developing a customer experience vision
TRANSCRIPT
Developing a Customer Experience
VisionRon Ritter and Will Enger
PrincipalMcKinsey & Company
Will EngerAssociate Principal, McKinsey & Company
6 Years of experience with McKinsey & company’s Dallas officeCross-industry experience in customer experience transformations Prior experience in the U.S. ArmyMBA from Univ. of Pennsylvania, B.S. from the United States Military Academy
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Ron RitterPrincipal, McKinsey & Company
17 years of experience with McKinsey & Company in the Miami officeExpert in large scale transformations involving operations and customer experienceServed as Special Assistant to the Secretary of the Air Force, US DoD from 2006 to 2009,Ph.D. from Oxford University, (Rhodes Scholar), B.S. from the University of Miami (FL)
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Your company’s culture drives it’s performance….
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Average Total Return to Shareholders (TRS)Strength of culture Average TRS per year
9
16
26
Average
Strong
Weak
3X Higher TRS scores for companies that have strong cultures vs. who do not
This translates into ~$1.2B difference in value for an average sized company
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…. and most transformations fail to address it
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Only 30% of transformations succeedWhy do 70% fail?
72%
28%
Financial and other obstacles
Employee resistance to change and unsupportive leader behaviors
One organization used culture to drive success
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▪ Security anxiety increases airport crowding, wait times
▪ Increased passenger volume stresses capacity of the facility
▪ Other airports and local attractions raised the bar, changing the frame of reference
20% decline in passenger CSATDouble-digit decline in industry rankings
A challenging operating environment drove decreased customer satisfaction
▪ Cross-stakeholder development of Customer Experience Vision
▪ Rigorous quantification of what matters to passengers to inform aspiration
▪ Governance and ‘test and try’ programs put in place to keep employees engaged
Top 10 industry ranking within 2 years14% improvement in retail revenues
Two –year transformation centered on the passenger experience
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Let’s talk about how they did it©
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McKinsey’s core beliefs on customer experienceHow to: defining the aspiration, creating a shared vision, cascading and reinforcing the messageUse of ‘wow moments’ to reinforce cultureCustomer vision case studies
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Setting the customer experience vision is a critical component of a transformation
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Reinvent customer journeys using digital technologies
Develop a deep understanding of what matters to customers
Use behavioral psychology to manage customer’s expectations
Use customer journeys to empower the frontline
To improve constantly, establish metrics and a governance system
Define a clear customer-experience aspiration and common purpose
CustomerJourneys
1
CEmetric
Journeys experience assessment
Operational KPI Indicators
Organizational and cultural foundati on
Employee feedback
CE measurement pyramid
2
3
4
5
6
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The aspiration and common purpose link the brand strategy directly to front line behaviors
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Common factbase of current state
Brand strategy and value proposition
Aspiration (informed by current state)
Common purpose
Standards for service
Day-to-day employee required behaviors
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What they didInvested two months to build a common passenger fact basePrioritized the most important drivers of passenger satisfactionUnderstood current state of employees from across the ecosystemTook risk and thought big
Understand which customer Journeys matterDecide were CX can competitively differentiate Don’t forget the employee diagnostic
Takeaways
First, the airport defined the aspiration©
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Next, the airport purposefully aligned leadership
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Identify the most influential 60 leaders across the ecosystemDevoted 2 days in person
Everyone was equally heardStayed consistent with the tradition of the brand
Aligned on a one-sentence version of the customer vision
What they did
Get the right leaders in the room and commit the timeGive people safe space to debate, discuss, and emotionally commit Stay simple and authentic
Takeaways
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Finally, the airport cascaded the vision©
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What they did
Leaders must purposefully communicate the visionLink the vision to what individual employees must do differently each dayUse positive reinforcement
TakeawaysCreated four principles to apply the vision to daily operationsDefined observable behaviors that meshed with the visionCreated employee-led training, communication, and recognition teams
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Engineer ‘wow’ moments to supportthe transformation
Health insurance
Utilities
Pay TV
Bank 25.7
Hotel 26.3
Health care providers 28.2
Percent of customers “strongly agreeing” to having an experience that surpassed expectations
1 Defined as customers responding with score of 10
IndustryCustomers “strongly agreeing”1
% of customers CSAT Average Score“Strongly Agree” customers
SOURCE: 2015 McKinsey Cross-Industry Customer Experience Survey, June & July 2015, Question DL1
Industries creating “Wow” moments for customers
14.1
15.7
18.7
B
$$
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9.5
9.6
9.7
9.6
9.6
9.6
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Case example: Financial institution©
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StandardsSecurity: Ensure you peace of mind
Closeness: build an emotional connection
Diligence: give advice and deliver “right first time”
Image: Live our values in all actions
Example employee behaviors
I protect the assets of the bank and its customersI care for the safety of information
I put myself in the other’s positionI take responsibility for all of my customers’ requirementsI always have a positive attitude
I honor my commitments in due time and mannerMy work is always right first time, minimizing errors and being attentive to detail
My actions are consistent with our values: respect, excellence, integrityMy worksite is always neat
Customer experience vision
“We make dreams come true by developing trust-based relationships during the entire lives of our customers”
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Case example: Airport©
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Standards
Safety: Look out for safety and well-being of guests and employees
Comfort: Create a clean space free of physical and mental stress
Ease: Make the experience simple and courteous
Speed: Remove the perception of inefficiency and delay
Example employee behaviors
Remain mindful of surround-ings and stop unsafe behaviors
Pick up trash or report an area that needs attention
Display appropriate body language and use a calm tone of voiceMake eye contact and smile
Stop and proactively offer assistance to next step in the journey
Customer experience vision
“To delight and value each guest with the finest airport experience in the world”
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Create simple behaviors and recognize employees that are doing it right
CLIENT EXAMPLE
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Questions