1. Profit-Focused Customer Care:
Seven Proven Strategies
View The Webinar
Presented by: John Goodman, Vice Chairman, TARP Worldwide
Hosted by: Sally Hurley, President, VIPdesk
September 15, 2009
2. About TARP
• Founded in 1971—38 years of customer experience leadership
– White House Complaint Studies 1970s-80s (instigated 800#s and GE
Answer Center)
– Assisted 6 Baldrige Winners and 43 Fortune 100 Companies
– Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and
“word of mouse” (eCare and Click & Mortar studies 1999)
• Offices in Wash., D.C. and London
• Credited with developing the approach
for quantifying the impact of quality
on revenue, cost & WOM for companies
like Toyota/Lexus, Farmers Insurance,
USAA, American Express, HSBC, USAA,
3M, IBM, Compass Bank, Allstate, AARP,
FedEx, Canadian Tire Financial Services,
SunTrust, Neiman Marcus, & Chick-Fil-A.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
2
3. About VIPdesk
VIPdesk’s full suite of Brand Experience Management solutions include
Virtual Concierge and Contact Center Services, Social Media
Management, Experiential Programs, IVR Services and Voice of the
Customer Surveying & Analytics. Global industry leaders trust
VIPdesk to enhance their brands through our customer care and
loyalty programs.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
3
4. Formula For Maximizing Customer Satisfaction
DOING
EFFECTIVE MAXIMUM
THE RIGHT
CUSTOMER
JOB
RIGHT THE
+ CONTACT = CUSTOMER
SATISFACTION
MANAGEMENT & LOYALTY
FIRST TIME
Respond to
Individual Customers
Customers, donors, citizens
will:
Improved Identify Sources Use again
Product & Service of Dissatisfaction
Use or donate more
Quality
Tell others to use or donate
Conduct Root
Try your other products &
Cause Analysis services
Feedback on
Prevention
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
4
5. Employees Do Not Cause Most Customer Dissatisfaction
The majority of customer dissatisfaction is NOT caused by employee error or attitude but
by products that cause disappointment and broken processes*
Customer expectations Customer Employee
must be set and they must 20%-30% 20%
be educated on how - Wrong expectations- Fails to follow
-Fails to follow
to avoid problems - Customer error policy
and surprises. policy
-Attitude
At least Company 40%-60% Poorly designed products,
30% of - Products and services Processes, and marketing
contacts are don’t meet expectations create most unmet
preventable - Marketing miscommunication expectations. Further,
- Broken processes employees are often not
equipped with effective
*Finding based upon TARP analysis problem cause responses to problems.
data in over 200 consumer and B2B environments.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
5
6. Seven Strategies
1. Set proper customer expectations
2. Quantify impact for the CFO & CMO
3. Reduce Risk expenses
4. Gaining the CEO’s ear – becoming the Chief
Customer Officer
5. Enhance your front line success
6. Implement technology that customers will enjoy –
delivering psychic pizza
7. Sensibly creating remarkable delight
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
6
7. 1. Set Proper Expectations
• Welcome packages
• Welcome calls
• Encourage questions before customers get
into trouble
• Confirmations
• Reconnect
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
7
8. 2. Demonstrating Financial Impact Of
Prevention And Response To The CFO
50% Most
Satisfied Repurchasing = 2,000
25% 30% Some Not
Complain Mollified Repurchasing
= 6,000
200,000
Customers 20% Many Not
with Dissatisfied
= 9,000
Repurchasing
Problems
75% Do Not Some Not = 40,000
Complain Repurchasing
Total Customers At Risk = 57,000
Enhance revenue via preventing problems, soliciting more
complaints and Increasing percentage satisfied
when they do contact you
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
8
9. Show Fewer Problems Drive Higher Margins
Percent of customers dissatisfied with fees rises with number of problems.
90%
80% 74%
70%
60%
46%
50%
40%
30% 22%
20% 10%
10%
0%
No problems 1 problem 2 to 5 problems 6 problems or
more
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
9
10. Identify Transactions That Systematically
Cause Dissatisfaction
Problem reports % Loyal (Top 2 Box) # Contacts
Routine order 98 1.1
Shipment status 91 1.2
Product return 93 2.1
Shipping charges 88 2.1
Backorder status * 67 3.3
Call center overall average 91 1.9
Transaction which is biggest opportunity for improvement
Misuse of resources to intensively measure this transaction
Tie Survey Results to Call Monitoring Form*
*See tarp paper: Your monitoring and coaching may be doing more damage than good
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
10
11. Getting the CMO on Board: Show Service Is A
Word of Mouth Management Mechanism
Example calculation of potential impact
10% Tell
two = 2,000
delighted
10,000
customers 70% Tell
one = 7,000
satisfied
20% Tell = -12,000
dissatisfied six
-3,000
20% dissatisfaction can counter 80% satisfaction
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
11
12. Getting the CMO on Board: Show Service Is A
Word of Mouth Management Mechanism
Example calculation of potential impact
10% Tell
two = 2,000
delighted
10,000
customers 80% Tell
one = 8,000
satisfied
10% Tell = -6,000
dissatisfied six
4,000
10% decrease in dissatisfaction results in net positive WOM
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
12
13. 3. Reduce Risk Expenses
Injury,
But No
Claim/
Lawsuit
Well
Handled Expected
Escalated Claim/
Reported Lawsuit
Warned of
Problem Poorly Not Surprise
Potential
Occurs Handling Escalated Claim/
Problem
Lawsuit
Not Contributing
Reported Factors
Negative WOM
Exacerbating
Consumers/
Factors
PCP
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
13
14. 4. Become The Focal Point The Voice Of
The Customer
• Customer surveys
• Customer contact and interaction data
• Internal operations process and quality measures
• Together, these elements are used to identify
opportunities for product and service quality improvement
Surveys of Customer
customer + + = Total view of the
contact and Internal process customer
satisfaction and interaction data and quality data
loyalty experience
Take The Role Of Chief Customer Officer
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
14
15. 5. Make People Successful
• Stellar Leaders and Culture Are Great, But..
• Attitude - hiring
• Tools – flexible solution spaces & information
• Training – story telling
• Motivation – victory sessions & promotability
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
15
16. 6. Deliver Technology People Enjoy
• Why people hate technology
• Why they love it
• Delivering psychic pizza
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
16
17. 7. Inexpensively Create Delight
Average lift to repurchase or
Delight experience
recommend (Top Box)
Service beyond expectation - heroics 12%
Friendly 90-second staff interaction 25%
Personal relationship over months 26%
Tell me of new product or service I 30%
can really use
Proactively provide information on 32%
how to avoid problems or get more
out of your product
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
17
18. Average Change In Account Balance
Aver ag e Ch an g e In Mu t u al Fu n d Accou n t Bal an ce
Avg Ch an g e i n MF Accou n t Bal an ce ( Oct -Jan )
$5,000 No Contact Contact
$3,805
$4,000
$3,221
$3,000
$2,000 $1,638
$1,364 $1,184
$1,000
$0
Overall
Non-Orphan Orphan
-$1,000 -$778
-$2,000 Orphan Indicator
• The average increase in mutual fund account balance during the pilot was 2.7 times
higher for customers who received a courtesy call versus those who did not.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
18
19. Ten Myths About Service
1. Always exceed customer expectations
2. Answering the phone really fast is the key to success
3. People always prefer talking to people
4. The customer is always right
5. Complaints are down, things are getting better
6. Employees are the cause of most dissatisfaction
7. Price and cost cutting is the key to success
8. We’re at 90% satisfaction – let’s declare victory!
9. Measure Net Promoter and we’re done
10. We have a 100% satisfaction guarantee – everyone is
happy.
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
19
20. Summary
• Look across the whole customer experience and quantify in a
way the CFO and CMO accept
• Proactively deliver psychic pizza for prevention
• Measure satisfaction by issue to identify opportunities
• Measurement and VOC data are the key to support
• Better a Small Success Than a Big Disaster:
Practice Continuous Experimentation
• Outlined in detail in Strategic Customer Service published by AMACOM
• jgoodman@tarp.com or 703-284-9253
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
20
22. For More Information
• More Questions about Presentation or
TARP?
– John Goodman: jgoodman@tarp.com or
703-284-9253
• More information about VIPdesk or
home-based customer care?
– Sally Hurley: shurley@vipdesk.com or
703-837-3518
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
22
23. Find Us Online
Website: http://www.vipdesk.com
Blog: http://blog.vipdesk.com
Twitter: http://twitter.com/vipdesk
Facebook: http://facebook.com/vipdesk
LinkedIn: http://linkedin.com/companies/vipdesk
YouTube: http://youtube.com/user/vipdesk
Via RSS: http://twitter.com/statuses/user_timeline/23095083.rss
This presentation is the intellectual property of TARP Worldwide and for use only to illustrate
TARP’s methodology. Use of or distribution beyond that purpose is forbidden.
23