connect the roi dots with a customer experience value strategy
DESCRIPTION
While customer experience is a top priority among business leaders, very few are successful in building a financial business case for their customer-focused efforts. As a result, customer experience improvement initiatives may not get the attention they deserve in the boardroom. In the presentation, “Connect the ROI Dots with a Customer Experience Value Strategy”, Don Ryan, senior partner, iKnowtion, a TeleTech Company, and Elizabeth Glagowski, editor-in-chief, Customer Strategist Journal, explore concrete steps companies can take to tie customer experience to financial impact. Learn how to: - Make the quantifiable business case for customer experience initiatives - Translate NPS, customer experience scores, and other measurements into corporate financial terms using advanced analytics - Understand which metrics lead to financial outcomes, so you know which levers to pull Download the webinar replay file here: http://www.teletech.com/thought-leadership/webinars/connect-roi-dots-customer-experience-value-strategyTRANSCRIPT
1COPYRIGHT ©. ALL RIGHTS PROTECTED AND RESERVED.
Connect the ROI Dots with a Customer Experience Value Strategy
February 19, 2014
#customerstrategy
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Today’s Speakers
Elizabeth GlagowskiEditor-in-Chief
Customer Strategist Journal
Don RyanSenior Partner
Iknowtion, a TeleTech company
Deborah WallFormer Director,
Advanced Analytics, Citi
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Event logistics
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Agenda
Why Customer Experience Value Analysis Matters
Connecting the ROI Dots
5 Steps to Measuring Customer Experience Value
Q&A
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Why CX Value Analysis Matters
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Why CX Value Analysis Matters
• Your airline proactively books you on the next available flight, and
• Also updates your car and hotel reservations
93% consider customer experience a top strategic priority
But 86% say they don’t expect much value from customer experience investments
Source: Forrester Research, The State of Customer Experience Management: 2013
Major disconnect
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Why CX Value Analysis Matters
High customer experience scores correlate with:
• Higher intent to repurchase• Lower intent to defect• Likelihood to recommend to friends & family
But senior executives want more definitive proof…
Source: Forrester Research, The State of Customer Experience Management: 2013
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Why CX Value Analysis Matters
Only 37% of companies have earmarked a budget for customer experience initiatives
Source: Forrester Research, The State of Customer Experience Management: 2013
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Why CX Value Analysis Matters
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ConnectingThe ROI Dots
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Customer Experience (CX) Is the Product of Three Attitudinally Impactful Elements
Customized Value Propositions
Product Performance
Service Quality
Value propositions that are tailored to an
individual based on knowledge of that
person’s needs
How the customer is handled when he interacts with the
brand and the extent to which his issues are
resolved
How the product performs relative to
claims made about the product by the manufacturer
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Getting CX Funding: Four ways to speak the CFO’s language
Sales
Attrition Rates
Cost to serve
Customer acquisition
■ Greater product penetration
■ More frequent transactions
■ Bigger transactions
■ Sustained activity / usage
■ Fewer defections■ Contact
deflection■ Fewer repeat
contacts■ Lower AHT, etc.
■ More, high quality new customers
■ Market expansion
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• Your airline proactively books you on the next available flight, and
• Also updates your car and hotel reservations
• …Saving you from long lines and headaches
Understand and Quantify the Linkages
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5 Steps to MeasuringCustomer ExperienceValue
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5 Steps to Measure CX Value
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
Step 2Step 1 Step 4Step 3 Step 5
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Poll question
Of the five steps, which poses the greatest challenge to your firm?
1. Assembling an analytic data repository2. Tracking all customer interactions3. Monitoring customer experience scores4. Determining customer behavior changes5. Evaluating customer value impacts
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Industry trend:
Very few truly integrated data repositories that contain interaction histories
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
Step 2Step 1 Step 4Step 3 Step 5
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CX Value Analysis: Step 1
Aggregate data about customer attributes, transactions, interactions, engagement, and value
Integrate siloed data contained in various platforms, such as CRM, website, sales, and contact center systems
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
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CX Value Analysis: Step 2
Continuously assemble channel interaction data to understand the level of customer engagement
Monitor changes in customer behavioral trends and, importantly, gaps in activity
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
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Customer engagement takes many forms
Breadth of products
owned VRU calls
Branch visitsTrading frequency
Online portfolio
reviews
Surveys taken
Rep-directed planning session
Web visits
Live rep calls
Automated investment plan
Investment frequency DM/EM responsiveness
Example: Asset Management Firm
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CX Value Analysis: Step 3
Link individual customer experience scores (e.g., NPS, CXi, CSAT) to the customer record
Predict CX scores for those that have not completed a customer experience survey
Create an overall CX score for each customer
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
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Companies now routinely capture customer-level VOC data
• Online Pop-up Surveys
• Purchase Experience
• Contact Center Interactions
• Product Satisfaction
• Customer Service
Experience ..and CX scores can be estimated for those who do not complete a survey
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Model shows how the biggest gains in NPS could be achieved
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Poll question
Where do you see the biggest opportunity to move the needle on customer satisfaction or NPS at your organization?
• Problem resolution
• Providing best help
• Hold time
• Personal effort
• Listening
• Courtesy
• Automation ease of use
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Industry insight:
Resolving the problem with the first contact is highly impactful, large satisfaction drop off if not resolved by second contact
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CX Value Analysis: Step 4
Assess trends in individual customer behaviors, looking for changes after notable customer interactions and transactions
Correlate customer behavior activity with customer experience scores
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
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Service quality has significant impact at retail banks
Customers with satisfactory customer service experience are
5-10% more likely to open new account… …whereas customers with bad customer
experience are 10-20% less likely to open new account
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CX Value Analysis: Step 5
Assess the financial value of the “incremental” changes in customer behaviors resulting from changes in customer experience scores
Focus on key business metrics such as incremental purchases, attrition rate, cost to serve, and spikes in customer acquisition that can be attributed to improvements in customer experience
Assemble an
analytic data
repository
Track all customer interactio
ns
Monitor customer experience scores
Determine
customer behavior changes
Evaluate customer
value impacts
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Impact of Product and Sales/Service Quality on Purchase Loyalty
Customers purchasing at dealership with high sales/service rating are 14% more likely to buy again than those purchasing from dealership with low sales/service quality
Repeat purchase rate for customers driving vehicle with “excellent” quality is 35% higher that those driving vehicles with “fair” quality
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Key Takeaways
• Speak the CFO’s language
• Aggregate and integrate the appropriate data
• Understand, prioritize and continuously monitor your top customer value drivers
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Keep the Conversation Going
Subscribe to the Customer Strategist Journal
• http://bit.ly/CSjournal
Upcoming Customer Strategist webinars:
• Trust in financial services• Customer experience in new
healthcare reality• Case study: Optimizing technology for
superior customer experience
Follow us on social media:
• Twitter @PeppersRogers and @CustStratEditor
• Facebook.com/CustomerStrategist
• Google+
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Q&A Session
Elizabeth [email protected]
203.989.2191 @CustStratEditor
781-494-9989
Deborah [email protected]
203-355-1857