1) The document discusses optimizing customer experience and whether it should be handled in-house or outsourced. It notes that only 28% of customer experience professionals feel their programs are successful and 89% of companies will differentiate based on customer experience.
2) It discusses various approaches to customer experience including measurement, focusing on customer satisfaction and loyalty, and the importance of leadership, culture, and focusing operations on customers.
3) The presentation provides frameworks and models for assessing customer centricity maturity levels and developing a roadmap to improve customer experience.
2. 28%
Maritz CX
Only 28% of CX
professionals feel
their programs are
successful at
driving business
outcomes
Gartner 2016
Of companies will
be differentiating
themselves
mostly on the
basis of Customer
experience
Source: Placeholder example
Are you ready?
2
89%
6. The Satisfied Customer – Claes Fornell
6
• Alert for in-house “do-it-yourself”
approaches (usually guided by the desire
for simplicity). Simplicity is all good and
well, but it sometimes comes at a high
price.
• Paradoxically enough, measurement has
become standard in CX, but the
measurement itself is rarely subjected to
professional standards and its accuracy is
often questionable.
• Scientific discipline brings discipline. It
forces beliefs into the open, makes
assumptions testable and lets us build on
what’s known.
7. The Fallacy of Percentages
7
• Reporting customer satisfaction in percentage
terms “85% of our customers are satisfied” and
“our customer satisfaction score is 90%”.
This is mostly nonsense. It is the same as
measuring intelligence by asking: “Are you dumb
or smart?”
• Satisfaction is a continuum between two
extremes – extremely dissatisfied and extremely
satisfied. It leads to imprecision, i.e. large
margin of error.
• Measurement is about precision – random noise
is the opposite of precision.
• If the customer satisfaction measure cannot be
tied to future financial performance, its
economic relevance is lost!
8. Recommendation is better than Satisfaction - More Delusions!
• First fallacy – assuming that the recommendations will
actually happen regardless of how satisfied the customers
are.
• Second – the foolish Recommendation measurement
practices proposed by NPS
• GOOD measurement -> minimizing random error. NPS
reduces a continuous scale to something binary and in the
same time triple the random error (see next slide).
• It is not that companies adopting NPS as their only measure
do not have competent statisticians or market researchers,
but the decisions are often made at an organizational level
where even rudimentary knowledge of measurement
properties is slim.
9. The Power of Estimates
9
Mean of 11-point
Likely to
recommend
NPS CSI
Sample (n) 697 697 711
Mean 7.5 23.5% 74.2
95% Confidence
+/-
0.23 6.5% 1.63
Lower CI Limit 7.30 17.0% 72.6
Upper CI Limit 7.76 30.1% 75.88
Ability to predict/detect 5% increase in mean
Test mean 7.9 25% 77.96
Power (1-Beta) 89.6% 5.4% 99.37%
Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A Methodological Primer. pp.1–37.
10. Debunking the Myths about CSI
10
• Myth:
Lower number of complaints = higher customer
satisfaction
– Counterproductive and paradoxical objective
– Complaint expectation: Customer believes = reward > effort (and
unpleasantness) of complaining
• Truth: SILENT MAJORITY = Most customers do not
complaining!
11. You can Buy Loyalty, but Satisfaction must be Earned
11
• Myth: Customer Satisfaction is “worthless”, but
Loyalty is “priceless”
• Truth: Customer Loyalty without Satisfaction is
a contradiction of the basic mechanics of the
free market system and violates the cause-and-
effect relationship between satisfaction and
loyalty
12. Satisfaction vs. Loyalty
12
• Satisfaction has a STRONGER effect on financial
performance than Loyalty.
• Reason: the increased revenue generated by improved
loyalty is not offset by the higher costs of the Loyalty
programs (unless generated by customer satisfaction) –
e.g. Frequent flyers being members at all frequent flyer
loyalty programs
14. Most Important Customer Experience Strategies for Business
14
Implement
Customer Centric
Culture
21%
Improve workforce
training/mngmt
retention
17%
Transformation
Change
17%
Costs/Efficience/P
roductivity
16%
Engage customers
through new
channels
13%
Improve Call
centre technology
11%
Deliver CX from
new geographical
sites
4%
Deliver CX via
virtual call centre
1%
Source: Teletech E-book : Customer Experience benchmark research report 2015
1
2
3
4
5
6
7
8
15. 15
Beloved Companies …
• … decide to Believe
“We trust our customers. We trust those who serve
them”
• … decide with Clarity of
Purpose
“Our iron-clad integrity and clarity guides the
direction of our decisions”
• … decide to be Real
“We have inspired soul, humanity in our touch and
personality that’s all ours”
• … decide to be There
“We must earn the right to our continued relationship
with customers”
• … decide to say Sorry
“We act with humility when things go wrong. We will
make it right”
Source: www.customerbliss.comJeanne Bliss
16. What is ‘Customer Experience’?
16
Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A. Schlesinger (2009), “Customer
Experience Creation: Determinants, Dynamics and Management Strategies,” Journal of Retailing, 85 (1), 31–41.
This experience is created by:
The Customer experience construct is holistic in nature and
involves the Customer’s cognitive, emotional, social and physical
responses to the retailer.
controllable elements -
service interface, retail
atmosphere, assortment
and price;
uncontrollable elements -
influence of others, purpose
of shopping;
Customer experience encompasses the total experience,
including the search, purchase, consumption and after-sale
phases of the experience, and may involve multiple retail
channels.
17. 2
3
4
5
1
Leading Indicator Of Business Performance
17
Source: Gupta, S. & Zeithaml, V., 2006. Customer Metrics
and Their Impact on Financial Performance. Marketing
Science, 25(6), pp.718–739.
18. Proven statistics about the links between Customer Satisfaction & Business Outcomes
18
Source: Gupta, S. & Zeithaml, V., 2006. Customer Metrics and Their Impact on Financial Performance. Marketing Science, 25(6),
pp.718–739.
Customer
Satisfaction
Meta analysis by Sunil Gupta & Valarie Zeithaml (2006):
+1%
Customer
Satisfaction
+2.37%
ROI
-1%
Customer
Satisfaction -5.08%
ROI
19. Link between Customer Satisfaction & Business Outcomes
19
Research using ACSI data demonstrates the relationship between customer
satisfaction and the financial performance of individual firms. ACSI’s
methodology show that customer satisfaction is directly linked to stock
market performance.
http://theacsi.org/national-economic-indicator/financial-indicator
20. Customer Experience in Perspective
20
The term Customer Experience Management is used
within the broader context of Customer Relationship
Management (CRM)
“CEM is part of customer relationship management
(CRM) and the natural extension of building brand
awareness”
Source: Kirkby J, Wecksell J, Janowski W & Berg T, “The Value of Customer Experience
Management”, Strategic Analysis Report, March 2003
21. CX 101
21
Adapted from: Bitner M-J, “Building service relationships: It's all about promises”, Journal of the Academy of Marketing Science, Vol 23(4), 1995 & Kirkby J,
Wecksell J, Janowski W & Berg T, “The Value of Customer Experience Management”, Strategic Analysis Report, March 2003
23. Purposeful
Leadership
Do your leaders operate consistently with a clear,
well articulated set of values?
Compelling
Brand Values
Are your brand attributes driving decisions about
how you treat Customers?
Employee
Engagement
Are your employees fully committed to the
goals of your organization?
Customer
Connectedness
Is Customer feedback & insight integrated
throughout your organization?
Source: Temkin Group – June 2015
CHANGE THE CX NARRATIVE
23
24. Before jumping right into
solving a problem, we should
step back and invest time and
effort to improve our
understanding of it.
:Prof Adré Schreuder
“
”
25. CX as Art & Science
Slide 25
CHURCHILL, G,A.; A Paradigm for Developing Better measures of Marketing
Constructs, Journal of Marketing Research Vol. XVI (February 1979). 64-73.
More stupefying than the sheer number of our measures is the
ease with which they are proposed and the uncritical manner in
which they are accepted. In point of fact, most of our
measures are only measures because someone says that they
are, not because they have been shown to satisfy standard
measurement criteria (validity, reliability, and sensitivity)
26. Archetypes of Client Insights Maturity
26
Have no Insights FunctionA
We cannot afford dedicated
resources
A1
Company Ethos
We have a lot of Client data,
but do not use it well
A2
Beyond Analytics
We cannot change the
structure or process easily
A3
Start-up within
Have Insights Function, but want to
get more out of themB
We use CusInsights for
Marketing rather CVP
B1
Product Tool
We do all the right things,
but still poor CE
B2
Experience Driven
CusInsights too expensive,
make more affordable
B3
Centralized Coach
CusInsights not shared/
lost in company
B4
Knowledge Centre
CusInsights add little
value to CVP or business
B5
Insights to Inform
Source: Worldbank – CGAP & Dalberg Consulting
Dalberg Consulting developed 8 archetypes with CGAP
27. Changing your focus from INSIDE-OUT to OUTSIDE-IN
changes your perspective in the design of a differentiated
customer experience.
From INSIDE-OUT to OUTSIDE-IN
27
29. THE CONSULTA MEASUREMENT FRAMEWORK
Slide 29
LEVEL1
LEVEL2
LEVEL3
STRATEGIC
REPUTATIONAL
OPERATIONAL
REAL TIME
Copyright Consulta 2016
30. Outside-In & Inside-Out
30
Proprietary Strategic (Review & Focus)
National and International Benchmark
Operational Measures
National and International Benchmark
Proprietary Strategic/Visionary Measures
Strategic
Minimum standards
Inside-Out View Outside-In View
Strategic Reputational Measures
CC Audit
CC Destiny
NPS
Effort Score
Best Practise
OperationalStandards & Foundation
Level 1
Level 2
Level 3
2018
CC Maturity
OUR COMPANY
OUR
CUSTOMERS
OUR COMPANY
OUR CUSTOMERS
31. Business Understanding of Client Engagement
31
47% Brand
Perspective
40%
Client
Perspective
13%
47% of Business
view Client
Engagement from
a Marketing/
Brand and/or
Business process
perspective
40% of Business
view Client
Engagement from a
Client Experience
perspective
ONLY 13%
see Client Engagement from a
Brand & Client Perspective
Source: Rosetta Consulting. 2014 Client ENGAGEMENT
Rosetta Consulting’s Client Engagement Survey Part 1: The Marketer’s Perspective
http://www.rosetta.com/reports/Client-engagement-rosetta-consulting-study/Client-engagement-from-the-marketers-perspective
33. Five pillars of Customer Centricity as a business model
33
Leadership
and culture
Customer focused
leadership and culture
Focusing
operations
Focusing operations
on the Customer -
compliance, risk, IT,
HR, finance,
marketing, legal,
training
People, tools
and insights
Collecting information,
generating insights,
informing strategy,
informing Customer
value propositions and
empowering employees
Customer
experience
Based on insights
generated, design,
concepts, test, build,
delivery, scale and
renewal
Value
Creating and
measuring value: at
Customer, firm and
society level
Source: Worldbank - CGAP
34. CGAP Customer Centricity Maturity Model
34
• A Causal Model with Longitudinal Journey
35 Statements:
Agreement scale
_____
Aligned with 5
customer centricity
pillars
Customer
Centricity
Maturity
Model
Pillar 1: Leadership &
Culture
Pillar 3: Empowering
employees, insights
& tools
Pillar 4: Customer
experience
Pillar 5: Creating
value
Pillar 2: Focusing
operations on the
customer
38. CC Development Matrix
Slide 38
Enablers►
▼ Pillars
KNOWING PLANNING DESIGNING DELIVERING ENGAGING RESPONDING
Pillar 1: Leadership &
Culture
CC MATURITY CC DESTINY CC ROADMAP
CC STRATEGIC
FRAMEWORK –
Roll Out
CC
MEASUREMENT
FRAMEWORK
(Reputational &
Transactional)
CC BENCHMARK
MEASURE
Pillar 2: Focusing
Operations on the
Customer
CC STRATEGIC
FRAMEWORK -
Planning CC
MASTERCLASS
CC JOURNEY
MAPPING
Current State Voice-of-
Customer
ChannelsPillar 3: Empowering
Employees, Insights,
and Tools
RCA (Root Cause
Analysis)
CC JOURNEY
MAPPING
Desired State
CEM / CEP
TRAINING
CEM / CEP
TRAINING
Pillar 4: Customer
Experience
CC VALUE PROP
CC ROADMAP
CC MATURITY
Pillar 5: Creating Value CC FORECAST
ROMI, Linkages Analysis,
Predictive Modelling
CC FORECAST
39. Key Take outs
• Stop the measure-madness - More Comprehensive &
Integrated model for CX-measurement
• Break the start-stop-start mentality & silver bullet 6-
months project mentality:
– Journey to Customer Centricity will take 3-5 years (of consistent
clear strategy):
– We need more evangelist CX professionals by ”educating” business
about the true scope of CX implementation
• Break the PR-Ra-ra podium lip service mentality -
Business needs to ”walk-the-talk”
• Break the “we focus on the customer, but prefer
profit” mentality at C-Level - More CCO’/CXO’s that will
represent the customer at C-levelSlide 39
