Power to Your People – The Death and Rebirth of CRM Presentation title: Digital Customer Service for the Digital Age Dominic Monkhouse describes how audiences are operating online and how to deliver outstanding service through online channels As a self-service evangelist, Dominic will be speaking about the ways in which digital customer service can improve the satisfaction of members rather than reduce it. Using experiences from his own business background as well as those of some of the world’s most customer focused organisations, Dominic will bring into sharp focus what members really want, and how we should be helping them to help themselves. Additional talking points / details: · Applications of social media channels, such as Twitter and Facebook, to deliver a service message · Engaging with consumer audiences to understand satisfaction through techniques such as Net Promoter Score · Benefits of adopting channels for two-way, open and transparent communications; building communities and engagement through social media

4. Skulduggery is more fun

5. 2 stories
 Denial of service

6. HAPPY
STAFF
HAPPY
CUSTOMERS
MORE
PROFIT
PLANNING YOUR ROUTE TO
EXCELLENCE

7. Start with the staff – IT’S PROVEN:
FINANCIAL MODEL
Practice What You Preach

8. PRACTICE WHAT YOU
PREACH
 I am highly satisfied with my job
 I get a sense of accomplishment from my work
 The work I’m given is challenging, not repetitive
 I am committed to this firm as a career
opportunity
 Move the scores from 4 to 5 on a 6 point scale
for a 42% improvement in financial performance.
Practice What You Preach

9. ESTIMATED LIFETIME VALUE -
REVENUE
FACT: A great customer is worth 102x an unhappy one.

10. ESTIMATED LIFETIME VALUE - MARGIN

11. Myths that get in the way
 What problem?
 Someone else's problem or not the only one with
a problem
 Cant fix it
 Recovery is expensive
 But the customers are happy
 Cant afford to fix or too busy
 CEO doesn't get it

12. The CEO gap
 CEOs who believe their firm is above average
on service – 75%
 Customer feedback – somewhat or extremely
dissatisfied with most recent experience – 59%
 Accenture 2007

13. Issues
 Keep handling the same issues
 Self service doesn't exist or is rubbish
 Service is reactive
 Hard to contact the right person
 Sorry I cant transfer you
 Customer service dept.....
 Company CANT listen
 Wrong metrics
 Wrong staff

14. Solutions
 Eliminate dumb contacts
 Closed loop active listening
 Cut the crap meetings
 Owners of solutions
 Make yourselves easy to do business with
 Self service tools that work
 Change your metrics
 Be proactive
 Preventative support
 First Call SupportTM

15. Stop doing dumb stuff
 Why do customers contact you?
 Phones calls
 Emails
 Support tickets
 How to track this?
 What happens to complaints?
 How many invoice problems?
 Credit notes for what?
 Low rated support tickets?

16. Major Supermarket Chain
Heatmap Interpretation:
1. Promote success? For
example, create
prominent banner for
‘Go Shop’ or focus on
less popular items?
2. What are users’
missing? Can
navigation be
restructured?

17. Self service example
 Before
 1000 “tickets” per day
 12 staff
 Monthly purge to stay “on-top”
 After
 300 tickets per day
 4 staff
 Costs
 setup plus
 £600 down to £200 per month

18. Tools

19. Recovery
 TNT found increased loyalty after recovery
 Done right it builds trust
 Don't just write you need to call

20. Measure your service
 Not annual survey!
 NPS monthly
 Customer touch points
 By employee
 By touch point
 Every time in real time
 Feedback, feedback, feedback

21. Maximising The Value of
Customer Feedback
2. COMMUNICATING TO OUR EMPLOYEES
• All can access survey results online (in real time)
• E-mail alerts instantly sent to Operations Director
if customer rates itlab less than 7/10
1. MEASUREMENT
• NPS issued monthly to 1/3rd customer base
• Insight Survey issued within 30 days of
becoming a customer
3. ACTION PLANNING
• Survey results (NPS, suggestions for improvement
etc.) are reviewed at team meetings
•Directors ring all text answers
4. ACTION DEPLOYMENT
• Customers that aren’t
delighted are followed up with
a health check
• Appropriate customer
suggestions are implemented
5. COMMUNICATING TO
OUR CUSTOMERS
• Customers receive
feedback on the changes
we have implemented as
a result of their
suggestions

22. Net Promoter Score
 Net Promoter score
 Key metric to measure customer service
 Would you recommend us to a friend or colleague?
 Your dedicated team is rewarded only on your satisfaction
 Bad profits and Good profits
 Bad profits are profits earned at the customer’s expense, in
other words, profits earned from customers which then become
detractors
 Good profits are earned from creating customer value, which in
turn creates customers who are promoters

23. Net Promoter Score

24. Net Promoter Scoring
 Answers between 0 to 10
 0 – 6 = Detractors
 7 – 8 = Passive
 9 – 10 = Promoters
 Score Calculation:
 Promoters – Detractors/Total Responses = % Score
 Management target - How do we turn passives and
detractors into Promoters??

25. Where does growth come from?

26. Easy to do business with

27. People Vision
Recruit great people and allow
them to do what they do best
every day.

28. Percentage of Buyers Getting
the Same Make Again
Source: J.D. Power Associates
40%
0%
10%
20%
30%
40%
50%
Good Car/Good Dealer
16%
Good Car/Bad Dealer
24%
Bad Car/Good Dealer

29. Employee Satisfaction Drives
Loyalty
 MEANS
 Low employee turnover is directly linked to high
customer satisfaction. Dissatisfied employees are
300% more likely to leave.
 SPECIFIC ACTIONS
 Implement weekly yay/meh/boo (YMB) survey – act
decisively on the results.
 Management to be careful what is promised and
then ALWAYS deliver on promises to staff.

30. How are you today?

31. Case study: itlab
 “We seek criticism”

32. THE CHALLENGES WE FACED
“It’s not how good you are it’s how good you want to be…”
• Poor communication with clients – always reactive,
never proactive.
• Poor communication internally – impacting client
service.
• Lack of commercial confidence – Fear of
discriminating about which customers to serve.
• Crisis of bureaucracy – competing systems,
conflicting goals.
• Poorly integrated acquisitions – different product
sets, cultures and teams.
• Misaligned products – didn’t reward adding value to
the client.

33. THE ACTIONS WE TOOK
 Clearly define excellence – Service Obsession™ & Core
Values
 Create strong culture – Flags, 10 Things, Balls of Glory,
Charity & Social Committees, Friday Nights & Fun Zone.
 Benchmark excellence – Net Promoter & closed case
 Redefine Products – 2.0, Direct, ITMS
 IT Manager – trusted advice from a techie NOT a
salesman.
 Specialist Practices – acquisitions role clearly defined
 Netsuite – replace all internal systems for data unity,
portal, single invoice, surveys, instant feedback loops

34. THE IMPACT ON THE ORGANISATION
 Service gross margin – From 50% to 67%
 Profitability – From breakeven to 7% and rising (35K pm)
 SLA – 10 minute critical 97% last quarter average
2.34min
 Responsiveness – average call answer is 4 seconds
 5 out of 5s! – 75% of rated tickets marked 5 – Serviced
Obsessed (40% response rate)
 Financial Times Top 50 Places to Work (companies of
any size)
 NPS - -2 to +14 and then +55
 The Results you Can’t Measure – go and visit for
Richard’s Mum’s Cake!

35. Specific Actions
 Abandonment rate
 Back to the floor
 Say thank you
 Say sorry
 Bombard the departments who should own the
issues
 Mystery shop yourself
 Blog about it

36. Measure
 Contact rates – down
 Repeat revenues – up
 Referrals - up
 Staff turnover – down
 Escalations and complaint costs – down
 Consistency - up