Module 6: Customer Experience

Customer Experience vs. Customer Satisfaction

Customer Satisfaction is key right? Well, not exactly. It’s definitely one of the key ingredients, but how you bring your service to market is complex, so we’ll go over it here.

By the end of this lesson, my hope is that you will have a few lightbulbs turning on about how to look at your customer experience, a few (or many) changes to make, and you’ll soon start cultivating an army of clients that would bend over backward to continue doing business with you (Not that they’ll ever have to).

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
— Warren Buffett

OUTLINE

  1. Definitions

  2. Engagement

  3. Motivation Versions

  4. Leadership Models

  5. Decentralization

  6. Summary Conclusion & Homework



Customer Experience

Customer experience. What is it?

It’s a combination of everything about your business that a customer experiences, to include both Proactive and Reactive solutions, as well as need and want based solutions. A positive Customer Experience leaves the customer with a feeling that they have been well cared for and they will publish their experience with anyone who will listen.

Customer Experience is commonly defined as a proactive system. Being empathetic to your client’s unique position, connecting with their family, and thanking them for being a loyal customer. Being pre-emptive depends on the industry and the level of client. There’s a level of care for a credit card company gives to their black card VIP members that it simply doesn’t to the people with a secured $300 limit credit card.

I’m sure I’ll get a pro-flowers email about valentines day since my mother’s birthday is February 14th and I always spend money on flowers each year. They’re being proactive and sending that email or phone call before I have a chance to shop for flowers elsewhere, but they’re also helping me solve a problem before it even reaches my “desk”.

Is there something that you do for your clients that helps them solve problems before they even appear on the client’s radar?

Exercise Worksheet

Pick 5 of your favorite places to go or patronize. These are those places that attract you back time and time again. These are also the places that you would give a stunning 5 star review if someone asked about them. These places could be something as big as Wal-Mart, or as small as a local restaurant. This could also be a product, you buy the newest version of a brand name TV or love a certain brand of shirt.

Why is it that you go there or why do you buy that? Write down those things that business does exceptionally well that brings you back and gets you sending clients their way.

BONUS - Don’t say “customer service”. Narrow it down a bit. What in particular about their customer service is spectacular?

After completing that exercise, let’s look at your answers.

Do you see any trends?

Let’s look at some of the ways you may be able to categorize your answers.

 

Customer Journey

Each business has a series of processes to deliver goods through the operations side of things, but what about the customer’s interaction with that process? This is called the customer’s Journey. There are archetypal Hero’s Journey connotations here, where the “call to adventure” may be that there’s a problem that the client needs solving. They may refuse that it’s a problem, but they run into your business, the mentor. They cross the threshold of starting the journey and so on. More practically, they’re meeting your business in instances we will call touch-points. Each occurrence of these touch points take part in the overall customer’s journey.

Your goal is to lead the customer to the best solutions for them. You (or your sales team) are the sherpa on the trail of your product and service line, you know every fork in the road, so what are they for your company?

Discovering what journey your customer travels to get your product or service is essential to understanding where the touch-points are in your business-client relationship.

Some Companies find it extremely beneficial to visualize the customer journey into a customer journey map.

Customer Journey Map

 

Touch Point Analysis

Customer Touch Points are defined above as your brand's points of customer contact, from start to finish. When we look at an assembly line of Raw Materials to Finished Product, we can analyze that using Rolled Throughput Yield. If you’re having problems in one area of a customer interaction, it could affect the entire chain of events that the customer experiences.

EXAMPLE

A client looks on google for your product, finds your website, loves what you seem to have to offer. The customer calls into the easy to use 1-800 number you have set up and schedules a sales appointment with a live customer service agent. The day of the appointment comes and the sales consultant is timely and knowledgeable about the product offering. Your sales consultant makes a sale, has the papers signed, and even tells the client exactly when their product will arrive. The client is relieved that a problem they currently have will soon be solved. They’ve had a wonderful experience.

The delivery driver then kicks their box off the truck while driving 50 miles per hour down their neighborhood road. Everything in the package shatters.

**Bing** “Your package has been delivered, the card on file has been charged” comes across the client’s phone as a text message.

Each touch-point is very powerful in the mind of the client. Utilizing the Rolled Throughput Yield calculation can give you an overall look at how your process is doing, but let’s look at a few possible touch-points of your business that may be evaluated.

RTY Survey and Data Analysis

OK - We’re going to do math here… it’s just arithmetic actually, but who’s counting?

Rolled throughput yield is a simple enough calculation, but it starts with data and because we’re analyzing a few more metrics than an assembly line it can seem burdensome. You’re going to have to ask your clients the tough questions in a rating scale type close ended style.

Rolled throughput yield (RTY) calculates the probability of this process producing a defect free product.
Rolled throughput yield loss (RTYL) calculates the probability that this process produces a defect.

In layman’s terms, if 100 customers go through this process, how many will be satisfied pleased or overwhelmed with joy. Whatever your threshold, you’re looking to meet that criteria here.

Let’s look at a threshold of “met my needs” with the following scale:

1 - Displeased
2 - Did not Meet My Needs
3 - Met My Needs
4 - Exceeded My Needs
5 - Pleased

When a survey participant selects a 3 or higher, the threshold is met so a 3 should be calculated as a 100%.

Out of 1000 clients surveyed 902 gave a 3 or higher, 70 gave a 2, and 28 gave a 1.

the calculation would be as follows ( (1x902)+(.5x70)+(0x28) ) / 1000 = .937 or 93.7%

Now if you had a threshold of Pleased, you may value that 5 is 100, Exceeded my needs is valued at .75, met my needs is valued at .5 and so on.

Breaking that 902 into sections of 5-599, 4-204, and 3-99, you may have a touch point grade of 81.9%


That being one Touchpoint, if you do this calculation on each touch point you’ll come up with your grade on each touchpoint.

The RTY calculation is AxBxCxDx... = Total Touch-Point Customer Satisfaction Yield.

For Example: RTY = 0.97 x 0.98 x 0.94 x 0.72 x 0.99 = .63
RTYL = .37

Outliers

You’re never going to satisfy all customers. That’s the nature of business. However, not including the nay-sayers doesn’t help you improve. Maybe they had a bad experience, correct it for next time. If you look at them as statistical outliers and discount their credibility, you are potentially losing out on improving your process for a new customer to experience.

That being said, you may want to discount all five star and zero stars by only valuing the 2-4 answers. You can play around with what works for your business, but keep in mind, a bigger sample size renders more accurate results. If you’re dealing with thousands of clients monthly, you may want to clip your outliers; If you’re dealing with 20, every survey counts.

 

Collecting Data

There are several survey options out there, and there are some links in the additional resources section below, but let’s talk about overall survey techniques. We want to look at structure of your survey, and the questions therein.

Structure

Think about how your customers will experience taking your survey as part of the customer experience or customer journey. How you preface and phrase the questions of your survey has a lot to do with how you will get unbiased and truthful answers.

Keeping your survey long enough to get the metrics you need while keeping it short enough that people don’t just get bored or irritated and quit before submitting is hard. Some companies survey small sample sizes on a few questions, and another small sample on another set of questions entirely. You may be unable to do this, but it’s worth noting.

Here’s a few short Structure Tips:

Be Specific - Get as much information as you need but don’t over-do-it. Surveys are boring, make it specific to their purchase and to your goals for data collection.

Have a goal for what data you want to collect before you create your survey. Knowing where you are going will give you serious clues about how to get there.

Keep it Anonymous because survey takers are more likely to be honest and truthful while taking the survey. They typically feel like there’s no reward or punishment and are just giving their honest opinion.

Understand that the “How likely are you to recommend us to a friend or family member” (or “friend or colleague”) question is highly predictive and measurable.

It shows your NET PROMOTER SCORE

Net promoter score is promoters minus detractors: (P-D)=NPS

  • It’s predictive of future stream of profit showing the growth of your business

  • It is one question and easy for customers

  • It allows benchmarking yourself - benchmark against other companies.

  • It’s actionable - you can find those customers that are detractors and move them to passives and passive to promoters by acting. Ask WHY? To improve your score you isolate your detractors and make changes in your business.

 

Summary Conclusion

Take a look at your customer’s journey, find the touch-points, collect data on the satisfaction your client’s have with those particular touch points, analyze where you currently are, focus on those areas that need the most improvement, and act towards implementing a vision and strategy for your continued customer satisfaction.


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Cory Myres - Lubbock Consulting

Cory Myres is a serial entrepreneur and wine connoisseur. A Lubbock Texas Native, he enlisted in the US Army shortly after graduating from Coronado High School. After a tour in Afghanistan, with the famed 101st Airborne Division he returned to Lubbock Texas to attend Texas Tech University. As a Red Raider he studied Architecture, Civil Engineering, Statistics, Economics and Graduated from the Rawls College of Business Administration with a Bachelors of Business Administration in Management with a focus on Entrepreneurship. From then he went on to become certified in Six Sigma as a Black Belt, and Project Management Professional in order to found his business consulting firm, Lubbock Consulting.