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© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Effortless
Experience
Conquering the New
Battleground for
Customer Loyalty
Matt Dixon
Chief Product & Research Officer
Effortless Experience
is a trademark of
Challenger, Inc.
![Page 2: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/2.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Have You Seen This Giraffe?
![Page 3: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/3.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Moment of “Wow”
![Page 4: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/4.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Three Questions That Guided Our Research
![Page 5: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/5.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
What impact do
customer service
interactions have
on a customer’s
future loyalty?
Three Questions That Guided Our Research
![Page 6: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/6.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
What are the things
customer service can do to drive
loyalty?
What impact do
customer service
interactions have
on a customer’s
future loyalty?
Three Questions That Guided Our Research
![Page 7: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/7.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
How can
service improve
loyalty while still reducing
operating costs?
What are the things
customer service can do to drive
loyalty?
What impact do
customer service
interactions have
on a customer’s
future loyalty?
Three Questions That Guided Our Research
![Page 8: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/8.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
![Page 9: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/9.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
What Is Loyalty?
▪ Repurchase
▪ Share of Wallet
▪ Word of Mouth
![Page 10: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/10.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Our Study in Brief
![Page 11: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/11.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Our Study in Brief
125,000+ customers
![Page 12: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/12.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
5,000+ customer service reps
Our Study in Brief
125,000+ customers
![Page 13: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/13.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Our Study in Brief
100+ companies
125,000+ customers
5,000+ customer service reps
![Page 14: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/14.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Our Study in Brief
125,000+ customers
5,000+ customer service reps
100+ companies
3 Major Findings
![Page 15: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/15.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 1: Delight Doesn’t Pay
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#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 1: Delight Doesn’t Pay
More Loyal
Less Loyal
Below Customer
Expectations
Exceeds Customer
Expectations
Meets Customer
Expectations
The Perception
![Page 17: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/17.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 1: Delight Doesn’t Pay
More Loyal
Less Loyal
Below Customer
Expectations
Exceeds Customer
Expectations
Meets Customer
Expectations
The Reality
The Perception
![Page 18: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/18.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 1: Delight Doesn’t Pay
More Loyal
Less Loyal
Below Customer
Expectations
Exceeds Customer
Expectations
Meets Customer
Expectations
The Reality
The Perception
“Delight” only happens 16% of the time
“Delight” increases operating costs 10-20%
![Page 19: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/19.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 2: Service Drives Disloyalty
![Page 20: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/20.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Finding 2: Service Drives Disloyalty
More Loyal
More Disloyal
1.00x
3.97x
Customer Service Impact on Loyalty
![Page 21: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/21.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
More Loyal
More Disloyal
1.00x
3.97x
Drivers of Disloyalty
■ Repeat contacts
■ Channel switching
■ Transfers
■ Repeating information
■ Robotic service
■ Policies and processes
customers have to endure
■ “Hassle factor”
Customer Service Impact on Loyalty
Customer Effort
Finding 3: Mitigate Disloyalty by Reducing
Effort
![Page 22: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/22.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Business Case for the Effortless
Experience
![Page 23: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/23.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Business Case for the Effortless
ExperienceLow-Effort
Experience
High-Effort
ExperienceRepurchase
94%
4%
![Page 24: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/24.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Business Case for the Effortless
ExperienceLow-Effort
Experience
High-Effort
Experience
Increased Spend/
Share of Wallet
88%
4%
Repurchase
94%
4%
![Page 25: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/25.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Business Case for the Effortless
ExperienceLow-Effort
Experience
High-Effort
Experience
Negative WOM
1%
81%
Increased Spend/
Share of Wallet
88%
4%
Repurchase
94%
4%
![Page 26: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/26.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Negative WOM
1%
81%
Increased Spend/
Share of Wallet
88%
4%
Overall Disloyalty
9%
96%
Repurchase
94%
4%
The Business Case for the Effortless
ExperienceLow-Effort
Experience
High-Effort
Experience
![Page 27: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/27.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
The Business Case for the Effortless
Experience
Cost to Serve by Customer Effort Level
$30.00
LowHigh
$15.00
$0.00
$10.11
$16.21
To
tal C
ost
to R
eso
lve
Se
rvic
e R
eq
ues
t
Customer Effort
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#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
$30.00
LowHigh
$15.00
$0.00
Going from a relatively high-effort
service experience to a low-effort
one reduces costs by 37%.
$10.11
$16.21
To
tal C
ost
to R
eso
lve
Se
rvic
e R
eq
ues
t
Customer Effort
The Business Case for the Effortless
Experience
Cost to Serve by Customer Effort Level
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© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Four Pillars of Low-Effort Service
Frontline
Control
Next Issue
Avoidance
Channel
Stickiness
Experience
Engineering
1 32 4
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© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Frontline
Control
Next Issue
Avoidance
Experience
Engineering
The Four Pillars of Low-Effort Service
Channel
Stickiness
1
![Page 31: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/31.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Which Would You Rather Use?
![Page 32: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/32.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Which Would You Rather Use?
![Page 33: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/33.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Your Customers Don’t Want to Talk to You
![Page 34: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/34.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Web Preference Phone Preference
1.0x
2.5x
Your Customers Don’t Want to Talk to You
Company Perception
![Page 35: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/35.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Web Preference Phone Preference
1.0x
2.5x
1.0x 1.0x
Web Preference Phone Preference
Pattern largely holds across
issue types and demographics
Actual Customer Preference
Your Customers Don’t Want to Talk to You
Company Perception
![Page 36: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/36.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
But They’re Still Calling
First Contact Channel
Web Phone
57.7% of Phone Callers First Went
to the Company’s Website
![Page 37: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/37.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
First Contact Channel
Web Phone
Concurrent Channel Usage
35.5% of Phone Callers Were on
the Company’s Website While Talking
to a Representative
Web
and
Phone
Phone
Only
But They’re Still Calling
57.7% of Phone Callers First Went
to the Company’s Website
![Page 38: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/38.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Customer Choice Is Not the Answer
![Page 39: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/39.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Customer Choice Is Not the Answer
Value CHOICE
Over Ease16%
▪ Want issue resolved in their
preferred channel
▪ Prioritize channel choice
above all else
![Page 40: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/40.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Value CHOICE
Over Ease16%Value EASE
Over Choice84%
Customer Choice Is Not the Answer
▪ Want issue resolved in their
preferred channel
▪ Prioritize channel choice
above all else
▪ Want fast resolution without
bouncing around channels
▪ Prioritize low effort over
channel choice
![Page 41: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/41.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Choice Overwhelms
![Page 42: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/42.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
“I didn’t have time to write you a short letter…so, I wrote you a long one instead.”
Mark Twain
![Page 43: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/43.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Gunning Fog Index
![Page 44: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/44.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Keeping It Simple
What Tim Geithner Said
“The US government should
create one agency with
responsibility for systemic
stability over the major
institutions and critical
payments and settlement
systems and activities.”
![Page 45: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/45.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
What Tim Geithner Said
“The US government should
create one agency with
responsibility for systemic
stability over the major
institutions and critical
payments and settlement
systems and activities.”
Keeping It Simple
FOG Index Score: 24.60
![Page 46: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/46.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
What Tim Geithner Said
“The US government should
create one agency with
responsibility for systemic
stability over the major
institutions and critical
payments and settlement
systems and activities.”
What He Should Have Said
“Set up an agency that
makes sure banks remain
stable and follow the law.”
Keeping It Simple
FOG Index Score: 24.60
![Page 47: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/47.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
What Tim Geithner Said
“The US government should
create one agency with
responsibility for systemic
stability over the major
institutions and critical
payments and settlement
systems and activities.”
FOG Index Score: 24.60 FOG Index Score: 8.46
http://gunning-fog-index.com/index.html
What He Should Have Said
“Set up an agency that
makes sure banks remain
stable and follow the law.”
Keeping It Simple
![Page 48: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/48.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Four Pillars of Low-Effort Service
Frontline
Control
Next Issue
Avoidance
Channel
Stickiness
Experience
Engineering
2
![Page 49: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/49.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Worst Question a Rep Can Ask
![Page 50: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/50.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Worst Question a Rep Can Ask
“Have I fully resolved
your issue today?”
![Page 51: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/51.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Companies think 76.7% of customer
issues are resolved
in one contact
The Worst Question a Rep Can Ask
“Have I fully resolved
your issue today?”
![Page 52: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/52.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Companies think 76.7% of customer
issues are resolved
in one contact
But customers claim
only 40% of their
issues are resolved
in one contact
The Worst Question a Rep Can Ask
“Have I fully resolved
your issue today?”
![Page 53: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/53.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Why Do Customers Call Back?
![Page 54: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/54.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Why Do Customers Call Back?
Failing to resolve the
issue the customer
contacted us about
Explicit Issue
Failures
Drivers of Callbacks
![Page 55: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/55.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Why Do Customers Call Back?
Failing to resolve the
issue the customer
contacted us about
Explicit Issue
Failures
Failing to resolve issues
related to what the customer
contacted us about
Implicit Issue
Failures
Drivers of Callbacks
![Page 56: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/56.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
Failing to resolve the
issue the customer
contacted us about
Explicit Issue
Failures
54% 46%
Failing to resolve issues
related to what the customer
contacted us about
Implicit Issue
Failures
Why Do Customers Call Back?
Drivers of Callbacks
![Page 57: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/57.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
One Step Ahead
![Page 58: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/58.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Four Pillars of Low-Effort Service
Frontline
Control
Next Issue
Avoidance
Channel
Stickiness
Experience
Engineering
3
![Page 59: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/59.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Customers Perceive Effort Differently
Than We Thought
![Page 60: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/60.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
What customers have to DO to resolve their issues
Customers Perceive Effort Differently
Than We Thought
![Page 61: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/61.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
What customers have to DO to resolve their issues
How customers FEEL when resolving their issues
Customers Perceive Effort Differently
Than We Thought
![Page 62: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/62.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
![Page 63: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/63.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
Taking a position of
active support on
behalf of the
customer
Advocacy
![Page 64: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/64.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
Taking a position of
active support on
behalf of the
customer
Advocacy
Customer effort decreases 77%
![Page 65: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/65.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
Taking a position of
active support on
behalf of the
customer
Advocacy
Customer effort decreases 77%
Using terms that
prevent negative
reactions
Positive
Language
![Page 66: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/66.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
Taking a position of
active support on
behalf of the
customer
Advocacy
Customer effort decreases 77%
Using terms that
prevent negative
reactions
Positive
Language
Customer effort decreases 73%
![Page 67: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/67.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Words Matter (A Lot!)
Strategically
sequencing an
option within a
range of choices
Anchoring
Taking a position of
active support on
behalf of the
customer
Advocacy
Customer effort decreases 77%
Using terms that
prevent negative
reactions
Positive
Language
Customer effort decreases 73%
![Page 68: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/68.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Strategically
sequencing an
option within a
range of choices
Anchoring
Customer effort decreases 55%
Taking a position of
active support on
behalf of the
customer
Advocacy
Customer effort decreases 77%
Using terms that
prevent negative
reactions
Positive
Language
Customer effort decreases 73%
Words Matter (A Lot!)
![Page 69: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/69.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
How Does This Make You Feel?
![Page 70: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/70.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Four Pillars of Low-Effort Service
Frontline
Control
Next Issue
Avoidance
Channel
Stickiness
Experience
Engineering
4
![Page 71: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/71.jpg)
#CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN
The Accommodator
The RockThe Controller The Competitor
The InnovatorThe EmpathizerThe Hard Worker
![Page 72: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/72.jpg)
#CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN
Currently in Seat Preferred to Hire Best for Low-Effort Service
![Page 73: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/73.jpg)
#CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN #CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN
Currently in Seat Preferred to Hire Best for Low-Effort Service
Hard Worker • 20%
Controller • 15%
Empathizer • 32%
Rock • 12%
Accommodator • 11%
Innovator • 9%
Competitor • 1%
![Page 74: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/74.jpg)
#CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN #CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN
Currently in Seat Preferred to Hire Best for Low-Effort Service
Controller • 2%
Empathizer • 42%
Innovator • 18%
Rock • 15%
Hard Worker • 11%
Accommodator • 6%
Competitor • 6%
Hard Worker • 20%
Controller • 15%
Empathizer • 32%
Rock • 12%
Accommodator • 11%
Innovator • 9%
Competitor • 1%
![Page 75: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/75.jpg)
#CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN #CustomerEffort© 2016 CEB. All rights reserved. CCC5880616SYN
Currently in Seat Preferred to Hire Best for Low-Effort Service
Controller
Empathizer
Rock
Accommodator
Innovator
Hard Worker
Controller • 2%
Empathizer • 42%
Innovator • 18%
Rock • 15%
Hard Worker • 11%
Accommodator • 6%
Competitor • 6%
Hard Worker • 20%
Controller • 15%
Empathizer • 32%
Rock • 12%
Accommodator • 11%
Innovator • 9%
Competitor • 1% Competitor
![Page 76: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/76.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
A Blueprint for Your New Contact Center
“Kick-Ass Customer Service”
Jan-Feb 2017 issue
“Rethinking Customer Service”
Nov-Dec 2018 issue
![Page 77: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/77.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
The Four Pillars of Low-Effort Service
Frontline
Control
Next Issue
Avoidance
Channel
Stickiness
Experience
Engineering
1 32 4
![Page 78: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/78.jpg)
#CustomerEffort© 2016 Challenger, Inc. All rights reserved.
Strongly
Disagree
Disagree Neither Agree
Nor Disagree
Somewhat
Agree
Agree Strongly
Agree
The company made it
easy for me to handle
my issue
A great way for service functions to detect
potential disloyalty…
…and a way for service functions to positively
impact Net Promoter Score®
Overall Disloyalty Percent of Detractors
Low Effort Low EffortHigh Effort High Effort
9%
96%
The Customer Effort Score 2.0
4%
67%
![Page 79: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/79.jpg)
© 2016 Challenger, Inc. All rights reserved. #CustomerEffort
To learn more about reducing customer effort,
visit www.challengerinc.com or contact Lauren
Pragoff at [email protected]
@matthewxdixon
linkedin.com/in/matthewxdixon
To learn more about Tethr, visit tethr.com or
contact Matt at [email protected]
More ways to stay connected
![Page 80: The Effortless Experience...© 2016 Challenger, Inc. All rights reserved. #CustomerEffort The Effortless Experience Conquering the New Battleground for Customer Loyalty Matt Dixon](https://reader033.vdocuments.us/reader033/viewer/2022053005/5f092d457e708231d42597b0/html5/thumbnails/80.jpg)