17th September 2014 - Dubai Quality Group · 4 About The Tata Group Global business with presence in over 150 countries Over 540,000 employees Group revenues of $97 bn with 63% outside

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Customer Driven Excellence

17th September 2014

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Topics

About The Tata Group


Consumer Insights, Segmentation, Strategy

Voice of Customer

Customer Experience Design

Customer Centric Culture

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Topics




Voice of Customer



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Global business with presence in over 150 countries

Over 540,000 employees

Group revenues of $97 bn with 63% outside India

Global leader in several sectors

Market Capitalization of 32 listed companies US 141 bn

Group committed to “Leadership with Trust”

Business Excellence DNA of the group since 1997

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Topics




Voice of Customer



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Customer Focused Customer DrivenCustomer Centric

• Organizations in this phase have formulated a Vision with “Customer” as a central focus with an intention to provide a focus on Customers

• Handling Customer issues are reactive in nature, with the Customer perceiving the Company as “Not too easy to deal with”

• Lots of effort required internally to “serve” the Customer as the organization has many “silos”

• Leaders do not “walk the talk”.

• Low levels of Customer satisfaction especially when compared to competitors or not measuring satisfaction

• Customers see organization as slow and unresponsive

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• Maturity beyond expression of good intentions

• Senior leadership visibly concerned on improving Customer Satisfaction

• Seriously looking for measuring and improving Customer oriented process measures

• Start designing approaches based on Customer feedback.

• People in different parts of the response chain understand the game plan of differentiated offerings

• Training programs and communication have bits and pieces of “Customer First” agenda.

• Customers see some value in doing business with the organization

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• Processes and measures are largely “outside–in”

• Strategies are market driven and sensitive to Customer needs

• Organization understand needs and behaviours of various Customer segments

• Plans in place to either target segments or offer products / services in line with segment needs

• Marketing initiatives are more Customer driven

• Reward mechanisms for workforce on delighting Customers

• The Company is more agile to change management

• Customers take the example of the organization as role models in Customer Orientation

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Customer Focused

Customer Centric

Customer Driven


Leadership

Commitment

Customer-led

Strategy

Information

Management

Customer

Offerings

Relationship

Building

Customer in Vision and Values

Create a Culture of positive Customer

Experience

Use of Customer data (BI)

Customer insights and

Segmentation

Market / Customer Strategies

Product / Brand

Strategies

Customer Listening &

Learning

Competition Tracking

Complaints / Customer

Satisfaction

Predicting Customer behaviour

Product / Service

offerings

Customer Support

Design Value to Customer /

Differentiation

Target / Acquire / Retain / Expand

Key Account Management

Customer Engagement

Loyalty and Advocacy

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Live the Brand Ideals

We buy brands (image, reputation and relationship)

A brand is the collective intent of the people behind it, a brand

defines who you are and what you stand for.

Research shows strong correlation between “Brand ideals” and

sustained business results”

Mantra 1

1980Entire Market cap of S&P

500 companies on tangible assets

2012Tangible / Intangible (40/60)Overall contribution of brand

being 30%

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Strategy basis, Consumer Insights Mantra 2

IDEA

Current / Short Term Future / Long Term

Less Frills MPVs

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IDEA Voice Interactive CD Players

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Understand Consumer insights and input into long term

strategies

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Understand Voice of Customer

Too many surveys – Enthusiasm low Discussion mode: High Intensity

Low emotion – Body language not seen High emotion visible: Adds intensity

C Sat VOC

Low actionability – How low is low? Qualitative feedback: High actionability

High Sample size – Right people? Sample chosen lesser but focused

Questions mainly retainment & hygiene Questions more open ended (process)

Good / poor performance average out Good is good and bad is bad

Customers do not expect improvement Visible improvement required

Mantra 3

The Bermuda Triangle

Awareness DecisionAccessibility Engagement Enquiry

Website Social Media Marketing posts

Ease of contacting Call centers /reservations/trade partners

Quality of information provided Getting all the right information

Ease of doing biz. Understand offering / Q. of information to decide

Helping me decide Excited to buy Satisfaction on VFM

Blind Spot: Max. losses.. Not measured Conversion measured here

Mantra 4

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Measure “Levels of Relationship”

Trusted Advisor

Problem Solver

Credible Source

Vendor

Transactional

…lowest cost along with a convenient, no hassle way of

buying

Consultative

Understanding the Customer’s business problem/opportunities

and advising, adapting and delivering unique business value.

Strategic

...is the highest level of buyer/supplier collaboration

Good understanding of the company goals and vision

Involves cross-functional Inter-relationships from the executive to operating levels

Mantra 5

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“Love Thy CRM” – as It helps Mantra 6

Average Percentage Improvements Reported by Customers

+27%Sales

LeadConversion

+32%Sales

Productivity

+32%ForecastAccuracy

+44%

Close Rate

+25%

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Topics




Voice of Customer



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HALF A BILLION PEOPLE*2X EUROPE0.5X INDIA

USD 3.4 TRILLION GDP = GERMANY

2% POPULATION GROWTH2X WORLD1.5X INDIA

65% POPULATION BELOW 30 1.3X WORLD

33% POPULATION 0-14 YRS 1.6X CHINA

5% GDP GROWTH RATE 5X WORLD

~1 MIILLION+ RETAILERS 0.25 X CHINA** SOURCE:World Bank

MENAP is an attractive space on earth!

| SIZABLE POPULATION | YOUNG | PURCHASING POWER |

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ME most Attractive.. SA promising!

Pakistan

MoroccoAlgeria

Libya

Tunisia

Egypt

Yemen

Saudi Arabia

IraqIran

SyriaLebanon

Jordan

Oman

UAE

QatarBahrain

Kuwait

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MENAP: Top 5 countries to play in

BIG 5

NEXT 3

OVER ALL OUTLOOKCURRENT FORWARD

P opulation+

Outlook AssesmentIs Aggregate of

A ffluence+P olitical

stability

Scale Socio Economics Growth Trend

KSA

EGYPT

UAE

KUWAIT

MORROCO

ALGERIA

IRAQ

PAKISTAN

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MENAP: Various factors

~180 MM

SIZE: Population

UAE

KUWAIT

QATAR

OMAN

BAHRAIN

YEMEN

JORDAN

IRAQ

EGYPT

LIBYA

MOROCCO

TUNISIAALGERIA

PAKISTAN

~200 MM

~30 MM~20 MM

LEBANON

AFFORDABILITY

KSA

Large Pop: High AffluenceSmall Pop : High Affluence

Small Pop: Low Affluence Large Pop: Low Affluence

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High/Med Low

Po p Growth

Affluence Growth

= or > <v/s World Average

Political Instability

KSA and GCC remain Core, Algeria Gains Short term Priority, Pakistan Long Term** SOURCE:World Bank

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Mega Trends

Collectivism Women Power Self Expression

Health & Wellness Technology Alternate Media

Family

Religion

Icons/Passions

Equality Quest

Identity Seeking

Opinion Influence

Standing Out

Beauty

Premium

Weight Management

Eat Right

Women: gatekeeping

Internet

Mobile Phones

Automation in Finance

Social Media

Shopper Locations

B 2 C

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Using Consumer Insights

Study Macro trends

Develop Consumer

Insights

Market Strategies

Customer Strategies

Segment / Target

Limitations

1) Prefixing

2) Not linked to Consumer choice

3) Understanding “Vital few”

4) Who / why / what / when / where

and then decide hierarchy

Segmentation

Demography

Need based

Psychographic

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Customers are complicated

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They don’t know what drives behaviour

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Consumer Insights – Food for the Business Traveller

Food Drives choices:

Quirky Beverages Tasting Menus Wellness cuisine

• Recording preferences of Frequent travellers

• What’s new in the menu• Food themes • Full meals for the early morning /

late evening traveller

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Consumer Insights – Peace & Quiet for the stretched out

Relaxing themes:

Music channels to soothe Entertainment Reading (kindle / news /

magazines) Ergonomic seats

• Value proposition music and reading options

• Offering continuous variations in options

• Quiet “Do not disturb” rows for the Customers seeking complete rest

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Consumer Insights - The Technology Savvy Customer

Keep me productive:

Mobile apps (pre-flight) for seat / ticket booking / updating preferences (do not keep asking me for preferences)

Proactive updates by carriers Digital promotions / marketing

focused for delight Digital information for the leisure

traveller Wi-Fi in aircraft… connected to

network Charging points at each seat

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Consumer Insights - The Time Poor Customer

Operational Excellence beyond the present:

Quick and efficient check –in (boarding card ready at counter)

Quick and hassle free baggage pick up

Quick transfers Flexibility of baggage space Value addition in lounges Proactive communication on

flight status

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Segmentation: B2C

Blue Silver GoldMin.tier points 20 600 1500 within a year

Executive Club

Earning BA Miles for flights

Self–Service Check–in

Priority on reservation waitlists

Enjoy worldwide priority check-in and boarding

Benefit from Reservation Assurance

Earn more BA Miles with the Silver tier bonus

Select preferred seating, recorded dietary requirements

Lounge access

Enjoy Worldwide Lounge Access

Earn more BA Miles with the Gold tier bonus

Gold Upgrade for Two

Segmentation visible to Customers

Segment A

Segment B

Segment C

Segment D

Segment E

Segment F

Segment G

Segmentation behind the scenes

Based on transactional Customer data which is easily available

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Topics




Voice of Customer



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Information

A/c Mgrs

Marketing

Technical Commercial

Complaints Supply

Chain

Sr. Mgmt

Support

staffCall Center

http://images.google.co.in/imgres?imgurl=http://plysandplus.files.wordpress.com/2009/08/funnel_full1.jpg&imgrefurl=http://plysandplus.wordpress.com/&usg=__T1eNCsuRvXr1hwGBCuCC67PzHzA=&h=380&w=364&sz=14&hl=en&start=5&tbnid=0MyxhqFZkoZTlM:&tbnh=123&tbnw=118&prev=/images?q=Funnel&gbv=2&hl=en&sa=G

http://images.google.co.in/imgres?imgurl=http://plysandplus.files.wordpress.com/2009/08/funnel_full1.jpg&imgrefurl=http://plysandplus.wordpress.com/&usg=__T1eNCsuRvXr1hwGBCuCC67PzHzA=&h=380&w=364&sz=14&hl=en&start=5&tbnid=0MyxhqFZkoZTlM:&tbnh=123&tbnw=118&prev=/images?q=Funnel&gbv=2&hl=en&sa=G

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“No one person or function can totally satisfy a Customer on any key attribute.

It takes the full team

But…

“Any one person or any one function can totally dissatisfy a Customer.”

VoC for….

Experience

Product

Process

Competition

A/c management and

Value proposition

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Importance of Sampling

Existing Croma

Existing Competition

CityBangalore 55 23Mumbai 55 24

Social Economic Class

A1 58 25A2 21 5B1 20 11B2 6 3C 4 3D 1 -

Age

Below 25 yrs 9 225 to 30 yrs 36 1631 to 35 yrs 35 636 to 45 yrs 24 1746 to 55 yrs 5 6Above 55 yrs 1 -

GenderMale 98 24Female 12 23

Monthly Household Income

< Rs. 25,000 8 8Rs. 25,001 - 50,000 57 29Rs. 50,001 - 75,000 26 6Rs. 75,001 -1,00,000

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> Rs. 1,00,000 4 -Not stated 2 2

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Existing Customers – database was provided by

the Croma

Existing Competition Customers – we contacted

Customers who had come for a repeat purchase

at the store, took appointments and conducted

the interviews at their residence

Numbers

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Topics




Voice of Customer



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Total Customer Experience

Aware

Choose

Order

and/or

purchase

Install

Learn

Use

Support

Dispose

and/or

upgrade

Relationship

• Overall impression

based on

• Perceptions and

experiences with

people, partners,

products, services,

and solutions

• Every touch point

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Illustration: Commercial Vehicles

Choose

Order / Purchase

Install / Deliver

Learn

Use

Support

Upgrade / Dispose

Aware

• Ease of contacting CVBU

• Product / service perception

• Price / value proposition

• understand and

manage my changing

business needs

• Resaleability

• Easy reach

• Spares availability

• Spares / labour cost

• Service effectiveness

• Ease of doing biz.

• Finance options

• Delivery / PDI TAT

• Brand assurance

• Knowledge of product

• Clear initial doubts on

usage

• Driver training

• Productivity / operating costs

• Overload capability / drivability

• TCO

• competitive pricing / justifiable ROI

• Suits application

• easy to decide on product

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Retail: VoC on Customer Experience

Parking

Entry into the store

Getting a feel of the store

environment

Browsing & product

selection

Brand selection

Exiting the store

Pre-entry

experience

Ambience

of the store

Demo of the product – Large

Appliance

Demo of the product – Small

Appliance

Products that do not need Demo

(Washing machines, Refrigerators, etc) at

home

(Camera, Mobile, Tablet, etc) at the

store Accessories, Gaming, CDs /

DVDs, etc

In Store promotional

activities

Customer

requirementAwareness

Billing & EMI options

Delivery & Installation

Store staffService

Options

considered

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Process

Finalize objectives

Plot CE Cycle

Finalize sample

Conduct VoC

Ideation workshop

Implement ideas

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Customer Centric Culture: 3 P’s

People Process

Parameter

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What kind of a Culture do you have?

“Can’t Walk the Talk”

Cynical

“Evangelist”

Passive Resistance

“Not my Agenda”

High

Low

Low High

Co

mm

itm

en

t

Knowledge

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Road Map the Culture

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Horizon 2 Horizon 1 Horizon 3

Vision

Employees, at all

levels, are enabled

to deliver the best

Customer

Experience

Employees, at all

levels, positively

understand Org.

vision and their

connection to

Customers

Customers cite Org.

as delivering the

best Customer

experience through

an emotionally

engaged workforce

Vision

Training

Awareness

Communication

Events

Metrics

R & R

SharingManifesto

EmpowerInvolve

Process/ Scorecard

R & R

CES

Integrate

Visits

Compliments

Accountable

VOC

Customer Focused Customer Centric Customer Driven

Sharing

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Effects of Customer Dissatisfaction

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• Dave Carroll is a Canadian musician with a lethally dry sense of humour. Carroll had been

flying on United when he saw baggage handlers throwing around his guitar case on the

tarmac outside, and when he arrived at his destination, it turned out that the neck of

his beloved $3,500 Taylor six-string had been snapped. But when he asked for

compensation, he was fobbed off by department after department, until finally he

reached Ms Irlweg, who at least gave him a straight answer. “No.”

• “Fine,” he said to her, “But I’m going to write three songs about my experience with your

airline, shoot videos for each of them, and then post them online.” Yeah, right, she must

have been thinking. But Carroll kept his promise. The first song, United Breaks Guitars, has

now been played 3,515,357 times on YouTube, become a smash hit on iTunes, and has

resulted in Carroll’s rather bemused appearance on every major news network

in America .

• Meanwhile, within four days of the song going online, the gathering thunder-clouds of

bad PR caused United Airlines’ stock price to suffer a mid-flight stall, and it plunged by 10

per cent, costing shareholders $180 million. Which, incidentally, would have bought

Carroll more than 51,000 replacement guitars.

United Breaks Guitars.flv

United Breaks Guitars.flv

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Warm Regards

Ganesh Nayak

Tata Quality Management Services, A Division of Tata Sons

Mob: +91 92256 13146 | Email: [email protected].

“Passion for Customers”

mailto:[email protected]

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Account Planning

Objectives:

1. Executing and

succeeding in

executing long term

account strategies

2. Identifying and

managing ST / LT

opportunities.

3. Maximising Sales

Velocity and

increasing deal size.

4. Blocking competition

and increasing share

How:

1. Offering Value Proposition

to key accounts

2. Strategic factors for

selection of key Accounts

3. Planning long term

relationship and loyalty

4. Creating differentiators and

entry barriers

Profiling

Customer Biz.

Analysis

A/c planning w/shop

Plan initial VP /

actions based on

VoC

Share plans with Customer

Execute plan

Review progress

with Customer

Account planning

Cycle

17th September 2014 - Dubai Quality Group · 4 About The Tata Group Global business with presence in over 150 countries Over 540,000 employees Group revenues of $97 bn with 63% outside

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