©

The Journey to Customer Centricity Where to Commit your Focus

Medallia Experience • 2017 • Terry Cain •Pinwheel Partners

©

The next 40 minutes….we will have…

InspirationTo Start the Journey

Prioritize UsingThe Pinwheel

A common Language Customer Centricity

CopyrightPinwheelPartners2017AllRightsReserved

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

Define Journey

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

The road is not linear…

CopyrightPinwheelPartners2017AllRightsReserved

©CopyrightPinwheelPartners2017AllRightsReserved

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

Customer Program Buzz Words….

• Satisfaction

• Delight

• Loyalty

• Engagement

• Obsession

• First

• Excellence

• Experience

• Centricity

• Success

CopyrightPinwheelPartners2017AllRightsReserved

©

How do You define Customer Centricity?

Is customer centricity cultural?

CopyrightPinwheelPartners2017AllRightsReserved

©

Source:Price/Jaffe

©

7 Key Questions• 1. What is the Customer Experience you are trying to deliver? • 3. What drives and destroys value for your organization? • 7. How Customer centric is your organization?

ColinShaw,BeyondPhilosophy.com

CopyrightPinwheelPartners2017AllRightsReserved

©

A Few Examples for Customer Centricity1. Start each meeting with a customer success story

2. Absence of cynicism towards any customer

3. Employee attitudes that exemplify service externally and internally

4. Meetings that include customer voice or advocacy

5. Rewards/Recognition that support customer effort

6. Communications that reflect customer needs

7. Processes that are co-developed with customers

8. Structure easy to navigate for customers

9. Customer Experience Design capability

10. Customer presence when designing experience

11. Employee communication/videos customer stories

12. Evidence that great service is being performed

13. Metrics reflecting the rise in customer engagement

14. Senior Leadership Keeps Customer Top of Agenda Period.

CopyrightPinwheelPartners2017AllRightsReserved

©

“ When someone comes to me with a cost saving

idea I do not immediately say yes, I ask what is the effect on the customer!”

Herb Kelleher

CopyrightPinwheelPartners2017AllRightsReserved

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

The Age of the Customer

Source:2011,ForresterResearchInc.CopyrightPinwheelPartners2017AllRightsReserved

©

Research Says

• It costs five times more to attract a new customer than it does to keep one you already have.

• At any given time, as many as one customer in four is dissatisfied enough to start doing business with someone else—can you think of one?

• Only about one in twenty-five customers who is dissatisfied enough to leave will tell you they are leaving!

From Delivering Knock-Your-Socks-Off Service, Third Edition, Performance Research Associates

CopyrightPinwheelPartners2017AllRightsReserved

©

Customer Experience Leaders Make More Money!vs. Laggards

Five Year Portfolio Cumulative ReturnSource: Forrester Research, 2012 Customer Experience Index

IMPACT

Customer Experience Leaders

S&P 500 Customer Experience Laggards

22.5%

-1.3%

-46.3%

CopyrightPinwheelPartners2017AllRightsReserved

©

The Service Profit ChainPutting the Service-Profit Chain to Work James L. Heskett Gary W. Loveman W. Earl Sasser, Jr. Leonard A. Schlesinger Thomas O. Jones

Enthusiastic, Engaged Employees

Shareholder ValueCreation

LeadershipActions

SatisfiedCustomers

LoyalCustomers

It starts with understanding this relationship

CopyrightPinwheelPartners2017AllRightsReserved

©

Employee Engagement Becomes Harder

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

Philosophy Sellproductstoanyonewhobuys

Servecustomers;alldecisionsstartwithcustomer(outsidein)

Transaction-orientedBusinessOrientation Relationship-oriented

Structure Customersegments,customerrelationshipmanagers

OrganizationalFocus

Internalfocus,newproductdevelopment,marketshare,customer

ownedbymarketing

Externalfocused,customerrelationshipdevelopment,profitabilitythrough

customerloyaltyandvalue,employeesarecustomeradvocates

PerformanceMetrics

Newproducts,profitbyproduct

Productgroups,productmanagers

Customerlifetimevalue,shareofcustomers’wallet

CustomerKnowledge

Customerdataacontrolmechanism

Customerdataandcustomersarevaluableassets

ProductCentricity CustomerCentricity

Is your culture ?

Shah,D.,Rust,R.,Parasuraman,A.,Staelin,R.&Day,G.(2006).ThePathtoCustomerCentricity.JournalofServiceResearch

©Shah,D.,Rust,R.,Parasuraman,A.,Staelin,R.&Day,G.(2006).ThePathtoCustomerCentricity.JournalofServiceResearch

Philosophy

BusinessOrientation

Structure

OrganizationalFocus

Internalfocus,newproductdevelopment,marketshare,customer

ownedbymarketing

Externalfocused,customerrelationshipdevelopment,profitabilitythrough

customerloyaltyandvalue,employeesarecustomeradvocates

PerformanceMetrics

Newproducts,profitbyproduct

Customerlifetimevalue,shareofcustomers’wallet

CustomerKnowledge

Customerdataacontrolmechanism

Customerdataandcustomersarevaluableassets

ProductCentricity CustomerCentricity

Abouthowmanygreatexperienceswecreated,howmanyliveswetouched,howmanypeoplewe

served

AbouthowmuchweSoldandHowmuchMoneyweMade

Is your culture ?

©

Culture Working Definition

cul·tureˈkəlCHər/nounnoun: culture11. the arts and other manifestations of human intellectual achievement regarded collectively.

BIOLOGYverb:culture;3rdpersonpresent:cultures;pasttense:cultured;pastparticiple:cultured;gerundorpresentparticiple:culturing1.maintain(tissuecells,bacteria,etc.)inconditionssuitableforgrowth.f

How we really do things around here!

(What happens when no one’s looking?)

CopyrightPinwheelPartners2017AllRightsReserved

©

Sick of Peter Drucker?

CopyrightPinwheelPartners2017AllRightsReserved

©

Or the Fact That he is Right Since 1953!!!

“Transformers” has low success except the #1 grossing movie of 2007

CX Investment makes improvement in few companies overall in America

Gartner Group reports that for major corporate systems investments: • 28% are abandoned before completion • 46% are behind schedule or over budget • 80% are not used in the way they were intended to be or not used at all six months after installation M&A

Bottom Line: Change is a cultural problem!

If growing means change, then growth is a cultural problem

CopyrightPinwheelPartners2017AllRightsReserved

©

New ProcessesNew StructureNew MetricsCULTUREEATS NEW STRATEGYFOR BREAKFAST

©

Customers Experience ?Rather than focusing down the operations area

Engineering/ Product

DevelopmentSales Operations/

Manufacturing Marketing Quality Finance Supply Chain

FocusAcrossSilos

Source:CustomerBliss,2014

©

©

Ingrid Lindberg Chief Customer - www.chiefcustomer.com

©CopyrightPinwheelPartners2017AllRightsReserved

The culture is the most powerful asset in business!

CopyrightPinwheelPartners2017AllRightsReserved

©

Establish “Journey”

Define Customer Centricity

Why is This Worth Doing?

What Are the Barriers?

Where Do We Focus?

CopyrightPinwheelPartners2017AllRightsReserved

©

10% of conflicts are due to difference in opinion. 90% are due to wrong tone of voice.

CopyrightPinwheelPartners2017AllRightsReserved

©

Delivering the Customer Experience

“If you’re not serving the customer, your job is to be serving someone who is.”- Jan Carlzon

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Coming Soon! Strategy vs. Culture Who Wins?Improving Your Odds for Change

CopyrightPinwheelPartners2017AllRightsReserved

CONTACT:TerryCainterry@pinwheel.partnersPHONE:602-315-5268

©

Customers as Most Important….Culture is the Resource for Them..

to we are all about building

TRUSTWith each other, our employees, partners, customers

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Thanks go to Avnet America, Europe, Asia, WPCarey CSL MBA Students, CSL Attendees

The next pages are a compilation of various sessions defining customer centricity….don’t overwhelm yourself with trying to do everything but pick the one that best fits into your culture and advances your cause!

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Customer-Centric Cultures:Defined by the Faculty, Executives, MBA Students• Employees are empowered to serve• Employee’s role is malleable to meet customer needs • Measurements on maximizing customer yields• All employees live in the customer moment • All employees see alignment with customer’s need and voice• Employees aligned: Sr., Mid, Front all on same page• Multiple measures of customer needs• Balance on transactional/relational excellence• Build trust with service recovery consistently

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Customer-Centric Culture Training Discussion• Alignment to “UN-SILO” the corporation• Analytics to action: risk taking• Deal with ambiguity• Inclusive• Incubation test kitchens include customers in experience designs• Designed guiding principles for decision making

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Customer-Centric Cultures:Questions to Ask• Did you fail enough? Learn?• Are we asking 20 questions from the data?• Is there transparency of the customer data?• Constant learning and assessments• Team atmosphere, “we are all delivering the customer experience.”• Cross Functional Customer included experience designs

CopyrightPinwheelPartners2017AllRightsReservedCopyrightPinwheelPartners2017AllRightsReserved

©

Thank You