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Breakaway Service Perf
 

Breakaway Service Perf

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    Breakaway Service Perf Breakaway Service Perf Presentation Transcript

    • Breakaway Service Performance Center for Information Based Competition Copyright ©CIBC
    • Customers Don’t Want Relationships… never have, never will… Voted – BEST SESSION at Largest Banking Conference in the World “This guy must have felt like Gandhi at a Soldier of Fortune rally. But he was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week” Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One) Copyright ©CIBC
    • Customer Service Basics Don’t want Relationships, but consistent human treatment… “Give me the best product, at the right price (not cheapest) and treat me like a human being in the process of selling and servicing that product” Copyright ©CIBC
    • What they remember… 1. Customers remember interactions 2. Specifically, how “human” they were… What Customers remember 30% Product/Price 30% …from Sales/Marketing 15% product/price Repair/Service 30% 70% …determined by Initiation/Installation 10% treatment during Billing 15% interactions 100% Bell Labs Scientists’ study of 300,000 customers Copyright ©CIBC
    • What they remember Resolving Problems Excellent Rating Average excellence ratings 51% Fix within 2 hours 81% Takes longer than 2 hours 74% Takes longer than a day 46% Fix within two hours, tell after 84% Fix within two hours, tell during 90% It’s not what “Westpac does”, but how what Westpac does… makes them feel AT&T/Bell Labs Copyright ©CIBC
    • The Human Interaction Factor 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Resources applied to Resources applied to Buying Influence of "Humanness" Buying Influence of "Humanness" "Humanness" of Interaction "Humanness" of Interaction of Interaction of Interaction Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly Top sales people don’t sell better, they treat better… Copyright ©CIBC
    • Human Touch as a Science 1. Behavioral - Identify Buying Emotions that most influence decision to choose one company over another Acknowledgement, Respect & Trust (ART) Acknowledgement, Respect Trust 2. Operational – 4 High Order Human Touch Sciences a) Communicate more humanly b) Execute as definable process c) Consistency across business functions d) Technology that humanizes, not dehumanizes Copyright ©CIBC
    • High-Order HT Communications High-Order 7 Steps of Customer Service (start & end is human, middle is business) 1. Thank you – recognize their effort & concern 2. Sorry - acknowledge emotion is valid 3. Listen carefully – collect/clarify facts 4. Fix problem now or come to agreement 5. Ask for suggestions – engage in solution 6. Administrative - log complaint & reimburse 7. Follow-up – ensure closure Wendy Eggleton Copyright ©CIBC
    • High-Order HT Processes High-Order Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint 1. Room service was slow 2. Room service deliverers had long waits for elevators 3. Houseman who supplied Maids w/linen tied up elevators 4. Linen shortage required them to steal from other floors 5. Initial hotel budget created linen shortage (2 years ago) 6. Decision to cut linens by Founder and CEO 7. Solution – ordered one more “parr” of linens Horst Schultze Copyright ©CIBC
    • High-Order HT Processes High-Order Human Touch and the Bottom line By studying human interactions as a process… • If fulfilled guests went from 92% to 97% over 2 years – 4 million room nights a year – If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy – +8% occupancy rate = $300 mil. in additional profit – $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction Copyright ©CIBC
    • High-Order HT Consistency Share Of Wallet Vs Relative Customer Value 100% Consistent High-Order Experience Elements % of Wallet Share 80% 60% Inconsistent High- 40% Order Elements 20% 0% 90% 1 95% 2 100% 3 130% 4 Relative Customer Value AT&T/Bell Labs Copyright ©CIBC
    • High-Order HT Consistency Actual Bank Likelihood to Recommend Model 1.0 0.9 0.8 Consistent High-Order Probability to Recommend 0.7 HT Elements 0.6 0.5 0.4 0.3 Inconsistent High- 0.2 0.1 Order Elements 0.0 1 2 3 4 5 6 7 Customer's Perception of Interaction Humanness AT&T/Bell Labs Copyright ©CIBC
    • High-Order HT Consistency Risk is that Westpac underestimates Competitor reaction to Customer Satisfaction gains Market Share and Customer Satisfaction 100% 100% Customer Satisfaction 90% 95% 80% Market Share 67% 70% 90% 61% 60% 50% 85% 40% 30% 80% 20% Year 1 Year 2 Customer Sat. 85% 95% Market Share 67% 61% AT&T/Bell Labs Copyright ©CIBC
    • High-Order HT Technology High-Order Fatal Technology Assumptions • We’ll “save money” by pushing customers to technology channels and lose nothing • A single view of the customer is not critical • Asking for personal info before trust is OK • Design w/o considering emotional content • Expecting they'll tolerate a few “bugs” • Design for our efficiency, convenience, and control and they won’t lose theirs • Design for task execution alone, not to enable more human interactions Copyright ©CIBC
    • The Employee Connection “Treat employees as you would have them treat customers” Humanizing Humanizing Profitable Behavior 80% How Behavior 70% how Behavior they treat / they treat/ Leadership how they are Employees “Decision to Customers treated Buy” Dehumanizing Dehumanizing Unprofitable Behavior Behavior Behavior Copyright ©CIBC
    • Treatment-Chain Economics Employee = Customer = Shareholder Fulfillment $49 90% % Fulfillment 85% Share Price $47 80% $45 75% $43 70% $41 65% 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Share price Employee Fulfillment Customer Fulfillment Based on 50,000 Employees, 6 business units, over 2-3 years Quarter lag on stock price
    • Achieving Breakaway +9% Rev. Performance 0-2% Exp. • 90% of Westpac change effort (SPP / Pinnacle / Reach / Red Power / Ask Once) is addressing 30% of buying influences (customers as consumers) • Westpac will get 70% of return by addressing the last 10% that impacts buying influences of customers as people (actual customer behavioural change: stay/buy more/tell others) • Therefore, need to hardwire “high-order human touch” elements into the evolution of change programs to drive a dominant leadership position Copyright ©CIBC
    • The Human Interaction Factor 100% 100% 90% 90% 80% 80% 70% 70% $25 Share Price ? 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Resources applied to Resources applied to Buying Influence of "Humanness" Buying Influence of "Humanness" "Humanness" of Interaction "Humanness" of Interaction of Interaction of Interaction Does your company have advantages in its DNA that are underexploited in becoming the entreprise with the “human touch”? Copyright ©CIBC