Maximizing Customer Loyalty and
Profitability
Mariano Legaz
Florida Region President
Verizon Wireless
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Maximizing Customer Loyalty & Profitability
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
Postpaid Churn
Verizon
AT&T
Sprint
T-Mobile
3%
2%
1%
0%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Sources:
- Wireless Carrier Quarterly Reports
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
Prepaid % of Subscriber Base
W Europe
CE Europe
N America
CL America
Asia-Pacific
M East & Africa
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source:
- Strategy Analytics 2015 (Wireless Operator Strategies (WOS) Strategic Advisory Service
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
Year on Year Wireless Total Revenue Growth
Verizon
AT&T
Sprint
T-Mobile
50%
40%
30%
20%
10%
0%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
-10%
Sources:
- Wireless Carrier Quarterly Reports
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
EBITDA Margins
Verizon
AT&T
Sprint
T-Mobile
50%
40%
30%
20%
10%
0%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Sources:
- Wireless Carrier Quarterly Reports
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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CRM Lifecycle
Success
Starts well
before the
sale
ONBOARDING
First 30 Days
CULTIVATION
In Contract / Device Plan
Out of Contract /
No Device Plan
New customer
introduction to VZW
Stimulate usage of
existing products and
services
CHURN REDUCTION
Expiring
Contract /
Installment
Post Contract /
Installment
Proactive actions to
reduce churn and
respond to bells of churn
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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The Service-Profit Waterfall
Employee Engagement
Retention & Productivity
Customer Satisfaction (NPS)
Customer Loyalty
Revenue & Profit
Adapted from The Service-Profit Chain, Heskett, Sasser & Schlesinger
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
Verizon Credo….
…“We focus outward on the customer, not inward. We make it
easy for customers to do business with us, by listening,
anticipating and responding to their needs. We know our
products and can explain them to customers. We focus on
fundamental execution. We are accountable and we follow through
with a sense of urgency. We know that having the highest ethical
standards is a competitive advantage.”…
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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It starts well before the sale…
Three Types of Employee Engagement:
1. Actively Engaged ( typically 17-29% of employees)
•
employees that you build your organization around and are the ones that help take your
organization to the next level.
•
According to a recent Gallup poll, world class businesses that make money and exhibit
low company turnover, and among other things have engaged employee to disengaged
employee ratios of about 9.6:1, as opposed to a disappointing 1.8:1 for the average
business.
2. Unengaged ( typically 50%)
•
like their jobs and may be good at them, but they don’t really care much about the
company’s goals (often because they have no idea what they are).
3. Actively Disengaged – (17-29%)
•
•
employees who go to work just to get their paychecks
cost American companies an estimated $300 billion annually in lost productivity
Sources:
- theproductivitypro.com article 00135
- gallup.com / businessjournal / 166667/ five ways improve employee engagement
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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ENGAGEMENT
A heightened
EMOTIONAL AND INTELLECTUAL CONNECTION
that an employee has for
his or her job, organization, manager or co-worker
that in turn influences him or her to apply
additional discretionary effort
to his or her work.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Facts
High-Engagement Companies Achieve:
• 87% less likely
to leave the
organization
Retention
• 8X the number
of employees
exerting
highest level
of effort
• 86% higher
levels of
customer
satisfaction
Discretionary
Effort
Customer
Satisfaction
…Over Low-Engagement Companies
Source: CLC Survey of 59 Organizations, 50,000 Employees Worldwide
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Levels of Engagement...
from A Customers Viewpoint
Actively Engaged
“He appreciated that I knew what I wanted and did not try to talk me out of it. PLUS, he actually
heard my objections and was able to meet my needs perfectly. Really happy with the
transaction AND the service. Thanks! I actually usually travel a good distance to this particular
store just for the service. Has always been EXCELLENT!”
Unengaged
“Online reviews from multiple sources were different than representatives personal opinion. Felt
a little like being sold a product that was there rather than being given honest answer. We
are not thrilled with what was purchased, but it will do.”
Actively Disengaged
“Went back to the store with questions regarding the bill I have already received with items on it
that were not explained to me. Bill is $70.00 higher then what was told to me. The girl that
talked with me was not professional at all and I don’t like being patronized or talked to the
way she did. Nothing was solved . I walked in calm and walked out angry. I will not return to
that store and will look at a way to find service with another company.”
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
Engagement is driven by a number of interrelated factors including:
o Employee confidence that they can do their job properly
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Being allowed to do so with minimal oversight
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Ongoing communication and feedback from management, especially
in terms of conveying information and congratulating good work
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Access to training and career development
o Opportunities for Growth
Sources:
- theproductivitypro.com article 00135
- gallup.com / businessjournal / 166667/ five ways improve employee engagement
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o A clear understanding of the company’s goals, and why
employee contributions matter
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Trust in the company and its integrity
o Pride in the company, and their place in it
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Opportunities to work in a team environment
o Relationships with team members and other co-workers
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Engaged Employees – Key Factors
o Presence of a confident, competent, and (most importantly)
supportive manager who can lead by example
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Key Drivers of Employee Engagement
Source: TalentKeepers Employee
Engagement Model, © 2011.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Current Engagement level?
How would you describe your
team’s engagement?
What can you do or have you done
to improve their engagement?
What is the single biggest obstacle
that gets in your way in improving
employee engagement?
How are engagement efforts
reflected / measured in your
Customer Satisfaction metrics?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximizing Customer Loyalty & Profitability
65%
25%
are likely to speak about a
negative experience
are likely to speak about a
positive experience
It costs almost 6 times as much to acquire a new customer
as it does to retain a current one.
98%
of Customers that churned,
discussed their issue with a
rep
90%
of Customers who left were
not offered a Save tool or
incentive to stay
Sources:
• Harvard Business Review: Stop Trying to delight your Customers July 7, 2010
• gallup.com / businessjournal / 166667/ five ways improve employee engagement
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Thank You
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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