Why is focus on customer excellence so important? Because in a global, connected world in which venues, products and services are increasingly interchangeable and prices ever more transparent, the (memorable) customer experience often becomes the key differentiator. Customer Excellence pays off in general: customer retention is far less expensive than customer acquisition and great customer experience results in the reduction of (process) costs within the framework of complaint handling. Plus - it’s a profitable marketing strategy: Word-of-mouth advertising is the best kind of advertising that money can’t buy.
In this session we will show you examples and approaches on how to set-up up a customer experience measurement program that will provide you with precise data on your customers and actionable insights for the definition of customer excellence measures which will be helping you to ensure sustainable business success with meeting organizers in companies and associations.
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Customer Excellence as key brand differentiator
for destinations – how to measure it?
5. The Age Of The Customer
Assembly lines Supply chains Automation Engagement
Source: Forrester 2015
• Apple
• Trip Advisor
• USAA
• Amazon
• IBM
• Microsoft
• Google
• Comcast
• Ford
• Boeing
• GE
• Siemens
6. Customer Focused Strategies Pay Off
“If there’s one reason we have
done better than our peers in
the internet space over the last
six years, it is because we have
focused like a laser on
customer experience, and that
really does matter,
I think, in any business.”
Jeff Bezos
8. From Product Centric To Experience Centric
“By 2020, customer experience will overtake
price and product as the key brand differentiator.”
Source: Walker
10. Customer Experience Matters
Source: Forrester 2018 / Temkin Group 2018
5x
revenue growth of
CX leaders vs.
laggards
86%
of buyers will pay
more for a better
customer
experience
+17%
customer loyalty
11. Customer Experience Builds Advocacy
Source: Forrester 2018 / Temkin Group 2018
“Customers with positive experience recommend companies to an average of three people
out of their friends, families and colleagues.”
“However, negative experiences are shared with up to 10 people.”
“Customers with positive experience have a 7x higher willingness to forgive failures.“
12. A Bad Experience Can Be Very Costly
Source: Temkin Group 2018 / McKinsey
15-20%
lower
cost of service
at companies that focus on
customer journey
optimization
14. The Delivery Gap
Source: Bain / Satmetrix 2010
80 : 8
80 percent of
companies believe
that they offer an
outstanding range of
products and
services
Eight percent of
the clients of
these companies
agree to this
17. Feedback: Simple & Holistic
Online At the contact / event Mobile
In the moment Email Social
Make it easy for your customers to give feedback, wherever they interact with you!
18. Feedback: Proactivity Is King
Standard experience Asked for feedback
8%
68%
Source: Review Trackers
Negative experience
34%
10%
50%
100%
Great experience
22%
20. Creating an Optimal Feedback System Architecture
Understanding all key elements that build relationship and service
experience – basis for strategic focus
Focus on identifying & understanding client segments or individual
(big) clients and their needs (account management)
Understanding the performance of an end-to-end customer
journey – basis for operational improvement
Focus on most important customer journeys (e.g. for destinations
– site inspection, congress organisation, incentive planning, etc.)
Key moments of truth or touchpoints that are in the focus of actual
improvement efforts (e.g. call centre/ reservation system/ web site)
Combined system and coaching approaches to achieve immediate
improvements. Tracking of success
Strategic
relationships
Customer
journeys
Individual
touchpoints
Alignment
yearly per
organization
continuously per
journey / event /
project
continuously per
touchpoint
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CX Programs
That Deliver
Insights
22. Customer Experience Program‘s Performance
Source: Oracle 2018 / Frankfurt University of Applied Sciences 2017
Only 32%
of CX professionals feel they have access to the
information they really need to understand customers’
needs and previous interactions and can apply it to
improve their experience.
Only 1/2
of companies in Germany are satisfied with their
current customer satisfaction survey.
“What are your
experiences
with CX
programs?”
24. Key Pillars Of A Successful Customer Experience Program
Clarification of
strategic rationale and
key objectives
Definition of senior
management sponsor
Specification of
business needs and
prioritisation
Keep it simple and
pragmatic
Role specific
information and
workflows
Ease of access
(data & insights)
Ongoing audits of
system modules and
their usage
Adaptation of approach
to new business needs
2. Top management and
stakeholder buy-in
3. Optimal system
architecture
4. Active and committed
employees
5. Ongoing optimisation of
system to secure impact
Take an inventory of
current feedback
programs
Check both, tools and
processes
1. Audit
25. Project Steps of a Strategic Customer Experience Program
Survey Design
Implement Learnings
Analysis & Reporting
Survey Execution
Questionnaire
Development
26. What is the Right KPI?
It matters less which top-line metric a business relies upon. More important is how the business inserts the metric into
a systematic feedback program
27. Questionnaire Structure
Brand &
Communication
Performance
Evaluation of
overall satisfaction
and dedicated
performance
aspects
Perception and
evaluation of
portfolio and brand
communication
Audiences
Capturing needs,
preferences,
information
channels
Strategic Experience Surveys
Duration approx. 10-12 minutes
Objective
Detailed and dedicated evaluation of overall relationship
Overall
Experience
General experience
and satisfaction
Process &
Phases
Assessment of main
aspects / phases of
the journey / event
Operational Satisfaction Surveys
Duration approx. 3-5 minutes
Objective
Journey / Service / Event Experience & Assessment
28. The Right Sample
“Your most dissatisfied
customers are the ones from
whom you can learn the most”
Bill Gates
30. The Global Engagement Index
Global Engagement Index
2016 / 2018
In total more than 11,000 Interviews
in about 150 countries
American Engagement Index 2017
More than 4,000 Interviews
in the USA
A total of 23 different associations participated in the Engagement Index
Different segments: Engineering, ICT, Healthcare, Professional Services
Professional associations and trade associations
THE BENCHMARK SURVEY FOR ASSOCIATIONS
32. From Measurement to Management
Avoid: “Good Research,
Poor Actionability”
Communication of
Results
Root Cause Analysis
Implementation
of Change
Development of
Measures
Monitor
33. Customer Excellence Brought to the Point
“Whatever you do, do it well.
Do it so well that when people
see you do it, they will want
to come back and see you do
it again, and they will want to
bring others and show them
how well you do what you do.”
Walt Disney
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Please leave in PPT – will be shown while delegates walk in
Session title slide
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Introduction
Ok, why is client centricity so important? Because we live in the age of the customer!
In the first half of the last century the largest companies were those that could produce most in good quality, while in the second half of the century those companies suceeded that organized their supply chanis best and made use of the globalisation.
In the nineties and at the turn of the millenium we entered the age of information and the tech giants dominated the scene.
But even though we're about to enter the fourth industrial revolution, it’s not the companies with the best products that are leading the game but those that are most customer centric.
I think we can really say, that customer focus pays off for some companies.
But customer focus isn’t that easy these days:
Clients have vastly more choice
Convergence of customer experiences: it’s harder to differentiate products and services
People power through new media, advocacy and loss of reputation
Social media accelerates the reach and the speed of discussion
Client’s rising expectations and constantly changing preferences and needs
And within that context – organizations need to shift from developping and marketing just products for the market to designing the experience for their customers.
So don‘t focus on promoting „we have so many 5-star hotels or we offer that many exhibition space in our destination“. Others might have it too, at least in near future.
Because products are imitable, an excellent customer experience however, cannot easily be replicated by competitors.
Or do you really think iPhones are better than the top smartphones of other brands? Not really. Bu there is a difference that Apples has figured out earlier than all others:
Do you have shares from Apple? Or Amazon? If you compare their value with two years ago or even 5 years, I think you made a great deal.
But a great customer experience not only increases the value of the company, it also means a real competitive advantage. As we can see from some figures here.
Great customer experience is also a good marketing strategy as it builds advocacy.
It also makes your life easier.
But attention: negative experiences are always shared with more people than positive ones
A bad experience can be really costly. It's just more likely to lose a customer forever.
But it‘s not only the risk of loosing a client. Bad experiences need to be managed and involve high process costs. Companies with a hgh customer excellence have therefore lower costs of servicing th ecustomers.
Ok, let’s now have a look on why customer feedback is so important for client centricity and how to collect that feedback
In any business hundreds of decisions are made every day. But how many of those decisions include the customer’s point of view?
In this context, Bain and Satmetrics have detected a phenomenon they called delivery gap. Does anyone know what the delivery gap is?
It’s the mismatch between the internal and the external perspective.
And how to close that gap? It is only possible by collecting client feedback, by talking to your clients.
Can you describe a day in the life of your customers?
Do you know how they takes decisisons?
Do you know their preferences?
Do you know what keeps them up at night?
SLI.do Survey
There are many places you can gather explicit and implicit feedback from customers. Each interaction is an opportunity to learn and improve.
But it‘s not just about feedback through surveys – enabling customers to give feedback easily, anywhere is key.
Whether they are giving you a satisfaction rating, a review or just texting you about their experience – you‘ve got to make it easy to connect.
But who is giving feedback? There has been an interesting study recently on feedback behaviour in North America and Europe with regards to a number of product and service categories that revealed following:
1/3 of all persons that had a negative experience provided a feedback on their experience while only 1/5 of those that had a great experience shared their feedback on their own initiative.
That value decreases to less than 10% for those that had just a normal experience. Not much for that group of people that typically is the majority in the customer base.
But the study also showed, that 68% would have given feedback if they had been asked to do so.
So very important, you need to be proactive if you would like to get the voice of your customers.
But does the constant availability of customer feedback really make companies smarter and their customers actually more satisfied?
Not automatically. The idea that a company gets smarter when it gets more information from its customers is an expensive illusion. Often the opposite happens, when the amount of information obscures the view of the essentials.
It is a matter of setting up systems that are limited to collecting the essential information and are cleverly integrated into the company organization – all without burdening your customers.
Focus on one comprehensive listening architecture to ensure:
Relevant insights
From the right clients
At the right time
Using the most effective method
But how does an optimal feedback system architecture looks like?
Typically, there are three levels of customer feedback programs with different objective, content, modules and workflow design
To design the optimal customer experience, we must first - on a broad, strategic level – identify what truly matters to your customers. This information will lay the groundwork for you to develop a customer strategy that is a prerequisite for strong customer relationships and profitable growth.
Once we have the big picture, we will then move on to the processes that matter to your customers. We must find out precisely how your customers interact with your company, the journey they go through, the touchpoints they face, and how they like what they find there. With that knowledge, we can work on optimising your touchpoints and services.
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Many companies find it difficult to measure customer experience and loyalty and analyze customer relationships correctly.
Although client focus and customer centricity are one of the main pillars of many corporate strategies ...
... a systematic approach to customer satisfaction analyses is often lacking:
Strong focus on just measurement of KPIs
Lack of action orientation and implementation of results
Lack of resources and low relevance of programs in the overall organization
Designing an effective VOC strategy involves evaluating existing sources of customer intelligence, determining the additional sources which are needed, infusing the necessary analysis to interpret customer insights, and determining the right approach to make customer intelligence available for day-to-day decision making.
And how does it look at operational level?
It matters less which top-line metric a business relies upon; almost any will do, and some companies construct metrics of their own design. More important is how the business inserts the metric into a systematic capability to collect, analyze, and act on feedback in an effective and complete system for measurement of the customer journey.
“Learn from the peers and the best: Benchmark against competitors and leaders to put your results in context”
Our perceptions and attitudes are subject to the context in which they appear.
This picture is well known – it seems that the blue circle on the right hand side of this chart is bigger than the one on the left. It shows very convincingly how our brain always automatically puts information in context.
Many companies suffer from myopia in measuring customer experience. Companies often hyperfocus on their own performance and small pain points, and they do not spend enough time looking at how they stack up against others—not only their nearest competitors but also companies that are best in class in customer experience within and outside their sector. Such an exercise is powerful in triggering bigger and bolder ideas to improve customer service and experience.