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McKinsey Framework for Three Horizons of
Growth
Image Credit: Blake Morgan at: https://www.forbes.com/sites/blakemorgan/2015/01/19/moving-
from-transactional-to-meaningful-customer-relationships/#2c64b94e3261
Many companies begin with a
traditional division of resources:
Horizon 1: 70%
Horizon 2: 20%
Horizon 3: 10%
More recently, transformational
companies are allocating more
resources towards the second
and third levels.
“Most companies don’t spend
enough time on transformative growth because they aren’t good
at transformative and it’s scary for them.
- Michael Docherty, Collective Disruption: How Corporations & Startups Can Co-Create Transformative New Businesses
“We are at a point where
companies need to aggressively innovate their customer
experience.
– Blake Morgan, Customer Experience Futurist
Transactional Customer Service
Based on units of work Transactions = Individual
events Little focus on context Performance benchmarking Creating successful
conversions Risk averse Task focus Short term view
Transformational Customer Service
Based on Meaningful experiences
Interactions interconnected Total experience considered Motivation from shared vision
and high standards Creating brand advocates Risk necessary but
calculated People focus Long term view
“Simply being polite and helpful is not enough.
– Dr. John R. Miller, Is the Customer Service Experience You Create Typical or
Transformational?
Assessing Transformational
Potential
1. A more personalized product or service
2. A closed-loop process 3. Asset sharing 4. Usage-based pricing5. A more collaborative ecosystem6. An agile and adaptive
organization
Based on: Kavadias, Stelios, et al. “The 6 Elements of Truly Transformative Business Models.” Harvard Business Review, Oct. 2016
Step 1: Reexamining the library’s
strategic plan and priorities
From a WHY perspective What values are the elements
based on specifically How does each relate back to the
needs of specific segments of our service population
How do the elements of the plan/priorities/directions relate to furthering community aspirations
How does this dictate the way we approach customer servicehttp://www.varchannelmarketing.com/wp-content/uploads/2014/02/The-golden-circle-
e1391717108503.gif
Step 2: Create mechanisms for
customers to define needs and expectations
For services For modes of delivery For communication channels For interactions
From all segments of the community
From direct and indirect sources
Asking the right questions
Step 3: Build Collaborative teams
to find innovative solutions to meeting
customer needs
Cross disciplinary Interdepartmental Including different stakeholders Including customers
Proactively identify outside partners to work with
Need to identify, refine, and define goals as well as work to find solutions
Step 4: Streamline internal
processes to allow these collaborative teams to
work
Identify and remove internal barriers to collaboration
Unify communication channels as much as possible
Step 5: Integrate technology and
data
From all channels and touchpoints To create richer customer profiles To define customer needs/wants
more fully To examine the customer
relationship over time Use to personalize experiences
Address technical issues Address ethical issues Address organizational issues
Personalization of Services
Elements of the customer experience are tailored to the individual as much as possible.
Based on data Relationship builds over time Individual transactions help
inform the long term relationship and total experience
Technology Integration
Experiences through many channels:
Text, chat, video, mobile, kiosks
Self service opportunities Interfaces that add value AI as an aid to those
assisting the customer
Omni-Channel Communication
Consistent, two-way communication through allavailable channels
Responses are quick and helpful
Adopt a consistent tone/persona that is developed and practiced throughout the organization
Attention To Experience At All
Touchpoints
Anything that is part of the customer experience of the library deserves attention
Onsite/remote Service related or not
Convenience For The Customer
Bottom line, the product that customers perceive as cool will have a big advantage, but the product that customers find easy to use will keep their attention.
–Pete Seer, Why Innovation must build from Customer Experience
Proactive Customer Service
Actively seek out opportunities to solve customer problems before they even notice there’s an issue.
Anticipate needs Base this on data Avoid pitfalls of assumptions Offer solutions to problems
they didn’t know they had
Internal Motivation
Cultivating a Culture of Customer Service
Values and objectives clearly established & communicated
Strong internal communication Cultivate a customer service
culture Support for developing skills Celebration of success
CREDITS
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