the 5 things you must know about customer experience
DESCRIPTION
As we learn to leverage content to support our business goals, companies are realizing that content is tied to the total Customer Experience. Improving our content and making it useful to our customers, supports our customers as they purchase and interact with our company. But what is Customer Experience? What does Customer Experience have to do with product content or web content or even the corporate blog? In this presentation, you learn the 5 top things you need to know about Customer Experience to set you and your company apart. For example: - What is an NPS? - How do you know how other companies in your industry are rated? - What is the Customer Journey and why do you care? - And moreTRANSCRIPT
5 things you must know about Customer ExperienceAnd what they mean to you
Sharon Burton 951-369-8590 Twitter: [email protected]
Tweet tag: #5CustExpCongility
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5 things you must know about Customer ExperienceAnd what they mean to you
Sharon Burton 951-369-8590 Twitter: [email protected]
Tweet tag: #5CustExpCongility
Thank you for attending!
▪ Sharon Burton
▪ Been in the Communication industry for 20 years
▪ I solve post-sales customer experience problems▪ Research how people feel about product instructions▪ Support clients in creating better product instructions▪ Teach communication at various universities
Tweet tag: #5CustExpCongility
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Overview for today
Definitions and then the list
▪ I want to cover some concepts and definitions so we all know what I mean as we go
▪ Ask questions in the Chat window and I’ll catch them at the end
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The cost of acquiring and keeping customers
Some definitions to get us all on the same page
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Getting customers is expensive
It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company
▪ Customer Acquisition Cost (CAC) is the cost of convincing people to buy your product or service
▪ Basically, it’s the total cost of sales and marketing divided by the customers you got
▪ B2C is typically less, B2B is typically more
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Keeping customers
A 5% increase in customer retention can increase profitability by 75% —Bain and Co
▪ Customer churn is customers leaving from the back door as you welcome new ones in the front door
▪ Customer churn is one of the most expensive things you can have
▪ An entire industry exists to analyze churn
Lifetime value
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% —Marketing Metrics
▪ Existing customers are already engaged with your products or services
▪ They have a lower cost to keep
▪ They should buy more stuff
▪ Higher monetary value to the business
▪ Can be your evangelists
Return rate
The average U.S. consumer spends 20 minutes trying to make a device work before giving up and returning it to the seller—2006 study by Dutch scientist Elke den Ouden
▪ Returns have increased 21 percent since 2007, according to a Accenture research report (Dec 2011)
▪ 5% of returns are related to actual product defects
▪ 27% reflect “buyer’s remorse”
▪ 68% of returned products are “No Trouble Found”
Customer experience increases sales
81% of companies …delivering customer experience excellence are outperforming their competitors — Peppers and Rogers, 2009 Customer Experience Maturity Monitor
▪ Customer experience is the outcome of all of the touch points that your customer has with your organization *
▪ The perception that customers have across all of their interactions with your organization *
▪ It’s a customer-centric view of your company from every touch point
* From Customer Experience Overview, 2011, Bruce Tempkin and Jeanne Bliss
The 5 things you must know
And a bonus one because I can
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1. What is an NPS (Net Promoter Score)?
“How likely is it that you would recommend [company name/product/service] to a friend or colleague?”
▪ Intended behavior metric▪ Scale 0 to 10
▪ Associates loyalty to future behavior
Group Score Feelings
Promoters
9 or 10 Loyal
Passives 7 or 8 Generally satisfied
Detractors
0 to 6 Unhappy
Calculate your NPS
% of Promoters - % of Detractors = NPS
Often expressed as a number, such as 6.35
Can be a negative number, which is bad
▪ Happy customers have ▪ Higher lifetime value▪ Lower churn rate▪ Lower return rate▪ Cheaper to sell to
▪ A good follow up to the NPS question is ▪ “Why?”
Can we use this elsewhere?
“How likely is it that you would recommend our instructions [or content] to a friend or colleague?”
▪ Measure the intended behavior for your content
▪ Use the same scale and measurements as the rest of the NPS
▪ If your content isn’t as high (or is higher) as the rest of your NPS▪ That’s something to look
at
2. How are other companies in your industry rated?
Knowing your NPS is good, knowing your industry NPS is even better
We don’t have an industry content NPS
▪ Several sites, including:
▪ http://www.insightsfromanalytics.com/blog/bid/324678/Top-10-U-S-Net-Promoter-Scores-NPS-for-2013
▪ If your company has a Customer Experience initiative, someone knows your NPS▪ And they want to improve
it
3. What is a Customer Journey?
The process a customer goes through while interacting with your company
Only the customer knows if it was good or not
▪ Typically though of in column phases, for example▪ Awareness▪ Interest▪ Desire▪ Action
▪ Can have customer rows▪ Activity▪ Motivations▪ Questions▪ Barriers
Customer journey
Customers typically have many journeys with your company
Think of scenarios but real
▪ Jane wants to add the new Sports channels to her cable TV subscription to watch baseball▪ Starting with Jane’s goal
▪ Chart out what she does and who she interacts with for each step of this
▪ Not how you think it should be, but how it actually is▪ Do this yourself, all the way
through
Adding baseball
From Jane’s point of view and how she feels about each step
▪ At the end, you see the customer steps, the employees involved, and the processes invoked
▪ Often, you discover major internal issues▪ Jane needs her account number▪ She does electronic banking and
has no bill handy▪ Jane is frustrated she has to call
back
▪ How could we make this easier? ▪ Verify by phone number?
4. What are touchpoints?
The places where a customer interacts with your company in some manner during the customer journey
Attended and unattended
▪ Touchpoints include: ▪ Letters▪ Knowledgebase▪ Support▪ Website▪ Product content
▪ Exposes internal processes
▪ Attended vs unattended
Attended vs unattended touchpoints
Customers develop their feelings about us through their interactions with us – the touchpoints
▪ Attended▪ We can monitor what the
customer is doing/how they are interacting with us and have the opportunity to guide that touchpoint experience.
▪ Unattended▪ We can’t monitor to know
what the customer is doing and we have no way to guide that touchpoint experience should it go poorly.
Most of our content is unattended
We often throw something over the wall and hope for the best
▪ We need data for unattended touchpoints
▪ Google Analytics▪ Website ▪ Product instructions
▪ Other tools help here, too
▪ Might also be good to allow ratings and comments
5. What is a customer ecosystem?
The entire system the customer is involved in during a journey
Including internal stuff the customer never sees
▪ Nothing happens in a vacuum
▪ Customer touchpoints are the tips of icebergs
▪ Processes internal to your company “bubble up” to touchpoints
▪ Often, entire groups have no idea of their customer impact
Customer ecosystems
Mapping out a journey to an ecosystem potentially identifies unknown customer impact
▪ Sort of like root cause analysis
▪ But deeper and more systematic
▪ Allows people to see groups who have customer impact several levels up from where they are making decisions▪ These groups may be very
happy with how they’re doing
▪ But the customer isn’t
JaneWants
baseballCalls
CableTVNavigates
phone
Listens to options
Selects current
customer
Selects Change Plan
Gets rep
Makes request
Verify account
No bill available
Can’t change account
Call ends Jane upset
Listens to music
CustSupport Channel 3
Programming
Programmers
Network system
Marketing
Copywriter
Advertising
Marketing
IT
Programmer
Support
Network system
Marketing
Support rep
CRM Database
Security
Network system
Knowledgebase
Internal to company
Customer exposed
JaneWants
baseballCalls
CableTVNavigates
phone
Listens to options
Selects current
customer
Selects Change Plan
Gets rep
Makes request
Verify account
No bill available
Can’t change account
Call ends Jane upset
Listens to music
CustSupport Channel 3
Programming
Programmers
Network system
Marketing
Copywriter
Advertising
Marketing
IT
Programmer
Support
Network system
Marketing
Support rep
CRM Database
Security
Network system
Knowledgebase
Internal to company
Customer exposed
Green=Happy, doing wellYellow=neutral, doing OKRed=Very unhappy
What does this mean for our content?
▪ In most companies, we don’t really know how content gets created and distributed▪ Or what is involved in that
creation or distribution▪ And what barriers that may
create for our customers
▪ We need to know this
▪ We need the ecosystem mapped out to show our integration
We may be delighted with our content
Our customer may not be delighted
The customer wins
6. Customer Effort Score (CES)
"How much effort did your request/purchase/etc take?"
▪ Customer Effort Score▪ How hard is it to do
business with a company▪ People don’t like doing
business when it’s hard▪ Increased churn rate
▪ Scale of 1 (very easy) to 5 (giant effort)
Which question do you ask?
"How much effort did finding/understanding/acting on this information take?"
▪ I think if you can ask only one question about your content in the content, ask the CES question▪ Specific content perception
▪ If you can ask only one question about your content at a higher level than in the content, use the NPS▪ Overall perception
Thoughts?Comments?Questions?
Tweet tag: #5CustExpCongility
Sharon [email protected] 951-369-8590
Twitter: sharonburtonwww.sharonburton.com
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