Rick DeLisi's the effortless experience

The Effortless Experience Conquering the New Battleground

for Customer Loyalty

Presentation to:

Nuance Annual Customer Service Summit

RICK DELISI, Co-Author

http://www.executiveboard.com/exbd/sales-service/effortless-experience/index.page?cid=701800000018wLX

© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN

WHAT IS LOYALTY?

■ Repurchase

Q: What % of your customers are loyal TODAY?

■ Increased Spend / Share of Wallet

■ PWoM / NWoM

@CEB_Effortless



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

Q: What do most companies believe they need

to do in order to create greater loyalty?

@CEB_Effortless


HAVE YOU SEEN THIS GIRAFFE?

@CEB_Effortless


THE MOMENT OF “WOW”

A strategy of “delight”

@CEB_Effortless


OUR STUDY IN BRIEF

■ 125,000+ customers surveyed to understand drivers of loyalty

■ 5,000+ customer service reps surveyed to understand

drivers of performance

■ 100+ companies analyzed to understand impact of policies

and processes

■ 3 major findings

@CEB_Effortless


FINDING 1: DELIGHT DOESN’T PAY

Less

Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

• “Delight” increases costs by 10-20%

• “Delight” only happens 16% of the time

@CEB_Effortless


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.

@CEB_Effortless


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


@CEB_Effortless


THE BUSINESS CASE FOR

THE EFFORTLESS EXPERIENCE

Low Effort High Effort

1%

81%


88%

4%


Repurchase

94%

4%

Low-Effort Experience

High-Effort Experience

Overall Disloyalty

9%

96%


Increased Spend/

Share of Wallet

Negative WOM

@CEB_Effortless


CONCLUSION:

What do you want your customers to SAY

following a service interaction?


We used to THINK it was:

Wow, that company really went out of their way

to delight me!

But now we KNOW it is:

Wow, that company really went out of their way to make it so much easier

for me to solve my problem!

LOW Effort Service = HIGH Customer Loyalty

@CEB_Effortless


THE FOUR PILLARS OF

LOW-EFFORT SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness

@CEB_Effortless


THE FOUR PILLARS OF

LOW-EFFORT SERVICE



@CEB_Effortless


WHICH WOULD YOU RATHER USE?

@CEB_Effortless


CUSTOMERS DON’T WANT TO

TALK TO YOU

Company Perception Actual Customer Preference

1. 0x

2.5x

Web Preference

Phone Preference

1. 0x

Web Preference

Phone Preference

1. 0x


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

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

phone channel

Pattern largely holds

across issue types

and demographics

@CEB_Effortless


IT’S NOT ABOUT GETTING THEM TO GO

First Contact Channel

Phone

Web

57.7% of phone callers

first went to the

company’s Website


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IT’S ABOUT GETTING THEM TO STAY

First Contact Channel Concurrent Channel Usage

Phone

Web

Just Phone

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


@CEB_Effortless


CUSTOMER CHOICE IS NOT THE ANSWER

Conventional Wisdom:

∞ × ∞ We’ve got to come up with a way to allow:

every customer to solve

every issue in

every channel.

@CEB_Effortless


CUSTOMER CHOICE IS NOT THE ANSWER

84%

Value EASE Over Choice

■ Want fast resolution without

bouncing around channels

■ Prioritize low effort over

channel choice

16%

Value CHOICE Over Ease

■ Want issue resolved in

their preferred channel

■ Prioritize channel choice

above all else


The vast majority of customers don’t CARE

what channel they have to use, they just want

the problem to go away. Now.

GUIDE them to the channel that is fastest and easiest.

@CEB_Effortless


GUIDANCE IN ACTION: The Virtual Concierge

Source: Amazon.com.

@CEB_Effortless


MYTHS ... BUSTED

Most think... The reality is...

customers want to

call for service.

most customers prefer to

self-serve.

the big challenge is getting customers

to try self-service

it’s hard getting customers to stay in

self-service.

customers demand more choice

in self-service.

customers demand simplicity and

guidance.


@CEB_Effortless


THE FOUR PILLARS OF LOW-EFFORT

SERVICE



@CEB_Effortless


“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


Unnecessary callbacks = HIGH customer effort

@CEB_Effortless


WHY DO CUSTOMERS CALL BACK?

54%

Implicit Issues Explicit Issues

■ Staff mistakes

■ System or process failures

■ Adjacent issues

■ Experience issues

Drivers of

Callbacks


46%

@CEB_Effortless


ONE STEP AHEAD

@CEB_Effortless


THE FOUR PILLARS OF LOW-EFFORT

SERVICE



@CEB_Effortless


THE CUSTOMER EFFORT SCORE 2.0

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

@CEB_Effortless


??

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%

@CEB_Effortless


For more information:

www.effortless-experience.com

@CEB_Effortless




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Rick DeLisi's the effortless experience