As part of our ongoing commitment to keep clients and candidates up to date with the latest market trends, Morgan McKinley hosted our latest project, change and strategy networking breakfast in May 2012.
Morgan McKinley Project, Change & Strategy Networking Breakfast, Sydney
IMPROVING CUSTOMER EXPERIENCEMAY 2012
INTRODUCTION. IMPROVING CUSTOMER EXPERIENCE: EVENT REPORT As part of our ongoing commitment to Richard is a partner in Bain & Company’s keep clients and candidates up to date Sydney office and a leader in Bain’s with the latest market trends, Morgan Global Customer Strategy and Marketing McKinley hosted our latest project, Practice. He has over 15 years’ consulting change and strategy networking breakfast experience across the UK, North America in May 2012. and Asia-Pacific and is an expert in customer loyalty and customer experience The event was held in the Establishment transformation. Ballroom, Sydney on the topical theme of ‘improving customer experience’ and Katrina currently leads the Customer was attended by 85 senior project Experience and Insights team at BT and strategy professionals in the Sydney Financial Group which is responsible for market. translating customer insights into action, to drive customer advocacy and customer Guest speakers were Richard Hatherall centricity. from Bain & Company and Katrina Barry from BT Financial Group.
MARKET TREND AND INSIGHTOver recent years we have seen anincreased focus on the customerexperience across most industry sectorsand this has only become morepronounced recent times. Many of ourclients are investing in specialist consultingadvice in this area which in turn is drivinglarge scale business transformationinitiatives. It has been an interesting shift toobserve with strategies being set with thecustomer in mind and specific projectsbeing created to deliver customer focusedbenefits these often look at all areas ofthe business from front end products andservices right through to the back officeprocessing to deliver added customerbenefits. Customer insights teams arecertainly a growth area and have movedaway from the traditional pure customerservice focus to a more strategicapproach. morganmckinley.com.au
THE NET PROMOTER SYSTEM®Richard HatherallBain & Co.Why understanding customer loyalty isa key strategic priorityBain & Co’s customer strategy teamfocuses on helping their clients to deliver abetter experience for customers. Thecompany has studied loyalty leaders forover twenty years and found that theyperform differentially better than theircompetitors for these reasons: Richard Hatherall from Bain & Company at the event. Loyalty leaders grow faster, because their customers spend more, stay longer and generate more referrals They have lower costs, because they spend less on acquiring customers, and less on resolving customer complaints and other issuesRichard outlined that many companies useaccounting/profit data or customer valuemetrics as tools for managing growth andloyalty. However, meaningfulmeasurement that focuses on customers’views is as important, but more difficult to morganmckinley.com.aumeasure.
THE NET PROMOTER SYSTEM® (cont’d)Bain & Co’s Net Promoter System® was Key elements to implementing the NPScreated to overcome this problem based on process:finding that companies which get realresults demonstrated three key techniques: Starting on the loyalty process means making sure their customers are at 1. Reliable, trusted metrics, with a deep least reasonably happy, or “satisfied” understanding of what it takes to Companies then need to differentiate create customer advocates, and the to create true advocates: Either by value that is generated as a result providing ordinary services delivered 2. Fast-cycle closed-loop feedback: this exceptionally, or by providing is a powerful catalyst which allows exceptional services delivered well learning from customers to be put into Harnessing the power of employees is action important: if products and services are 3. Unwavering strategic priority: building great, people will want to work in their “NPS is a simple measure of customer advocacy, which the customer into investment company correlates to business growth” decisions and ensuring that values Then, if employees enjoy the work and principles must consistently focus they do; serving customers, it makes on the customer. Leadership must them happy, which in turn encourages walk the talk as well as taking the talk. more people to want to come and work for the company. This ‘flywheel’ makes for profitable organic growth. morganmckinley.com.au
THE NET PROMOTER SYSTEM® (cont’d)Failing to understand the customerexperienceRichard also highlighted the typical reasonsfor failure which usually relate tomanagement’s lack of commitment; unclearcommunication about the change andunclear metrics.Change behaviours are important andconsequently so are incentives.Key Takeaway“Don’t underestimate the change requiredin the journey – it takes time, investment,planning, change management andcommitment over multiple years.” morganmckinley.com.au
THE CORPORATE CASE STUDY – DRIVING CUSTOMEREXPERIENCE, STRATEGY AND CULTUREKatrina BarryBT Financial GroupThe role of the customer experience BT Financial Group hires strategic,team in a corporate organisation commercial people into this team to ensure:BT Financial Group has an entire teamfocused on the need to understand The company listens and learns fromcustomer experience and insight. They its customers with rigour in order toknow it’s possible to have a great product create a compelling and positivebut for the experience to be less good – like customer experiencegoing to a Michelin starred restaurant and Insights and corresponding actions willeating an excellent meal with disappointing not only make customers happy, butservice from the staff. also drive the business’ strategy and bottom line resultsCustomer service = the basics of keepingpeople happyCustomer experience = the whole process Katrina Barry from BT Financial Group“It’s key that understanding customers ispart of a company’s strategy – if not thestrategy is likely to be flawed.” morganmckinley.com.au
DRIVING CUSTOMER EXPERIENCE, STRATEGY ANDCULTURE (cont’d)Understanding the customer experience 2. In their shoes – senior managersin practice spend time as customers, understanding both the journey theyBT Financial Group has two core customer go through, but also the process weexperience programmes: ask our staff to facilitate to deliver that journey 1. Insights Programme: focuses on 3. Employee jams – group problem developing genuine customer insights solving involving employees from from across the business and wider across the value chain industry to drive actions and improve 4. Customer relations experience – customer experience. involving staff first hand in front line 2. Customer Centricity Programme: A customer services which helps them series of integrated initiatives to work out first hand what the keys to ensure staff continue to experience success are and understand he customer and drive a customer centric culture Key takeaway:The Customer Centricity Programme has “Insights and feedback is worth nothingfour core initiatives to heighten staff unless time is spent on engagingawareness of customers: employees in this: keeping it both real and relevant to them.” 1. Customer insights forum every quarter – showcases real customer stories e.g. phone calls, videos, letters or clients come in and tell their story morganmckinley.com.au
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