going executive with an actionable voice of the customer

Going Executive with an Actionable Voice of the CustomerService & Support Professionals: ICMI Contact Center Essentials

John Goodman

Vice Chairman, TARP Worldwide

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Agenda

The Opportunity: VOC leads to CE management Drawbacks limiting actionability of VOC process Eight factors leading to an effective VOC Critical data sources which must be included Collecting and integrating data Quantifying the economic impact of service to

gain support from nine other departments Out-of-the-box actions; delivering Psychic Pizza

About TARP Founded in 1971—40 years of customer experience leadership

–White House Service Studies (instigated 800#s & GE Answer Center)

–Assisted 6 Baldrige Winners and 43 Fortune 100 Companies

–Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and “word of mouse” (eCare and Click & Mortar studies 1999)

Credited with developing the approach for quantifying the impact of quality on revenue, cost & WOM for companies like Toyota/Lexus, Apple, IBM, HP, 3M, USAA, American Express, Qualcomm, Museum of Modern Art, Allstate, AARP, FedEx, Neiman Marcus, Hyundai, US Green Building Council & Chick-Fil-A.

Customers will:

Use again

Buy other products

Tell others to buy

+ =DOING

THE RIGHT JOB

RIGHT THE FIRST TIME

MAXIMUM CUSTOMER

SATISFACTION & LOYALTY

ImprovedProduct & Service

Quality

Respond toIndividual Customers

Identify Sourcesof Dissatisfaction

Conduct RootCause Analysis

Feedback onPrevention

EFFECTIVECUSTOMERCONTACT

MANAGEMENT

Context of VOC Within the Customer Experience

Firefighting Mode

Building an Effective VOC: Six Big Ideas From Strategic Customer Service

1. Staff doesn’t cause most customer dissatisfaction – sales, products, processes and customers do

2. It is cheaper to give great service than just good service, the revenue payoff is 10-20X the cost

3. An effective Voice of the Customer includes all kinds of data describing the overall customer experience

4. People are still paramount – make the front line successful with flexibility and clear explanations

5. Deliver technology that customers will enjoy – delivering psychic pizza via any channel

6. Sensibly create remarkable delight

Why Most VOC Processes Lack Impact and Are Cost Inefficient

No unified picture of the customer experience– Depend on survey data which is a lagging indicator

– Unstructured data not systematically included

– Contact and internal data doesn’t tie to survey

Does not estimate revenue damage by granular issue– No action without economic imperative

– Broad indices are not actionable and cause frustration

Doesn’t focus on root causes and why answers didn’t work

Improvement must often be monitored with another survey

Departments with Interest in Your Unit’s Impact

1. Marketing – retention and word of mouth and “word of mouse”

2. Finance – margin and cost reduction

3. Brand – brand-aligned service stories

4. Quality – reduced customer error and innovative fixes

5. Channel partner management – less channel hassles

6. Risk – reduced claims

7. Legal and Regulatory – better service reduces visibility

8. HR – less problems leads to happier front line and lower turnover

9. Product development/market research – ideas and panels

Moving Beyond Being “Just the Call Center or Customer Insights Department”

Create an integrated Voice of the Customer

Create alliances and act as a consultant

– Marketing, brand management and PR

– Risk, regulatory relations

– Operations, distribution

Do the dirty work and the pilot testing

Let other departments get the credit

Eight Factors for an Effective Voice of the Customer Process

1. Well-defined ownership of process and

issues

2. Unified data collection

across whole lifecycle

3. Integration of multiple data

sources

4. Visible, granular,

actionable reporting

5. Clear revenue

and profit implications

6. Formal processes for

translating data into actions and

targets

7. Formal systems for

tracking impact

8. Process supported by

company-wide incentives

Collecting Data On Cause Of Dissatisfaction

- Fails to followpolicy

The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*

Customer20%-30%

Employee20%

- Wrong expectations- Customer error

-Fails to followpolicy

-Attitude

Company 40%-60%- Products and servicesdon’t meet expectations

- Marketing miscommunication- Broken processes

Poorly designed products,Processes, and marketingcreate most unmet expectations. Further, employees are often notequipped with effective responses to problems.

Customer expectationsmust be set and they mustbe educated on howto avoid problemsand surprises.

*Finding based upon TARP analysis problem cause data in over 200 consumer and B2B environments.

At least 30% of contacts are

preventable

Key Factors Driving Satisfaction No Unpleasant Surprises

If Customer Has to Contact– Accessibility – NOT ASA, broad hours via all channels,

accent can make strong first impression

– Taking ownership, Apology

– Clear, believable explanation, treated fairly

– Best estimate – reduced uncertainty

– Emotional connection

– Money is often not the best solution

– Timeliness and Keeping promises

15

Creating A Data Foundation for The VOC

Customer surveys

Customer contact, social media, communities and interaction data: coded and unstructured –why it happened

Internal operations process and quality measures

Employee input – second source of why

+ = Total view of the customer

experienceInternal

process and quality data and employee input

+ Customer contact and

interaction data

Surveys of customer

satisfaction and loyalty

Take The Role Of Chief Customer Officer

Use The Full Range Of Data Available

Operations data

Coded contact data

Unstructured data

Survey data

Social media

Employee input

Multiple levels and types of customers

The Challenge of Using Multiple Data Sources (Health Insurance Example)

1 2 543 6 7 98

Status call or email

Weeks

Unifying Sources into a Single Picture

Understand how representative the source is of the marketplace Understand how to extrapolate to the

marketplace as a whole Classify in a manner compatible with

other sources Key question is how many customers

have encountered a particular issue. Analysis by granular type of issue

TARP’s Enhanced Tip Of the Iceberg With Social Media

VOC must extrapolate complaints to the market place

Each touch point gives a separate estimate

Ratio of complaints to problems is “the multiplier”, usually 1:20-1:200

Estimating Number of Customers and Market Impact from Contacts to Different Touch Points*

* Data obtained via survey of random sample of customers on problem experience and touch point contacted, if any.

100 Airline customers

encountering a rude gate agent

2% to flight attendant0.8% to consumer affairs/

customers relations7% to supervisor on site5% to social media

0.2% to executive by e-mail1% to frequent flyer 800#4% to reservations 800#1% airline web site

3.5% Other

Integrating Touch Point Data (Airline Example)

Source

Problem Reports

Multiplier

Total Estimated Instances

Best Estimate # Instances

Web Site 6 100 600

Social Media & Unstructured Data

20 20 400

Reservations 14 25 350

Executive Complaint 2 500 1,000

555

Consumer Affairs 4 120 480

Survey 0.5% 100,000 500

# Customers in Month

Damage to Loyalty

Value of Customer

Monthly Revenue Impact

555 x .25 x $2,000 = $277,500

=

=

=

=

x xx

=

2,000

6,000

9,000

37,500

54,500Total Customers At Risk

200,000Customers

withProblems

20%Dissatisfied

Many NotRepurchasing

Some NotRepurchasing

50%Satisfied

MostRepurchasing

75% Do NotComplain

25%Complain

30%Mollified

Some NotRepurchasing

Converting Instances Into Revenue and ROI ImplicationsDemonstrating financial impact with the CFO and CMO

If customer worth $1,000, $54,500,000 at riskThree strategies: Prevention, Solicitation of Complaints and Improved Response

Analysis should be done overall and by specific point of pain

Show The CMO That Negative Word Of Mouth Can Trump Marketing

10%delighted

70%satisfied

Telltwo

Tell one

=

=

2,000

7,000

-3,000

10,000customers

Example calculation of potential impact

20%dissatisfied

Tell six

= -12,000

20% dissatisfaction can counter 80% satisfaction

Great Service Is A Word of MouthManagement Mechanism

10%delighted

80%satisfied

Telltwo

Tell one

=

=

2,000

8,000

4,000

10,000customers

Example calculation of potential impact

10%dissatisfied

Tell six

= -6,000

10% decrease in dissatisfaction results in net positive WOM

BrandWeek: Use customers’ word of mouth asprimary marketing mechanism

Quantifies the cost of inaction to precipitate action

Create the Economic Imperative for Action

55%

88%

58%

80%

18%

Loyalty

Dissatisfied

Satisfied

Mollified

2.0

3.0

1.0

6.0

WOM

1.0

Complained

Delight

Did Not Complain

ProblemExperience

No ProblemExperience

Experience

Customers

What are the issues?

Where are the issues?

Why are they not

contacting you?

How can we improve

response / recovery?

What is the ROI on addressing specific

issues?

Business ImpactContacthandling

Dissatisfied

Satisfied

Mollified

$63

$100

$85

$34

Customer Value/Yr.

$107

Complained

Contactbehavior

Did Not Complain

ProblemExperience


Category Consumers



Why are they not

contacting you?

How can we improve



issues?

Delighted

Satisfied

98% 3.6 $162

55%

88%

58%

80%

18%

Loyalty

Dissatisfied

Satisfied

Mollified

2.0

3.0

1.0

6.0

WOM

1.0

Complained

Delight

Did Not Complain

ProblemExperience


Experience

Customers



Why are they not

contacting you?

How can we improve



issues?

Business ImpactContacthandling

Dissatisfied

Satisfied

Mollified

Satisfied

Mollified

$63

$100

$85

$34

Customer Value/Yr.

$107

Complained

Contactbehavior

Did Not Complain

ProblemExperience


Category Consumers



Why are they not

contacting you?

How can we improve



issues?

Delighted

Satisfied

98% 3.6 $162

See article: Setting priorities using market damage by point of pain

Root Cause Analysis is Different Than Analysis of Reason For Call!

Cause is expectation, customer, process, product and response as well as staff

Speech Analytics can assist with the analysis of cause and response effectiveness

– Larger numbers of cases

– What words works best and worst

– Nuances that hard data will never pick up

Appliance company example

Understanding the Cause Allows Broadening the Range of Solutions

Welcome kits, calls and emails

Enhance response with flexible empowerment and explanations

Create efficient emotional connection

Use technology to deliver psychic pizza

– JIT education – utility visit

– Anticipates - Continental

– Simplifies - esurance

Delight sensibly – during slow service periods

Summary

Create a unified VOC to identify opportunities with payoff Understand the full range of root causes using speech

analytics Quantify the revenue and word of mouth impact overall and

by granular issue Prevent workload by proactively educating, connect,

explain and deliver psychic pizza Take control of the VOC and then become the Chief

Customer Officer

Outlined in detail in Strategic Customer Service published by AMACOM

For care package of articles: [email protected] or 703-284-9253

mailto:[email protected]�

Questions & Answers

John Goodman

[email protected]

703-284-9253

ICMI Information - icmi.com

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