1. Breakaway Service
Performance
Center for Information Based Competition
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2. Customers Don’t Want
Relationships…
never have, never will…
Voted – BEST SESSION at Largest Banking
Conference in the World
“This guy must have felt like Gandhi at a Soldier of
Fortune rally. But he was factual, he was blunt, and
he hit it right on the screws, as we say on the golf
course. For my money, the best presentation of the
week”
Compared with 54 presentations plus keynotes from
Richard Branson (Virgin), Lou Gerstner (ex-IBM
CEO), Jamie Dimon (CEO Bank One)
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3. Customer Service Basics
Don’t want Relationships, but consistent human
treatment…
“Give me the best product, at the right price (not
cheapest) and treat me like a human being in
the process of selling and servicing that
product”
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4. What they remember…
1. Customers remember interactions
2. Specifically, how “human” they were…
What Customers remember
30%
Product/Price 30% …from
Sales/Marketing 15% product/price
Repair/Service 30% 70%
…determined by
Initiation/Installation 10%
treatment during
Billing 15% interactions
100% Bell Labs Scientists’ study of
300,000 customers
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5. What they remember
Resolving Problems Excellent Rating
Average excellence ratings 51%
Fix within 2 hours 81%
Takes longer than 2 hours 74%
Takes longer than a day 46%
Fix within two hours, tell after 84%
Fix within two hours, tell during 90%
It’s not what “Westpac does”, but how
what Westpac does… makes them feel
AT&T/Bell Labs
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6. The Human Interaction Factor
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Resources applied to
Resources applied to Buying Influence of "Humanness"
Buying Influence of "Humanness"
"Humanness" of Interaction
"Humanness" of Interaction of Interaction
of Interaction
Few companies explicitly address “high order” human touch
experience elements as a consistent, company-wide
science rather than intuitive art practiced randomly
Top sales people don’t sell better, they treat better…
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7. Human Touch as a Science
1. Behavioral - Identify Buying Emotions that most
influence decision to choose one company over
another
Acknowledgement, Respect & Trust (ART)
Acknowledgement, Respect Trust
2. Operational – 4 High Order Human Touch Sciences
a) Communicate more humanly
b) Execute as definable process
c) Consistency across business functions
d) Technology that humanizes, not dehumanizes
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8. High-Order HT Communications
High-Order
7 Steps of Customer Service
(start & end is human, middle is business)
1. Thank you – recognize their effort & concern
2. Sorry - acknowledge emotion is valid
3. Listen carefully – collect/clarify facts
4. Fix problem now or come to agreement
5. Ask for suggestions – engage in solution
6. Administrative - log complaint & reimburse
7. Follow-up – ensure closure Wendy Eggleton
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9. High-Order HT Processes
High-Order
Customers felt Ritz-Carlton didn’t care because of slow
room service orders - #1 customer service complaint
1. Room service was slow
2. Room service deliverers had long waits for elevators
3. Houseman who supplied Maids w/linen tied up elevators
4. Linen shortage required them to steal from other floors
5. Initial hotel budget created linen shortage (2 years ago)
6. Decision to cut linens by Founder and CEO
7. Solution – ordered one more “parr” of linens Horst Schultze
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10. High-Order HT Processes
High-Order
Human Touch and the Bottom line
By studying human interactions as a process…
• If fulfilled guests went from 92% to 97% over 2 years
– 4 million room nights a year
– If 5% previously dissatisfied guests (200,000) did
not leave the hotel unfulfilled and didn’t tell others
of dissatisfaction = 8% additional occupancy
– +8% occupancy rate = $300 mil. in additional profit
– $300 mil. could never be achieved by cost-cutting
w/o significantly affecting customer satisfaction
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11. High-Order HT Consistency
Share Of Wallet Vs Relative Customer Value
100%
Consistent High-Order
Experience Elements
% of Wallet Share
80%
60% Inconsistent High-
40% Order Elements
20%
0%
90%
1 95%
2 100%
3 130%
4
Relative Customer Value
AT&T/Bell Labs
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12. High-Order HT Consistency
Actual Bank Likelihood to Recommend Model
1.0
0.9
0.8
Consistent High-Order
Probability to
Recommend
0.7 HT Elements
0.6
0.5
0.4
0.3 Inconsistent High-
0.2
0.1 Order Elements
0.0
1 2 3 4 5 6 7
Customer's Perception of Interaction Humanness
AT&T/Bell Labs
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13. High-Order HT Consistency
Risk is that Westpac underestimates Competitor reaction
to Customer Satisfaction gains
Market Share and Customer Satisfaction
100% 100%
Customer Satisfaction
90%
95% 80%
Market Share
67% 70%
90% 61% 60%
50%
85% 40%
30%
80% 20%
Year 1 Year 2
Customer Sat. 85% 95%
Market Share 67% 61% AT&T/Bell Labs
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14. High-Order HT Technology
High-Order
Fatal Technology Assumptions
• We’ll “save money” by pushing customers to
technology channels and lose nothing
• A single view of the customer is not critical
• Asking for personal info before trust is OK
• Design w/o considering emotional content
• Expecting they'll tolerate a few “bugs”
• Design for our efficiency, convenience, and
control and they won’t lose theirs
• Design for task execution alone, not to
enable more human interactions
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15. The Employee Connection
“Treat employees as you would have
them treat customers”
Humanizing Humanizing Profitable
Behavior 80% How Behavior 70% how Behavior
they treat / they treat/
Leadership how they are Employees “Decision to Customers
treated Buy”
Dehumanizing Dehumanizing Unprofitable
Behavior Behavior Behavior
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16. Treatment-Chain Economics
Employee = Customer = Shareholder Fulfillment
$49 90%
% Fulfillment
85%
Share Price
$47
80%
$45
75%
$43 70%
$41 65%
1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
Share price Employee Fulfillment Customer Fulfillment
Based on 50,000 Employees, 6 business units, over 2-3 years
Quarter lag on stock price

17. Achieving Breakaway
+9% Rev.
Performance 0-2% Exp.
• 90% of Westpac change effort (SPP / Pinnacle /
Reach / Red Power / Ask Once) is addressing
30% of buying influences (customers as
consumers)
• Westpac will get 70% of return by addressing the
last 10% that impacts buying influences of
customers as people (actual customer
behavioural change: stay/buy more/tell others)
• Therefore, need to hardwire “high-order human
touch” elements into the evolution of change
programs to drive a dominant leadership position
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18. The Human Interaction Factor
100%
100%
90%
90%
80%
80%
70%
70%
$25 Share Price ?
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Resources applied to
Resources applied to Buying Influence of "Humanness"
Buying Influence of "Humanness"
"Humanness" of Interaction
"Humanness" of Interaction of Interaction
of Interaction
Does your company have advantages in its
DNA that are underexploited in becoming the
entreprise with the “human touch”?
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