Cultivate Subscriber Loyalty by Refining the Digital Experience

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1 White Paper for Telecommunication Companies Cultivate Subscriber Loyalty by Refining the Digital Experience Abstract Understanding how the digital customer experience impacts brand promotion gives telecommunications companies a valuable means to influence loyalty and reduce customer loss. Kampyle links ratings to transactional events and adds feedback to give brands insight into how the digital experience drives promoter status. It offers enterprises concrete guidance on how they can improve digital customer processes to positively impact revenues and profitability. NPS alone is no more than a temperature gauge: Kampyle s integrated NPS/ CES grading, feedback and analysis solution empowers your enterprise to control the weather. 1

2 Making Metrics Actionable How is a telecommunications company like a weatherman? It sounds like a silly riddle, but the answer exposes some hard truths about how leading telecoms use, misuse and underutilize Net Promoter Scores (NPS). Like a weatherman who reports the temperatures but is powerless to influence them, too many companies treat NPS as a reflection of a reality that cannot be changed. Instead, NPS should serve as a valuable signpost inviting enterprises to stop, look, listen and adjust their approach. For NPS or any other validated measure of consumer satisfaction and loyalty (see box) to add value as a driver for improvement, companies must determine which factors influence consumers to become loyal, satisfied customers who evangelize for their brands. The enterprise must understand how their customer interactions and offerings impact those factors; what they can do to measurably improve their performance to influence them; and ultimately, how they can use that information to reduce churn and boost Customer Effort as a Powerful Brand Loyalty Lever As an overall indicator of brand loyalty, NPS reflects almost everything a company does. So where does an enterprise seeking to increase brand loyalty start? NPS is a much-used metric for measuring and tracking customer loyalty that correlates strongly with revenue growth. It has been widely adopted by financial institutions throughout the world to assess brand performance, benchmark industry standing and establish goals for future performance. NPS is based on asking customers one simple question: How likely would you be to recommend us to a friend or colleague? Top scorers (9-10) on the ten-point net promoter scale are designated as promoters. Customers who give the company a score of 7 or 8 are passives, while all others are considered detractors who are likely to impede brand growth by recommending against doing business with the company. An overall NPS score is calculated by subtracting the percentage of customers who are promoters from the percentage of detractors. Other leading measures of consumer satisfaction and loyalty, such as CSAT and ACSI, track revenue growth equally well as NPS. However, because of its simplicity and the ease with which it can be obtained from customers, it has become the standard metric that many industries use to monitor, track and benchmark performance. - Based on Customer loyalty 2.0 by Bob E. Hayes, Quirk s Marketing Research Review ( October

3 For service-intensive industries such as telecommunications and financial services, customer service is the natural place. A recent Customer Contact Council study 1 surveyed almost 18,000 customers across four continents to measure the impact on loyalty of a variety of customer service variables for over a dozen industries. In the 2008 survey, loyalty was measured by customer willingness to repurchase products or services, increase purchase quantities, and recommend the product or service to friends in effect, the net promoter score. The actions that were tested for their ability to drive loyalty were grouped into three primary categories: those that improved experiences with representatives; actions that exceeded service norms and customer expectations ( delighted customers); and actions that reduced the effort customers had to expend to accomplish tasks. The results were clear: providing customer service that delighted customers yielded only marginal increases in loyalty over service that merely met expectations. However, reducing customer effort had a major impact on loyalty. Eighty-eight percent of customers who reported low effort indicated that they would increase their spending and 94% said they would repurchase a product or service. Only 4% of those who reported high effort who said they would increase spending or repurchase. Only 1% of customers who expended low effort to accomplish tasks indicated that they had participated in negative word-of-mouth, while 81% of those who had to put a great deal of effort into accomplishing a task spoke badly about the product or company. Clearly, reducing customer effort is an important way to boost NPS as well as business results. Reducing Customer Effort Increases Loyalty Low Effort High Effort % Customers Who Repurchase % Customers Who Increase Spend % Who Spread Negative World-of-Mounth 1-Shifting the Loyalty Curve: Mitigating Disloyalty by Reducing Customer Effort. Customer Contact Council,

4 Assessing Digital Experience Impact on Brand Promoter Status Reducing customer effort can have a powerful impact on the brand loyalty of your customers and on your Net Promoter Score. But what has been gained by shifting the challenge from understanding the levers that drive NPS to determining what influences your customers efforts? Without hard information about how much effort it takes to traverse each of your processes, and how to reduce that effort, you can only use guess at how to fix the processes to improve NPS and business performance. It takes concerted effort to identify bottlenecks and friction points that make the customer experience painful and frustrating.. Today more than ever, enterprises need evidencebased data about how customers perceive the digital experiences involved in accomplishing tasks such as subscribing to services, paying bills, changing service addresses and service inquiries. As service costs have risen, enterprises and organizations have increasingly moved to automated customer service systems. Each customer may access numerous siloed automated systems and representative-supported processes across numerous channels and digital touchpoints. While each may perform admirably, the overall experience across all touchpoints may be effortful. Enterprises must be able to identify and address extraneous efforts across the full customer journey as well as within individual processes. Kampyle empowers you to measure customer effort via the simple and easy-to-implement Customer Effort Score (CES) that serves as an index of customer experience. Based on a single question, the CES asks customers to indicate on a five-point scale the amount of effort they personally put forth to handle a task or request. Kampyle extends the value of CES with a number of features that yield actionable information for reducing customer effort. Event triggered feedback invitations. Choose key events and points in the customer journey at which to request customer feedback so you get focused information about specific processes. 4

5 Feedback categories. Allow visitors to select the category to which their effort score relates for pinpoint focus of analytic results. Open ended question. Allows users to alert you to unknown unknowns problems and issues that sour the customer experience, but which you may not be aware of. Or to describe previous efforts that preceded the most recent one. Optimizing the Digital Experience to Reduce Effort Kampyle not only helps you identify and pinpoint issues that increase efforts and diminish the user experience, it initiates automated activity designed to salvage the experience of the individual customer as well as to ensure that the issues that resulted in high customer efforts are corrected. Redirect customers to necessary information. Using Kampyle s smart engagement rules, customers can be instantly redirected to the information or process then need to accomplish a task via low-cost self-service options. Offer assistance. For high value customers or those at high risk of becoming detractors, Kampyle can offer live chats or voice conversations to quickly address ongoing issues. Address issues quickly and reliably.. Escalate issues to responsible teams in real time using Kampyle engagement rules for prompt, effective repairs. Kampyle Helps you identify issues that increase effort & diminish the user experience Initiates automated activity to salvage individual customer experiences Accelerates issues to appropriate teams for correction 5

6 Rev-1 Conclusion Recent studies indicate that today s time-pressed and technology-savvy customers are thrilled to use the self-service options that enterprises promote provided that they save the customer time and trouble. Enterprises that seek to increase customer loyalty and minimize churn while reducing service and support expense can win on all fronts, but only if they can design, implement and maintain truly low-effort service options. Objective feedback from customers helps enterprises maximize the impact of improvements by focusing on the right priorities. Kampyle empowers telecommunications companies to optimize the digital experience as well as multichannel customer journeys with flexible, accurate feedback solutions that turn valuable feedback and analysis into immediate action that drives business results. About Kampyle Kampyle customer experience management (CEM) solutions help enterprises strengthen bottom-line results by placing the customer at the very heart of all business activity. Data-driven Kampyle solutions allow stakeholders to understand their customers, engage them effectively, and act in real time to optimize customer acquisition and retention, and business performance. Kampyle has enabled over 65,000 companies in 192 countries worldwide to engage with hundreds of millions of customers in over 60 languages. Copyright Kampyle Ltd All rights reserved. This presentation is confidential and remains the property of Kampyle Feedback and Customer Engagement Solutions. Unauthorized use, copying distrbution or disclosureof the included information is strictly prohibited 6

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