Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Ähnlich wie Harris Interactive Src Risk, Churn, Win Back Workshop
Ähnlich wie Harris Interactive Src Risk, Churn, Win Back Workshop (20)
Mehr von Michael Lowenstein
Mehr von Michael Lowenstein (20)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Harris Interactive Src Risk, Churn, Win Back Workshop
- 1. Customer Risk, Churn, and Successful WinBack Michael Lowenstein, PhD CMC Senior Vice President and Senior Consultant Stakeholder Relationship Consulting CoE © Harris Interactive
- 2. The Business Issue © Harris Interactive
- 3. Organizations Today Are Facing Rapidly Changing Market Dynamics Deteriorating global economic conditions Commodity markets with comparable products, pricing and services Fierce competition pressures both globally and locally © Harris Interactive Quick dissemination of information, new social and digital networks Significant shift in public and government view of corporations Consequently, key stakeholders to any organization are becoming more empowered, more sophisticated, and growing in number
- 4. “ Successful companies are those where the brand promise is matched by the stakeholders’ experience”
- 7. Identifying the customer “line of sight”… … and linking strategic value delivery planning with implementation
- 8. Seven S Customer-Focused Direction Structure Systems Strategy Style Shared Values Skills Staff
- 10. Are Companies Paying Attention? Do you conduct defection interviews among lost customers ? B-to-B, Sales/Marketing Managers and Purchasing Agents* Do you know how many customers you lose per year? “ No” 48% 30% 20% MARKETING MANAGERS SALES MANAGERS 40% 60% 80% 100% 0% “ No” 47% 43% 20% MARKETING MANAGERS SALES MANAGERS 40% 60% 80% 100% 0% * from Customer WinBack , Jill Griffin and Michael Lowenstein
- 12. Perceptual Gap Profile Purchasing Agents vs. Sales Mgmt vs. Marketing Mgmt * Based on % high (5) performance ratings on a 5-point scale 1. Consistent product/service quality 2. On-time performance/delivery 3. Knowledge of needs & requirements 4. Proactive communication 5. Speed of follow-up: requests/inquiries 6. Accurate billing 7. Competitive pricing 8. Quick, responsive problem solving 9. Accessibility of supplier contact/service staff 10. Attention to details 11. Rapport/relationship with supplier 12. Knowledge/expertise of supplier contact staff 13. Value-added service support 14. Ability to anticipate your needs 15. Dependability of supplier contact staff 16. Flexibility and adaptability of supplier 17. Availability of multiple communication channels with supplier 18. Availability of multiple purchase channels PURCHASING AGENTS SALES MANAGEMENT MARKETING MGMNT 0% 10% 20% 30% 40% 50% 60% 70% High Performance*
- 15. Our Clients’ Questions….. What are stakeholders’ relationship needs? How well do we and our competitors meet them? How well are we delivering on customer needs and touchpoint experiences? Are our employees committed to the organization and are they managed to deliver the desired customer experiences? How can we prevent customers from churning? If they leave, how do we win them back? What experiences do customers require at each service touchpoint?
- 16. … ..Matched by Our Service Offerings Linking to Financial & Process Impact Customer Experience Monitoring Employee Commitment & Ambassadorship Churn & Winback Touchpoint Experience Design Stakeholder Relationship Assessment
- 17. Risk, Churn & WinBack Overview © Harris Interactive
- 18. Our Service Offerings Identifies which customers are leaving and why, who is at risk and develops proactive strategies to avert churn and offers to winback churned customers Churn & Winback
- 19. How to identify the high percentage of their customers who are at risk and may defect
- 23. Kano Model Effects of Experience on Potential Influence and Advocacy DELIGHT NEUTRAL DISSATISFACTION Customer Satisfaction Characteristic Presence Absent Fulfilled Performance – More Is Better Basic “Musts” Unknown Needs – Delighters
- 24. Complaint Inventory: Iceberg in a Reservoir Model POTENTIALLY EXPRESSED UNEXPRESSED COMPLAINTS EXPRESSED EXPRESSED
- 25. One Company’s Complaint Findings Major Midwest Bank Corporation
- 31. The Challenge “ Good Research, Poor Actionability” © Harris Interactive
- 32. Beyond the Data Turning Research Results and Business Insights into Action © Harris Interactive A key component of each Churn & Winback engagement is not only to provide research findings and business insights, but to help drive the learning through the client organization to help them act and capitalize on this knowledge. Linking stakeholder experiences to their requirements to optimize stakeholder commitment usually requires direct intervention strategies and tactics with customers and/or process changes. We go beyond the guidance provided by the research to show our clients how to use this knowledge. We have a portfolio of ways to accomplish this.
- 34. Case Study © Harris Interactive
- 35. As a result of this engagement, they were shown what immediate steps they need to take to reduce poor customer service experiences such as reducing hold time, reducing transfers, reducing the number of times customers call back, and clarifying which employees “own” problems. They also were shown how a system for automatically escalating problems that do not get solved would lessen churn. This phone carrier had long understood, at a high level, the main drivers of Local Telephone service churn. Their knowledge of this problem was based on a predictive model they developed that identifies event-related factors that lead to Customer Churn. Nevertheless, they had found some gaps in their understanding of Churn. Specifically they needed to understand these reasons at a deeper level. They needed an understanding of the attitudinal factors that contribute to churn. Turning to Harris for help, 600 interviews with current and churned customers were done focusing on reasons for dropping service(s), importance of key carrier attributes, likelihood of returning to the client company, what, if anything, our client could do to win their business back, word-of-mouth behaviors. The research revealed the following combination of negative customer experiences that undermined their customer relationships: While non-competitive prices are the major reason customers leave, it is poor service that keeps them away. Among Churned customers who left mostly or solely because of price, they will reconsider our client. However, Churned customers who had poor service experiences, and particularly those who felt our client violated their trust or made them feel unimportant, are far less likely to reconsider this carrier. Business Issue: Stop Customer Churn
- 38. Win-Back Pays Source: Customer Marketing Research Study Probability of a Successful Sale NEW PROSPECT EXISTING CUSTOMER LAPSED CUSTOMER 5 - 20% 60 - 70% 20 - 40%
- 39. Win-Back Pays: Documented Example Doubleday Direct EXTERNAL LIST/NEW CUSTOMERS EXPIRED MEMBERS $13 $60 23% 214% Net Per Order Net R.O.I . Mailing
- 41. Target the right former customers for WinBack
- 42. “ I have a phone line downstairs in my home that I use for occasional business purposes. Never a long distance call. And about every six months, I get an offer I can’t refuse and I switch the thing from one long distance carrier to another .” Source: Customer Winback by Griffin and Lowenstein “ Why would they even want me?”
- 43. High Future Value of Recovered Customer The value of the relationship once the customer is regained. Second Lifetime Value (SLTV)
- 44. Second Lifetime Value Calculation Orders per year x Average order = Base revenue Cross-sell $ + Information value $ = Total Revenue Costs (direct, Win-Back, retention) = Gross Profit ADD MINUS
- 46. Lost customer recovery programs
- 47. Measure Understand Evaluate Refine Your Win-Back Program
- 53. Put successful stabilization programs into place: Manage touch points and experience
- 55. © Harris Interactive Contact Information Michael Lowenstein, PhD CMC Senior Vice President and Senior Consultant Stakeholder Relationship Consulting Harris Interactive Princeton, NJ USA 609 919-2524 or 856 283-1182 [email_address]
Hinweis der Redaktion
- Introduction: In this training session I am going to talk to you about SRC’s Customer Churn & Winback solution—1) what is the business issue it addresses, 2) our conceptual POV, 3) a description of the solution, 4) at a high level how we execute it, and 5) examples of the deliverables and follow up consulting services. In so doing, I’m going to discuss how to talk and sell this solution to clients. Let’s start with who is the client for this solution? It is every client. At some point in the customer lifecycle some percentage of customers are going to leave for a variety of reasons. This is not something that any organization can ignore, because the organization’s reputation and financial well-being are at risk. In terms of differentiation, this is not a business issue that has any one common solution like we have with measuring loyalty or tracking how well an organization is meeting customers’ expectations. I believe we have some fairly good analytical approaches that provide the basis to say that we have a very robust, actionable offer. Let’s begin.
- In these first series of slides we want to set the context for our solution. We want to set up the foundation for our proposition by telling them what is the marketplace environment and business issue about which they need to be concerned and for which our product is the answer. In short, this is where we tell them why they absolutely need our solution.
- To begin, it is no longer business as usual. Bad economy businesses and people’s pocket books are shrinking. Every dollar spent has to be justified Word-of-mouth phenomena mean that organizations no longer control the conversations in the marketplace about them. Stakeholders do. Everything is starting to look the same. The playing field has expanded to be global. There is always someone else out there who will build a better mouse trap and sell it for less. We have become far more cynical and less civil in our views. Stakeholders Pop-Up What this means that stakeholders are more empowered and more sophisticated than ever.
- We have seen this slide before. When a company’s brand promise matches an individual’s or business’ needs/wants/values, that is the extent to which that individual or business will be attracted. However, should their experiences with that organization fail to live up to the brand promise and, therefore, fail to meet the customer’s expectations, that is the extent to which that customer is at-risk and will leave. Given this background; this situation, our Churn & Winback product is one of our solutions to enable organizations to address this situation.
- The problem is that organizations ultimately execute poorly against some or all of their stakeholders’ expectations, starting with the very fundamental problem of not knowing what stakeholders expect in the first place. Earlier we talked about how our Touchpoint Experience Design solution addresses this specific issue. The success of executing stakeholder experiences is contingent on linking strategy, staff and operations; all of which must be synchronized with each other and should be continually informed by stakeholder input and feedback. At some point in the customer’s lifecycle with any brand or company, the relationship will sour. And when that happens, we have Customer Churn.
- Paraphrase bullets
- This is some figures from research conducted by Jill Griffith. Jill is an expert on Customer Churn and winback and has collaborated on books and articles with our Michael Lowenstein. Paraphrase bullets. There is a risk for not being more attentive to this issue as we will see next.
- Paraphrase bullets.
- In the realm of managing Stakeholder relationships there are 5 basic questions that our clients face. READ THROUGH EACH.
- For each of these 5 questions we have a unique, highly competitive offering.
- Let’s now look at the Churn & Winback solution—what it is, how we do it, what we give to clients and how we can support them following the survey.
- READ THE DEFINITION. Here we want to stress a few points: The actionability of the offer The fact that we can capture some of the nuances of defection. For example, we do not simply list the reasons, but can show what combination of negative experiences can adversely impact customer loyalty. We also can help our client design strategies to winback lost customers.
- Paraphrase bullets. We want to stress the fact that we have a 360 degree perspective on the issue. Not only do we want to hear from customers, but we also want to hear form internal stakeholders on why they think customers are leaving. And, as in our other solutions, we can go beyond the research and help drive the learning through the client organization.
- Sampling It is important that we not only survey lost customers, but current ones as well. The main reason is that: We need to ascertain whether those who have left are unique or representative of a larger pool of existing customers who therefore may be at-risk. Questionnaire We have no canned or obligatory battery of questions that must be asked. We simply have a protocol Analyses This is the heart of our offering and where we can demonstrate expertise on the topic.
- First and foremost we want to identify what, if any, differences are there between churned customers and existing ones. Again, this helps us to identify whether the churned customers are unique and perhaps a small group or, instead, represent a larger embedded group of existing customers who may be at-risk.
- Customer churn is rarely a result of some isolated experience. Rather, it may be a combination of performance events and/or customer characteristics. Here we create a model to identify the combination of events and/or customer characteristics that are most “toxic” in terms of leading to customer churn. It identifies key differences among customers, contrasting those who stay with those who have dropped some services, and those who have defected entirely. Go through the example. In this example, it may be that small professional services firms had a need for more personalized contact.
- A cornerstone of our corporate value proposition is to be councilors to our clients. Accordingly, we want to and can provide services to them beyond the collection, analysis and reporting of the survey data. One can execute wonderful research only to fail in terms of its actionability. This creates a sweet spot for us in terms of an added value service we can provide. Lack of actionability can occur at our end with analyses and reporting that fails to adequately tell our clients what they need to do. Lack of actionability also can occur on the client’s end in their inability to take what we have given them and act on it. In addition to the kinds of actionable analyses and reporting that we have just seen, we also can work with our clients to help them translate the research into actionable activities.
- Two points here should be emphasized: We help drive the learning We show our clients how to use this knowledge
- Let’s now look at a case study. Our client here is Emerson.