1. Creating a Voice of the Customer
Process That Has Impact
Customer Management Conference
October 23, 2012
Moscow, Russia
John Goodman
TARP Worldwide
www.tarp.com
2. Agenda
• The Opportunity: How the VOC leads to CE impact
• Eight factors leading to an effective VOC
• Critical data sources and integrating them (surveys,
contact centers, operations and employee input)
• Creating the economic imperative for action
• Myths about service
• Grade yourself
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3. About TARP
• Founded in 1971—41 years of customer experience leadership
– White House Complaint Studies 1970s-80s (instigated 800#s and GE
Answer Center)
– Assisted 6 Baldrige Winners and 43 Fortune 100 Companies
– Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and
“word of mouse” (eCare and Click & Mortar studies 1999)
• Credited with developing the approach
for quantifying the impact of quality
on revenue, cost & WOM for companies
like McDonalds, Toyota/Lexus, IBM,
Harley Davidson, Cisco Systems, Xerox,
3M, HP, Honda, Hyundai, Pepsi Cola,
Apple, Frito-Lay, Coca-Cola, Mercedes-
Benz, Merck, Amway, Lexmark, Allstate,
Cathay Pacific, Shell Oil and Qualcomm.
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6. Building an Effective VOC: Six Big Ideas From
Strategic Customer Service
1. Staff doesn’t cause most customer dissatisfaction –
sales, products, processes and customers do
2. It is cheaper to give great service than just good
service, the revenue payoff is 10-20X the cost
3. People are still paramount – make the front line
successful with flexibility and clear explanations
4. Deliver technology that customers will enjoy –
delivering psychic pizza via any channel
5. Sensibly create remarkable delight
6. An effective Voice of the Customer includes all kinds
of data describing the overall customer experience
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23. Set Priorities Based on Revenue Damage
& Customers at Risk
Overall Problem % Won’t % Customers
problem experience freq recommend potentially lost
(45%) (%)1 Will not2
Meeting promised delivery
27 10.5 1.3
dates
Product availability within
23 0.0 0.0
desired time frame
Meeting commitments/follow
21 30.0 2.8
through
Equipment/system fixed right
20 22.2 2.0
first time
Adequate post-sale
19 10.0 0.9
communications
Returning calls 16 33.3 2.4
Minimum customers at risk 9.4%
Proprietary and Confidential TARP Worldwide
1 Based on multiple problem
selection
2 Based on will not repurchase only 23
25. Great Service Is A Word of Mouth
Management Mechanism
10% Tell
two = 2,000
delighted
10,000
customers 80% Tell
one = 8,000
satisfied
Tell = -6,000
10%
dissatisfied six
4,000
10% decrease in dissatisfaction results in net positive WOM
Proprietary and Confidential TARP Worldwide
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26. Problems Raise Sensitivity to Price,
Hindering High Margins
Percent of customers dissatisfied with fees rises with number of problems.
90%
80% 74%
% Dissatisfied with price or fees
70%
60%
46%
50%
40%
30% 22%
20% 10%
10%
0%
No problems 1 problem 2 to 5 problems 6 problems or
more
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30. Summary
• Create a unified VOC including operational data to identify
best opportunities
• Understand root cause including customer caused
• Quantify the revenue and WOM so CFO accepts
• Take control of the VOC and then become the Chief
Customer Officer
• Proactively educate, connect, explain and deliver psychic
pizza
• Outlined in detail in Strategic Customer Service published
by AMACOM – on Amazon for <$20.
• For package of articles - jgoodman@tarp.com or 703-284-9253
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Notas del editor
7
This graphic portrays the overall client experience. Read the chart from the left, walking the audience first through problem experience, then complaining rate then outcome of complaining. Define the three outcomes, satisfied, mollified, and dissatisfied. For this chart, satisfied is “completely satisfied with the action taken to resolve a problem”. Mollified is “‘not completely satisfied but the response is acceptable” or “not completely satisfied but some action was taken”. This is a so-so reply. The bottom category is “dissatisfied” and “dissatisfied, no action taken” on the complaint. Point out the resulting loyalties on the right hand side. No problem is the highest at 90%. Satisfied complainants are also 90% loyal. In some environments, their loyalty is actually higher than those with no problem but research in this industry does not show that – possibly because clients have to be persistent to get things fixed rather than one call and resolution is accomplished. Also point out that mollified patients have 30% lower loyalty than satisfied complainants, meaning that for every three clients who are mollified, one who will likely not buy again. Also point out that non-complainants are actually more loyal than mollified complainants. Therefore, if they complain you must satisfy them if you are to get a return on your complaint handling investment. The good news is that it is not that hard to satisfy the client.
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50
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Ask each dealer to grade themselves on each function. Ask the group which is the weakest functions. Stress that ServiceMaster can help in those areas and that one or two customers will pay for the whole program.