Treating Employees as Customers - ICMI @ Dreamforce 2010 Handout - John Goodman

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Treating Employees as Customers - ICMI @ Dreamforce 2010 Handout - John Goodman

  1. 1. Treating Employees as Customersto Reduce Frustration and IncreaseSuccess Dreamforce December 8, 2010 12:15 - 1:15PM by John Goodman, Vice ChairmanChallenge to Developers• Eliminate unpleasant surprises• Enhance first level resolution• Give employees clear believable explanations• Aggressively get feedback and acknowledge it• Empower the customer to manage their overall customer experience• Make technology either transparent or a delighter for both customers and employees• Create emotional connection 2 1
  2. 2. Agenda • What causes frustration and extra cost? Problems and the inability to resolve them. • Solution – reduce problems and increase success. • Strategy: – Reduce problems by setting proper expectations – Quantify the revenue and word of mouth damage to get resources – Create an effective Voice of the Customer – Make your front line successful with flexibility, clear explanations and positive incentives – Use technology to deliver psychic pizza 3About TARP• Founded in 1971—39 years of customer experience leadership – White House Complaint Studies 1970s-80s (instigated 800#s and GE Answer Center) – Assisted 6 Baldrige Winners and 43 Fortune 100 Companies – Initiated concept of ―word of mouth‖ (TARP/Coca-Cola 1978 Study) and ―word of mouse‖ (eCare and Click & Mortar studies 1999)• Offices in Wash., D.C.• Credited with developing the approach for quantifying the impact of quality on revenue, cost & WOM for companies like Neiman Marcus, Toyota/Lexus, Hyundai, USAA, Cisco Systems, Xerox, 3M, Moen, IBM, Intelligence Community, Qualcomm, Ritz Carlton, Whirlpool, Museum of Modern Art, USO and Chick-Fil-A. 4 2
  3. 3. Formula For Maximizing Customer Satisfaction DOING EFFECTIVE MAXIMUM THE RIGHT CUSTOMER JOB RIGHT THE + CONTACT = CUSTOMER SATISFACTION MANAGEMENT & LOYALTY FIRST TIME Respond to Individual Customers Customers, donors, citizens will: Improved Identify Sources Use again Product & Service of Dissatisfaction Use or donate more Quality Tell others to use or donate Conduct Root Try your other products & Cause Analysis services Feedback on Prevention 5 Firefighting Mode 6 3
  4. 4. Riding the Wave of Customer Experience Management: Six Big Ideas1. Staff doesn’t cause most customer dissatisfaction – sales, products, processes and customers do2. It is cheaper to give great service than just good service, the revenue payoff is 10-20X the cost3. An effective Voice of the Customer includes all kinds of data describing the overall customer experience4. People are still paramount – make the front line successful with flexibility and clear explanations5. Deliver technology that customers will enjoy – delivering psychic pizza via any channel6. Sensibly create remarkable delight 7Employees Do Not Cause Most Customer Dissatisfaction The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes* Customer expectations Customer Employee must be set and they must 20%-30% 20% be educated on how - Wrong expectations- Fails to follow -Fails to follow to avoid problems - Customer error policy and surprises. policy -Attitude At least Company 40%-60% Poorly designed products, 30% of - Products and services Processes, and marketing contacts are don’t meet expectations create most unmet preventable - Marketing miscommunication expectations. Further, - Broken processes employees are often not equipped with effective *Finding based upon TARP analysis problem cause responses to problems. data in over 200 consumer and B2B environments. 8 4
  5. 5. Assuring You Are Easy to Do Business With?• Can easily find where to go to get need fulfilled• Easily get access to source of answer• Eliminate bureaucracy• Answer completely fulfills need including anticipating next need• Follow-through happens as expected and is confirmed 9Customer Expectation: Key Factors DrivingSatisfaction• No Unpleasant Surprises• If Trouble Encountered – Accessibility, Taking ownership, Apology – Clear, believable explanation – Creating an emotional connection rather than just courtesy – Money is often not the best solution – Timeliness and Keeping promises• Handle on First Contact Results in 10% Higher Satisfaction and 50% Lower Cost 10 5
  6. 6. TARP’s Tip Of the IcebergWhy customersand employeesdon’t complain:• Hopelessness• Fear• Don’t knowwhereWhat you don’thear aboutoften does themost damage 111. Prevent Problems By Setting Proper Expectations• Understand who the customer is• Welcome packages and calls• Encourage questions before customers get into trouble• Confirmations/Progress reports Who has proactive education successes? 12 6
  7. 7. 2. Make the Support Center the Focal Point of the Voice of the Customer on Customer Experience • Customer surveys • Customer contact and interaction data • Internal operations process, quality data • Employee input • Together, these elements can identify opportunities and give employees a feeling of control Surveys of Customer Internal process customer + + = Total view of the contact and and quality data customersatisfaction and interaction data and employee loyalty experience input Take The Role Of Chief Customer Officer 133. Get More Resources for the Support Center Demonstrating cost of less than perfect support to the CFO, CMO and the General Counsel x x x 50% Most Satisfied Repurchasing = 2,000 25% 30% Some Not Complain Mollified Repurchasing = 6,000 200,000 Customers 20% Many Not with Dissatisfied Repurchasing = 9,000 Problems 75% Do Not Some Not Complain Repurchasing = 37,500 Total Customers At Risk = 54,500 At $1,000 per customer, $54.5 million at riskThree strategies: Prevention, Solicitation of Complaints and Improved Response 14 7
  8. 8. Finance Wants Higher MarginsPercent of customers dissatisfied with fees rises with number of problems. 90% 80% 74% 70% 60% 46% 50% 40% 30% 22% 20% 10% 10% 0% No problems 1 problem 2 to 5 problems 6 problems or more 154. Create A Culture of Success• Stellar Leaders and Culture Are Great, But..• Tools – issue driven flexible solution spaces – believable explanations – supported by tools and information on customer situation• Training – ongoing training and story telling• Motivation – celebration via victory sessions & promotability 16 8
  9. 9. Impact of Satisfaction on Employee Loyalty • The impact of satisfaction on willingness to continue to work for ABC indicates a need for employees to be very satisfied with the company. Less than half of employees report to be very satisfied. Overall satisfaction % definitely continue to with ABC work for ABC Company (% of employees) (% of employees) Very Satisfied1 Very satisfied 1 = 84% (48%) (49%) 57 point drop ABC company Somewhat Satisfied2 Satisfied2 (33%) = 27% employees (39%) Neutral to very dissatisfied3 = 8% (14%)1Top box2Second box3Bottom three boxes 17Impact of Problem Experience on Employee Loyalty • An employee who has a problem, contacts, and is satisfied with how that problem was handled is more loyal and more motivated than someone who never had a problem to begin with. IV Market I II impact III Question/ Contact % Definitely Contact problem behavior continue to handling experience work for % Extremely ABC motivated No problem 59% 40% experience Satisfied1 20% 67% 52% 11% Employees Mollified2 Contactors 49% 33% 43% 79% Problem Dissatisfied3 experience* 37% 36% 46% 80% Non-*In the past 6 months contactors 62% 34%1Top box2Middle two boxes 21%3Bottom two boxes 18 9
  10. 10. Quantify Employee at Risk by Type of Problems • As many as 17% of ABC employees might not continue to work at ABC due to problems. • Issues of most concern to employees have to do with servicing clients. Overall % % % Not likely to % experiencing Problem work for ABC Potentially any problem Most serious problem category frequency* in the future** at risk Servicing clients 45% 11% 8.0% Information/internal communication 22% 20% 3.5% Work environment 20% 32% 2.3% 80% Performance, leadership, and growth 16% 17% 2.2% Other 7% 25% 1.4% TOTAL EMPLOYEES AT RISK 17.4% TARP Paper: Treating employees as customers * Based on most serious problem ** All employees excluding ―definitely‖ and ―probably will―continue to work for ABC in the future. Note that analysis by job title was not possible due to a resulting low N size. 19Employees At Risk—Most Damaging Problems • Servicing clients and getting needed training are biggest frustrations: % frequency % somewhat of all or very at Specific problem problems risk Servicing Clients I have to call multiple times to get something done 40 6.7% Other departments do not follow through on promises made 19 4.1% I only get voice mail when calling other parts of the company 26 3.7% Information/Internal Communication Communication within the branch not effective 30 7.7% Conflicts not surfaced openly within my branch 22 5.3% Management objectives not communicated in a timely manner 16 4.6% Work Environment No/limited initial training on client service 22 9.5% Hard to get things done within my branch 16 5.0% No/limited opportunities to receive ongoing training 16 4.6%* Multiple response variable 20 10
  11. 11. Identification of Issues Requiring ImprovedResponse Rules and Processes Problem reports % Loyal (Top 2 Box) # Contacts Routine order 98 1.1 Shipment status 91 1.2 Product return 93 2.1 Shipping charges 88 2.1 Backorder status * 67 3.3 Call center overall average 91 1.9 Transaction which is biggest opportunity for improvement Misuse of resources to intensively measure this transactionTARP Paper: Your monitoring and coaching may be doing more damage than good 21Herman ―We’ve lost your stuff, but you get first choice of any bag off Flight 601 from Athens.‖ 22 11
  12. 12. Provide Tools to Assure Action, Address PolicyIssues and Cross-sell• Auto-edits to save employees and customers from errors• Desktop tools – auto implementation – ― It has been done!‖• SLAs to create confidence in back office• Ability to set proper expectations for completion• Time to address policy and process issues and education on how to avoid in the future - delighter• Ability to make input to Voice of the Customer – plop in front of the desk 235. Deliver Technology People Enjoy• Why people hate technology – Wastes my time – Gets in the way – phone trees• Why they love it – Anticipates – Simplifies• Delivering psychic pizza 24 12
  13. 13. Get Customer to Right Place First Time: Print theMenu Where You Print the Phone Number Support Phone Matrix (800) ASK-4-WDC Press 1 Press 2 Press 3 Press 4 for Automated Faxback General Sales Technical Information Literature Information Support Press 1 Press 1 Press 1 Press 4 Feedback Ad RMA Hard Drive Responses Status Controllers20% increaseIn both compliance Press 2 Literature Press 2 Sales Press 2 Drives Press 5 VideoAnd satisfaction Information Press 3 Press 3 Press 6 Online PCI SCSI Other Services 256. Delight: Heroics and Constantly ExceedingExpectations is NOT Necessary Or Even Smart Average lift to repurchase or Delight experience recommend (Top Box) Service beyond expectation - heroics 12%-14% No unpleasant surprises 22% Friendly 90-second staff interaction 25% Personal relationship over months 26% Tell me of new product or service I 30% can really use Proactively provide information on 32% how to avoid problems or get more out of your product 26 13
  14. 14. Ten Myths About Service Existing in Most Companies 1. Always exceed customer expectations 2. Answering the phone really fast is the key to success 3. People always prefer talking to people 4. The customer is always right 5. Complaints are down, things are getting better 6. Employees are the cause of most dissatisfaction 7. Price and cost cutting is the key to success 8. We’re at 90% satisfaction – let’s declare victory! 9. Measure Net Promoter and we’re done 10. We have a 100% satisfaction guarantee – everyone is happy. TARP Paper: Marketing myths and service slips 27 Challenge to Developers • Eliminate unpleasant surprises • Enhance first level resolution • Feed employees clear believable explanations • Aggressively get feedback and acknowledge it • Empower customers to manage their overall customer experience • Make technology either transparent or a delighter for both customers and employees • Create emotional connection 28 14
  15. 15. Evaluate Your Employee Success Factors Grade 1-10 Grade Marketing responsible for setting proper expectations for major products Overtly warn customers about problems Create a VOC allowing understanding of end-to- end experience & non-complaint rate by issue Quantify revenue left on table, cost and WOM impact by issue Create flexible solutions for top 5 tough issues Provide staff with clear explanations SLAs exist with support and marketing units Lead customers to self service via education Use technology to deliver psychic pizza Continuously celebrate all employees doing things right Total _____ If below 75 – you’re wasting at least 15% of your support budget 29 Summary • Aggressively ask for frustrations and time wasters • Eliminate unpleasant surprises • Quantify the revenue cost of frustrations and touches by type of issue at employee and customer level • Deliver psychic pizza to reduce workload • Use dead time to delight • Practice continuous experimentation accompanied by measurement • Outlined in detail in Strategic Customer Service published by AMACOM • jgoodman@tarp.com or 703-284-9253 30 15

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