Pattie Grimm - Lunch & Learn December 8, 2017
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Transcript of Pattie Grimm - Lunch & Learn December 8, 2017
Questions or thought bubbles???
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Our agenda 3
Agenda
Walk a mile in your customer’s shoes
How do you score on Customer Index
Business case for customer excellence
Employee engagement matters
Strategic alignment counts
Why is customer centricity so important 4
Social MediaExpectations
DisruptionCommoditization
Customer and employee loyalty 5
“If you only do what your competition is doing … you’ll never win the race”
~Jack Welch
“An engaged and agile workforce beats a great strategy every time!”
Sam Walton
A true story
Start up company with two owners
Started a small boutique coffee shop in one location
Brought initial team of twelve people together
Developed customer centric vision and values
Aligned entire organization to customer vision
Experienced huge US and international growth
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Think about your best customer experience
1. What did the person do?
2. How did you feel?
3. On a scale from 1 – 5 (5 being high) how likely are you to purchase again
Think about your worse customer experience
1. What did the person do?
2. How did you feel?
3. On a scale from 1 – 5 (5 being high) how likely are you to purchase again
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The facts are in … 8
• Only 1 out of 26 unhappy customers complain… The true enemy is indifference
• 91% of unhappy customers who are non-complainers simply leave
• It is 6-7 times more expensive for companies to attract new customers than to keep existing customers
• Happy customers refer others, re-buy, buy new products and forgive more!
The opportunity 9
of companies claim to be customer focused…
…yet only 10% of customers agree
Source: Forrester Research 2012
Why a customer centric culture matters
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Customer centric or company
centric
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Customer centric companies outperform others
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How do you see your business?13
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)
Empowerment The extent to which employees are able to make decisions that are best for the customer
without explicit approval of senior leaders
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
Your score14Score Risks Scenarios Consequences
0 - 30 “The Nokia Effect”
Open to risk of rapid collapse of
customer base and business
performance – Guard against
pre-occupation with “self”.
Fast changing competitive
environment requiring agility and
“proadaptive” customer culture
“Monopoly” facing industry/market
deregulation
Corporate financial collapse
leading to low performance
leading to merger or closure
Loss of customers, high
employee turnover and low
$$$
31- 50 “The Uber Effect”
High risk of business disruption
and loss of customer base –
Guard against the legacy effect –we have always done it this way
Legacy company or industry with
disenfranchised and unhappy
customers
High customer churn
High employee turnover
Major loss of customers and market share resulting in substantial reductions in
profitability and growth.
51 – 70 “The Naked Wine Effect”Moderate risk of loss of business
from market shifts – Guard against complacency
Established market leader companies
that are losing niche customers that have specialized needs
Slow erosion of current business and loss of future market opportunities resulting in stagnant business performance
71-80 “The Amazon Effect”Low business risk due to a strong culture of customer driven innovation – Guard against arrogance.
Proactive market strategies based on continual reinforcement of customer-centric culture.Low employee turnover and high customer loyalty
Sustainable competitive advantage, growth and profitability
Customer centricity vision
"I would define Amazon by our big ideas, which are
customer centricity, putting the customer at the center of
everything we do.”
Jeff Bezos,Founder and CEO, Amazon
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Clif Bars customer centricity behaviors 16
https://youtu.be/r3S0wu4Zbfk
The evidence 17
We reviewed more than 100 research studies across 10,000 companies over the past 25 years. These studies prove that a strong customer culture drives business performance
Positive correlation between customer culture and over 35 performance measures, including ROI, growth, customer retention, market share and sales
The 8 disciplines of a customer culture
THE MARKET RESPONSIVENESS INDEX18
These are the 8 behaviors
that drive customer experience, customer acquisition, employee engagement and revenue growth
Links to business performance outcomes19
Example of low and high performing companies
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Do you have customer rock stars on your team?
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Do your customers have a seat at the table?
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Five ways align your company to the customer 23
Create a “living” customer centric vision (use to make decisions)
Align the entire organization to the Voice of the Customer
Hire, motivate and retain the best customer advocates
Hold people accountable and reward the right behaviors
Measure and track customer loyaly and employee engagement
Roadmap to customer success 24
Discover Engage Ignite Stick Fortify
Alignment from the boardroom to the frontline
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Your customer culture impacts everything
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Executive Next Practices Institute (ENP Forums) at the COVEConnecting Middle to Large Market Enterprise Leaders with insights, opportunities and connections to emerging businesses at UCI Applied Innovation
Jan 19 Converting Economic Forecast to Strategic Execution
