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Achieving Business Excellence Through… Delivering Consistently Superior Customer Service
Why should I listen to you?
A few of my clients:
What does this mean to me?  How can I use this idea? What can I do right away?
Reality CheckKnowing – Doing    1 -10
Organization Effectiveness Audit    Page 2Be “Brutally Honest”   Scale of 1 – 10                                   2
The Pattern of Business Success                                  3
(T + C + ECF) x DE = Success                           3
Extreme Customer Focus
LVC      4
VERY rough estimation of LVCThink of an “Ideal Customer”Average purchase amount per visit# of purchases per year# of years...
Lifetime Value of a CustomerAverage purchase = $5.90# of visits = 4.2 per week = 24.78X 52 weeks = $1,288.56X 20 years = $...
LVC workshop page 4                      4
A few good quotes…• “We are not in the coffee business serving people… we are in the  people business serving coffee.” How...
The number one factor in increasing     the level of highly satisfied and    engaged CUSTOMERS in your               busin...
Fully Engaged Customers deliver a                                23%  premium over the average customer in terms  of share...
Customer satisfaction drives customer loyalty…   and customer loyalty drives profitability                                ...
When customers receive GREAT service…              73%                             54%                                    ...
Zappos                    Sales in 1998 =   0   Sales in 2008 = 1.2    Billion                               Looking back,...
Culture = Cash   Highly satisfied and engaged employees can drive as much as a 189% increase in profitability!While active...
What do engaged employees look like? Page 61. They give more discretionary effort.2. They consistently exceed expectations...
HUGE data set…   •   600,000 employees at 500 companies.   •   6,800 senior executives.   •   900 books and academic artic...
Nine Elements of Organizational HealthFrom: Beyond Performance by Keller and Price     6
Key attributes of winning cultures• High aspirations and a desire to win   1 - 10• Extreme customer focus• A “think like o...
From the Employee’s Perspective:                                   7
Fundamental Customer Expectations• Reliability: The ability to provide what was promised, on  time, dependably and accurat...
The Five Levels of Customer Service                I don’t really care                 Why try harder          Good enough...
How the best get better… 6 key factors
1. Extreme Customer Focus They listen to, understand, and respond (often in unique and creative ways) to the evolving need...
How Many of these do you employ?                                   10
10
Voice of the Customer: Workshop Page 10                                          10
2. Shared Customer Service Credo                             They establish a clear                             vision of ...
Read credo example pages 11-13
3. MOT: Process = Repeatable success• They create systems, processes and  protocols to ensure that service delivery is  fl...
Moments Of Truth                   14
MOT   Practice RoundDry CleanerHair SalonTailorPlumber                       14
Moments of Truth: Workshop page 14                                     14
4. Clear Standards + AccountabilityThey establish concrete standards ofservice quality and regularly measurethemselves aga...
5. Customer Focused Employees                   They hire the best people,                   train them carefully and     ...
6. Reward and Celebrate Success…They recognize and reward serviceaccomplishments, sometimesindividually, sometimes as a gr...
The Rule of 3 • Wow – breakthrough teams commit to a clear and     specific standard of world-class performance. • No Surp...
Understanding the Customer-driven Company: WS page 16                        • Create a customer-focused Vision           ...
Web of Value:   VOC + MOT + WOM
43% - 74% of purchasing decision = WOM                                         17
WOM = Your BEST form of advertising!                 78.9%                 23.4%                                       17
You MUST have a Referral PROCESS Identify                                                   Refer   Ideal                 ...
Final workshop page 19 & 20
THANK YOU VERY Much!!!!  If you have any questions at all please do not hesitate to send a note or call.               My ...
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Achieving Business Excellence Through Delivering Consistently Superior Customer Service

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Climb for Cancer Business Excellence

  1. 1. Achieving Business Excellence Through… Delivering Consistently Superior Customer Service
  2. 2. Why should I listen to you?
  3. 3. A few of my clients:
  4. 4. What does this mean to me? How can I use this idea? What can I do right away?
  5. 5. Reality CheckKnowing – Doing 1 -10
  6. 6. Organization Effectiveness Audit Page 2Be “Brutally Honest” Scale of 1 – 10 2
  7. 7. The Pattern of Business Success 3
  8. 8. (T + C + ECF) x DE = Success 3
  9. 9. Extreme Customer Focus
  10. 10. LVC 4
  11. 11. VERY rough estimation of LVCThink of an “Ideal Customer”Average purchase amount per visit# of purchases per year# of years of loyalty for a good customer# of new customer they bring to you ****
  12. 12. Lifetime Value of a CustomerAverage purchase = $5.90# of visits = 4.2 per week = 24.78X 52 weeks = $1,288.56X 20 years = $25,771.20 $14,099
  13. 13. LVC workshop page 4 4
  14. 14. A few good quotes…• “We are not in the coffee business serving people… we are in the people business serving coffee.” Howard Schultz, CEO – Starbucks• “We took our eye off the ball and it damn near put us out of business. We forgot that the customer pays ALL the bills. We are here to serve them, help them, support them. Not keeping that at the front of our minds almost cost us everything.” Lou Gerstner, CEO - IBM• “The very future of our company hinges on our ability to understand and serve our customers better than any other firm. It is all about customer service, the products are actually secondary.” Jeff Immelt, CEO – GE• “The only critic whose opinion counts, is the customer” – Mark Twain
  15. 15. The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…The level of highly satisfied and engaged EMPLOYEES in your business.
  16. 16. Fully Engaged Customers deliver a 23% premium over the average customer in terms of share of wallet, profitability, revenue, and relationship growth.Harvard Business Review: Manage Your Human Sigma 4
  17. 17. Customer satisfaction drives customer loyalty… and customer loyalty drives profitability Promoters 100% Zone of Affection 90 A 5% increase in loyalty 80 among your best 70 Zone of customers… 60 Indifference Loyalty 50 40 Can produce a profit 30 Zone of increase of 25% – 85% Defection 20Detractors Extremely Somewhat Slightly Very Dissatisfied Dissatisfied Dissatisfied Satisfied Satisfied Customer Satisfaction 5
  18. 18. When customers receive GREAT service… 73% 54% 43% 18% Will return to Will Bought a Upgraded or use the recommend second added to first company to friends and product or purchase. again. family. service. 5
  19. 19. Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of- mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team). Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.Tony Hsieh – CEO Zappos
  20. 20. Culture = Cash Highly satisfied and engaged employees can drive as much as a 189% increase in profitability!While actively disengaged employees could cost you as much as 22% of total revenues!!!
  21. 21. What do engaged employees look like? Page 61. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10 6
  22. 22. HUGE data set… • 600,000 employees at 500 companies. • 6,800 senior executives. • 900 books and academic articles. • 30 CEOs of Fortune 500.From: Beyond Performance by Keller and Price
  23. 23. Nine Elements of Organizational HealthFrom: Beyond Performance by Keller and Price 6
  24. 24. Key attributes of winning cultures• High aspirations and a desire to win 1 - 10• Extreme customer focus• A “think like owners” attitude• Bias to action• Individuals who team• Passion and energyBain & Company 7
  25. 25. From the Employee’s Perspective: 7
  26. 26. Fundamental Customer Expectations• Reliability: The ability to provide what was promised, on time, dependably and accurately. (Honesty)• Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. (Competence)• Empathy: The degree of caring and individual attention provided to customers. (Concern)• Responsiveness: The willingness to help customers and provide prompt service. (Attitude)• Tangibles: The physical facilities, equipment, and appearance of the personnel. (Professionalism) Read page 8
  27. 27. The Five Levels of Customer Service I don’t really care Why try harder Good enough is good enough That’s nice Holy #@%& – you guys are awesome!!!!! Workshop Page 9
  28. 28. How the best get better… 6 key factors
  29. 29. 1. Extreme Customer Focus They listen to, understand, and respond (often in unique and creative ways) to the evolving needs and constantly shifting expectations of their customers. Own the VOC 10
  30. 30. How Many of these do you employ? 10
  31. 31. 10
  32. 32. Voice of the Customer: Workshop Page 10 10
  33. 33. 2. Shared Customer Service Credo They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization. 11
  34. 34. Read credo example pages 11-13
  35. 35. 3. MOT: Process = Repeatable success• They create systems, processes and protocols to ensure that service delivery is flawless… without stifling the creativity and initiative of their employees. 14
  36. 36. Moments Of Truth 14
  37. 37. MOT Practice RoundDry CleanerHair SalonTailorPlumber 14
  38. 38. Moments of Truth: Workshop page 14 14
  39. 39. 4. Clear Standards + AccountabilityThey establish concrete standards ofservice quality and regularly measurethemselves against those standards,guarding against the “acceptable error”mindset by establishing as their goal100% customer satisfactionperformance. 15
  40. 40. 5. Customer Focused Employees They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers to build very high levels of TRUST 15
  41. 41. 6. Reward and Celebrate Success…They recognize and reward serviceaccomplishments, sometimesindividually, sometimes as a groupeffort, in particular celebrating thesuccess of employees who go “onestep beyond” for their customers.Deal decisively with mediocrity 15
  42. 42. The Rule of 3 • Wow – breakthrough teams commit to a clear and specific standard of world-class performance. • No Surprises – all team members are accountable for openness and honest debate, and each knows what to expect from the others. • Cheer – team members support, recognize, appreciate and cheer each other and the group to victoryFrom: The Orange Revolution by Gostick and Elton 15
  43. 43. Understanding the Customer-driven Company: WS page 16 • Create a customer-focused Vision • Flood the organization with VOC • Become an expert on delivering superior customer service • Turn your employees into customer service champions • Destroy any barriers to superior service performance • Measure, measure, measure • Walk the talk 16
  44. 44. Web of Value: VOC + MOT + WOM
  45. 45. 43% - 74% of purchasing decision = WOM 17
  46. 46. WOM = Your BEST form of advertising! 78.9% 23.4% 17
  47. 47. You MUST have a Referral PROCESS Identify Refer Ideal IdealCustomer Customer From John Jantsch: The Referral Engine Workshop Pages 17 & 18
  48. 48. Final workshop page 19 & 20
  49. 49. THANK YOU VERY Much!!!! If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com My twitter address is: @awesomelysimpleAlso, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.com Lastly, these slides and a BIGGER workbook have already been uploaded to: www.slideshare.net/johnspence

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