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Customer Experience Management  2011Measuring, Managing & Predicting Growth  The Keys to profitable growth High Customer Engagement High Employee Engagement Low Customer Effort
Ce Confidence Integrity Pride Passion Feelings are facts; Perception is reality  Greater predictor of revenue & loyalty than CSAT 23% lift in revenue per customer when ‘irreplaceable’
Attitudinal & Emotional  Relationship Strength Measures– Human Sigma
Ee Get Give Belong Grow 18% higher productivity 27% less absenteeism 260% more revenue growth when high Ee Only 43% can relay ‘why do business with us’ High marks on both Ee and Ce… 3.4x growth rate
The Means to Measure and Monitor the Quality of a Local Workplace – Human Sigma
CES Objective:  callbacks within 14 days.  70% said that 2 or 3 calls registered as "Moderate-to-High" effort 30% gave that rating for those that made only one call.  Subjective:  customer survey questions ‘What was your personal level of effort in getting x done with us?’Companies that can track customer effort, especially at the customer, issue, and agent level, are much better positioned to solve for customer effort.					CEB and Contact Center Council
Customer Effort Score 96%  ‘high effort’ are more disloyal 9% ‘low effort ‘are more disloyal. Predictive Power for Purchasing High CES “The Customer Effort Score outperforms the Net Promoter Score and customer satisfaction measures in predicting behavior.” – Harvard Business Review NPS CSAT Low High Predictive Power for Increased Spending
How Customer Service Performance Affects Loyalty Average Loyalty Score 7.0 5.25 3.5 1.75 0 Below  Expectations Exceeds Expectations Meets Expectations Source: Harvard Business School
The Cost of Trying to Exceed Expectations Customer Reporting Service Exceeded Expectations The Cost of Exceeding Expectations (Versus Meeting) +20% More Expectations Exceeded 11-15% More 6-10% More 15-20% More Expectations  Not Exceeded And yet… 20% of Satisfied leave 28% of Dissatisfied stay Source: Customer Contact Council research.
Effort Matters! More Loyal 12% Moments of Wow: Teaching Customer 75% 87% Effort:  First Contact Resolution Neutral 219% Effort:  +1 Contact to Resolve 342% 45% Rep:  Generic Service 40% Effort:  Repeating Info Effort:  Perceived More Effort 20% Effort:  Transfers 18% More Disloyal Source: Customer Contact Council research.
Mitigate risk by improving the experience • Rep confidence • Rep concern • Rep listening ability • Ability of rep to understand customer • Rep understood mood • Service personalization • Certainty of follow through • Number of transfers • First contact resolution • Perceived additional effort to resolve • Service organization’s knowledge about customer Source: Customer Contact Council research.
And drive Loyalty by reducing effort • Number of transfers • Repeating information • First contact resolution • Number of contacts to resolve • Perceived additional effort to resolve • Teaching the customer • Service personalization Source: Customer Contact Council research.
Effort levers
Nuances of CES; JD Powers and CEB Mark Miller – JD Powers The hard stuff is hitting the centers Easy stuff is going to the web or IVR IVRs are still poor (competitive advantage opportunity) 33% of experience 42% weight on clarity then ease of navigation Higher Effort  Problems and complaints High Tech, Travel, leisure and shipping Logistics  and complex technical issues Phone and email Multiple contact methods Repeating information Transfers Customers asked to take on more work (forms, faxing, etc…) Lower Effort Checking status of an account Making a purchase General inquiry Web interactions  Source ; CEB and CCC
Low Effort Organizations… Don’t just resolve the current issue – head off the next one Prepare employees to address the emotional side of customer interactions Minimize channel switching by increasing self-service ‘stickiness’ Use feedback to reduce customer effort Empower employees to deliver low-effort experience 							CEB/ CCC

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CEM Best Practices - 2011 KC Call Center EXPO

  • 1. Customer Experience Management 2011Measuring, Managing & Predicting Growth The Keys to profitable growth High Customer Engagement High Employee Engagement Low Customer Effort
  • 2. Ce Confidence Integrity Pride Passion Feelings are facts; Perception is reality Greater predictor of revenue & loyalty than CSAT 23% lift in revenue per customer when ‘irreplaceable’
  • 3. Attitudinal & Emotional Relationship Strength Measures– Human Sigma
  • 4. Ee Get Give Belong Grow 18% higher productivity 27% less absenteeism 260% more revenue growth when high Ee Only 43% can relay ‘why do business with us’ High marks on both Ee and Ce… 3.4x growth rate
  • 5. The Means to Measure and Monitor the Quality of a Local Workplace – Human Sigma
  • 6. CES Objective: callbacks within 14 days. 70% said that 2 or 3 calls registered as "Moderate-to-High" effort 30% gave that rating for those that made only one call. Subjective: customer survey questions ‘What was your personal level of effort in getting x done with us?’Companies that can track customer effort, especially at the customer, issue, and agent level, are much better positioned to solve for customer effort. CEB and Contact Center Council
  • 7. Customer Effort Score 96% ‘high effort’ are more disloyal 9% ‘low effort ‘are more disloyal. Predictive Power for Purchasing High CES “The Customer Effort Score outperforms the Net Promoter Score and customer satisfaction measures in predicting behavior.” – Harvard Business Review NPS CSAT Low High Predictive Power for Increased Spending
  • 8. How Customer Service Performance Affects Loyalty Average Loyalty Score 7.0 5.25 3.5 1.75 0 Below Expectations Exceeds Expectations Meets Expectations Source: Harvard Business School
  • 9. The Cost of Trying to Exceed Expectations Customer Reporting Service Exceeded Expectations The Cost of Exceeding Expectations (Versus Meeting) +20% More Expectations Exceeded 11-15% More 6-10% More 15-20% More Expectations Not Exceeded And yet… 20% of Satisfied leave 28% of Dissatisfied stay Source: Customer Contact Council research.
  • 10. Effort Matters! More Loyal 12% Moments of Wow: Teaching Customer 75% 87% Effort: First Contact Resolution Neutral 219% Effort: +1 Contact to Resolve 342% 45% Rep: Generic Service 40% Effort: Repeating Info Effort: Perceived More Effort 20% Effort: Transfers 18% More Disloyal Source: Customer Contact Council research.
  • 11. Mitigate risk by improving the experience • Rep confidence • Rep concern • Rep listening ability • Ability of rep to understand customer • Rep understood mood • Service personalization • Certainty of follow through • Number of transfers • First contact resolution • Perceived additional effort to resolve • Service organization’s knowledge about customer Source: Customer Contact Council research.
  • 12. And drive Loyalty by reducing effort • Number of transfers • Repeating information • First contact resolution • Number of contacts to resolve • Perceived additional effort to resolve • Teaching the customer • Service personalization Source: Customer Contact Council research.
  • 14. Nuances of CES; JD Powers and CEB Mark Miller – JD Powers The hard stuff is hitting the centers Easy stuff is going to the web or IVR IVRs are still poor (competitive advantage opportunity) 33% of experience 42% weight on clarity then ease of navigation Higher Effort Problems and complaints High Tech, Travel, leisure and shipping Logistics and complex technical issues Phone and email Multiple contact methods Repeating information Transfers Customers asked to take on more work (forms, faxing, etc…) Lower Effort Checking status of an account Making a purchase General inquiry Web interactions Source ; CEB and CCC
  • 15. Low Effort Organizations… Don’t just resolve the current issue – head off the next one Prepare employees to address the emotional side of customer interactions Minimize channel switching by increasing self-service ‘stickiness’ Use feedback to reduce customer effort Empower employees to deliver low-effort experience CEB/ CCC

Editor's Notes

  1. Thanks Joe – During my operations career, we spent a lot of time on metrics (books and books of them) and on accountability plans and work force management fundamentals – and FTE reduction plans to meet budgets. Which sometimes backfired due to the over time we’d have to run to meet service levels.We did get some things right, and we did spend a good deal of time listening and talking to our colleagues and trying to make their jobs easier. And if I were to boil the reason for our success down to one simple concept, it was our constant focus on making it easier on our employees to get their job done, earn incentives, learn new skills and make some friends in the business.It turns out, we were on to something and the Gallup Organization and the Corporate Executive Board have recently release some excellent research that builds upon our CSAT and NPS initiatives to target what really matters to employees and customers – and therefore, better tune our business models and more accurately predict revenue and loyalty growth. Let’s start with customer engagement.
  2. There is an excellent book called Human Sigma, that was recommended by Brian Grubb, who runs the training group at the Ritz Carlton . And the book does a nice job summarizing the key findings from some of the most extensive research to date in the field of customer loyalty the Gallup OrganizationThe findings are this:Human behavior is caused more by feelings and emotion than by rational levels of satisfactionSo if you want to better predict loyalty and purchasing behaviors, you need to learn how to survey for the strength of the emotional relationship you have with your customers. There are precisely 11 questions that help you measure that relationship strength, and the questions help you isolate where a customer sits on the scale from Confidence to Passionate Advocacy with regard to your brand.Here are the 4 levels of customer engagement: Confidence Integrity Pride Passion (23% lift in RPC)Next – they cover the importance of having engaged employees….
  3. Turns out there are 12 specific questions that help you measure the level of engagement your employees have with regard to working at your company – and they allow you to know where you’re falling short or doing well with regard to getting the most out of your human capital:These questions measure an employee’s feeling that they:Get Give Belong GrowThe big ‘aha’ before we move on to Effort, is that when you score highly on both Ce and Ee, you grow at a MUCH faster clip than you competitors and your growth is cheaper to come by with a legion of passionate advocates telling your story for you.So now let’s get to the body of work around Effort and it’s impact on customer loyalty and revenue growth….