How to Calculate Your Brand Ambassador

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How to Calculate Your Brand Ambassadors
Bottom-Line Value

• The Strategic Value of the Call Center,
• Agents and Self-Service

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Customer Experience Customer Lifetime Value
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Driving Forces

• Call Center, Agents, Self-Service
• Cost Cutting, Do More With Less, Outsource
• Not seen as a strategic business component
• Brand Equity and the Customer Experience
• Customer Relationship and Customer Experience
  Management
• The Customer Experience Increases Profitability
• Customer Experience is Created by
• Agents
• Call Center Agents
• Self-Service

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In Opposition?

• Call Center Agents Self-Service
• vs.
• Brand Equity The Customer Experience
• Lets look at some trends to help define a
  strategy that will enhance the customer
  experience and increase the value of the brand
  ambassador

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What is Required?

• If we believe that the call center, the agents
  and self-service are our brand ambassadors
• What decisions would need to be made or made
  differently to accomplish this?

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Science of Decisions
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Trend 1 Customer Experience Management

• The sum of a customers experience overtime
• Strategic management of customer touch-points
• Reflects your customers identities, needs,
  wants
• Grows customer equity

Decision1 What is your companys customer
experience management strategy?
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Trend 2 Value of Customer Experience

• Companies can differentiate based on
• Core Product Or Service
• Price
• The Customer Experience.
• The first two are nearly impossible to do today.
  
• The only brand differentiator left? The customer
  experience.

Decision2 What differentiator is your company
focusing on?
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Trend 3 Contact Center Brand Image Customer
Experience

• 63- After a bad experience they would stop using
  a company in the future
• 92- form their opinion about the company and
  brand by their customer experience

Decision3 What kind of experiences does your
company want your customers to have?
Resolved problem quickly Had answers to my
questions Had complete account info Minimum
callbacks needed Knew my name Call was
brief Efficient call transfer
Customer Experience
Brand Enhancing
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Which touch-points do our customers want?
By 2012, lt1 of organizations will be able to
effectively Manage a real-time multi-channel
experience. Gartner, 2005

• Video

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Trend 4 A Customer Experience Strategy Plan
Web
Email
Chat
Fax
Agent
IVR
?
?
?
?
?
?
Customer Data Repository
Each Touch-point Creates the Overall Customer
Experience
Decision4Which touch- points do your customers
want/need?
Customer Experience Strategy
Marketing
Service
Sales
Customers Interaction Lifecycle
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What happens if the customer experience is offon
only on one or two touch-points?
Trend 5 Integration of Touch-points

• Video

Through 2010, gt80 of CRM strategies will fail
to articulate the brand values via the customer
experience. --Gartner, 2005
Decision 5 Are all your touch-points
integrated?
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Trend 6 Satisfaction vs. Loyalty
Industry Satisfied Loyal
Electronics, Home Improvement and Drug Stores 90 50
Communications Services Wireless Service, Wireless Handsets, Internet Service Providers, Local Voice And Long-distance Carriers 75 48
Information Technology IT Decision Makers, Influencers And Staff 84 44
Decision 6 What is your company focused on
loyalty or satisfaction?

• The Walker Loyalty Report
• Satisfied Loyalty (Revenue)

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Trend 6 What Matters To Your Customers?
Industry What Matters Customer Experience
Electronics, Home Improvement and Drug Stores Product variety, Ease of Finding Products, Sales Associate Professionalism, Customer Service, Time at Check-out
Communications Services Wireless Service, Wireless Handsets, Internet Service Providers, Local Voice Long-distance Carriers Customer Service, Ease of choosing products
Information Technology IT Decision Makers, Influencers And Staff Quality Of Product, Purchase Process, Technical Support, Service And Consulting
Decision 6 What is your company focused on
loyalty or satisfaction?
Through 2010, organizations that fail to build
strong customer relationships will erode their
competitive position by 15-20/year. --Gartner,
2005
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Trend 7 Marketing, Sales and Service Teams
Customer LifeCycle Companys Departments
Customer Acquisition MARKETING- Awareness and Consideration Learning and Persuasion
Customer Attainment SALES-Purchase First-time usage, usability and delivering on the promise
Customer Retention SERVICE-Service and Repurchase Long-term usage and satisfaction and positive word-of-mouth
Decision 7 Are we integrating marketing, sales
and service into a synergistic team to create a
consistent and great customer experience through
out the lifecycle of the customer?
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Trend 8 Self-Service As A Great Customer
Experience KM
Natural Language Programming

• Understanding The Request Must
• Utilize linguistic tools to decipher the request
  and then
• Create a transaction to send keywords to the
  knowledge base for solutions
• Preparing The Answer Involves
• Understanding what the customer needs
• Collecting data from enterprise systems and
  business rule servers and then
• Composing an answer to send to customer

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Trend 9 Search Methods of Knowledge Bases
Basic Search Guided Search Linguistics Intent Driven
Search Method Keyword Phrase Match CBR Decision Tree NLP NLP Intent
Search Parameters Content Content Context Content Context Content Content Intent
Search Results Many Few Few 11
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Trend 9 Search Methods of Knowledge Bases
Basic Search Guided Search Linguistics Intent Driven
Search Method Keyword Phrase Match CBR Decision Tree NLP NLP Intent
Search Parameters Content Content Context Content Context Content Content Intent
Search Results Many Few Few 11
Decision 9 What kind of knowledge management
systems is your company using to create a great
experience?
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Trend 10 Self-Learning Knowledge Management
Systems
Decision 10 Is the knowledge management system
self-learning?
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Trend 11 Knowledge Management and Databases
Decision 11 For self-service to create a great
customer experience, need reliable, accurate and
consistent data.. -- Data Quality -- Data
Integration -- Data Maintenance Or a Single
View of the Customer

• Understanding The Request
• Utilize linguistic tools to decipher the request
• Create a transaction to send to knowledge base
• Preparing The Answer
• Understanding what the customer needs
• Collecting additional info from enterprise
  systems and business rule servers (where is the
  data?)
• Composing an answer
• Send to customer

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Trend 12 Feedback -- Continuous Re-Invention
Innovation
95 Collect Feedback 50 Alert Staff of
Findings 30 Make Decisions Using This Insight
10 Deploy and Improve 5 Inform Customers of
the Changes.
-- Gartner, 2005
Through 2010, organizations without an EFM-based
approach to feedback management will spend 40-50
more on technology and changing processes.
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Trend 12 Feedback -- Continuous Re-Invention
Innovation

• To create a great customer experience requires an
  Enterprise Feedback Management System EFM
• VOC initiatives are necessary
• Right people, right info, right changes to the
  business to even be able to strategically stay
  ahead of the competition

Decision 12 What is your companys plan for
VOC, EFM to get the right information to the
right people?
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Trend 13 Customer Lifetime Value- ROC

• Who are your customers?
• Did you define your customer segments?

• What is their customer lifetime value?

• How much do they spend?
• For how long?
• And how can you increase both?

Video
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Trend 13 Customer Lifetime Value- ROC
Customers 2M Annual Revenue 200M Average
annual revenue/customer 100 22 have a bad
experience.
Positive Experience 78
Poor Experience 22
440,000 Customers
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Trend 13 Customer Lifetime Value- ROC
22 have a bad experience 2 Complain 98
Dont Complain
8,800 Customers
2 Complain
Positive Experience 78
Poor Experience 22
440,000 Customers
98 Dont Complain
431,200 Customers
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Trend 13 Customer Lifetime Value- ROC
22 have a bad experience Loss 19.6
Million Potential Loss 24 M
2,992 customers 299,200
At risk 34
2,464 customers 246,400
Defect 28
8,800 Customers
2 Complain
Resolved 38
Positive Experience 78
Poor Experience 22
440,000 Customers
98 Dont Complain
237,160 customers 23,716,000
At risk 55
431,200 Customers
194,040 customers 19,404,000
Defect 45
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Trend 13Customer Lifetime Value- ROC
22 have a bad experience Loss 19.6
Million Potential Loss 24 M
2,992 customers 299,200
At risk 34
2,464 customers 246,400
Defect 28
8,800 Customers
2 Complain
Resolved 38
Decision 13 Is your company adding customer
lifetime value and return on the customer to the
balance sheets?
Positive Experience 78
Poor Experience 22
440,000 Customers
98 Dont Complain
237,160 customers 23,716,000
At risk 55
431,200 Customers
194,040 customers 19,404,000
Defect 45
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Trend 14 McKinsey Study Project ROI-Change
Management

• High ROI Projects 143 ROI
• Excellent Change Management Capabilities
• Senior and middle managers and frontline
  employees were all involved
• Responsibilities were clear
• Reasons for the Consensus Building were
  understood throughout the organization
• Low Project ROIs 35
• Poor Change Management Capabilities
• Lack of commitment and follow through by senior
  executives
• Defective project management skills among middle
  managers
• Lack of training for and confusion among
  frontline employees

McKinsey Quarterly, 2002
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Trend 14 McKinsey Study Project ROI- OCM

• High ROI Projects 143 ROI
• Excellent Change Management Capabilities
• Senior and middle managers and frontline
  employees were all involved
• Responsibilities were clear
• Reasons for the Consensus Building were
  understood throughout the organization
• Low Project ROIs 35
• Poor Change Management Capabilities
• Lack of commitment and follow through by senior
  executives
• Defective project management skills among middle
  managers
• Lack of training for and confusion among
  frontline employees

Decision 14 Does your company use a change
management methodology on all projects to ensure
the highest possible ROI?
McKinsey Quarterly, 2002
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Trend 15 Customer-Centric Brand Experiences
Rule All Decisions

• Brand Experience

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Trend 15 Customer-Centric Brand Experiences
Rule All Decisions

• Brand Experience

Decision 15 What over riding factor is used to
make decisions in your business?
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Trend 16 Plan to Plan, Then Follow the Plan

• Determine Customer Experience
• Determine Who are Your Profitable Customers
• Determine Customer Touch-points
• Create Knowledge Base/Upgrade the Databases
• Test on One Touch-point and Make Changes
• Incorporate Lessons Learned / Pilot on Other
  Touch-points
• Implement on all selected Touch-point
• Collect Feedback and Continuously Improve
• Repeat for the life of your company

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Trend 16 Plan to Plan, Then Follow the Plan

• Determine Customer Experience
• Determine Who are Your Profitable Customers
• Determine Customer Touch-points
• Create Knowledge Base/Upgrade the Databases
• Test on One Touch-point and Make Changes
• Incorporate Lessons Learned / Pilot on Other
  Touch-points
• Implement on all selected Touch-point
• Collect Feedback and Continuously Improve
• Repeat for the life of your company

Decision 16 Does your company have a plan and
use the plan to guide the business to make the
customer experience the 1 priority?
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Great Customer Experiences CreateLoyal
CustomersLoyal Customers Create Brand
EquityBrand Equity Creates Growth, Revenue
and ProfitsAre You On The Path to Create More
Loyal Customers?
The Only Decision Left? Make the Customer
Experience Job 1
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npetouhoff_at_hitachiconsulting.comwww.hitachicons
ulting.com
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