1. ROI in the Customer Experience Colin Shaw Best Selling CE Author CEO, Beyond Philosophy

2. 1. Viewer Window 2. Control Panel GoToWebinar Example Interface Webinar Interface Review Beyond Philosophy © All rights reserved. 2001-2011 2

3. 3 Beyond 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 Links with Academia Focus on the emotional side of the Customer Experience

4. 4 We are Proud to Have Helped Some Great Organizations… Beyond Philosophy © All rights reserved. 2001-2011

5. 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… 5 Beyond Philosophy © All rights reserved. 2001-2011

6. 6 Beyond Philosophy © All rights reserved. 2001-2011

7. When in Rome… 7 Beyond Philosophy © All rights reserved. 2001-2011

8. The ways of getting to ROI… General models Company specific research Other company case studies Cost savings 8 Beyond Philosophy © All rights reserved. 2001-2011

9. 9 Source: Watermark Consulting 2010. Beyond Philosophy © All rights reserved. 2001-2011

10. 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 10 Beyond Philosophy © All rights reserved. 2001-2011

11. 11 Beyond Philosophy © All rights reserved. 2001-2011 Case Study: Enterprise with 2 million customers Revenue = $200,000,000 per year Average Revenue per customer = $100 per year Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner 2,992 customers $299,200 At risk — 34%Issue not resolved 2,464 customers $246,400 Complain2% Defect — 28% 8,800 customers Poor experience22% Resolved — 38% 440,000 customers Do notcomplain98% At risk — 55%Decline in wallet share 237,160 customers $23,716,000 Positiveexperience 78% 431,200 customers 194,040 customers $19,404,000 Defect — 45%

12. The ways of getting to ROI… General models Company specific research Other company case studies Cost savings 12 Beyond Philosophy © All rights reserved. 2001-2011

13. Middle East Telecommunications Company 13 Product quality versus emotional engagement Beyond Philosophy © All rights reserved. 2001-2011

14. Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers 14 Desired by Customer Effect on Value Top Ten + Relative Magnitude - 0 Beyond Philosophy © All rights reserved. 2001-2011

15. The ways of getting to ROI… General models Company specific research Other company case studies Cost savings 15 Beyond Philosophy © All rights reserved. 2001-2011

16. 16 Beyond Philosophy © All rights reserved. 2001-2011

17. 17 Beyond Philosophy © All rights reserved. 2001-2011

19. Customer Satisfaction drives a large percentage of government sponsored reimbursement for hospitals in the USA

20. 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.

21. Roughly, every percentage point increase in PSAT above 75% represents $1.4m

22. MHHS provides more care to indigents than any of its competitors .

25. 91% in poor performing hospitals

26. 12% in great performing hospitals

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

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

30. The fast growth brought some problems:

31. competition began to copy “perfect delivery” and was catching up

32. the perfect delivery of projects got stalled

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

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

35. As a result the “Customer Experience Vision” initiative was launched based on 3 pillars:

36. Product – Make it

37. Process – Make it simple

38. People – Make it engaging

39. Beyond Philosophy addressed the formulation of the new Customer Experience strategy by conducting:

40. Internal research to understand the current thinking

41. Quantitative research and analysis to get customer insights and generate hypothesis

43. xxx

44. xxx

45. xxx

46. Annual revenue increased by 15%

47. Increase “perfect Delivery” from 91% to 96%

48. The Net Promoter Score has increased significantly to reach 70% (one of the highest not only in the sector but also worldwide)The Benefit

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

52. Philosopher’s day workshop as training for the senior management to get people on top on the right track for the new strategy

53. Best Practice Study Tour to get inspiration form enlightened organizations

54. Customer Mirrors to identify break points in the experience

55. Moment Mapping to design the new experience

56. 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

57. 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..

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

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

60. xxx

62. Reduced customer complaints by 20%

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

66. Increasing customer expectations

67. Facing the threat of competition

69. 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

70. Beyond Philosophy facilitated the development of a customer experience via

71. Workshops with the senior leader to define a new Customer Experience Vision and Strategy

73. “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

74. £8.5m of cost savings as a direct result of Customer Experience improvements such as:

75. 40% reduction in written complaints

76. 20% reduction in repeat calls

77. Calls closed on first contact > 70%

78. 50% reduction of unnecessary field jobs

79. Appointments within 2hrs - 98%

81. Script guidelines changed to “You will have it within 7 days”However, agents knew from customers that document often NOT received within 3-4 days Result: Call backs drop dramatically; to 3% from 75% within weeks Agent thus responds “You should have it within 3-4 days”. Agents wanted to be truthful.

82. Summary… Four methods for producing ROI Remember that this is about Hearts and Minds When in Rome…. 24 Beyond Philosophy © All rights reserved. 2001-2011