1

Focussing

greg Stewart SMS Management & Technology www.smsmt.com @clarityrules

how to

on

Challenges to a dive into

questions

A CX LEADER’S CHALLENGE

and

to

try and make a difference?

If I do, will it be

there’s a lot of talk, but

it’s hard to

it’s hard to

it’s hard to know

Forrester’s six: 1. Customer Understanding – who they are, what they need, how they perceive

their interactions

2. Measurement – track experience quality, best using customers’ perceptions

3. Governance – Citi created a CX steering group. Keep bad experiences getting

out the door. (thresholds with teeth, include ‘experience impact’ in review boards

4. Strategic alignment – WHAT about your cx is going to be different? Like real

strategy, but at a CX level. Don’t just say ‘provide great cx’. that’s‘ like a business

strategy that says: create a great business.

5. Design – co-create, follow a service design method. Agile

6. Culture – CX excellence a habit. STORY: Southwest Airlines dying grandson.

At the end of this, you will

Understand what we mean by

‘customer experience’ and how to

look at your business from your

customers’ perspective

have a way to give customer experience

some ‘teeth’ in the boardroom

1

2

3

Know at least one metric that lets you link customer experience with real business outcomes, and understand a few capabilities that will help you take advantage of it.

Have a list of things to consider in

your business that will help you get

more customer focussed

What is

customer experience?

(Pine & Gilmore, HBR)

” Jerry Gregoire, CIO, Dell

“

(major Australian bank)

Good Customer Experience does not happen by chance- it

needs to be designed

The current Australian experience..

8

1. Hidden fees and costs 2. No refund/replacement for faulty

products, despite being under warranty 3. Being on hold/not

getting someone on the phone 4. Tailgating 5. No response to

written or verbal complaints 6. People talking loudly on

mobiles in an inappropriate area 7. Door-to-door

salespeople/telemarketers 8. People coughing in an enclosed

area without covering their mouth 9. Confusing

broadband/phone price plans 10. Nonchalant customer

service 11. Erroneous bills 12. Cigarette butts littering public

areas 13. Unreliable internet 14. Poor advice from financial

planners 15. Spam email 16. Late repair people 17. Noisy

neighbours 18. Long queues/checkout lines 19. Companies

only letting you pay by automatic deduction 20. Poor service

from airlines

75% of the top 20 gripes resulted from poor Customer Experience

CH

OIC

E s

urve

y, O

ctob

er 2

010

What annoys Australians report reveals in Australia

9

How do I…

Elicit Represent Trace respond

let’s start by looking at customers from our

customers’ point of view

if it’s that to

define

11

Customers are in a decision lifecycle

12

The customer decision journey

13

Start from the customer journey

14

Swimlanes on a process map

15

Put in a process flow

spot the customer’s total

experience

you can’t

16

experience

Experiences are made up of

Customer touch points..

18

Find out

about a

special

travel offer

Get details

of the

special offer

Make a travel

booking to take

advantage of the

offer

Receive the

receipt &

itinerary

Check in to

the flight

Receive a

boarding

pass

Check in

luggage

Get flight

departure

information

Enter the

plane

Receive

in flight

service

Retrieve

luggage

Comment to

friends on travel

experience

Touchpoint: a single point of

contact or interaction

between a customer and a

supplier of products or services

..which become experience touch lines

19

Find out

about a

special

travel offer

Get details

of the

special offer

Make a travel

booking to take

advantage of the

offer

Receive the

receipt &

itinerary

Check in to

the flight

Receive a

boarding

pass

Check in

luggage

Get flight

departure

information

Enter the

plane

Receive

in flight

service

Retrieve

luggage

Comment to

friends on travel

experience

Fin

ish

S

tart

Experiences are multi-channel

20

Call centre

Airport counter

Airport signage

Airport gate

Airport luggage

In flight

Email

Web site

Mobile

Social media

PH

YSI

CA

LD

IGIT

AL

Fin

d o

ut

abo

ut

a sp

ecia

l off

er

Get

th

e d

etai

ls o

f th

e sp

ecia

l off

er

Mak

e a

trav

el

bo

oki

ng

Rec

eive

th

e re

ceip

t &

itin

erar

y

Ch

eck

in t

o t

he

flig

ht

Rec

eive

a

bo

ard

ing

pas

s

Ch

eck

in lu

ggag

e

Get

flig

ht

dep

artu

re

info

rmat

ion

Ente

r th

e p

lan

e

Rec

eive

in f

ligh

t se

rvic

e

Ret

riev

e lu

ggag

e

Co

mm

ent

to f

rien

ds

on

tra

vel e

xper

ien

ce

of all of the silos’ best efforts accidental concatenation The

Tracing touchlines

23

Instead, use journey maps

Guiding Principles

Customer Journey

Opportunities

SMS Services

RIGHT VISION

STAGES

ACTIVITIES

DOING

THINKING

FEELING

Trip Initiation Enrolment Finalise Trip Post-Trip

College e-Enabled Field Trip Experience Map

• Where should I organise the trip?

• When is a good time to go?

• What processes do I need to follow?

• I’m excited about this trip!

• I’m worried it won’t get approval from the Principal

Obtain approval Schedule resources Give permission View itinerary

Go paperless &

move towards

online processes

Adopt automated

workflow where

possible

Introduce “cloud”

spaces for remote

collaboration

Develop web forms,

portals, and apps

Build platforms to

push notifications to

SMSs & emails

• Do we have enough information about this trip?

• How much will this cost?

• Who else is going?

• Can we pay online?

• Happy that Wesley College allowed us to nominate the preferred

communications channel

• Wish we are able to see other parents’ responses

• I need to have an up-to-date view of the responses to

help me finalise arrangements

• What do I do if there is not enough responses?

• Stressed that this is taking longer than expected

• Worried about getting things wrong

RIGHT INVESTMENT RIGHT INFORMATION RIGHT INTEGRATION RIGHT OUTCOMES

Submit internal

trip request form

Mr. Smith

(History

Teacher)

Receive trip

approval

Organise volunteers,

buses, etc.

Mr & Mrs

Lincoln

(Parents)

View trip

itinerary

Receive trip

details

Submit permission slips

Make payment

Mr. Smith

(History

Teacher)

Monitor

responses

Answer

questions

Confirm

arrangements

Notify parents

Receive

confirmation

For queries / difficulties encountered

Consolidate responses Schedule resources Gather feedback Share experience

Mr. Smith

(History

Teacher)

Mr & Mrs

Lincoln

(Parents)

Sarah

(Student)

Share photos

• I need to know if the students enjoyed themselves

• Next time, I will need to plan more carefully

• Excited to share photos with students and parents

Organise payment

Discuss

experience

Get

trip

ratings

Allow knowledge

re-use and

discovery

Encourage sharing

& participations

through online

communities

Build-in intelligence

to merge & report

information from

disparate sources

Trip

Trip

occurs

Participate

For unexpected

changes

Continuous, non linear Non linear, but time based Linear Processes

Business Performance Improvement (BPI)

Information & Data Management (IDM)

Systems Integration (SI)

Program & Project Services (PPS) Project Management

System Architecture Social Media Integration

Business Intelligence

Customer Experience Improvement

Workflow Automation

Transformation Business Case

Pinterest

Google Images

Not an exact science

tasks / activities / ‘moments of truth’ channels Staff involved Business process involved systems involved data involved expectations / targets

… a

31

The currency you’re trading in is emotion

32

the first thing we ask is

what do we want people to feel?

then we craft around that intention

Experiences are emotional- Journey 1

1. My wireless broadband modem has intermittent problems. I try to get help from the telco which supplied it

33

“A sub-optimal

experience”

Experiences are emotional- Journey 2

2. I want to buy some new music online. I have an idea of what I want, but haven’t completely decided

34

“A near-optimal

experience”

35

Experience is part of a bigger lifecycle

Experiences have a life cycle

36

Acquire and consume Before After

Brand identity building

Demand stimulation

Expectation setting

Calls to action

Issues resolution

Feedback management

Satisfaction monitoring

Sentiment monitoring

Improvement loop

The organisational experience lifecycle

Experiences have a life cycle

37

Brand identity building

Demand stimulation

Expectation setting

Calls to action

Issues resolution

Feedback management

Satisfaction monitoring

Sentiment monitoring

Want Consider Evaluate Buy Experience Advocate Bond

The Customer Decision Journey

Acquire and consume Before After

The emotional aggregate effect of many experiences

38

The secret is

orchestration each stage

Don’t make me say....

customers measure you the way your

By persona call centre kpis

lending retreat borrowing retreat

What do I have to think about to do this stuff

FIVE CATEGORIES OF CHALLENGE

Customer Insights

Customer acquisition

Customer experience

people organisation

infrastructure operations

Customer

analytics

Customer (Identity, CRM, Predictive Analytics)

(Net Promoter System)

improvement

Implementation

Campaign Management – , NBO

Best Practice

Customer

Customer

experience

solutions

Customer centric

Creating a

Customer-centric

- related Systems Integration

ab

ove

th

e lin

e

be

low

the

line

Culture

southwest airlines

Let’s talk

customer insights

46

Customer Experience Improvement Framework

A CX LEADER’S CHALLENGE

and

to

try and make a difference?

If I do, will it be

CFO

They count . They want .

Crystal Ball

Trip Fall

top process owners entity identification customer journey mapping Customer decision journey Social media monitoring Chief Customer Officer Customer satisfaction

:

Customer’s Point of View

anAlytics activities Measuring

Tick

Generating showing

performance and stats by

business unit/product etc…

Tick

oh dear…

a little knowledge is a dangerous thing

good idea, bad execution

all the kit, but still pretty s#&t

some

Why Q

A Answers not correlated with business improvement

customer

delighting

exceeding expectations

Excellence

Recall

Question: Strong correlation to growth?

4%

Source: Satmetrix: The Power behind a single number,

chasing

funding

something

no insights false insights explored insights predicted insights insights you didn’t know to ask for

Better Question

A CX LEADER’S CHALLENGE

and

to

try and make a difference?

If I do, will it be

Net

Promoter

Score

The high priest of Loyalty research

Net Promoter Score

Probably the most measure of customer intention

Open Source Simple Surprisingly Robust and versatile

Legitimising investment in customer experience

Question: Strong correlation to growth?

80% 4%

Source: Satmetrix: The Power behind a single number,

what’s it

what’s the of loyalty?

from a to a ?

by 10 points?

Value estimate the of the

average customer in each segment 1.

Look at the

between , and 2.

Hypotheses – find in your

experience design that affect NPS 3.

Work on those 4.

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

1.0

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

1.0 1.0 1.0

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

1.0 1.0 1.0

wallet share

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

1.0 1.0 1.0

retention

wallet share

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

1.0 1.0 1.0

referrals

retention

wallet share

NPS Gives TEETH to customer metrics

Detractor Neutral Promoter

bad-mouthing

cost to serve

wallet share

1.0 1.0 1.0

referrals

retention

wallet share

Your industry’s & YOURS

7.6x

referrals

cost to serve

wallet share

bad-mouthing

cost to serve

wallet share

1.0 1.0 1.0

1.0

1.9

0.65

NPS Gives TEETH to customer metrics

Use NPS to prototype service

it creates a

for leaders

Forrester’s six: 1. Customer Understanding – who they are, what they need, how they perceive

their interactions

2. Measurement – track experience quality, best using customers’ perceptions

3. Governance – Citi created a CX steering group. Keep bad experiences getting

out the door. (thresholds with teeth, include ‘experience impact’ in review boards

4. Strategic alignment – WHAT about your cx is going to be different? Like real

strategy, but at a CX level. Don’t just say ‘provide great cx’. that’s‘ like a business

strategy that says: create a great business.

5. Design – co-create, follow a service design method. Agile

6. Culture – CX excellence a habit. STORY: Southwest Airlines dying grandson.

Summary 1

2

3

Customer journey

Design from customers’ perspective

Emotion

Customer Insights

Customer Acquisition

Customer Experience

People & Organisation

Infrastructure & Operations

Link your metric with Business Outcomes

Net Promoter Score

80

thank you

greg Stewart SMS Management & Technology www.smsmt.com greg.stewart@smsmt.com @clarityrules