The Journey to Customer Centricity Where to Commit your Focus · The Journey to Customer Centricity...
Transcript of The Journey to Customer Centricity Where to Commit your Focus · The Journey to Customer Centricity...
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The Journey to Customer Centricity Where to Commit your Focus
Medallia Experience • 2017 • Terry Cain •Pinwheel Partners
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The next 40 minutes….we will have…
InspirationTo Start the Journey
Prioritize UsingThe Pinwheel
A common Language Customer Centricity
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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Define Journey
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The road is not linear…
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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Customer Program Buzz Words….
• Satisfaction
• Delight
• Loyalty
• Engagement
• Obsession
• First
• Excellence
• Experience
• Centricity
• Success
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How do You define Customer Centricity?
Is customer centricity cultural?
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Source:Price/Jaffe
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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
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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.
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“ 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
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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The Age of the Customer
Source:2011,ForresterResearchInc.CopyrightPinwheelPartners2017AllRightsReserved
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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
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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%
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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
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Employee Engagement Becomes Harder
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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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 ?
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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?)
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Sick of Peter Drucker?
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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
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New ProcessesNew StructureNew MetricsCULTUREEATS NEW STRATEGYFOR BREAKFAST
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Customers Experience ?Rather than focusing down the operations area
Engineering/ Product
DevelopmentSales Operations/
Manufacturing Marketing Quality Finance Supply Chain
FocusAcrossSilos
Source:CustomerBliss,2014
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Ingrid Lindberg Chief Customer - www.chiefcustomer.com
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The culture is the most powerful asset in business!
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Establish “Journey”
Define Customer Centricity
Why is This Worth Doing?
What Are the Barriers?
Where Do We Focus?
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10% of conflicts are due to difference in opinion. 90% are due to wrong tone of voice.
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Delivering the Customer Experience
“If you’re not serving the customer, your job is to be serving someone who is.”- Jan Carlzon
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Coming Soon! Strategy vs. Culture Who Wins?Improving Your Odds for Change
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CONTACT:[email protected]:602-315-5268
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Customers as Most Important….Culture is the Resource for Them..
to we are all about building
TRUSTWith each other, our employees, partners, customers
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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!
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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
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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
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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
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Thank You