Service Excellence through

Customer Experience Management

Copyright 2006 Performance Equations

Links in the Service Profit Chain

Operating strategy and
service delivery systems

Internal
Internal
Service
Service
Quality
Quality

Employee
Employee
Satisfaction
Satisfaction

Employee
Employee
Retention
Retention

Employee
Employee
Productivity
Productivity

Organisational context:
Culture, Leadership,
Teamwork

Source: The Service Profit Chain. Heskett, Sasser, & Schlesinger. The Free Press, 1997

Copyright 2006 Performance Equations

Service
concept

Business results

Revenue
Revenue
Growth
Growth
External
External
Service
Service
Value
Value

Customer
Customer
Satisfaction
Satisfaction

Customer
Customer
Loyalty
Loyalty
Profits
Profits

Service designed
and delivered to
meet targeted
customer needs

Retention
Loyalty
Advocacy

Performance Equations helps organisations

develop capability to deliver service excellence

SE Jan 2006 2

Customer Experience: It Takes More than

Good Customer Service
If you take all the different aspects of a commoditised
world then everything is pretty similar: similar
products, similar people, similar technology and similar
pricing.
The differences are in the brand, the
perception and the feel of a company, all of which are
delivered through the customer experience. Its the
customer experience that differentiates a company

Copyright 2006 Performance Equations

SE Jan 2006 3

Customer Experience: It Takes More than

Good Customer Service

Why arent more companies

doing
Most
peopleit?
wont understand customer experience. They may
try to implement something but their organisations will not be able
to embrace the totality of customer experience. It requires a
fundamentally different mindset. It requires you letting go of old
paradigms and embrace new ones.
Most organisations simply cant do that because they fear what
they are going to lose and what they are going to put at risk.
But the reality is they dont have a choice. Customer experience
is the new strategic battlefield.

Copyright 2006 Performance Equations

SE Jan 2006 4

1. Customer Loyalty Pays Off

Impact of a 5% Decrease in Customer Defections
100%
85%

90%

75%

80%
Profit Increase

70%
60%

50%

50%
40%

30%

30%

45%

45%

40%

35%

25%

20%
10%
0%
Auto-Service Branch Credit Card Credit
Insurance Industrial Industrial Office Bldg. Software
Chain
Deposits
Insurance Brokerage Distribution Laundry
Mgmt.

Source: Reichheld and Sasser, Zero Defections: Quality Comes to Services,

Harvard Business Review, Sept/Oct 1990
Copyright 2006 Performance Equations

MSE.MSEOHs.PPT 5

How Do We Add Value?

We partner clients to:

Design measurable approaches to attitudinal and behavioural change that:

Align behaviour and skills with the brand values and customer
experience promise you communicate to your market
Address the attitudes and motivation that shape behaviour
Equip your employees to deliver the experience you know your target
customers value

Develop your leaders to support employees in delivering on your brand

values and customer experience promise including tools to sustain the
change

Positively impact customer loyalty where employee behaviour is most

critical

Measure the incremental changes that define success

Copyright 2006 Performance Equations

SE Jan 2006 6

Keys to Service Excellence through Customer

Experience Management

Service
Excellence
Engagement

Copyright 2006 Performance Equations

SE Jan 2006 7

Keys to Service Excellence through Customer

Experience Management
Gather data on customer
experience

Use CEI to identify, organise and

communicate expectations
Identify and map emotional
touchpoints

Establish customer
experience Vision & Strategy

Identify important
retention factors

Apply tactics to
increase retention
and commitment

Service
Excellence
Engagement

Launch leadership and

management education &
development programme

Launch employee
engagement programme

Copyright 2006 Performance Equations

Teach and model service

and Service Recovery skills
Provide reinforcing and
developmental feedback
Conduct coaching
conversations to build
ownership and judgment

SE Jan 2006 8

Our Solution: The People and the Steps

The People

Executive
Team

Mid-level
Managers

Frontline
Managers

Frontline
Employees

The Steps

Copyright 2006 Performance Equations

1. Measure

2. Engage

3. Mobilise

4. Sustain

SE Jan 2006 9

Our Solution: The People and the Steps

The People

Executive
Team

Mid-level
Managers

Frontline
Managers

Frontline
Employees

The Steps

Copyright 2006 Performance Equations

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1. Measure

2. Engage

3. Mobilise

4. Sustain

SE Jan 2006 10