Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction
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Customers are unpredictable. And sometimes customer situations arise that you simply can't anticipate in advance. When this happens, are your employees willing and able to resolve the issues? And what can your company do to optimize those interactions? In the webinar, “Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences With Every Interaction.” Peppers & Rogers Group Founding Partner Don Peppers and President Ron Wince discuss how to bring innovative customer interaction strategies and optimal process design together to build customer value with every interaction.
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Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction
- 1. 1 Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction #customerstrategy
- 2. 2 Today’s Speakers Elizabeth Glagowski Editor-in-Chief Customer Strategist Journal Don Peppers Founding Partner, Peppers & Rogers Group Ron Wince President & General Manager Peppers & Rogers Group
- 3. 3 Event logistics Please turn off your pop-up blocker • You will not be able to participate in today’s survey Download a PDF of today’s slides • Click the green Resources icon Have a question for the presenters? • Click the red Q&A icon Helpful tools • Click the gold question mark for help with technical issues • Link to the Customer Strategist journal • Twitter Hash tag: #customerstrategy
- 4. 4 Agenda 4 Types of Customer Interactions The Role of Technology Implications for Competition Q&A
- 5. 5 4 Types of Customer Interactions
- 6. 6 Routine and non-routine moments of truth Consumer Engagement Process Standardization HighLow Low High Business as usual Predictable customer lifecycle events Surprises, trials and tribulations Threats to cost efficiency 1 24 3
- 7. 7 Routine and non-routine moments of truth Business as usual Predictable customer lifecycle events Surprises, trials and tribulations Threats to cost efficiency 1 24 3 Consumer Engagement Process Standardization HighLow Low High
- 8. 8 1. Business As Usual Providing product information Selling or servicing a product Collecting or processing a payment Interacting at the store or point of sale Interacting online or in the call center
- 9. 9 1. Business As Usual: Strategies Do things right • Don’t make mistakes • Good intention Product competence • Quality • Price • Features • Service Customer competence • Customer insight • Interaction • Customization • Customer trust
- 10. 10 1. Business As Usual: Tactics Enable self-service
- 11. 11 1. Business as Usual: Examples
- 12. 12 Routine and non-routine moments of truth Business as usual Predictable customer lifecycle events Surprises, trials and tribulations Threats to cost efficiency Low 1 24 3 Consumer Engagement Process Standardization HighLow Low High
- 13. 13 2. Predictable Lifecycle Events First invoice for an expensive or complex product or service Relationship renewal or end (e.g., auto lease or service subscription) Upgraded or downgraded status in a loyalty program
- 14. 14 2. Predictable Lifecycle Events: Strategies Customer mapping • Map the customer journey around the potential lifecycle Standardize • Scripts and templates to govern response to common inquiries Onboarding • Implement new and returning customer onboarding programs
- 15. 15 2. Predictable Lifecycle Events: Tactics Advanced segmentation
- 16. 16 2. Predictable Lifecycle Events: Examples Uses customer data from both members and non-members of MileagePlus Airline delivers personalized and relevant communications involving critical day- of-travel updates Consolidated marketing, sales and service into one group to better understand complete customer lifecycle It makes predictable and unpredictable lifecycle events easy and seamless.
- 17. 17 Routine and non-routine moments of truth Process Standardization HighLow High Business as usual Predictable customer lifecycle events Surprises, trials and tribulations Threats to cost efficiency Low 1 24 3 Consumer Engagement Process Standardization HighLow Low High
- 18. 18 3. Threats to Cost Efficiency Infrequently asked questions Unpopular product attributes or uses Administrative details and record-keeping
- 19. 19 3. Threats to Cost Efficiency: Strategies Data capture • Collection mechanism will capture unanticipated interactions Develop guidelines • Deliver a frictionless customer experience
- 20. 20 3. Threats to Cost Efficiency: Tactics Social learning
- 21. 21 3. Threats to Cost Efficiency: Examples Cisco Business customers have many different uses for wide variety of network products • Cisco relies on customer communities to capture new and different uses • Smart Web Technology Group (SWTG) at Cisco constantly harvests comments to improve site
- 22. 22 Routine and non-routine moments of truth Consumer Engagement Process Standardization Low Process Standardization HighLow Business as usual Predictable customer lifecycle events Surprises, trials and tribulations Threats to cost efficiency Low 1 24 3 Consumer Engagement Process Standardization HighLow Low High
- 23. 23 4. Surprises, trials and tribulations Customer experiences a major service issue Disaster or crisis caused by outside events Social media conflagration Disruptive initiative by a competitor
- 24. 24 4. Surprises, trials and tribulations: Strategies Self-organization Your employees need to be Engaged in their work and Enabled to accomplish their mission
- 25. 25 The most powerful motivations for “heuristic” work are not monetary: Autonomy of decision-making Support of a team or a cohesive group A purpose-driven profession or career Strategy: Motivating high-value employees A culture of customer trust provides the ideal platform for maximizing these motivations
- 26. 26 Engaging Your Company’s Employees: Tactics Define internal social architecture • Sense of purpose • Common language • Valued behaviors • Recognition Cycles of use • Coach employees to develop habits that reinforce the social architecture • Evolve the social architecture as the company evolves
- 27. 27 1. Confidence in the organization’s leaders 2. Collaboration and collegiality 3. Development opportunities 4. Clear and promising sense of purpose Hay Group sees four requirements Engaging Your Company’s Employees
- 28. 28 Engaging Your Company’s Employees: Example
- 30. 30 Technology can extend and enhance decision-makers’ own capabilities Technology can improve decisions Source: McKinsey Quarterly 4, 2005
- 32. 32 Implications for competition Source: McKinsey Quarterly 4, 2005 The bottom line: Proficiency in non- routine decisions cannot be easily imitated by competitors
- 33. 33 The world’s biggest companies are growing at a faster rate than smaller firms! Not just because of scale and market dominance Global firms combine tangible and intangible assets across the whole enterprise Leveraging capabilities for non-routine decisions Mobilizing talent and knowledge across business units They create their own “network effect” Global companies definitely “get it”
- 34. 34 ExxonMobil thinks global, acts local Total headquarters staff: 300 86,000 workers (down from 100,000 in 5 years) 10 separate operating companies, using three major brands – Exxon, Mobil, Esso Present in more than 150 countries ExxonMobil’s sales are the size of Taiwan’s economy
- 35. 35 Q&A Session Elizabeth Glagowski Editor-in-Chief Customer Strategist Journal Don Peppers Founding Partner, Peppers & Rogers Group Ron Wince President & General Manager Peppers & Rogers Group
- 36. 36 Don Peppers Founding Partner dpeppers@peppersandrogersgroup.com +1.203.989.2200 @donpeppers Linked In Tom Schmalzl Director of Business Development tschmalzl@peppersandrogersgroup.com +1.203.989.2208 @peppersrogers
Editor's Notes
- Hello! Welcome to the Customer Strategist webinar: “Prepare for the Unexpected: How to Deliver Outstanding Customer Experiences with Every Interaction.” I’m Liz Glagowski, editor-in-chief of the Customer Strategist journal, and I will be moderating today’s event.
- I am joined today by Don Peppers and Ron Wince of Peppers & Rogers Group, a TeleTech company. Don is a founding partner of Peppers & Rogers Group, and is recognized as one of the leading authorities on customer-focused management strategy. Ron Wince is PRG’s president and general manager. He leads the company’s expanded offerings around process innovation, technology, and operational improvements. Welcome gentlemen.
- Before we begin, let’s quickly review the On24 interface.For a PDF copy of today’s slides click the green resources widget at the bottom center of your screen. We also have another PDF download available, which we will detail later in the presentation. We also encourage you to submit questions at any time during the event. Just click the red ‘Q&A’ widget, type your question, and hit submit. We made time for a Q&A section at the end of the webinar to answer any questions you have. Your questions will be discussed anonymously. We will also have a brief survey for you at the end of the program.If you run into any issues, our technical team is on hand to answer any technical questions you may have. Click the gold “Help” widget to check FAQs, or you can contact the team. Additionally, contact information for Don and the PRG team will posted at the end of our event. And since this is a Customer Strategist journal event, there is a link to the online version of the journal in the pink globe widget for you to check out articles and register for a free quarterly subscription.You’ll also notice that we have a hashtag -- #customerstrategy. I will be live tweeting from the @peppersrogers group, and I encourage you to tweet and share your webinar experience using the hashtag, as well.Ok, let’s move on to today’s agenda…
- Today’s presentation will focus on 4 types of customer interactions that companies can plan for. Don and Ron will drill down into the strategies and tactics needed to succeed for each interaction category. We will then examine the role that technology plays in enabling and advancing customer-company interactions, as well as what it means for competition. During the event there will be a poll question for you to answer, and we have set aside some time at the end for an interactive Q&A, so please feel free to submit your questions at any point during the presentation.
- So, I will hand it over to Don to begin.
- Don: will go through the points shown on the slide, then…Ron: The volume of these are high but they are also declining over time as customers are expecting a more individualized experience
- Tactic: Enable self-serviceCustomers can make their own decisions and feel a sense of “accomplishment” when they solve their own problem. Benefit: Consumer trust, cost effectiveness and reliabilityRisk: Not doing it. Customers will deselect if interaction is poorRon: a few comments here:The tactic we tell customers to follow in this segment is to quickly get to a low touch/self-service environment as quickly as possible. I allows for a customer to feel they are getting an individual experience because they are making their own decisions and feel a sense of “accomplishment” when they solve their own problem. Done correctly this can earn a company a high level of trust while also allowing for cost effectiveness and reliabilityThe flip-side of this is the risk associated with doing it wrong – get this wrong and customers will deselect
- Intuit Product is kept up to date with constant feedback from customers Individual customer data is used to render more personalized product for each Intuit won a Gold CRM Excellence Award for 2013LinkedIn/FacebookThey thrive on self-service Community organically creates and enhances the interaction LinkedIn: 200 million members Facebook: 1 billion+ active membersAmazon and Dell Engaged customers to redesign their websites for direct to consumer interactions Simple, automated processes with customer in mindRON: Amazon is a great example to use here as is Dell who has engaged customers to redesign their website for direct to consumer. The best examples outside of commerce – which is what we discuss with our customers – are Linked In, Facebook, etc. They thrive on self-service and have grown exponentially.
- RonThere are varying levels of complexity in this space. We would do a fair amount of segmenting the complexity of these interactions and trying to apply quadrant 1 techniques as appropriate. With each level of increasing complexity and variation you’ll need more human intervention.
- Ron:What we often find is that companies aren’t very good at predicting these predictable events For instance, when you move, we should KNOW that you’re going to need certain kinds of services or products…One of the things we help clients with all the time is anticipating these kinds of high-engagement, predictable customer events, and helping them create great value for customers by doing so…
- Ron – agree with this roadmap AND we would add some diagnostic around the variation and complexity in this space as we map the journeyWe would be able to create customer personas in this space
- Ron: segmenting the complexity of these interactions and trying to apply quadrant 1 techniques as appropriate. With each level of increasing complexity and variation you’ll need more human intervention.Automate simple interactions based on segments Add human interaction for complex interactions Create customer personas
- Ron: USAA is the best at this. They make predictable and unpredictable lifecycle events easy and seamless.
- Infrequently asked questionsProduct attributes or usages unimportant to most customersIn the B2B catgegory, sales or account “administrative” details and record-keeping
- Strategy: Data captureNeed a “collection mechanism” to capture instances of unanticipated interactionsStrategy: Develop guidelines Guidelines ensure that you delivering the most “frictionless” customer experience possible
- Ron does this slide in its entiretyThis is where TeleTech leverages the social knowledge and social learning platform the best. Capture information about interactions from social media sources (Twitter, Facebook, blogs, customer and partner communities, etc.) Develop consistent responses based on common experiences
- By making use of social/community technology tools they are able to capture information about these events and respective customers and then develop consistent responses.
- Ron: This is where we would work in a client’s “social architecture”. The social architecture was in a Bennis book called “Leaders” and we’ve used it since to describe how you create the culture that leaders desire.Once you start with that sense of purpose you mention you need to work on the elements that make up the rest of the social architecture:Common language and terminology Valued behaviors – what are they and how can you recognize them?RecognitionTo reinforce this we talk about Cycles of Use – coaching of people to develop new habits that reinforce the social architecture; similar to some work from Noel Tichy and also from a book called “Talent is Overrated”DIRECTLY FROM BENNIS (added by DP):“A leader must be a social architect who understands the organization and shapes the way it works. The social architecture of any organization determines who says what to whom, about what, and what kinds of actions then ensue. It governs the way people act, the values and norms that are subtly transmitted to groups and individuals, and binding and bonding within a company. Social architecture provides context (or meaning) and commitment to its membership and stakeholders and presents a shared interpretation of organizational events, so that people know how they are expected to behave. It also generates a commitment to the primary organizational values and philosophy. Finally, an organization’s social architecture serves as a control mechanism, sanctioning or prescribing particular kinds of behavior. “
- Ron to discuss
- Machines can’t automate non-routine decisionsBut technology can extend and enhance the decision-makers’ own capabilities, by Reducing low-value transactional activities required of high-value employees Extending the breadth and impact of non-routine decisions Boosting quality, speed, scalability of decisions
- Efficiency advantages from automating production and routine are easily matched Every automation advantage eventually pervades a whole industry sectorBut proficiency at non-routine decisions cannot be easily imitated by competitors More complex organizational models will slow the dissemination of performance improvements What is a “best practice” in judgment-based decision-making, anyway?
- Thanks to Don Peppers and Ron Wince for sharing their expertise and knowledge in such an important area of business strategy. We have a few minutes left for Q&A. I see we have a few questions in the queue for our speakers. If we don’t get to everyone’s question, we will answer you via email. Before we begin the Q&A, I would like to remind you that you can download a PDF copy of today’s presentation by clicking the green resources link. In addition, there is a PDF reprint of Don Peppers’ original blog on the topic of customer interaction strategy for you as a thank-you for attending.And as I mentioned earlier, Peppers & Rogers Group has expanded its reach into the operational side to deliver a more holistic suite of customer strategy services. If you are interested in learning more, you can contact Don Peppers or Tom Schmalzl for follow-up. I will post their contact information as we begin the Q&A. So let’s get to your questions.