customer service strategy with ces

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Customer service strategy & CES as a metric to measure loyalty

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Presentatie tijdens de relatiedag van Cendris over Klantenservice strategie met Customer Effort Score als KPI.

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Page 1: Customer service strategy with ces

Customer service strategy & CES as a metric to measure

loyalty

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How often does companies patronize a company specifically because of its over-the-top service?

How often do consumers cut companies loose because of terrible service?

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Companies punish bad service more than they reward delightful

service.

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3 year period

75,000 B2C and B2B customers

Dozens of industries

North America Europe South Africa AustraliaNew Zealand

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According to conventional wisdom, customers are more loyal to firms that go above and beyond.

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Exceeding customers’ expectations during service interactions makes customers only marginally more loyal than simply meeting their needs.

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89% of Customer service managers say that their main strategy is to exceed expectations.

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84% of customers say their expectations had

not been exceeded during their most recent

interaction.

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“There is only little relationship between satisfaction and loyalty.”

Fred Reichheld

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20% of the satisfied customers say they intent to leave the

company.

28% of the dissatisfied customers intent to

stay.

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Loyalty Disloyalty

Product quality

Brand

Service

Service

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We buy from a company because it delivers quality products, great value, or a compelling brand.

We leave one, because it fails to deliver on customer service.

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Hoeveel moeite heeft het jou als klant gekost om iets voor elkaar

te krijgen? Op de

schaal van 1 tot 5

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CES

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Customers’ intention to:

- Keep doing business with the company - Increase the amount they spend

Customer loyalty

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94% of the customers who report low effort have an intention to

repurchase

88% would increase their spending

1% would speak negatively about the company

81% would spread negative word-of-mouth

Low Effort High Effort

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In welke mate zou je mijn bedrijf aanbevelen binnen jouw netwerk?

Net Promotor Score

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London School of Economics 2005

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Captures customer expressions at the transaction level

Captures more-holistic impressions of a

company

NPSCES

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Implications

• Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason.

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9.732 customer responses102 service companies19 industries

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Implications

• Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason.

• Asking the CES question is a good predictor of the impact of the service experience on customer loyalty, but it won't tell you what to do about it.

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- What are the various customer service touchpoints? 

- What effort does the customer encounter as part of the touchpoint? 

- What are your customer interaction systems and processes like?

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?

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1. Don’t just resolve the current issue - head off the next one

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2. Arm reps to address the emotional side of customer interactions

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3. Minimize channel switching by increasing self-service channel “stickiness”

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4. Use feedback from disgruntled or struggling customers to reduce customer effort

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5. Empower the front line to deliver a low-effort experience

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- If you combine the metrics in order to predict loyalty, the predictive power is higher than only using NPS and CSAT alone.

- Simplicity is nice, but too simple is dangerous.

Is CES the right metric?

- The number of CES best practices is growing.

- Only for measuring transactional / situational loyalty. It’s not a absolute loyalty metric.

- Relative performance over time, unique to a single firm.

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“78% of all our perceptions are wrong”Albert Einstein

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http://www.businessmonitor.nl/businessmetrics

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Thank You!

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drs. KATHERINE KUCHERENKOOnline Business [email protected]@katherinekucher06 423 923 66