What Drives Member Rage? - Rage to Raves -

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1 What Drives Member Rage? - Rage to Raves - 17 th Annual CUNA Operations, Sales & Service Council Conference ************** Mary Murcott, President The Customer Experience Institute Dialog Direct

2 Session Overview CUNA Dialog Direct Relationship Rage Study Key Findings CSAT vs. NPS vs. CES Who Wins? What to fix first? What do members really want?

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4 CUNA Dialog Direct Partnership Began in 2011 with 10 sales reps in Medicare Now 40+ licensed sales reps Current Programs for CUNA Tru-Stage Life Applicant Upgrades Whole Life Consumer Sales

5 A Little Bit About Dialog Direct... Data Analytics Direct Marketing Contact Center Social ecommerce Fulfillment Creative Services Event Management

6 Dialog Direct

7 AT DIALOG DIRECT WE THINK DIFFERENTLY.

8 We help many of the best known brands connect and engage with their members...

9 By creating relevant, inspiring and ongoing dialogue throughout the entire member journey. MEMBER THIRD PURCHASE PROMOTER SECOND PURCHASE VISITOR STRANGER LEAD

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12 Operating Footprint

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14 Engagement Center Contact Center Call Center Engagement Solutions Centers

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16 2013 Rage Study Base on original White House Study Collaboration of CCMC, ASU and Dialog Direct Methodology 1000 phone surveys ± 95% confidence Core questions from six waves

17 PROBLEM EXPERIENCE

18 Problems Increasing Since % 80% 60% 40% % Respondents Experiencing A Product/Service Problem In The Past 12 Months 50% 45% 39% 32% 20% 0% 2013 Rage Study 2011 Rage Study Rage Studies 1976 White House Study

19 Products/Services That Caused The Most Product/Service Type Serious Problem 2013 Problem Respondents Problem Respondents Cable/Satellite TV 17% 7% Telephone 16% 10% Computer-related (hardware, software, internet, etc.) Consumer electronics non-computer 9% 8% 8% 8% Automobile 7% 11%

20 % Extremely Upset Level Of Member Rage Still High; With Big Increase Over Last Survey 100% 80% 68% 60% 71% 60% 40% 20% 0% 2013 Rage Study 2011 Rage Study Rage Studies

21 Damages Suffered: Escalation In Time Lost Type Of Damage 2013 Problem Respondents Problem Respondents Time 62% 50% Money 40% 43% Physical injury 5% 6%

22 Complaining To The Company That Caused The Most Serious Problem Where Complained To Company s 800 number 2013 Complainants 59% Local retail outlet 57% Head office 36% Company s website 26%

23 Complaining To Third Parties Third Parties 2013 Complainants Non-governmental agencies like the BBB 8% Governmental consumer protection agencies 4% Initiated legal action 2%

24 Other Ways Members with Problems Expressed Their Displeasure Expressions Of Displeasure 2013 Problem Respondents Problem Respondents Shared the story with my friends/other people 89% 87% Threatened to talk with or contact management 62% 54% Decided I'd never do business/come back again 46% 53% Yelled or raised my voice 36% 25% Threatened to report the entity that caused the problem to a government regulatory agency 16% 17% Cursed/used profanity 13% 7% Threatened legal action 8% 8% Threatened to contact the media 7% 6%

25 COMPLAINANT SATISFACTION

26 % Complainants Satisfied 60% 40% Complainant Satisfaction Is Still No Higher Than In The 1970 s 44% 44% 40% 20% 20% 18% 23% 0% 2013 Rage Study Rage Studies Top two boxes ( received more than I asked for and completely satisfied ) 1976 White House Study Top three boxes (Add answers to the I wasn t completely satisfied, but the action taken was acceptable response category to the top two box responses.)

27 Impact Of Complainant Satisfaction In 2013 Satisfaction With Action Taken (% Complainants) SATISFIED (20%) Average Number Told About Problem 10.2 MOLLIFIED (39%) 15.7 DISSATISFIED (41%) 27.7

28 WHY IS COMPLAINANT SATISFACTION SO LOW?

29 % Complainants Answering YES Was The Time Spent Complaining To The Company Worthwhile? 70% 60% 50% 40% 30% 20% 10% 0% 50% 61% 47% 2013 Rage Study 2011 Rage Study Rage Studies

30 With Action Taken Ping-Ponging : Still The Deadly Game In 2013 % Complainants Satisfied 100% 80% 60% 40% 20% 0% 35% 24% Average # Of Contacts: 2013: : % One contact Two contacts Three or more contacts All Complainants (21%) (19%) (60%)

31 % OF RESPONDENTS WHO FELT THAT THEY GOT NOTHING % 47% 52%

32 What Complainants Want vs. Got 1 Top 3: A 60 Point Difference! Remedy % Wanted % Got To be treated with dignity 94% 35% An assurance that my problem would not be repeated 84% 21% Offending company put itself in my shoes 83% 23% My product repaired/service fixed 81% 31% An explanation of why the problem occurred 81% 23% A thank you for my business 80% 33% An apology 76% 32% To be talked to in everyday language; not scripted response 76% 32% Just to express my anger/tell my side of the story 68% 37% My money back 52% 21% A free product or service in the future 41% 14% Financial compensation for my lost time, inconvenience or injury 40% 10% Revenge 20% 3% Other 12% 3% NB: Shading indicates a non-monetary remedy.

33 DOES IT PAY TO SOLICIT COMPLAINTS? YES THEN, NOT NOW

34 Brand Loyalty Uplift Resulting From Getting Problem Households To Complain: 1976 White House Study Increase In Brand Loyalty Over That Of Non-Complainants 60% 50% 40% Minor Problems +33% +44% Major Problems 30% 20% +9% +9% 10% 0% Satisfied Complainants Dissatisfied Complainants

35 Increase/Decrease In Brand Loyalty Over That Of Non-Complainants Minor Problems Major Problems 30% +21% +20% 20% 10% 0% -10% -20% -12% -12% -30% Satisfied Complainants Dissatisfied Complainants Just Getting People To Complain Is No Longer Enough: TODAY Companies Must Satisfy Complainants for Uplift In Brand Loyalty

36 Trained Helplessness Ninety-six per cent of unhappy members don t complain* 91 per cent of those will simply leave and not come back * *Source: White House Department of Consumer Affairs Copyright 2014 Copyright Dialog 2014 Direct Dialog Direct

37 USE OF WEB 2.0

38 Jeff Bezos, Amazon s CEO: Be afraid of customers

39 Senior Customers Be Even More Afraid

40 Complainants Increasingly Use Social Media to Voice Concerns Type of Website Site operated by offending company % of Problem Households Who Posted % 11% Social networking site 35% 19% Social media site 4% 1% Product/service review site 7% 4%

41 % Complainants Complaint Channel: Telephone Beats Internet By A Margin of 11 To 1 100% 80% 66% 65% 60% % 20% 6% 4% 0% Telephone Internet In person complaints 24%, Paper complaints 2%

42 SPECIAL INTEREST QUESTIONS

43 Revenge

44 World View Filters: Party Affiliation Matters Selected Customer Care Issues Republicans Democrats Independents Experienced product/service problems in past year 41% 47% 58% Problem experience resulted in customer rage 58% 69% 71% Complained about most serious problem 78% 78% 86% Time spent complaining was worthwhile 73% 50% 43% Got nothing as a result of complaining 46% 56% 57% Satisfied with action taken to resolve most serious problem (top three boxes) 60% 46% 38% Got revenge against offending company 6% 2% 2% Expression of displeasure about most seriousproblem cursed/used profanity Expression of displeasure about most serious problem yelled/raised voice Trust in companies respondents regularly do business with ( a great deal/quite a lot of trust) Standard of customer care ( service you get before, during, and after buying a product or service ) experienced during past year ( excellent/acceptable ) 3% 13% 15% 44% 33% 33% 43% 31% 32% 70% 60% 57%

45 Relationship Between Remedies And Percent Of Complainants Satisfied Remedies Complainants Got 2 % Satisfied With Action Taken Only monetary 37% Only non-monetary 21% Both monetary and nonmonetary 74% Key Takeaway: You need to do both!

46 Products/Services That Delighted The Most - The Same As Those That Caused The Most Serious Problems Product/Service Type 2013 Survey Respondents (Delighted Customers) 2013 Problem Respondents (Most Serious Problem) Telephone 10% 16% Computer-related (hardware, software, internet, etc.) 10% 9% Automobile 10% 7% Small ticket packaged goods 8% 3% Cable/satellite TV 7% 17% Consumer electronics noncomputer 7% 8%

47 We are Doing All the Right Things. In All the Wrong Ways How did Housekeeping do? xxxx

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49 Key Conclusion Companies have added many resources to complaint handling, but not executed properly Progress has been made 800 numbers for complaints Billions spent on staffing call centers Multi-channel access to complain Liberalization of warranties Complaint tracking systems But not enough.. Too complicated call prompts Hiding 800 numbers deep in the website Understaffing Low wage employees Offshoring Customer homework Misaligned corporate goaling

50 Key Takeaways from Rage Study Today, companies must truly satisfy complainants to get a loyalty lift The problems has not been lack of resources, but of execution Execution requires both monetary and nonmonetary fixes Key: Do it right, or don t do it at all!

51 Customer Effort Score & Simplicity Index Source: Chart adapted from CEB

52 New Research: Delight Doesn t Pay Source: CEB Analytics Delight costs 10-15% more Delight only happens 16% of the time Delight has a very low correlation with retention, engagement and repurchase decisions

53 High - Brand Damage - Low What to Work on First?* 5. Move satisfied customers to very satisfied 4. Deliver FCR & Issue Avoidance 3. Low Effort - No very dissatisfied or dissatisfied customers 2. ZCR - Reduce avoidable service contacts 1. Drive unspoken complaints to contact center *Source: Dialog Direct s Customer Experience Institute

54 Three Things All Members Really Want

55 Top CX Company s Common Service Pillars Know me Recognize me What members really want Solve my problem Make it easy to do business with you

56 Building the Brand Every member interaction helps or hurts the brand. There is no in between. - Mary Murcott 56

57 Thank You for Engaging! Mary Murcott President, The Customer Experience Institute Dialog Direct