Creating a Culture of Care. Merchandising Marketing Operations Infrastructure

Transcription

1 Creating a Culture of Care Merchandising Marketing Operations Infrastructure

2 Why is Customer Service so Important? Customer retention is far less expensive than customer acquisition Word-of-mouth advertising is the best advertising that money can't buy Employees pay careful attention to how a company treats its customers. That resonates powerfully with people. Great customer service results in a reduction of overall problems because it provides feedback for future Improvement

3 Why is Customer Service so Important? 45% of customers are willing to pay more for better customer service (Accenture) 42% of consumers have purchased more after a good customer service experience (Zendesk)

4 The Bad-Service Ripple Effect Service failures not only drive existing customers away they can also repel prospective ones. Research shows: 25% of customers are likely to say something positive about their customer service experience 65% are likely to speak negatively -- HBR

5 Why is it so Difficult to Deliver Great Customer Service? It s a moving target: What is great service? It s not instinctive Our clients see what we don t It relies heavy on human beings It needs consistency day in and day out Because the root of good (or bad) customer service is organizational culture. Culture in itself is difficult to understand and change!

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7 is Culture? CultureWhat is what happens when Culture is associated doing what they nobody is with looking. What is organizational culture? should do without being asked. Important? CultureIsisCulture the way our team thinks, The only competitive we have is the acts and advantage interacts. culture and values of the company. Howard Schultz, CEO, Starbucks

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9 Transform, Influence, Evolve, Change, Refine How to the Company Culture You start to work with what you ve got!

10 MBA does not work! You cannot merely announce what you want people to do differently, and then sit back and expect them to do it. Management By Announcements

11 Culture Iceberg Actions / Behaviors Results Values / Beliefs Experiences / Learning

12 Do you believe if we treat our employees well, they will treat our customers well? Robert Wegman s success comes from a renegade philosophy, applied consistently for more than five decades: Employees come first, customers come second. Southwest Airlines puts employee happiness above customer satisfaction. 2/15/

13 Culture Refinement To accelerate culture change you need to work in all levels of the iceberg simultaneously. It is not enough to tell people what they should do, you must also address how they think, and why. If you change the way people think, you will change the way people act!

14 A program designed to help retailers improve customer service and evolve their culture

15 The Research Jana de Anda at IGA Rally 2017 Hi! Voice of the Customer Data (Analyzed 13,986 Customer Feedback Surveys) 4 Data Streams (Quantitative & Qualitative) Research is Rad Store Assessments/Mystery Shops at top and bottom performing locations (4 per store during benchmark) Interviews with store operators at top and bottom performing locations Online Communities of current customers TrendSource identified the behaviors that positively impact a customer's overall satisfaction, likelihood to recommend, and intent to return to IGA.

16 Basic service behaviors that positively impact shopping experience 16

17 Performance Measurement & Reporting Tools Customer Feedback Surveys (CFS) Provides ongoing feedback from customers Store Assessments: Mystery Shops Measure associate behaviors while interacting with customers Baseline assessments (usually 4) Post launching / initial training (ongoing basis) Associate Survey (Store Culture) Completed at the beginning for baseline for feedback purposes After launching and training continue feedback of associate perception

18 Culture & Leadership Tools Program Guide, Meeting Agenda, Videos, etc. Online Training for Associates Blended Training for Leaders Webinars, Monthly Calls, etc. Support Kit: posters, signs, reminders, etc.

19 Training for Leaders

20 Leadership Journey & Culture Refinement Customized Consulting & Onsite Guidance 360 o Leadership Assessment & Follow Up Review & Creation of Company Promise, Values & Behaviors (Custom Course & Culture Manual) Leadership Workshops, Coaching for Culture, Training Ambassadors Post Training Follow-Up, Periodic Reviews, Ongoing Support

21 So far IGA has conducted: 1 Prototype (6 stores) 2 Pilot programs

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24 Pilot Program Outcome Employee Surveys Overall Associate Satisfaction scores improved by 6%! (Improvement was seen across almost all questions and categories between the pre and post benchmark studies) Customer Feedback Surveys Overall Customer Satisfaction scores improved by 15%! Likeliness to Return scores improved by 7%! Adams full Executive Summary including detailed results can be found in the Appendix

25 Key Learning: Middle Managers need to become leaders LEARNING LEADERS: The competencies managers and supervisors play in creating a culture of development and change. Leaders need to shape the culture through their behaviors. They need to model the desired behaviors! At the end of the day, the leader s example sets the tone for the store. Leaders values, actions, and the development of their teams need to visibly reinforce the culture and strategy.

26 Key Learning: Critical Mass Critical mass comes through alignment. To set off a cultural chain reaction, we need to form a critical mass of people who take ownership and buy into the behaviors and values.

27 Key Learning: You can not make up in training what you lack in hiring. Hire for Values 2/15/

28 Key Learning: Culture Leaks Review it regularly. Without attention, culture can slip and migrate all over the place. Review it at a quarterly business review just like you'd review your critical business strategies. Feb-18 Goelzer 28

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31 Interested in learning more? visit

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