AMA Marketing Effectiveness Online Seminar Series Melissa Jazmines American Marketing Association.

AMA Marketing Effectiveness

Online Seminar Series

Melissa JazminesAmerican Marketing Association

Copyright © 2005 Maritz Inc.2

A wealth of information is available for marketing professionals at

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Commonly Asked Questions

1. Will I be able to get copies of the slides after the event?

2. Is this web seminar being recorded so I or others can view it after the fact?


Commonly Asked Questions

1. Will I be able to get copies of the slides after the event?

2. Is this web seminar being recorded so I or others can view it after the fact?

Yes

Yes


Introducing Today’s Presenters

Randy Brandt

Vice President, Customer Experience and Loyalty Research

Rodger Stotz

Vice President and Managing Consultant

Grow Your Business Through Superior Customer Experiences

September 8, 2005


Today’s Agenda

Importance of the customer experience How to establish your customer experience

as a competitive advantage Understand Enable Motivate

Summary Q&A


The Brand Reality Equation


“The new frontier of competitive advantage is the customer experience.”

(Harvard Business Review; 12/04)

A New Frontier…


Customer Touch points

Company

Product Price People Technology

Customer Experience

People

Customer Facing Processes= Skills and Level of Engagement


What is the Typical Scenario?

Most companies are measuring customer satisfaction, but are doing so at the corporate level.

Some companies determine what their customers value at the corporate level.

Few companies create improvement plans based on this data (and most plans don’t get implemented).

Even fewer companies link employee incentives to improvement plans that impact profitability.


The Bottom Line

In today’s fiercely competitive marketplace, typical stand-alone customer experience programs will not drive the growth you need to succeed.

So, what can you do?


Customer Experience Leaders …

Understand what their customers value how their units deliver what their customers

value how their employees impact this delivery


Customer Experience Leaders …(cont’d)

Act upon this customer information – develop and implement improvement plans

Monitor improvement and course correct Motivate employee behavior with incentives

and recognition Stay Focused Have Commitment from all levels of

leadership


Realize the Power of an Integrated Approach Understand, Enable, Motivate… The real power

of this approach is greater than the individual initiatives. It lies in the synergy realized by integrating them and aligning goals to establish your unit level customer experience as a competitive advantage.


The Value....

Increased Customer Satisfaction = Improved customer retention Higher average sale per customer Increased referrals

Increased Employee Engagement =

Increased employee satisfaction Improved performance/customer

satisfaction Reduction in employee turnover


Continuous Improvement Process Initiated

Action Plans Developed by the Unit for the Unit led by Facilitator

Implementation Led by Facilitator

Monitor Results and Course Correct

Beg

in n

ext

Acti

on

It

em

Beg

in n

ext

Acti

on

It

em

Action Plans Prescribed forthe Unit from Segmented Best Practices

MotivateEnableUnderstand

Unit Level Voice of the Customer Research

Unit LevelVoice of the EmployeeResearch

Integrated Analysis

Here's How This Integrated Approach Works

Top Opportunity Areas Identified per Unit

Stimulate Employee Awareness & Excitement

Reward Improvement

Recognize Top Performers

Corporate Wide Goals:

• Customer Satisfaction

• Customer Retention• Share of Wallet• Referrals

Unit Specific Goals:

• Top OpportunityAreas IdentifiedPer Unit


Understand

The goal of Unit Level Customer Research is to understand the unique needs of unit customers so you can focus performance plans on the top opportunities that will most improve the customer’s experience.

What drives customer satisfaction and loyalty?

How well are we performing in each of these areas?

Which areas offer the greatest opportunity?


UnderstandThe goal of Unit Level Employee Research is to understand the relevance of employee engagement to customer experience so employee engagement can be part of the plan for improving the customer’s experience

What are the drivers of employee engagement?

Which of these drivers are customer experience “levers?”

Which areas offer the greatest opportunity?


Unit Level Customer Research Customer understanding is acquired through

customer feedback collected at the unit level. Diagnostic measurement provides initial

direction for action planning Ongoing performance measurements monitor

results and course correct Other unit level customer research may also be

integrated (e.g. mystery shopping, competitive studies, loyalty studies, customer focus groups).


>> Hometown Bank July 2005

HIG

HE

R

IMP

OR

TA

NC

E

LO

WE

R

IMP

OR

TA

NC

E

LESS FAVORABLERATINGS

MORE FAVORABLE RATINGS

Identify and Prioritize Customer Issues

Analyze customer data to identify the key drivers of satisfaction. Prioritize top opportunity areas for improvement based on unit

performance and importance to customers.

Top Opportunity

Areas

• Teller treating you as a valued customer

• Representative responding quickly to problems

• Teller understanding of your transaction needs

• Time waited before being served • Representative giving you

his/her undivided attention

• Teller providing accurate answers to your questions

• Representative being upfront and honest

• Branch atmosphere welcome, warm, and comfortable

• Outside appearance of branch

• Teller friendliness and courtesy

• Representative treating you as valued customer

• Inside of branch being clean, neat, and uncluttered

• Signs and other information being posted

• Speed of transaction

• Hours the branch is open

• Level of privacy when talking about personal information

• Teller knowledge of bank products and promotions

• Branch staff looking professional



OVERALL METRICSCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

Overall branch satisfaction 8.7 8.5 8.2 8.8 8.7

Intent to recommend to friend 8.3 8.4 8.1 8.7 8.5

KEY BRANCH OPPORTUNITY AREASCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

1 Teller knowledge of bank products and promotions 6.5 7.1 6.9 7.9 8.1

2 Representative responding quickly to problems 6.7 7.2 6.9 8.6 8.9

3 Teller providing accurate answers to your questions 6.5 7.2 6.9 8.6 8.9

4 Speed of transaction 6.9 7.2 6.9 8.6 8.9

5 Teller treating you as a valued customer 7.1 7.1 6.5 8.4 8.6

KEY STRENGTHSCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

1 Hours the branch is open 9.6 9.4 9.4 9.2 8.9

2 Teller friendliness and courtesy 9.3 9.2 9.1 8.7 8.6

3 Representative treating you as a valued customer 9.5 9.2 9.1 8.7 8.6

4 Teller willing to respond quickly to problems 9.4 9.2 9.1 8.7 8.6

5 Time waited before being served 9.5 9.3 9.5 8.9 8.8

Reporting Priorities to the Units Prioritization ensures action planning efforts are focused

against the areas that will have the most impact. Unit-specific priorities are determined using the diagnostic

customer satisfaction data.


Unit Level Employee Research

To maximize customer driven business results, you also need to: Understand how employee engagement and

employee issues influence customer experiences and future loyalty.

Employee survey research can fill this gap. Other unit level data may also be integrated (e.g.

manager interviews, employee/supervisor focus groups, employee suggestions).


Identify and Prioritize Employee Issues

Analyze employee data to identify the key drivers of engagement. Prioritize top opportunity areas for improvement based on unit

performance and importance to employees.


Top Opportunity

Areas

HIG

HE

R

IMP

OR

TA

NC

E

LO

WE

R

IMP

OR

TA

NC

E



• I have the authority to take immediate action to resolve customer problems

• I have the tools I need to perform my job effectively

• All employees are treated with respect

• I am satisfied with my career progression at the Bank

• The company helps me balance my my work and home commitments

• My manager regularly recognizes and praises my work

• Work conditions provide a productive environment

• The company hires the right people for the job

• The Bank is an innovative company

• The most competent people get promotions in my department


Integrate Employee and Customer Analyses Establishes critical linkages among customer and

employee key drivers. By combining this research at the unit level, you can

identify how the employee experience contributes to customer satisfaction.

Pinpoints employee issues that need to be resolved to improve the customer experience.

Assists in root cause analysis and problem identification.

Empo

wered

to d

o th

e job

Have

tools to

do

the

job.

Compa

ny list

ens to

and

care

s ab

out e

mpl

oyee

s

Cu

sto

mer

Key D

rivers

X

X

X

Willing to respondquickly to problems

Treats as valuedcustomer

Knowledge ofbank products and

promotions

Employee Key Drivers


Putting It All Together


HIG

HE

R

IMP

OR

TA

NC

E

LO

WE

R

IMP

OR

TA

NC

E



• Teller treating you as a valued customer

• Representative responding quickly to problems

• Teller understanding of your transaction needs • Time waited before

being served • Representative giving you his/her undivided attention

• Teller providing accurate answers to your questions

• Representative being upfront and honest

• Branch atmosphere welcome, warm, and comfortable

• Outside appearance of branch

• Teller friendliness and courtesy

• Representative treating you as valued customer

• Inside of branch being clean, neat, and uncluttered

• Signs and other information being posted

• Speed of transaction

• Hours the branch is open

• Level of privacy when talking about personal information

• Teller knowledge of bank products and promotions

• Branch staff looking professional


HIG

HE

R

IMP

OR

TA

NC

E

LO

WE

R

IMP

OR

TA

NC

E



• I have the authority to take immediateaction to resolve customer problems

• I have the tools I need to perform my job effectively

• All employees are treated with respect

• I am satisfied with my careerprogression at the Bank

• The company helps me balance mymy work and home commitments

• My manager regularly recognizesand praises my work

• Work conditions provide a productive environment

• The company hires the rightpeople for the job

• The Bank is an innovative company

• The most competent people getpromotions in my department

Identify Top Opportunities for Customers Identify Top Opportunities for Employees

Empo

wered

to do the job

Have tools

to do the job

.

Compa

ny lis

tens

to and

care

s abo

ut emplo

yees

Cust

om

er

Key

Dri

vers

X

X

X




promotions


Empo

wered

to do the job

Have tools

to do the job

.

Compa

ny lis

tens

to and

care

s abo

ut emplo

yees

Cust

om

er

Key

Dri

vers

X

X

X

X

X

X




promotions


Integrate Customer & Employee Opportunities


ExampleTop Customer Opportunity Areas Identified for

Unit A

1. Employee knowledge of products and promotions

2. Employee responding quickly to problems3. Employee providing accurate answers to your

questions4. Speed of transaction


Enable

The goal of the Unit Level Continuous Improvement Process is to:

enable each unit to improve the customer experience

by:

focusing performance plans on the top opportunity areas identified through Unit Level Customer Research


Enable Through the Unit Level

Continuous Improvement Process you:

Ensure that the right people fix the right things

Create relevant action plans Implement those plans Monitor improvement and

course correct as appropriate…

To continuously deliver superior customer experiences.


Continuous Improvement Process Approaches

Unit Developed Approach Segmented Best Practice Approach

Empowerment Continuum – Delivery of the Customer Experience Across Units

Segmented Best

Practice

Unit

Developed


Unit Developed Approach – The Process

Identified Top

Opportunity Areas

Unit level Continuous Improvement Process initiated • Skill sets learned• Roles appointed

Opportunity Areasprioritized into Action Items

“Quick Fixes” put in place for “low-hanging

fruit”

CITs clarify issuesand assign owners

CITs developsolutions

Management Team approves solutions

CITs implement solutions

Monitor monthly VOC data

Course corrections made

if appropriateBegin next Action Item


Example

Top Priority Target for Action for Unit A: Employee knowledgeable about products and promotions.

The Continuous Improvement Team…. Clarifies issues and assigns owners Develops solutions Obtains Management approval Implements solutions Monitors and course corrects as needed


Segmented Best Practices - The Process

IntegratedAnalysis

Unitssegmented

Best PracticeDiscovery Summits • Clarify issues• Identify Best Practices

Best Practicesapproved

Unit level ActionPlans developed

Unit levelContinuousImprovementProcess initiated • Skill sets learned• Roles appointed

Opportunity Areasprioritized into Action Items

CITs clarify issues and

assign owners

Best Practice based solutions approved

CITs implement solutions

Monitor monthly VOC data

Course correctionsmade if appropriate

CITs evaluate Best Practice alternatives

Begin next Action Item

Identified Top

Opportunity Areas

“Quick Fixes” put in place for “low-hanging

fruit”


Facilitator Role and Benefits Monthly meetings with units to:

Organize the CIP within each unit

Develop required skill set of unit staff

On-line reporting tools Root cause analysis Continuous Improvement

Process Ad hoc change-related

issues Coach and support Action

Planning and Implementation process

Motivate employees Bring focus on change

The Benefits Objective 3rd party -

Coach vs corporate mandate

Unit staff more open regarding root causes Greater solution

relevance Shorter time required

to develop solutions Viewed as investment

in unit success- Greater sense of corporate commitment

Interventions specific to unit need.


The Approaches Compared

Unit specific Segmented Best Practice

Level of Solution Relevancy to Unit

Extremely, since unit is developing

the solution

Very, since best practices will apply

to customer segments

Corporate Control Flexible More directed

Unit Staff Engaged Through all steps All steps except developing the

solution

Objective 3rd Party Facilitator

Yes Yes

Focus Yes Yes

Monitor Improvement

Yes Yes


Motivate

The goal of Incentives and Recognition is to motivate employees to embrace process and behavior changes to improve and continuously deliver a superior customer experience.

What gets asked for gets attention… What gets measured gets done… What gets rewarded gets done best

of all…


Importance of Employee Communications Build awareness, stimulate employee excitement

and sustain momentum Roll out program details effectively to all participants

Timing Payouts and awards How to earn (performance expectations)

Establish engaging, ongoing communications plans Multiple media types Awareness building/frequency Sustain momentum



OVERALL METRICSCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

Overall branch satisfaction 8.7 8.5 8.2 8.8 8.7

Intent to recommend to friend 8.3 8.4 8.1 8.7 8.5

KEY BRANCH OPPORTUNITY AREASCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

1 Teller knowledge of bank products and promotions 6.5 7.1 6.9 7.9 8.1

2 Representative responding quickly to problems 6.7 7.2 6.9 8.6 8.9

3 Teller providing accurate answers to your questions 6.5 7.2 6.9 8.6 8.9

4 Speed of transaction 6.9 7.2 6.9 8.6 8.9

5 Teller treating you as a valued customer 7.1 7.1 6.5 8.4 8.6

KEY STRENGTHSCurrent

QtrPrevious

QtrYear Ago

Qtr Segment Brand

1 Hours the branch is open 9.6 9.4 9.4 9.2 8.9

2 Teller friendliness and courtesy 9.3 9.2 9.1 8.7 8.6

3 Representative treating you as a valued customer 9.5 9.2 9.1 8.7 8.6

4 Teller willing to respond quickly to problems 9.4 9.2 9.1 8.7 8.6

5 Time waited before being served 9.5 9.3 9.5 8.9 8.8

Link incentives and recognition to Opportunity Areas identified by Unit Level Research and addressed in the Continuous Improvement Process

Motivate Achievement of Unit Level Goals


Link incentives and recognition to overarching customer experience goals to achieve organization-wide alignment.

Overall Customer Satisfaction Increased Customer Retention Increased Average Sale Increased Referrals

Motivate Achievement of Corporate Goals


Reward Improvement

To gain maximum unit engagement: Segment units

according to initial performance scores (CSI and financial)

Use tiered groupings of units

Establish quarterly goals and payouts to maintain focus


Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06

Branch 6.5 6.6 6.7 6.8 6.8 7.1 7.0 7.3 7.5 7.5 7.9 7.8 8.0

Segment 7.9 7.9 7.9 7.8 7.9 8.0 7.8 7.9 8.0 7.9 7.9 7.9 7.9

Brand 8.1 8.0 8.2 8.0 8.2 8.1 9.0 8.1 8.1 8.1 8.2 8.1 8.1

TELLER KNOWLEDGE OF BANK PRODUCTS AND PROMOTIONS

6.7 7.0 7.4 7.9Qtr Aggregate

6

6.5

7

7.5

8

8.5

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Branch Segment Brand


Sample Payout Grid

QualifierCurrent

Qtr.Goal for

Qtr. Qualified

Increased overall customer satisfaction (Top Box) 8.7 8.7 Yes

Corporate Metrics (50% of payout)Current

Qtr.Goal for

Qtr. Hit/Miss Weight

Total Earnings Potential(1,030 pts.)

Increased customer retention 9.3 9.0 Hit 33% 343

Increased share of wallet 7.9 7.9 Hit 33% 343

Increased referrals 8.1 7.0 Hit 33% 344

1,030

Branch Specific Metrics (50% of payout)Current

Qtr.Goal for

Qtr. Hit/Miss Weight

Total Earnings Potential(1,030 pts.)

Teller knowledge about bank products and promotions 6.5 6.5 Hit 25% 257.5

Representative responding quickly to problems 6.7 6.7 Hit 25% 257.5

Teller providing accurate answers to your questions 6.4 6.5 Miss 20% 0

Speed of transaction 6.8 6.9 Miss 20% 0

Teller treating you as a valued customer 7.0 7.1 Miss 10% 0

100% 515

Total Pts. 1,545


Recognize Top Performers

Recognize top performing units by tapping into exciting award options such as merchandise, plaques and travel


In Summary…With this powerful integrated

approach you will:

Establish your unit level customer experience as a source of competitive advantage

Improve the customer experience from the local level customer’s point of view

Motivate employees with effective incentives and recognition programs aligned with customer experience goals to maximize business results

Drive top and bottom line growth through increased customer retention, share of wallet and referrals

Questions & Answers


Thanks for your time and participation today!

To replay this webcast (available September 9) go to: http://www.maritz.com/maritz-webcasts.html

For copies of today’s presentation:Please visit

http://www.maritz.com/amagrowyourbusiness

To contact today’s speakers: Randy Brandt

[email protected]

Rodger [email protected]

Questions for the AMA: Melissa Jazmines

[email protected]

AMA Marketing Effectiveness Online Seminar Series Melissa Jazmines American Marketing Association.

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Transcript of AMA Marketing Effectiveness Online Seminar Series Melissa Jazmines American Marketing Association.