Barriers to Customer-Centricity

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This is a presentation Alain Thys gave at the Fred Reichheld NPS Masterclass in Breda on May 10, 2012

It is part of a series of presentations on customer-centricity which are all linked to Alain's book "So You Want To Be Customer-Centric?"

Published in: Business, Education

Barriers to Customer-Centricity

  1. 1. FUTURELAB Breda May 10, 2012
  2. 2. On a mission to make the worlda more customer friendly place@FLB_alainthys FUTURELAB
  3. 3. FUTURELAB “Let’s go WOOOOOWW!!” “Let’s spread love & hug” “Let’s be like Disneyland”The problem I have always had with customer experience thinkingToo much fluffy stuff
  4. 4. The CEOFUTURELAB DilemmaThe problem I have always had with customer experience thinkingThe CEO dilemma: I get paid in Euros, not happy faces
  5. 5. FUTURELAB The same coffee beans Cost per cup The futures market (nov 2011) € 0.01 in a package at the grocery store € 0.075 at Nespresso € 0.40 in a paper/plastic cup from a machine € 1.00 from a machine in a theme park € 2.20 in a cup in a big city café € 2.50 at a deluxe restaurant € 5.00 during my honeymoon with a glass of I haven’t got a clue! 100 year old ArmagnacWhile I couldn’t translate it into ROIMy intuition told me something was there
  6. 6. FUTURELABClarity at last • First exposure at Philips • Deepdive into the Net Promoter® SystemAnd then came Fred • Heavy promoter of the approach.
  7. 7. Customers are important. Really, they’re important. They’re very very very important!So full of excitement that there was a business caseI became a customer evangelist
  8. 8. FUTURELABBut the world decided to surprise me …Every company (and employee) is customer-centric
  9. 9. 80% of CEO’s believe they offer a superior customer experience. 8% of their customers agree.The bad newsEven though Fred’s colleagues disagreed Source: Bain & Company
  10. 10. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talkSo I went digging for the reasonsThree key barriers to customer-centricity
  11. 11. FUTURELABFrom a business perspectiveCustomer experience gets managed “on top of” …
  12. 12. FUTURELABFrom a customer perspective“The experience IS the product” (Peter Merholz)
  13. 13. FUTURELABTo capture this money, we need a different perspective“The experience IS the product” (Peter Merholz)
  14. 14. FUTURELAB “You press the button, we do the rest” George EastmanFrom a customer perspective“The experience IS the product” (Peter Merholz)
  15. 15. FUTURELAB It just works This is cool! Famous for overpriced, underspec’d A low performance gaming devices with poor battery life. console with few titles.From a customer perspective“The experience IS the product” (Peter Merholz)
  16. 16. FUTURELABA real life caseTV’s bought on a Saturday have more detractors
  17. 17. FUTURELAB Going direct to create the right emotion at every touchpoint allows Nespresso to charge up to 4x the price of other high street brandsThe bottom lineThe one with the best TOTAL “experience” wins 17
  18. 18. There’s more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policy 25% more expensiveThe bottom lineThe one with the best TOTAL “experience” wins
  19. 19. FUTURELABOvercoming the barrierExperience doesn’t go “on top”, it IS the product
  20. 20. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talkSo I went digging for the reasonsThree key barriers to customer-centricity
  21. 21. FUTURELABThree key barriers to customer-centricityMost companies roll the dice on managing CX
  22. 22. FUTURELAB A Structured Approach30 second group brainstormWhich are the customer steps when going on a holiday? 22
  23. 23. FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories30 second group brainstormWhich are the customer steps when going on a holiday 23
  24. 24. FUTURELABWe show that we value ourcustomers by serving themwell, putting their needs andinterests at the center ofeverything we do.(from the AOL mission statement) Case: AOL Rolling the dice: extreme case
  25. 25. FUTURELABQuestion:Bademployee?Case: AOLIt ain’t over until the last employee/touchpoint is managed
  26. 26. FUTURELABAgain … this is not about ill willEvery employee on the planet cares about the customer
  27. 27. FUTURELABBut reality is that … • No customer contact • Misaligned KPI’sThe business gets in the way • Internal inefficiency cuts time
  28. 28. FUTURELAB 90% 50% 30% Source: Bupa International, 2009 10% 5% Collect Alert Staff Make Deploy Inform Customer to Findings decisions improve customers Feedback using of change insights“Most businesses are optimised for themselves,not for the customer.” Geert Van Kuyck, CMO Philips
  29. 29. FUTURELAB The REAL customer experience 62% of US/UK consumers believe that the quality of service depends on whoever serves them.If you don’t manage the whole experience, you roll the dice.Any disconnect can break your business
  30. 30. FUTURELAB • 6 month delivery delay • Wife gets insulted • Threat to cancel = car appears • Sunroof doesn’t open (but that’s normal) • Loaner car is dirty 2nd hand car at 1/3 price • Invoicing is a mess • … • While they keep mailing you promotionsIf you don’t manage the whole experience, you roll the dice.One brand, two dealers…
  31. 31. FUTURELABOvercoming the barrierDon’t roll the dice, but manage “every” touchpoint
  32. 32. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talkSo I went digging for the reasonsThree key barriers to customer-centricity
  33. 33. THE CUSTOMER IS AT THE CENTRE EVERYTHING WE DO! Our satisfaction numbers matter! Do what is right for the customer! Let’s have an off-site workshop! Let’s have a customer day!Leadership not walking the talkMany executives say they want to be customer-centric
  34. 34. THE CUSTOMER IS THE LAST THING WE TALK OR THINK ABOUT. I know the product is outdated, but push it, we need to hit the quarterly numbers Can’t we replace our call-centre with an IVR. All these people cost money! Can we lock accounts into only buying their service support from us? I don’t have time to meet with customers. “I’m out of here in 2 years anyway”Leadership not walking the talkBut their behaviour says something else
  35. 35. Customer oriented behaviour = headache Grab the money/process focus = easier silo life, career, bonus, …People copy behaviours, not wordsThe organisation will learn fast
  36. 36. FUTURELABWould you recommend the bank to friends /family?32% No 28% conditionallyWould you recommend the bank as an employer?39% No 30% Yes N=25,000 (out of 59,000)But they don’t lose their common sense.And before you know it, you’ve got a problem
  37. 37. FUTURELAB “you know what those idiots did at work”?Are you really setting the example, or your talking about the customer? 1 employee 1st degree: 150Would your people recommend? Act? 2nd degree: 22,500
  38. 38. FUTURELABLeadership not walking the talkWhat is really required.
  39. 39. Overcoming the barrierDon’t talk about the customer … set the example
  40. 40. FUTURELAB • Realise that the experience is the product • Manage every single touchpoint • Be prepared to walk the customer talkTo concludeOvercome the barriers in your business
  41. 41. FUTURELABAnd finallyWhat is the “one thing” you will do?
  42. 42. Twitter: @FLB_alainthys FUTURELAB
  43. 43. FUTURELABThank you …And now comes Fred

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