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Customer Experience Management

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Customer Experience Management – What it is, Why it matters, and How to begin

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Customer Experience Management

  1. 1. What it is, Why it matters, and How to begin Richard Randolph Florida Customer Service Institute
  2. 2. What if… Your Customers had to an admission fee for the privilege of shopping with you? What would you have to do to bring them in and keep them happily engaged while shopping?
  3. 3. ① What is CEX? ② Why Does it Matter? –The Economic Imperative ③ Key Ideas ④ Where To Begin ⑤ Action Tips ⑥ Next Steps Appendix: Resources
  4. 4. Welcome to the
  5. 5. : How well do experiences meet Customers’ needs? : How easy is it for Customers to do what they want to do? : How do Customers feel about the experiences?
  6. 6. LOGIC Rational Cause & Effect ‘Manufacturing’ Price-Driven Transactions The Head Feelings & Intuition Not Linear ‘Agriculture’ Not Price-Driven Experiences The Heart PEOPLE Customer-centric
  7. 7. Customers perceive service in their own unique, idiosyncratic, emotional, irrational, end-of-the-day, and totally human terms. ~ Tom Peters Perception is all there is.
  8. 8. Intentionally “Stage” Your Experience
  9. 9. It’s the sum total of the interactions that a Customer has with a company’s products, people, and processes. It goes from the moment when Customers see an advert to the moment when they accept delivery of a product and beyond. Sure, we want people to think our computers are great. However, what matters is the totality of customers’ experiences with us: talking with our call-center representatives, visiting our Web site, buying a PC, and owning a PC. The customer experience reflects all of those interactions. Richard Owen vice president of Dell online worldwide
  10. 10.  Increased Loyalty / LTV  Lower Acquisition Costs  Word of Mouth  Price Premiums  Lower Operating Costs
  11. 11. Attract new Customers Increase Customer Loyalty  More wallet share  Increase purchase frequency  Increase Lifetime Value  Reduce ‘Churn’ Increase referrals Block competition Why This Matters to You
  12. 12. 84% of executives believe their company has a good understan of how to serve Customers 57% of Customers rate overa service from “average” to “not meeting expectations” but...
  13. 13. 83% of executives said their companies have a solid understanding of their Customer’s experience 92% say they listen to and act on Customer feedback but... 45% of Customers say companies do not understand their experience 37% say companies do not listen to or act on their feedback
  14. 14. 80% of companies say they deliver “superior” customer service. 8% of Customers think these same companies deliver “superior” customer service. but...
  15. 15. 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. On average, loyal customers are worth up to 10 times as much as their first purchase.
  16. 16. In 2011, 86% of consumers quit doing business with a company because of a bad Customer experience.
  17. 17. 70% of buying experiences are based on how the Customer feels they are being treated.
  18. 18. People will forget what you said, they will forget what you did, but they will never forget how you make them ~ Maya Angelou .
  19. 19. The way to make advocates out of satisfied Customers is to strongly appeal to the Customers’ emotional needs.
  20. 20. 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience. 3 in 5 Americans would try a new brand or company for a better experience. 7 in 10 Americans said they were willing to spend more with companies they believe provide an excellent customer experience.
  21. 21. 5%-20% Probability of selling to a new prospect 60%-70% Probability of selling to an existing customer
  22. 22. Employees only ask for the customer’s name 21% of the time. Hint: The person has a name 100% of the time, and they like hearing it.
  23. 23. A person’s name is to that person the sweetest and most important sound in any language.
 ~ Dale Carnegie
  24. 24. 80% of Americans agree that smaller companies place a greater emphasis on Customer service than large businesses.
  25. 25. ‘We’re unable to answer your question. Please call xxx-xxx-xxxx to speak to a representative from xxx team.’ ‘We’re sorry, but we’re experiencing unusually heavy call volumes. You can hold or try back at another time.’ ‘Your call is important to us. Please continue to hold.’
  26. 26. ➟Customer Centric ➟Customer Lifetime Value ➟E T D B W ➟Journey Map / Touchpoints
  27. 27. Think like a Customer • How would you feel? Remember: It’s more about emotions (feelings) than logic! • The Company exists for the Customer – not the reverse! When was the last time you bought your company’s product?
  28. 28. Customers Are From Venus Companies are from Mars Your Customers Your Company  High company knowledge  High interest in topic  Egos  Internal Politics  Varied understanding of Customers  High self-interest  Immediate Needs  Wants  Desires  Interests  Barriers and blocks
  29. 29. 35 "I guarantee my plumber will show up on time and smell good or your house call is free!" -Mike Diamond Home to Southern California's famous Smell Good Plumbers. In addition to plumbing, our technicians are trained in the fields of drain cleaning, heating, air-conditioning and electrical work. We've been serving Los Angeles, Orange, San Bernardino and Ventura counties for over 30 years out of our numerous local service centers. Before we get any further, if you're in a jam and you need somebody at your place as soon as possible, click here or pick up the phone and dial 1-800-446-6453 (MIKE). Your call will be answered by a live person (we don't hire machines) 24- hours a day, 7-days a week. Welcome to Mike Diamond Online 6 See the world from your Customer’s point of view — think like a Customer!
  30. 30. The potential contribution of your Customers to your business over their lifetime. Add the value of referrals and word-of-mouth promotion. Customers are an ongoing str as opposed to a one-time sale. Knowing the Lifetime Value of your Customers is crucial.
  31. 31. Customer Effort From the customer’s standpoint, doing business with you is as effortless and inexpensive as possible.
  32. 32. Watch out for these signs, most are our own doing:  Repetitive procedures  Multitude of documents  Questions you already know the answers to  Customer run-around  “It’s company policy”
  33. 33. • Present a single face to your Customers – not sales, Customer service accounts, etc. – just your Company • Work in different ways for different customers – one size does not fit all! • Know what your Customers really want and anticipate their needs – if a Customer buys x will she also need y? • Let your Customers do more for themselves – let them input their own orders, check progress…
  34. 34. Going to the Movies Customer In Customer Out Park Car Wait in line to buy ticket Buy theater ticket Enter theater; Give ticket to taker Wait in line for popcorn and soda Go to restroom Go into theater; find seats Pay for food Exit theater, return to car Sit and watch movie Exit Parking Lot Actions before the transaction Actions after the transaction (includes follow-up and follow through) Cycle of Service with Moments of Truth
  35. 35. Touchpoints – any interaction between a Customer and your Company 3 Levels of Service 1. Processing – done TO you (any time there’s a line) 2. Service – Responsive, customized attention 3. Experience – Creates a memory
  36. 36. 1. Start With Your Employees! 2. Customer Experience Audit 3. Know Your Customers 4. Voice of the Customer 5. Customer ‘Bug’ List 6. Map Customer Touchpoints 7. Improve and Sustain
  37. 37. The Service Profit Chain
  38. 38. Customer experience depends on Employee experience You can design and create and build the most wonderful place in the world. But it takes people to make the dream a reality. ~ Walt Disney
  39. 39.  Your company’s experience for new and existing/returning Customers  Shop competitors / industry peers – how do you feel about their experience?  Benchmark against the very best – Amazon, Ritz-Carlton, Zappos Hint: Your Customers do!
  40. 40. 47 Experiences should be designed for individuals. 47You need to understand your Customers personally
  41. 41. Yes, you know more than your Customers — deal with it Educate your Customers Avoid jargon, acronyms and process steps Don’t “sell” things — help Customers buy them Look at all interactions as an opportunity to help Customers to do something
  42. 42. hat’s n t or e? People are infinitely self-interested!
  43. 43. Preferences Options Information needs What do they want that they can’t get now?
  44. 44. “Listening posts” • Needs – Basic: water, food, shelter – Situational: requires a product or service • Wants • Emotions / Expectations • Assumptions and stereotypes about you
  45. 45. Prepare for predictable questions Clarify Validate Respond Plus it What time is the three o’clock parade?
  46. 46. Exercise 1: What Are Your Customers’ Needs and Wants Instructions 1. Identify one ‘Basic’ need your Customers have 2. Identify one ‘Functional’ need your Customers have 3. Identify one ‘Want’ your Customers have 4. Identify one ‘Stereotype’ your Customers have about your industry Time: 5 minutes
  47. 47. ?What ‘bugs’ your Customers? ?How can you fix that?
  48. 48. 1. Generate a Customer “Bug” List internally (brainstorm with front-line Customer contact workers) 2. Prioritize according to Customer impact and contribution to Customer Value 3. Confirm with real Customers (questionnaires, interviews, focus groups) A simple list of things that “bug” your Customers about your business
  49. 49. What ‘Bugs’ Our Customers? Customer Expectations Our Goal“As Is” • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
  50. 50. Exercise 2: Start your own Customer ‘Bug’ List Instructions 1. Identify one thing that ‘bugs’ your Customers now 2. List Customer Expectations for that experience 3. Describe “what’s going on now” 4. Specify what “should be happening” Time: 5 minutes
  51. 51. Example: Open A Bank Account The Bank Branch Customer In Customer Out Park Car Enter Bank Ask for New Accounts Clerk Wait for New Accounts Clerk Meet Clerk; Explain needs and wants Fill out forms; Make first deposit Get temporary checks Clerk Explains Bank’s Services and Options Exit Bank Confirm understandings and expectations Exit Parking Lot
  52. 52. Exercise 3: Map Your Customer’s Touchpoints Instructions Identify meaningful steps (touchpoints) in your Customer’s interaction cycle with your company. Begin with the first contact. Finish when they leave. Time: 5 minutes
  53. 53. Analyze your Customers’ Moments of Truth MINUS FACTORS PLUS FACTORS MOMENT OF TRUTH CHART Park Car Difficult access into parking lot No spaces available; Only distant spaces available — long walk across trashy lot Visible signage directs Bank Customers to preferred parking Covered parking in clean, wide slots Easy access into parking lot Close spaces available Lot clean Spaces clearly marked Enter Bank Old, dirty signs Front entrance has debris Windows are dirty and covered with ads Clean, clear signs Front entrance clean professional and inviting Interior directional signs Clear signs Meet “Greeter” who directs Customers Child Care area available CUSTOMER EXPECTATIONS
  54. 54. Moment of Truth Chart Customer Expectations What do Customers think should happen? Plus Factors How can we delight Customers at this touchpoint? Minus Factors What might detract from the experience? • • • • • • • • • • • • • • • • • • • • • • • • • • •   
  55. 55. : How well do experiences meet Customers’ needs? : How easy is it for Customers to do what they want to do? : How do Customers feel about the experiences?
  56. 56. Exercise 4: Moment of Truth Analysis Instructions 1. Identify one Moment of Truth Touchpoint 2. List Customer Expectations for that Touchpoint 3. List two “Minus Factors” for that Touchpoint 4. List two “Plus Factors” for that Touchpoint Time: 5 minutes
  57. 57. Using your Customer-focused priorities and standards: 1. Measure the results: Do the improvements show up? 2. If not, fix it. 3. If yes, move to next items on your priority list — but confirm that the priorities have not changed! Follow Up and Follow Through Results Check-Up
  58. 58. Measure and track ‘Satisfaction’ 9 – 10 Promoters – Apostles 7 – 8 Passives – subject to competitors 0 – 6 Detractors – unprofitable range from “OK” to “Assassins” to “Ninjas”
  59. 59. ‘How likely is it that you would recommend my company to a friend or colleague?’
  60. 60. % of Promoters – % of Detractors = Net Promoter Score 94 84.7% 13 11.7% 4 3.6% 111 100% Promoters Passives Detractors Total The NPS is 81.1% (84.7% - 3.6% = 81.1%)
  61. 61. 1. Everything Speaks! 2. Be Consistent 3. Be Nice (Customers are Guests) 4. Simplify 5. Service Recovery Matters
  62. 62. Everything Speaks!
  63. 63. Everything Speaks!
  64. 64. Everything Speaks!
  65. 65. “I know what to expect” “Everything is going to be friendly and easy every time” • Visual / Sight • Sound Consistency is viewed by Customers as reliability, predictability, stability, and certainty which build confidence and trust. • Smell / fragrance • Touch / tactile
  66. 66. The Customer may not always be right – but she’s always our Customer! It’s not our fault – but it is our problem!
  67. 67. A typical business hears from 4% of its dissatisfied Customers. For every customer who bothers to complain, 26 other customers remain silent. • 1%-5% Complain to Management • 45% Complain to Agent/Branch/Front Line Rep • 50% Encounter a Problem But Don’t Complain
  68. 68. Customers who complain and are satisfied are up to 8% more loyal than if they had no problem at all. It is 6-7 times more expensive to acquire a new customer than to keep a current one.
  69. 69. Executives think only 20% of Customers share “bad news” about their experiences 87% of Customers tell others about their bad experiences – increasingly through instantaneous channels but...
  70. 70. Exercise 5: Your Action Plan Instructions Identify one Improvement Item for each of the five Action Areas Time: 5 minutes
  71. 71. 1. Start With “Why” 2. CEM Maturity Model 3. Be Authentic / Commit! 4. Resources / Continuing Study
  72. 72. 1. Don’t Know – Don’t Care! (and stop bothering me with this stuff!) 2. Aware – Don’t Know What To Do 3. Know What To Do – Working On It 4. Very Experienced and Capable
  73. 73. Be Authentic 94 Authenticity is all about being real. Genuine, not an imitation. A truly great person never reminds us of anyone else.
  74. 74. If you’re not committed to Remarkable Customer Experiences, you can only fool yourself. Be prepared to burn the ships!
  75. 75. When is the last time you were this joyful? And your Customers???

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