The power of great customer experience in today’s world. Olivier Mourrieras & Markus Hormness
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Very interactive session on Customer Experience by Olivier Mourrieras, CX consultant & former E-On Executive and Markus Edgar Hormeß, Service Innovation Expert, Global service Jam. Great start to this session with connected thumb wrestling among all audience! 'CX is the new battle field’. CX is more important than product and services. where the customers starts in your company?
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The power of great customer experience in today’s world. Olivier Mourrieras & Markus Hormness
- 1. ThePowerofgreatcustomer The power of great customer experience 1
- 2. ThePowerofgreatcustomer – We work with E.ON, Orange, BASF, Swisscom, UPS, ENGIE, Jahia, PwC, JMV Brazil, Cognizant, Federal Government of Australia, … – We also teach, eg. at IE Business School, Management Center Innsbruck, Oslo School of Architecture & Design Olivier Mourrieras Board advisor Founder of CX-impact Board advisor at TribeCX Emeritus member of the NPS Loyalty Forum Markus Edgar Hormeß Service Design and Innovation Coach Adjunct Professor Service Design @ IE Business School Co-Founder Global Service Jam Author “This is Service Design Doing”
- 4. ThePowerofgreatcustomer Let’s start with an example…
- 5. ThePowerofgreatcustomer Example: Survey: the top reasons to recommend a hospital.
- 6. ThePowerofgreatcustomer 1 2 3 4 5 6 7 8 9 10 The top ten reasons to recommend a hospital. ?
- 7. ThePowerofgreatcustomer The top ten reasons to recommend a hospital. 1 The team worked together well to take care of me. 2 The hospital was generally friendly and cheerful. 3 The hospital reacted well to my complaints and worries. 4 My special and personal wishes were taken into account. 5 The staff understood the difficulty of my situation. 6 I was well informed. 7 The staff made a real effort to include me in decisions on my treatment. 8 The nursing staff took my wishes into account. 9 The nursing staff were well trained and professional. 10 The nursing staff were friendly and polite.
- 8. ThePowerofgreatcustomer The top ten reasons to recommend a hospital. 1 The team worked together well to take care of me. 2 The hospital was generally friendly and cheerful. 3 The hospital reacted well to my complaints and worries. 4 My special and personal wishes were taken into account. 5 The staff understood the difficulty of my situation. 6 I was well informed. 7 The staff made a real effort to include me in decisions on my treatment. 8 The nursing staff took my wishes into account. 9 The nursing staff were well trained and professional. 10 The nursing staff were friendly and polite. 14
- 9. ThePowerofgreatcustomer “Getting it right” is a hygiene factor – customers don’t notice it until it’s missing. Instead, they judge us based on the experience we offer and the value we create for them.
- 11. ThePowerofgreatcustomer Option 1: Do we offer faster delivery at a premium? OR Option 2: Do we offer free but standard delivery?
- 12. ThePowerofgreatcustomer The customer choice was : ON TIME!
- 14. ThePowerofgreatcustomer “CUSTOMER EXPERIENCE IS THE NEW BATTLEFIELD”
- 15. ThePowerofgreatcustomer 89% of companies expect to compete mostly on the basis of customer experience by 2016 – vs. 36% four years ago. Gartner Research, 2015 Poor customer experiences result in an estimated $83 Billion loss by US enterprises each year because of defections and abandoned purchases. Forbes, 2013 Customer power has grown, as 73% of firms trust recommendations from friends and family, while only 19% trust direct communication. Forrester report: “Consumer “Ad-itudes” Stay Strong”, 2012 Forbes, 2013 86% of consumers will pay more for a better customer experience. RightNow Customer Experience Impact Report, 2011 “Service Design will be at the core of where we want to go!”
- 17. ThePowerofgreatcustomer Customers // Clients // Users // Employees // Partners // Colleagues // Learners // … 17
- 18. ThePowerofgreatcustomer Customers // Clients // Users // Employees // Partners // Colleagues // Learners // … It’s about PEOPLE 18
- 19. ThePowerofgreatcustomer Meet Jake Images courtesy of Jakob Schneider, Marc Stickdorn This is Service Design Thinking http://www.tisdt.com
- 20. ThePowerofgreatcustomer Reading a travel magazine Images courtesy of Jakob Schneider, Marc Stickdorn This is Service Design Thinking http://www.tisdt.com
- 21. ThePowerofgreatcustomer Going to a travel agency
- 26. ThePowerofgreatcustomer Check-in process with long line
- 27. ThePowerofgreatcustomer Checking in, baggage drop-off
- 28. ThePowerofgreatcustomer Going through security in your socks
- 29. ThePowerofgreatcustomer Boarding: How tall is the guys next to me?
- 32. ThePowerofgreatcustomer Staying at the hotel
- 33. ThePowerofgreatcustomer Attending a diving school
- 34. ThePowerofgreatcustomer Dining a a local restaurant
- 38. ThePowerofgreatcustomer P.S.: This works for any product* *Google: Vargo, Lush, service dominant logic
- 41. ThePowerofgreatcustomer41 word of mouth social media Meet Klaus
- 46. ThePowerofgreatcustomer46 How can we orchestrate all this to achieve a positive and consistent overall experience?
- 48. ThePowerofgreatcustomer And: What does our organisation have to do to deliver this customer experience? Physical evidence Storyboard Customer actions Frontstage actions Backstage actions Support processes and systems
- 51. ThePowerofgreatcustomer Use internal feedback to align your organisation
- 52. ThePowerofgreatcustomer Use internal feedback to align your organisation “On a scale 0-10, how likely is it that you would recommend ‘Support Function’ to a colleague?”
- 54. ThePowerofgreatcustomer "People don't want to buy a quarter-inch drill. They want a quarter-inch hole!“ Theodore Levitt 54
- 55. ThePowerofgreatcustomer55 Actually, people do not want holes, people want a comfortable living room.
- 56. ThePowerofgreatcustomer So, who succeeds in customer experience?
- 57. ThePowerofgreatcustomer Photo: (c) Kerry // Flickr // https://www.flickr.com/photos/passiveaggressive/911474278
- 59. ThePowerofgreatcustomer Although, listening alone isn’t enough 0 25 50 75 100 Collect Feedback Alert Staff Use Insight Deploy & Improve Tell Customers 5% 10% 35% 45% 95% Source: Gartner
- 60. ThePowerofgreatcustomer It only works when it all company—an industry not known for satisfied customers—said creating a customer-centric culture takes a targeted effort. “One of our challenges is bringing customer centricity into all levels of the organization. Most of our organization is made up of technology foundation required to make sense of it all and distribute the resulting insight throughout the organization. Data and systems integration and visibility across the enterprise, giving employees the power to deliver and innovate around customer experience, and aligning IT decision-making with customer experience demands were all cited as extremely important in delivering a superior customer experience. Yet only around a quarter of respondents said their companies perform well in these areas. The chief customer officer (CCO) at a multibillion-dollar institutional investment and benefits provider is beginning to address some of these issues by breaking down barriers between customer experience and IT strategy and execution. “We realized we weren’t moving fast enough, so our CIO handed 36 of his technologists to me,” said the CCO. “You can’t get meaningful customer work done if there are functional lines getting in the way. So we have arranged ourselves entirely around the customer under one structure. We make all the decisions—and we’re on the hook for the outcomes.” Having senior leaders define ideal customer experiences and translate those into a well-thought-out strategy is also key. Ideally, executives convert these intended outcomes into a “detailed and prioritized customer experience initiative road map that incorporates a well-thought-out data strategy, integration of databases, and tools to provide a single view of the customer, the means of delivering the right intelligence to the frontline employees to manage customers’ experiences, and staff training,” said the senior vice president of strategic analytics for a marketing services firm. “When such an exercise hasn’t taken place, customer experience is only FIGURE 2 THE MOST IMPORTANT FACTORS TO DELIVERING AN EFFECTIVE CUSTOMER EXPERIENCE How important is each factor in delivering a relevant and reliable customer experience? How effective is your organization in this area? [PERCENTAGE INDICATING 8,9. OR 10 ON A SCALE OF 1-10) •IMPORTANCE •EFFECTIVENESS Acustomer-centricculture Management/leadershipbuy-in Visibilityintoandunderstandingoftheendcustomerexperience Aclearlycommunicatedcustomerexperiencestrategy Clarityaroundcustomerexperiencevalue/ROI Dataandsystemsintegrationacrossallchannelsandproducts Visibilityofdataacrossallfunctionalareas Employeeswhoareempoweredand/orautonomousindeliveringorinnovatingaroundcustomerexperience AlignmentbetweenITdecisionsandcustomerexperiencedemands 90% 45% 88% 49% 87% 35% 86% 34% 79% 29% 78% 25% 77% 26% 76% 31% 76% 25% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, APRIL 2017 company—an industry not known for satisfied customers—said creating quired to make te the resulting ganization. ion and prise, giving eliver and r experience, making e demands y important stomer nd a quarter companies s. r (CCO) at utional rovider is e of these barriers ence and IT We realized we gh, so our CIO gists to me,” et meaningful ere are the way. So we ntirely around tructure. We nd we’re on the ne ideal d translate out strategy ives convert into a customer map that ht-out data tabases, and iew of the elivering e frontline tomers’ FIGURE 2 THE MOST IMPORTANT FACTORS TO DELIVERING AN EFFECTIVE CUSTOMER EXPERIENCE How important is each factor in delivering a relevant and reliable customer experience? How effective is your organization in this area? [PERCENTAGE INDICATING 8,9. OR 10 ON A SCALE OF 1-10) •IMPORTANCE •EFFECTIVENESS Acustomer-centricculture Management/leadershipbuy-in Visibilityintoandunderstandingoftheendcustomerexperience Aclearlycommunicatedcustomerexperiencestrategy Clarityaroundcustomerexperiencevalue/ROI Dataandsystemsintegrationacrossallchannelsandproducts Visibilityofdataacrossallfunctionalareas Employeeswhoareempoweredand/orautonomousindeliveringorinnovatingaroundcustomerexperience AlignmentbetweenITdecisionsandcustomerexperiencedemands 90% 45% 88% 49% 87% 35% 86% 34% 79% 29% 78% 25% 77% 26% 76% 31% 76% 25% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, APRIL 2017 Strategy and commitment Understanding customers Culture and management Experience improvement, design and innovation ✓ Strategy and commitment ✓ Understanding customers ✓ Culture and management ✓ Experience improvement, design and innovation
- 61. ThePowerofgreatcustomer Strategy and commitment: Why we do things "We are Ladies and Gentlemen serving Ladies and Gentlemen" “A better way forward”
- 62. ThePowerofgreatcustomer Understanding customers: Who needs what? Consolidate and communicate customer insights such as : Segmentation Persona Sollicited feedback Unsollicited feedback Competitive analysis Research Observation Operational performance …
- 63. ThePowerofgreatcustomer Culture and Management: How we do things It’s about PEOPLE, attitudes and behaviours.
- 64. ThePowerofgreatcustomer Experience Improvement, Design and Innovation: What we do In huddles
- 65. ThePowerofgreatcustomer Experience Improvement, Design and Innovation: :What we do Going to root causes
- 66. ThePowerofgreatcustomer MAKE SURE YOU SOLVE THE RIGHT PROBLEM Experience Improvement, Design and Innovation: :What we do DISCOVER MAKE SURE YOU SOLVE THE RIGHT PROBLEM D IV ER G E IDEAS,ALTERNATIVES,OPPORTUNITIES C O N V ER G E DEFINE DEVELOP TIME DELIVER THE DOUBLE DIAMOND 88/8904 The core activities of service design Service Design
- 67. ThePowerofgreatcustomer How to innovate or improve your customer
- 68. ThePowerofgreatcustomer DISCOVER MAKE SURE YOU SOLVE THE RIGHT PROBLEM D IV ER G E IDEAS,ALTERNATIVES,OPPORTUNITIES C O N V ER G E DEFINE DEVELOP TIME DELIVER THE DOUBLE DIAMOND 88/8904 The core activities of service design MAKE SURE YOU SOLVE THE RIGHT PROBLEM Service design is a structured process
- 69. ThePowerofgreatcustomer It is an iterative and exploratory processIt is an iterative process. This is Service Design Thinking. Marc Stickdorn / Markus Hormeß / Adam Lawrencepwc 3 August 2015 The Squiggle by Damien Newman from Central Inc.
- 70. ThePowerofgreatcustomer It is an iterative process: move forward, and adapt 70 Iteration Planning DAY-TO-DAY MANAGEMENT AND COMMUNICATION Planned Iterations Team Retrospective
- 71. ThePowerofgreatcustomer Four core activities of service design IMPLEM ENTATION PROTOT YPING RES EARCH IDEA TION DATA VISUALIZATION AND ANALYSIS DATA COLLECTION CHANGE MANAGEMENT SOFTWARE DEVELOPMENT SERVICE DESIGN/ ARCHITECTURE SERVICE DESIGN/ PRODUCT MANAGEMENT PRE-IDEATION METHODS GENERATING MANY IDEAS ADDING DEPTH/ DIVERSIFYING IDEAS UNDERSTANDING/ CLUSTERING/RANKING REDUCING OPTIONS SERVICE PROCESSES AND EXPERIENCES OBJECTS AND ENVIRONMENTS PROTOTYPING FOR THE DIGITAL FURTHER METHODS ECOSYSTEMS AND BUSINESS VALUE
- 74. ThePowerofgreatcustomer74 Surveys, Tracking, Big Data, A/B Testing, Heatmaps, Conversion analysis, Customer Segmentation and many more Contextual interviews, Participant observation, Cultural probes, Workalong, Self-documentation, Non-participant observation, Mobile ethnography and many more Quantitative Qualitative
- 79. ThePowerofgreatcustomer Analyse you data: As-is Journey MappingCUSTOMER JOURNEY MAP 1 2 3 4 5 6 7 8 9 10 P R E - S E R V I C E S E R V I C E P O S T - S E R V I C E JAKE Slip into your customer's shoes RoX,Vienna @MrBlackmountain Identify needs, pain points
- 80. ThePowerofgreatcustomer Analyse you data: System mapping Identify stakeholders and relationships
- 83. ThePowerofgreatcustomer Brain storming or brain sketching
- 86. ThePowerofgreatcustomer Desktop walkthroughs Pic: This is Service Design Doing
- 87. ThePowerofgreatcustomer Simulation Investigative rehearsalPic: This is Service Design Doing
- 89. ThePowerofgreatcustomer Wireframes and click dummies Pic: WorkPlayExperience
- 94. ThePowerofgreatcustomer Advertisement Pic: This is Service Design Doing
- 100. A new journey map does not mark the end of a service design project.
- 103. Implementation sprints CUSTOMER EXPERIENCE SPRINTS CX ANALYSIS IMPLEMENTATION & DEPLOYMENT IDENTIFICATION OF CRITICAL TOUCHPOINTS IDEATION & REQUIREMENTS PROTOTYPING & DEVELOPMENT This is Service Design Thinking. Marc Stickdorn / Markus Hormeß / Adam Lawrencepwc 3 August 2015
- 104. ThePowerofgreatcustomer104 100 ideas 20 concept sketches 4 physical prototypes per team in only 8 hours
- 106. ThePowerofgreatcustomer106 1. Empty room Pic: Byron Stewart & McDonalds
- 107. ThePowerofgreatcustomer107 2. LO-FI mock-up Pic: Byron Stewart & McDonalds
- 108. ThePowerofgreatcustomer108 3. Technical mock-up Pic: Byron Stewart & McDonalds
- 109. ThePowerofgreatcustomer109 4. Field test Pic: Byron Stewart & McDonalds
- 113. ThePowerofgreatcustomer113 C In prototyping and implementation, you open up by exploring and building potential solutions and then focus again through evaluation and decision making. rocess etween phases unities) phases sions). diverging converging Yes, and… / Yes, but…
- 114. ThePowerofgreatcustomer CFO : ”Yes, and… CX and financials are confluent” 5 million customers Churn : 10% Disconnection Cost : £10 Acquisition Cost: £160 +1pt NPS 1% Less Churn 5K Customers £850K less disconnection and Gross Margin/Cust. : £150 +0,75% sales 1000 customers £150K more Gross Margin +1pt NPS/year +£1M Net Present Value/ year Growth : 130K Customers/ year
- 116. ThePowerofgreatcustomer Meet your customers? “Yes, and ... all of a sudden you realise the difference it can make…”
- 117. ThePowerofgreatcustomer It kind of worked… 1H2011 2H2011 1H2012 2H2012 1H2013 NPS Benchmark Performance E.ON
- 118. ThePowerofgreatcustomer 1H2011 2H2011 1H2012 2H2012 1H2013 NPS Benchmark Performance E.ON Best Competitors but it worked for our competitors too
- 119. ThePowerofgreatcustomer Until we trained 1500 service designers. 1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 NPS Benchmark Performance E.ON Best Competitors
- 123. ThePowerofgreatcustomer Thank you Olivier Mourrieras https://www.linkedin.com/in/ oliviermourrieras cx-impact.com Markus Hormess (@markusedgar) https://www.linkedin.com/in/ markushormess workplayexperience.com Try out service design by participating in a Jam: planet.globalservicejam.org www.govjam.org Check out journey mapping software and free download of paper templates: www.smaply.com 1 1 also for design thinking, cx design, service marketing, human- centred design, and whatever you call what you’re doing … APPLYING SERVICE DESIGN AND DESIGN THINKING IN THE REAL WORLD A PRACTITIONERS’ HANDBOOK Book, school and free method library: www.tisdd.com