tns customer code _ webcast mar2014

The Customer Code

Customer Experience

© TNS 2014

A live TNS webcast

The shift

Customer Experience

© TNS 2014

Be prepared

“Customers are bypassing existing business modelsin favour of their unique experience and requirements, especially with instant access to peer reviews, competitor offerings, and pricing…

With the advent of social media and transparency, customers control this relationship.”

Customer Experience

© TNS 2014

control this relationship.”

Jonathan Becher

Chief Marketing Officer, SAP

The new world order

Less control

Less shareof voice

Less loyalty

More information

More transparency

Customer Experience

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Less profitMorechoice

Customer experiences are complex beasts

Customer Experience

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Many moving parts for a few sustainable memories

Responsiv

eness

Point of sales

Service

FAST DELIVERY

Accuracy of invoice

Value for money

Afte

r-sale

s s

erv

ice

Call centre hours

Shop hours

Company newsletter

Internet news

Exciting

Social media

Information materials

Word-of-mouth Reliable

Customer Experience

© TNS 2014

Productquality

Responsiv

eness

FAST DELIVERY

ONLINE REVIEWS

Reliable Orderprocess Accuracy of delivery

Value for money

Friendliness

Availability

Rating sites Care about me

Com

pete

nce

Complaint handling

Trust

Magazine articles

Newspaper articles

Exciting Com

pany w

ebsite

Blogging

Complaint resolution

Unlocking your Customer Code

Customer Experience

© TNS 2014

Do you know what makes your customers stay or go?

Customer Experience

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customers stay or go?

Customers love IKEA

Customer Experience

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775 million visits in 2013

$29.2 billion turnover

345 stores in 42 countries and growing

A Saturday morning at IKEA…

Checkout

Where are we?

Lost!

I think I found myself

Customer Experience

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Entrance

are we?

… can be exhausting… but a memorable experience…

Customer Experience

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…and despite all the challenges, I will go back

Customer Experience

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A world of insight

40,000 interviews

Customer Experience

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20 markets

Qualitative interviews

with CMOs

The gap

Customer Experience

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The gap

Performance is necessary, but not sufficient

Performance

82TRI*M Index

67

Performance

TRI*M Index

Customer Experience

© TNS 2014

67Preference

Mind the gap

69 TRI*M Index

Performance 80

22

Customer Experience

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Source: TNS customer insight surveys 2013/2014

58Preference

80

40

The performance to preference gap

21

32

35

Customer Experience

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40

0

The market leader In trouble The challenger

Source: TNS customer insight surveys 2013/2014 – a Western European service provider market

Perf

orm

ance

Pre

fere

nce

The context

Customer Experience

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Context shapes how we perceive the world

Customer Experience

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Everything looks good!

You are not alone

Customer Experience

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Strong relationship

Moderate relationship

Weak relationship

14% 46% 40%

71

TRI*M

Source: TNS Customer Insight Surveys 2013/2014 – A retail bank in a BRIC market

71%

The bank operates in a fiercely competitive market

26%

Customer Experience

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71%Consider using other banks

Source: TNS customer insight surveys 2013/2014 – a retail bank in a BRIC market

26%Business at risk

Does everything look good?

Customer Experience

© TNS 2014

Strong relationship

Moderate relationship

Weak relationship

14% 46% 40%

71

TRI*M

Source: TNS customer insight surveys 2013/2014 – a retail bank in a BRIC market

Even a strong relationship is no guarantee for exclusive loyalty

My bank is great – but there are others out there who are equally good – so why not try a different one?

I don‘t like mybank – but currently I see noreal alternative

Customer Experience

© TNS 2014

Strong relationship

Moderate relationship

Weak relationship

Low Medium

14% 46% 40%

71

TRI*M

Projected risk to business: High

Customers are individuals –not averages

Customer Experience

© TNS 2014

not averages

Individual context can trigger a change in customer behaviour

At risk

Customer Experience

© TNS 2014

70% of retail banking customers say switching is inconvenient

But moving house almost doubles the probability to shift share of spend

Source: TNS customer insight surveys 2013/2014

This is what happens when the honeymoon is over –understanding different stages in the customer lifecycle

Thre

em

onth

s

Six

month

s

Tw

elv

em

onth

s

Eig

hte

en

month

s

Constant performance

Customer Experience

© TNS 2014Source: TNS Customer Insight Surveys 2013/2014 – Retail bank in a BRIC market

month

s

month

s

month

s

Eig

hte

en

month

s

Connecting the dots

“Like most organisations we have a combination of market data and of operational data and the challenge is bringing different views together in a way that can be actioned on. Our big priority is to get actionable insights for front line teams in customer service and sales.”

Julie Woods-MossChief Marketing Officer, Tata Communications

Customer Experience

© TNS 2014

Chief Marketing Officer, Tata Communications

Where to focus your investments

Customer Experience

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investments

Companies need tounderstand the impact in terms of gain or loss

Cloudservices

Networkcoverage

Innovativeproducts

Processes

Customer Experience

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… to make decisions on where to improveorganisational performance Point of

sales

Emotional affinity

Staff

Thre

at

to r

ela

tionship

Where to focus resources to deliver the optimal customer experience?

Networkcoverage

Innovativeproducts

Customer Experience

© TNS 2014

Thre

at

to r

ela

tionship

58 Gain in relationship

Cloudservices

Customers are unique

Data integration is key

The principles underpinning our approach

Best is not always right

Context matters

Customer Experience

© TNS 2014

is key

The optimal return

Customer Experience

© TNS 2014

The optimal return

Striking the balance – Return on relationship

Sale

s (

US$) 600

700

800

Optimalbalance

Sales:+ 10%

Strength of relationship

+ 10 pointsSales:

+ 1.5%

Strength of relationship

+ 10 points

Customer Experience

© TNS 2014

-50 -25 0 25 50 75 100 125 150

Sale

s (

US$)

Strength of relationship

200

300

400

500

Crack the Customer Code – Make an impact – Achieve the optimal return

Individual context

Competitive context

Relationship strength

Spendmoreor less?

Stayor go?

Customer experiences

Product

Process

Companyperformance

Customer behaviour

Customer Experience

© TNS 2014

Speakpositivelyor negatively?

moreor less?experiences

across…

People

Emotion

We help you make winning customer decisions

Customer Experience

© TNS 2014

Find out more: www.tnsglobal.com/customer-code

For further info:

Cristina ColomboCustomer Experience and Employee Engagement Practice Lead

cristina.colombo@tnsglobal.com