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ART - Acknowledgement, Respect & Trust

ART will drive extraordinary customer service - using real words and action rather than nonsense like "customer centricity"

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ART - Acknowledgement, Respect & Trust

  1. 1. CopyrightCopyright ©©CIBCCIBC Breakaway ServiceBreakaway Service PerformancePerformance John McKean, Paul KellJohn McKean, Paul Kell Center for Information Based CompetitionCenter for Information Based Competition 1-937-427-88751-937-427-8875
  2. 2. CopyrightCopyright ©©CIBCCIBC CopyrightCopyright ©©CIBCCIBC CopyrightCopyright ©©CIBCCIBC Customers Don’t Want Relationships… never have, never will… Voted – BEST SESSION at Largest Banking Conference in the World “This guy must have felt like Gandhi at a Soldier of Fortune rally. But he was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week” Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One)
  3. 3. CopyrightCopyright ©©CIBCCIBC Customer Service Basics Don’t want Relationships, but consistent human treatment… “Give me the best product, at the right price (not cheapest) and treat me like a human being in the process of selling and servicing that product”
  4. 4. What Customers rememberWhat Customers remember Product/PriceProduct/Price 30%30% Sales/MarketingSales/Marketing 15%15% Repair/ServiceRepair/Service 30%30% Initiation/InstallationInitiation/Installation 10%10% BillingBilling 15%15% 100%100% 70%70% What they remember… ……determined bydetermined by treatment duringtreatment during interactionsinteractions ……fromfrom product/priceproduct/price 30%30% 1.1. Customers remember interactionsCustomers remember interactions 2.2. Specifically, how “human” they were…Specifically, how “human” they were… CopyrightCopyright ©©CIBCCIBC Bell Labs Scientists’ study ofBell Labs Scientists’ study of 300,000 customers300,000 customers
  5. 5. What they remember Resolving ProblemsResolving Problems Excellent RatingExcellent Rating Average excellence ratingsAverage excellence ratings 51%51% Fix within 2 hoursFix within 2 hours 81%81% Takes longer than 2 hoursTakes longer than 2 hours 74%74% Takes longer than a dayTakes longer than a day 46%46% Fix within two hours, tell afterFix within two hours, tell after 84%84% Fix within two hours, tell duringFix within two hours, tell during 90%90% AT&T/Bell Labs CopyrightCopyright ©©CIBCCIBC It’s not what “Westpac does”, but howIt’s not what “Westpac does”, but how what Westpac does… makes them feelwhat Westpac does… makes them feel
  6. 6. Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly Top sales people don’t sell better, they treat better… The Human Interaction Factor 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Resources applied to "Humanness" of Interaction Buying Influence of "Humanness" of Interaction CopyrightCopyright ©©CIBCCIBC
  7. 7. Human Touch as a Science CopyrightCopyright ©©CIBCCIBC 1.1. Behavioral - Identify Buying Emotions that mostBehavioral - Identify Buying Emotions that most influence decision to choose one company overinfluence decision to choose one company over anotheranother AAcknowledgement,cknowledgement, RRespect &espect & TTrust (ART)rust (ART) 2.2. Operational – 4 High Order Human Touch SciencesOperational – 4 High Order Human Touch Sciences a)a) Communicate more humanlyCommunicate more humanly b)b) Execute as definable processExecute as definable process c)c) Consistency across business functionsConsistency across business functions d)d) Technology that humanizes, not dehumanizesTechnology that humanizes, not dehumanizes
  8. 8. High-Order HT CommunicationsHigh-Order HT Communications 7 Steps of Customer Service (start & end is human, middle is business) 1. Thank you – recognize their effort & concern 2. Sorry - acknowledge emotion is valid 3. Listen carefully – collect/clarify facts 4. Fix problem now or come to agreement 5. Ask for suggestions – engage in solution 6. Administrative - log complaint & reimburse 7. Follow-up – ensure closure CopyrightCopyright ©©CIBCCIBC Wendy EggletonWendy Eggleton
  9. 9. High-Order HT ProcessesHigh-Order HT Processes Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint 1. Room service was slow 2. Room service deliverers had long waits for elevators 3. Houseman who supplied Maids w/linen tied up elevators 4. Linen shortage required them to steal from other floors 5. Initial hotel budget created linen shortage (2 years ago) 6. Decision to cut linens by Founder and CEO 7. Solution – ordered one more “parr” of linens CopyrightCopyright ©©CIBCCIBC Horst SchultzeHorst Schultze
  10. 10. Human Touch and the Bottom line By studying human interactions as a process… • If fulfilled guests went from 92% to 97% over 2 years – 4 million room nights a year – If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy – +8% occupancy rate = $300 mil. in additional profit – $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction High-Order HT ProcessesHigh-Order HT Processes CopyrightCopyright ©©CIBCCIBC
  11. 11. High-Order HT TechnologyHigh-Order HT Technology Fatal Technology Assumptions • We’ll “save money” by pushing customers to technology channels and lose nothing • A single view of the customer is not critical • Asking for personal info before trust is OK • Design w/o considering emotional content • Expecting they'll tolerate a few “bugs” • Design for our efficiency, convenience, and control and they won’t lose theirs • Design for task execution alone, not to enable more human interactions CopyrightCopyright ©©CIBCCIBC
  12. 12. The Employee Connection “Treat employees as you would have them treat customers” CopyrightCopyright ©©CIBCCIBC HumanizingHumanizing BehaviorBehavior LeadershipLeadership DehumanizingDehumanizing BehaviorBehavior HumanizingHumanizing BehaviorBehavior EmployeesEmployees DehumanizingDehumanizing BehaviorBehavior ProfitableProfitable BehaviorBehavior CustomersCustomers UnprofitableUnprofitable BehaviorBehavior 80% How they treat / how they are treated 70% how they treat/ “Decision to Buy”
  13. 13. Treatment-Chain Economics Based on 50,000 Employees, 6 business units, over 2-3 yearsBased on 50,000 Employees, 6 business units, over 2-3 years Quarter lag on stock priceQuarter lag on stock price Employee = Customer = Shareholder Fulfillment $41 $43 $45 $47 $49 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr SharePrice 65% 70% 75% 80% 85% 90% %Fulfillment Share price Employee Fulfillment Customer Fulfillment