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This is a presentation Alain Thys gave at the Fred Reichheld NPS Masterclass in Breda on May 10, 2012It is part of a series of presentations on customer-centricity which are all linked to Alain's book "So You Want To Be Customer-Centric?"
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FUTURELAB
Breda
May 10, 2012
a more customer friendly place
On a mission to make the world
FUTURELAB
@FLB_alainthys
The problem I have always had with customer experience thinking
Too much fluffy stuff
“Let’s spread love & hug” “Let’s be like Disneyland” “Let’s go WOOOOOWW!!”
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The CEO Dilemma
The problem I have always had with customer experience thinking
The CEO dilemma: I get paid in Euros, not happy faces
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While I couldn’t translate it into ROI
My intuition told me something was there
The same coffee beans
The futures market (nov 2011)
in a package at the grocery store
at Nespresso
in a paper/plastic cup from a machine
from a machine in a theme park
in a cup in a big city café
at a deluxe restaurant
during my honeymoon with a glass of
100 year old Armagnac
Cost per cup
€ 0.01
€ 0.075
€ 0.40
€ 1.00
€ 2.20
€ 2.50
€ 5.00
I haven’t got a clue!
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And then came Fred Clarity at last • First exposure at Philips
• Deepdive into the Net Promoter® System
• Heavy promoter of the approach.
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I became a customer evangelist So full of excitement that there was a business case
Customers are important.
Really, they’re important.
They’re very very very important!
Every company (and employee) is customer-centric But the world decided to surprise me …
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The bad news
Even though Fred’s colleagues disagreed
80% of CEO’s believe they offer a superior
customer experience.
8% of their customers agree.
Source: Bain & Company
• The wrong perspective
• Rolling the dice
• Leadership not walking the talk
So I went digging for the reasons
Three key barriers to customer-centricity
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From a business perspective
Customer experience gets managed “on top of” …
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From a customer perspective
“The experience IS the product” (Peter Merholz)
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To capture this money, we need a different perspective
“The experience IS the product” (Peter Merholz)
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From a customer perspective
“The experience IS the product” (Peter Merholz)
“You press the button,
we do the rest”
George Eastman
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From a customer perspective
“The experience IS the product” (Peter Merholz)
Famous for overpriced, underspec’d
devices with poor battery life.
It just works
A low performance gaming
console with few titles.
This is cool!
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TV’s bought on a Saturday have more detractors A real life case
17
The bottom line
The one with the best TOTAL “experience” wins
Going direct to create the right emotion at every touchpoint allows
Nespresso to charge up to 4x the price of other high street brands
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The bottom line
The one with the best TOTAL “experience” wins
There’s more
Leave the bank with
your card
Have a coffee next
door if you need to
wait (with alerts)
Friendly & smiling
recruitment policy
25% more expensive
Overcoming the barrier
Experience doesn’t go “on top”, it IS the product
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• The wrong perspective
• Rolling the dice
• Leadership not walking the talk
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So I went digging for the reasons
Three key barriers to customer-centricity
Three key barriers to customer-centricity
Most companies roll the dice on managing CX
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A Structured Approach
22
30 second group brainstorm
Which are the customer steps when going on a holiday?
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23
30 second group brainstorm
Which are the customer steps when going on a holiday
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1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories
We show that we value our
customers by serving them
well, putting their needs and
interests at the center of
everything we do.
(from the AOL mission statement)
Case: AOL
Rolling the dice: extreme case
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Bad
employee?
Question:
Case: AOL
It ain’t over until the last employee/touchpoint is managed
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Every employee on the planet cares about the customer Again … this is not about ill will
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The business gets in the way
But reality is that … • No customer contact
• Misaligned KPI’s
• Internal inefficiency cuts time
90%
Collect
Customer
Feedback
Alert Staff
to Findings
50%
Make
decisions
using
insights
30%
Deploy
improve
10%
Inform
customers
of change
5%
Sourc
e: B
upa Inte
rnational, 2
009
“Most businesses are optimised for themselves,
not for the customer.” Geert Van Kuyck, CMO Philips
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If you don’t manage the whole experience, you roll the dice.
Any disconnect can break your business
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The REAL customer experience
62% of US/UK consumers believe
that the quality of service depends on
whoever serves them.
One brand, two dealers… If you don’t manage the whole experience, you roll the dice.
• 6 month delivery delay
• Wife gets insulted
• Threat to cancel = car appears
• Sunroof doesn’t open (but that’s normal)
• Loaner car is dirty 2nd hand car at 1/3 price
• Invoicing is a mess
• …
• While they keep mailing you promotions
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Overcoming the barrier
Don’t roll the dice, but manage “every” touchpoint
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• The wrong perspective
• Rolling the dice
• Leadership not walking the talk
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So I went digging for the reasons
Three key barriers to customer-centricity
Leadership not walking the talk
Many executives say they want to be customer-centric
THE CUSTOMER IS AT THE
CENTRE EVERYTHING WE DO!
Our satisfaction numbers matter!
Do what is right for the customer!
Let’s have an off-site workshop!
Let’s have a customer day!
Leadership not walking the talk
But their behaviour says something else
THE CUSTOMER IS THE LAST THING WE
TALK OR THINK ABOUT.
I know the product is outdated, but push it, we
need to hit the quarterly numbers
Can’t we replace our call-centre with an IVR.
All these people cost money!
Can we lock accounts into only buying their
service support from us?
I don’t have time to meet with customers.
“I’m out of here in 2 years anyway”
People copy behaviours, not words
The organisation will learn fast
Customer oriented behaviour
= headache
Grab the money/process focus
= easier silo life, career, bonus, …
But they don’t lose their common sense.
And before you know it, you’ve got a problem
Would you recommend the bank to friends /family?
32% No 28% conditionally
Would you recommend the bank as an employer?
39% No 30% Yes
N=25,000 (out of 59,000)
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“you know what those
idiots did at work”?
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Are you really setting the example, or your talking about the customer?
Would your people recommend? Act? 1 employee
1st degree: 150
2nd degree: 22,500
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Leadership not walking the talk
What is really required.
Overcoming the barrier
Don’t talk about the customer … set the example
• Realise that the experience is the product
• Manage every single touchpoint
• Be prepared to walk the customer talk
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To conclude
Overcome the barriers in your business
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And finally
What is the “one thing” you will do?
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Twitter: @FLB_alainthys
And now comes Fred Thank you …
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