TeleFaction offers companies tools to increase customer satisfaction, loyalty, and sales through real-time customized feedback. They listen to customers to understand their experiences. The presentation discusses why managing customer experiences is important, compares customer experience management to customer relationship management, and provides a case study of how Danske Bank uses feedback to improve customer satisfaction. It also provides tips on how to successfully manage customer experiences.

1. Measuring the customer experience
and increasing customer loyalty, customer retention
and customer acquisition in the process
Fredrik Abildtrup
CEO @ TeleFaction A/S
The Return on Behavior® Company

2. About TeleFaction - What do we do?
• TeleFaction is a “Voice of Customer” Company.
• We offer companies with knowledge and tools to
increase customer satisfaction, customer loyalty and
additional sales.
• We do this through real-time customized closed loop 2
feedback methodologies where we listen to the
customers.

3. Today’s topics

4. Agenda
• Why manage experiences?
• Customer Experience Management (CEM) vs Customer
Relationship Management (CRM)
• How to be successful
4
• Case Study – Danske Bank
• How to do it

5. Poll

6. Why manage experiences?

7. It is though out there!
58% say it is harder to make a reasonable profit, compared to 5 years ago
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8. How to remain successful
• Staying on top is not easy
– I.e. Mercedes, General Motors
• Difficult to hide
– I.e. Twitter, Facebook, Blogs, websites
• Shopper help each other 8
– I.e. consumerist.com, word of mouth, Google groups
• That also count for small businesses
– I.e. reviews by amateurs, ratings etc.

9. Your customers behaviour today ...
What has changed over the past 5 years?
• Customer’s behaviors!
– Are spreading good experiences, rewarding good service;
– Bad news are discussed more frequently due to easy access to
new channels of communication;
– Short-term relationship with brands with no bad conscience; 9
– No immediate emotional attachment;
– Difficulty to forgive

10. The voice of the customer
– why is this important?
A big survey, In Customers Are People, shows, that 70 procent of
the customers buying decision are based on how they feel they are
being treated.
Another survey shows, that 69% of the customers say, that
emotions count for more than half of the total buying experience
A survey conducted in Denmark, where the customers were asked if they
would change supplier if they had a bad customer experience, showed,
10
that
• 32% would change immidiately,
• 67% would change if it happened again, and only
• 1% would not change
• A good customer experience are told to 8 others
• A bad customer experience are told to 22 others
• It takes 10 good experiences to make up for one bad

11. On which channels?
• 92% of all customer interactions happen via the
phone (Gartner)
– 80 -90% transactions completed
– 84% view Speech as equal to, or better than Web
• 85% of consumers are dissatisfied with their phone
experience (Gartner) 11
• Around 90% of unhappy customers will not buy again
from a company that disappointed them
• 68% of customers will switch brands based on a poor
service experience (Gartner)

12. Be distinct or be extinct
12
Idea sourced from Tom Peters

13. Interactions drives loyalty
Lowest price or
cost of ownership
Superior products or
services
13
High-quality interactions
with people and systems
Percent High Importance

14. Poll

15. Customer Customer
Experience vs. Relationship
Management Management

16. CRM to CEM
• The right brained approach to Customer Management
16

17. Build or destroy profits!!!
• Memorable experiences can lead to customer actions
that build—or destroy—profits
Recommended to a friend or colleague
Pleased
Comfortable Praised a company representative
Appreciated
Important Purchased more products/services
Special 17
Continued relationship about the same
Frustrated Complained to a friend or colleague
Let Down Complained to a company representative
Angry
Ignored Switched to new supplier/provider
Confused
Purchased less products/services

18. Customer Experience Management…
…is or should be the execution of a customer centric business strategy
18

19. Enterprise managers wear rose-colored
glasses
• Survey:
– Companies Provide an Excellent Customer experience?
19
Net Agreement: Customer +4, Enterprises +34

20. How to be successful

21. To get success – be SMART
21

22. Customer Value…
• Companies see customer relationship value this way
Profit
Sales
22
Strategic fit
Lifetime value

23. Customer Value…
• Customers see the value differently
Empowered Employees
High-Quality
23
Rewards for loyalty
Honest communication

24. Metrics – The steering wheel
• Customer focus are visulized through the results of
the measurements
– The customer says that...
– The customer experienced that...
• Translate what you mean with customer satisfaction
• Operationalize your vision through measurements 24
– And rememeber you get what you measure!!!
• Primary areas to create instant results
– Customer Satisfaction
– Cross sales/Up sales
– Operationalization of strategies and values
– Retention of customers

25. People are the drivers
• The Top 5 attributes of companies that deliver
”Constantly Excellent Customer Experiences”
The key ingredient: People!
1. Well-trained and Helpful Employees
25
2. Excellent Customer Service
3. High-Quality Goods and Services
4. Friendly and Caring Employees
5. Personal Attention, Reward for Loyalty
Source: Bob Thompson, CustomerThink Corp

26. Redesign Experience
• Customer experiences as parameter for success
– Every contact with the company gives the customer a
chance to evaluate if the experience have been bad / neutral
/ good
– Over time these customer experiences will make a lasting 26
impression of the company’s values or the company as a
brand
– Act on the feedback of your customers experiences and
reap the benefits of satiesfied customers

27. Use technology to optimize experiences
• Assess the quality of customer experiences with
telephone, online and contact center monitoring and
measurement systems
• Optimize marketing with analysis and campaign
management systems to deliver relevant offers
• Treat customers as individuals and reward their
loyalty 27
• Provide tools to help employees be helpful and
responsive, including sales coaching and support
knowledge bases

28. Case study – Danske Bank Group

29. About Danske Bank
• The Danske Bank Group is the largest financial enterprise in Denmark
and one of the largest in the Nordic region.
• The Group serves personal and business customers through banks
with nationwide branch networks in
oDenmark
oSweden
oNorway
oNorthern Ireland
oThe Republic of Ireland 29
oFinland
oThe Baltic states.
• In total, the Group serves 5 million retail customers and a significant
number of public sector and institutional organizations. Some 2 million
customers use the Bank's online services.

30. Why Danske Bank focus on CEM?
• The culture of a company are very difficult to copy, because it is
embedded in the people. It also makes it very difficult to change!
– Internet and legislation generates more transparency in all markets.
Products, prices, processes etc. can ‘easily’ be compared by customers
and/or copied by competitors.
• Danske Bank Group has developed and implemented one integrated
analytical set-up for measuring customer satisfaction and attraction in
the market.
30
– Customer Experience in the Moment Of Truth has a key role in this set-up.
Other analysis covers other needs.
– An important role for the Moment Of truth measurements are, that they
function as a mirror, when reported back to each team on a quarterly basis.
– The discussion is ‘no longer’ a conflict between headquarter opinions,
branch managers former experience and the advisors first hand experience
about a specific meeting. Now the bank looks forward based on the
customers view, and on how to improve the next experiences.

31. Where is Danske Bank measuring?
• Danske Bank is a multi channel bank. The customers
interact with Danske Bank Group via various
channels, medias and forums.
• Danske Bank started implemented the Moment Of
Truth measurements
– In the channel with the most contacts (contact centers) 31
– And in the channel that created the biggest change
(branches)
– Other channels will follow

32. How Danske Bank is measuring?
• “Moment of Truth” - measurements on specific
interactions with customers
– Ask as quickly as possible after the interaction – to have as
‘unpolluted’ answers as possible.
– Use the data methodology that are most suitable for that
specific area – to make it easy for the customers to answer,
improve answering rate and keep it cost efficient.
– Ask only questions related to the specific interaction, and only 32
questions that can and will be acted upon – to make it relevant.
– Reported back to the people in the organization that can
change the next Moment Of Truth - to make it make a
difference.
– Targets, benchmarks, change management tools etc. have
been developed - to assist the right amount of focus.
– Learn from the best, and follow up where needed – to secure
the success.

33. What kind of results has been achieved?

34. Results: Actions can be targeted
Did you get a better advice in the meeting than expected?
Service experience on a scale of 0 to 100, where 100 is best
34

35. It is the individual team that can make a
difference
Development over time: Resume on all questions
35
Better service

36. Analyses to find drivers
Service experience on a scale of 0 to 100, where 100 is best
36
Average amount of products offered

37. One important finding
• It is not the surveys alone that makes results
– The great leap forward comes when you measure AND work
systematically with the results
37

38. Where Danske Bank is using TeleFaction
• Danske Bank Group use TeleFaction in the whole
process from data gathering, data structuring,
analyzing, reporting, presenting and follow up.
• Next steps in corporation with TeleFaction
– Share leanings with other clients
– From data to knowledge 38
– Prove Return on Behavior
– Develop feedback management system for actions
• More information
– Andreas Wessel Knaack
– akn@danskebank.dk

39. Some words on how to do that!

40. Obtaining info on customer needs
• Surveys
– Automated Telephone surveys
– Mail
– E-mail
– Live Interview
• Focus Groups
• Customer Observation 40
• Market Research
• Customer Complaints
• Call Monitoring
The KEY?
It is never ending

41. Taking Quality to the Next Level
• You need to have customers evaluate the service
delivery immediately after the interaction
• ...the best solution is real-time customer feedback.
– Eliminate the gap between service and evaluation
– Too late to recover poor interactions
– Enhances believability of results 41
• 50 to 75% less expensive than follow up telephone
interviews allowing for continual measurement

42. Taking Quality to the Next Level
• Respond to questions using telephone keypad or
voice
• Verbatims: capture caller suggestions for
improvement
– Verbatim comments
– In the customer’s own words (capture the emotion) 42
• Identify and highlight employees that delight
customers

43. Taking Quality to the Next Level
• Receive alert of a dissatisfied caller!
– Pro-actively prevent market damage
– Service Recovery Opportunities
– Detect Process and Procedure that are flawed
• Frequent reporting of customer feedback
– Daily, Monthly or quarterly, Fact analysis
– Annual summary presentation 43
– Benchmark scores with others
– Frequency to meet management’s needs

44. Return on Behavior
High Monitoring scores
≠
Customer Satisfaction
• Service quality is not about internal compliance –
It is about satisfying your customer 44
• It is the change in behavior that gives pay-off in terms
of customer experiences

45. TeleFaction
• Fredrik Abildtrup
• fab@telefaction.com
• +45 5057 5070
• www.telefaction.com
• www.returnonbehaviormagazine.com 45
• Twitter: http://twitter.com/TeleFaction
• Linkedin: http://www.linkedin.com/in/fredrikabildtrup

46. Backup slides

47. Polls
• How frequent are you measuring your customer
experience?
– We are not
– Daily
– Quarterly
– Bi-annual
– Annually
47
• Is any portion of your pay or incentive based on the
customer experience?
– Yes
– No

48. Polls
• Do you have a feed-back management process in place
for Customer Satisfaction?
– We are discussing it
– Yes we have
– Yes we have – it is IT supported
– No
48
• Are you measuring your customer satisfaction today?
– Yes, on postal surveys
– Yes, on postal, web, email surveys
– Yes, on all channels including telephone
– Yes, through other channels like panels, store interviews etc.
– No, we are not

49. Developments in customer approach
49

50. Create a customer vision/strategy
Knowledge of Customers
How do we collect knowledge of our customers
Customer Experience In which touch points?
How do we ensure that customers get How do we use this knowledge?
the same experience across all touch How can we enrich and increase our own knowledge
points?
On which level must the experience be
consistent across all channels?
Customer Value
Which customers have which value?
How do we measure it?
Which customers will we attract,
retain or develop?
Which service will we provide the
Integration
defined segments?
How do we share knowledge of
our customers? 50
How do we plan and implement
customer activities across the
company?
How close do we want to
integrate ourselves with
customers and partners?
Balanced effort Customer Expectations
How do we balance our efforts in relation to the When are the customer in touch with us and
customers value? why?
What effect does that have in our activities? How far Which expectations do they have and how do we
will we go? live up to them?
How do we focus on loyalty, retention, additional and How do we communicate with the customers?
cross sales? What impact does customer satisfaction have on
revenue and profit?

51. About TeleFaction - What do we do?
• TeleFaction is a global “Voice of the Customer”
Company offering real-time customized closed loop
feedback methodologies.
• Our core service is Return on Behavior®, a results-
driven solution which translates objective customer
data into actionable insights. 51
• These insights provide specific action points for
management and individuals to secure revenue,
retain customers and increase loyalty.

52. Measuring the customer experience
and increasing customer loyalty, customer retention
and customer acquisition in the process