Building a Strategy to Win Back Lost Customers August 28, 2013 2pm to 3pm EDT W E B C A S T S E R I E S
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Building a Strategy
to Win Back Lost Customers
August 28, 2013
2pm to 3pm EDT
W E B C A S T S E R I E S
Featured Speakers
Vivian Hairston BladePresident & CEO
Sam KlaidmanPrincipal Adviser
Martin HarrisGlobal Director, Escalation Management and Service Relationships
WinBack –
A Strategy
Sam Klaidman
Principal Adviser
Middlesex Consulting
What is WinBack?
WinBack is the strategy and
associated processes designed to
recapture previous customers who
no longer do business with your
company.
Where Does WinBack Fit?
CEMDNA Playbook Strategy�
Cost/Benefit
WinBack
Growth
Retention
Acquisition
© 2013 Middlesex Consulting
Prerequisites
�Know when you are about to lose, or actually
lose, a customer
�Product vs. service – is it you or them?
�Know how much each lost customer is worth
– customer lifetime value
�Know the value proposition of your services
or products
The Path Forward
• Reach out quickly; either retention or winback
• Talk to them
– Why did they leave?
– Where did they go?
– Did they understand your value proposition?
– Why was it not compelling enough?
– Can the decision be reversed?
• Apply lessons learned to your retention strategy
Building a Strategy to
Win Back Lost Customers
Vivian Hairston-Blade
President & CEO
EiGL Consulting, LLC
Regain or Retain?
• Long-term relationships
• Long-term value
• Experience vs. single interactions
• Ongoing Customer Experience measurement
– Operational Metrics
– Experience Metrics
© 2013 EiGL Consulting, LLC 11
• Analyze the opportunities
12
Win-Back
© 2013 EiGL Consulting, LLC
13
• More listening than talking
• Rebuilding trust
Win-Back
© 2013 EiGL Consulting, LLC
14
• Experience focus - Customers & Employees
Win-Back
© 2013 EiGL Consulting, LLC
VVVValue alue alue alue
customer
1 button-up blouse
Size =6
Color = red
Arrival = 3 days
Call Center Fulfillment
Warehouse - Pick
Order
shipped
Warehouse - Pack Warehouse – Dock
I I I I
Place Order Process
order
Fulfillment
request Billing
Lead time = 4.75 days
Processing time = 18 min
3 days 1 day .25 day
3 min 5 min 2 min
.5 day
C/T = 8 min
2 shifts
C/T = 3 min
2 shifts
C/T = 5 min
2 shifts
C/T = 2 min
2 shifts
8 min
Lean Value Stream Map
Relationship Recovery
Martin Harris
Global Director, Escalation Management
and Service Relationships
Pitney Bowes
Agenda
• Growth / Cost Comparison
• Relationship Recovery Process
– 4 Stages of Recovery
– Checkpoint
– Landing Strategy
– Report Out
• Other Key Points
Growing by Retaining
• On average, companies have a 20% customer defection
rate. Research has shown that cutting defections in half
doubles a firm’s growth rate, and reducing customer
defections by just 5 percent increases overall profits by
30 percent.
• It Costs 6-7 times more to acquire new customers over
retaining existing ones (Loyalty Effect, Fredrick
Reichheld)
The Cost of Waiting
In Software there is a direct correlation between the cost to fix a bug
and the point at which you identify the bug
Cost
Tim
e
x 10x 100x 1000x
Re
qu
ire
me
nts
De
ve
lop
me
nt
Te
stin
g
Pro
du
ctio
n
* Deloitte Consulting group found that one hour invested in quality assurance
generally saves 3 to 10 hours in downstream costs. Moreover, defects introduced
during the requirements phase – if not found until final testing – cost 50 to 200
times more.
The Cost of Waiting
Re
qu
ire
me
nts
De
ve
lop
me
nt
Te
stin
g
Pro
du
ctio
n
Software Development
Time Spent
Where is your Time Spent?
Customer Interactions
Pro
active \
Rete
ntion
Reactive S
upport
Recovery
\E
scala
tions
New
Sale
s
Win
back
Relationship Recovery – Simple Steps
Customer
Product Features Cost
Resource
Availability
Other
Customers
Customer Landing
StrategyScope
Creep
Problem Identification - Identify the ‘WHY(s)’
Disengagement
Dissatisfaction
Features / Functionality
Other
Customer Assessment – What is the Value?
• The Basics:• Financial Impact
• Current Value
• Future Value
• Historical Value (with trend analysis)
• Reference Impact
• Social Impact \ Industry Impact
• Calculate a recovery budget• Determine what is justifiable and get buy-in from the business
• Make sure this number is known
Checkpoint– Critical Questions
• Does it make financial sense to recover the Customer?
• Does the Customer make sense for your business?
• Are the Customers expectations realistic?• Can you fix them in the decided budget?
• Can you meet the desired timeline \ expectations
Remediation Plan – Fix the Why(s)
• Have a clearly defined problem statement that is
achievable:
• Pitney Bowes Software must expand existing product capabilities to
meet our needs for the current project
• Pitney Bowes Software needs to deliver software updates for MapInfo
Pro via an electronic delivery channel to all production machines before
September 30th 2013
• Hold Tight on the scope (you can have multiple remediation plans)
Execution \ Next Steps
• You can run multiple \ simultaneous recovery plans
• As new problems are identified kick off new iterations
• Ensure you are monitoring budget \ evaluating each iteration based on projected budget costs
• Re-evaluating recovery budget should be built into the process, should require senior management sign off
• As you progress iterations should turn from problems into opportunities
Customer Landing Strategy
• Customer returning to normal business operations
• Celebrate the mutual successes , remind them of what ‘we’ have
accomplished.
• Set expectations on what will change
• Align internal resources to allow for ‘soft landing’
• Be prepared to push back on additional recovery requests
• Customer Leaving
• Make it a pleasant experience, as simple as possible
• Provide whatever is possible to allow a successful transition
Report Out \ Track your Winnings
Tracking Musts:
• Analysis of Projected Value
• Recovery Cap
• Recovery Spend
• Revenue Since Recovery
Key Points – Relationship Recovery
• Manage Expectations, Manage Expectations, Manage Expectations
• Corporations \ Businesses are people; remember you are dealing with feelings
• Perception is reality• You must show progress to gain confidence
• New resources can lend fresh perspective (and not carry any baggage)
• Better to exit cleanly than, overpromise and under-deliver• This can lead to resetting realistic expectations
Thanks for Your Participation
Martin HarrisGlobal Director, Escalation Management and Service Relationships
Tel. 301/[email protected]
Vivian Hairston BladePresident & CEO
Tel. 502/[email protected]
Sam KlaidmanPrincipal Adviser
Tel. 508/[email protected]
Requests for Information
Bill Bradley
Director of CEM Marketing
Omega Management Group Corp.
Tel.: 978/715-2587
www.omegascoreboard.com
Check for upcoming webcasts atwww.omegascoreboard.com/webcast.php
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