Measuring the Customer Experience


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Web-seminar about measuring the customer experience and increasing customer loyalty, customer retention and customer acquisition in the process.

Are you measuring the customer experience today?

Would you like to know how you can increase the value of your customer experience programs by utilizing proven and highly effective modern techniques?

Does your company have a significant inflow of customer respons - on the phone, through your websites and physical touchpoints?

Would you like to know how other companies have significantly increased their customer satisfaction, customer experience and loyalty by implementing a highly actionable methodology?

Is it interesting for you to experience how live customer listening posts can help you decrease churn/customer defection?

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Measuring the Customer Experience

  1. 1. Measuring the customer experience and increasing customer loyalty, customer retention and customer acquisition in the process Fredrik Abildtrup CEO @ TeleFaction A/S The Return on Behavior Company
  2. 2. About TeleFaction - What do we do? • TeleFaction is a global ―Voice of the Customer‖ Company offering real-time customized closed loop feedback methodologies. • Our core service is Return on Behavior®, a results- driven solution which translates objective customer data into actionable insights. 2 • These insights provide specific action points for management and individuals to secure revenue, retain customers and increase loyalty.
  3. 3. About TeleFaction - Offerings • Measurements on customer experiences – on telephone – email, web, – letters – and postal surveys • Coaching support 3 – Voice Coaching – Individual reporting • Knowledge web repository – to gather and present reports and recordings – provide actionable data – best practices and industry benchmark – Closed loop feedback management
  4. 4. Contact details • Fredrik Abildtrup • • Web site • 4 • Inspirational online magazine • /.de
  5. 5. Measuring the customer experience and increasing customer loyalty, customer retention and customer acquisition in the process
  6. 6. Topics • Why manage experiences? • CEM vs CRM • Measuring and how to be successful 6
  7. 7. Why manage experiences?
  8. 8. It is though out there! 58% say it is harder to make a reasonable profit, compared to 5 years ago Maturing Markets 8 The Global Ourselves Internet Trade Supply Chain Efficiencies
  9. 9. How to remain successful • Staying on top is not easy – I.e. Mercedes • Difficult to hide – I.e. Blogs, websites • Shopper help each other – I.e. 9 • That also count for small businesses – I.e. reviews by amateurs, ratings etc.
  10. 10. Your customers today are ... ...more critical and less loyal • Customers today have: – Less time – Zero tolerance for waiting time og lack of empowerment – More choices than ever before – 10 More buying power – High expectations and no patience – No problems changing vendors/supplier
  11. 11. The voice of the customer – why is this important? A big survey, In Customers Are People, shows, that 70 procent of the customers buying decision are based on how they feel they are being treated. Another survey shows, that 69% of the customers say, that emotions count for more than half of the total buying experience A survey conducted in Denmark, where the customers were asked if they 11 would change supplier if they had a bad customer experience, showed, that • 32% would change immidiately, • 67% would change if it happened again, and only • 1% would not change • A good customer experience are told to 8 others • A bad customer experience are told to 22 others • It takes 10 good experiences to make up for one bad
  12. 12. On which channels? • 92% of all customer interactions happen via the phone (Gartner) – 80 -90% transactions completed – 84% view Speech as equal to, or better than Web • 85% of consumers are dissatisfied with their phone experience (Gartner) 12 • Around 90% of unhappy customers will not buy again from a company that disappointed them • 68% of customers will switch brands based on a poor service experience (Gartner)
  13. 13. Be distinct or be extinct Operational Excellence 13 Product Leadership Customer Experience Idea sourced from Tom Peters
  14. 14. Interactions drives loyalty Lowest price or cost of ownership Superior products or 14 services High-quality interactions with people and systems Percent High Importance
  15. 15. Customer Customer Experience vs. Relationship Management Management
  16. 16. CRM to CEM • The right brained approach to Customer Management CEM CRM Left Brain Right Brain Enterprise’s Customers value to value to Enterprise customer 16 Systems and People and Transactions Transactions Functional Emotional Value Value
  17. 17. Build or destroy profits!!! • Memorable experiences can lead to customer actions that build—or destroy—profits Recommended to a friend or colleague Pleased Comfortable Praised a company representative Appreciated Purchased more products/services Important Special 17 Continued relationship about the same Complained to a friend or colleague Frustrated Let Down Complained to a company representative Angry Ignored Switched to new supplier/provider Confused Purchased less products/services
  18. 18. Customer Experience Management… …is or should be the execution of a customer centric business strategy Customer Centric Give customers what they want 18 Business Strategy Make money and beat the competition
  19. 19. Enterprise managers wear rose-colored glasses • Survey: – Companies Provide an Excellent Customer experience? 19 Net Agreement: Customer +4, Enterprises +34
  20. 20. How to be successful
  21. 21. To get success – be SMART Strategy for customer value Metrics to steer Alignment of people 21 Redesign of experiences Technology to optimize
  22. 22. Customer Value… • Companies see customer relationship value this way Profit Sales 22 Strategic fit Lifetime value
  23. 23. Customer Value… • Customers see the value differently Empowered Employees High-Quality 23 Rewards for loyalty Honest communication
  24. 24. Metrics – The steering wheel • Customer focus are visulized through the results of the measurements – The customer says that... – The customer experienced that... • Translate what you mean with customer satisfaction • Operationalize your vision through measurements 24 – And rememeber you get what you measure!!! • Primary areas to create instant results – Customer Satisfaction – Cross sales/Up sales – Operationalization of strategies and values – Retention of customers
  25. 25. People are the drivers • The Top 5 attributes of companies that deliver ‖Constantly Excellent Customer Experiences‖ The key ingredient: People! – Well-trained and Helpful Employees 25 – Excellent Customer Service – High-Quality Goods and Services – Friendly and Caring Employees – Personal Attention, Reward for Loyalty Source: Bob Thompson, CustomerThink Corp.
  26. 26. Redesign Experience • Customer experiences as parameter for success – Every contact with the company gives the customer a chance to evaluate if the experience have been bad / neutral / good – Over time these customer experiences will make a lasting 26 impression of the company’s values or the company as a brand – Act on the feedback of your customers experiences and reap the benefits of satiesfied customers
  27. 27. Use technology to optimize experiences • Assess the quality of customer experiences with telephone, online and contact center monitoring and measurement systems • Optimize marketing with analysis and campaign management systems to deliver relevant offers • Treat customers as individuals and reward their loyalty 27 • Provide tools to help employees be helpful and responsive, including sales coaching and support knowledge bases
  28. 28. Poll • Do you have a feed-back management process in place for Customer Satisfaction? – We are discussing it – Yes we have – Yes we have – it is IT supported – No 28
  29. 29. Some words on how to do that!
  30. 30. Obtaining info on customer needs • Surveys – Completely Automated Telephone surveys – Mail – E-mail – Live Interview • Focus Groups • Customer Observation 30 • Market Research • Customer Complaints • Call Monitoring The KEY? It is never ending
  31. 31. Taking Quality to the Next Level • You need to have customers evaluate the service delivery immediately after the interaction • ...the best solution is real-time customer feedback. – Eliminate the gap between service and evaluation – Too late to recover poor interactions – Enhances believability of results 31 • 50 to 75% less expensive than follow up telephone interviews allowing for continual measurement
  32. 32. Taking Quality to the Next Level • Respond to questions using telephone keypad or voice • Verbatims: capture caller suggestions for improvement – Verbatim comments – In the customer’s own words (capture the emotion) 32 • Identify and highlight employees that delight customers
  33. 33. Taking Quality to the Next Level • Receive alert of a dissatisfied caller! – Pro-actively prevent market damage – Service Recovery Opportunities – Detect Process and Procedure that are flawed • Frequent reporting of customer feedback – Daily, Monthly or quarterly, Fact analysis – Annual summary presentation 33 – Benchmark scores with others – Frequency to meet management’s needs
  34. 34. Return on Behavior High Monitoring scores ≠ Customer Satisfaction • Service quality is not about internal compliance – 34 It is about satisfying your customer • It is the change in behavior that gives pay-off in terms of customer experiences