HaveYouHeard presents on "Why the Customer Experience must be used to stimulate Word-of-Mouth"

Why the Customer Experience must be used to stimulate Word-of-Mouth

An example of how customer service kills the brand

What SAA as a brand promises

Satisfied

Unsatisfied

Impressed

Exceeded

Numb

Angry

Time line: 6 Hours

Brand Promise = Ubuntu

Brand Experience = Horrific

Smile, but problems…

“No ticket” but you can have some crumbs…

56 minutes on hold - no solution

Our fault - will call you back

I will try to find a senior person. We will call you back.

I will try to find a senior person. We will call you back.

I will try to find a senior person. We will call you back.

I can’t help you, but here is a cell no

I will make a plan

Get on same flight

I will try to find a senior person. We will call you back.

What SAA delivered as an experience

Southwest’s Chief Apology Officer

Their job is to find out the situations in which something went wrong — a mechanical delay, bad weather, a medical emergency or a berserk passenger — then apologize to all passengers on that flight, within 24 hours of their bad experience, if possible.

But an apology for a bad flight can actually make a passenger happier than an uneventful flight, American Airlines executive Mark Mitchell said, citing internal surveys."When we handle a delay situation well, they score us about 14 to 16 points higher than they do for just a regular old on-time flight."

Southwest Airlines had the lowest consumer complaint rate of the 19 airlines ranked in 2009.

80% of CEO’s believe their brand provides a superior customer experience. 8% of their Customers agree

Why spend millions building expectations

for customers only to disappoint them?

For every 1 unhappy customer that tells you, there are 6 others who don’t.

These 7 unhappy customer will each tell 9 others (63).

Only 25% will act on what they hear - 16 customers may never buy again

Multiply average sale value over a year x 16 lost customers = annual loss of income per unhappy customer

The hidden impact of Customer Complaints…

68% of WoM Conversations

are mostly positive

8% of WoM Conversations

are mostly negative

The 3 things people talk mostly about

Great Customer Service

or Experience

Explaining how a Product or

Service Works

Remarkable andEntertaining

Stuff

2007 Country Rankings: Overall Service Maturity

89% 88%

79%75% 74%

64% 62%59% 59%

55% 53% 51%

45% 44%

38%33%

28%24% 22% 20%

14%

06%

Singapore

Canada

US

Denm

ark

Sweden

Norway

Finla

nd

Australia

UK

Japan

Irela

nd

Belgiu

m

Netherla

nds

Malay

sia

Germ

any

Portugal

France

Italy

Spain Bra

zil

Poland

South

Africa

SERVICE MATURITY

22) Poland21) South Africa

20) Brazil

19) Netherlands

18) Italy

17) Portugal

16) France

15) Malaysia

14) Ireland

13) Finland

12) Belgium

11) Australia

10) Spain

9) Sweden

8) Japan

7) USA

6) UK

5) Norway

4) Denmark

3) Germany

2) Singapore

1) Canada

22) South Africa

21) Portugal

20) France

19) Brazil

18) Germany

17) Italy

16) Poland

15) Spain

14) Malaysia

13) Ireland

12) USA

11) UK

10) Belgium

9) Canada

8) Australia

7) Singapore

6) Denmark

5) Norway

4) Japan

3) Netherlands

2) Sweden

1) Finland

22) South Africa

21) Poland

20) Spain

19) Netherlands

18) Brazil

17) Italy

16) Japan

15) France

14) Belgium

13) Finland

12) Germany

11) Malaysia

10) Norway

9) Australia

8) UK

7) Ireland

6) Portugal

5) Sweden

4) Denmark

3) USA

2) Singapore

1) Canada

CUSTOMER SERVICE MATURITY CITIZEN VOICE

Weighting 10% Weighting 50% Weighting 40%

Citizens’ perceptions of their countries’ customer service performance.

This offers an unparalleled opportunity to stand out, to exceed expectation and to generate more sales.

Meet Expectations(Survival)

Meet Desires(Success)

Meet Unrecognized

Needs(Transformation)

Creates EvangelismCreates Evangelism

Creates CommitmentCreates Commitment

Creates SatisfactionCreates Satisfaction

From Peak: How Great Companies Get Their Mojo From Maslow, By Chip Conley

Maslow’s Hierarchy of Customer Service

00

100

200

300

400

500

600

700

800

900

1,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Zappos Gross SalesZappos Gross Sales

“A Customer Service Company That Happens

To Sell Shoes”

“A Customer Service Company That Happens

To Sell Shoes”

Photo by orangeacid http://flickr.com/photos/orangeacid/459207903/

Charmin Toilet Paper5,600 people visited the Charmin Restroom in its first 24 hours.

So what can we do

Gravy

Soup

Kustard

Tea

Greet

Smile

Knowledge

Thanks

The Customer Service Mantra

At a large community hospital in the States, clinical quality was good, but patients and their families didn’t feel like they were being treated with care, dignity or respect by the

majority of the 4000 staff.

To identify the problem, they did not focus on operations, infrastructure or pay but rather on positive behaviour. They seeked out those individuals who were making a positive

impact, while others didn’t.

After the study, 5 key behaviours were identified:

Smile

Make Eye Contact

Identify Yourself

Let people know what you are doing and why

End every interaction by asking, “Is there anything else you need?”

Within a year the regional medical center

became best in class among its peers.

An example of how small things can make a big difference

The age old excuseHow can you motivate people when they get paid nothing?

Dignity and Self Worth

The key to unleashing great customer serviceManagement/ Boss/ Leadership

Everything starts or ends with the Service you provide for

your Customers

This is the cheapest and most effective way to stimulate either

positive or negative Word-of-Mouth