Customer Experience Strategy: Bad News is Good News & Doing the Whole Job
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The document discusses the importance of customer experience management (CEM) and how utilizing customer feedback can lead to significant revenue growth and improved customer relationships. It emphasizes planning the complete use of customer insights, listening effectively to the right customers, and integrating various intelligence sources to create a customer-centric value chain. The text also compares traditional approaches to newer, more holistic methods of engaging with customers to enhance advocacy and loyalty.
Customer Experience Strategy: Bad News is Good News & Doing the Whole Job
- 1. © Copyright ClearAction LLC. All rights reserved. www.ClearActionCX.com Customer Experience Strategy Bad News is Good News Do the Whole Job
- 2. © Copyright ClearAction LLC. All rights reserved. Good news is no news No news is bad news Bad news is good news! -Jim Morgan, Chairman, Applied Materials
- 3. © Copyright ClearAction LLC. All rights reserved. 1% Reduction of Negative Word-of-Mouth 1% Increase of Positive Word-of-Mouth 0.41% Revenue Growth 0.14% Revenue Growth Higher ROI by Acting on Constructive Feedback 300% ROI on reducing negative buzz compared to increasing positive buzz -London School of Economics Advocacy Drives Growth study
- 4. © Copyright ClearAction LLC. All rights reserved. Key #1: Plan Full Use of Customer Feedback Marketing Sales Customer Engineering Production Human Resources Engineering MarketingFinance Sales Traditional View Customer-Centric View
- 5. © Copyright ClearAction LLC. All rights reserved. Customer A Customer B Customer C Product A + + + High Profit Product Product B + Profitable Product Product C - - Losing Product Product D + - Mixed-Bag Product High-Profit Customer Mixed-Bag Customer Losing Customer SOURCE: Thomas N. Petro – “Profitability: The Fifth ‘P’ of Marketing”, Bank Marketing Customers High Margin Medium Margin Low Margin Many Accountable Reactive Basic or Reactive Medium # Proactive Accountable Reactive Few Partnership Proactive Accountable Key #2: Listen to Right Customers in Right Way SOURCE: Kotler & Keller – Marketing Management, 12th Edition
- 6. © Copyright ClearAction LLC. All rights reserved.
- 7. © Copyright ClearAction LLC. All rights reserved.
- 8. © Copyright ClearAction LLC. All rights reserved.
- 9. © Copyright ClearAction LLC. All rights reserved.
- 10. © Copyright ClearAction LLC. All rights reserved. Customer Segment -ation Market Selection / Focus Value Position -ing Product Develop -ment Service Develop -ment Pricing Sourc -ing Making Distribut -ing Servicing Sales Force Sales Prom -otion Adver -tising Choose the Value Provide the Value Communicate Value Databases Automation Custom Messages Custom Services References Games, Rewards Communities, Web 2.0 etc. Surveys Advisory Boards User Groups Lost Sales Complaints Lifetime Value etc. Total Customer Analysis Customer Value Guidance Usability Ethnography Lifecycle Analysis Purchase Process Post-Purchase Complements etc. Sales Service Billing Switchboard Website, Ads Collateral, Events etc. Data Ownership Root Causes Action Plans Leading Indicators Prediction etc. Customer-Focused Value Chain Touchpoint Alignment Total Experience Innovation Loyalty Behavior Programs Key #3: Integrate Intelligence Sources & Actions Customer Experience Management (CEM)
- 11. © Copyright ClearAction LLC. All rights reserved. CEM: Take Advocacy To The Next Step Traditional Advocacy Advantage Go To The Next Level Expedite issues for big customers Retain large accounts Prevent issues systematically & Align effort with lifetime value Rewards, Communities, Experiential marketing, CRM Increase revenue Ensure seamless touch-points & Prevent hassles Advisory boards, Reference programs, Surveys Become customer-centric Embrace negative feedback via value-chain involvement Product user groups, Usability testing Improve product performance Expand inputs to include the customer’s full experience with brand Customer service Maintain use of product Add customer-focus to value chain behind service functions
- 12. © Copyright ClearAction LLC. All rights reserved. What Is The Difference? Customer Experience Management Customer Advocacy Customer Engagement Customer Relationship Management Customer Satisfaction Customer Loyalty Experiential Marketing Customer Retention User Experience
- 13. © Copyright ClearAction LLC. All rights reserved. Typical Customer Programs – Not Connected!
- 14. © Copyright ClearAction LLC. All rights reserved. Subset: Experiential Marketing
- 15. © Copyright ClearAction LLC. All rights reserved. Subset: Loyalty Behavior Programs
- 16. © Copyright ClearAction LLC. All rights reserved. Subset: CRM
- 17. © Copyright ClearAction LLC. All rights reserved. Subset: Customer Profiles CLV, Customer Analysis
- 18. © Copyright ClearAction LLC. All rights reserved. Subset: Customer Touchpoints
- 19. © Copyright ClearAction LLC. All rights reserved. Subset: Experience Innovation
- 20. © Copyright ClearAction LLC. All rights reserved. Customer Experience Management (CEM) CRM Customer Engagement Experiential Marketing Online Communities, Blogs Automation: Sales Force, Customer Service, Marketing Total Customer Analysis Internal Branding Customer Value Games, Rewards Total Experience Innovation Loyalty Behavior Programs Events Customer- Focused Value Chain Customized Messages & ServicesReferences, Advisory Boards, User Groups Surveys Touchpoint Alignment CEM: Do The Whole Job Subset: Internal Branding & Customer-Centricity
- 21. © Copyright ClearAction LLC. All rights reserved. CEM: Doing the Whole Job Ritz Carlton Starbucks Apple Singapore Airlines Mini Cooper American Express Sony Amazon
- 22. © Copyright ClearAction LLC. All rights reserved. ClearActionCX.com See more like this in ClearAction Insiders!
- 23. © Copyright ClearAction LLC. All rights reserved. ClearActionCX.com If You Like These Concepts, Get the Book! >30 Tools & Techniques Step-by-Step Guidelines
- 24. © Copyright ClearAction LLC. All rights reserved. ClearActionCX.com If You Like These Concepts, Get the Book! 5 Keys Explained >20 Tools & Techniques Step-by-Step Guidelines
- 25. © Copyright ClearAction LLC. All rights reserved. ClearActionCX.com If You Like These Concepts, Get the Book! 4 Keys Explained 10 Templates Step-by-Step Guidelines © Copyright ClearAction LLC. All rights reserved.
- 26. © Copyright ClearAction LLC. All rights reserved. ClearAction Consulting Clients “ClearAction taught us things that wouldn’t readily cross our minds and has increased our efficiency & accuracy in many areas. We highly recommend ClearAction as a business consultant.” Partial List Send us a note: OptimizeCX@ClearActionCX.com
- 27. © Copyright ClearAction LLC. All rights reserved. OptimizeCX@ClearActionCX.com tel +1 408 687 9700 Lynn Hunsaker ClearAction company/clearaction-llc +ClearActionCXO CustomerExperienceOptimization