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Tagged: customer experience management

Customer Satisfaction: What are the right KPIs to measure?

October 4, 2017

 

 

Guest-blogger Andrew Huber of Harland Clarke discusses 7 rules to follow in determining the right KPIs to measure in customer satisfaction.

 

It’s widely accepted that there can be tremendous value for businesses that rely on key performance indicators (KPIs) to measure, manage and communicate organization results.  KPIs are a valuable tool to tell you if you’re on the right course toward meeting your strategic objectives, or if you need to make adjustments to get back on track.

But one of the key questions that managers grapple with is determining which key performance indicators (KPIs) to measure, and how to deploy them successfully over time. This is especially true when it comes to the measurement of customer satisfaction.

Why determining customer service KPIs can be tricky

Focusing on the wrong KPIs means you’re spending time and money measuring, monitoring and trying to improve metrics that aren’t critical to your financial institution’s objectives. The same is true of poorly structured KPIs, or KPIs that are too difficult and costly to obtain, or to monitor on a regular basis.

Select too many, and you’ll be overloaded with endless pages of data too extensive to be effectively managed or used to improve customer satisfaction.

To avoid common headaches that occur when trying to determine which KPIs to measure, it’s best to adhere to the following 7 rules:

  • Each KPI has its own applicability, and limitations. Each can stand on its own as a useful tool for measuring certain customer interactions, but a comprehensive measurement model is necessary to give a complete picture of account holder experience.
  • Determine what KPIs to measure based on the key drivers that your account holders consider important. Just because something is measurable doesn’t make if meaningful in the context of your account holder’s expectations.
  • Define KPIs accurately and clearly, ensuring that the aspect of the customer experience being addressed is both quantifiable and measurable.
  • KPIs should link back to a customer satisfaction objective and measure something you can impact.
  • Ensure that KPIs deliver comprehensive, actionable insight that is linked to and applied to particular employee interactions or processes on an on-going basis.
  • Focus on trends in your KPIs more than specific data. The direction of change usually matters most.
  • Reviewing on a quarterly or annual basis can provide both positive and challenging insights.[1]

 

Identifying the key drivers of customer satisfaction for your specific account holder base and aligning them with these – or other – metrics that align with your objectives can be the start of a successful KPI program.  Successfully applying the insights you derive from your KPIs can improve key drivers, leading to greater customer satisfaction, stronger brand loyalty and, ultimately, better performance.

But Don’t Get Too Set in Your Ways

KPIs should not be set in stone, but rather evaluated consistently over time and modified where necessary. Revisit your assumptions. Financial institution goals and objectives change, as do those for customer experience. Don’t continue to use KPIs that are no longer meaningful or useful.

While there are an infinite number of metrics that can be used to build KPIs around customer satisfaction, there are several that have gained wide acceptance across industries for providing valuable insight.

Examples include: the Net Promoter Score (NPS), the Customer Satisfaction Score, the Customer Effort Score and Forrester’s Customer Experience Index.

One size doesn’t fit all. When it comes to selecting the right key performance indicators (KPIs) for measuring customer experience, it’s important that the KPIs you use provide valuable customer insights aligned with the goals of your financial institution, not your competitor down the street.

If a metric isn’t key to you, it’s not a “key” performance indicator.  Select KPIs that are relevant for your industry, and, just as importantly, for your organization.

[1] Patterson, Matthew. “How Top Customer Service Teams Measure Performance,” Help Scout, April 16, 2016

How to Create a Successful Customer Experience Strategy

September 8, 2017

 

 

CSP is happy to have guest-blogger, Andrew Huber of Harland Clarke return this month and share his insights on creating a customer experience strategy that is successful.

 

“How are we doing?”

This question is at the foundation of any organization’s quest for continuous improvement. For banks and credit unions, the answer encompasses more than an institution’s financial statements.

In customer-centric organizations, the role of customer feedback is critical to sustaining and deepening account holder relationships, and contributing to long-term profitability.

But, are we there yet?

While many financial institutions say they want to improve the customer experience, are they taking the necessary steps to get there?  A true voice of the customer strategy is a multi-faceted process whose focus is to understand the customer experience via actionable data and analysis on multiple levels.

Below are three important things to keep in mind if your financial institution desires a truly comprehensive customer survey experience.

3 Considerations for Creating a Useful Voice of the Customer Strategy

#1 – Consider All Customer Experience Touchpoints

First comes the design and deployment of surveys using a variety of methodologies. The focus is on gathering, measuring and interpreting customer experience feedback at every touchpoint, from new account openings in the branch to the call center and online channels. Every customer experience touchpoint must be considered, in order for your business to plan for it.

#2 – Ensure You’re Gathering the Right Data

Surveys are just the start.

One of the keys to a successful customer experience program lies in the data accumulated from everything that’s happened to this point. The data gathered needs to be both actionable and all-inclusive. In other words, it needs to include real-time knowledge across significant customer satisfaction metrics that can be applied directly to specific operational and frontline areas that impact the account holder experience. Measuring net promoter score may only scratch the surface of what your financial institution would like to learn.

Learn important satisfaction metrics to measure outside of net promoter score in the white paper, “Customer Experience: Beyond Net Promoter Score.”

Download Your Copy Here.

#3 – Figure Out (in Advance) How You’ll Analyze the Data

While the core value that such a program can provide shouldn’t be underestimated, there can also be a thin line between a comprehensive service that yields insightful customer understanding and one with reams of survey data but little customer insight that can be used to directly affect bottom line performance.

This is why it’s important to answer these questions in advance of implementing your survey strategy: once you’ve gathered the data, then what? Who will mine the data for actionable insights?

If you don’t have a data scientist on staff, consider outsourcing to a third-party.

In today’s customer-focused world, dissecting and analyzing the customer experience can provide key insight that banks and credit unions can use to ensure they are truly putting the customer first. This mindset paves the way for multiple benefits including:

  • Improved customer satisfaction
  • Greater loyalty and retention
  • Better performance

What Does Customer Experience Mean For Financial Institutions?

August 2, 2017

 

 

CSP is happy to have guest-blogger, Andrew Huber, Program Manager at Harland Clarke, share his insights about customer experience (CX) and the need for financial institutions to deliver outstanding service at every touchpoint.

 

 

You likely know that the key to any strong, long-lasting business is delivering an exceptional customer experience (CX).

Unfortunately, when it comes to financial institutions, there can be a big disconnect between the experience they think they’re providing vs. the experience account holders are receiving. For instance, 41 percent of banks and credit unions consider themselves “relationship focused,” while just 13 percent of consumers say the same.

So how can financial institutions stay competitive and deliver an outstanding CX? Especially when, in the age of mobile devices and social media, everyone wants something tailored just for them?

The answer is surprisingly simple (and yet incredibly difficult) – financial institutions must deliver outstanding service at every touchpoint in the customer experience, from in-branch to call center and from online to mobile device.

This white paper reveals that account holders remain loyal to their financial institutions for five main reasons:

  • They were treated well
  • They experienced good communication
  • They received high quality advice
  • Their problems were resolved quickly
  • They had a personal relationship with at least one financial institution employee

Financial institutions have a strong incentive to keep account holders happy: increasing customer retention just 5 percent can show a 25-95 percent increase in profits. This is because acquiring a new customer is anywhere from 5-25 times more expensive than keeping an existing one, with customers having a positive experience spending 140 times more than ones who have a bad experience.

If you think about it, this makes perfect sense. Regardless of the context, people are loyal to who and what makes them happy, they’re more willing to recommend the source of their happiness, and they’re likely to want more from this source. Their financial institutions are no exception.

Creating a positive CX sounds easy enough, but these statistics only convey the benefits, not how crucial it is to get customer experience right.

In one study, 41 percent of account openers and 33 percent of account closers cited customer experience as the number one reason for making their decision, outranking competitive interest rates, low fees and location.

It can take years to build a positive customer experience, but a single negative experience, a single episode of poor customer service, or a single complaint that goes unaddressed can cost a financial institution an account holder — or more, thanks to the power of social media.

CX Best Practices
Want to ensure your financial institution is prepared to deliver an outstanding CX? Find eight best practices to implement in this white paper, “Customer Experience: Best Practices for Growing Revenue.”

> Download your copy here

 

4 Questions to Ask When Appealing to Millennial Customers

April 10, 2017

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials are taking over the world—literally. As of April 2016, Millennials have edged out Baby Boomers as the largest generation in America. That means Millennials are a driving force behind modern evolutions in customer experience.

The largest, most diverse, most educated generation of Americans to date have incredible spending power. Their familiarity with and reliance on technology defines the Millennial experience and means major changes for businesses and brands looking to court their loyalty.

So how can you become a favorite among Millennial customers?

Millennials still want reliability, friendliness, responsiveness, and quality – they just want even more of it than previous generations were satisfied to have.

No generation before has seen such a rapid progression and diversification of technology. While older Millennials still remember the dial-up days, the younger set are coming of age in a time of ubiquitous and instant availability of favorite resources and channels. Millennials see technology as a lifestyle, not a toolbox.  

If you’re looking to strengthen your appeal to Millennials, your business should embrace a similar mindset. Your business already uses technology to communicate quickly and efficiently. The next step is to embrace the wide variety of apps, devices, and networks that make your brand easy to access and share. The following questions are a good way to gauge if your business is ready to attract Millennial consumers.

IS IT FAST?

Millennials know what they want, and they want it now. Influenced by their always-available, multi-tasking, multi-device lifestyles, their attention span is rather short. Millennials have little patience for clumsy user interfaces or apps that struggle to load. They don’t want to wait for answers! They make decisions quickly and will gravitate to businesses that help them accelerate their progress.

IS IT SOCIAL?

Millennials are always connected to the Internet and therefore, always connected to each other. Businesses quickly realized that the key to engaging Millennial markets is to connect via social media.

Millennials begrudgingly accept the presence of brands and businesses in their social networks, but they expect businesses to behave socially. Personal interactions with businesses make them feel heard and valued.

Rather than picking up a phone, Millennials favor direct Tweets, Yelp reviews, and Facebook posts to describe their experience with a business. An active social media presence demonstrates your business’ willingness to personally connect with customers and keeps your brand fresh in someone’s news feed. 

IS IT MEANINGFUL?

Millennials maintain a heightened awareness of social issues and causes. They’re not interested in money for the sake of money—they want their dollar to mean something when they spend it. Consequently, businesses that include an element of social justice in their work are more likely to successfully engage Millennials.

IS IT AUTONOMOUS?

Millennials are self-starters. They want to feel empowered by their business interactions. Many customer experience disruptions come from Millennials as they initiated their own startups to fill niches not served by the existing market. They’re not content to say: “This is the way things have always been done.” 

This generation saw the birth of “crowdsourcing and online reviews as a significant influencer on purchasing decisions. Conversely, Millennials also value the availability of self-service options, especially those that get them to their destination faster by cutting out the middleman. They’re not opposed to picking up the phone or having a face-to-face customer service interaction, but it’s usually not their first choice. In fact, they may snub a business that doesn’t give them enough opportunity to help themselves.  

Brands Millennials Love

Venmo and other P2P (person to person) payment apps are a recent example of the way Millennials prefer to handle their finances. Venmo provides a slick, no-hassle interface, connects users directly to social networks, and is completely autonomous. Venmo has also partnered with GiveDirectly to make it easier than ever for users to donate to their favorite charity. 

TOMS Shoes is another good example of a brand that successfully engages Millennial markets. Their “One for One” campaign elevated an ordinary purchase of new shoes to an act of goodwill. TOMS also has a strong social media presence. They encourage customers to share stories and make them feel like they’re a part of the TOMS mission to improve the lives of others. 

 

These new insights into Millennial habits in combination with your own Voice of the Customer research will create a customer experience tailored to Millennial demands. In Part Two of this series, we review the areas of the experience to prioritize and provide examples of specific actions to take and offerings to consider when engaging this desirable demographic.

Left Brain, Right Brain: Aligning Internal Culture and Customer Analytics

August 5, 2016

A version of this post was featured by influential Customer Experience speaker and teacher Shep Hyken as a guest blog in August 2016. See it here.

Data inspires confidence because it serves as a rational, objective bottom line that provides order and structure to the customer experience. It appeals to the logical, pattern-oriented left brain, involved in making decisions that shape the customer experience. But customer analytics have more to tell you than scores alone. By reading between the lines, the shape of your company’s internal culture can emerge.

billiard balls in alignment, representing alignment of a company's internal cultureWhy is internal culture relevant?

Think of data as representing the ongoing feedback loop between a company’s internal culture and its customers. This loop runs smoothly when the culture is well aligned with the customers’ needs, wants, and expectations. A productive, motivated, well-informed staff produces satisfied customers, and vice versa.

If the culture is misaligned, though – if priorities are skewed, if there is distrust between leadership and employees, if there are significant obstacles to cooperation across departments, if employees don’t feel valued and morale is low – the impact on customer service is direct and immediate. Inefficient processes, gaps in information and communication, and employees who are just ‘going through the motions’ are all symptoms of a unhealthy internal culture that needs attention.

Customers tend not to tolerate these symptoms for long. Remember, a single negative interaction with your business can sour a customer’s opinion and undo a long history of positive interactions in a matter of minutes. Studies have shown that negative experiences have more staying power than positive ones; not only are people more likely to remember them, they are more likely to tell others about them, too. Social media has given customers a megaphone for complaints that they might otherwise just have grumbled about under their breath.

If data represents the left brain, culture represents the right brain.

Together, these elements form the foundation of customer experience management.

Customer analytics, used appropriately, can be the healing salve for a broken internal culture. By examining the trends, gaps, and other insights captured within the data, all employees, from upper management down to the individual customer service representatives, get a clear sense of the goals they are working toward as a team and what they can do to affect positive change.

This requires a degree of transparency between those who have access to the data and who make decisions, and those who carry out those decisions in their daily interactions with customers. A stern top-down directive given without context or reason is easily ignored or deprioritized, while one that is presented as a productive initiative backed by solid information is more motivating and harder to argue with.

Of course, transparency must go both ways if the staff is to work as a team. Employees at all levels of the company should feel empowered to ask questions, make suggestions, or otherwise participate in the shaping of the culture, and not just be beholden to policies. By valuing the voice of your employees, especially those who are in the position to directly interact with customers, you create an internal culture that nourishes the customer experience – and the data is bound to reflect that.

As a right-brain, intuitive element of the customer experience, cultural alignment can be felt as much as observed. Take this opportunity to do a “gut check” about the culture in your office and within the enterprise as a whole. Do you notice any symptoms? Have they emerged recently, or have they persisted, unattended, for some time? Do you feel empowered to do anything about them?

And remember, whether you need a complete diagnosis, a check-up, or an emergency treatment, CSP is always on call.

Are CMOs Ready to Take Responsibility for the Customer Experience?

June 22, 2016

Should Chief Marketing Officers be customer experience experts? Looking at the increasing trend of CMOs becoming the chief managers of customer experience (or CX) for their brands, the answer is a resounding yes.

According to a recent Gartner study, a considerable number of CMOs say the most-increased expectation their CEOs have of them, is that they lead customer experience. A corroborating report by Salesforce ExactTarget Marketing Cloud and Deloitte, titled Bridging the Digital Divide: How CMOs Can Rise to Meet Five Expanding Expectations,” names customer acquisition, personal experiences and customer engagement as the top three external marketing priorities of a CMO. Sanjay Dholakia, CMO at Marketo, even goes so far as to say that by 2020, CMOs will have become responsible for the entire customer journey.

While CX may not traditionally be regarded as a marketing function, new research unequivocally proves it to be not only a decisive factor in brand identity, but also in differentiation within the marketplace. Customer expectations have evolved: a 2015 study found that 42% of Americans would turn away from a branQuote to support CMOs involvement in CXd after just two negative experiences.

Positive customer experiences, on the other hand, not only influence the way a bank is perceived, but also play an active role in retention and repeat business through customer loyalty, and eventually in increased revenue. According to the Gartner study, 89 percent of companies expect to compete mostly on the basis of customer experience in 2016. Whereas the quality of customer service was once seen as a separate, ‘internal’ issue, nowadays it’s an inextricable and decisive factor in a bank’s advertising and marketing strategy.

That said, the question is not whether CMOs should become the stewards of their bank’s CX. The question is: are they up to the task? “It’s a new expectation and it’s a difficult expectation,” says Laura McLellan, VP-Marketing Strategies at Gartner.

When the study asked CMOs about the areas in which they’d made the most progress, customer experience came in last.

Clearly it’s not just customers who are on a journey; a lot of CMOs have journeys of their own ahead of them. Challenges include tying together web, commerce, and mobile technologies to not leave any gaps in quality; centralizing customer data; and providing customers with the best possible interactions with every part of the bank, down to each branch.

This may sound daunting, but like every journey, building up great CX starts with a single step. There is no need for CMOs to reinvent the wheel: the expertise to research customers’ experiences and help enhance them is already at hand. CSP has nearly 30 years of experience with customer satisfaction research and improvement, specializing in financial services. Our seasoned experts and proprietary tools can help you along your individual journey.

One thing is certain: as marketers invest more in improving customer experience, and banks adopt CX as one of their most important strategies for staying ahead of the competition, no CMO can afford to stay behind. In order to be prepared for the future, take the first step now.

What Baby Boomer & Millennial Banking Customers Have in Common

July 30, 2015

Though born decades apart and into very different circumstances, Baby Boomer (born 1946-1964) and Millennial (born 1980-2000) customers show a surprising amount of overlap in their preferences and priorities for the customer experience at their banks.

Baby Boomers are Aging Youthfully

baby-boomer-motorcycle-442244_640

Baby Boomers came of age during the wild 1960s and 70s, and while they might not be able to rock’n’roll all night and party every day anymore, they’re not ready to resign to their rocking chairs just yet.

Here you can begin to see some of the commonalities between Boomers and Millennials. Both generations entered adulthood against the backdrop of oversea war, economic depression, and social unrest. The 2008 recession hit their wallets hard: Boomers watched their retirement funds wither, and Millennials worry if they’ll earn enough to pay off their immense student loans. To varying degrees, both groups know the value of doing more with less and balancing their desire to make purchases against the risks of running out.

It’s Not Just About Retirement

Sure, retirement is a pressing issue for Boomers exiting the workforce and preparing for a new phase of life, but it’s not the only thing they’re doing with their money.

Despite the setbacks of the recession, Baby Boomers earn about 47% of all income in the United States, totaling $4 trillion. [Source] With their adult children leaving home and establishing their own families, instead of settling in, Boomers are active and adventurous. They want to be able to keep up with their grandkids and are using their spending power to catch up with all the dreams they may have put off during their parenting years.

That might mean new car purchases, home renovations or relocations, or even starting a business – all things they’ll be looking to their banks to help them finance and navigate. These products aren’t just the territory of young adults getting established.

As we’ve reported previously, Millennials, too, are entrepreneurial adventurers who tend to value experiences over material goods. So while they may be renting a while longer before they purchase a house and putting off traditional milestones like marriage and child-rearing, they see that as freeing up capital to pursue their dreams while they still have youth on their side.

They’ve also absorbed their parents’ concerns about funding their retirements and, according to the Transamerica Retirement Survey, 74% of Millennials have begun saving for retirement a full 13 years earlier in life than Baby Boomers.

This knowledge should lead banks to carefully consider how and to whom they are promoting their small business, retirement, and home equity products and services.

Linked In with Technology

A major slice of shared territory between these two generations can be found online, and in particular, on mobile.

Millennials and Boomers alike are early adopters of new tech products and are comfortable navigating the world through the lens of their smartphone or tablet. 71% of Boomers bank online at least once per week, and their use of mobile is expected grow exponentially over the next few years.

So by prioritizing a streamlined, personalized, and mobile-optimized experience, banks can satisfy both sets of customers.

Where they differ, though, is in their concern about the security of their financial information. Millennials, who have largely grown up with tech, tend to be more trusting; Boomers are willing to adapt and learn, but remain suspicious about the trustworthiness of devices, networks, and data banks.

61% of Boomers believe the risk of their financial data being compromised will rise within the next three years, compared to 45% of Millennials. [Source] Adults who are not already using online banking options are even more suspicious and unlikely to be converted, no matter how slick the user experience. Nothing will send customers of any age on the hunt for a new bank like finding that their personal information is at risk, for which they unforgivingly hold the institution responsible.

With data breaches making headlines on a regular basis, banks who want to promote their online and mobile services must communicate a strong message of security, not just convenience.

Want to know more about the demands of different demographics within your target market? CSP can deliver all the intelligence you need and offer solutions to meet your specific goals. Contact us today with your questions and concerns.

4 Ways to Engage the Millennial Banking Customer

June 17, 2015

millennial customer engagement

Millennials want businesses to meet them where they are, and that includes their financial institutions. So how does a bank go about satisfying this demanding demographic?

In Part One of this series, we got into Millennials’ heads to see the world through their own lenses. Knowing what they value and prioritize can help you shape the customer experience to meet their ever-evolving expectations.

Appeal to their impatience.

Speed of service, whether online or human-to-human, is a must.

If a customer needs to get in touch with you to ask a question or resolve a problem, he’d rather open up a web chat or send a Tweet than be put on hold with a call center or wait for a response from the Contact Us form on your website. And if he does Tweet you a question, he expects you to answer it as promptly as he expects a friend to reply to his text.

He doesn’t want to be beholden to “business hours,” either – in his world, answers are always a click away, day or night. If 24/7 customer service is not something you can promise, at the very least, he should have the option to find his own answers through the resources you make available to him online, like FAQ pages, blogs and articles, or forums.

He’ll also appreciate a degree of automation to processes that would otherwise be tedious or require multiple steps and the intervention of a human employee. Take, for instance, mobile check deposit, or peer-to-peer payment, two innovations that streamline simple financial interactions into a matter of clicks, no middleman required.

Give them control.

Automation and self-service aren’t just about getting from Point A to Point B as quickly as possible; they allow customers to self-determine their customer journey and customize it to meet their own unique needs, rather than be lumped in with the generalized population of your customer base.

Personalization is important to this highly individualistic customer. Jane Q. Millennial doesn’t just want the Fifth Third experience, she wants Jane’s Fifth Third experience. Each channel she uses, digital or human, should greet her by name and anticipate her needs before she even has to state them.

Millennials personify the omnichannel customer experience. Take advantage of the Voice of the Customer insights and transactional data you’ve collected on them to craft personalized and intuitive experiences.

Participate, and invite participation.

Tap into the Millennial customer’s social side by engaging with him, not just broadcasting to him. We won’t claim that it’s easy, but you’ll have to reconcile traditional customer service language and behavior with his native tongue. Show personality in your communications, demonstrate social values that align with his own, and he’ll find you more approachable than the out-of-the box Customer Service Rep™.

Give him opportunities to engage with you beyond the standard problem/solution model of service. Social media is an excellent platform for conducting (completely non-scientific) surveys or hosting contests. You can blend information and entertainment with things like “Did You Know?” trivia or “Caption This” contests for funny images. The prize might be as simple as public recognition of the winner’s cleverness, but that’s still more than he was likely expecting to get when he logged on today.

Be their entrepreneurial ally.

In the past, banks might have targeted the 18 to 35 demographic with messaging around financing their homes, cars, and children’s college educations. But Millennials are famously delaying typical young-adult milestones like marriage and home ownership in favor of pursuing their dreams, creating the perfect opportunity for financial institutions to step in as allies, coaches, and incubators. Make them aware of both consumer and business products.

Consider hosting workshops for start-ups or the self-employed; offering sponsorships, grant opportunities, or other competitive rewards; or coaching them on career advancement or salary negotiation via your blog (you are blogging, right?). Seek out the places in your community where these young entrepreneurs are gathering, like TED Talks, networking groups, and even street fairs, and make sure you have a visible presence there. Think about it: how cool could it be to have a reputation as THE bank that young self-starters turn to?

While we’re on the topic of business products, consider this: Even if your business customers aren’t run by Millennials, they’re certainly employing them. The person responsible for managing banking interactions at any given business, start-up or established, might be a 28-year-old man or woman, who expects your B2B experience to be as modern, flexible, and streamlined as your consumer-facing experience.

 

So, how does your customer experience measure up against the Millennial mindset? By this point of reading, you’re either patting yourself on the back for a job well done, or you have new insights into potential areas of improvement and innovation.

CSP is passionate about improving the customer experience for customers of all ages. Read about our solutions and services, and contact us when you’re ready to take the next step.

Position Your CEO as a Customer Experience Champion

May 30, 2015

At many businesses, the only time a customer sees or hears from the CEO might be a statement issued to the press, a column in the quarterly newsletter, or in the worst cases, a public scandal for which the company leadership is held accountable.

Otherwise, CEOs, at least from the customer’s perspective, are mythical creatures that operate behind closed doors, where they make the Big Decisions that directly affect their customers.

Customer experience and service have been growing priorities for businesses across many industries in the last decade. Technology – specifically, customer data, social media, and the move towards mobile – has dramatically changed the way businesses and customers interact. This gave rise to the “omnichannel” point-of-view, and that’s the level where most CEOs (and other C-level executives) operate: overseers, analysts, evaluators, strategizers.

But what about champions?

champion of the customerSure, CEOs have a lot to say about the organizational effects and benefits of customer experience management.

  • 97% of executives surveyed in a global study by Oracle say that delivering great customer experiences is essential to their success.
  • In the same study, 81% of executives surveyed say they realize the importance of active social-media processes and culture, although only 65% had actually gone as far as implementing social service and sales.
  • 52% of retail senior executives surveyed by Timetrade stated that the best way to combat showrooming (visiting a store to view an item, but purchasing it later online) is by improving the in-store customer experience.
  • In a 2013 Deloitte survey, 62% of organizations view customer experience provided through contact centers as a competitive differentiator.

But awareness is not advocacy. Simply knowing where the problems and opportunities are, and what could and should be done to improve the experience, does not a champion make.

CEOs must actively argue for, defend, and clear the path for improvements to the customer experience. In the words of Oracle CEO Mark V. Hurd, they must become “customer experience evangelists.”

This means taking internal actions to prioritize the customer experience, such as allocating enough of the budget to invest in voice of the customer strategies, and rallying employees, from the C-Suite down to the individual customer service representatives, around the cause. It also means maintaining a visible public-facing position of customer advocacy – and not just when crisis strikes.

4 CEOs Who Act As Champions

 Jeff Bezos CEO of Amazon Jeff Bezos, Founder and CEO of Amazon
So great is Bezos’ customer championship that you practically can’t talk about customer service or experience without his name coming up. As Amazon grew into the retail giant it is today, so did its influence on customer experience across the entire retail landscape, with Bezos himself on the vanguard. He keeps his email address publicly known and available, and is known for not just reading but forwarding customer complaint emails directly to the members of his team responsible for making a fix (which he expects to happen fast).
Tim Cook, CEO of Apple

Photo by Valery Marchive

Tim Cook, CEO of Apple
Apple wouldn’t be what it is today without its excruciating attention to detail and quality, and Cook has carried that through to his personal involvement in customer service. A perfect example: after a customer e-mailed Cook complaining about the quality of Apple’s music on hold, within 24 hours she got a call from an Apple employee saying Cook had forwarded the email to her and reassuring the customer that the matter would be dealt with. “”I get hundreds, and some days thousands of emails from customers,” Cook has said in prior interviews. “This is a privilege, because they talk to you as if you’re sitting at their kitchen table.”
 John Legere CEO of T-Mobile John Legere, CEO of T-Mobile
By eliminating contract plans and lifting many of the other customer-unfriendly policies common across wireless carriers (like complicated data fee structures and keeping phones ‘locked’ and un-transferrable), Legere made the statement in 2013 that his company was looking out for the customers’ best interests, instead of just protecting tech companies’ grip on the industry. In designing the plans, Legere said he listened to T-Mobile customer service calls every night and had customer complaint emails forwarded to him, as well as making his email address public. “We are going to change the rules,” Legere said. “Not for us … this is about what consumers want and need.”
 Sir Richard Branson Sir Richard Branson, Founder of Virgin
OK, so he’s not a CEO anymore, but Branson might still be one of the world’s most accessible billionaires. Despite his fantastically high profile and net worth, he shakes the unfavorable image of the 1% by remaining in close contact with customers (not just of Virgin, but everywhere). He commands a massive social media following – 2 million on Facebook, 5.6 million on Twitter, nearly 8 million on LinkedIn – and is a regular blogger who frequently advocates for the quality of customer service and relations, and is generous with advice.

 

You might also be interested in these previous posts:

How a Good Customer Experience Trickles Up to Your Employees

May 14, 2015

Employee engagement is a critical component to a satisfying customer experience. Employees who believe in what they’re doing and in the company they’re serving are likely to provide better service, and lead to better relationships with customers and higher satisfaction.

Companies spend millions per year on surveys, programs, and initiatives to support employee engagement. In evaluating this expense, the focus is often on the end results and bottom-line benefits of highly engaged employees:

  • person-621045_640Companies with high engagement see significantly lower absenteeism and turnover than those with low engagement. Those same top performers also showed 22% higher profitability and 10% higher customer ratings. (Gallup, 2012)
  • 91% of highly engaged employees always or almost always try their hardest at work, compared with 67% of disengaged employees (Temkin Group)
  • Engaged companies grow profits up to three times faster than their competitors. (Corporate Leadership Council)

When employees are engaged in the mission of the business and feel they are being treated well, they will put forth more discretionary effort – that is, go above and beyond, stay to finish tasks beyond the end of the workday, and invest more of their talents and energies into helping the company succeed. That investment of discretionary effort is what most employee engagement tools are measuring.

The themes of employee engagement have been the same for years: productivity and the costs of wasted labor, attracting and retaining the top talent in the industry, improving workplace morale and teamwork, and the quality of service to customers. To affect engagement, companies often focus on the benefits and perks they can provide to employees, and a workplace culture that encourages and rewards high-performing workers. It’s an inside-out look at the issue based on the assumption that employee engagement is the source point of positive business outcomes.

But the inverse is also true. Strong business outcomes lead to strong employee engagement.

Businesses charge their employees with carrying forward their vision for customer service and satisfaction, and when they succeed, that positive customer experience trickles back up to the employees, their managers, and even to senior leadership.

Customer service isn’t always easy, fun, or pleasant, but it serves a purpose. And purpose is one of the four key factors to employee engagement, according to a New York Times/Harvard Business Review survey of 12,000 employees in various industries:

Employees who derive meaning and significance from their work were more than three times as likely to stay with their organizations — the highest single impact of any variable in our survey. These employees also reported 1.7 times higher job satisfaction and they were 1.4 times more engaged at work.

A single positive interaction can make a customer’s day, and an overall satisfying experience will increase their likelihood to tell others about your company. The same applies to employees, who are more likely to describe your business as a great place to work and encourage others to apply for a position there, if they’re regularly involved in positive interactions with satisfied customers.

The Takeaway

Serving the customer and striving to improve their experience gives employees a sense of purpose – something we can relate to at CSP, naturally. By investing in the customer experience and integrating the voice of the customer, a company can take advantage of the feedback loop between customers and employees and provide a happier, more productive workplace.