This is a presentation I gave at the Fred Reichheld NPS Masterclass which took place on May 10, 2012 in Breda. The presentation is part of a series on customer-centricity, which is linked to my recent book "So You Want To Be Customer-Centric?"

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

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

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
It just works This is cool!
Famous for overpriced, underspec’d A low performance gaming
devices with poor battery life. 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’t go “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
The business gets in the way • Internal inefficiency cuts time

28. FUTURELAB
90%
50%
30%
Source: Bupa International, 2009
10%
5%
Collect Alert Staff Make Deploy Inform
Customer to Findings decisions improve customers
Feedback using of change
insights
“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”?
Are you really setting the example, or your talking about the customer? 1 employee
1st degree: 150
Would your people recommend? Act? 2nd degree: 22,500

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