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Kinesis CEM, LLC
Business Case and Implications for Consistency in the Customer Experience
http://www.kinesis-cem.com/Insights-Consistency-and-the-Customer-Experience.shtml
Eric Larse is co-founder of Seattle-based Kinesis, which helps companies plan and execute their customer experience strategies. Mr. Larse can be reached at [email protected].
http://www.kinesis-cem.com
kinesis-cem.com 206.285.2900 [email protected]
Business Case & Implicationsfor Consistency in theCustomer Experience
McDonalds Hamburgers:- Marginal Quality, yet
- Hundreds of Billions Sold
Why?
Consistency
Humans are wired to value consistency.
Introduction
Our species evolved in a hostile unpredictable
environment.
As a result, we are hard wired to value consistency,
even in our more stable modern environment.
Why We Value Consistency
Customer Loyalty Built on Foundation of
Dependable, Consistent Quality Delivery
Business Case for Consistency
Assume:- The Average Customer Has 5 Interactions Per Year
-95% Satisfaction Rate
Under These Assumptions:- Average Customer Has a 25% Probability of Negative Experience in 1 Year
-All Customers Will Have Negative Experience in 4 Years!
Business Case for Consistency
Customers Make No Distinction
Between Channels
Inter-Channel Consistency
Consistency = Quality
In a Gallup Study:
1,100 Retail StoresMost Consistent Stores Had 3.5 Stronger Customer Satisfaction1
Intra-Channel Consistency
1 Why Consistency Is the Key to Profitable Customer Service, 2006, gallup.com/businessjournal/23953/why-consistency-key-profitable-customer-service.aspx. Accessed 2 Nov. 2017.
Consider Kinesis’ Research in Banking Context:
Intra-Channel Consistency
60%
65%
70%
75%
80%
85%
90%
95%
100%
0% 10% 20% 30%B
ran
ch C
ust
om
er S
atis
fact
ion
Standard Deviation of Satisfaction by Branch
Consistency Equals Satisfaction
Branch customer satisfaction declines as variation in satisfaction increases.
Equal Treatment of Customers Based on
DemographicsDemographic ConsistencyOvert Discrimination
Disparate Impact
Disparate Treatment
Inconsistency is prima facie evidence of
ineffective management.
Implications for Management
How to Be Consistent:
1) Manage inconsistency at its cause
2) Write a clear mission statement
3) Use appropriate analytics
4) Don’t silo analytics by channel
5) Meet regularly with employees to share problems and potential solutions
6) Focus on customer journey
Implications for Management
Top-Line Averages Mislead
Implications for Customer Experience Researchers
Control Charts
Implications for Customer Experience Researchers
83%
84%
82%
83%83%
85%
85%
77%
79%
81%
83%
85%
87%
89%
May June July Aug Sept Oct Nov
Control Chart
Where:
x = Grand Mean of the score
n = Mean sample size
(number of shops)
SD = Mean standard deviation
Voice of the Customer Table
Implications for Customer Experience Researchers
Critical Incident Technique
Implications for Customer Experience Researchers
Qualitative Research Tool
Identifies:- Critical Incidents (Moments of Truth)-What Happened- How the Customer Felt- How the Customer Responded- Identify Recovery Strategies
Matched-Pair Testing
Implications for Customer Experience Researchers
Use pairs of mystery shoppers to test for disparate treatment based
on prohibited basis.
