Root Causes of Why Customer Experience Programs Fail. and what you can do to ensure your program is successful

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1 Root Causes of Why Customer Experience Programs Fail and what you can do to ensure your program is successful

2 Root Cause Failure Analysis According to Wikipedia: Root cause failure analysis (RCFA) is a method of problem solving that tries to identify the root causes of faults or problems that cause operating events. RCFA practice tries to solve problems by attempting to identify and correct the root causes of events, as opposed to simply addressing their symptoms. By focusing correction on root causes, problem recurrence can be prevented. RCFA (Root Cause Failure Analysis) recognizes that complete prevention of recurrence by one corrective action is not always possible. Ask Why 5 Times: Son had a report card with bad grades: Why 1: He has too many after school activities Why 2: He does not plan his time well Why 3: He studied the wrong things Why 4: He doesn t have someone helping him study. Why 5: He has poor reading comprehension 2

3 Root Causes of Why Customer Experience Programs Fail 1) Data is Not Actionable 2) Leadership Is Not Behind the Program 3) Data is Not Business Relevant 4) The Organization's Culture is Just Not Customer Centric 3

4 Data Is Not Actionable: Survey Architecture One Survey cannot tell all Three levels for surveying customer experiences: Brand Overall Relationship & Touch Points Specific Transactions 4

5 Data Is Not Actionable: Verbatims for Low Performing Touchpoints Completely Dissatisfied Neutral Completely Satisfied Working as a partner to focus on your business Being a single source for leasing of XX products and services Flexibility to meet the requirements of your business О О О О О О О О О О О О О О О О О О О О О О О О О О О О О О О О О [IF Q =0-5, ASK Q14. OTHERWISE SKIP TO Q15.] 14. Do you have any suggestions on how (SPONSOR) could make it easier for you to do business with them? (RECORD VERBATIM. PROBE ONCE TO CLARIFY.) 5

6 Data Is Not Actionable: Problem Occurrence/Resolution Closed Loop 1) Have you had a problem? 2) Is it resolved? 3) If not, define the problem? 4) Would you like contact? Digital notification/action/approval of the problem resolution. Close the loop with the individual customer! 6

7 Secure Customer Index Data Is Not Actionable: Problem Occurrence/Resolution Reporting Loyalty to Client is significantly higher when no problems occur than when they do. Also, customers who have had their problems resolved are more loyal than those who have not Total Client Had Problem No Problem Problem Not Resolved Problem Resolved 7

8 Data Is Not Actionable: Segmentation of Your Customers Via Your Index Legend % in Each SCI Segment Secure to < 90 29% 22% 45% 12% 12% 16% 18% 22% 70 to < to < 70 20% 26% 19% 21% 10% Less than 60 At Risk 14% 15% 12% 7% 10% 41% 29% Client Competitor #1 Competitor #2 Competitor #3 8

9 Data Is Not Actionable: Problem Occurrence/Resolution Closed Loop Customer At Risk (Identified from low ratings.) Alert Sent to Program Office OR Requested Red Alert (via problem incidence) Individual Rep Updates Action Tracking Module in Online System Alert Routed to Business Unit Follow up with customer builds credibility and improves referral rates. Follow through by customer-facing departments ensures actionability. Individual Rep Follows Up With Customer 9

10 Data Is Not Actionable: Ownership Matrix Touchpoints Determine who the functional owner or owners of the attribute are. This should be the person assigned to drive the improvement effort. 10

11 Data Is Not Actionable: Ownership Matrix Touchpoints Customer Experience Touchpoint Sales reps have knowledge of your business Client Function TBD Client Functional Head TBD Products utilize state-of-the-art technology TBD TBD Web site is easy to navigate TBD TBD 11

12 Data Is Not Actionable: Aligning Customer Experience Attitudinal Data to Operational Data Lagging Measures Survey Touchpoint Detail Attributes Leading Measures Business Process Measures Easy access to shipment information Can reach service personnel if needed Has an intuitive web portal for shipment status Wait time in service center Number of hits to web portal and time on portal The internal process and measures must be investigated and process improvements put in place before attribute performance can be improved. 12

13 Data Is Not Actionable: Data Must be Deployed to the Desktop Digital capability to create and save custom charts and tables. The CE program management staff should be accountable for usage data 13

14 Data Is Not Actionable: Ask the Three Key Questions BEFORE You Start Make sure your research is designed to answer the three key questions: What was said? What does it mean? What do you do now? Design Survey STEP 2 STEP 1 Outline Objectives Collect Data STEP 3 The Research Process Analyze Data STEP 4 STEP 5 Prepare Report STEP 6 Present Results 14

15 Leadership Is Not Behind the Program: They Must Be Engaged.Blueprinting Blueprinting is an interactive workshop with key leaders in which we build an end-to-end business model blueprint. This enables the client to build their own customer centric business performance chain In Blueprinting the Executives answer these questions: What are the key financial measures of the organization? What are the critical customer behaviors that drive financials? What are the critical customer experiences that drive customer behaviors? What are the critical employee engagement metrics that drive operational performance? What are the critical operational metrics that drive customer experiences? 15

16 Leadership Is Not Behind the Program: They Must Be Engaged.Blueprinting Internal Process Measures First Call Resolution Sales Rep Experience Employee Measures Manager/ Supervisor The Job Career Development Customer Experience Measures Value Proposition Quality Business Results Measures Costs Stock Price Profit On time Delivery Compensation/ Benefits Partnership Operating Income $ s from New Products Teamwork Customer Focus Turnover Issues Fees Sales Reps Customer Loyalty Loyalty to Competitors Revenue Growth Key Benefits of Blueprinting Leadership builds a customer centric business performance chain. Leadership recognizes that the customer experience is a vital link between allocating work/resources and profitability. 16

17 Leadership Is Not Behind the Program: Develop Leadership Goals That They Own Validation of the Organization s Value Proposition Client Competitor #1 Competitor #2 Competitor #3 Average Value Prop Index Value Prop Index Component Scores Helps Build OD Practice Trusted Leader in Vision Care Products Deliver Exceptional Vision Market Leader in Superior Optics Design Supports OD Patient Loyalty

18 Leadership Is Not Behind the Program: Evaluate If CE Improvement Can Be a Component of Executive Compensation 18

19 Data is Not Business Relevant: Linkage to Downstream and Upstream Data and Metrics 19

20 Data is Not Business Relevant: Linkage to Downstream and Upstream Data and Metrics Blueprint: Build Your Business Performance Chain Employees Work Customer Experiences Customer Behavior Business Results Brand / Loyalty Employee Engagement Internal Processes Relationship Share of Business Customer Share Gross Margin Transactions Upstream Linkage Downstream Linkage 20

21 Data is Not Business Relevant: Linkage to Downstream and Upstream Data and Metrics Step #1 Blueprinting Conduct working sessions with client managers. Develop blueprint of proposed relationships. Step #2 Assessment Review surveys currently conducted. Assess datasets; survey, financial, process. Make go/no-go decision about viability of linkage. Step #3 Analysis Construct linkage model based on available data. Derive key drivers and their relative impact. Identify top opportunities for financial success. Step #4 Simulator Component A Attribute Component 1 B Attribute 2 Attribute 1 Attribute 3 Component C Attribute 2 Attribute 1 Attribute 3 Component D Attribute 2 Attribute 1 Attribute 3 Attribute 2 Attribute 3 Projected $ impact on revenue and other financial measures. 21

22 Share of Customer Average Customer Loyalty Data is Not Business Relevant: Linkage to Downstream and Upstream Data and Metrics B to B Case Study Freight Company Results showed positive relationships among the following key metrics Relationship Between Customer Attitudes and Customer Behaviors Relationship Between Driver Engagement and Customer Loyalty 60% % 95 +$66 Million 51% 90 50% 46% 85 45% 44% 80 40% Low Loyalty Medium Loyalty High Loyalty 75 Low Medium High Driver Engagement 22

23 Top 2 Box Satisfaction with Wait Time (5-Pt Scale) Data is Not Business Relevant: Linkage to Downstream and Upstream Data and Metrics The right level of operation targets can be set. Linking Attitudes to Actual Wait Time 100% 90% 80% 100% 100% Target of Operational Metrics: < 2 Minutes 97% 91% 88% 70% 70% 60% No Wait <10 Seconds Seconds Seconds 1-2 Minutes Over 2 Minutes 23

24 The Organization s Culture Is Just Not Customer Centric: Measure Customer Centricity via Employee Engagement Search for gaps between expectations and perceptions both within the organization and among customers. Comprehensive Customer Advocacy Measurement System Internal Among Sub-Groups Leadership & Strategy Role Modeling & Accountability Product/Service Excellence Employee Commitment Support (Tools & Training) Recognition & Reinforcement Internal - to - External Client to Customers Sub-Groups: Executive Leadership/Management/Customer Facing Employees/Non-Customer Facing Employees 24

25 The Organization s Culture Is Just Not Customer Centric: Measure Customer Centricity via Employee Engagement Create deliberate links between survey items and cultural components that encourage customer centricity. Leadership & Strategy Client Senior Leadership does an effective job of telling employees about Growth & Performance Strategy. Client Senior Leadership has clearly communicated a strategy for creating and maintaining customer satisfaction and loyalty. Role Modeling & Accountability Employee Understanding & Commitment Support, Tools & Training My manager has clearly communicated client s strategy for creating and maintaining customer satisfaction and loyalty. My work group is accountable for solving customers' problems as needed. I believe customer loyalty is key to remaining a strong and prosperous company. My work group understands the needs of customers to offer the best solutions. I am empowered to do what needs to be done to meet customers' needs. In my work group we have the technical knowledge to meet customers' needs. I have the tools I need to do my job effectively. Product & Service Excellence Rewards & Recognition Clients products have industry leading features and functions. Client products meet the needs of our customers. I have been recognized for my contributions in supporting our strategy. Values my contributions in providing quality customer service and support. 25

26 Presentation Outline 1. Data is not actionable Survey architecture. One survey can not tell all Brand, overall relationship/touchpoints, transactions Problem occurrence/resolution closed loop Segmentation of your customers via index Verbatims for low performing attributes Ownership matrix for touchpoints Defined process for acting on results Align customer experience attitudinal data to operational metrics Data must be deployed to the desktop and usage measured 2. Leadership is not behind the program Must be engaged from the start blueprinting Develop leadership goals that the program can validate for them value prop or market performance goals Ensure that customer experience improvement is a component of Executive incentive compensation 3. Data is not business relevant Linkage to downstream and upstream data and metrics 4. The organization s culture is just not customer centric Measure customer centricity via your employee engagement survey Look for gaps between Executive Leadership/Management/Customer Facing Employees/Non Customer Facing Employees Look for gaps within your organization and from your organization to your customers Initiate change management to move the culture For More Information Contact: Bill Barnes Senior Vice President Burke, Inc. Bill.barnes@burke.com

27 Q & A 27

28 Bill Barnes, Lead Consultant and Senior Vice President Bill brings a practitioner expertise to his consultant practice at Burke based on a 26-year career at Eastman Chemical. His expertise is designing and implementing voice of the customer programs that deliver operation and financial results. His career with Eastman included senior positions in Sales and Business Management. From 1993 to 2000 Bill was Eastman's Global Director of Customer Satisfaction where he was responsible for designing, analyzing and implementing multiple voices of the customer instruments. Eastman was recognized in 1993 as a Malcolm Baldrige Quality Award winner. While at Eastman Bill was Chair of a benchmark consortium that studied best practices in Customer Satisfaction measurement, analysis and deployment. Member companies were IBM, Microsoft, Johnson & Johnson, Nortel, Canadian Imperial Bank Corporation, Disney, Ford, Milliken, Xerox, USAA, United Van Lines, and United Parcel Service. This benchmark consortium has provided Bill best practice knowledge in multiple industries. Bill joined Burke in 2001 and has developed an extensive business focused on customer loyalty measurement and improvement planning execution across multiple B to B and B to C industries. Linkage to upstream operations and downstream financial results has enabled his clients to increase leadership engagement and to prioritize improvement alternatives with enhanced business relevance.

29 For More Information: Contact Bill Barnes Senior Vice President

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