not2Meeting promised delivery 27 10.5 1.3datesProduct availability within 23 0.0 0.0desired time frameMeeting commitments/follow 21 30.0 2.8throughEquipment/system fixed right 20 22.2 2.0first timeAdequate post-sale 19 10.0 0.9communicationsReturning calls 16 33.3 2.4Minimum customers at risk 9.4%Proprietary and Confidential TARP Worldwide 1 Based on multiple problem selection 2 Based on will not repurchase only 23
Great Service Is A Word of MouthManagement Mechanism 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 Proprietary and Confidential TARP Worldwide 25
Problems Raise Sensitivity to Price,Hindering High MarginsPercent of customers dissatisfied with fees rises with number of problems. 90% 80% 74% % Dissatisfied with price or fees 70% 60% 46% 50% 40% 30% 22% 20% 10% 10% 0% No problems 1 problem 2 to 5 problems 6 problems or more 26
Summary• Create a unified VOC including operational data to identify best opportunities• Understand root cause including customer caused• Quantify the revenue and WOM so CFO accepts• Take control of the VOC and then become the Chief Customer Officer• Proactively educate, connect, explain and deliver psychic pizza• Outlined in detail in Strategic Customer Service published by AMACOM – on Amazon for <$20.• For package of articles - firstname.lastname@example.org or 703-284-9253 30