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The 7 Fundamentals of aSuccessful CustomerExperience ProgramBeyond PhilosophySpeaker Panel:Colin Shaw, Founder & CEOZhecho Dobrev, ConsultantBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com1
1. Viewer WindowBeyond Philosophy 2001 - 2012All rights reserved2. Control Panelwww.beyondphilosophy.com2
Who are Beyond Philosophy?We are pioneers in theCustomerExperienceis allCustomerExperiencewedo!space.We put emphasis on theemotional side of customerexperienceBeyond Philosophy 2001 - 2012All rights reservedWe work in many countriesacross several continentsWe maintain links withacademia to keep us alignedwith the latest breakthroughsThought leadership is ourdifferentiator. We have literally writtenthe books on Customer Experience.Evidence based consulting we look for what really drivesbusiness valuewww.beyondphilosophy.com3
Some of our clients Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com4
Bloomberg confirmation Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com5
Increase in Net promoter Score: “As a result of its customerexperience efforts, NPS has improved from -10 to 30”Increases shipping volume. “Maersk correlated a 4 pointincrease in Net Promoter Scores with a 1% increase inadditional volume shipped by customers”.Training improves Net Promoter Scores in local regions.“Maersk gave regional divisions the option of putting regionalcustomer experience councils in place. The 55 regions that haveset up local councils also received a three-day training course incustomer experience improvement methods. The firm then did astudy comparing regions with and without a council. The result:participating local offices score 10 points higher on their NPSthan those offices that opted out”.Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com6
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric7
Best Practice:40 percentage points increase in Net Promoter ScoreBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com8
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric9
Senior management engagementRealise that they don’t knowwhat they are talking about!Be opportunisticYou need to gain their respect Don’t be a ‘yes’ person.Be enthusiastic!Show me the money!Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com10
Investing in Customer Experience pays off dividends Literally!Source: http://cfigroup.com/downloads/Customer Satisfaction and Stock Returns CFI Group.pdfBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com11
C-level Executives Need to Embrace the CustomerExperienceInvestors hate risk strong customer retention less riskGood CE generates superiorreturns Customer satisfaction is criticalfor repeat business Repeat business is usuallyvery profitable as long as their loyaltycomes from their satisfactionand not because prices are lowBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com12
Employee engagementCommunicationsTrainingCustomer Experience teamEngagement in experiencedesignIdeationBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com13
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric14
Human beingare made up ina certain wayExperiencePsychologyExperience PsychologyNature: The need to feel safe– Maslow and InsuranceNurture: You shouldhave insuranceBeyond Philosophy 2001 - 2012All rights reservedWe see thingsand things aredone to us:Conscious &subconsciousConscious: Recommendsoptions for me to keep thecost of my product planwithin my budgetSubconscious: Listens tome and acknowledges myconcernsWe feel thingsEmotionsEmotional Profilewww.beyondphilosophy.comWe act:Can be seenas rationalbehaviourCustomers do things Customers complain asthey can’t understandwhy they have broughtone product but you treatas 5 separate products Recommend you toothers Put phone down whenwaiting for you to answer15
A Customer Experience is made up of all theseaspects sciousSubconsciousBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com16
Most organization are one t journey mapping tools just lookat the rational experience and miss theunderlying cause of an experienceBeyond Philosophy 2001 - 2012All rights reservedBeyond Philosophy looksat all these aspectswww.beyondphilosophy.com17
How do we know which emotions drive businessvalue?2 years of baseline research with LondonBusiness School ( 2005 – 2006) identified20 emotions clustered into 4 hiddenfactors and that drive/ destroy value forbusiness.Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com18
Credit card company example 14Getting a CardExtending my Relationship25Using my CardHaving Financial Difficulty3Servicing my Account6Ending my Relationship19
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric20
Organizations are obsessed with fixing the basicsQuestion: Which of thefollowing elements describebest the CE you are trying todeliver?Fixing the Basics67%Source: Beyond Philosophyoriginal research ‘Seven keyingredients for a successfulCustomer Experience programin Telecoms”, 201233%27%8%SimplicityFriendlinessBeyond Philosophy 2001 - 2012All rights reservedDelight/WowTotal losophy.com21
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Priority Order of the AttributesDesired by CustomerEffect on ValueTop Ten(Combined desirability and current value)Beyond Philosophy 2001 - 2012All rights reserved0 Relative Magnitudewww.beyondphilosophy.com23
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric24
Yet, are businesses operationalizing emotions?Do you use customer journeymaps within your company?Have you defined what emotionsto evoke at certain customertouch points?85%70%30%15%YesBeyond Philosophy 2001 - 2012All rights reservedNoYeswww.beyondphilosophy.comNo25
CognitiveDissonanceNegative Emotion PointsEvaluation of offer Web search Conversation with theagentGetting the cardRecommended by afriend/ direct mailAwarenessApplicationStillinterested?Wait for confirmationGetting the cardCross sold by an agentYesYesAre youaware of thewaiting time?NoYesNoChase: Benefit 1 Benefit 2Fill in enrollment formsor call Company PP Benefit 2 Partners Direct DebitPeak EndRuleWaitReceiveBenefit 1 &Benefit 2 CardsExitCognitiveDissonanceYesYesAre youjust aboutto ?NoNoDo you needyour DD andsupp cardstransferred?NoReceipt ofWelcome packDid youmiss it?Receipt of call s it all clearto you i.e.DD set upetc?YesCall to book /ticketsCall to authorisesomeone to acton my behalfNoCall XXX to checkstatus of Benefit 1cardCall Benefit 1 tocheck status of cardCall Benefit 1 to askabout membershipnumber2nd Call to XXX tocheck status of PPcardBeyond Philosophy 2001 - 2012All rights reservedCall to chase theDDReceipt ofSupp cardSend signedform via post orfaxReceive DDcancellationletterWait 10 days fora response fromXXX via thepost2nd call to chasethe DDApply for asupplementarycard onlinewww.beyondphilosophy.comDownload 3rdpartyauthorisationform onlinePA to call tobook on CM’sbehalfFill in & AcctDisclosure &Authorisationform2nd call toauthorisesomeone to acton my behalf26
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric27
Who owns the Customer er stomerExperienceCustomerExperienceMajority2nd option2nd optionMinorityBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comIndependent CrossFunctional CE UnitMatureapproach28
Five Stages ofOrganizational Customer Experience JourneyNatural StageNo need for Chief Customer Officer and control over departmentsEnlightened Stage Chief Customer Officer Authority over other departments HR Ops Inputs into Operational Budgets Sets the customer measures and isresponsible for achievement cross-functionally: Sets the cultural frameworkHigh End Transactional Stage Equal authority to any of thefunctional groups Decisions have to be signed bythe CE member Veto rights CE people introduced earlier on in the process- two gate entries e.g. in the design phase andlater on in the final testing phase Meet the board twice a month Appointments to talk to the CEO Responsible for: customer measures Prioritise initiatives Facilitate changes Consult other department However: Dispose of limited budget No authority to: affect change in other departments access budgets in other departmentsNaïve Stage Study Customer Expectations Analyse Cust. Feedback Identify Problems Findings passed up the chain for others to actResponsibilityBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com29AuthorityLow End Transactional Stage
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric30
Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com31
Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric32
Naive to NaturalSubconsciousUnconsciousCompetenceConscious CompetenceConscious IncompetenceUnconsciousIncompetence33
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Seven fundamentals of a successful Customer Experienceprogram 1.Define the Customer Experience you are trying to deliver2.Plan to engage the senior execs and employees3.Embrace Customer emotions and experience psychology4.Identify what drives & destroys value in your experience5.Design a deliberate Customer Experience6.Establishing effective governance7.Implement new measures & remunerate against themBeyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.comCustomerCentric35
Beyond Philosophy 2001 - 2012All rights reservedwww.beyondphilosophy.com36
Thank you!Colin ShawFounder & CEO@ColinShaw CXZhecho com
Identify what drives & destroys value in your experience Plan to engage the senior execs and employees Define the Customer Experience you are trying to deliver Embrace Customer emotions and experience psychology Design a deliberate Customer Experience Establishing effective governance Implement new measures & remunerate against them 2. 3. 1. 4. 5.