Download Customer engagement - Albuquerque Quality Network

Customer Engagement
Donna Agnew
Albuquerque Quality Network
April 21, 2016
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Why this
matters
Overview
and
Influences
Journey to
customer
engagement
Customer
Engagement
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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)
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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.
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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
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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
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Paradigm Shifts
Engagement
Experience
Satisfaction
Engagement
60-70% of
customers rated
satisfaction as
“Good to Very
Good” within days
of defecting
Experience
Satisfaction
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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
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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)
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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?
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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
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“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
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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.
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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
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Customer Experience Journey Map
“…documents that visually illustrate
customers' processes, needs, perceptions
and emotions throughout their relationships
with a company”
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Persona: Trudy, 67 y/o female with acute onset
respiratory distress
Goal: Hospital stay that is safe, hassle free and
coordinated
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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
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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
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• 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
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