Wired and Dangerous - American Public Transportation ... · Wired and Dangerous ... Turbulent Times...
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Wired and Dangerous How Your Customers Have Changed & What to do About It With John R. Patterson www.johnrpatterson.com
Transcript of Wired and Dangerous - American Public Transportation ... · Wired and Dangerous ... Turbulent Times...
Wired and Dangerous How Your Customers Have Changed
& What to do About It
With
John R. Patterson www.johnrpatterson.com
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Thoughts for the Day
“Greatness does not come from asking the customer what they want and then giving them what they require. It is understanding the customer well enough to give them what they desire, even if it is unexpressed.”
--Len Berry and Sandra Lampo
“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
-- Maya Angelou
poet, b. 1928
Observations on Customer Experience!
The EXPERIENCE is what your customers say it is. The customers’ assessment of their experience is the only assessment that really matters.
Improving customer experience is everybody’s job. “Everyone has a customer” and the way internal colleagues are treated is reflected in the way external customers are treated.
Reliability and problem resolution make a very powerful combination. Doing what you say you will do and doing it well are paramount. The ability to recover from errors is also critical.
Technology is important. The customer’s experience isn’t just personal contact. Make the two work together—high tech with high touch—for best results.
www.johnrpatterson.com
ROI on Great Customer Experience?
Great service-high morale link
Great Profits – Great Service Providers
outperformed the S&P, Dow, and the NASDAQ.
Service beyond expectation = 12% lift
Proactively provide information = 32% lift
The cost of retaining a customer is less than
attracting a new one.
95% of customers who complain about service
and have their problem resolved quickly are more
loyal!
Today’s Customer is Very Powerful!
Turbulent Times - The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
The Guitar Heard Around the World
2008 United breaks guitar
Today 11.5M hits on YouTube
Live appearance on every
major TV network
$180M negative impact on
United’s bottom line
Still trashes United’s brand
www.johnrpatterson.com
Turbulent Times - The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
Why Is CE So Important in Turbulent Times?
73% of customers said friendly employees or CSRs
made them “fall in love with a brand*
79% of customers who shared complaints about poor
customer service experiences on line had their
complaints ignored!*
50% of consumers will stop doing business with a
brand if their customer service inquiry is not
answered within one week!*
91% of U.S. customers consider the level of customer
service important when deciding to do business with
a company (Amex)
* Harris Interactive
Why Is CE So Important in Turbulent Times?
Social Media drives 5 times the impact of traditional word of mouth. The average blog post is read by 45 people. More than 60% of customers who hear about a bad experience on networking sites stop doing business with the offending company! (Convergys)
51% of customers use Social Media to communicate with corporations. 88% of consumers are less likely to buy from companies who leave complaints on Social Media unanswered! (Conversocial)
32% of customers rate their overall satisfaction with the way organizations use Social Media as poor or very poor! (Conversocial)
TV
Text
Chat
Branch
Phone
IVR
Website
Viral
ATM
Mobile
Channel Options
46%
Use
Millennials Gen X Boomers
Prefer Use Prefer Use Prefer
56%
12%
10%
10%
7%
43% 57% 66% 71%
19% 1% 12% 5% 8%
11% 17% 10% 7% 7%
12% 26% 9% 14% 7%
13% 3% 12% 4% 7%
Preference and Usage by Segment
Communicate My Way
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What is “Customer Experience”?
“The internal and subjective response
customers have to any direct or indirect
contact with a company. It is all the details the
customer experiences that determine the
stories they tell the neighbors.”
-- Harvard Business Review
www.johnrpatterson.com
What Signals Are You
Sending to Your Customers?
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The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
Long and Tough Recession Has Made
Customers Redefine Value
2008 Pre-Recession
Quality Outcome
(or Product) Fair
Price
Experience
2011 Post-Recession
Quality Outcome
(or Product) Fair
Price
Experience
Customer expectations are rising—fast. 33% higher than last years!
What Has Changed Your Customers?
MORE CHOICES
GREAT SERVICE MORE SMARTS
www.johnrpatterson.com
Impact of Customer Care on Brand Reputation*
59% of respondents use social media to vent anger about their experience
72% sometimes research a provider’s customer care reputation online prior to purchasing & 62% stop or avoid using
84% consider a provider’s customer care quality when deciding whether to do business with a company
74% choose some providers based on other customers’ service experience
*SNCR 16
It isn’t easy to consistently deliver a
great customer experience!
www.johnrpatterson.com
Why Do Your Customers Leave?
0% 20% 40% 60% 80%
Customer Experience
Quality
Price
Convenience
Functionality
Needs Changed
Customers Say
Company Believes
--CRM Research, 2011
Percent of Respondents
www.johnrpatterson.com
Post Recessionary Customers are:
PICKY FICKLE
VOCAL VAIN
WIRED!
The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
Exhileration-Enriching
Extra-Surprise
Engagement-Connection
Ease-Effort
End Result-Outcome
Customer Service Loyalty
Satisfaction
Loyalty
Delight
Ardent Advocacy
The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
www.johnrpatterson.com
The Post Recessionary Customer is …
PICKY FICKLE
VOCAL VAIN
WIRED
“Boycott Maytag!”
www.johnrpatterson.com
It’s All About Reinventing the Customer Experience
How Can You Consistently Deliver A “Take Their Breath Away” Experience “?
Individual Blocks to Service Innovation/ Reinvention
“That’s not logical”
“Follow the rules”
“I’m not paid to be
creative”
“Play is frivolous”
“ This is a serious
business!”
“Be practical”
The biggest block is…
“WE’VE ALWAYS DONE IT THAT WAY!”
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Reinventing the Customer Experience:
A Case Study
Elements of a Great Customer Experience
Surprise Me
Today’s Customers
Expect
Understand
Me
Include Me
Teach Me Protect Me
Payback for a Great Customer Experience!
Understand Me—I Change all the Time
Include Me—Make Me a Partner
Protect Me—From Anxiety and Worry
Air
Defense
Trst Comfort
Consistency
We pledge to provide an extraordinary
experience… for our guests and partners.
Reservations that are easy to make
Quick, hassle-free check-ins
Rooms that are immaculate
A staff brimming with vitality and smiles
Restaurants so good they are local favorites
Expertise in handling meetings, and
Fast, painless check-outs.
Focus on Consistency
www.johnrpatterson.com
How Effort in Getting Service Impacts
Your Customer’s Evaluation
58% Indifferent
94% Delighted
17% Disappointed
62% Indifferent
LOW HIGH
EASE OF SERVICE
FR
IEN
DLY
& S
MA
RT
LO
W
HIG
H
How Effort in Getting Service Impacts
Your Customer‘s Evaluation
58%
94%
17%
62% 35% Had a Long Wait
59% Were Transferred 56% Forced to Re-explain
59% Great Effort to Resolve 62% Repeated Contacts to Resolve
57% Had to Switch from Web to Phone
Focus on Service Air—Your Promise
Quack!
Surprise Me
CEO GARY KELLY
HERB & COLLEEN
Our mission: The highest level of Customer Service delivered with a sense of warmth, friendliness, quality, individual pride, and Southwest Team Spirit.
38 Years of
Profits!
Surprise Me
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Great Service is a Journey, Not a Destination
www.johnrpatterson.com
The
Partnership
Advantage
ALIGNMENT = CONSITENCY
Customers value consistency.
Organizations that are aligned are able
to deliver an experience the customer
trusts because it has predictability.
The customer experience is not
dependent on the person they get or
the location they visit.
This means leaders must promote
alignment.
Focus on Comfort
Minutes of wait
0
Angry
Annoyed
Satisfied
5 10 15 20 25
Wired and Dangerous
How Your Customers Have Changed
PRODUCT COVENANT
SERVICE
Intangible
Cannot be stockpiled or a sample sent to the customer in advance
Value is determined by the customer’s
experience And perception
“I have a question…”
“How can we maximize efficiency
and reduce expenses by
minimizing the customer’s
involvement in our call center?”
High Tech without High Touch
The Perfect Storm
High Tech without
High Touch
Internet Savvy
Long and Tough
Recession
DRAFT
What can we learn from these
Great Service Providers ?
Teach Me–Help Me Keep Up
Surprise Me
Customer Experience
Understand Me
Include Me
Teach Me Protect Me
Brands With Low Emotional
Ties to Customers
Fail to grow
Become commoditized & fight
over lowest cost
Lose market share to upstarts
that sport better products or
services, more ‘buzz,’ or both
Restoring the Service Covenant
Grounding
Connection Congruence
Partnering with Customers
The Guitar Heard Around the World
2008 United breaks guitar
Today 10.7M hits on YouTube
Live appearance on every
major TV network
$180M negative impact on
United’s bottom line
Still trashes United’s brand
www.johnrpatterson.com
United-Breaks-Guitars.wmv
www.johnrpatterson.com
Count Every Square You See.
1X1 = 16
2X2 = 9
3X3 = 4
4X4 = 1
The word “square”
at the top
The period at the top
Three Things Today’s Clients & Customers Want
1. Results. If you can offer a return on investment, an engineering solution, more sales, no tax audits, a cute haircut, the fastest rollercoaster, a pristine beach, reliable insurance payouts at the best price, peace of mind, productive consulting or any other measurable result, this is a great place to start.
2. Thrills. More difficult to quantify but often as important, partners and customers respond to heroism. We are amazed and drawn to over the top effort, incredible risk taking on our behalf, the blood, sweat and tears that (rarely) comes from a great partner. A smart person working harder on your behalf than you'd be willing to work--that's pretty compelling.
3. Ego. Is it nice to feel important? You bet. When you greet us at the door with a glass of white wine, put our name in the lobby of the hotel, actually treat us better than anyone else does (not just promise it, but do it)... This can get old really fast if you industrialize and systemize it, though. -- Seth Godin
www.johnrpatterson.com
Customer Expectations
Customer expectations are rising—fast. 33% higher than last years.
“Serve me well or I’m outta here.” 77% will stay for a consistently positive experience.
“Why can’t you just give me what I want.” 47% only get their expectations met sometimes, rarely or never; just 5% say service is “great”
“What I want is not what you offer.” 59% have switched providers because of a bad service experience.
Accenture
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Outcome, Experience & Value
Product Covenant
Service Covenant
