Outside In The Power of Putting Customers at the Center of Your Business. Harley Manning VP & Research Director, Customer Experience

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1 Outside In The Power of Putting Customers at the Center of Your Business Harley Manning VP & Research Director, Customer Experience

2 Great customer experiences create and sustain customer loyalty 2015 Forrester Research, Inc. Reproduction Prohibited 2

3 2014 Forrester Research, Inc. Reproduction Prohibited 3

4 Customers who had a good experience invested 4.5x more money with Fidelity Their investments added up to billions of incremental dollars per year 2012 Forrester Research, Inc. Reproduction Prohibited

5 The Customer Experience Index How customers perceive their interactions with a company 2014 and beyond How well a company s customer experience helps it create and sustain customer loyalty 2014 Forrester Research, Inc. Reproduction Prohibited 5

6 What happens when you factor customer loyalty into customer experience rankings? 2015 Forrester Research, Inc. Reproduction Prohibited 6

7 Customer Experience Index 2014 Customer Experience Index Forrester Research, Inc. Reproduction Prohibited 7

8 2015 Forrester Research, Inc. Reproduction Prohibited 8

9 USAA #1 credit card provider #1 bank #1 auto & home insurer #1 investment firm 2015 Forrester Research, Inc. Reproduction Prohibited 9

10 What makes a customer experience great? 2014 Forrester Research, Inc. Reproduction Prohibited 10

11 Three core dimensions of CX quality Effectiveness Ease Emotion Customers get value from the experience. Customers get that value without difficulty. Customers feel good about the experience Forrester Research, Inc. Reproduction Prohibited 11

12 Popular Theory Emotion Ease Effectiveness 2014 Forrester Research, Inc. Reproduction Prohibited 12

13 Emotion Effectiveness Effectiveness Ease Emotion Ease 2014 Forrester Research, Inc. Reproduction Prohibited 13

14 Auto and Home Insurance providers Banks Credit Card providers Health Insurance providers Investment Firms 2014 Forrester Research, Inc. Reproduction Prohibited 14

15 People will forget what you said. They ll forget what you did. But they will never forget how you made them feel Forrester Research, Inc. Reproduction Prohibited 15

16 Universal Drivers 2014 Forrester Research, Inc. Reproduction Prohibited 16

17 1. Make customers feel valued 2015 Forrester Research, Inc. Reproduction Prohibited 17

18 Recognition

19 Net Income American Cancer Society CX model Point of diminishing returns Minimum CX Quality Experience Quality Fundraising Events 2014 Forrester Research, Inc. Reproduction Prohibited 19

20 2. Resolve customer problems or issues quickly 2015 Forrester Research, Inc. Reproduction Prohibited 20

21

22 Flight cancellation notice Next available flights Flight details New flight booking Source: Delta Air Lines iphone app 2013 Forrester Research, Inc. Reproduction Prohibited 22

23 3. Talk to customers in plain language 2015 Forrester Research, Inc. Reproduction Prohibited 23

24 2014 Forrester Research, Inc. Reproduction Prohibited 24

25 *Rate example for ages Coverage subject to verification of identity and receipt of payment as required by law but upon issue, is considered effective as of time of application. Advertising Disclosures 2015 Forrester Research, Inc. Reproduction Prohibited 25

26 2015 Forrester Research, Inc. Reproduction Prohibited 26

27 Universal drivers of CX and loyalty 1. Make customers feel valued 2. Resolve customer problems or issues quickly 3. Talk to customers in plain language 2014 Forrester Research, Inc. Reproduction Prohibited 27

28 Prioritize your CX to-do list 2014 Forrester Research, Inc. Reproduction Prohibited 28

29 Current performance Sample RoCXi Prioritization Matrix: Citibank Monitor/Maintain Keep personal and financial information secure Make things easy to find on the website Enhance/Promote Talk to customers in plain language Resolve problems and issues quickly Make customers feel valued Improve ASAP Take time to listen to and understand customer needs Relative importance to customer loyalty 2014 Forrester Research, Inc. Reproduction Prohibited

30 Current performance Sample RoCXi Prioritization Matrix: Citibank Monitor/Maintain Keep personal and financial information secure Make things easy to find on the website Enhance/Promote Talk to customers in plain language Resolve problems and issues quickly Make customers feel valued Improve Later Make pricing, rates, and fees transparent Improve ASAP Take time to listen to and understand customer needs Relative importance to customer loyalty 2014 Forrester Research, Inc. Reproduction Prohibited

31 How can you get on the path to sustainable customer experience success?

32 The 6 Disciplines of CX Strategy Customer Understanding Design Measurement Governance Culture

33 The 6 Disciplines of CX Strategy Customer Understanding Design Measurement Governance Culture

34 The 6 Disciplines of CX Strategy

35 2012 Forrester Research, Inc. Reproduction Prohibited

36 2012 Forrester Research, Inc. Reproduction Prohibited

37 Align your business objectives with customer objectives 2012 Forrester Research, Inc. Reproduction Prohibited

38 Opportunities for differentiation Raise the coverage amount for jewelry collections to $50,000 Create a claims toolkit to walk members through the process step by step Reject new business opportunities that don t pass muster with their Subscribers Advisory Committee 2012 Forrester Research, Inc. Reproduction Prohibited

39 2012 Forrester Research, Inc. Reproduction Prohibited

40 Gross written premium 2012 Forrester Research, Inc. Reproduction Prohibited 40

41 The 6 Disciplines of CX Customer Understanding

42 2012 Forrester Research, Inc. Reproduction Prohibited

43 2012 Forrester Research, Inc. Reproduction Prohibited

44 2012 Forrester Research, Inc. Reproduction Prohibited

45 2012 Forrester Research, Inc. Reproduction Prohibited

46 You were compassionate and had obvious care and concern for my welfare Forrester Research, Inc. Reproduction Prohibited

47 The 6 Disciplines of CX Design

48 Repeatable problem-solving process that incorporates the needs of customers, employees, and other business stakeholders 48

49

50 2012 Forrester Research, Inc. Reproduction Prohibited

51 2012 Forrester Research, Inc. Reproduction Prohibited

52 2012 Forrester Research, Inc. Reproduction Prohibited

53 The 6 Disciplines of CX Strategy Customer Understanding Design Measurement Governance Culture

54 The 6 Disciplines of CX Strategy Customer Understanding Design Measurement Governance Culture

55 The 6 Disciplines of CX Measurement

56 2012 Forrester Research, Inc. Reproduction Prohibited

57 Perception Descriptive Outcome

58 Perception What the customers thought happened and how they felt about it Satisfaction with how easy the bank is to do business with Ease of navigating online banking tools Satisfaction with financial advisors

59 Descriptive What happened in the real world Page views Average wait time in a branch

60 Outcome What business impact we can expect Net Promoter Score % of HH with transaction accounts, investments, and borrowing products

61 Perception Descriptive Outcome

62 The 6 Disciplines of CX Governance

63 2012 Forrester Research, Inc. Reproduction Prohibited

64 Barclaycard assigns accountability for 9 key processes in the customer journey

65 Barclaycard assigns accountability for 9 key processes in the customer journey Acquiring new accounts Providing customer service Collections

66 One senior executive owns the new accounts process Ensures that every aspect of the customer experience for new accounts meets CX standards Intervenes in disputes between competing departments Has authority to stop any initiative that will create a problem for customers Paul Wilmore Senior Director of Consumer Markets (Barclaycard)

67 The 6 Disciplines of CX Culture

68 Culture eats strategy for breakfast - Peter Drucker

69

70 2013 Forrester Research, Inc. Reproduction Prohibited

71 2013 Forrester Research, Inc. Reproduction Prohibited

72

73 2013 Forrester Research, Inc. Reproduction Prohibited

74 2013 Forrester Research, Inc. Reproduction Prohibited

75 The 6 Disciplines of CX Strategy Customer Understanding Design Measurement Governance Culture

76 Recommendations Pick your customer experience True North 2012 Forrester Research, Inc. Reproduction Prohibited

77 Every Transformation Requires a Strong Strategic Foundation A Cultural Transformation to Become People Powered, Customer Driven

78 Recommendations Pick your customer experience True North Start your transformation journey 2012 Forrester Research, Inc. Reproduction Prohibited

79 Safelite s People Powered, Customer Driven Culture Inspires Enhanced Policyholder Experience Omni-channel Online Scheduling Options VIN Upload Tech Profile Confirmation On-My-Way Text Alert Mobile-Friendly NPS Survey and the journey continues!

80 Recommendations Pick your customer experience True North Start your transformation journey Tie your customer experience efforts to businessrelevant results 2012 Forrester Research, Inc. Reproduction Prohibited

81 Results: Happy People, Happy Customers 2014 Employee Engagement Score 79% Best in class = 75% 2015 Net Promoter Score 87% 14 percentage point growth since 2007

82 Results: Business Performance Sales Profit 142% Sales growth 200% Profit growth

83 Thank you Harley Manning Vice President & Research Director

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