Mike Mac Donald

President, Marketing Operations Xerox Corporation

Business Marketing Association Distinguished Lecturer Series

November 8, 2007

2007 Xerox Corporation. Xerox is a trademark of Xerox Corporation. All rights

Creating a Superior Customer Experience

Improve Customer Experience

Customer Experience Why it Matters

Focus on customer experience pays off
10.7%

1.2% 0.1%
Customer Experience Communication Innovation

Average Market Capitalization Growth, Top 50 Brands

By Primary Source of Brand Differentiation, CAGR over representative time frame

Source: Marketing Leadership Council

Contrasting Views
Are You Delivering a Superior Experience?

80% YES

Are You Receiving a Superior Experience?

8% YES Company Perspective Customer Perspective

Source: Bain & Company

Achieving the Ultimate Customer Experience

Getting customers to come back for more and tell their friends.

Andy Taylor, CEO

Enterprise Rent-A-Car

Achieving the Ultimate Customer Experience

Retention is for wimps. We measure the percent of customers who have our name tattooed on one of their body parts!

Achieving the Ultimate Customer Experience

Achieving the Ultimate Customer Experience

Achieving the Ultimate Customer Experience

We Can

Win Big

and We Can

Lose Big!

10

Defining a GREAT Customer Experience

Sales Marketing Web

Install

Customer Touchpoints = 50,000,000+ every year

Advertising

Service

Public Relations

Invoice

Payment

11

5 Strategies to Success: #1 REALLY LISTEN!

Focused

Executive Program

500 major accounts Senior executive liaison Improved customer relationships

Customer

Officer of the Day

Listen to the customer Resolve their problem Fix the underlying cause

12

5 Strategies to Success: #2 INVEST!

13

5 Strategies to Success: #3 ALIGN!

Brand Stewardship
Advertising

Public Relations

Collaboration
Events and Sponsorships

higher level
14

at a

5 Strategies to Success: #4 DELIVER VALUE!

Dont just sell products

solve problems

15

5 Strategies to Success: #5 Serve!

Net Promoter The Ultimate Question: Would you recommend us?

THE XEROX TEST:
Customers

likely to recommend 2x more likely to repurchase satisfied with problem solving 8x more likely to recommend

and
Customers

16

Television Ads

17

18

Television Ads

19

20

BIG Brand Strategies

Digital Archiving Services

Personalized Communications Solution

Process Improvement

Affordable Color

Royal Caribbean

Owens Corning

21

Little Brand Strategies Every Interaction is a Brand Impression

Immediate control take ownership Capture complete information Proactive on account Create a single point of contact Closed-loop customer satisfaction process Answer questions / resolve disputes accurately / quickly

Communicate, Simplify, Standardize

22

Little Brand Strategies

Lean Six Sigma

at Work
for

Customers

23

24

Little Brand Strategies

78% of mail opened over trash Only 31% of direct mail has useful personalization Customer defection rate > 16%

25

Communication Engineering
All communications should:
Reflect

on brand essence

Improve Achieve

the customer experience

the desired response

26

Communication Engineering at Work Tourism Organization for British

Columbia

5,000 Personalized vacation guides

Cut mail costs by 145% Improved ROI by 25%

27

Communication Engineering at Work

Customer retention jumped from 10% to 17% with customized collaterals

28

Communication Engineering at Work

29

Making It Happen

30