Delighting customers does not guarantee loyalty. Roger Lee / August

Transcription

1 Delighting customers does not guarantee loyalty Roger Lee / August 2015

2 Our WFO heritage Teknekron Infoswitch Sold and implemented some of the industry s first standalone ACDs in the market. etalk Changed call recording industry by introducing Your call may be recorded for quality purposes; received 21 patents, sold first post-call-ivr survey. Autonomy Integrated first Quality Monitoring/Speech Analytics solution, bringing meaning-based understanding to the contact center. HP Purchased by HP in October 2011 and integrated into HP Software as HP Autonomy; released HP Qfiniti 10 in October HP WFO Software New business unit formed with a clear mandate from Meg Whitman to leverage and extend our WFO heritage

3 If delighting your customers does not guarantee their loyalty, what does? The answer: reducing customer effort.

4 Which begs the next question:. What are you doing to reduce customer effort?

5 Reduce customer effort to mitigate disloyalty The service organization s role is to mitigate disloyalty by reducing customer effort. The service organization has far more influence over disloyalty as compared to loyalty, so it should focus on mitigating drivers of disloyalty. The best way to mitigate disloyalty is to prevent and reduce customer effort. The service organization should focus on mitigating disloyalty by actively reducing customer effort. CS role is in mitigating 1 disloyalty Loyalty/ Disloyalty Impact of Customer Service on Customer L oyalty Mitigate disloyalty by 2 reducing customer effort 9% 96% Low-Effort Experience High-Effort Experience Customer Disloyalty Low versus H i g h Effort 3 Reduce customer effort more by how it makes customer FEEL Do 35% Feel 65% Improving customer E F F O R T L E S S F EEL is high value 5 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

6 Reduce customer effort to mitigate disloyalty (detail of 1 and 2) Customer effort extends beyond what customers do in service interactions, and is largely based on how they feel. The service organization has far more influence over disloyalty as compared to loyalty, so it should focus on mitigating drivers of disloyalty. The best way to mitigate disloyalty is to prevent and reduce customer effort. The service organization should focus on mitigating disloyalty by actively reducing customer effort. CS role is in mitigating 1 Mitigate disloyalty by 2 disloyalty reducing customer effort I m pact of Custo m e r S e r v i ce on Custo m e r L oy alty More Loyal Neutral More Disloyal 1.00x Total P otential Impact Total P otential Impact (3.97x) Disloy alty of Custo m e r s R e p o r t i n g H i g h Versus L ow Effort 9% L ow-effort Experience 96% High-Effort Experience n =54,166 customers. Source: Customer Contact Council Customer Loyalty Survey. 6 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

7 Effort is one-third DO and two-thirds "FEEL (detail of 3) The service organization s role is to mitigate disloyalty by reducing customer effort. Nearly 73% of company focus is placed on process improvement in an effort to reduce what customers have to do in service interactions. Only 27% of company focus is placed on the softer side of the experience managing how customers feel about the interaction. However, customer interpretation of the interaction is about two times as influential as the actions endured and exertion required by the customer. Accordingly, companies must focus greater attention on how customers interpret the interactions. Member-Reported Effort R eduction Focus A reas Percentage of Responses 72.8% of members focus on reducing exertion through: Pro cess improvements Technology Better knowledge management Service c onsistency What customers have to DO n =26 companies. Source: Customer Contact Council Member Survey 2010 R egression Drivers of the Customer Effort S core W h at Custo m e r s H ave to DO Exertion required from customer: The number of steps and actions required during the service experience % of Total Im p a c t Customer Effort ( L oyalty) 27.2% of members focus on improving the subjective, softer side of customer interactions through: Rep Creativity Emotional Connection with Customer Expectation Setting Soft Skills How it makes customers FEEL H ow It Makes Custo m e r s FEEL Interpretation made by customers: Customers subjective impression of how the rep made them feel during the service experience % of Total Im p a c t n =4,589 customers. Source: Customer Contact Council Customer Effort Reduction Survey; CEB, CEB Customer Contact Leadership Council, Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

8 Patience is so very yesterday Customers have tools at their fingertips that provide constant and immediate communication. They don t want to wait on hold and they don t want to have to repeat their information. 45% of US consumers will abandon an online transaction if their questions or concerns are not addressed quickly. Forrester Customers expect companies to know their individual needs and personalize their experience. Immediate resolution is not fast enough as customers expect companies to proactively address their current and future needs. 8 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

9 Easy is the new loyalty 8M users 160k drivers Snapchat: 100M daily active users WhatsApp: 800 M active users 1M downloads in 6 months > 100M users 9 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

10 What is Alibaba? Source: 10 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

11 Bad vs. Good customer experience News of bad customer service reaches more than twice as many ears as praise for a good service experience. 94% of customers who have a good/low-effort service experience will buy from that same company again. CEB A typical business hears from only 4% of it's dissatisfied customers. The rest just leave. 90% of customers claimed that positive online reviews influenced buying decisions. Dimensional Research It takes 12 positive experiences to make up for 1 negative experience. When companies engage with customers over social media, those customers end up spending 20% to 40% more money with the company. Bain & Company 91% of unhappy customers will not do business with you again! The revenue impact from a 10 % point improvement in a company s CX score can translate into more than $1 billion. Business Impact of Customer Experience Source: HelpScout 11 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

12 The future of customer experience (CX) In the age of the customer, executives don t decide how customer-centric their companies are customers do. By 2016, 89% of companies expect to compete mostly on the basis of customer experience, versus 36% four years ago. Gartner for Marketing Leaders By 2020, customer experience will overtake price and product as the key brand differentiator. Customers 2020 Report By 2017, 50% of consumer product investments will be redirected to customer experience innovations. Gartner for Marketing Leaders Mobile search will generate 27.8 billion more queries than desktop search by BIA/Kelsey Report, 2012 Image source: Gartner 12 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

13 The contact center as future customer engagement center Relationship hubs: Not only there to react but also to predict and advice customers. Intelligent contact routing: Increased complexity of the matchmaking process = Match client and expert instantly! Web chat: Allows agents to develop a personal connection E.g.: Amazon Mayday Customer service = key differentiator: 59% of customers would buy from a competitor as a result of poor customer experience. Mobile and social media: Mobile is becoming the preferred channel for engaging with brands , live chat, social media, instant messaging or voice call. Digital experiences integrated into everyday life Cloud + Omnichannel: Seamless experience across every channel True continuity of the customer s experience. Analytics as the engine, not a tool: Predictive/real-time information/metrics to agents. 24/7: Always-on mode. 13 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

14 Food for thought More effort for your customer: Do your customers receive multiple answers to a single question? Less effort for your customer: Do you have a clear, single destination point? Do you offer your customers related questions? Is your escalation process seamless? 14 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

15 HP Qfiniti Community HP Explore Community Thought leadership Yes, HP provides that, too HP Qfiniti HP Explore HP WFO Software