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How to measure customer experience to improve satisfaction and loyalty

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How to measure customer experience to improve satisfaction and loyalty

  1. 1. How to measure customer experience to improve satisfaction and loyalty<br />Fredrik Abildtrup<br />CEO @ TeleFaction A/S <br />The Return on Behavior® Company<br />
  2. 2. Contents<br />Why manage experiences? <br />Customer Experience Management<br />How to be successful<br />How to do it<br />
  3. 3. Why manage experiences?<br />
  4. 4. Why focus on customer experiences?<br />70 – 90% of what happens with customers is driven by human nature, and nothing to do with technology<br />McKinsey<br />10% increase in customer retention results in a 30% increase in the value of the company<br /> Bain & Co.<br />95% of employees don’t fully understand their organization’s strategy<br /> Norton/Kaplan<br /> Balanced Scorecard <br />Dissatisfied customers whose complaints are taken care of, are more likely to remain loyal, and even become advocates, as those that are ‘just' customers<br />50% of the people surveyed said that agents failed to answer their questionsHarris<br />Nearly 70% of consumers said, they had ended a relationship, due to poor customer service alone.<br />Datamonitor/Ovum 2009<br />
  5. 5. Percentage of companies that…<br />Actions<br />Source: Gartner Group, 2009, North American Study<br />
  6. 6. The cost of satisfying the customer<br />Email - $9.53<br />Cost per resolved issue<br />Chat - $7.86<br />Online self service - $6.55<br />Phone / Call center - $6.17<br />Sources: Giga, Gartner Group, Forester Research, Nuance 2010<br />
  7. 7. Interactions drives loyalty<br />With products becoming commoditized and customers demanding more, companies are focusing on delivering superior customer experiences. <br />A 2009 study of over 860 corporate executives revealed that companies that have increased their investment in customer experience management over the past three years report higher customer referral rates and customer satisfaction.<br />(Strativity Group, 2009)<br />
  8. 8. Enterprise managers wear rose-colored glasses<br />Survey:<br />Are companies providing an excellent customer experience?<br />Net Agreement: Customer +4, Enterprises +34Even though managers think they know how the customer is feeling, we all know differently!<br />
  9. 9. CustomerExperience vs. Management<br />CustomerRelationshipManagement<br />
  10. 10. CRM to CEM<br />The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer relationship has been the domain of Customer Relationship Management (CRM). <br />However, CRM strategies and solutions are designed to focus on product, price and enterprise process, with minimal or no focus on customer need and desire. The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want, resulting in the failure of many CRM implementations.<br />CRM is enterprise-focused and designed to manage customers for maximum efficiency, <br />CEM is a strategy that focuses the operations and processes of a business around the needs of the individual customer which in turn will lead to larger profits with more customers.<br />
  11. 11. Build or destroy profits?<br />Memorable experiences can lead to customer actions that build, or destroy, profits - Its your choice.<br />Recommended to a friend or colleague<br />Praised a company representative<br />Purchased more products/services<br />Continued relationship about the same<br />Pleased<br />Comfortable<br />Appreciated<br />Important<br />Special <br />Complained to a friend or colleague<br />Complained to a company representative<br />Switched to new supplier/provider<br />Purchased less products/services<br />Frustrated<br />Let Down<br />Angry<br />Ignored<br />Confused<br />
  12. 12. Customer Experience Management…<br />…is the execution of a customer centric business strategy<br />
  13. 13. How to be successful<br />
  14. 14. To get success – be SMART<br />
  15. 15. Customer Value… <br />Companies see customer relationship value this way<br />Profit<br />Sales<br />Strategic fit<br />Lifetime value<br />
  16. 16. Customer Value… <br />Customers see it differently..<br />Empowered Employees<br />High-Quality<br />Rewards for loyalty<br />Honest communication<br />
  17. 17. Metrics – The steering wheel<br />Customer focus are visulized through the results of the measurements<br />The customer says that...<br />The customer experienced that...<br />Translate what you mean with customer satisfaction<br />Operationalize your vision through measurements <br />And rememeber you get what you measure!<br />Primary areas to create instant results<br />Customer Satisfaction<br />Cross sales/Up sales<br />Operationalization of strategies and values<br />Retention of customers<br />
  18. 18. Live-measurements<br />Postal surveys<br />Ad-hoc surveys<br />Chat surveys<br />Enterprise<br />Feedback<br />Management<br />Meeting surveys<br />E-mail and web surveys<br />Phone surveys<br />SMS/Text surveys<br />
  19. 19. Close the loop<br />Follow-up with Action Management<br />Customer delighted<br />Alert generated<br />Acknowledge performance<br />Possible up/cross sell<br />Customer<br />Feedback<br />Survey<br />Customer satisfied<br />No action<br />Customer dissatisfied<br />Alert generated<br />Case generated<br />Action Management<br />Resolve issue<br />Close case<br />
  20. 20. People are the drivers<br />The Top 5 attributes of companies that deliver ”Constantly Excellent Customer Experiences”<br />Well-trained and Helpful Employees<br />Excellent Customer Service<br />High-Quality Goods and Services<br />Friendly and Caring Employees<br />Personal Attention, Reward for Loyalty<br />The key ingredient: People!<br />Source: Bob Thompson, CustomerThink Corp.<br />
  21. 21. Redesign the experience<br />Customer experiences as parameter for success<br />Every contact with the company gives the customer a chance to evaluate if the experience have been bad / neutral / good<br />Over time these customer experiences will make a lasting impression of the company’s values or the company as a brand<br />Act on the feedback of your customers experiences and reap the benefits of satisfied customers<br />
  22. 22. Use technology to optimize experiences<br /><ul><li>Assess the quality of customer experiences with telephone, online and contact center monitoring and measurement systems
  23. 23. Optimize marketing with analysis and campaign management systems to deliver relevant offers
  24. 24. Treat customers as individuals and reward their loyalty
  25. 25. Provide tools to help employees be helpful and responsive, including sales coaching and support knowledge bases</li></li></ul><li>Sounds great, but how does it work in real life?<br />
  26. 26. The Return on Behavior process<br />
  27. 27. The Return on Behavior process<br />You need to have customers evaluate the service delivery immediately after the interaction<br /><ul><li>...the best solution is real-time customer feedback.
  28. 28. Eliminate the gap between service and evaluation
  29. 29. Too late to recover poor interactions
  30. 30. Enhances believability of results
  31. 31. Verbatims: capture caller suggestions for improvement
  32. 32. Verbatim comments, In the customer’s own words (capture the emotion)
  33. 33. Identify and highlight employees that delight customers
  34. 34. Frequent reporting of customer feedback
  35. 35. Daily, Monthly or quarterly, Fact analysis, Annual summary presentation, Benchmark scores with others, Frequency to meet management’s needs
  36. 36. Receive alert of a dissatisfied customer!
  37. 37. Pro-actively prevent market damage, Service Recovery Opportunities, Detect Process and Procedure that are flawed
  38. 38. 4% of dissatisfied customers complain, 91% of dissatisfied customers will not do business with you, 80% will tell 10 people 20% will tell 20+ = 100 dissatisfied customers tell 1200 how poor you are!</li></li></ul><li>Return on Behavior<br />High Monitoring scores<br />≠<br />Customer Satisfaction<br />Service quality is not about internal compliance – It is about satisfying your customer<br />It is the change in behaviorthat gives pay-off in terms of customerexperiences<br />
  39. 39. About TeleFaction<br />TeleFaction is a global “Voice of the Customer” Company offering real-time customized closed loop feedback methodologies.<br />Our core service is Return on Behavior®, a results-driven solution which translates objective customer data into actionable insights. <br />These insights provide specific action points for management and individuals to adjust behavior in order to secure revenue, retain customers and increase loyalty.<br />
  40. 40. Author information<br />Fredrik Abildtrup<br />fab@telefaction.com<br />+45 5057 5070<br />WEB: TeleFaction.com<br />BLOG: ReturnOnBehavior.com<br />Twitter: twitter.com/TeleFaction<br />Linkedin: linkedin.com/in/fredrikabildtrup<br />

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