Digging Deeper Into Customer Experience Management

Today you’ll be hearing from a guest blogger who I had the pleasure of introducing a few months ago. John Quaglietta has extensive hands-on learning and teaching in the realm of Customer Experience Management (CEM). He has over 20 years of experience as an accomplished leader, customer service & contact center consultant, and as a customer experience visionary. He has worked with the world’s largest organizations in solving some of the most challenging and thought provoking business challenges around customer-centricity, and the effect customer and employee engaged organizations have on both top and bottom line financial success.

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I was fortunate enough to attend an IMT (Instituto Mexico de Teleservices) event in Mexico City. The event was focused on improving customer engagement and experience, and the people, technology, and processes that connect to make it all possible. I was impressed with both the presentations at the event, and the discussions around the topic that took place in the hallways. Everyone was interested and excited about the possibilities.

I was asked to present on best practices & trends in Customer Experience Management (CEM) for the event. Instead of just compiling the usual industry data on CEM, I decided to share what I have been working on the past few years with the audience in Mexico City. I was interested in getting feedback and testing some of my thoughts, and I will say the feedback was very positive.

The last few years have been interesting for me. I have spent time meeting with large, global organizations focused on improving their customers’ experiences. I have listened to their strategies and approaches, pouring over the various definitions of CEM put forth by analysts and others in the industry I have also spent time inspecting the role of various organizations in the CEM discussion(like the contact center for example), and finally, digging deeper into the economics behind what CEM is all about. I have come to a few conclusions that formed the basis for my presentation, and truthfully, a new way of thinking about what this topic is all about. I will blog about each of these individually in the coming weeks. For now, I just want to share with you the construct.

  1. CEM Definition; Everywhere you look, the definition of CEM is all from the customer’s point of view. And rightfully so, after all it is called, “Customer Experience Management”. The various definitions include pieces about the sum of all interactions and experiences a customer has with an organization as they move through the customer journey. I agree. But, what about the organization’s point of view? Why should an organization care about CEM, and how should they think about it? After all, there are 2 sides to this story. I have put forth a supplemental definition for CEM, looking at it from the organization’s point of view. It actually compliments existing definitions which tend to consider it from the customer’s perspective. CEM is the discipline of managing and treating customer relationships as assets, with the goal of moving satisfied customers to loyal customers, and loyal customers to advocates of your brand. In doing so, CEM is ultimately about improving the lifetime value of a single customer or segment of customers, and increasing the duration of the customer relationship as it affects a customer’s lifetime value.
  2. What is CEM all about for organizations? Why should they invest?; It’s actually very simple. As mentioned above, CEM is all about improving the profitability of a customer or segment of customers over the duration of their relationship with an organization. There are 2 dimensions here that matter most. Profitability & duration of relationship. Profitability can be measured in a single year and over the lifetime of a customer using customer lifetime value (CLV). Duration can be measured using retention. As the dimensions increase, a very dramatic and positive effect to an organization’s top line can be seen. There are 4 revenue & cost dimensions that affect customer profitability. Again, more on this in a subsequent blog, and we’ll discuss how to move these levers to positively impact customer profitability & lifetime value using the contact center for example.
  3. A model to manage CEM economics; Given my definition above, and thinking about terms like “discipline” and “manage”, it would seem logical that a framework must be developed to insure organizations stay on the right path and are able to link CEM investment back to top line growth. Over the past 3 years, I have compiled such a model. I call it the CLV framework. This model links technical KPI’s (% application availability as an example), operational KPI’s (Average Hold Time, First Call Resolution, Transfers, as examples) and strategic KPI’s (NPS, Retention Rate as examples) to CLV. The model illustrates how making subtle improvements in technical, operational and strategic KPI’s affect customer profitability. It also provides a means for linking CEM investment to CLV improvement. The model is valuable for many reasons. Probably the most understated value is that it provides people in the organization an understanding of how what they do every day, the things they are measured on, affect customer profitability & growth. It brings everyone along on the CEM journey. Again, we’ll cover this in a lot more detail in an upcoming blog.
  4. The role of the Contact Center; This may upset some people in the contact center industry, but it is my point of view. The contact center is NOT about delivering service or saving a company’s money. At least not when looked at through the lens of CEM. The contact center’s role in CEM is more about “growing & protecting assets”, those assets being customers. In this context, service delivery is a means to an end. Contact centers are thus in the business of asset management, not service management. Furthermore, all of the focus on efficiency & reducing cost is good, but only if it is in the pursuit of efficiently “growing & protecting assets” while improving the experience for customers. If you believe this like I do, then the way contact centers operate and are measured requires further inspection. Stay tuned for more on this point as well.

I’m excited about the future of Customer Experience Management and the role the contact center should play in this revolution. We’ll dive into more depth in upcoming blogs around each of these 4 topics in the CEM construct.

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How to Make Your Self-Service Experience More Customer-Friendly

This post concludes my recap of a three-part podcast series on self-service design with Judi Halperin, principal consultant in speech engineering at Avaya. In two previous posts, I related Judi’s observations on designing a user-centric and user-friendly self-service experience and on capturing the benefits of self-service while providing a superior experience. In this installment, she talks about the role of language in designing more natural, or rather, more human self-service experiences.

Click here to listen to the full conversation.

What does “more customer-friendly” really mean? First and foremost among guiding design principles is to minimize your customers’ effort. For instance, if we’re talking about the caller experience, customer effort could refer to how much information your callers have to retain and use in order to have a self-service interaction, or how much information they have to provide just to get started.

Today though, let’s focus on a commonly broken rule. When you call a company for customer support and the IVR offers you 10 menu items, by the time you get to the last item, can you remember what the first one was? Remember that callers have to keep all of the options in their heads, a much more difficult task over the phone than on a website, a mobile app or via webchat.

So how can you make it a better experience for your customers? First, do some analysis and prioritize options based on popularity. A similar principle applies in website, mobile app and webchat design–you want to keep your most popular choices above the fold. At the same time, limit the options that your customers have to remember: generally five to seven items per menu as a guide. Also, allow your callers to start talking as soon as they hear the option that interests them.

Stay mindful of the recency rule. Again, most people tend to remember best what they heard last. It may be useful for the self-service system to offer a prompt right before the customer is asked to respond. This can help guide your customers to make the right response needed to serve their needs.

It’s also important to factor in the role of language in self-service design. For instance, consider implementing yes or no questions where it makes sense, as they are much easier interactions for callers. Also, if universal commands such as “agent” are used, be consistent; don’t substitute “operator” or some other alternative in a later menu.

Prompt structure matters too. For example, leading with “Which could I help you with?” implies that a list of options will follow. This type of prompt tends to be more straightforward to customers than the more open-ended “What can I help you with.”

Regarding speech recognition, the software-based recognizer can only listen for items that are in its set of established grammars and is predisposed to assume that the caller is going to say something it expects to hear. Also, a recognizer can get only so much information from a person’s voice, so it is important to provide acoustically different options that the recognizer can clearly distinguish between. Avoid such combinations as the classic (well, classic in the world of self-service design) “repeat” and “delete,” which differ only by a consonant sound.

Self-service systems can be powerful tools for businesses. Designing a system with customer-centric, natural language principles can go a long way toward the success of your self-service experience. Do you have some thoughts to share on self-service design? If so, we’d love to hear them.

Are You Missing Customer Expectations? Probably!

We all know that consumers are more demanding and more powerful than ever before. Consumers are spoiled for choice, with more information and a stronger, wider-reaching voice in the marketplace.

But have you ever stopped to consider how well organizations are coping with these demands? No? Well, here at Avaya we wanted to know the answer, so we commissioned a global research study* and asked consumers and companies from around the globe. The simple answer: Not very well!

We have produced the results of the study on a simple, interactive hub, where you can also learn more about how to solve for customer engagement with the consumer in mind. Let me take a moment to give you a few highlights from that research:

Consumer Expectations are High

The research showed that 70% of consumers expect unique treatment, with offers tailored to their specific requirements, while 92% expect organizations to be proactive in their engagement with them. Perhaps most significant of all, 87% of consumers surveyed said they would rather spend money with organizations that are easy to do business with than those that aren’t.

Organizations are Failing to Deliver

Although customer expectations are high, 83% of organizations surveyed said they could not deliver all the requirements for completely blended customer experience automatically and in real time. And–despite its importance with consumers–only 48% of organizations have initiatives in place to reduce overall customer effort. Perhaps more worrying, only 31% of managers believe customer effort significantly impacts spending, customer satisfaction and retention–a significant gap when compared with customer expectations.

It’s Not Easy!

There is no doubt that organizations are beginning to recognize the importance of the customer experience. However, a staggering 82% of organizations surveyed claimed to have CEM initiatives that failed in the last three years, with 66% of those claiming to have wasted money because of their efforts. Failure to modify processes and lack of employee buy-in were cited as the primary culprits (31%), followed closely by being misaligned to customer preferences (30%).

Persevere–The Benefits Are Worth It

For organizations that persevered, their efforts were rewarded. 80% of organizations claiming significant profit increases said they had a CEM program in place. Furthermore, organizations claimed higher levels of customer satisfaction, loyalty, retention and repeat purchasing than those without a program.

Where Does the Contact Center Fit?

For the skeptics out there questioning the future of the contact center, the contact center was seen as a key contributor to the success of an organization’s Customer Experience Management program. The research highlights that more companies who have enjoyed significant profit increases (54%) say the role of the contact center is extremely important to CEM program success, compared to those whose profits have stayed the same (17%) or decreased (10%).

Want to know more? Don’t miss this opportunity to look at this research in more detail by accessing the new Avaya Interactive Hub.

*Conducted by Dynamic Markets, commissioned by Avaya, 2014

The Role of Proactive Customer Engagement is Changing… Are You?

If you’ve worked in the contact center world over the past few decades, you’ve undoubtedly seen firsthand the evolution of how customers engage with organizations–from voice calls to IVR to email, text, webchat, video and more. You may also have witnessed that contact centers typically saw division of labor into inbound versus outbound. Even contact center technologies were broken down into inbound and outbound solutions.

As customers increasingly expect an omnichannel experience, how can organizations continue to evolve their outbound operations along with their inbound capabilities? What role does outbound or, as we like to call it, proactive customer engagement, play in delivering on business needs and outcomes?

To address these questions, I sat down for 7 rounds with David C. Martin, Managing Principal in Avaya Professional Services and Portfolio Leader for Automated Contact Center solutions, to get his expert thoughts on the role proactive engagement plays in the changing world of customer engagement.

LB: What are the key economic benefits that outbound dialing and proactive communications can provide to an organization?

DCM: As with most automated solutions, economic benefits can be found in cost containment and revenue generation. But, with today’s outbound solutions seamlessly integrating across the contact center to care for the holistic customer relationship, proactive communications drive customer satisfaction and ongoing revenue streams. Organizations need to be leveraging these solutions across long-term strategies made up of multiple integrated touch points versus one-time discrete contacts.

LB: That’s a great point, David. Regarding your comment on how being proactive drives ongoing CSAT and revenue streams, we did a study that showed 92 percent of customers expect advanced notification, and that 88 percent would rather spend money with companies that made it easy to do business with them.

You marry that together, and it’s clear that companies that are proactive in using customer data to offer up relevant new offers and service updates are more likely to capitalize on cross-sell opportunities and retain customers going forward. My next question is, how is the emergence of multimedia channels (SMS, live chat, automated chat, email) helping to drive cost, efficiency, CSAT or revenue up or down?

DCM: The power of multimedia channels is customer empowerment. We all carry devices that allow us as customers to choose how we want to interact and when. Where a customer is at [in] time and what they’re doing can affect whether they want to interact with the organization. Customer engagement drives the tone and success of the proactive communication.

Less-intrusive communication channels, like email and SMS, can be more effective in engaging the customer when their attention is somewhere else and when they want to control their responsiveness to the outbound communication. But, on the same note, a customer’s level of urgency may dictate their need to have instant response from a live agent, possibly using chat, video, or even voice. Customer empowerment is closely aligned with customer satisfaction.

LB: What are some key infrastructure considerations that organizations should be aware of when building their proactive communication strategy?

DCM: The technology’s ability to seamlessly integrate with internal and external endpoints such as point-of-sale, Web and mobile applications, loyalty programs, etc., whether internal or 3rd party, is key. Disparate data sources that become obsolete or blind to other real-time customer interactions shatters any level of customer confidence in that outbound communication. Remember that the customer doesn’t typically delineate between inbound and outbound, as it is all part of their engagement with the organization.

LB: What are some key process considerations that organizations should really be aware of when building their proactive communication strategy?

DCM: Organizations should consider the consistency of data across the contact center and throughout the enterprise. Customers see one organization that they are interacting with, but [oftentimes], the organization itself is disjointed in terms of sharing information across the enterprise. This segmentation undermines consistent management of customer data. While inbound customer interaction is driven by the customer, proactive communication is driven by the data it’s supplied. Poor data sets the foundation for poor outreach.

LB: What are some key organizational considerations to be aware of when building a proactive communication strategy?

DCM: Similar to ensuring processes for consistent data, the organization needs to build a consistent customer management strategy. The theme of enabling a seamless and complete customer journey should always be the primary focus. Even with what seems like a discrete activity such as collections, integrating all communication channels with consistent data will draw customers into recurring engagements.

Before reaching out to customers, organizations should leverage the data to understand such things as what is driving this proactive communication, what touch points has the customer had with the organization in the past, and on which channels that the customer prefers to be served.

LB: What can organizations do to make it easier for their outbound-focused agents to deliver the same quality of service as their inbound agents?

DCM: Training and access to reliable data. When an organization takes the lead in proactively engaging a customer, the organization has the responsibility to serve that customer intelligently. Agents must be trained to anticipate how the customer accepts the proactive engagement and to build a level of confidence with the customer, supported by authentic information, of course. With an integrated solution, the agents have access to this reliable data instead of legacy disparate databases.

LB: David, in your experience, what is a key takeaway organizations should consider when it comes to outbound dialing and proactive communications?

DCM: In today’s world of engagement, it is imperative for organizations to use accurate and timely data in driving proactive communications so as to ensure a level of customer confidence and satisfaction. Customers do not delineate between inbound and outbound communication. It’s all about seamless engagement with the organization when it comes to serving their needs and nurturing the relationship. When one of those interactions is supported by inaccurate or obsolete data, customer confidence and satisfaction is damaged.

Be sure to tune into our Feb 10 Get Smart customer webinar at 9AM PST | 12 noon EST on “The Economics of Proactive Engaging Customers”.