Customer Centricity Combining Marketing, Brand & Workforce To

Supercharge Your Customer Experience Chris Brown & Scott Hamilton October 9 & 10, 2013 Webster University and Employers Group ENP Executive Labs

Executive Next Practices Institute

T

N t Next Practices…defined Ideas, processes, concepts and

solutions that move us beyond the “status quo”.

Not “how are others doing it best” but rather, “where do we go from here that represents a true fundamental

shift in value”…

Chris Brown, ENP-NextWORKS Customer Practice Leader & CEO MarketCulture

5

Our New Book

To be released January 2014

Company Experience & Outcomes

Increased Margins & Customer Responsiveness

Increased Share & Profit Improved Collaboration

& Opening of New Markets

6

Moved from flat to more than 10% profit growth for the past 3

years

Program designed to improve internal collaboration around customers

Improved customer satisfaction scores by 23%

Alignment to the Customer

7 Customer Centricity MRI™ - Audit Best Practices Next Steps

Importance and Measurement of Customer Centricity

8

CUSTOMER CENTRICITY

MEASURING CUSTOMER CENTRICITY

What is it?- What is driving it?– Why is it important?- Who has it?

Research Reveals 7 Disciplines

MPANY EXAMPLES

1

2

30min

30min

Major Trends Driving the Need for Customer Centricity

1.  Globalization – increased competition 2.  Power shift to consumers 3.  Expectations increasing - Apple 4.  Social Media – facebook/twitter 5.  Product Commoditization and Digitization 6.  Rapid technological change and innovation §  Mobile app disruption

7.  Demand for transparency – wiki leaks 8.  Need for higher employee engagement

9 CUSTOMER CENTRICITY MRI™ - Audit Best Practices Next Steps Q&A

Customer Centricity Defined – it is about culture

10 MRI™ - Audit Best Practices Next Steps Q&A

The capacity of an organization and its culture to understand, predict and respond to customer, market and competitor dynamics, demands and disruptions. Customer centricity must transcend individual departments and functions and be an integral part of the way all employees behave and perform.

“ CUSTOMER CENTRICITY

These trends led us to explore Customer Centricity…

The OPPORTUNITY

11 CUSTOMER CENTRICITY MRI™ - Audit Best Practices Next Steps Q&A

91% of companies claim to be customer focused. Only 10% of customers agree -Forrester Research 2012

“

Two parts to Successful Customer Centricity Programs

Team Culture/Behaviors

Alignment & Buy in

Customer Experience

Management, Tools +

Processes

True Customer Centricity

Customer Centric Behaviours

Customer Centric Behaviours Drive Business Growth and Profit

The Creation The Outcome

The Results

The Corporate Culture

Sales Revenue Growth Profit Growth Profitability

New Product Success

Customer Experience (Evolving)

Customer Satisfaction +

Advocacy (Changing)

MRI™ - Audit Best Practices Next Steps Q&A 13

CUSTOMER CENTRICITY

It takes 12 positive experiences to make up for an unresolved negative experience Understanding Customers, Ruby Newell-Legner

Why invest in Customer Experience?

The 6 laws of customer experience

1.  Every interaction creates a PERSONAL reaction

2.  We are SELF-CENTERED

3.  Customer understanding creates ALIGNMENT

4.  Only ENGAGED people create engaged CUSTOMERS

5.  We do what is MEASURED, REWARDED + CELEBRATED

6.  AUTHENTICITY can’t be faked §  Source: Adapted from The Temkin Group

Customer Experience Exercise

•  In pairs tell each other a story of your personal experience as a customer. Time 10 minutes.

§  Either a good experience or a bad experience

§  Note what sticks out in your mind as the main factors in creating the good or bad experience? List the one or two factors on the following chart.

§  Any lessons for your organization?

Customer Centricity And Business Performance

17 MRI™ - Audit Best Practices Next Steps Q&A

Market-driven firms are, on average, 31% more profitable than self-centered firms “

The Market Driven Organization: Understanding, Attracting, and Keeping Valuable Customers” George S. Day, Wharton School, University of Pennsylvania

CUSTOMER CENTRICITY

What do Top Firms Have in Common?

18 MRI™ - Audit Best Practices Next Steps Q&A

They exhibit a high level of “customer-centric” behaviour and decision-making

CUSTOMER CENTRICITY

#1 Imperative - Concept of Value

19 MRI™ - Audit Best Practices Next Steps Q&A

#1 Imperative in Customer Centricity Superior Customer Value

CUSTOMER CENTRICITY

Importance and Measurement of Customer Centricity

20

CUSTOMER CENTRICITY

MEASURING CUSTOMER CENTRICITY

What is it?- What is driving it?– Why is it important?- Who has it?

Research Reveals 7 Disciplines

ROADMAP TO CUSTOMER CENTRICITY

MPANY EXAMPLES

1

2

10min

15min

5min

5min

External Drivers

How do you measure Customer Centricity?

21 MRI™ - Audit Best Practices Next Steps Q&A

5Internal Enablers 2

... 7 Behaviours in Two Categories

CUSTOMER CENTRICITY

The External Drivers

22 MRI™ - Audit Best Practices Next Steps Q&A

Factors Descriptions Customer Insight The extent to which employees monitor, understand, and

act on current customer needs and satisfaction.

Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities.

Competitor Insight

The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses

Competitor Foresight

The extent to which employees monitor, understand, and respond to new market entrants and potential competitors.

Peripheral Vision

The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical)

CUSTOMER CENTRICITY

The Internal Enablers

23 MRI™ - Audit Best Practices Next Steps Q&A

Factors Descriptions Cross-Functional Collaboration

The extent to which employees interact, share information, work with, and assist colleagues from other work groups

Strategic Alignment

The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company.

CUSTOMER CENTRICITY

The OPPORTUNITY

24 CUSTOMER CENTRICITY MRI™ - Audit Best Practices Next Steps Q&A

2/3 of corporate strategy is never executed Of 2,000 large firms studied, 90% had detailed strategic plans, but 7 out of 8 failed to achieve profitable growth - AICD (Bain Consulting)

Links to Business Performance Outcomes

25 MRI™ - Audit Best Practices Next Steps Q&A CUSTOMER CENTRICITY

Factors Customer Satisfaction Innovation

New Product Success

Profit Growth Profitability

Sales Revenue Growth

Customer Insight ü  ü  ü  ü  Customer Foresight ü  Competitor Insight ü  ü  ü  Competitor Foresight ü  ü  Peripheral Vision ü  Strategic Alignment ü  ü  ü  ü  ü  ü  Cross-Functional Collaboration ü  ü  ü  ü  ü  ü 

The Market Responsiveness Index (MRI)™

§  A simple, web-based benchmarking system to assess your cultural capacity to win (a 35 item survey)

§  Measures your organization’s Customer Centricity and capacity to execute across the seven critical success factors

§  Empowers managers to transform organizations and drive measurable financial performance improvement

§  Proven to be highly effective in predicting of customer satisfaction, innovation, new product success and profitable growth

§  Tested and validated with 100+ companies across many industries

26 Customer Centricity MRI™ - Audit Best Practices Next Steps Q&A

Performance Examples from Real Companies

Circumplex graphics below, which are part of every MRI report, are samples from actual companies. Their relative scores closely correlate with weak and strong business performance metrics.

Strong Performer Weak Performer 27

Real Company Example – B2B Products

28 Customer Centricity MRI™ - Audit Best Practices Next Steps Q&A

2009 vs 2010

+ Verbatim Comments from Employees

Now rate your own business

Factors Descriptions Your Rating (1-10)

Customer Insight The extent to which employees monitor, understand, and act on current customer needs and satisfaction.

Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities.

Competitor Insight

The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses

Competitor Foresight

The extent to which employees monitor, understand, and respond to new market entrants and potential competitors.

Peripheral Vision

The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical)

Cross-Functional Collaboration

The extent to which employees interact, share information, work with, and assist colleagues from other work groups

Strategic Alignment The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company.

Step 1: Highlight which factor you think your business is strongest and weakest in (Refer back to your previous ratings) Step 2: Discuss your findings with your neighbor and answer these questions: 1. What are the implications? Refer to the links to business performance chart 2. What could you do to enhance the results? 3. How might this process be received in your own organization?

GROUP EXERCISE

The Value of “Experience” Measurable employee commitment,

productivity and innovation rise in direct proportion to how they experience a task

Engage – people must “experience” what it is you want to them to support. And.. Clearly define their role!

Measure What Matters to Customers

Line-of-sight metrics- Every process, every level

Implementation- Must be Experiential

34 Customer Centricity MRI™ - Audit Best Practices Next Steps Q&A

Next Steps

21st Century Competition is About Customer Centricity

‣ Step 1: Phone Assessment and do a pilot MRI™ to measure your team’s Customer Centricity

‣ Step 2: Discuss the results, identify new initiatives to improve organizational Customer Centricity

‣ Contact info@enpinstitute.com www.enpinstitute.com

‣ Chris Brown 831.917.2998

‣ Scott Hamilton 888.857.9722