BENCHMARK STUDY PRESENTATION CUSTOMER EXPERIENCE March 2015 Ottawa
Who is Services Triad 2 Founded in Montreal in 1996 Works with CRC (Contact Relation Centres) in all fields (private and public) 3 core business areas o o o Operational audits Benchmarking Knowledge sharing
Agenda 3 Introduction to CX and videos Study objectives and methodology Study highlights and additional information Avenues for thoughts and reference articles
. Positive Customer Experience Brings Loyalty 4 Where does your organization stands?
Customer Experience: Definition 5 The customer experience refers to the emotions and feelings experienced by a customer before, during, and after interacting/acquiring a product or a service. The customer experience is therefore subject to diverse elements (advertising tone, ambiance at point of sale, vendor relationship, actual experience using the product/service, customer support, etc.) The customer experience is obviously considered to have an impact on customer satisfaction and loyalty.
Customer Experience and Perception 6 Customer experience is the perception that customers have of their interactions with your organization. Perception is critical because the customer experience is in the eyes of beholder. Customer experience Perception that customers have of their interactions with your organization
The 3 Phases Leading to CX 7 1. Perception 2. Interaction 3. Communication It s a balance between the emotional and rational side of you
Rational vs. Emotional 8 Bain & Company study: «What it takes to win with customer experience»
Customer Experience Satellites 9 The customer experience circumscribes all of the interactions with your organization and includes everything from TV ADS to monthly billing statements to any type of contact. Customer Interactions Customer Needs Strategic Planning Economic Model Customer Experience Definition and Process Business Alignment Resources and Effort
Interactions 10 Success Efforts Whether or not customers are able to achieve what it is they want to achieve. How easy or hard it is for customers to do what they want to do. Emotions How their interactions make them feel.
Your Image 11 The customer experience delivered by your organization reflects your culture and operating processes. If you do not make changes internally, then any externally focused improvements will be short-lived. If you do not give your staff adequate training, your strategy will be ineffective.
Engaged Employees 12 Customer experience centric Executive leadership of the brand Trained and engaged employees Ease of interactions Satisfied customer Brand promoter
Transaction Cycle and Customer Experience 13.. Preparation Acquisition /Transaction After-sale Support Needs and wants Sale outlet transaction Follow-up and support Exposure to information Electronic transaction Guarantees and claims Referral activites Phone transaction Satisfaction awareness Tests and trials (virtual and real) Usage experience Loyalty process Building trust Providing performance Improving the experience
Benchmark Study Objective and Themes 14 Context This is the fourth study carried out in 2014. This is our second study about the customer experience (first one in 2010). The study includes observations and avenues for improving practices and analyses, based on the collected data and emerging market trends. Ranking of CRC respondents. Themes 1. CX Principles and integration 2. Application of the customer experience 3. Tools and optimization 4. Indicators 5. Available options 6. Objectives and ROI
Activity Sectors of the Respondents 15 Activity Sectors # of Respondents Insurance (Damages/Life) 9 Telecommunications 3 Distribution (1) and Consumer Goods (3) 4 Banking Services (4) and Financial Services (4) 8 Services (5) and Government Services (4) 9 Total 33 Caution: Due to the low representation in the Distribution sector, its results were combined with those of the Consumer Goods sector. The Services sector has been merged with the Government Services sector. Finally, Banking Services and Financial Services have also been combined.
Methodology 16 33 participants with Customer Relation Centres (CRCs), mostly located in Quebec, were surveyed. A 24-question survey was used for data collection. The collected data was current as of December 2014. The study represents comparative data, analysis, and comments in a 49-page document.
Level of Agent Solicitation 17 Indicate the level of demand made on your agents by customers during their journey. Our agents are highly solicited Our agents are moderately solicited Our agents are infrequently solicited 52% 58% 30% 33% 36% 33% 33% 15% 9% Pre-purchase questions and advice During the purchase process After-sales and customer support
Major Role of the CRC 18 What major role does your CRC play in the corporate strategic planning of the customer experience? Operational role 64% Influence and validation 64% Strategy development 52% Results measurement 48% Implementation only 36% No specific role 0%
An Evolving Operational Role 19 Dr Nicola J. Millard, BT/Avaya White Paper, The Autonomous Customer, 2013.
The Customer Promise 20 Is your customer promise clearly stated and posted on your website (invoice, or mobile app, etc.)? Yes Under way No We do not have a "customer promise" Other 9% 21% 40% 24% 6%
Customer Promise Breaking Points Bain & Company study: What it takes to win with customer experience 21
Points for Discussion 22 Is the customer experience a fundamental value fostered within your organization? What are your CX values? What were the first changes implemented by the CRC to align with customer experience values? How many clicks are needed to access your CX promise your website?
A Seamless Customer Experience 23 Is your organization able to offer a seamless customer experience regardless of the point of contact? Yes No Currently implementing practice Does not apply to our organization 3% 33% 37% 27%
Omni-channel Customer Experience 24 The Omni-channel is part of the equation in offering a seamless customer experience
Omni-channel Customer Experience 25 Engaging the customer and delivering consistency throughout the full interaction experience regardless of the medium Very few CRC have fully embraced the concept of an omni- channel customer Customer journey must be understood throughout all the available channels and touch points such as digital, mobile and interactive How many times has your agents experimented with a lack of historical information when engaging with a customer using several channels?
The Customer Experience Principles 26 Comparison of the answers to the question about CX guiding principles by employees and customers in 2010 and 2014: Are your CRC employees and customers aware of the guiding principles underlying the customer experience? 2014 Employees 2010 Employees Yes 87% 67% Under way 9% 15% No 3% 12% Other 1% 6% 2014 Customers 2010 Customers Yes 48% 12% Under way 18% 15% No 33% 46% Other 1% 27%
Groups of Customers 27 The customer experience applies to which groups of customers? Our internal customers (other departments) 42% Our business partners 52% Our employees 58% Our external customers 100%
Guiding Principles 28 Are the guiding principles underlying your customer experience easily applicable by CRC agents or team leaders when dealing with clients? 15% 6% 18% Perfectly, since all of our operational processes are adapted to our CX guiding principles Quite well, but there remains some discrepancies between the CX and our CRC operational processes No, because our CX principles sometimes conflict with instructions and objectives given to agents and team leaders 61% We have yet to align our CRC operational processes with our CX guiding principles
Customer Experience Accountability 29 Is there a unit responsible and accountable for the customer experience within your organization? 2014 2010 Yes 70% 58% No 3% 18% Decentralized 27% 24%
Customer Journey Mapping 30 Does the CRC maps out the different stages and activities of the customer journey?
Example of a CX Path (viewed by the organization) 31 Bain & Company study : «What it takes to win with customer experience»
32 Example of a CX Path (viewed by the customer)
CRM Tool 33 Do you have a CRM tool to collect, process, and analyze all data generated by your various CRC channels? 27% 21% Yes; this tool collects data from all of our various platforms Yes; but this tool does not collect from all of our various platforms We do not have a CRM tool, but manually integrate some of the data 21% 31% We do not have a CRM tool and we do not do any data integration
Data Analysis 34 Does your CRC use the information obtained through data analysis (data mining/segmentation) to better meet client expectations? Yes, using targeted segmentation via automated outbound contacts (emails, SMS, etc.) 30% Yes, so that the agent can make a targeted offer to the caller 30% Yes; via incoming calls to promptly transfer the caller to the appropriate agent 33% No segmentation 36% Yes, using targeted segmentation via outbound phone campaigns 39%
Training 35 What kind of customer experience training is provided to agents and at what stage of their training is it provided? Initial training Ongoing training or training capsule No specific training, but coaching No training and no coaching Customer Service 52% 39% 6% 3% Customer Profiles 21% 24% 12% 42% Customer Loyalty 18% 39% 12% 30% Cross-selling 18% 30% 9% 42% Difficult Calls 12% 73% 12% 3% Negotiations 9% 36% 9% 45% Customer Segmentation 6% 24% 15% 55%
Data Sources 36 79% What data sources do you use to develop customer experience indicators? 52% 36% 30% 15% 6% Our phone contacts are handled by the CRC Our written contacts are handled by the CRC Data provided by marketing or sales Automated contacts handled by the CRC Contacts not handled by the CRC (i.e. POS, ATMs) N/A
CX Indicators 37 73% What three main indicators do you use to assess customer experience? 42% 30% 18% 12% 9% 3% 0% Global customer satisfaction First-contact resolution Net Promoter Score New sale/cancellation ratio No indicators # or ratio of complaints CPI Customer Effort Score
CX Predictive Power of 3 Indicators 38 Source : Harvard Business Review
Customer Effort Score: 4 Key Elements 39 1. Importance / Value 2. Time 3. Effort 4. Emotion Buying a newspaper vs Buying a house
Calculating the Customer Effort Score 40 The NetEasy Score is a way of measuring how easy your customers find it to interact with your business. It evolved from the Customer Effort Score, and the question How much effort did you need to put forth to do business with us today?.
Points for Discussion 41 What is the KPI of choice to evaluate the customer experience within your organization? Does a customer service agent has sufficient empowerment to improve the customer experience?
Operational Flexibility 42 How much operational flexibility do your CRC agents have to resolve a customer issue (per sector)? Product or service upgrade Discretionary credit Free future transaction Service or product replacement without charge No flexibility; agents must call on supervisor Insurance (Damages/Life) 0% 44% 11% 11% 44% Services and Government Services 11% 11% 22% 22% 67% Telephony/Telecomm unications 100% 100% 33% 100% 0% Banking and Financial Services 0% 38% 0% 13% 75% Distribution and Consumer Goods 0% 50% 25% 75% 25%
Customer Experience Objective 43 Did you set a measurable objective for 2014 with regard to customer experience? Planned for 2015 only 6% No 33% Yes 61%
Main Objective for 2014 44 If you answered Yes at the previous question, please indicate your CRC's main objective for 2014. 73% of customers are satisfied Objectives have been set for agents based on the Net Promoter Score (NPS). Net Customer Loyalty Index: 85% NPS, service quality NPS 85% Improved customer survey by 3% Qualitative assessment: 6 to 8 calls/agent/months assessed/measured Quantitative assessment: time/call; waiting time; queue time; abandoned calls Taking customer calls within 180 seconds Employee uses welcome message; is polite; listens, answers promptly and accurately; uses closing message 85% of members are fully satisfied when surveyed about quality CRRF Satisfaction Rate; Conversion Rate; Service Level Customer satisfaction at 80% (5 of 8 to 10/10) SQM: 83% of surveyed customers must be very satisfied Problem resolution and customer satisfaction based on the service offered by the CRC Probability of being recommended (NPS) (L2R) 70% of members/customers are very satisfied Satisfaction rate of very satisfied customers Achieve 65% of very satisfied surveyed customers Finish in the top tier of CX among our competitors Achieve a Customer Loyalty Index of +75%
CX Return on Investment 45 85% What are the 3 main customer experience ROIs for your organization (produced or projected)? 61% 45% 39% 27% 15% 12% Increased customer Higher loyalty index Increased market satisfaction share Increased employee Greater consistency Net Promoter Score satisfaction across channels Greater ROI of targeted customer offers
Ranking CRC Respondents Based on Success Criteria Used by Services Triad 46 Sector Score Telecommunications 69% Services 68% Telecommunications 68% Insurance 62% Insurance 61% Insurance 57% Financial Services 55% Gov./Institutional Services 54% Consumer Goods 52% Insurance 49% Services 49% Personal Insurance 47% Services 46% Distributions 46% Telecommunications 46% Ranking Very high 53 to 69% High 45 to 52% In development 29 to 44% To be developed 12 to 28% Sector Score Financial Services 44% Banking Services 43% Insurance 41% services 40% Banking Services 40% Insurance 39% Banking Services 38% Consumer Goods 37% Consumer Goods 37% Insurance 35% Financial Services 33% Business services 32% Insurance 32% Gov./Institutional Services 28% Gov./Institutional Services 28% Banking Services 27% Financial Services 24% Gov./Institutional Services 22%
47 10 Steps to Successful Customer Experience Management (Shaun Smith) 1. Successful deployment requires the active and continuing involvement of leadership. It s a commitment that must be endorsed, shown, demonstrated, communicated, and rewarded by senior management. 2. Ensuring cross-functional ownership is vital. The first step involves putting together a steering group comprising of executives from marketing, operations or customer services, and HR. 3. Focusing on your most strategically important customers. Not necessarily the largest group, but the ones inclined to become repeat customers or to refer other customers.
48 10 Steps to Successful Customer Experience Management (Shaun Smith) 4. Finding out what these customers truly value. What are the three or four most important attributes which drive their intention to repurchase from you or to refer you. 5. Being clear about what you stand for. The axes of communication must meet the needs expressed by your customers and be consistent, regardless of the point of contact used. 6. Delivering the promise at every touch point. For all resources involved to answer consistently at every touch point between the customer and the organization.
49 10 Steps to Successful Customer Experience Management (Shaun Smith) 7. Providing branded training to ensure that employees understand the brand story. Who are my customers and how can I keep my promise of providing a different customer experience. 8. Designing processes before installing CRM systems. Processes before technology. Calibrate your projects before incorporating sophisticated technology. 9. Measuring the customer experience. What can be measured can be managed. 10. Aligning KPIs with the customer experience. Your customer experience KPIs must be simple.
Recommended Reading 50 Herrmann, Pamela. The Customer Manifesto: How Business Has Failed Customers And What It Takes To Earn Lasting Loyalty, November 2014. Goodman, John A. Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service, August 2014. McKain, Scott. 7 Tenets of Taxi Terry: How Every Employee Can Create and Deliver the Ultimate Customer Experience, July 2014. Frawley, Andrew. Igniting Customer Connections: Fire Up Your Company s Growth By Multiplying Customer Experience & Engagement, October 2014. Matthew Dixon, Nick Toman, and Rick DeLisi. The Effortless Experience: Conquering the New Battleground for Customer Loyalty, September 2013. Mikkel Svane and Carlye Adler. Startupland: How Three Guys Risked Everything to Turn an Idea into a Global Business, December 2014.
Thank You for Your Participation! 51 Services Triad Inc. 2360 Notre-Dame Street West Suite 312 Montréal, Québec H3J 1N4 Phone: (514) 931-0663 Fax: (514) 931-4429 pmjasmin@servicestriad.com www.servicestriad.com