experience - America Outdoors

The Journey to Customer Advocacy: Benchmarking the Best

Joseph Michelli, Ph.D. Tuesday, December 6, 11

s n Co

r e um

! e arg

e h T h C n i s i

Crisis or

Opportunity? Tuesday, December 6, 11

Commodities

From “Lovemarks” by Kevin Roberts

Tuesday, December 6, 11

Commodities

Low Respect Low Love Tuesday, December 6, 11

From “Lovemarks” by Kevin Roberts

Fads


Fads Low Respect High Love


Solid Brands


Solid Brands

High Respect Low Love Tuesday, December 6, 11

Beloved Brands


Beloved Brands High Respect High Love


LOVE&CUSTOMERS


LOVE&CUSTOMERS “Love is...a commitment to someone else’s growth and development.” Peter Senge - The Fifth Discipline


Customer Experience to What End • Engagement - Customer Connectedness

• Loyalty - Customer Maintenance

• Advocacy - Customer Development


SURVEYSAYS


SURVEYSAYS EVEN IN DIFFICULT TIMES

50%

OF CONSUMERS WILL PAY MORE FOR A BETTER EXPERIENCE 2009 - HARRIS INTERACTIVE



50%


50% OF CONSUMERS LEAVE BUSINESESS

BECAUSE OF A BAD EXPERIENCE ACCENTURE



50%


50% OF CONSUMERS LEAVE BUSINESESS

BECAUSE OF A BAD EXPERIENCE ACCENTURE

COMPANIES... SUCCESSFUL IN CREATING BOTH

FUNCTIONAL AND EMOTIONAL BONDING WITH CUSTOMERS HAD HIGHER RETENTION RATIOS (84% VS 30%) AND GREATER CROSS-SELL RATIOS (82% VS 16%)

COMPARED WITH THOSE THAT DID NOT IBM / OGILVY LOYALTY INDEX BRAND SURVEY 2008


ORACLESTUDY

Service Economics by Downton, Rustema and Van Veen 2010 Tuesday, December 6, 11

ORACLESTUDY

• Companies who successfully execute a high

service value strategy enjoyed annual growth rates of 20-40%.


ORACLESTUDY



• Broadening sales roles to trusted advisors, businesses on average enjoyed a 20% sales increase.


ORACLESTUDY



• Broadening sales roles to trusted advisors, businesses on average enjoyed a 20% sales increase.

• Companies that effectively made improvements in

customer experience leading to 5% increase in customer loyalty enjoyed profit increases greater than 25%. Service Economics by Downton, Rustema and Van Veen 2010


From Sale to Loyalty








4 Steps to Customer Experience Success

STEP 1 Brand Promise and Way We Serve™ Statement


4 Steps to Customer Experience Success

STEP 1 Brand Promise and Way We Serve™ Statement

Define and drive a compelling customer-centric brand promise that informs behavior at every level of the organization. Tuesday, December 6, 11

Pike Place Fish Market Tuesday, December 6, 11

From Bankruptcy


To World Fame

From Bankruptcy


To World Fame

From Bankruptcy


To World Fame



THE CONVERSATION

CONTINUES


THE CONVERSATION

CONTINUES


THE CONVERSATION

CONTINUES


THE CONVERSATION

CONTINUES


THE CONVERSATION

CONTINUES


THE CONVERSATION

CONTINUES


Desired Experience:

Way We Serve Statement

“ Treat people as if they are World Famous.”


Desired Experience:

“Way We Serve Statement” “Create the third place –

the living


room of the community.”

Desired Experience:

“Way WE Serve”

“Create the home of a loving parent.” Tuesday, December 6, 11

Desired Experience:

Way WE Serve

L U F W ” O S S W E “ PIN P A H Tuesday, December 6, 11

STEP 2 for Experience Success

Customer Engagement


Identify Customer Metrics that Link to Key Performance Indicators

Customer Effort

Net Promoter

LOYALTY&ENGAGEMENT

THE OUTSIDER EXPERIENCE

THE RATIONALE Overall, how satisfied are you with...? How likely are you to continue to chose / repurchase ? How likely are you to recommend ...to a friend/associate?


LOYALTY&ENGAGEMENT

THE OUTSIDER EXPERIENCE

THE EMOTIONAL _ _ _ _ _ _ _ _is a name I can always trust. _ _ _ _ _ _ _ _always delivers on what they promise. _ _ _ _ _ _ _ _always treats me fairly. If a problem arises, I can always count on_ _ _ _ _ to reach a fair and satisfactory resolution. I feel proud to be a_ _ _ _ _ _ _ _customer. _ _ _ _ _ _ _ _ _always treats me with respect. _ _ _ _ _ _ _ _ _is the perfect company for people like me. I can't imagine a world without_ _ _ _ _ _ _ _. Tuesday, December 6, 11


Confidence Tuesday, December 6, 11

Integrity Confidence Tuesday, December 6, 11

Pride Integrity Confidence Tuesday, December 6, 11

Passion

Pride Integrity Confidence Tuesday, December 6, 11

Increases in percentage of “fully engaged” customers 5’s on “likelihood to refer,” “perfect for someone like me,” and can’t “imagine a world without” & remaining 4’s Tuesday, December 6, 11

Ritz-Carlton Linkage =

Increases in percentage of “fully engaged” customers 5’s on “likelihood to refer,” “perfect for someone like me,” and can’t “imagine a world without” & remaining 4’s Tuesday, December 6, 11

Ritz-Carlton Linkage =

Improved customer retention, increased frequency of stays, increased overall lifetime value, increased advocacy value

STEP 3 TO CUSTOMER SUCCESS

CRM - Client Listening


Mystique •Tracking MR BIV’s (Mistakes, Rework, Breakdowns,

Inefficiencies, and Variations) - Removing “dissatisfiers” •Resolution •Emotional State of Guest •Preferences (for leverage to WOW, love, and emotional engagement) •Other Personal Information (Privacy) Tuesday, December 6, 11

STEP 4 TO EXPERIENCE EXCELLENCE Leverage Data to Increase Engagement (WOW, Loyalty, and Advocacy) Tuesday, December 6, 11

Designing the END-USER Experience Example from Ritz-Carlton Guest Calls for Reserva6on

Guest Enters Room


Guest Exits Car

Guest is Directed to Room Guest Checks Out

deliver

WOW


QUESTIONS TO PONDER what is your “WAY WE SERVE” or experience goal? how do your staff improvise to deliver your desired service experience - every customer- every time (while maintaining quality and operational excellence? what opportunities await you in metrics, CRM, and creating WOW or signature moments? Tuesday, December 6, 11

action a call to

DRIVING THE SERVICE EXPERIENCE

I define service as:

★ A flawless product, ★ Delivered exactly as customers want, ★ In an environment of caring. What can you do to effect product quality, effect execution on staff/customer-centric delivery and elevate caring to a lofty level of service professionalism? Tuesday, December 6, 11

simplicity the

of getting it RIGHT


simplicity the

of getting it RIGHT It’s

Gratitude

Time


simplicity the

of getting it RIGHT It’s

Gratitude

Time SERVICE

SERVES

US Tuesday, December 6, 11

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YOU

THANK

