AMA Marketing Effectiveness Online Seminar Series. Marla Chupack - Moderator American Marketing Association

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1 AMA Marketing Effectiveness Online Seminar Series Marla Chupack - Moderator American Marketing Association

2 A wealth of information is available for marketing professionals at The #1 marketing site on the web Best Practices White Papers Professional Development Opportunities

3 Commonly Asked Questions Will I be able to get copies of the slides after the event? Yes Is this web seminar being taped so I or others can view it after the fact? Yes

4 AMA On-Demand Webcast 11 September 2007 What s Preventing You from Putting the Voice of the to Work? D. Randall Brandt Vice President Experience & Loyalty

5 Good News & Bad News

6 The Good News A majority of senior executives indicate that becoming more customer focused is a top priority: For example, a 2005 Forrester Research survey revealed that 96% of senior executives say improving the customer experience is either critical or very critical to the future success and growth of their companies. Companies continue to make significant investments in capturing the voice of the customer in order to achieve increased customer focus and improved customer experience: For example, nearly 50% of the Fortune 1000 companies we surveyed are spending $5 million or more annually on customer and marketing research alone.

7 The Bad News.. Large gap between stated commitment to becoming more customer-focused and putting customer-focus into practice satisfaction is flattening out across the board and even declining in some sectors When we asked readers of the Maritz Research Forum to tell us what keeps you awake at night? the most frequently-mentioned topic was how to use customer feedback to drive performance improvement

8 The Problem -driven performance improvement can and does work, but it requires more than just sharing customer feedback with managers and telling them to use it.

9 Today s Session Provide overview of the 2007 Maritz Voice of the Issues and Challenges survey Objectives Method Key Findings Introduce and illustrate two solutions/strategies for addressing the most prevalent obstacles to effective VOC integration and deployment Address your questions and observations

10 Overview of the 2007 Maritz Voice of the Issues and Challenges Survey

11 Maritz 2007 Voice of the Issues & Challenges Survey Objective To determine how managers assess their organization s effectiveness in putting the voice of the customer to work: Integrating VOC in to management and operations Using VOC to drive action planning and implementation To identify specific issues and challenges that are inhibiting the ability of organizations to put the voice of the customer to work

12 Maritz 2007 Voice of the Issues & Challenges Survey Managers in Fortune 1000 companies Total of 131 managers completed the on-line survey Industries represented include: Financial services Automotive Hotel & restaurant Retail Pharmaceutical Healthcare Electric & gas utilities Transportation Telecommunication Technology Consumer electronics Insurance Approximately 80% of the managers interviewed came from marketing research, consumer research, marketing, customer service, or brand management.

13 Maritz 2007 Voice of the Issues & Challenges Survey List of 22 Issues and Challenges Capturing the voice of the customer Using VOC to manage individual customer relationships Using VOC as basis for defining broad-based action items Linking VOC data/metrics to other business data/metrics Integrating VOC into organizational management & operations Planning and implementing actions on the basis of VOC data

14 Results of the 2007 Maritz Voice of the Issues and Challenges Survey

15 Key Findings A strong majority of managers indicate that their organizations have had limited success in putting the voice of the customer to work. Areas in which organizations have been most successful: Selecting VOC data and metrics Using these metrics to keep score Using these metrics to manage customer relationships

16 Key Findings Areas in which organizations are struggling: Integrating multiple sources of VOC data Linking VOC data/metrics with other business process and results data/metrics Integrating VOC into management and operations Taking action on the basis of VOC data

17 Overall, how effective would you say your organization is at integrating customer data into management and operations? Not a Priority 7% Struggling 12% Good job 18% 75% Mixed job 63%

18 Overall, how effective would you say your organization is at taking actions based on your customer data? Struggling 18% Not a Priority 1% Good job 18% 81% Mixed job 63%

19 Please indicate whether your company is still seeking or trying to develop an effective method of addressing this issue: Demonstrating 60 link between customer and financial metrics Clarifying survey action items so owners know what to do Communicating action plans to address survey action items Getting internal clients/partners to act on VOC information Pinpointing practices/processes that must be improved Integrating 0 VOC and VOE data Convincing managers that survey results are accurate Integrating multiple sources of VOC data to define priorities 8. Linking VOC to internal operational metrics 9. Using VOC information for advertising and MARCOM Demonstrating link between customer and financial metrics Clarifying survey driven action items so owners know what to do Communicating action plans to address customer driven action items Getting internal clients/partners to act on VOC information Pinpointing the business processes/practices that must be improved Integrating customer and employee survey data Integrating survey with other VOC data to define priorities Linking customer survey to internal operational metrics Using survey results and other VOC data for advertising/marcom Convincing managers/partners that survey results are reliable/accurate Maintaining awareness of purpose and goals of customer initiatives Using customer survey results for partner incentive compensation Identifying the appropriate owners of customer driven action items Using survey feedback to do CRM Using survey results as primary source for priorities & action Getting internal clients/partners to understand VOC information Using customer survey results for executive incentive compensation Selecting the survey and other customer metrics Maintaining senior management buy in about importance of VOC Maintaining integrity of VOC from manipulation by partners/others Using inbound complaints and comments to do CRM Using customer survey measures as part of management dashboard

20 Please indicate whether your company is developed an effective approach or method of addressing this issue: Maintaining 60 senior management buy-in to importance of VOC Selecting survey and other customer metrics Using customer survey as part of management dashboard Using inbound 20 customer complaints to manage relationships Getting internal clients/partners to understand VOC 0 6. Identifying owners of customer-driven action items Maintaining senior management buy in about importance of VOC Selecting the survey and other customer metrics Using customer survey measures as part of management dashboard Using inbound complaints and comments to do CRM Getting internal clients/partners to understand VOC information Identifying the appropriate owners of customer driven action items Using survey results as primary source for priorities & action Maintaining awareness of purpose and goals of customer initiatives Convincing managers/partners that survey results are reliable/accurate Using survey feedback to do CRM Integrating survey with other VOC data to define priorities Linking customer survey to internal operational metrics Pinpointing the business processes/practices that must be improved Communicating action plans to address customer driven action items Using customer survey results for executive incentive compensation Clarifying survey driven action items so owners know what to do Using survey results and other VOC data for advertising/marcom Getting internal clients/partners to act on VOC information Maintaining integrity of VOC from manipulation by partners/others Demonstrating link between customer and financial metrics Integrating customer and employee survey data Using customer survey results for partner incentive compensation 7. Using survey results as basis for defining action items 8. Maintaining awareness of VOC purpose and goals 9. Convincing managers/partners that surveys are accurate 10. Using customer survey data to manage relationships

21 Which critical challenge is most serious or gets highest priority? Demonstrating link between customer and financial metrics Integrating multiple sources of VOC data to define priorities Linking VOC to internal operational metrics Using survey results as basis for defining action items 5 5. Using survey results as a basis for incentive compensation 0 Demonstrating link between customer and financial metrics Integrating survey with other VOC data to define prio rities Linking customer survey to internal operational metrics Using survey results as primary source for priorities & action Using customer survey results for executive incentive compensation Pinpointing the business processes/pra ctices that must be improved Using survey feedback to do CRM Using inbound complaints and comments to do CRM Using customer survey measures as part of management dashboard Selecting the survey and other customer metrics Clarifying survey driven action items so owners know what to do Identifying the appropriate owners of customer driven action items Getting internal clients/partners to act on VOC information Integrating customer and employee survey data Convincing managers/partners that survey results are reliable/accurate Maintaining senior management buy in about im portance of VOC Getting internal clients/partners to understand VOC informa tion Maintaining awareness of purpose and goals of cu stomer initiatives Using survey results and other VOC data for advertising/m ARCOM Communicating action plans to address customer driven actio n item s Using customer survey results for part ner incentive compensation Maintaining integrity of VOC from manipulation by partners/others 6. Pinpointing practices/processes that must be improved 7. Using survey feedback to manage customer relationships 8. Using customer complaints to manage customer relationships 9. Using customer survey as part of management dashboard 10. Selecting survey and other customer metrics

22 Successful versus Others at Integrating the Voice of the Selecting survey and other customer metrics Using survey feedback to manage customer relationships Using customer complaints to manage customer relationships Using survey results as basis for defining action items Using customer survey as part of management dashboard Demonstrating link between customer and financial metrics Integrating multiple sources of VOC data to define priorities Linking VOC to internal operational metrics Integrating VOC and VOE data Identifying owners of customer-driven action items Clarifying survey action items so owners know what to do Pinpointing practices/processes that must be improved Getting internal clients/partners to act on VOC information Communicating action plans to address survey action items

23 Successful versus Others at Taking Action Based on the Voice of the Maintaining awareness of VOC purpose and goals Using survey feedback to manage customer relationships Convincing managers/partners that surveys are accurate Demonstrating link between customer and financial metrics Integrating multiple sources of VOC data to define priorities Linking VOC to internal operational metrics Integrating VOC and VOE data Identifying owners of customer-driven action items Clarifying survey action items so owners know what to do Pinpointing practices/processes that must be improved Getting internal clients/partners to act on VOC information Communicating action plans to address survey action items

24 Two Solutions

25 Solution #1 Implement an Integrative Voice of the Architecture in order to: Establish business impact of managing customer experiences and relationships Identify priorities for improving customer experiences and relationships Generate insights and decision support required to improve customer experiences and relationships

26 Designing & Implementing an Integrative Voice of the Architecture Design Capture & Assembly Integration & Analysis Develop Develop Experience Experience Categories Categories Capture Capture & Organize Organize VOC VOC Establish Establish Impact Impact on on Business Business Results Results Integrate Integrate & Analyze Analyze All All Prioritize Prioritize Issues Issues for for Managerial Managerial Action Action Blueprint Blueprint Systematic Systematic Relations Relations Assemble Assemble & & Organize Organize Other Other Business Business Align Align People People & Processes Processes

30 A Simplified Blueprint for Insurance Internal Process Measures Satisfaction Measures Business Results Measures Number of Number of Days to Days to Process Claim Process Claim & Issue EOB & Issue EOB Number of Number of Claims/EOBs Claims/EOBs Requiring Requiring Re-processing Re-processing Promptness Promptness Of Claims Of Claims Handling Handling Accuracy Accuracy Of Claims Of Claims Handling Handling Satisfaction Satisfaction With Sales With Sales Process Process Satisfaction Satisfaction With Claims With Claims Handling Handling Satisfaction Satisfaction With Billing With Billing Overall Overall Satisfaction Satisfaction Policy Policy Renewal Renewal Profitability Profitability Satisfaction Satisfaction With Policy With Policy Renewal Renewal Process Process

31 A Simplified Blueprint for Insurance Internal Process Measures Satisfaction Measures Business Results Measures Number of Number of Days to Days to Process Claim Process Claim & Issue EOB & Issue EOB Number of Number of Claims/EOBs Claims/EOBs Requiring Requiring Re-processing Re-processing Promptness Promptness Of Claims Of Claims Handling Handling Accuracy Accuracy Of Claims Of Claims Handling Handling Satisfaction Satisfaction With Sales With Sales Process Process Satisfaction Satisfaction With Claims With Claims Handling Handling Satisfaction Satisfaction With Billing With Billing Overall Overall Satisfaction Satisfaction Policy Policy Renewal Renewal Profitability Profitability Satisfaction Satisfaction With Policy With Policy Renewal Renewal Process Process

32 Tenure and Profitability Higher Average Profitability Lower Shorter Number of Years as Policy Holder Longer

33 Satisfaction and Retention Percentage of s Renewing Policy Overall Satisfaction

34 Key Driver of Overall Satisfaction Product Satisfaction 10% Claims Accuracy 20% Pricing Satisfaction 20% Promptness of Claims Handling 25% Sales Process Satisfaction 5% Helpfulness of Staff Helpfulness of Agent Information on Claim Status 20% 25% 15% Claims Process Satisfaction Billing Satisfaction Renewal Process Satisfaction 20% 10% 5% 20% Overall Satisfaction Agent Satisfaction 5% Information/Access Satisfaction 5% Brand/Company Imagery

35 Aligning Targets for Internal Process Metrics with Target Level of Satisfaction Relationship Between Satisfaction and Claims Handling Turnaround Higher Satisfaction with Promptness of Claims Handling Dis /satisfaction Threshhold Lower Claims Processing Cycle Time (Actual Number of Days)

36 Solution #2 Implement a closed-loop approach to managing customer experiences and relationships, with special attention to: Clarifying what the customer wants you to do Identifying owners of customer-driven action items Connecting what the customer wants to what you do

37 A -Driven Process of Improvement Step 6 Step 6 Develop Develop & Implement Implement Action Action Plan Plan Step 1 Step 1 Capture Capture VOC VOC Step 2 Step 2 Analyze Analyze & Report Report Step 5 Step 5 Identify Identify Business Business Enablers Enablers Step 4 Step 4 Determine Determine Who Who Is Is Responsible Responsible Step 3 Step 3 Clarify Clarify Action Action Item Item

38 A -Driven Process of Improvement Step 6 Step 6 Develop Develop & Implement Implement Action Action Plan Plan Step 1 Step 1 Capture Capture VOC VOC Step 2 Step 2 Analyze Analyze & Report Report Not enough detail to know what to do Responsibility for taking action may not be clear The organization may fix the wrong things

39 A -Driven Process of Improvement Step 6 Step 6 Develop Develop & Implement Implement Action Action Plan Plan Step 1 Step 1 Capture Capture VOC VOC Step 2 Step 2 Analyze Analyze & Report Report Step 5 Step 5 Identify Identify Business Business Enablers Enablers Step 4 Step 4 Determine Determine Who Who Is Is Responsible Responsible Step 3 Step 3 Clarify Clarify Action Action Item Item

40 Three Key Steps Clarify the Issue What Does the Want? Make Sure the Right People are Charged with Taking Action Target the Relevant Business Enablers Work on the Right Things

41 Clarify the Issue Ask a simple question before developing and implementing action plans do you understand what the customer wants you to do? Survey items provide a starting point, but frequently lack granularity needed to formulate action plans. Take the time to drill down into the issue and obtain the necessary detail. Sources of detailed information: Verbatim comments from surveys or other sources Quantitative ad hoc research Critical incident interviews

42 Establish Ownership of the Issue Having identified a customer-driven action item, determine who is responsible for taking action. This step must be performed once an issue is identified, but may be done in advance of having actual survey results. Two benefits of this step: Ensures involvement of the parties that impact the customer Defines the scope of action

43 Target the Relevant Business Enablers Identify and focus on the business processes, resources, and activities that address the customer issue at hand. There are formal tools and techniques for completing this step, such as Quality Function Deployment or QFD. These tools have been applied in both consumer and B2B settings for over three decades.

44 Target the Relevant Business Enablers: An Illustration In a retail setting, the issue to be addressed is customer satisfaction with the total time it takes to check-out. In an effort to target and improve the relevant business enablers, attention might be focused on such things as: Check-out queue length/logistics Cashier behaviors and interaction with customer Item scanning process and technology Payment processing and technology Packaging of purchased items

45 Benefits of the Extra Three Steps Managers have a detailed understanding of the specific element of the customer experience to be addressed. The people and parts of the organization that impact this element take ownership of it. These owners focus their attention and energy on the specific business resources, processes, and activities that help accomplish what the customer wants. In effect, the organization has taken the guess work out of customer-driven performance improvement.

46 Summary & Conclusion A strong majority of managers indicate that their organizations have had limited success in putting the voice of the customer to work. Areas in which organizations are struggling: Integrating multiple sources of VOC data Linking VOC data/metrics with other business process and results data/metrics Integrating VOC into management and operations Taking action on the basis of VOC data Two solutions: Integrative VOC Architecture Closed-loop Process of Measurement and Management

47 Thanks for your time and participation today! To replay this webcast (available within 24 hours): Go to or Go to For copies of today s presentation: Go to: To contact today s speaker: Randy Brandt randy.brandt@maritz.com To receive a copy of the Maritz Research Forum Quarterly enewsletter see To contact the AMA: Marla Chupack mchupack@ama.org

48 Questions & Answers