Embed Size (px)
Citation preview
How to measure customer experience to improve satisfaction
and loyalty
Fredrik AbildtrupCEO @ TeleFaction A/S
The Return on Behavior® Company
Contents
• Why manage experiences?
• Customer Experience Management
• How to be successful
• How to do it
Why manage experiences?
Why focus on customer experiences?
70 – 90% of what happens with customers is
driven by human nature, and
nothing to do with technology
McKinsey
10% increase in customer retention
results in a 30% increase in the
value of the company
Bain & Co.
Dissatisfied customers whose complaints are taken care of, are more likely to remain
loyal, and even become advocates, as those that are ‘just' customers
95% of employees don’t fully understand their
organization’s strategyNorton/Kaplan
Balanced Scorecard
Nearly 70% of consumers said, they had ended a relationship, due to poor customer service alone.
Datamonitor/Ovum 2009
50% of the people surveyed said that
agents failed to answer their
questionsHarris
Percentage of companies that…
Collect Feedback
Alert Staff Use Insight Deploy and Improve
Tell Customers0
10
20
30
40
50
60
70
80
90
100
95%
45%
35%
10% 5%
Source: Gartner Group, 2009, North American Study
Actions
Sources: Giga, Gartner Group, Forester Research, Nuance 2010
The cost of satisfying the customer
Chat - $7.86
Email - $9.53
Online self service - $6.55
Phone / Call center - $6.17
Cost
per
reso
lved
issu
e
Interactions drives loyalty
With products becoming commoditized and customers demanding more, companies are focusing on delivering superior customer experiences.
A 2009 study of over 860 corporate executives revealed that companies that have increased their investment in customer experience management over the past three years report higher customer referral rates and customer satisfaction.
(Strativity Group, 2009)
Enterprise managers wear rose-colored glasses
Survey:– Are companies providing an excellent customer
experience?
Customer view
Enterprise view
22%
42%
60%
50%
18%
8%
Agree Neutral Disagree
Net Agreement: Customer +4, Enterprises +34
Even though managers think they know how the customer is feeling, we all know differently!
Customer Experience vs. Management
Customer RelationshipManagement
CRM to CEM
CRM is enterprise-focused and designed to manage customers for maximum efficiency,
CEM is a strategy that focuses the operations and processes of a business around the needs of the individual customer which in turn will lead to larger profits with more
customers.
The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer relationship has been the domain of Customer Relationship Management (CRM).
However, CRM strategies and solutions are designed to focus on product, price and enterprise process, with minimal or no focus on customer need and desire. The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want, resulting in the failure of many CRM implementations.
Build or destroy profits?Memorable experiences can lead to customer actions that build, or destroy, profits - Its your choice.
PleasedComfortableAppreciatedImportantSpecial
FrustratedLet Down
AngryIgnored
Confused
Recommended to a friend or colleague
Praised a company representative
Purchased more products/services
Continued relationship about the same
Complained to a friend or colleague
Complained to a company representative
Switched to new supplier/provider
Purchased less products/services
Customer Experience Management…
Customer CentricGive customers what
they want
Business StrategyMake money and beat
the competition
…is the execution of a customer centric business strategy
How to be successful
To get success – be SMART
Strategy for customer value
Metrics to steer
Alignment of people
Redesign of experiences
Technology to optimize
Customer Value…
Companies see customer relationship value this way
Sales
Lifetime valueStrategic fit
Profit
High-QualityEmpowered Employees
Rewards for loyaltyHonest communication
Customer Value…
Customers see it differently..
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 – 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
Live-measurements
Meeting surveys
Postal surveys
E-mail and web surveys
SMS/Text surveysPhone surveys
Chat surveysAd-hoc surveys
EnterpriseFeedback
Management
Close the loopFollow-up with Action Management
Customer delightedAlert generatedAcknowledge performancePossible up/cross sell
Customer satisfiedNo action
Customer dissatisfiedAlert generatedCase generated
Action ManagementResolve issueClose case
CustomerFeedbackSurvey
People are the drivers
The Top 5 attributes of companies that deliver ”Constantly Excellent Customer
Experiences”
1. Well-trained and Helpful Employees2. Excellent Customer Service3. High-Quality Goods and Services4. Friendly and Caring Employees5. Personal Attention, Reward for Loyalty
The key ingredient: People!Source: Bob Thompson, CustomerThink Corp.
Redesign the 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 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 satisfied customers
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
Provide tools to help employees be helpful and responsive, including sales coaching and support knowledge bases
Sounds great, but how does it work in real life?
The Return on Behavior process
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
• Verbatims: capture caller suggestions for improvement• Verbatim comments, In the customer’s own words (capture the emotion)
• Identify and highlight employees that delight customers
• Frequent reporting of customer feedback• Daily, Monthly or quarterly, Fact analysis, Annual summary presentation, Benchmark
scores with others, Frequency to meet management’s needs
• Receive alert of a dissatisfied customer!• Pro-actively prevent market damage, Service Recovery Opportunities, Detect Process
and Procedure that are flawed• 4% of dissatisfied customers complain, 91% of dissatisfied customers will not do
business with you, 80% will tell 10 people 20% will tell 20+ = 100 dissatisfied customers tell 1200 how poor you are!
The Return on Behavior process
Return on Behavior
• Service quality is not about internal compliance – It is about satisfying your customer
• It is the change in behavior that gives pay-off in terms of customer experiences
High Monitoring scores≠
Customer Satisfaction
About TeleFaction
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.
These insights provide specific action points for management and individuals to adjust behavior in order to secure revenue, retain customers and increase loyalty.
Author information
Fredrik [email protected]+45 5057 5070
WEB: TeleFaction.comBLOG: ReturnOnBehavior.com
Twitter: twitter.com/TeleFactionLinkedin: linkedin.com/in/fredrikabildtrup
