Using Customer Experience Analysis to Reduce Cost and Employee Frustration

Transcription

1 Using Customer Experience Analysis to Reduce Cost and Employee Frustration by John Goodman, Vice Chairman, TARP Worldwide Tuesday, October 25, 2011 Toronto Board of Trade The Investment Funds Institute of Canada 1

2 Agenda What causes frustration and extra cost? Problems and the inability to resolve them. Solution reduce problems and increase employee and customer success. Last year s strategy: Prevent problems via setting proper expectations Create a Voice of the Customer describing the end-to-end experience Make your front line successful Use technology to deliver psychic pizza This year Practical examples of prevention and psychic pizza Consider creating a chief customer officer Consider creating communities to help you and each other The Investment Funds Institute of Canada 2

3 About TARP Founded in years of customer experience leadership White House Complaint Studies 1970s-80s (instigated 800#s and GE Answer Center) Assisted 6 Baldrige Winners and 43 Fortune 100 Companies Initiated concept of word of mouth (TARP/Coca-Cola 1978 Study) and word of mouse (CEA ecare studies ) Credited with developing the approach for quantifying the impact of quality on revenue, cost & WOM for companies like Merrill Lynch, HSBC, Scotia Bank, USAA, Canadian Tire Financial, American Express, Mackenzie Investments, Ritz Carlton, Legg Mason, Cisco Systems, Shell Canada & Harley Davidson Canada. The Investment Funds Institute of Canada 3

4 Formula For Maximizing Customer Satisfaction DOING THE RIGHT JOB RIGHT THE FIRST TIME EFFECTIVE + CUSTOMER = CONTACT MANAGEMENT MAXIMUM CUSTOMER SATISFACTION & LOYALTY Improved Product & Service Quality Respond to Individual Customers Identify Sources of Dissatisfaction Conduct Root Cause Analysis Customers will: Use again Use more Tell others to use Try your other products & services Feedback on Prevention The Investment Funds Institute of Canada 4

5 Firefighting Mode The Investment Funds Institute of Canada 5

6 Driving the Customer Experience: Six Big Ideas From Strategic Customer Service 1. Staff don t cause most customer dissatisfaction marketing, processes and the customer do 2. The revenue impact of great service is 20 X the cost 3. An effective Voice of the Customer is more than surveys 4. Assure front line success and connection 5. Deliver psychic pizza via the preferred channel 6. Sensibly create remarkable delight The Investment Funds Institute of Canada 6

7 Strategies for Cost/Effective Service Excellence 1. Understand magnitude, impact and causes of problems 2. Proactively prevent problems and unnecessary contacts 3. Equip employees to create memorable experiences 4. Create a formal or informal Chief Customer Officer 5. Create customer communities for feedback & self support The Investment Funds Institute of Canada 7

8 1. Understand the Causes and Cost of Dissatisfaction The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes* Customer expectations must be set and they must be educated on how to avoid problems and surprises. Customer Employee 20%-30% 20% - Wrong expectations - Fails -Fails to to follow follow - Customer error policy policy -Attitude At least 30% of contacts are preventable Company 40%-60% - Products and services don t meet expectations - Marketing miscommunication - Broken processes Complex processes, fine print and marketing create most unmet expectations. *Finding based upon TARP analysis problem cause data in over 200 consumer and B2B environments. The Investment Funds Institute of Canada 8

9 The Tip Of The Iceberg Phenomenon is Getting Worse Trained Hopelessness! 1%-5% Complain to Management or HQ 5-50% Complain to Front Line Rep 50-95% Encounter a Problem But Don t Complain The Investment Funds Institute of Canada 9

10 Break Down Barriers to Contacting and Hearing Hours of operation Aggressive solicitation Recognizing complaints and problems grumbles and gripes Speech recognition software Practice psychic problem recognition e.g. transfer of assets, processing errors, tax confirmations and forms The Investment Funds Institute of Canada 10

11 Quantify the Revenue Left on the Table x x x 40% Satisfied Not Repurchasing = 1,000 25% Complain 40% Mollified Not Repurchasing = 4, ,000 Customers with Problems 20% Dissatisfied Not Repurchasing = 3,000 75% Do Not Complain Not Repurchasing = 15,000 Total Accounts At Risk = 23,000 At $1,000 Gross Contribution/ Account = $23 million An FA could be worth 200 or more accounts The Investment Funds Institute of Canada 11

12 Use Quality to Justify Higher Margins Percent of customers dissatisfied with fees rises with number of problems. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 10% 22% 46% 74% No problems 1 problem 2 to 5 problems 6 problems or more The Investment Funds Institute of Canada 12

13 Identifying Points of Pain Worth Fixing Overall problem experience Problem freq % Won t recommend (45%) (%) 1 Will not 2 Relationship manager misled customer Statements are hard to read and understand Meeting commitments/follow through % Customers potentially lost Operational errors Adequate post-sale communications Operations unreturned calls Minimum customers at risk 9.4% 1 Based on multiple problem selection 2 Based on will not repurchase only The Investment Funds Institute of Canada 13

14 Quantify the Cost of Poor Internal Service x x x 66% 1 Contact $ 5 Cost to Handle = $ 33,000 20,000 Employee Problems 50% Complain 24% 2 Contacts 10% 3+Contacts $ 30 Cost to Handle $ 80 Cost to Handle = = $ 72,000 $ 80,000 50% Do Not Seek Assistance $25 Workaround = $250,000 Total Cost of Unnecessary Service = $453,000 The Investment Funds Institute of Canada 14

15 2. Proactively Prevent Problems and Unnecessary Contacts Understand the customer s style. Avis Welcome packages Education to prevent next call Note standard mistakes on forms Enhanced home page (living list of questions) and web site map (Index to products, operations and issues) Identify turnover and re-educate Lead the horse to water and give first sip Psychic Pizza - Confirm both before and after execution Progress reports on anything taking more than 24 hrs Simplify IVR The Investment Funds Institute of Canada 15

16 Get Customer to Right Place First Time: Print the Menu Where You Print the Phone Number Support Phone Matrix (800) ASK-4-WDC Press 1 for Automated Information Press 2 Faxback Literature Press 3 General Sales Information Press 4 Technical Support 20% increase in both compliance and satisfaction Press 1 Feedback Press 2 Literature Press 1 Ad Responses Press 2 Sales Information Press 1 RMA Status Press 2 Drives Press 4 Hard Drive Controllers Press 5 Video Press 3 Online Services Press 3 PCI SCSI Press 6 Other The Investment Funds Institute of Canada 16

17 3. Creating A Culture of Success and Memorable Experiences Great Pay is Nice But Less Frustration is Better Tools flexible solution spaces believable explanations supported by tools and information Proactive business development tips Creating connection ID need for training and opportunities for connection Training ongoing training and story telling Motivation celebration via victory sessions The Investment Funds Institute of Canada 17

18 Identification of Issues Requiring Improved Response Rules and Processes Problem reports % Loyal (Top 2 Box) # Contacts Routine order Transaction status Failed transaction Returned application Policy complaint Call center overall average Transaction which is biggest opportunity for improvement Misuse of resources to intensively measure this transaction The Investment Funds Institute of Canada 18

19 Estimate the Cost of Multiple Contacts Most serious problem I have to call multiple times to get something done Unable to access information about my client Other departments do not follow through on promises made Communication within the branch not effective Company policy placed above reasonable client expectations Frequency # Times per month % 3 or more contacts Cost occurrence Rough Cost Per Month $12 105k $7 11k $15 31k $7 15k $22 23k External customer impact Yes Yes Yes Some times Yes The Investment Funds Institute of Canada 19

20 4. Create Position of Chief Customer Officer Functions Oversee mapping and analysis of all customer touching processes Gather unified voice of the customer data Facilitate identification of key problems and opportunities paperwork and policy assessments Create the economic imperative for action Suggest who should take the lead in addressing the problems Measure progress Act as an advocate for customers to top management Inappropriate Roles Being responsible for the satisfaction and loyalty indices Fixing quality and service The Investment Funds Institute of Canada 20

21 5. Create Customer Communities Functions Support Education Development of new products Impacts More input and creativity Lower costs Stronger bonds with customers The Investment Funds Institute of Canada 21

22 Summary Understand problems and opportunities Prevent problems and unnecessary calls Make front line successful and memorable Use technology to proactively educate and deliver psychic pizza Consider Chief Customer Officer and communities Outlined in detail in Strategic Customer Service published by AMACOM For care package of articles, or The Investment Funds Institute of Canada 22