Managing the Customer Experience by Measuring the Impact Payoff

Transcription

1 W E B C A S T S E R I E S Managing the Customer Experience by Measuring the Impact Payoff April 24, pm to 3pm EDT

2 Featured Speakers Gael Lundeen Vice President Customer Experience Dennis Fitzgerald Vice President Customer Satisfaction Dennis Gershowitz Vice President Service Strategies Practice

3 CEMDNA Playbook Strategy Dennis Gershowitz VP, Service Strategies Practice Anthony & Alexander Group LLC

4 What is the ROI of Investing in CEM? Customer sat & loyalty may be soft metrics, but they demand hard dollars to achieve optimum results Assessing the investment Corporate commitment to customer-driven culture Staff resources & training VoC data collection & analytics CRM technology Measuring the impact payoff Customer acquisition Retention Growth Win-back All that matters is that customers not products and services are the source of all revenue and profits.

5 CEMDNA Playbook Strategy 4 Phases 12 Building Blocks

6 How Customer Feedback Can Fortify Your Business Model Gael Lundeen Vice President Customer Experience

7 Pitney Bowes Inc. 28,000 Employees worldwide 2 million Customers in 100+ countries Products and Services Print and Mail Production Location Intelligence Address Management Postage Meters High Volume Folders and Inserters Presort Services Postage, Shipping and Permit Payment Solutions Secure Tracking Software Expertise across all major industries Responsible corporate citizen 2012 Revenue: $4.9 billion International revenue: 32% EBIT as adjusted: $820 million* Free Cash Flow: $769 million

8 Scope of the Customer Experience Program at PBI Relationship Surveys: Identify & improve elements critical to the business relationship Product Surveys: Connect with users of our products and services Transactional Surveys: Monitor each element of the Customer Lifecycle enable operational improvements Sales Transactions Field Sales Inside Sales New Customer Acquisition Onboarding Installation Self-Install Training Product Support Phone On-Site On-Call Web & Chat Account Support Phone CHAT Vertical Markets Web Business Continuity Supplies Software updates Rate Change Global Over 15K completed surveys per month Monthly review process All employees carry a customer-centric goal

9 Companies and colleagues can put up a lot of resistance to Customer Experience Programs Resistors Until You Identify How Customers are at the Heart of your Business Results

10 Identify the impact of Poor Customer Experience 1. Customer churn: Recruiting new Customers can be 30 times more expensive than keeping existing ones 2. Dissatisfied Customers are 16x more likely to cancel 3. Failure to cross-sell other products into your own Customer base 4. Employees who handle dissatisfied Customers have higher turnover 5. Functional departments operate to their own metrics, and hand-offs to other functions have costly defects 6. As businesses trim costs, you inadvertently cut the services customers value most 7. Lose competitive advantage: the Customer Experience field is expanding well beyond consumer goods into B2B, services and beyond

11 So how can an organization truly measure the ROI or impact payoff from Customer Experience Management? Cost of lost Customer = lifetime value of customer Extra revenues from satisfied Customers Higher success rates with new products, using Customer feedback to improve new product adoption across your Customer base Cost avoidance of shifting Customer transactions from higher cost channels to lower cost channels Post-Sale feedback on products surfaces opportunity for add-on services Monetize the P&L benefits Loyalty Math Samples 100 retained Customers x $5K LTV = $500K Compare revenues from very satisfied vs. very dissatisfied Customers over time to find the revenue gap. Use this to model the value of driving up satisfaction. 10% improvement over normal penetration rate = 300 extra placements x $3200 product/service revenue = $960K Customers moved from phone interactions to online/self-service interactions = cost savings from lower channel Customers who buy additional services = 200 x $1200 = $240K

12 Identify a Framework that Crosses Organizational Boundaries Measure Customer view of the End to End interactions Public Scoreboard displays customer view across a wide spectrum of interactions; functional boundaries fall Monitor Touchpoints across the Customer Lifecycle Force action among lower performing touchpoints Enable the organization to embrace and act on customer view Fosters & establishes accountability across functions

13 Choose a Good Survey Platform Actionable Accessible Logical Metrics Insightful Reporting Enables Deeper Analysis Each form of feedback can be linked to a particular customer VOC stored on accessible self-service website Set and measure goals for each process/product measured Keep the metrics simple and self-explanatory Good reporting calls attention to top issues, progress over time; frequency key Need database into which output over time can be stored / reported / analyzed

14 Create Actionable Feedback Collect Customer feedback on specific interactions / products Design a smart survey; structure questions to provide actionable data Create rapid response mechanisms across the organization to handle dissatisfied customers Knowing that a process causes dissatisfaction is not as valuable as knowing why. Ask and measure the Why? Incorporate customer VOC metrics into normal management process Set a simple and actionable metric

15 Establish aligned goals for each level of the organization Net Promoter Score Loyalty Executive Net Satisfaction Across Range of Transactions Customer Satisfaction across range of interactions Senior Leadership Satisfaction with specific process elements Speed First Call Resolution Ease of Use Agent Performance Etc. Operations Management & Front Line

16 Customer Experience Can Revitalize a Business TRANSFORMS YOUR ORGANIZATION to be more Customer Centric ADDS THE CUSTOMER VOICE to the business conversation UNCOVERS GROWTH within existing Customers DRIVES GROWTH from new solutions developed with Customers PROTECTS REVENUE through Customer Retention BEST AVENUE to uncovering opportunities for the future

17 Ensuring a Superior Customer Experience by Delivering Quality Products On-Time to Demanding Customer Requirements Dennis Fitzgerald Vice President, Customer Satisfaction Yaskawa Electric Corp.

18 Yaskawa Electric Corporation (B2B) Yaskawa Electric Corporation Kitakyushu, Fukuoka, Japan Founded: 1915 Sales: $3.9 Billion Associates: 8100 Yaskawa America, Inc. Drives & Motion Division Waukegan, IL, U.S.A Founded: 1967 Sales: $504 Million Associates: 987 Robotics Division Drives Motion Control

19 Yaskawa America Business Landscape

20 Quality Experience Highest Quality Product + Highest Quality Experience Customer Satisfaction Customer Loyalty Customer Retention It s easy to measure our product and services features, performance and quality versus our competition How to measure Customer Experience versus the competition or benchmark in general

21 Annual and Transactional Surveys Yaskawa Satisfaction American Customer Satisfaction Index

22 Regression Analysis Tool

23 Monitor Key Scores Drive Customers Motion Customers Distributors End Users OEM 2011 Survey Total Overall Satisfaction Value Switch Recommend Net Promoter Score 67% 70% 59% 78% 49% 57% Secure Customer Index Secure % 25.3% 26.9% 21.8% 29.1% 22.5% 18.8% Favorable % 34.0% 35.2% 32.1% 38.2% 25.7% 34.9% Vulnerable % 21.8% 20.7% 24.0% 19.3% 24.8% 24.3% At Risk % 18.0% 16.4% 21.6% 12.5% 26.0% 20.8% Unknown % 0.9% 0.9% 0.5% 0.8% 1.0% 1.2%

24 Key Focus Areas 1. Building Overall Relationship 2. Providing Technical Support 3. Delivering Products and Services On Time to Customer Request *These areas could change dynamically based on the market the competition and general customer expectations

25 Key Focus Area Performance Touch Points Tech Support Trend Copyright 2010 YASKAWA Electric Corporation

26 Impact Payoff Gross Margin Ranking Revenue Ranking

27 Panelist Questions 1. Boosting customer loyalty may require a significant investment to improve the customer experience. How do you go about projecting gains in revenue and profits that could result from specific improvements in customer satisfaction and loyalty? 2. What performance assessments do you use to compare your customers loyalty factor to business performance growth? 3. Operational efficiencies come from actionable customer insight and related process improvements. Give us an example of a process mapping effort that paid off in improved profitability for your company. 4. Having a successful CEM/VoC program in your company has been proven to lead to elevated customer successes and profitability, as well as improved returns to stakeholders. What have been the top three strengths of your program?

28 Thanks for Your Participation Gael Lundeen Vice President, Customer Experience Tel. 203/ Dennis Fitzgerald Vice President Customer Satisfaction Tel. 847/ Dennis Gershowitz Vice President Service Strategies Practice Tel. 910/

29 Requests for Information Bill Bradley Director of CEM Marketing Omega Management Group Corp. Tel.: 978/ Check for upcoming webcasts at