peter strohkorb consulting on customer centricity and experience

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© 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved

“The Truths and Myths of Customer Experience”

by Peter Strohkorb

Smarketing® Expert, Speaker, Author, Mentor

@pstrohkorb

www.peterstrohkorbconsulting.com

The Benefits of Customer Centricity2

More Sales, Profit

Better CX

Higher Calibre Talent

Higher Productivity/Less Waste

Technology ROI


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Collaborative

Work Environment



CX

Truth:

Selling has

changed…

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The Buyer’s Journey

Over 67% of decision making is

completed, and:

“The buyers know more about

our product than our reps.”

Online / Marketing / Advertising Offline / Sales

Smarketing™© 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved

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Gartner Says…

5


In 2016, 89% of marketers expect to be using customer experience to beat their competitors.

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CX Myth:

CX is Easy…

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from around the world…

CX

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80% of companies say they deliver

"superior" customer service

source: Lee Resources, IBM

8% of customers think these same companies

deliver "superior" customer service

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“70% of buying experiences are based on how the

customer feels they are being treated.”

source: McKinsey

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“A typical business hears from

4% of its dissatisfied customers.”

source: “Understanding Customers” by Ruby Newell-Legner

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1. “Make me feel like I am in charge”

2. “Keep your promises”

3. “Don’t give me problems”

4. “Show that you care”

5. “Be equitable”

6. “Be clear, no sneaky tricks, no surprises”

7. “Be quick to act or react”

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The 7 Typical Experiences that Customers Expect

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The Customer Experience Management Matrix

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Business Systems Sales Marketing Service Delivery Back Office Operations

Brand Promise People/Processes/Technology People/Processes/Technology People/Processes/Technology People/Processes/Technology

Make me feel like I am in charge

Keep your promises

No problems

Show You Care

Be equitable

Be clear, no sneaky tricks, no surprises

Be quick to (re)act

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CX

Truth:

CX has

Financial Impact

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P&L Performance ImpactBase Case

P&L

Reduce

Direct

Selling

Expenses

by 5%

Increase

Sales

Volume by

5%

Raise Price

by 5%

Sales Revenue $100.00 $100.00 $105.00 $105.00

Cost of Goods Sold (COGS) $60.00 $60.00 $63.00 $60.00

Gross Profit $40.00 $40.00 $42.00 $45.00

Fixed Costs $13.00 $13.00 $13.00 $13.00

General Admin Costs $11.00 $11.00 $11.00 $11.00

Direct Selling Expenses $6.00 $5.70 $6.00 $6.00

Profit Before Tax (PBT) in $ $10.00 $10.30 $12.00 $15.00

Profit Before Tax (PBT) Increase from Base Case in $ $0.00 $0.30 $2.00 $5.00

Profit Before Tax (PBT) Increase from Base Case in % 0.0% 3.0% 20.0% 50.0%

* Managing Top-Line Computer Applications"; Stephen P. Hindman & John J. Sviokla;

Harvard Business School Publication # 9-192-098, rev 7/9/92

What are the Financial Benefits ?

14

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360o Customer Focus

Sales helps Marketing,

Marketing helps Sales:

Everybody wins

Including the customer !

16


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Get Your People Ready First


CX Recommendations

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1. Benchmark your teams’ CX readiness.

2. Seek feedback from your customers,

all along their life cycle.

3. Don’t stop, it’s not a one-off process,

it’s a journey.

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What’s In It For You ?

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CX future proofs your

business,

with minimal disruption and

utilising your existing

resources.

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For a copy of the slides

text me now on

0411 865 301


Questions ?

@pstrohkorb