organization’s readiness to deliver on customer experience

ORGANIZATION’S READINESS TO DELIVER ON CUSTOMER EXPERIENCERICHARD CRAMERBJÖRN BIERHAALDERDEVA RANGARJANBERT PAESBRUGGHE

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© Vlerick Business School

AGENDA

2

Relation between shared values in company and the difference in opinions

What are the points of attention for sales managers?

Differences in perception CEO and BUM

B2B and B2C: different focus in customer centricity

Size of the company: coordination mechanisms are key

METHODOLOGY

© Vlerick Business School4

A lot of research on customer experience, not on organization’s readiness to deliver on the promises to their customers

Quantitative research

150 respondents: focus on Financial Service companies in The Netherlands

Online survey between May and June 2014

IMPORTANCE PERFORMANCE

PERCEIVED

VERSUS

IN GENERAL


On average, the perceived performance is scoring weaker than the perceived importance for each statement

“On average we are performing less good than we would like to be performing: actual performance is less than we would like to see.”

The top four important and top three performance statements have at least one thing in common: collaboration

IN GENERAL

0

0.5

1

1.5

2

2.5

3

3.5

4

How

important

is this

statement

for thecompany?

How is the

company

performing

for this

statement?

3.97

3.22

Average score on 5


NEGATIVE CORRELATION BETWEEN WHAT IS PERCEIVED AS IMPORTANT AND THE GAP WITH THE ACTUAL REALITY OF ALL STATEMENTS

7

Variance Importance

Importance

The lower the perceived

importance is, the higher the variance

will be.

This could mean that the items that are perceived as being very important are shared values in the organization with better aligned opinions as a result

Average score on 5

5

4

3

2

1

-Understanding of the latent needs of the customers

-Using customer insights to improve our organization

-Having a good CRM tool to help our customer facing employees be more productive

-using the customer satisfaction results to better manage the relationship with our third-party installers/value-added resellers

-Having clear defined value propositions for every segment of customers

-Being encouraged to create social ties across: customers, suppliers, different business units within our company, different departments within our company, intermediary/distributors

-Aligning the internal business processes to meet the needs of the customers

-Willingness to share customer related issues/ information with colleagues from other departments-Cross departmental task forces are used frequently to discuss customer issues and solutions-Willingness to work together with partners to ensure superior customer value creation-Willingness amongst personnel to work together with personnel from other departments to solve customer issues-Having adequate knowledge about the jobs that the customers want to get done-Constantly measuring the level of customer satisfaction with our product/service offerings-Having frequent, formal collaborative meetings between different departments to discuss customer issues

Low Performance High Performance

-Having frequent, formal collaborative meetings withpartners (suppliers, intermediary, broker, branch office, even customers) to support customer value creation-Focussing on well defined customer segments with specific customer needs

-There is customer contact at all levels of our organization

-Staff members are selected for their relational capabilities

-Having a clear, well defined Go-to-Market strategies for our markets (Go-to-Market strategies will include Key account Management Policies, Dealer/Installer Management Policies, E-Commerce Policies, etc)-Efficiency in our organization relates directly to being more customer centric-Having common customer related 'first time rights', responsiveness, NPS, etc. shared between our internal departments-The organization design is based on customer teams-A clear distinction between customer responsibility andprocess responsibility is in place-Having active rotation of personnel across functionalities/departments

High Importance

Low Importance


DISCUSSION ON THE MATRIX

To what extend are the collaborations really helpful to get a better understanding of the customer?

Internal discussions: not enough customer focussed?

Why are the ‘definers’ of an organization not perceived as being important?

Why is there an inconsistency: we vinden dat het belangrijk dat mensen samen werken en waaromvinden we het niet belangrijk om ze erop teselecteren?

partners

We vinden het belangrijk om samen te werken, gaan we dat ook actief organiseren?

10


RANKING OF THE BIGGEST GAPS: WHERE DO WE WANT TO PERFORM BETTER?

11

1. We have a good CRM tool to help our customer facing employees be more productive

2. We have a clear understanding of the latent needs of our customers

3. We use the findings of the customer satisfaction results to better manage the relationship with our third-party installers/value-added resellers

4. We have a clear, well defined Go-to-Market strategies for our markets

5. Cross departmental task forces are used frequently to discuss customer issues and solutions

0 0.5 1 1.5

CRM

Go-to-market strategy

Using findings of customersatisfaction results

Understanding of the latentneeds

CRM

Gap

Gap

CEOBUM

VERSUS


DIFFERENT FOCUS AND DIFFERENT PERCEPTIONS ON A 5 POINT SCALE

CHIEF EXECUTIVE OFFICER

Understand the customer

Av. on importance: 3,68

Av. on performance: 3,06

Formal structures

BUSINESS UNIT MANAGER

Improve collaboration

Av. on importance: 4,06

Av. on performance: 3,34

>hands-on mentality

13


RANKING OF THE BIGGEST GAPS BETWEEN PERCEIVED IMPORTANCE AND IMPORTANCE BETWEEN CEO’S AND BUM’S

IMPORTANCE


2. There is a willingness amongst the personnel to share customer related issues/ information with their colleagues from other departments/business units

3. There is customer contact at all levels of our organization

4. Cross departmental task forcesare used frequently to discuss customer issues and solutions

5. There is a willingness to work together with partners(suppliers, intermediary, broker, branch office, even customers) to ensure superior customer value creation

PERFORMANCE

1. We constantly measure the level of customer satisfaction with our product/service offerings


3. We use the findings of the customer satisfaction results to better manage the relationship with our third-party installers/value-added resellers

4. There is customer contact at all levels of our organization

5. Our organization design is based on customer teams

14

B2B B2B+B2C

VERSUS

COMPANIES


IMPORTANCE - PERFORMANCE

16

B2B B2B+B2C Difference

Importance 3,77 4,13 -0,36

Performance 3,19 3,29 -0,1

Difference 0,58 0,84

Why is there more consistency in the perception on performance and much less on what is perceived as important?

(Performance measures are less subjective?)


BIGGEST GAPS IN PERCEPTION OF WHAT IS IMPORTANT BETWEEN B2B AND B2B+B2C

1. Efficiency in our organization relates directly to being more customer centric


3. Cross departmental task forces are used frequently to discuss customer issues and solutions

4. We constantly measure the level of customer satisfaction with our product/service offerings

5. We have a clear, well defined Go-to-Market strategies for our markets (Go-to-Market strategies will include Key account Management Policies, Dealer/Installer Management Policies, E-Commerce Policies, etc.)

6. We focus on well-defined customer segments with specific customer needs

17

0.51

0.56

0.57

0.61

0.66

0.68

0 0.5 1

well-defined customer segments

Well-defined go-to-market

strategies

Measuring the level of customersatisfaction

Cross-departmental task forces

CRM

Efficiency in our organizationrelates to customer centricity

Average size of the gap on a 5 point scale

Average size ofthe gap on a 5

point scale

SMELPOC

VERSUS

(LARGER PRIVATELY OWNED COMPANIES)


Respondents from Larger Privately Owned Companies (LPOC) perceive all statements as more important than employees from Small or Medium sized Enterprises (SME) except for:

“We work on aligning our internal business processes to meet the needs of the customers” with a small difference of 0.05 on average.

Possible explanation: Some statements are not really applicable for SME? Possible explanation: There is a need for other coordination mechanisms to share information amongst personnel when the company is larger?

THANK YOU!

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organization’s readiness to deliver on customer experience

Leadership & Management