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Customer Experience for Women: What Banks Need to Know

February 12, 2016

How are women involved in their family’s finances? How confident do they feel about their financial know-how? What tools and services do they want their banks to provide to help them manage their money?

These are the kinds of questions financial institutions need to be examining to optimize the customer experience for their female customers. Married or single, mothers or child-free, college-age to retired, women are more empowered when it comes to money than they ever have been.

Here are some interesting findings on the preferences and attitudes of women banking customers (UPDATED February 2017):

Women tend to think of themselves as less capable or knowledgeable when it comes to finances than men do. In one study that used a scale of 1-7 to measure overall financial confidence, men rated themselves at an average of 6.20, while women came in at only 5.86. The numbers continue to drop among women under 50 (5.61) or when specifically addressing the area of investing (4.75).

56% of women said they turn to a financial advisor as one of their primary resources for guidance and information. The same percentage of men said they rely on their own prior experience and knowledge. Men are also more likely than women to reference financial books, magazines and websites. 

That said, women aren’t likely to seek financial advice out of the blue. A strong personal relationship opens the doors for women to come in and get into the nitty-gritty with an advisor. Once that foundation of trust is established, women will tell up to 52 people about a good experience they had with their bank, and even more if they had a bad experience. They are also more likely to listen to and act on recommendations, or dismissals, from others.

woman doing online banking on phone and laptop

Women are interested in convenient tools that help them manage their household finances.

Millennial women are more focused on paying off their debts than their male counterparts are. This sense of caution and sensibility is also reflected in their attitudes toward their financial future — 59% feel positive about the future, compared to 72% of men – and saving vs. spending. 54% of Millennial women said they avoid overspending, while only 40% of men said the same.  Women in general carry less debt, use less credit, and are less likely to be late on their mortgage payments than men.

When it comes to traditional vs. digital ways of doing business, women place more importance on the branch than men do, especially when shopping around for a new bank. Women over 50 are particularly concerned about the availability and proximity of branch locations when choosing a bank.

Women are a little slower than men to take up new tech tools like mobile apps and voice recognition. They won’t trust these services until they have evidence that it’s worth taking the leap into something new. That said, remember how they rely on word-of-mouth – once they hear good things about your digital experience, they’re open to coming aboard. Women are especially interested in tools to help them manage their budget. Even if women weren’t using the services directly themselves (maybe through a spouse or someone else in their household instead), they still expect banks to have them. 

Key Takeaways for Banks
  • Women prefer a human touch, someone to walk them through the complexities of managing their money. Your advisory staff should be visible and available to your customers. Make it easy to contact these experts directly to ask quick questions or set up appointments – no one likes being given the run-around or playing voicemail tag.
  • While men are generally content making transactions and purchase decisions directly with their bank, women want a relationship to create a foundation of trust before they’ll take your advice or sign on for additional products and services. Building the customer experience around this relationship makes them feel respected, valued, and welcome.
  • Convenience can come digitally, but not necessarily. It also means convenient access to branches and a pleasant in-store experience while at the branch. It also means the availability of tools, including online and mobile, that help women manage the day-to-day flow of their income and expenses, or that connect them quickly and painlessly to personal help when they need it.
  • FinTech could prove a significant draw. FinTech providers generally lead with the convenience and utility of their solutions. This could draw women customers, particularly younger women, away from traditional banks who aren’t innovating fast enough in the tools-on-the-go space.
  • Women are conscious of financial responsibility, like reducing debt and paying bills on time. So what if their bank started incentivizing and rewarding their financial sense? Little gestures of congratulations, even for something as small as saving a little extra this month, could go a long way in strengthening the relationship between banks and their women customers.

As with all things, these preferences and priorities will vary somewhat from region to region, bank to bank, maybe even branch to branch. Use Voice of the Customer data to track, illuminate, and strategize around the customer experience of your women customers and earn their loyalty.

To learn more about Voice of the Customer solutions, contact CSP.

SOURCES

Scale of financial confidence
Reliance on financial advisor
Preference for strong relationship of trust
Women’s word-of-mouth
Millennial women & debt
Women’s financial responsibility
Women pay attention to branches
Women expect banks to provide tools

8 Do’s and Don’ts for Recovering from a Customer Experience Mishap

February 10, 2016

bad customer service


Sometimes, bad customer experiences happen to good companies. In the worst cases, they happen to good customers whose loyalty you’ve already worked to earn and keep.

It could be a customer service email that went into a black hole and was never returned. Long lines, long hold times, or shipping delays could test a customer’s patience. When a mobile app doesn’t work the way it’s supposed to, or an email marketing campaign floods a person’s inbox, the Unsubscribe button is never far away.

Unsatisfying experiences like these can happen at any point in the customer journey. Prior to onboarding or to a purchase decision, a bad experience can stop the journey in its tracks. After the sale has been made or the account created, customers are even more unforgiving, especially if they feel the problem could have been prevented. Failure to deliver on customer service at this stage feels less like a simple shortcoming and more like a personal betrayal.  

[Related reading: How to Extend the Customer Experience Past Purchase]

Not only are dissatisfied customers likely to take their business elsewhere, they are more likely to bad-mouth your brand to their friends and family. Thanks to social media, that negative word of mouth can ripple across a far broader audience than it could have before. Twitter is awash with complaints – just peep the #customerservicefails feed for examples.

So what can be done to limit customer churn and control potential damage to your brand?

How to Win Back a Customer After an Unsatisfactory Experience

DO: Own up to your mistake
Customers reward businesses who display authenticity in their communications. If an error or oversight was made, acknowledge that fact earnestly. If the problem was more circumstantial than directly in your control, you should still acknowledge the seriousness of the inconvenience to your customer and thank them for bringing it to your attention.

DON’T: Get defensive or over-explain
A customer service rep dealing with an unhappy customer may feel tempted to try to excuse themselves from blame. If the customer is angry and lobbing insults or threats, it’s only human nature to get defensive. But customers by and large don’t care about the explanation for the perceived failure, and responding defensively is a rookie mistake that only escalates tensions.

DO: Extend a personal apology
A form letter or auto-responder has nothing on the personal touch. In one study by Accenture, nearly a quarter of respondents who returned to a business after a bad experience said that a personal apology was responsible for reeling them back in. This jumps back to our first point: authenticity in all things.

DON’T: Delay or let the problem go ignored
The longer a customer has to wait for a resolution, the less chance you have to persuade them to stay. Even if a complaint comes in at 4:58 p.m. on a Friday, there’s no reason to kick the can down the road when it can be addressed immediately. An ignored customer is…well, not a customer anymore, for all intents and purposes.

DO: Sweeten the deal
It may seem like a slick trick, but customers will be more likely to bring issues to your attention if they feel they can get a little special treatment in return. That might include coupons, vouchers, discounts or freebies, depending on the severity of the complaint. It may seem counterintuitive, but would you rather field more customer complaints, or silently lose customers without any indication why they left?

DON’T: Rely on perks alone
A coupon is not a Band-Aid. Without the other elements on this list – authenticity, apology, and responsiveness – special offers can only go so far. At best, they might temporarily placate an unhappy customer; at worst, they can send the message that you think the customer’s loyalty can be bought off, whether or not their original problem was addressed to their satisfaction.

DO: Get down to the root of the problem
Every customer complaint is an opportunity to highlight and examine a potential weak link in the chain of customer service. Maybe it’s something that can be addressed with more training, or by updating processes and policies to meet customers’ evolving needs. Customers like to see you take direct action beyond just a promise that “we’re looking into it.”

DON’T: Treat each mistake as an isolated case
Hopefully, you are keeping track of customer feedback through Voice of the Customer programs and tools. While some bad experiences truly are anomalies, it’s more likely that the experience has been shared and reported by more than one person and can point you to an opportunity for overall improvement.

Of course, an ounce of prevention is worth a pound of cure.

In an ideal world, you wouldn’t need much of the advice above, because you’d already have the systems and training in place to support excellent customer service at every touchpoint. In the real world, batting 1.000 isn’t always going to be possible, but that doesn’t mean you can relax your stance and skip practice. Most customers won’t give you three strikes before switching their allegiance to another team. So strive to prevent customer experience mishaps from happening in the first place, and use the data at your disposal to address any chronic underlying problems.

Customer Experience After the Sale: Are You Missing These Opportunities?

February 3, 2016

Google introduced the idea of the Zero Moment of Truth back in 2011, and has invested a lot of effort into getting companies to buy into it. The idea is that the pre-purchase phase of the customer journey, in which a customer researches, comparison-shops, asks for recommendations, and reads reviews, is essentially a countdown to moment Zero. That’s when the customer pulls the trigger and makes a purchase decision. 

We’re not claiming that Google is wrong. The Decision Point is inarguably one of the key destinations on the customer journey. But is this really where the journey ends? Hardly. In fact, it is a pivot point: the countdown becomes a “count-up,” comprised of every touchpoint that happens after the sale. What we’re counting up to: customer loyalty, satisfaction, and eventually, ideally, ambassadorship. In other words, retention.

As it stands, though, most businesses invest far more effort into customer acquisition than retention, doubling down on the notion that their job is essentially done when a prospect becomes a customer. Not only is this short-sighted, study after study has shown that acquisition is more expensive than retention and relationship marketing. (In fact, we couldn’t locate even one that argued the opposite.) The article by eConsultancy linked to above also included some head-turning statistics on this phenomenon:

  • Attracting a new customer costs five times as much as keeping an existing one.
  • Globally, the average value of a lost customer is $243.
  • 71% of consumers have ended their relationship with a company due to poor customer service. 
  • The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.
Shifting Focus: How to Extend the Customer Experience Past Purchase

Customer experience fact - 71% of consumers have ended their relationship with a company due to poor customer service Source KISSMetricsMake memorable post-purchase moments.
For instance, take a look at your onboarding materials, like “Thank You” pages and auto-generated emails when a customer creates an account on your site. Do they just say Thank You, or do they invite further opportunities to engage with your brand, tips for using your product or service, or incentives like coupons or discount codes? Any touchpoint that can be automated can also be enhanced to build the relationship.

Be helpful, even when there isn’t a problem.
Periodically check in with your customer to ask how things are going and if they have any questions. There could easily be something confusing or bothering them that they either don’t think is a big enough deal to bother you with, or haven’t gotten around to contacting you about yet. Here again, automation can help: reminders, thank-you’s, and Frequently Asked Questions guides can be scheduled at intervals in advance.

Pay attention to the details.
Nothing makes a customer raise an eyebrow like businesses that can talk about their product till the cows come home, yet don’t seem to understand its actual role in day-to-day life, as if they’ve never used it themselves. Imagine how your customer uses or experiences your product or service at home, after hours – not just the obvious, as-prescribed applications, but how it is related to their overall life and priorities.  

Leverage your social & direct marketing channels.
This may be the only area where the acquisition/retention formula gets turned on its head: acquiring followers and subscribers is cheap, but engaging them is where the real effort comes in. Not only do customers treat social media and emails as additional customer service channels (and expect you to meet them there), they assume they will get something in return for following you, such as exclusive offers, informative videos and graphics, or even shareable entertainment.

Listen to the Voice of the Customer.
You had to know this was coming, right? At CSP, we believe that Voice of the Customer tools and measurements are the lifeblood of a healthy customer experience. Relationships, after all, work both ways, so successful customer relationship management means handing the microphone over to the customer to make sure they have their chance to tell you what is working for them and what’s getting in their way.

The Takeaway

Customer experience that treats the sale as the endpoint is an unclosed circle: all the brand equity, sentiment, and trust you nurtured to encourage the sale, are liable to leak out through this gap. Selling to existing customers is easier than converting new ones. It is worth your while to envision the customer journey as a lifetime relationship, not a finite transaction.

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.

Get Your Decision-Makers to Listen to the Voice of the Customer

May 12, 2015

A satisfying customer experience is organizational, not just transactional. The most direct way to affect your customer experience is to start with your own staff. Everyone must be on board, especially managers and executives.

It’s critical that the top decision-makers at your business believe in the customer experience and stay tuned in to the voice of the customer, even if they never interact directly. Without this investment of attitude and effort, they risk developing blind spots or working off of assumptions that are not aligned with the customer’s reality.

Reasons to Believe in Customer Experience Management

executives

If there is reluctance or uncertainty among senior staff about the value of being involved with the customer experience, they might just need a nudge in the right direction.

Objection: I’ve been in this business for (x) years. I know my customer.
Reality: Your customer today is almost certainly not the same one you were serving (x) years ago. Customer expectations of their experience have changed rapidly in the last several years, and customers are forever looking towards the future. What satisfied them yesterday is old news today and will have them yawning tomorrow. Meanwhile, agile, innovative start-ups and tech-savvy companies have changed the face of customer service and set the bar higher for the rest of the marketplace, not just their own competitors. So you may think you know your customer, but would your customer agree?
Objection: There’s just too much data to make sense of.
Reality: That’s precisely why it’s important to make sense of it. With the explosion of data in the digital age, there is so much to learn about customers to enhance what we already know. As more organizations adopt an omnichannel approach to customer service and marketing, it’s essential to dive into the data and see how all of the parts are functioning. Only this 360-degree view can tell you how well your business is performing as a whole.
Objection: Should we really be budgeting for this?
Reality: What is more costly to a business in the long run – a system for measuring customer satisfaction, or dissatisfied customers? If you’re investing in customer service at all, it’s better to work from a foundation of current and thorough information about the key drivers of satisfaction among your customers, than to go by your assumptions of which areas are performing well and which ones need more attention.
Objection: There’s plenty of market research already out there we can use.
Reality: You can take your chances by basing your decisions off of large, sweeping studies and reports, drawn from a sample size that might not even include any of your own customers. Or you can ask them directly and know that the information you’re getting is immediately relevant to your business and your market. While the large-scale market research is helpful for noting trends and patterns, no one can speak for your customers as well as they can themselves.
Objection: I’m an executive, why does this involve me at all?
Reality: When the customer experience is hurting, other parts of the business – including some of the parts the C-Suite cares about, like sales and workplace performance – will suffer, too. Even if your role never has you interacting with customers directly, you still have an indirect effect on their experience by modeling the right attitude to your team. If those working on the front lines don’t feel like their higher-ups value the customer, they’re not likely to go the extra mile themselves.

Consider, too, that in today’s social media age, businesses aren’t as opaque to the customer as they once were. Customers who have any reason to be upset are not shy about publicly calling out Owners, Presidents, Board Members and CEOs. When there’s a communication breakdown or a scandal between a business and its customers, the public looks to the leaders for explanations and accountability. They can tell the difference between canned PR apologies and genuine concern – which can only come from genuine engagement.

The Takeaway

Superior customer service starts from within and moves outwards, but it can only do so if the internal influencers within your organization are giving it the proper momentum. Managers and executives might sign the paychecks, but the customer is really the boss.

Report: Techy Competitors Turning Bank Customers’ Heads

April 29, 2015

Capgemini has released the 2015 World Retail Banking Report and their Customer Experience Index, calculated from the results of a comprehensive Voice of the Customer survey of more than 16,000 respondents in 32 countries.

The CEI has dropped only slightly from 72.9 in 2014 to 72.7 in 2015, indicating that customer satisfaction is stagnating as banks try to keep up with modern consumer demands and innovative competitors in the digital space.

More highlights from the report:

  • smartphoneGen Y customers registered lower customer experience levels than other age groups.
  • North America continued to have the highest level of overall positive experience compared to other countries, but still saw a dip in positive experiences compared to last year.
  • Customers around the world reported increased likelihood to leave their bank within the next six months. Gen Y in particular has a tendency to move banks, and are more open to internet-based providers or simple financial products offered by retailers.
  • Banks and customers don’t agree on the role of the branch. Banks would prefer that customers purchase simple products online, and visit a branch for help with more complex solutions. Customers continue to use banks for simple transactions and don’t trust that the online options will be as helpful to them as a live person.
  • The rise of FinTech firms means customers can complete their entire banking lifecycle without ever approaching a bank.

You can read the full report here.

Customers are clearly not thrilled with the status quo. They want their banks to keep in step with the other digitally savvy experience they’re having elsewhere in the consumer marketplace, from retail to healthcare to entertainment. The newest young adults have grown up with the convenience of instant, constant connectivity, and highly customizable products and solutions.

“Status quo” is what you get when you assume you already know your customers. The global numbers won’t tell you what intelligence you’ll gain from your own Voice of the Customer research. Every bank serves different customers and it’s their needs and expectations you need to be listening to, measuring, evaluating, and integrating into your customer experience.

If you’re concerned about your status quo or want to know what you can do to change it, contact Customer Service Profiles today by phone at (402) 399-8790 ext:101, via our website, or on Twitter @csprofiles

What is Customer Experience Research?

March 6, 2015

Traditionally, Customer Experience Research falls into two main categories.

In the first category, there are market research firms that take an academic or scientific approach to collecting data and presenting the findings. These providers emphasize the purity of their data and the rigor of their methods and processes for collecting that information.

In the second category, there are data collection firms that specialize in gathering, storing, and organizing vast amounts of data from a variety of sources. Through their proprietary systems and tools, they make their findings accessible and digestible to the end user.

What does customer experience research capture?

The two metrics most important to customer experience management are customer satisfaction and customer engagement, which exist on a continuum and influence each other in both directions.

Customer satisfaction is an immediate measurement of an experience, from something as small as an interaction with a customer service representative to the overall feeling a customer has that his or her expectations and needs are being met. This is arguably the starting point for all customer research.

Customer engagement is what keeps customers coming back. It captures the long-term equity that is built on satisfying experiences by measuring things like loyalty and how likely a customer is to refer others to their preferred brands and businesses. In this way, it’s a more useful measurement than simple satisfaction: customers who are strongly engaged over time are more willing to overlook or tolerate the occasional less-than-satisfying experience.

A great example of this comes from the consumer technology industry. Brands like Apple and Google each have dedicated, loyal audiences that will continue to buy their products and tout their benefits to friends and family, even when the products themselves fall short of 100% satisfaction (think: buggy software releases or smartphones so thin they bend in your back pocket). This is the kind of engagement every brand dreams of.

The Journey From Data to Information to Knowledge

data information and knowledge

Both the academic and data-collection approaches to customer experience research have value. Market research can reveal trends, insights, and patterns across large populations and broader spans of time. Data collection, meanwhile, has grown so sophisticated as to merit its own industry, aimed at helping the everyday business manager access intelligence about their customer – because it’s unlikely they have the expertise or time to sift through it all themselves.

Both methods also have their limits. Statistical research may be useful in an ideal world where all customers have the same expectations and needs, and all businesses face the same challenges in meeting those expectations. But in a real-world setting, the insights garnered from this research often ends up “watered down” and are unlikely to apply to each unique business or brand the same way.

It’s not unlike the idea of the self-help book, which can be a useful way to talk about people in general, but won’t always apply on an individual level. You can do everything “by the book” and still fall short of your goals if the book you’re going by doesn’t account for the nuances of your business or your customers.

In turn, data collection is exactly what it sounds like: collecting data and presenting it as information. But turning that into knowledge that you can act on? That part is up to you. These firms often step out of the picture at that point, leaving you to figure out how that information factors into your strategies and tactics, what merits your attention and what doesn’t, and what steps come next.

Bridging the Gap Between Research and Reality

The shortfalls of traditional customer experience research are how businesses end up thinking they know their customers, without actually knowing them. There’s a break in the process that prevents them from getting to that next level of knowledge and using that knowledge to improve their customer experience.

In our 20+ years of customer experience research, CSP’s guiding principle has been to not only gather and present the information, but to then guide our clients in creating the roadmap to a better customer experience based on a thorough understanding of their unique customers.

Why should anyone have to figure this out from scratch? CSP has seen it all before, and we know what works and what doesn’t. Our experts are flexible enough to adapt to any given brand or business with a methodology that’s personalized every step of the way. Your specific questions about your customers, your market, and your competition are built right into the program, along with ongoing support, tools, and coaching to help you define and achieve your goals.

This level of customization and personal attention is hard to come by with traditional research models, but we believe it’s the key ingredient to successful customer experience management. We’re not passionate about data – we’re passionate about improving the customer experience, full stop.

For more information about CSP’s customer experience research methodologies and the programs we build to support them, contact us today by phone at (402) 399-8790 ext:101, via our website, or on Twitter @csprofiles