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Turn Customers into Brand Promoters
           What does a customer want




                Kaushal Mehta
           Founder & CEO - Motif, Inc.
              www.motifinc.com
Session goals


•   Understanding what delighting customers means?

•   The business case for consumer delight – how delighted customers become brand
    promoters

•   Empowering the frontline to go the extra mile to achieve customer delight

•   Measuring service success through hard metrics such as VoC and NPS, and setting up
    a customer feedback loop, using predictive analytics, to ensure constant service
    improvement




                                                                                         2
                                       Motif, Inc. - Confidential                        2
Understanding what customer delight means

                           Why are they shopping online?
        What will make them come back to your website for further purchases?



•   Easy search of products, clear and accurate product specifications
•   Assurance that the listed products are not fraudulent, secure electronic payment
    systems
•   Updated product delivery information
•   Quick and personalized (address all questions) responses to consumer queries
    and complaints (Session focus)



     Customer satisfaction and trust result from truly outstanding online experiences




                                                                                        3
                                        Motif, Inc. - Confidential                      3
The Moment of Truth – The business case for customer delight

• It is 10 times more expensive to acquire a new customer
   than to keep a current customer
                                                         - Bain & Company Research

• Customers are lost primarily due to indifference (66%)
   versus dissatisfaction (14%)
                                                           - The Wall Street Journal


• 66% of respondents said they would spend an average of
   13% more with a company that provides excellent
   customer service
          - 2012 American Express Global Customer Service Barometer


                                                                                       4
                            Motif, Inc. - Confidential                                 4
The two dimensions of customer service


•   Procedural: established systems, channels, policies and procedures to deliver service

     –   Various channels of support, time of support, amount of support
     –   Evaluating which channels work best for your e-tail company
     –   Are your customers aware of these channels
     –   Do these channels work effectively from a customer’s perspective – ease of access, timeliness
         of response, etc.


•   Personal: Product knowledge, attitudes, behaviors and communication skills service
    providers use to interact with customers

     –   Providing timely, accurate and empathic responses to problems, queries and complaints

     –   Going above and beyond (empowerment)

     –   Using proper language and grammar so that communication is clear




                                                                                                         5
                                           Motif, Inc. - Confidential                                    5
What causes detractors


    According to the 2012 American Express Global
    Customer Service Barometer, the top four causes of
    consumer dissatisfaction listed by respondents were:

       Rudeness: An insensitive or unresponsive customer service
       representative
       Passing the Buck: Being shuffled around with no resolution of
       the issue
       The Waiting Game: Waiting too long to have an issue resolved
       Being Boomeranged: Forced to continually follow up on an
       issue (example 48 hours)




                                                                       6
                            Motif, Inc. - Confidential                 6
Amazon – delighting customers with quick & cheerful service

Several examples of amazon.com’s great customer service can be found on the company’s own website and
social media pages. Amazon allows customers to leave positive and negative reviews, knowing that most will
be positive.




 “I have been purchasing from Amazon.com for over a decade. In that time, I have only had one
 problem. A few months ago I purchased another book. The book was $25.84. When I noticed that I was
 double charged, I called Amazon.com and the charges were reversed. There was no lengthy on hold
 time, no arguing with a rep, and no waiting for a resolution.” - a delighted Amazon customer

                                                                                                             7
                                              Motif, Inc. - Confidential                                     7
The Virgin Atlantic Experience

Richard Branson calls!




                                                          8
                             Motif, Inc. - Confidential   8
Measuring customer delight


•   Voice of Customer (VoC)




•   Net Promoter Score (NPS)




                                                            9
                               Motif, Inc. - Confidential   9
The science behind turning customers to advocates - Net Promoter Score

•   How to correlate between two Key Performance Indicators:
     –   Internal QA scores and Net Promoter Score
     –   Internal quality monitoring is more focused on compliance, procedure and not so much on
         the customers’ perception of services provided


•   NPS typically takes 8-10 days for feedback to be provided to agents, after data
    collection, scrubbing and analysis
     – NPS only allows for a post-mortem analysis on a failed interaction

•   The sample of customers responding to surveys may not be adequate to represent
    the opinion of an entire population on services provided


•   Difficulty in going beyond the NPS metric and building an operational model around it




                                                                                                   10
                                        Motif, Inc. - Confidential                                 10
The science behind turning customers to advocates - Net Promoter Score

       Customer CTQs (critical to Quality)                           Internal Compliance Attributes

     Correct response, research & tools (1 or -1)                         Spelling, Grammar (0 or -1)

            Complete response (1 or -2)                                      Formatting (0 or -1)

               Customization (1 or -1)                              Tools used/documentation (0 or -1)

            Addressed all issues (2 or -3)                      Policy violation/non-compliance (0 or -3)

                   Clarity (1 or -1)                                       Opening/closing (0 or -1)

                Credit issued (3 or -3)                                         Bonus (5 or 0)

                 Malicious (0 or -3)


 •   Attributes such as timely and comprehensive response weigh in more than grammar
     – severe detractors if not addressed
 •   Assign binary rating to each attribute; higher the impact, lower the negative rating
     (table above). Different ratings for different company
 •   Create predictive model to enable real time assessment rather than wait for surveys


                                                                                                            11
                                             Motif, Inc. - Confidential                                     11
Making difficult changes

•   Drive behaviours via enhancements in product and process to address the key
    attributes that create promoters and minimize detractors

     •   Successfully able to predict the NPS

     •   Identify training needs by conducting real-time gap analysis for individuals as
         well as entire groups, by studying ‘controllable’ factors affecting NPS

     •   Track post-training performance of low-performing agents

     •   Feedback on certain policy changes and site issues that were identified as
         ‘uncontrollable’ factors affecting NPS




                                                                                           12
                                     Motif, Inc. - Confidential                            12
The way forward

•   Focus on your core expertise
     • Product, process and channels
     • Leverage available expertise to enhance the member experience to create
        customers into brand promoters




                                                                                 13
                                 Motif, Inc. - Confidential                      13
About Motif

           Online Retail Experience – 12+ Years, 33 Million Transactions

Highlights
• Track record of serving Fortune 500 and 1000 clients for extremely long client tenures (decade plus)

• 1500 dedicated FTEs providing E-commerce services from India, Philippines and Costa Rica

• Continuous focus on process improvement to improve customer experience

                                                                                                                                          ~0.5M
                                                                                                      Inventory Analysis
                                                                                                                                          ~13.5M
                                                                                          Site Management
                                                                                                                                          ~1.0M
                                                                                        Collections
                                                                                                                                          ~0.9M
                                                                  Order Processing
                                                                                                                                          ~1.9M
                                                          Billing, Credit, Refund
                                                                                                                                          ~15M
                                                Pre and Post Purchase Customer Support



       2002       2003       2004      2005       2006         2007              2008         2009       2010         2011        2012

                                                                                            Service channels: Email, Chat, Voice & Back Office


                                                    Motif, Inc. - Confidential
                                                                                                                                                   14
                                                                                                                                                   14
Thank you




For more information, email: kaushal.mehta@motifinc.com



                                                          15
                    Motif, Inc. - Confidential            15

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Turn Customers into Brand Promoters with Customer Delight

  • 1. Turn Customers into Brand Promoters What does a customer want Kaushal Mehta Founder & CEO - Motif, Inc. www.motifinc.com
  • 2. Session goals • Understanding what delighting customers means? • The business case for consumer delight – how delighted customers become brand promoters • Empowering the frontline to go the extra mile to achieve customer delight • Measuring service success through hard metrics such as VoC and NPS, and setting up a customer feedback loop, using predictive analytics, to ensure constant service improvement 2 Motif, Inc. - Confidential 2
  • 3. Understanding what customer delight means Why are they shopping online? What will make them come back to your website for further purchases? • Easy search of products, clear and accurate product specifications • Assurance that the listed products are not fraudulent, secure electronic payment systems • Updated product delivery information • Quick and personalized (address all questions) responses to consumer queries and complaints (Session focus) Customer satisfaction and trust result from truly outstanding online experiences 3 Motif, Inc. - Confidential 3
  • 4. The Moment of Truth – The business case for customer delight • It is 10 times more expensive to acquire a new customer than to keep a current customer - Bain & Company Research • Customers are lost primarily due to indifference (66%) versus dissatisfaction (14%) - The Wall Street Journal • 66% of respondents said they would spend an average of 13% more with a company that provides excellent customer service - 2012 American Express Global Customer Service Barometer 4 Motif, Inc. - Confidential 4
  • 5. The two dimensions of customer service • Procedural: established systems, channels, policies and procedures to deliver service – Various channels of support, time of support, amount of support – Evaluating which channels work best for your e-tail company – Are your customers aware of these channels – Do these channels work effectively from a customer’s perspective – ease of access, timeliness of response, etc. • Personal: Product knowledge, attitudes, behaviors and communication skills service providers use to interact with customers – Providing timely, accurate and empathic responses to problems, queries and complaints – Going above and beyond (empowerment) – Using proper language and grammar so that communication is clear 5 Motif, Inc. - Confidential 5
  • 6. What causes detractors According to the 2012 American Express Global Customer Service Barometer, the top four causes of consumer dissatisfaction listed by respondents were: Rudeness: An insensitive or unresponsive customer service representative Passing the Buck: Being shuffled around with no resolution of the issue The Waiting Game: Waiting too long to have an issue resolved Being Boomeranged: Forced to continually follow up on an issue (example 48 hours) 6 Motif, Inc. - Confidential 6
  • 7. Amazon – delighting customers with quick & cheerful service Several examples of amazon.com’s great customer service can be found on the company’s own website and social media pages. Amazon allows customers to leave positive and negative reviews, knowing that most will be positive. “I have been purchasing from Amazon.com for over a decade. In that time, I have only had one problem. A few months ago I purchased another book. The book was $25.84. When I noticed that I was double charged, I called Amazon.com and the charges were reversed. There was no lengthy on hold time, no arguing with a rep, and no waiting for a resolution.” - a delighted Amazon customer 7 Motif, Inc. - Confidential 7
  • 8. The Virgin Atlantic Experience Richard Branson calls! 8 Motif, Inc. - Confidential 8
  • 9. Measuring customer delight • Voice of Customer (VoC) • Net Promoter Score (NPS) 9 Motif, Inc. - Confidential 9
  • 10. The science behind turning customers to advocates - Net Promoter Score • How to correlate between two Key Performance Indicators: – Internal QA scores and Net Promoter Score – Internal quality monitoring is more focused on compliance, procedure and not so much on the customers’ perception of services provided • NPS typically takes 8-10 days for feedback to be provided to agents, after data collection, scrubbing and analysis – NPS only allows for a post-mortem analysis on a failed interaction • The sample of customers responding to surveys may not be adequate to represent the opinion of an entire population on services provided • Difficulty in going beyond the NPS metric and building an operational model around it 10 Motif, Inc. - Confidential 10
  • 11. The science behind turning customers to advocates - Net Promoter Score Customer CTQs (critical to Quality) Internal Compliance Attributes Correct response, research & tools (1 or -1) Spelling, Grammar (0 or -1) Complete response (1 or -2) Formatting (0 or -1) Customization (1 or -1) Tools used/documentation (0 or -1) Addressed all issues (2 or -3) Policy violation/non-compliance (0 or -3) Clarity (1 or -1) Opening/closing (0 or -1) Credit issued (3 or -3) Bonus (5 or 0) Malicious (0 or -3) • Attributes such as timely and comprehensive response weigh in more than grammar – severe detractors if not addressed • Assign binary rating to each attribute; higher the impact, lower the negative rating (table above). Different ratings for different company • Create predictive model to enable real time assessment rather than wait for surveys 11 Motif, Inc. - Confidential 11
  • 12. Making difficult changes • Drive behaviours via enhancements in product and process to address the key attributes that create promoters and minimize detractors • Successfully able to predict the NPS • Identify training needs by conducting real-time gap analysis for individuals as well as entire groups, by studying ‘controllable’ factors affecting NPS • Track post-training performance of low-performing agents • Feedback on certain policy changes and site issues that were identified as ‘uncontrollable’ factors affecting NPS 12 Motif, Inc. - Confidential 12
  • 13. The way forward • Focus on your core expertise • Product, process and channels • Leverage available expertise to enhance the member experience to create customers into brand promoters 13 Motif, Inc. - Confidential 13
  • 14. About Motif Online Retail Experience – 12+ Years, 33 Million Transactions Highlights • Track record of serving Fortune 500 and 1000 clients for extremely long client tenures (decade plus) • 1500 dedicated FTEs providing E-commerce services from India, Philippines and Costa Rica • Continuous focus on process improvement to improve customer experience ~0.5M Inventory Analysis ~13.5M Site Management ~1.0M Collections ~0.9M Order Processing ~1.9M Billing, Credit, Refund ~15M Pre and Post Purchase Customer Support 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Service channels: Email, Chat, Voice & Back Office Motif, Inc. - Confidential 14 14
  • 15. Thank you For more information, email: kaushal.mehta@motifinc.com 15 Motif, Inc. - Confidential 15