IMPROVING CUSTOMER EXPERIENCE MAY 2012

Transcription

1 IMPROVING CUSTOMER EXPERIENCE MAY 2012

2 INTRODUCTION. IMPROVING CUSTOMER EXPERIENCE: EVENT REPORT As part of our ongoing commitment to keep clients and candidates up to date with the latest market trends, Morgan McKinley hosted our latest project, change and strategy networking breakfast in May The event was held in the Establishment Ballroom, Sydney on the topical theme of improving customer experience and was attended by 85 senior project and strategy professionals in the Sydney market. Guest speakers were Richard Hatherall from Bain & Company and Katrina Barry from BT Financial Group. Richard is a partner in Bain & Company s Sydney office and a leader in Bain s Global Customer Strategy and Marketing Practice. He has over 15 years consulting experience across the UK, North America and Asia-Pacific and is an expert in customer loyalty and customer experience transformation. Katrina currently leads the Customer Experience and Insights team at BT Financial Group which is responsible for translating customer insights into action, to drive customer advocacy and customer centricity.

3 MARKET TREND AND INSIGHT Over recent years we have seen an increased focus on the customer experience across most industry sectors and this has only become more pronounced recent times. Many of our clients are investing in specialist consulting advice in this area which in turn is driving large scale business transformation initiatives. It has been an interesting shift to observe with strategies being set with the customer in mind and specific projects being created to deliver customer focused benefits these often look at all areas of the business from front end products and services right through to the back office processing to deliver added customer benefits. Customer insights teams are certainly a growth area and have moved away from the traditional pure customer service focus to a more strategic approach.

4 THE NET PROMOTER SYSTEM Richard Hatherall Bain & Co. Why understanding customer loyalty is a key strategic priority Bain & Co s customer strategy team focuses on helping their clients to deliver a better experience for customers. The company has studied loyalty leaders for over twenty years and found that they perform differentially better than their competitors for these reasons: Loyalty leaders grow faster, because their customers spend more, stay longer and generate more referrals They have lower costs, because they spend less on acquiring customers, and less on resolving customer complaints and other issues Richard outlined that many companies use accounting/profit data or customer value metrics as tools for managing growth and loyalty. However, meaningful measurement that focuses on customers views is as important, but more difficult to measure. Richard Hatherall from Bain & Company at the event.

5 THE NET PROMOTER SYSTEM (cont d) Bain & Co s Net Promoter System was created to overcome this problem based on finding that companies which get real results demonstrated three key techniques: 1. Reliable, trusted metrics, with a deep understanding of what it takes to create customer advocates, and the value that is generated as a result 2. Fast-cycle closed-loop feedback: this is a powerful catalyst which allows learning from customers to be put into action 3. Unwavering strategic priority: building the customer into investment decisions and ensuring that values and principles must consistently focus on the customer. Leadership must walk the talk as well as taking the talk. Key elements to implementing the NPS process: Starting on the loyalty process means making sure their customers are at least reasonably happy, or satisfied Companies then need to differentiate to create true advocates: Either by providing ordinary services delivered exceptionally, or by providing exceptional services delivered well Harnessing the power of employees is important: if products and services are great, people will want to work in their company Then, if employees enjoy the work they do; serving customers, it makes them happy, which in turn encourages more people to want to come and work for the company. This flywheel makes for profitable organic growth. NPS is a simple measure of customer advocacy, which correlates to business growth

6 THE NET PROMOTER SYSTEM (cont d) Failing to understand the customer experience Richard also highlighted the typical reasons for failure which usually relate to management s lack of commitment; unclear communication about the change and unclear metrics. Change behaviours are important and consequently so are incentives. Key Takeaway Don t underestimate the change required in the journey it takes time, investment, planning, change management and commitment over multiple years.

7 THE CORPORATE CASE STUDY DRIVING CUSTOMER EXPERIENCE, STRATEGY AND CULTURE Katrina Barry BT Financial Group The role of the customer experience team in a corporate organisation BT Financial Group has an entire team focused on the need to understand customer experience and insight. They know it s possible to have a great product but for the experience to be less good like going to a Michelin starred restaurant and eating an excellent meal with disappointing service from the staff. Customer service = the basics of keeping people happy Customer experience = the whole process It s key that understanding customers is part of a company s strategy if not the strategy is likely to be flawed. BT Financial Group hires strategic, commercial people into this team to ensure: The company listens and learns from its customers with rigour in order to create a compelling and positive customer experience Insights and corresponding actions will not only make customers happy, but also drive the business strategy and bottom line results Katrina Barry from BT Financial Group

8 DRIVING CUSTOMER EXPERIENCE, STRATEGY AND CULTURE (cont d) Understanding the customer experience in practice BT Financial Group has two core customer experience programmes: 1. Insights Programme: focuses on developing genuine customer insights from across the business and wider industry to drive actions and improve customer experience. 2. Customer Centricity Programme: A series of integrated initiatives to ensure staff continue to experience and understand he customer and drive a customer centric culture The Customer Centricity Programme has four core initiatives to heighten staff awareness of customers: 1. Customer insights forum every quarter showcases real customer stories e.g. phone calls, videos, letters or clients come in and tell their story 2. In their shoes senior managers spend time as customers, understanding both the journey they go through, but also the process we ask our staff to facilitate to deliver that journey 3. Employee jams group problem solving involving employees from across the value chain 4. Customer relations experience involving staff first hand in front line customer services which helps them work out first hand what the keys to success are Key takeaway: Insights and feedback is worth nothing unless time is spent on engaging employees in this: keeping it both real and relevant to them.

9 CONCLUSION We hope you find this information useful. For further information on this topic, please do not hesitate to contact us. To discuss current hiring requirements or job opportunities in project management or other functions across financial services, finance and accounting, please contact Sara Coakley at Morgan McKinley Sydney. About Morgan McKinley Morgan McKinley is a global professional recruitment consultancy connecting specialist talent with leading employers across multiple industries and disciplines. With 19 offices across the UK, Europe, the Middle East and Asia-Pacific, its professional recruitment expertise spans across banking & financial services, commerce & industry and professional services. Morgan McKinley is a preferred supplier to many of the major employers in its specialist sectors, as well as thousands of smaller local employers. Morgan McKinley Sydney s Strategy, Project & Change Management Team Morgan McKinley is a fully owned subsidiary of Premier Group which has recently named in the 50 Best Small and Medium Workplaces in Europe by the Great Places to Work Institute.

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