Turn Customers into Brand Promoters What does a customer want

Kaushal Mehta

Founder & CEO - Motif, Inc.

www.motifinc.com

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Session goals

• Understanding what delighting customers means?

• The business case for consumer delight – how delighted customers become brand

promoters

• Empowering the frontline to go the extra mile to achieve customer delight

• Measuring service success through hard metrics such as VoC and NPS, and setting up

a customer feedback loop, using predictive analytics, to ensure constant service

improvement

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Why are they shopping online?

What will make them come back to your website for further purchases?

• Easy search of products, clear and accurate product specifications

• Assurance that the listed products are not fraudulent, secure electronic payment

systems

• Updated product delivery information

• Quick and personalized (address all questions) responses to consumer queries

and complaints (Session focus)

Customer satisfaction and trust result from truly outstanding online experiences

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Understanding what customer delight means

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The Moment of Truth – The business case for customer delight

• It is 10 times more expensive to acquire a new customer

than to keep a current customer

- Bain & Company Research

• Customers are lost primarily due to indifference (66%)

versus dissatisfaction (14%)

- The Wall Street Journal

• 66% of respondents said they would spend an average of

13% more with a company that provides excellent

customer service

- 2012 American Express Global Customer Service Barometer

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• Procedural: established systems, channels, policies and procedures to deliver service

– Various channels of support, time of support, amount of support

– Evaluating which channels work best for your e-tail company

– Are your customers aware of these channels

– Do these channels work effectively from a customer’s perspective – ease of access, timeliness of response, etc.

• Personal: Product knowledge, attitudes, behaviors and communication skills service

providers use to interact with customers

– Providing timely, accurate and empathic responses to problems, queries and complaints

– Going above and beyond (empowerment)

– Using proper language and grammar so that communication is clear

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The two dimensions of customer service

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According to the 2012 American Express Global

Customer Service Barometer, the top four causes of

consumer dissatisfaction listed by respondents were:

Rudeness: An insensitive or unresponsive customer service

representative

Passing the Buck: Being shuffled around with no resolution of

the issue

The Waiting Game: Waiting too long to have an issue resolved

Being Boomeranged: Forced to continually follow up on an

issue (example 48 hours)

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What causes detractors

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Amazon – delighting customers with quick & cheerful service

“I have been purchasing from Amazon.com for over a decade. In that time, I have only had one problem. A few months ago I purchased another book. The book was $25.84. When I noticed that I was double charged, I called Amazon.com and the charges were reversed. There was no lengthy on hold time, no arguing with a rep, and no waiting for a resolution.” - a delighted Amazon customer

Several examples of amazon.com’s great customer service can be found on the company’s own website and social media pages. Amazon allows customers to leave positive and negative reviews, knowing that most will be positive.

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The Virgin Atlantic Experience

Richard Branson calls!

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• Voice of Customer (VoC)

• Net Promoter Score (NPS)

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Measuring customer delight

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• How to correlate between two Key Performance Indicators:

– Internal QA scores and Net Promoter Score

– Internal quality monitoring is more focused on compliance, procedure and not so much on the customers’ perception of services provided

• NPS typically takes 8-10 days for feedback to be provided to agents, after data

collection, scrubbing and analysis

– NPS only allows for a post-mortem analysis on a failed interaction

• The sample of customers responding to surveys may not be adequate to represent

the opinion of an entire population on services provided

• Difficulty in going beyond the NPS metric and building an operational model around it

The science behind turning customers to advocates - Net Promoter Score

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The science behind turning customers to advocates - Net Promoter Score

• Attributes such as timely and comprehensive response weigh in more than grammar

– severe detractors if not addressed

• Assign binary rating to each attribute; higher the impact, lower the negative rating

(table above). Different ratings for different company

• Create predictive model to enable real time assessment rather than wait for surveys

Customer CTQs (critical to Quality) Internal Compliance Attributes

Correct response, research & tools (1 or -1) Spelling, Grammar (0 or -1)

Complete response (1 or -2) Formatting (0 or -1)

Customization (1 or -1) Tools used/documentation (0 or -1)

Addressed all issues (2 or -3) Policy violation/non-compliance (0 or -3)

Clarity (1 or -1) Opening/closing (0 or -1)

Credit issued (3 or -3) Bonus (5 or 0)

Malicious (0 or -3)

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• Drive behaviours via enhancements in product and process to address the key

attributes that create promoters and minimize detractors

• Successfully able to predict the NPS

• Identify training needs by conducting real-time gap analysis for individuals as

well as entire groups, by studying ‘controllable’ factors affecting NPS

• Track post-training performance of low-performing agents

• Feedback on certain policy changes and site issues that were identified as

‘uncontrollable’ factors affecting NPS

Making difficult changes

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• Focus on your core expertise

• Product, process and channels

• Leverage available expertise to enhance the member experience to create

customers into brand promoters

The way forward

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2002 2003 2004 2005 2006 2007

Pre and Post Purchase Customer Support

Billing, Credit, Refund

Order Processing

Site Management

2008

Collections

Service channels: Email, Chat, Voice & Back Office

2009 2010 2011

Online Retail Experience – 12+ Years, 33 Million Transactions

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Inventory Analysis

~15M

~1.9M

~0.9M

~1.0M

~13.5M

~0.5M

Highlights

• Track record of serving Fortune 500 and 1000 clients for extremely long client tenures (decade plus)

• 1500 dedicated FTEs providing E-commerce services from India, Philippines and Costa Rica

• Continuous focus on process improvement to improve customer experience

About Motif

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Thank you

For more information, email: kaushal.mehta@motifinc.com