Customer Experience Management+

Transcription

1 Customer Experience Management+

2 Managing Director of shaunsmith+co Author of best selling books on brand and customer experience Consulting internationally for 20 years

3 CEM+ Customer Experience Management+ 3

4 Introductions Your name and organisation What is your major challenge in delivering your brand? 4

5 Some facts Those firms in the top quartile, in terms of strength of their relationship with customers, achieve loyalty levels three times higher than bottom quartile brands Those companies that enjoy higher levels of brand loyalty achieve price/earnings ratios twice those of average companies Even in an economic downturn, 50% of consumers will pay more for a better customer experience Sources: 1) Carlson Marketing Group Relationship Builder Survey 2) Satmetrix Systems Customer Loyalty survey 3) Customer Experience Impact Report. RightNow Technologies 5

6 The changing economy Product orientation share of manufacturing Market orientation share of market Value orientation share of mind 6

7 From product brands to lifestyle brands 7

8 From service brands to experience brands 8

9 Customer Experience Management+ staircase Customer loyalty Experiences Services Emotional Valuable Products Functional 9

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11 Impact on growth Source: Satmetrix. Exploring the relationship between Net Promoter and Word Of Mouth in the computer hardware industry. 2008

12 Customer experience is bigger than customer service in that it is the full, end-to-end experience. It starts when you first hear about Amazon from a friend, and ends when you get the package in the mail and open it. Jeff Bezos, CEO 12

13 What builds great brands? List the labels in an order that describes how you believe brand value and profitability is created Brand Loyalty 13

14 The CEM+ profit chain Profitability and growth Brand loyalty Customer behaviour Customer satisfaction The Customer Experience Employee behaviour Employee satisfaction Adapted from Putting the Service Profit Chain to Work, Harvard Business Review, March/April 1994 The Employee Experience Leadership 14 Adapted from Putting the Service Profit Chain to Work, Harvard Business Review, March/April 1994

15 The CEM+ six step process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 15 Source: Brands and Branding. Profile Books. 2003

16 Customer Experience audit 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 16 Source: Brands and Branding. Profile Books. 2003

17 What do customers value? 17

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19 Value strategies Operational Excellence: Ryan Air Competitive pricing Speedy order fulfilment On time delivery Product Leadership: Sony Functionality Features Performance Customer Experience: Ritz Carlton Quality of relationships with customers Exceptional or individual service Completeness of solutions Source: The Discipline Of Market Leaders Treacy and Wiersema. Addiison Wesley.1995 Copyright shaunsmith+co All rights reserved.

20 The CEM+ process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 20 Source: Brands and Branding. Profile Books. 2003

21 What do these brands stand for? 21

22 What do these companies stand for? Innovation Service Value Quality Prestige Technical excellence Selection Convenience Price 22

23 Value disciplines: Virgin Customer Intimacy Operational Excellence 2 Product Leadership

24 Value disciplines: Ryan Air Customer Intimacy Operational Excellence 2 Product Leadership

25 Value disciplines: Singapore Airlines Customer Intimacy Operational Excellence 2 Product Leadership

26 Understanding our customers We have identified our most profitable customers We know what are target customers expect and value We know the value drivers that build loyalty in our market We know how our customers rate the current experience we provide against these value drivers We understand to what extent, and why our target customers prefer our brand to that of our competitors 1. Review your scores and identify one or two actions that you can take in your organisation. 26

27 A brand is a promise and you have to keep your promises 27

28 Case study two: First Direct What First Direct did was to realise that people were changing their habits and would want to bank 24 hours a day, 7 days a week. So that was the insight, I think that all great brands have insight Peter Simpson, Commercial Director 28 Source: Uncommon Practice People who deliver a great brand experience. S.Smith and A. Milligan. FT.Prentice Hall 2002

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31 EVERY 8 SECONDS SOMEBODY SOMEWHERE RECOMMENDS FIRST DIRECT TO A FRIEND Black & white banking 31

32 Customer loyalty 32

33 Customer loyalty 33

34 Advocacy drives growth Banking: Effect of Word of Mouth (Net Promoter Score) on Income Growth 34 Source. Advocacy Drives Growth. Dr. Paul Marsden. London School of Economics. December 2005.

35 The clear winner in the banking industry was First Direct, which received a 42% rating compared with the sector average of -4%. Fans liked the fact that customer service staff were accessible, friendly and knowledgeable... Source: Annual NPS awards. Satmetrix June 2010

36 The CEM+ process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 36 Source: Brands and Branding. Profile Books. 2003

37 Imagine you are in a hotel room. 37

38 designing the new experience 38

39 Customer Journey Customer Touchline Getting to the airport Check-In Comfort until Flight In-Flight Comfort Arrival Getting to Destination Customer Experience Issues Stressful Complicated Parking Lugging Long, frustrating lines Security hassles Want/need to work Want/need to relax Planes are uncomfortable by nature Long-time spent in a seat Boredom Unkempt Unshowered Clothes a mess Traffic Unfamiliar place CUSTOMER EXPERIENCE Pleasure Pain 39

40 Virgin customer journey Customer Touchline Getting to the airport Check-In Comfort until Flight In-Flight Comfort Arrival Getting to Destination Customer Experience Issues Stressful Complicated Parking Lugging Long, frustrating lines Security hassles Want/need to work Want/need to relax Planes are uncomfortable by nature Long-time spent in a seat Boredom Unkempt Unshowered Clothes a mess Traffic Unfamiliar place CUSTOMER EXPERIENCE Pleasure Pain 40

41 Virgin brand Icons Customer Touchline Getting to the airport Check-In Comfort until Flight In-Flight Comfort Arrival Getting to Destination Customer Experience Issues Stressful Complicate Parking Lugging Long, frustrating lines Unnecessary (only necessary to the airline) Want/need to work Want/need to relax Planes are uncomfortable by nature Long-time spent in a seat Boredom Unkempt Unshowered Clothes a mess Traffic Unfamiliar place CUSTOMER EXPERIENCE Design features Transport to airport provided Driver handles luggage Drive-though check-in Airline knows where you are Clubhouse with Internet access, fax, library Salon, messages, beauty Sound room, driving range, skiing machine Full-sleeper seats Mood lighting Gradual dawn Bar You decide meals Arrival valet 18 showers Makeup & shave Heated floors Clothes pressed Hot & Cold Breakfast Chauffeured delivery to destination Comfortable ride door-todoor Knowledgeab le local driver 41

42 Defining the new customer experience We have set up a partnership between marketing, HR and Operations to define and deliver the customer experience We have defined a brand promise that differentiates us in the eyes of our target customers We have mapped our customer touchline in terms of identifying the key points of contact our customers have with us and how our promise should be delivered at each We have defined how to improve our services and processes to deliver our customer promise in a way that is consistently valuable to target customers We have defined the specific employee behaviours required to deliver the new experience 1. Review your scores and identify one or two actions that you can take in your organisation. 42

43 43 coffee time

44 I ve always said I would put my employees first, customers second and shareholders third, but if you do that the customers and the shareholders benefit anyway Richard Branson, Chairman 44 Source: Uncommon Practice- People who deliver a great brand experience Shaun Smith and Andy Milligan. FTPrentice Hall 2002.

45 The CEM+ process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 45 Source: Brands and Branding. Profile Books. 2003

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47 THE BURBERRY EXPERIENCE MODULES Delivering the Burberry Experience in our Store Module 1 Be Professional Module 2 Be Perceptive Module 3 Be Proactive Module 4 Be Passionate Module 5 Persevere Module 6 Personalise Module 7 Partnership 47 / TFWA May

48 % %Change LFL SALES P R R (E P THE BURBERRY EXPERIENCE PILOT HIGHLIGHTS FINANCIAL RESULTS KPIs over the first 6 months compared to 2 months pre-initiative: 15% points better performance in change in LFL sales growth 0.3% points better performance in UPT PRE-PILOT BURBERRY EXPERIENCE PILOT 48 / TFWA May

49 WHAT WERE THE RESULTS? The top three factors that shoppers consider before recommending a brand are merchandise, service and store atmosphere. Two standouts across several criteria are British fashion house Burberry and French luxury outfit Louis Vuitton, with 77% of shoppers saying they would recommend Burberry to family and close friends... Source: The Luxury Institute April / TFWA May

50 WHAT WERE THE RESULTS? / TFWA May

51 Delivering your customer experience We have continuing internal communications to build clarity and commitment around implementing the customer experience Our leaders have been trained as champions of our customer experience and are leading its implementation We have created training to equip our employees to deliver the customer experience We have a scorecard of indicators that provide leaders with objective and timely feedback on how well we are delivering against our promise Our HR practices are reinforcing our brand values 1. Review your scores and identify one or two actions that you can take in your organisation. 51

52 The CEM+ process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 52 Source: Brands and Branding. Profile Books. 2003

53 Vorsprung durch Technik 53

54 The Ultimate Driving Machine 54

55 What makes a great brand? Trustworthy 97% Credible 96% Tells the truth 96% Never lets me down 93% The company has values and ethics 92% Consistent 91% Interesting and worth talking about 86% Innovative 85% Inventive 84% Recommended by people I know 78% Been around for a long time 41% Seen everywhere 39% The biggest 15% 55 Source Grey Worldwide. Eye On Australia survey

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58 Be engaged every 58

59 The CEM+ process 6 Customer experience audit 1 5 External communication proposition people processes Create brand platform 2 products 4 Internal communication Customer experience design 3 59 Source: Brands and Branding. Profile Books. 2003

60 Finally... It requires leaders Marketing Brand image Brand promise CEO Operations Learning, performance management, reinforcement Brand delivery Human resources 60

61 A tale of two CEO s 61

62 Creating alignment Recruitment/ induction Product development capability Brand Icons Branded training Performance management Innovation skills Product & services People & behaviour Brand promise Customer understanding & insight Customer experience Communications Service delivery Customer processes External brand communications Leadership & management development Internal communications

63 People Aligning the organisation What must be unique about our culture and our people? Product/Service Customer Experience Brand Proposition Strategy Purpose What must be distinctive about our products and services? Process What service experience must we create to deliver this proposition? What can we promise that will create competitive advantage? What strategic choices will drive achievement of our purpose and vision? What do we stand for/aspire to be? What internal processes do we need to enable us to deliver our proposition? What must we measure at each stage? Copyright Shaun Smith Co All rights reserved

64 Leading the customer experience Leaders believe that giving customers a better experience will lead to profitable growth Our company s top executives demonstrate their commitment to our customer experience strategy Leaders make decisions that are consistent with our customer experience strategy Leaders measure and monitor the quality of the customer experience Our leaders recognize employees who put customers first 1. Review your scores and identify one or two actions that you can take in your organisation. 64

65 Case Study

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67 A case study... Source: Advocacy Drives Growth. Dr Paul Marsden. London School of Economics December Copyright Smith+Co All rights reserved.

68 O2 was top of the mobile network scorecard. It gained a rating of 24% compared with an industry average of 3% Source: Annual NPS awards. Satmetrix June 2010 Copyright Smith+Co All rights reserved.

69 The experience you deliver to your customers every day, through every transaction, direct and indirect either builds value for your brand or destroys it. 69

70 CEM+ Customer Experience Management+