the dsv customer experience programme - cxforum · • contract logistics services worldwide •...

The DSV Customer Experience Programme- Our journey towards reduced customer churn

CX ForumOctober 2018, London

2 | CX Forum, London October 2018

Personal journey within CX - highlights A closed-loop experience

2003 2008 2013 2018


Three key take aways from this session

Implementing a closed-loop Global CX programme – bottom up

Ensure local adoption of the CX programme

Focus on the $-factor

Moving bottom-up


Three product divisions working together to support the entire supply chain of our customers

DSV Air & Sea

• Road freight services in Europe, North America and Africa

• More than 20,000 trucks on the road every day

• Groupage and LTL/FTL services

• Special competencies in key industries, e.g. automotive, retail

• Access to all markets through our global network

• Annual ocean freight volume of more than 1.3 million TEU

• Annual airfreight volume of close to 600,000 tonnes

• FCL/LCL and project transports

• Special competencies in key industries e.g. automotive, renewable energy

• Contract logistics services worldwide

• 400 logistics facilities – a total of 5 million m2

• Special competences in key industries, e.g. automotive, healthcare, consumer products

• Solutions for E-commerce

DSV Road DSV Solutions


30,8

22,6

17,8

13,5

11,4

10,4

8,0

7,0

6,9

6,8

6,8

6,6

5,8

5,6

4,7

4,5

4,2

4,1

4,0

3,9

DHL Logistics (DE)

Kuehne + Nagel (CH)

DB Schenker (DE)

C. H. Robinson (US)

(DK)

XPO Logistics (US)

UPS (US)

CEVA Logistics (NL)

Expeditors (US)

J. B. Hunt (US)

Dachser (DE)

Sinotrans (CN)

SNCF Geodis (FR)

Panalpina (CH)

Kintetsu (JP)

Gefco (FR)

Yusen Logistics (JP)

Rhenus & Co. (DE)

Hub Group (US)

Agility Logistics (KW)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Competitive landscape – consolidation is on-going Global top 20 freight forwarders based on 2017 revenue (billion USD)

Source: Journal of Commerce, April 2018, DSV estimates

• The market is

fragmented and DSV’s

market share is ~ 2%

• It is estimated that the

top 20 companies

control 30% of the total

freight forwarding

market

• The market is

fragmented and DSV’s

market share is ~ 2%

• It is estimated that the

top 20 companies

control 30% of the total

freight forwarding

market


Challenge driven by acknowledging a need for improved customer retention and behaviour

• Growth potential

• Increase customer retention

• Improve customer-centric behaviour

• At all levels in the organisation


The CX Programme supports the DSV Strategy

�


Global enterprise closed-loop CX program – defined at three different organisational levels

Relational /Customer

Country

Global

Aims for the largest country challenge linked to churn• Country challenges / opportunities• Mid/long term solution – country strategic plans• Semi complex / cross functional• Requires some effort to address

Aims for the largest individual customer challenge linked to churn• Immediate customer follow-up• 1:1 effort• Owned locally through the CX Programme• Anchored in the business with no add headcount

Aims for the largest global business challenge linked to churn• Global business challenges / opportunities• Long term solution – Global Strategy input• Complex / Cross functional• Will lead to- or support an existing global project


Pre-launch(6 week before go-live)

• Intro/mobilize

• Roles/responsiblities

• Pre-launch local task

• MaritzCX configuring

• Local on-boardingworkshop

• Adoption• eLearning of

MaritzCX• Communication• Go-live test

Go-live(At go-live)

• Surveys out twice per week

• Weekly ”CARE” calls– first four week

• First time experience

• Customer story

• MaritzCX dashboards

Post-launch(1 month after go-live)

• Monthly CX updates

• Best practice sharingsessions

• Internalcommunication

• Customer cases

• CX tool box

CX programme roll-out template to cater for fast implementation – yet being close to the organisation


The potential of our CX Programme became evident from the very beginning


Regularly activating the CEO as sponsor “Put your customers first – and go the extra mile”

Link to CEO blog:

http://dsvcentral.dsv.com/news/Pages/default.aspx

Jens Bjorn AndersenCEODSV Group


Frequent internal visibility is needed from sponsor and ”programme promoters”

“Recently, I received an email from a business partner who was very impressed

with our personal follow-up on what he thought was a routine sign-up for a newsletter. Within ten minutes of

subscription, his phone rang: DSV calling to find out if the company had any

transport needs? He wrote me that it was one of the most efficient and charming

sales efforts he had ever encountered. In my latest update, I was the one who

couldn’t stop smiling (still smiling btw); this time, it was the business partner who

was smiling.”

“We were already suffering from some change fatigue locally, but this was by far the most easy to implement project thanks to the Global team”JurkkaCountry Sales DirectorDSV Finland

"We actually thought that our customer relationships were healthy and that we had a solid base for organic growth. But we quickly learned that one of our largest customers saw things differently,“

MiroslavCountry Sales Director DSV Lithuania


Our customers’ purchase behavior indicate potential for growing our business through increase in NPS

12 months NPS 12 months

Turnover Turnover

Index

14

Index

100

Growth of avg. DSV

customers*

Index

86

Index

200

Source: CXP June 2014 – June 2015. N = 4.174, differences are significant at CI = 99%. * Avg customers in the CXP

∆


The Customer closed-loop dialogue to reduce churn and improve share of wallet

ACTION

4

Appropriate actions depending on customer type, feedback and other

dataDSV

Account Owner

Customer ALERT

3Customer response

case created

ESCALATIONImmediate Manager

6

Customer

1 Survey invitation via e-mail

Customer answer into:1. MaritzCX

2. Salesforce (via standard app)

2

FOLLOW-UP48 hours

5 days

5


Increase in customer loyalty due to the follow-up activitiesPeople and their behaviour makes the difference – not the numbers

• Hypothesis: The customer follow-up improves NPS going forward

• “High performing group” –overall loyalty index increased to 103

• Shift in customer loyalty levels based on frontline behaviour

• NPS gap of +25 points

• 6 out of 10 customersreceived follow-up….back then

Source: CSP June 2014-March 2015. *Difference is significant at CI = 99%

CLOSEDFOLLOW-UP

NOT COMPLETEDNO

FOLLOW-UP

120 95 98

61%N=296

25%N=120

14%N=66

NPS

DistributionNo. of responses

Index

100N=482

First surveyresponse

Second surveyresponse

Index

110


Customer case - fast follow-up secured 40% more business within same week of replying

”Good service, competent staff and good geographical coverage”

Karen SøgaardKarema Food

Denmark RoadTurnover: DKK 1.000.000April 2015

PROMOTER (9)

Follow-up dialogue with Karen:

• Thanked Karen for the positive feedback and probed for business

• Domestic business of DKK 400.000 landed –increase of 40%

• Follow-up and new agreement done within one week after survey response


Customer case - follow-up revealed a need simple need for self-service

Follow-up dialogue with Bjarne:

• Bjarne was in the processof finding a new supplier

• Call was done and a meeting schedule

• Plan for on-boardedcustomer to online solution agreed

” No reactionfrom our Sales Consultant when we ask a meeting”

Bjarne KraghFr. Petersen

Maskinfabrik A/SDenmark RoadTurnover: DKK 100.000

DETRACTOR (3)


Anchoring the programme at the country strategic level


Country

Global

Aims for the largest country challenge linked to churn• Country challenges / opportunities• Mid/long term solution – country strategic plans• Semi complex / cross functional• Requires some effort to address

Aims for the largest individual customer challenge linked to churn• Immediate customer follow-up• 1:1 effort• Owned locally through the CX Programme• Anchored in the business with no add headcount

Aims for the largest global business challenge linked to churn• Global business challenges / opportunities• Long term solution – Global Strategy input• Complex / Cross functional• Will lead to- or support an existing global project


Monthly dashboards (part of CXP)

Customer Insights reports (part of CXP)

NPS in Country Managers Scorecard

Country deep-dives*

Customer Defection Forecast*

Customer Service framework / CRM for Customer Service*

MAKE IT COUNT - summaryTool box - Customer Experience Team

* Per country request


Xx – VOICE OF THE CUSTOMER……………………………………….are still the key improvement areas

37%of all customers' comments …….. with a majority of feedback being negative

30%of all customers' comments directed …… with equal amounts of negative and positive

feedback

8%of all customers' comments directed to ………with a majority of feedback being negative

34%

66%

48%

52%

DELIVERY/SERVICE

41%

58%

PRICING/RATES

GENERAL

STAFF FOLLOW-UPS

STAFF ATTITUDE

COMMUNICATION

SPEED

SCHEDULE

RELIABILITY

GENERAL

OTHER

DISCOUNTS

DETENTION/DEMURRAGE…

GENERAL

Negative sentiments Positive sentiments

EASE OF MAKINGCONTACT

GENERAL

RESPONSIVENESS

INFORMINGCUSTOMERS OF

CHANGE

“General” refers to positive comments

about a satisfaction to xx…….

“xxxxx” refers to xxxx

“General” refers to both positive and

negative comments about ……..which are ……..

Other negative comment are about ……when requested by customers


Anchoring the programme at the country strategic level


Country

Global

Global initiatives:

• Customer Service re-vitalization

• Advanced analytics prioritized(several initiatives running)

• “Early Warning” system to be implemented

• CX as part of Executive Leadership


CX Programme - Do’s and don’ts

• Tap into the company DNA

• Create the financial link to NPS

• Find your ”allies” and turn theminto your ”CX programme promoters”

• KPIs on behaviour – then NPS and $ will follow

• Visibility – at all levels

• Be patient – yet persistent

• Team composition

• Avoid early discussions on ROI – it is a journey

• Implementing CX top-down?Make sure that you don’t run anybody over internally – they areyour customers

• NPS targets can lead to wrongbehavioural change

• Carefully consider ”claiming fame”


Thanks for your attention

Anders Normann

CX Director

Denmark

Hanne Oesterskov

CX Lead

Denmark

Grzegorz Augustynek

Analyst

Poland

Pia Elmue

Senior Analyst

Denmark

The DSV CX team


The DSV share price development 2008 - 2018

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CXP Launched

Danish CEO of the year2016, 2017 & 2018

the dsv customer experience programme - cxforum · • contract logistics services worldwide •...

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