How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth - Abbreviated Summary

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Companies struggle to get a clear view of customer satisfaction and loyalty because these programs are usually managed separately. By integrating them, not only can companies accurately judge customer …

Companies struggle to get a clear view of customer satisfaction and loyalty because these programs are usually managed separately. By integrating them, not only can companies accurately judge customer opinion, but they will also be better able to act on those opinions and build a cadre of loyal customers and advocates.
This ITSMA Special Report highlights how best-practice companies take a unified, global approach to customer satisfaction management and loyalty programs. Many have developed a customer experience center of expertise to ensure that programs are coordinated globally and executed consistently at the local level. The report also defines what a customer loyalty program is, identifies the organizational structure companies need to develop a comprehensiv program, and outlines the key elements in designing a process and program for a a holistic customer experience.

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  • 1. SPECIAL REPORT How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth By Julie SchwartzCompanies struggle to get a clear view ofcustomer satisfaction and loyalty because theseprograms are usually managed separately.By integrating them, not only can companiesaccurately judge customer opinion, but they willalso be better able to act on those opinions andbuild a cadre of loyal customers and advocates.Abbreviated Summary | October 2012Note: ThisAbbreviated summary highlights someof the significant findings from How to BuildSuccessful Customer Satisf action and LoyaltyPrograms That Drive Growth.A more in-depthanalysis can be found in the full report.
  • 2. Take a HolisticApproachto Managing the CustomerExperienceEvery B2B company can point to some big successes A holistic approach to a customer loyalty andin building strong after-sales relationships with satisfaction program requires:customers. But not enough companies take a broad • A well-defined organization structureview of the customer relationship and create an • Chief Customer Officerintegrated approach that begins the moment a • Customer Experience Center of Expertisecustomer first engages with the company and extends • A rigorous process and program designpost-sale to the point when that customer becomes afaithful advocate and perhaps even a partner in Listening Acting Evaluatingco-developing new solutions. ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 3. Organizational Structure:Bring Programs T ogetherIn most companies, customer satisfaction and loyalty Here’s how you bring your programs together:programs are not managed at a high-enough level, whichleads to the silo problem because those who manage 2. Create a center 1. Appoint a Chiefthem have neither the seniority nor the leadership skills Customer Officer. of expertise toto work across programs. Companies will never bring all the be able to manage different programsITSMA research finds that companies invest a lot in every touch point together. of the customer Centralization will enableservice delivery but don’t pay enough attention to other process and experience experiencepieces of customer service. These uncoordinated touch holistically unless sharing to improvepoints result in an inconsistent customer experience and a senior-level existing programs, executive is in charge as well as ensure thefragmented customer satisfaction and loyalty efforts that effectiveness of of the end-to-endnever rise to a strategic level. customer experience. new ones. ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 4. Organizational Structure:Centralize OversightWhen measuring customer satisfaction and loyalty, it’s When you end up with little fiefdoms all doing thingseasy to game the system. Another important role of the autonomously, employees are not being held to thecenter of expertise is to act as referee over the same standard across the company. And that meansprograms, ensuring that all areas of the company it’s impossible to establish a meaningful benchmarkplay by the same rules when it comes to the high- for improvement. If measurement—andstakes issues of loyalty and satisfaction. interpretation of the results—is not consistent, companies lose the programs’ value. ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 5. Listening: Gather Data andChooseApproachThe tendency in many companies is to equate the Things to keep in mind:customer satisfaction survey with the overall program; 1. Customer information integrity.however, the survey is just part of the customersatisfaction and loyalty program. Further, the survey Without data integrity, companies cannot measureshould not be the sole customer listening post. satisfaction or loyalty consistently or effectively. 2. Choose the best approach for your business. You can conduct surveys on a project or transactional basis, a relationship basis, or both, depending on what makes the most sense for your business model. ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 6. Listening: Gather FeedbackWhat exactly should companies be measuring when they ask With the increasing proliferation of channels,customers to participate in satisfaction and loyalty programs? surveys are not enough. Other customer listeningITSMA recommends that companies create a customer loyalty posts include:index that incorporates three broad measures: • Customer service hotline 1 2 3 • Customer visits Satisfaction Loyalty Advocacy • Online communities • Social media • Customer councils/advisory boards • Face-to-face individual customer interviews • Customer reviewsNote: The Net Promoter Score is based on the model described in Fred Reichheld’s book,The Ultimate Question (2007). Average B2B NPS = 24; best-in-class NPS > 50.http://www.netpromoter.com/netpromoter_community/blogs/conference_sf_2009/2009/01/27/b2b ©2012, ITSMA | How to Build Successful Customer Satisfaction and-and-nps-a-match-made-in-heaven Loyalty Programs That Drive Growth
  • 7. Acting: TakeAction withAll CustomersHow a company responds to Integrating Customer Satisfaction and Loyalty Programs Creates a Continuous Feedback Loop of Information and Actioncustomer feedback says a lotabout the importance it places on Client Services Strategic/Operational Changes Feedback Provider • Advocacy Programcustomer relationships. Action • Reference ProgramCompanies that promptly take Promoters End of Project Customer Engagement Activitiesaction in response to both • Account Based Marketing • Client Councils/Advisory Boardspositive and negative • Conduct • Thought Leadership Activities surveys • Special Events/Briefingsfeedback have made a Transactional • Monitor all • Collaborative Development/Beta customer- Projectscommitment to improve the listening Passives • Recreation and Social Activities postscustomer experience. However, • Capture • Online Communities client- • Key Executive Relationshipresponding customer by customer Annual initiated Program feedbackis not enough. Some feedback Detractorsneeds to be addressed on a more Remediation Actionsstrategic, company-wide level. Ongoing ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 8. Acting: Take a ProgrammaticApproach to CustomerEngagementCustomer engagement, which strengthens ITSMA has created a framework, consisting ofrelationships and builds loyalty with key stakeholders 6 elements, to help companies create moreat existing customer accounts, is most successful effective customer engagement programs.when managed programmatically—not as ad hoc,one-off activities. ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 9. Evaluating: Measure to Proveand Improve the ProgramAs with any business activity, it is important to Keep these in mind when coming up with andmeasure results to know what’s working and what measuring evaluation metrics:isn’t, as well as to communicate the value. In other • Measure results at three levelswords, we measure to both prove and improve • overall programthe results delivered by the program. • individual activityUsing baselines is a powerful way to demonstrate • specific accountsthe value of the customer satisfaction and loyaltyprogram. Showing the value of these programs • Measure your listening program,helps executives understand their importance, not just customers’ responsesresulting in continued support and funding. • Tailor results reporting to the target audience ©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth
  • 10. Learn More For more information on how to build a best-in-class customer satisfaction and loyalty program, buy the ITSMA Special Report How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth.