Business Case and Implications for Consistency in the Customer Experience
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The document discusses the importance of consistency in customer experience, highlighting how humans are inherently wired to value it, which in turn drives customer loyalty. It presents a business case illustrating the negative impacts of inconsistency and proposes management strategies to achieve consistency across all customer interactions. Key recommendations include managing inconsistency at its source, utilizing appropriate analytics, and focusing on the customer journey to enhance satisfaction.
Business Case and Implications for Consistency in the Customer Experience
- 1. Kinesis CEM, LLC Business Case and Implications for Consistency in the Customer Experience http://www.kinesis-cem.com/Insights-Consistency-and-the-Customer-Experience.shtml Eric Larse is co-founder of Seattle-based Kinesis, which helps companies plan and execute their customer experience strategies. Mr. Larse can be reached at elarse@kinesis-cem.com. http://www.kinesis-cem.com kinesis-cem.com 206.285.2900 info@kinesis-cem.com Business Case & Implications for Consistency in the Customer Experience
- 2. McDonalds Hamburgers: - Marginal Quality, yet - Hundreds of Billions Sold Why? Consistency Humans are wired to value consistency. Introduction
- 3. Our species evolved in a hostile unpredictable environment. As a result, we are hard wired to value consistency, even in our more stable modern environment. Why We Value Consistency
- 4. Customer Loyalty Built on Foundation of Dependable, Consistent Quality Delivery Business Case for Consistency
- 5. Assume: - The Average Customer Has 5 Interactions Per Year -95% Satisfaction Rate Under These Assumptions: - Average Customer Has a 25% Probability of Negative Experience in 1 Year -All Customers Will Have Negative Experience in 4 Years! Business Case for Consistency
- 7. Consistency = Quality In a Gallup Study: 1,100 Retail Stores Most Consistent Stores Had 3.5 Stronger Customer Satisfaction1 Intra-Channel Consistency 1 Why Consistency Is the Key to Profitable Customer Service, 2006, gallup.com/businessjournal/23953/why-consistency-key-profitable-customer-service.aspx. Accessed 2 Nov. 2017.
- 8. Consider Kinesis’ Research in Banking Context: Intra-Channel Consistency 60% 65% 70% 75% 80% 85% 90% 95% 100% 0% 10% 20% 30%BranchCustomerSatisfaction Standard Deviation of Satisfaction by Branch Consistency Equals Satisfaction Branch customer satisfaction declines as variation in satisfaction increases.
- 9. Equal Treatment of Customers Based on Demographics Demographic ConsistencyOvert Discrimination Disparate Impact Disparate Treatment
- 10. Inconsistency is prima facie evidence of ineffective management. Implications for Management
- 11. How to Be Consistent: 1) Manage inconsistency at its cause 2) Write a clear mission statement 3) Use appropriate analytics 4) Don’t silo analytics by channel 5) Meet regularly with employees to share problems and potential solutions 6) Focus on customer journey Implications for Management
- 13. Control Charts Implications for Customer Experience Researchers 83% 84% 82% 83% 83% 85% 85% 77% 79% 81% 83% 85% 87% 89% May June July Aug Sept Oct Nov Control Chart Where: x = Grand Mean of the score n = Mean sample size (number of shops) SD = Mean standard deviation
- 14. Voice of the Customer Table Implications for Customer Experience Researchers
- 15. Critical Incident Technique Implications for Customer Experience Researchers Qualitative Research Tool Identifies: - Critical Incidents (Moments of Truth) -What Happened - How the Customer Felt - How the Customer Responded - Identify Recovery Strategies
- 16. Matched-Pair Testing Implications for Customer Experience Researchers Use pairs of mystery shoppers to test for disparate treatment based on prohibited basis.