Vodacom CM Programme 2015 - Part 4
Transcript of Vodacom CM Programme 2015 - Part 4
Maximising Value through Customer Management
Theme 3: Dealing With Complaints and Problems in
Your CompanyAki Kalliatakis
[email protected] www.LeadershipLaunchPad.co.za
A complaint is destructive when it…
•Is uncontrolled opposition which dissolves common ties we have
•Leads to personal attacks and being backed into a corner
•Slows down or stops effective communication
•Reduces cooperation and problem-solving
A complaint is destructive when it…
•Is uncontrolled opposition which dissolves common ties we have
•Leads to personal attacks and being backed into a corner
•Slows down or stops effective communication
•Reduces cooperation and problem-solving
The problem is that when customers don’t get satisfaction
from their complaints, they overreact (the 3R’s)
The problem is that when customers don’t get satisfaction
from their complaints, they overreact (the 3R’s)
In addition, for every one who actually complains,
there may be many, many more who say
nothing
In addition, for every one who actually complains,
there may be many, many more who say
nothing
96% more!96% more!
The package that complaints come in is ugly, grotesque, and unpleasant, but
what is inside is of critical importance to you and your business:
The package that complaints come in is ugly, grotesque, and unpleasant, but
what is inside is of critical importance to you and your business:
• It means that they haven’t done something worse, and are giving you a second chance to delight them
• It gives you a chance to learn something, and to take action to avoid or prevent what went wrong
• You can explore to find out if anyone else experienced the same and be proactive about it
• It means that they haven’t done something worse, and are giving you a second chance to delight them
• It gives you a chance to learn something, and to take action to avoid or prevent what went wrong
• You can explore to find out if anyone else experienced the same and be proactive about it
But the best news is that the most loyal of loyal customers are those who have potentially experienced something bad, but for whom the experience turned out to be a good one because it was properly handled
But the best news is that the most loyal of loyal customers are those who have potentially experienced something bad, but for whom the experience turned out to be a good one because it was properly handled
Why do most customers NOT complain?Why do most customers NOT complain?
• Don’t think they will get any satisfaction anyway• Embarrassing and uncomfortable, don’t want to
make a scene• Feel intimidated by you, or the reputation of the
business• Too much trouble/takes too long• Can just go somewhere else• May just give you another chance, or promise to
“do something later”
• Don’t think they will get any satisfaction anyway• Embarrassing and uncomfortable, don’t want to
make a scene• Feel intimidated by you, or the reputation of the
business• Too much trouble/takes too long• Can just go somewhere else• May just give you another chance, or promise to
“do something later”
What makes customers like you
and me angry enough to complain?
What makes customers like you
and me angry enough to complain?
When Delivery < Expectations, we have unhappy and disappointed customers (Not even their basic requirements are met)
Obviously….Obviously….
Why Do Customers Specifically Get Upset?Why Do Customers Specifically Get Upset?
• Upset about something else• Don’t feel listened to, feel ignored• Don’t want to lose face• Feel put down or shamed• Feel other customers were treated better• Tired, frustrated, or stressed• Feel powerless, out of control (Victim), or that you are
trying to take advantage• “No-one will listen unless I make a scene”
• Upset about something else• Don’t feel listened to, feel ignored• Don’t want to lose face• Feel put down or shamed• Feel other customers were treated better• Tired, frustrated, or stressed• Feel powerless, out of control (Victim), or that you are
trying to take advantage• “No-one will listen unless I make a scene”
And a whole lot more reasons!
We can probably break these down into two main categories…
• The genuinely and justifiably dissatisfied customers
• The totally unfair and unreasonable
We can probably break these down into two main categories…
• The genuinely and justifiably dissatisfied customers
• The totally unfair and unreasonable
“It's not my fault, but it is my problem”
Customers are not always right….
• But they are always our customers…
• And there is rarely a good reason to tell them they are wrong
So what can you do to recover?So what can you do to recover?
• Predict and identify problem areas before major complaints & relationships break down – kill dumb contacts
• Ensure that recovery is legendary (SWAT Team?)
• Identify triggers for failure, and initiate proactive responses
• Use a consistent system for recording and responding
• Do root cause analysis and prevention, as well as internal analysis
• Don’t punish the messengers. In fact, make it easy for customers to complain, and empower employees to help them
• Go “undercover”: Use your own business as a customer would
• Predict and identify problem areas before major complaints & relationships break down – kill dumb contacts
• Ensure that recovery is legendary (SWAT Team?)
• Identify triggers for failure, and initiate proactive responses
• Use a consistent system for recording and responding
• Do root cause analysis and prevention, as well as internal analysis
• Don’t punish the messengers. In fact, make it easy for customers to complain, and empower employees to help them
• Go “undercover”: Use your own business as a customer would
What positive expectations do customers have?• That you will deal with them with a sense of urgency• That you will be trustworthy, have what they need and be able to solve their problem, reliably and professionally
• That you will care, show empathy, and be cheerful• That you acknowledge how this has affected them• That you will let them know that their business is valuable to you
• That you will remember them after it’s over• That your prices and compensation will be fair• That you will stand behind your products and services with a guarantee (Build their assurance)
Unhappy Customers Will Buy Again
No complaint 37%Complaint not resolved 46%Complaint resolved 70% Complaint resolved quickly 95%
Unhappy Customers Will Buy Again
No complaint 37%Complaint not resolved 46%Complaint resolved 70% Complaint resolved quickly 95%
With thanks to Toyota SA
Does “Sorry” Work? The Impact of Apology Laws on Medical Malpractice
Apologies made by physicians for adverse medical events have been identified as a
mitigating factor in whether patients decide to litigate
However, doctors are socialised to avoid apologies because apologies admit guilt and
invite lawsuits
And Customers from Hell?
And Customers from Hell?
When someone behaves in this way, what are they saying about themselves?
When someone behaves in this way, what are they saying about themselves?
7 Choices7 Choices
• Laugh it off: water off a duck’s back• Allow the abuse to continue• Put the ball in their court: What do you want?• Confront them equally aggressively, or…• Confront assertively• Cut the anchor: let them loose, make it easy to
leave• Sort it out, whatever it takes. But tell them!
• Laugh it off: water off a duck’s back• Allow the abuse to continue• Put the ball in their court: What do you want?• Confront them equally aggressively, or…• Confront assertively• Cut the anchor: let them loose, make it easy to
leave• Sort it out, whatever it takes. But tell them!
Maximising Value through Customer Management
Theme 4: Customer Management in Your Company
Creating the Culture and InfrastructureAki Kalliatakis
[email protected] www.LeadershipLaunchPad.co.za
Maximising Value through Customer Management
Agenda• Are We Customer Driven?
• Portrad Case Study
• The Customer Management Ecosystem
• Putting Together Your Plan
Maximising Value through Customer Management
3 Prerequisites for Customer Management
Customer management, however well designed, can
only work within an environment delineated by three factors
Customer management, however well designed, can
only work within an environment delineated by three factors
Marketing Strategy
Conditions
Information Technology Conditions
Culture and Climate Conditions
Maximising Value through Customer Management
What does an ideal integrated marketing approach look like?
Marketing Strategy
Conditions
• Gets into the mind and heart of the customer
• Homogenous, distinct targets and specific value proposition for each (SCM Structure)
• Propositions capable of tailoring (TSPs)
• Customers that value tailored propositions
• Whole organisation aligned to enable tailoring
If you cannot be distinct, then you’re going to be extinct
Be interesting, or be invisibleinvisible
What is your competitive advantage?
Why should anybody do business with you?
If you cannot be distinct, then you’re going to be extinct
Be interesting, or be invisibleinvisible
What is your competitive advantage?
Why should anybody do business with you?
Maximising Value through Customer Management
Information Technology
What do ideal information technology (IT) conditions look like?
• IT strategy and system derived from marketing strategy and customer needs
• Driven by top management team
• Well resourced
• Cross-functionally managed
• Flexible specification, managed against goals
Maximising Value through Customer Management
What do the right people conditions look like?
• Bottom line: Deliver the perfect customer experience!
• Positive climate with happy employees and therefore happy customers
• Market-oriented with structures and processes built around customer needs
• Strong culture and commonly help values
• A learning culture that is capable of change
Culture and Climate Conditions
Video Case Study – p127
Quality, The Only Way
1.What’s wrong at Portrad?
2.What would you do if you were appointed CEO tomorrow morning?
INPUTSINPUTSINPUTSINPUTS
Facilities &Equipment
PROCESS
Raw Materials
Information
People: Skills & Attitude
SUPPLIER
OUTPUOUTPUTT
OUTPUOUTPUTT
Procedures, Systems & Processes
Energy
CUSTOMER
The ServQual Model
Previous experiences
Customer’s expectation of service
Service quality specifications
Customer
Company
Perception of service received
Actual delivery of service
Customer needs
Word of mouth from others
Managers’ perception of customer expectations
Company’s external communication
Process and System ManagementProcess and System Management
Leadership, People and OrganisationLeadership, People and Organisation
Customer Information & Technology SupportCustomer Information & Technology Support
Customer Retention Strategy
Analysis & Planning
CVP (Customer Value Propo-
sition)
Customer Expectations
Perceptions of Experience
Segmentation & Targeting
Enquiry Management &
Conversion
Welcoming & Getting to Know
Delivering the Basics
Customer Value
Development
Managing Problems/ Recovery
Win Back
Measu
rable
Resu
ltsM
easu
rable
Resu
lts
Benchmarking Best PracticesBenchmarking Best Practices
Customer Management
Value Innovation
Value Innovation
Retention Activity
Maximising Value through Customer Management
The CM EcosystemThe CM Ecosystem
Two dimensions affect your success…
1. Proposition flexibility: the degree to which your customer value proposition can be tailored
2. Marketing granularity: the degree to which customer needs differ
These two work together to determine you relative ROI and success with customers, but also lead to your business making the right choices
Increasing Proposition
Flexibility
Low
High
High
Increasing Market Granularity
The CM EcosystemThe CM Ecosystem
Zone of Inaccessibility
Zone of Inaccessibility
Zone of Low ROIZone of Low ROI
Customer Management Z
one
Customer Management Z
one
Mass Market
CMRCMR
IT-Enabled Micro-Segmentation
IT-Enabled Micro-Segmentation
Proposition PrefabricationProposition
Prefabrication
1 to 1 Marketing
1 to 1 Marketing
There’s a motion chip in each shoe, eliciting a response: “That’s a cool shoe! Awesome choice!”…
Or “That’s a really nice shoe, sir”
Maximising Value through Customer Management
•70,000 m2 of shop floor space
•Separate “store” for each sport
•Hosts entire Nike range
•Hand-picked designer consultants
•One-to-one appointments in a two-story high glass and steel cube in the middle of the building
Organisewhole co.
aroundcustomers
Sharewith everyone
In company
DevelopUnique
customerobjectives
Developcloser rela-tionships &
insightsCMStages
Decidecustomer mix& resources
Maximising Value through Customer Management
• Customer Expectations and Perceptions• Value Proposition and Creating Awareness
“ A CVP is the unique combination of resulting experiences, (including price,) which a company
delivers to a group of intended customers in return for those customers buying, using and doing what the company wants, rather than taking some other competing alternative. It refers to the benefits that
customers are assured of receiving as a result of their relationship and partnership with the company”
The CVP should be translatable down to individual level
Maximising Value through Customer Management
What is a Value Proposition?
A good value proposition provides convincing reasons why a
customer should support your business instead of your other
competitors
• A promise of value to the customer
• Unique package of product, price, channel support, service and brand offerings that meet a particular customer’s needs
• Combines hard functional features, (e.g. simple product range, competitive prices, good delivery and service,) with the softer emotional benefits of what the customer can expect, (e.g. peace of mind, status value, innovation, personal experiences)
Maximising Value through Customer Management
What is a Value Proposition?
The 30 second elevator pitch…
•Who is our target market?•What do we offer – products and service?•At what price?•Number 1 benefit for the customer?•Points of differentiation?
Definition of a Segment
Groups of customers with similar needs or wants and priorities...
and who because of this...
seek the same benefits and attach the same importance to their satisfaction
Sometimes this corresponds to the amount that they purchase from the company
Maximising Value through Customer Management
SegmentationSegmentation
It is obvious that if you haven’t deeply and profoundly understood the
customer’s needs*, your chances of success are severely limited
It is obvious that if you haven’t deeply and profoundly understood the
customer’s needs*, your chances of success are severely limited
Maximising Value through Customer Management
* You need insights into customers’ needs, wants, desires, perceived benefits, expectations, fears, motivations and all other variables that will turn them on – or off – to your business and it’s offering
But What do Customers Actually Want? Identifying
Customer Insights*(*BTW – They don’t always know!)
Maximising Value through Customer Management
Customer Insights
A fresh and not-yet-obvious and profound understanding about a customer need – known or
unknown, realised or unrealised – that can become the basis for competitive advantage
(Adapated from Mohanbir Sawhney, DefiningTheLimits.com)
3 main sources of customer insights…
•Cognition
•Affect
•Behaviour
“You have to be able to get into your customer’s heads – and into their
hearts - before you can get into their pockets” (Reckitt and Coleman)
“We are them, and they are us.” (Grateful Dead)
“You have to be able to get into your customer’s heads – and into their
hearts - before you can get into their pockets” (Reckitt and Coleman)
“We are them, and they are us.” (Grateful Dead)
Maximising Value through Customer Management
Maximising Value through Customer Management
•Heavy to transport
•Difficult to handle
•Messy to store on shelves
•Sold 2/3 to visitors, not Londoners
Key Account Segmentation: Computer Hardware Firm• Koala Bear: Use an extended warranty to get cover. Won’t do anything themselves,
prefer to curl up and wait for someone to come and fix it. “Nobody ever got fired for buying IBM”
• Teddy Bear: Lots of account management and love required from a single preferred supplier. Will pay a premium for training and attention. If multi-site, requires supplier to cover these effectively. “Protect me and hug me.”
• Polar Bear: Like Teddy Bear, but colder! Will shop around for cheapest service supplier, whoever that may be. Full 3rd party approach. Train me, but don’t expect me to pay. Will review annually – seriously. If multi-site, requires supplier to cover these effectively.
• Yogi Bear: A wise Teddy Bear working long hours. Will used trained staff to fix if possible. Needs skilled product specialist at end of phone, not clerk. Wants different service levels to match the criticality of the product to their business process
• Grizzly Bear: Trash them! Cheaper to replace than to maintain. High maintenance and exhausting. Won’t pay for training, negotiates everything, and are probably so reliable that we are obsolete.
• KGB Big Bear: My business is totally dependent on your products, but I know more about them than you do! You will do as you are told, or we have ways and means to sort you out. I’ll pay for training and extra cover, but you will….
• A tool to understand customers• A cost-effective promotional vehicle• A symbol of commitment to customers
Maximising Value through Customer Management
• Have identified 20000 different market segments• Each customer has a unique “DNA Profile” derived from the products that they buy (“You are what you eat”)
• Sell information and intelligence back to manufacturers
• Know that average diet lasts 18 days and can respond with encouragement and recommendations
Maximising Value through Customer Management
Segmentation Activity – Part 11.Write down all the benefits sought by your
customers on Post-Its2.Stick all those that are similar or cluster together,
and give them a title3.Divide all of these needs into 2 categories:
1.The hygiene factors – essential, deal-breakers2.The motivators –
desirables that contribute to the decision on who to buy from
Maximising Value through Customer Management
Segmentation Activity – Part 2 (Simple)
1.Choose two motivators on which customers vary on their needs – the differentiating motivators
2.Make sure that they are independent of each other
3.Estimate the split of customers between high and low for each. (50/50? 60/40? 70/30?)
4.Cross multiply to create a perception map, and give each segment descriptive lables
Maximising Value through Customer Management