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Kinesis CEM, LLC
Business Case and Implications for Consistency in the Customer Experience
http://www.kinesis-cem.com/Insights-Consistency-and-the-Customer-Experience.shtml
Eric Larse is co-founder of Seattle-based Kinesis, which helps companies plan and execute their customer experience strategies.
Mr. Larse can be reached at elarse@kinesis-cem.com.
http://www.kinesis-cem.com
kinesis-cem.com 206.285.2900 info@kinesis-cem.com
Business Case & Implications
for Consistency in the
Customer Experience
McDonalds Hamburgers:
- Marginal Quality, yet
- Hundreds of Billions Sold
Why?
Consistency
Humans are wired to
value consistency.
Introduction
Our species evolved in a
hostile unpredictable
environment.
As a result, we are hard
wired to value consistency,
even in our more stable
modern environment.
Why We Value
Consistency
Customer Loyalty Built
on Foundation of
Dependable, Consistent
Quality Delivery
Business Case
for Consistency
Assume:
- The Average Customer Has 5
Interactions Per Year
-95% Satisfaction Rate
Under These Assumptions:
- Average Customer Has a 25%
Probability of Negative Experience in
1 Year
-All Customers Will Have Negative
Experience in 4 Years!
Business Case
for Consistency
Customers Make
No Distinction
Between
Channels
Inter-Channel
Consistency
Consistency = Quality
In a Gallup Study:
1,100 Retail Stores
Most Consistent Stores Had 3.5
Stronger Customer Satisfaction1
Intra-Channel
Consistency
1 Why Consistency Is the Key to Profitable Customer Service, 2006,
gallup.com/businessjournal/23953/why-consistency-key-profitable-customer-service.aspx.
Accessed 2 Nov. 2017.
Consider Kinesis’ Research in
Banking Context:
Intra-Channel
Consistency
60%
65%
70%
75%
80%
85%
90%
95%
100%
0% 10% 20% 30%BranchCustomerSatisfaction
Standard Deviation of Satisfaction by Branch
Consistency Equals Satisfaction
Branch customer satisfaction declines as
variation in satisfaction increases.
Equal Treatment of
Customers Based on
Demographics
Demographic
ConsistencyOvert Discrimination
Disparate Impact
Disparate Treatment
Inconsistency is prima
facie evidence of
ineffective
management.
Implications for
Management
How to Be Consistent:
1) Manage inconsistency at its cause
2) Write a clear mission statement
3) Use appropriate analytics
4) Don’t silo analytics by channel
5) Meet regularly with employees to share
problems and potential solutions
6) Focus on customer journey
Implications for
Management
Top-Line
Averages
Mislead
Implications
for Customer
Experience
Researchers
Control Charts
Implications
for Customer
Experience
Researchers
83%
84%
82%
83%
83%
85%
85%
77%
79%
81%
83%
85%
87%
89%
May June July Aug Sept Oct Nov
Control Chart
Where:
x = Grand Mean of the score
n = Mean sample size
(number of shops)
SD = Mean standard deviation
Voice of the
Customer Table
Implications
for Customer
Experience
Researchers
Critical Incident
Technique
Implications
for Customer
Experience
Researchers
Qualitative Research Tool
Identifies:
- Critical Incidents (Moments of
Truth)
-What Happened
- How the Customer Felt
- How the Customer Responded
- Identify Recovery Strategies
Matched-Pair Testing
Implications
for Customer
Experience
Researchers
Use pairs of mystery shoppers to
test for disparate treatment based
on prohibited basis.

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