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Focussing
on
how to
Challenges to
a dive into

greg Stewart
SMS Management & Technology
www.smsmt.com
@clarityrules
1
questions
A CX LEADER’S CHALLENGE
and
to

try and make a difference?
If I do, will it be
there’s a lot of talk, but

it’s hard to
it’s hard to know
it’s hard to
At the end of this, you will

Forrester’s six:

1. Customer Understanding – who they are, what they need, how they perceive
Understand what we mean by
their interactions
‘customer experience’ and how to
2. Measurement – track experience quality, best using customers’ perceptions
look at your created CX your
3. Governance – Citi businessafrom steering group. Keep bad experiences getting
out thecustomers’ perspective
door. (thresholds with teeth, include ‘experience impact’ in review boards
4. Strategic alignment – WHAT about your cx is going to be different? Like real
strategy, but at a CX level. Don’t just say ‘provide great cx’. that’s‘ like a business
strategy that says: create a great business.
5. DesignHave a list of follow a to consider in method. Agile
– co-create, things service design
6. Cultureyour business thatawill helpSTORY: Southwest Airlines dying grandson.
– CX excellence habit. you get
more customer focussed

1

2
3

Know at least one metric that lets you
link customer experience with real
business outcomes, and understand a
few capabilities that will help you take
advantage of it.
have a way to give customer experience
some ‘teeth’ in the boardroom
What is
customer experience?
“

”
Jerry Gregoire, CIO, Dell

(major Australian bank)

Good Customer Experience
does not happen by chance- it
needs to be designed

(Pine & Gilmore, HBR)
The current Australian experience..

What annoys Australians
in Australia

1. Hidden fees and costs 2. No refund/replacement for faulty
products, despite being under warranty 3. Being on hold/not
getting someone on the phone 4. Tailgating 5. No response to
written or verbal complaints 6. People talking loudly on
mobiles in an inappropriate area 7. Door-to-door
salespeople/telemarketers 8. People coughing in an enclosed
area without covering their mouth 9. Confusing
broadband/phone price plans 10. Nonchalant customer
service 11. Erroneous bills 12. Cigarette butts littering public
areas 13. Unreliable internet 14. Poor advice from financial
planners 15. Spam email 16. Late repair people 17. Noisy
neighbours 18. Long queues/checkout lines 19. Companies
only letting you pay by automatic deduction 20. Poor service
from airlines
75%

CHOICE survey, October 2010

report reveals

of the top 20 gripes resulted from poor Customer Experience
8
How do I…

Elicit
Represent
Trace
respond

9
if it’s that

to

define
let’s start by looking at customers
from our

customers’
point of
view
Customers are in a
decision lifecycle

11
The customer decision journey

12
Start from the
customer journey

13
Swimlanes on a process map

14
Put in a process flow
spot the customer’s total
experience

you can’t

15
experience

16
Experiences are made up of
Customer touch points..
Find out
about a
special
travel offer

Touchpoint: a single point of
contact or interaction
between a customer and a
supplier of products or services

Receive a
boarding
pass

Get details
of the
special offer

Check in to
the flight

Get flight
departure
information

Enter the
plane

Comment to
friends on travel
experience

Make a travel
booking to take
advantage of the
offer

Check in
luggage

Receive the
receipt &
itinerary

Receive
in flight
service

Retrieve
luggage

18
. which become experience touch lines

Receive the
receipt &
itinerary

Make a travel
booking to take
advantage of the
offer

Get flight
departure
information

Receive a
boarding
pass

Check in to
the flight

Check in
luggage

Receive
in flight
service

Enter the
plane

Comment to
friends on travel
experience

Retrieve
luggage

Finish

Start
Find out
about a
special
travel offer

Get details
of the
special offer

19
DIGITAL

PHYSICAL

Comment to friends
on travel experience

Retrieve luggage

Receive in flight
service

Enter the plane

Get flight departure
information

Check in luggage

Receive a
boarding pass

Check in to the
flight

Receive the
receipt & itinerary

Make a travel
booking

Get the details of
the special offer

Find out about a
special offer

Experiences are multi-channel

Call centre

Airport
counter

Airport signage

Airport gate

Airport
luggage

In flight

Email

Web site

Mobile

Social media

20
The

accidental concatenation
of all of the silos’ best efforts
Tracing touchlines
Instead, use
journey maps

23
Focus on customer experience   the journey not the destination
Focus on customer experience   the journey not the destination
Focus on customer experience   the journey not the destination
College e-Enabled Field Trip Experience Map
Guiding Principles
RIGHT VISION

RIGHT INVESTMENT

RIGHT INFORMATION

RIGHT OUTCOMES

RIGHT INTEGRATION

Customer Journey
STAGES

Trip Initiation

Obtain approval

ACTIVITIES

Enrolment

Schedule resources

Submit internal
trip request form

View itinerary

Give permission

Finalise Trip

Organise payment

Receive trip
details

Organise volunteers,
buses, etc.

Consolidate responses

Post-Trip

Trip

Schedule resources

Participate

Gather feedback

Share experience

Receive
confirmation
Monitor
responses

Share photos
Sarah
(Student)

Get
trip
ratings

Trip
occurs

DOING
Mr & Mrs
Lincoln
(Parents)

Mr. Smith
(History
Teacher)

View trip
itinerary

Make payment

Mr. Smith
(History
Teacher)

Mr. Smith
(History
Teacher)
Answer
questions

Submit permission slips
Notify parents

For unexpected
changes

For queries / difficulties encountered
Confirm
arrangements

Receive trip
approval

Discuss
experience
Mr & Mrs
Lincoln
(Parents)

THINKING

FEELING

•
•
•

Where should I organise the trip?
When is a good time to go?
What processes do I need to follow?

•
•
•
•

Do we have enough information about this trip?
How much will this cost?
Who else is going?
Can we pay online?

•

I need to have an up-to-date view of the responses to
help me finalise arrangements
What do I do if there is not enough responses?

•
•

I need to know if the students enjoyed themselves
Next time, I will need to plan more carefully

•

•
•

I’m excited about this trip!
I’m worried it won’t get approval from the Principal

•

Happy that Wesley College allowed us to nominate the preferred
communications channel
Wish we are able to see other parents’ responses

•
•

Stressed that this is taking longer than expected
Worried about getting things wrong

•

Excited to share photos with students and parents

•

Opportunities
Go paperless &
move towards
online processes

Adopt automated
workflow where
possible

Introduce “cloud”
spaces for remote
collaboration

Develop web forms,
portals, and apps

Build platforms to
push notifications to
SMSs & emails

Build-in intelligence
to merge & report
information from
disparate sources

Encourage sharing
& participations
through online
communities

Allow knowledge
re-use and
discovery

SMS Services
Customer Experience Improvement

Business Case

Business Performance Improvement (BPI)

Transformation
Business Intelligence

System Architecture

Workflow Automation

Information & Data Management (IDM)
Systems Integration (SI)

Social Media Integration

Program & Project Services (PPS)

Project Management
Continuous, non linear

Linear Processes

Non linear, but time based
Pinterest
Google Images
Not an exact science
tasks / activities / ‘moments of truth’

channels
Staff involved
Business process involved
systems involved
data involved
expectations / targets
…a
The currency you’re
trading in is emotion

31
the first thing we ask is
what do we want people to feel?
then we craft around that intention

32
Experiences are emotional- Journey 1
1. My wireless broadband modem has intermittent problems. I try to get help from the telco which supplied it

“A sub-optimal
experience”

33
Experiences are emotional- Journey 2
2. I want to buy some new music online. I have an idea of what I want, but haven’t completely decided

“A near-optimal
experience”

34
Experience is part of
a bigger lifecycle

35
Experiences have a life cycle
The organisational experience lifecycle
Brand identity building

Issues resolution

Demand stimulation

Feedback management

Expectation setting

Satisfaction monitoring

Calls to action

Sentiment monitoring

Before

Acquire and consume

After

Improvement loop

36
Experiences have a life cycle
The Customer Decision Journey
Brand identity building

Issues resolution

Demand stimulation

Feedback management

Expectation setting

Satisfaction monitoring

Calls to action

Sentiment monitoring

Before

Want

Consider

Acquire and consume

Evaluate

Buy

Experience

After

Advocate

Bond

37
The emotional
aggregate effect of
many experiences

38
The secret is

orchestration
each stage
Don’t make me say..
the way your
customers measure you

call centre kpis By persona
lending retreat borrowing retreat
What do I have
to think about to
do this stuff
FIVE CATEGORIES OF
CHALLENGE

above the line

Customer
Insights

Customer
analytics
Customer
(Identity, CRM, Predictive Analytics)
(Net Promoter System)

Customer
acquisition

improvement
Implementation
Campaign Management –
Best Practice

Customer
experience

Customer
Customer
experience
solutions

below the line

people
organisation
infrastructure
operations

, NBO

Customer centric
Creating a

Customer-centric
- related Systems Integration
Culture

southwest airlines
customer insights

Let’s talk
Customer Experience Improvement
Framework

46
A CX LEADER’S CHALLENGE
and
to

try and make a difference?
If I do, will it be
CFO

They count

. They want

.
Trip

Fall
Crystal

Ball
:
Customer’s Point of View

top process owners
entity identification
customer journey mapping
Customer decision journey
Social media monitoring
Chief Customer Officer
Customer satisfaction
anAlytics activities
Measuring

Tick

Generating
showing
Tick
performance and
stats by
business unit/product
etc…
oh dear…
a little knowledge is a
dangerous thing

good idea,
bad execution
all the kit, but
still pretty s#&t
some
Q

Why

Answers not
A
correlated with
business improvement
customer

delighting
exceeding expectations
Excellence
Recall
Question: Strong correlation to
growth?

4%

Source: Satmetrix: The Power behind a single number,
chasing
funding
something
Better
Question
A CX LEADER’S CHALLENGE
and
to

try and make a difference?
If I do, will it be
Net
Promoter
Score
The high priest of Loyalty research
Net Promoter Score

Probably the most
Open Source

measure of customer intention
Simple

Surprisingly Robust
and versatile
Legitimising investment in
customer experience
Question: Strong correlation to
growth?

80% 4%

Source: Satmetrix: The Power behind a single number,
what’s it

what’s the
from a

of loyalty?
to a
?
by 10 points?
Value

1.

estimate the
of the
average customer in each segment

2.

Look at the
between

3.

Hypotheses – find
in your
experience design that affect NPS
Work on those

4.

,

and
NPS Gives TEETH to customer
metrics

1.0

Detractor

Neutral

Promoter
NPS Gives TEETH to customer
metrics

1.0

1.0

Detractor

Neutral

1.0

Promoter
NPS Gives TEETH to customer
metrics

wallet share
1.0

1.0

Detractor

Neutral

1.0

Promoter
NPS Gives TEETH to customer
metrics

retention
wallet share
1.0

1.0

Detractor

Neutral

1.0

Promoter
NPS Gives TEETH to customer
metrics

referrals

retention
wallet share
1.0

1.0

Detractor

Neutral

1.0

Promoter
NPS Gives TEETH to customer
metrics

referrals

retention
wallet share
1.0

1.0

1.0

wallet share
cost to serve
bad-mouthing
Detractor

Neutral

Promoter
Your industry’s & YOURS
referrals

cost to serve

wallet share

1.0
wallet share
cost to serve
bad-mouthing

1.0

1.0

7.6x
NPS Gives TEETH to customer metrics

1.9
1.0

0.65
Use NPS to prototype service

it creates a
for leaders
Summary
Forrester’s six:
1. Customer Understanding – who they are, what they need, how they perceive
Customer journey
their interactions
Design – track experience quality, best
2. Measurementfrom customers’ perspective using customers’ perceptions
3. Governance – Citi created a CX steering group. Keep bad experiences getting
Emotion
out the door. (thresholds with teeth, include ‘experience impact’ in review boards
4. Strategic alignment – WHAT about your cx is going to be different? Like real
strategy, but at a Insights Don’t just say ‘provide great cx’. that’s‘ like a business
Customer CX level.
strategy that says: create a great business.
Customer Acquisition
5. Design – co-create, follow a service design method. Agile
Customer Experience
6. Culture – CX excellence a habit. STORY: Southwest Airlines dying grandson.
People & Organisation
Infrastructure & Operations

1
2
3

Link your metric with Business
Outcomes
Net Promoter Score
thank you
greg Stewart
SMS Management & Technology
www.smsmt.com
greg.stewart@smsmt.com
@clarityrules

80

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Focus on customer experience the journey not the destination

  • 1. Focussing on how to Challenges to a dive into greg Stewart SMS Management & Technology www.smsmt.com @clarityrules 1
  • 3. A CX LEADER’S CHALLENGE and to try and make a difference? If I do, will it be
  • 4. there’s a lot of talk, but it’s hard to it’s hard to know it’s hard to
  • 5. At the end of this, you will Forrester’s six: 1. Customer Understanding – who they are, what they need, how they perceive Understand what we mean by their interactions ‘customer experience’ and how to 2. Measurement – track experience quality, best using customers’ perceptions look at your created CX your 3. Governance – Citi businessafrom steering group. Keep bad experiences getting out thecustomers’ perspective door. (thresholds with teeth, include ‘experience impact’ in review boards 4. Strategic alignment – WHAT about your cx is going to be different? Like real strategy, but at a CX level. Don’t just say ‘provide great cx’. that’s‘ like a business strategy that says: create a great business. 5. DesignHave a list of follow a to consider in method. Agile – co-create, things service design 6. Cultureyour business thatawill helpSTORY: Southwest Airlines dying grandson. – CX excellence habit. you get more customer focussed 1 2 3 Know at least one metric that lets you link customer experience with real business outcomes, and understand a few capabilities that will help you take advantage of it. have a way to give customer experience some ‘teeth’ in the boardroom
  • 7. “ ” Jerry Gregoire, CIO, Dell (major Australian bank) Good Customer Experience does not happen by chance- it needs to be designed (Pine & Gilmore, HBR)
  • 8. The current Australian experience.. What annoys Australians in Australia 1. Hidden fees and costs 2. No refund/replacement for faulty products, despite being under warranty 3. Being on hold/not getting someone on the phone 4. Tailgating 5. No response to written or verbal complaints 6. People talking loudly on mobiles in an inappropriate area 7. Door-to-door salespeople/telemarketers 8. People coughing in an enclosed area without covering their mouth 9. Confusing broadband/phone price plans 10. Nonchalant customer service 11. Erroneous bills 12. Cigarette butts littering public areas 13. Unreliable internet 14. Poor advice from financial planners 15. Spam email 16. Late repair people 17. Noisy neighbours 18. Long queues/checkout lines 19. Companies only letting you pay by automatic deduction 20. Poor service from airlines 75% CHOICE survey, October 2010 report reveals of the top 20 gripes resulted from poor Customer Experience 8
  • 10. if it’s that to define let’s start by looking at customers from our customers’ point of view
  • 11. Customers are in a decision lifecycle 11
  • 12. The customer decision journey 12
  • 14. Swimlanes on a process map 14
  • 15. Put in a process flow spot the customer’s total experience you can’t 15
  • 18. Customer touch points.. Find out about a special travel offer Touchpoint: a single point of contact or interaction between a customer and a supplier of products or services Receive a boarding pass Get details of the special offer Check in to the flight Get flight departure information Enter the plane Comment to friends on travel experience Make a travel booking to take advantage of the offer Check in luggage Receive the receipt & itinerary Receive in flight service Retrieve luggage 18
  • 19. . which become experience touch lines Receive the receipt & itinerary Make a travel booking to take advantage of the offer Get flight departure information Receive a boarding pass Check in to the flight Check in luggage Receive in flight service Enter the plane Comment to friends on travel experience Retrieve luggage Finish Start Find out about a special travel offer Get details of the special offer 19
  • 20. DIGITAL PHYSICAL Comment to friends on travel experience Retrieve luggage Receive in flight service Enter the plane Get flight departure information Check in luggage Receive a boarding pass Check in to the flight Receive the receipt & itinerary Make a travel booking Get the details of the special offer Find out about a special offer Experiences are multi-channel Call centre Airport counter Airport signage Airport gate Airport luggage In flight Email Web site Mobile Social media 20
  • 21. The accidental concatenation of all of the silos’ best efforts
  • 27. College e-Enabled Field Trip Experience Map Guiding Principles RIGHT VISION RIGHT INVESTMENT RIGHT INFORMATION RIGHT OUTCOMES RIGHT INTEGRATION Customer Journey STAGES Trip Initiation Obtain approval ACTIVITIES Enrolment Schedule resources Submit internal trip request form View itinerary Give permission Finalise Trip Organise payment Receive trip details Organise volunteers, buses, etc. Consolidate responses Post-Trip Trip Schedule resources Participate Gather feedback Share experience Receive confirmation Monitor responses Share photos Sarah (Student) Get trip ratings Trip occurs DOING Mr & Mrs Lincoln (Parents) Mr. Smith (History Teacher) View trip itinerary Make payment Mr. Smith (History Teacher) Mr. Smith (History Teacher) Answer questions Submit permission slips Notify parents For unexpected changes For queries / difficulties encountered Confirm arrangements Receive trip approval Discuss experience Mr & Mrs Lincoln (Parents) THINKING FEELING • • • Where should I organise the trip? When is a good time to go? What processes do I need to follow? • • • • Do we have enough information about this trip? How much will this cost? Who else is going? Can we pay online? • I need to have an up-to-date view of the responses to help me finalise arrangements What do I do if there is not enough responses? • • I need to know if the students enjoyed themselves Next time, I will need to plan more carefully • • • I’m excited about this trip! I’m worried it won’t get approval from the Principal • Happy that Wesley College allowed us to nominate the preferred communications channel Wish we are able to see other parents’ responses • • Stressed that this is taking longer than expected Worried about getting things wrong • Excited to share photos with students and parents • Opportunities Go paperless & move towards online processes Adopt automated workflow where possible Introduce “cloud” spaces for remote collaboration Develop web forms, portals, and apps Build platforms to push notifications to SMSs & emails Build-in intelligence to merge & report information from disparate sources Encourage sharing & participations through online communities Allow knowledge re-use and discovery SMS Services Customer Experience Improvement Business Case Business Performance Improvement (BPI) Transformation Business Intelligence System Architecture Workflow Automation Information & Data Management (IDM) Systems Integration (SI) Social Media Integration Program & Project Services (PPS) Project Management Continuous, non linear Linear Processes Non linear, but time based
  • 30. Not an exact science tasks / activities / ‘moments of truth’ channels Staff involved Business process involved systems involved data involved expectations / targets …a
  • 31. The currency you’re trading in is emotion 31
  • 32. the first thing we ask is what do we want people to feel? then we craft around that intention 32
  • 33. Experiences are emotional- Journey 1 1. My wireless broadband modem has intermittent problems. I try to get help from the telco which supplied it “A sub-optimal experience” 33
  • 34. Experiences are emotional- Journey 2 2. I want to buy some new music online. I have an idea of what I want, but haven’t completely decided “A near-optimal experience” 34
  • 35. Experience is part of a bigger lifecycle 35
  • 36. Experiences have a life cycle The organisational experience lifecycle Brand identity building Issues resolution Demand stimulation Feedback management Expectation setting Satisfaction monitoring Calls to action Sentiment monitoring Before Acquire and consume After Improvement loop 36
  • 37. Experiences have a life cycle The Customer Decision Journey Brand identity building Issues resolution Demand stimulation Feedback management Expectation setting Satisfaction monitoring Calls to action Sentiment monitoring Before Want Consider Acquire and consume Evaluate Buy Experience After Advocate Bond 37
  • 38. The emotional aggregate effect of many experiences 38
  • 41. the way your customers measure you call centre kpis By persona lending retreat borrowing retreat
  • 42. What do I have to think about to do this stuff
  • 43. FIVE CATEGORIES OF CHALLENGE above the line Customer Insights Customer analytics Customer (Identity, CRM, Predictive Analytics) (Net Promoter System) Customer acquisition improvement Implementation Campaign Management – Best Practice Customer experience Customer Customer experience solutions below the line people organisation infrastructure operations , NBO Customer centric Creating a Customer-centric - related Systems Integration
  • 47. A CX LEADER’S CHALLENGE and to try and make a difference? If I do, will it be
  • 50. : Customer’s Point of View top process owners entity identification customer journey mapping Customer decision journey Social media monitoring Chief Customer Officer Customer satisfaction
  • 52. oh dear… a little knowledge is a dangerous thing good idea, bad execution all the kit, but still pretty s#&t
  • 53. some
  • 57. Question: Strong correlation to growth? 4% Source: Satmetrix: The Power behind a single number,
  • 62. A CX LEADER’S CHALLENGE and to try and make a difference? If I do, will it be
  • 64. The high priest of Loyalty research
  • 65. Net Promoter Score Probably the most Open Source measure of customer intention Simple Surprisingly Robust and versatile
  • 67. Question: Strong correlation to growth? 80% 4% Source: Satmetrix: The Power behind a single number,
  • 68. what’s it what’s the from a of loyalty? to a ? by 10 points?
  • 69. Value 1. estimate the of the average customer in each segment 2. Look at the between 3. Hypotheses – find in your experience design that affect NPS Work on those 4. , and
  • 70. NPS Gives TEETH to customer metrics 1.0 Detractor Neutral Promoter
  • 71. NPS Gives TEETH to customer metrics 1.0 1.0 Detractor Neutral 1.0 Promoter
  • 72. NPS Gives TEETH to customer metrics wallet share 1.0 1.0 Detractor Neutral 1.0 Promoter
  • 73. NPS Gives TEETH to customer metrics retention wallet share 1.0 1.0 Detractor Neutral 1.0 Promoter
  • 74. NPS Gives TEETH to customer metrics referrals retention wallet share 1.0 1.0 Detractor Neutral 1.0 Promoter
  • 75. NPS Gives TEETH to customer metrics referrals retention wallet share 1.0 1.0 1.0 wallet share cost to serve bad-mouthing Detractor Neutral Promoter
  • 76. Your industry’s & YOURS referrals cost to serve wallet share 1.0 wallet share cost to serve bad-mouthing 1.0 1.0 7.6x
  • 77. NPS Gives TEETH to customer metrics 1.9 1.0 0.65
  • 78. Use NPS to prototype service it creates a for leaders
  • 79. Summary Forrester’s six: 1. Customer Understanding – who they are, what they need, how they perceive Customer journey their interactions Design – track experience quality, best 2. Measurementfrom customers’ perspective using customers’ perceptions 3. Governance – Citi created a CX steering group. Keep bad experiences getting Emotion out the door. (thresholds with teeth, include ‘experience impact’ in review boards 4. Strategic alignment – WHAT about your cx is going to be different? Like real strategy, but at a Insights Don’t just say ‘provide great cx’. that’s‘ like a business Customer CX level. strategy that says: create a great business. Customer Acquisition 5. Design – co-create, follow a service design method. Agile Customer Experience 6. Culture – CX excellence a habit. STORY: Southwest Airlines dying grandson. People & Organisation Infrastructure & Operations 1 2 3 Link your metric with Business Outcomes Net Promoter Score
  • 80. thank you greg Stewart SMS Management & Technology www.smsmt.com greg.stewart@smsmt.com @clarityrules 80