Loving the Customer

Heart - Mind - Wallet

One night stands or ?……..

Personalised Value for money

Expectations met or exceeded!

Recommend to others

Worth repeating

Hassle free

Memorable

A good experience?

Consistent

How do our customers perceive value?

• Service worth staying for • In relation to competitors• Emotional content • Trust and openness

It is about delivering customer value!

CUSTOMERVALUE Economic

Strategic

Operational

Behavioural

Nikolaos Tzokas Norwich Business School

STRATEGIC: Common Vision, Similar Goal Orientation, going in the same direction, thinking like them!!

ECONOMIC: Value for Money, understanding Cost Driversshared ROI/ROR

BEHAVIOURAL: Respond to the Customer, supporting, selling?, your dialogue with the customer

OPERATIONAL: Being there for them,Meeting their needs & Expectations/right channels, right time, ease of operation

Determining the value!!

This enables the company to ensure that its investment is aligned to those

processes that create value!

CustomerExpectations

BusinessIntentions

Mutual Value

Managing the value in respectful relationships

Expectation

Experience1

12

2

3 4

3

4

Implications of Customer Satisfaction

Source: John Murphy MBS

LOYALTY(Retention)

Zone of affection

Zone of indifference

Zone of defection

20

40

60

80

100

Terrorist

Advocate

25Somewhat

Dissatisfied

50Slightly

Dissatisfied

75Satisfied

100Excellent

Customer Value Index (CVI)

0Extremely

Dissatisfied

What’s important (all)?

5.05.56.06.57.07.5 8.08.59.09.510.0

5 Efficiency of service

2 Helpful friendly staff

6 Cleanliness & tidiness

10 Value for money

1 Location

3 Meeting facilities

3 Style atmosphere & ambience

6 Equipment & room

furnishings

6 Information, facts & data

11 Maintenance &

appearance

6 Brand

Ave

rage

Sco

re

Most Important

Least Important

A Guide to what bookers think

5.05.56.06.57.07.5 8.08.59.09.510.0

1 Efficiency of

service (5)

2 Helpful friendly

staff (2)

3 Cleanliness &

tidiness (6)

4 Value for money 10

5 Location & transport

connections (1)

6 Meeting facilities (3)

7 Style atmosphere &

ambience (4)

7 Equipment & room

furnishings (8)

9 Information, facts

& data (9)

10 Maintenance &

appearance (11)

11 Brand (7)

Ave

rage

Sco

re

Most Important

Least Important

4.54.0

(Regular) Corporate Guests

5.05.56.06.57.07.5 8.08.59.09.510.0

3 Efficiency of service (3)

2 Helpful friendly staff (2)

1 Cleanliness & tidiness

(6)6 Value for money (10)

4 Location (1)

9 Meeting facilities (8)

7 Style atmosphere &

ambience (7)

4 Equipment & room

furnishings (8)

11 Information, facts

& data (9)

8 Maintenance &

appearance (11)

10 Brand (7)

Ave

rage

Sco

re

Most Important

Least Important

4.54.0

How To Improve Satisfaction by 70% (Guests)

Index 1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8 42.1610%

Q17 Quality of external appearance& surroundings

+ $

1.7617%

Q21 Helpfulness & friendliness ofstaff

+ $

1.68 22%

Q8 Size and layout of bedrooms + $

2.830%

Q14 Food and drinks in room + $

1.5635%

Q7 Knowledge & helpfulness of staffin orienting me on arrival

+ $

2.643%

Q26 Follow up contact and communication + $

1.9248%

Q19Cleanliness & tidiness of publicareas

+ $

1.5653%

Q13 Bathroom condition andToiletries range

+ $

1.3258%

Q15 Food and drinks around thehotel

+ $

1.1261%

Q11 Quality and range of in roomFacilities

+ $

1.5666%

Q18 Comfort and style of furnishingsin public areas

+ $

1.3669%

Q5 Speed of check-in and registration + $

1.272%

Q23 Accuracy of billing + $

We are all different? Business too?

Airport:• Safe and secure• Knowledgeable Helpful and Friendly • Clean and free of litter• Efficient and ‘no hassle’• Informed at all times

Data Issues

Number of Customers byRevenue Group

0

50

100

150

200

250

No. Customers

Revenue Group

<£50k£50-£150k£150k-250k>£250k

Profit Measurement

£0

£2,000,000

£4,000,000

£6,000,000

£8,000,000

£10,000,000

£12,000,000

Totals

Total GrossProfitTotal Cost

Average GrossProfitAverage Cost

Data Issues

0%10%20%30%40%50%60%

<£50k £150k-£250k

Revenue

Costs Split by Revenue Group

Sales Staff Salary &CarsSales Promotion

Marketing

%profit segments

Adjusted Revenue Segmentation

£0

£1,000,000

£2,000,000

£3,000,000

£4,000,000

£5,000,000

Total GrossProfitTotal Cost

Average GrossProfitAverage Cost

1,470.705,027.09

1,470.705,027.09

One night stands or ?……..

Some Definitions

Customer Experience – what the customer sees, hears, feels, tastes, touches, the ambience, atmosphere, emotional content

Sequence – as series of events that when combined describe part or all of the customer journey

Events – a set of interactions which when combined, make the ideal customer journey

Acts – are what support the customer experience and bring it to life ( behaviours, information, dialogue, technology etc. )

Why?• Research in this area tells us that a 5% increase in

positive employee behaviour leads to a 1.3% increase in customer retention

• A 1% increase in revenue and a • 0.4% increase in profit. • $1.2billion turnover = ‘do the maths’• 1% increase in CS = £150/£175 million value• 1% increase in CS = 2.73% increase in ROI

Do we want to be like the corner shop?

Experience to advocacy!!

“Random survey of 1500 adult consumers in the UK found that both word of mouth

advocacy rates and negative word of mouth were statistically predictors of sales growth.”

…

‘….would you recommend our services to your friends and business associates?’

Measuring the experience 21st century!!!

Business Organisation

Customers

Web

or

Phone or

Office

Email / IVR / SMS / Web Page

Service Feedback Report

-Management / Executive

-Web Team

-Call Centre Manager

-Product Manager

-Marketing Manager

Online / Call Centre / Branch Office

Service Console

Service Feedback Request

Benefits of ServiceTick…Customer Research

And Insight Benefits

Customer ServiceBenefits

Benefits of ServiceTick…Operational

Benefits

WiderBenefits

Loyalty & Rewards

It took some negotiation but she finally persuaded them she had enough reward points for the young man behind the fish counter

Staff

Marketing the proposition

Channel Integration/

good processes Customer Insight

(analytics)

Customer Insight

(research)

Customer Management

Strategy

IT Systems & quality data

The building blocks!!

Recommended Reading:

• Loyalty.com: Fred Newell• Why CRM hasn’t worked: Fred Newell• Secrets of Successful Complaint

Handling: Clare Moore• The Customer Driven Company:  Richard Whiteley

And finally…..

“There are very few people who don’t become more interesting when they stop talking”

- MaryLowry

russellbiggart@btconnect.com

07973329669

@russellbiggart: Twitter