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5 things you must
know about Customer
Experience
And what they mean to you
Sharon Burton
951-369-8590
Twitter: sharonburton
Sharon@sharonburton.com
www.sharonburton.com
Tweet tag: #5CustExpCongility
Thank you for attending!
▪ Sharon Burton
▪ Been in the Communication industry
for 20 years
▪ I solve post-sales customer experience problems
▪ Research how people feel about product instructions
▪ Support clients in creating better product instructions
▪ Teach communication at various universities
Tweet tag: #5CustExpCongility
Congility 2014
18-20 June 2014, Gatwick, UK
“Driving customer experience from
across the enterprise”
First-class international speakers
www.congility.com/2014
Brought to you by
Save 30% registering using
code “SBCA14WB”
Jeff Eaton
Leah Guren Rahel Bailie
Noz UrbinaKevin
Nichols
Tony Self
And
MANY
more!
Michael
Priestley
Kristen
Eberlein
2 conference days, 1 workshop day
• Content strategy and UX
• Structured content and IA
• Digital / Mobile delivery
• Component content management
Overview for today
Definitions and
then the list
▪ I want to cover some concepts
and definitions so we all know
what I mean as we go
▪ Ask questions in the Chat
window and I’ll catch them at
the end
Tweet tag: #5CustExpCongility
The cost of acquiring and
keeping customers
Some definitions to get us all on the same page
Tweet tag: #5CustExpCongility
Getting customers is expensive
It costs 6–7 times
more to acquire a
new customer
than retain an
existing one –
Bain & Company
▪ CustomerAcquisition
Cost (CAC) is the cost of
convincing people to buy your
product or service
▪ Basically, it’s the total cost of
sales and marketing divided by
the customers you got
▪ B2C is typically less, B2B is
typically more
Tweet tag: #5CustExpCongility
Keeping customers
A 5% increase in
customer
retention can
increase
profitability by
75% —
Bain and Co
▪ Customer churn is customers
leaving from the back door as
you welcome new ones in the
front door
▪ Customer churn is one of the
most expensive things you can
have
▪ An entire industry exists to
analyze churn
Lifetime value
The probability of
selling to an
existing customer
is 60 – 70%.The
probability of
selling to a new
prospect is 5-20%
—Marketing
Metrics
▪ Existing customers are already
engaged with your products or
services
▪ They have a lower cost to keep
▪ They should buy more stuff
▪ Higher monetary value to the
business
▪ Can be your evangelists
Return rate
The average U.S.
consumer spends
20 minutes trying
to make a device
work before giving
up and returning it
to the seller—
2006 study by
Dutch scientist
Elke den Ouden
▪ Returns have increased 21
percent since 2007, according
to aAccenture research report
(Dec 2011)
▪ 5% of returns are related to
actual product defects
▪ 27% reflect “buyer’s remorse”
▪ 68% of returned products are
“NoTrouble Found”
Customer experience increases sales
81% of companies
…delivering
customer experience
excellence are
outperforming their
competitors —
Peppers and
Rogers, 2009
Customer
Experience Maturity
Monitor
▪ Customer experience is the
outcome of all of the touch
points that your customer has
with your organization *
▪ The perception that customers
have across all of their
interactions with your
organization *
▪ It’s a customer-centric view of
your company from every
touch point
* From Customer Experience Overview, 2011, BruceTempkin
and Jeanne Bliss
The 5 things you must
know
And a bonus one because I can
Tweet tag: #5CustExpCongility
1.What is an NPS (Net Promoter Score)?
“How likely is it
that you would
recommend
[company
name/product/
service] to a friend
or colleague?”
▪ Intended behavior metric
▪ Scale 0 to 10
▪ Associates loyalty to future
behavior
Group Score Feelings
Promoters 9 or 10 Loyal
Passives 7 or 8 Generally
satisfied
Detractors 0 to 6 Unhappy
Calculate your NPS
% of Promoters -
% of Detractors =
NPS
Often expressed
as a number, such
as 6.35
Can be a negative
number, which is
bad
▪ Happy customers have
▪ Higher lifetime value
▪ Lower churn rate
▪ Lower return rate
▪ Cheaper to sell to
▪ A good follow up to the NPS
question is
▪ “Why?”
Can we use this elsewhere?
“How likely is it
that you would
recommend our
instructions [or
content] to a
friend or
colleague?”
▪ Measure the intended
behavior for your content
▪ Use the same scale and
measurements as the rest of
the NPS
▪ If your content isn’t as high (or
is higher) as the rest of your
NPS
▪ That’s something to look at
2. How are other companies in your industry rated?
Knowing your
NPS is
good, knowing
your industry
NPS is even
better
We don’t have an
industry content
NPS
▪ Several sites, including:
▪ http://www.insightsfromanalyt
ics.com/blog/bid/324678/Top-
10-U-S-Net-Promoter-Scores-
NPS-for-2013
▪ If your company has a
Customer Experience
initiative, someone knows
your NPS
▪ And they want to improve it
3.What is a Customer Journey?
The process a
customer goes
through while
interacting with
your company
Only the
customer knows
if it was good or
not
▪ Typically though of in column
phases, for example
▪ Awareness
▪ Interest
▪ Desire
▪ Action
▪ Can have customer rows
▪ Activity
▪ Motivations
▪ Questions
▪ Barriers
Customer journey
Customers
typically have
many journeys
with your
company
Think of
scenarios but real
▪ Jane wants to add the new Sports
channels to her cableTV
subscription to watch baseball
▪ Starting with Jane’s goal
▪ Chart out what she does and who
she interacts with for each step of
this
▪ Not how you think it should
be, but how it actually is
▪ Do this yourself, all the way
through
Adding baseball
From Jane’s point
of view and how
she feels about
each step
▪ At the end, you see the customer
steps, the employees
involved, and the processes
invoked
▪ Often, you discover major
internal issues
▪ Jane needs her account number
▪ She does electronic banking and
has no bill handy
▪ Jane is frustrated she has to call
back
▪ How could we make this easier?
▪ Verify by phone number?
4.What are touchpoints?
The places where
a customer
interacts with
your company in
some manner
during the
customer journey
Attended and
unattended
▪ Touchpoints include:
▪ Letters
▪ Knowledgebase
▪ Support
▪ Website
▪ Product content
▪ Exposes internal processes
▪ Attended vs unattended
Attended vs unattended touchpoints
Customers
develop their
feelings about us
through their
interactions with
us – the
touchpoints
▪ Attended
▪ We can monitor what the
customer is doing/how they are
interacting with us and have the
opportunity to guide that
touchpoint experience.
▪ Unattended
▪ We can’t monitor to know what
the customer is doing and we
have no way to guide that
touchpoint experience should it
go poorly.
Most of our content is unattended
We often throw
something over
the wall and hope
for the best
▪ We need data for unattended
touchpoints
▪ GoogleAnalytics
▪ Website
▪ Product instructions
▪ Other tools help here, too
▪ Might also be good to allow
ratings and comments
5.What is a customer ecosystem?
The entire
system the
customer is
involved in during
a journey
Including internal
stuff the
customer never
sees
▪ Nothing happens in a vacuum
▪ Customer touchpoints are the
tips of icebergs
▪ Processes internal to your
company “bubble up” to
touchpoints
▪ Often, entire groups have no
idea of their customer impact
Customer ecosystems
Mapping out a
journey to an
ecosystem
potentially
identifies
unknown
customer impact
▪ Sort of like root cause analysis
▪ But deeper and more
systematic
▪ Allows people to see groups
who have customer impact
several levels up from where
they are making decisions
▪ These groups may be very happy
with how they’re doing
▪ But the customer isn’t
Jane
Wants
baseball
Calls
CableTV
Navigates
phone
Listens to
options
Selects current
customer
Selects
Change Plan
Gets rep
Makes
request
Verify account
No bill
available
Can’t change
account
Call ends Jane upset
Listens to
music
CustSupport
Channel 3
Programming
Programmers
Network
system
Marketing
Copywriter
Advertising
Marketing
IT
Programmer
Support
Network
system
Marketing
Support rep
CRM
Database
Security
Network
system
Knowledgebase
Internal to
company
Customer
exposed
Jane
Wants
baseball
Calls
CableTV
Navigates
phone
Listens to
options
Selects current
customer
Selects
Change Plan
Gets rep
Makes
request
Verify account
No bill
available
Can’t change
account
Call ends Jane upset
Listens to
music
CustSupport
Channel 3
Programming
Programmers
Network
system
Marketing
Copywriter
Advertising
Marketing
IT
Programmer
Support
Network
system
Marketing
Support rep
CRM
Database
Security
Network
system
Knowledgebase
Internal to
company
Customer
exposed
Green=Happy, doing well
Yellow=neutral, doing OK
Red=Very unhappy
What does this mean for our content?
▪ In most companies, we don’t
really know how content gets
created and distributed
▪ Or what is involved in that
creation or distribution
▪ And what barriers that may
create for our customers
▪ We need to know this
▪ We need the ecosystem
mapped out to show our
integration
We may be
delighted with
our content
Our customer
may not be
delighted
The customer
wins
6. Customer Effort Score (CES)
"How much effort
did your
request/purchase/
etc take?"
▪ Customer Effort Score
▪ How hard is it to do business
with a company
▪ People don’t like doing business
when it’s hard
▪ Increased churn rate
▪ Scale of 1 (very easy) to 5
(giant effort)
Which question do you ask?
"How much effort
did finding/
understanding/
acting on this
information
take?"
▪ I think if you can ask only one
question about your content in
the content, ask the CES
question
▪ Specific content perception
▪ If you can ask only one
question about your content at
a higher level than in the
content, use the NPS
▪ Overall perception
Thoughts?
Comments?
Questions?
Tweet tag: #5CustExpCongility
Sharon Burton
Sharon@sharonburton.com
951-369-8590
Twitter: sharonburton
www.sharonburton.com
Join us at Congility 2014:
Today's content needs agility
THANK YOU! Q&A?
Driving customer experience from
across the enterprise
2014 Conference 18-20 June, UK
Register on www.congility.com
with promo code “SBCA14WB”
for 30% off

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The 5 things you must know about Customer Experience

  • 1. 5 things you must know about Customer Experience And what they mean to you Sharon Burton 951-369-8590 Twitter: sharonburton Sharon@sharonburton.com www.sharonburton.com Tweet tag: #5CustExpCongility
  • 2. Thank you for attending! ▪ Sharon Burton ▪ Been in the Communication industry for 20 years ▪ I solve post-sales customer experience problems ▪ Research how people feel about product instructions ▪ Support clients in creating better product instructions ▪ Teach communication at various universities Tweet tag: #5CustExpCongility
  • 3. Congility 2014 18-20 June 2014, Gatwick, UK “Driving customer experience from across the enterprise” First-class international speakers www.congility.com/2014 Brought to you by Save 30% registering using code “SBCA14WB” Jeff Eaton Leah Guren Rahel Bailie Noz UrbinaKevin Nichols Tony Self And MANY more! Michael Priestley Kristen Eberlein 2 conference days, 1 workshop day • Content strategy and UX • Structured content and IA • Digital / Mobile delivery • Component content management
  • 4. Overview for today Definitions and then the list ▪ I want to cover some concepts and definitions so we all know what I mean as we go ▪ Ask questions in the Chat window and I’ll catch them at the end Tweet tag: #5CustExpCongility
  • 5. The cost of acquiring and keeping customers Some definitions to get us all on the same page Tweet tag: #5CustExpCongility
  • 6. Getting customers is expensive It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company ▪ CustomerAcquisition Cost (CAC) is the cost of convincing people to buy your product or service ▪ Basically, it’s the total cost of sales and marketing divided by the customers you got ▪ B2C is typically less, B2B is typically more Tweet tag: #5CustExpCongility
  • 7. Keeping customers A 5% increase in customer retention can increase profitability by 75% — Bain and Co ▪ Customer churn is customers leaving from the back door as you welcome new ones in the front door ▪ Customer churn is one of the most expensive things you can have ▪ An entire industry exists to analyze churn
  • 8. Lifetime value The probability of selling to an existing customer is 60 – 70%.The probability of selling to a new prospect is 5-20% —Marketing Metrics ▪ Existing customers are already engaged with your products or services ▪ They have a lower cost to keep ▪ They should buy more stuff ▪ Higher monetary value to the business ▪ Can be your evangelists
  • 9. Return rate The average U.S. consumer spends 20 minutes trying to make a device work before giving up and returning it to the seller— 2006 study by Dutch scientist Elke den Ouden ▪ Returns have increased 21 percent since 2007, according to aAccenture research report (Dec 2011) ▪ 5% of returns are related to actual product defects ▪ 27% reflect “buyer’s remorse” ▪ 68% of returned products are “NoTrouble Found”
  • 10. Customer experience increases sales 81% of companies …delivering customer experience excellence are outperforming their competitors — Peppers and Rogers, 2009 Customer Experience Maturity Monitor ▪ Customer experience is the outcome of all of the touch points that your customer has with your organization * ▪ The perception that customers have across all of their interactions with your organization * ▪ It’s a customer-centric view of your company from every touch point * From Customer Experience Overview, 2011, BruceTempkin and Jeanne Bliss
  • 11. The 5 things you must know And a bonus one because I can Tweet tag: #5CustExpCongility
  • 12. 1.What is an NPS (Net Promoter Score)? “How likely is it that you would recommend [company name/product/ service] to a friend or colleague?” ▪ Intended behavior metric ▪ Scale 0 to 10 ▪ Associates loyalty to future behavior Group Score Feelings Promoters 9 or 10 Loyal Passives 7 or 8 Generally satisfied Detractors 0 to 6 Unhappy
  • 13. Calculate your NPS % of Promoters - % of Detractors = NPS Often expressed as a number, such as 6.35 Can be a negative number, which is bad ▪ Happy customers have ▪ Higher lifetime value ▪ Lower churn rate ▪ Lower return rate ▪ Cheaper to sell to ▪ A good follow up to the NPS question is ▪ “Why?”
  • 14. Can we use this elsewhere? “How likely is it that you would recommend our instructions [or content] to a friend or colleague?” ▪ Measure the intended behavior for your content ▪ Use the same scale and measurements as the rest of the NPS ▪ If your content isn’t as high (or is higher) as the rest of your NPS ▪ That’s something to look at
  • 15. 2. How are other companies in your industry rated? Knowing your NPS is good, knowing your industry NPS is even better We don’t have an industry content NPS ▪ Several sites, including: ▪ http://www.insightsfromanalyt ics.com/blog/bid/324678/Top- 10-U-S-Net-Promoter-Scores- NPS-for-2013 ▪ If your company has a Customer Experience initiative, someone knows your NPS ▪ And they want to improve it
  • 16. 3.What is a Customer Journey? The process a customer goes through while interacting with your company Only the customer knows if it was good or not ▪ Typically though of in column phases, for example ▪ Awareness ▪ Interest ▪ Desire ▪ Action ▪ Can have customer rows ▪ Activity ▪ Motivations ▪ Questions ▪ Barriers
  • 17. Customer journey Customers typically have many journeys with your company Think of scenarios but real ▪ Jane wants to add the new Sports channels to her cableTV subscription to watch baseball ▪ Starting with Jane’s goal ▪ Chart out what she does and who she interacts with for each step of this ▪ Not how you think it should be, but how it actually is ▪ Do this yourself, all the way through
  • 18. Adding baseball From Jane’s point of view and how she feels about each step ▪ At the end, you see the customer steps, the employees involved, and the processes invoked ▪ Often, you discover major internal issues ▪ Jane needs her account number ▪ She does electronic banking and has no bill handy ▪ Jane is frustrated she has to call back ▪ How could we make this easier? ▪ Verify by phone number?
  • 19.
  • 20. 4.What are touchpoints? The places where a customer interacts with your company in some manner during the customer journey Attended and unattended ▪ Touchpoints include: ▪ Letters ▪ Knowledgebase ▪ Support ▪ Website ▪ Product content ▪ Exposes internal processes ▪ Attended vs unattended
  • 21. Attended vs unattended touchpoints Customers develop their feelings about us through their interactions with us – the touchpoints ▪ Attended ▪ We can monitor what the customer is doing/how they are interacting with us and have the opportunity to guide that touchpoint experience. ▪ Unattended ▪ We can’t monitor to know what the customer is doing and we have no way to guide that touchpoint experience should it go poorly.
  • 22. Most of our content is unattended We often throw something over the wall and hope for the best ▪ We need data for unattended touchpoints ▪ GoogleAnalytics ▪ Website ▪ Product instructions ▪ Other tools help here, too ▪ Might also be good to allow ratings and comments
  • 23. 5.What is a customer ecosystem? The entire system the customer is involved in during a journey Including internal stuff the customer never sees ▪ Nothing happens in a vacuum ▪ Customer touchpoints are the tips of icebergs ▪ Processes internal to your company “bubble up” to touchpoints ▪ Often, entire groups have no idea of their customer impact
  • 24. Customer ecosystems Mapping out a journey to an ecosystem potentially identifies unknown customer impact ▪ Sort of like root cause analysis ▪ But deeper and more systematic ▪ Allows people to see groups who have customer impact several levels up from where they are making decisions ▪ These groups may be very happy with how they’re doing ▪ But the customer isn’t
  • 25. Jane Wants baseball Calls CableTV Navigates phone Listens to options Selects current customer Selects Change Plan Gets rep Makes request Verify account No bill available Can’t change account Call ends Jane upset Listens to music CustSupport Channel 3 Programming Programmers Network system Marketing Copywriter Advertising Marketing IT Programmer Support Network system Marketing Support rep CRM Database Security Network system Knowledgebase Internal to company Customer exposed
  • 26. Jane Wants baseball Calls CableTV Navigates phone Listens to options Selects current customer Selects Change Plan Gets rep Makes request Verify account No bill available Can’t change account Call ends Jane upset Listens to music CustSupport Channel 3 Programming Programmers Network system Marketing Copywriter Advertising Marketing IT Programmer Support Network system Marketing Support rep CRM Database Security Network system Knowledgebase Internal to company Customer exposed Green=Happy, doing well Yellow=neutral, doing OK Red=Very unhappy
  • 27. What does this mean for our content? ▪ In most companies, we don’t really know how content gets created and distributed ▪ Or what is involved in that creation or distribution ▪ And what barriers that may create for our customers ▪ We need to know this ▪ We need the ecosystem mapped out to show our integration We may be delighted with our content Our customer may not be delighted The customer wins
  • 28. 6. Customer Effort Score (CES) "How much effort did your request/purchase/ etc take?" ▪ Customer Effort Score ▪ How hard is it to do business with a company ▪ People don’t like doing business when it’s hard ▪ Increased churn rate ▪ Scale of 1 (very easy) to 5 (giant effort)
  • 29. Which question do you ask? "How much effort did finding/ understanding/ acting on this information take?" ▪ I think if you can ask only one question about your content in the content, ask the CES question ▪ Specific content perception ▪ If you can ask only one question about your content at a higher level than in the content, use the NPS ▪ Overall perception
  • 30. Thoughts? Comments? Questions? Tweet tag: #5CustExpCongility Sharon Burton Sharon@sharonburton.com 951-369-8590 Twitter: sharonburton www.sharonburton.com
  • 31. Join us at Congility 2014: Today's content needs agility THANK YOU! Q&A? Driving customer experience from across the enterprise 2014 Conference 18-20 June, UK Register on www.congility.com with promo code “SBCA14WB” for 30% off