how to measure customer experience to improve satisfaction and loyalty

How to measure customer experience to improve satisfaction

and loyalty

Fredrik AbildtrupCEO @ TeleFaction A/S

The Return on Behavior® Company

Contents

• Why manage experiences?

• Customer Experience Management

• How to be successful

• How to do it

Why manage experiences?

Why focus on customer experiences?

70 – 90% of what happens with customers is

driven by human nature, and

nothing to do with technology

McKinsey

10% increase in customer retention

results in a 30% increase in the

value of the company

Bain & Co.

Dissatisfied customers whose complaints are taken care of, are more likely to remain

loyal, and even become advocates, as those that are ‘just' customers

95% of employees don’t fully understand their

organization’s strategyNorton/Kaplan

Balanced Scorecard

Nearly 70% of consumers said, they had ended a relationship, due to poor customer service alone.

Datamonitor/Ovum 2009

50% of the people surveyed said that

agents failed to answer their

questionsHarris

Percentage of companies that…

Collect Feedback

Alert Staff Use Insight Deploy and Improve

Tell Customers0

10

20

30

40

50

60

70

80

90

100

95%

45%

35%

10% 5%

Source: Gartner Group, 2009, North American Study

Actions

Sources: Giga, Gartner Group, Forester Research, Nuance 2010

The cost of satisfying the customer

Chat - $7.86

Email - $9.53

Online self service - $6.55

Phone / Call center - $6.17

Cost

per

reso

lved

issu

e

Interactions drives loyalty

With products becoming commoditized and customers demanding more, companies are focusing on delivering superior customer experiences.

A 2009 study of over 860 corporate executives revealed that companies that have increased their investment in customer experience management over the past three years report higher customer referral rates and customer satisfaction.

(Strativity Group, 2009)

Enterprise managers wear rose-colored glasses

Survey:– Are companies providing an excellent customer

experience?

Customer view

Enterprise view

22%

42%

60%

50%

18%

8%

Agree Neutral Disagree

Net Agreement: Customer +4, Enterprises +34

Even though managers think they know how the customer is feeling, we all know differently!

Customer Experience vs. Management

Customer RelationshipManagement

CRM to CEM

CRM is enterprise-focused and designed to manage customers for maximum efficiency,

CEM is a strategy that focuses the operations and processes of a business around the needs of the individual customer which in turn will lead to larger profits with more

customers.

The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer relationship has been the domain of Customer Relationship Management (CRM).

However, CRM strategies and solutions are designed to focus on product, price and enterprise process, with minimal or no focus on customer need and desire. The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want, resulting in the failure of many CRM implementations.

Build or destroy profits?Memorable experiences can lead to customer actions that build, or destroy, profits - Its your choice.

PleasedComfortableAppreciatedImportantSpecial

FrustratedLet Down

AngryIgnored

Confused

Recommended to a friend or colleague

Praised a company representative

Purchased more products/services

Continued relationship about the same

Complained to a friend or colleague

Complained to a company representative

Switched to new supplier/provider

Purchased less products/services

Customer Experience Management…

Customer CentricGive customers what

they want

Business StrategyMake money and beat

the competition

…is the execution of a customer centric business strategy

How to be successful

To get success – be SMART

Strategy for customer value

Metrics to steer

Alignment of people

Redesign of experiences

Technology to optimize

Customer Value…

Companies see customer relationship value this way

Sales

Lifetime valueStrategic fit

Profit

High-QualityEmpowered Employees

Rewards for loyaltyHonest communication

Customer Value…

Customers see it differently..

Metrics – The steering wheel

Customer focus are visulized through the results of the measurements

– The customer says that...– The customer experienced that...

Translate what you mean with customer satisfaction

Operationalize your vision through measurements – And rememeber you get what you measure!

Primary areas to create instant results– Customer Satisfaction– Cross sales/Up sales– Operationalization of strategies and values– Retention of customers

Live-measurements

Meeting surveys

Postal surveys

E-mail and web surveys

SMS/Text surveysPhone surveys

Chat surveysAd-hoc surveys

EnterpriseFeedback

Management

Close the loopFollow-up with Action Management

Customer delightedAlert generatedAcknowledge performancePossible up/cross sell

Customer satisfiedNo action

Customer dissatisfiedAlert generatedCase generated

Action ManagementResolve issueClose case

CustomerFeedbackSurvey

People are the drivers

The Top 5 attributes of companies that deliver ”Constantly Excellent Customer

Experiences”

1. Well-trained and Helpful Employees2. Excellent Customer Service3. High-Quality Goods and Services4. Friendly and Caring Employees5. Personal Attention, Reward for Loyalty

The key ingredient: People!Source: Bob Thompson, CustomerThink Corp.

Redesign the experience

Customer experiences as parameter for success

– Every contact with the company gives the customer a chance to evaluate if the experience have been bad / neutral / good

– Over time these customer experiences will make a lasting impression of the company’s values or the company as a brand

– Act on the feedback of your customers experiences and reap the benefits of satisfied customers

Use technology to optimize experiences

Assess the quality of customer experiences with telephone, online and contact center monitoring and measurement systems

Optimize marketing with analysis and campaign management systems to deliver relevant offers

Treat customers as individuals and reward their loyalty

Provide tools to help employees be helpful and responsive, including sales coaching and support knowledge bases

Sounds great, but how does it work in real life?

The Return on Behavior process

You need to have customers evaluate the service delivery immediately after the interaction

• ...the best solution is real-time customer feedback.• Eliminate the gap between service and evaluation• Too late to recover poor interactions • Enhances believability of results

• Verbatims: capture caller suggestions for improvement• Verbatim comments, In the customer’s own words (capture the emotion)

• Identify and highlight employees that delight customers

• Frequent reporting of customer feedback• Daily, Monthly or quarterly, Fact analysis, Annual summary presentation, Benchmark

scores with others, Frequency to meet management’s needs

• Receive alert of a dissatisfied customer!• Pro-actively prevent market damage, Service Recovery Opportunities, Detect Process

and Procedure that are flawed• 4% of dissatisfied customers complain, 91% of dissatisfied customers will not do

business with you, 80% will tell 10 people 20% will tell 20+ = 100 dissatisfied customers tell 1200 how poor you are!

The Return on Behavior process

Return on Behavior

• Service quality is not about internal compliance – It is about satisfying your customer

• It is the change in behavior that gives pay-off in terms of customer experiences

High Monitoring scores≠

Customer Satisfaction

About TeleFaction

TeleFaction is a global “Voice of the Customer” Company offering real-time customized closed loop feedback methodologies.

Our core service is Return on Behavior®, a results-driven solution which translates objective customer data into actionable insights.

These insights provide specific action points for management and individuals to adjust behavior in order to secure revenue, retain customers and increase loyalty.

Author information

Fredrik Abildtrupfab@telefaction.com+45 5057 5070

WEB: TeleFaction.comBLOG: ReturnOnBehavior.com

Twitter: twitter.com/TeleFactionLinkedin: linkedin.com/in/fredrikabildtrup