building a strategy to win back lost customers · building a strategy to win back lost customers...

Building a Strategy

to Win Back Lost Customers

August 28, 2013

2pm to 3pm EDT

W E B C A S T S E R I E S

Featured Speakers

Vivian Hairston BladePresident & CEO

Sam KlaidmanPrincipal Adviser

Martin HarrisGlobal Director, Escalation Management and Service Relationships

WinBack –

A Strategy

Sam Klaidman

Principal Adviser

Middlesex Consulting

What is WinBack?

WinBack is the strategy and

associated processes designed to

recapture previous customers who

no longer do business with your

company.

Where Does WinBack Fit?

CEMDNA Playbook Strategy�

Cost/Benefit

WinBack

Growth

Retention

Acquisition

© 2013 Middlesex Consulting

Prerequisites

�Know when you are about to lose, or actually

lose, a customer

�Product vs. service – is it you or them?

�Know how much each lost customer is worth

– customer lifetime value

�Know the value proposition of your services

or products

The Path Forward

• Reach out quickly; either retention or winback

• Talk to them

– Why did they leave?

– Where did they go?

– Did they understand your value proposition?

– Why was it not compelling enough?

– Can the decision be reversed?

• Apply lessons learned to your retention strategy

Building a Strategy to

Win Back Lost Customers

Vivian Hairston-Blade

President & CEO

EiGL Consulting, LLC

Regain or Retain?

• Long-term relationships

• Long-term value

• Experience vs. single interactions

• Ongoing Customer Experience measurement

– Operational Metrics

– Experience Metrics

© 2013 EiGL Consulting, LLC 11

• Analyze the opportunities

12

Win-Back

© 2013 EiGL Consulting, LLC

13

• More listening than talking

• Rebuilding trust

Win-Back


14

• Experience focus - Customers & Employees

Win-Back


VVVValue alue alue alue

customer

1 button-up blouse

Size =6

Color = red

Arrival = 3 days

Call Center Fulfillment

Warehouse - Pick

Order

shipped

Warehouse - Pack Warehouse – Dock

I I I I

Place Order Process

order

Fulfillment

request Billing

Lead time = 4.75 days

Processing time = 18 min

3 days 1 day .25 day

3 min 5 min 2 min

.5 day

C/T = 8 min

2 shifts

C/T = 3 min

2 shifts

C/T = 5 min

2 shifts

C/T = 2 min

2 shifts

8 min

Lean Value Stream Map

Relationship Recovery

Martin Harris

Global Director, Escalation Management

and Service Relationships

Pitney Bowes

Agenda

• Growth / Cost Comparison

• Relationship Recovery Process

– 4 Stages of Recovery

– Checkpoint

– Landing Strategy

– Report Out

• Other Key Points

Growing by Retaining

• On average, companies have a 20% customer defection

rate. Research has shown that cutting defections in half

doubles a firm’s growth rate, and reducing customer

defections by just 5 percent increases overall profits by

30 percent.

• It Costs 6-7 times more to acquire new customers over

retaining existing ones (Loyalty Effect, Fredrick

Reichheld)

The Cost of Waiting

In Software there is a direct correlation between the cost to fix a bug

and the point at which you identify the bug

Cost

Tim

e

x 10x 100x 1000x

Re

qu

ire

me

nts

De

ve

lop

me

nt

Te

stin

g

Pro

du

ctio

n

* Deloitte Consulting group found that one hour invested in quality assurance

generally saves 3 to 10 hours in downstream costs. Moreover, defects introduced

during the requirements phase – if not found until final testing – cost 50 to 200

times more.

The Cost of Waiting

Re

qu

ire

me

nts

De

ve

lop

me

nt

Te

stin

g

Pro

du

ctio

n

Software Development

Time Spent

Where is your Time Spent?

Customer Interactions

Pro

active \

Rete

ntion

Reactive S

upport

Recovery

\E

scala

tions

New

Sale

s

Win

back

Relationship Recovery – Simple Steps

Customer

Product Features Cost

Resource

Availability

Other

Customers

Customer Landing

StrategyScope

Creep

Problem Identification - Identify the ‘WHY(s)’

Disengagement

Dissatisfaction

Features / Functionality

Other

Customer Assessment – What is the Value?

• The Basics:• Financial Impact

• Current Value

• Future Value

• Historical Value (with trend analysis)

• Reference Impact

• Social Impact \ Industry Impact

• Calculate a recovery budget• Determine what is justifiable and get buy-in from the business

• Make sure this number is known

Checkpoint– Critical Questions

• Does it make financial sense to recover the Customer?

• Does the Customer make sense for your business?

• Are the Customers expectations realistic?• Can you fix them in the decided budget?

• Can you meet the desired timeline \ expectations

Remediation Plan – Fix the Why(s)

• Have a clearly defined problem statement that is

achievable:

• Pitney Bowes Software must expand existing product capabilities to

meet our needs for the current project

• Pitney Bowes Software needs to deliver software updates for MapInfo

Pro via an electronic delivery channel to all production machines before

September 30th 2013

• Hold Tight on the scope (you can have multiple remediation plans)

Execution \ Next Steps

• You can run multiple \ simultaneous recovery plans

• As new problems are identified kick off new iterations

• Ensure you are monitoring budget \ evaluating each iteration based on projected budget costs

• Re-evaluating recovery budget should be built into the process, should require senior management sign off

• As you progress iterations should turn from problems into opportunities

Customer Landing Strategy

• Customer returning to normal business operations

• Celebrate the mutual successes , remind them of what ‘we’ have

accomplished.

• Set expectations on what will change

• Align internal resources to allow for ‘soft landing’

• Be prepared to push back on additional recovery requests

• Customer Leaving

• Make it a pleasant experience, as simple as possible

• Provide whatever is possible to allow a successful transition

Report Out \ Track your Winnings

Tracking Musts:

• Analysis of Projected Value

• Recovery Cap

• Recovery Spend

• Revenue Since Recovery

Key Points – Relationship Recovery

• Manage Expectations, Manage Expectations, Manage Expectations

• Corporations \ Businesses are people; remember you are dealing with feelings

• Perception is reality• You must show progress to gain confidence

• New resources can lend fresh perspective (and not carry any baggage)

• Better to exit cleanly than, overpromise and under-deliver• This can lead to resetting realistic expectations

Thanks for Your Participation

Martin HarrisGlobal Director, Escalation Management and Service Relationships

Tel. 301/[email protected]

Vivian Hairston BladePresident & CEO


Sam KlaidmanPrincipal Adviser


Requests for Information

Bill Bradley

Director of CEM Marketing

Omega Management Group Corp.

Tel.: 978/715-2587

[email protected]

www.omegascoreboard.com

Check for upcoming webcasts atwww.omegascoreboard.com/webcast.php

building a strategy to win back lost customers · building a strategy to win back lost customers...

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