clicktools survey webinar
TRANSCRIPT
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Why Surveys Do Not have Impact: Creating a Voice of the Customer that Drives Customer ExperienceMarch 24, 2015 Clicktools and Survey Magazine John Goodman, Vice ChairmanCustomer Care Measurement & Consulting
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Agenda
• Customers Experience, Voice of the Customer, Customer Insights and Enterprise Feedback are hot topics.
• Why VOC and surveys often lack impact • Prerequisites for an actionable VOC • Tilting VOC toward proactive, preventive findings • Creating an economic imperative for action
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Context For Proactivity: Customer Experience
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Driving the Customer Experience
1. Staff isn’t to blame 2. Sensibly create remarkable delight 3. Revenue payoff of great CE is 10-20 X cost 4. VOC is more than surveys and complaints 5. Technology is the key to VOC and CE
From “Customer Experience 3.0” Published by American Management Assoc.- on Amazon <$20
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Why Surveys Are Not Effective
• Not relevant – too general • Not reliable – do not tie to other data sources • Do not create an economic imperative for action • Are not packaged to be easily used • Do not provide recommendations
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Understand the Causes of Customer Dissatisfaction
- Fails to follow policy
The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*
Customer20%-30%
Employee 20%
- Wrong expectations - Customer error
- Fails to follow policy
- Attitude
Company 40%-60%- Products and services
don’t meet expectations - Marketing miscommunication
- Broken processes
Poorly designed products, processes, and marketing
create most unmet expectations.
Customer expectations must be set to avoid problems
and surprises.
At least 30% of contacts
are preventable
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Basic Tip of the Iceberg Behavior
• Multiplier is ratio of complaints received to problems in market • Ratio can vary from 1:10 to 1:200 • Causes
− Effort − Hopelessness − Retribution − Where
• Applies to B2B
1-2% Complain To HQ/Executive
5-35% Complain to Front Line or Provider
75% Do Not Complain
Customers Who Experience a
Problem…
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Make Findings Relevant to Functions
• General satisfaction and loyalty indices do not create accountability
• Most issues are cross functional • Problems and events are more tangible than
feeling – show how events impact feelings • Everyone is too busy and overwhelmed • Question is - “Where can I get a quick hit in the
next month?”
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Make Findings Reliable
• Bad news from customers is always skewed • Operational data • Complaint data • Employee input • Understand skews of sample and proactively
highlight
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• CFO support increases the impact of the Voice of the Customer − by two the impact on satisfaction and − by five times in terms of getting issues fixed
• Focus on revenue and word of mouth • Must have agreed-upon value of customer
Create an Economic Imperative
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I Question/problem
experience
II Contact behavior
III Contact handling
Customers
No Question/ problem
experience 80%
Question/ problem
experience 20%
IV Market impact
Non-contactors 75%
Satisfied1 50%
Mollified2 30%
% Definitely Will
Recommend
69%
39%
74%
42%
32%Dissatisfied3 20%
Word of
Mouth**
---
2.9
1.7
4.4
5.5
% Definitely Will Keep
Purchasing
82%
75%
90%
80%
70%
% Very Satisfied with
ABC
81%
40%
82%
52%
35%
Contactors 25%
Get CFO Support For Action On Results
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=
=
=
=
x xx
=
2,500
3,000
3,000
37,500
46,000Total Customers At Risk
200,000
Customers
with
Problems
20%
Dissatisfied70%
Repurchasing
75%
Repurchasing
50%
Satisfied90%
Repurchasing
75% Do Not
Complain
25%
Complain30%
Mollified80%
Repurchasing
Three strategies: Prevention, Solicitation of Complaints and Improved Response
At $1,000 per customer, $46,000,000 at risk
Quantify Revenue Damage of Status Quo
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=
=
=
=
x xx
=
1,875
2,250
2,250
28,125
34,500Total Customers At Risk
150,000
Customers
with
Problems
20%
Dissatisfied70%
Repurchasing
75%
Repurchasing
50%
Satisfied90%
Repurchasing
75% Do Not
Complain
25%
Complain30%
Mollified80%
Repurchasing
@ Gross margin of 25%, $1MM spent on prevention = ROI of 187%!
At $1000 per customer, $34,500,000 at risk or retention of $11,500,000 plus reduction of 12,500 calls
Quantify the Payoff of Prevention of 25% of Problems
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Quantify Word of Mouth Impact of CE
10%
delighted
80%
satisfied
Tell two
Tell one
=
=
2,000
8,000
4,000
10,000
customers
10%
dissatisfiedTell six
= -6,000
10,000 Referrals X 1 Action 30 Referrals
= 333 New Customers
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Package Findings For Easy Use1. Tailor to each audience 2. Use multiple credible data sources 3. Humanize data 4. Do not criticize – highlight opportunities 5. Exception reporting - No more than two pages
and three issues 6. If nothing has changed, don’t report i 7. Follow up with face to face meeting 8. Report on progress with previous issues
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Provide Actionable Recommendations
• Two or three quick actions • Suggest accountability for actions • Stress cost of inaction • Develop proposed recommendations in concert
with internal clients • Get meeting with as many participants and
possible • Include action-planning process at end of
presentation
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Why Be Proactive?
• Definition of Proactive– Control situation by causing action rather than waiting to respond to an event
• Approaches to proactivity − Know what will happen – operational data − Predict what will happen – previous customer experience
• Why do it? – it is cheaper and creates delight
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Examples Based on Knowing What Will Happen
• Prevent uncertainty – email or text confirmation of appointment
• Warn about unpleasant surprises – SoCalEd • Provide information on opportunities – earlier
appointment at MRI clinic • Proactive education on potentially troubling
facets of transaction – auto repair labor rate
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Prerequisites for Proactivity and Great CE1. Agreed upon value of the customer 2. CE strategy and map across customer journey 3. Website oriented to both marketing and service 4. Marketing and sales willing to warn customers in
advance 5. Accountability for CE across the organization
including closed loop for all individuals and issues 6. Customer ID across all major data bases which
drive proactive CRM contacts 7. Integrated VOC process focused on top line
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Effective Voice of the Customer Process
1. Well-defined ownership of process and
issues
2. Unified data collection
across whole lifecycle
3. Integration of multiple data
sources
4. Visible, granular,
actionable reporting
5. Clear revenue
and profit implications
6. Formal processes for
translating data into actions and
targets
7. Formal systems for
tracking impact
8. Process supported by
company-wide incentives
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• Understand your audience • Proactively establish reliability • Create the economic imperative for action • Package for easy understanding • Provide recommendations that support proactivity !
• Details in Customer Experience 3.0 & Strategic Customer Service Papers on VOC & Applying Technology to CE: – [email protected]
• Follow me on Twitter – Jgoodman888
Summary
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