5 things you must know about Customer ExperienceAnd what they mean to you

Sharon Burton 951-369-8590 Twitter: sharonburtonSharon@sharonburton.comwww.sharonburton.com

Tweet tag: #5CustExpCongility

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5 things you must know about Customer ExperienceAnd what they mean to you

Sharon Burton 951-369-8590 Twitter: sharonburtonSharon@sharonburton.comwww.sharonburton.com

Tweet tag: #5CustExpCongility

Thank you for attending!

▪ Sharon Burton

▪ Been in the Communication industry for 20 years

▪ I solve post-sales customer experience problems▪ Research how people feel about product instructions▪ Support clients in creating better product instructions▪ Teach communication at various universities

Tweet tag: #5CustExpCongility

Congility 201418-20 June 2014, Gatwick, UK

“Driving customer experience from across the enterprise”

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Jeff Eaton

Leah Guren Rahel Bailie

Noz UrbinaKevin Nichols

Tony Self

And MANY more!

Michael Priestley

Kristen Eberlein

2 conference days, 1 workshop day• Content strategy and UX• Structured content and IA• Digital / Mobile delivery• Component content management

Overview for today

Definitions and then the list

▪ I want to cover some concepts and definitions so we all know what I mean as we go

▪ Ask questions in the Chat window and I’ll catch them at the end

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The cost of acquiring and keeping customers

Some definitions to get us all on the same page

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Getting customers is expensive

It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company

▪ Customer Acquisition Cost (CAC) is the cost of convincing people to buy your product or service

▪ Basically, it’s the total cost of sales and marketing divided by the customers you got

▪ B2C is typically less, B2B is typically more

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Keeping customers

A 5% increase in customer retention can increase profitability by 75% —Bain and Co

▪ Customer churn is customers leaving from the back door as you welcome new ones in the front door

▪ Customer churn is one of the most expensive things you can have

▪ An entire industry exists to analyze churn

Lifetime value

The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% —Marketing Metrics

▪ Existing customers are already engaged with your products or services

▪ They have a lower cost to keep

▪ They should buy more stuff

▪ Higher monetary value to the business

▪ Can be your evangelists

Return rate

The average U.S. consumer spends 20 minutes trying to make a device work before giving up and returning it to the seller—2006 study by Dutch scientist Elke den Ouden

▪ Returns have increased 21 percent since 2007, according to a Accenture research report (Dec 2011)

▪ 5% of returns are related to actual product defects

▪ 27% reflect “buyer’s remorse”

▪ 68% of returned products are “No Trouble Found”

Customer experience increases sales

81% of companies …delivering customer experience excellence are outperforming their competitors — Peppers and Rogers, 2009 Customer Experience Maturity Monitor

▪ Customer experience is the outcome of all of the touch points that your customer has with your organization *

▪ The perception that customers have across all of their interactions with your organization *

▪ It’s a customer-centric view of your company from every touch point

* From Customer Experience Overview, 2011, Bruce Tempkin and Jeanne Bliss

The 5 things you must know

And a bonus one because I can

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1. What is an NPS (Net Promoter Score)?

“How likely is it that you would recommend [company name/product/service] to a friend or colleague?”

▪ Intended behavior metric▪ Scale 0 to 10

▪ Associates loyalty to future behavior

Group Score Feelings

Promoters

9 or 10 Loyal

Passives 7 or 8 Generally satisfied

Detractors

0 to 6 Unhappy

Calculate your NPS

% of Promoters - % of Detractors = NPS

Often expressed as a number, such as 6.35

Can be a negative number, which is bad

▪ Happy customers have ▪ Higher lifetime value▪ Lower churn rate▪ Lower return rate▪ Cheaper to sell to

▪ A good follow up to the NPS question is ▪ “Why?”

Can we use this elsewhere?

“How likely is it that you would recommend our instructions [or content] to a friend or colleague?”

▪ Measure the intended behavior for your content

▪ Use the same scale and measurements as the rest of the NPS

▪ If your content isn’t as high (or is higher) as the rest of your NPS▪ That’s something to look

at

2. How are other companies in your industry rated?

Knowing your NPS is good, knowing your industry NPS is even better

We don’t have an industry content NPS

▪ Several sites, including:

▪ http://www.insightsfromanalytics.com/blog/bid/324678/Top-10-U-S-Net-Promoter-Scores-NPS-for-2013

▪ If your company has a Customer Experience initiative, someone knows your NPS▪ And they want to improve

it

3. What is a Customer Journey?

The process a customer goes through while interacting with your company

Only the customer knows if it was good or not

▪ Typically though of in column phases, for example▪ Awareness▪ Interest▪ Desire▪ Action

▪ Can have customer rows▪ Activity▪ Motivations▪ Questions▪ Barriers

Customer journey

Customers typically have many journeys with your company

Think of scenarios but real

▪ Jane wants to add the new Sports channels to her cable TV subscription to watch baseball▪ Starting with Jane’s goal

▪ Chart out what she does and who she interacts with for each step of this

▪ Not how you think it should be, but how it actually is▪ Do this yourself, all the way

through

Adding baseball

From Jane’s point of view and how she feels about each step

▪ At the end, you see the customer steps, the employees involved, and the processes invoked

▪ Often, you discover major internal issues▪ Jane needs her account number▪ She does electronic banking and

has no bill handy▪ Jane is frustrated she has to call

back

▪ How could we make this easier? ▪ Verify by phone number?

4. What are touchpoints?

The places where a customer interacts with your company in some manner during the customer journey

Attended and unattended

▪ Touchpoints include: ▪ Letters▪ Knowledgebase▪ Support▪ Website▪ Product content

▪ Exposes internal processes

▪ Attended vs unattended

Attended vs unattended touchpoints

Customers develop their feelings about us through their interactions with us – the touchpoints

▪ Attended▪ We can monitor what the

customer is doing/how they are interacting with us and have the opportunity to guide that touchpoint experience.

▪ Unattended▪ We can’t monitor to know

what the customer is doing and we have no way to guide that touchpoint experience should it go poorly.

Most of our content is unattended

We often throw something over the wall and hope for the best

▪ We need data for unattended touchpoints

▪ Google Analytics▪ Website ▪ Product instructions

▪ Other tools help here, too

▪ Might also be good to allow ratings and comments

5. What is a customer ecosystem?

The entire system the customer is involved in during a journey

Including internal stuff the customer never sees

▪ Nothing happens in a vacuum

▪ Customer touchpoints are the tips of icebergs

▪ Processes internal to your company “bubble up” to touchpoints

▪ Often, entire groups have no idea of their customer impact

Customer ecosystems

Mapping out a journey to an ecosystem potentially identifies unknown customer impact

▪ Sort of like root cause analysis

▪ But deeper and more systematic

▪ Allows people to see groups who have customer impact several levels up from where they are making decisions▪ These groups may be very

happy with how they’re doing

▪ But the customer isn’t

JaneWants

baseballCalls

CableTVNavigates

phone

Listens to options

Selects current

customer

Selects Change Plan

Gets rep

Makes request

Verify account

No bill available

Can’t change account

Call ends Jane upset

Listens to music

CustSupport Channel 3

Programming

Programmers

Network system

Marketing

Copywriter

Advertising

Marketing

IT

Programmer

Support

Network system

Marketing

Support rep

CRM Database

Security

Network system

Knowledgebase

Internal to company

Customer exposed

JaneWants

baseballCalls

CableTVNavigates

phone

Listens to options

Selects current

customer

Selects Change Plan

Gets rep

Makes request

Verify account

No bill available

Can’t change account

Call ends Jane upset

Listens to music

CustSupport Channel 3

Programming

Programmers

Network system

Marketing

Copywriter

Advertising

Marketing

IT

Programmer

Support

Network system

Marketing

Support rep

CRM Database

Security

Network system

Knowledgebase

Internal to company

Customer exposed

Green=Happy, doing wellYellow=neutral, doing OKRed=Very unhappy

What does this mean for our content?

▪ In most companies, we don’t really know how content gets created and distributed▪ Or what is involved in that

creation or distribution▪ And what barriers that may

create for our customers

▪ We need to know this

▪ We need the ecosystem mapped out to show our integration

We may be delighted with our content

Our customer may not be delighted

The customer wins

6. Customer Effort Score (CES)

"How much effort did your request/purchase/etc take?"

▪ Customer Effort Score▪ How hard is it to do

business with a company▪ People don’t like doing

business when it’s hard▪ Increased churn rate

▪ Scale of 1 (very easy) to 5 (giant effort)

Which question do you ask?

"How much effort did finding/understanding/acting on this information take?"

▪ I think if you can ask only one question about your content in the content, ask the CES question▪ Specific content perception

▪ If you can ask only one question about your content at a higher level than in the content, use the NPS▪ Overall perception

Thoughts?Comments?Questions?

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Sharon BurtonSharon@sharonburton.com 951-369-8590

Twitter: sharonburtonwww.sharonburton.com

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