Download - Rick DeLisi's the effortless experience
The Effortless Experience Conquering the New Battleground
for Customer Loyalty
Presentation to:
Nuance Annual Customer Service Summit
RICK DELISI, Co-Author
© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHAT IS LOYALTY?
■ Repurchase
Q: What % of your customers are loyal TODAY?
■ Increased Spend / Share of Wallet
■ PWoM / NWoM
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THREE QUESTIONS THAT GUIDED
OUR RESEARCH
What impact do
customer service
interactions have
on a customer’s
future loyalty?
1
What are the things
customer service
can do to
drive loyalty?
2
How can service
improve loyalty
while still
reducing
operating costs?
3
Q: What do most companies believe they need
to do in order to create greater loyalty?
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
HAVE YOU SEEN THIS GIRAFFE?
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE MOMENT OF “WOW”
A strategy of “delight”
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
OUR STUDY IN BRIEF
■ 125,000+ customers surveyed to understand drivers of loyalty
■ 5,000+ customer service reps surveyed to understand
drivers of performance
■ 100+ companies analyzed to understand impact of policies
and processes
■ 3 major findings
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
FINDING 1: DELIGHT DOESN’T PAY
Less
Loyal
More Loyal
Below Customer
Expectations
Meets Customer
Expectations
Exceeds Customer
Expectations
The Perception
The Reality
• “Delight” increases costs by 10-20%
• “Delight” only happens 16% of the time
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
1. 00x
3.97x
More Loyal
More Disloyal
Drivers of Disloyalty
■ Repeat contacts
■ Channel switching
■ Transfers
■ Repeating information
■ Robotic service
■ Policies and processes
customers have to endure
■ “Hassle factor”
FINDING 2: SERVICE DRIVES DISLOYALTY
Customer Service Impact on Loyalty
Source: CEB analysis.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
1. 00x
3.97x
More Loyal
More Disloyal
Drivers of Disloyalty
■ Repeat contacts
■ Channel switching
■ Transfers
■ Repeating information
■ Robotic service
■ Policies and processes
customers have to endure
■ “Hassle factor”
Customer Effort
FINDING 3: MITIGATE DISLOYALTY
BY REDUCING EFFORT Customer Service Impact on Loyalty
Source: CEB analysis.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE BUSINESS CASE FOR
THE EFFORTLESS EXPERIENCE
Low Effort High Effort
1%
81%
Low Effort High Effort
88%
4%
Low Effort High Effort
Repurchase
94%
4%
Low-Effort Experience
High-Effort Experience
Overall Disloyalty
9%
96%
Source: CEB analysis.
Increased Spend/
Share of Wallet
Negative WOM
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CONCLUSION:
What do you want your customers to SAY
following a service interaction?
Source: CEB analysis.
We used to THINK it was:
Wow, that company really went out of their way
to delight me!
But now we KNOW it is:
Wow, that company really went out of their way to make it so much easier
for me to solve my problem!
LOW Effort Service = HIGH Customer Loyalty
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF
LOW-EFFORT SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF
LOW-EFFORT SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHICH WOULD YOU RATHER USE?
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMERS DON’T WANT TO
TALK TO YOU
Company Perception Actual Customer Preference
1. 0x
2.5x
Web Preference
Phone Preference
1. 0x
Web Preference
Phone Preference
1. 0x
Source: CEB analysis.
■ 3-5 years ago, 66% of customers primarily relied on the phone channel
■ Today, only 28% of customers report that they primarily rely on the
phone channel
Pattern largely holds
across issue types
and demographics
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
IT’S NOT ABOUT GETTING THEM TO GO
First Contact Channel
Phone
Web
57.7% of phone callers
first went to the
company’s Website
Source: CEB analysis.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
IT’S ABOUT GETTING THEM TO STAY
First Contact Channel Concurrent Channel Usage
Phone
Web
Just Phone
Web and Phone
35.5% of phone callers were on
the company’s Website while
talking to a representative
57.7% of phone callers
first went to the
company’s Website
Source: CEB analysis.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER
Conventional Wisdom:
∞ × ∞ We’ve got to come up with a way to allow:
every customer to solve
every issue in
every channel.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
CUSTOMER CHOICE IS NOT THE ANSWER
84%
Value EASE Over Choice
■ Want fast resolution without
bouncing around channels
■ Prioritize low effort over
channel choice
16%
Value CHOICE Over Ease
■ Want issue resolved in
their preferred channel
■ Prioritize channel choice
above all else
Source: CEB analysis.
The vast majority of customers don’t CARE
what channel they have to use, they just want
the problem to go away. Now.
GUIDE them to the channel that is fastest and easiest.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
GUIDANCE IN ACTION: The Virtual Concierge
Source: Amazon.com.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
MYTHS ... BUSTED
Most think... The reality is...
customers want to
call for service.
most customers prefer to
self-serve.
the big challenge is getting customers
to try self-service
it’s hard getting customers to stay in
self-service.
customers demand more choice
in self-service.
customers demand simplicity and
guidance.
Source: CEB analysis.
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF LOW-EFFORT
SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
“Have I fully resolved
your issue today?”
THE WORST QUESTION A REP CAN ASK
Companies think 76.7%
of customer issues are
resolved in one contact
But customers claim only 40%
of their issues are
resolved in one contact
Source: CEB analysis.
Unnecessary callbacks = HIGH customer effort
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
WHY DO CUSTOMERS CALL BACK?
54%
Implicit Issues Explicit Issues
■ Staff mistakes
■ System or process failures
■ Adjacent issues
■ Experience issues
Drivers of
Callbacks
Source: CEB analysis.
46%
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
ONE STEP AHEAD
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE FOUR PILLARS OF LOW-EFFORT
SERVICE
Frontline Control Experience Engineering
Next Issue Avoidance Channel Stickiness
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
THE CUSTOMER EFFORT SCORE 2.0
Strongly
Disagree
Disagree Somewhat
Disagree
Neither
Agree Nor
Disagree
Somewhat
Agree
Agree Strongly
Agree
The company made it
easy for me
to handle my issue
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
??
4%
67%
THE CUSTOMER EFFORT SCORE 2.0
…and a way for service functions to positively impact Net Promoter Score®
A great way for service functions to
detect potential disloyalty…
Strongly
Disagree
Disagree Somewhat
Disagree
Neither
Agree Nor
Disagree
Somewhat
Agree
Agree Strongly
Agree
The company made it
easy for me
to handle my issue
Overall Disloyalty Percent of Detractors
High Effort Low Effort High Effort Low Effort Source: CEB analysis.
??
9%
96%
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© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
For more information:
www.effortless-experience.com
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