Venture For America Customer Experience
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Module on Customer Experience presented 7/2/12 to the inaugural Venture for America class
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Venture For America Customer Experience
- 1. Venture for America Marketing Module Lewis Goldman New Media Consulting, LLC July 2, 2012
- 2. Marketing Module Schedule 11:30 – Outline of the day, Customer Experience 12:15 – First Exercise – Best and Worst companies 12:45 – Working lunch – Exercise 2 – Customer touchpoints/failpoints 1:45 – Presentations – Customer touchpoints/failpoints 2:45 – Listen to the Customer 3:30 – Break, Survey Monkey 3:45 – Results from Survey 4:00 – Customer Acquisition and Lifetime Value 5:00 – Acquisition Exercise 5:30 – Presentations – Acquisitions and LTV 7/2/2012 2
- 3. Customer Experience - Outline • What is Customer Experience? • How do you measure customer satisfaction? • Why is it important? • Case Studies – Twitter and 1800flowers.com, Zappos, Comcast • Jiu Jitsu and its limitations – Tylenol case study • Customer touchpoints and failpoints • Questions • Workshop 7/2/2012 3
- 4. What is Customer Experience Customer experience* (CX) is the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, pur chase, use, cultivation and advocacy. It can also be used to mean an individual experience over one transaction; the distinction is usually clear in context. * Wikipedia definition 7/2/2012 4
- 5. How do you measure customer satisfaction? 7/2/2012 5
- 6. How do you measure customer satisfaction? • Customer Behavior – do they come back? • Customer Comments – private and public • Advocacy – Referrals • Customer satisfaction metrics – Satisfaction Level – Net Promoter Score – 10 Point scale, how likely are you to refer the product or service to a friend, Score of 9 or 10 are advocates, 1-6 are detractors. NPS is the difference between the two. • Engagement (sometimes) – Likes, people talking specifically about your product or service (Facebook) – Twitter Followers – Pinterest – YouTube Channel subscribers – LinkedIn company followers – Newsletter subscribers – Blog readers – Repeat visitors 7/2/2012 6
- 7. Why is Customer Satisfaction Important? • Colgate-Palmolive – New Assistant Product Managers and the decline of Fab, Dynamo, Ajax • Impact on enterprise value*: – Brands with great customer experiences command a 7 to 19% premium vs. competitors. – Portfolio of publically traded companies with top customer satisfaction scores outperformed all major stock indexes by at least 2X over the last 3 years. – 82% of people globally are more likely to recommend brands with outstanding customer experiences. • Top 5 – Google, Amazon, Ikea, McDonalds, Apple • Business impact in the age of social media * 2011 Global Brand Simplicity Index – Siegal+Gale 7/2/2012 7
- 8. Case Study – Twitter, 1800flowers.com vs. FTD.com, post Mother’s Day
- 9. Case Study - Zappos "We actually take a lot of the money that we would have normally spent on paid advertising and put it back into customer experience," says Tony Hsieh, Zappos' CEO. "We've always stuck with customer service, even when it was not a sexy thing to do. • 75% of Zappos sales from repeat customers • Repeat customers ordered 2.5X vs. new customers in the 12 months following a purchase • Returning customers spend 26% more than first-time customers 7/2/2012 9
- 10. Case Study – Comcast 7/2/2012 10
- 11. Case Study: Jiu Jitsu and Tylenol • Jiu Jitsu – Turning around a negative customer experience into a positive one and as a result creating advocacy. • Tylenol Case Study – October 1982, 7 people in Chicago died after taking extra-strength Tylenol capsules. Someone put cyanide into Tylenol capsules, then put the capsules in bottles on the shelf of drug stores. – At the time, Tylenol was the leading painkiller, with 37% of the market. After the poisoning, their market share dropped to 7% – Tylenol reacted by pulling all product off the shelf nationwide, being transparent with the media, and creating new, triple sealed packaging which is now standard for virtually all OTC pills. – Within 5 months of launching the new tamper resistant product, Tylenol’s share was back up to 30%, and the episode is considered the most effective crisis management case study in history and created the roadmap for handling future crisis. 7/2/2012 11
- 12. Customer Experience Touchpoints (Failpoints) • Setting expectations - Awareness – Brand/Product perception pre-launch – e.g. John Carter, The Avengers, the Blackberry Playbook and no email – Advertising – Word of mouth/Advocacy • Retail interaction - Consideration – Physical – Virtual • Purchase – Delivery – Ease of set up/use – Quality versus expectations – Value • Post Purchase Support – Customer Service support • Advocacy (or not) – Social Media – Loyalty/Retention programs 7/2/2012 12
- 13. Customer TouchPoints vs. Customer Experience 7/2/2012 13
- 14. Cross-touchpoint Customer Experiences 7/2/2012 14
- 15. Questions? 7/2/2012 15
- 16. Workshop Exercise • Break into Groups of 5 • Identify and agree upon 3 companies/products with the best customer experience and 3 with the worst – 10 minutes • Each group present 3 best and worst quickly – 2 minutes each group • Map out the Touchpoints/Failpoints for the Best and Worst, explain why the Best works and what the Worst can do to improve each Failpoint. – Lunchtime – 1 hour • Each group presents Best and Worst Touchpoints/Failpoints – 6 minutes each 7/2/2012 16
- 17. Customer Touchpoint Map Retail Post Advocacy/ Awareness Purchase Interaction Purchase Loyalty • Social • Physical • Delivery • Support • Repeat • Advertising • Virtual • Set up Purchase • Etc. • Value • Social Media 7/2/2012 17
Notas do Editor
- Two levels – duration of the relationship and one transaction – each is critical (one bad transaction ends the relationship).Fortunately, people are forgiving if you own up and make it right with them.
- Satisfaction – on a scale, how satisfied are you. Looking for 90%+ satisfaction.Net Promoter Score – Question – would you recommend this product or service to a friend or relative. Advocates minus detractors, 10 point scale, 10 is the highest. NPS is the total of the 9’s and 10’s minus the totals of the 1 through 6’s (people are easy graders). Difference is a score. Example – 50% gave a 9 or 10 score in terms of recommending the product or service to a friend, 30% gave it a 1-6. NPS score of 20(%). Average NPS is in the 30’s, Great ones are in the 60’s, Outstanding ones are 70+Engagement is not necessarily an indication of satisfaction or dissatisfaction – depends on how they are engaged. If they are just entering sweepstakes, not necessarily satisfied with your product or service. Same with followers – may just be waiting for coupons.
- Satisfaction – on a scale, how satisfied are you. Looking for 90%+ satisfaction.Net Promoter Score – Question – would you recommend this product or service to a friend or relative. Advocates minus detractors, 10 point scale, 10 is the highest. NPS is the total of the 9’s and 10’s minus the totals of the 1 through 6’s (people are easy graders). Difference is a score. Example – 50% gave a 9 or 10 score in terms of recommending the product or service to a friend, 30% gave it a 1-6. NPS score of 20(%). Average NPS is in the 30’s, Great ones are in the 60’s, Outstanding ones are 70+Engagement is not necessarily an indication of satisfaction or dissatisfaction – depends on how they are engaged. If they are just entering sweepstakes, not necessarily satisfied with your product or service. Same with followers – may just be waiting for coupons.
- People can’t see the difference cutting the AIStudy by Siegal and Gale – Simplicity Index but really based on customer satisfactionUsed to be the rule – happy customers told 3 friends, unhappy customers told 10. Now unhappy customers tell thousands.
- Proactively dealing with customer issues/problems.1800flowers.com monitors blogs, facebook and Twitter 24/7 with its agency partner, and uses Radian 6 to track and quantify what is being saidMother’s Day – 1MM flowers are delivered over a 3 day period, some orders aren’t going to get thereHad 50 CSR’s on Twitter starting the Saturday of Mother’s Day, and by being proactive with customer compliants turned around the conversation – 18F 2/3rd’s positive vs. FTD which was 2/3rds negative (cited as a success story by TechCrunch).Publically showed the company taking action and fixing problems, which, after they were fixed, customer’s tweeted or posted about.Key Takeaway – customer service issues are now public. Need to respond to them publically.
- Perhaps the most passionate company about Customer Service – major reason why Amazon bought them.Thousands of reviewsHighest repeat purchase rate of any monoline E-Commerce business I’ve seen.
- VideoFrank Eliason became a legend in creating @comcastcares, but company also narrowed delivery windows and instituted guidelines to answer the phone faster
- Expectations – Critical part of customer experience. You don’t have the same expectations in terms of acceleration and handling for a Honda Minivan that you do for a BMW. Managing customer expectations, and overdelivering on them, is the key to great customer experience.John Carter – over a year of negative buzz, bombed at the Box OfficeAvengers – just the opposite, record opening weekendBB – built the business on seamlessly and securely delivering corporate email to a mobile device, then their first tablet trying for the corporate market doesn’t have email.Retail interaction – the store, where its located, the service staff, how easy is the site to use and to buy somethingPurchase – purchase process, delivery versus expectations, easy to assemble, quality vs. expectationsPost purchase support – can I get someone on the phone, to respond to email or a text? How fast, do they take care of my problem quickly. Many companies have a post call survey to get feedback.Advocacy – How do happy/unhappy customers act in social media and talking with their friends. Can you incent advocacy through a loyalty program (points for referrals or posts)
- Top – what you can control – Awareness, Retail Interaction/Consideration, Purchase/fulfillment, Post purchase supportBottom – what you can’t control – how the customer is experiencing your product or service. Need to gain insights into this process to optimize Customer Experience. Shopping process, information gathering, purchase process, usage, post purchase experience
- - Most comprehensive touchpoint list – color coded by touchpoint as the customer goes through the process- Discovery, search research, decide, purchase, use, help, share, personalize, purchase again, trust, advocacy.