customer centricity - enp institute · measure your team’s customer centricity ‣step 2: discuss...
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Customer Centricity Combining Marketing, Brand & Workforce To
Supercharge Your Customer Experience Chris Brown & Scott Hamilton October 9 & 10, 2013 Webster University and Employers Group ENP Executive Labs
Executive Next Practices Institute
T
N t Next Practices…defined Ideas, processes, concepts and
solutions that move us beyond the “status quo”.
Not “how are others doing it best” but rather, “where do we go from here that represents a true fundamental
shift in value”…
Chris Brown, ENP-NextWORKS Customer Practice Leader & CEO MarketCulture
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Our New Book
To be released January 2014
Company Experience & Outcomes
Increased Margins & Customer Responsiveness
Increased Share & Profit Improved Collaboration
& Opening of New Markets
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Moved from flat to more than 10% profit growth for the past 3
years
Program designed to improve internal collaboration around customers
Improved customer satisfaction scores by 23%
Alignment to the Customer
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Importance and Measurement of Customer Centricity
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CUSTOMER CENTRICITY
MEASURING CUSTOMER CENTRICITY
What is it?- What is driving it?– Why is it important?- Who has it?
Research Reveals 7 Disciplines
MPANY EXAMPLES
1
2
30min
30min
Major Trends Driving the Need for Customer Centricity
1. Globalization – increased competition 2. Power shift to consumers 3. Expectations increasing - Apple 4. Social Media – facebook/twitter 5. Product Commoditization and Digitization 6. Rapid technological change and innovation § Mobile app disruption
7. Demand for transparency – wiki leaks 8. Need for higher employee engagement
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Customer Centricity Defined – it is about culture
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The capacity of an organization and its culture to understand, predict and respond to customer, market and competitor dynamics, demands and disruptions. Customer centricity must transcend individual departments and functions and be an integral part of the way all employees behave and perform.
“ CUSTOMER CENTRICITY
These trends led us to explore Customer Centricity…
The OPPORTUNITY
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91% of companies claim to be customer focused. Only 10% of customers agree -Forrester Research 2012
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Two parts to Successful Customer Centricity Programs
Team Culture/Behaviors
Alignment & Buy in
Customer Experience
Management, Tools +
Processes
True Customer Centricity
Customer Centric Behaviours
Customer Centric Behaviours Drive Business Growth and Profit
The Creation The Outcome
The Results
The Corporate Culture
Sales Revenue Growth Profit Growth Profitability
New Product Success
Customer Experience (Evolving)
Customer Satisfaction +
Advocacy (Changing)
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CUSTOMER CENTRICITY
It takes 12 positive experiences to make up for an unresolved negative experience Understanding Customers, Ruby Newell-Legner
Why invest in Customer Experience?
The 6 laws of customer experience
1. Every interaction creates a PERSONAL reaction
2. We are SELF-CENTERED
3. Customer understanding creates ALIGNMENT
4. Only ENGAGED people create engaged CUSTOMERS
5. We do what is MEASURED, REWARDED + CELEBRATED
6. AUTHENTICITY can’t be faked § Source: Adapted from The Temkin Group
Customer Experience Exercise
• In pairs tell each other a story of your personal experience as a customer. Time 10 minutes.
§ Either a good experience or a bad experience
§ Note what sticks out in your mind as the main factors in creating the good or bad experience? List the one or two factors on the following chart.
§ Any lessons for your organization?
Customer Centricity And Business Performance
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Market-driven firms are, on average, 31% more profitable than self-centered firms “
The Market Driven Organization: Understanding, Attracting, and Keeping Valuable Customers” George S. Day, Wharton School, University of Pennsylvania
CUSTOMER CENTRICITY
What do Top Firms Have in Common?
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They exhibit a high level of “customer-centric” behaviour and decision-making
CUSTOMER CENTRICITY
#1 Imperative - Concept of Value
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#1 Imperative in Customer Centricity Superior Customer Value
CUSTOMER CENTRICITY
Importance and Measurement of Customer Centricity
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CUSTOMER CENTRICITY
MEASURING CUSTOMER CENTRICITY
What is it?- What is driving it?– Why is it important?- Who has it?
Research Reveals 7 Disciplines
ROADMAP TO CUSTOMER CENTRICITY
MPANY EXAMPLES
1
2
10min
15min
5min
5min
External Drivers
How do you measure Customer Centricity?
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5Internal Enablers 2
... 7 Behaviours in Two Categories
CUSTOMER CENTRICITY
The External Drivers
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Factors Descriptions Customer Insight The extent to which employees monitor, understand, and
act on current customer needs and satisfaction.
Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities.
Competitor Insight
The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses
Competitor Foresight
The extent to which employees monitor, understand, and respond to new market entrants and potential competitors.
Peripheral Vision
The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical)
CUSTOMER CENTRICITY
The Internal Enablers
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Factors Descriptions Cross-Functional Collaboration
The extent to which employees interact, share information, work with, and assist colleagues from other work groups
Strategic Alignment
The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company.
CUSTOMER CENTRICITY
The OPPORTUNITY
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2/3 of corporate strategy is never executed Of 2,000 large firms studied, 90% had detailed strategic plans, but 7 out of 8 failed to achieve profitable growth - AICD (Bain Consulting)
Links to Business Performance Outcomes
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Factors Customer Satisfaction Innovation
New Product Success
Profit Growth Profitability
Sales Revenue Growth
Customer Insight ü ü ü ü Customer Foresight ü Competitor Insight ü ü ü Competitor Foresight ü ü Peripheral Vision ü Strategic Alignment ü ü ü ü ü ü Cross-Functional Collaboration ü ü ü ü ü ü
The Market Responsiveness Index (MRI)™
§ A simple, web-based benchmarking system to assess your cultural capacity to win (a 35 item survey)
§ Measures your organization’s Customer Centricity and capacity to execute across the seven critical success factors
§ Empowers managers to transform organizations and drive measurable financial performance improvement
§ Proven to be highly effective in predicting of customer satisfaction, innovation, new product success and profitable growth
§ Tested and validated with 100+ companies across many industries
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Performance Examples from Real Companies
Circumplex graphics below, which are part of every MRI report, are samples from actual companies. Their relative scores closely correlate with weak and strong business performance metrics.
Strong Performer Weak Performer 27
Real Company Example – B2B Products
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2009 vs 2010
+ Verbatim Comments from Employees
Now rate your own business
Factors Descriptions Your Rating (1-10)
Customer Insight The extent to which employees monitor, understand, and act on current customer needs and satisfaction.
Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities.
Competitor Insight
The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses
Competitor Foresight
The extent to which employees monitor, understand, and respond to new market entrants and potential competitors.
Peripheral Vision
The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical)
Cross-Functional Collaboration
The extent to which employees interact, share information, work with, and assist colleagues from other work groups
Strategic Alignment The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company.
Step 1: Highlight which factor you think your business is strongest and weakest in (Refer back to your previous ratings) Step 2: Discuss your findings with your neighbor and answer these questions: 1. What are the implications? Refer to the links to business performance chart 2. What could you do to enhance the results? 3. How might this process be received in your own organization?
GROUP EXERCISE
The Value of “Experience” Measurable employee commitment,
productivity and innovation rise in direct proportion to how they experience a task
Engage – people must “experience” what it is you want to them to support. And.. Clearly define their role!
Measure What Matters to Customers
Line-of-sight metrics- Every process, every level
Implementation- Must be Experiential
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Next Steps
21st Century Competition is About Customer Centricity
‣ Step 1: Phone Assessment and do a pilot MRI™ to measure your team’s Customer Centricity
‣ Step 2: Discuss the results, identify new initiatives to improve organizational Customer Centricity
‣ Contact [email protected] www.enpinstitute.com
‣ Chris Brown 831.917.2998
‣ Scott Hamilton 888.857.9722