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www.ClearActionCX.com
Invisible Customer Experience InnovationGetting Your Act Together
is the Best Way to Differentiate Customer Experiencefor Sustained Business Results
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Your Opportunity for Differentiation
1) CMO Council, Customer Affinity, 2007
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Your Opportunity for Differentiation
59%
75%
Our Service is
Above-Average
Your Service
Left Me
Somewhat
to Extremely
Dissatisfied
1) CMO Council, Customer Affinity, 2007
2) Accenture, Delivering the Promise, 2007
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31% 69% of Firms: Not High Commitment to Listening
32% 68% of Firms: Not Turning Problems into Opportunities
Your Opportunity for Differentiation
59%
75%
Our Service is
Above-Average
Your Service
Left Me
Somewhat
to Extremely
Dissatisfied
1) CMO Council, Customer Affinity, 2007
2) Accenture, Delivering the Promise, 2007
3) CMO Council, Turning Customer Pain into Competitive Gain, 2009© Copyright ClearAction. LLC All rights reserved.
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1%
Increase
of Positive
Word-of-Mouth
0.14% Revenue Growth
-London School of Economics
Advocacy Drives Growth study
How Much Revenue is Gained via Positive Word-of-Mouth
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1%
Reduction
of Negative
Word-of-Mouth
1%
Increase
of Positive
Word-of-Mouth
0.41% Revenue Growth 0.14% Revenue Growth
300% ROI on reducing negative buzz
compared to increasing positive buzz -London School of Economics
Advocacy Drives Growth study
3X ROI on Substance Versus Sizzle
Highest Growth from Ease-of-Doing-Business
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Good news is no news
No news is bad news
Bad news is good news!
-Jim Morgan, Chairman, Applied Materials
Embrace Warning Signals From Customers
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Nurture Customer-Centricity Constantly
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ClearActionCX.com/blog
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Customer
Feedback
Customer
Perceptions 1) Capture
Customer Inputs
Lagging
Indicators
WHY VOC is a lagging indicator:
Reveals what customers already think
Customer Experience Improvement Model
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Customer
Feedback
Action Plan
Metrics
Customer
Perceptions 1) Capture
Customer Inputs
2) Create
Action Plans
3) Communicate
Progress
Lagging
Indicators
Leading
Indicators
WHY VOC is a lagging indicator:
Reveals what customers already think
WHY action plan metrics are a leading indicator:
Predicts what customers will think
Customer Experience Improvement Model
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http://www.symantec.com/themes/theme.jsp?themeid=customer_driven&ptid=tab2
Close the Loop: Report Action Item Progress
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http://www.motorola.com/governmentandenter
prise/contentdir/en_US/Files/ProductInformati
on/ITL%2006.pdf
Close the Loop: Report Action Item Progress
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http://www.boeing.com/commercial/aeromagazine/articles/qtr_2_08/article_01_1.html
Close the Loop: Report Action Item Progress
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Interview Customers Survey Reports Presentations
• Interpretation• Graphs, Comments• Multiple Functions
Institutionalize Customer Experience Improvement
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Interview Customers Survey Reports Presentations
Conduct Workshop
APPLIED MATERIALS
CUSTOMER FOCUS MEASURES WORKSHOP
Execution andFeedback Plans
Voice of theCustomer
Improvement ActionPlans to Benchmarked
Targets
Customer SatisfactionMeasures
Customer Focus
Measures
Customer Perceptions
Customer Focus Measures(Internal - Leading Indicators)
1.
2.
3.
Action Plan(Include Program Name, Owner, Completion Date)
1.
2.
3.
4.
Customer Feedback(Voice of the Customer)
1.
2.
3.
Customer Satisfaction Measures(External - Lagging Indicators)
1. (Satisfaction Index)
2. (% Deterioration)
3 (% Improvement).4. (Competitiveness Index)
Confirm w/Clients
• Interpretation• Graphs, Comments• Multiple Functions
• Prioritization
• Progress Reports
Institutionalize Customer Experience Improvement
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Interview Customers Survey Reports Presentations
Conduct Workshop
APPLIED MATERIALS
Title of Action Plan
M1 M2 M3 M4
Actual & Target
Deadlines
1.) __________________________________________________
2.) __________________________________________________
3.) __________________________________________________
%
Owner
Problem Statement:
Goal:
Owner:
Action Plan:
APPLIED MATERIALS
CUSTOMER FOCUS MEASURES WORKSHOP
Execution andFeedback Plans
Voice of theCustomer
Improvement ActionPlans to Benchmarked
Targets
Customer SatisfactionMeasures
Customer Focus
Measures
Customer Perceptions
Customer Focus Measures(Internal - Leading Indicators)
1.
2.
3.
Action Plan(Include Program Name, Owner, Completion Date)
1.
2.
3.
4.
Customer Feedback(Voice of the Customer)
1.
2.
3.
Customer Satisfaction Measures(External - Lagging Indicators)
1. (Satisfaction Index)
2. (% Deterioration)
3 (% Improvement).4. (Competitiveness Index)
Single-Page Strategies
Operations Reviews Confirm w/Clients
• Interpretation• Graphs, Comments• Multiple Functions
• Prioritization• Actions + Metrics
• Drive Change • Progress Reports
Institutionalize Customer Experience Improvement
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Interview Customers Survey Reports Presentations
Conduct WorkshopMetric Dashboards
APPLIED MATERIALS
Title of Action Plan
M1 M2 M3 M4
Actual & Target
Deadlines
1.) __________________________________________________
2.) __________________________________________________
3.) __________________________________________________
%
Owner
Problem Statement:
Goal:
Owner:
Action Plan:
APPLIED MATERIALS
CUSTOMER FOCUS MEASURES WORKSHOP
Execution andFeedback Plans
Voice of theCustomer
Improvement ActionPlans to Benchmarked
Targets
Customer SatisfactionMeasures
Customer Focus
Measures
Customer Perceptions
Customer Focus Measures(Internal - Leading Indicators)
1.
2.
3.
Action Plan(Include Program Name, Owner, Completion Date)
1.
2.
3.
4.
Customer Feedback(Voice of the Customer)
1.
2.
3.
Customer Satisfaction Measures(External - Lagging Indicators)
1. (Satisfaction Index)
2. (% Deterioration)
3 (% Improvement).4. (Competitiveness Index)
Single-Page Strategies
Incentives Operations Reviews Confirm w/Clients
• Interpretation• Graphs, Comments• Multiple Functions
• Prioritization• Actions + Metrics• Leading & Lagging
• Recognition & Bonuses • Drive Change • Progress Reports
Institutionalize Customer Experience Improvement
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Who Owns the Customer Experience?
Sales
Service
Channels
Partners
Marketing
Quality
DesiredOutcomes
TotalCosts
Money
Time
Energy
Psychic
TotalValue
Product
Service
Personnel
Image
NeedAwareness
NeedExtinctionCircumstance
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Channel Customer Voice into Company
19
PoliciesProcesses
Culture
Affinities
Convenience
Product
Service
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Help Everyone Own the Customer Experience
Sales
Service
Operations
Manufacturing
Channels
Engineering
Finance
Human Resources
Legal
Marketing
Quality
Safety
Suppliers
Partners
Facilities
Information Technology
Purchasing
etc.
DesiredOutcomes
TotalCosts
Money
Time
Energy
Psychic
TotalValue
Product
Service
Personnel
Image
NeedAwareness
NeedExtinctionCircumstance
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Airlift & Tanker (A&T) 1998 Malcolm Baldrige National Quality Award
http://www.bptrends.com/publicationfiles/11-05-WP-
BoeingATBPM-Garretson-Harmon.pdf
Everything Revolves Around Customer Experience
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Process Improvement at Root Level
Market Results:
Customer's
View
Quality Results:
Manager's
View
Process Drivers:
Team's
View
Root Causes:
Leading
Measures
1) Why?
2) Why?
3) Why?
Roo
t of P
robl
em
Service Too
Expensive
Under-Utilized
Service
Value
Unappreciated
Customer Data
Not Integrated
Overselling
Communication
Issue
Incentives
Not Balanced
Instructions
Not Clear
4) Why?
Send root cause reports to originators
Outdated
Supply List
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Discover Each Group’s Role in CEM
Department: __________________
Our RoleIn Outcomes
Our InternalCustomers’ Roles
In Outcomes• x• x• x• x
• x• x• x• x Customer Survey Results
= Customers’ Desired Outcomes
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Department: __________________
Our RoleIn Outcomes
Our InternalCustomers’ Roles
In Outcomes
Our Possible Detractors to Outcomes
• Inconsistency:
• Overload:
• Waste:
Our Possible Value-Add to Outcomes
• Time:• Place:• Access:• Form:• Features:• Ease:
• ___________• ___________• ___________• ___________
• ___________• ___________• ___________• ___________
Customer Survey Results= Customers’ Desired Outcomes
Engage Everyone in Experience Innovation
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Top-Down Objectives & Bottom-Up Metrics
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Corporate
Objective
15% YoY C Sat
Division
Objective
Process
Improvements1. Cascading
Focus
2. Cascading
Focus
3. Cascading
Focus
Department
Objective
Timely Responses
Team
Objective
Confirm Solutions
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Top-Down Objectives & Bottom-Up Metrics
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Corporate
Objective
15% YoY C Sat
Division
Objective
Process
Improvements
4. Team Metrics
% Resolved < 48 Hrs
1. Cascading
Focus
2. Cascading
Focus
3. Cascading
Focus
Department
Objective
Timely Responses
Team
Objective
Confirm Solutions
5. Department Metrics
% Response < 1 Wk
6. Division Metrics
% Automation
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Workshops for Everyone to Improve CEM
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Root Cause MetricCustomer-Focused Problem Statement
Root Cause Statement
Root Cause Goal
Goal Owner (Person)
Goal Action Plan Action Owner (Person) Action Deadline (Date) Goal Impact
1)
2)
3)
4)
Week 1 Week 2 Week 3
Weave CEM into Staff Meetings, Ops Reviews
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B CA D E
Total Company
BU #2 BU #3 BU #4BU #1Org A BUs
BU #1
BU #1Org C BUs BU #2 BU #3 BU #4
BU #4BU #3BU #2Org B BUs
Help Teams Help One Another
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.
Cross-Functional
Teams Formed
Management's
Challenges
Announced Project Approach
Identified
.
Current Performance
Target
Motivate Prevention & Innovation
Team Chronicles
Progress
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.
Cross-Functional
Teams Formed
Management's
Challenges
Announced Project Approach
Identified
.
Current Performance
Target
Constructive Feedback
from Panel of Judges
Wide Array of Congratulations
- or -
Chance to Re-Submit
Motivate Prevention & Innovation
Team Chronicles
Progress
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NeedAwareness
NeedExtinction
EvaluatingAlternatives
AdditionalInformation
SalesContact
Word-of-Mouth, AdsSocial Media, Website
OrderingActivities
FulfillmentActivities
Problem ResolutionCross-Sell, Community
Initial UseExperience
Familiarization& Learning
Update Voice-of-Customer to Understand Whole CX
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OU
R
PR
OC
ES
SE
S
TOUCH-POINTS
AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY
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NeedAwareness
NeedExtinction
InitiatingSituation
ConsideringNeeds
IdentifyingAlternatives
EvaluatingAlternatives
InitialAssessment
AdditionalInformation
Decision Process
SalesContact
Word-of-Mouth, AdsSocial Media, Website
OrderingActivities
FulfillmentActivities
Problem ResolutionCross-Sell, Community
Initial UseExperience
Integration withPeople/Things
Familiarization& Learning
Adaptation,Extension,Disposal
Usage Steps
Customer Experience is More Than Touchpoints
CircumstanceCircumstance
© Copyright ClearAction LLC. All rights reserved.
OU
R
PR
OC
ES
SE
S
CU
ST
OM
ER
S’
PR
OC
ES
SE
S
TOUCH-POINTS
AWARENESS CONSIDERATION PURCHASE DELIVERY LOYALTY
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Inspire Innovation via Full Use of CEM Data
Complaint LogsSales/Service
Reports
Surveys/Win-Loss
Reports
CRM Database/
Blogosphere
Create or Enhance
Customer Experience
Personas
Panoramic View of Customer Experience:
Need
Awareness
Need
Extinction
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Past Current Future Ideal
= Value Quotient
Solution A
Solution B
etc.Val
ue Q
uotie
nt
Circumstance
How Customers Judge Value
History
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Desired Outcomes
Undesired Outcomes
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Past Current Future Ideal
Desired Outcomes
Undesired Outcomes= Value Quotient
Solution A
Solution B
etc.Val
ue Q
uotie
nt
Circumstance
Outcome A Outcome B Outcome C Outcome D
Solution A
Solution B
etc.Val
ue Q
uotie
nt
Circumstance
Ideal
How Customers Judge Value
History
Priorities
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Address Entire Customer Experience
DesiredOutcomes
Product Service
Business Model
Affinities Convenience
Policies Processes
Culture
Means-to-an-End
Firm’s Solution
TotalCosts
Money
Time
Energy
Psychic
TotalValue
Product
Service
Personnel
Image
NeedAwareness
NeedExtinctionCircumstance
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Prevent Recurrence Through Systems Thinking
• Analogies
• Connectivity
• Framing
• Patterns
• Perspective
• Structure
LIKE …
DesiredOutcome
Barriers
Solutions
Why
Solutions
FuturePresentPast
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Ease-of-Doing-Business = Invisible Innovations
Stream Relevant Listening
Data Segments to ALL
Departments
Good news is no news,
No news is bad news,
Bad news is good news!
Make it Easy
for Employees to Accept
Customers’ Constructive Feedback
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Handle Complaints
Systematically Like ‘RMA’
RMA = Returned Materials Authorization Process
APPLIED MATERIALS
CUSTOMER FOCUS MEASURES WORKSHOP
Execution andFeedback Plans
Voice of theCustomer
Improvement ActionPlans to Benchmarked
Targets
Customer SatisfactionMeasures
Customer Focus
Measures
Customer Perceptions
Customer Focus Measures(Internal - Leading Indicators)
1.
2.
3.
Action Plan(Include Program Name, Owner, Completion Date)
1.
2.
3.
4.
Customer Feedback(Voice of the Customer)
1.
2.
3.
Customer Satisfaction Measures(External - Lagging Indicators)
1. (Satisfaction Index)
2. (% Deterioration)
3 (% Improvement).4. (Competitiveness Index)
APPLIED MATERIALS
Title of Action Plan
M1 M2 M3 M4
Actual & Target
Deadlines
1.) __________________________________________________
2.) __________________________________________________
3.) __________________________________________________
%
Owner
Problem Statement:
Goal:
Owner:
Action Plan:
Make Action-Planning Easy &
Motivate Follow-Through
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Ease-of-Doing-Business = Invisible Innovations
Stream Relevant Listening
Data Segments to ALL
Departments
Good news is no news,
No news is bad news,
Bad news is good news!
Make it Easy
for Employees to Accept
Customers’ Constructive Feedback
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Do you like these concepts?
Let us help you master them
to increase your company’s growth!
Contact us today:
tel +1 408 687 9700
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ClearAction clients praise our insights on actionability & engagement
“ClearAction taught us things
that wouldn’t readily cross our
minds and has increased our
efficiency & accuracy in many
areas. We highly recommend
ClearAction as a business
consultant.”
“The cross-functional collaboration
necessary to successfully manage
the customer experience requires
big picture, systems thinking.
ClearAction brings very practical,
well-thought out approaches to get
the internal cooperation needed.”
“ClearAction is very dependable
and detail-oriented, and has an
extremely high sense of integrity.
There's no question ClearAction
will do what's needed to ensure
the work is done correctly and the
client's best needs are taken into
account.”
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Consulting Roles
We have provided ClearWisdom™ to dozens of companies
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Customer Experience Optimization Talk Show
Hear interviews with companies such as:Adobe, Aon, CenturyLink, Cisco, Citrix,
Coca Cola Enterprises, Dell, EMC, GE, HP, ICW, Intuit, Kimpton, NCR, Philips, Safelite,
Sungard, SunTrust, Symantec, TELUS, tw telecom, Virgin Mobile, Wells Fargo
http://ClearActionCX.com/cx-podcasts
e-books available at ClearActionCX.com/cx-books
or Amazon Kindle:Metrics You Can Manage For Success
Customer Experience Improvement MomentumInnovating Superior Customer Experience
white paper available at ClearActionCX.com/cx-articles
Employee Engagement in Superior Customer Experience: 4 Overlooked Key
Competencies for Sustainable Results
Resources about customer experience optimization
See more at
http://ClearActionCX.com/best-practices
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For More About Customer Experience:
www.ClearActionCX.com/best-practices
tel +1 408 687 9700