customerexperiencewebinar

8/7/2019 customerexperiencewebinar

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Customer Experience Management:

Raising Customer Satisfaction, Loyalty and Advocacy


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Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: [email protected]. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

Customer Experience Management:Raising Customer Satisfaction, Loyaltyand Advocacy

Ed Thompson

Jim Davies

Gartner Webinar


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Sources: Strativity Group 2008 Customer Experience Management Global Survey, Beyond Philosophy, 2005

Employees

are cynics

Customerpower isrising

Executivesare notsure how toimprove it

Situation Complications

Executives seek differentiationthrough customer experience

80% of executives think the customerstrategy is more important than

it was three years ago

95% of business leaders see itas the next competitive background

IT is seen aspart of the

problem

Metrics

vary

Whoowns

it?

What's New? Executive Focus IntensifiesWhile Complications Multiply


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Key Issues

1. What is customer experience management?

2. How can technology help improve thecustomer experience?

3. What techniques can be deployed to helpunderstand the customer experience?


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Who Cares About The CustomerExperience And What Do They Measure?

Loyalty /

Advocacy

Brand /Reputation

CustomerSatisfaction

CustomerExperience

Quality

Marketing Communications

Product / Service Design

UI Design

Process Improvement

Churn / Retention

Customer Service

Product Engineering

Sales

Referrals / Customer Refs

Market research

Loyalty Management


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Service-Profit Chain Methodology:Linking Customer Satisfaction to Loyalty


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Organization

$$$

$Feedback

$$$$$

Experience

$$Feedback

Customer ValueProposition

1. BeforeSet expectations

2. DuringFocus on whatcustomers care about

3. AfterCollect feedback

4. RepeatAct on feedback

Customer Experience Management:Before, During and After the Experience

Customers


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Setting Expectations: Competing WithWord of Mouth and Past Experience

Gap 1: Customer expectations vs.management's perception ofcustomer expectations=not knowing what

customers expectGap 2: Management perceptions vs.service specifications=the wrong quality standards

Gap 3: Service specifications vs.service delivery=not being able to deliver to specs.

Gap 4: Service delivery vs. external

communications=when promises do notmatch delivery

Gap 5: Difference between customerexpectations and customer

perception of the provided service=level of customer satisfaction

Word-of-Mouth Personal Needs Past Experience

Expected Service

Perceived Service

Service DeliveryExternal

CommunicationTo Customers

Service QualitySpecifications

Provider

Customer

Gap 3

Gap 4

Gap 2

Gap 1

Gap 5

Source: DeliveringService Quality Zeithaml,V.A., Parasuraman, A, &Berry, L. 1990

ManagementPerception of

CustomerExpectations


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Use Support Upgrade

Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 Event 7 Event 8 Event 9

F

unctionalO

rganization

Marketing

WebSite

ProductDisplay

Search

Catalog

InventoryManagement

Partners

Custom

erService Interactive

VoiceResponse

CustomerService

Representative

AccountRepresentative

Search Select Order Pay Set Up Learn

DevelopManage problems

Retain/Win Back

Aware

Target Inquire Acquire Welcome

Life CyclesCompany

Perspective

Customer

Perspective

Events

= "Moments of Truth"

Designing the Customer Experience:Process Maps Expose 'Moments of Truth'


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95 percent of companiescollect feedback.

45 percent alert staff tothe findings.

35 percent make decisionsusing this insight.

10 percent deployand improve.

5 percent inform customers

of the change.

0

100

50

95%95%

45%45%

35%35%

10%10%5%5%

CollectFeedback

AlertStaff

UseInsight

Deployand

Improve

TellCustomers

Percentage of Companies

Listen to the Feedback but alsoAct on Feedback, Tell Customers and Staff

Source: Respond, 2006

S P j t T d Fift W T


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Seven Project Types and Fifty Ways ToImprove The Customer Experience

Design theExperience

Benchmarkusability andempathy

Digital design

cool

Recruit Differently

Profiling thepersonalities

Balance teams

Recruit to brand

Stripped-DownSimplification

One size fits all

Standardizationand scale

EncourageParticipation

Review andcomparison

Communities

Social networks

MultichannelAvailability

Multichannelintegration

Device-independent

interaction

Adapt in Real Time

Real-time rerouting

Analytical-drivenprocess decisions

Start aConversation

Expectation setting

Capturing intent

Manage dialog

BrandExecution

Values andpromise

Reputation

Communication

Make Clear theResponsibility

Governance andpolicing

Responsibility

Compensation andcontracts

Customize Offers

Bundlingproduct/service

Personal pricing

DemonstrateTrust

Honor privacy

Share data

Use only what youneed

Share Answers

Knowledgemanagement

Skills inventory

Better search

RedesignProcesses

Quality controls

Trading efficiencyand experience

Analyze OpinionValue analysis

Market research

Segmentation

Propensity modeling

Have aStrategy

Executiveenlightening

Ideal and realexperiences

Program andproject plans

EmpowerEmployees

Education andtraining

Cultural values

Ownership of theexperience

PersonalizeProducts

Configure to order

Masscustomization

New productdevelopment

More Accessible

Self-service

Track forcustomer

Add channels

AchieveConsistent

ExperiencesSingle view ofcustomer

Recognition

Find Moments ofTruth

Process modeling

Identify the weakestlink

Automate andescalate

Collect Feedback

Multichannel

collection

Real-time alerts andactions

DesignBetter

AlterAttitudes

GetPersonal

OpenUp

Act asOne

From Outto In

Listen,Think, Do


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Key Issues



3. What techniques can be deployed to help

understand the customer experience?

M lti l T h l i C H l F All


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Multiple Technologies Can Help For AllCustomer Experience Project Types

Design theExperience

Webanalytics

Web design

Content mgmt

Storefront

Recruit Differently

Recruitment

Induction

Community mgmt

Stripped-DownSimplification

Order mgmt

BPM modeling

Web design

Storefront

EncourageParticipation

Review andcomparisontechnologies

Community mgmt

Social networking

MultichannelAvailability

Applicationintegration

Mobiletechnologies

ERMS, IVR, SMS

Adapt in Real Time

Business activitymonitoring

Workflow

In-line, event-drivenanalysis

Start aConversation

Dialog management

ERMS

Search

eService

BrandExecution

MRM

EMM

Content mgmt

Communitymgmt

Make Clear theResponsibility

HCM, ICM

Employee contractmanagement

QA monitoring

WFO

Customize Offers

Productconfiguration

Pricing mgmt

PIM, content mgmt

Product catalog

Order mgmt

DemonstrateTrust

Data privacy

Security tools

Partner mgmt

Share Answers

Knowledgemanagement

Search

eService

Contentmanagement

RedesignProcesses

BPM modeling

Data mining

Workflow

Analyze OpinionCustomer valueAnalytics

Data mining

Segmentation

Sales, CSS, Mking

Web analytics

Have aStrategy

Consultants

Advisors

Branding

Value analysts

EmpowerEmployees

eLearning

WFO

Sales analytics

CSS analytics

Web analytics

PersonalizeProducts

Productconfiguration

Pricing mgmt

New productdevelopment

Storefront

More Accessible

eService

Tracking

Field forceoptimization

Remotemonitoring

ERMS

AchieveConsistent

ExperiencesCDI

MDM

BPM

ERMS

Find Moments ofTruth

Data mining

Lead mgmt

Segmentation

BI

WFO

Collect Feedback

EFM

Survey tools

Event analytics

BPM

QA monitoring

DesignBetter

AlterAttitudes

GetPersonal

OpenUp

Act asOne

From Outto In

Listen,Think, Do

I t t i CRM I 't H l i th C t


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Investment in CRM Isn't Helping the Customer:It's Time to Focus on the Customer Experience

Millions of DollarsPercent

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

American Customer SatisfactionIndex (ACSI; Jan 2008)

Worldwide CRM License andMaintenance Revenue(Gartner; Jan 2008)

The True Customer Experience I Rarely


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The True Customer Experience: I RarelyNeed You, and When I Do, You're Not There

Amount customer relies on directinteraction with the enterprise

Amount customer relies on self-service and social networks

1%

99%99%Community forums

BlogsThird-party support sites

Social networking sites

What you control less:

But this differs by industryand region:*

Property and casualty 30%

Automotive: 60%

Retail banking: 5%- 20%

Retirement services: 3%

Online retailers: 1%

Bottom line: You are the likely last resort for credible information.

* Based on interaction with 300 clients in 2008.

The Customer Experience Challenge:


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In-StoreInteraction

Customer(Self-Service)

Reseller'sCustomer

Database

ServiceTechnician

OutsourcedService

The Customer Experience Challenge:Where Is theService Process Designed?

InsourcedService

ATM/Kiosk

Each channelmanager sees agreat process,

while thecustomer

experiences abroken process.

Bottom line: Customers are turning tosocial networks, where the better answersare, and the people more friendly.


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HP PhotoSpace Listens to the Customer

Understanding consumer needs

Insight gathering and idea generation

Concept development and evaluation

Exploration of corporate issues:Allow hundreds of HP employees to

observe real-time consumer reactionsto surveys, discussions, topics ofinterest and new concepts. AllowsHP employees to see members'unfiltered feedback

Provide immediate qualitativefeedback (sometimes within a fewhours) on topics such as:Examples of product shortcomings,

life style information (usage patterns,storage, locations), product name,and tag line input and prioritization

Hp.communispace.com

HP really values the opinions of its customers. 58%

Provided a trustworthy forum for exchanging 54%opinions.

Enabled me to give candid feedback to HP. 52%Made me feel my voice "matters" to HP. 49%

I feel more respect for HP as a company than 43%I did before.

I'm more inclined to consider HP products than 36%

I was before I joined the community.

I don't expect any changes to result from the 1%feedback from this community.

Benefits to HP Clients:

Benefits to HP:

Map The Productivity and Customer


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Map The Productivity and CustomerExperience Impact of Your 2009 Projects

CustomerService

Productivity

High

High

Low

Low Medium

Medium

Moderate

Challenging

Easier

Achieving ROI Customer Experience

SecretAgent

Desktop Productivity Tools

Interactive Kiosks

KM/Search

WFO

Field-Service

Optimization

ACDPredictiveAnalytics

IntelligentDevice Mgmt.

ChatbotsCommunityMgmt.

CaseMgmt.QM

WFM

E-serviceE-learningCCPM

Interaction/

BehaviorAnalytics

CTIIVRSpeech

RecognitionFeedback Mgmt.

Speech-EnabledApplications

IM/Chat?

Collaboration(certain situations)

IDM/Self-Healing

ACD: automatic call distribution

CTI: computer-telephony integrationIDM: intelligent device management

IVR: interactive voice response

QM: quality management

WFO: workforce optimization

CCPM: contact center performance managementERMS: e-mail response management system

IM: instant messaging

KM: knowledge management

WFM: workforce management

ERMS

Example: Customer Service and Support Technology Projects


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Key Issues



3. What techniques can be deployed to help

understand the customer experience?

Understanding the Customer Experience:


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Understanding the Customer Experience:Feedback Takes Many Forms

Explicit Feedback(EFM)

Implicit Feedback(Direct and Indirect)

Operational Feedback(Monitor and Evaluate) Behavioral Feedback(Implied)

HolisticUnderstanding of

the Customer

Experience

Implementing Customer Feedback Systems:


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Implementing Customer Feedback Systems:A Three-Tiered Approach

Point ofDelivery

CustomerSatisfaction

Planning

Every Customer Interaction Is

Measured for Effectiveness

Every Customer Is

Measured for Satisfaction

Key

Customers

Are Consulted

Five to Seven Questions

Chosen Channel

Guided

Conversation

Two to ThreeShort Questions

All Channels


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Making Feedback Event-Driven

Customer eventtriggers survey

Questionspersonalized to event

Response cantrigger workflow

Use tomaximize

response rate

and overallbusinessvalue

Ongoing Feedback Measuring the


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Ongoing Feedback Measuring theCustomer Pulse

Monitor key attitudinal indicators through regularsurveying not "one and done"

Detecting "murmurs" drives timely actions beforecustomer behavior changes

Activate:

Recovery action Agent coaching

Policy change

Panel Management:


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Panel Management:Not Just for the Panel

Use demographics,psychographics, profiling,

interaction and feedbackhistory to pinpoint the right

respondents for each

feedback event.

Balance burnout withneglect

Balance sample size withstatistical outcome

Balance channelpreferences with budget

Apply concept to ALL customers not just those in a panel

Optimize Response Rates Through Eight Best


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Optimize Response Rates Through Eight BestPractices for Who, What, When and Why

Be TimelyAdds relevance andenhances accuracy

Don't InundateAvoid over surveying byblocking delivery to

maintain future willingness

Offer FeedbackA perception of beinglistened to will enhancefuture responsiveness

Drive MotivationWhat's in it for thecustomer? Cash is not theanswer

Get ShorterGet to the point, notseek insight on multipletopics

Give PreferencesAsk the questions on theformat the customer prefers

SMS, Web, IVR,

Optimize SamplePick an appropriate segmentof people or business event

for each survey initiative

1

2

3

4

5

6

7

Get PersonalEngage with the individualand topic you want

feedback on

8


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Recommendations

Think about the before, during and after of customerexperience management and determine your start point:

- Get the basics right Fix the must-be aspects

- Move above average Invest in the before and after

- Stay on top Avoid the middle ground

Create technology matrices to help prioritize futureoperational investments and consider innovative deployment

methods rather than novel technologies to drive differentiation

Appreciate that feedback can come from many sources butthat surveying plays a key role and should be viewed asongoing, personal and linked to customer events


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Visit gartner.com/economy now to seeexactly how Gartner takes cost out of IT
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