View from the Top: Building a Customer-Centric Business Culture
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1 W E B C A S T S E R I E S View from the Top: Building a Customer-Centric Business Culture April 23, pm to 3pm EDT
2 Featured Speakers Dennis Fitzgerald VP, Customer Satisfaction Yaskawa America Stephanie Sorrell Director of Service Excellence Mouser Electronics Craig Bailey Founder & President Customer Centricity, Inc. Dennis Gershowitz VP, Service Strategies Practice Anthony & Alexander Group, LLC
3 Using CEMDNA Strategy to Build a Customer-Centric Business Culture Dennis Gershowitz VP, Service Strategies Practice
4 Where Are You in the Journey?
5 CEMDNA Playbook Strategy
6 Building a Customer Centric Organization Dennis Fitzgerald VP, Customer Satisfaction Yaskawa America
7 Yaskawa Electric Corporation (B2B) Yaskawa Electric Corporation Kitakyushu, Fukuoka, Japan Founded: 1915 Sales: $3.9 Billion Associates: 13,000 Yaskawa America, Inc. Drives & Motion Division Waukegan, IL, U.S.A Founded: 1967 Sales: $550 Million Associates: 987 Robotics Division AC Drives Motion Control
8 Yaskawa America Business Landscape
9 Quality Process DEMING PDMI CYCLE PLAN IMPROVE DO MONITOR
10 Customer Lifecycle Journey
11 Touch Point KPIs Target Mar Apr May June July August September October November December January February Continue to expand service as a differentiator through increased customer satisfaction and development of programs to build customer loyalty and retention. Abandon Calls Inside Sales - Inside Sales < 3% 2.2% Abandon Calls Inside Sales - Repair < 3% 2.3% Abandon Calls Part Sales < 5% 3.2% Abandon Calls Cust Tech Support - Drives < 6% 8.0% Abandon Calls Cust Tech Support - Motion Controller < 6% 10.0% Abandon Calls Cust Tech Support - Motion Servo < 6% 4.1% Abandon Calls Cust Tech Support - CNC < 6% 2.2% Grade of Service Inside Sales - Secondary (Q01) >92% 90.0% Grade of Service Inside Sales - Primary (Q02) >92% 80.0% Grade of Service Inside Sales - Repair >90% 91.0% Grade of Service Part Sales >90% 87.0% Grade of Service Cust Tech Support - Drives >75% 50.0% Grade of Service Cust Tech Support - Motion Controller >75% 60.0% Grade of Service Cust Tech Support - Motion Servo >75% 58.0% Grade of Service Cust Tech Support - CNC >75% 91.0% Fulfillment Level Drives (core) > 95% 93.0% Fulfillment Level Motion (core) > 95% 92.0% Promise Date Service Level Drives > 98% 95.5% Promise Date Service Level Motion > 98% 91.3% Promise Date Service Level 4W > 95% 90.5% Tech Support Survey Maximum possible (Count of Incidents with s) 1329 Qty of survey replies 65 % of replies 4.9% Issues resolved 94% Issues resolved on first contact 86% Satisfied with the time it took to resolve based on 1-5 scale where (5=excellent, 4 = good, 3 = average, 2=fair, 1=poor) 4.6 Overall satisfaction rating based on 1-5 scale where (5=excellent, 4 = good, 3 = average, 2=fair, 1=poor) 4.7 Increase efficiencies of areas within the Customer Interaction Center. Controllable Credits - Drives < 1% of Invoices 1.0% Controllable Credits - Motion < 1% of Invoices 3.0% Number of Calls Inside Sales No Target 2,449 Number of Calls Inside Sales - Repair (Q09) No Target 520 Number of Calls - Part Sales No Target 532 Number of Calls Cust Tech Support - Drives No Target 3,322 Number of Calls Cust Tech Support - Motion Controller No Target 220 Number of Calls Cust Tech Support - Motion Servo No Target 173 Number of Calls Cust Tech Support - CNC No Target 600 Number of Calls Industrial Drives Applications No Target 74 Average Wrap Up time per interaction No Target 0:03:13 Number of Incidents No Target 2120 First Call Resolution - Technical Support No Target 75.0% Repair Backlog All No Target 567 Repair Hold - Third Party Repair Hold - Customer Action Repair Hold - Missing Parts Repair Hold - Recommend Scrap Repair Hold - No Problem Found Repair Eval Complete CP Repair All Areas > 85% W/I one week 92.5%
12 Customer Satisfaction Survey
13 Key Activity Timeline
14 Impact Payoff
15 Summary Develop a Strategy Develop Action Plans including KPIs around Customer Touch Poi Listen to your Customer s Feedback Engage all Associates Remember it s a Journey not a Destination
16 Building a Customer Centric Business Culture Stephanie Sorrell Director of Service Excellence Mouser Electronics
17 The Newest Products for Your Newest Designs Our Company Mouser Electronics is a worldwide leading authorized distributor of semiconductors and electronic components for industry leading suppliers with over 4 million products online. Our focus is the design engineer in the proto-typing, testing, and small production phase Widest selection of semiconductors, interconnects, passives, and electromechanical components Newest products added daily No minimum orders Same-day shipping Our website provides expert technical articles and resources 20 global sales offices that offer local service and technical support. Warren Buffet s Berkshire Hathaway, Inc. acquired Mouser in 2007 Mouser Electronics has over 1300 employees worldwide, headquartered & fulfillment in Mansfield, Texas Mouser Proprietary and Confidential
18 The Newest Products for Your Newest Designs Agenda Key steps to creating a customer centric culture Mouser s Journey How to get started Mouser Proprietary and Confidential
19 The Newest Products for Your Newest Designs Building a Customer Centric Business Culture 1. Define desired state 2. Create a baseline and Continually evaluate 3. Operationalize it Mouser Proprietary and Confidential
20 The Newest Products for Your Newest Designs Define Desired State Always Start with the Customer Define the customer expectations and experience Surveys? Anecdotal information from front line? What s your business model? Core Competencies? Determine what you re trying to offer to them Are you offering your customers what you expect you are? Are you offering them or more less? Do you have alignment with what your are offering? Are you providing the right product(s)? Mouser Proprietary and Confidential
21 The Newest Products for Your Newest Designs Create a Baseline Create a baseline of where you are Can you measure it? If not, get clear about it and begin to at a simple level Create a regimen around the voice of the customer External (Feedback system, surveys) Internal from customer facing people (Round tables, Escalations, Feedback system) Maintain consistent tracking to quantify and articulate Continuously review information and make adjustments Refine measurement tool Data can be looked at in many ways Smaller changes (individuals) Larger changes (service level) Comprehensive data (company shift) Mouser Proprietary and Confidential
22 The Newest Products for Your Newest Designs Operationalize It Create business process to operationalize it With a heavy emphasis on reward and recognition Procedures Systems Performance Management Mouser Proprietary and Confidential And, Brand it! Training
23 The Newest Products for Your Newest Designs Mouser s Journey Desired State: Be the Distributor Most Preferred by Design Engineers Baseline: Began to Measure Interactions, Feedback & Much More Operationalize: Integrated feedback and made system changes, updated procedures, and have systematic meetings and a common language around the voice of the customer. Customer Experience Management Strategy Accomplished but we keep going, keep improving Mouser Proprietary and Confidential
24 The Newest Products for Your Newest Designs President s Philosophy Mouser Proprietary and Confidential Always do right. This will gratify some and astonish the rest. --Mark Twain Quality Policy Mouser Electronics is committed to gratifying and astonishing customers with our customer service excellence, order accuracy and on-time delivery. This is accomplished through our commitment to continual improvement of our processes, services, products and our people.
25 The Newest Products for Your Newest Designs Proven Success 100.0% 95.0% 90.0% Current Requirement 85.0% 80.0% 75.0% Next Phase Inbound Calls s 70.0% 1 st Step Create a Requirement 65.0% 60.0% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Baseline! Mouser Proprietary and Confidential
26 The Newest Products for Your Newest Designs Great Customer Service Perfect Order What customer wanted Right parts Exact quantities Delivered on time Accurate and timely settlement + Great Experience Local Responsive Knowledgeable Easy to do business with Professional Helpful Processes & Procedures Service Excellence Program This has always been Mouser s approach and the company has historically had award winning service! Mouser Proprietary and Confidential
27 The Newest Products for Your Newest Designs Service Excellence Program (Our Brand!) Define Standards Adjust Program Train Measure Progress Observation Forms IFB, EFB Coach, Escalation Observe & Track Mouser Proprietary and Confidential
28 The Newest Products for Your Newest Designs Continual Improvement Resolve Problems Assess/Listen & Understand Level 2 Service Excellence Level 4 Service Excellence Level 3 (Current) Service Excellence Be Consistent Level 1 Service Excellence Pre-Service Excellence Mouser Proprietary and Confidential
29 The Newest Products for Your Newest Designs How to Get Started 1. Identify a Champion of Change 2. Identify what can be measured 3. Operationalizing takes time it doesn t happen over night In the mean time: Identify an opportunity to create loyalty Mouser Proprietary and Confidential
30 Becoming Customer Centric: The Journey to Customer Centricity Craig Bailey Founder & President Customer Centricity, Inc.
31 About Us Customer Centricity, Inc. A management consulting firm that works with companies to improve the customer experience and operational performance. Launched in Have served over 35 medium to large firms. Primary Offerings: Customer Experience Assessment A 360 degree review of the customer experience resulting in a road-map to Customer Centricity. Project Management Services Drive programs resulting from our assessments, and MANY other types of initiatives (post acquisition / whole-company integrations, etc Customer Centricity, Inc. All Rights Reserved 31
32 Agenda Common Misconceptions The Scope of the Customer Experience Why Become Customer-Centric? The Journey to Customer Centricity 2014 Customer Centricity, Inc. All Rights Reserved 32
33 Common Misconceptions To delight the customer means that we must become a door-mat (always saying yes). Realities An effective relationship requires win-win. It is o.k. to tell the customer no. It just matters how you say it Using tact and diplomacy, and providing alternative solutions to meeting their need. Help them come to this understanding as a product of their own conclusion Customer Centricity, Inc. All Rights Reserved 33
34 Common Misconceptions The Customer Experience is the problem of Customer Service. Realities Customer Service is a critical component of the customer experience and is where many customer issues manifest themselves. However, the root-cause is often upstream. GIGO applies to business practices as well as technology Customer Centricity, Inc. All Rights Reserved 34
35 What is the scope of the Customer Experience? EVERY touch a prospective or existing customer has with your firm Marketing campaigns (postal or ), web-site, outbound calls Inbound Contact Center - calls resulting from marketing efforts Sales process - qualification, contracts, closing, follow-through Facility visit (retail, office, or otherwise) Product / Solution Implementation and/or Delivery Customer service / Technical Support Invoicing, Credit and Collections And, the supporting organizations! 2014 Customer Centricity, Inc. All Rights Reserved 35
36 Why Become Customer-Centric? In a word Differentiation. So your customers will: Remember the positive experience Want to come back Tell others about their experience with your firm The alternative A constant battle Next slide 2014 Customer Centricity, Inc. All Rights Reserved 36
37 The Funnel Effect New Customers Acquisition The Base (Retained) Customer Defection / Churn 2014 Customer Centricity, Inc. All Rights Reserved 37
38 The Journey to Customer Centricity How does one become Customer Centric? By aligning resources to deliver a holistic customer experience focused on mutually profitable relationships Customer Centricity, Inc. All Rights Reserved 38
39 Customer Centric Imperatives 1. Know Your Customer 2. Align Your Resources 3. Listen and Respond 2014 Customer Centricity, Inc. All Rights Reserved 39
40 1. Know Your Customer Each customer: Has a specific set of needs Deserves an appropriate level of attention and support (e.g., responsiveness, phone-time, face-time, etc.) Can you know ALL your customers and treat each differently? 2014 Customer Centricity, Inc. All Rights Reserved 40
41 Customer Segmentation Grouping customers to effectively and efficiently meet the unique needs of each segment through tailored value propositions. Enables you to allocate limited resources where they can best be leveraged to maximize customer acquisition, retention and profitability. Applies to marketing, sales and service. And all organizations supporting these 2014 Customer Centricity, Inc. All Rights Reserved 41
42 2. Align Your Resources What Resources? People and Structure Principle: Your people have the greatest influence on the customer experience. Empower them to delight the customer. Processes Principle: Make it easy for the customer to do business with you. Technology Principle: Automate effective customer-focused practices. Products and Services (Solutions) Principle: Design the customer experience in before market Customer Centricity, Inc. All Rights Reserved 42
43 People and Structure Typical Issues Plaguing Firms Lack of interpersonal relationship skills Driven by script with no flexibility to deviate on behalf of the customer Employees are (publicly) reprimanded for deviating from process Customer Centric Requirements Majority of personnel are skilled in interpersonal relations Perform against policies and procedures with the understanding that they were designed to enable the customer to do business with you: NOT meant to be a customer obstacle. When exceptions occur the objective is to determine how to meet the customer s need and facilitate meeting that need without placing the burden on the customer to figure it out. Rewarded for customer centric behavior. When deviation occurs outside of tolerance or a negative result occurs, coaching takes place to improve the employees future decision making. Measure and reward on individual and departmental productivity (e.g., new revenue, calls answered, time to delivery, etc.) Measure and reward on customer success (e.g., satisfaction, retention, revenue, profitability, share of wallet, etc.) 2014 Customer Centricity, Inc. All Rights Reserved 43
44 People and Structure Typical Issues Plaguing Firms Lack of ownership of the customer Customer Centric Requirements Clear accountability and ownership of the customer. Not my problem syndrome Live by the philosophy - the customer s problem is my problem and therefore I will facilitate resolution. Back-office personnel detached from the customer. All personnel understand customer sentiment (reasons for satisfaction and dissatisfaction) and acknowledge that everyone is a customer to someone else Customer Centricity, Inc. All Rights Reserved 44
45 Process Typical Issues Plaguing Firms Processes designed from the inside out, focused on internal (departmental) efficiencies. Customer is required to figure out how to do business with you and must speak to multiple people to get things done. Customer Centric Requirements Processes designed from the outside in to enable customers to do business with you. The customer is buffered from the intricacies of the firm because each person that touches the customer takes full accountability. Customer is managed on a transactional level (e.g., individual orders, inquiries, issues, etc.). Customers are treated equal through a one-size-fits-all approach. Personnel don t know the unique needs of the customer or the relative profitability. Customer s experience is managed holistically. Customers are segmented based upon unique needs and expectations. Employees are aware and empowered to treat them appropriately Customer Centricity, Inc. All Rights Reserved 45
46 Technology Typical Issues Plaguing Firms Implemented in response to business problems, automating existing bad practices. Implemented with a focus on efficiency gains resulting in obstacles to the customer. Incomplete view of the customer profile or customer information must be retrieved from multiple sources. System provides no indication of customer needs (e.g., special handling - a temporary situation) and/or segmentation. Customer Relationship Management (CRM) viewed as a technical problem. Customer Centric Requirements Implemented to automate improved operating models and processes. Implemented to enable customers to more effectively and efficiently do business with you. Critical customer profile information is accessible via a single interface or portal. System alerts personnel to needs and attributes of customers to enable appropriate handling. CRM viewed as a business strategy to maximize results achieved through your customer relationships Customer Centricity, Inc. All Rights Reserved 46
47 Products and Services (Solutions) Typical Issues Plaguing Firms Designed and launched to provide features and functions anticipated to capture new revenue from new customers. The customer experience is considered after market in a reactive manner. Focus on product / service specific profitability. Customer Centric Requirements Needs of existing customers and improving their experience is a primary driving force. When launching a product or service, the customer experience is designed in advance. Focus on customer success (e.g., satisfaction, retention) and segment profitability Customer Centricity, Inc. All Rights Reserved 47
48 3. Listen and Respond Typical realities: Customer-facing personnel don t know where to go with improvement ideas and customer complaints. They simply solve the immediate issue and move on The rest of the organization doesn t know what the customer is REALLY saying. Customer Satisfaction Survey Is this listening? Are we responding? To know and not to act is really not to know. Voice-of-the-customer: Continuously obtain and analyze customer input Internalize the customers input and respond The subject of my panel discussion on May 23 rd 2014 Customer Centricity, Inc. All Rights Reserved 48
49 In closing There is no silver bullet. Becoming Customer Centric is not: Rocket-science It is an alignment of focus. Pie-in-the-sky It is a highly effective and pragmatic business strategy. Starts at the top! 2014 Customer Centricity, Inc. All Rights Reserved 49
50 Thanks for Your Participation Dennis Fitzgerald VP, Customer Satisfaction Yaskawa America Tel. 847/ Stephanie Sorrell Director of Service Excellence Mouser Electronics Tel. 817/ Craig Bailey Founder & President Customer Centricity, Inc. Tel.: 603/
51 Requests for Information Dennis Gershowitz VP, Service Strategies Practice Anthony & Alexander Group, LLC Tel.: 910/ Check for upcoming webcasts at
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