art - acknowledgement, respect & trust
DESCRIPTION
ART will drive extraordinary customer service - using real words and action rather than nonsense like "customer centricity"TRANSCRIPT
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Breakaway Service Breakaway Service PerformancePerformance
John McKean, Paul KellJohn McKean, Paul KellCenter for Information Based CompetitionCenter for Information Based Competition
www.informationmasters.comwww.informationmasters.comjohnsmckean@[email protected]
1-937-427-88751-937-427-8875
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Customers Don’t Want Relationships…
never have, never will…
Customers Don’t Want Relationships…
never have, never will…Voted – BEST SESSION at Largest Banking Conference in
the World“This guy must have felt like Gandhi at a Soldier of Fortune rally. But he
was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week”
Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One)
Voted – BEST SESSION at Largest Banking Conference in the World
“This guy must have felt like Gandhi at a Soldier of Fortune rally. But he was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week”
Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One)
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Customer Service BasicsCustomer Service BasicsDon’t want Relationships, but consistent human
treatment…“Give me the best product, at the right price (not
cheapest) and treat me like a human being in the process of selling and servicing that product”
Don’t want Relationships, but consistent human treatment…
“Give me the best product, at the right price (not cheapest) and treat me like a human being in the process of selling and servicing that product”
What Customers remember What Customers remember
Product/PriceProduct/Price 30%30%
Sales/MarketingSales/Marketing 15%15%
Repair/ServiceRepair/Service 30%30%
Initiation/InstallationInitiation/Installation 10%10%
BillingBilling 15%15%
100%100%
70%70%
What they remember…What they remember…
……determined by determined by treatment during treatment during
interinteractionsactions
……from from product/priceproduct/price
30%30%
1.1. Customers remember interactionsCustomers remember interactions2.2. Specifically, how “human” they were…Specifically, how “human” they were…
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Bell Labs Scientists’ study of Bell Labs Scientists’ study of 300,000 customers300,000 customers
What they remember What they remember Resolving ProblemsResolving Problems Excellent RatingExcellent Rating
Average excellence ratingsAverage excellence ratings 51%51%
Fix within 2 hoursFix within 2 hours 81%81%
Takes longer than 2 hoursTakes longer than 2 hours 74%74%
Takes longer than a dayTakes longer than a day 46%46%
Fix within two hours, tell afterFix within two hours, tell after 84%84%
Fix within two hours, tell duringFix within two hours, tell during 90%90%
AT&T/Bell Labs
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It’s not what “Westpac does”, but how It’s not what “Westpac does”, but how what Westpac does… makes them feelwhat Westpac does… makes them feel
Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly
Top sales people don’t sell better, they treat better…
Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly
Top sales people don’t sell better, they treat better…
The Human Interaction Factor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Resources applied to"Humanness" of Interaction
Buying Influence of "Humanness"of Interaction
The Human Interaction Factor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Resources applied to"Humanness" of Interaction
Buying Influence of "Humanness"of Interaction
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Human Touch as a ScienceHuman Touch as a Science
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1.1. Behavioral - Identify Buying Emotions that most Behavioral - Identify Buying Emotions that most influence decision to choose one company over influence decision to choose one company over anotheranother
AAcknowledgement, cknowledgement, RRespect & espect & TTrust (ART)rust (ART)2.2. Operational – 4 High Order Human Touch SciencesOperational – 4 High Order Human Touch Sciences
a)a) Communicate more humanlyCommunicate more humanlyb)b) Execute as definable processExecute as definable processc)c) Consistency across business functionsConsistency across business functionsd)d) Technology that humanizes, not dehumanizesTechnology that humanizes, not dehumanizes
1.1. Behavioral - Identify Buying Emotions that most Behavioral - Identify Buying Emotions that most influence decision to choose one company over influence decision to choose one company over anotheranother
AAcknowledgement, cknowledgement, RRespect & espect & TTrust (ART)rust (ART)2.2. Operational – 4 High Order Human Touch SciencesOperational – 4 High Order Human Touch Sciences
a)a) Communicate more humanlyCommunicate more humanlyb)b) Execute as definable processExecute as definable processc)c) Consistency across business functionsConsistency across business functionsd)d) Technology that humanizes, not dehumanizesTechnology that humanizes, not dehumanizes
High-Order HT CommunicationsHigh-Order HT CommunicationsHigh-Order HT CommunicationsHigh-Order HT Communications
7 Steps of Customer Service
(start & end is human, middle is business)
1. Thank you – recognize their effort & concern
2. Sorry - acknowledge emotion is valid
3. Listen carefully – collect/clarify facts
4. Fix problem now or come to agreement
5. Ask for suggestions – engage in solution
6. Administrative - log complaint & reimburse
7. Follow-up – ensure closure
7 Steps of Customer Service
(start & end is human, middle is business)
1. Thank you – recognize their effort & concern
2. Sorry - acknowledge emotion is valid
3. Listen carefully – collect/clarify facts
4. Fix problem now or come to agreement
5. Ask for suggestions – engage in solution
6. Administrative - log complaint & reimburse
7. Follow-up – ensure closureCopyrightCopyright
©©CIBCCIBC
Wendy EggletonWendy Eggleton
High-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT Processes
Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint
1. Room service was slow
2. Room service deliverers had long waits for elevators
3. Houseman who supplied Maids w/linen tied up elevators
4. Linen shortage required them to steal from other floors
5. Initial hotel budget created linen shortage (2 years ago)
6. Decision to cut linens by Founder and CEO
7. Solution – ordered one more “parr” of linens
Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint
1. Room service was slow
2. Room service deliverers had long waits for elevators
3. Houseman who supplied Maids w/linen tied up elevators
4. Linen shortage required them to steal from other floors
5. Initial hotel budget created linen shortage (2 years ago)
6. Decision to cut linens by Founder and CEO
7. Solution – ordered one more “parr” of linensCopyrightCopyright
©©CIBCCIBC
Horst SchultzeHorst Schultze
Human Touch and the Bottom line
By studying human interactions as a process…
• If fulfilled guests went from 92% to 97% over 2 years
– 4 million room nights a year
– If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy
– +8% occupancy rate = $300 mil. in additional profit
– $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction
Human Touch and the Bottom line
By studying human interactions as a process…
• If fulfilled guests went from 92% to 97% over 2 years
– 4 million room nights a year
– If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy
– +8% occupancy rate = $300 mil. in additional profit
– $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction
High-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT Processes
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High-Order HT TechnologyHigh-Order HT TechnologyHigh-Order HT TechnologyHigh-Order HT TechnologyFatal Technology Assumptions• We’ll “save money” by pushing customers to
technology channels and lose nothing• A single view of the customer is not critical• Asking for personal info before trust is OK• Design w/o considering emotional content• Expecting they'll tolerate a few “bugs”• Design for our efficiency, convenience, and control
and they won’t lose theirs• Design for task execution alone, not to enable more
human interactions
Fatal Technology Assumptions• We’ll “save money” by pushing customers to
technology channels and lose nothing• A single view of the customer is not critical• Asking for personal info before trust is OK• Design w/o considering emotional content• Expecting they'll tolerate a few “bugs”• Design for our efficiency, convenience, and control
and they won’t lose theirs• Design for task execution alone, not to enable more
human interactions
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The Employee Connection“Treat employees as you would have
them treat customers”
The Employee Connection“Treat employees as you would have
them treat customers”
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Humanizing Humanizing BehaviorBehavior
LeadershipLeadership
Dehumanizing Dehumanizing BehaviorBehavior
Humanizing Humanizing BehaviorBehavior
EmployeesEmployees
Dehumanizing Dehumanizing BehaviorBehavior
Profitable Profitable BehaviorBehavior
CustomersCustomers
Unprofitable Unprofitable BehaviorBehavior
80% How they treat /
how they are treated
70% how they treat/
“Decision to Buy”
Treatment-Chain EconomicsTreatment-Chain Economics
Based on 50,000 Employees, 6 business units, over 2-3 yearsBased on 50,000 Employees, 6 business units, over 2-3 yearsQuarter lag on stock priceQuarter lag on stock price
Employee = Customer = Shareholder Fulfillment
$41
$43
$45
$47
$49
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2ndQtr
3rdQtr
4thQtr
1stQtr
2ndQtr
3rdQtr
4thQtr
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Sh
are
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65%
70%
75%
80%
85%
90%
% F
ulf
illm
ent
Share price Employee Fulfillment Customer Fulfillment