Three Paths for Moving Your Customer Experience Program to the Next Level
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1 Three Paths for Moving Your Customer Experience Program to the Next Level JUNE 19/ CXPA Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 1
2 THE SERVICE PROFIT CHAIN INSTITUTE CAPABILITIES: Building Leadership Capability Results-Driven Consulting Innovative Learning Solutions CLIENTS Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 2
3 HERE ARE THREE PATHS TO CONSIDER Culture Innovation Process JUNE 19/ CXPA
4 MOVING YOUR CUSTOMER EXPERIENCE TO THE NEXT LEVEL PROCESS JUNE 19/ CXPA Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 4
5 WHAT DO WE MEAN BY PROCESS? Service Blueprinting Service Delivery System Lean Six Sigma Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 5
6 CUSTOMER EXPERIENCE MAPS ARE GREAT, BUT THEY ARE OFTEN ONLY HALF THE STORY Service Blueprinting Service Blueprinting is a methodology that defines what customers should experience at key Moments of Truth. Allows firms to visualize their service processes, points of customer contact, and the physical evidence associated with their services from their customers' perspective (functional, human and sensory interactions). Produces a Playbook that includes: Service Standard to be achieved (SMAC), including Service Recovery steps Procedural Steps Must See Behaviors Support Materials or Tools Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 6
7 SIMPLIFIED HOTEL EXAMPLE Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 7
8 SERVICE DELIVERY SYSTEM: POWER!SERVICE Before Operations Strategic Value Vision Behavior Standards Operational Standards Experience Sequencing Labor Strategies Standards Forecasting Scheduling During Operations Triggers /Alerts Readiness Check for Opening Real Time Management People Standards Capacity: Supply & Demand Lines and Wait Times After Operations Measurement Reinforcement Engagement Recognition "Scoreboards" Service Recovery Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 8
9 LEAN SIX SIGMA F.I.R.S.T. Method for Innovation and Continuous Improvement FOCUS on key problem areas and opportunities for improvement and innovation IMPROVE the process by eliminating defects and reducing delays and rework REVIEW the results to ensure that solutions improve the process SUSTAIN the improvements by stabilizing and monitoring key measures TRANSFER the results to other teams by documenting and registering the solution Training Includes: Idea Workout F.I.R.S.T. Team Facilitator Team Sponsor Team Leader Team Member QuickStart Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 9
10 MOVING YOUR CUSTOMER EXPERIENCE TO THE NEXT LEVEL CULTURE JUNE 19/ CXPA Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 10
11 WHAT IS CULTURE? Our culture and the awesome people we have are the things I am most proud of I would say it s impossible for our competitors to copy. They d have to start over and build it from scratch. Lanham Napier Rackspace CEO Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 11
12 CULTURE CHANGE AT AT&T: LEADING WITH DISTINCTION 3 DRVING LOYALTY SPCI designed and delivered an innovative two-day program to 6,800 AT&T General Managers around the world. Highlights included: CUSTOMER EXPERIENCE CITY: Managers completed three rounds of role plays across 22 businesses to experience first hand what it means to truly delight customers and introduce NPS as a way to measure the customer experience. WHAT S AT STAKE: Customer Lifetime Value calculators allowed participants to estimate the economic impact from improving customer and employee loyalty. Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 12
13 CULTURE CHANGE AT AT&T: LEADING WITH DISTINCTION 3 DRVING LOYALTY RACKSPACE VIDEO CASE STUDY AND TOOLS FOR INSPIRING OWNERSHIP: We conducted breakout sessions to study the practices of a company that models a high ownership culture and learn about a practical set of tools to apply back on the job. INNOVATING THE CUSTOMER EXPERIENCE: Managers worked in teams to apply 6 principles of customer experience design to improve the AT&T customer experience. Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 13
14 FIVE THINGS THAT DRIVE CULTURE 1. Clear Vision, Mission and Values (Rackpace) 2. Specific Cycle of Service (Ritz-Carlton) 3. A Few Key Measures (Build-A-Bear) 4. Cycle of Capability (Fairmont, Baptist) 5. Behavioral Standards (Irving Oil) High loyalty, productivity and willingness to suggest new products Referrals of other highpotential employees High satisfaction, engagement, commitment, ownership Careful selection, selfselection for attitude Clear orientation to desired values, behaviors SELECT: First Who, Then What The Cycle of Capability LEAD: Level Five Leadership Reward and recognition for delivering value Provision of latitude within limits to deliver value to targeted customers TRAIN: Turning moments into memories for our guests RECOGNIZE: Being Greatful Training for skills, broader personal development Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 14
15 SERVICE BEHAVIORS THAT DIFFERENTIATE THE EXPERIENCE Exceeds: Demonstrating a behavior at this level exceeds customers expectation, differentiates us from the competition and delivers on our Brand Promise. Meets: Demonstrating a behavior at this level of performance meets the customer s expectation but does not differentiate the experience or deliver on our Brand Promise in a way that the customer would find memorable. Does Not Meet: Demonstrating a behavior at this level does not meet the customer expectation, provides an uncompetitive experience and may even erode the Brand Promise. 3 C s Coaching Model
16 IRVING OIL: BLUE CANOE CONVENIENCE STORES Identified Exceeds versus Meets behaviors from top performers We developed specific behaviors to support a more consistent delivery of TREAT: Their 5-step process of customer service Delivered a one-day coaching program for store managers followed by an e- learning program to employees to learn and practice the new coaching skills and front line behaviors Top Box Satisfaction Score Reached: 84% Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 16
17 SPCI CULTURE CHANGING SYSTEM Strategic Value Vision Service Mission Service Principles Service Delivery System Take 3 Cycle of Service: Steps and Behaviors To Delight Customers L.E.A.R.N. Service Recovery 3 C s Coaching Model Conducting Power Huddles Measuring and Improving Performance Recognizing and Rewarding Success Capturing and Sharing Best Practices Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 17
18 MOVING YOU CUSTOMER EXPERIENCE TO THE NEXT LEVEL INNOVATION JUNE 19/ CXPA Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 18
19 OUR DEFINITION OF INNOVATION Creation of substantial or radical new value for customers and the firm by dramatically changing one or more dimensions of the existing business system, or by creating entirely new business systems Dr. Robert Wolcott Kellogg School of Management Copyright 2012 Robert C. Wolcott All Rights Reserved 19
20 THE INNOVATION RADAR 2.0 Copyright 2012 Robert C. Wolcott All Rights Reserved 20
21 THE INNOVATION RADAR 2.0 FOUR GENERIC STRATEGIES Partnership Innovation Where Relational excellence Value amplification Offering Innovation What Product leadership Functional value Operations Innovation How Operational excellence Economic value Customer Innovation Who Customer intimacy Emotional value Copyright 2012 Robert C. Wolcott All Rights Reserved 21
22 FOOD PRODUCTS FIRMS RADAR PROFILES ABC Offerings 7 XYZ Brand Platform 6 5 Networking 4 Solutions Offerings Brand 6 Platform 5 Presence 1 Customers Networking 4 3 Solutions 2 Supply Chain Customer Experience 1 Presence 0 Customers Organization Value Capture Process Supply Chain Customer Experience Organization Value Capture Process Copyright 2012 Robert C. Wolcott All Rights Reserved 22
23 INNOVATION STRATEGY GUIDELINES 1. Do NOT try to do everything. Select 2 5 dimensions and focus on them. 2. Look for dimensions of differentiation and parity. Don t compete in the same way as everyone else. 3. Coordinate all internal functions and external partners to innovate and enhance performance around these differentiating dimensions of your business system. Copyright 2012 Robert C. Wolcott All Rights Reserved 23
24 THE INNOVATION RADAR 2.0 Visualize: The leadership team is able to understand business innovation more holistically and systemically. Brainstorm: Explore dimensions of innovation in a systematic manner. Diagnose: Identify the gaps in innovation performance of firms/business systems as well as the level of agreement that exists between managers. Benchmark: Benchmark the innovative capabilities of firms within and across industries. Design New Ventures: Design complete business systems. Copyright 2012 Robert C. Wolcott All Rights Reserved 24
25 SUMMARY Process: Focus here if: You still have low hanging fruit to capture in terms of big rocks in the experience You need to achieve more consistency in exceeding expectations at key Moments of Truth Culture: Focus here if: Processes are efficient, effective and adaptable Your goal is to move from Good Service to Branded Experience Innovation: Focus here if: You want to remain competitive You need to redefine the customer and employee experience Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 25
26 NEXT STEPS? SERVICEPROFITCHAIN.COM Go to Tools and register. Complete any one of six 10 Question Self-Assessments Organization Assessments: Customer Centricity Organization Self Assessment: 7 Sections, 39 questions associated with customer centric cultures POWER!SERVICE Readiness Self Assessment: 10 Sections, 37 questions based on the practices of Service Profit Chain Leaders. Net Promoter Score Best Practices Maturity Self Assessment: 6 Sections, 46 questions based on analysis of successful VOC/NPS implementations. Innovation Organization Readiness Self Assessment: 9 Sections, 48 questions based on research into innovation leading firms. Until August 30, 2012, CXPA Members receive 40% off the complete report Copyright 2012 The Service Profit Chain Institute, All Rights Reserved 26
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