roi in the customer experience - cx consulting · 2016-04-22 · customer experience via...

www.beyondphilosophy.com

ROI in the Customer Experience Colin Shaw

Best Selling CE Author

CEO, Beyond Philosophy


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Beyond Philosophy © All rights reserved. 2001-2011 2

www.beyondphilosophy.com 3Beyond Philosophy © All rights reserved. 2001-2011

The Beyond Philosophy Perspective

Customer Experience

is all we do!

Thought leadership is

our differentiator

Offices in London,

Atlanta with Partners in

Europe & Asia

Focus on the emotional side

of the Customer ExperienceLinks with

Academia

www.beyondphilosophy.com 4

We are Proud to Have Helped Some Great Organizations…

Beyond Philosophy © All rights reserved. 2001-2011


Why is this such a challenge….

It’s a religion…

Hearts and Minds, and

people’s understanding of the

Customer Experience are the

root cause of people’s lack of

acceptance…

5Beyond Philosophy © All rights reserved. 2001-2011


When in Rome…



The ways of getting to ROI…

General models

Company specific research

Other company case studies

Cost savings


www.beyondphilosophy.com 9

Source: Watermark Consulting 2010.



4,700 consumer surveys

Forrester analysis shows that good

customer experience correlates to:Consumers’ willingness to repurchase

Reluctance to switch

Likelihood to recommend firms

Correlation between customer

experience and loyalty increased in

every industry over the last year.

Source: Forrester. February 18th 2009.

Correlation between customer experiences and loyalty of 100 US companies



Case Study:

Enterprise with 2 million customers

Revenue = $200,000,000 per year

Average Revenue per customer = $100 per year

At risk — 55%Decline in wallet

share

Defect — 45%

Poor experience22%

Positiveexperience

78%

Complain2%

Do notcomplain

98%

At risk — 34%Issue not resolved

Defect — 28%

Resolved — 38%440,000customers

431,200customers

2,464 customers$246,400

194,040 customers$19,404,000

2,992 customers$299,200

237,160 customers$23,716,000

8,800customers

Sources: Cherry Tree Research, Bain &

Co., McKinsey, Harvard Business Review

and Gartner



General models



Cost savings


beyondphilosophy.com

Middle East Telecommunications Company

13

Product quality versus

emotional engagement


beyondphilosophy.com

Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers

14

To

p T

en

Relative Magnitude0 +-

Desired by Customer Effect on Value




General models



Cost savings



Improving Customer Satisfaction:

Memorial Herman Hospital System (MHHS)


The Context

The Change

The Benefit

•MHHS is a system of 11+ hospitals (3,500 beds) with 20,000 employees•Customer Satisfaction drives a large percentage of government sponsored reimbursement for

hospitals in the USA•This reimbursement is crucial for hospitals to recoup the cost of care to indigent population s for

which they are required to provide service for. •Roughly, every percentage point increase in PSAT above 75% represents $1.4m •MHHS provides more care to indigents than any of its competitors . •A typical Hospital had Patient Satisfaction scores of about 81%.

•Beyond Philosophy redesigned the MHHS experience via Moment Mapping and Emotional Signature and practitioner training

•The end result was a revamp of MHHS’ inpatient and outpatient Caner, Heart & Lung and Emergency Room experiences .

•On average, average Patient satisfaction

scores in the hospitals increased by:

•91% in poor performing hospitals

•12% in great performing hospitals

•This translates to an additional $10m revenue


What’s Next When You’re on Top of Your Game:

Overbury


• xxx• xxx

• xxx• xxx

The Benefit

The Change

• As a result the “Customer Experience Vision” initiative was launched based on 3 pillars:• Product – Make it• Process – Make it simple • People – Make it engaging

The Context

• Overbury started their “Perfect delivery” Customer Experience initiative aiming to deliver their projects on time, snag free and delight clients

• Revenues increased by 40% as “perfect delivery” was increased from 24% to 60% in the first year of the project

• In 7 years their revenue increase by 170% and they moved from 4th to 1st in market share

• The fast growth brought some problems:• competition began to copy “perfect delivery”

and was catching up• the perfect delivery of projects got stalled

• The company was on top of its game but was facing the possibility of a downward trend

• To keep up the upward trend they needed to take their customer experience to the next level

•Annual revenue increased by 15%• Increase “perfect Delivery” from 91% to 96%•The Net Promoter Score has increased significantly to reach 70% (one of the highest not only in the sector but also worldwide)

• Beyond Philosophy addressed the formulation of the new Customer Experience strategy by conducting:• Internal research to understand the current

thinking• Quantitative research and analysis to get

customer insights and generate hypothesis• Data analytics to test the hypothesis with

customers and generate statements


Differentiating in a Commoditied Market:

Comet


• xxx• xxx

The Benefit

The Change

The Context

• Commoditised market with no differentiation: customer’s perception was that all carry the same range of products, at the same price and same service

• Lack of trust – customers felt a duty of due diligence to shop around

• Poor service – Technicians didn’t engage with customers; Salespersons were paid on commission; they would either pounce on customers, lurk over their shoulder or chat at the till

• Increased “like for like” sales by 3%•Reduced customer complaints by 20%•Levels of trust increased by 10%

• Beyond Philosophy designed a differentiation strategy based on Customer Experience. With that purpose in mind were conducted:• Philosopher’s day workshop as training for

the senior management to get people on top on the right track for the new strategy

• Best Practice Study Tour to get inspiration form enlightened organizations

• Customer Mirrors to identify break points in the experience

• Moment Mapping to design the new experience

• Over the project the client understood that for the customers getting their new TV or gadget was a very emotional experience as well as letting someone into their house

• Some of the game changing ideas that came from this engagement were around creating a “Father Christmas” moment when technicians went to deliver and install the product..

• The store experience was also addressed in 41 pilot stores.

• The initial feedback was excellent and the programmes was rolled out in 200+ stores



General models

Company research specific


Cost savings



When Product Innovation is Not an Option:

Yorkshire Water


The Context

• Bottom of the OFWAT (the regulator) Customer Service League Table (being on top of it means you can charge premiums)

• Low customer perceptions (after 1995 water shortage fiasco and managers bonuses scandal)

• Increasing customer expectations• Facing the threat of competition• Toughest pricing review since privatisation in

1989

The Change

• One of the key recommendations was to remove measures such as “call duration” and “calls waiting”, so agents can focus on problem resolution and develop a caring attitude• To close an issue to customer’s

satisfaction on the first call costs £2-8 compared with £60-70 to send an engineer in a van

• Beyond Philosophy facilitated the development of a customer experience via • Workshops with the senior leader to define a

new Customer Experience Vision and Strategy• Training the call centre and field work staff on

how to implement the new initiatives

The Benefit

• £8.5m of cost savings as a direct result of Customer Experience improvements such as:• 40% reduction in written complaints • 20% reduction in repeat calls• Calls closed on first contact > 70% • 50% reduction of unnecessary field jobs• Appointments within 2hrs - 98%

• Improved overall Customer Satisfaction from 53%-91%

• Ranked 1st in OFWAT Customer Service League table (currently is second)

• “Yorkshire Water has turned itself from one of the most ridiculed companies of the late 1990’s to one of the most respected” -Financial Times, December 2002


Improving the CE can also lead to lower costs:Case Study 1: Major UK Call Centre Cost Issue


Cost Issue: Customer callbacks

driving costs skyward, CSAT is good

Customer calls to request time

sensitive document

Agent thus responds ―You should

have it within 3-4 days‖.

Agents wanted to be truthful.

75 % of customers call back within 3

days to check on status

Thus, company policy and procedure

stated ―3-4 days‖

Previous (rational) research showed

customer concerned with ―3 days‖

Qualitative Research suggested that

customers were really concerned

with a definitive answer, not ―5 days‖

Result: Call backs drop dramatically;

to 3% from 75% within weeks

However, agents knew from

customers that document often NOT

received within 3-4 days

Actions

• Agents trained on what customers

really wanted

• Script guidelines changed to ―You

will have it within 7 days‖


Summary…

Four methods for

producing ROI

Remember that this is

about Hearts and

Minds

When in Rome….



Questions?


London Office: 0207-917-1717

Atlanta Office: 1-678-638-6162


• [email protected]

roi in the customer experience - cx consulting · 2016-04-22 · customer experience via...

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