BOOSTING SALES & PROFITS using CUSTOMER EXPERIENCE · 2019-06-24 · 1. Customers 2nd –Your People 1st 2. Hiring Criteria - 49% Skills –51% Hospitality Quotient • Kindness •

© copyright. Chris Daffy 2018. All rights reserved

And why it’s

ALL ABOUT LOYALTY

BOOSTING SALES & PROFITS

using

CUSTOMER EXPERIENCE


Why most Customer Experience Programmes are Failing

The Psychology of Worthwhile Customer Service

Why its All About Loyalty



A Few Customers

What do I do?

• Write about service strategy and implementation• Speak at Conferences and Workshops • Provide Consultancy Services• Deliver Training/Education Programmes & Workshops• Work with Associates and Partners

Recent & Current Projects

• Airbus (France) – Commercial and Defence Satellites

• Air Products (EMEA) – Industrial Gases

• Watches of Switzerland Group (UK & America) – Retail Jewellery and Watches

• Brenntag Group (International) – Chemical Distribution

• Dorchester Collection (International) – Luxury Hotels

• James Walker Group (International) – Industrial Seals

• Lexus GB (Europe) – Premium Cars

• OTE Group (Greece) – Fixed and Mobile Telephone Services

• Power Machines (Russia) – Power Generation Machinery

• Saint-Gobain Group (UK) – Building Products Manufacture and Distribution

• Severstal Group (Russia) – Steel Manufacture

• Sibur (Russia) – Oil and Gas Products

• Sonova Group (Switzerland) – Hearing Aids

• William Grant & Sons (Scotland) - Spirits

http://www.amazon.co.uk/gp/product/images/186076164X/sr=1-1/qid=1231502263/ref=dp_image_0/278-8259922-6624855?ie=UTF8&n=266239&s=books&qid=1231502263&sr=1-1


Birds gather in Flocks

Dogs gather in Packs

Elephants gather in Herds

Fish gather in Shoals

Lions gather in Prides

Humans gather in ????

Humans gather in Tribes

What do TRIBES do?

• Look the same

• Have rituals

• Act the same

The CX Epidemic


Vilfredo Pareto

The 80/20 Rule

• Italian Landowners

• Business Revenue/Profit

• Organisational Change

• TQM, BPR…..Lean

• CRM, CX…..?


Just three months ago an article was published by Bob Thompson, the founder of CustomerThink Corporation in America, that was entitled ‘An Inconvenient Truth’ . Their latest research discovered -

• Only 17% of CEOs polled felt that their Customer Experience Strategy had created differentiation. (83% Failure Rate)

• Only 23% found it had delivered tangible benefits to the business. (77% Failure Rate)

Average 80% Failure Rate!

So how do you get into the 20% that succeed?


Time

Le

ve

l o

f S

erv

ice

CUSTOMEREXPECTATIONExponential

Increase

ACTUALDELIVERYGradual

Improvement

Growing Gap• Complaints• Price Pressures• Lost Customers


“Loyalty leaders enjoy 5.1 x more revenue growth than Loyalty laggards.”

Sources: Accenture, Bain & Company, Forrester, Gartner

Customers are growing

less loyal

Most Leaders

are kidding themselves

It needn’t be like this

Most businesses

don’t do RECOVERY


Most decisions we make are basedon our RECOLLECTIONS

of past experiences and/or our EXPECTATIONS

for future experiences.Daniel

Kahneman(Nobel prize winning

psychologist)

http://en.wikipedia.org/wiki/Image:DANIEL_KAHNEMAN.jpg


Future FocusLooking forward

What will happen?

Past FocusLooking back

What has happened?

Current FocusLooking around

What is happening?

The Loyalty Mind States

Expectation

Management

Memory

Management

Experience

Management

LOYALTY MANAGEMENT

Least InfluentialMore Influential Most Influential

+ +


Satisfied

Less than Satisfied

More than Satisfied

Dissatisfied

Delighted

OK

OUCH

WOW

Memorable ?

Memorable ?

Memorable ?


RECOVERYNegative to Positive

Forgettable

Un-forgettable

Memorable

Remarkable

Invisible ExperienceTerrible Terrific

WO

W

PositiveO

UC

HNegative

MOST

INFLUENTIAL

EXPERIENCES

Business as usual

95% + of all activitiesNOT RECOVERY

+1

+6

-3

Remember: It’s not possible

not to have Expectations, Experience and Memories

Lou Carbone – Experience Engineering Inc.


Time

Fo

cu

s

Customer

Service

Management

Customer

Relationship

Management

Customer

Loyalty

Management

Customer

Experience

Management

“Begin with

the end in

mind.”

Dr Stephen Covey

This is NOT the end you should have in mind!


And why it’s

ALL ABOUT LOYALTY


using

CUSTOMER EXPERIENCE


Creating a Service Culture

Leading a Service Revolution

Putting the Right People in the Right Jobs


Creating a Service Culture


“Culture is Strategy”Jim Collins

“Culture is something that can’t be owned by an individual, it is created and shared by all

employees”


What’s Inside shows Outside

Outside

Inside


20

Fullyengaged

Engaged

Notengaged

Activelydisengaged

Engaged

Not engaged

Disengaged

Guest engagementEmployee engagement

2010 2011 2012 2013 2014 20152010 2011 2012 2013 2014 2015

The Dorchester Collection Approach to Staff Engagement

• Recruiting the right people. (Those with a natural talent for service)

• Teaching new recruits about the company’s service philosophy. (So they know

what’s expected of them and their colleagues)

• Ongoing bespoke staff development. (So that every one can excel)

• Giving the staff the freedom to make big decisions for the customer. (So the

service guests experience is customised and personal to them)


LEADER

LEADER

CUSTOMERS

EnablingDisabling

How do we organise ourselves to create loyalty (Our Internal DNA)

LEADER

CUSTOMERSCUSTOMERS

Energy Flow


Visit Store Purchase Problem

Jan Carlzon

Marketing

Web

Team

Store

TeamMerchandising

Team

W’housing

& Dist’n

Buying

Team

Store

Team

IT

Security

Store

Team

Marketing

Customer

Relations

Store

Team

IT

Leadership Team,

Finance, RSMs, HR,

Etc. Serving the people

who serve the customer

Consider

Serving the CustomerAnyone not directly serving the

customer,

should be serving someone who

is.

http://www.amazon.co.uk/gp/product/images/0060915803/sr=1-1/qid=1231498916/ref=dp_image_0/278-8259922-6624855?ie=UTF8&n=266239&s=books&qid=1231498916&sr=1-1


Service Leadership


Leading is not the same as being a leader. Leading means others are willing to follow, not because they have to, but because they want to.

Leadership is therefore a gift ….given by those that choose to follow.


More than words –

CONVICTION

‘A belief in something

that needs no proof or

evidence'.


The Major Ways That Culture is Determined in an Organisation

1. What Leaders pay attention to, measure and control on a regular basis.

2. How Leaders react to critical incidents and organisational crises.

3. Observed criteria by which Leaders allocate scarce resources.

4. Deliberate role modelling, teaching and coaching by Leaders.

5. Observed criteria by which Leaders allocate rewards and status.

6. Observed criteria by which Leaders recruit, select, promote etc.organisational members.

Edgar H. Schein, Organisational Culture and Leadership


• Are led by visionary, enthusiastic champions of change.

• Unlock the potential of their people.

• Know their customers (better than their competitors).

• Constantly introduce new, differentiated products and services.

• Exceed their customer’s expectations with new products and services.… From DTI/CBI Winning Report

Winning Companies


Simon Sinek

WHY

HOW

WHAT

Vision

Mission

Purpose

Values

The Golden Circle


Philosophy Logic Emotions Actions

RESULTS

Purpose,Vision

& Values

Systems

& Processes

People &

Culture

Products &

Services

BehaviourBeliefs Thoughts Feelings

What motivates people to deliver exceptional performance ?


• Vision (envisioned future - giving direction)

Where are we going?

• Values (core ideology - driving behaviours)

How shall we get there?

The foundations of leadership


Vision – giving the direction

• It must be a worthy cause/noble purpose (make them proud to do it).

• It should be short and succinct (memorable).

• It should inspire people to action.

• It should motivate the right behaviours.

• It should stand the ‘bar test’.


To create value for customers and earn their lifetime loyalty.

To preserve and improve human life.

To make people happy.

To grow a profitable airline that people love to fly and

where people love to work

Good value. Great values.

To become the best in the world at personal banking.

The happiness of all its members.


• They should help everyone understand and agree how things are done around here.

• They are the marching orders that outline the means to the end. (How to achieve the Vision)

• They must clearly define the acceptable and unacceptable behaviours.

• The best ones ‘touch the heart’.

• Once agreed and established they must apply to everyone (especially leaders) or they become worthless.

Values - driving the behaviours


Build Great Relationships• Treat others as they would like to be treated• Share your experiences and always welcome feedback• Earn people’s trust; see things from their point of view

Know Your Stuff• Never stop learning; recognise failure and celebrate success• Understand our customers and what they need• Be an expert in what you do

Make A Difference• Give your work the personal touch, showing people you enjoy what you do• Deliver great service and make someone’s day• If something goes wrong, amaze people with a dazzling recovery

Get Things Done• Make things happen and give it your best• Get it right first time and never pass on a fault• Keep your promises

Change For Better• Inspire others by the way you do things• Never be afraid to try something new• Ask yourself “is this my best?”


“If you’re a Leader you can’t

repeat the Strategy

(Mission/Vision) and Behaviours

(Values) you want too often”

Jack

Welch

http://www.amazon.co.uk/gp/reader/0007197675/ref=sib_dp_pt/278-8259922-6624855#reader-link


The Right People


An organisation’s excellence is never more than the sum total of the excellent decisions and

actions taken (chosen) daily by the employees.

QUESTION:

How do you train the wrong people to behave the right way and do the right job?


Q. Is there a key thing that if we get it right will

make this easy but if we don’t will make it

hard?

YesA. The percentage of people in your

organisation that have a ‘natural ability’ (flair) for

delivering great customer experiences.


• Only employ people who are eager, able and willing to create excellent customer service experiences.

• Use a selection tool that identifies those people with a ‘natural’ ability.

• Remove, redeploy or replace any that are uninterested, unable or unwilling.

Are you prepared (and able) to do this if necessary ?

If you want to deliver world class service


5 main scales

16 character traits

1. Agreeableness

❖Kindness

❖Altruism

❖Warmth

❖Unselfishness

2. Stability /Adjustment

(“Sunny Disposition”)

❖Self assuredness

❖Relaxed & calm persona

❖Positive affectivity

3. Sociability

❖Rapport & approachability

❖Engaging

❖Positive energy

❖Sensitivity

❖Responsibility

❖Emotional Management

❖Passion

❖Work ethic

❖Action & results

orientation

Professor

Adrian Furnham

University

College London

Service Talent Assessment

and Recruitment System

5. Drive & Ambition

4. Emotional Intelligence

What are the Talents needed for Customer Service?

“Only massive trauma changes personality, which is

hard-wired.”

“ Attitudes may change, but people are remarkably

stable. They choose and change their environments to

suit their personality – not the other way around”

“What you see is what you get with most people over

the age of 21”



Danny Meyer – Gramercy Tavern


1. Customers 2nd – Your People 1st

2. Hiring Criteria - 49% Skills – 51% Hospitality Quotient• Kindness

• Optimism

• Work Ethic

• Curious Intelligence

• Empathy

• Self Awareness and Integrity

3. Collect Dots to Connect Dots.

4. Become Your Customers’ Favourite – There’s Nowhere Else

They’d Rather Do Business.

5. A Unique Style of Hospitality Can’t be Copied.

Lessons from Danny Meyer


RefreshmentBreak


using

CUSTOMER EXPERIENCE


Creating Enduring Customer Loyalty

Successful Implementation Strategy

Summary of Key Points


Customer Loyalty

Creating Customer Loyalty


Memory Makers

Changes ✚ Significant Events ✚ Endings

Pleasant Surprises

Magical Moments

Last(ing) Impressions

DanielKahneman(Nobel prize

winning psychologist)

Things that are noticeably better

than expected

Events that trigger positive

sensations

Unforgettable final encounters

and events

http://en.wikipedia.org/wiki/Image:DANIEL_KAHNEMAN.jpg


formula

WOW = OK WOW = OK

Memory Maker



Noticed and valued by colleagues and customers

criteria

Little or No Cost

Quick and easy to do



What’s

this?




formula

Recovery = Fix

Memory Maker



Dissatisfied

Satisfied

Delighted

Product \ service use over time

OUCH!

DAZZLINGRECOVERY

NOT RECOVERY RECOVERY



criteria

• Front line trust• Delay = Cost• WOW = OUCH• Relationship value focus• Noticed and valued by

colleagues and customers

>



Up to 90% of recovered customers become

more loyal !


“The value of an

idea is in the use

of it”Thomas Edison

Winning Implementation


Successful Implementation Strategy


Michael Porter.

Harvard Business

School

“Successful competitive strategy means making choices your competitors don’t make. It’s not doing the same things better (same race faster), it’s choosing to do things they won’t or can’t do (a different race).”

“When everything is equal, people buy on price. So if you don’t want to sell on price, you must make things unequal ”

Create Differentiation

http://www.google.co.uk/imgres?imgurl=http://www.mastersforum.com/archives/porter/porter.gif&imgrefurl=http://www.mastersforum.com/archives/porter/&h=124&w=93&sz=56&tbnid=KsUlQkyDpEYJ:&tbnh=124&tbnw=93&sa=X&oi=image_result&resnum=1&ct=image&cd=2



Pace of Improvement

Leve

l & S

tyle

of S

ervi

ce Competitors

You

This will NOT differentiate

This WILL differentiate

You need a gap like this for

it to be noticed – and then

winning pace for it to be

sustainable. It’s rarely

created by benchmarking

against competitors.

First – Quantum Leap

Then – Winning Pace


Lior Arussy


What ever is your current position, if

you have the winning pace, you will

end up in the lead.

Urgency is Energy !....... Allan Leighton

“Without an organisation-wide sense of

urgency, it’s like trying to build a pyramid

on a foundation of empty shoeboxes.”

If you want to create competitive advantage,

you must implement -

BIG and FAST!

Winning Pace




Top Down

• Leaders leading the way

Inside - Out Outside - In

• Starting inside and work out

• Having constant customer feedback coming in

Step-by-Step

• Person by person

• Team by team

• Issue by issue

• Process by process


Senior Management

Middle Management

Front Line

10% to 20% of workforce

Spreading the Knowledge and Skill


“I’ve learned that people will forget what you said, people may forget what you did, but people will NEVER FORGET how you made them feel”

…...Maya Angelou


Experience

ManagementHappy

Pleased

Valued

Cared for

Trusted

Focused

Safe

Stimulated

Indulgent

Energetic

Exploratory

Interested

Neglected

Dissatisfied

Frustrated

Disappointed

Unhappy

Hurried

Irritated

Stressed

Earns Advocacy

Destroys Loyalty

Creates Attention

Generates Recommendation

Source: The DNA of Customer Experience Colin Shaw

OUCH

OK

WOW

WOWeeExperiences Create Feelings

Feelings Influence Loyalty

Happiness Creates

LOYALTYLoyalty

Builders

Loyalty

Neutral

Loyalty

Killers

Note: There is NO SatisfiedSo we don’t want to know how satisfied

customers are with our products and/or

services. We need to know is how doing

business with us makes customers feel.

http://www.amazon.co.uk/gp/reader/0230500005/ref=sib_dp_pt/278-8259922-6624855


0 1 2 3 4 5 6 7 8 9 10

Based on your experience as a customer, how likely is it that you

would recommend this company to a friend or colleague?

% Promoters - % Detractors = Net promoter score

PromotersDetractors Passives

Fred Reichheld

9 100 1 2 3 4 5 6 7 8



Many(Not interested, don’t

care or just don’t get it)

Some(Using service strategically

to create competitive advantage)

Very Few(Usually just one per

category)

AmazonAppleBuild a BearDisneyDorchester

EmiratesFirst DirectLexusSouth West AirlinesTravel Counsellors

WORLD CLASS EXAMPLES

Number of Organisations

Us

ing

Se

rvic

e

Str

ate

gic

all

y

NON STARTERSNPS: – ve to 20%

HaphazardUnintentional

Reactive

GOOD to VERY GOODNPS: 20% to 80%

DeliberatePracticedProactive

WORLD CLASS

NPS: 80% +ExtraordinaryOne of a Kind

Precise


Talking about it – EASY

Getting it Started - HARD

Making it Worthwhile- HARDEST

• Conviction – Leaders convinced of the business value

• Commitment – To make it a success ‘whatever it takes’

• Competence – Fully trained and skilled practitioners

• Communication – Leaders as Champions and Cheerleaders

• Consistency – Not wavering when the going gets tough


First Published

1997


Key Summary Points

• Memories are key to loyalty building.

• Leaders dictate culture.

• Recruitment trumps training.

• Engaged employees create engaged customers.

• Negative memories do more harm than positive ones help.

• Recovery is the most powerful memory maker and loyalty builder.

• Implementation success requires conviction, competence, commitment…….and PACE.

• ITS ALL ABOUT LOYALTY


Books:

Direct:

On-Line:

www.chrisdaffy.com

www.customerserviceuk.com

www.loyaltymasterclass.com

• Conference Speaking/Workshops

• Consultancy

• Customer Loyalty Management Master Practitioner Programme

• 9 Module On-Line Programme

• 6 Module On-Line Management Programme

Tel: 01663 766300

Mob: 07831 628898

HQ Office:

286 Kifisias Ave., Halandri 152 32, Athens, Greece

Tel: +30 210 32 59 350

Fax: +30 210 32 59 380

[email protected]

Cyprus Office:

9 Kranidiotis str

Nicosia

Cyprus


http://www.chrisdaffy.com/

http://www.customerserviceuk.com/

http://www.loyaltymasterclass.com/

mailto:[email protected]


And why it’s

ALL ABOUT LOYALTY


using

CUSTOMER EXPERIENCE

Documents

BOOSTING SALES & PROFITS using CUSTOMER EXPERIENCE · 2019-06-24 · 1. Customers 2nd –Your People 1st 2. Hiring Criteria - 49% Skills –51% Hospitality Quotient • Kindness •