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![Are You Willing to Listen to Your
Customers as Much as Zappos?
"Unlike most websites … Zappos prominently displays
a toll-free customer-service phone number. There are
no limits on call times, and the resulting sessions
occasionally resemble protracted talk therapy.
On July 5 [2009], a 22-year-old Customer Loyalty Team
member named Britnee Brown, who has been with the
company for a little more than a year, took a call that
was a record 5 hours, 25 minutes, and 31 seconds
long, from a woman on the East Coast interested in
Masai Barefoot Technology shoes."
Source: The New Yorker, 14 September 2009](https://image.slidesharecdn.com/thecustomerexperiencescenario-13392189465956-phpapp02-120609001822-phpapp02/85/The-Customer-Experience-Scenario-9-320.jpg)
Uploaded byEllery Wee
The Customer Experience Scenario
1. The document discusses improving an organization's customer experience across multiple channels. It highlights that customers now care more about experience than in the past and expect consistency across channels. 2. Seven types of projects are outlined that can improve customer experience, such as listening to feedback, identifying weak points, and designing memorable experiences. Measurement metrics for customer satisfaction, loyalty, and brand are also covered. 3. A strategy for customer experience improvement involves understanding the starting point, setting goals to move above average or stay on top, and looking outside the industry for inspiration. Technologies can help with various project types, though no single vendor dominates.
The Customer Experience Scenario
- 1. The Customer Experience Scenario Ed Thompson This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
- 2. Is Your OrganizationSelling Experiences, Or Is It Still Thinking in Terms of Products? The experience economy Commodity Goods Experience 1¢ to 2¢ a cup 5¢ to 25¢ a cup $2 to $5 a cup
- 3. Does Your OrganizationHave an Experience Tab on Its Main Website?
- 4. Has Anyone Writtena Book About Your Organization's Customer Experience?
- 5. How Does YourCorporate Blog Stack Up Against Southwest's?
- 6. Is Your Organization'sCustomer Experience as Memorable as Apple's?
- 7. Has Your Organization'sCustomer Experience Changed the Market?
- 8. Will One InteractionStay With Your Customer Forever? el Bulli, Best Restaurant in the World in 2002, 2006, 2007, 2008, 2009 Closed 2011
- 9. Are You Willingto Listen to Your Customers as Much as Zappos? "Unlike most websites … Zappos prominently displays a toll-free customer-service phone number. There are no limits on call times, and the resulting sessions occasionally resemble protracted talk therapy. On July 5 [2009], a 22-year-old Customer Loyalty Team member named Britnee Brown, who has been with the company for a little more than a year, took a call that was a record 5 hours, 25 minutes, and 31 seconds long, from a woman on the East Coast interested in Masai Barefoot Technology shoes." Source: The New Yorker, 14 September 2009
- 10. How Do YouStack Up Against Those Who Are on Top of Their Game?
- 11. Do Your CustomersWillingly Tattoo Themselves With Your Corporate Logo?
- 12. Customers Care MoreAbout the Customer Experience Than in the Past 1. 40% of organizations cite ‘complexity’ as the greatest barrier to improving multichannel customer experience, overtaking ‘organizational structure’ since 2010. 2. Only 26% of companies have a well-developed strategy in place for improving customer experience. Source: Econsultancy MultiChannel Customer Experience Report 3. 50% of smartphone users would prefer to use a mobile customer service application to try to resolve their customer service issue before calling into the contact center. Source: SpeechCycle and Echo Research Study 4. Customers who engage with companies over social media spend 20% to 40% more money with those companies than other customers. Source: Bain & Company Report – Putting Social Media to Work 5. 63% percent of online adults are less likely to buy from the same company via other purchase channels if they experienced a problem with a transaction on their mobile phones. Source: Tealeaf Mobile Transaction Research Report 2011 6. $289 – Average annual value of each customer relationship lost to a competitor or abandoned. Source: Genesys Report – The Cost of Poor Customer Service 7. Consumers prefer to resolve their customers service issues using the telephone (90%), face to face (75%), company website or email (67%), online chat (47%), text message (22%), social networking site (22%). America Express 2011 Global Customer Service Barometer
- 13. CIO Survey 2012:CIOs See Customer Experience as the Greatest Opportunity for IT Innovation Ranked First Ranked Last Customer experience 35% (products, services, etc.) 6% How we learn and 18% change as a business 13% Customer engagement 15% marketing & sales 9% The way we get ideas 12% and make decisions 16% The way we extract 10% value from customers 24% The manufacturing and 11% service creation process 32% Distribution of Respondents 12
- 14. Key Issues 1. Whatis a customer experience, and how is its improvement measured? 2. Which projects will deliver the most positive customer experiences? 3. How is a strategy created to start to improve the customer experience? 4. Which technologies and vendors are best for customer experience management?
- 15. Definitions • The dictionarydefines experience as: "The sum total of conscious events." • Gartner defines customer experience as: "The customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier's employees, channels, systems or products." • Gartner defines customer experience management as: "The practice of designing and reacting to customer interactions in order to meet or exceed customer expectations and so increase customer satisfaction, loyalty and advocacy."
- 16. The Measurable Benefitsof Customer Experience Management Customer Satisfaction Scores Average Cycle Times Customer Mystery Shopper Scores Timeliness Product Review Ratings Competitive Benchmarks Satisfaction First-Call Resolution Rates Number of Support Requests Customer and Employee Referrals Average Order Size Deactivation/Reactivation Costs Average Customer Tenure Loyalty/ Customer Attrition/Churn Rates Purchase Frequency Loyalty Program Enrolled/Participating Adoption of New Products Advocacy Brand Advocates/Net Promoters Use of Multiple Channels No. of Product or Service Upgrades No. of Repeat Orders No. of Customers "Likely to Defect" No. of Customers Interacting Price Sensitivity Brand/ Brand Value Trust Rating Social Network Participation, Likes Reputation Brand Perception (Recognition, Website Usability Benchmark Credibility, Relevance, Influence) Sentiment Scores Defect Rates Delivery Timeliness and Accuracy Quality Tolerance of New Processes Product Return Rates Accuracy of Inventory and Pricing End-to-End Transaction Times
- 17. Key Issues 1. Whatis a customer experience, and how is its improvement measured? 2. Which projects will deliver the most positive customer experiences? 3. How is a strategy created to start to improve the customer experience? 4. Which technologies and vendors are best for customer experience management?
- 18. Seven Types ofCustomer Experience Project Listen, From Out Act as Open Get Alter Design Think, Do to In One Up Personal Attitudes Better Collect Feedback Find Moments of Achieve More Accessible Personalize Empower Have a Multichannel Truth Consistent Self-service Products Employees Strategy collection Process modeling Experiences Configure to order Education and Executive Track for Real-time alerts and Identify the weakest Single view of customer Mass training enlightening actions link customer customization Cultural values Ideal and real Add channels Automate and Recognition New product Ownership of the experiences escalate development experience Program and project plans Analyze Opinion Redesign Share Answers Demonstrate Customize Offers Make Clear the Brand Value analysis Processes Knowledge Trust Bundling Responsibility Execution Market research Quality controls management Honor privacy product/service Governance and Values and Trading efficiency Skills inventory Share data Personal pricing policing promise Segmentation and experience Better search Use only what Responsibility Reputation Propensity modeling you need Compensation and Communication contracts Start a Adapt in Real Time Multichannel Encourage Stripped Down Recruit Differently Design the Conversation Real-time rerouting Availability Participation Simplification Profiling the Experience Expectations setting Analytical-driven Multichannel Review and One size fits all personalities Benchmark Capturing intent process decisions integration comparison Standardization Balance teams usability and Device- Communities and scale empathy Manage dialogue Recruit to brand independent Social networks Digital design interaction cool Virgin Media Lego Argos Missha Nike Southwest Disney Whirlpool UPS Clarks Threadless Garmin Zappos Nespresso Giff Gaff BMW
- 19. Key Issues 1. Whatis a customer experience, and how is its improvement measured? 2. Which projects will deliver the most positive customer experiences? 3. How is a strategy created to start to improve the customer experience? 4. Which technologies and vendors are best for customer experience management?
- 20. Know Your StartingPoint for Customer Experience Management 3. Staying on Top + Pricing Billing Availability Delivery Build Quality £/$ Returns 2. Moving Above Repairs Average 1 2 3 4 5 6 7 8 9 10 Couldn't Feels Feels Feels Couldn't Bad Neutral Good Return Feel Feel Worse Better - 1. Get the Commitment/Investment Basics Right Source: Harding & Yorke
- 21. Staying on Top:Head for Higher Levels of Customer Experience Maturity • Customers don't forget. After the recession, those companies that did the right thing are rewarded. Those that kicked customers when they were down suffer. • Seek out unhappiness. Dissatisfied customers that 1% have their problems resolved are more loyal than those that never had a problem. Culture • Look outside your industry. If you've reached the top 4% Change of your industry, look at others for inspiration. Invite them to share best practices. Profit 20% Parity Execs 30% Engaged VOC 45% Validated Fragmented Focus Initial Developing Defined Managed Optimizing
- 22. Key Issues 1. Whatis a customer experience, and how is its improvement measured? 2. Which projects will deliver the most positive customer experiences? 3. How is a strategy created to start to improve the customer experience? 4. Which technologies and vendors are best for customer experience management?
- 23. Age and GenderRecognition and Suggestions on Japanese Vending Machines
- 24. Technologies Can Helpin Multiple Customer Experience Project Types Listen, From Out Act as Open Get Alter Design Think, Do to In One Up Personal Attitudes Better Collect Feedback Find Moments of Achieve More Accessible Personalize Empower Have a EFM Truth Consistent Web service Products Employees Strategy Data mining Experiences Product E-learning/LMS Consultants Survey tools Tracking Lead mgmt. MDM configuration WFO Advisors Event analytics Field force Segmentation BPM optimization Pricing mgmt. Sales analytics Branding BPM QA monitoring BI ERMS Remote New product CSS analytics Value analysts monitoring development Social media WFO Web analytics monitoring ERMS Storefront Analyze Opinion Redesign Share Answers Demonstrate Customize Offers Make Clear the Brand Customer value Processes Knowledge Trust Product Responsibility Execution Analytics BPM modeling management Data privacy configuration HCM, ICM MRM Data mining Data mining Search Security tools Pricing mgmt. Employee contract EMM Segmentation Workflow Web service Partner mgmt. PIM, content mgmt. management Content mgmt. Web analytics Content Product catalog QA monitoring Community Sentiment management Order mgmt. WFO mgmt. Start a Adapt in Real Time Multichannel Encourage Stripped-Down Recruit Differently Design the Conversation Business activity Availability Participation Simplification Recruitment Experience Dialogue monitoring Application Review and Order mgmt. Induction Web analytics management Workflow integration comparison BPM modeling Web design technologies Community mgmt. ERMS In-line, event-driven Mobile Web design Content Search analysis technologies Community mgmt. mgmt. Storefront Web service ERMS, IVR, SMS Social networking Storefront
- 25. There is NoCustomer Experience Market 100 Vendors in 100 Different Markets
- 26. CE Technology Matrices: CustomerService Applications Achieving ROI Easier Moderate Challenging Source: Balance Customer Experience With Customer Service Productivity in Customer Service Automation Initiatives, September 2011
- 27. Recommendations STOP: START: • Banging your head against a wall • Finding the spark that is if your executive leadership are motivating executives — fear of not really committed to it. humiliation or pride at leading the • Trying to do everything at once, industry? focus on the biggest pain point for • Consolidating customer feedback customers in one department in sources and become the voice of one business unit for six months. the customer internally. • Making do with part time • By appointing a VP or head of resources. Instead build the team. Customer Experience. You need both a coordinating • Inspiring, seek out stories, department at the head office, but anecdotes, examples and case also dotted line links to individuals studies of what others have in every department. achieved, and mimic if achievable.
- 28. Improving the Multichannel Customer Experience Ed Thompson This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.