Smith+co шон смит

Customer Experience Management+

© Copyright Smith+Co 2008. All rights reserved.

Managing Director of shaunsmith+co

Author of best selling books on brand

and customer experience

Consulting internationally for 20 years


CEM+Customer ExperienceManagement+™

3


Introductions

Your name and organisation

What is your major challenge in

delivering your brand?

4


Some facts…

Those firms in the top quartile, in terms of strength of their

relationship with customers, achieve loyalty levels three

times higher than bottom quartile brands

Those companies that enjoy higher levels of brand loyalty

achieve price/earnings ratios twice those of average

companies

Even in an economic downturn, 50% of consumers will pay

more for a better customer experience

Sources:

1) Carlson Marketing Group Relationship Builder Survey

2) Satmetrix Systems Customer Loyalty survey

3) Customer Experience Impact Report. RightNow Technologies

5


The changing economy

Product orientation – share of manufacturing

Market orientation – share of market

Value orientation – share of mind

6


From product brandsto lifestyle brands

7


From service brands to experience brands

8


Customer loyalty

Functional

Valuable

Emotional

CustomerExperience Management+staircase Experiences

Services

Products

9

© Copyright Smith+Co 2008. All rights reserved.10


Impact on growth

Source: Satmetrix. Exploring the relationship between Net Promoter and Word Of Mouth in the computer hardware industry. 2008


“Customer experience is bigger than

customer service in that it is the full,

end-to-end experience. It starts when you

first hear about Amazon from a friend,

and ends when you get the package in

the mail and open it.”

– Jeff Bezos, CEO

12


List the labels in an order that describes how you believe brand value

and profitability is created

What builds great brands?

Brand Loyalty

13


Adapted from “Putting the Service

Profit Chain to Work,” Harvard

Business Review, March/April

1994

The CEM+ profit chain

Profitability and growth

Brand loyalty

Customer behaviour

Customer satisfaction

The Customer Experience

Employee behaviour

Employee satisfaction

The Employee Experience

Leadership

Adapted from “Putting the Service Profit Chain to

Work,” Harvard Business Review, March/April 1994 14


Customer experience audit

Create brand platform

Customer experience

design

Internal communication

External communication

The CEM+ six step process

1

2

3

5

4

6

Source: Brands and Branding. Profile Books. 2003

products

processes

people

proposition

15


Customer Experience audit




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

16


What do customers value?

17


©Copyright shaunsmith+co. 2008. All rights reserved.

Value strategies

• Operational Excellence: Ryan Air– Competitive pricing

– Speedy order fulfilment

– On time delivery

• Product Leadership: Sony– Functionality

– Features

– Performance

• Customer Experience: Ritz Carlton– Quality of relationships with customers

– Exceptional or individual service

– Completeness of solutions

Source: The Discipline Of Market LeadersTreacy and Wiersema. Addiison Wesley.1995


The CEM+ process




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

20


What do these brands stand for?

21


What do these companies stand for?

● Quality

● Prestige

● Technical excellence

● Innovation

● Service

● Value

● Selection

● Convenience

● Price

22


Value disciplines: Virgin

0

5

101

23

Operational Excellence

Customer Intimacy

Product Leadership


Value disciplines: Ryan Air

0

5

101

23Operational Excellence

Customer Intimacy

Product Leadership


Value disciplines: Singapore Airlines

0

5

101

23

Operational Excellence

Customer Intimacy

Product Leadership


Understanding our customers

1. Review your scores and identify one or two actions that you can take in your organisation.

We have identified our most profitable customers

We know what are target customers expect and value

We know the value drivers that build loyalty in our market

We know how our customers rate the current experience we provide

against these value drivers

We understand to what extent, and why our target customers prefer our

brand to that of our competitors

26


“A brand is a promise and you have to keep

your promises”

27

© Copyright Smith+Co 2008. All rights reserved.Source: Uncommon Practice –People who deliver a great brand experience. S.Smith

and A. Milligan. FT.Prentice Hall 2002

Case study two: First Direct

“What First Direct did was to

realise that people were changing

their habits and would want to

bank 24 hours a day, 7 days a

week. So that was the insight,…

I think that all great

brands have insight”

– Peter Simpson,

Commercial Director

28




EVERY 8 SECONDS SOMEBODY SOMEWHERE

RECOMMENDS FIRST DIRECT TO A FRIEND

Black & white banking31


Customer loyalty

32


Customer loyalty

33


Advocacy drives growth

Source. Advocacy Drives Growth. Dr. Paul Marsden. London School

of Economics. December 2005.

Banking: Effect of Word of Mouth (Net Promoter Score) on Income Growth

34

“The clear winner in the banking industry was First Direct, which received a 42% rating compared with the sector average of -4%.

Fans liked the fact that customer service staff were accessible, friendly and knowledgeable...”

Source: Annual NPS awards. Satmetrix June 2010


The CEM+ process




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

36


Imagine you are in a hotel room….

37


designing the new experience

38


Customer JourneyCustomer

Touchline

Getting to the

airportCheck-In

Comfort until

FlightIn-Flight Comfort Arrival

Getting to

Destination

Customer

Experience

Issues

● Stressful

● Complicated

● Parking

● Lugging

● Long,

frustrating lines

● Security

hassles

● Want/need

to work

● Want/need

to relax

● Planes are

uncomfortable

by nature

● Long-time spent

in a seat

● Boredom

● Unkempt

● Unshowered

● Clothes a

mess

● Traffic

● Unfamiliar

place

CUSTOMER EXPERIENCE

Pleasure

Pain

39


Virgin customer journeyCustomer

Touchline

Getting to the

airportCheck-In

Comfort until


Getting to

Destination

Customer

Experience

Issues

● Stressful

● Complicated

● Parking

● Lugging

● Long,

frustrating lines

● Security

hassles

● Want/need

to work

● Want/need

to relax

● Planes are

uncomfortable

by nature

● Long-time spent

in a seat

● Boredom

● Unkempt

● Unshowered

● Clothes a

mess

● Traffic

● Unfamiliar

place

CUSTOMER EXPERIENCE

Pleasure

Pain

40


Virgin – brand IconsCustomer

Touchline

Getting to the

airportCheck-In

Comfort until


Getting to

Destination

Customer

Experience

Issues

● Stressful

● Complicate

● Parking

● Lugging

● Long,

frustrating lines

● Unnecessary

(only

necessary to

the airline)

● Want/need

to work

● Want/need

to relax

● Planes are

uncomfortable

by nature

● Long-time

spent in a seat

● Boredom

● Unkempt

● Unshowered

● Clothes a

mess

● Traffic

● Unfamiliar

place

CUSTOMER EXPERIENCE

Design

features

● Transport to

airport

provided

● Driver

handles

luggage

● “Drive-though”

check-in

● Airline knows

where you are

● Clubhouse

with Internet

access, fax,

library

● Salon,

messages,

beauty

● Sound

room,

driving

range,

skiing

machine

● Full-sleeper

seats

● Mood lighting

● Gradual dawn

● Bar

● You decide

meals

● Arrival valet

● 18 showers

● Makeup &

shave

● Heated

floors

● Clothes

pressed

● Hot & Cold

Breakfast

● Chauffeured

delivery to

destination

● Comfortable

ride door-to-

door

● Knowledgeab

le local driver

41


Defining the new customer experience


We have set up a partnership between marketing, HR and Operations to

define and deliver the customer experience

We have defined a brand promise that differentiates us in the eyes of our

target customers

We have mapped our customer touchline in terms of identifying the key

points of contact our customers have with us and how our promise should

be delivered at each

We have defined how to improve our services and processes to deliver our

customer promise in a way that is consistently valuable to target customers

We have defined the specific employee behaviours required to deliver the

new experience

42

coffee time

43

© Copyright Smith+Co 2008. All rights reserved.Source: Uncommon Practice- People who deliver a great brand experience

Shaun Smith and Andy Milligan. FTPrentice Hall 2002.

“I’ve always said I would put my

employees first, customers

second and shareholders third,

but if you do that… the

customers and the shareholders

benefit anyway”

– Richard Branson, Chairman

44


The CEM+ process




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

45


47 / TFWA – May 10 2010

THE BURBERRY EXPERIENCE MODULES

Delivering the Burberry

Experience in our Store

Module 1 – Be Professional

Module 2 – Be Perceptive

Module 3 – Be Proactive

Module 4 – Be Passionate

Module 5 – Persevere

Module 6 – Personalise

Module 7 – Partnership

48 / TFWA – May 10 2010

THE BURBERRY EXPERIENCE PILOT HIGHLIGHTSFINANCIAL RESULTS

• KPIs over the first 6 months compared to 2 months pre-initiative:

–15% points better performance in change in LFL sales growth

–0.3% points better performance in UPT

%C

han

ge

Pilot Stores

Rest of PilotRegions(ExcludingPilots)

BURBERRY EXPERIENCE PILOT

% C

ha

ng

e

PRE-PILOT

LF

L S

ALE

S

49 / TFWA – May 10 2010

The top three factors that shoppers consider before recommending a brand are merchandise, service and store atmosphere. Two standouts across several criteria are British fashion house Burberry and French luxury outfit Louis Vuitton, with 77% of shoppers saying they would recommend Burberry to family and close friends...”

Source: The Luxury Institute April 2010

WHAT WERE THE RESULTS?-2010

50 / TFWA – May 10 2010

WHAT WERE THE RESULTS?-2010


Delivering your customer experience


We have continuing internal communications to build clarity and

commitment around implementing the customer experience

Our leaders have been trained as champions of our customer experience

and are leading its implementation

We have created training to equip our employees to deliver the customer

experience

We have a scorecard of indicators that provide leaders with objective and

timely feedback on how well we are delivering against our promise

Our HR practices are reinforcing our brand values

51


The CEM+ process




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

52


Vorsprung durch Technik

53


The Ultimate

Driving Machine



What makes a great brand?

Source Grey Worldwide. Eye On Australia survey

Trustworthy 97%

Credible 96%

Tells the truth 96%

Never lets me down 93%

The company has values and ethics 92%

Consistent 91%

Interesting and worth talking about 86%

Innovative 85%

Inventive 84%

Recommended by people I know 78%

Been around for a long time 41%

Seen everywhere 39%

The biggest 15%

55




Be engaged…

every


The CEM+ process




Customer experience

design



1

2

3

5

4

6

products

processes

people

proposition

59


Brand image Brand promise

Brand delivery

Marketing

CEO

Learning, performance management, reinforcement

OperationsHuman

resources

Finally... It requires leaders

60


A tale of two CEO’s

61


Creating alignment

Brand

promise

People &

behaviourCommunications

Customer

experienceProduct &

services

Customer

understanding &

insight

Service

delivery

Innovation

skills

Internal

communications

External

brand

communications

Recruitment/

induction

Performance

management

Leadership &

management

development

Product

development

capability

Branded

training

Customer

processes

Brand

Icons

© Copyright Shaun Smith Co 2007. All rights reserved

Aligning the organisation

What must be unique

about our culture and

our people?

What internal processes

do we need to enable

us to deliver our

proposition?

What strategic

choices will

drive

achievement of

our purpose and

vision?

What service

experience must

we create to

deliver this

proposition?

What can we

promise that will

create

competitive

advantage?

Process

Customer

Experience

Brand

Proposition

People

Strategy

What must be

distinctive about our

products and services?

Product/Service

What must we measure at each stage?

What do

we stand

for/aspire

to be?

Purpose


Leading the customer experience


Leaders believe that giving customers a better experience will lead to

profitable growth

Our company’s top executives demonstrate their commitment to our

customer experience strategy

Leaders make decisions that are consistent with our customer experience

strategy

Leaders measure and monitor the quality of the customer experience

Our leaders recognize employees who put customers first

64


Case Study



A case study...

Source: Advocacy Drives Growth. Dr Paul Marsden. London School of Economics December 2005.


“O2 was top of the mobile network scorecard. It gained a rating

of 24% compared with an industry average of 3%”

Source: Annual NPS awards. Satmetrix June 2010


The experience you deliver to your

customers every day, through every transaction,

direct and indirect either builds value for your

brand or destroys it.

69


CEM+Customer ExperienceManagement+™

www.shaunsmithco.com

Smith+co шон смит

Documents

years copyright smith

copyright shaunsmith

customer experience

customer experience

customer experienceaudit6

product brands

customers value

current experience