![Page 1: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/1.jpg)
www.beyondphilosophy.com
ROI in the Customer Experience Colin Shaw
Best Selling CE Author
CEO, Beyond Philosophy
![Page 2: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/2.jpg)
www.beyondphilosophy.com
1. Viewer Window 2. Control Panel
GoToWebinar
Example Interface
Webinar Interface Review
Beyond Philosophy © All rights reserved. 2001-2011 2
![Page 3: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/3.jpg)
www.beyondphilosophy.com 3Beyond Philosophy © All rights reserved. 2001-2011
The Beyond Philosophy Perspective
Customer Experience
is all we do!
Thought leadership is
our differentiator
Offices in London,
Atlanta with Partners in
Europe & Asia
Focus on the emotional side
of the Customer ExperienceLinks with
Academia
![Page 4: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/4.jpg)
www.beyondphilosophy.com 4
We are Proud to Have Helped Some Great Organizations…
Beyond Philosophy © All rights reserved. 2001-2011
![Page 5: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/5.jpg)
www.beyondphilosophy.com
Why is this such a challenge….
It’s a religion…
Hearts and Minds, and
people’s understanding of the
Customer Experience are the
root cause of people’s lack of
acceptance…
5Beyond Philosophy © All rights reserved. 2001-2011
![Page 6: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/6.jpg)
www.beyondphilosophy.com 6Beyond Philosophy © All rights reserved. 2001-2011
![Page 7: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/7.jpg)
www.beyondphilosophy.com
When in Rome…
7Beyond Philosophy © All rights reserved. 2001-2011
![Page 8: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/8.jpg)
www.beyondphilosophy.com
The ways of getting to ROI…
General models
Company specific research
Other company case studies
Cost savings
8Beyond Philosophy © All rights reserved. 2001-2011
![Page 9: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/9.jpg)
www.beyondphilosophy.com 9
Source: Watermark Consulting 2010.
Beyond Philosophy © All rights reserved. 2001-2011
![Page 10: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/10.jpg)
www.beyondphilosophy.com
4,700 consumer surveys
Forrester analysis shows that good
customer experience correlates to:Consumers’ willingness to repurchase
Reluctance to switch
Likelihood to recommend firms
Correlation between customer
experience and loyalty increased in
every industry over the last year.
Source: Forrester. February 18th 2009.
Correlation between customer experiences and loyalty of 100 US companies
10Beyond Philosophy © All rights reserved. 2001-2011
![Page 11: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/11.jpg)
www.beyondphilosophy.com 11Beyond Philosophy © All rights reserved. 2001-2011
Case Study:
Enterprise with 2 million customers
Revenue = $200,000,000 per year
Average Revenue per customer = $100 per year
At risk — 55%Decline in wallet
share
Defect — 45%
Poor experience22%
Positiveexperience
78%
Complain2%
Do notcomplain
98%
At risk — 34%Issue not resolved
Defect — 28%
Resolved — 38%440,000customers
431,200customers
2,464 customers$246,400
194,040 customers$19,404,000
2,992 customers$299,200
237,160 customers$23,716,000
8,800customers
Sources: Cherry Tree Research, Bain &
Co., McKinsey, Harvard Business Review
and Gartner
![Page 12: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/12.jpg)
www.beyondphilosophy.com
The ways of getting to ROI…
General models
Company specific research
Other company case studies
Cost savings
12Beyond Philosophy © All rights reserved. 2001-2011
![Page 13: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/13.jpg)
beyondphilosophy.com
Middle East Telecommunications Company
13
Product quality versus
emotional engagement
Beyond Philosophy © All rights reserved. 2001-2011
![Page 14: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/14.jpg)
beyondphilosophy.com
Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers
14
To
p T
en
Relative Magnitude0 +-
Desired by Customer Effect on Value
Beyond Philosophy © All rights reserved. 2001-2011
![Page 15: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/15.jpg)
www.beyondphilosophy.com
The ways of getting to ROI…
General models
Company specific research
Other company case studies
Cost savings
15Beyond Philosophy © All rights reserved. 2001-2011
![Page 16: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/16.jpg)
beyondphilosophy.com 16Beyond Philosophy © All rights reserved. 2001-2011
![Page 17: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/17.jpg)
beyondphilosophy.com 17Beyond Philosophy © All rights reserved. 2001-2011
![Page 18: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/18.jpg)
www.beyondphilosophy.com
Improving Customer Satisfaction:
Memorial Herman Hospital System (MHHS)
18Beyond Philosophy © All rights reserved. 2001-2011
The Context
The Change
The Benefit
•MHHS is a system of 11+ hospitals (3,500 beds) with 20,000 employees•Customer Satisfaction drives a large percentage of government sponsored reimbursement for
hospitals in the USA•This reimbursement is crucial for hospitals to recoup the cost of care to indigent population s for
which they are required to provide service for. •Roughly, every percentage point increase in PSAT above 75% represents $1.4m •MHHS provides more care to indigents than any of its competitors . •A typical Hospital had Patient Satisfaction scores of about 81%.
•Beyond Philosophy redesigned the MHHS experience via Moment Mapping and Emotional Signature and practitioner training
•The end result was a revamp of MHHS’ inpatient and outpatient Caner, Heart & Lung and Emergency Room experiences .
•On average, average Patient satisfaction
scores in the hospitals increased by:
•91% in poor performing hospitals
•12% in great performing hospitals
•This translates to an additional $10m revenue
![Page 19: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/19.jpg)
www.beyondphilosophy.com
What’s Next When You’re on Top of Your Game:
Overbury
19Beyond Philosophy © All rights reserved. 2001-2011
• xxx• xxx
• xxx• xxx
The Benefit
The Change
• As a result the “Customer Experience Vision” initiative was launched based on 3 pillars:• Product – Make it• Process – Make it simple • People – Make it engaging
The Context
• Overbury started their “Perfect delivery” Customer Experience initiative aiming to deliver their projects on time, snag free and delight clients
• Revenues increased by 40% as “perfect delivery” was increased from 24% to 60% in the first year of the project
• In 7 years their revenue increase by 170% and they moved from 4th to 1st in market share
• The fast growth brought some problems:• competition began to copy “perfect delivery”
and was catching up• the perfect delivery of projects got stalled
• The company was on top of its game but was facing the possibility of a downward trend
• To keep up the upward trend they needed to take their customer experience to the next level
•Annual revenue increased by 15%• Increase “perfect Delivery” from 91% to 96%•The Net Promoter Score has increased significantly to reach 70% (one of the highest not only in the sector but also worldwide)
• Beyond Philosophy addressed the formulation of the new Customer Experience strategy by conducting:• Internal research to understand the current
thinking• Quantitative research and analysis to get
customer insights and generate hypothesis• Data analytics to test the hypothesis with
customers and generate statements
![Page 20: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/20.jpg)
www.beyondphilosophy.com
Differentiating in a Commoditied Market:
Comet
20Beyond Philosophy © All rights reserved. 2001-2011
• xxx• xxx
The Benefit
The Change
The Context
• Commoditised market with no differentiation: customer’s perception was that all carry the same range of products, at the same price and same service
• Lack of trust – customers felt a duty of due diligence to shop around
• Poor service – Technicians didn’t engage with customers; Salespersons were paid on commission; they would either pounce on customers, lurk over their shoulder or chat at the till
• Increased “like for like” sales by 3%•Reduced customer complaints by 20%•Levels of trust increased by 10%
• Beyond Philosophy designed a differentiation strategy based on Customer Experience. With that purpose in mind were conducted:• Philosopher’s day workshop as training for
the senior management to get people on top on the right track for the new strategy
• Best Practice Study Tour to get inspiration form enlightened organizations
• Customer Mirrors to identify break points in the experience
• Moment Mapping to design the new experience
• Over the project the client understood that for the customers getting their new TV or gadget was a very emotional experience as well as letting someone into their house
• Some of the game changing ideas that came from this engagement were around creating a “Father Christmas” moment when technicians went to deliver and install the product..
• The store experience was also addressed in 41 pilot stores.
• The initial feedback was excellent and the programmes was rolled out in 200+ stores
![Page 21: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/21.jpg)
www.beyondphilosophy.com
The ways of getting to ROI…
General models
Company research specific
Other company case studies
Cost savings
21Beyond Philosophy © All rights reserved. 2001-2011
![Page 22: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/22.jpg)
www.beyondphilosophy.com
When Product Innovation is Not an Option:
Yorkshire Water
22Beyond Philosophy © All rights reserved. 2001-2011
The Context
• Bottom of the OFWAT (the regulator) Customer Service League Table (being on top of it means you can charge premiums)
• Low customer perceptions (after 1995 water shortage fiasco and managers bonuses scandal)
• Increasing customer expectations• Facing the threat of competition• Toughest pricing review since privatisation in
1989
The Change
• One of the key recommendations was to remove measures such as “call duration” and “calls waiting”, so agents can focus on problem resolution and develop a caring attitude• To close an issue to customer’s
satisfaction on the first call costs £2-8 compared with £60-70 to send an engineer in a van
• Beyond Philosophy facilitated the development of a customer experience via • Workshops with the senior leader to define a
new Customer Experience Vision and Strategy• Training the call centre and field work staff on
how to implement the new initiatives
The Benefit
• £8.5m of cost savings as a direct result of Customer Experience improvements such as:• 40% reduction in written complaints • 20% reduction in repeat calls• Calls closed on first contact > 70% • 50% reduction of unnecessary field jobs• Appointments within 2hrs - 98%
• Improved overall Customer Satisfaction from 53%-91%
• Ranked 1st in OFWAT Customer Service League table (currently is second)
• “Yorkshire Water has turned itself from one of the most ridiculed companies of the late 1990’s to one of the most respected” -Financial Times, December 2002
![Page 23: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/23.jpg)
www.beyondphilosophy.com
Improving the CE can also lead to lower costs:Case Study 1: Major UK Call Centre Cost Issue
23Beyond Philosophy © All rights reserved. 2001-2011
Cost Issue: Customer callbacks
driving costs skyward, CSAT is good
Customer calls to request time
sensitive document
Agent thus responds ―You should
have it within 3-4 days‖.
Agents wanted to be truthful.
75 % of customers call back within 3
days to check on status
Thus, company policy and procedure
stated ―3-4 days‖
Previous (rational) research showed
customer concerned with ―3 days‖
Qualitative Research suggested that
customers were really concerned
with a definitive answer, not ―5 days‖
Result: Call backs drop dramatically;
to 3% from 75% within weeks
However, agents knew from
customers that document often NOT
received within 3-4 days
Actions
• Agents trained on what customers
really wanted
• Script guidelines changed to ―You
will have it within 7 days‖
![Page 24: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/24.jpg)
www.beyondphilosophy.com
Summary…
Four methods for
producing ROI
Remember that this is
about Hearts and
Minds
When in Rome….
24Beyond Philosophy © All rights reserved. 2001-2011
![Page 25: ROI in the Customer Experience - CX Consulting · 2016-04-22 · customer experience via •Workshops with the senior leader to define a new Customer Experience Vision and Strategy](https://reader034.vdocument.in/reader034/viewer/2022042807/5f7a6af8e0542d6a3c0e9db3/html5/thumbnails/25.jpg)
www.beyondphilosophy.com
Questions?
25Beyond Philosophy © All rights reserved. 2001-2011
London Office: 0207-917-1717
Atlanta Office: 1-678-638-6162
www.beyondphilosophy.com