Customer Experience Management – What it is, Why it matters, and How to begin

1. What it is,
Why it matters,
and How to begin Richard Randolph
Florida Customer Service Institute

2. What if…
Your Customers
had to an
admission fee for
the privilege of
shopping with you?
What would you have to do to
bring them in and keep them
happily engaged while shopping?

3. ① What is CEX?
② Why Does it Matter?
–The Economic Imperative
③ Key Ideas
④ Where To Begin
⑤ Action Tips
⑥ Next Steps
Appendix: Resources

4. Welcome to the

7. : How well do experiences
meet Customers’ needs?
: How easy is it for Customers
to do what they want to do?
: How do Customers feel about
the experiences?

8. LOGIC
Rational
Cause & Effect
‘Manufacturing’
Price-Driven
Transactions
The Head Feelings & Intuition
Not Linear
‘Agriculture’
Not Price-Driven
Experiences
The Heart
PEOPLE
Customer-centric

9. Customers perceive service
in their own unique,
idiosyncratic, emotional,
irrational, end-of-the-day,
and totally human terms.
~ Tom Peters
Perception is all there is.

10. Intentionally “Stage”
Your Experience

11. It’s the sum total of the interactions that a
Customer has with a company’s products, people,
and processes. It goes from the moment when
Customers see an advert to the moment when they
accept delivery of a product and beyond.
Sure, we want people to think our computers are
great. However, what matters is the totality of
customers’ experiences with us: talking with our
call-center representatives, visiting our Web site,
buying a PC, and owning a PC. The customer
experience reflects all of those interactions.
Richard Owen
vice president of
Dell online worldwide

13.  Increased Loyalty / LTV
 Lower Acquisition Costs
 Word of Mouth
 Price Premiums
 Lower Operating Costs

14. Attract new Customers
Increase Customer Loyalty
 More wallet share
 Increase purchase frequency
 Increase Lifetime Value
 Reduce ‘Churn’
Increase referrals
Block competition
Why This Matters to You

15. 84% of executives believe their
company has a good understan
of how to serve Customers
57% of Customers rate overa
service from “average” to
“not meeting expectations”
but...

16. 83% of executives said their companies
have a solid understanding of their
Customer’s experience
92% say they listen to and act on
Customer feedback
but...
45% of Customers say companies
do not understand their experience
37% say companies do not listen to
or act on their feedback

17. 80% of companies say they
deliver “superior” customer
service.
8% of Customers think these
same companies deliver
“superior” customer service.
but...

18. 78% of consumers have bailed on a transaction
or not made an intended purchase because of a
poor service experience.
On average, loyal customers are worth up to
10 times as much as their first purchase.

19. In 2011, 86% of consumers
quit doing business with a
company because of a bad
Customer experience.

20. 70%
of buying experiences
are based on how
the Customer feels
they are being treated.

21. People will forget
what you said,
they will forget
what you did,
but they will
never forget
how you
make them ~ Maya Angelou
.

22. The way to make advocates
out of satisfied Customers
is to strongly appeal to the
Customers’ emotional needs.

23. 9 out of 10 U.S. consumers say they would
pay more to ensure a superior customer
experience.
3 in 5 Americans would try a new brand
or company for a better experience.
7 in 10 Americans said they were willing to
spend more with companies they believe
provide an excellent customer experience.

24. 5%-20%
Probability of selling to a new prospect
60%-70%
Probability of selling to an
existing customer

25. Employees only ask for the
customer’s name
21% of the time.
Hint: The person has a name 100% of the time,
and they like hearing it.

26. A person’s name
is to that person
the sweetest and
most important
sound in any
language. ~ Dale Carnegie

27. 80% of Americans agree
that smaller companies
place a greater emphasis
on Customer service
than large businesses.

28. ‘We’re unable to answer your question.
Please call xxx-xxx-xxxx to speak to a
representative from xxx team.’
‘We’re sorry, but we’re experiencing
unusually heavy call volumes.
You can hold or try back at another time.’
‘Your call is important to us.
Please continue to hold.’

32. ➟Customer Centric
➟Customer Lifetime Value
➟E T D B W
➟Journey Map / Touchpoints

33. Think like a Customer
• How would you feel? Remember: It’s
more about emotions (feelings) than logic!
• The Company exists for the Customer –
not the reverse!
When was the last time you
bought your company’s product?

34. Customers Are From Venus
Companies are from Mars
Your
Customers
Your
Company
 High company knowledge
 High interest in topic
 Egos
 Internal Politics
 Varied understanding of
Customers
 High self-interest
 Immediate Needs
 Wants
 Desires
 Interests
 Barriers and blocks

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36. The potential contribution of your Customers
to your business over their lifetime.
Add the value of referrals and
word-of-mouth promotion.
Customers are an ongoing str
as opposed to a one-time sale.
Knowing the Lifetime Value of your Customers
is crucial.

37. Customer Effort
From the customer’s standpoint,
doing business with you is as
effortless and inexpensive
as possible.

38. Watch out for these signs,
most are our own doing:
 Repetitive procedures
 Multitude of documents
 Questions you already know the answers to
 Customer run-around
 “It’s company policy”

39. • Present a single face to your Customers –
not sales, Customer service accounts, etc. –
just your Company
• Work in different ways for different customers –
one size does not fit all!
• Know what your Customers really want and
anticipate their needs –
if a Customer buys x will she also need y?
• Let your Customers do more for themselves –
let them input their own orders, check progress…

40. Going to
the Movies
Customer In
Customer Out
Park Car
Wait in line to
buy ticket
Buy theater ticket
Enter theater;
Give ticket to taker
Wait in line for
popcorn and soda
Go to restroom
Go into theater;
find seats
Pay for food
Exit theater,
return to car
Sit and
watch movie
Exit Parking Lot
Actions before
the transaction
Actions after
the transaction
(includes follow-up
and follow through)
Cycle of Service with
Moments of Truth

41. Touchpoints – any interaction between a
Customer and your Company
3 Levels of Service
1. Processing – done TO you
(any time there’s a line)
2. Service – Responsive, customized attention
3. Experience – Creates a memory

43. 1. Start With Your Employees!
2. Customer Experience Audit
3. Know Your Customers
4. Voice of the Customer
5. Customer ‘Bug’ List
6. Map Customer Touchpoints
7. Improve and Sustain

44. The Service Profit Chain

45. Customer experience
depends on Employee experience
You can design and create
and build the most wonderful
place in the world. But it
takes people to make the
dream a reality.
~ Walt Disney

46.  Your company’s experience for new and
existing/returning Customers
 Shop competitors / industry peers –
how do you feel about their experience?
 Benchmark against the very best –
Amazon, Ritz-Carlton, Zappos
Hint: Your Customers do!

47. 47
Experiences should be
designed for individuals.
47You need to understand your Customers personally

48. Yes, you know more than your
Customers — deal with it
Educate your Customers
Avoid jargon, acronyms
and process steps
Don’t “sell” things — help Customers buy them
Look at all interactions as an
opportunity to help Customers to do something

49. hat’s
n
t
or
e?
People are infinitely self-interested!

50. Preferences
Options
Information needs
What do they want that they
can’t get now?

51. “Listening posts”
• Needs
– Basic: water, food, shelter
– Situational: requires a product or service
• Wants
• Emotions / Expectations
• Assumptions and stereotypes about you

52. Prepare for predictable questions
Clarify
Validate
Respond
Plus it
What time is the
three o’clock parade?

53. Exercise 1: What Are Your Customers’
Needs and Wants
Instructions
1. Identify one ‘Basic’ need
your Customers have
2. Identify one ‘Functional’
need your Customers have
3. Identify one ‘Want’ your
Customers have
4. Identify one ‘Stereotype’
your Customers have
about your industry
Time: 5 minutes

54. ?What ‘bugs’ your Customers?
?How can you fix that?

57. 1. Generate a Customer “Bug” List internally
(brainstorm with front-line Customer contact
workers)
2. Prioritize according to Customer impact
and contribution to Customer Value
3. Confirm with real Customers
(questionnaires, interviews, focus groups)
A simple list of
things that
“bug” your
Customers
about your
business

58. What ‘Bugs’ Our Customers?
Customer Expectations Our Goal“As Is”
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59. Exercise 2: Start your own Customer ‘Bug’ List
Instructions
1. Identify one thing that
‘bugs’ your Customers now
2. List Customer Expectations
for that experience
3. Describe “what’s going on
now”
4. Specify what “should be
happening”
Time: 5 minutes

60. Example:
Open A Bank Account
The Bank
Branch
Customer In
Customer Out
Park Car
Enter Bank
Ask for New
Accounts Clerk
Wait for New
Accounts Clerk
Meet Clerk;
Explain needs
and wants
Fill out forms;
Make first deposit
Get temporary
checks
Clerk Explains
Bank’s Services
and Options
Exit Bank
Confirm
understandings
and expectations
Exit Parking Lot

61. Exercise 3: Map Your Customer’s Touchpoints
Instructions
Identify meaningful steps
(touchpoints) in your
Customer’s interaction cycle
with your company.
Begin with the first contact.
Finish when they leave.
Time: 5 minutes

62. Analyze your Customers’
Moments of Truth
MINUS FACTORS
PLUS
FACTORS
MOMENT OF TRUTH CHART
Park Car
Difficult access into
parking lot
No spaces available;
Only distant spaces
available — long walk
across trashy lot
Visible signage directs
Bank Customers to
preferred parking
Covered parking in
clean, wide slots
Easy access into
parking lot
Close spaces available
Lot clean
Spaces clearly marked
Enter Bank
Old, dirty signs
Front entrance has
debris
Windows are dirty and
covered with ads
Clean, clear signs
Front entrance clean
professional and
inviting
Interior directional
signs
Clear signs
Meet “Greeter” who
directs Customers
Child Care area
available
CUSTOMER
EXPECTATIONS

63. Moment of Truth Chart
Customer Expectations
What do Customers think
should happen?
Plus Factors
How can we delight Customers
at this touchpoint?
Minus Factors
What might detract
from the experience?
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64. : How well do experiences
meet Customers’ needs?
: How easy is it for Customers
to do what they want to do?
: How do Customers feel about
the experiences?

65. Exercise 4: Moment of Truth Analysis
Instructions
1. Identify one Moment of
Truth Touchpoint
2. List Customer Expectations
for that Touchpoint
3. List two “Minus Factors”
for that Touchpoint
4. List two “Plus Factors”
for that Touchpoint
Time: 5 minutes

66. Using your Customer-focused priorities and standards:
1. Measure the results: Do the improvements show up?
2. If not, fix it.
3. If yes, move to next items on your priority list —
but confirm that the priorities have not changed!
Follow Up and
Follow Through
Results Check-Up

67. Measure and track ‘Satisfaction’
9 – 10 Promoters – Apostles
7 – 8 Passives – subject to competitors
0 – 6 Detractors – unprofitable
range from “OK” to “Assassins”
to “Ninjas”

68. ‘How likely is it that you would
recommend my company
to a friend or colleague?’

69. % of Promoters – % of Detractors
= Net Promoter Score
94 84.7% 13 11.7% 4 3.6% 111 100%
Promoters Passives Detractors Total
The NPS is 81.1%
(84.7% - 3.6% = 81.1%)

72. 1. Everything Speaks!
2. Be Consistent
3. Be Nice (Customers are Guests)
4. Simplify
5. Service Recovery Matters

76. Everything
Speaks!

77. Everything
Speaks!

78. Everything Speaks!

80. “I know what to expect”
“Everything is going to be friendly and easy
every time”
• Visual / Sight
• Sound
Consistency is viewed by Customers as
reliability, predictability, stability, and certainty
which build confidence and trust.
• Smell / fragrance
• Touch / tactile

85. The Customer may not always be right –
but she’s always our Customer!
It’s not our fault – but it is our problem!

86. A typical business hears from 4% of its dissatisfied
Customers.
For every customer who bothers to complain,
26 other customers remain silent.
• 1%-5% Complain to Management
• 45% Complain to Agent/Branch/Front Line Rep
• 50% Encounter a Problem But Don’t Complain

87. Customers who complain and are satisfied
are up to 8% more loyal than if they had
no problem at all.
It is 6-7 times more expensive to acquire a
new customer than to keep a current one.

88. Executives think only 20% of
Customers share “bad news”
about their experiences
87% of Customers tell others
about their bad experiences
– increasingly through instantaneous channels
but...

89. Exercise 5: Your Action Plan
Instructions
Identify one Improvement
Item for each of the five
Action Areas
Time: 5 minutes

91. 1. Start With “Why”
2. CEM Maturity Model
3. Be Authentic / Commit!
4. Resources / Continuing Study

93. 1. Don’t Know – Don’t Care!
(and stop bothering me with this stuff!)
2. Aware – Don’t Know What To Do
3. Know What To Do – Working On It
4. Very Experienced and Capable

94. Be
Authentic
94
Authenticity is all about being real.
Genuine, not an imitation.
A truly great person never reminds us
of anyone else.

95. If you’re not committed to Remarkable Customer Experiences,
you can only fool yourself.
Be prepared to burn the ships!

96. When is the last time
you were this joyful?
And your Customers???