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

15

• 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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