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1 COPYRIGHT © 2014. ALL RIGHTS PROTECTED AND RESERVED.
What’s Behind the Curtain
of Customer Transformation
November 13, 2014
Featuring:
2
Today’s Presenters
Elizabeth Glagowski Editor-in-Chief
Customer Strategist Journal
Don Peppers Founding Partner
Peppers & Rogers Group
Harley Manning Research Director, CEx
Forrester
Ron Wince General Manager
Peppers & Rogers Group
3
Some Housekeeping
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Twitter Hash tag: #customerstrategy
4
Agenda
Defining the Customer Experience
Outside In:
6 Customer Experience Disciplines
Inside Out:
Delivering on the Promise of the Customer Experience
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Defining the Customer Experience
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Defining what we mean by “customer experience”
• Customer includes both current and prospective customers
• Individual interactions are those that occur in addressable channels,
i.e., non-mass media
• With a brand: social interactions with others about the brand are not a
part of the “customer experience”
• Brand is a proxy for all the selling entities: companies, retailers, dealers,
suppliers, e-commerce sites, etc.
• Over time recognizes the ongoing customer relationship
“The totality of a customer’s individual
interactions with a brand, over time.”
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Forrester’s customer experience pyramid
Meets need
Easy
Enjoyable
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The upside and downside of customer experience
Product Experience
Source: The Effortless Customer Experience, 2013
Customer Service Experience
Likelihood of telling a friend
Eliminate the friction in your service
Likelihood of telling a friend
Delight the customer with your product
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The upside and downside of customer experience
Meets need
Easy
Enjoyable
Eliminate the friction in your service
Delight the customer with your product
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The most direct way to improve the
customer experience
Seek out and eliminate
any points of friction
Amazon relies on one customer experience
metric more than any other:
“NRR” – the Non-Resolution Rate
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Hunting down the friction
During peak season, Amazon records and
analyzes more than 40,000 hours of calls per day!
Because NRR focuses directly on problems, it provides a
quicker route for eliminating friction.
But NRR also needs a universal sample size, because it
focuses on individual problems.
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Every time you find a point of friction…
…apply Lean Six Sigma Principles and other proven
techniques to drill down to root causes
This type of analysis will reveal many more problems
than are apparent just from your “customer facing”
processes.
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Outside In:
6 Customer Experience Disciplines
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The 6 Disciplines of CX
Strategy
Customer Understanding
Measurement
Design
Culture
Governance
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The 6 Disciplines of CX
Strategy
Customer Understanding
Measurement
Design
Culture
Governance
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The 6 Disciplines of CX
Strategy
17 © 2013 Forrester Research, Inc. Reproduction Prohibited 17
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If that’s what customers hate most,
let’s not cancel any more flights.
- Delta VP Operations Control Dave Holz
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The 6 Disciplines of CX
Customer Understanding
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- Matt Anderson, Former COO, Virgin Mobile
We wanted to create a differentiated customer experience: one that was
uniquely Virgin.”
“We weren’t interested in being up to par
with industry standards.
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simplicity
fairness
control
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The 6 Disciplines of CX
Design
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30 © 2012 Forrester Research, Inc. Reproduction Prohibited 30
31 © 2012 Forrester Research, Inc. Reproduction Prohibited 31
32 © 2012 Forrester Research, Inc. Reproduction Prohibited 32
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The 6 Disciplines of CX
Strategy
Customer Understanding
Measurement
Design
Culture
Governance
34
The 6 Disciplines of CX
Strategy
Customer Understanding
Measurement
Design
Culture
Governance
35
The 6 Disciplines of CX
Measurement
36 © 2012 Forrester Research, Inc. Reproduction Prohibited 36
37
Outcome
Perception
Descriptive
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Perception
• What the customers thought happened and
how they felt about it
• Tier 1: Satisfaction with the overall experience
like how easy the bank is to do business with
and how well it communicates
• Tier 2: Perceptions of touchpoints, like ease of
navigating online banking tools or satisfaction
with financial advisors
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Descriptive
• What happened in the real world
• Tier 2: Page views, average wait time in a
branch
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Outcome
• What business impact we can expect
• Net Promoter Score
• % of HH with transaction accounts,
investments, and borrowing products
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Outcome
Perception
Descriptive
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The 6 Disciplines of CX
Governance
43 © 2012 Forrester Research, Inc. Reproduction Prohibited 43
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Barclaycard assigns accountability
for 9 key processes in the
customer journey
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Barclaycard assigns accountability for 9 key processes
in the customer journey
Providing customer service
Acquiring new accounts
Collections
There are eight Level 1 sub-processes under the new
accounts process
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One senior executive owns the new accounts process
Paul Wilmore – Senior Director of
Consumer Markets (Barclaycard)
• Works with Level 1 sub-process owners to
ensure that every aspect of the customer
experience for new accounts meets CX
standards
• Intervenes in disputes between
competing departments
• Has authority to stop any initiative that will
create a problem for customers
• Provides input on the company’s
investment priorities – based on how they
impact the customer
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The 6 Disciplines of CX
Culture
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Service Values: I am proud to be Ritz-Carlton
I build strong relationships and create Ritz-Carlton
guests for life
I am always responsive to the expressed and
unexpressed wishes and needs of our guests
I am empowered to create unique, memorable
and personal experiences for our guests
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The 6 Disciplines of CX
Strategy
Customer Understanding
Measurement
Design
Culture
Governance
51
Inside Out:
Delivering on the Promise of the Customer Experience
52
Turning the outside-in perspective into an operational
approach to business requires a careful balance
Simultaneously improve customer experience while
managing costs
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Key internal factors often prevent organizations from
achieving the right balance
Customer experience vision not clearly and consistently
understood across the customer journey, nor deeply in
support functions
Disparate and siloed approaches to Customer Experience
programs and initiatives
Ownership of the customer experience is not clearly
understood within the organization
Under-investment in employee development and culture
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Delivering on the customer experience promise
1. Follow the ABCs: Alignment - behavior - communications
2. Think horizontally along the same spectrum the customer
does
3. Deliberate Practice
4. End-to-End Governance
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Follow the ABCs
Guiding Principle:
An enterprise commitment requires alignment and advocacy across the organization.
Key Success Factors:
• Align front- and back-office operations
• Use incentives, rewards and recognition to influence and reinforce valued behaviors
• Engaged the organization thru strong strategic and informal communications
Best Practice:
Telstra aligned all employees, processes and policies around the customer
experience vision to establish and sustain a customer-centric culture
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Guiding Principle:
Design operations and processes from the outside-in perspective
Key Success Factors:
• Ensure complete clarity on the full customer journey by individual, not by product
or division
• Leveraging a Lean Six Sigma team to document and improve the customer’s
experience across internal functional groups as well as upstream and downstream
business partners
• Include “off stage” support functions such as HR, accounting, legal, etc. which
may have policies or requirements that may create conflict
Best Practice:
Verizon takes an outside-in perspective to solve customer challenges
Think horizontal
57
Deliberate Practice
Guiding Principle:
Drive expert level capabilities to customer experience-related processes.
Key Success Factors:
• Ensure employees know what they need to start doing and what they need to stop doing
to be more customer-centric
• Teach employees the skills that drive exceptional customer experiences
• Practice and coach the new skills and behaviors until they become second nature at the
individual , team and enterprise level
• Investment in sharing information such as customer feedback, lessons learned, new
processes and practices
Best Practice:
Leader in Health, Wellness and Lifestyle invests in
Social Knowledge Management for employees
AND customers
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End-to-End Governance
Guiding Principle:
Use a steering committee to break down barriers
Key Success Factors:
• Install the CEO or a high level executive who serves as the CEO’s proxy as the
executive sponsor for the customer experience governance committee
• Include horizontal and functional representation – including external business
partners
• Assign top leaders and talent to the initiative with the clout to enable an enterprise
vision of customer experience improvements
• Drive execution in fast cycle improvement – facilitating immediate feedback on
effectiveness and impact
Best Practice:
To ensure ongoing momentum for its customer experience and
e-commerce initiative, P&G created an integrated team across
brands, functional areas and regions. Specific time
was allocated and budgeted to participate in the program.
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The result:
Driving greater customer value at the most efficient cost
Drive customer experience effectiveness in all processes and across the organization
(higher value)
Drive Organization & Process Efficiency
(lower cost)
Customer experience excellence:
- Generate customer insights to better
understand customer needs, wants,
behaviors – and customize interactions
accordingly
- Improve value provided to customers
by informing critical improvements in
processes
- Continuously discover, develop and
deploy better customer experiences
Cost optimization:
- Focus on elimination or reduction of
anything that does not bring value to
the customer
- Align operating structure with the end-to-end customer experience
- Instill “value conscious” culture
Get the $/value-add right
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Q&A
Elizabeth Glagowski Editor-in-Chief
Customer Strategist Journal [email protected]
Don Peppers Founding Partner
Peppers & Rogers Group [email protected]
Harley Manning Research Director, CEx
Forrester
Ron Wince General Manager
Peppers & Rogers Group [email protected]
61
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Stamford, CT 06905
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COPYRIGHT © 2014. ALL RIGHTS PROTECTED AND RESERVED.
The information contained in this document, much of which is confidential to
Peppers & Rogers Group, is for the sole use of the intended recipients. No part of
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