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How to measure your customer experience


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How to measure your 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 “Voice of Customer” Company. • We offer companies with knowledge and tools to increase customer satisfaction, customer loyalty and additional sales. • We do this through real-time customized closed loop 2 feedback methodologies where we listen to the customers.
  3. 3. Today’s topics
  4. 4. Agenda • Why manage experiences? • Customer Experience Management (CEM) vs Customer Relationship Management (CRM) • How to be successful 4 • Case Study – Danske Bank • How to do it
  5. 5. Poll
  6. 6. Why manage experiences?
  7. 7. It is though out there! 58% say it is harder to make a reasonable profit, compared to 5 years ago th at ! s to cr ise l 7 an cia e Fin ad d th
  8. 8. How to remain successful • Staying on top is not easy – I.e. Mercedes, General Motors • Difficult to hide – I.e. Twitter, Facebook, Blogs, websites • Shopper help each other 8 – I.e., word of mouth, Google groups • That also count for small businesses – I.e. reviews by amateurs, ratings etc.
  9. 9. Your customers behaviour today ... What has changed over the past 5 years? • Customer’s behaviors! – Are spreading good experiences, rewarding good service; – Bad news are discussed more frequently due to easy access to new channels of communication; – Short-term relationship with brands with no bad conscience; 9 – No immediate emotional attachment; – Difficulty to forgive
  10. 10. 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 would change supplier if they had a bad customer experience, showed, 10 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
  11. 11. 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) 11 • 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)
  12. 12. Be distinct or be extinct 12 Idea sourced from Tom Peters
  13. 13. Interactions drives loyalty Lowest price or cost of ownership Superior products or services 13 High-quality interactions with people and systems Percent High Importance
  14. 14. Poll
  15. 15. Customer Customer Experience vs. Relationship Management Management
  16. 16. CRM to CEM • The right brained approach to Customer Management 16
  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 Important Purchased more products/services Special 17 Continued relationship about the same Frustrated Complained to a friend or colleague 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 18
  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 21
  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! 1. Well-trained and Helpful Employees 25 2. Excellent Customer Service 3. High-Quality Goods and Services 4. Friendly and Caring Employees 5. 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. Case study – Danske Bank Group
  29. 29. About Danske Bank • The Danske Bank Group is the largest financial enterprise in Denmark and one of the largest in the Nordic region. • The Group serves personal and business customers through banks with nationwide branch networks in oDenmark oSweden oNorway oNorthern Ireland oThe Republic of Ireland 29 oFinland oThe Baltic states. • In total, the Group serves 5 million retail customers and a significant number of public sector and institutional organizations. Some 2 million customers use the Bank's online services.
  30. 30. Why Danske Bank focus on CEM? • The culture of a company are very difficult to copy, because it is embedded in the people. It also makes it very difficult to change! – Internet and legislation generates more transparency in all markets. Products, prices, processes etc. can ‘easily’ be compared by customers and/or copied by competitors. • Danske Bank Group has developed and implemented one integrated analytical set-up for measuring customer satisfaction and attraction in the market. 30 – Customer Experience in the Moment Of Truth has a key role in this set-up. Other analysis covers other needs. – An important role for the Moment Of truth measurements are, that they function as a mirror, when reported back to each team on a quarterly basis. – The discussion is ‘no longer’ a conflict between headquarter opinions, branch managers former experience and the advisors first hand experience about a specific meeting. Now the bank looks forward based on the customers view, and on how to improve the next experiences.
  31. 31. Where is Danske Bank measuring? • Danske Bank is a multi channel bank. The customers interact with Danske Bank Group via various channels, medias and forums. • Danske Bank started implemented the Moment Of Truth measurements – In the channel with the most contacts (contact centers) 31 – And in the channel that created the biggest change (branches) – Other channels will follow
  32. 32. How Danske Bank is measuring? • “Moment of Truth” - measurements on specific interactions with customers – Ask as quickly as possible after the interaction – to have as ‘unpolluted’ answers as possible. – Use the data methodology that are most suitable for that specific area – to make it easy for the customers to answer, improve answering rate and keep it cost efficient. – Ask only questions related to the specific interaction, and only 32 questions that can and will be acted upon – to make it relevant. – Reported back to the people in the organization that can change the next Moment Of Truth - to make it make a difference. – Targets, benchmarks, change management tools etc. have been developed - to assist the right amount of focus. – Learn from the best, and follow up where needed – to secure the success.
  33. 33. What kind of results has been achieved?
  34. 34. Results: Actions can be targeted Did you get a better advice in the meeting than expected? Service experience on a scale of 0 to 100, where 100 is best 34
  35. 35. It is the individual team that can make a difference Development over time: Resume on all questions 35 Better service
  36. 36. Analyses to find drivers Service experience on a scale of 0 to 100, where 100 is best 36 Average amount of products offered
  37. 37. One important finding • It is not the surveys alone that makes results – The great leap forward comes when you measure AND work systematically with the results 37
  38. 38. Where Danske Bank is using TeleFaction • Danske Bank Group use TeleFaction in the whole process from data gathering, data structuring, analyzing, reporting, presenting and follow up. • Next steps in corporation with TeleFaction – Share leanings with other clients – From data to knowledge 38 – Prove Return on Behavior – Develop feedback management system for actions • More information – Andreas Wessel Knaack –
  39. 39. Some words on how to do that!
  40. 40. Obtaining info on customer needs • Surveys – Automated Telephone surveys – Mail – E-mail – Live Interview • Focus Groups • Customer Observation 40 • Market Research • Customer Complaints • Call Monitoring The KEY? It is never ending
  41. 41. 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 41 • 50 to 75% less expensive than follow up telephone interviews allowing for continual measurement
  42. 42. 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) 42 • Identify and highlight employees that delight customers
  43. 43. 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 43 – Benchmark scores with others – Frequency to meet management’s needs
  44. 44. Return on Behavior High Monitoring scores ≠ Customer Satisfaction • Service quality is not about internal compliance – It is about satisfying your customer 44 • It is the change in behavior that gives pay-off in terms of customer experiences
  45. 45. TeleFaction • Fredrik Abildtrup • • +45 5057 5070 • • 45 • Twitter: • Linkedin:
  46. 46. Backup slides
  47. 47. Polls • How frequent are you measuring your customer experience? – We are not – Daily – Quarterly – Bi-annual – Annually 47 • Is any portion of your pay or incentive based on the customer experience? – Yes – No
  48. 48. Polls • 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 48 • Are you measuring your customer satisfaction today? – Yes, on postal surveys – Yes, on postal, web, email surveys – Yes, on all channels including telephone – Yes, through other channels like panels, store interviews etc. – No, we are not
  49. 49. Developments in customer approach 49
  50. 50. Create a customer vision/strategy Knowledge of Customers How do we collect knowledge of our customers Customer Experience In which touch points? How do we ensure that customers get How do we use this knowledge? the same experience across all touch How can we enrich and increase our own knowledge points? On which level must the experience be consistent across all channels? Customer Value Which customers have which value? How do we measure it? Which customers will we attract, retain or develop? Which service will we provide the Integration defined segments? How do we share knowledge of our customers? 50 How do we plan and implement customer activities across the company? How close do we want to integrate ourselves with customers and partners? Balanced effort Customer Expectations How do we balance our efforts in relation to the When are the customer in touch with us and customers value? why? What effect does that have in our activities? How far Which expectations do they have and how do we will we go? live up to them? How do we focus on loyalty, retention, additional and How do we communicate with the customers? cross sales? What impact does customer satisfaction have on revenue and profit?
  51. 51. 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. 51 • These insights provide specific action points for management and individuals to secure revenue, retain customers and increase loyalty.
  52. 52. Measuring the customer experience and increasing customer loyalty, customer retention and customer acquisition in the process