Paying attention How to take your customers
from deluded to devoted
Sebastian Bailey, PhD President, Mind Gym Inc.
@DrSebBailey
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Paying attention
Service matters
What’s wrong with the current
state?
Drivers of devotion
Paying attention: in practice
Service matters
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02 Competitive edge
55% of business leaders expect
to compete on service in 2020,
compared with 9% on price.
03 Return on sales
Companies that make customer
service a priority see 12 times the
return on sales than those who
don’t.
05 The cost of complacency
86% of customers have quit doing
business with a company over a
bad customer experience.
04 Reputation matters
95% of customers say they would
talk about a negative experience
on social media.
04 Reputation matters
95% of customers say they would
talk about a negative experience
on social media.
01 Loyalty
Customer loyalty is key
to commercial success.
A 5% increase in customer retention
can increase profits by 25-50%.
What drives loyalty?
• Reciprocity
• It creates a subconscious desire
for customers to return the favour
The evidence is unequivocal: focusing on customers pays more in the long-
term than focusing solely on profit or product.
What’s going wrong?
Front line aren’t
present, let
alone prescient.
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Why do customers leave?
Sources: McKinsey (2006); American Society for Quality (2000) 5
What’s going wrong?
Front line aren’t
present, let
alone prescient.
The problem is
everyone else.
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The problem is everyone else
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What’s going wrong?
Front line aren’t
present, let
alone prescient.
The problem is
everyone else.
Too much stick
and not enough
carrot.
Front line managers
are led to care more
about targets than
people.
Leaders don’t talk
to customers.
Customer service
comes first, but so do
safety, sales, supplier
management...
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5 drivers of customer devotion
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Serve colleagues as well as customers
10 Source: Schnieder et al (2009)
Developing a customer service culture
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• Be mentally
present
• Listen actively
01
Pay attention
• Be
accountable
• Manage
expectations
• See it through
03
Take ownership
• Talk human
• Show empathy
• Be authentic
02
Build trust
Take ownership
Customers will report positive service
experiences even after a failed service
recovery when employees take
ownership of the problem and
effectively manage expectations.
76% of companies leading in customer
service have devolved decision making
to their staff.
Service 2020: Megatrends for the decade ahead (2011). Economist Intelligence Unit.
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76% of leading
companies
Developing a customer service culture
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• Be mentally
present
• Listen actively
01
Pay attention
• Be
accountable
• Manage
expectations
• See it through
03
Take ownership
• Recommend
• Be compelling
• Innovate
04
Add value
• Talk human
• Show empathy
• Be authentic
02
Build trust
Add value
Customers are more likely to respond if:
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31% of customers’ positive experiences of support
comes from staff making recommendations
Understanding They believe their needs have been
listened to and are being met.
Expertise They believe that the person
they’re talking to is an expert.
Social proof They believe lots of other people
do the same thing.
Developing a customer service culture
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• Be mentally
present
• Listen actively
01
Pay attention
• Be
accountable
• Manage
expectations
• See it through
03
Take ownership
• Recommend
• Be compelling
• Innovate
04
Add value
• Talk human
• Show empathy
• Be authentic
02
Build trust
05
Coach to flourish
Coach to flourish
Chhokar, J. & Wallin J. (1984). Improving safety through applied behaviour analysis. Journal of Safety Research, 14 (4)
Mortimer, M. (2006). Performance Management: Work Worth Doing. Quintiles Transnational & SuccessFactors. Bracknell.
Becker, L. (1978). Joint effect of feedback and goal setting on performance – Field-study of residential energy-conservation. Journal of Applied Psychology, 63: 428.
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Customer FIRST programme
• Aim: To turn around the decline in customer service and so make
Santander the bank people want to bank with.
• Scope: 11,000 branch staff
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Trust me
‘Trust me’ helped them make the right decision by digging
deeper into what each of their customers – internal and
external – values.
Learning bites 1 & 2
See it, solve it
See it, Solve it helped the Branch Managers see
the real good, bad or ugly impact their behaviour
was having in their branches and so do
something about it.
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Learning bites 3 & 4
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How can I help you? How can I help you? helped Branch Managers become
the brand’s guardians, nipping complaints in the bud
and preventing escalations.
Power in your hands
Power in your hands gave Branch Managers the coaching
skills they needed to continue to do this, sustaining their
own behaviour change and ensuring
it spreads through their branch too.
Customer FIRST has helped managers across the
board
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As a result
of Customer
FIRST, BMs
agree that…
Attendance was
typically 88%
Response rate
for feedback
was typically
85%
The results
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Winner: Best National Brach Network
Your Money Direct Awards 2012 & 2013
Winner: Most improved bank for customer service in UK
Moneywise Customer Service Awards 2012
“ Improving the service we offer at Santander UK is our top
priority... We do have more to do and continue to focus
relentlessly on improving the levels of service we provide to our
customers.
“
Steve Pateman, Head of UK Banking
Service improvements
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Reduced banking complaints by 23% from the
first half of 2012
23%
Independent consumer surveys show
improved satisfaction, with our FRS score
rising to 57%, Santander UK saw a significant
reduction in the gap to the top 3 performers
over the last year.
www.themindgym.com ● @themindgym ● @DrSebBailey
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