Accelerating growth through customer centricity March 20, 2018

Transcription

1 Accelerating growth through customer centricity March 20, 2018 Please disable pop-up blocking software before viewing this webcast

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4 Accelerating growth through customer centricity March 20, 2018 Please disable pop-up blocking software before viewing this webcast

5 Today's speakers Chris Smith National Strategy Practice Lead Grant Thornton Matt Sorenson Distribution Sales & Execution Lead, Americas Dropbox 5

6 Learning objectives Describe the foundation of customer centricity as a bridge to improved growth and profitability Recognize the increasing importance of customer centricity across the enterprise Explain the culture and metrics that are necessary to drive transparency and accountability in a customer centric environment 6

7 "There is only one boss. The customer. And he can fire everyone in the company from the chairman on down, simply by spending his money somewhere else." Sam Walton, founder of Walmart 7

8 What is customer centricity? Customer Centricity is a culture of putting the customer at the center of everything you do." "Customer Centricity reveals how to increase profits from your best customers, find more like them, and avoid overinvesting in the rest. Jim Sterne, Chairman of the Digital Analytics Association 8

9 PROFITABILITY GROWTH Business results illustrate the correlation between customer centricity and improved growth / profit Companies w/ inconsistent customer experience Companies w/ best in class customer experience Example: U.S. auto insurance carriers with best in class customer experience out-perform those with inconsistent customer experience ( ) 2-4x improvement ~30% improvement Source: McKinsey & Co. The Growth Engine: Superior Customer Experience in Insurance. May

10 In fact, customers often place more value on their experience than the economics of their transaction Example: A recent customer satisfaction survey of insurance policy holders clearly highlights the importance of customer-centricity over economics Ranked Factor 1. Employee courtesy 2. Ease of communicating with the insurer 3. Employee knowledge and professionalism 4. Transparency and ease of the process 5. The speed of the claim settlement 12. Settlement amount Category Customer Experience Economics 1. Customer experience can be more important to your customers than your price 2. Delivering and exceeding customer expectations will go a long way to delivering profitable growth 10

11 Industry trends continue to show customer experience as a source of competitive advantage 89% 6-7x 33% Percent of companies who expect to compete mostly on the basis of customer experience Higher cost of acquiring new customers vs. satisfying and retaining existing customers Amount that repeat customers will spend with your organization vs. newly acquired customers Customers who had the best past experiences spend 140% more compared to those who had the poorest past experience Delivering great experiences actually reduces the cost to serve customers from what it was previously" Source: Gartner, "Leading on the Edge of Chaos" by Emmet Murphy and Mark Murphy, "The Business Impact of Customer Experience 2016" report by Forrester, "The Value of Customer Experience Quantified" by HBR 11

12 In a recent study, companies and their customers were asked the same question 80% of companies believe they deliver a superior customer experience. 8% of customers believe these companies deliver a superior customer experience. Bain & Co. 12

13 So what does a customer centric organization look like? Everyone in your organization has a customer Customers exist both internally and externally to your organization Every role in your organization exists to serve a customer 13

14 INTERNAL FACING CUSTOMER FACING It is more important than ever to adopt a customer centric framework that promotes connection across the enterprise Decide to buy Awareness Research insurance options Consideration Compare options Select favorite companies Apply for policy Purchase Sign contract Make policy payments Use Submit claims; receive payment Renew/Advocate Renew policy Recommend company / agency Customer experience MARKETING (Brand, web, social, product) SALES (Tele, in-person, 3 rd party) CUSTOMER SERVICE (Web, phone) HR IT OPS FINANCE ACCTG. Company departments Customer intelligence (Customer segmentation, journey mapping & persona design, voice of customer, etc.) Measurement (Strategic: NPS, CSAT, social ratings, LTV, CAC, etc. / Operational: processing time, service response, etc.) Data & tech platform (360 customer data, integrated CRM and marketing automation, social listening, etc.) Customer-first culture (Exec sponsorship, customer council, culture evangelists, etc.) Customercentric infrastructure 14

15 Example: Sales and Marketing play a critical role in creating a customer centric organization by rewarding customers and instituting customer feedback mechanisms to improve the customer experience 1. Simplifying and integrating the customer experience 2. Rewarding and recognizing loyal customers 3. Developing a mechanism to capture and act on customer feedback 4. Establishing a team and resources dedicated to the customer experience design 15

16 Example: HR plays a critical role in creating a customer centric organization through hiring, retention, and performance management 1. How can the hiring process assist in being customer focused? 2. How can the questions asked in an interview assist? 3. How can performance management be used to reinforce customer focus? 16

17 Example: Finance plays a critical role in creating a customer centric organization by instituting customerfriendly transaction processes and by supporting internal customers with the specialty knowledge and decision support 1. Shortening the order-to-cash process is a win for all 2. Providing specialty accounting/tax knowledge to senior management in a timely manner saves $$ and reduces risk 3. Measuring customer centric KPIs 17

18 Adopting a customer centric mindset requires evaluating a company's culture and identifying gaps to assess it s readiness for change Customers Hearts Influence individuals to want to change by driving internal motivation and effectively managing resistance Identify customer impact and emotional triggers Target messages to address value to customers ensure support for change and mitigate risks from resistance Habits Shift organizational habits by identifying, understanding, and evolving individual behaviors Develop multi-faceted approach to ensure the right future habits Include in planning 3rd party experts to mentor, in-house coaches to monitor and guide change adoption Minds Provide individuals the knowledge and skillsets needed to change their behaviors Build the data-driven case for change to obtain LT alignment Convey why change is needed and what it will entail for the organization 18

19 The right metrics enable a customer centric mindset and drive transparency / accountability Customer centric KPIs Traditional KPIs Processing time Service response time Social ratings NPS CAC CLTV CRC csat MRR ARR These metrics are not meant to be prescriptive the most relevant customer metrics vary by industry, customer type, etc. Likewise, the definition of specific metrics can vary between organizations What matters is that your organization has an intentional strategy to measure what matters 19

20 What can you do tomorrow to help drive customer centricity in your organization? Evangelize the customer centric mindset, vision, and approach Set an example by serving your internal and external customers well and by influencing other departments to understand and serve their customers well Ensure that your organization is measuring the customer metrics that matter; this is the foundation of delivering a customer centric experience 20

21 Questions?

22 Today's speakers Chris Smith National Strategy Practice Lead Grant Thornton Matt Sorenson Partner Development Manager Dropbox 22

23 Disclaimer This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered For additional information on matters covered in this presentation, contact your Grant Thornton LLP adviser

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