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Why the Customer Experience must be used to stimulate Word-of-Mouth
An example of how customer service kills the brand
What SAA as a brand promises
Satisfied
Unsatisfied
Impressed
Exceeded
Numb
Angry
Time line: 6 Hours
Brand Promise = Ubuntu
Brand Experience = Horrific
Smile, but problems…
“No ticket” but you can have some crumbs…
56 minutes on hold - no solution
Our fault - will call you back
I will try to find a senior person. We will call you back.
I will try to find a senior person. We will call you back.
I will try to find a senior person. We will call you back.
I can’t help you, but here is a cell no
I will make a plan
Get on same flight
I will try to find a senior person. We will call you back.
What SAA delivered as an experience
Southwest’s Chief Apology Officer
Their job is to find out the situations in which something went wrong — a mechanical delay, bad weather, a medical emergency or a berserk passenger — then apologize to all passengers on that flight, within 24 hours of their bad experience, if possible.
But an apology for a bad flight can actually make a passenger happier than an uneventful flight, American Airlines executive Mark Mitchell said, citing internal surveys."When we handle a delay situation well, they score us about 14 to 16 points higher than they do for just a regular old on-time flight."
Southwest Airlines had the lowest consumer complaint rate of the 19 airlines ranked in 2009.
80% of CEO’s believe their brand provides a superior customer experience. 8% of their Customers agree
Why spend millions building expectations
for customers only to disappoint them?
For every 1 unhappy customer that tells you, there are 6 others who don’t.
These 7 unhappy customer will each tell 9 others (63).
Only 25% will act on what they hear - 16 customers may never buy again
Multiply average sale value over a year x 16 lost customers = annual loss of income per unhappy customer
The hidden impact of Customer Complaints…
68% of WoM Conversations
are mostly positive
8% of WoM Conversations
are mostly negative
The 3 things people talk mostly about
Great Customer Service
or Experience
Explaining how a Product or
Service Works
Remarkable andEntertaining
Stuff
2007 Country Rankings: Overall Service Maturity
89% 88%
79%75% 74%
64% 62%59% 59%
55% 53% 51%
45% 44%
38%33%
28%24% 22% 20%
14%
06%
Singapore
Canada
US
Denm
ark
Sweden
Norway
Finla
nd
Australia
UK
Japan
Irela
nd
Belgiu
m
Netherla
nds
Malay
sia
Germ
any
Portugal
France
Italy
Spain Bra
zil
Poland
South
Africa
SERVICE MATURITY
22) Poland21) South Africa
20) Brazil
19) Netherlands
18) Italy
17) Portugal
16) France
15) Malaysia
14) Ireland
13) Finland
12) Belgium
11) Australia
10) Spain
9) Sweden
8) Japan
7) USA
6) UK
5) Norway
4) Denmark
3) Germany
2) Singapore
1) Canada
22) South Africa
21) Portugal
20) France
19) Brazil
18) Germany
17) Italy
16) Poland
15) Spain
14) Malaysia
13) Ireland
12) USA
11) UK
10) Belgium
9) Canada
8) Australia
7) Singapore
6) Denmark
5) Norway
4) Japan
3) Netherlands
2) Sweden
1) Finland
22) South Africa
21) Poland
20) Spain
19) Netherlands
18) Brazil
17) Italy
16) Japan
15) France
14) Belgium
13) Finland
12) Germany
11) Malaysia
10) Norway
9) Australia
8) UK
7) Ireland
6) Portugal
5) Sweden
4) Denmark
3) USA
2) Singapore
1) Canada
CUSTOMER SERVICE MATURITY CITIZEN VOICE
Weighting 10% Weighting 50% Weighting 40%
Citizens’ perceptions of their countries’ customer service performance.
This offers an unparalleled opportunity to stand out, to exceed expectation and to generate more sales.
Meet Expectations(Survival)
Meet Desires(Success)
Meet Unrecognized
Needs(Transformation)
Creates EvangelismCreates Evangelism
Creates CommitmentCreates Commitment
Creates SatisfactionCreates Satisfaction
From Peak: How Great Companies Get Their Mojo From Maslow, By Chip Conley
Maslow’s Hierarchy of Customer Service
00
100
200
300
400
500
600
700
800
900
1,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Zappos Gross SalesZappos Gross Sales
“A Customer Service Company That Happens
To Sell Shoes”
“A Customer Service Company That Happens
To Sell Shoes”
Photo by orangeacid http://flickr.com/photos/orangeacid/459207903/
Charmin Toilet Paper5,600 people visited the Charmin Restroom in its first 24 hours.
So what can we do
Gravy
Soup
Kustard
Tea
Greet
Smile
Knowledge
Thanks
The Customer Service Mantra
At a large community hospital in the States, clinical quality was good, but patients and their families didn’t feel like they were being treated with care, dignity or respect by the
majority of the 4000 staff.
To identify the problem, they did not focus on operations, infrastructure or pay but rather on positive behaviour. They seeked out those individuals who were making a positive
impact, while others didn’t.
After the study, 5 key behaviours were identified:
Smile
Make Eye Contact
Identify Yourself
Let people know what you are doing and why
End every interaction by asking, “Is there anything else you need?”
Within a year the regional medical center
became best in class among its peers.
An example of how small things can make a big difference
The age old excuseHow can you motivate people when they get paid nothing?
Dignity and Self Worth
The key to unleashing great customer serviceManagement/ Boss/ Leadership
Everything starts or ends with the Service you provide for
your Customers
This is the cheapest and most effective way to stimulate either
positive or negative Word-of-Mouth