Customer Experience Management

1. CUSTOMER EXPERIENCE

2. Loyalty is More Critical Than
Ever
 Market challenges
 Market saturation
 Commoditized products
 Unsustainable price differentiation
 Increasing customer demands
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3. 3

4. 4

5.  According to a PwC report, customers are willing to pay
up to 42% more for a friendly experience.
 One in three customers also said that they would drop a
brand they love after just one poor experience.
5

6. Financial Benefits of
Increasing Customer Loyalty
 In mobile sector, a 1% point increase
of the Customer Satisfaction Index
leads to:
 2.9% increase in ARPU
 3.2% decrease in churn
6

7. The Bad News/The Good News
 80% of businesses state that they
offer a "great customer experience".
 One bad experience increases the
risk of “jumping ship” by 89%
 80% of subscribers say their
operator could have prevented them
from churning
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8. Customer Satisfaction Score
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9. “Customer centricity is defined as the ecosystem and operating
model that enables an organization to design a unique and
distinctive customer experience. This architecture enables the
business to acquire, retain and develop targeted customers
efficiently for the benefit of customers, employees and
stakeholders.”
Doug Leather, The Customer-Centric Blueprint

11. An Empowered Customer
CONTROL
I have control over my life. I am confident using tools and services available
to me to manage my life.
CHOICE
I can make an informed choice amidst few product and service options.
RESPECT
I am treated with a basic-minimum level of respect and dignity. You will have “active
patience” in interacting with me and have empathy.
VOICE
I am heard. When something goes wrong, you’ll listen to me & help me solve my problem.
You will seek my input when designing new solutions to make sure they work for me.

12. great customer experiences
are made up of many little things

13. Think about a great customer experience that
you had recently…
What made it great?

14. Think about it & write it down: 3
minutes

15. Share out

16. friendly intuitive
enjoyable surprising
happy comfortable
warm inspiring
genuine authentic human touch innovative
caring personal
smart relevant
thoughtful easy
simple special

17. How is this mission critical?
Who ever heard their boss say:
“Let’s focus on being “warm” today…”?

18. The customer experience
encompasses every interaction the
customer has with your organization
throughout the customer lifecycle, in
person, over the phone or online.

19. At the heart of the customer experience is a
clear and compelling value proposition–
that is, a product or service that satisfies a
customer’s need or want at every touchpoint
in the customer journey.

20. “We spent tens of thousands of hours working
alongside customers to see how they actually use our
products; as we did, we made notes with smiley faces
next to elements that customers enjoyed and sad
faces at places where they hit a snag—an example of
using design to simplify the feedback mechanism.
We’ve emphasized to engineers, product
managers, and
designers that functionality isn’t enough anymore.
We have to build emotion into the product.”
Scott Cook CEO, INTUIT

21. “Conventional measure of success are actually
indirect indicators, like portfolio growth. They give a
false sense of security that the business is doing
right by the
customer.”
"I think there is a massive problem of ‘shortermism‘
amongst people who manage products. They look at
what can be achieved this year, with this product, for
this bonus– whereas a customer-centric approach
looks much longer term.”

22. Business challenges that good CX helps you solve
What challenges are you facing in
acquiring, retaining and/or
expanding your customer relationships?
Where are the big gaps in your
portfolio where customers are
not engaging or dropping out?

23. How is a CX focus different?

24. The Customer Experience
Defined
 The sum of all experiences a customer has with a
supplier of goods and/or services, over the
duration of their relationship with the supplier
 Includes interactions through:
 Traditional channels, such as purchases, customer
service requests and call center communications
 Social media channels such as Twitter, Facebook, etc.
24
The single most important
aspect in achieving success for
companies across all industries

25. CXM/ CEM 25

26. CEM Quotes
“The essence of CEM is treating
customers as individuals.”
"Consumers are statistics.
Customers are people.”
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27. CEM Goals & Benefits
 CEM Goals
 Optimizing interactions from the
customer's perspective
 Delivering an exceptional experience
that sets it apart in the eyes of its
customers
 CEM Benefits
 Increasing the amount of consumer
spending
 Inspiring loyalty to its brand
27

28. Customer Experience Management
(CEM/CXM)
 The processes used to comprehensively manage
a customer's cross-channel exposure, interaction
and transaction with an organization throughout
the customer lifecycle
 Includes various tools to keep up with the
complex and on-going demands
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 CEO commitment
 Strategy
 A focus on all touch points
 Integration of technology
 Business models
 Brand management
 Customer Journey Roadmaps
 Net Promoter Score (NPS)
 Constant employee training and development

29. www.telecomtrainingcorporation.com 29

30. CXM Strategy
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1. Create a clear customer experience vision
2. Understand who your customers are
3. Create an emotional connection with your customers
4. Capture customer feedback in real time
5. Use a quality framework for development of your team
6. Act upon regular employee feedback
7. Measure the ROI from delivering great customer experience

31. CEM Must Be A
Company-Wide Effort 31

32. CEM Must Be A Company Wide
Effort
 CEM is not tied to any one department
 Marketing
 Sales
 Product
 Engineering
 Customer Service
 Customer Support
 Finance
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33. Marketing
 Is marketing setting the right
expectations in the lead generation
process?
 Or are they looking to get as many leads
as possible and letting sales sort it out?
 If marketing isn’t setting the right
expectations or sending the right
messages, it can lead to confusion during
the sales process that can last through
becoming a customer
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34. Sales
 Is sales setting the right
expectations during the closing
process?
 Are they up front about limitations
or realistic about a road map?
 Or do they say things that are
approximately correct that the leads
want to hear so they can hit quota?
34

35. Product and Engineering
 Product
 This is where
most companies
focus
 Is the product
getting the
customer the
value they want?
 Is it easy to use or
too complicated?
 Engineering
 Are there a lot
of little and
annoying bugs?
 Are there major
bugs, or do they
fail to deliver
within promised
time frames?
35

36. Customer Service
 Is your customer team putting the
customer first?
 Are the setting the right long term
expectations?
 Are they really getting customers set-
up and seeing value or just pointing
them in the right direction?
 Are they constantly having to reset
false expectations set by sales and
marketing? 36

37. Customer Support
 How long is your hold time?
 Are issues resolved in a timely fashion?
 Do you focus on one call resolution?
 Are reps empowered to make decisions in
the customers interest without having to
escalate to their supervisors?
 Are customers kept in the loop or given
proper time frames?
 Does support go out of its way to make sure
customers hang up happy or are they just
fixing the issue and moving on? 37

38. Finance
 Is it easy to get an invoice?
 Is billing clear?
 Is the credit policy fair?
 Do customers find out they are in arrears
right away or do they get slapped with a
huge bill several months later?
 Do we work with delinquent accounts in a
way to encourage payment?
 How effective are contracts and
termination fees?
38

39. Summary
Everyone focused and working
together on the customer experience
will result in dramatic increases in the
Customer Experience will which allow
companies to survive/thrive in a
competitive environment and
experience growth, sustainability, and
profitability
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40. Ideas to Improve the
Customer Experience
40

41. What “Delights” Our
Customers
 Do it right the first time
 Make it easy to do business with
 Employees have knowledge and power to
solve problems
 Service is reliable and fixed quickly when
there is an issue
 Operator proactively manages
relationships
41

42. Ideas to Engage Customers
1. Stop the waiting game
2. Be a Value Provider vs. a Service
Provider
3. Offer free services
4. Divert marketing dollars to existing
customers
42

43. Ten More Ideas to Improve the
Customer Experience
1. Be proactive and prioritize
2. Focus on retaining existing
high-value customers
3. Move from silos to
collaborative
interdepartmental focus
4. Cohesive and simplified
strategy instead of each
functional area working
solo
5. Focus on transforming the
culture to focus on both
the “internal” and
external customer
6. Employees must be enthusiastic,
coached, and customer-focused with
benefits and consequences tied to
performance
7. Employees and union must understand
why they must change and be
accountable
8. Delegate to front line to help with
projects
9. Communicate effectively, proactively
and in various ways to employees and
customers
10. When we stumble (i.e., don’t get it
right the first time), recover rapidly
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44. NPS Overview
44

45. Net Promoter Score (NPS)
Overview
 The worldwide standard to measure,
understand, and improve their
customer experience
 In use for 10 years
 Very popular and widely used
 48% of large companies (over $500 US in
revenues) use
45

46. NPS Customer Categories
 Customers can be divided into three
categories
 Promoters
 Passives
 Detractors
 Ask one simple question — How likely is it
that you would recommend us to a friend
or colleague?
 Track these groups
 Clearly measure your company’s performance
through your customers’ eyes
46

47. NPS Customer Categories
 Customers respond on a 0-to-10
point rating scale
 Promoters (score 9-10)
 Loyal enthusiasts who will keep buying and
refer others, fueling growth
 Passives (score 7-8)
 Satisfied but unenthusiastic customers who
are vulnerable to competitive offerings
 Detractors (score 0-6)
 Unhappy customers who can damage your
brand and impede growth through negative
word-of-mouth
47

48. Satisfying vs. Delighting
Customers
Satisfying Customers
 Like getting a “C” in
school
 It’s average and ordinary
 Vanilla ice cream
 Story of purchase at
grocery store
Delighting Customers
 Exceeding expectations
 Doing more than what is
expected
 “Going the extra mile”
 They are surprised and
grateful
 Usually tell friends and
family
 (P
.S. Employees have to be
delighted before they can
delight customers)
48

49. Calculating NPS
 Take the percentage of customers
who are Promoters
 Subtract the percentage who are
Detractors
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Example: 30% - 10%
= +20

50. NPS Varies By Industry
 A score of 50 to 80 is typically considered “good”
 Average companies have Net Promoter Scores of 5 to 10
 They have almost as many unhappy customers as happy
customers
 The result is they struggle to achieve sustainable growth
 Well known US brands with the highest growth rates
operate at NPS efficiency ratings of 50 - 80%
 Amazon
 Harley-Davidson
 Zappos
 Costco
 Dell
 In general, a NPS score of over 30 means a company is
doing okay
50

51. How to Ensure NPS Makes A
Difference
 Must be part of a broader ecosystem
 The entire organization must live and breathe by it
 Requires:
 Company-wide buy-in and effort
 Leadership sponsorship
 Supports the Customer Experience eco-system
 The influence of every single employee and external
partner on every single customer interaction
 Challenging to manage the complex set of relationships
 Works in conjunction with a strong Voice of the
Customer (VOC) program and/or Customer
Satisfaction (CSAT) 51

52. Reasons for Low NPS
and How to Improve
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53. How Customer Experience
Affects NPS
 The NPS measurement is simply a way to
quantify directional performance over a long
period of time
 Improving NPS is tightly linked to retention,
revenue increase and cost reduction
 The real operational focus needs to be on customer
experience, not NPS
 By delivering a rewarding experience that
customers will want to talk about, your NPS will
automatically reflect those improvements you
have made to both your brand recognition and
business operations as a whole
53

54. Reasons NPS so Low for
Service Providers
 Lack of consistent and personal service
 Only 17% of consumers agree that they always get a
consistent response across channels
 65% say they are always treated like anonymous
customers
 Irrelevant proactive notifications
 3 out of 4 (73%) proactive notifications are not useful
in resolving customer issues
 1 out of 4 (24%) result in a call to the contact center
 Ineffective mobile self-service apps
 78% of the people that use mobile self-service apps
found them hard to use
 51% abandoned an online purchase
54

55. A Loyalty/Engagement Metric –
Influenced by Multiple Factors
 Technical issues
 Network quality of
service
 Proper functioning of
equipment
 Coverage using the
device
 Billing issues
 Bill overage, bill errors,
etc.
 Hidden fees,
unexplained charges
 Complicated, hard-to-
understand bills
 Customer service across
channels
 Call center
 Retail stores
 Corporate accounts
 Self service
 Indirect
sales/agents/dealers
 Pricing and value
 Price of service
 Value for money
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56. Deemphasize the “N”
 NPS improves by:
 Eliminating Detractors
 Increasing Promoters
 Netting removes clarity since these 2
customer categories can offset each other
 Look at the rise and fall of Promoters and
Detractors independently since changes
needed to improve in these areas are
different
56

57. Focus on Keeping Promoters
vs. Uplifting Detractors
 It costs more to uplift
Detractors than keep
Promoters
 Detractors:
 File complaints
 Bog down customer
service
 Require more time
and resources
 Won’t buy from you
 Bad mouth you to
others
 Promoters:
 Buy more from you
 Need less service
 Refer others
 Act like you own marketing
department
 6x more likely to forgive
 >5x likely to repurchase
 2x likely to recommend
57

58. What Can Move the NPS
Needle?
 84% more likely to recommend if the
service provider
 Was able to identify and proactively
resolve customer care issues that
impact them
 83% more likely to recommend if the
service provider
 Would empower them with consistent,
easy-to-use self-service via their
smartphone 58