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Customer Engagement Donna Agnew Albuquerque Quality Network April 21, 2016 1 Why this matters Overview and Influences Journey to customer engagement Customer Engagement 2 Definition • Customer engagement (CE) is an effect, a reaction, a connection, a response and/or an experience of customers with one another, with a company or a brand. The initiative for engagement can be either consumer- or company-led and the medium of engagement can be on or offline (Wikipedia) • Customer engagement goes beyond managing the experience at touch points to include all ways companies motivate customers to invest in an ongoing basis with a product or brand. (McKinsey) • The emotional connection between your customers and your company (Gallup) 3 Drivers Age of customer: …the concept that consumers are more empowered than ever because they can access information about products and services over the Internet in real time. 4 Drivers • Technology − 2010 17% US consumers owned a Smartphone − 2015 7/10 consumers use Smartphone to go online for retail 2/3 use in restaurant/coffee shop 43% use while on public transportation − 2016 78% use mobile apps for customer service purposes • Social media: A Social Phenomenon ….3 billion internet users worldwide 71% of online adults use Facebook 23% of online adults use Twitter 26% use Instagram 28% use Pinterest 28% use LinkedIn Internet World Stats, 2016 5 Paradigm Shifts …With Marketing …To, At, For We shape the story and determine how it is shared Consumer Voice Listening posts, surveys, focus groups, focus on channel touch points Dynamic, unmanaged, service and experience touch points, journey over time and multiple interactions Loyalty Marketing and Sales function, limited focus to customer service teams, reactive, defined segments Essential… Social media gives consumer the power to sway the masses Ongoing dialogue Consumer shapes the story Foster online community around product 6 Paradigm Shifts Engagement Experience Satisfaction Engagement 60-70% of customers rated satisfaction as “Good to Very Good” within days of defecting Experience Satisfaction 7 8 Why this matters Loyalty • FULLY ENGAGED customers are emotionally attached and rationally loyal. They'll go out of their way to locate a favored product or service, and they won't accept substitutes. True brand ambassadors, they are a company's most valuable and profitable customers. • ACTIVELY DISENGAGED customers are emotionally detached from a company and its products or services. They will readily switch brands. If switching is difficult or impossible, they may become virulently antagonistic toward the company. Either way, they are always eager to tell others exactly how they feel. (GALLUP) • EMOTIONS – 45,000 consumers in 18 industries – Three E’s of Customer Experience Quality: Ease, Effectiveness, Emotion 17/18 Industries strongest predictor of loyalty = Emotion Forrester Research 9 Why this matters Purchasing Power • 80% of online customers, after reading negative online reviews – alternate purchasing decision (McKinsey) • When American consumers do spend, they're vigilant in making sure they get the best value for their hard-earned money. They research, compare, seek out recommendations, ask questions, and carefully consider their options − Our data reveal that a customer who is fully engaged represents an average 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer. In stark contrast, an actively disengaged customer represents a 13% discount in those same measures (Gallup) • 70% of Americans are willing to spend an average of 13% more with companies who they feel provide above-par customer service ( @WendySLea) 10 Why this matters • Patient Engagement and Activation − Patients who are more actively involved in their health care experience better health outcomes and incur lower costs. − The influence of patient lifestyle and behaviors on health outcome has five times the influence of the efforts of providers or health plans. − 33,163 patients of Fairview Health Services “lowest activation levels had predicted average costs that were 8 percent higher in the base year and 21 percent higher in the first half of the next year than the costs of patients with the highest activation levels” What’s the matter? What matters to you? 11 12 13 The Service-Profit Chain Leadership Practices Employee Experience Customer Experience Employee Productivity People Practices • Workplace design • Job Design • Employee selection and development • Employee rewards and recognition • Tools for servicing customers Employee Retention • Engagement • Climate Customer Satisfaction Customer Loyalty Revenue and Profitability • Leadership expectations • Leadership development • Consistently valuable experience Adapted from “Putting the Service Profit Chain to Work” - HBR 14 “Companies are more likely to think about and evaluate customer satisfaction in terms of static touchpoints, instead of comprehensive experiences. They are more likely to structure customer strategies within channels rather than across them. And, they are more apt to have management systems that focus on individual interaction metrics rather than journeys across interactions.” “From Moments to Journeys: A Paradigm Shift in Customer Experience Excellence”. McKinsey Report, April 2013 15 This problem is far more severe than most companies care to admit, and it can be a difficult problem to spot because customer journeys are cross-functional, whereas companies are siloed into different units and functions. And Customer Journeys span periods of time, while companies often design their services to deliver day-to-day results. 16 Touchpoints • Wikipedia: Touchpoint is business jargon for any encounter where customers and business engage to exchange information, provide service, or handle transactions • A touchpoint is defined as, all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organization. (iMedia) • Marketing Touchpoints: Focus on channels • Customer Centric Touchpoints: Focus on customer journey through the eyes of the customer 17 18 Customer Experience Journey Map “…documents that visually illustrate customers' processes, needs, perceptions and emotions throughout their relationships with a company” 19 Persona: Trudy, 67 y/o female with acute onset respiratory distress Goal: Hospital stay that is safe, hassle free and coordinated 20 21 Emotionally Savvy Organization • Strategy: Use emotion as a primary differentiator − How do you want the customer to feel about your brand? • Customer Understanding − Multilayered emotions that customers bring to an interaction • Design − Small moments have a big impact; prototype and iterate with customers…across the journey; interact in the context of their lives! • Governance − Consistency in how the experience vision is delivered/managed • Measurement − Empathy, positive comments by customers in service call, NLP. Speech analytics, facial emotion analysis ….across the journey • Culture − Hire emotionally intelligent employees, employee surveys to validate alignment to accountability for engagement 22 Customer Experience DESIGN THE EXPERIENCE DELIVER THE EXPERIENCE • Vision and Strategy • Engaged workforce • Understand your customer − Segments, personas − Emotional expectations and • • • • reactions Identify all touchpoints in context of total journey Determine ‘moments that matter” – critical few Observe, listen, interact, engage in co-design Develop visual representations − Hiring, training, hearts engaged − Everyone “owns” the experience • Structure/manage touchpoints − Actively share feedback and data/analytics with workforce − Create standards for customer interactions/service − Utilize technology for re-engaging the disengaged • Measure impact/results • Rapid cycles of improvement − Customer Journey Maps • Test with customer • Communicate…share…engage 23 • CTM Visionary: …”You have developed a system of two-way communication that encourages ongoing and honest feedback from both customers and employees. Based on customer and staff input, you have established touchpoint standards and manage to those standards. Your customers consistently experience excellence in every touchpoint they encounter. Outstanding talent is clamoring to work for you and your competitors covet your employees. You are able to charge a premium for your products or services, and your corporate leaders are invited to speak about the customer-centricity of your organization. Happy to share your CTM story, you know that your success is based on an ingrained culture of relentlessly looking for better ways of understanding, improving and measuring your customer touchpoints in order to strengthen your position as a customer service leader, and to further distance yourself from your competitors.” http://www.imediaconnection.com 24 25