Presentation to The National Association of Credit Union Service Organizations (NACUSO) about developing a customer focused approach to achieve business goals. Gaining a deeply intimate understanding of customer behavior is at the heart of the relationship required to engage both customers and employees. An organization’s ability to understand, act upon and internalize customer information has a direct and tangible impact on business performance.

1. Beyond Customer Loyalty…
Customer Enchantment
NACUSO CONFERENCE
April 16, 2013

2. WHO
CALLS
THEIR
FINANCIAL
SERVICES
COMPANY
AT A TIME
LIKE THIS?
2

3. PART OF THE ANSWER LIES
IN THE SECOND PART
OF THE STORY…
PAGE
3
©
Endeavor
Management
2012
3

4. WHAT THE
REP DID
• Looked at each contact as an opportunity to
fulfill the mission
• Looked at the interaction from the customer’s
perspective as opposed to her line of business
perspective
This didn’t happen by accident…
4

5. AFTER 34 YEARS,
HERE IS WHAT I KNOW…
• Mission is filter through which everything passes
• Successful leaders are customer zealots
• Dedication to workforce yields dedication to
customers
• Voice of the customer is regularly sought and
valued
• Commitment to excellence permeates the
organization
• Customers are “enchanted”, not just “satisfied”
5

6. HOW ENCHANTMENT
IS DIFFERENT
Loyal Clients
Clients
are
satisfied
and
come
back
•
•
•
•
•
Enchanted Clients
Clients
are
raving
fans
and
spread
the
word
Will
recommend
you
if
asked
“May”
give
you
a
second
chance
Have
minimum
investment
in
your
future
See
you
as
a
supplier/vendor
More
about
the
product/service
•
•
•
•
•
Go
out
of
their
way
to
recommend
you
They
forgive
you
They
want
to
help
shape
your
future
They
feel
sense
of
ownership
More
about
the
relationship
Word-­‐of-­‐mouth advertising is the least expensive
and most effective form of promotion
6

7. ENCHANTMENT
encompasses a customer’s first impression
of a brand to their latest interaction with it.
Achieving enchantment requires both
an “intrinsic” association with a product or service
as well as an “extrinsic” association
with the brand’s history, beliefs and behaviors.
7

8. ENCHANTMENT
CYCLE
Reinforce
the
promise
and
deliver
in all
communications
&
interactions
Reinforce
Listen
Listen
to
customers,
their
influencers
and
other
stakeholders
Client
Define/
Design
Deliver
Deliver flawlessly
on
the
Promise
Define and Design how
your
organization
will
meet
or
exceed
needs
Promise
Communicate
a
resonant
Promise
8

9. FULFILLING THE PROMISE…
EVERY TIME
• Your culture and brand promise
are linked through the
experience delivered,
supported by leadership
• Leaders translate customer
expectations through the brand
and desired experience into
employee behavior
• This alignment creates an
exceptional experience and a
sustainable competitive
advantage
9

10. THROUGH TRANSFORMATIONAL
LEADERSHIP
CUSTOMER ENCHANTMENT
10

11. WHERE IT BEGINS TRANSFORMATIONAL LEADER
Aligns
the
culture
Builds
trust
on
all
levels
Challenges
the
status
quo
Develops
and
enables
others
to
act
Creates
a
shared
vision
Motivates
the
heart
Models
moral
behavior
Advocates
for
the
customer
Transformational leadership is the process whereby a person engages
others and creates a connection that raises the level of motivation and
morality in both the leader and the follower (Northouse).
11

12. LEADER’S ROLE
TRANSFORM PEOPLE
TRANSFORM CULTURE
Most visible customer fan
Listen to the customer
• Surveys
• Social
Media
• Customer
Panels
• Listening
Posts
Turn information into action
Measure performance
against expectations
12

13. LEADER’S ROLE
TRANSFORM PEOPLE
TRANSFORM CULTURE
Culture alignment
• Values
• Messaging
• Decision
making
• Rewards
• Punishments
• Rituals
Lead through the “Red
Zone”
13

14. A WORD ABOUT
“RED ZONE MANAGEMENT”
The Red Zone is a critical time and place in the life of a company
that is characterized by the simultaneous presence of
•
The
opportunity
for
Great
Gain
and
•
The
real
likelihood
of
Great
Loss
14

15. RED ZONE
MANAGEMENT
Future
Business
Model
The Red Zone
Customer Enchantment
Mergers
&
Acquisitions
Culture
Re-­‐Design
Brand
Re-­‐design
Today’s
Business
Model
PAGE
15
©
Endeavor
Management
2012
15

16. RED ZONE MANAGEMENT –
CRITICAL SUCCESS FACTORS
• Define desired future state
• Motivate workforce to share vision
• Energize activities to achieve success quickly
• Provide support systems to stay the course
• Maneuver through the zone while Running the
Business (RTB) and Changing the Business (CTB)
16

17. RED ZONES REQUIRE
CONCURRENT ACTION
Future
Business
Model
The Red Zone
Managers
Run
Employees
Transformational
Leaders
“We
must
continue
doing
business
today
while
simultaneously
changing
the
way
we
do
business.”
Today’s
Business
Model
PAGE
17
©
Endeavor
Management
2012
17

18. THROUGH CUSTOMER EXPERIENCE
MANAGEMENT
CUSTOMER ENCHANTMENT
18

19. CUSTOMER EXPERIENCE
AS SEEN FROM THE EYES OF THE CUSTOMER
CUSTOMER EXPERIENCE
“is the sum-­‐totality of how customers engage with your company
and brand, not just a snapshot in time, but throughout the entire
arc of being a customer.”
Adam Richardson, Harvard Business Review
19

20. TOUCHPOINT MANAGEMENT
IS CRITICAL
• A
Touchpoint
is
the
interaction
between
an
organization
and
its
customers
• It
is
the
means
by
which
a
customer
or
prospect
realizes
the
promise
of
your
brand
• These
touchpoints
are
service
clues
and
require
management
Environments
Personal
Interactions
Written
and
Digital
Communications
20

21. EXPERIENCE MAPPING:
FITTING IT ALL TOGETHER
In-­‐depth qualitative research technique
Utilizes visual cue to help stakeholders
recall specific episodes in their journey
Reviews the total experience:
• Expectations
prior
to
the
first
encounter
(decision
factors)
• Activities
(e.g.,
product
offer,
sales
support,
applying
for
product)
• Touchpoints
(e.g.,
materials,
conversations,
website)
• Recognizes
changes
in
attitudes,
if
any,
through
each
stage
of
the
experience
Provides a framework for action
21

22. EXPERIENCE MAPPING – DELIVERY
ON THE PROMISE
Awareness
Evaluate
Key
Touchpoints
Key
Touchpoints
How do we
raise
awareness and
interest in
brand?
What are
initial
perceptions?
What’s
important to
the
prospective
customer?
How do we
help them
evaluate our
value
proposition?
le
-­‐
Examp
by
ized
custom nt
segme
Purchase
Key
Touchpoints
What is the
first
impression?
How easy is it
to buy?
How do we
express
appreciation?
Deliver/Support
Refer/Retain
Key
Touchpoints
Key
Touchpoints
How do we
deliver our
value
proposition?
How
accessible are
we?
How do we
retain
customers?
How do we
listen to their
voice? How do
we assist
referrals?
Touchpoints
22

23. TOUCHPOINT
ASSESSMENT
• In what areas can we deliver an exceptional experience?
• What are ways to surprise our customers that we currently do
not do?
• What should be done more consistently that should be
reinforced?
• Where are we not achieving the expected outcome?
• How can our messaging reinforce the experience and brand?
Awareness
Evaluate
Purchase
Deliver / Support
Refer / Retain
Review
for
each
step
23

24. PRIORITIZATION
High
Satisfaction
Competitive Pressure
Enchantment
Needs
Unexpected
and
unspoken,
adds
value
but
not
required
Enchanted
The
Kano
model
shows
how
tangible
customer
needs,
wants,
and
suggestions
can
be
segregated
into
3
separate
requirement
categories:
Performance
Needs
Quality
Satisfied
Basic
Needs
Expected,
minimum
requirements
Basic Requirements
Meet
these
requirements
quickly
and
with
the
lowest
cost
possible
Performance Requirements
Selectively
meet
these
requirements
to
achieve
highest
ROI
Enchantment Requirements
Meet
these
requirements
to
achieve
elite
status
Dissatisfaction
24

25. THE PAY OFF
• Brand distinction
• Over the top retention
• Steady stream of referrals
• Reduced cost of acquisition
• Reduction in “blind spots”
• Greater efficiency
• Employee retention
25

26. Endeavor Management is a management consulting firm that
leads clients to achieve real value from their strategic
transformational initiatives. Endeavor serves as a catalyst by
providing the energy to maintain the dual perspective of
running the business while changing the business through the
application of key leadership principles and business strategy.
The firm’s 40 year heritage has produced a substantial portfolio
of proven methodologies, enabling Endeavor consultants to
deliver top-tier transformational strategies, operational
excellence, organizational change management, leadership
development and decision support. Endeavor’s deep
operational insight and broad industry experience enables our
team to quickly understand the dynamics of client companies
and markets.
2700 Post Oak Blvd
Galleria Tower 1, Suite 1400
Houston, TX 77056
+1 713.877.8130
www.endeavormgmt.com
PAGE 266
PAGE
2
Combined with our Gelb Consulting experience (founded in
1965) we also offer clients unique capabilities that focus their
marketing initiatives by fully understanding and shaping the
customer experience through proven strategic frameworks to
guide marketing strategies, build trusted brands, deliver
exceptional customer experiences and launch new products.
Our experienced consultants and analysts use advanced
marketing research techniques to identify customer needs and
spot high potential market opportunities.
©
Endeavor
Management
2012