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Transform your Customer Service The Key Pillars for Delivering Effortless Customer Service in your organisation Rufino Chiong Managing Director, CEB

Key Pillars for Delivering Effortless Customer Service

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Check out these slides from our recent webinar with Rufino Chiong, MD from CEB, who shared some of the findings from CEB's research into the key pillars for delivering effortless customer service, as well as explaining how a company’s ability to deliver on basic promises and solve day-to-day problems drives customer loyalty. To access the recording from the webinar, please go to: https://www.salesforce.com/uk/events/details/webinar-service-23-07-2014/?d=70130000000hbQa

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Page 1: 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

Page 2: Key Pillars for Delivering Effortless Customer Service

The Effortless Experience Conquering the New Battleground

for Customer Loyalty

Rufino Chiong

Managing Director, CEB

Page 3: Key Pillars for Delivering Effortless Customer Service

© 2014 The Corporate Executive Board Company. All Rights Reserved.

effortless-experience.com

HAVE YOU SEEN THIS GIRAFFE?

Page 4: Key Pillars for Delivering Effortless Customer Service

THE MOMENT OF “WOW”

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 5: Key Pillars for Delivering Effortless Customer Service

THREE QUESTIONS THAT GUIDED

OUR RESEARCH

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 6: Key Pillars for Delivering Effortless Customer Service

THREE QUESTIONS THAT GUIDED

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

1

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 7: Key Pillars for Delivering Effortless Customer Service

THREE QUESTIONS THAT GUIDED

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

1 2

What are the things

customer service

can do to

DRIVE loyalty?

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 8: Key Pillars for Delivering Effortless Customer Service

THREE QUESTIONS THAT GUIDED

OUR RESEARCH

What impact DO

customer service

interactions have

on a customer’s

future loyalty?

1

What are the things

customer service

can do to

DRIVE loyalty?

2

How can service

improve loyalty

while still

REDUCING

operating costs?

3

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 9: Key Pillars for Delivering Effortless Customer Service

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 10: Key Pillars for Delivering Effortless Customer Service

WHAT IS LOYALTY?

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 11: Key Pillars for Delivering Effortless Customer Service

WHAT IS LOYALTY?

■ Repurchase

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 12: Key Pillars for Delivering Effortless Customer Service

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 13: Key Pillars for Delivering Effortless Customer Service

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

■ Word of Mouth

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 14: Key Pillars for Delivering Effortless Customer Service

WHAT IS LOYALTY?

■ Repurchase

■ Share of Wallet

■ Word of Mouth

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 15: Key Pillars for Delivering Effortless Customer Service

OUR STUDY IN BRIEF

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 16: Key Pillars for Delivering Effortless Customer Service

OUR STUDY IN BRIEF

■ 125,000+ customers

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 17: Key Pillars for Delivering Effortless Customer Service

OUR STUDY IN BRIEF

■ 125,000+ customers

■ 5,000+ customer service reps

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 18: Key Pillars for Delivering Effortless Customer Service

OUR STUDY IN BRIEF

■ 125,000+ customers

■ 5,000+ customer service reps

■ 100+ companies

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 19: Key Pillars for Delivering Effortless Customer Service

OUR STUDY IN BRIEF

■ 125,000+ customers

■ 5,000+ customer service reps

■ 100+ companies

3 major findings

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 20: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 21: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 22: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 23: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 24: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

• “Delight” only happens 16% of the time

effortless-experience.com

© 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 25: Key Pillars for Delivering Effortless Customer Service

FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

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%

effortless-experience.com

© 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 26: Key Pillars for Delivering Effortless Customer Service

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.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 27: Key Pillars for Delivering Effortless Customer Service

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.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 28: Key Pillars for Delivering Effortless Customer Service

FINDING 2: SERVICE DRIVES DISLOYALTY

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 29: Key Pillars for Delivering Effortless Customer Service

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

1. 00x

3.97x

More Loyal

More Disloyal

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 30: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

Drivers of Disloyalty

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

More Loyal

More Disloyal

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 31: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 32: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 33: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 34: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

■ Repeating information

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 35: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

■ Repeating information

■ Robotic service

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 36: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

■ Repeating information

■ Robotic service

■ Policies and processes customers have to endure

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 37: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

■ Repeating information

■ Robotic service

■ Policies and processes customers have to endure

■ “Hassle factor”

FINDING 2: SERVICE DRIVES DISLOYALTY

Customer Service Impact on Loyalty

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 38: Key Pillars for Delivering Effortless Customer Service

1. 00x

3.97x

More Loyal

More Disloyal

Drivers of Disloyalty

■ Repeat contacts

■ Channel switching

■ Transfers

■ Repeating information

■ 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

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 39: Key Pillars for Delivering Effortless Customer Service

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 40: Key Pillars for Delivering Effortless Customer Service

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

Repurchase

94%

4%

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 41: Key Pillars for Delivering Effortless Customer Service

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

88%

4%

Low Effort High Effort

Repurchase

94%

4%

Source: CEB analysis.

Increased Spend/

Share of Wallet

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 42: Key Pillars for Delivering Effortless Customer Service

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

1%

81%

Low Effort High Effort

88%

4%

Low Effort High Effort

Repurchase

94%

4%

Source: CEB analysis.

Increased Spend/

Share of Wallet

Negative WOM

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 43: Key Pillars for Delivering Effortless Customer Service

THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

1%

81%

Low Effort High Effort

88%

4%

Low Effort High Effort

Repurchase

94%

4%

Low-Effort Experience

High-Effort Experience

Overall Disloyalty

9%

96%

Source: CEB analysis.

Increased Spend/

Share of Wallet

Negative WOM

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 44: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

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Page 45: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Channel Stickiness

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Page 46: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Next Issue Avoidance Channel Stickiness

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Page 47: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Experience Engineering

Next Issue Avoidance Channel Stickiness

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 48: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 49: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness

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Page 50: Key Pillars for Delivering Effortless Customer Service

WHICH WOULD YOU RATHER USE?

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Page 51: Key Pillars for Delivering Effortless Customer Service

YOUR CUSTOMERS DON’T WANT TO TALK TO YOU

Company Perception

Web Preference

Phone Preference

1.0X

2.5X

effortless-experience.com

Source: CEB analysis.

© 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 52: Key Pillars for Delivering Effortless Customer Service

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

2.5X

1.0X 1.0X

Web Preference

Phone Preference

effortless-experience.com

Source: CEB analysis.

© 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 53: Key Pillars for Delivering Effortless Customer Service

First Contact Channel

Phone

Web

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

Source: CEB analysis.

BUT THEY’RE STILL CALLING

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 54: Key Pillars for Delivering Effortless Customer Service

First Contact Channel Concurrent Channel Usage

Phone

Web

Phone

Only

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

Source: CEB analysis.

BUT THEY’RE STILL CALLING

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 55: Key Pillars for Delivering Effortless Customer Service

CUSTOMER CHOICE IS NOT THE ANSWER

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Page 56: Key Pillars for Delivering Effortless Customer Service

CUSTOMER CHOICE IS NOT THE ANSWER

16%

Value CHOICE Over Ease

Source: CEB analysis.

• Want issue resolved in their preferred channel

• Prioritize channel choice above all else

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 57: Key Pillars for Delivering Effortless Customer Service

CUSTOMER CHOICE IS NOT THE ANSWER

84%

Value EASE Over Choice

16%

Value CHOICE Over Ease

Source: CEB analysis.

• 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

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 58: Key Pillars for Delivering Effortless Customer Service

GUIDANCE IN ACTION: The Virtual Concierge

Source: Amazon.com.

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Page 59: Key Pillars for Delivering Effortless Customer Service

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

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 60: Key Pillars for Delivering Effortless Customer Service

THE FOUR PILLARS OF LOW-EFFORT

SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness

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Page 61: Key Pillars for Delivering Effortless Customer Service

THE WORST QUESTION A REP CAN ASK

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Page 62: Key Pillars for Delivering Effortless Customer Service

“Have I fully resolved

your issue today?”

THE WORST QUESTION A REP CAN ASK

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 63: Key Pillars for Delivering Effortless Customer Service

“Have I fully resolved

your issue today?”

THE WORST QUESTION A REP CAN ASK

Companies think 76.7% of customer issues are resolved

in one contact

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 64: Key Pillars for Delivering Effortless Customer Service

“Have I fully resolved

your issue today?”

THE WORST QUESTION A REP CAN ASK

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

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 65: Key Pillars for Delivering Effortless Customer Service

WHY DO CUSTOMERS CALL BACK?

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 66: Key Pillars for Delivering Effortless Customer Service

WHY DO CUSTOMERS CALL BACK?

Drivers of

Callbacks

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Page 67: Key Pillars for Delivering Effortless Customer Service

WHY DO CUSTOMERS CALL BACK?

Explicit Issues

■ Human error

■ System or process issues

Drivers of

Callbacks

Source: CEB analysis.

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 68: Key Pillars for Delivering Effortless Customer Service

WHY DO CUSTOMERS CALL BACK?

Implicit Issues Explicit Issues

■ Adjacent issues

■ Experience issues

Drivers of

Callbacks

Source: CEB analysis.

■ Human error

■ System or process issues

effortless-experience.com © 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 69: Key Pillars for Delivering Effortless Customer Service

WHY DO CUSTOMERS CALL BACK?

Implicit Issues Explicit Issues

■ Adjacent issues

■ Experience issues

Drivers of

Callbacks

Source: CEB analysis.

54% 46%

■ Human error

■ System or process issues

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Page 70: Key Pillars for Delivering Effortless Customer Service

ONE STEP AHEAD

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Page 71: Key Pillars for Delivering Effortless Customer Service

4%

67%

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

Agree Strongly

Agree

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.

9%

96%

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Page 72: Key Pillars for Delivering Effortless Customer Service

To get a copy of this presentation,

email us at

[email protected]

To learn more about reducing

customer effort, visit us online at

effortless-experience.com

@CEB_Effortless

www.youtube.com/CEB

The Effortless Experience from CEB

© 2014 The Corporate Executive Board Company. All Rights Reserved.

Page 73: Key Pillars for Delivering Effortless Customer Service

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

Page 74: Key Pillars for Delivering Effortless Customer Service

Thank you!