7 fundementals of a success ce program final
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The document outlines the seven fundamentals of a successful customer experience program, emphasizing the need to define the desired customer experience, engage senior executives, and understand customer emotions. It highlights the importance of designing a deliberate experience, establishing governance, and implementing measures for accountability. Real-world examples demonstrate the positive impact of effective customer experience strategies on metrics like the Net Promoter Score (NPS).
7 fundementals of a success ce program final
- 1. The 7 Fundamentals of a Successful Customer Experience Program Beyond Philosophy Speaker Panel : Colin Shaw, Founder & CEO Zhecho Dobrev, Consultant Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 1
- 2. 1. Viewer Window 2. Control Panel Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 2
- 3. Who are Beyond Philosophy? We are pioneers in the We work in many countries Thought leadership is our Customer Experience is all Customer Experience across several continents differentiator. We have literally written we do! space. the books on Customer Experience. We put emphasis on the We maintain links with Evidence based consulting - emotional side of customer academia to keep us aligned we look for what really drives experience with the latest breakthroughs business value Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 3 All rights reserved
- 4. Some of our clients… Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 4 All rights reserved
- 5. Bloomberg confirmation… Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 5
- 6. Increase in Net promoter Score: “As a result of its customer experience efforts, NPS has improved from -10 to +30” Increases shipping volume. “Maersk correlated a 4 point increase in Net Promoter Scores with a 1% increase in additional volume shipped by customers”. Training improves Net Promoter Scores in local regions. “Maersk gave regional divisions the option of putting regional customer experience councils in place. The 55 regions that have set up local councils also received a three-day training course in customer experience improvement methods. The firm then did a study comparing regions with and without a council. The result: participating local offices score 10 points higher on their NPS than those offices that opted out”. Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 6 All rights reserved
- 7. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 7 All rights reserved
- 8. Best Practice: 40 percentage points increase in Net Promoter Score Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 8
- 9. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 9 All rights reserved
- 10. Senior management engagement Realise that they don’t know what they are talking about! Be opportunistic You need to gain their respect - Don’t be a ‘yes’ person. Be enthusiastic! Show me the money! Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 10
- 11. Investing in Customer Experience pays off dividends… Literally! Source: http://cfigroup.com/downloads/Customer_Satisfaction_and_Stock_Returns_CFI_Group.pdf Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 11
- 12. C-level Executives Need to Embrace the Customer Experience Investors hate risk • strong customer retention = less risk Good CE generates superior returns • Customer satisfaction is critical for repeat business • Repeat business is usually very profitable • …as long as their loyalty comes from their satisfaction and not because prices are low Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 12
- 13. Employee engagement Communications Training Customer Experience team Engagement in experience design Ideation Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 13
- 14. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 14 All rights reserved
- 15. Human being We see things We act: are made up in and things are We feel things Can be seen a certain way done to us: Emotions as rational Experience Conscious & behaviour Psychology subconscious Experience Psychology Conscious: Recommends Customers do things Emotional Profile Nature: The need to feel safe options for me to keep the • Customers complain as – Maslow and Insurance cost of my product plan they can’t understand Nurture: You should within my budget why they have brought have insurance Subconscious: Listens to one product but you treat me and acknowledges my as 5 separate products concerns • Recommend you to others • Put phone down when waiting for you to answer Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 15 All rights reserved
- 16. A Customer Experience is made up of all these aspects… Experience Rational Experience Psychology Emotional Conscious Sub conscious Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 16 All rights reserved
- 17. Most organization are one dimensional Experience Experience Rational Rational Experience Psychology Experience Psychology Emotional Emotional Conscio us Conscio us Sub consci Sub ous consci ous Most journey mapping tools just look Beyond Philosophy looks at the rational experience and miss the at all these aspects underlying cause of an experience Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 17 All rights reserved
- 18. How do we know which emotions drive business value? 2 years of baseline research with London Business School ( 2005 – 2006) identified 20 emotions clustered into 4 hidden factors and that drive/ destroy value for business. Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 18
- 19. Credit card company example… 1 Getting a Card 2 Using my Card 3 Servicing my Account 4 Extending my Relationship 5 Having Financial Difficulty 6 Ending my Relationship 19
- 20. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 20 All rights reserved
- 21. Organizations are obsessed with fixing the basics Question: Which of the following elements describe Fixing the Basics best the CE you are trying to deliver? 67% Source: Beyond Philosophy original research ‘Seven key ingredients for a successful Customer Experience program in Telecoms”, 2012 33% 27% 8% 8% 8% Simplicity Friendliness Delight/Wow Total Quality Positive Efficiency Emotions Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 21
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- 23. Priority Order of the Attributes (Combined desirability and current value) Desired by Customer Effect on Value Top Ten - 0 Relative Magnitude + Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 23
- 24. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 24 All rights reserved
- 25. Yet, are businesses operationalizing emotions? Do you use customer journey Have you defined what emotions maps within your company? to evoke at certain customer touch points? 85% 70% 30% 15% Yes No Yes No Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 25
- 26. Cognitive Dissonance Negative Emotion Points Getting the card Evaluation of offer No Recommended by a •Web search Still Exit Application Wait for confirmation interested? Awareness friend/ direct mail •Conversation with the agent Getting the card Yes Cognitive Cross sold by an agent Dissonance Yes Yes Yes Fill in enrollment forms Do you need Are you Are you No or call Company your DD and Did you Receipt of call / just about aware of the Receipt of •PP supp cards miss it? e-mail to ? waiting time? No Welcome pack •Benefit 2 Partners transferred? confirmation Peak End •Direct Debit Prospect No Rule Theory Yes No Is it all clear Call to authorise Chase: Receive to you i.e. Yes Call to book / Receive someone to act • Benefit 1 Wait Benefit 1 & DD set up tickets Statement on my behalf • Benefit 2 Benefit 2 Cards etc? No Call XXX to check Call Benefit 1 to ask Receive DD Download 3rd Call to chase the 2nd call to chase PA to call to status of Benefit 1 about membership cancellation party DD the DD book on CM’s card number letter authorisation behalf form online Wait 10 days for Fill in & Acct 2nd call to 2nd Call to XXX to Send signed Apply for a Call Benefit 1 to Receipt of a response from Disclosure & authorise check status of PP form via post or supplementary check status of card Supp card XXX via the Authorisation someone to act card fax card online post form on my behalf Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 26
- 27. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 27 All rights reserved
- 28. Who owns the Customer Experience? CEO (President) Independent Cross- Marketing Operations Customer Service Sales Functional CE Unit Mature Customer Customer Customer Customer approach Experience Experience Experience Experience Majority 2nd option 2nd option Minority Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 28
- 29. Five Stages of Organizational Customer Experience Journey Natural Stage No need for Chief Customer Officer and control over departments Enlightened Stage • Chief Customer Officer • Inputs into Operational Budgets • Authority over other departments • Sets the customer measures and is • HR responsible for achievement cross-functionally: • Ops • Sets the cultural framework High End Transactional Stage • Equal authority to any of the • CE people introduced earlier on in the process functional groups - two gate entries e.g. in the design phase and • Decisions have to be signed by later on in the final testing phase the CE member • Meet the board twice a month • Veto rights • Appointments to talk to the CEO Low End Transactional Stage • Responsible for: • However: • customer measures • Dispose of limited budget • Prioritise initiatives • No authority to: • Facilitate changes • affect change in other departments Authority • Consult other department • access budgets in other departments Naïve Stage • Study Customer Expectations • Identify Problems • Analyse Cust. Feedback • Findings passed up the chain for others to act Responsibility Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 29
- 30. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 30 All rights reserved
- 31. Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 31
- 32. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 32 All rights reserved
- 33. Naive to Natural Sub- conscious Unconscious Competence Conscious Competence Conscious Incompetence Unconscious Incompetence 33
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- 35. Seven fundamentals of a successful Customer Experience program… 1. Define the Customer Experience you are trying to deliver 2. Plan to engage the senior execs and employees 3. Embrace Customer emotions and experience psychology Customer 4. Identify what drives & destroys value in your experience Centric 5. Design a deliberate Customer Experience 6. Establishing effective governance 7. Implement new measures & remunerate against them Beyond Philosophy © 2001 - 2012 www.beyondphilosophy.com 35 All rights reserved
- 36. Beyond Philosophy © 2001 - 2012 All rights reserved www.beyondphilosophy.com 36
- 37. Thank you! Colin Shaw Founder & CEO @ColinShaw_CX Zhecho Dobrev Consultant @ZhechoDobrev www.beyondphilosophy.com