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Engaged Employees Drive Customer Loyalty September 25, 2014 2 pm to 3 pm EDT W E B C A S T S E R I E S

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Engaged Employees Drive Customer Loyalty

September 25, 2014

2 pm to 3 pm EDT

W E B C A S T S E R I E S

Employee Engagement Payoff

CEMDNA Playbook Strategy℠

Employee Engagement is Fundamental to the Total

Customer Experience

Kevin Scanlon Director, Total Customer Experience

7 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Who is EMC

Mobile Cloud Big Data Social

T R U S T

8 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Mainframe, Mini Computer Terminals

LAN/Internet Client/Server PC

Mobile Cloud Big Data Social Mobile Devices

MILLIONS OF USERS

THOUSANDS OF APPS

HUNDREDS OF MILLIONS OF USERS

TENS OF THOUSANDS OF APPS

BILLIONS OF USERS

MILLIONS OF APPS

Source: IDC, 2012

9 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

EMC’s Customer Experience Program

Total Customer Experience (TCE) Mission…

The Total Customer Experience (TCE) Program is a company-wide commitment to consistently exceed our customers’ expectations for quality, service, innovation,

and interaction.

10 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

EMC’s Total Customer Experience Program

TCE PROGRAM

SALES STRATEGY

Sales Ops /Pre-Sales

Global Svs

Theaters / COE

TCE Program Office

Prod Mgmt / Eng

Mktg BUs

E2E CUSTOMER INTELLIGENCE

• E2E Program Integration • Program Governance & Planning • Risk/Issues Mgmt & Escalations • Knowledge Mgmt

• Comms Mgmt • Dependency Awareness • Program Reporting/Updates

LISTENING POSTS

VoX PROGRAM(s)

SOCIAL MEDIA PRODUCT

TEAM(s) / ENG

THEATERS / COE

CUSTOMER SUPPORT

CUSTOMER FORUMS

EXTERNAL ANALYSTS/SMEs

CUSTOMER ADVOCACY

CUSTOMER ADVOCACY

IMPROVED CSAT & SUSTAINED LOYALTY

E2E CUSTOMER DATA

IMPROVED SHARE OF WALLET

TARGETED CUSTOMER CAMPAIGNS

11 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

VALUABLE ASSETS

DRIVE IMPROVEMENT

RESULTS

1. Temkin Group Insight Report, Social Employee Engagement, 2014 2. Hay Group Study – www/haygroup.com/downloads/us/engaged_performance_120401.pdf 3. Corporate Leadership Council – www.mckpeople.com.au/SteMedia/w3svc161/Uploads/Documents/760a/459-93b3-43c7-b52a-2a74e984c1a0.pdf

• Highly engaged employees are 3x as likely to do something good for the company

• Engaged employees are 2.5x likely to stay late…if something needs to be done

• Engaged employees are 2x as likely to help someone they work with, even if they don’t ask for help

• 2.5x more revenue w engaged employees vs competitors with low engagement levels

• Engaged employees are 87% less likely to leave a company than their disengaged counterpart

• 75% of companies with strong employee engagement deliver an above average customer experience

Importance of ENGAGED employees

• 50% of highly engaged employees are likely to make a recommendation for improvement…versus 17% of their disgruntled peers

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12 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Voice Of Field: How We Listen

Description/Objective

• Bi-annual survey that captures EMC employees are seeing with customers, partners, competitors, and in the market to enable EMC to continue to drive improvements to address feedback

• Drives internal priorities around customer experience and well as operational initiatives

• Closed loop process to drive visibility and adoption

13 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Total Customer Experience Day

OBJECTIVES

EMC will celebrate TCE Day on October 7th • Showcase EMC’s customer-centric

culture • Celebrate and thank EMC employees • Solicit feedback to drive continuous

improvement

DETAILS

Sum

mar

y 1. Celebrate EMC ‘s on-going commitment to our customers

2. Thank EMC professionals globally for their tireless focus and commitment to our customers

• Onsite Events: 10+ locations, 6 countries

• Online/Virtual Engagement: Customers & employees

• Key Event Elements: Executive engagement Interactive data visualizations Employee recognition Internal & External Social Media promotion

14 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

On-Going Global Engagement

Name: Jane Doe Country: USA Role and Organization: Marketing Development Associate, Americas Field Marketing I define the customer experience by managing EMC's social presence within Spiceworks, a professional community and application that reaches more than 5M IT pros. Along with keeping our vendor page "spicy" and up to date, I work collaboratively with the inbound and product teams to ensure that we are listening and responding to customer feedback in the community. This helps to develop a better understanding of customer environments and fosters 1:1 relationship building.

You Define TCE (ALL EMC)

Virtual engagement for ALL EMC employees thru September 19th

Virtual Experience

On-Site Experience

• Virtual TCE Day Meeting Area (prerecorded content with interactive concepts & social “sharing” platform)

• Executive Welcome Message

• Interact virtually with EMC Executives, Expo & You Define TCE Wall

• Closing Message & Interact with Analytics Showcase & You Define TCE Wall • Interact with Analytics Showcase

& You Define TCE Wall • External Guest Speaker • Subject Matter Panel • Closing Message & Interact with Expo & You Define Wall

15 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Measuring EMC’s Customer Experience

Business Analytics as a Service: predictive analytics; data driven decisions; shared across EMC

OUR APPROACH HOW WE MEASURE

Customer Account Report 11 Quality Metrics

Joint goals established by PBU, SPL and TCE

Net Promoter Score (Customer loyalty)

CSAT for each step of Customer journey map

Competitive feedback

Net Promoter Score (Partner loyalty)

Competitive Benchmarking

16 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Our Pledge

In our pursuit of customer satisfaction and

loyalty through the active engagement of our

employees.

On continually improving our approach to a

memorable customer experience by engaging our

customers, partners & employees.

Fostering a hard-working, fun culture where

collaborative engagement makes the impossible

probable and the probable unlikely.

Our Path Forward…

17 © Copyright 2014 EMC Corporation. All rights reserved. © Copyright 2014 EMC Corporation. All rights reserved.

Our Path Forward… Summary

• Every employee impacts your customer experience • To meet the growing needs of your constantly evolving customer base,

you need engaged employees

• Enterprises with engaged employee experience, on average, better bottom line results

• Continuously improving your approach to employee engagement is required

• Being fanatically focused while having fun can yield great results around your customer experience and the employees driving your vision

19 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

We offer a range of mission-critical software and award-winning support, training, and consulting services covering:

How we do it. The benefits.

We develop everything via community-powered innovation.

Shared development reduces costs & accelerates innovation.

Open collaboration offers products that genuinely meet customers' requirements.

CLOUD OPERATING SYSTEM

VIRTUALIZATION STORAGE

MIDDLEWARE

Red Hat: What we do

Flexibility

Faster technology innovation

Alignment to your needs

Better price/performance

Better quality

20 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Engagement Drives Renewals and Upsell

Subscription Model

Earn Customer Loyalty

Companies with higher customer experience scores have competitive

advantages in the marketplace, greater loyalty, and can lead to millions to billion+

annually [1]

[1] The business impact of Customer Experience, 2012. Forrester Research, Inc.

Engaged Customers

Satisfied Customers

Customer Loyalty Renewals Upsell

Detractor comment after NPS closed loop: "Well, I really never expected you

guys to actually follow up and call me regarding my survey feedback."

Not Engaged Engaged Highly Engaged

Account Renewal Rates Overall renewal rate -20%

+5% +15% to +30%

21 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Engage Your Customers Relationship Experience - NPS Transactional Experience - CSAT

22 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Engage Your Employees ‘Protecting the Treasure’: Retention at Red Hat

23 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Reduced recruiting costs Higher morale + strengthened culture Stronger customer relationships More career opportunities Increased annual bookings

Engaged Employee Outcomes

People +

Tools +

Processes

24 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Content or Scope of Work

Work Stress

Career Growth (Promotion) Opportunities

Strategic Direction or Management

Compensation

Working Relationship with Manager

Training & Development opportunities

Other work related factor not listed

Benefits offered Working Relationship with co-workers

Operations and Management of your Department

Key Reasons for Not Being Engaged

Recognition

25 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Individual Contributors

People Don’t Leave Companies, They Leave Managers

Managers are key to the solution

26 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Engaged Employees Stay

EDUCATE EMPOWER ENFORCE

Relevant Red Hat Manager

+ Engaged Associates

27 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Employee Development

Technical Competency Soft Skills Development Customer Experience/Engagement

− Customer Success and Proactive Relationship Management Training

− Essential, proficiency, excellence Leadership Training

28 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Internal Company Recognition

Award plaques T-Shirts

Red Hat Reward Points

Compensation − Salary+Bonus+Stock

Recognition − Peer Level

Contribution Innovation Collaboration

− Company Level

Career Opportunity − Promotion − New Role

29 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

External Company Recognition

IDC Multi-Client Study, Enterprise Software Support

Services: Utilization and Satisfaction Study, May

2012

30 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Developing Stronger Engagement

31 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Team 360 Sample Manager Report

32 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Managers Team Engagement Checklist

Does everyone in my team know what is expected of him or her at work for this quarter?

Does my team have all the support they need to fully accomplish their tasks for their work?

Am I putting people in the right roles and playing to everyone’s strengths on the team?

Do they have the opportunity to do things they do best everyday?

Have I acknowledging people in my team this quarter on their successes?

Did I have 1:1 conversations about professional career goals with my team members this quarter?

Does my team need any training do their jobs well? Did I check with each one about their training needs?

Engaging Your Team Regularly

33 Red Hat Engaged Employees Drive Customer Loyalty | www.redhat.com | September 2014

Why Does Engagement Matter

Requests for Information

Check for upcoming webcasts at www.omegascoreboard.com/webcast.php

Bill Bradley VP, Marketing & Business Development Omega Management Group Corp. [email protected] Tel. 978/715-2587