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Vovici Vision 2011: Five Keys to Improving Customer Satisfaction

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Vovici Vision 2011: Five Keys to Improving Customer Satisfaction

  1. 1. Five Keys to Improving CustomerSatisfactionBrian KomaVice President, Research
  2. 2. Why Listen to Your Customers? 2
  3. 3. To build Loyalty…
  4. 4. Otherwise, it’s liketrying to fill abathtub with thedrain open…..
  5. 5. Loyalty Correlates Directly to Revenue Growth $40 M $30 M Last Year This Year 5
  6. 6. Loyalty Correlates Directly to Revenue Growth $16.8 M $40 M $30 M $1 M $7.8 M Last Year Lost Customers Market New This Year (74% customer retention) Growth Sales 6
  7. 7. Loyalty Correlates Directly to Revenue Growth $40 M $12 M $30 M $1 M $3 M Last Year Lost Customers Market New This Year (90% customer retention) Growth Sales 7
  8. 8. What is the Most Measured Metric? Satisfaction 8
  9. 9. What’s the Problem with Satisfaction? 9
  10. 10. Satisfaction is Table Stakes in Building Loyal Customers 10
  11. 11. Most Common Pitfall of Customer Satisfaction Research 11
  12. 12. Most Satisfaction Surveys Only Measure Internal Metrics Identify internal metrics that you need to measure and report Find out what’s important to the customer through one-on- one interviews, customer councils and social listening Use surveys to identify two key measures: Importance and Satisfaction Identify the gap between importance and satisfaction and use this analysis to focus resources on critical areas Use open-ended questions to gain additional insight into the reasons for customer ratings 12
  13. 13. The Five Keys To Moving from Satisfaction to Loyalty Implement a formal Customer Experience Management Program Utilize a common set of metrics and measure against them Use known data to personalize customer interactions and respect customer relationships Make data actionable and share results and actions with customers, employees and internal groups Create a feedback panel 13
  14. 14. Implement a Formal Customer Experience Program Customer processes How do customers interact with you over time? Customer needs What does the customer want during each interaction? How do they want to feel and be treated? Customer perceptions What customers think about current interactions? Are they satisfied? 14
  15. 15. LIRM Process: Listen, Interpret, React, Monitor Listen. Capture everything. Interpret. Put comments into context and look for Monitor Listen patterns. React. Respond, change and adapt. React Interpret Monitor. Track performance. Source: Bruce Temkin, Experience Matters blog 15
  16. 16. “Moments Of Truth” Create Focus For Action Most important interactions for customers – they make or break the relationship Determine which interactions impact brand perception No matter how you define them they become the priorities for measuring, analysis, action and monitoring 16
  17. 17. Utilize Common Metrics and Measure Against Them If you don’t know where you’re going, any road will take you there…. 17
  18. 18. Traditional CSAT QuestionBrief & easily understood, but not a complete reflection of customer experience What is your overall Focus on percent who answer “Completely satisfaction with our satisfied” company? For Xerox, completely • Not at all satisfied satisfied customers were 6 times more likely to • Slightly satisfied repurchase than moderately or very satisfied • Moderately satisfied And InfoQuest found that… • Very satisfied • Completely satisfied Source: Krosnick, J. A., & Fabrigar, L. R. (1997). “Designing rating scales for effective measurement in surveys.” 18
  19. 19. Annual Revenue Two Years After Satisfaction Measure141210 8 6 4 2 0 Totally Somewhat Somewhat Totally Dissatisfied Dissatisfied Satisfied Satisfied Source: InfoQuest 19
  20. 20. Develop an Overall Customer Experience Metric The best customer-satisfaction measures have underlying models that represent different aspects of customer experience and their interplay Most organizations use a mix of measures Customer experience leaders seek to standardize across the organization Leaders analyze the reason behind their scores 20
  21. 21. Integrate What You Know With What You Want to Know Historical Data Support tickets Order History Contact Data Contract Information Lead Source Win/Loss evaluation Overall Satisfaction Support Experience Event Feedback Product Enhancement Feedback Voice of the Customer Data 21
  22. 22. Why Use Known Data in Surveys? Customers want to be respected Customers want relevant interactions Customers don’t want to answer the same questions again and again Customers want you to honor the relationship that you have with them Customers don’t want to be asked for information too often 22
  23. 23. Why Use Known Data in Surveys? Provides a contextual experience for the customer and shows you know their history Support tickets Order History Contact Data Respects their time by eliminating questions to Contract Information Lead Source Win/Loss evaluation Overall Satisfaction which you already know the answers Support Experience Event Feedback Product Enhancement Reduces fatigue Feedback Enables you to conduct in-depth analysis and segmentation Provides everyone with better information to manage the relationship 23
  24. 24. Use Known Data to Personalize Customer Interactions Treat people like individuals, not market segments Support tickets Order History Contact Data Use data you already know about the individual Contract Information Lead Source Win/Loss evaluation Overall Satisfaction to personalize your communications Support Experience Event Feedback Product Enhancement Respect their privacy, and they’ll share increasing Feedback amounts of data with you that can improve the quality of the interaction Use this data to interact about topics of interest to them Personalization can dramatically improve engagement and participation rates 24
  25. 25. Turn Data Into Actionable Information Deliver business intelligence at the right time to the right people Surveys can trigger alerts when a customer rates you below a particular threshold E-mails or other notifications should be sent to relevant managers Managers can now take the opportunity to follow-up directly or create a formal Tier 2 recovery process Bottom line: Negative comments don’t get buried in a report – direct action can be taken when there is an opportunity to recover 25
  26. 26. Make Data Actionable Through Triggers & Alerts CRM System Data •Individual •Products •Strategic Account Customer 26
  27. 27. Don’t Just Measure Satisfaction—Intervene to Improve It! Use survey alerts/email triggers to improve satisfaction Email appropriate department when a respondent provides a negative rating of service Reactive o Help-desk ticket satisfaction o General dissatisfaction o Hotel-stay satisfaction o Major-account satisfaction Proactive o Customer-service satisfaction o Literature fulfillment 27
  28. 28. Evolve Surveying to Include Panels Surveys Panels •Permission-based Surveying •Centralized Touch Management •On-demand Segmentation •Use Customer Data 28
  29. 29. How Does A Panel Work? You invite customers to provide ongoing feedback as part of a panel Customers opt-in to the panel and agree to be surveyed periodically You survey them only about things that are relevant to their interests – and not too often Customers provide you with detailed profile information to help you focus your surveys 29
  30. 30. The Power of Panels Allows on-demand segmentation and creation of highly targeted surveys Build rich profiles over time to conduct in-depth analysis and better focus future surveys Control and manage the frequency and timing of survey efforts to avoid fatigue Deploy fewer surveys but get better, more accurate responses Close the loop by making changes and then easily measuring the results 30
  31. 31. The Five Keys To Moving from Satisfaction to Loyalty Implement a formal Customer Experience Management Program Utilize a common set of metrics and measure against them Use known data to personalize customer interactions and respect customer relationships Make data actionable and share results and actions with customers, employees and internal groups Create a feedback panel 31
  32. 32. Five Keys to Improving CustomerSatisfactionBrian KomaVice President, Research

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