Tailoring a Balanced Scorecard for your Customer Service
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Tailoring a Balanced Scorecard for your Customer Service Offering that Strengthens your Brand Bruce D. Temkin VP & Principal Analyst Forrester Research April 13, 2010 What Distinguishes The Worlds Best Brands? Source: Interbrand’s Best Global Brands 2009 What Distinguishes The Worlds Best Brands? Did anyone say average handle time? Source: Interbrand’s Best Global Brands 2009 Customer Service Is More Than A Cost... …It’s A Moment Of Truth That Shapes Your Brand! How important are the following factors in your decision to do business with these firms? Banks 58% Insurance providers 74% Medical insurers 68% Retailers Investment firms Hotels 78% 58% 72% Credit card providers Internet service providers 75% 73% Airlines 75% Wireless service providers 72% TV service providers 73% PC manufacturers Low prices 66% Base: US online consumers Source: Forrester’s North American Technographics™ Q4 2008 Customer Experience Online Survey How important are the following factors in your decision to do business with these firms? Banks Insurance providers 74% Medical insurers Hotels Credit card providers Internet service providers Airlines Wireless service providers TV service providers PC manufacturers 58% 87% 86% 68% Retailers Investment firms 89% 58% 85% 78% 84% 72% 83% Good customer service Low prices 82% 75% 82% 73% 82% 75% 82% 72% 80% 73% 77% 66% Base: US online consumers Source: Forrester’s North American Technographics™ Q4 2008 Customer Experience Online Survey We examined satisfaction across four key customer touchpoints We examined satisfaction across four key customer touchpoints Net satisfaction rates: satisfied consumers minus dissatisfied consumers Airlines Banks Credit card providers Health insurance plans Hotels Insurance providers Internet service providers Investment firms Parcel delivery/shipping firms PC manufacturers Retailers TV service providers Utility providers Wireless service providers Research product or service Purchase product or service Use product or service Get customer service 76% 65% 61% 54% 82% 71% 58% 77% 78% 73% 82% 58% 57% 68% 77% 69% 67% 60% 87% 75% 62% 82% 77% 74% 81% 64% 62% 70% 81% 74% 73% 68% 88% 76% 75% 82% 80% 77% 85% 69% 69% 73% 76% 60% 61% 53% 80% 67% 60% 78% 77% 69% 79% 55% 53% 64% Source: North American Technographics® Customer Experience Online Survey, Q4 2009 We examined satisfaction across four key customer touchpoints Net satisfaction rates: satisfied consumers minus dissatisfied consumers Lowest satisfaction for industry Airlines Banks Credit card providers Health insurance plans Hotels Insurance providers Internet service providers Investment firms Parcel delivery/shipping firms PC manufacturers Retailers TV service providers Utility providers Wireless service providers Research product or service Purchase product or service Use product or service Get customer service 76% 65% 61% 54% 82% 71% 58% 77% 78% 73% 82% 58% 57% 68% 77% 69% 67% 60% 87% 75% 62% 82% 77% 74% 81% 64% 62% 70% 81% 74% 73% 68% 88% 76% 75% 82% 80% 77% 85% 69% 69% 73% 76% 60% 61% 53% 80% 67% 60% 78% 77% 69% 79% 55% 53% 64% Source: North American Technographics® Customer Experience Online Survey, Q4 2009 Customer service across generations Net customer service satisfaction rates Source: North American Technographics® Customer Experience Online Survey, Q4 2009 Top 25 companies for customer service Net customer service satisfaction rates Source: North American Technographics® Customer Experience Online Survey, Q4 2009 How would you describe your firm's goal for customer experience? Differentiate ourselves from all firms across any industry 13% Differentiate ourselves from competitors in our industry 67% Maintain parity with other leaders in our industry 13% Keep from falling too far behind leaders in our industry 4% Stay in the mainstream in our industry 3% Stay slightly behind the mainstream in our industry 80% 0% Base: 141 North American companies with $500 million or more in revenues Source: Forrester's Q4 2009 Customer Experience Peer Research Panel Survey The basic economics… “Do what you do so well that they will want to see it again and bring their friends.” - Walt Disney Sources: Wikipedia Customer experience affects loyalty Customer experience laggards (Bottom quintile) Customer experience leaders (Top quintile) Willingness to buy more products -9.0% 17.2%+8.2% Reluctance to switch -7.4% 14.8%+7.4% Likelihood to recommend -7.7% 16.3%+8.6% (Percentages are relative to industry averages) Source: North American Technographics® Customer Experience Online Survey, Q4 2009 Three questions drive Forrester’s Customer Experience Index (CxPi) Forrester’s 2010 Customer Experience Index 1 2 3 4 4 6 7 7 7 7 7 7 7 14 14 14 14 18 18 18 21 21 21 24 24 24 27 27 28 28 28 28 28 Barnes & Noble Marriott Hotels & Resorts Hampton Inn/Suites Amazon Holiday Inn Express Kohl's Costco BJs Wholesale Club Comfort Inn Credit unions Hilton Hotels JCPenney Macy's eBay Lowe's SunTrust Bank Target Borders Sam's Club Vanguard Best Buy USAA Walgreens CVS Home Depot Sears FedEx Southwest Airlines Fifth Third ING Direct Liberty Mutual Old Navy Toys 'R' Us 28 35 35 35 35 35 40 40 42 42 42 42 46 46 46 49 49 49 49 53 53 53 53 57 57 57 57 57 62 63 63 63 66 UPS American Express Apple JetBlue Airlines Other full-service brokerage United States Postal Service Charles Schwab Kmart Progressive The Hartford US Bancorp Wal-Mart Courtyard By Marriott iTunes Staples Edward Jones Morgan Stanley Smith Barney State Farm Visa A credit union Continental Airlines Marshall's Office Depot AAA American Family Farmers' Insurance Geico MasterCard Hewlett-Packard An independent insurance agent Fidelity Investments Wachovia Bank ComEd 66 66 66 66 71 71 71 71 75 75 75 75 79 79 79 79 79 79 85 85 85 85 89 89 89 92 92 92 95 95 97 97 97 97 Discover Florida Power & Light Company Holiday Inn National City Allstate Cablevision Merrill Lynch Toshiba Kaiser MetLife TracFone Travelers Acer AT&T Delta Airlines DirecTV T-Mobile Verizon Wireless Alltel AT&T Wireless Humana United Airlines/Ted Citizens Compaq PG&E AT&T National Grid Nationwide Cox Communication Road Runner American Airlines AOL Dell Duke Energy 97 102 102 104 105 106 106 106 106 106 106 112 113 113 113 113 117 118 119 119 121 121 123 123 125 126 126 128 129 130 131 132 133 Source: North American Technographics® Customer Experience Online Survey, Q4 2009 Verizon Medicare Sprint Wells Fargo Chase American Electric Power Bank of America Capital One Citibank Cox JP Morgan Chase Dish Network/Echostar Capital One/North Fork Bank Northwest Airlines Other Cable TV provider Time Warner Cable Bank of America Wells Fargo Blue Shield of California Washington Mutual Citigroup US Airways/America West CIGNA Qwest Comcast Aetna Comcast HSBC Anthem Medicaid United Healthcare Charter Communications Charter Communications Forrester’s 2010 Customer Experience Index 1 2 3 4 4 6 7 7 7 7 7 7 7 Barnes & Noble Marriott Hotels & Resorts Hampton Inn/Suites Amazon Holiday Inn Express Kohl's Costco BJs Wholesale Club Comfort Inn Credit unions Hilton Hotels JCPenney Macy's 14 14 14 14 18 18 18 21 21 21 24 24 24 27 27 28 28 28 28 28 eBay Lowe's SunTrust Bank Target Borders Sam's Club Vanguard Best Buy USAA Walgreens CVS Home Depot Sears FedEx Southwest Airlines Fifth Third ING Direct Liberty Mutual Old Navy Toys 'R' Us 28 35 35 35 35 35 40 40 42 42 42 42 46 46 46 49 49 49 49 53 53 53 53 57 57 57 57 57 62 63 63 63 66 UPS American Express Apple JetBlue Airlines Other full-service brokerage United States Postal Service Charles Schwab Kmart Progressive The Hartford US Bancorp Wal-Mart Courtyard By Marriott iTunes Staples Edward Jones Morgan Stanley Smith Barney State Farm Visa A credit union Continental Airlines Marshall's Office Depot AAA American Family Farmers' Insurance Geico MasterCard Hewlett-Packard An independent insurance agent Fidelity Investments Wachovia Bank ComEd 66 66 66 66 71 71 71 71 75 75 75 75 79 79 79 79 79 79 85 85 85 85 89 89 89 92 92 92 95 95 97 97 97 97 Discover Florida Power & Light Company Holiday Inn National City Allstate Cablevision Merrill Lynch Toshiba Kaiser MetLife TracFone Travelers Acer AT&T Delta Airlines DirecTV T-Mobile Verizon Wireless Alltel AT&T Wireless Humana United Airlines/Ted Citizens Compaq PG&E AT&T National Grid Nationwide Cox Communication Road Runner American Airlines AOL Dell Duke Energy 97 102 102 104 105 106 106 106 106 106 106 112 113 113 113 113 117 118 119 119 121 121 123 123 125 126 126 128 129 130 131 132 133 Source: North American Technographics® Customer Experience Online Survey, Q4 2009 Verizon Medicare Sprint Wells Fargo Chase American Electric Power Bank of America Capital One Citibank Cox JP Morgan Chase Dish Network/Echostar Capital One/North Fork Bank Northwest Airlines Other Cable TV provider Time Warner Cable Bank of America Wells Fargo Blue Shield of California Washington Mutual Citigroup US Airways/America West CIGNA Qwest Comcast Aetna Comcast HSBC Anthem Medicaid United Healthcare Charter Communications Charter Communications ! Consistently delivering on brand messages that resonate with customers What gets in the way of providing great customer service? Reinforce brands with every interaction Making promises Communicate image Deliver value Keeping promises TV ad Radio ad Print Paper Email ad mail Web site Store Kiosk IVR Call Product center Company brands get lost in translation Firms that agree with these statements Base: 141 North American companies with $500 million or more in revenues Source: Forrester's Q4 2009 Customer Experience Peer Research Panel Survey Staples lives up to its brand: “That was easy.” • Studies customers in their homes and offices to see how they buy and use office supplies • Re-designed the rebate process to eliminate customer pain – 55% of people said they’d make Staples their primary provider because of its rebate experience • Signed labor agreements with pilots and flight attendants • Rolled out “North of Expected” campaign • Employee road show 10 weeks before external campaign • Workgroups interpreted what the branding meant to them • “Be North of Expected” contest Companies are from Venus, customers are from Mars Companies • High company knowledge • High interest in topic • Varied understanding of customers • Politics • Egos Customers • Needs • Desires • Interests • Knowledge Most companies operate like this… Companies • High company knowledge • High interest in topic • Varied understanding of customers • Politics • Egos Customers • Needs • Desires • Interests • Knowledge “It’s like looking in the mirror. When I looked at our organization based on our internal data, I saw Brad Pitt…” - SVP of Sales And Service, Large P&C insurer “.. But when I looked at the customer feedback data we looked more like the hunchback of notre dame.” - SVP of Sales And Service, Large P&C insurer Companies need to operate like this… Companies Customers We need more customer service metrics oriented around customers How do you create more balanced customer service scorecards? Balance your scorecard across three areas 1. Cost and operational efficiency 2. Staff effectiveness and engagement Balance your scorecard across three areas 1. Cost and operational efficiency 2. Staff effectiveness and engagement 3. Customer brand loyalty Four steps for infusing customer brand loyalty into your scorecard 1) Articulate your customer promises • Define your core brand attributes • For each interaction type, identify the customer reactions that would live up to those attributes –Satisfaction, ease of use, empathetic, etc. Identify customer promises in 5 areas: Communication Accountability Responsiveness Empathy Solution Source: Customer Experience Matters (experiencematters.wordpress.com) Four steps for infusing customer brand loyalty into your scorecard 1) Articulate your customer promises 2) Create customer feedback metrics • Design end execute short customer surveys • Share results with reps • Define specific metrics and targets Four steps for infusing customer brand loyalty into your scorecard 1) Articulate your customer promises 2) Create customer feedback metrics 3) Reinforce customer-centric behavior • Celebrate customer-centric leaders • Coach customer-centric laggards • Identify agent best practices • Refine quality monitoring for best practices Four steps for infusing customer brand loyalty into your scorecard 1) Articulate your customer promises 2) Create customer feedback metrics 3) Reinforce customer-centric behavior 4) Adjust incentives for balance between efficiency and customer-centric behavior – Create specific targets for customer-centric goals – Define acceptable bands for efficiency goals – Review performance on a 2x2 grid (efficiency and customer-centricity) Does Your Customer Service Reinforce Your Brand? Thank you! Bruce Temkin +1 617.613.6044 btemkin@forrester.com Twitter: @btemkin www.forrester.com Blog: Customer Experience Matters http://experiencematters.wordpress.com
