The document discusses optimizing customer experience and whether it should be handled in-house or outsourced. It notes that only 28% of customer experience professionals feel their programs are successful and that 89% of companies will differentiate based on customer experience. While do-it-yourself approaches seem simple, outsourcing to experts can bring more discipline and accuracy to customer experience measurement and improvement. The document advocates treating customer experience as both an art and a science to build understanding and drive better business outcomes.

1. Optimizing Customer
Experience – In House or
Outsourced
Presented by:
Adré Schreuder (Prof)
Founder & CEO of Consulta (Pty) Ltd

2. 28%
Maritz CX
Only 28% of CX
professionals feel
their programs are
successful at
driving business
outcomes
Gartner 2016
Of companies will
be differentiating
themselves
mostly on the
basis of Customer
experience
Source: Placeholder example
Are you ready?
2
89%

3. An Old-New Concept … used by great leaders
3

4. “Culture eats
strategy for
breakfast.”
- Peter Drucker
4

6. The Satisfied Customer – Claes Fornell
6
• Alert for in-house “do-it-yourself”
approaches (usually guided by the desire
for simplicity). Simplicity is all good and
well, but it sometimes comes at a high
price.
• Paradoxically enough, measurement has
become standard in CX, but the
measurement itself is rarely subjected to
professional standards and its accuracy is
often questionable.
• Scientific discipline brings discipline. It
forces beliefs into the open, makes
assumptions testable and lets us build on
what’s known.

7. The Fallacy of Percentages
7
• Reporting customer satisfaction in percentage
terms “85% of our customers are satisfied” and
“our customer satisfaction score is 90%”.
This is mostly nonsense. It is the same as
measuring intelligence by asking: “Are you dumb
or smart?”
• Satisfaction is a continuum between two
extremes – extremely dissatisfied and extremely
satisfied. It leads to imprecision, i.e. large
margin of error.
• Measurement is about precision – random noise
is the opposite of precision.
• If the customer satisfaction measure cannot be
tied to future financial performance, its
economic relevance is lost!

8. Recommendation is better than Satisfaction - More Delusions!
• First fallacy – assuming that the recommendations will
actually happen regardless of how satisfied the customers
are.
• GOOD measurement should be minimizing random error.
It is cautioned that NPS carries three times the random error
(due to three sample groups – detractors, passives &
promoters) thus contributing to volatile outcomes.

9. Debunking the Myths about CSI
9
• Myth:
Lower number of complaints = higher customer
satisfaction
– Counterproductive and paradoxical objective
– Complaint expectation: Customer believes = reward > effort (and
unpleasantness) of complaining
• Truth: SILENT MAJORITY = Most customers do not
complaining!

10. You can Buy Loyalty, but Satisfaction must be Earned
10
• Myth: Customer Satisfaction is “worthless”, but
Loyalty is “priceless”
• Truth: Customer Loyalty without Satisfaction is
a contradiction of the basic mechanics of the
free market system and violates the cause-and-
effect relationship between satisfaction and
loyalty

11. Satisfaction vs. Loyalty
11
• Satisfaction has a STRONGER effect on financial
performance than Loyalty.
• Reason: the increased revenue generated by improved
loyalty is not offset by the higher costs of the Loyalty
programs (unless generated by customer satisfaction) –
e.g. Frequent flyers being members at all frequent flyer
loyalty programs

12. Optimize Excellence

13. Most Important Customer Experience Strategies for Business
13
Implement
Customer Centric
Culture
21%
Improve workforce
training/mngmt
retention
17%
Transformation
Change
17%
Costs/Efficience/P
roductivity
16%
Engage customers
through new
channels
13%
Improve Call
centre technology
11%
Deliver CX from
new geographical
sites
4%
Deliver CX via
virtual call centre
1%
Source: Teletech E-book : Customer Experience benchmark research report 2015
1
2
3
4
5
6
7
8

14. 14
Beloved Companies …
• … decide to Believe
“We trust our customers. We trust those who serve
them”
• … decide with Clarity of
Purpose
“Our iron-clad integrity and clarity guides the
direction of our decisions”
• … decide to be Real
“We have inspired soul, humanity in our touch and
personality that’s all ours”
• … decide to be There
“We must earn the right to our continued relationship
with customers”
• … decide to say Sorry
“We act with humility when things go wrong. We will
make it right”
Source: www.customerbliss.comJeanne Bliss

15. What is ‘Customer Experience’?
15
Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A. Schlesinger (2009), “Customer
Experience Creation: Determinants, Dynamics and Management Strategies,” Journal of Retailing, 85 (1), 31–41.
This experience is created by:
The Customer experience construct is holistic in nature and involves
the Customer’s cognitive, emotional, social and physical responses to
the retailer.
controllable elements - service
interface, retail atmosphere,
assortment and price;
uncontrollable elements -
influence of others, purpose of
shopping;
Customer experience encompasses the total experience, including
the search, purchase, consumption and after-sale phases of the
experience, and may involve multiple retail channels.

16. 2
3
4
5
1
Leading Indicator Of Business Performance
16
Source: Gupta, S. & Zeithaml, V., 2006. Customer Metrics
and Their Impact on Financial Performance. Marketing
Science, 25(6), pp.718–739.

17. Proven statistics about the links between Customer Satisfaction & Business Outcomes
17
Source: Gupta, S. & Zeithaml, V., 2006. Customer Metrics and Their Impact on Financial Performance. Marketing Science, 25(6),
pp.718–739.
Customer
Satisfaction
Meta analysis by Sunil Gupta & Valarie Zeithaml (2006):
+1%
Customer
Satisfaction
+2.37%
ROI
-1%
Customer
Satisfaction -5.08%
ROI

18. Link between Customer Satisfaction & Business Outcomes
18
Research using ACSI data demonstrates the relationship between customer
satisfaction and the financial performance of individual firms. ACSI’s
methodology show that customer satisfaction is directly linked to stock
market performance.
http://theacsi.org/national-economic-indicator/financial-indicator

19. Customer Experience in Perspective
19
The term Customer Experience Management is used
within the broader context of Customer Relationship
Management (CRM)
“CEM is part of customer relationship management
(CRM) and the natural extension of building brand
awareness”
Source: Kirkby J, Wecksell J, Janowski W & Berg T, “The Value of Customer Experience
Management”, Strategic Analysis Report, March 2003

20. CX 101
20
Adapted from: Bitner M-J, “Building service relationships: It's all about promises”, Journal of the Academy of Marketing Science, Vol 23(4), 1995 & Kirkby J,
Wecksell J, Janowski W & Berg T, “The Value of Customer Experience Management”, Strategic Analysis Report, March 2003

21. Satisfaction and Loyalty Curve
21
Lacking Consistency

22. Purposeful
Leadership
Do your leaders operate consistently with a clear,
well articulated set of values?
Compelling
Brand Values
Are your brand attributes driving decisions about
how you treat Customers?
Employee
Engagement
Are your employees fully committed to the
goals of your organization?
Customer
Connectedness
Is Customer feedback & insight integrated
throughout your organization?
Source: Temkin Group – June 2015
CHANGE THE CX NARRATIVE
22

23. Before jumping right into
solving a problem, we should
step back and invest time and
effort to improve our
understanding of it.
Adré Schreuder (Prof)
“
”

24. CX as Art & Science
Slide 24
CHURCHILL, G,A.; A Paradigm for Developing Better measures of Marketing
Constructs, Journal of Marketing Research Vol. XVI (February 1979). 64-73.
More stupefying than the sheer number of our measures is the
ease with which they are proposed and the uncritical manner in
which they are accepted. In point of fact, most of our
measures are only measures because someone says that they
are, not because they have been shown to satisfy standard
measurement criteria (validity, reliability, and sensitivity)

25. Changing your focus from INSIDE-OUT to OUTSIDE-IN
changes your perspective in the design of a differentiated
customer experience.
From INSIDE-OUT to OUTSIDE-IN
25

26. INSIDE-OUT vs OUTSIDE-IN
26
CUSTOMER ORGANIZATION
OUTSIDE-IN INSIDE-OUT
• Needs
• Motivations
• Expectations
• Experience
• Desired outcomes
• Quality service
• Technology
• Process
• Resources
• Efficiency
• Offerings
• Capabilities

27. THE CX MEASUREMENT FRAMEWORK
Slide 27
LEVEL1
LEVEL2
LEVEL3
STRATEGIC
REPUTATIONAL
OPERATIONAL
REAL TIME
Copyright Consulta 2016

28. Outside-In & Inside-Out CX
28
Proprietary Strategic (Review & Focus)
National and International Benchmark
Operational Measures
National and International Benchmark
Proprietary Strategic/Visionary Measures
Strategic
Minimum standards
Inside-Out View Outside-In View
Strategic Reputational Measures
CC Audit
CC Destiny
NPS
Effort Score
Best Practise
OperationalStandards & Foundation
Level 1
Level 2
Level 3
2018
CC Maturity
OUR COMPANY
OUR
CUSTOMERS
OUR COMPANY
OUR CUSTOMERS

29. Business Understanding of Client Engagement
29
47% Brand
Perspective
40%
Client
Perspective
13%
47% of Business
view Client
Engagement from
a Marketing/
Brand and/or
Business process
perspective
40% of Business
view Client
Engagement from a
Client Experience
perspective
ONLY 13%
see Client Engagement from a
Brand & Client Perspective
Source: Rosetta Consulting. 2014 Client ENGAGEMENT
Rosetta Consulting’s Client Engagement Survey Part 1: The Marketer’s Perspective
http://www.rosetta.com/reports/Client-engagement-rosetta-consulting-study/Client-engagement-from-the-marketers-perspective

30. Client Management Best Practise
30
©Consulta Customer Centricity Framework
STRATEGIC IMPACT
Expansion Retention
Acquisition
ENABLERS
Planning
Designing
Delivering
Engaging
Responding
Knowing
PILLARS
People, Tools
& Insights
Focusing
Operations
Customer
Experience
Leadership &
Culture
VALUE
CC Maturity
CC Destiny
CC Benchmark
TISSE2018
CC Audit
Bob Hayes Strategic Audit

31. Five pillars of Customer Centricity as a business model
31
Leadership
and culture
Customer focused
leadership and culture
Focusing
operations
Focusing operations
on the Customer -
compliance, risk, IT,
HR, finance,
marketing, legal,
training
People, tools
and insights
Collecting information,
generating insights,
informing strategy,
informing Customer
value propositions and
empowering employees
Customer
experience
Based on insights
generated, design,
concepts, test, build,
delivery, scale and
renewal
Value
Creating and
measuring value: at
Customer, firm and
society level
Source: Worldbank - CGAP

32. CGAP Customer Centricity Maturity Model
32
• A Causal Model with Longitudinal Journey
35 Statements:
Agreement scale
_____
Aligned with 5
customer centricity
pillars
Customer
Centricity
Maturity
Model
Pillar 1: Leadership &
Culture
Pillar 3: Empowering
employees, insights
& tools
Pillar 4: Customer
experience
Pillar 5: Creating
value
Pillar 2: Focusing
operations on the
customer
Copyright Consulta 2018

33. Maturity Path
33
Unconvinced but
Interested
1
Getting involved &
Buy-in2
Formalised &
Converted3
Dedicated &
Reinventing4
Entrenched &
Empowered
5
Engaged &
Sustained6
Copyright Consulta 2018

34. Customer Centricity Maturity Model
34
Level
classification 3 2 2
53
61
5160
Pillar1:Leadership
&Culture
The Customer Centricity
Maturity Model
Level 6: Engaged &
Sustained
Level 5: Entrenched &
Empowered
Level 4: Dedicated &
Reinventing
Level 3: Formalised &
Converted
Level 2: Getting involved &
Buy-in
Level1: Unconvinced but
Interested
Pillar2:Focusing
OperationsonCustomer
Pillar3:Empowering
Employees,Insights&
Tools
Pillar4:Customer
Experience
Overall score 2017: 54
Level 2: Getting involved & buy-in
A summarized view on Customer Centricity Maturity Levels
Pillar5:Value
2 1
47
Copyright Consulta 2018

35. CC Development Roadmap
Slide 35
Current Maturity
Levels
KNOWING PLANNING DESIGNING DELIVERING ENGAGING RESPONDING
Level 1: Unconvinced
but Interested
Pillar 1: Leadership
- KNOWING
Pillar 1: Leadership
- PLANNING
Level 2: Getting
involved & Buy-in
Pillar 4: Customer
Experience -
KNOWING
Pillar 2: Operations
- PLANNING
Level 3: Formalised &
Converted
Pillar 4: Customer
Experience -
DESIGNING
Pillar 2: Operations -
DELIVERING
Pillar 1: Leadership
- RESPONDING
Level 4: Dedicated &
Reinventing
Pillar 2: Operations -
DELIVERING
Pillar 3: Empowering
Employees -
ENGAGING
Pillar 2: Operations
- RESPONDING
Level 5: Entrenched &
Empowered
Pillar 3: Empowering
Employees -
DELIVERING
Pillar 4: Customer
Experience -
ENGAGING
Pillar 4: Customer
Experience -
RESPONDING
Level 6: Engaged &
Sustained
Pillar 5: Value -
KNOWING
Pillar 5: Value -
RESPONDING
Enablers
Copyright Consulta 2018

36. CC Development Matrix
Slide 36
Enablers►
▼ Pillars
KNOWING PLANNING DESIGNING DELIVERING ENGAGING RESPONDING
Pillar 1: Leadership &
Culture
CC MATURITY CC DESTINY CC ROADMAP
CC STRATEGIC
FRAMEWORK –
Roll Out
CC
MEASUREMENT
FRAMEWORK
(Reputational &
Transactional)
CC BENCHMARK
MEASURE
Pillar 2: Focusing
Operations on the
Customer
CC STRATEGIC
FRAMEWORK -
Planning CC
MASTERCLASS
CC JOURNEY
MAPPING
Current State Voice-of-
Customer
ChannelsPillar 3: Empowering
Employees, Insights,
and Tools
RCA (Root Cause
Analysis)
CC JOURNEY
MAPPING
Desired State
CEM / CEP
TRAINING
CEM / CEP
TRAINING
Pillar 4: Customer
Experience
CC VALUE PROP
CC ROADMAP
CC MATURITY
Pillar 5: Creating
Value
CC FORECAST
ROMI, Linkages Analysis,
Predictive Modelling
CC FORECAST
Copyright Consulta 2018

37. Key Take outs
• Stop the measure-madness - More Comprehensive &
Integrated model for CX-measurement
• Break the start-stop-start mentality & silver bullet 6-
months project mentality:
– Journey to Customer Centricity will take 3-5 years (of consistent
clear strategy):
– We need more evangelist CX professionals by ”educating” business
about the true scope of CX implementation
• Break the PR-Ra-ra podium lip service mentality -
Business needs to ”walk-the-talk”
• Break the “we focus on the customer, but prefer
profit” mentality at C-Level - More CCO’/CXO’s that will
represent the customer at C-levelSlide 37

38. CONSULTA (PTY) LTD
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PO Box 67073, Highveld Park, 0169
(T) 0861 304 100 | (F) 086 582 2858
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Adre Schreuder: adre@consulta.co.za
Mobile: 082 4521666
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