Customer Insight and tailoring your repairs service

Transcription

1 Customer Insight and tailoring your repairs service Repairs and Maintenance Conference 22 May 2013 Jan Kitshoff Definitions Private sector Housing Sector Content Latest Insight Research from BQF & CMLG 2012 Case Studies Housing Sector, Private Sector New thinking! 1

2 Smith, Brian, Wilson, Hugh and Clark, Moira (2006) 20/05/2013 Customer Insight Customer targeting data Operational visit/call reports data Social Media Macro-environmental Data Contract won/loss analysis Competitors offer data Customer Insight Customer visits data INTERNAL Information from suppliers/ industry press/ regulators etc EXTERNAL SLA contract performance review data Customer complaints/ compliments Customer satisfaction survey results/ focus groups/ mystery shopping KitshoffGleaves 2010 inspired by Woodruff (1997) Customer Value, The Next Source for Competitive Advantage, JAMS 2

3 Private Sector : Use of Insight Two key drivers Retention and Repurchasing and Advocacy (Loyalty and WOM) Segmentation (New products and or services) Tailoring of services is typically done to increase retention or increase income or decrease service costs (increasing income) Delivering a great Customer Experience The Profit Chain Operating Strategy and Delivery System Concept Internal Quality Employee Satisfaction Employee Retention Employee Productivity External Value Customer Satisfaction Customer Loyalty Retention Repeat Business Referral Revenue Growth Profitability Heskett, Jones, Loveman, Earl Sasser & Schlesinger Harvard Business Review, March-April

4 Customer experience improvements can be worth millions Realistically attainable improvements in customer experience can increase annual revenue by 40m (retailer) to 1.7bn (wireless carriers). Source: Forrester/Megan Burns Report, 2011 Am I pregnant? 4

5 Housing Sector understanding our tenants needs to tailor our services, communication channels Track record (Aids and adaptations, Supported housing, Energy advice and guidance, Benefits advice, ASB, Local offers etc) Diversity segmentation Examples Repairs & Maintenance MOT for high service users Vulnerability spotting External Data : Segmentation /visualisation.htm? External Data : Social Trends 5

6 Latest Research! Thought Leadership Project : BQF Customer management Customer Management Leadership Group (CMLG) at MBS Research Project 2012 : Use of Customer Insight Customer Insight Insight Tools and Techniques Customer Satisfaction Measurement Net Promoter Score (NPS) Customer Effort Score (CES) Customer Experience (CEx) Evolving Practice (Social Media) Compliments and Complaints 6

7 Reliable Quantitative Qualitative CMLG Research 2012 Un-reliable Insight! Net Promoter Score (NPS) On a scale of 0-10, how likely is it that you would recommend us to a friend or colleague? Not at all likely Very likely Detractors Neutrals Promoters % of Promoters (score>8) % of Detractors (score <7) Net Promoter Score = % minus % 7

8 Predictive Power For Repurchasing 20/05/2013 High CES NPS CSAT The Customer Effort Score out performs the Net Promoter Score and customer satisfaction measures in predicting behaviour. Low Predictive Power For Increased Spending High CUSTOMER EXPERIENCE MAPPING 8

9 Research findings Most common model used still CSAT...but large variations in implementation NPS (Five users) Only one organisation driven by overall NPS Benchmarking critical for brand Insight Value from verbatim comments as opposed to actual score CES Two early adopters Others investigated CMLG member Organisation Use of Quantitative Measures Use of Qualitative measures A 3 5 B 5 2 C 5 5 D 4 6 E 6 4 F 5 7 G 4 6 H 5 6 I 5 2 9

10 Kirkby, Wecksell, Janowski and Berg, Gartner, (2003) The Value of Customer Experience Management, Strategic Analysis Report, R , March Case Study : Analysis of Comments Housing Sector Gas (outsourced) Monthly CSAT Survey (outsourced) Overall reported CSAT 98% Ask open question : Any comments? What does the verbatim comments suggest? 10

11 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Total Total Comments Compliments Suggestions Total Comments Compliments Suggestions Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 11

12 CUSTOMER Word-of-mouth Communications Model of service quality Personal Needs Past Experience Expected Gap 5 Perceived PROVIDER Gap 1 Gap 3 Delivery Quality Specifications Gap 4 External Communication to customers Source: Parasuraman & Berry (1990) Gap 2 Management Perceptions Dimensions of Quality 1 TANGIBLES 2 RELIABILITY 3 RESPONSIVENESS 4 COMPETENCE 5 COURTESY 6 CREDIBILITY 7 SECURITY 8 ACCESS 9 COMMUNICATION 10 UNDERSTANDING/ KNOWING THE CUSTOMER 12

13 Dimension Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Total 4 COMPETENCE ACCESS RESPONSIVENESS COMMUNICATION RELIABILITY TANGIBLES UNDERSTANDING/ KNOWING THE 10 CUSTOMER COURTESY SECURITY CREDIBILITY COMPETENCE ACCESS RESPONSIVENESS COMMUNICATION Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 13

14 Mismatch Customer expectations Perceived Performance CUSTOMER Word-of-mouth Communications Model of service quality Personal Needs Past Experience Expected Gap 5 Perceived PROVIDER Gap 1 Gap 3 Delivery Quality Specifications Gap 4 External Communication to customers Source: Parasuraman & Berry (1990) Gap 2 Management Perceptions 14

15 Customer Expectations Gap 1 Market Information/ Customer Insight Gap Possible issues: Insufficient market research Inadequate use of market research in planning Lack of interaction between management and customers Low 2-way communication between managers and customer contact staff Management not involved in complaint resolution Management perceptions of Customer Expectations Gap 2 Management perceptions of Customer Expectations Standards Gap Possible issues: Inadequate management commitment to quality Absence of formal process for setting service quality goals Inadequate standardisation of tasks Perception of infeasibility customer expectations cannot be met Lack of imagination as to what can be achieved Quality Specifications 15

16 Quality Specifications Gap 3 Performance Gap Possible issues: Lack of or poor teamwork Poor employee-job fit Poor technology-job fit Lack of perceived control customer-facing staff Inappropriate evaluation/ reward system Role conflict among contact employees Role ambiguity Culture of poor service Delivery Delivery Gap 4 (Internal) Communications Gap Possible issues: Low interaction sales and operations Poor communications advertising/pr and operations Different policies and procedures locally Promise the earth desperation selling Inadequate sales incentives revenue not profit Poor key account management External communication to customers 16

17 Challenges Flat lining of measures? Sources of insight? Internal or outsourced services? Stock data (basic)? Demand for repairs? (Saturdays and Sundays) Impact of technology and the digital world? The Best is No! 5. Make it really easy to contact your company 1. Challenge demand for service 8. Deliver great service experiences 2. Eliminate dumb contacts 3. Create engaging selfservice 4. Be proactive 6. Own the actions across the company 7. Listen and act 17

18 My tips! Don t complicate your approach Brilliant basics! Profiling Use your tenant touch/contact points more effectively Basic techniques! SERVQUAL, Gap Analysis, RCA Don t over invest! Despite cost pressures, keep open ended questions in surveys More frequent surveys if outsourced Any Questions? jan@kitshoffgleaves.com