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The Effortless ExperienceConquering the New Battlegroundfor Customer LoyaltyMatt DixonGroup Leader, CEB#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
HAVE YOU SEEN THIS GIRAFFE?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE MOMENT OF “WOW”#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDEDOUR RESEARCH#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDEDOUR RESEARCH1What impact DOcustomer serviceinteractions haveon a customer’sfuture loyalty?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDEDOUR RESEARCH12What impact DOcustomer serviceinteractions haveon a customer’sfuture loyalty?What are the thingscustomer servicecan do toDRIVE loyalty?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDEDOUR RESEARCH12What impact DOcustomer serviceinteractions haveon a customer’sfuture loyalty?What are the thingscustomer servicecan do toDRIVE loyalty?3How can serviceimprove loyaltywhile stillREDUCINGoperating costs?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHAT IS LOYALTY? Repurchase Share of Wallet Word of Mouth#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHAT IS LOYALTY? Repurchase Share of Wallet Word of Mouth#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF 125,000 customers#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF 125,000 customers 5,000 customer service reps#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF 125,000 customers 5,000 customer service reps 100 companies#customereffort #customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF 125,000 customers 5,000 customer service reps 100 companies3 major findings#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESN’T PAY#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESN’T PAYThe tions#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESN’T PAYThe PerceptionMoreLoyalThe ereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESN’T PAYThe PerceptionMoreLoyalThe omerExpectationsExceedsCustomerExpectations “Delight” only happens 16% of the time “Delight” increases operating costs 10-20%#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
PROMISES, PROMISESWhen [companies, friends, or coworkers]expend extra effort in order to exceedpromises, their effort appears likely to beoverlooked.”Gneezy & EpleySource: Gneezy, A. and Epley N. (2014). Worth Keeping but Not Exceeding: Asymmetric Consequences ofBreaking Versus Exceeding Promises. Social Psychological and Personality Science. May 8. 1‐9.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 2: SERVICE DRIVES DISLOYALTY#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 2: SERVICE DRIVES DISLOYALTYCustomer Service Impact on LoyaltyMore Loyal1.00xMore Disloyal3.97xSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 2: SERVICE DRIVES DISLOYALTYCustomer Service Impact on LoyaltyDrivers of DisloyaltyMore Loyal Repeat contacts1.00x Channel switching Transfers Repeating information Robotic service Policies and processescustomers have to endure “Hassle factor”More DisloyalSource: CEB analysis.3.97x#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 3: MITIGATE DISLOYALTYBY REDUCING EFFORTCustomer Service Impact on LoyaltyDrivers of DisloyaltyMore Loyal Repeat contacts1.00x Channel switching Transfers Repeating information Robotic service Policies and processescustomers have to endure “Hassle factor”More DisloyalSource: CEB analysis.3.97xCustomer Effort#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FORTHE EFFORTLESS EXPERIENCE#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FORTHE EFFORTLESS EXPERIENCE94%Repurchase4%Low EffortHigh EffortSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FORTHE EFFORTLESS EXPERIENCE94%Repurchase4%Low EffortHigh Effort88%Increased Spend/Share of Wallet4%Low EffortHigh EffortSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FORTHE EFFORTLESS EXPERIENCE94%Repurchase4%Low EffortHigh Effort88%Increased Spend/Share of Wallet4%Low EffortHigh Effort81%Negative WOM1%Low EffortHigh EffortSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FORTHE EFFORTLESS EXPERIENCE94%Overall DisloyaltyRepurchase96%4%Low EffortHigh Effort88%Increased Spend/Share of Wallet4%Low EffortHigh Effort81%Negative w EffortHigh EffortSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICE#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICEChannel StickinessNext Issue AvoidanceExperience EngineeringFrontline Control#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICEChannel StickinessNext Issue AvoidanceExperience EngineeringFrontline Control#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHICH WOULD YOU RATHER USE?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
YOUR CUSTOMERS DON’T WANT TOTALK TO YOU#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
YOUR CUSTOMERS DON’T WANT TOTALK TO YOUCompany Perception2.5X1.0XWebPhonePreference Preference#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
YOUR CUSTOMERS DON’T WANT TOTALK TO YOUCompany Perception2.5X1.0XWebPhonePreference PreferenceActual Customer PreferencePattern largely holdsacross issue types anddemographics1.0X1.0XWebPhonePreference Preference#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
YOUR CUSTOMERS DON’T WANT TOTALK TO YOUCompany Perception2.5X1.0XWebPhonePreference PreferenceActual Customer PreferencePattern largely holdsacross issue types anddemographics1.0X1.0XWebPhonePreference Preference 3-5 years ago, 66% of customers primarily relied on the phone Today, only 28% of customers report that they primarily rely on the phone#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
BUT THEY’RE STILL CALLINGFirst Contact ChannelWebPhone57.7% of phone callersfirst went to thecompany’s WebsiteSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
BUT THEY’RE STILL CALLINGFirst Contact ChannelWebandPhoneWebPhone57.7% of phone callersfirst went to thecompany’s WebsiteConcurrent Channel UsagePhoneOnly35.5% of phone callers were onthe company’s Website whiletalking to a representativeSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWERSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER16%Value CHOICE Over Ease84%Value EASE Over Choice Want issue resolvedin their preferredchannel Want fast resolutionwithout bouncingaround channels Prioritize channelchoice above all else Prioritize low effortover channel choiceSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER16%Value CHOICE Over Ease84%Value EASE Over Choice Want issue resolvedin their preferredchannel Want fast resolutionwithout bouncingaround channels Prioritize channelchoice above all else Prioritize low effortover channel choiceSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CHOICE OVERWHELMS#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
“I didn’t have time to write youa short letter so, I wrote you along one instead.”‐Mark TwainSource: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE GUNNING FOG INDEXSource: ereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
KEEPING IT SIMPLEWhat Tim Geithner said:“The US government shouldcreate one agency withresponsibility for systemicstability over the majorinstitutions and criticalpayments and settlementsystems and activities.”Source: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
KEEPING IT SIMPLEWhat Tim Geithner said:“The US government shouldcreate one agency withresponsibility for systemicstability over the majorinstitutions and criticalpayments and settlementsystems and activities.”FOG Index Score: 24.60Source: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
KEEPING IT SIMPLEWhat Tim Geithner said:What he should have said:“The US government shouldcreate one agency withresponsibility for systemicstability over the majorinstitutions and criticalpayments and settlementsystems and activities.”“Set up an agency thatmakes sure banks remainstable and follow the law.”FOG Index Score: 24.60Source: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
KEEPING IT SIMPLEWhat Tim Geithner said:What he should have said:“The US government shouldcreate one agency withresponsibility for systemicstability over the majorinstitutions and criticalpayments and settlementsystems and activities.”“Set up an agency thatmakes sure banks remainstable and follow the law.”FOG Index Score: 24.60FOG Index Score: 8.46Source: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
KEEPING IT SIMPLEWhat Tim Geithner said:What he should have said:“The US government shouldcreate one agency withresponsibility for systemicstability over the majorinstitutions and criticalpayments and settlementsystems and activities.”“Set up an agency thatmakes sure banks remainstable and follow the law.”FOG Index Score: 24.60FOG Index Score: rce: CEB analysis#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICEChannel StickinessNext Issue AvoidanceExperience EngineeringFrontline Control#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE WORST QUESTION A REP CAN ASK#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE WORST QUESTION A REP CAN ASK“Have I fully resolvedyour issue today?”Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE WORST QUESTION A REP CAN ASK“Have I fully resolvedyour issue today?”Companies think76.7% of customerissues are resolvedin one contactSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE WORST QUESTION A REP CAN ASK“Have I fully resolvedyour issue today?”Companies think76.7% of customerissues are resolvedin one contactBut customers claim only40% of their issues areresolved in one contactSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?Drivers ofCallbacks#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?Drivers ofCallbacksExplicit IssueFailuresFailing to resolve theissue the customercontacted us aboutSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?Drivers ofCallbacksExplicit IssueFailuresImplicit IssueFailuresFailing to resolve theissue the customercontacted us aboutFailing to resolve issuesrelated to what thecustomer contacted usaboutSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?Drivers ofCallbacksExplicit IssueFailuresImplicit IssueFailuresFailing to resolve theissue the customercontacted us aboutFailing to resolve issuesrelated to what thecustomer contacted usabout54%46%Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
ONE STEP AHEAD#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICEChannel StickinessNext Issue AvoidanceExperience EngineeringFrontline Control#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMERS PERCEIVE EFFORTDIFFERENTLY THAN WE THOUGHT#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMERS PERCEIVE EFFORTDIFFERENTLY THAN WE THOUGHTWhatcustomershave to DOto resolvetheir issuesSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMERS PERCEIVE EFFORTDIFFERENTLY THAN WE THOUGHTWhatcustomershave to DOto resolvetheir issuesHowcustomersFEEL whenresolvingtheir issuesSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of thecustomerSource: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of thecustomerCustomereffortdecreases77%Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of thecustomerPOSITIVELANGUAGEUsing termsthat Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of AGEUsing termsthat Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of AGEUsing termsthat encing anoption within arange ofchoicesCustomereffortdecreases73%Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WORDS MATTER (a lot!)ADVOCACYTaking aposition ofactive supporton behalf of AGEUsing termsthat ANCHORINGStrategicallysequencing anoption within arange ofchoicesCustomereffortdecreases55%Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
HOW DOES THIS MAKE YOU FEEL?Source: CEB analysis.#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE PILLARS OFLOW-EFFORT SERVICEChannel StickinessNext Issue AvoidanceExperience EngineeringFrontline Control#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE CUSTOMER EFFORT SCORE Agree NorDisagreeSomewhatAgreeAgreeStronglyAgreeThe company made iteasy for me to handlemy issueA great way for service functions todetect potential disloyalty Overall Disloyalty and a way for service functions topositively impact Net Promoter Score Percent of Detractors96%67%9%Low Effort4%High EffortLow EffortHigh EffortSource: CEB analysis.@CEB Effortless#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
To get a copy of this presentation,email us atEffortless@executiveboard.comTo learn more about reducingcustomer effort, visit us atceburl.com/CEN@CEB Effortless@matthewxdixonwww.youtube.com/CEBThe Effortless Experience from CEB#customereffort 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE EFFORTLESS EXPERIENCE Low Effort High Effort 1% 81% Low Effort High Effort 88% 4% Low Effort High Effort Repurchase 94% 4% Low-Effort Experience High-Effort Experience Overall Disloyalty 9% 96% Source: CEB analysis. Increased Spend/ Share of Wallet Negative WOM
