How to measure customer experience to improve satisfaction and loyalty

Fredrik Abildtrup CEO @ TeleFaction A/S The Return on Behavior® Company

Contents
• Why manage experiences? • • Customer Experience Management • • How to be successful

• How to do it

Why manage experiences? .

and even become advocates. are more likely to remain loyal. they had ended a relationship. Datamonitor/Ovum 2009 . due to poor customer service alone. a n d n o th i g to d o w i n th te ch n o l g y o McKinsey 95% of employees don’t fully understand their organization’s strategy Norton/Kaplan Balanced Scorecard 10% increase in customer retention results in a 30% increase in the value of the company Bain & Co. as those that are ‘just' customers 50% of the people surveyed said that agents failed to answer their questions Harris Nearly 70% of consumers said. Dissatisfied customers whose complaints are taken care of.Why focus on customer experiences? 70 – 90% of w hat happens w i th cu sto m e rs i s d ri n b y h u m a n ve n a tu re .

North American Study . 2009.Percentage of companies that… Actions Source: Gartner Group.

53 Co st pe r re so lv ed is su e Chat .86 Online self service . Nuance .17 Sources: Giga.The cost of satisfying the customer Email . Forester Research.$7. Gartner Group.55 Phone / Call center .$9.$6.$6.

. companies are focusing on delivering superior customer experiences. (Strativity Group.Interactions drives loyalty With products becoming commoditized and customers demanding more. A 2009 study of over 860 corporate executives revealed that companies that have increased their investment in customer experience management over the past three years report higher customer referral rates and customer satisfaction.

Enterprises + 34 Even though managers think they know how the customer is feeling . we all know differently ! .Enterprise managers wear rose-colored glasses  Survey: – Are companies providing an excellent customer experience?  Net Agreement : Customer + 4 .

R e l ti n sh i a o p M anagem ent .Customer Experience Management C u sto m e r vs.

CRM is enterprise-focused and designed to manage customers for maximum efficiency. price and enterprise process. . However. resulting in the failure of many CRM implementations.CRM to CEM The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. with minimal or no focus on customer need and desire. managing the customer relationship has been the domain of Customer Relationship Management (CRM). The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want. CRM strategies and solutions are designed to focus on product. Traditionally. CEM is a strategy that focuses the operations and processes of a business around the needs of the individual customer which in turn will lead to larger profits with more customers.

Its your choice.  Recommended to a friend or colleague Praised a company representative Purchased more products / services Continued relationship about the same Pleased Comfortable Appreciated Important Special Complained to a friend or colleague ompl ained to a company r epresentative Switched to new supplier / provider Purchased less products / services Frustrated Let Down Angry Ignored Confused . profits . or destroy.Build or destroy profits? Memorable experiences can lead to customer actions that build.

Customer Experience Management… …is the execution of a customer centric business strategy .

How to be successful .

To get success – be SMART .

Customer Value… Companies see customer relationship value this way  Pro fi t Sal s e Li ti e va l e fe m u S tra te g i fi c t .

Q u a l ty g i H o n e st co m m u n i ti n ca o R e w a rd s fo r l ya l o ty .Customer Value…  Customers see it differently. E m p o w e re d E m p l ye e s o H i h ..

... – The customer experienced that.Metrics – The steering wheel Customer focus are visulized through the results of the measurements  – The customer says that. –    Translate what you mean with customer satisfaction Operationalize your vision through measurements – And rememeber you get what you measure! –  Primary areas to create instant results – Customer Satisfaction – Cross sales/Up sales – Operationalization of strategies and values – Retention of customers ..

hoc surveys Postal surveys Chat surveys Enterprise Feedback Management Meeting surveys E .mail and web surveys Phone surveys SMS / Text surveys . Live measurements Ad .

Follow-up with Action Management Close the loop Customer delighted Alert generated Acknowledge performance Possible up/cross sell Customer Feedback Survey Customer satisfied No action Customer dissatisfied Alert generated Case generated Action Management Resolve issue Close case .

Reward for Loyalty  The key ingredient: People!  Source: Bob Thompson.Well-trained and Helpful Employees 2.Personal Attention. CustomerThink Corp.Friendly and Caring Employees 5. .People are the drivers The Top 5 attributes of companies that deliver ”Constantly Excellent Customer Experiences”  • 1.High-Quality Goods and Services 4.Excellent Customer Service 3.

Redesign the experience Customer experiences as parameter for success  – Every contact with the company gives the customer a chance to evaluate if the experience have been bad / neutral / good • – Over time these customer experiences will make a lasting impression of the company’s values or the company as a brand – – Act on the feedback of your customers experiences and reap the benefits of satisfied customers • .

including sales coaching and support knowledge bases .Use technology to optimize experiences ü Assess the quality of customer experiences with telephone. online and contact center monitoring and measurement systems ü ü Optimize marketing with analysis and campaign management systems to deliver relevant offers ü ü Treat customers as individuals and reward their loyalty ü ü Provide tools to help employees be helpful and responsive.

but how does it work in real life? .Sounds great.

The Return on Behavior process .

. Detect Process and Procedure that are flawed 4% of dissatisfied customers complain.The Return on Behavior process You need to have customers evaluate the service delivery immediately after the interaction . Monthly or quarterly. Eliminate the gap between service and evaluation Too late to recover poor interactions Enhances believability of results Verbatims: capture caller suggestions for improvement Verbatim comments. Fact analysis. 80% will tell 10 people 20% will tell 20+ = 100 dissatisfied customers tell 1200 how poor you are! . 91% of dissatisfied customers will not do business with you. Frequency to meet management’s needs Receive alert of a dissatisfied customer! Pro-actively prevent market damage.the best solution is real-time customer feedback . Annual summary presentation. In the customer’s own words (capture the emotion) Identify and highlight employees that delight customers Frequent reporting of customer feedback Daily. Benchmark scores with others. Service Recovery Opportunities..

Return on Behavior H i h M o n i ri g sco re s g to n ≠ C u sto m e r S a ti cti n sfa o • • • Service quality is not about internal compliance – It is about satisfying your customer It is the change in behavior that gives pay-off in terms of customer experiences • • .

  Our core service is Return on Behavior®. a results-driven solution which translates objective customer data into actionable insights.   These insights provide specific action points for management and individuals to adjust behavior in order to secure revenue.  . retain customers and increase loyalty.  About TeleFaction TeleFaction is a global “Voice of the Customer” Company offering real-time customized closed loop feedback methodologies.

com +45 5057 5070   WEB: TeleFaction.com/in/fredrikabildtrup  .com BLOG: ReturnOnBehavior.com   Twitter: twitter.Author information Fredrik Abildtrup fab@telefaction.com/TeleFaction Linkedin: linkedin.

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