Barriers to Customer-Centricity

1. FUTURELAB Breda May 10, 2012

2. On a mission to make the world a more customer friendly place @FLB_alainthys FUTURELAB

3. FUTURELAB “Let’sgo WOOOOOWW!!” “Let’s spread love & hug” “Let’s be like Disneyland” The problem I have always had with customer experience thinking Too much fluffy stuff

4. The CEO Dilemma FUTURELAB The problem I have always had with customer experience thinking The CEO dilemma: I get paid in Euros, not happy faces

5. FUTURELAB The same coffee beans Cost per cup € 0.01 € 0.075 € 0.40 € 1.00 € 2.20 € 2.50 € 5.00 I haven’t got a clue! The futures market (nov 2011) in a package at the grocery store at Nespresso in a paper/plastic cup from a machine from a machine in a theme park in a cup in a big city café at a deluxe restaurant during my honeymoon with a glass of 100 year old Armagnac While I couldn’t translate it into ROI My intuition told me something was there

6. FUTURELAB • • • First exposure at Philips Deepdive into the Net Promoter® System Heavy promoter of the approach. Clarity at last And then came Fred

7. Customers are important. Really, they’re important. They’re very very very important! So full of excitement that there was a business case I became a customer evangelist

8. FUTURELAB But the world decided to surprise me … Every company (and employee) is customer-centric

9. 80% of CEO’s believe they offer a superior customer experience. 8% of their customers agree. The bad news Even though Fred’s colleagues disagreed Source: Bain & Company

10. FUTURELAB • • The wrong perspective Rolling the dice Leadership not walking the talk • So I went digging for the reasons Three key barriers to customer-centricity

11. FUTURELAB From a business perspective Customer experience gets managed “on top of” …

12. FUTURELAB From a customer perspective “The experience IS the product” (Peter Merholz)

13. FUTURELAB To capture this money, we need a different perspective “The experience IS the product” (Peter Merholz)

14. FUTURELAB “You press the button, we do the rest” George Eastman From a customer perspective “The experience IS the product” (Peter Merholz)

15. FUTURELAB This is cool! It just works Famous for overpriced, underspec’d devices with poor battery life. A low performance gaming console with few titles. From a customer perspective “The experience IS the product” (Peter Merholz)

16. FUTURELAB A real life case TV’s bought on a Saturday have more detractors

17. FUTURELAB Going direct to create the right emotion at every touchpoint allows Nespresso to charge up to 4x the price of other high street brands The bottom line The one with the best TOTAL “experience” wins 17

18. There’s more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policy 25% more expensive The bottom line The one with the best TOTAL “experience” wins

19. FUTURELAB Overcoming the barrier Experience doesn’tgo “on top”, it IS the product

20. FUTURELAB • The wrong perspective Rolling the dice Leadership not walking the talk • • So I went digging for the reasons Three key barriers to customer-centricity

21. FUTURELAB Three key barriers to customer-centricity Most companies roll the dice on managing CX

22. FUTURELAB A Structured Approach 30 second group brainstorm Which are the customer steps when going on a holiday? 22

23. FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories 30 second group brainstorm Which are the customer steps when going on a holiday 23

24. FUTURELAB We show that we value our customers by serving them well, putting their needs and interests at the center of everything we do. (from the AOL mission statement) Case: AOL Rolling the dice: extreme case

25. FUTURELAB Question: Bad employee? Case: AOL It ain’t over until the last employee/touchpoint is managed

26. FUTURELAB Again … this is not about ill will Every employee on the planet cares about the customer

27. FUTURELAB But reality is that … • • • No customer contact Misaligned KPI’s Internal inefficiency cuts time The business gets in the way

28. FUTURELAB 90% 50% 30% Source: Bupa International, 2009 10% 5% Make decisions using insights Inform customers of change Alert Staff to Findings Deploy improve Collect Customer Feedback “Most businesses are optimised for themselves, not for the customer.” Geert Van Kuyck, CMO Philips

29. FUTURELAB The REAL customer experience 62% of US/UK consumers believe that the quality of service depends on whoever serves them. If you don’t manage the whole experience, you roll the dice. Any disconnect can break your business

30. FUTURELAB • • • • • • • 6 month delivery delay Wife gets insulted Threat to cancel = car appears Sunroof doesn’t open (but that’s normal) Loaner car is dirty 2nd hand car at 1/3 price Invoicing is a mess … While they keep mailing you promotions • If you don’t manage the whole experience, you roll the dice. One brand, two dealers…

31. FUTURELAB Overcoming the barrier Don’t roll the dice, but manage “every” touchpoint

32. FUTURELAB • The wrong perspective Rolling the dice Leadership not walking the talk • • So I went digging for the reasons Three key barriers to customer-centricity

33. THE CUSTOMER IS AT THE CENTRE EVERYTHING WE DO! Our satisfaction numbers matter! Do what is right for the customer! Let’s have an off-site workshop! Let’s have a customer day! Leadership not walking the talk Many executives say they want to be customer-centric

34. THE CUSTOMER IS THE LAST THING WE TALK OR THINK ABOUT. I know the product is outdated, but push it, we need to hit the quarterly numbers Can’t we replace our call-centre with an IVR. All these people cost money! Can we lock accounts into only buying their service support from us? I don’t have time to meet with customers. “I’m out of here in 2 years anyway” Leadership not walking the talk But their behaviour says something else

35. Customer oriented behaviour = headache Grab the money/process focus =easier silo life, career, bonus, … People copy behaviours, not words The organisation will learn fast

36. FUTURELAB Would you recommend the bank to friends /family? 32% No 28% conditionally Would you recommend the bank as an employer? 39% No 30% Yes N=25,000 (out of 59,000) But they don’t lose their common sense. And before you know it, you’ve got a problem

37. FUTURELAB “you know what those idiots did at work”? 1 employee 1st degree: 150 2nd degree: 22,500 Are you really setting the example, or your talking about the customer? Would your people recommend? Act?

38. FUTURELAB Leadership not walking the talk What is really required.

39. Overcoming the barrier Don’t talk about the customer … set the example

40. FUTURELAB • Realise that the experience is the product Manage every single touchpoint Be prepared to walk the customer talk • • To conclude Overcome the barriers in your business

41. FUTURELAB And finally What is the “one thing” you will do?

42. Twitter: @FLB_alainthys FUTURELAB

43. FUTURELAB Thank you … And now comes Fred