Achieving Excellence in Customer Management: Understanding the Perfect Customer Experience

Transcription

1 Achieving Excellence in Customer Management: Understanding the Perfect Customer Experience Professor Moira Clark Maximising Value through Relationships

2 The 21 st Century Customer Customers are becoming:

3 Customers are becoming: Older, more demanding and confident They understand their rights 3

4 Customers are becoming: Plan less At 4pm on any given day 70% of people still don t know what they ll have for their evening meal. Sara Weller Former Deputy MD, Sainsbury

5 Customers are becoming: More in control Power shifting and fragmented

6 Customers are becoming: Experience orientated

7 The Customer Experience Model Sector Differences Supplier Condition Peer-to-Peer Value for Time * Caring Attitude * Caring Procedures, Processes * Atmosphere Value for Money Variety / Choice Emotional Access Reliability Application of Knowledge Safety Communication * Emphasis on attitude Experience Relationship * Individual Service Product Social Impact Outcomes

8 Important CE Factors in B2B and B2C B2B 1. Extent of Personal Contact 2. Flexibility 3. Implicit Understanding of Customer Needs 4. Pro-activity in Eliciting Customer s Objectives 5. Pro-activity in Checking that Everything is OK 6. Promise Fulfilment 7. Knowledge B2C 1. Helpfulness 2. Value for Time 3. Customer Recognition 4. Promise Fulfilment 5. Problem Solving 6. Personalisation 7. Competence 8. Accessibility

9 Important CE Factors in B2B 1. Extent of Personal Contact The extent to which the company deals with the customer through personal contact methods 2. Flexibility How willing and able are the company to modify their offering in response to the customer s specific needs or changing requirements? 3. Implicit Understanding of Customer Needs Does the company understand the context of the customer s order? Do they use their prior knowledge of the customer and their business to serve them better?

10 Important CE Factors in B2C 1. Helpfulness Are they really prepared to help me where nothing is too much trouble for their staff? 2. Value for Time Do they respect and make efficient use of my time by shortening queues and delivering what they provide efficiently? 3. Customer Recognition When I contact them do they recognise and acknowledge me as an individual?

11 The Perfect online customer experience: B2B Europe Europe & USA Aesthetics Community Hedonic Experience Information Relational Subject Relevance Trustworthy Usability USA Commercialisation Contemporary Customer oriented Efficient Fulfilment 11

12 B2B Theme: Community Value of networking: exchange of ideas, experiences and information rather than socialising Networking opportunities, chat function, community feel, interactive Balanced opinion, not just one person s sales pitch Its so nice to be able to post a question and get an answer someone directly involved in a situation. from Sense of community versus on my own The Henley Hair, N; Centre Rose, for S; and Customer Clark, M. Management

13 B2B Theme: Aesthetics Encourages usage but also feelings of professionalism and trust. Visual impact, colourful, image rich, good look, visually attractive, multimedia, well written, not busy, good design, rich media The look and feel of the site speaks for the company s professionalism. I like to feel the company has a strong defined personality There were links, interactives, videos, very dynamic as opposed to just text Although video content is great, too much flash gets annoying 13

14 B2B Theme: Hedonic Experience Want a pleasurable experience even in work-related situation Emotional impact, pleasure giving, stimulating, instant gratification, memorable, satisfies, fun, rewarding, enjoyable You can get information without feeling like your eyes are going to fall out! Keeps you interested and makes you want to come back 14

15 Findings: B2C Europe and USA Europe Quality of content Security Interactive Europe & USA Emotionally Engaging Personal Information Community Usability Aesthetics Trustworthy USA Commercial Customer Oriented Fulfilment 15

16 B2C Themes: Usability High level of usability is important ie how easy or difficult the site is to access, navigate and general use. Ease-of-use, ease-of-navigation, efficient, fast, intuitive, easy-to-search, quick-to-load, userfriendly, easy log-on, helpful. The 3clicks rule I m impatient, I need to be quick I do not like to spend too much time to figure things out. It should be easy to figure out The Henley Hair, N; Centre Rose, for S; and Customer Clark, M. Management

17 B2C Theme: Community Networking with like-minded people, a social activity Expectations driven by Web 2.0 social networking. Friendly, network, communicate with others, interactive, feedback from others, participate, message boards, many to many, connectivity Connect people through similar interests or lead to new things I am interested in connecting with people and being able to talk socially. The Henley Hair, N; Centre Rose, for S; and Customer Clark, M. Management

18 The Perfect Customer Experience The Perfect Search Experience The Perfect Purchasing Experience The Perfect Ownership/Consumption Experience

19 The 21 st Century Customer

20 Selling by persuasion Marketer Customers Advertising & promotion 20

21 Selling by bombardment Direct mail Marketer Customers Advertising & promotion Search engine marketing Agent sales tools 21

22 Self-defense Direct mail Marketer Customers Advertising & promotion Search engine marketing Agent sales tools 22

23 Service & operations The customer fights back Web Search Direct mail Marketer Customers Advertising & promotion Search engine marketing Agent sales tools Word-of-Mouth Social networks 23

24 Social networking focuses on building online communities of people who share interests and/or activities, or who are interested in exploring the interests and activities of others. Most social network services are web based and provide a variety of ways for users to interact, such as and instant messaging services.

25 New Worlds SecondLife MySpace facebook Localized wikis Wikipedia Twitter Yammer.mobi Internet TV Corporate blogs Sponsorship Crowd sourcing Careervault Linkedin The electronic community 25

26 SM Tool Portfolios MOB SNT BLG all small medium large 000 IMS 000 MBL WCF WIK VWL VOD SNT - social networks BLG - blogs MBL - micro-blogs VOD - video on demand VWL - virtual worlds SHW - shared workspace WIK - wikis WCF - web conferencing IMS - instant messaging MOB - mobile SHW

27 Externally-focused SM initiatives affect all areas of the value chain but maturity varies Initiative Type Description/Examples Audiences PR & Marketing Enhance promotion/launch campaigns, broadcast/converse with stakeholder audiences, demonstrate thought leadership, co-opt influencers, collect market intelligence Current & potential customers, media, capital markets, regulatory agencies Maturity: Infancy Adolescence Adult

28 Externally-focused SM initiatives affect all areas of the value chain but maturity varies Initiative Type Description/Examples Audiences PR & Marketing Sales Customer Relationship Management Service Delivery Enhance promotion/launch campaigns, broadcast/converse with stakeholder audiences, demonstrate thought leadership, co-opt influencers, collect market intelligence Generate leads, discover new opportunities, drive web traffic Listen to customer concerns, support/solve problems, educate/spread best practices, transfer support tasks to the community Enhance collaboration on projects and service engagements, co-create/share knowledge, collaborate on documentation Current & potential customers, media, capital markets, regulatory agencies Current & potential customers Current customers (B2C & B2B) Customers (B2B), business partners Maturity: Infancy Adolescence Adult

29 Externally-focused SM initiatives affect all areas of the value chain but maturity varies Initiative Type Description/Examples Audiences Supplier Relationship Management Product Development & Innovation Human Resource Management Other Add social layer to supply chain management, build purchasing coalitions, hire virtual contractors Solicit ideas/opinions/feedback to incorporate into existing/new products/services Promote company among potential employees, identify/collect info on job candidates, train employees Urgent messaging, event management, charity, teaching (in an educational setting), and e-democracy Suppliers, business partners (peers) Customers, experts, the crowd, business partners Current & potential employees Various Maturity: Infancy Adolescence Adult

30 Externally-focused SM initiatives affect all areas of the value chain but maturity varies Initiative Type Description/Examples Audiences Supplier Relationship Management Product Development & Innovation Human Resource Management Other Add social layer to supply chain management, build purchasing coalitions, hire virtual contractors Solicit ideas/opinions/feedback to incorporate into existing/new products/services Promote company among potential employees, identify/collect info on job candidates, train employees Urgent messaging, event management, charity, teaching (in an educational setting), and e-democracy Suppliers, business partners (peers) Customers, experts, the crowd, business partners Current & potential employees Various Maturity: Infancy Adolescence Adult

31 SM Initiative Portfolios PRM 001 all OTH SAL small medium large 000 PDI 000 SDV CRM HRM PRM - PR & marketing SAL - sales SDV - service delivery HRM - human resource management SRM - supplier relationship management CRM - customer relationship management PDI - product development & innovation OTH - other SRM

32 Building relationships Building relationships Community engagement v single households

33 Collaboration and innovation Building relationships Community engagement Networked business models Crowd sourcing / Co-creation

34 Innovation Networks You can t know it all or have all the best ideas Ford spent $8bn on R&D in 2005 and lost $17bn in 2006 Learn to connect - P&G did For every P&G researcher 200 more exist outside. Built an external development network of 3m Launch time halved and innovation rate up 75%

35 Platform Examples: Crowdsourcing Crowdsourcing is the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call. Jeff Howe (Wired Magazine) 35

36 Companies are no longer in complete control of their brand, products, data etc. Challenges Maintaining privacy, security, confidentiality and ownership Managing risk aversion which discourages SM use Determining how much time, money, and effort should be spent The risks are the ants have megaphones now. So, one little person spitting in the basement bunker can cause you a lot of problems Success factors Generated bottom-up Non risk averse culture Allow negative comments Turn negative comments into positive experiences The biggest risk is that you can t control the social media. You are only part of it, you don t own it

37 HOW CAN WE DELIVER THE PERFECT CUSTOMER EXPERIENCE? 37

38 Look after your people 38

39 Customer Management The quality and history of your relationships is perhaps the only source of competitive advantage that ultimately cannot be copied. 39

40 happier customers deliver better service happier cats 40

41 Turn-offs From Purchasing Q In the last three months have you felt put off from purchasing a company s product or service as a result of any of these How staff treat you 16% Quality of its products/services Price of its product/services 13% 13% How staff handled enquiry/complaint 11% Staff enthusiasm for prods/services After sales service Staff knowledge of co's prods/servs How staff represented their company Its advertising Range of products/services offered What you know about brand/reputation Its reputation as an employer Policies on community/environ Type of promotional/special offers 7% 7% 6% 5% 4% 4% 3% 3% 2% 2% People Issues 41

42 A paradigm shift CEO Front line staff Customers 42

43 A paradigm shift Customers CEO Front line staff Front line staff CEO Customers What can I do to help you do your job better 43

44 Summary Understand your 21 st Century customer. Customer insight is a great source of competitive advantage Provide a perfect customer experience it will make you stand out from the crowd Embrace social media it is not going to go away! Look after your people they are your only true source of competitive advantage 44

45 Q&A

46 Main Sponsor Thank You Maximising Value through Relationships 46