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‘How to turn your customers
      into your sales team’
TEC 401                         Iven Frangi Dip Mktg, CSP
                         Customer Xperience Management
April 30 2009
Tamworth         p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au
3 ring circus
3 ring business



get        keep     grow




        customer
customer satisfaction



get        keep =   CS = grow
satisfaction is not enough

    62% 
 of all satisfied customers never
‣
    repurchase from the same supplier
                                  (Harvard Graduate School)


    95% of brand awareness advertising does
‣
    not work
                                           (CEO Chiat Day)


    4 out of 5 sales in any category of business
‣
    is driven by word of mouth.
today
• look at CX in business
• how to listen to your customers in real time
• how to get your customers to become advocates
• the steps to take to install CX in your business
• some tools you can use easily and inexpensively
• leave with things you can do tomorrow
defining the terms

                      what a
 customer                                  what a
                     customer
               =                    -     customer
satisfaction       perceives they
                                           expects
                         get



                      what a               what a
customer
               =                    -
                     customer             customer
 sacrifice             wants              settles for




                      what a               what a
 customer
               :     company              company
experience            delivers          has promised
customer centric business



                 keep
      get
             C
            grow
customer experience


   market- sales
     ing
          cx
        loyalty
customers to advocates

     significant                                            high

                                                brag

   what
                                 choose
customer                                                           advocacy
  values


                        use
                                                            low
 not significant

                              product/service
            commodity                             differentiated
significance


aesthetics
utility
meaning
engineered experience
the latest guarantee
marketing defined
whose shoes?



 “stop thinking like an seller -
start thinking like a customer”
In a down economy

•risk is avoided at all costs
•the known supersedes the
unknown

•management retreats to
fail safes.
is CX profitable?




       Harris Interactive
Customer Experience Report 2008
why bother?

“Using data from nearly 4,700 consumer surveys, Forrester
examined the correlation between the customer experiences
delivered by more than 100 US firms and the loyalty of their
customers

Our analysis shows that good customer experience correlates
to consumers' willingness to repurchase, reluctance to switch,
and likelihood to recommend firms across all 12 industries we
examined.”                               Forrester Research Feb 09
not all bad
are you on trend?
the international study
Xperience matters


‣ makers or breakers?
‣ hard or soft differentiators
‣ xperience or satisfaction?
‣ xperience or loyalty?
marketing isn’t linear
new technology + old thinking = same old outcome
your CX premise
                         company



      internal support                external marketing
         ‘enabling                          ‘setting
         promises’                         promises’




employees                                         customers
                     experience delivery
                          ‘keeping
                         promises’
your challenge
leads

 prospects


                  CXM
presentations
  pending


                  sales
    sale


                hourglass
   clients

   mgc

   mvc
                   BML study to change the
                    customers experience
it’s about knowing
• who’s responsible for the VOC management?
• what are you/do you want to be famous for?
• what experiences will enhance that fame?
• is there a published customer recovery plan?
• can you hear the VO your C?
the 4D map

decide    what cx you want to create
define     what cx will support your decision

design    the steps and stages of your cx

deliver   do it, observe, review, re-decide
4 D process

     decide                     define
                                 what customer
                                    values




                                design
     deliver
                feedback loop



35
Consistency with Global Sales Processes
                                  The Toyota Internal CXM Path


                                                                                                        Deliver
               Decide                                  Define             Design


                                                                                               Deliver             Install
                                                                          Integrate
               Experience          Experience          Experience
   Evaluate                                                                                  Experience             CXM
                                                                         Engagement
                 Audit               Drivers             Pledge
                                                                                              Messages             Metrics
                                                                          Programs



                                • hard & soft
               • visit
 • existing                                          • create ‘Pledge’   • Top Team         • staged roll     • behaviour
                                  dierentiators
                 departments
   data                                             • evaluate          • Managers           out as            maps/KPI’s
                                • CX Themes
               • CX
   programs                                            current           • Internal sta     decided         • NPS
                 observations                          awareness         • Service sta    • train           • selected CX
                                                                         • Suppliers          advocates         measures

   Check
   Metrics
                                                    back to Decide                                 Senior/
                                                                                                 Department
                                                                                                    Mgrs
 • behaviour
   clues
 • NPS                                                                                         • behaviour clues
 • evaluate                                                                                    • NPS
   awareness
the cxm mantra



“Give people an experience they can’t get anywhere else
     and they won’t go anywhere else”
                                       Iven Frangi
measure and manage
plumbers
  maker


     brag


                                                      cleans up
                                                                             pay when
    choose
                                                                               happy
                                  on time
                                                                                         follow
                          time
                                                                                         up call
                                                                  explains
                          suits              completes
      use                                                         account
             receptionist you                   job



  tolerate
                 can’t                                                                  no follow
                                                                  big bill
               contact            turns up                                                 up
               plumber                                                         not
                                    late
                                             needs extra
  dislike                                                                     happy
                      inconvenient           equipment leaves a
                      appointment
                                                         mess
    hate


breaker
VOC - voice of the customer
we can’t hear the customer
mystery shopping cycle
“We will closely match a team of our
highly-skilled and rigorously selected
Mystery Shoppers with the type of
customer that you serve and supply them
with a detailed briefing document and
questionnaire to ensure that all your key
issues are addressed.

The research may be undertaken through
a single service or, increasingly, across a
number of services to ensure that an
overall picture emerges.”
Results!
            Use customer experience feedback to identify 
                           opportunities
Actual results of a Mindshare retail client over 3 months




                                  54% 
                                Product 
               40%                                                                                   8%
                              Recommen‐
                                                                                                    Sales 
             Product            dations
                                                                                                 Contribution
           Recommen‐                                    Led to
             dations
                                                                                    3% Sales 
                                                                                  Contribution

           Month 1             Month 3                                             Month 1       Month 3
      “I tried a million different strategies.  It wasn’t until I could “prove” to the staff that they were not 
      educating the customer that the improvement happened.”          Mindshare Client



                                                       CONFIDENTIAL
                                 COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
Results!
                      Set speciGic goals with employees
Actual results of a Mindshare retail client over 6 months




                                                                  11%
                                                                Growth in 
       8% Growth                                                 Service 
                                          7% Growth 
        in Top Box                                               Sales $                     “It doesn’t matter 
                                          in Customer 
          Service                                                                          what I think; what my 
                       Led to                Counts
          Scores                                                                             employees think.  
                                                                                           What matters is what 
                                                                                           the customers think.”
                                                                                               Mindshare Client
           Q1                                             Q2



                                                 CONFIDENTIAL
                           COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
Results!
Monitor progress toward goals, weekly or monthly
                                   Actual results of a Mindshare retail client over 12 
            $318,000
                                   months, normalized




                                                                   1,618 stores compared
                                                                   Mindshare stores (n=525)
                                                                   NON­Mindshare stores (n=1,053)
$300,000                     $300,000
                                                                   Mindshare stores grew +6%
                                               $297,000
                             BEFORE 
            AFTER 
BEFORE 
                                                                   NON­Mindshare stores declined ­1%
                             Mindshare
            Mindshare
Mindshare                                           N/A
                                                                   Source:  Client Internal Study, Spring, 2007

                            NON­Mindshare stores
  Mindshare stores




                                           CONFIDENTIAL
                     COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
eavesdropping on customers
eavesdropping on customers
hard v soft differentiators
    Greeting the customer
✓
    Courtesy, amiability
✓
    Helpfulness and availability of your staff
✓
    Staffs attention and eagerness to satisfy the customers needs
✓
    Technical knowledge of your staff
✓
    Commercial performances and complimentary sales
✓
    Respect of decoration, display and equipment standards
✓
    Atmosphere and special sales operations in the retail premises
✓
    Your business accessibility and business hours
✓
    Cleanliness, hygiene and order
✓
    Quality of after-sales service
✓
    Treatment of complaints and dissatisfaction
✓
outcomes
s,   ‣ Measuring customer experience (at the unit level) drives loyalty
,
     ‣ Measuring employee performance improves employee satisfaction and
        productivity for delivering the customer experience

     ‣ Measurement must be an ongoing, continuous process. (Take a movie,
        not a snapshot)
at
     ‣ Feedback should be real-time. (Not stale reports, filtered by a third
 d      party)

     ‣ Customers and staff can be your best source of innovative ideas.

     ‣ Money spent on CXM reaps 3 - 7 times investment.
s.
 r   ‣ Turn your customers into your mystery shoppers
f
“the CX steps”


•   evaluate what’s happening now - observation, CXM Audit, VOC tools

•   apply the 4D criteria to decide the new culture

•   map the steps for the culture change including the Customer Pledge and the
    behaviour templates

•   install the CX upgrades using the CX Advocate teams and the CX and business
    metrics

•   evaluate the 4D criteria and repeat

•   celebrate with the whole team, the customers and your accountant
“Customers are the best
  market researchers”
coffee anyone?
coffee anyone?
breaker or maker?




           z
breaker or maker?
promise vs delivery




           z
car dealer
  significant


                            brag
                       Mercedes Express
   what
                          choose
  people
   value         sales person or marketing offer


                  brag        use
                     style or type of vehicle
not significant
“a class beyond first”   Singapore Airlines
@ your business
  significant                                                      high




                            brag
                    Why would people brag about us?


 what
                                                               advocacy
                        choose
people
 value
                      Why would people choose us?




                              use
not significant                                                  low
                        Why would people use us



                    product/service
       commodity                                      differentiated
new jobs

Customer Experience Manager
Financial Services

Newport, UK 
The Company Our Client, a dynamic financial services organisation are looking for a
Customer Experience Manager


The Role

This role is a Group Function to maximise the Customer Experience across all Group
companies to improve customer product penetration and increase profits. This is a new
role that requires a self motivated individual that is sales driven to improve the customer
experience, across multiple brands, to enable increased sales and ensure requirements
of compliance are adhered to. Day to day management of Customer related Operations,
to ensure: FSA compliance including Treating the Customer Fairly Effective Reporting of
Customer Experience across all departments; Correct utilisation of tools for on  off line
and customer experience Effective Management of Complaints Quality Monitoring is
efficient and effective Development and implementation of above systems to improve
the customer experience and Group profitability.
the best one last

c an d o d o h ave
Customer Conversation Eavesdrop
Customers don’t always give us information where
and when we want it they just transmit. Listen in
and learn about your business.
Live Line - Real Time Customer Feedback
Give customers an opportunity to tell think about their
experience of your business, when they think it - 24/7.

Customer Xperience Audit
Quickly and easily see the map of the gap between
what your customers want and and what you
promise. Processes, procedures, people and profits.
Inside - Out Innovation
Let the people that do the job improve the job.
The 4 D principles applied to your business by
your people.
‘How to turn your customers
       into your sales team’
TEC 401                          Iven Frangi Dip Mktg, CSP
                          Customer Xperience Management
April 30 2009
Tamworth          p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au

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How to Turn Your Customers into your sales team - TEC 401

  • 1. ‘How to turn your customers into your sales team’ TEC 401 Iven Frangi Dip Mktg, CSP Customer Xperience Management April 30 2009 Tamworth p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au
  • 3. 3 ring business get keep grow customer
  • 4. customer satisfaction get keep = CS = grow
  • 5. satisfaction is not enough 62% of all satisfied customers never ‣ repurchase from the same supplier (Harvard Graduate School) 95% of brand awareness advertising does ‣ not work (CEO Chiat Day) 4 out of 5 sales in any category of business ‣ is driven by word of mouth.
  • 6.
  • 7. today • look at CX in business • how to listen to your customers in real time • how to get your customers to become advocates • the steps to take to install CX in your business • some tools you can use easily and inexpensively • leave with things you can do tomorrow
  • 8. defining the terms what a customer what a customer = - customer satisfaction perceives they expects get what a what a customer = - customer customer sacrifice wants settles for what a what a customer : company company experience delivers has promised
  • 9. customer centric business keep get C grow
  • 10. customer experience market- sales ing cx loyalty
  • 11. customers to advocates significant high brag what choose customer advocacy values use low not significant product/service commodity differentiated
  • 15.
  • 16.
  • 17.
  • 19. whose shoes? “stop thinking like an seller - start thinking like a customer”
  • 20.
  • 21. In a down economy •risk is avoided at all costs •the known supersedes the unknown •management retreats to fail safes.
  • 22. is CX profitable? Harris Interactive Customer Experience Report 2008
  • 23. why bother? “Using data from nearly 4,700 consumer surveys, Forrester examined the correlation between the customer experiences delivered by more than 100 US firms and the loyalty of their customers Our analysis shows that good customer experience correlates to consumers' willingness to repurchase, reluctance to switch, and likelihood to recommend firms across all 12 industries we examined.” Forrester Research Feb 09
  • 25. are you on trend?
  • 27. Xperience matters ‣ makers or breakers? ‣ hard or soft differentiators ‣ xperience or satisfaction? ‣ xperience or loyalty?
  • 29. new technology + old thinking = same old outcome
  • 30. your CX premise company internal support external marketing ‘enabling ‘setting promises’ promises’ employees customers experience delivery ‘keeping promises’
  • 32. leads prospects CXM presentations pending sales sale hourglass clients mgc mvc BML study to change the customers experience
  • 33. it’s about knowing • who’s responsible for the VOC management? • what are you/do you want to be famous for? • what experiences will enhance that fame? • is there a published customer recovery plan? • can you hear the VO your C?
  • 34. the 4D map decide what cx you want to create define what cx will support your decision design the steps and stages of your cx deliver do it, observe, review, re-decide
  • 35. 4 D process decide define what customer values design deliver feedback loop 35
  • 36. Consistency with Global Sales Processes The Toyota Internal CXM Path Deliver Decide Define Design Deliver Install Integrate Experience Experience Experience Evaluate Experience CXM Engagement Audit Drivers Pledge Messages Metrics Programs • hard & soft • visit • existing • create ‘Pledge’ • Top Team • staged roll • behaviour dierentiators departments data • evaluate • Managers out as maps/KPI’s • CX Themes • CX programs current • Internal sta decided • NPS observations awareness • Service sta • train • selected CX • Suppliers advocates measures Check Metrics back to Decide Senior/ Department Mgrs • behaviour clues • NPS • behaviour clues • evaluate • NPS awareness
  • 37. the cxm mantra “Give people an experience they can’t get anywhere else and they won’t go anywhere else” Iven Frangi
  • 39. plumbers maker brag cleans up pay when choose happy on time follow time up call explains suits completes use account receptionist you job tolerate can’t no follow big bill contact turns up up plumber not late needs extra dislike happy inconvenient equipment leaves a appointment mess hate breaker
  • 40. VOC - voice of the customer
  • 41.
  • 42. we can’t hear the customer
  • 44.
  • 45. “We will closely match a team of our highly-skilled and rigorously selected Mystery Shoppers with the type of customer that you serve and supply them with a detailed briefing document and questionnaire to ensure that all your key issues are addressed. The research may be undertaken through a single service or, increasingly, across a number of services to ensure that an overall picture emerges.”
  • 46. Results! Use customer experience feedback to identify  opportunities Actual results of a Mindshare retail client over 3 months 54%  Product  40%  8% Recommen‐ Sales  Product  dations Contribution Recommen‐ Led to dations 3% Sales  Contribution Month 1  Month 3  Month 1 Month 3 “I tried a million different strategies.  It wasn’t until I could “prove” to the staff that they were not  educating the customer that the improvement happened.”          Mindshare Client CONFIDENTIAL COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
  • 47. Results! Set speciGic goals with employees Actual results of a Mindshare retail client over 6 months 11% Growth in  8% Growth  Service  7% Growth  in Top Box  Sales $ “It doesn’t matter  in Customer  Service  what I think; what my  Led to Counts Scores employees think.   What matters is what  the customers think.” Mindshare Client Q1 Q2 CONFIDENTIAL COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
  • 48. Results! Monitor progress toward goals, weekly or monthly Actual results of a Mindshare retail client over 12  $318,000 months, normalized 1,618 stores compared Mindshare stores (n=525) NON­Mindshare stores (n=1,053) $300,000 $300,000 Mindshare stores grew +6% $297,000 BEFORE  AFTER  BEFORE  NON­Mindshare stores declined ­1% Mindshare Mindshare Mindshare N/A Source:  Client Internal Study, Spring, 2007 NON­Mindshare stores Mindshare stores CONFIDENTIAL COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVED
  • 51. hard v soft differentiators Greeting the customer ✓ Courtesy, amiability ✓ Helpfulness and availability of your staff ✓ Staffs attention and eagerness to satisfy the customers needs ✓ Technical knowledge of your staff ✓ Commercial performances and complimentary sales ✓ Respect of decoration, display and equipment standards ✓ Atmosphere and special sales operations in the retail premises ✓ Your business accessibility and business hours ✓ Cleanliness, hygiene and order ✓ Quality of after-sales service ✓ Treatment of complaints and dissatisfaction ✓
  • 52. outcomes s, ‣ Measuring customer experience (at the unit level) drives loyalty , ‣ Measuring employee performance improves employee satisfaction and productivity for delivering the customer experience ‣ Measurement must be an ongoing, continuous process. (Take a movie, not a snapshot) at ‣ Feedback should be real-time. (Not stale reports, filtered by a third d party) ‣ Customers and staff can be your best source of innovative ideas. ‣ Money spent on CXM reaps 3 - 7 times investment. s. r ‣ Turn your customers into your mystery shoppers f
  • 53. “the CX steps” • evaluate what’s happening now - observation, CXM Audit, VOC tools • apply the 4D criteria to decide the new culture • map the steps for the culture change including the Customer Pledge and the behaviour templates • install the CX upgrades using the CX Advocate teams and the CX and business metrics • evaluate the 4D criteria and repeat • celebrate with the whole team, the customers and your accountant
  • 54. “Customers are the best market researchers”
  • 57.
  • 58.
  • 59.
  • 63. car dealer significant brag Mercedes Express what choose people value sales person or marketing offer brag use style or type of vehicle not significant
  • 64. “a class beyond first” Singapore Airlines
  • 65. @ your business significant high brag Why would people brag about us? what advocacy choose people value Why would people choose us? use not significant low Why would people use us product/service commodity differentiated
  • 66.
  • 67.
  • 68.
  • 69.
  • 70. new jobs Customer Experience Manager Financial Services Newport, UK The Company Our Client, a dynamic financial services organisation are looking for a Customer Experience Manager The Role This role is a Group Function to maximise the Customer Experience across all Group companies to improve customer product penetration and increase profits. This is a new role that requires a self motivated individual that is sales driven to improve the customer experience, across multiple brands, to enable increased sales and ensure requirements of compliance are adhered to. Day to day management of Customer related Operations, to ensure: FSA compliance including Treating the Customer Fairly Effective Reporting of Customer Experience across all departments; Correct utilisation of tools for on off line and customer experience Effective Management of Complaints Quality Monitoring is efficient and effective Development and implementation of above systems to improve the customer experience and Group profitability.
  • 71. the best one last c an d o d o h ave
  • 72. Customer Conversation Eavesdrop Customers don’t always give us information where and when we want it they just transmit. Listen in and learn about your business. Live Line - Real Time Customer Feedback Give customers an opportunity to tell think about their experience of your business, when they think it - 24/7. Customer Xperience Audit Quickly and easily see the map of the gap between what your customers want and and what you promise. Processes, procedures, people and profits. Inside - Out Innovation Let the people that do the job improve the job. The 4 D principles applied to your business by your people.
  • 73.
  • 74. ‘How to turn your customers into your sales team’ TEC 401 Iven Frangi Dip Mktg, CSP Customer Xperience Management April 30 2009 Tamworth p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au