Customer Experience 3.0. High-Profit Strategies in the Age of Techno Service JOHNA. GOODMAN

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1 Customer Experience 3.0 High-Profit Strategies in the Age of Techno Service JOHNA. GOODMAN AMACOM AMERICAN MANAGEMENT ASSOCIATION New York Atlanta Brüssels Chicago Mexico City San Francisco Shanghai Tokyo Toronto Washington, D.C.

2 Foreword vii by Richard DuFresne, National Manager Customer Care, Toyota Motor Sales Corporation Introduction: Why Customer Experience 3.0? 1 Section One: The Customer and the Implications of Customer Experience 3 Section Two: Designing the End-to-End Customer Experience 3 Section Three: Key Issues of Implementation 5 SECTION ONE The Customer and the Implications of Customer Experience 1 Why Good Service Might Not Result in a Great Experience 11 Understanding Customer Expectations 12 No Unpleasant Surprises 13 Identifying Sources of Customer Dissatisfaction and Uncertainty 17 No News Is Not Necessarily Good News 21 Why Your Current CE Is Leaving Huge Amounts of Money on the Table 23 Leveraging Technology for a Great Customer Experience 26 Eliminating Unpleasant Surprises 28 Getting Started: Questions to Ask Yourself About Moving Your Company Out of Complacency 30 Key Takeaways 31

3 More Than People: Customer Experience = People + Process + Technology 33 Delivering a Great Customer Experience: A Four-Part Framework 34 Applying Technology Düring Each Phase of the CE Framework 46 Metrics to Measure and Manage Customer Experience Effectiveness 48 Gelting Started: Questions to Ask Yourself About Your Existing CE 49 Key Takeaways 49 Jump-Starting Action by Quantifying the Revenue Cost of Inaction 51 Why Executives Believe a Great CE Is More Costly Than a Good CE 53 Measuring the Revenue Impact of a Great CE 55 Calculating the Top-Line Payoff of an Improved CE 57 Quantifying the Savings of a Great CE 72 Convincing the CFO 76 Picking Your Batties 78 Gelting Started: Questions to Ask Yourself About Your Business Case for CE 79 Key Takeaways 80 SECTION TWO Designing the End-to-End Customer Experience Do It Rightthe First Time (DIRFT) 85 DIRFT: The Essential Steps 86 Building a Flexible, Customer-Focused Culture That Delivers DIRFT 96 DIRFT with Flexibility 100 Establishing the Right Metrics for DIRFT 103 Gelting Started: Questions to Ask Yourself About Your DIRFT Processes 105 Key Takeaways 106

4 v Keep Every Door Open: Assuring MultiChannel Access 107 Encouraging Valuable Contacts 108 Factors That Drive Contact Workload 113 Flanning Customer Access More Complicated Than It Seems 118 Metrics to Manage Accessibility 127 Gelting Started: Questions to Ask Yourself About Your Accessibility 128 Key Takeaways 129 Always Satisfy Customers, and Sometimes Dazzle Them 130 Five Objectives for Your Company's Service System 131 Six Functions to Consistently Achieve All Five Objectives 134 Applying Technology to Create High-Tech High Touch 140 Metrics to Manage Service 147 Getting Started: Questions to Ask Yourself About Your Service Process 150 Key Takeaways 150 Listening Passionately to Your Customers' Unified Voice 151 VOC Objectives 152 Key Building Blocks of an Effective VOC Process 154 Sources of VOC Data Not Necessarily from the Customer 161 Building VOC: Avoiding Four Common Implementation Challenges 169 Practical Tips for Enhancing the Impact of the VOC Process 174 Getting Started: Questions to Ask Yourself About Your VOC Process 175 Key Takeaways 175 SECTION THREE Key Issues of Implementation Taming Technology 179 Aligning Technology with the Ideal CE 180

5 vi Contents Smoothing the Impact of Technological Evolution 184 Benefits, Pitfalls, and Best Practices of Available Technologies 187 Metrics for Managing the CE Aspects of Technology 200 Getting Started: Questions to Ask Yourself About How You Use Technology 202 Key Takeaways Building a Culture of Empowerment and Connection 204 Establishing an Environment That Fosters Empowerment and Connection 205 Flanning for Emotional Connection 210 Emotional Connection in a Techno World 213 The Role of Executives and Supervisors 214 Metrics for Measuring and Managing Empowerment and Connection 218 Getting Started: Questions to Ask Yourself About Your Culture of Empowerment 220 Key Takeaways Leading the Charge to the Next Level 222 Understanding the Role of the CE Leader 223 Two CE Roles Fraught with Danger 226 Lessons from the Journey 226 Preparing for the Inevitable Financial and Organizational Upheavals 232 Getting Started: Questions to Ask Yourself About Your Role as a CE Leader 235 Key Takeaways 236 Index 237

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