walmart- customer service experience
TRANSCRIPT
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Creating engaged associates and loyal customers
Improving Customer Satisfaction
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DEFINE
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DefineCurrent State• Insufficient customer participation on the customer survey
– Anecdotal customer issues:• 1. Survey Length• 2. Unsolicited promotions (checkbox default value is checked)
– Low scores in stores reporting low participation numbers• Possible cause:• Human behavioral patterns
– Negative Experience: informs1-20 people (average 14)» Impetus to endure tedious, lengthy survey completion
– Positive Experience: informs 0-2 people» Customer perceives the opportunity cost unfavorable» 15-45 minute survey time for statistically improbable odds
of winning a $1,000 gift card
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Define
Deliverables• Gain a representative sample of the consumer population
– Improve customer survey reliability– Enhance forecasting
• Eliminate customer experience gaps between actual quality and potential quality– Soliciting feedback continuously by driving customer survey
awareness
Scope• Store-level initiative• Specific focus on underperforming and high interaction areas
– Service Departments– Specialty Departments– Front-End
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Define
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Define• Tempkin Customer Experience Rating
– Walmart = 13th
• Tempkin Customer Loyalty Rating– Walmart = 14th
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Percent of Customers Planning to Repurchase based on Complaint Handling
73.0%
44.0%
15.0%
70.7%
52.4%
20.3%
79.9%
40.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Completely Satisfied Satisfied Not Resolved
Financial ServicesAuto ServiceLarge Durable Goods
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Increase in Customer Net Present Value (NPV) for a 5% increase in customer retention
95.0%
75.0%
35.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Advertising Agencies Credit Card Companies Software Companies
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Define
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MEASURE
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Measure
Key Metrics• Customer Count• Average $ Transaction• Customer Experience Track• Sales per Man Hour
Progress• Exponential increase within first month and gradual increases M-O-M
following initial implementation• Reevaluate for stagnation in figures over the trailing 6 month period
– Smooths out seasonal fluctuation curve
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Measure
Overall Merchandise Faster Friendlier Cleaner Price/Value
August 8.02 8.00 8.26 8.03 8.20 7.76
September 8.45 8.04 8.22 8.20 8.22 7.82
October 8.51 8.30 8.41 8.35 8.40 8.11
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MeasureCustomer Responses• August = 84• September= 243• October= 151
Success3 months• +10% Customer Experience in 3 month Exponentially Weighted
Moving Average (EWMA)• +5% in Average $ Transaction 3 month EWMA• +3.5% Customer Count Month-Over-Month
– Dramatically increasing repeat customer base• +2.5% Sales per Man Hour 3 month EWMA• Increased employee morale, teamwork, and collaboration
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Measure6 months• +5% in 3 month customer EWMA over 3 month evaluation• +5% in Average $ Transaction 3 month EWMA• +3.5% Customer Count Month-Over-Month
– Sustaining and further developing repeat customer base• +2.5% Sales per Man Hour 3 month EWMA• Increased associate engagement- Associate Opinion Surveys (AOS)
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ANALYZE
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Analyze• Current State
– Score polarization• Market Level
– 0.5-1 point range between highest and lowest stores• Store Level
– 0.4-0.7 point range between highest and lowest departments
• Critical Roles– Store Manager- project approval and promotion of objectives to
include cultural change in service mindset– Assistant Store Manager- spearhead initiatives and ensure proper
implementation– ZMS- conduct training and continuous development
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Analyze– Department Manager- set cultural norms through exemplary
behavior and follow-up with consistent evaluation of direct reports’ embodiment of values and approach
– Sales Associates, Cashiers, People Greeters- fully understand and execute proposed tasks to specification
• Resources– External vendor- banner design and printing– Food– Cooking Supplies– Highlighters
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IMPROVE
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Improve
• Constraints– Disengaged associates during the training process• Checklist phenomena
– Work and Planning Time• Creation of personalized training initiatives is time intensive• Delivery must be conducted with sizable groups to reduce work
impact
• Solutions– Develop targeted training • Cover key points and reasoning behind decisions• Simulate practical application with role-play scenarios
– Cashier Scripts• “Have you taken the survey this month?”• Include typical customer responses and appropriate associate
reaction
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Improve– Knowledge assessment• Designed for technical service areas: TLE, Electronics, Sporting
Goods (Hunting, Fishing)• Assures necessary foundational knowledge is readily available
to assist with complex, technical customer questions
• Maintaining high performance– Reward and Recognition Program (Quarterly)• Achievement Banner
– “Voted a Walmart Store of Service Excellence by our Valued Customers”
• Cookout for the entire Store (Annually)– Estimated expense: $500-600
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Work Breakdown Structure
Onboarding New Hires
Front-End Highlighting Repeat Customer InteractionService Area Interaction
Customer Service Training and Delivery
LEVEL 1
LEVEL 2
LEVEL 3
Develop Scripts
Knowledge Assessment
Cross-selling and Upselling Techniques
Relationship Building
Service Failure Response
Service Failure Response
Service Failure Response
Active Listening Techniques
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CONTROL
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Control• Monthly Customer Experience Progress Evaluation:
– 8.0 in all departments – 9.0 overall store rating– “Store of Excellence”
• Confirm positive trends:– Measure weekly value added metrics for an uptrend
• Measure Frequency and Severity of Customer complaints:(Daily)– Formal: letters to the president– Informal: issues voiced to any associate at the store level– Address outstanding matters with corresponding associate– Cover systemic service-related issues at storewide meetings
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Control
• Evaluate effectiveness of Customer Experience score:– Direct relation between CE and other metrics– Proportionately equivalent metrics based on baseline figures and
standard deviations
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Control• Future iterations
– 2nd
• Reconfigure Customer Survey– Allow for anecdotal input
» Identify an issue not covered in a structured layout with only prompted/targeted questions
» Additional ideas for question creation/assessment criterion» Measurement along other dimensions
– Reduce length» Encourage greater participation » Higher reliability- eliminate opt-out stemming from
protracted completion time: 30-45 minutes 3-10 minutes– 3rd
• Establish and design on-site training program nationwide– Widespread impact on customer service rankings– Instill brand loyalty in customers– Not relying solely on cost leadership point of differentiation
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Control– 4th• Customer Loyalty Program
– Rewards tied to purchase amount each year– Encourage repeat business– Expand purchasing breadth:
Consumer adopts mindset of a truly one-stop shop (aimed at saturated, affluent markets)
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QUESTIONS?