Full transcript below:
Welcome everyone! Thank you so much for joining today’s webinar. My name is Alexander Doak and I’m the Director of Customer Success at CX Workout. CX Workout is a Boston Based customer experience design firm, and a subsidiary of the Service Profit Chain Institute. Briefly, what we do here at CX Workout is we provide a combination of software, research services, and design consulting that helps our clients achieve measurable results in about half the time over traditional methods.
Today we are presenting a webinar titled The Most Misunderstood Thing About Customer Experience Design presented by Joe Wheeler. Just a little housekeeping before we get started. If you do have any questions during the presentation please feel free to type them into the question box in your GoToWebinar control panel. I’ll bring them up during the presentation and we’ll also have time for your questions at the end. Please also be sure to visit our website to sign up for our newsletter and of course we would be delighted if you could join our next webinar on June 28th titled The New Digital Leader. Now without further ado, I would like to introduce our presenter today, Joe Wheeler. Joe is CX Workout’s President as well as the Executive Director of our parent company, The Service Profit Chain Institute. Joe is co-author of two books on the subject customer experience. Managing the Customer Experience and The Ownership Quotient. Joe, over to you!
Thanks Alexander, and a big thank you to everyone joining from across the country. So we appreciate you investing some time with us today to talk about this subject which I’ll be honest, is a bit of an odd topic to talk about: “The Most Misunderstood Thing in Customer Experience Design.”
But let me tell you a little bit about what we plan to do today. You know, whenever we do these webinars my number one goal is that everyone online with us today leaves with at least one idea, one tactic, one insight, that you can start using tomorrow. So what we’re going to do today is talk a little bit about the common pitfalls associated with customer experience design. And specifically on how companies sometimes loose their way in terms of what their focus should be on creating improvements that generate a terrific return on investment.
The second one, is we are going to share a case study of a client that we’ve worked with over the last two years that I think has been a model for how you really go about this in such a way that it delivers terrific value to customers, employees, and shareholders.
And finally, I thought it would make a lot of sense to share with you four tactics. Back to my goal of having you leave with at least one thing you can take away of what we are seeing with leading companies that are embracing some pretty powerful innovation concepts to get good results from improving their CX improvement return on investment.
I have to tell you, the inspiration for this webinar actually came from a LinkedIn article I wrote back in April. I got a lot of responses, comments, to this article. And it opened with a story that I can remember as clear as day as if it happened yesterday. We were working with a client in the financial services industry. It was one of the early meetings with the management team, and the head of customer operations was happy to report that his team has reduced the average speed of answer from ten seconds to five seconds.
The CEO of this company was quite a hands on person. So he had a phone right in front of him, and he didn’t hesitate, picked up the phone, called their call center and sure enough five seconds later was greeted by a friendly voice. And he thanked them, and hung up and turned to the group, and he looked at the head of operations and said: “You know George, I’m curious, what did it cost to reduce that to five seconds?” And George said that was about $850,000 all in, with all the things we had to do. And the CEO looked and George, and said “You know what, I would have been happy to wait another five seconds.”
And so this really sort of hits the nail on the head. Because the truth is, the Most Misunderstood Thing about this work we do in customer experience design is that it’s not just about customers. It’s always about all stakeholders. And this is kind of core thinking behind The Service Profit Chain. It’s about the customer, it’s also about the employee, and it’s also about the shareholder.
So what you’ll find though, is there is a core concept from service management that is a way that helps you avoid this concept. It’s something that I’m sure many people on our webinar today will be familiar with called the Cliff of Dissatisfaction. And if you’re not familiar with it, there is a great book called the Customer Delight Principle that speaks to it. Our friend and colleague Dick Chase from the University of Southern California Marshall School of Business has written extensively about this and many other service management concepts that are absolutely worth understanding. What you see in this chart is a good example of the cliff.
This is actually real data from a customer that we featured in the Ownership Quotient. And you know what this client in the casino gaming business realized was that if they could have front line service providers (cocktail waitresses, valets, etc.) if they could demonstrate a specific behavior called being upbeat and positive, and they could demonstrate that at an exceeds level, then that behavior explained about 83% of the influence over a top box customer satisfaction score. So it was a very high leveraged behavior. And in fact it was so powerfull, it could carry that top box score even if they wait got pretty close to unreasonable. So if you’re waiting for a cocktail and you’ve been waiting 10 or 12 minutes, which is a long time in their business, as long as that cocktail waitress demonstrates upbeat and positive, you’ll still be a top box satisfaction rater.
What happens, you know, when it gets past 12 to 15 to 25 minutes, then you’re thinking “What happened?” And as the data shows, not even the most upbeat and positive person can bring a customer back when they’ve fallen over the cliff. So I share this with you because when we work with customers we look for this. We try to understand to what extent from a delivery standpoint are they meeting, exceeding, or not meeting expectations, and what’s the balance between doing that and all the other attributes associated with that touchpoint.
If you’re interested in understanding other pitfalls associated with missing on things customers care about. I would suggest you visit our website and download it. It’s called the Top 5 Reasons Companies Improve Things Customers Don’t Care About. You can see some of them on the left hand side. But I think their very straight forward, but we’ve had a lot of positive feedback on this whitepaper, so I encourage you to download that.
So let’s turn to subject number two today. Let’s look at an example of company that we would suggest has really done a nice job of understanding how to approach customer experience improvement strategies to ensure they get a strong return. So that company is called American Residential Services (ARS). This is a national company across the country. Like many of our clients who we’ve seen get great success from Customer Experience programs, they’ve demonstrated five principles I guess you could say. And what I thought I’d do today is take you through it. Now ARS provides plumbing services, HVAC services, they recently signed up to be a Google partner with the NEST products and others to implement Google’s smart home capabilities. So this is a company that has really done a nice job of building on the good work they did and reducing the variation in their business model to work with other partners.
So briefly, what do they do? They do the math. What that means is before we start spending real money on changing the experience our management team all understands the size of the prize and what is at stake here for us to get this right.
The second things is they engage leaders. I don’t just mean top team senior level. I mean leaders across the whole company.
The third thing they do which is kind of at the sweet spot of our topic today, is they change things that really matter to all three stake holders.
Fourth, they enroll everybody. I mean, everybody. Not just sales or service people. Back office peoples, IT, legal, everyone gets behind the initiative and understands the strategic importance of it and most importantly their roll and what their accountabilities are.
And finally they measure the right things to know we’re on track and we keep moving.
I’m actually pleased to see that Brenda Down that heads up customer satisfaction has joined our webinar!
So they do the math.
To be continued… [10:15]