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Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction

#customerstrategy

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Today’s Speakers

Elizabeth GlagowskiEditor-in-Chief

Customer Strategist Journal

Don PeppersFounding Partner,

Peppers & Rogers Group

Ron WincePresident & General Manager

Peppers & Rogers Group

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Event logistics

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Agenda

4 Types of Customer Interactions

The Role of Technology

Implications for Competition

Q&A

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4 Types ofCustomer Interactions

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Routine and non-routine moments of truth

Consumer Engagement

Process StandardizationHighLow

Low

High

Business as usual

Predictable customer

lifecycle eventsSurprises, trials and tribulations

Threats to cost efficiency

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24

3

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Routine and non-routine moments of truth

Business as usual

Predictable customer

lifecycle eventsSurprises, trials and tribulations

Threats to cost efficiency

1

24

3

Consumer Engagement

Process StandardizationHighLow

Low

High

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1. Business As Usual

Providing product information

Selling or servicing a product

Collecting or processing a payment

Interacting at the store or point of sale

Interacting online or in the call center

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1. Business As Usual: Strategies

Do things right

• Don’t make mistakes

• Good intention

Product competence

• Quality• Price• Features• Service

Customer competence

• Customer insight

• Interaction• Customization• Customer trust

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1. Business As Usual: Tactics

Enable self-service

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1. Business as Usual: Examples

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Routine and non-routine moments of truth

Business as usual

Predictable customer

lifecycle events

Surprises, trials and tribulations

Threats to cost efficiency

Low

1

24

3

Consumer Engagement

Process StandardizationHighLow

Low

High

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2. Predictable Lifecycle Events

First invoice for an expensive or complex

product or service

Relationship renewal or end (e.g., auto lease or service subscription)

Upgraded or downgraded status in

a loyalty program

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2. Predictable Lifecycle Events:Strategies

Customer mapping

• Map the customer journey around the potential lifecycle

Standardize

• Scripts and templates to govern response to common inquiries

Onboarding

• Implement new and returning customer onboarding programs

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2. Predictable Lifecycle Events: Tactics

Advanced segmentation

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2. Predictable Lifecycle Events: Examples

Uses customer data from both members and non-members of MileagePlus

Airline delivers personalized and relevant communications involving critical day-of-travel updates

Consolidated marketing, sales and

service into one group to better

understand complete customer

lifecycle

It makes predictable and unpredictable

lifecycle events easy and seamless.

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Routine and non-routine moments of truth

Process StandardizationHighLow

High

Business as usual

Predictable customer

lifecycle events

Surprises, trials and tribulations

Threats to cost efficiency

Low

1

24

3

Consumer Engagement

Process StandardizationHighLow

Low

High

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3. Threats to Cost Efficiency

Infrequently asked questions

Unpopular product attributes or uses

Administrative details and record-keeping

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3. Threats to Cost Efficiency: Strategies

Data capture

• Collection mechanism will capture unanticipated interactions

Develop guidelines

• Deliver a frictionless customer experience

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3. Threats to Cost Efficiency: Tactics

Social learning

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3. Threats to Cost Efficiency: Examples

Cisco

Business customers have many different uses for wide variety of network products

• Cisco relies on customer communities to capture new and different uses

• Smart Web Technology Group (SWTG) at Cisco constantly harvests comments to improve site

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Routine and non-routine moments of truth

Consumer Engagement

Process Standardization

Low

Process StandardizationHighLow

Business as usual

Predictable customer

lifecycle events

Surprises, trials and tribulations

Threats to cost efficiency

Low

1

24

3

Consumer Engagement

Process StandardizationHighLow

Low

High

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4. Surprises, trials and tribulations

Customer experiences a major service issue Disaster or crisis caused

by outside events

Social media conflagration

Disruptive initiative by a competitor

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4. Surprises, trials and tribulations: Strategies

Self-organization

Your employees need to be

Engaged in their work and

Enabled to accomplish their mission

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The most powerful motivations for “heuristic” work are not monetary:

Autonomy of decision-making

Support of a team or a cohesive group

A purpose-driven profession or career

Strategy: Motivating high-value employees

A culture of customer trust provides the ideal platform for maximizing these motivations

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Engaging Your Company’s Employees: Tactics

Define internal social architecture• Sense of purpose• Common language• Valued behaviors• Recognition

Cycles of use• Coach employees to develop

habits that reinforce the social architecture

• Evolve the social architecture as the company evolves

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1. Confidence in the organization’s leaders

2. Collaboration and collegiality

3. Development opportunities

4. Clear and promising sense of purpose

Hay Group sees four requirements

Engaging Your Company’s Employees

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Engaging Your Company’s Employees: Example

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The RoleOf Technology

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Technology can extend and enhance decision-makers’ own capabilities

Technology can improve decisions

Source: McKinsey Quarterly 4, 2005

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Implicationsfor Competition

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Implications for competition

Source: McKinsey Quarterly 4, 2005

The bottom line:Proficiency in non-routine decisions cannot be easily imitated by competitors

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The world’s biggest companies are growing at a faster rate than smaller firms!

Not just because of scale and market dominance

Global firms combine tangible and intangible assets across the whole enterprise

Leveraging capabilities for non-routine decisions

Mobilizing talent and knowledge across business units

They create their own “network effect”

Global companies definitely “get it”

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ExxonMobil thinks global, acts local

Total headquarters staff: 300

86,000 workers (down from 100,000 in 5 years)

10 separate operating companies, using three major brands – Exxon, Mobil, Esso

Present in more than 150 countries

ExxonMobil’s sales are the size of Taiwan’s economy

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Q&A Session

Elizabeth GlagowskiEditor-in-Chief

Customer Strategist Journal

Don PeppersFounding Partner,

Peppers & Rogers Group

Ron WincePresident & General Manager

Peppers & Rogers Group

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Don PeppersFounding Partner

dpeppers@peppersandrogersgroup.com+1.203.989.2200

@donpeppersLinked In

Tom SchmalzlDirector of Business Development

tschmalzl@peppersandrogersgroup.com+1.203.989.2208@peppersrogers