11.29.11 John Goodman - fundraising123.orgNov 29, 2011 · With John Goodman Audio for this event...
Transcript of 11.29.11 John Goodman - fundraising123.orgNov 29, 2011 · With John Goodman Audio for this event...
Nonprofit 911:Creating a Great Donor and Client
Experience
With John Goodman
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Today’s Speaker:
John Goodman
Creating an Great Donor and Client Experience
Network For Good WebinarJohn Goodman, Vice Chairman, TARPNovember 29, 2011
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Agenda
• Understand misperceptions about donors and clients
• Understand the impact great service can have on donors, clients and employees
• Specific actions you can take at little or no cost to enhance revenue and efficiency
• Quick check list for grading your organization
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About TARP
• Founded in 1971—40 years of customer experience leadership– White House Complaint Studies 1970s-80s (instigated 800#s and GE
Answer Center)– Assisted 6 Baldrige Winners and 43 Fortune 100 Companies– Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and
“word of mouse” (eCare and Click & Mortar studies 1999)
• Offices in Wash., D.C. and London • Credited with developing the approach
for quantifying the impact of service and quality on revenue for organizations like USO, Neiman Marcus, MoMA, LL Bean, Toyota/Lexus/Scion, Apple, ASTD, Limited Brands, Ritz Carlton, US Green Bldg Council, National Geographic and Chick-Fil-A.
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Customers and donors will:
Use again
Use or donate more
Tell others to use or donate
Try your other products & services
+ =DOING
THE RIGHT JOB
RIGHT THE FIRST TIME
MAXIMUM CUSTOMER
SATISFACTION & LOYALTY
ImprovedProduct & Service
Quality
Respond toIndividual Customers
Identify Sourcesof Dissatisfaction
Conduct RootCause Analysis
Feedback onPrevention
EFFECTIVECUSTOMERCONTACT
MANAGEMENT
Formula For Maximizing The Customer Experience
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Ten Myths About Service Existing in Most Organizations
1. Employees are the cause of most dissatisfaction 2. It costs too much to give great service, good is good enough.3. If donors, members or clients have problems, they tell us.4. We should aim to always exceed customer expectations5. Answering the phone really fast is the key to success6. People always prefer talking to people7. We’re a non-profit, we cannot tailor services.8. The customer is always right9. Price and cost cutting is the key to success10.We’re at 90% satisfaction – let’s declare victory!
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Riding the Wave of Customer Experience Management: Six Big Ideas
1. Staff don’t causes most customer dissatisfaction –development, products and processes do
2. The revenue and word of mouth implications of great service are 10-20X its cost
3. An effective Voice of the Customer tells you exactly what to fix
4. People are still paramount – making the front line successful
5. Deliver technology that customers will enjoy –delivering psychic pizza via any channel
6. Sensibly creating remarkable delight
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Employees Do Not Cause Most Customer Dissatisfaction
- Fails to followpolicy
The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*
Customer20%-30%
Employee20%
- Wrong expectations- Customer error
-Fails to followpolicy
-Attitude
Company 40%-60%- Products and servicesdon’t meet expectations
- Marketing miscommunication- Broken processes
Poorly designed products,processes, and marketingcreate most unmet expectations. Further, employees are often notequipped with effective responses to problems.
Customer expectationsmust be set and they mustbe educated on howto avoid problemsand surprises.
*Finding based upon TARP analysis problem cause data in over 200 consumer and B2B environments.
At least 30% of
contacts are preventable
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Customer Expectation: Key Factors Driving Satisfaction• No Unpleasant Surprises• If Trouble Encountered
– Accessibility, taking ownership– Apology– Clear, believable explanation – Creating an emotional connection rather than just
courtesy– Timeliness and keeping promises
• Handle on First Contact Results in 10% Higher Satisfaction and 50% Lower Cost
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TARP’s Enhanced Tip Of the Iceberg With Social Media
Non complaints are due to:•Hopelessness•Fear•Where?
Ratio of complaints to problems is “the multiplier”, usually 1:20-1:200
Misleading or disrespectful actions do four times as much damage
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Challenges for The Non-Profit Manager
• 75-90% of members, donors and clients don’t complain upon encountering a problem
• Staff often need special training and consistent explanations to handle complaints and inquiries. Lack of skills result in failure to acknowledge problems
• You must understand donor and member experience and the issues that most contribute to lost revenue and negative word of mouth – same with delighters
• You need a unified client, donor and member experience strategy, from website, welcome and payments to education on benefits and avoiding problems, to service delivery and feedback
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1. Prevent Problems By Setting Proper Expectations
• Welcome packages • Welcome calls• Encourage questions before customers get
into trouble• Reconnecting
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2. Get CFO Support by Quantifying the Impact of Problem Experience on Loyalty (example)
IQuestion/problem
experience
II Contactbehavior
IIIContact handling
ClientsDonors
Volunteers
No Question/problem
experience70%
Question/problem
experience*
30%
IVMarketimpact
Non-contactors
76%
Satisfied1
34%
Mollified2
22%
% Definitely Will
Recommend
69%
39%
74%
42%
32%Dissatisfied3
43%
Word of
Mouth**
---
2.9
1.7
4.4
5.5
% Definitely Will
Keep Donating
82%
42%
86%
42%
22%
% Very Satisfied with
ABC
81%
40%
82%
52%
35%
Contactors24%
* In the past 6 months** Average number of friends/colleagues told about the experience with ABC1 Top box (i.e., I was completely satisfied)2 Second and third box (i.e., I was not completely satisfied, but the action taken was acceptable and I was not completely satisfied, but some action
was taken)3 Fourth and fifth box (i.e., I was not at all satisfied with the action taken and I was not at all satisfied because no action was taken)
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=
=
=
=
x xx
=
350
1530
3060
7,870
12,810Total members at risk
35,000Members
withproblems
20%Dissatisfied
Many notrepurchasing
Some notrepurchasing
50%Satisfied
Almost allrepurchasing
50% Do notcomplain
50%Complain
30%Mollified
Some notrepurchasing
Estimating Members At Risk Due to Problems and How They Are Handled
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Negative Word Of Mouth Can Trump Marketing
10%delighted
70%satisfied
Telltwo
Tell one
=
=
2,000
7,000
-3,000
10,000customers
Example calculation of potential impact
20%dissatisfied
Tell six
= -12,000
20% dissatisfaction can counter 80% satisfaction
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Great Service Is A Word of Mouth Management Mechanism
10%delighted
80%satisfied
Telltwo
Tell one
=
=
2,000
8,000
4,000
10,000customers
Example calculation of potential impact
10%dissatisfied
Tell six
= -6,000
10% decrease in dissatisfaction results in net positive WOM
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Reduced Problems Reduce Sensitivity to Price
10%
22%
46%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No problems 1 problem 2 to 5 problems 6 problems ormore
Percent of customers dissatisfied with fees rises with number of problems.
2020
3. The Call Center Can Become the Focal Pointof the Voice of the Customer on Customer Experience• Customer surveys• Customer contact and interaction data• Internal operations process, quality data• Employee input• Together, these elements are used to identify
opportunities for product and service quality improvement
+ = Total view of the customer
experience
Internal process and quality data and employee
input
+ Customer contact and
interaction data
Surveys of customer
satisfaction and loyalty
Take The Role Of Chief Customer Officer
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4. Creating A Culture of Success Reduces Turnover
Great Pay is Nice But Less Frustration is Better• Prevention via Welcome and Education• Tools –
– flexible solution spaces – believable explanations – supported by tools and information
• Training – ongoing training and story telling• Motivation – celebration via victory sessions &
promotability
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Role of Customer Contact
1. Resolve issue on first contact, delighting and creating emotional connection when appropriate
2. Educate to prevent future issues3. Cross sell other services to enhance value4. Gather Voice of the Customer input
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5. Deliver Technology People Enjoy
• Why people hate technology– Wastes my time– Gets in the way – phone trees and voicemail
• Why they love it– Anticipates – HP printer ink– Simplifies – Continental boarding pass
• Delivering psychic pizza– NJ NG– Auto Club of Southern California– PBS Station
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6. Identify Cheap Delightful Experiences
Delight experience Average lift to repurchase or recommend (Top Box)
Service beyond expectation 12%
Assistance during life event 14%
No unpleasant surprises 22%
Friendly 90-second staff interaction 25%
Personal relationship over months 26%
Tell me of new product or service I can really use
30%
Consistently good service 32%
Proactively provide information on how to avoid problems or get more out of your product
32%
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Summary• Set proper expectations• Deliver Psychic Pizza• Provide clear explanations for policies• Create a VOC that listens to your mid-range donors and
quieter clients• Quantify the impact of problems and measure word of mouth• Encourage emotional connection as a cheap delighter
• Outlined in detail in Strategic Customer Service published by AMACOM
• [email protected] or 703-284-9253
Nonprofit911.orgJoin us for our next webinar on December 6:Build a Captivating Community that Lasts