how to turn your customers into your sales team - tec 401

‘How to turn your customers into your sales team’

Iven Frangi Dip Mktg, CSPCustomer Xperience Management

p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au

April 30 2009

TEC 401

T a m w o r t h

3 ring circus

get keep grow

customer

3 ring business

get keep grow = CS =

customer satisfaction

satisfaction is not enough

‣ 62% of all satisfied customers never repurchase from the same supplier

(Harvard Graduate School)

‣ 95% of brand awareness advertising does not work

(CEO Chiat Day)

‣ 4 out of 5 sales in any category of business is driven by word of mouth.

today

• look at CX in business

• how to listen to your customers in real time

• how to get your customers to become advocates

• the steps to take to install CX in your business

• some tools you can use easily and inexpensively

• leave with things you can do tomorrow

defining the terms

customersatisfaction

customersacrifice

customerexperience

=what a

customerperceives they

get

what a customerexpects

-

what a customersettles for

what a customer

wants= -

what a company

has promised

what a company delivers

:

get keep

grow

C

customer centric business

sales market-ing

loyalty

cx

customer experience

customers to advocates

use

choose

brag

not significant

commodity differentiatedproduct/service

whatcustomer

values

high

low

significant

advocacy

significance

meaning

utility

aesthetics

engineered experience

the latest guarantee

marketing defined

whose shoes?

“stop thinking like an seller -start thinking like a customer”

In a down economy

•risk is avoided at all costs

•the known supersedes theunknown

•management retreats tofail safes.

is CX profitable?

Harris InteractiveCustomer Experience Report 2008

why bother?

“Using data from nearly 4,700 consumer surveys, Forrester examined the correlation between the customer experiences delivered by more than 100 US firms and the loyalty of their customers

Our analysis shows that good customer experience correlates to consumers' willingness to repurchase, reluctance to switch, and likelihood to recommend firms across all 12 industries we examined.” Forrester Research Feb 09

not all bad

are you on trend?

the international study

Xperience matters

‣ makers or breakers?

‣ hard or soft differentiators

‣ xperience or satisfaction?

‣ xperience or loyalty?

marketing isn’t linear

new technology + old thinking = same old outcome

your CX premise

customersemployees

company

‘enabling promises’

external marketing internal support

experience delivery

‘setting promises’

‘keepingpromises’

your challenge

leads

prospects

presentations

pending

m v c

m g c

clients

sale

CXMsales

hourglassBML study to change the customers experience

it’s about knowing

• who’s responsible for the VOC management?

• what are you/do you want to be famous for?

• what experiences will enhance that fame?

• is there a published customer recovery plan?

• can you hear the VO your C?

the 4D map

define what cx will support your decision

decide what cx you want to create

deliver do it, observe, review, re-decide

design the steps and stages of your cx

what customer values

define

35

designfeedback loop

decide

deliver

4 D process

Consistency with Global Sales ProcessesThe Toyota Internal CXM Path

• existing data & programs

•visit departments

•CX observations

•hard & soft differentiators

•CX Themes

•Top Team•Managers• Internal staff•Service staff•Suppliers

•staged roll out as decided

•train advocates

•behaviour maps/KPI’s

•NPS•selected CX measures

Decide DeliverDefine Design

•create ‘Pledge’•evaluate current awareness

back to Decide

Evaluate Experience Audit

ExperienceDrivers

IntegrateEngagement

Programs

ExperiencePledge

DeliverExperienceMessages

InstallCXM

Metrics

CheckMetrics

• behaviour clues

• NPS • evaluate

awareness

Senior/Department

Mgrs

• behaviour clues• NPS

“Give people an experience they can’t get anywhere else and they won’t go anywhere else”

Iven Frangi

the cxm mantra

measure and manage

plumbers maker

breaker

brag

choose

use

dislike

tolerate

hate

cleans up

receptionistcompletes

job

time suitsyou

on time

explains account

pay whenhappy

followup call

turns uplate

inconvenient appointment

can’t contactplumber

needs extraequipment leaves a

mess

big billno follow

upnot

happy

VOC - voice of the customer

we can’t hear the customer

mystery shopping cycle

“We will closely match a team of our highly-skilled and rigorously selected Mystery Shoppers with the type of customer that you serve and supply them with a detailed briefing document and questionnaire to ensure that all your key issues are addressed.

The research may be undertaken through a single service or, increasingly, across a number of services to ensure that an overall picture emerges.”

COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVEDCONFIDENTIAL

Actual results of a Mindshare retail client over 3 months

Results!Use customer experience feedback to identify 

opportunities

Led to

40% Product 

Recommen‐dations

Month 1 

54% Product 

Recommen‐dations

Month 3 

3% Sales Contribution

8%Sales 

Contribution

Month 1 Month 3

“I tried a million different strategies.  It wasn’t until I could “prove” to the staff that they were not educating the customer that the improvement happened.”          Mindshare Client

COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVEDCONFIDENTIAL

Actual results of a Mindshare retail client over 6 months

Led to

7% Growth in Customer Counts

11%Growth in Service Sales $

8% Growth in Top Box Service Scores

Q1 Q2

“It doesn’t matter what I think; what my employees think.  

What matters is what the customers think.”

Mindshare Client

Results!Set speciGic goals with employees

COPYRIGHT © 2009 MINDSHARE TECHNOLOGIES – ALL RIGHTS RESERVEDCONFIDENTIAL

Results!Monitor progress toward goals, weekly or monthly

BEFORE Mindshare

BEFORE Mindshare

AFTER Mindshare

N/A

$300,000 $300,000

$318,000

$297,000

Mindshare stores NON­Mindshare stores

1,618 stores comparedMindshare stores (n=525)

NON­Mindshare stores (n=1,053)

Mindshare stores grew +6%

NON­Mindshare stores declined ­1%

Source:  Client Internal Study, Spring, 2007

Actual results of a Mindshare retail client over 12 months, normalized

eavesdropping on customers

eavesdropping on customers

✓ Greeting the customer✓ Courtesy, amiability✓ Helpfulness and availability of your staff✓ Staffs attention and eagerness to satisfy the customers needs✓ Technical knowledge of your staff✓ Commercial performances and complimentary sales✓ Respect of decoration, display and equipment standards✓ Atmosphere and special sales operations in the retail premises✓ Your business accessibility and business hours✓ Cleanliness, hygiene and order✓ Quality of after-sales service✓ Treatment of complaints and dissatisfaction

hard v soft differentiators

outcomes

Measuring customer satisfaction (at the unit level) drives loyaltyAre customers satisfied? Are they loyal? You'll never know unless you ask them. Because customer experience happens at the unit level, that is where you'll need to measure it. Then, let customers become your teachers. Seek their feedback (good and bad) and incorporate it into continual improvements in your operations.

Mindshare will help you do this.

Measuring employee performance improves employee satisfaction and productivity

Good employees want to be held accountable. Mindshare allows customers to comment on employee performance, which gives

them an objective measurement of their service delivery. Managers can then fine-tune training to the individual employee.

Additionally, Mindshare's employee satisfaction surveys will monitor how employees feel about their work environment.

Measurement must be an ongoing, continuous process. (Take a movie, not a snapshot)

Continuous measurement leads to improvement of weaknesses, emphasis on strengths, loyalty from customers and employees,

repeat business and referrals.

Feedback should be real-time. (Not stale reports, filtered by a third party)

Waiting for customer feedback collection and analysis means that service lapses are perpetuated. Data should be collected daily and

available for improvement and training immediately.

Customers should be your best source of innovative ideas.Often, companies overlook their best source of innovative ideas. As Jackie Huba explains, "Asking customers to participate in your problem-solving and idea generation is an act of courage, not of weakness." Inviting customers into your R&D process not only provides a great source of innovation, but it also solidifies their

loyalty to helping you succeed.

‣ Measuring customer experience (at the unit level) drives loyalty

‣ Measuring employee performance improves employee satisfaction and productivity for delivering the customer experience

‣ Measurement must be an ongoing, continuous process. (Take a movie, not a snapshot)

‣ Feedback should be real-time. (Not stale reports, filtered by a third party)

‣ Customers and staff can be your best source of innovative ideas.

‣ Money spent on CXM reaps 3 - 7 times investment.

‣ Turn your customers into your mystery shoppers

“the CX steps”

• evaluate what’s happening now - observation, CXM Audit, VOC tools

• apply the 4D criteria to decide the new culture

• map the steps for the culture change including the Customer Pledge and the behaviour templates

• install the CX upgrades using the CX Advocate teams and the CX and business metrics

• evaluate the 4D criteria and repeat

• celebrate with the whole team, the customers and your accountant

“Customers are the best market researchers”

coffee anyone?

coffee anyone?

breaker or maker?

z

breaker or maker?

promise vs delivery

z

car dealer

not significant

significant

whatpeoplevalue

use

brag

choose

Mercedes Express

sales person or marketing offer

style or type of vehiclebrag

“a class beyond first” Singapore Airlines

@ your business

not significant

significant

whatpeoplevalue

use

brag

choose

Why would people use us

Why would people choose us?

Why would people brag about us?

commodity differentiatedproduct/service

high

low

advocacy

new jobs

Customer Experience ManagerFinancial Services

Newport, UK The Company Our Client, a dynamic financial services organisation are looking for a Customer Experience Manager

The Role

This role is a Group Function to maximise the Customer Experience across all Group companies to improve customer product penetration and increase profits. This is a new role that requires a self motivated individual that is sales driven to improve the customer experience, across multiple brands, to enable increased sales and ensure requirements of compliance are adhered to. Day to day management of Customer related Operations, to ensure: FSA compliance including Treating the Customer Fairly Effective Reporting of Customer Experience across all departments; Correct utilisation of tools for on & off line and customer experience Effective Management of Complaints Quality Monitoring is efficient and effective Development and implementation of above systems to improve the customer experience and Group profitability.

the best one last

c hddan o aveo

Inside - Out InnovationLet the people that do the job improve the job. The 4 D principles applied to your business by your people.

Customer Xperience Audit

Quickly and easily see the map of the gap between what your customers want and and what you promise. Processes, procedures, people and profits.

Customer Conversation EavesdropCustomers don’t always give us information where and when we want it they just transmit. Listen in and learn about your business.

Live Line - Real Time Customer FeedbackGive customers an opportunity to tell think about their experience of your business, when they think it - 24/7.

‘How to turn your customers into your sales team’

Iven Frangi Dip Mktg, CSPCustomer Xperience Management

p. 61 2 9908 3333 | m. 0414 553333 | e. iven@cxm.com.au | www.cxm.com.au

April 30 2009

TEC 401

T a m w o r t h