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UCISA TLIG - SDG

USER SUPPORT CONFERENCE

Thursday 3 July 2008 University of Reading

From Sausage to SIZZLE

From service quality to service experience
TED JOHNS Chairman Institute of Customer Service

The Institute of Customer Service

OUR MISSION

Leading customer service performance and professionalism

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USERS and SUPPORT

Danger of patronising, arms-length language More positive focus on customer value

New title!

The UCISA TLIG-SDG CUSTOMER VALUE CONFERENCE

(Wow!)

I cant help you

In many shops, the only staff who are truly customerfocused are the store detectives
(and you cant even be sure about them)

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Some basic assumptions

Clients are customers, customers are clients: they have money & they choose They dont just compare you with other IT providers World-class client/customer service is within everyones reach: good enough isnt good enough

From cold, dead fish to SUSHI!

1.

Efficiency and Functionality

The product must work

2.

Emotional Empathy and Love

The Customer Experience

What does it mean to be world-class? ______________________________________

Youre easy to do business with

____________________________________________ You deliver the promise You provide a personal touch You go the extra mile You resolve problems well

Professor Robert Johnston Service Excellence = Reputation = Profit Institute of Customer Service, 2001

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Why bother about being world-class?

A Very Satisfied customer is six times more likely to buy from you again than a customer who is only Satisfied

Some of your clients are already world-class, so expect you to be the same If you dont occupy a world-class slot, someone else will and your business will start to dissolve

The Elite Eight Per Cent (not 80%!)

Designing the right offers and experiences for the right customers Delivering these propositions by focusing the entire company on them, with crossfunctional collaboration Developing capabilities creating new customer experiences, establishing direct accountabilities, & constant renewal
Allen, Hamilton and Reichheld, Tuning in to the voice of your customer, Harvard Management Update, October 2005

Maximise your NET PROMOTER score

Three kinds of customers/clients (1) PROMOTERS (2) PASSIVELY SATISFIED (3) DETRACTORS The one number you need to grow: How likely is it that you would recommend your organisation to others? NET PROMOTER score = (1) minus (2) + (3) Strong correlation between CORPORATE GROWTH RATE and NET PROMOTER score (also Reputational Benefits)

Fred Reichheld et al, Harvard Business Review, 2003

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Digression: Unfocused Group?

Almost four-fifths of British workers will daydream at least once during an hour-long meeting 51% about family 33% about sex 33% about friends 32% about food 16% about sport
Source: YouGov, 2004

Failure to empathise with the customer

Response from North West Gas to complaint about the size of a gas bill:

We agree it was rather high for the time of year. Its possible Mr Purdey has been charged for the gas used up during the explosion that destroyed his house.

Corporate arrogance & pronoia at UPS

UPS assumed that on-time delivery was first and only concern for customers Target: to deliver each package by 10.30 a.m. Even shaved off corners of delivery driver seats BUT customers said they also valued personal contact

Result 13-minute space for unfocused customer conversations

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Satisfaction isnt the goal

I believe the new trends include the requirement that the vehicle will work
Sir Graham Day
One-time CEO, British Leyland

The Service Trio

1. WHAT IS EXPECTED

2. WHAT DIFFERENTIATES

3. WHAT EXCITES!

The Service Trio

1. WHAT IS EXPECTED Right first time every time Fulfilment, recovery and restitution 2. WHAT DIFFERENTIATES

3. WHAT EXCITES!

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The Service Trio

1. WHAT IS EXPECTED Right first time every time Fulfilment, recovery and restitution 2. WHAT DIFFERENTIATES Trust and reputation Customised/personalised treatment 3. WHAT EXCITES!

The Service Trio

1. WHAT IS EXPECTED Right first time every time Fulfilment, recovery and restitution 2. WHAT DIFFERENTIATES Trust and reputation Customised/personalised treatment 3. WHAT EXCITES! The Tetley Tea-bag Tactic Value-added service innovation

Success = Sausage + S-i-z-z-l-e!

SIZZLE!
The emotional content of the customer experience (the lens of the customer)

SAUSAGE
The physical content of the customer experience (service quality)

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THE CUSTOMER EXPERIENCE

CUSTOMER SATISFACTION
and

Wow!

THE CUSTOMER EXPERIENCE

CUSTOMER SATISFACTION
Efficiency, Functionality, doing things right

Wow!
Effectiveness, Empathy, doing the right things

What you own, and what you dont

You own:

Your service quality

Your Clients/Customers own:

The Customer Experience

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Who are you, in 2008, to tell your clients what they want or need?

It is time to let go of the fallacy that your brand belongs to you: it belongs to the market
Alex Wipperfurth
Brand Hijack: Marketing Without Marketing
Portfolio Books, 2005

ICS Model for World-Class Customer Service

World Class Customer Service Reputation Performance Growth Profitability Trust

The customer-centric business

THE STRATEGY FUNCTION
Vision, values, ethics, top-down leadership, the Big Idea

THE CUSTOMER (CLIENT) FUNCTION

Marketing, sales, the customer experience (service performance, innovation, restitution and recovery)

THE PEOPLE FUNCTION

Recruitment, learning, performance management, reward

THE PROCESS FUNCTION

Infrastructure Enablers: administration, technology, money

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ICS Model for World-Class Customer Service

World Class Customer Service Reputation Performance Growth Profitability Trust

The Big Idea at Lands End Clothing

Dont worry about whats good for the company: worry about whats good for the customer
GARY COMER

IF THERE ISNT A BIG IDEA, NOR EVEN A SMALL ONE Badge worn by hotel receptionist:

Its with flair That I give customer care

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Strategy and Culture: COMMITMENT Service quality is a key corporate value, with associated goals, action programmes, measurement and top-down accountabilities.

The empty chair at Amazon You stretch the edges of your market by working your customer interface, listening and inventing for customers simultaneously
__________________________________________________________________

Simplicity and elegance Consistency and weekly vigilance Process innovation The empty chair

Strategy and culture: CREDIBILITY

Promises are kept, service is delivered at times that suit customers, and superb service recovery systems are in place

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Reputation and The Employer Brand

Organisations live or die by their reputations. Positive reputations can confer powerful competitive advantage and also help organisations to attract better staff, suppliers, and customers, and apply higher margins to their business.
Professor Robert Johnston Service Excellence = Reputation = Profit Institute of Customer Service, 2001

ICS Model for World-Class Customer Service

World Class Customer Service Reputation Performance Growth Profitability Trust

Why are people (YOU!) important?

You can make or break the level of trust between customers and your organisation Only you can deliver discretionary behaviour (Random acts of kindness John Lewis) Only you can inspire innovation, change and continuous improvement Only you can bugger things up far more skilfully than computers (and thats saying something)

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People:

CAPABILITY

People are recruited and developed against competencies that give high priority to customer-focused attitudes, e.g., consideration, tolerance and empathy

Predicting future engagement

1. ADAPTABILITY 2. PASSION ABOUT WORK (WORK ETHIC) 3. EMOTIONAL MATURITY 4. POSITIVE DISPOSITION 5. SELF-EFFICACY 6. ACHIEVEMENT ORIENTATION
Suggestion: Check for job fit ask candidates to describe their ideal job
Source: People Management, 27 July 2006 (DDI)

I said Have a nice day, you deaf old cow

Good morning, ladies and gentlemen. Thank you for choosing to travel by South West Trains between Basingstoke and London this morning. Today we will be making an extra stop at Wimbledon. [pause] God knows why, they never tell us anything.
Public address system on train to London

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How not to do it You can ask to speak to someone else if you like but here, the higher up they are, the less they know.
Response to customer who asked to speak to a supervisor at a well-known telecoms company

People:

CONTINUITY

Retention, reward and recognition strategies focus on world-class service delivery

ICS Model for World-Class Customer Service

World Class Customer Service Reputation Performance Growth Profitability Trust

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Processes:

CONSISTENCY

Processes are designed from a customers viewpoint and are consistently delivered

Stiffen the process, stuff the customer

Illiterate? Write today for free help

Small ad, Chichester Observer

Processes:

CREATIVITY

Continuous improvement and innovation are nurtured and encouraged to flourish

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How to do it
Customers may be delighted with something initially. But six months later they take it for granted and then they demand it. Delight is a treadmill you cant get off.

Managing Director, Milliken

ICS Model for World-Class Customer Service

World Class Customer Service Reputation Performance Growth Profitability Trust

The Bullet-Proof Business

Internal oxygen supply

Reinforced fuel tank

Plates of ballistic steel

Shots from a .44 Magnum

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The Bullet-Proof Business

Internal oxygen supply

ENTHUSIASTIC, ENGAGED TEAMS and PEOPLE

Reinforced fuel tank

ACTIVE PROMOTER CLIENTS & CUSTOMERS

Plates of ballistic steel

YOUR BIG IDEA and a CONTRIBUTOR CULTURE

Shots from a .44 Magnum

Nothing works all the time (1)

I recently shampooed my pet rabbit with Body Shop shampoo. Its eyes bulged out and turned red.

Nothing works all the time (1)

I recently shampooed my pet rabbit with Body Shop shampoo. Its eyes bulged out and turned red. If you tested your stuff on animals like everyone else, this sort of thing wouldnt happen.
Extract from letter of complaint sent to Anita Roddick

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Nothing works all the time (2)

Wednesday 29 March 2006

Ryanair service from Liverpool to Londonderry lands at RAF Ballykelly (military airfield) by mistake

Nothing works all the time (2)

Only one passenger complained:

Nothing works all the time (2)

Only one passenger complained:

They didnt let us go down the slide

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Thats all, Folks!

__________________________________________

If theres anybody here I havent offended, I beg their pardon

JOHANNES BRAHMS
On leaving a gathering of friends ________________________________________________________

Ted.Johns@icsmail.co.uk

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