Profit Focused Customer Care: Seven Proven Strategies 091509
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Transcript of Profit Focused Customer Care: Seven Proven Strategies 091509
Profit-Focused Customer Care: Seven Proven Strategies
Presented by: John Goodman, Vice Chairman, TARP WorldwideHosted by: Sally Hurley, President, VIPdesk
September 15, 2009
View The Webinar
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 2
About TARP• Founded in 1971—38 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 quality on revenue, cost & WOM for companies like Toyota/Lexus, Farmers Insurance, USAA, American Express, HSBC, USAA, 3M, IBM, Compass Bank, Allstate, AARP, FedEx, Canadian Tire Financial Services, SunTrust, Neiman Marcus, & Chick-Fil-A.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 3
About VIPdesk
VIPdesk’s full suite of Brand Experience Management solutions include
Virtual Concierge and Contact Center Services, Social Media
Management, Experiential Programs, IVR Services and Voice of the
Customer Surveying & Analytics. Global industry leaders trust
VIPdesk to enhance their brands through our customer care and
loyalty programs.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 4
Customers, donors, citizens 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 Customer Satisfaction
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 5
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
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 6
Seven Strategies
1. Set proper customer expectations2. Quantify impact for the CFO & CMO3. Reduce Risk expenses4. Gaining the CEO’s ear – becoming the Chief
Customer Officer5. Enhance your front line success6. Implement technology that customers will enjoy –
delivering psychic pizza7. Sensibly creating remarkable delight
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 7
1. Set Proper Expectations• Welcome packages• Welcome calls• Encourage questions before customers get
into trouble• Confirmations• Reconnect
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 8
=
=
=
=
=
2,000
6,000
9,000
40,000
57,000Total Customers At Risk
200,000Customers
withProblems
20%Dissatisfied
Many NotRepurchasing
Some NotRepurchasing
50%Satisfied
MostRepurchasing
75% Do NotComplain
25%Complain
30%Mollified
Some NotRepurchasing
2. Demonstrating Financial Impact Of Prevention And Response To The CFO
Enhance revenue via preventing problems, soliciting more complaints and Increasing percentage satisfied when they do contact you
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 9
Show Fewer Problems Drive Higher Margins
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.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 10
Identify Transactions That Systematically Cause Dissatisfaction
Problem reports % Loyal (Top 2 Box) # Contacts
Routine order 98 1.1 Shipment status 91 1.2 Product return 93 2.1 Shipping charges 88 2.1 Backorder status * 67 3.3 Call center overall average 91 1.9
Transaction which is biggest opportunity for improvement
Misuse of resources to intensively measure this transaction
Tie Survey Results to Call Monitoring Form**See tarp paper: Your monitoring and coaching may be doing more damage than good
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 11
Getting the CMO on Board: Show Service Is A Word of Mouth Management Mechanism
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
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 12
Getting the CMO on Board: Show 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
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 13
3. Reduce Risk Expenses
Exacerbating Factors
Not Escalated
Expected Claim/
Lawsuit
Injury, But No Claim/
Lawsuit
Surprise Claim/
Lawsuit
EscalatedReported
Warned of Potential Problem
Problem Occurs
Not Reported
Negative WOM Consumers/
PCP
Well Handled
Poorly Handling
Contributing Factors
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 1414
4. Become The Focal Point The Voice Of The Customer
• Customer surveys• Customer contact and interaction data• Internal operations process and quality measures• Together, these elements are used to identify
opportunities for product and service quality improvement
+ = Total view of the customer
experienceInternal process and quality data
+ Customer contact and
interaction data
Surveys of customer
satisfaction and loyalty
Take The Role Of Chief Customer Officer
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 15
5. Make People Successful• Stellar Leaders and Culture Are Great, But..• Attitude - hiring• Tools – flexible solution spaces & information• Training – story telling• Motivation – victory sessions & promotability
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 16
6. Deliver Technology People Enjoy
• Why people hate technology
• Why they love it
• Delivering psychic pizza
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 17
7. Inexpensively Create Delight
Delight experience Average lift to repurchase or recommend (Top Box)
Service beyond expectation - heroics 12%
Friendly 90-second staff interaction 25%
Personal relationship over months 26%
Tell me of new product or service I can really use
30%
Proactively provide information on how to avoid problems or get more out of your product
32%
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 18
Average Change In Account BalanceAver age Change In Mut ual Fund Accoun t Balance
• The average increase in mutual fund account balance during the pilot was 2.7 timeshigher for customers who received a courtesy call versus those who did not.
Avg Change in MF Accoun t Balance ( Oct -Jan )
$1,638
-$778
$1,184
$3,805
$1,364
$3,221
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Non-Orphan Orphan Overall
Orphan Indicator
No Contact Contact
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 19
Ten Myths About Service1. Always exceed customer expectations2. Answering the phone really fast is the key to success3. People always prefer talking to people4. The customer is always right5. Complaints are down, things are getting better6. Employees are the cause of most dissatisfaction7. Price and cost cutting is the key to success8. We’re at 90% satisfaction – let’s declare victory!9. Measure Net Promoter and we’re done10. We have a 100% satisfaction guarantee – everyone is
happy.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 20
Summary• Look across the whole customer experience and quantify in a
way the CFO and CMO accept• Proactively deliver psychic pizza for prevention• Measure satisfaction by issue to identify opportunities• Measurement and VOC data are the key to support• Better a Small Success Than a Big Disaster:
Practice Continuous Experimentation
• Outlined in detail in Strategic Customer Service published by AMACOM• [email protected] or 703-284-9253
Questions?
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This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 22
For More Information
• More Questions about Presentation or TARP?– John Goodman: [email protected] or
703-284-9253
• More information about VIPdesk or home-based customer care?– Sally Hurley: [email protected] or
703-837-3518
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate TARP’s methodology. Use of or distribution beyond that purpose is forbidden. 23
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