What is Customer Engagement and why it is important The benefits of Engagement and how do you measure them How are business looking at Customer

Transcription

1 Customer Engagement

2 What is Customer Engagement and why it is important The benefits of Engagement and how do you measure them How are business looking at Customer Engagement What does it mean to Affinion and what we are doing 2

3 What is Customer Engagement 3

4 Customer Engagement Customer View You tell me about relevant products that suit my needs. I can quickly and easily access it whenever, however and wherever I choose. I feel valued and satisfied because you anticipate and recognise my individual needs and are available and responsive when I need you. I feel a part of it, I use my benefits and I recommend to others. 4

5 Definition of Customer Engagement Company View We take a end-to-end view of the customer journey and place the customer at the heart of it of what we do. It s the degree to which customer experiences are equal or better than the expectations set by brand promises as delivered by easy to use touchpoints. Ultimately delivering repeat purchase/usage and referrals and increased customer lifetime value. 5

6 The Benefits of Customer Engagement and how you measure it 6

7 The Changing Marketplace Competition Regulator Online / Social Media Consumer Economy 7

8 Measures of Customer Engagement Engagement Frequency Attrition Curve Website Utilisation Loyalty Customer Engagement Net Promer Score Cancellation Customer Satisfaction Lifetime Value Complaints Volume 8

9 Customer Effort vs Net Promoter Score / Customer Satisfaction Advocacy Net Promoter Score & Customer Satisfaction Advocacy Drives Growth claims that a 7 point increase in word of mouth advocacy (net-promoter score) correlated with a 1% increase in growth Loyalty Customer Effort Score Customer Contact Council states that reducing effort by 10% yields 4.6% increase in Loyalty. Source: HBR 9

10 Impact of Customer Effort against Loyalty and Repurchase Source: Executive Board 10

11 Evaluating Customer Experience Touchpoints Benefits Customer Service Technical Support Online Experience Day-to-day product use experience Sales interactions Product literature Marketing Communications Is responsive to my feedback Simplifies my supply chain Is easy to business with Removes cost from my business Keeps my employees happy Adapts to my unique needs Offers a great out of the box getting started experience Source: CCC 11

12 How to measure Customer Effort and Averages across Industries Source: Executive Board 12

13 Distribution across Industries Source: Executive Board 13

14 How are business looking at Customer Engagement 14

15 Starbucks Key Satisfaction Drivers Staff Conduct - 43% Coffee - 12% Remember regular customers drink preferences Hardworking and professional Fast and efficient at peak times Friendly and helpful attitude Gives a pick up for the day Made exactly to the clients liking (e.g. piping hot) Better taste than competitors Excellent flat white Client Welcoming atmosphere Place to relax Brand image & quality Consistency of product quality across locations Satisfied Customers Homely Happy to sit in alone Good location Comfortable furnishing Excellent tasting coffee Tasty food Ambience - 6% Quality - 7% The category percentages refer to the proportion of Promoters (customers scoring 9 and 10 for Overall Experience) to have their verbatim categorised in the associated category Source: Fizzback Fishbone 15

16 Starbucks Key Dissatisfaction Drivers Tables & Chairs - 6% Waiting Times - 14% Crumbs and wrappers on the floor Not enough comfortable seats Cups and plates not cleared fast enough Unbalanced tables Long queues Poor staffing causing peak-time delays Waiting for seats to become available Client Stressed and rushed Ignoring what the client wants Slow service Lack of engagement Talking to each other instead of working Not hot enough Weak flavour de-caf Inconsistency of taste Too much froth Lack of Client X bean decoration Wrong taste Dissatisfied Customers Staff Conduct - 24% Coffee - 16% The category percentages refer to the proportion of Detractors (customers scoring 0-6 for Overall Experience) to have their verbatim categorised in the associated category. Source: Fizzback Fishbone 16

17 Customer Satisfaction and Net Promoter Score for UK Banks Source: DMA / Fastrack 17

18 Main Banking Provider UK Marketshare Source: DMA / Fastrack 18

19 What does it mean to Affinion and what we are doing 19

20 What it means to Affinion International Our goal is for our customers to become fans; recommending our products and services to their friends and family Guillaume Huser, President Affinion International 20

21 The Customer Offers leading tech innovation Delivers on promises Provides relevant products that meet customer needs Provides a great getting started experience Market lead, providing products that no-one else is Resolves issues quickly when necessary Offers real value for money Customer Benefits Common Benefits Responsive to customer feedback Easy to compare - transparent information and pricing Unique Benefits Provides value through original/ exclusive offer/price Easy to contact with a choice of channels Keeps customers updated with relevant and personalised information Easy to use wherever, however and whenever customers choose Exceptional Customer Service 21

22 The Client 22

23 Customer Engagement across Affinion 23

24 Engaging Communications 24

25 Reduce Customer Effort in Product Design Barriers to utilisation are a key concern for customers We have recently been talking to customers about Mobile Phone Insurance What customers say: My phone is my life I want to speak to one person Make it easy Keep me informed Immediacy of replacement, wherever I am One direct call does it all Personalised, empathetic customer service Remove barriers to claim No bureaucratic (paper based) claims process, no jargon Simple and fair excess amount / exclusions Proactive progress updates Surprise and delight me Know who I am, trust me I am reasonable, so treat me fairly I want my loyalty to be recognised TNS Global focus group research conducted for Affinion undertaken in October

26 Conclusions 26

27 Customer Engagement is a key driver for business success Understand your customer needs Look at your customer touchpoints Reduce customer effort Measure and report back Put the customer at the heart of your business 27

28 Thank You 28