How to measure customer experience to improve satisfaction and loyalty

Fredrik Abildtrup CEO @ TeleFaction A/S The Return on Behavior Company

Contents
Why manage experiences? Customer Experience Management How to be successful

How to do it

Why manage experiences?

Why focus on customer experiences?

70 90% of w hat happens w i th cu sto m e rs i s d ri n b y h u m a n ve n a tu re , a n d n o th i g to d o w i n th te ch n o l g y o
McKinsey

95% of employees dont fully understand their organizations strategy

Norton/Kaplan Balanced Scorecard

10% increase in customer retention results in a 30% increase in the value of the company
Bain & Co.

Dissatisfied customers whose complaints are taken care of, are more likely to remain loyal, and even become advocates, as those that are just' customers

50% of the people surveyed said that agents failed to answer their questions
Harris

Nearly 70% of consumers said, they had ended a relationship, due to poor customer service alone.
Datamonitor/Ovum 2009

Percentage of companies that

Actions

Source: Gartner Group, 2009, North American Study

The cost of satisfying the customer

Email - $9.53
Co st pe r re so lv ed is su e

Chat - $7.86

Online self service - $6.55

Phone / Call center - $6.17

Sources: Giga, Gartner Group, Forester Research, Nuance

Interactions drives loyalty

With products becoming commoditized and customers demanding more, companies are focusing on delivering superior customer experiences. A 2009 study of over 860 corporate executives revealed that companies that have increased their investment in customer experience management over the past three years report higher customer referral rates and customer satisfaction.
(Strativity Group,

Enterprise managers wear rose-colored glasses

Survey:
Are companies providing an excellent customer experience?

Net Agreement : Customer + 4 , Enterprises + 34 Even though managers think they know how the customer is feeling , we all know differently !

Customer Experience Management

C u sto m e r vs. R e l ti n sh i a o p M anagem ent

CRM to CEM
The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer relationship has been the domain of Customer Relationship Management (CRM). However, CRM strategies and solutions are designed to focus on product, price and enterprise process, with minimal or no focus on customer need and desire. The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want, resulting in the failure of many CRM implementations.

CRM is enterprise-focused and designed to manage customers for maximum efficiency, CEM is a strategy that focuses the operations and processes of a business around the needs of the individual customer which in turn will lead to larger profits with more customers.

Build or destroy profits?

Memorable experiences can lead to customer actions that build, or destroy, profits - Its your choice.

Recommended to a friend or colleague Praised a company representative Purchased more products / services Continued relationship about the same

Pleased Comfortable Appreciated Important Special

Complained to a friend or colleague

ompl ained to a company r epresentative Switched to new supplier / provider Purchased less products / services

Frustrated Let Down Angry Ignored Confused

Customer Experience Management

is the execution of a customer centric business strategy

How to be successful

To get success be SMART

Customer Value
Companies see customer relationship value this way

Pro fi t Sal s e

Li ti e va l e fe m u

S tra te g i fi c t

Customer Value

Customers see it differently..

E m p o w e re d E m p l ye e s o H i h - Q u a l ty g i

H o n e st co m m u n i ti n ca o

R e w a rd s fo r l ya l o ty

Metrics The steering wheel

Customer focus are visulized through the results of the measurements

The customer says that... The customer experienced that...

Translate what you mean with customer satisfaction Operationalize your vision through measurements
And rememeber you get what you measure!

Primary areas to create instant results Customer Satisfaction Cross sales/Up sales Operationalization of strategies and values Retention of customers

Live measurements

Ad - hoc surveys

Postal surveys Chat surveys Enterprise Feedback Management

Meeting surveys

E - mail and web surveys Phone surveys SMS / Text surveys

Follow-up with Action Management

Close the loop

Customer delighted Alert generated Acknowledge performance Possible up/cross sell

Customer Feedback Survey

Customer satisfied No action

Customer dissatisfied Alert generated Case generated

Action Management Resolve issue Close case

People are the drivers

The Top 5 attributes of companies that deliver Constantly Excellent Customer Experiences

1.Well-trained and Helpful Employees 2.Excellent Customer Service 3.High-Quality Goods and Services 4.Friendly and Caring Employees 5.Personal Attention, Reward for Loyalty

The key ingredient: People!

Source: Bob Thompson, CustomerThink Corp.

Redesign the experience

Customer experiences as parameter for success

Every contact with the company gives the customer a chance to evaluate if the experience have been bad / neutral / good

Over time these customer experiences will make a lasting impression of the companys values or the company as a brand Act on the feedback of your customers experiences and reap the benefits of satisfied customers

Use technology to optimize experiences

Assess the quality of customer experiences with telephone, online and contact center monitoring and measurement systems Optimize marketing with analysis and campaign management systems to deliver relevant offers Treat customers as individuals and reward their loyalty Provide tools to help employees be helpful and responsive, including sales coaching and support knowledge bases

Sounds great, but how does it work in real life?

The Return on Behavior process

The Return on Behavior process

You need to have customers evaluate the service delivery immediately after the interaction ...the best solution is real-time customer feedback . Eliminate the gap between service and evaluation Too late to recover poor interactions Enhances believability of results Verbatims: capture caller suggestions for improvement Verbatim comments, In the customers own words (capture the emotion) Identify and highlight employees that delight customers Frequent reporting of customer feedback Daily, Monthly or quarterly, Fact analysis, Annual summary presentation, Benchmark scores with others, Frequency to meet managements needs Receive alert of a dissatisfied customer! Pro-actively prevent market damage, Service Recovery Opportunities, Detect Process and Procedure that are flawed 4% of dissatisfied customers complain, 91% of dissatisfied customers will not do business with you, 80% will tell 10 people 20% will tell 20+ = 100 dissatisfied customers tell 1200 how poor you are!

Return on Behavior

H i h M o n i ri g sco re s g to n C u sto m e r S a ti cti n sfa o

Service quality is not about internal compliance It is about satisfying your customer It is the change in behavior that gives pay-off in terms of customer experiences

About TeleFaction

TeleFaction is a global Voice of the Customer Company offering real-time customized closed loop feedback methodologies.

Our core service is Return on Behavior, a results-driven solution which translates objective customer data into actionable insights.

These insights provide specific action points for management and individuals to adjust behavior in order to secure revenue, retain customers and increase loyalty.

Author information

Fredrik Abildtrup fab@telefaction.com +45 5057 5070

WEB: TeleFaction.com BLOG: ReturnOnBehavior.com

Twitter: twitter.com/TeleFaction Linkedin: linkedin.com/in/fredrikabildtrup