Learn about CX strategies, customer loyalty, and CX journeys

1. Presentation Title
Name
Title
Customer Experience:
What’s Your Next Move?
BOB AZMAN
CHIEF EXPERIENCE OFFICER
10.2.2014

2. Customer Service Video

3. Today’s Session
Objectives
• Customer Experience strategies – what they are
and why they matter
• Keeping customers who are satisfied AND loyal
• Call to Action!

4. First Task
1
Name a company that is easy to do business with…

5. Online Retailers Leading the Change
• Amazon’s secret plan - to sell you
everything!
• Same day delivery! Groceries; books;
anything!
• Delighting customers:
• Lightning fast response
• Never argue about returns
• Treat good customers well
• Expect problems, be a solution
• Treat customers like individuals

6. Are YOU Easy
to do business with?
? ? ? ? ? ?
YES! WELL…

7. Staple Yourself to an Order
• Harvard Business Review July-August 1992
• Benson P. Shapiro, V. Kasturi Rangan, and John J. Sviokla

8. What is Customer Experience (CX)?
The customer’s perceptions and related
feelings caused by the one-off and cumulative
effects of interactions with a supplier’s
employees, systems and channels or products.
Did You Know?
Of all company interactions
with its customers are
through customer service.

9. The Integrated Customer Experience
It’s not about multi channel
It’s about omni channel
Contact
Center
Interactive
Voice
Response Web Mobile Social Email Video Portals Chat Next
…?

10. Why Do Customers Leave?
Did You Know?
Poor CX
Of US consumers will abandon an
online transaction if their questions or
concerns are not addressed quickly.
Purdue University
Benchmark
Seek Alternatives
Prefer Competitor
Dissatisfied with
Products/Service
Die Move Away

11. How do you Quantify CX?
40%
70%
80%
75%
Of customers began purchasing
from a competitive brand because
of its reputation for great customer
service
Would be more loyal to a business
following a positive customer
experience
Of firms would like to use customer
experience as a form of
differentiation
Of all company interactions with its
customers are through customer
service

12. Customer Experience Payoff
Leaders vs. Laggards
• Companies that
successfully bring great
customer experience are
rewarded
• There is power in great
customer experiences
• Stock market returns are
better for companies that
deliver good CX than
those who do not.
Cumulative Total Return
Customer
Experience
Leaders
S&P 500
Index
Customer
Experience
Laggards
2013 Watermark Consulting
43%
14.5%
-33.9%

13. Employee Experience Payoff
Increased Annualized Returns
From 1997-2011, employee
experience leaders
outperformed the broader
stock market, generating an
annualized return that was
three times greater than the
S&P 500 Index.
Annualized Return
FORTUNE
100 Best
Companies
To Work For
S&P 500
Great Places to Work Institute, Inc.
10.3%
10.0
%
8.0%
6.0%
4.0%
2.0%
0.0% 3.7%

14. Second Task
1
Write down your company’s service strategy.

15. Consider this service “strategy”

16. The results?
• Founded in 1960
• Acquired by SC Johnson in 1986.
– Serving more than 12,000 restaurants in 43 states; revenues $30M+
• Charged up to 10 times more than its competitors.
• Had disproportionately high market share in operating areas.
• Paid out less than .004% of revenues in support of the guarantee
• Built the people, processes and tools based on the guarantee
• Sold to Orkin in 1999.
• Re-acquired the name from SC Johnson in 2003.
• Re-building the company based on same principles.

17. With all this commitment to customers…
Why do these things happen?
• Interactive voice response units (press 1; press 2) that are
malfunctioning; and/or provide information that is not needed or
wanted by the caller.
• Your call is important to us – but hold rates are excessive; coupled with a
lack of foresight on activities that could cause increased call volume
• Automated requests for information to “verify my identity” that have to
be repeated when I’m finally connected with a representative.
• Lack of documentation – the “who did you talk to that told you that?”
syndrome.
• A service recovery process that fails to recover from the service failure
• “Hollywood set” satisfaction guarantees that lack “teeth” and do more
harm than good when challenged.

18. Real Stories – Real Companies

19. Home Depot

20. Home Depot
Results
• $78.8B in sales (FY 2013); Up 7.2% PY
• $5.4B in net earnings (FY 2013); Up 18.7%
• Earnings per share $3.76 compared to $3.00 PY
• Increased dividend 21% to $.47 cents per share
• The Company’s guidance for fiscal year 2014: sales growth of 4.3% with
comparable store sales up approximately 4.6 percent for the year; diluted
earnings-per-share up 16.5% or $4.38 and cash flow of $8.8B with 7 new
stores.
• 2,200+ stores (US, the District of Columbia, Puerto Rico, the U.S.
Virgin Islands, Guam, 10 Canadian provinces, China and Mexico)
• 300,000+ Full time employees
• 100,000 customer surveys / week

21. Home Depot
& Potting Soil = Service Strategy

22. Home Depot
“Total Rehab”
The beginning of the end…
Short Term Strategy = Short Term Results
• Centralized operations
• Real estate market bonanza
• Growth & Expansion
• EPS doubled

23. Home Depot
“Total Rehab”(continued)
The beginning of the end…
The Impact:
• Store managers focused on metrics unrelated to customer service
• Loss of local control and quirkiness (think beach chairs in December in
Minnesota)
• Looked good on paper – bad in reality
• CEO squelched dissent and dismissed criticism of his pay ($30M!!)
• Customers revolted – Competition mobilized
• Real estate balloon approaching maximum pressure

24. Home Depot
Service Strategy
Putting the Customer First – What did Home Depot do?
• Simplification
• Stores focused on remaining in stock, store appearance, customer
service
• No “strategic flavors of the quarter”
• Removed tasks
• 200 weekly reports and emails replaced with 1 single page weekly
scorecard
• Put people in the aisles
• Trained to be more helpful
• Evaluate on effectiveness
• Training & Rewards alignment

25. Home Depot Stock Performance

26. Developing a Strategic Service Vision

27. Elements of the Strategic Service Vision
Service Delivery System Operating Strategy Service Concept Target Market Segments
What are important
features of the service
delivery system
including:
The role of People?
Technology?
Equipment?
Layout?
Procedures?
What capacity does it
provide?
Normally?
At peak levels?
To what extent does it::
Help ensure quality
standards?
Differentiate the
service from
competition?
Provide barriers to
entry by competitors?
Does the
service
delivery
system
support the
operating
strategy?
What are important
elements of the strategy?
Operations?
Financing?
Marketing?
Organization?
Human resources?
Control?
On which will the most
effort be concentrated?
Where will investments be
made?
How will quality and cost be
controlled?
Measures?
Incentives?
Rewards?
What results will be
expected versus
competition in terms of:
Quality of service?
Cost profile?
Productivity?
Morale/loyalty of
servers?
To what
extent is the
value of
results and
process
quality for
customers
leveraged
over cost to
the service
provider?
What are important
elements of the service to
be provided stated in
terms of results produced
for customers?
How are these elements
supposed to be perceived
by the target market
segment?
By the market in
general?
By employees?
By others?
How do customers
perceive the service
concept?
What efforts does this
suggest in terms of the
manner in which the
service is:
Designed?
Delivered?
Marketed?
How well is
the service
concept
positioned in
relation to
customers’
needs and
competitors’
offerings?
What are common
characteristics of
important market
segments?
What dimensions can be
used to segment the
market?
Demographic?
Psychographic?
How important are
various segments?
What needs does each
have?
How well are these needs
being served?
In what manner?
By whom?

28. Strategic Service Vision
Service Delivery System
• What are important features of the service delivery
system including: role of people, technology,
equipment, layout, procedures?
• What capacity does it provide, normally, at peak
levels?
• To what extent does it, help ensure quality standards,
differentiate the service from competition, provide
barriers to entry by competitors?

29. Strategic Service Vision
Operating Strategy
• What are important elements of the strategy: operations,
financing, marketing, organization, human resources,
control?
• On which will the most effort be concentrated?
• Where will investments be made?
• How will quality and cost be controlled: measures,
incentives, rewards?
• What results will be expected versus competition in terms
of, quality of service, cost profile, productivity,
morale/loyalty of servers?

30. Strategic Service Vision
Service Concept
• What are important elements of the service to be provided,
stated in terms of results produced for customers?
• How are these elements supposed to be perceived by the
target market segment, by the market in general, by
employees, by others?
• How do customers perceive the service concept?
• What efforts does this suggest in terms of the manner in
which the service is designed, delivered, marketed?

31. Strategic Service Vision
Target Market Segments
• What are common characteristics of important market
segments?
• What dimensions can be used to segment the market,
demographic, psychographic?
• How important are various segments?
• What needs does each have?
• How well are these needs being served, in what
manner, by whom?

32. Customer Experience Alignment
The “Three-legged Stool”
We need to align and simplify these 3 elements
to maximize the experience
People
Customer
Tools Process
• Link Employee Engagement to
the customer experience
• Align skill sets; rewards and
recognition programs; career
pathing
• Provide consistent
processes and procedures
that make the company
easy to do business with.
• Eliminate outdated policies
and procedures that
impede first call resolution.
• Standardize;
consolidate; upgrade
tools, telephony and
technology to improve
delivery of the
experience
• Measure results; create
scorecards; track
customer interactions

34. Happy Customers are Loyal Customers!

35. Formula for Building Customer Loyalty
• Design it Right
• Price it Right
• Sell it Right
• Deliver it Right
• Make it Easy
+ =
Comprehensive
Service Recovery
• Contact Management -
Respond to Individual
Customers
• Service Recovery – ID
Sources of
Dissatisfaction/Confusion
(Root Cause Analysis)
• Continuous Improvement
and Problem Prevention
Customers Who Are
Satisfied and Loyal
• Renew with Us
• Buy Our Other
Products
• Recommend Us to
Prospects
• Positive Word of
Mouth
Doing the Job Right
the First Time

36. Call to Action
3 questions that can make a difference
1
What would our customers say about this product,
service, policy or practice?
2
?
What do our employees think about this product,
service, policy, practice?
3
What is 1 thing I can do in my job to make a
difference in creating a better customer experience?

37. Find Out More About the “Avtex Experience”
Connect with the Avtex Customer Experience
Consultants to Optimize Your CX Strategy
BOB AZMAN
bazman@avtex.com
1-844-CXChamp
(1-844-292-4267)
KEEP IN TOUCH WITH AVTEX:
@avtex
facebook.com/avtexsolutions
linkedin.com/company/avtex-solutions-llc

38. Customer Experience:
What’s Your Next Move