1 Table 2-1: Old Economy vs. New Economy Old Economy New Economy Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate
Transcript
1
Table 2-1: Old Economy vs. New Economy
Old Economy New Economy
Organize by product units
Focus on profitable transactions
Look primarily at financial scorecard
Focus on shareholders
Marketing does the marketing
Build brands through advertising
Focus on customer acquisition
No customer satisfaction measurement
Overpromise, underdeliver
Organize by customer segments
Focus on customer lifetime value
Look also at marketing scorecard
Focus on stakeholders
Everyone does the marketing
Build brands through behavior
Focus on customer retention and growth
Measure customer satisfaction and retention rate
Underpromise, overdeliver
2
Measuring (and Acting upon)
Customer Satisfaction
3
• Description of Cisco processes for Data Gathering
• Driving Action from the Data
Tell the Customer ! Goals
Initiatives
Data
Drivers
AnalysisProgress Metrics
4
Satisfaction Motivation
Revenue
Time
Strong emphasis on customer satisfaction
Cisco
Customer Satisfaction and Loyalty
Increasing Company Value
Reward for Performance
Stock ownership
Cisco Bonus ProgramTruly Loyal Accessible
Trapped High Risk
Loyalty
5
The Complete Measurement Process
Relationship Survey “Annual Sat Survey”Broad representation of all End-UsersPartner served customersAll theaters, all people15 to 20 minutes Length
UnderstandingSelected CustomersParticular subjectsCould be deep & long
We need all three layers to Measure and Improve Customer Satisfaction
6
Continuous Flow – Annual Satisfaction Measurement
Invitations / Replies Thru-Out the Year = It’s a Continuous Process
A Particular Person gets ONE survey during the year = It’s an Annual “event”
Invite
Analysis / Actions
Start 1 August
Replies = Data
Stop 15 July
Bonus Calculations 30 Apr
Sources“One-byOne”Field SalesAnyone at CiscoChannel Partners :www.cisco.com/go/pal/
“Mass Upload”TAC case customersWeb usersNetworkers attendeesEtc.
7
Real Time Invitations: Cisco and Partners
SEND Options
SEARCH company Name database
Cisco: Web Based Names Tool
Cisco Partners:External Portal AndWeb Based Names Tool
8
Customer Information Gathered
• Sample Information Includes – Name, e-mail, Country– Account Manager and System Engineer– Sales Hierarchy ( Theater, Area, Operation, Region )– Partner Name sending invitation
• Cisco Standard Company (CSC) name Global Ultimate ID - GUID Company Target ID - CoTgtID– Company site ID ( future )
• Customer Input– Co. Size, Market Type, Role in Company– Cisco Products in Use– Follow-up Contact Y/N ? & Release Info to Partners Y/N ?– Name, phone, address for further contact
GUID and CoTgtID codes allow Company Specific Reporting too
14
2002 National IT CustomerBenchmark Study - Cisco
Want to Use;Will Continueto Use
Truly LoyalMaintain &
Grow Relationship
62%
PositiveImpressions;May Not Use
Intervene & Re-direct
Accessible
4%
Will Continue to Use; Don’t Want to Use
Fix Concerns to Retain or Enhance
Trapped
21%
Don’t Want to Use; Probably Won’t
If Profitable, Save!
High Risk
13%
Want to Use;Will Continueto Use
Truly LoyalMaintain &
Grow Relationship
62%
Want to Use;Will Continueto Use
Truly LoyalMaintain &
Grow Relationship
62%
PositiveImpressions;May Not Use
Intervene & Re-direct
Accessible
4%
PositiveImpressions;May Not Use
Intervene & Re-direct
Accessible
4%
Will Continue to Use; Don’t Want to Use
Fix Concerns to Retain or Enhance
Trapped
21%
Will Continue to Use; Don’t Want to Use
Fix Concerns to Retain or Enhance
Trapped
21%
Don’t Want to Use; Probably Won’t
If Profitable, Save!
High Risk
13%
Don’t Want to Use; Probably Won’t
If Profitable, Save!
High Risk
13%
IT Benchmark Network Sector (Excl.
Cisco)
Truly Loyal AccessibleTrapped High Risk
36% 2%
32% 29%
IT Benchmark Total (Incl. Cisco)
Truly Loyal AccessibleTrapped High Risk
47% 3%
29% 21%
We Compare Cisco to Others via Benchmarks Source : “Analysis of Cisco Customer Loyalty – Walker Information Oct, 2002
GUID and CoTgtID codes allow Company Specific Loyalty
15
OK - We Have a Bunch of Data . . . So What ?
What are the Key Drivers of Satisfaction and Loyalty ?
• “This finding supports previous analyses that have shown that for customers worldwide (regardless of loyalty level), satisfaction towards Cisco is largely driven by how they perceive interactions with the Account Team, Hardware Products and Post-Sales Technical support” - (Walker National Benchmark study)
• “Three separate analysis techniques were employed to rigorously test which key areas influence whether a customer is Trapped or Truly Loyal. All three analyses confirmed the same key areas:”
– Hardware Products
– Account Team
– Post-Sales Technical Support
- (Analysis of FY-02 Cisco data)
Source : “Analysis of Cisco Customer Loyalty – Walker Information Oct, 2002
16
Taking Action to Improve Support Satisfaction
• WalkerInfo Computes relative Impact, or Importance - Timely Case Closure is seen to be the Biggest Driver of Post Sales support– Lower Sat level too, so there is plenty of “Runway” around this issue.
• CA Initiatives for FY-03: TRIP – Timely Resolution Improvement
– Re-Launch of TAC-WEB site
– PSI – Product Serviceability Improvement
– Low Score Follow-Up Process
17
TRIP Launched - June 2002
18
Post Sales Support ( cisco )Real Time, Web based Reporting
Customer Advocacy takes Goal on overall Support Q# 34
The TAC team watches this NumberWhile BINGO Q #3 is the Business metric
19
Communicating in Cisco “My Customer” Pages
Consolidating Customer Sat information as well as Service and Sales InitiativesFor Top 3,000accounts
Company Specific Scores and Alerts
Note: Demo Data
Low ScoreAlerts
Satisfaction,Loyalty byCustomer
20
Communication to CustomersSurvey Participants See this Link in the Thank-you note
