Key Pillars for Delivering Effortless Customer Service

Transform your Customer Service

The Key Pillars for Delivering Effortless

Customer Service in your organisation

Rufino Chiong

Managing Director, CEB

The Effortless Experience Conquering the New Battleground

for Customer Loyalty

Rufino Chiong

Managing Director, CEB

effortless-experience.com

HAVE YOU SEEN THIS GIRAFFE?

THE MOMENT OF “WOW”

THREE QUESTIONS THAT GUIDED

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

What are the things

customer service

can do to

DRIVE loyalty?

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

What are the things

customer service

can do to

DRIVE loyalty?

How can service

improve loyalty

while still

REDUCING

operating costs?

WHAT IS LOYALTY?

■ Repurchase

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

■ Word of Mouth

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

■ Word of Mouth

OUR STUDY IN BRIEF

■ 125,000+ customers

OUR STUDY IN BRIEF

■ 5,000+ customer service reps

OUR STUDY IN BRIEF

■ 100+ companies

OUR STUDY IN BRIEF

■ 100+ companies

3 major findings

FINDING 1: DELIGHT DOESN’T PAY

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

• “Delight” only happens 16% of the time

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

• “Delight” only happens 16% of the time

• “Delight” increases operating costs 10-20%

PROMISES, PROMISES

Source: Gneezy, A. and Epley N. (2014). Worth Keeping but Not Exceeding: Asymmetric Consequences of

Breaking Versus Exceeding Promises. Social Psychological and Personality Science. May 8. 1-9.

PROMISES, PROMISES

When [companies, friends, or coworkers] expend extra effort in order to exceed promises, their effort appears likely to be overlooked.” Gneezy & Epley

Source: Gneezy, A. and Epley N. (2014). Worth Keeping but Not Exceeding: Asymmetric Consequences of

Breaking Versus Exceeding Promises. Social Psychological and Personality Science. May 8. 1-9.

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

1. 00x

More Loyal

More Disloyal

Source: CEB analysis.

1. 00x

Drivers of Disloyalty

More Loyal

More Disloyal

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Channel switching

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

■ Repeating information

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

■ Robotic service

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

■ Robotic service

■ Policies and processes customers have to endure

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

■ Robotic service

■ Policies and processes customers have to endure

■ “Hassle factor”

1. 00x

More Loyal

More Disloyal

■ Repeat contacts

■ Transfers

■ Robotic service

■ Policies and processes

customers have to endure

■ “Hassle factor”

Customer Effort

FINDING 3: MITIGATE DISLOYALTY

BY REDUCING EFFORT Customer Service Impact on Loyalty

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

Repurchase

Increased Spend/

Share of Wallet

Repurchase

Increased Spend/

Share of Wallet

Negative WOM

Repurchase

Low-Effort Experience

High-Effort Experience

Overall Disloyalty

Increased Spend/

Share of Wallet

Negative WOM

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Channel Stickiness

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Next Issue Avoidance Channel Stickiness

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Experience Engineering

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Frontline Control Experience Engineering

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

WHICH WOULD YOU RATHER USE?

YOUR CUSTOMERS DON’T WANT TO TALK TO YOU

Company Perception

Web Preference

Phone Preference

YOUR CUSTOMERS DON’T WANT TO TALK TO YOU

Company Perception Actual Customer Preference

Web Preference

Phone Preference

■ 3-5 years ago, 66% of customers primarily relied on the phone

■Today, only 28% of customers report that they primarily rely on the phone

Pattern largely holds across issue types and demographics

1.0X 1.0X

Web Preference

Phone Preference

First Contact Channel

57.7% of phone callers first went to the company’s Website

BUT THEY’RE STILL CALLING

First Contact Channel Concurrent Channel Usage

Web and Phone

35.5% of phone callers were on the company’s Website while talking to a representative

57.7% of phone callers first went to the company’s Website

BUT THEY’RE STILL CALLING

CUSTOMER CHOICE IS NOT THE ANSWER

Value CHOICE Over Ease

• Want issue resolved in their preferred channel

• Prioritize channel choice above all else

Value EASE Over Choice

Value CHOICE Over Ease

• Want issue resolved in their preferred channel

• Prioritize channel choice above all else

• Want fast resolution without bouncing around channels

• Prioritize low effort over channel choice

GUIDANCE IN ACTION: The Virtual Concierge

Source: Amazon.com.

I didn’t have time to write you a short letter…so, I wrote you a long one instead.” -Mark Twain

THE FOUR PILLARS OF LOW-EFFORT

SERVICE

THE WORST QUESTION A REP CAN ASK

“Have I fully resolved

your issue today?”

Companies think 76.7% of customer issues are resolved

in one contact

Companies think 76.7% of customer issues are resolved

in one contact

But customers claim only 40% of their issues are resolved in one contact

WHY DO CUSTOMERS CALL BACK?

Drivers of

Callbacks

Explicit Issues

■ Human error

■ System or process issues

Drivers of

Callbacks

Implicit Issues Explicit Issues

■ Adjacent issues

■ Experience issues

Drivers of

Callbacks

■ Human error

Implicit Issues Explicit Issues

■ Adjacent issues

■ Experience issues

Drivers of

Callbacks

54% 46%

■ Human error

ONE STEP AHEAD

THE CUSTOMER EFFORT SCORE 2.0

…and a way for service functions to positively impact Net Promoter Score®

A great way for service functions to

detect potential disloyalty…

Strongly

Disagree

Disagree Somewhat

Disagree

Neither

Agree Nor

Disagree

Somewhat

Agree Strongly

The company made it

easy for me to handle

my issue

Overall Disloyalty Percent of Detractors

High Effort Low Effort High Effort Low Effort Source: CEB analysis.

To get a copy of this presentation,

email us at

effortless@executiveboard.com

To learn more about reducing

customer effort, visit us online at

@CEB_Effortless

www.youtube.com/CEB

The Effortless Experience from CEB

Want to find out more?

• If you are already a Salesforce customer, then please speak to your AE

for follow up

• Or visit our Salesforce1 Service Cloud page: http://bit.ly/1g8pJut

• Webinar recording and slides to follow by email

• View previous webinar recordings and sign up for upcoming sessions:

http://www.salesforce.com/uk/events/webinars/

• Service Cloud webinar – 24th September:

- Customer speaker – Sarah Metcalfe, Customer Service Manager,

SureFlap Ltd

Thank you!

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