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The 7 Fundamentals of a
Successful Customer
Experience Program
Beyond Philosophy
Speaker Panel
:
Colin Shaw, Founder & CEO
Zhecho Dobrev, Consultant
www.beyondphilosophy.com 1 Beyond Philosophy © 2001 - 2012
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www.beyondphilosophy.com 2
1. Viewer Window 2. Control Panel
Beyond Philosophy © 2001 - 2012
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Who are Beyond Philosophy?
We work in many countries
across several continents Customer Experience is all
we do!
We are pioneers in the
Customer Experience
space.
Thought leadership is our
differentiator. We have literally written
the books on Customer Experience.
Evidence based consulting -
we look for what really drives
business value
We maintain links with
academia to keep us aligned
with the latest breakthroughs
We put emphasis on the
emotional side of customer
experience
Beyond Philosophy © 2001 - 2012
All rights reserved www.beyondphilosophy.com
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Some of our clients…
4 Beyond Philosophy © 2001 - 2012
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Bloomberg confirmation…
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Increase in Net promoter Score: “As a result of its customer
experience efforts, NPS has improved from -10 to +30”
Increases shipping volume. “Maersk correlated a 4 point
increase in Net Promoter Scores with a 1% increase in
additional volume shipped by customers”.
Training improves Net Promoter Scores in local regions.
“Maersk gave regional divisions the option of putting regional
customer experience councils in place. The 55 regions that have
set up local councils also received a three-day training course in
customer experience improvement methods. The firm then did a
study comparing regions with and without a council. The result:
participating local offices score 10 points higher on their NPS
than those offices that opted out”.
6 Beyond Philosophy © 2001 - 2012
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7
Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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Best Practice:
40 percentage points increase in Net Promoter Score
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Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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Senior management engagement
Realise that they don’t know
what they are talking about!
Be opportunistic
You need to gain their respect -
Don’t be a ‘yes’ person.
Be enthusiastic!
Show me the money!
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Investing in Customer Experience pays off dividends…
Literally!
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Source: http://cfigroup.com/downloads/Customer_Satisfaction_and_Stock_Returns_CFI_Group.pdf
Beyond Philosophy © 2001 - 2012
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C-level Executives Need to Embrace the Customer
Experience
Investors hate risk
• strong customer retention =
less risk
Good CE generates superior
returns
• Customer satisfaction is critical
for repeat business
• Repeat business is usually
very profitable
• …as long as their loyalty
comes from their satisfaction
and not because prices are low
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Employee engagement
Communications
Training
Customer Experience team
Engagement in experience
design
Ideation
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Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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Human being are made up in a certain way
Experience Psychology
We see things and things are
done to us:
Conscious & subconscious
We feel things
Emotions
We act:
Can be seen as rational behaviour
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Experience Psychology Nature: The need to feel safe
– Maslow and Insurance
Nurture: You should
have insurance
Conscious: Recommends
options for me to keep the
cost of my product plan
within my budget
Subconscious: Listens to
me and acknowledges my
concerns
Emotional Profile Customers do things • Customers complain as
they can’t understand
why they have brought
one product but you treat
as 5 separate products
• Recommend you to
others
• Put phone down when
waiting for you to answer
Beyond Philosophy © 2001 - 2012
All rights reserved www.beyondphilosophy.com
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A Customer Experience is made up of all these
aspects…
Experience
Rational
Experience Psychology
Emotional
Conscious
Sub
conscious
16 Beyond Philosophy © 2001 - 2012
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Most organization are one dimensional
Experience
Rational
Experience Psychology
Emotional
Conscious
Sub
conscious
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Experience
Rational
Experience Psychology
Emotional
Conscious
Sub
conscious
Most journey mapping tools just look
at the rational experience and miss the
underlying cause of an experience
Beyond Philosophy looks
at all these aspects
Beyond Philosophy © 2001 - 2012
All rights reserved www.beyondphilosophy.com
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2 years of baseline research with London Business School ( 2005 – 2006) identified
20 emotions clustered into 4 hidden factors and that drive/ destroy value for business.
www.beyondphilosophy.com 18
How do we know which emotions drive business
value?
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Getting a Card 1
Ending my Relationship Extending my Relationship
Servicing my Account Using my Card 2 3
4 Having Financial Difficulty 5 6
Credit card company example…
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Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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Organizations are obsessed with fixing the basics
www.beyondphilosophy.com 21
Simplicity
67%
Friendliness Delight/Wow Positive
Emotions
33%
Total Quality Efficiency
8% 8%
Fixing the Basics
Beyond Philosophy © 2001 - 2012
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27%
8%
Source: Beyond Philosophy
original research ‘Seven key
ingredients for a successful
Customer Experience program
in Telecoms”, 2012
Question: Which of the
following elements describe
best the CE you are trying to
deliver?
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Priority Order of the Attributes (Combined desirability and current value)
To
p T
en
Relative Magnitude 0 + -
Desired by Customer Effect on Value
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24
Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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Yet, are businesses operationalizing emotions?
www.beyondphilosophy.com 25
Yes
Do you use customer journey
maps within your company?
15%
85%
No Yes No
70%
Have you defined what emotions
to evoke at certain customer
touch points?
30%
Beyond Philosophy © 2001 - 2012
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Negative Emotion Points
www.beyondphilosophy.com 26
Cognitive
Dissonance
Peak End
Rule
Prospect
Theory
Cognitive
Dissonance
Getting the card
Recommended by a
friend/ direct mail
Evaluation of offer
•Web search
•Conversation with the
agent
Still
interested?
Yes
Receipt of call /
confirmation
Awareness
No Did you
miss it?
Getting the card
Cross sold by an agent
Application Wait for confirmation Exit
Receipt of
Welcome pack
Fill in enrollment forms
or call Company
•PP
•Benefit 2 Partners
•Direct Debit
Do you need
your DD and
supp cards
transferred?
Are you
aware of the
waiting time?
Are you
just about
to ?
Yes
No
Chase:
• Benefit 1
• Benefit 2
Yes
Wait
No
Receive
Benefit 1 &
Benefit 2 Cards
Receive
Statement
Is it all clear
to you i.e.
DD set up
etc?
Call to book /
tickets Yes
No
Call to chase the
DD
Receive DD
cancellation
letter
2nd call to chase
the DD
Call to authorise
someone to act
on my behalf
Download 3rd
party
authorisation
form online
PA to call to
book on CM’s
behalf
2nd call to
authorise
someone to act
on my behalf
Apply for a
supplementary
card online
Wait 10 days for
a response from
XXX via the
post
Call XXX to check
status of Benefit 1
card
Call Benefit 1 to
check status of card
Call Benefit 1 to ask
about membership
number
2nd Call to XXX to
check status of PP
card
Yes
No
Fill in & Acct
Disclosure &
Authorisation
form
Send signed
form via post or
fax
Yes
No
Receipt of
Supp card
Beyond Philosophy © 2001 - 2012
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27
Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
![Page 28: Mobi system 2 account 1910 nznz](https://reader034.vdocuments.site/reader034/viewer/2022042809/5f8d068e9f7b2b2fc73c911f/html5/thumbnails/28.jpg)
Who owns the Customer Experience?
www.beyondphilosophy.com 28
CEO
(President)
Marketing Operations Customer Service Sales Independent Cross-
Functional CE Unit
Customer
Experience Customer
Experience
Customer
Experience
Customer
Experience
Majority 2nd option Minority
Mature
approach
Beyond Philosophy © 2001 - 2012
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2nd option
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Five Stages of
Organizational Customer Experience Journey
www.beyondphilosophy.com 29
Responsibility
Au
tho
rity
No need for Chief Customer Officer and control over departments
Beyond Philosophy © 2001 - 2012
All rights reserved
• However:
• Dispose of limited budget
• No authority to:
• affect change in other departments
• access budgets in other departments
• Identify Problems
• Findings passed up the chain for others to act
• Study Customer Expectations
• Analyse Cust. Feedback
• Responsible for:
• customer measures
• Prioritise initiatives
• Facilitate changes
• Consult other department
• Equal authority to any of the
functional groups
• Decisions have to be signed by
the CE member
• Veto rights
• CE people introduced earlier on in the process
- two gate entries e.g. in the design phase and
later on in the final testing phase
• Meet the board twice a month
• Appointments to talk to the CEO
• Chief Customer Officer
• Authority over other departments
• HR
• Ops
• Inputs into Operational Budgets
• Sets the customer measures and is
responsible for achievement cross-functionally:
• Sets the cultural framework
Naïve Stage
Low End Transactional Stage
High End Transactional Stage
Enlightened Stage
Natural Stage
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Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
![Page 31: Mobi system 2 account 1910 nznz](https://reader034.vdocuments.site/reader034/viewer/2022042809/5f8d068e9f7b2b2fc73c911f/html5/thumbnails/31.jpg)
www.beyondphilosophy.com 31 Beyond Philosophy © 2001 - 2012
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32
Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
![Page 33: Mobi system 2 account 1910 nznz](https://reader034.vdocuments.site/reader034/viewer/2022042809/5f8d068e9f7b2b2fc73c911f/html5/thumbnails/33.jpg)
Naive to Natural
33
Unconscious
Competence
Conscious Competence
Conscious Incompetence
Unconscious
Incompetence
Sub- conscious
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35
Seven fundamentals of a successful Customer Experience
program…
Identify what drives & destroys value in your experience
Plan to engage the senior execs and employees
Define the Customer Experience you are trying to deliver
Embrace Customer emotions and experience psychology
Design a deliberate Customer Experience
Establishing effective governance
Implement new measures & remunerate against them
2.
3.
1.
4.
5.
6.
7.
www.beyondphilosophy.com Beyond Philosophy © 2001 - 2012
All rights reserved
Customer
Centric
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www.beyondphilosophy.com 36 Beyond Philosophy © 2001 - 2012
All rights reserved
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Colin Shaw Founder & CEO @ColinShaw_CX Zhecho Dobrev Consultant @ZhechoDobrev
Thank you!
www.beyondphilosophy.com