7 fundementals of a success ce program final

The 7 Fundamentals of a
Successful Customer
Experience Program
Beyond Philosophy

Speaker Panel
:
Colin Shaw, Founder & CEO
Zhecho Dobrev, Consultant

Beyond Philosophy © 2001 - 2012
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www.beyondphilosophy.com 1

1. Viewer Window 2. Control Panel

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Who are Beyond Philosophy?

We are pioneers in the We work in many countries Thought leadership is our
Customer Experience is all
Customer Experience across several continents differentiator. We have literally written
we do!
space. the books on Customer Experience.

We put emphasis on the We maintain links with Evidence based consulting -
emotional side of customer academia to keep us aligned we look for what really drives
experience with the latest breakthroughs business value

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Some of our clients…

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Bloomberg confirmation…

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Increase in Net promoter Score: “As a result of its customer
experience efforts, NPS has improved from -10 to +30”
Increases shipping volume. “Maersk correlated a 4 point
increase in Net Promoter Scores with a 1% increase in
additional volume shipped by customers”.
Training improves Net Promoter Scores in local regions.
“Maersk gave regional divisions the option of putting regional
customer experience councils in place. The 55 regions that have
set up local councils also received a three-day training course in
customer experience improvement methods. The firm then did a
study comparing regions with and without a council. The result:
participating local offices score 10 points higher on their NPS
than those offices that opted out”.

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Seven fundamentals of a successful Customer Experience
program…

1. Define the Customer Experience you are trying to deliver

2. Plan to engage the senior execs and employees

3. Embrace Customer emotions and experience psychology

Customer
4. Identify what drives & destroys value in your experience
Centric

5. Design a deliberate Customer Experience

6. Establishing effective governance

7. Implement new measures & remunerate against them

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Best Practice:
40 percentage points increase in Net Promoter Score

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program…




Customer
Centric




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Senior management engagement

Realise that they don’t know
what they are talking about!

Be opportunistic

You need to gain their respect -
Don’t be a ‘yes’ person.

Be enthusiastic!

Show me the money!

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Investing in Customer Experience pays off dividends…
Literally!

Source: http://cfigroup.com/downloads/Customer_Satisfaction_and_Stock_Returns_CFI_Group.pdf

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C-level Executives Need to Embrace the Customer
Experience

Investors hate risk
• strong customer retention =
less risk

Good CE generates superior
returns
• Customer satisfaction is critical
for repeat business
• Repeat business is usually
very profitable
• …as long as their loyalty
comes from their satisfaction
and not because prices are low

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Employee engagement

Communications

Training

Customer Experience team

Engagement in experience
design

Ideation

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program…




Customer
Centric




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Human being We see things
We act:
are made up in and things are
We feel things Can be seen
a certain way done to us:
Emotions as rational
Experience Conscious &
behaviour
Psychology subconscious

Experience Psychology Conscious: Recommends Customers do things
Emotional Profile
Nature: The need to feel safe options for me to keep the • Customers complain as
– Maslow and Insurance cost of my product plan they can’t understand
Nurture: You should within my budget why they have brought
have insurance Subconscious: Listens to one product but you treat
me and acknowledges my as 5 separate products
concerns • Recommend you to
others
• Put phone down when
waiting for you to answer

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A Customer Experience is made up of all these
aspects…

Experience

Rational

Experience
Psychology

Emotional

Conscious

Sub
conscious

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Most organization are one dimensional

Experience
Experience

Rational
Rational
Experience
Psychology Experience
Psychology
Emotional
Emotional
Conscio
us Conscio
us
Sub
consci Sub
ous consci
ous

Most journey mapping tools just look Beyond Philosophy looks
at the rational experience and miss the at all these aspects
underlying cause of an experience

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How do we know which emotions drive business
value?

2 years of baseline research with London
Business School ( 2005 – 2006) identified
20 emotions clustered into 4 hidden
factors and that drive/ destroy value for
business.

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Credit card company example…

1 Getting a Card 2 Using my Card 3 Servicing my Account

4 Extending my Relationship 5 Having Financial Difficulty 6 Ending my Relationship

19

program…




Customer
Centric




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Organizations are obsessed with fixing the basics
Question: Which of the
following elements describe Fixing the Basics
best the CE you are trying to
deliver?
67%
Source: Beyond Philosophy
original research ‘Seven key
ingredients for a successful
Customer Experience program
in Telecoms”, 2012

33%
27%

8% 8% 8%

Simplicity Friendliness Delight/Wow Total Quality Positive Efficiency
Emotions

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Priority Order of the Attributes
(Combined desirability and current value) Desired by Customer Effect on Value
Top Ten

- 0 Relative Magnitude +
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Yet, are businesses operationalizing emotions?
Do you use customer journey Have you defined what emotions
maps within your company? to evoke at certain customer
touch points?
85%

70%

30%

15%

Yes No Yes No
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Cognitive
Dissonance

Negative Emotion Points
Getting the card Evaluation of offer No
Recommended by a •Web search Still Exit
Application Wait for confirmation interested?
Awareness friend/ direct mail •Conversation with the
agent
Getting the card Yes Cognitive
Cross sold by an agent Dissonance
Yes Yes

Yes Fill in enrollment forms Do you need
Are you Are you No
or call Company your DD and Did you Receipt of call /
just about aware of the Receipt of
•PP supp cards miss it? e-mail
to ? waiting time? No Welcome pack
•Benefit 2 Partners transferred? confirmation
Peak End •Direct Debit Prospect
No
Rule Theory
Yes No

Is it all clear Call to authorise
Chase: Receive to you i.e. Yes Call to book /
Receive someone to act
• Benefit 1 Wait Benefit 1 & DD set up tickets
Statement on my behalf
• Benefit 2 Benefit 2 Cards etc?

No

Call XXX to check Call Benefit 1 to ask Receive DD Download 3rd
Call to chase the 2nd call to chase PA to call to
status of Benefit 1 about membership cancellation party
DD the DD book on CM’s
card number letter authorisation
behalf
form online

Wait 10 days for Fill in & Acct 2nd call to
2nd Call to XXX to Send signed Apply for a
Call Benefit 1 to Receipt of a response from Disclosure & authorise
check status of PP form via post or supplementary
check status of card Supp card XXX via the Authorisation someone to act
card fax card online
post form on my behalf

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Who owns the Customer Experience?

CEO
(President)

Independent Cross-
Marketing Operations Customer Service Sales
Functional CE Unit

Mature
Customer Customer Customer Customer approach
Experience Experience Experience Experience

Majority 2nd option 2nd option Minority

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Five Stages of
Organizational Customer Experience Journey
Natural Stage
No need for Chief Customer Officer and control over departments

Enlightened Stage
• Chief Customer Officer • Inputs into Operational Budgets
• Authority over other departments • Sets the customer measures and is
• HR responsible for achievement cross-functionally:
• Ops • Sets the cultural framework

High End Transactional Stage
• Equal authority to any of the • CE people introduced earlier on in the process
functional groups - two gate entries e.g. in the design phase and
• Decisions have to be signed by later on in the final testing phase
the CE member • Meet the board twice a month
• Veto rights • Appointments to talk to the CEO

Low End Transactional Stage
• Responsible for: • However:
• customer measures • Dispose of limited budget
• Prioritise initiatives • No authority to:
• Facilitate changes • affect change in other departments

Authority
• Consult other department • access budgets in other departments

Naïve Stage
• Study Customer Expectations • Identify Problems
• Analyse Cust. Feedback • Findings passed up the chain for others to act

Responsibility
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Naive to Natural
Sub-
conscious
Unconscious
Competence

Conscious Competence

Conscious Incompetence

Unconscious
Incompetence

33

Thank you!
Colin Shaw
Founder & CEO
@ColinShaw_CX
Zhecho Dobrev
Consultant
@ZhechoDobrev

www.beyondphilosophy.com

7 fundementals of a success ce program final

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