What are "Moments of Truth"? What is customer experience? Why have most market leaders been investing in customer experience? This presentation (part of a larger one called "The truth about Moments of Truth") focuses on defining what Moments of Truth are for an organization from the customer's perspective and links Moments of Truth to Customer Experience Management.

1. The truth about Moments o
of Truth
Geert Martens, practice leader 4C Consulting
p g
geert.martens@4Cconsulting.com @geert_martens http://www.slidesha
are.net/gmartens http://be.linkedin.com/in/martensgeert

2. What are
mom
ments
of truth
of t th

3. What
is
Customer
Experience?
Moments of Truth Customer Experience
What
are
Moments
of
Truth?

4. A customer e pexperience is
(a single or) a chain of interactions
between an organizati
b t i ation and a customer.
d t

5. 1.
Between an organization
and a customer
d t
2.
About emotions
s
3.
g
Measured against
customer expectations

10. “Emotions color
Emotions color
the experience and,
p
more importantly,
how the experience
how the experience
will be remembered”
Donald A. Norman
D ld A N
Source: http://www.slideshare.net/koenatclaes/on-why-we-should-not-focus-on-ux

11. Customer Experience | A chain of interactions
p |
i i
i i
i i
i i Customer experience is
p
After
Aft Before
B f
a journey, not a
i i destination
The journey consists of
i i a chain of interactions
During
11

12. Customer Experience | Intu
p | uitively measured
y

« Love » « I cannot live without this »
DELIGHTED
Enjoyable
j y « I rea y like this »
ally

Efficient « This works really well »
s
Functional « This works well »
s SATISFIED
Average
A « N th
Noth
hing
hi special »
i l

« Ugh ! » « I did not like that »
d
« Not again » « Onc again, I am not happy »
ce DISSATISFIED
Loathing « I hate this and want to leave »
this…
Source: Gartner 12

13. What is Customer Satisfaction?
Perceived Performance vs.
Expectation
Expectation = ƒ(Prior Experiences,
Desired Performance)
The level of satisfaction = the
intensity and direction of the gap
intensity and direction of the gap
between “perceived performance”
and “expectation”
Key take‐away: work both sides to
increase satisfaction levels
increase satisfaction levels
13

14. Customer experience is
C t i i
NOT about d g
doing whatever it takes
to “wow” customers

15. Customer Experience | A chain of interactions
p |
 
 
 
 After
Aft Before
B f

 
 
During
  
15

16. What
is
Customer
Experience?
Moments of Truth Customer Experience
What
are
Moments
of
Truth?

17. Customer Experience | A chain of interactions
p |
i i
i i Not all interactions i are
i i equally important
i i some of them i are
After
Aft Before
B f
more important than
i i others
these are the “Moments of
i i
During Truth
Truth”
17

18. A moment of truth is
a high‐emotion interaction point
hi h ti i t ti i t
in a customer experience
p
that can
make or break
make or break
the relationship

19. No focus on short term revenue
N f h e
Moment of Truth management
of Truth management
 Event Driven Marketing
Moment of Truth management
 Market Research
Success on all Moments of Truth
S
>>> Great
>>> Great Customer Service

20. Outside in:
Outside‐in:
the customer’s point of view
Process excellence
+ interpersonal excellence
Focus & empathy: dare to make choices
e
Make and do not break:
opportunity & risk
& risk

21. Why invest
in moments
of truth
of t th

22. 1 2 3
Shift the
demand
curve
Reduce costs
Excellent Great
performance Customer
on MoT Experiences
Generate
revenues
Create
competitive
advantage

24. 2. Great Customer Experiences lead to…
p
Customers are prepared to pay a price
premium.
1. Shif
1 Shif the
ft the
ft Price is the most important differentiator in
demand rational competition
cur
rve
Rational elements (product
features, service attributes,…) are
easy to copy 4. Build Gre
eat Customers get involved
and share their thoughts
2. Reduce
Key success factor for
y
competitive Custo
omer costs Customers manage
advantages
impacting the customer Experiences
i themselves.
decision journey
3. Gen
nerate
revenue
Customers become ambas ssadors who stay loyal and
who promote the brand to others boost NPS  financial growth
s:
Source: Beyond Philosophy & 4C Consulting 24

25. 3. Great Customer Experiences lead to…
p
Increase in shareholder v
value
80%
2007 2008 20
009
59%
60%
40%
26%
2
Total Returns (*)
20% CxP Leaders Classification based on
9% 10% Forrester Research's
5% S&P 500 index
Customer Experience
0% CxP Laggards Index study
‐20% ‐14%
T
‐40% ‐32%
‐37%
‐49%
‐60%
60%
Source: http://www.customerthink.com/article/return_on_customer_experience_investments 25
(*) The broader stock market, generating cumulative total returns

26. geert.martens@4
4Cconsulting.com @geert_martens
www.4cconsulting.com
http://www.slideshare.net/gmartens http://be.linkedin.com/in/martensgeert