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Barriers to Customer-Centricity
The document discusses the importance of customer experience and the barriers to achieving true customer-centricity in businesses. It highlights the disconnect between executive perceptions and actual customer satisfaction, emphasizing that experience should be managed at every touchpoint. To overcome these challenges, organizations must align their practices with customer needs and demonstrate genuine leadership commitment to enhancing the customer experience.
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Barriers to Customer-Centricity
- 1. FUTURELAB Breda May10, 2012
- 2. On a missionto make the world a more customer friendly place @FLB_alainthys FUTURELAB
- 3. FUTURELAB “Let’s go WOOOOOWW!!” “Let’s spread love & hug” “Let’s be like Disneyland” The problem I have always had with customer experience thinking Too much fluffy stuff
- 4. The CEO FUTURELAB Dilemma The problem I have always had with customer experience thinking The CEO dilemma: I get paid in Euros, not happy faces
- 5. FUTURELAB The same coffee beans Cost per cup The futures market (nov 2011) € 0.01 in a package at the grocery store € 0.075 at Nespresso € 0.40 in a paper/plastic cup from a machine € 1.00 from a machine in a theme park € 2.20 in a cup in a big city café € 2.50 at a deluxe restaurant € 5.00 during my honeymoon with a glass of I haven’t got a clue! 100 year old Armagnac While I couldn’t translate it into ROI My intuition told me something was there
- 6. FUTURELAB Clarity at last • First exposure at Philips • Deepdive into the Net Promoter® System And then came Fred • Heavy promoter of the approach.
- 7. Customers are important. Really, they’re important. They’re very very very important! So full of excitement that there was a business case I became a customer evangelist
- 8. FUTURELAB But the worlddecided to surprise me … Every company (and employee) is customer-centric
- 9. 80% of CEO’sbelieve they offer a superior customer experience. 8% of their customers agree. The bad news Even though Fred’s colleagues disagreed Source: Bain & Company
- 10. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talk So I went digging for the reasons Three key barriers to customer-centricity
- 11. FUTURELAB From a businessperspective Customer experience gets managed “on top of” …
- 12. FUTURELAB From a customerperspective “The experience IS the product” (Peter Merholz)
- 13. FUTURELAB To capture thismoney, we need a different perspective “The experience IS the product” (Peter Merholz)
- 14. FUTURELAB “You press the button, we do the rest” George Eastman From a customer perspective “The experience IS the product” (Peter Merholz)
- 15. FUTURELAB It just works This is cool! Famous for overpriced, underspec’d A low performance gaming devices with poor battery life. console with few titles. From a customer perspective “The experience IS the product” (Peter Merholz)
- 16. FUTURELAB A real lifecase TV’s bought on a Saturday have more detractors
- 17. FUTURELAB Going direct to create the right emotion at every touchpoint allows Nespresso to charge up to 4x the price of other high street brands The bottom line The one with the best TOTAL “experience” wins 17
- 18. There’s more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policy 25% more expensive The bottom line The one with the best TOTAL “experience” wins
- 19. FUTURELAB Overcoming the barrier Experiencedoesn’t go “on top”, it IS the product
- 20. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talk So I went digging for the reasons Three key barriers to customer-centricity
- 21. FUTURELAB Three key barriersto customer-centricity Most companies roll the dice on managing CX
- 22. FUTURELAB A Structured Approach 30 second group brainstorm Which are the customer steps when going on a holiday? 22
- 23. FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories 30 second group brainstorm Which are the customer steps when going on a holiday 23
- 24. FUTURELAB We show thatwe value our customers by serving them well, putting their needs and interests at the center of everything we do. (from the AOL mission statement) Case: AOL Rolling the dice: extreme case
- 25. FUTURELAB Question: Bad employee? Case: AOL It ain’tover until the last employee/touchpoint is managed
- 26. FUTURELAB Again … thisis not about ill will Every employee on the planet cares about the customer
- 27. FUTURELAB But reality isthat … • No customer contact • Misaligned KPI’s The business gets in the way • Internal inefficiency cuts time
- 28. FUTURELAB 90% 50% 30% Source: Bupa International, 2009 10% 5% Collect Alert Staff Make Deploy Inform Customer to Findings decisions improve customers Feedback using of change insights “Most businesses are optimised for themselves, not for the customer.” Geert Van Kuyck, CMO Philips
- 29. FUTURELAB The REAL customer experience 62% of US/UK consumers believe that the quality of service depends on whoever serves them. If you don’t manage the whole experience, you roll the dice. Any disconnect can break your business
- 30. FUTURELAB • 6 month delivery delay • Wife gets insulted • Threat to cancel = car appears • Sunroof doesn’t open (but that’s normal) • Loaner car is dirty 2nd hand car at 1/3 price • Invoicing is a mess • … • While they keep mailing you promotions If you don’t manage the whole experience, you roll the dice. One brand, two dealers…
- 31. FUTURELAB Overcoming the barrier Don’troll the dice, but manage “every” touchpoint
- 32. FUTURELAB • The wrong perspective • Rolling the dice • Leadership not walking the talk So I went digging for the reasons Three key barriers to customer-centricity
- 33. THE CUSTOMER ISAT THE CENTRE EVERYTHING WE DO! Our satisfaction numbers matter! Do what is right for the customer! Let’s have an off-site workshop! Let’s have a customer day! Leadership not walking the talk Many executives say they want to be customer-centric
- 34. THE CUSTOMER ISTHE LAST THING WE TALK OR THINK ABOUT. I know the product is outdated, but push it, we need to hit the quarterly numbers Can’t we replace our call-centre with an IVR. All these people cost money! Can we lock accounts into only buying their service support from us? I don’t have time to meet with customers. “I’m out of here in 2 years anyway” Leadership not walking the talk But their behaviour says something else
- 35. Customer oriented behaviour = headache Grab the money/process focus = easier silo life, career, bonus, … People copy behaviours, not words The organisation will learn fast
- 36. FUTURELAB Would you recommendthe bank to friends /family? 32% No 28% conditionally Would you recommend the bank as an employer? 39% No 30% Yes N=25,000 (out of 59,000) But they don’t lose their common sense. And before you know it, you’ve got a problem
- 37. FUTURELAB “you know what those idiots did at work”? Are you really setting the example, or your talking about the customer? 1 employee 1st degree: 150 Would your people recommend? Act? 2nd degree: 22,500
- 38. FUTURELAB Leadership not walkingthe talk What is really required.
- 39. Overcoming the barrier Don’ttalk about the customer … set the example
- 40. FUTURELAB • Realise that the experience is the product • Manage every single touchpoint • Be prepared to walk the customer talk To conclude Overcome the barriers in your business
- 41. FUTURELAB And finally What isthe “one thing” you will do?
- 42. Twitter: @FLB_alainthys FUTURELAB
- 43. FUTURELAB Thank you … Andnow comes Fred