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A Quick-Results Method
  for Climbing the Customer Service Curve




Customer Experience Workshop


            SHARPER CUSTOMER-FOCUS • SHARPER COMPETITIVE EDGE
            147 Monarch Park Ave • Toronto • Ontario • M4J4R5
            P: 416/465-0800 • E: eric@customerfocusconsult.com




                                                                 www.customerfocusconsult.com
Climbing the Customer Service Curve to Loyalty & Advocacy
          Requires a Consistently Superior Customer Experience

                                                                                                    Loyalty => $$$
                                                                                                     Only 15% of
                                                NEED CENTERED                                        Companies !
                                           CUSTOMER RELATIONSHIP
                                           The Customers are supplied
                                            with services and service,                         Always Being Proactive
 Advocacy                                    the way they want them,
                                                                                               “Shoot ahead of the duck”
               Customer Behavior




                                               when they want them

                                                                           Consistently Exceeding Expectations
Relationship                           Leaky                 Point of
                                                            Satisfying
                                                                             “Under-promise and over-deliver.”
 Expansion                            Barrel                                                                          VALUE CENTERED
                                                                                                                           PARTNER
                                                                                                                        RELATIONSHIP
                                                                                                                     Distinguished through
  Neutral                                                                                       Point of                Value Creation,
                                                     Consistently Meeting Expectations         Delighting             Product and Service
                                                         “Preach what you practice”                                         Delight


                                       Neutralizing Service Irritants
Diminishment                             “Wipe out the coffee stains”


                                                                  Customer Relationship Management
 Defection                                Attract                   Serve                Grow                              Nurture

                                   Reactive Service Delivery       Customer Satisfaction Management Proactive Value Creation


                                                                                                                       www.customerfocusconsult.com
Climbing the Customer Service Curve to Loyalty & Advocacy
   Requires a Consistently Superior Customer Experience
       The link between satisfaction and behavior is not a straight line but more like an S curve, with two points of inflection.
       The first one is the Point of Satisfying, where customer expectations for service are met to the degree that
        they don’t feel the need to scale back or defect.
       Below that point the enterprise is like a leaky barrel, topped up by attracting new customers
        while at the same time customers and profits leak out at the bottom.
                                             Point of
                                            Satisfying




                                                                                          Point of
                                                                                         Delighting


                                 The second one is the Point of Delighting, where customers’ expectations are exceeded through
                                  differentiated customer service, prompting them to become an advocate for the company.
                                 Research by the Forum corporation suggests that only 15% of companies operate at the
                                  Point of Delighting or higher, where their customer service actually contributes to loyalty.
                                 Below this level, and also in absence of an effective customer relationship management process
                                  that provides recognized value, satisfied customers my yet switch supplier.

    Climbing up this Customer Service Curve cannot happen if the day-to-day Customer Experience
    is not managed by paying detailed and fanatical attention to the customer touch points (Moments of Truth)
    that occur throughout the cycle of service and to developing an effective strategy for service recovery.


                                                                                                                  www.customerfocusconsult.com
Customer Experience Management



In today's customer             Customer relationships are built on trust, established
economy, companies'              through consistent, repeated good experiences throughout the
results are increasingly         customer journey or Cycle of Service.
judged by the depth and         The quality of the customer's experience determines the
value of customer                customer's loyalty to a brand and to the company behind
                                 the brand.
relationships.

Every organization has a        Most organizations do not [sufficiently] appreciate their
customer experience.             Customer Experience.
It is what happens for or
                                Neither do they proactively and in detail manage the
to your customers as
                                 Customer Experience throughout the Cycle of Service.
they learn about your
company, try and then buy       Successful Customer Experience Management starts
your product or service,         with mapping and detailed analyses of all customer contact
get help, and share ideas.       points - “Moments of Truth”.



                                                                                 www.customerfocusconsult.com
Customer Experience Management



If you haven’t identified the      The operational silos take over in determining what they’re going to do to
opportunities that exist to         the customer and when.
impact your customer’s             The customer experience happens by default…the outcome of the collision
experience, then you can’t          of your silos’ interactions with the customer.
manage it.
                                   The “Moments of Truth” enlighten the organization to understand the stages
There are sound reasons for         that form their interaction with their customers.
pushing people together to         They push the organization to create a common language and framework for
create a common language to         understanding of the touch points with the customer that cross the organization.
define the stages of customer      The identification of the “Moments of Truth” inspires creativity by opening
interaction and the                 people’s minds to thinking through what should be delivered at key
“Moments of Truth” which            intersections with a customer to deliver valued and memorable experiences.
define the customer                The process of identifying the “Moments of Truth” drives awareness about
experience. They’re valuable        where a company can impact a customer relationship and customer
in driving operating strategy       profitability.
and climbing the customer          The “Moments of Truth” burst across the silos and push the silos to work
service curve towards               together in the optimum delivery of the experience. Building an operating
increasing customer loyalty         plan for the execution of the key “Moments of Truth” clarifies the organi-
                                    zational and operational hand-offs where so much customer dissatisfaction
and profitability.                  and defection occurs today (Leaky Barrel).
                                                                                          www.customerfocusconsult.com
“Moments of Truth” Create the Customer Experience

                                                                          Managed successfully,
                                                                          Moments of Truth help
                                                                          create a positive
                                                                          perception of Service
 Moments of Truth happen …                                                Quality — an “experience”
      Every time a customer comes into contact with your organization     or a “feeling.”

      During contacts in person, by phone or other means                  But, each Moment of
                                                                          Truth is also a potential
      Planned and unplanned                                               failure point, a negative
      During service as expected                                          experience that can make
                                                                          the customer decide to
      During service recovery                                             defect to a competitor.
                                                                          Moments of Truth need to
“Manage the dickens out of those unique, never-to-be                      be well understood and
repeated opportunities to distinguish ourselves in a                      managed proactively and
memorable fashion from each and every one of our                          intensely to climb the
competitors.”                                                             customer service curve.
          — Jan Carlzon, President, Scandinavian Airlines Systems (SAS)

                                                                                 www.customerfocusconsult.com
Managing your Cycle of Service for Detail

                                  Chronology of Moments of Truth and other factors which influenced
                                 dealers’ Service Quality perceptions of a cellular telephone company

Most organizations                   Issuing Credits                                            Sales Calls
do not [sufficiently]
appreciate their
                                  Service                                                                 Order Generation
Moments of Truth.
                                                             Other Factors Influencing
Neither do they                                                 Service Delivery:
proactively and in
                               Returns                         •Management Style Issues                       Order Processing
detail manage the                                                 Order Generation
                                                              •Distribution Channel Issues
Customer Experience                                                  •Systems Issues
                                                                  •Marketing Services
throughout the                                                  •Telephone and Paging
                               Collecting                                                                  Back Orders
Cycle of Service.

                                       Invoicing                                                     Credit Approval
            Moments of Truth
                                                       Delivery                      Order Picking
                                                                                                        www.customerfocusconsult.com
Managing Internal Service the Same Way

                                Simplified chronology of Moments of Truth and other factors which
                              influenced employees’ Service Quality perceptions of an IT Help Desk


Most organizations
do not [sufficiently]
apply the same
                           Closing Ticket                                                 Experiencing
customer service                                    Other Factors Influencing Service       a Problem
                                                                Delivery:
discipline internally                                        “Headcount”
                                                           Large # of V.I.P.s
as they do externally.                                XYZ Software Capabilities
This is vital for key                                   Order Generation
                                                    Customer Service Skills Training
                                                    Managing Customer Expectations
internal service                                      Service Level Agreements
                                                       Knowledge Management
providing functions,                                    “Quantity over Quality”
                                                          “Treadmill/Burnout”
such as: IT, HR and
                          Solving Problem                                               Calling Help Desk
Finance.

                  Moments of Truth

                                                                                        www.customerfocusconsult.com
Climbing the Customer Service Curve
               Through the Customer Experience Workshop

The Customer Experience Workshop is a hybrid of a                             Moments of Truth typically
focus group and a brainstorming session — with a                              appear on or near the front-line
focus on the customer experience (outside-in).                                of organizations. Involving
                                                                              those employees means that
                                                                              practical, customer-focused
                                                                              service improvements will be
                                                                              suggested and implemented.
The Customer Experience Workshop Provides…

   Chronological Inventory of Moments of Truth in a Cycle of Service          The workshop involves front-
                                                                              line employees from a cross-
   Customer-Focused Definitions of Excellent versus Bad Service Experience
                                                                              section of business functions in
   Pragmatic Ideas for Changing Bad to Excellent Service Experiences
                                                                              the open and honest exchange
   Opportunities for setting standards and measures                           of ideas. Management is not
   Identification of Non-Value Added Activities                               included and all input is kept
   Identification of (Organizational) Barriers to Improving Service Quality   confidential.

                                                                                            www.customerfocusconsult.com
The Customer Experience Workshop
                        Provides High Value-for-Fees



A Customer Experience Workshop:                                             I guarantee a value-packed
      Improves both external and internal Customer Experiences through
                                                                            written report and verbal
      Understanding and Analysis of Moments of Truth                        presentation full of
      Identifies Short- and Long-Term Service Quality Improvement           pragmatic improvement
      Opportunities                                                         opportunities and
      Brings the Voice of the Customer in Key Business Processes
                                                                            strategic recommendations.
      Promotes Cross-Functional Cooperation and Interdepartmental
      Communication
                                                                            These are based on my
      Kick-Starts, Feeds, or Accelerates a Continuous Improvement Process
      Creates an Agenda for a Service Quality Improvement Council or
                                                                            extensive consulting
      Task Force                                                            experience in managing
      Provides Input for Designing Qualitative and Quantitative Customer    Service Quality issues in a
      Satisfaction Research Tools                                           wide variety of industries
      Provides Input into Questionnaire Design for Customer Surveys and
                                                                            and companies.
      Relationship Reviews


                                                                                       www.customerfocusconsult.com
Credentials Eric Fraterman

                                                                        Extensive international customer-focus
                                                                        consulting experience:
Clients who have benefited from the                                      Customer-Focus Strategy Planning,
Customer Experience Workshop:                                              Deployment/Alignment
                                                                         Customer Satisfaction, Employee and
    Building Materials                    Engineering Consulting Firm
                                                                           Supplier Research
    Performing Arts (Not-For-Profit)      Mutual Funds
                                                                         Key Customer Relationship Reviewing
    Cellular Telephones                   Advertising Media Services
                                                                         Total Quality/Service Management
    Life Insurance                        Charitable Organizations
                                                                         Service Quality Diagnostics
    Hospital (External & Internal)        Law firm
                                                                         Front-line Service Quality Improvement
    Computer Distribution                 Beverage Packaging
                                                                         Internal Service Quality Improvement
    Computer Service                      Equipment Rental
                                                                         Leadership Values Path Development
    IT Department (internal)              Country Club
                                                                         Customer-Focused Organization Design
    Finance Department (Internal)         Alcoholic Beverages
                                                                         Quality Function Deployment
    HR Department (Internal)              Software
                                          Electrical Contractor                                 www.customerfocusconsult.com
Free Phone Consultation & Self Assessment

   Book a free phone consultation and click here.


   Conduct a simple self assessment of where your transactional service fits on the
    S-Curve and click here.


   For more information about my services visit www.CustomerFocusConsult.com .




                                                                            www.customerfocusconsult.com

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Climbing the Customer Service Curve

  • 1. A Quick-Results Method for Climbing the Customer Service Curve Customer Experience Workshop SHARPER CUSTOMER-FOCUS • SHARPER COMPETITIVE EDGE 147 Monarch Park Ave • Toronto • Ontario • M4J4R5 P: 416/465-0800 • E: eric@customerfocusconsult.com www.customerfocusconsult.com
  • 2. Climbing the Customer Service Curve to Loyalty & Advocacy Requires a Consistently Superior Customer Experience Loyalty => $$$ Only 15% of NEED CENTERED Companies ! CUSTOMER RELATIONSHIP The Customers are supplied with services and service, Always Being Proactive Advocacy the way they want them, “Shoot ahead of the duck” Customer Behavior when they want them Consistently Exceeding Expectations Relationship Leaky Point of Satisfying “Under-promise and over-deliver.” Expansion Barrel VALUE CENTERED PARTNER RELATIONSHIP Distinguished through Neutral Point of Value Creation, Consistently Meeting Expectations Delighting Product and Service “Preach what you practice” Delight Neutralizing Service Irritants Diminishment “Wipe out the coffee stains” Customer Relationship Management Defection Attract Serve Grow Nurture Reactive Service Delivery Customer Satisfaction Management Proactive Value Creation www.customerfocusconsult.com
  • 3. Climbing the Customer Service Curve to Loyalty & Advocacy Requires a Consistently Superior Customer Experience  The link between satisfaction and behavior is not a straight line but more like an S curve, with two points of inflection.  The first one is the Point of Satisfying, where customer expectations for service are met to the degree that they don’t feel the need to scale back or defect.  Below that point the enterprise is like a leaky barrel, topped up by attracting new customers while at the same time customers and profits leak out at the bottom. Point of Satisfying Point of Delighting  The second one is the Point of Delighting, where customers’ expectations are exceeded through differentiated customer service, prompting them to become an advocate for the company.  Research by the Forum corporation suggests that only 15% of companies operate at the Point of Delighting or higher, where their customer service actually contributes to loyalty.  Below this level, and also in absence of an effective customer relationship management process that provides recognized value, satisfied customers my yet switch supplier. Climbing up this Customer Service Curve cannot happen if the day-to-day Customer Experience is not managed by paying detailed and fanatical attention to the customer touch points (Moments of Truth) that occur throughout the cycle of service and to developing an effective strategy for service recovery. www.customerfocusconsult.com
  • 4. Customer Experience Management In today's customer  Customer relationships are built on trust, established economy, companies' through consistent, repeated good experiences throughout the results are increasingly customer journey or Cycle of Service. judged by the depth and  The quality of the customer's experience determines the value of customer customer's loyalty to a brand and to the company behind the brand. relationships. Every organization has a  Most organizations do not [sufficiently] appreciate their customer experience. Customer Experience. It is what happens for or  Neither do they proactively and in detail manage the to your customers as Customer Experience throughout the Cycle of Service. they learn about your company, try and then buy  Successful Customer Experience Management starts your product or service, with mapping and detailed analyses of all customer contact get help, and share ideas. points - “Moments of Truth”. www.customerfocusconsult.com
  • 5. Customer Experience Management If you haven’t identified the  The operational silos take over in determining what they’re going to do to opportunities that exist to the customer and when. impact your customer’s  The customer experience happens by default…the outcome of the collision experience, then you can’t of your silos’ interactions with the customer. manage it.  The “Moments of Truth” enlighten the organization to understand the stages There are sound reasons for that form their interaction with their customers. pushing people together to  They push the organization to create a common language and framework for create a common language to understanding of the touch points with the customer that cross the organization. define the stages of customer  The identification of the “Moments of Truth” inspires creativity by opening interaction and the people’s minds to thinking through what should be delivered at key “Moments of Truth” which intersections with a customer to deliver valued and memorable experiences. define the customer  The process of identifying the “Moments of Truth” drives awareness about experience. They’re valuable where a company can impact a customer relationship and customer in driving operating strategy profitability. and climbing the customer  The “Moments of Truth” burst across the silos and push the silos to work service curve towards together in the optimum delivery of the experience. Building an operating increasing customer loyalty plan for the execution of the key “Moments of Truth” clarifies the organi- zational and operational hand-offs where so much customer dissatisfaction and profitability. and defection occurs today (Leaky Barrel). www.customerfocusconsult.com
  • 6. “Moments of Truth” Create the Customer Experience Managed successfully, Moments of Truth help create a positive perception of Service Moments of Truth happen … Quality — an “experience” Every time a customer comes into contact with your organization or a “feeling.” During contacts in person, by phone or other means But, each Moment of Truth is also a potential Planned and unplanned failure point, a negative During service as expected experience that can make the customer decide to During service recovery defect to a competitor. Moments of Truth need to “Manage the dickens out of those unique, never-to-be be well understood and repeated opportunities to distinguish ourselves in a managed proactively and memorable fashion from each and every one of our intensely to climb the competitors.” customer service curve. — Jan Carlzon, President, Scandinavian Airlines Systems (SAS) www.customerfocusconsult.com
  • 7. Managing your Cycle of Service for Detail Chronology of Moments of Truth and other factors which influenced dealers’ Service Quality perceptions of a cellular telephone company Most organizations Issuing Credits Sales Calls do not [sufficiently] appreciate their Service Order Generation Moments of Truth. Other Factors Influencing Neither do they Service Delivery: proactively and in Returns •Management Style Issues Order Processing detail manage the Order Generation •Distribution Channel Issues Customer Experience •Systems Issues •Marketing Services throughout the •Telephone and Paging Collecting Back Orders Cycle of Service. Invoicing Credit Approval Moments of Truth Delivery Order Picking www.customerfocusconsult.com
  • 8. Managing Internal Service the Same Way Simplified chronology of Moments of Truth and other factors which influenced employees’ Service Quality perceptions of an IT Help Desk Most organizations do not [sufficiently] apply the same Closing Ticket Experiencing customer service Other Factors Influencing Service a Problem Delivery: discipline internally “Headcount” Large # of V.I.P.s as they do externally. XYZ Software Capabilities This is vital for key Order Generation Customer Service Skills Training Managing Customer Expectations internal service Service Level Agreements Knowledge Management providing functions, “Quantity over Quality” “Treadmill/Burnout” such as: IT, HR and Solving Problem Calling Help Desk Finance. Moments of Truth www.customerfocusconsult.com
  • 9. Climbing the Customer Service Curve Through the Customer Experience Workshop The Customer Experience Workshop is a hybrid of a Moments of Truth typically focus group and a brainstorming session — with a appear on or near the front-line focus on the customer experience (outside-in). of organizations. Involving those employees means that practical, customer-focused service improvements will be suggested and implemented. The Customer Experience Workshop Provides… Chronological Inventory of Moments of Truth in a Cycle of Service The workshop involves front- line employees from a cross- Customer-Focused Definitions of Excellent versus Bad Service Experience section of business functions in Pragmatic Ideas for Changing Bad to Excellent Service Experiences the open and honest exchange Opportunities for setting standards and measures of ideas. Management is not Identification of Non-Value Added Activities included and all input is kept Identification of (Organizational) Barriers to Improving Service Quality confidential. www.customerfocusconsult.com
  • 10. The Customer Experience Workshop Provides High Value-for-Fees A Customer Experience Workshop: I guarantee a value-packed Improves both external and internal Customer Experiences through written report and verbal Understanding and Analysis of Moments of Truth presentation full of Identifies Short- and Long-Term Service Quality Improvement pragmatic improvement Opportunities opportunities and Brings the Voice of the Customer in Key Business Processes strategic recommendations. Promotes Cross-Functional Cooperation and Interdepartmental Communication These are based on my Kick-Starts, Feeds, or Accelerates a Continuous Improvement Process Creates an Agenda for a Service Quality Improvement Council or extensive consulting Task Force experience in managing Provides Input for Designing Qualitative and Quantitative Customer Service Quality issues in a Satisfaction Research Tools wide variety of industries Provides Input into Questionnaire Design for Customer Surveys and and companies. Relationship Reviews www.customerfocusconsult.com
  • 11. Credentials Eric Fraterman Extensive international customer-focus consulting experience: Clients who have benefited from the  Customer-Focus Strategy Planning, Customer Experience Workshop: Deployment/Alignment  Customer Satisfaction, Employee and Building Materials Engineering Consulting Firm Supplier Research Performing Arts (Not-For-Profit) Mutual Funds  Key Customer Relationship Reviewing Cellular Telephones Advertising Media Services  Total Quality/Service Management Life Insurance Charitable Organizations  Service Quality Diagnostics Hospital (External & Internal) Law firm  Front-line Service Quality Improvement Computer Distribution Beverage Packaging  Internal Service Quality Improvement Computer Service Equipment Rental  Leadership Values Path Development IT Department (internal) Country Club  Customer-Focused Organization Design Finance Department (Internal) Alcoholic Beverages  Quality Function Deployment HR Department (Internal) Software Electrical Contractor www.customerfocusconsult.com
  • 12. Free Phone Consultation & Self Assessment  Book a free phone consultation and click here.  Conduct a simple self assessment of where your transactional service fits on the S-Curve and click here.  For more information about my services visit www.CustomerFocusConsult.com . www.customerfocusconsult.com