Rawlins Consulting CANTO Marketing Forum July 2015
2nd Annual CANTO Marketing Forum Miami, Florida July 30th - 31st, 2015
RAWLINGS
Consultants
“Connecting People, Processes and Strategies”
Why are we talking about customer experience? “I love improving the customer experience. I teach our staff to be really anally retentive in that regard - it's just so important”
“We’re not competitor obsessed, we’re customer obsessed. We start with what the customer needs and we work backwards.”
- Jeff Bezos, Amazon TELCO Companies: Same suppliers, same handsets, similar tariffs, SO HOW DO YOU DIFFERENTIATE? RAWLINGS Consultants
2
Agenda • What is a Customer Journey? • Global Lessons Learnt 1. Brand positioning needs to be clear before embarking on the program 2. It is more than just a ‘touch point’ experience 3. Multi-functional team has to be operating on a permanent basis 4. Major change management program: C-level sponsorship is required
• Case Studies • Q&A
RAWLINGS Consultants
3
The customer journey is an outside-in view 1 Discovery (multiple channels)
2 Shopping (multiple channels)
3 Ready to use/ Installat ion
4 Seeking help (multiple channels)
5
6
Payment (multiple channels)
Rewarded for loyalty
7 Leaving, inactive, Renew
• Outside in-view • Defined by key sub-journeys during the customer lifetime • Across multiple channels and functions • Defining ‘pain points’ is crucial • Loyal customers (unlike unhappy customers) are cheaper to serve
Note: This represents an overall journey that needs to be broken into sub-journeys
c Rawlings Consultants
Designing the journey involves 4 steps – We recommend asking 1 key question at each stage Stage 1 PROMISE Designing Customer Promise
Stage 2 EXPERIENCE Designing Customer Experience
Stage 3 TRANSFORM
Stage 4 SUSTAIN
Transform the Organization
Embed and Monitor
c Rawlings Consultants PETS Framework
Are you willing to invest time and effort in your brand promise, i.e. What do you want to be famous for?
Do the politics in your organization allow for redesigning performance metrics and reward systems?
Is your management and the organization ready for a major change program?
Can the new mindset and structure be integrated into the company DNA?
REMEMBER: The objective is to EMPOWER your employees. They are the ones who should run the program, the consultants are just there to act as CATALYSTS
Lesson Learnt 1: Brand Value has to be crystal clear and well communicated “What do you want to be famous for” “We will never die”
“World’s greatest bank (it is a state of mind)”
“Think different”
“Earth’s most customer-centric company” What are you famous for or what would you like to be famous for? RAWLINGS Consultants
6
Lesson Learnt 1: If this is not resolved early on the virtuous cycle will most likely break down What customer promise does the brand offer?
What will be the feedback that strengthens the brand promise?
How will this promise impact the metrics and drivers of customer experience?
What do the employees believe in to enable them better serve customers?
How will the customer expectations be shaped?
Many companies skip the ‘brand promise’ and go straight to designing best-in-class metrics. Even if customers are happy, employees will not be and in turn will impact customer satisfaction RAWLINGS Consultants
7
Lesson Learnt 2: Customer experience has to be designed horizontally and not vertically 1
2
Discovery (multiple channels)
Shopping (multiple channels)
•
• •
•
Agent/ website sells and then forgets CSAT high Customer oversight broken from one channel to another Customer unhappy
3
4
Ready to use/ Installation
Seeking help (multiple channels)
•
• •
•
5 Payment (multiple channels)
6 Rewarded for loyalty
7 Leaving, inactive, Renew
Onpremise service excellent CSAT high Journey broken as customer moves from one channel to another Customer unhappy
CSAT scores address the touch point satisfaction but not the underlying root cause RAWLINGS Consultants
8
Lesson Learnt 2: Customer thinks in terms of multiple sub-journeys not so much in touch points • We are joining (on-boarding) • We need to upgrade (more channels, more minutes) • We need technical help • We have a problem with the bill • We need to return, exchange, upgrade (handset)
• We are moving (address) • We are leaving
RAWLINGS Consultants
9
Lesson Learnt 2: Focusing on touch points metrics can distort the picture CSAT
Illustrative Customer Care/Call Center - AHT, FCR, etc.
80%
Technical Service - Call to set up appointment, etc. 60%
“We need technical help” Sub-journey
20% 10%
Days 1
3
5 RAWLINGS Consultants
10 10
Lesson Learnt 2: Integrated customer experience has a direct impact on top and bottom line Parameters % Improvement
Ad hoc ‘touch point’ initiatives
Integrated initiatives
Monthly Churn
10%-15%
20%-33%
Market Share
0%-1%
3%-8%
Customer Satisfaction
20-25% (touch point CSAT); 0% (overall)
20-25% (overall)
Employee Satisfaction
5%
15-20%
Cost to Serve (OPEX)
0-3%
15-20%
Time to achieve results
6 months- 1 year
2-3 years
RAWLINGS Consultants
11
Lesson Learnt 3: A cross functional team (and back end integration) is imperative Sales
Marketing
Product
Network
Customer Care
Back OfficeBilling, etc. We are joining
We need technical help
Note: Other departments could include logistics, field force, etc. RAWLINGS Consultants
Normally included 12
Lesson Learnt 3: An example of how a client manages customer journeys CEO Journey 1 Team Leader Head Touch Point 1
Head Touch Point 2
• Residing next to the CEO’s office at least for the first 3 years • Siloed Senior Managers appointed Journey Managers • But functional experts still played an important role
Head Touch Point 3
RAWLINGS Consultants
13
Lesson Learnt 4: Without C-level sponsorship the initiative is unlikely to be successful - A major cross functional effort - People have to be transferred/ reassigned
A Major Change Program
- Major retraining - Cultural change
Who has the power to approve and sponsor such a project: CEO or CFO or Board of Directors?
- New KPIs - New incentive systems
RAWLINGS Consultants
14
We recommend benchmarking the following sectors: To understand the good, the bad and the ugly • • • • •
Retail/Beauty Internet Retail Airlines Automotive retail Resort Hotels: multiple services, multiple touch points and multiple journeys • Other Services, e.g. car rental, insurance
RAWLINGS Consultants
15
Case Study 1: Using customer experience as a regional differentiating factor Client
Middle Eastern Mobile Operator
Problem
The Mobile Operator aspired to become a major regional player and use customer experience as a key differentiating factor in all of its markets
Proposal
HQ would have a “TIGER TEAM” that would help the Operating Companies design and implement Customer Experience initiatives. This Tiger Team would act as catalyst mobilizing the local companies into launching initiatives .
Deliverables
Using the RAWLINGS PETS framework: 1. Understand, redesign brand promise 2. Design new KPI dashboard and customer sub journeys 3. Launch initiatives to implement the program 4. Implement specific actions
Key Challenges
Lack of buy-in from some OPCO CEOs Internal
resistance to change
Reluctance to include in annual
Key Lessons Learnt
1. 2.
planning cycle
CEO buy-in is critical to ensure end-to-end customer experience Initiative must have SMART goals (integrated into the annual planning cycle) RAWLINGS Consultants
16
Case Study 2: Improving the customer experience ahead of mobile competition Client
Caribbean Mobile Operator
Problem
Incumbent Caribbean Mobile Operator facing competition from an aggressive new entrant which had managed to achieve between 35% and 85% market share within 12 months in other regional markets.
Proposal
Establish a “Mobile War Room” as THE focal point for examining operational readiness to successfully compete with the new entrant. The examination should include all functions (marketing, sales, network, billing, etc.) necessary to deliver a Customer Experience comparable or superior to that offered by the new mobile competitor.
Deliverables
Operational readiness assessment across all customer touch points based on a comparison (“gap analysis”) of customer expectations, competitor best practices and own baseline. Action plan to close the gap by assigning work stream priorities to the cross-functional “Mobile War Room” team.
Key Challenges
Little involvement from top management Intransparent
team member selection process and competing priorities (MWR/BAU)
No clear budget/time
Key Lessons Learnt
(sponsors/steering group)
allocation plus uncertainty about key milestones (market entry)
Sustainable market differentiation must ultimately be based on customer expectations, not just on competitor benchmarks – and become embedded in the brand values RAWLINGS Consultants
17
Any questions?
Sunny Dogra Managing Director
Ulrich Reinecker Associate Principal
[email protected]
[email protected]
www.rawlingsconsultants.com
RAWLINGS Consultants
18
RAWLINGS
Consultants
“Connecting People, Processes and Strategies”
Why are we talking about customer experience? “I love improving the customer experience. I teach our staff to be really anally retentive in that regard - it's just so important”
“We’re not competitor obsessed, we’re customer obsessed. We start with what the customer needs and we work backwards.”
- Jeff Bezos, Amazon TELCO Companies: Same suppliers, same handsets, similar tariffs, SO HOW DO YOU DIFFERENTIATE? RAWLINGS Consultants
2
Agenda • What is a Customer Journey? • Global Lessons Learnt 1. Brand positioning needs to be clear before embarking on the program 2. It is more than just a ‘touch point’ experience 3. Multi-functional team has to be operating on a permanent basis 4. Major change management program: C-level sponsorship is required
• Case Studies • Q&A
RAWLINGS Consultants
3
The customer journey is an outside-in view 1 Discovery (multiple channels)
2 Shopping (multiple channels)
3 Ready to use/ Installat ion
4 Seeking help (multiple channels)
5
6
Payment (multiple channels)
Rewarded for loyalty
7 Leaving, inactive, Renew
• Outside in-view • Defined by key sub-journeys during the customer lifetime • Across multiple channels and functions • Defining ‘pain points’ is crucial • Loyal customers (unlike unhappy customers) are cheaper to serve
Note: This represents an overall journey that needs to be broken into sub-journeys
c Rawlings Consultants
Designing the journey involves 4 steps – We recommend asking 1 key question at each stage Stage 1 PROMISE Designing Customer Promise
Stage 2 EXPERIENCE Designing Customer Experience
Stage 3 TRANSFORM
Stage 4 SUSTAIN
Transform the Organization
Embed and Monitor
c Rawlings Consultants PETS Framework
Are you willing to invest time and effort in your brand promise, i.e. What do you want to be famous for?
Do the politics in your organization allow for redesigning performance metrics and reward systems?
Is your management and the organization ready for a major change program?
Can the new mindset and structure be integrated into the company DNA?
REMEMBER: The objective is to EMPOWER your employees. They are the ones who should run the program, the consultants are just there to act as CATALYSTS
Lesson Learnt 1: Brand Value has to be crystal clear and well communicated “What do you want to be famous for” “We will never die”
“World’s greatest bank (it is a state of mind)”
“Think different”
“Earth’s most customer-centric company” What are you famous for or what would you like to be famous for? RAWLINGS Consultants
6
Lesson Learnt 1: If this is not resolved early on the virtuous cycle will most likely break down What customer promise does the brand offer?
What will be the feedback that strengthens the brand promise?
How will this promise impact the metrics and drivers of customer experience?
What do the employees believe in to enable them better serve customers?
How will the customer expectations be shaped?
Many companies skip the ‘brand promise’ and go straight to designing best-in-class metrics. Even if customers are happy, employees will not be and in turn will impact customer satisfaction RAWLINGS Consultants
7
Lesson Learnt 2: Customer experience has to be designed horizontally and not vertically 1
2
Discovery (multiple channels)
Shopping (multiple channels)
•
• •
•
Agent/ website sells and then forgets CSAT high Customer oversight broken from one channel to another Customer unhappy
3
4
Ready to use/ Installation
Seeking help (multiple channels)
•
• •
•
5 Payment (multiple channels)
6 Rewarded for loyalty
7 Leaving, inactive, Renew
Onpremise service excellent CSAT high Journey broken as customer moves from one channel to another Customer unhappy
CSAT scores address the touch point satisfaction but not the underlying root cause RAWLINGS Consultants
8
Lesson Learnt 2: Customer thinks in terms of multiple sub-journeys not so much in touch points • We are joining (on-boarding) • We need to upgrade (more channels, more minutes) • We need technical help • We have a problem with the bill • We need to return, exchange, upgrade (handset)
• We are moving (address) • We are leaving
RAWLINGS Consultants
9
Lesson Learnt 2: Focusing on touch points metrics can distort the picture CSAT
Illustrative Customer Care/Call Center - AHT, FCR, etc.
80%
Technical Service - Call to set up appointment, etc. 60%
“We need technical help” Sub-journey
20% 10%
Days 1
3
5 RAWLINGS Consultants
10 10
Lesson Learnt 2: Integrated customer experience has a direct impact on top and bottom line Parameters % Improvement
Ad hoc ‘touch point’ initiatives
Integrated initiatives
Monthly Churn
10%-15%
20%-33%
Market Share
0%-1%
3%-8%
Customer Satisfaction
20-25% (touch point CSAT); 0% (overall)
20-25% (overall)
Employee Satisfaction
5%
15-20%
Cost to Serve (OPEX)
0-3%
15-20%
Time to achieve results
6 months- 1 year
2-3 years
RAWLINGS Consultants
11
Lesson Learnt 3: A cross functional team (and back end integration) is imperative Sales
Marketing
Product
Network
Customer Care
Back OfficeBilling, etc. We are joining
We need technical help
Note: Other departments could include logistics, field force, etc. RAWLINGS Consultants
Normally included 12
Lesson Learnt 3: An example of how a client manages customer journeys CEO Journey 1 Team Leader Head Touch Point 1
Head Touch Point 2
• Residing next to the CEO’s office at least for the first 3 years • Siloed Senior Managers appointed Journey Managers • But functional experts still played an important role
Head Touch Point 3
RAWLINGS Consultants
13
Lesson Learnt 4: Without C-level sponsorship the initiative is unlikely to be successful - A major cross functional effort - People have to be transferred/ reassigned
A Major Change Program
- Major retraining - Cultural change
Who has the power to approve and sponsor such a project: CEO or CFO or Board of Directors?
- New KPIs - New incentive systems
RAWLINGS Consultants
14
We recommend benchmarking the following sectors: To understand the good, the bad and the ugly • • • • •
Retail/Beauty Internet Retail Airlines Automotive retail Resort Hotels: multiple services, multiple touch points and multiple journeys • Other Services, e.g. car rental, insurance
RAWLINGS Consultants
15
Case Study 1: Using customer experience as a regional differentiating factor Client
Middle Eastern Mobile Operator
Problem
The Mobile Operator aspired to become a major regional player and use customer experience as a key differentiating factor in all of its markets
Proposal
HQ would have a “TIGER TEAM” that would help the Operating Companies design and implement Customer Experience initiatives. This Tiger Team would act as catalyst mobilizing the local companies into launching initiatives .
Deliverables
Using the RAWLINGS PETS framework: 1. Understand, redesign brand promise 2. Design new KPI dashboard and customer sub journeys 3. Launch initiatives to implement the program 4. Implement specific actions
Key Challenges
Lack of buy-in from some OPCO CEOs Internal
resistance to change
Reluctance to include in annual
Key Lessons Learnt
1. 2.
planning cycle
CEO buy-in is critical to ensure end-to-end customer experience Initiative must have SMART goals (integrated into the annual planning cycle) RAWLINGS Consultants
16
Case Study 2: Improving the customer experience ahead of mobile competition Client
Caribbean Mobile Operator
Problem
Incumbent Caribbean Mobile Operator facing competition from an aggressive new entrant which had managed to achieve between 35% and 85% market share within 12 months in other regional markets.
Proposal
Establish a “Mobile War Room” as THE focal point for examining operational readiness to successfully compete with the new entrant. The examination should include all functions (marketing, sales, network, billing, etc.) necessary to deliver a Customer Experience comparable or superior to that offered by the new mobile competitor.
Deliverables
Operational readiness assessment across all customer touch points based on a comparison (“gap analysis”) of customer expectations, competitor best practices and own baseline. Action plan to close the gap by assigning work stream priorities to the cross-functional “Mobile War Room” team.
Key Challenges
Little involvement from top management Intransparent
team member selection process and competing priorities (MWR/BAU)
No clear budget/time
Key Lessons Learnt
(sponsors/steering group)
allocation plus uncertainty about key milestones (market entry)
Sustainable market differentiation must ultimately be based on customer expectations, not just on competitor benchmarks – and become embedded in the brand values RAWLINGS Consultants
17
Any questions?
Sunny Dogra Managing Director
Ulrich Reinecker Associate Principal
[email protected]
[email protected]
www.rawlingsconsultants.com
RAWLINGS Consultants
18
