ecew 2013 keith schorah - customer experience: is it still the strategic investment for ceos?
DESCRIPTION
With only 8% of leading business’s able to use their customer feedback to create true change and the discipline's faltering ability to evidence ROIs, should CEOs continue to invest in major CX programs? Can the other 92% really afford to risk their customers leaving in a blaze of apathy? Drawing on his experience of delivering global customer experience programs, Keith will reveal how the true innovators are able to quantify ROI from their cx program, providing examples of customer satisfaction driving gains in financial metrics such as life-time customer value, average spend, share of wallet and profitability.TRANSCRIPT
Quantifying the value of Customer Experience
Confidential & Copyright © SynGro 2013
What is a Customer Experience Program?
2Confidential & Copyright © SynGro 2013
It is not paying “lip service”
A Customer Experience Program puts the customer at the centre of the business
3
Social Media
Analytics & Reports
Confidential & Copyright © SynGro 2013
Act
Complaints
Surveys
Collate & Distribute
Tactical:Case management
Regular analysisManagement rhythm
Strategic:Pattern identificationRoot cause analysis
Business improvementBest operating practice
Listen Understand
Why bother?
Confidential & Copyright © SynGro 2013 4
Complainer
Detractor - Net Promoter Score
Not satisfied – Customer Satisfaction Index
Not easy to do business with – Customer Effort Score
LEAD INDICATOR
Reduced spend
No ability to cross/up-sell
Defection / churn
Negative word of mouth
Show him the money!
How to get your CEO to sit up and take notice
5Confidential & Copyright © SynGro 2013
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
mini plus mini typowy bliski plus bliski typowy diament market sam. plus
market sam. typowy
monopolowy wygodny
Detractors Passives Promotors
Customer feedback information is goodIntegrated with financial data, it is better
DETRACTORS Segment A Segment B Segment C Segment D Segment E
# of CustomersAver. Volume (HL)Aver. Turnover ($)Total Volume (HL)Total Turnover ($)Aver. % of discountTotal EBIT
1632
33 894507
74 2984
60 297
26543
12 12611 398
8 743 3252
345 916
97112
38 37910 821
5 819 7203
387 852
59279
23 95046 775
19 954 6177
8 571 005
50166
19 6438 313
6 982 1672
345 510
DETRACTORSPOTENTIAL
RISK
# of CustomersAver. Volume (HL)Aver. Turnover ($)Total Volume (HL)Total Turnover ($)
Total EBIT
1 2271 213
90 9751 488 351
111 626 325
13 395 159
A B C D E F G H I
PromotersPassivesDetractors
6
Risk and benefits case
A B C D E
Opp
ortu
nity
PROMOTERSPOTENTIAL
GAIN
# of CustomersAver. Volume (HL)Aver. Turnover ($)Total Volume (HL)Total Turnover ($)
Total EBIT
2 5491 831
137 3254 667 219
350 041 425
42 004 971
Confidential & Copyright © SynGro 2013
Sometimes you have to look for trends to identify the benefit
7
2010 NPS
2011/12 NPS
Average Sales +25% to €3.54m
Average Sales +16% to €3.28m
Average Sales -36% to €1.81m
Confidential & Copyright © SynGro 2013
8
Prioritise strategic actions based on the loyalty metric score and financial data
Acc Owner: Steven ThomasDDi: 4 4 2 3 3 4 4 0 9 9 7
Email: [email protected]
Esc Manager: Paula Davies
Revenue Profit Share of Wallet
2013 2012 2011 2013 2012 2011 2013 2012 2011
ACT
BUD
26.3
VAR
24.3
+2.0
24.3
23.3
+1.0
21.7
22.3
-0.6
2.3
2.3
=0.0
3.3
3.5
-0.2
18.2%
22.0%
-3.8%
23.2%
19.0%
-4.2%
18.2%
22.0%
-3.8%
3.6
4.1
-0.5
Confidential & Copyright © SynGro 2013
9
Prioritise strategic actions based on the loyalty metric score and financial data
Confidential & Copyright © SynGro 2013
10
Needs to indicate comparisons versus customers in a similar segment
It is important to compare your performance with competitors against those issues that are most important to the customer
Most important
Least important
Confidential & Copyright © SynGro 2013
Customer
Analyse scores
Call backcustomer
reactions and analyse them
Take action
verbatims
Analyse root causes
Come up with actions and prioritize
Implement structural
Feedback improvements to employees
Contact customer – act on low scores and
share best practice from Promoter
feedback
Implement structural improvements
based on closed loop feedback insights and
other analyses
Inner circleOuter circle
More tactical More strategic
Confidential & Copyright © SynGro 2013 11
improvements
It is important to consider the processes that are supported by the data
Based on Bain and Co methodology
NPS, CSI get Measure
Gather
and customers
Train employees based on facts
from reports and customer case
examples
Best Operating Practices
Business improvement
projects
Cross functional
teams
(Use financial data)
12
This implies front office and back office coordination…and the involvement of people
Confidential & Copyright © SynGro 2013
Negotiation
PerformanceAcceptance
Preparation
Let me help you address
your concern
Preparation Negotiation
Acceptance Performance
Preparation Negotiation
Acceptance Performance
• Infrastructure• Technology
Performance
Preparation Negotiation
Acceptance
Preparation Negotiation
Acceptance Performance
Aligning feedback and operational excellence enhances customer
satisfaction and eliminates waste (cost savings)
The mobilisation of people is aligned to feedback and CSat
customer front line back office
Bringing the pieces together
Customer experience has 3 major parts– LISTEN, UNDERSTAND, ACT
Get the (loyalty) metrics right– Try them out, see what works
Link to financial performance– It’s not always obvious– Try different scenarios
Ensure front and back office work in harmony
Confidential & Copyright © SynGro 2013 13
Your CEO will sit up and take notice
