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Cognizant CRM Insights




      Taking a True Measure of Customer Experience

                 By Tom Woodson
                 As every marketer should know by now, it is         The Role of the Customer Experience
                 critical that customers have a positive             Team
                 experience when interacting with their
                 companies. A few years after the advent of Web      Traditionally, marketing managers collect
                 2.0, consumers are more powerful than ever, and     customer satisfaction data and then find ways to
                 any company that ignores their preferences puts     make the numbers look good. Instead, they should
                 its existence at risk. Many organizations,          conduct root cause analysis and take corrective
                 therefore, are implementing Customer                action. But this rarely happens due to a lack of
                 Experience Management (CEM) tools and               time and training. Having a dedicated Customer
                 techniques to better understand their               Experience team can help overcome this. This
                 customers.                                          team is charged with pulling customer satisfaction
                                                                     data from all parts of the organization and
                Unfortunately, most companies that measure           reporting on trends to executive management and
                customer satisfaction do so departmentally           to the rest of the company. What this reveals is an
                               rather than at the enterprise         enterprise view, identifying common issues across
         Institutionalizing level. With this approach, no one        channels -- however customers interact with your
                               in the organization is responsible    organization.
the tracking of customer
                               for customer experience. To take
 satisfaction helps cut to a true measure of customer                The Customer Experience team sets standards
  the heart of what truly experience requires dedicating a           for reporting so meaningful comparisons can be
                                                                     made among channels and modes of interaction.
 makes customers happy team specifically to that
                               purpose. The role of the              If you can resolve the root cause issues, your
 and keeps them coming                                               customer satisfaction scores will rise. That is a
                               Customer Experience team is to
            back for more. evaluate customer experience              core premise, and one that we have seen borne
                               holistically, across channels and     out in our work with clients. Another important
                departments, taking ownership of customer            function of the Customer Experience team is to
                perception and satisfaction.                         watch metrics for any sign of an actionable trend
                                                                     (whether positive or negative) so they can
                 Institutionalizing the tracking of customer         respond.
                 satisfaction helps cut to the heart of what truly
                 makes customers happy and keeps them coming         For example, a Cognizant customer introduced a
                 back for more.                                      third-party call center to handle certain types of




                                                                       CRM Insights
customer transaction calls. However, the third-         The team also monitors social networking sites
               party personnel did not have adequate training on       such as Facebook, Twitter and online
               how to handle these calls. Transactional surveys        communities and blogs so the company is aware
               conducted immediately after calls of this type          of what customers are saying outside the
               indicated that customers were not pleased with          company, as well as within the official channels,
               the service they had received. Instead of rating        and can take action if necessary.
                                their own satisfaction as high (at
   With a Fortune 500-size level 4 or 5 out of 5), customers           A recent example from the grocery industry
   company, the Customer consistently             rated      their     made headlines when the CEO of one company
                                satisfaction in the 1’s and 2’s.       made disparaging remarks about a health food
     Experience team might                                             chain in blogs and on social networking sites.
comprise a full-time staff of      In addition, the company            The company being attacked took action as soon
two to 10 people, depending        offered customers the opportu-      as the commenter’s hidden agenda and rival
     on how many channels          nity to participate in surveys on   status was revealed. It can be difficult to
                                   its Web site. These surveys also    determine whether or not the people
they’re monitoring and how         indicated customer displeasure      commenting have a hidden agenda.
   many vertical industries        with the third-party call center,
       the company serves.         establishing a negative cus-        Of course, even if they do, your response must
                                   tomer experience trend. Social      be measured and authentic or you risk
                  media sites were a third source of feedback. Put     increasing the damage. This is another reason to
                  together, the customer experience data culled        establish a team (or an individual on that team)
                  from the different sources strongly indicated        to track all forms of social media for trends and
                  unhappiness stemming from the root cause of          customer comments. Every company is just one
                  poor performance by the call center provider.        bad YouTube video away from a firestorm.
                                                                       Domino’s Pizza discovered this recently as video
               The company took corrective action by doing             came to light of employees handling pizza in a
               remedial training with the call center provider         non-hygienic manner. Your brand can be ruined
               and building an escalation path that enabled            overnight by malicious activity or plain-old bad
               improvement of first-call resolution. The               PR. This type of event can tank your customers’
               customer satisfaction trendline has since               satisfaction levels just as rapidly as a product
               changed from decreasing to increasing. Had the          recall or other major issue.
               company had a Customer Experience team
                                poised to act on the first
                                                                       Who’s Onboard?
        A chief task of the indication of a drop in
                                customer attitudes, it would           With a Fortune 500-size company, the Customer
Customer Experience team
                                have likely been able to turn          Experience team might comprise a full-time staff
   is to establish common the situation around more                    of two to 10 people, depending on how many
  processes and customer quickly.                                      channels they’re monitoring and how many
satisfaction metrics across                                            vertical industries the company serves.
                                    By     monitoring     customer
   the enterprise, including        interactions and trends in         Depending on the number of interactions and
    standard categorization         customer sat scores, the           channels, the team might include a few part-time
  of customer interactions.         Customer Experience team           staff members, as well. The most important
                                    could take corrective action       thing is to have a leader with a vision. The other
                  faster to stem the tide of dissatisfaction. Most     roles include a governance control person who
                  companies -- even the largest ones -- do not share   brings in a governance board (executive leaders
                  customer satisfaction data across the                from      different   areas)    and      part-time
                  organization. So, for example, personnel from the    representatives from senior leadership across
                  in-house call center might well be aware of          the corporation. Likely, checking the social
                  mounting customer dissatisfaction long before its    networking sites will require at least one full-
                  Web team. The Customer Experience team has           time person (perhaps a recent college graduate
                  visibility into leading indicators across all        with intimate knowledge of the ways of the Web).
                  interaction channels, so it can see trends that
                  need attention sooner, as opposed to minor blips.    A chief task of the Customer Experience team is
                                                                       to establish common processes and customer




                                                      CRM Insights       2
satisfaction metrics across the enterprise,                                                 In today’s fast-moving world, the tide of
           including standard categorization of customer                                               customer opinion changes rapidly. Staying
           interactions.                                                                               abreast of customer satisfaction with enough
                                                                                                       time to take corrective action
           For example, relationship surveys (in which                                                 requires an enterprise view. Having a central team
           selected customers are asked about their                                                    Leaving the task of measuring control the surveying
           feelings toward the company) are one way to                                                 customer satisfaction to process both boosts
           measure customer satisfaction. In this case, you                                            individual     channels     and
           have common survey questions across all your
                                                                                                                                        response rates and protects
                                                                                                       verticals increases your risk of
           different input channels. Transactional surveys                                             not being able to respond in against “survey fatigue”
           (in which customers are polled immediately                                                  time. Having a Customer on the part of customers.
           following a transaction) are another important                                              Experience team helps you
           avenue. It is a best practice to have the team                                              keep a close watch on customer satisfaction
           review both types of survey instruments,                                                    trends across channels and product lines and
           ensuring they follow enterprise standards, are                                              decreases your risk of one day finding your
           statistically relevant and are not excessively                                              customers have gone elsewhere.
           long. Having a central team control the
           surveying process both boosts response rates
           and protects against “survey fatigue” on the
           part of customers.



           About the Author
           Tom Woodson is a Senior CRM Strategist within the Customer Solutions Practice at Cognizant. With
           over 20 years of CRM experience, Tom brings insight and experience to designing CRM systems (sales,
           service and marketing) with measurable business benefits in mind. He has successfully delivered
           multiple CRM projects through the full SDLC lifecycle and has expertise in CRM Application Functional
           Architecture, business process design and re-design, organizational change management and training.
           Tom has recently focused on customer experience management. He can be reached at
           Tom.Woodson@cognizant.com.




            About Cognizant
            Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting and business
            process outsourcing services. Cognizant's single-minded passion is to dedicate our global technology and
            innovation know-how, our industry expertise and worldwide resources to working together with clients to
            make their businesses stronger. With over 50 global delivery centers and 64,000 employees as of June
            30, 2009, we combine a unique onsite/offsite delivery model infused by a distinct culture of customer sat-
            isfaction. A member of the NASDAQ-100 Index and S&P 500 Index, Cognizant is a Forbes Global 2000 com-
            pany and a member of the Fortune 1000 and is ranked among the top information technology companies
            in BusinessWeek's, Hot Growth and Top 50 Performers listings.

            Start Today
            For more information on how to drive your business results with Cognizant, contact us at
            inquiry@cognizant.com or visit our website at www.cognizant.com.


                                                                                             World Headquarters                       European Headquarters                     India Operations Headquarters
                                                                                             500 Frank W. Burr Blvd.                  Haymarket House                           #5/535, Old Mahabalipuram Road
                                                                                             Teaneck, NJ 07666 USA                    28-29 Haymarket                           Okkiyam Pettai, Thoraipakkam
                                                                                             Phone: +1 201 801 0233                   London SW1Y 4SP UK                        Chennai, 600 096 India
                                                                                             Fax: +1 201 801 0243                     Phone: +44 (0) 20 7321 4888               Phone: +91 (0) 44 4209 6000
                                                                                             Toll Free: +1 888 937 3277               Fax: +44 (0) 20 7321 4890                 Fax: +91 (0) 44 4209 6060
                                                                                             Email: inquiry@cognizant.com             Email: infouk@cognizant.com               Email: inquiryindia@cognizant.com


© Copyright 2009, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.

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Taking a True Measure of Customer Experience

  • 1. Cognizant CRM Insights Taking a True Measure of Customer Experience By Tom Woodson As every marketer should know by now, it is The Role of the Customer Experience critical that customers have a positive Team experience when interacting with their companies. A few years after the advent of Web Traditionally, marketing managers collect 2.0, consumers are more powerful than ever, and customer satisfaction data and then find ways to any company that ignores their preferences puts make the numbers look good. Instead, they should its existence at risk. Many organizations, conduct root cause analysis and take corrective therefore, are implementing Customer action. But this rarely happens due to a lack of Experience Management (CEM) tools and time and training. Having a dedicated Customer techniques to better understand their Experience team can help overcome this. This customers. team is charged with pulling customer satisfaction data from all parts of the organization and Unfortunately, most companies that measure reporting on trends to executive management and customer satisfaction do so departmentally to the rest of the company. What this reveals is an rather than at the enterprise enterprise view, identifying common issues across Institutionalizing level. With this approach, no one channels -- however customers interact with your in the organization is responsible organization. the tracking of customer for customer experience. To take satisfaction helps cut to a true measure of customer The Customer Experience team sets standards the heart of what truly experience requires dedicating a for reporting so meaningful comparisons can be made among channels and modes of interaction. makes customers happy team specifically to that purpose. The role of the If you can resolve the root cause issues, your and keeps them coming customer satisfaction scores will rise. That is a Customer Experience team is to back for more. evaluate customer experience core premise, and one that we have seen borne holistically, across channels and out in our work with clients. Another important departments, taking ownership of customer function of the Customer Experience team is to perception and satisfaction. watch metrics for any sign of an actionable trend (whether positive or negative) so they can Institutionalizing the tracking of customer respond. satisfaction helps cut to the heart of what truly makes customers happy and keeps them coming For example, a Cognizant customer introduced a back for more. third-party call center to handle certain types of CRM Insights
  • 2. customer transaction calls. However, the third- The team also monitors social networking sites party personnel did not have adequate training on such as Facebook, Twitter and online how to handle these calls. Transactional surveys communities and blogs so the company is aware conducted immediately after calls of this type of what customers are saying outside the indicated that customers were not pleased with company, as well as within the official channels, the service they had received. Instead of rating and can take action if necessary. their own satisfaction as high (at With a Fortune 500-size level 4 or 5 out of 5), customers A recent example from the grocery industry company, the Customer consistently rated their made headlines when the CEO of one company satisfaction in the 1’s and 2’s. made disparaging remarks about a health food Experience team might chain in blogs and on social networking sites. comprise a full-time staff of In addition, the company The company being attacked took action as soon two to 10 people, depending offered customers the opportu- as the commenter’s hidden agenda and rival on how many channels nity to participate in surveys on status was revealed. It can be difficult to its Web site. These surveys also determine whether or not the people they’re monitoring and how indicated customer displeasure commenting have a hidden agenda. many vertical industries with the third-party call center, the company serves. establishing a negative cus- Of course, even if they do, your response must tomer experience trend. Social be measured and authentic or you risk media sites were a third source of feedback. Put increasing the damage. This is another reason to together, the customer experience data culled establish a team (or an individual on that team) from the different sources strongly indicated to track all forms of social media for trends and unhappiness stemming from the root cause of customer comments. Every company is just one poor performance by the call center provider. bad YouTube video away from a firestorm. Domino’s Pizza discovered this recently as video The company took corrective action by doing came to light of employees handling pizza in a remedial training with the call center provider non-hygienic manner. Your brand can be ruined and building an escalation path that enabled overnight by malicious activity or plain-old bad improvement of first-call resolution. The PR. This type of event can tank your customers’ customer satisfaction trendline has since satisfaction levels just as rapidly as a product changed from decreasing to increasing. Had the recall or other major issue. company had a Customer Experience team poised to act on the first Who’s Onboard? A chief task of the indication of a drop in customer attitudes, it would With a Fortune 500-size company, the Customer Customer Experience team have likely been able to turn Experience team might comprise a full-time staff is to establish common the situation around more of two to 10 people, depending on how many processes and customer quickly. channels they’re monitoring and how many satisfaction metrics across vertical industries the company serves. By monitoring customer the enterprise, including interactions and trends in Depending on the number of interactions and standard categorization customer sat scores, the channels, the team might include a few part-time of customer interactions. Customer Experience team staff members, as well. The most important could take corrective action thing is to have a leader with a vision. The other faster to stem the tide of dissatisfaction. Most roles include a governance control person who companies -- even the largest ones -- do not share brings in a governance board (executive leaders customer satisfaction data across the from different areas) and part-time organization. So, for example, personnel from the representatives from senior leadership across in-house call center might well be aware of the corporation. Likely, checking the social mounting customer dissatisfaction long before its networking sites will require at least one full- Web team. The Customer Experience team has time person (perhaps a recent college graduate visibility into leading indicators across all with intimate knowledge of the ways of the Web). interaction channels, so it can see trends that need attention sooner, as opposed to minor blips. A chief task of the Customer Experience team is to establish common processes and customer CRM Insights 2
  • 3. satisfaction metrics across the enterprise, In today’s fast-moving world, the tide of including standard categorization of customer customer opinion changes rapidly. Staying interactions. abreast of customer satisfaction with enough time to take corrective action For example, relationship surveys (in which requires an enterprise view. Having a central team selected customers are asked about their Leaving the task of measuring control the surveying feelings toward the company) are one way to customer satisfaction to process both boosts measure customer satisfaction. In this case, you individual channels and have common survey questions across all your response rates and protects verticals increases your risk of different input channels. Transactional surveys not being able to respond in against “survey fatigue” (in which customers are polled immediately time. Having a Customer on the part of customers. following a transaction) are another important Experience team helps you avenue. It is a best practice to have the team keep a close watch on customer satisfaction review both types of survey instruments, trends across channels and product lines and ensuring they follow enterprise standards, are decreases your risk of one day finding your statistically relevant and are not excessively customers have gone elsewhere. long. Having a central team control the surveying process both boosts response rates and protects against “survey fatigue” on the part of customers. About the Author Tom Woodson is a Senior CRM Strategist within the Customer Solutions Practice at Cognizant. With over 20 years of CRM experience, Tom brings insight and experience to designing CRM systems (sales, service and marketing) with measurable business benefits in mind. He has successfully delivered multiple CRM projects through the full SDLC lifecycle and has expertise in CRM Application Functional Architecture, business process design and re-design, organizational change management and training. Tom has recently focused on customer experience management. He can be reached at Tom.Woodson@cognizant.com. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting and business process outsourcing services. Cognizant's single-minded passion is to dedicate our global technology and innovation know-how, our industry expertise and worldwide resources to working together with clients to make their businesses stronger. With over 50 global delivery centers and 64,000 employees as of June 30, 2009, we combine a unique onsite/offsite delivery model infused by a distinct culture of customer sat- isfaction. A member of the NASDAQ-100 Index and S&P 500 Index, Cognizant is a Forbes Global 2000 com- pany and a member of the Fortune 1000 and is ranked among the top information technology companies in BusinessWeek's, Hot Growth and Top 50 Performers listings. Start Today For more information on how to drive your business results with Cognizant, contact us at inquiry@cognizant.com or visit our website at www.cognizant.com. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. Haymarket House #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA 28-29 Haymarket Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London SW1Y 4SP UK Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7321 4888 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7321 4890 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com © Copyright 2009, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.