how to apply process innovation to the customer experience
TRANSCRIPT
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Dr. Joseph A. DeFeo, CEO Juran Global
Juran…By Design Series
How to Apply Process Innovation to the Customer
Experience
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82% of consumers will buy more from companies that make it easier to do business with them (Avaya and BT research, 2013).
70% are willing to spend more money with a company that provides good customer service (up from 58 percent in 2010) (Echo Research, 2012).
15% said they would spend 20 percent more with companies with good service (up from 5 percent in 2010) (Echo Research, 2012).
26% are not getting what they need the first time they contact a company’s customer service center (callcentres.net, 2011).
36% will consider defecting after only two or three attempts to resolve their query (callcentres.net, 2011).
27% indicated that they were likely to or had already moved their business as a result of their interaction with a customer service center (callcentres.net, 2011).
44% regard customer loyalty as a relic of the past (Avaya and BT research, 2013).
In contrast, if an organization
doesn’t understand its customers—or
delivers an unsatisfactory
experience—why would customers
buy more?
Customer is Always Right
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Why Customer Experience?
A huge shift in customer service and sales has
been underway, brought about by changing demographics, new technologies, and new
forms of communication and interaction - as well as increasing economic and competitive
pressure- Stuart DormanCustomer Experience Management
(CEM) crosses the boundary from contact center to enterprise-wide customer care and provides a new
way for companies and organizations to differentiate and grow.
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Customer Experience Management
CEM is the discipline of managing and treating customer relationships as assets, with the goal of transforming
satisfied customers into loyal brand advocates.
CEM must balance customers’ needs with the organization’s needs for growth and revenue, efficiency,
and obtaining the highest customer lifetime value (CLV) possible.
For the customer:
CEM delivers satisfying experiences so that they feel valued. Loyalty for life and positive word of mouth become likely.
For the business:
CEM improves CLV and drives higher revenue and improved margins throughout the customer journey.
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SF 1: Anticipate Customer Needs
Price? Value?or
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SF 1: Anticipate Customer Needs
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Proactively anticipate customer needs: Understand every touch point, every moment of truth when a
customer interacts with the organization and forms an impression—negative or positive.
It is essential to understand those moments, anticipate them, and take pre-emptive measures to ensure a positive experience.
Positive interactions drive customer satisfaction, loyalty, and lifetime value.
It’s cheaper and easier to retain a customer than it is to acquire a new one which will deliver a higher ROI on those initial acquisition costs and increase the lifetime value of the customer.
SF 1: Anticipate Customer Needs
Price? Value?or
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Have you ever tried to do business with your company?
An e-commerce site may have streamlined order fulfillment and payment processes—but how does it work for customers? Is it easy to find products and place an order, or is it confusing, slow, and frustrating?
What is it like to shop in one of the company’s retail stores?
While an internal decision to provide larger shopping carts may have increased sales, are the carts too big to comfortably navigate through the store’s displays?
What’s it like to try to call to place an order or get help?
SF 2: Understand Customer Perspective
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CEM relies on an enterprise-wide commitment.
Obviously, customer service representatives should have a CEM mindset, but so should developers, engineers, and accounts receivable reps.
Every employee becomes an agent to the customer.
Must become part of your company-wide improvement program and then made part of the culture.
SF 3: Establish Customer Mindset
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Identify every possible interaction or touch point a customer will experience when dealing with them.
SF 4: Follow the Customer
Need?
Ask
Store
Select
Interact
Complain
Purchase
Interact
Purchase
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1. Use your current LSS, Op Ex, BPM Program to make it happen.
2. Set Customer Experience goals.
3. Select Projects that will lead you to improving customer experience.
4. Instead of Value Stream Mapping Tasks that internal people do – follow the customer through your sales chain.
5. Use the VSM to identify negative interactions.
6. Design out negative interactions with positive process changes.
SF 5: Use Op Ex to Make It Happen
No Need to Add a New Program
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Understand Customers Needs
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Professional services firm found by the late Joseph M. Juran.
Consulting with organizations on performance improvement for 35 years.
Research best practices.
Work with great organizations.
Why Juran Global?
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