digital customer service for the digital age 24th march indigo blue peer 1 hosting

Skulduggery is more fun

2 stories

Denial of service

HAPPY STAFF

HAPPY CUSTOME

RS

MORE PROFIT

PLANNING YOUR ROUTE TO EXCELLENCE

Start with the staff – IT’S PROVEN:

FINANCIAL MODEL

Practice What You Preach

PRACTICE WHAT YOU PREACH

I am highly satisfied with my job I get a sense of accomplishment from my work The work I’m given is challenging, not repetitive I am committed to this firm as a career

opportunity Move the scores from 4 to 5 on a 6 point scale

for a 42% improvement in financial performance.

Practice What You Preach

ESTIMATED LIFETIME VALUE - REVENUEFACT: A great customer is worth 102x an unhappy one.

ESTIMATED LIFETIME VALUE - MARGIN

Myths that get in the way

What problem? Someone else's problem or not the only one with

a problem Cant fix it Recovery is expensive But the customers are happy Cant afford to fix or too busy CEO doesn't get it

The CEO gap

CEOs who believe their firm is above average on service – 75%

Customer feedback – somewhat or extremely dissatisfied with most recent experience – 59%

Accenture 2007

Issues

Keep handling the same issues Self service doesn't exist or is rubbish Service is reactive Hard to contact the right person

Sorry I cant transfer you

Customer service dept..... Company CANT listen Wrong metrics Wrong staff

Solutions

Eliminate dumb contacts Closed loop active listening

Cut the crap meetings Owners of solutions

Make yourselves easy to do business with Self service tools that work Change your metrics Be proactive Preventative support First Call SupportTM

Stop doing dumb stuff

Why do customers contact you? Phones calls Emails Support tickets How to track this?

What happens to complaints? How many invoice problems? Credit notes for what? Low rated support tickets?

Major Supermarket Chain

Heatmap Interpretation:

1. Promote success? For example, create prominent banner for ‘Go Shop’ or focus on less popular items?

2. What are users’ missing? Can navigation be restructured?

Self service example

Before 1000 “tickets” per day 12 staff Monthly purge to stay “on-top” After 300 tickets per day 4 staff Costs setup plus £600 down to £200 per month

Tools

Recovery

TNT found increased loyalty after recovery Done right it builds trust Don't just write you need to call

Measure your service

Not annual survey! NPS monthly Customer touch points By employee By touch point Every time in real time Feedback, feedback, feedback

Maximising The Value of Customer Feedback

2. COMMUNICATING TO OUR EMPLOYEES

• All can access survey results online (in real time)

• E-mail alerts instantly sent to Operations Director if customer rates itlab less than 7/10

1. MEASUREMENT

• NPS issued monthly to 1/3rd customer base

• Insight Survey issued within 30 days of becoming a customer

3. ACTION PLANNING

• Survey results (NPS, suggestions for improvement etc.) are reviewed at team meetings

• Directors ring all text answers

4. ACTION DEPLOYMENT

• Customers that aren’t delighted are followed up with a health check

• Appropriate customer suggestions are implemented

5. COMMUNICATING TO OUR CUSTOMERS

• Customers receive feedback on the changes we have implemented as a result of their suggestions

Net Promoter Score

Net Promoter score Key metric to measure customer service Would you recommend us to a friend or colleague? Your dedicated team is rewarded only on your satisfaction

Bad profits and Good profits Bad profits are profits earned at the customer’s expense, in other

words, profits earned from customers which then become detractors

Good profits are earned from creating customer value, which in turn creates customers who are promoters

Net Promoter Score

Net Promoter Scoring

Answers between 0 to 10 0 – 6 = Detractors 7 – 8 = Passive 9 – 10 = Promoters

Score Calculation: Promoters – Detractors/Total Responses = % Score

Management target - How do we turn passives and detractors into Promoters??

Where does growth come from?

Easy to do business with

People Vision

Recruit great people and allow them to do what they do best every day.

Percentage of Buyers Getting the Same Make Again

Source: J.D. Power Associates

40%

0%

10%

20%

30%

40%

50%

Good Car/Good Dealer

16%

Good Car/Bad Dealer

24%

Bad Car/Good Dealer

Employee Satisfaction Drives Loyalty

MEANS Low employee turnover is directly linked to high

customer satisfaction. Dissatisfied employees are 300% more likely to leave.

SPECIFIC ACTIONS Implement weekly yay/meh/boo (YMB) survey – act

decisively on the results. Management to be careful what is promised and then

ALWAYS deliver on promises to staff.

How are you today?

Case study: itlab

“We seek criticism”

THE CHALLENGES WE FACED“It’s not how good you are it’s how good you want to be…”

• Poor communication with clients – always reactive, never proactive.

• Poor communication internally – impacting client service.

• Lack of commercial confidence – Fear of discriminating about which customers to serve.

• Crisis of bureaucracy – competing systems, conflicting goals.

• Poorly integrated acquisitions – different product sets, cultures and teams.

• Misaligned products – didn’t reward adding value to the client.

THE ACTIONS WE TOOK

Clearly define excellence – Service Obsession™ & Core Values

Create strong culture – Flags, 10 Things, Balls of Glory, Charity & Social Committees, Friday Nights & Fun Zone.

Benchmark excellence – Net Promoter & closed case Redefine Products – 2.0, Direct, ITMS IT Manager – trusted advice from a techie NOT a

salesman. Specialist Practices – acquisitions role clearly defined Netsuite – replace all internal systems for data unity, portal,

single invoice, surveys, instant feedback loops

THE IMPACT ON THE ORGANISATION

Service gross margin – From 50% to 67% Profitability – From breakeven to 7% and rising (35K pm) SLA – 10 minute critical 97% last quarter average 2.34min Responsiveness – average call answer is 4 seconds 5 out of 5s! – 75% of rated tickets marked 5 – Serviced

Obsessed (40% response rate) Financial Times Top 50 Places to Work (companies of any

size) NPS - -2 to +14 and then +55 The Results you Can’t Measure – go and visit for Richard’s

Mum’s Cake!

Specific Actions

Abandonment rate Back to the floor Say thank you Say sorry Bombard the departments who should own the

issues Mystery shop yourself Blog about it

Measure

Contact rates – down Repeat revenues – up Referrals - up Staff turnover – down Escalations and complaint costs – down Consistency - up