FUTURELAB

Breda

May 10, 2012

a more customer friendly place

On a mission to make the world

FUTURELAB

@FLB_alainthys

The problem I have always had with customer experience thinking

Too much fluffy stuff

“Let’s spread love & hug” “Let’s be like Disneyland” “Let’s go WOOOOOWW!!”

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The CEO Dilemma

The problem I have always had with customer experience thinking

The CEO dilemma: I get paid in Euros, not happy faces

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While I couldn’t translate it into ROI

My intuition told me something was there

The same coffee beans

The futures market (nov 2011)

in a package at the grocery store

at Nespresso

in a paper/plastic cup from a machine

from a machine in a theme park

in a cup in a big city café

at a deluxe restaurant

during my honeymoon with a glass of

100 year old Armagnac

Cost per cup

€ 0.01

€ 0.075

€ 0.40

€ 1.00

€ 2.20

€ 2.50

€ 5.00

I haven’t got a clue!

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And then came Fred Clarity at last • First exposure at Philips

• Deepdive into the Net Promoter® System

• Heavy promoter of the approach.

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I became a customer evangelist So full of excitement that there was a business case

Customers are important.

Really, they’re important.

They’re very very very important!

Every company (and employee) is customer-centric But the world decided to surprise me …

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The bad news

Even though Fred’s colleagues disagreed

80% of CEO’s believe they offer a superior

customer experience.

8% of their customers agree.

Source: Bain & Company

• The wrong perspective

• Rolling the dice

• Leadership not walking the talk

So I went digging for the reasons

Three key barriers to customer-centricity

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From a business perspective

Customer experience gets managed “on top of” …

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From a customer perspective

“The experience IS the product” (Peter Merholz)

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To capture this money, we need a different perspective

“The experience IS the product” (Peter Merholz)

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From a customer perspective

“The experience IS the product” (Peter Merholz)

“You press the button,

we do the rest”

George Eastman

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From a customer perspective

“The experience IS the product” (Peter Merholz)

Famous for overpriced, underspec’d

devices with poor battery life.

It just works

A low performance gaming

console with few titles.

This is cool!

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TV’s bought on a Saturday have more detractors A real life case

17

The bottom line

The one with the best TOTAL “experience” wins

Going direct to create the right emotion at every touchpoint allows

Nespresso to charge up to 4x the price of other high street brands

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The bottom line

The one with the best TOTAL “experience” wins

There’s more

Leave the bank with

your card

Have a coffee next

door if you need to

wait (with alerts)

Friendly & smiling

recruitment policy

25% more expensive

Overcoming the barrier

Experience doesn’t go “on top”, it IS the product

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• The wrong perspective

• Rolling the dice

• Leadership not walking the talk

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So I went digging for the reasons

Three key barriers to customer-centricity

Three key barriers to customer-centricity

Most companies roll the dice on managing CX

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A Structured Approach

22

30 second group brainstorm

Which are the customer steps when going on a holiday?

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23

30 second group brainstorm

Which are the customer steps when going on a holiday

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1. I dream of going on holiday

2. I research my holiday

3. I plan my holiday

4. I select my holiday

5. I purchase my holiday

6. I receive travel documents & tickets

7. I anticipate departure

8. I prepare my trip

9. I travel to my destination

10. I discover my destination

11. I experience my destination

12. I record my memories

13. I share my experience

14. I travel back home

15. I share my memories

We show that we value our

customers by serving them

well, putting their needs and

interests at the center of

everything we do.

(from the AOL mission statement)

Case: AOL

Rolling the dice: extreme case

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Bad

employee?

Question:

Case: AOL

It ain’t over until the last employee/touchpoint is managed

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Every employee on the planet cares about the customer Again … this is not about ill will

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The business gets in the way

But reality is that … • No customer contact

• Misaligned KPI’s

• Internal inefficiency cuts time

90%

Collect

Customer

Feedback

Alert Staff

to Findings

50%

Make

decisions

using

insights

30%

Deploy

improve

10%

Inform

customers

of change

5%

Sourc

e: B

upa Inte

rnational, 2

009

“Most businesses are optimised for themselves,

not for the customer.” Geert Van Kuyck, CMO Philips

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If you don’t manage the whole experience, you roll the dice.

Any disconnect can break your business

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The REAL customer experience

62% of US/UK consumers believe

that the quality of service depends on

whoever serves them.

One brand, two dealers… If you don’t manage the whole experience, you roll the dice.

• 6 month delivery delay

• Wife gets insulted

• Threat to cancel = car appears

• Sunroof doesn’t open (but that’s normal)

• Loaner car is dirty 2nd hand car at 1/3 price

• Invoicing is a mess

• …

• While they keep mailing you promotions

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Overcoming the barrier

Don’t roll the dice, but manage “every” touchpoint

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• The wrong perspective

• Rolling the dice

• Leadership not walking the talk

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So I went digging for the reasons

Three key barriers to customer-centricity

Leadership not walking the talk

Many executives say they want to be customer-centric

THE CUSTOMER IS AT THE

CENTRE EVERYTHING WE DO!

Our satisfaction numbers matter!

Do what is right for the customer!

Let’s have an off-site workshop!

Let’s have a customer day!

Leadership not walking the talk

But their behaviour says something else

THE CUSTOMER IS THE LAST THING WE

TALK OR THINK ABOUT.

I know the product is outdated, but push it, we

need to hit the quarterly numbers

Can’t we replace our call-centre with an IVR.

All these people cost money!

Can we lock accounts into only buying their

service support from us?

I don’t have time to meet with customers.

“I’m out of here in 2 years anyway”

People copy behaviours, not words

The organisation will learn fast

Customer oriented behaviour

= headache

Grab the money/process focus

= easier silo life, career, bonus, …

But they don’t lose their common sense.

And before you know it, you’ve got a problem

Would you recommend the bank to friends /family?

32% No 28% conditionally

Would you recommend the bank as an employer?

39% No 30% Yes

N=25,000 (out of 59,000)

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“you know what those

idiots did at work”?

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Are you really setting the example, or your talking about the customer?

Would your people recommend? Act? 1 employee

1st degree: 150

2nd degree: 22,500

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Leadership not walking the talk

What is really required.

Overcoming the barrier

Don’t talk about the customer … set the example

• Realise that the experience is the product

• Manage every single touchpoint

• Be prepared to walk the customer talk

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To conclude

Overcome the barriers in your business

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And finally

What is the “one thing” you will do?

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Twitter: @FLB_alainthys

And now comes Fred Thank you …

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