Managing Consumer Relationships Effectively -Presented by : Peter Gillson

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ASB Conference Presentation October 2013

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Managing Consumer Relationships Effectively -Presented by : Peter Gillson

  1. 1. Annual Conference Sydney 2013 ‘Joy of Baking’ Managing Consumer Relationships Effectively - Presented by : Peter Gillson © SFI International
  2. 2. Who Contacts Customer Service?
  3. 3. Is this your Customer Service Team? YES! We have a complaint
  4. 4. Building Engagement that Lasts How Do you Do that? © SFI International
  5. 5. Building Relationship through Experiences Taking a bad taste & turning it into a sweet sensation © SFI International
  6. 6. Relationship Marketing Logic • Recognition of market failure • Improved understanding of consumer behaviour • Improved understanding of the customer value © SFI International
  7. 7. Staff need to be empowered Listen Increase response rate with acknowledgement Value customer – respect, not idiot Be friendly & professional Train staff to solve problems Seek fast solutions More empathetic & open to complaints Seek to understand customer’s viewpoint Resolve situation – work at it No “buck passing” Truthfulness Apologise if needed Improve Product knowledge Be prepared to compensate Remove electronic & computer answering Improve Tone of voice, attitude 19% 13% 11% 10% 10% 9% 5% 5% 3% 3% 3% 2% 2% 2% 2% 1% Source ‘Consumer Sentiment Emotions and Advocacy Research SFI’ © SFI International
  8. 8. CUSTOMER SATISFACTION 85% of consumers are less likely or would not recommend an organisation where there is no complaint resolution to their satisfaction ©SFI Consumer Sentiment Emotions and Advocacy Research © SFI International
  9. 9. Relationship Logic • Consumers are rational & reasonable • Today’s Consumers maximise tools available to them • Consumers have alternatives • Cooperation is more effective than confrontation © SFI International
  10. 10. Challenges to our Loyalty Ladder View that often prevents consumers from complaining taken from 15,000 No results / Waste of time 36% Indifferent / No specific view 31% Easier to switch brands 15% Don’t want confrontation 5% Don’t like to be seen complaining 5% Others 8% © SFI International
  11. 11. What can organisations need to do better? Quicker response Better trained staff with authority Value customer, care & respect Acknowledge & communicate during resolution Problem solvers on phone Get rid of automated systems Seek resolution at all times Listen to people. Be friendly Listen & validate complaint (helpful) Empower staff – stop “passing the buck” Better processes-how to fix it Ensure customer satisfaction Treat customers better-not always wrong Give refunds/replacements-sometimes necessary Less options & better response on phone Apologise Stay open to suggestions 23% 12% 12% 10% 5% 5% 4% 4% 4% 4% 3% 3% 3% 3% 2% 2% 1% Quicker Resp – 21% in 2013 Train/Empower 20% in 2013 © SFI International
  12. 12. No longer transaction based • One off sale – one call, one relationship opportunity • Profit driven comes from repeat relationships and business innovation that is line with the customer • Focus on the customer not money to drive bottom line improvements • Understand wants and needs to drive bottom line increases © Copyright SFI International 2010 © SFI International
  13. 13. Do we need to record Experiences? © SFI International
  14. 14. Building Relationship through Experiences What is CRM? Are we ready for VRM? © SFI International
  15. 15. CRM is not just a software system; - it is a business strategy Elements of relationship driven CRM: • Customer/consumer satisfaction driven, not complaints driven • Track consumer viewpoint just as readily as you track products on the shelf • Treat each other as people and develop relationships • Customer has chosen YOU already. © SFI International
  16. 16. What does Social Media Deliver? Spread the Word © SFI International
  17. 17. Case Management - Investigation Integrated Workflow Tools Systems that Talk to your Systems Reports to Effectively Data mine © SFI International
  18. 18. Case Management Systems - Holistic Process
  19. 19. Case Management Systems Build Links to: Deploy Capture Screens for: • Your Product & Sales systems • Case Management • Phone systems • Safety Incident Management • Documents Policies and Forms • Human Resources • HACCP Plans • Operations • SCM, ORM Plans • Environment and Strategic Risk • Supply Chain • Quality Assurance • Recall Process • Corrective Action • External or internal investigation systems • CRM (Customer Relations) • Reporting System • New Product Development • Knowledgebase • Others to suit the Business © SFI International
  20. 20. What are your Customers Looking for? Consumer Value Proposition • • • • • • • • • Knowledge/ Empowerment Empathy Listening/ Co Creation Honesty Apology Experience Brand awareness Ethical/Environment Relationships Customer Business Area Benefits • • • Traceability • • Tracking Profit Centre • • • • • Quality Assurance Improvements Corporate Compliance/Governance New Product Development Co-Creation /Reduced R&D Brand Purchase Boardroom engagement Systems in Sync People in Sync Reporting Relationship © SFI International
  21. 21. Reporting and Tacking Costs Site Investigation Log Corrective Action Plan Cost Savings © SFI International
  22. 22. Case Management Reports: - Executive Summaries Trends CPM Systemic Issues Root Cause Corrective Actions HACCP..etc 8000 Unproductive Contacts Sales & Distribution 6000 Packaging Non Food (eg Petcare accessories) 4000 Food Nesoto Corporate 2000 Communication & Marketing Artwork 0 NESCONFECT NESBEV CORPORATE NESFOOD NESTLEDAI NPP NESTLECHI NUTRI FOODSERVICNESTLECERNESNESPRES NPI 133786936 122462624 77408400 66949352 88545856 2004 74847048 85948752 121064632 110117400 121682360 102966904 131979536 Period 114489248 107133856 93876912 90905720 110414792 89290184 92608568 80802744 68935384 64655920 Sales 117454368 156891456 Incidents: 35,949 2005
  23. 23. Key Points to Remember - Summary • Transaction based Approach -out • Relationship and Experiences - hot • Innovation - in • Data Mining -in • Predictive Analytics-in • Boost Satisfaction and Resolution Levels to Create Bottom Line • Complaints are a gift that gives you the opportunity profit Going from a Cost Centre to a Profit Centre © SFI International
  24. 24. Key Points to Remember - Summary • Without CRM/VRM Focus no tracking of issue – product taken off shelves by regulators (eg Recall tracking) • Customers changed buying habits including pretailing (eg: on line options) • Cost to acquire new customers rather than meet needs of already loyal or advocate customers • Communication with an understanding who your customer is, what they want, when they want it and how they want is packaged • You are the value proposition for the company to keep that business Going from a Cost Centre to a Profit Centre © SFI International
  25. 25. Managing Consumer Relationships Effectively © SFI International
  26. 26. THANK YOU ‘Consumer dissatisfaction is the lack of fulfilment of a product or service determined by the outcome of the consumers expectation and /or the organisation brand promise The extent of the dissatisfaction will directly relate to the efficacy and currency of your resolution model Listen to your customer and enhance the experience for both parties so that you may obtain greater knowledge to assist in building those relationships that deliver advocacy so that you will enjoy viable brand strength and equity together’ Care CRM™ Case Management Systems © SFI International – Knowledge – Capability - Capacity

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