Understanding Customer

Experience

Presented by : Thu Doan

Tae-woong Park
Introduction

 Customer experience encompasses every aspect of a

company’s offering—the quality of
 Customer care

 Advertising

 Packaging

 Product and service features

 Ease of use

 Reliability
 Introduction
 Why is Customer experience important?

 In situation that consumer have a number of choice, more complex, and more
channel to purchase, and that increasing global, customer satisfaction become
more and more important.

 Customer satisfaction is essentially the culmination of a series of customer

experiences or the net result of the good ones minus the bad ones.

 It occurs when the gap between customers’ expectations and their subsequent
experiences has been closed Customer care.
 Introduction
 Some companies don’t understand why they should
worry about customer experience.

 Others have been trying to measure customer

satisfaction and have plenty of data.

 The problem, however, is that measuring customer

satisfaction does not tell anyone how to achieve it.

 How to create the quality of customers’ experience.

What customer experience is

 Customer experience is the internal and subjective

response customers have to any direct or indirect
contact with a company.

 Direct contact generally occurs in the course of purchase, use,

and service and is usually initiated by the customer.

 Indirect contact most often involves unplanned encounters with

representations of a company’s products, services, or brands
and takes the form of word-of-mouth recommendations or
criticisms, advertising, news reports, reviews, and so forth.
What customer experience is

 The secret to a good experience isn’t the multiplicity of features on offer.

 A successful brand shapes customers’ experiences by embedding the

fundamental value proposition in offerings’ every feature.

 Not all touch points are of equivalent value.

 People’s expectations are set in part by their previous experiences with

a company’s offerings.

 Good design makes both the most routine and the weightiest customer
experiences.

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Why the neglect

 Too much money already lavished on CRM.

 Lack of attunement to customers’ needs.

 Fear of what the data may reveal.

 CEM Versus CRM
What When How Who Uses the Relevance to
Monitored Information Future
Performance
Customer Captures and At points of Surveys, Business or Leading: Locates
Experience distributes what customer targeted functional leaders, places to add
Management a customer interaction: studies, in order to create offerings in the
(CEM) thinks about a “touch points” observational fulfillable gaps between
company studies, expectations and expectations and
“voice of better experiences experience
customer” with products and
research services
Customer Captures and After there is Point-of-sales Customer-facing Lagging: Drives
Relationship distributes what a record of a data, market groups such as cross selling by
Management a company customer research, Web sales, marketing, bundling
(CRM) knows about a interaction site click field service, and products in
customer through, customer service, in demand with
automated order to drive more ones that aren’t
tracking of efficient and
sales effective execution

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 Tracking customer experience
Pattern and Purpose Owner Data Collection Collection and Discussion and
Frequency and Scope Analysis Action Forums
Methodology
Past Patterns: Captures a recent Central Persistent: >Web-based, in-person, > Analyzed within functions,
experience. group or > Electronic surveys linked to or phone surveys central survey groups, or
> Intended to improve transactional functions high volume transactions or an > User forums and blogs both
experiences ongoing feedback system > Cross-functional issues
>Tracks experience goals and trends > Automatically triggered by the directed to general
> Assesses impact of new initiatives completion of a transaction managers
> Identifies emerging issues > Focused, short-cycle, timed > Strategic analysis and
Examples: Post-installation or data collection actions directed by general
customer service follow-up, > Feedback volunteered by users managers
new-product-purchase follow-up in online forums

Present Patterns: Tracks current Central Periodic: >Web-based surveys > Initial analysis by
relationships and experience issues with group, > Quarterly account reviews preceded by preparation sponsoring group
an eye toward identifying future business > Relationship studies in person > Broader trends and issues
opportunities. units, or > User experience studies > Direct contact in forwarded to general
> Keeps a consistent yet deeper watch functions > User-group polling person or by phone managers’ strategic and
on state of relationship and other factors > Moderated user operating forums
> Looks forward as well as backward forums > Deeper analysis of
> Used with more critical populations and > Focus groups and emerging issues at the
issues other regularly corporate, business unit, or
Examples: Biannual account scheduled formats local level
reviews, “follow them home”
user studies

Potential Patterns: Targets General Pulsed: > Driven by specific > Centered within
inquiries to unveil and test management > One-off, special purpose customers or unique sponsoring group,
future opportunities. or functions driven problems with coordination by
Examples: Ethnographic design > Interim readings of > Very focused and support from
studies, special-purpose market trends > Incorporates existing central group
studies, focus groups knowledge of customer
relationship

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Obtaining the right information
 Most companies apply a single summary metric to data on past and present
patterns.

 As relationships with customers deepen, companies tend to collect data

with greater frequency.

 Low cost and ease of modification make surveys the overwhelming favorite
for measuring past and present patterns.

 A well-designed survey is not simply one that elicits the desired information.

 Surveys do have their limitations, and focus groups, user-group forums,

blogs, and marketing and observational studies can yield insights that
surveys cannot.

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 Introduction
• A business-to-business global financial services provider
• Nationwide network of local distribution centers, providing a
wide range of office productivity services in a personalized
and eco-friendly way.
• Vision: to create productivity partnerships with clients to save
them time, money and space in their businesses
• Mission: measures progress with clients in key performance
areas, typically: cutting costs, cutting carbon emissions and
productivity improvement.
 Problems
• It was struggling to create a system for managing customer
experience
- Vertical-market groups was only doing tracking leads and
analyzing buying patterns.
- Customer experience was considered as the job of marketing
or sales only
- CEM metric came from a mailed annual customer satisfaction
survey which hadn’t been changed in three years
 Solutions
• Purpose: To improve the experience of all other major
accounts
• Method: “fast prototype” relationship survey of top customers
• Requirements for survey:
- The touch points which disappointed most important
customers
- Customer experience goals for every stage of the value chain
- The needs of an executive leader, a budget, and dedicated
resources.
- Compare responses by location, service platform, and vertical
market
 Solutions (cont’d)
• Survey’s key question:
- How important to your purchasing decision was HiTouch’s
brand and the service promise it seemed to make?
- Do you believe HiTouch delivers the experience promised by
its marketing and sales force?
low scores; good good summary
revenue. Demanding scores; good
decisive intervention revenue.

low scores; low good summary

revenue. To be scores; higher
rescued or potential revenue.
abandoned.
 Solutions (cont’d)
• Finding
- The Growth segment had three times as many customers
- Some of those customers didn’t buy as much as those in other
quadrants
- One of the largest remaining customers was squarely in the
At-Risk quadrant
 Solutions (cont’d)
• Every vertical-market team:
- Showed some customers the findings and described what the
team planned to do about them
- Sent out transaction surveys of customers’ experiences with
service installation and repair
- Set experience goals for itself and scheduled relationship
surveys.
 Defections within each vertical-market group dropped by an
average of 16%.
 Remaining problems
• High-volume transaction information so upset the managers
responsible  never got around to resolving the underlying
issues

 The necessary of integrating CEM and CRM to create a united

system which helps to capture customers’ responses and
react to those responses immediately. Thus, the final purpose
is to enhance long-term relationship with customers.
 Introduction
• Siebel CRM Systems, Inc. was a software company principally
engaged in the design, development, marketing, and support
of customer relationship management (CRM) applications.

• On September 12, 2005, Oracle Corporation announced it had

agreed to buy Siebel Systems for $5.8 billion. Siebel is now a
brand name owned by Oracle Corporation.
 Problems
• A large disparity between actual and expected costs of
ownership of Siebel 6
• Siebel 6 is a sales-force automation tool based on a client-
server architecture
 Solution
• Employees took heart as management placed experience
ahead of revenues  boost satisfaction.
- Marketing - capture the tastes and standards, tailor all
consumer communications accordingly.
- Service operations - ensure that processes, skills, and
practices are attuned to every touch point.
- Product development - identify customer behavior that runs
counter to a company’s expectations and uncover needs that
haven’t been identified.
 Solution (cont’d)
• Information technology - collect, analyze, and distribute CEM
data, integrate the information with that generated by CRM,
and monitor progress must be in place.
• Human resources - put together a communications and
training strategy that conveys the economic rationale for CEM
and paints a picture of how it will alter work and DMP. Setting
policy that customer experience results should affect
compensation but it needs to be considered within an
appropriate situations.
• Account teams - progress from annual surveys to detailed
touch-point analysis, then translate present patterns of
customer experience and issues gleaned from recent
transactions into action plans that are shared with customers.
THANK YOU