The DSV Customer Experience Programme - Our journey towards reduced customer churn

Transcription

1 The DSV Customer Experience Programme - Our journey towards reduced customer churn CX Forum October 2018, London

2 Personal journey within CX - highlights A closed-loop experience CX Forum, London October 2018

3 Three key take aways from this session Implementing a closed-loop Global CX programme bottom up Ensure local adoption of the CX programme Focus on the $-factor Moving bottom-up 3 CX Forum, London October 2018

4 Three product divisions working together to support the entire supply chain of our customers DSV Air & Sea DSV Road DSV Solutions Access to all markets through our global network Road freight services in Europe, North America and Africa Contract logistics services worldwide Annual ocean freight volume of more than 1.3 million TEU More than 20,000 trucks on the road every day 400 logistics facilities a total of 5 million m2 Annual airfreight volume of close to 600,000 tonnes FCL/LCL and project transports Special competencies in key industries e.g. automotive, renewable energy Groupage and LTL/FTL services Special competencies in key industries, e.g. automotive, retail Special competences in key industries, e.g. automotive, healthcare, consumer products Solutions for E-commerce 4 CX Forum, London October 2018

5 Competitive landscape consolidation is on-going Global top 20 freight forwarders based on 2017 revenue (billion USD) DHL Logistics (DE) Kuehne + Nagel (CH) DB Schenker (DE) C. H. Robinson (US) (DK) XPO Logistics (US) UPS (US) CEVA Logistics (NL) Expeditors (US) J. B. Hunt (US) Dachser (DE) Sinotrans (CN) SNCF Geodis (FR) Panalpina (CH) Kintetsu (JP) Gefco (FR) Yusen Logistics (JP) Rhenus & Co. (DE) Hub Group (US) Agility Logistics (KW) ,0 7,0 6,9 6,8 6,8 6,6 5,8 5,6 4,7 4,5 4,2 4,1 4,0 3,9 10,4 11,4 30,8 22,6 17,8 13,5 The market is fragmented and DSV s market share is ~ 2% It is estimated that the top 20 companies control 30% of the total freight forwarding market Source: Journal of Commerce, April 2018, DSV estimates 5 CX Forum, London October 2018

6 Challenge driven by acknowledging a need for improved customer retention and behaviour Growth potential Increase customer retention Improve customer-centric behaviour At all levels in the organisation 6 CX Forum, London October 2018

7 The CX Programme supports the DSV Strategy 7 CX Forum, London October 2018

8 Global enterprise closed-loop CX program defined at three different organisational levels Global Aims for the largest global business challenge linked to churn Global business challenges / opportunities Long term solution Global Strategy input Complex / Cross functional Will lead to- or support an existing global project Country Aims for the largest country challenge linked to churn Country challenges / opportunities Mid/long term solution country strategic plans Semi complex / cross functional Requires some effort to address Relational / Customer Aims for the largest individual customer challenge linked to churn Immediate customer follow-up 1:1 effort Owned locally through the CX Programme Anchored in the business with no add headcount 8 CX Forum, London October 2018

9 CX programme roll-out template to cater for fast implementation yet being close to the organisation Pre-launch (6 week before go-live) Intro/mobilize Roles/responsiblities Pre-launch local task MaritzCX configuring Local on-boarding workshop Adoption elearning of MaritzCX Communication Go-live test Go-live (At go-live) Surveys out twice per week Weekly CARE calls first four week First time experience Customer story MaritzCX dashboards Post-launch (1 month after go-live) Monthly CX updates Best practice sharing sessions Internal communication Customer cases CX tool box 9 CX Forum, London October 2018

10 The potential of our CX Programme became evident from the very beginning 10 CX Forum, London October 2018

11 Regularly activating the CEO as sponsor Put your customers first and go the extra mile Jens Bjorn Andersen CEO DSV Group Link to CEO blog: 11 CX Forum, London October 2018

12 Frequent internal visibility is needed from sponsor and programme promoters Recently, I received an from a business partner who was very impressed with our personal follow-up on what he "We actually thought that our customer relationships were healthy and that we had a solid base for organic growth. But we quickly learned that one of our largest customers saw things differently, Miroslav Country Sales Director DSV Lithuania thought was a routine sign-up for a newsletter. Within ten minutes of subscription, his phone rang: DSV calling to find out if the company had any transport needs? He wrote me that it was one of the most efficient and charming sales efforts he had ever encountered. In my latest update, I was the one who couldn t stop smiling (still smiling btw); this time, it was the business partner who was smiling. We were already suffering from some change fatigue locally, but this was by far the most easy to implement project thanks to the Global team Jurkka Country Sales Director DSV Finland 12 CX Forum, London October 2018

13 Our customers purchase behavior indicate potential for growing our business through increase in NPS Turnover Turnover 12 months NPS 12 months Growth of avg. DSV customers* Index 14 Index 86 Index 200 Index 100 Source: CXP June 2014 June N = 4.174, differences are significant at CI = 99%. * Avg customers in the CXP 13 CX Forum, London October 2018

14 The Customer closed-loop dialogue to reduce churn and improve share of wallet 1 Survey invitation via Customer answer into: 2 1. MaritzCX 2. Salesforce (via standard app) Customer 3 Customer ALERT Customer response case created FOLLOW-UP 48 hours 5 days 5 DSV Account Owner ACTION 4 Appropriate actions depending on customer type, feedback and other data 6 ESCALATION Immediate Manager 14 CX Forum, London October 2018

15 Increase in customer loyalty due to the follow-up activities People and their behaviour makes the difference not the numbers Hypothesis: The customer follow-up improves NPS going forward High performing group overall loyalty index increased to 103 First survey response Index 100 N=482 Second survey response Index 110 Shift in customer loyalty levels based on frontline behaviour NPS gap of +25 points 6 out of 10 customers received follow-up.back then NPS Distribution No. of responses CLOSED FOLLOW-UP NOT COMPLETED NO FOLLOW-UP % N=296 25% N=120 14% N=66 Source: CSP June 2014-March *Difference is significant at CI = 99% 15 CX Forum, London October 2018

16 Customer case - fast follow-up secured 40% more business within same week of replying PROMOTER (9) Good service, competent staff and good geographical coverage Karen Søgaard Karema Food Denmark Road Turnover: DKK April 2015 Follow-up dialogue with Karen: Thanked Karen for the positive feedback and probed for business Domestic business of DKK landed increase of 40% Follow-up and new agreement done within one week after survey response 16 CX Forum, London October 2018

17 Customer case - follow-up revealed a need simple need for self-service DETRACTOR (3) No reaction from our Sales Consultant when we ask a meeting Bjarne Kragh Fr. Petersen Maskinfabrik A/S Denmark Road Turnover: DKK Follow-up dialogue with Bjarne: Bjarne was in the process of finding a new supplier Call was done and a meeting schedule Plan for on-boarded customer to online solution agreed 17 CX Forum, London October 2018

18 Anchoring the programme at the country strategic level Global Aims for the largest global business challenge linked to churn Global business challenges / opportunities Long term solution Global Strategy input Complex / Cross functional Will lead to- or support an existing global project Country Aims for the largest country challenge linked to churn Country challenges / opportunities Mid/long term solution country strategic plans Semi complex / cross functional Requires some effort to address Relational / Customer Aims for the largest individual customer challenge linked to churn Immediate customer follow-up 1:1 effort Owned locally through the CX Programme Anchored in the business with no add headcount 18 CX Forum, London October 2018

19 MAKE IT COUNT - summary Tool box - Customer Experience Team Monthly dashboards (part of CXP) Customer Insights reports (part of CXP) NPS in Country Managers Scorecard Country deep-dives* Customer Defection Forecast* Customer Service framework / CRM for Customer Service* * Per country request 19 CX Forum, London October 2018

20 Xx VOICE OF THE CUSTOMER.are still the key improvement areas 66% 34% 37% of all customers' comments.. with a majority of feedback being negative COMMUNICATION STAFF ATTITUDE STAFF FOLLOW-UPS INFORMING CUSTOMERS OF CHANGE RESPONSIVENESS GENERAL DELIVERY/ SERVICE 52% 48% 30% of all customers' comments directed with equal amounts of negative and positive feedback GENERAL RELIABILITY SCHEDULE GENERAL EASE OF MAKING CONTACT General refers to positive comments about a satisfaction to xx. xxxxx refers to xxxx SPEED 58% PRICING/ RATES 41% 8% of all customers' comments directed to with a majority of feedback being negative GENERAL DETENTION/ DEMURRAGE DISCOUNTS OTHER General refers to both positive and negative comments about..which are.. Other negative comment are about when requested by customers Negative sentiments Positive sentiments 20 CX Forum, London October 2018

21 Anchoring the programme at the country strategic level Global initiatives: Global Country Relational / Customer Customer Service re-vitalization Advanced analytics prioritized (several initiatives running) Early Warning system to be implemented CX as part of Executive Leadership 21 CX Forum, London October 2018

22 CX Programme - Do s and don ts Tap into the company DNA Create the financial link to NPS Find your allies and turn them into your CX programme promoters KPIs on behaviour then NPS and $ will follow Visibility at all levels Be patient yet persistent Avoid early discussions on ROI it is a journey Implementing CX top-down? Make sure that you don t run anybody over internally they are your customers NPS targets can lead to wrong behavioural change Carefully consider claiming fame Team composition 22 CX Forum, London October 2018

23 Thanks for your attention The DSV CX team Hanne Oesterskov CX Lead Denmark Grzegorz Augustynek Analyst Poland Anders Normann CX Director Denmark Pia Elmue Senior Analyst Denmark 23 CX Forum, London October 2018

24 The DSV share price development ,00 600,00 500,00 400,00 CXP Launched 300,00 200,00 100,00 0,00 24 CX Forum, London October 2018 Danish CEO of the year 2016, 2017 & 2018