Tag Archives: NACCM Live 2009

NACCM 2010: The Power of Customer Advocacy in Business-to-Business Markets ‘ Market Probe’s Research Approach to Leveraging the Power of Word-of-Mouth

Presented by: Michael Lowenstein, MARKET PROBE

Customer retention is important, but the name of the game is how you use touchpoints and experiences to cross sell and upsell.

Touch points and methods that individuals have a standing contact. That will create the positive relationships and outcomes you’re looking for. We currently focus on what monetizes. Advocacy focuses on this. It is critical to this is on/offline word of mouth.

Advocates will do your marketing for you. Leverage the people who already love your brand. Word of mouth is a factor that can’t be looked beyond. Loyalty is a passive state. What do people trust? Word of mouth is a source for making business decisions. Individuals don’t trust organizations and what they have to say. People believe they can trust other people. It doesn’t matter where word of mouth comes from, but what companies have to pay attention to that information says.

NACCM 2009: I Want To Tweet You Up

Here’s another post from the Customers 1st blog which highlights a session called “I Want To Tweet You Up” from Michael Tchong at the NACCM Conference that just took place. Enjoy!

I Want To Tweet You Up: What Emerging Customer Trends Mean for Your Business
Michael Tchong, Trend Analyst & Founder, Ubercool

We should begin by discriminating trends from fads. Trends are consumer value changes. The best way to predict consumer behavior

Ubertrend ‘ major movement, pattern or wave, emerging in the consumer lifestyle

Digital lifestyle ‘ marriage between man and machine
The Compression ‘ the acceleration of life
Unwired ‘ The unhooked generation

Captin Sully’s situation reporting coverage was changed by Twitter. The first image was from Janis Krums from Sarasota, Florida from an iPhone. Comedians are the ones who best observe trends. The youths are on the front of this trend. The majority of Twitter users are abroad. Twendz lets you see Twitter trends as they are cascading down. Michael Tchong said Twitter will make or break swine flu.

Multitasking too much makes it harder for humans to remember things. The Wii now responds people to rehabilitate faster. Have you gone to ‘Wii’hab yet?

Tchong looks to microwaves for introducing Americans to instant gratification. Our state of mind has become a state of time. Culture has created a fast society, because we have a fear of being left behind.

Everyone is looking for innovation. In 1999, 95% of people stated that they wanted to be a leader. This is up from 37% in 1991.

We’re all facing the GPS Generation. We can get anywhere like a native, and leaving maps behind. Same can be said for speed dial and remembering phone numbers. Sit or Squat to find the restroom.

Time Compression. Food, photos, instant energy, etc. We are all trigger happy. Epic fail ‘ Frequently used term in the video game community that means you really messed up and/or something/someone is an utter failure. This is video game culture seeping into life.

Digital lifestyle: We’ve gotten an unknown president into office. Twilight and New Moon made a mom from Phoenix a multimillionaire.

Download free Uberternds map at ubercool.com.

NACCM 2009 LIVE: How Travelocity uses customer information to create a Customer Service Culture

When you’re one of the largest travel agencies in the U.S., and you manage the majority of your business through the web, you’ve got an interesting set of customer service challenges. Travelocity is a very well-know portal for purchasing travel, not just in the U.S., but around the world through Travelocity.com, Travelocity Business, zugi, travelguru.com and more. All of this traffic is supported by four centers in the U.S., 3 in India, and 2 in the Philippines. Travelocity achieves very high levels of service, even though they really never meet their customers face to face, and rarely even talk to them on the phone. How do that do that? Through Customer Championship. Ginny Mahl is VP, Customer Care at Travelocity. Ginny shared with the NACCM Customer’s 1st conference what customer championship is and why is it important. Travelocity’s customer promise is ‘We guarantee your booking will be right or we’ll work with our partners to make it right, right away.’ That’s a big promise when you consider the volume of business they do.

  • Delivering on their promise requires a deep enterprise-wide commitment.
  • When a customer makes them aware of a travel problem, they fix it promptly at the first point of contact.
  • They advocate for the customer both within Travelocity and with travel suppliers.
  • They not only fix the first customer’s problem but also those of similarly situated customers. They improve the customer’s entire travel experience.

Example: When a booking ends up not being the room type expected, it’s a big problem, particularly when it’s a special event. Travelocity has developed a process to pre-confirm rooms to cut down on this problem. Travelocity tackles the problem, even though they didn’t cause it! If you look at the many travel websites, you quickly realize that Travelocity cannot consistently differentiate with content. They all look and act pretty much the same. Customer Championship is what makes Travelocity different.

  • It creates a sustainable differentiator between Travelocity and other sites.
  • It causes customers to be more loyal to an organization that provides support when needed
  • Doing the right thing for customers will forces Travelocity to evaluate its policies and processes and fix those that don’t make sense for the customer.
  • Being the customer’s advocate energizes employees

The essence of this effort is echoed in art of their mission statement: To Inspire Travelers and Be Their Champion. A high-volume, mostly web-based business generates a mind-boggling amount of information about customers and their experiences. Here’s how Travelocity uses that information to support their championship vision. According to Ginny, they use it to:

  • Gain a deep understanding of our customers by listening
  • Assure the entire organization is accountable for delighting our customers
  • Work with our suppliers to improve the travel experience

Travelocity gets a vast amount of customer feedback through surveys, emails, calls, etc. — hundreds of thousands of times per month. With so many millions of data points, it’s hard to digest it all. Text Mining allows them to regularly and systematically read mass quantities of customer feedback. In order to manage this process, they have created a dedicated customer advocacy team. This group researches the issues, contacts customers for resolution, and compile feedback for further study. They also look for customer ‘cries for help.’ ‘Cries for help’ are verbatim comments that text mining allows them to search for that indicate a real problem. Comments on websites, surveys, etc. like ‘Do you care’? ‘Help!’ ‘Refund my money!’Travelocity found that they can triple customer satisfaction when the customer advocacy team responds to them. Another benefit of mining so much information and being able to make sense of it is that it also allows them to work better with suppliers. They can give real data to suppliers instead of just anecdotal stories. In short, it helps them, and their suppliers provide travelers with Proactive Customer Care to make their experiences better and better. As Ginny’s final comments reminded us: ‘Because it’s not just about getting there’it’s about assuring great experiences.”

NACCM 2009 LIVE: Preparing for Customer Centricity 2020: How o Evolve the People, the Process & Technology to Meet Future needs

“If we’re in a service economy, what’s next?”That’s the question Bo McBee, Vice President of Enterprise Total Customer Experience and Quality for Hewlett Packard., posed to the general session on Day 3 of the NACCM Customer’s 1st Conference. It’s Bo’s job to think about these things. As he puts it, ‘At HP, the future is coming at us fast. It’s borderline chaos.’ In fact, he’s never sent the drivers of loyalty change faster than they are right now. Customers are empowered, informed, and demanding. They’ve got to see relevancy up front. HP is a big company. Actually, that’s a severe understatement. A billion people use HP technology every day. Their technology handles two thirds of all credit card transactions and supports top 200 banks & 130 major stock exchanges. HP software makes calls possible for 100+ million mobile phone customers around the globe. Part of what enables HP to operate so well as such a huge company is their focus on Total Customer Experience (TCE), which they define as the overall customer impression of HP based on perceptions and experiences with HP people, partners, products, services, etc at every touchpoint. Loyalty enables growth. And when HP measures loyalty & customer service performance, they do it across every touchpoint in the lifecycle of the customer. Bo simplified their approach to improving the TCE into three steps:
  • Execute fundamentals ‘ improve processes and products
  • Make it easy ‘ better understand your customer and competitive differentiators
  • Transform customer relationships – to be proactive ‘ reinvent the experience

Bo is a big believer in Joe Pine’s Progression of economic value. It’s a scale that explains the relative value of what you provide as a business. As you move up the scale, the customer receives and perceives higher value (and is usually willing to pay more money). Bo used a phenomenal example of how you might purchase cake for someone’s birthday.

  1. At the Commodities level, you’re willing to buy eggs, milk, flour, and sugar to bake a cake.
  2. At the Goods level, you’ll purchase a cake mix for because it’s a little easier on you.
  3. At the Service level, you’ll go for the pre-baked bakery cake for the total convenience.
  4. But at the Experience level, you’ll suddenly spend a lot more for a birthday party at Chuck E. Cheese.

Bo defines an experience as a ‘distinct economic offering that people are willing to pay for.’ To move up the progression, you customize the lower levels. As you customize something, the lower or existing level of that something often becomes a commodity. Loyalty and growth are becoming more a function of ‘the overall experience’ To help accelerate the creation of meaningful experiences, HP has designed a methodology they call the IMPACT Model:

  • Identify experiences that matter
  • Make it uniquely personal
  • Process, technology, people to add value
  • Add architecture
  • Create inspiration and incentive
  • Test the experience

One of the most fun parts of the model is you have to come up with a theme for the experience that everyone agrees on, and it’s not always easy. Once you get that theme, every thing you do from that point on has to support that theme. IMPACT addresses:

  • Functional needs: help me accomplish a task
  • Emotional needs: help me feel deeply about what I do
  • Social needs: help me build relationships with others

Bo’s final tips for making sure you’re prepared for a more customer-centric world:

  • You can’t become world-class if you don’t take your strengths to world-class levels.
  • Don’t ask a customer what you should already know. Make sure your processes for listening to your customers keep up.
  • Tie customer service to growth and profitability. Don’t lose the opportunity to do something really impactful because you didn’t make business case for it.

NACCM 2009: Saving Customer Ryan: The Power of Emotional Brand Equity

Saving Customer Ryan: The Power of Emotional Brand Equity
Dan Hill, Author, Emotionomics

Dan decided to figure out how to bring emotions into business. Brain science breakthroughs have changed and we have always been, ‘I feel, therefore I am.’ And this is now shown through brain science. We are Homer Simpson, we think and act with our emotions.

We have a 3-part brain. Sensory, emotional, rational brain. We are sensory and emotional decision makers. Loyalty is a feeling.

How do we judge what people think compared to:
Facial expressions ‘ 55%
Tone of Voice ‘ 38%
Words Being said ‘ 7%

Pitch, rate, range, articulation can give you a sense of how people are feeling over the phone. A person who is born blind has the same emotions as someone who is not. There is a part of the brain devoted to reading people faces, and it’s 8x as powerful as the one which reads objects.

In a commercial for Best Buy, eye tracking goes to the face of a person for females. Everyone is looking at faces, and the logos are in the background, but that’s the story. People Magazine will always survive because of the fact that they can continue showing the faces.

Facial Coding: It’s universal. It’s worldwide, culture through. The face is the only place in the body where the muscles attach to the skin. Dan Hill has shared his views on televistion and judged facial expressions of individuals involved with presidential races, on ESPN and ARod, when playing poker.

Our core emotions are happiness, surprise, anger, disgust, contempt, Sadness, fear, and deceit. We have two smiles, which are the true smile and tbe social smile.

Gauge personality properly by using the Big 5: Extraversion, agreeableness, conscientiousness, openness, neuroticism

Openness ‘ exploratory and not afraid
Conscientiousness- detail oriented, responsible
Extroverted ‘ Aggressive, friendly, funny,
Agreeableness ‘ warmth, kindness
Neuroticism ‘ adaptability, equanimity, maturity

When you’re in a short meeting, you can only pick up on conscientiousness and neuroticism.

1)Hire and train the right people. We all read other peoples faces.
2) Better survey question.
Like: What makes you stay with us? Or What do we do to help you the most?
3) Customer service as offer, it should nto be the afterthought. It’s huge and the heart and center of business.

If you can create a sensory service with customer service, you can then leverage your relationships.

Make customer service a good romantic dance, continually court them show them the equity of your brand.

NACCM 2009 LIVE: Designing and Developing Performance-Support Learning Programs

Understanding the difference between training and learning is absolutely critical to developing Performance-Support Learning Programs, according to Kathleen Peterson, Chief Vision Officer, Powerhouse Consulting. Kathleen opened her session with a funny song about the solution to all call center woes is to add ‘more staffing on the line.’ Of course, more staffing is not the answer. More educated staff is likely a better solution. But be careful not to educate your people the wrong way. If you ‘train’ them, you’re focusing on instruction that is basically trainer focused. A better way is to focus on ‘learning.’ Training is education and instruction. Learning is the act of acquiring knowledge, and it’s focused on the learner. Another way to put it: Training is an event’learning lasts forever. Kathleen encourages us to adopt an ‘ask and tell’ training philosophy. The trainer should always be the person asking the questions of the learner. It forces the learner into a situation where they recognize what the learning is doing for them’and how it will apply to their interactions with their customers. In a performance-support model:

  • Training represents knowledge, skills, and feelings needed to perform critical and complex tasks.
  • Training is part of a much bigger picture.
  • Training does not teach everything ‘ it helps learners become independent, efficient workers.
  • Transactions are taught around real-life job situations.
  • The training teaches the tools that support learners on the job.

When people dread training, it’s usually partly because it’s not performance-based. Nobody likes to be told what to do. They’d much rather be taught how to do their job well. Performance-support training all boils down to three simple questions 1. What do they need to know?

  • Products
  • Policies
  • Procedures
  • Exceptions
  • Where to look for needed information

2. What do they need to do?

  • What actions do they need to take to do their job?

3. What do they need to feel? And make other people feel?

  • Empathy
  • Enthusiasm
  • Positivity
  • Empowerment
  • Appreciated
  • Connected

An effective training program should always be guided by several elements:

  • Customer experience
  • Company mission
  • Business Goals
  • Brand Elements
  • Values Proposition

Kathleen was passionate about following the proper methodology when designing a training program. The great thing about following proper methodology is that it can fit any program, course, or module and ensure the right kind of training every time. But the most important steps in the process are to always make sure you properly analyze needs and spend time designing training. If you don’t do these first two steps, the best delivery in the world won’t save your training program. Want to make sure your training is fully supported and absolutely effective? Kathleen suggests creating a multi-disciplinary design team with representatives from any area of your business that might be affected by the training or have important insight into what the program should look like.

NACCM 2009 LIVE: Global Culture Transformation; Changing The Behavior of Leaders at Levels

You’ve got to love somebody who calls themselves a ‘quality geek’ like Gloria Roberts does. She’s the Staff Vice President of Service Experience at FedEx Corporation. Having a quality geek in charge of the service experience is definitely a good move. Gloria stated her most important point right up front: Customer centricity is about aptitude, attitude, and action. It’s imperative for a company founded on a quality promise (‘Absolutely, Positively’) to create a culture of service. But, FedEx is not one company. It’s actually four operating companies servicing over 220 countries/territories. Can you imagine trying to effectively communicate how to deliver their infamous ‘Purple Promise’ to make every customer’s experience outstanding to 275,000 employees worldwide? That’s exactly what they do. All companies must compete on price or experience. Customer experience is the superior way to compete. It results in higher overall value and a lasting competitive advantage. When you focus on experience, price may still be important, but falls to a secondary consideration. For FedEx, the rallying point is the quality of their service. They have to make sure the service to the customer, at every touchpoint, is more than the customer expects. Drivers of Customer Loyalty for FedEx include:

  • Customer perceptions of the brand
  • Overall customer experience
  • Value for the price

To make sure they can deliver, FedEx makes tremendous efforts to:

  • Gather information to know what their customers expectations are.
  • Focus on performance every single day.
  • Make sure the employees are engaged and the customer’s interaction is superior.
  • Measure, measure, measure the quality of everything!

Quality at FedEx:

  • is a shared call to action.
  • is shared understanding of ‘best’.
  • is a fact-driven philosophy for decision making.
  • involves a common process improvement methodology.
  • is an integral component of Customer Loyalty and Operational Excellence Strategies.

In fact, quality is so important FedEx says, ‘Quality management is not a thing we do, it’s the way we do things.’ To communicate FedEx’s QDM (Quality Driven Management) plan, Gloria’s team created a multi-phase approach that included building awareness and alignment, preparing leadership to lead, and finally deploying, implementing, and ensuring the longevity of the plan.One of the communication vehicles they created was a high-quality video that was shared with the entire company several times. The video was 6 minutes: that’s all the time they have at the beginning of each shift for their ‘management’ meetings. They normally squeeze 15 topics into those meetings, but they focused on the video instead in order to get a consistent message across to the entire company. One memorable line from the video stated that a1% increase in loyalty results in $100 million in revenue for the company. That’s a pretty staggering statistic to convey the impact of increasing customer loyalty. The initiative strives to communicate three themes to employees: Customers, Excellence, and We are One FedEx. So, how did they get 275,000 people to learn the same thing?They focused on making ‘local’ stories ‘global’They employed omprehensive, consistent messagingThey built on existing learning and competency baseThey created a learning approach employable across target audiencesThey used a ‘non-traditional’, multi-media learning platformThey incorporated it into their business plan One key element to speed up the adoption of QDM was to get key influencers on board early in the process, effectively creating influential cheerleaders of the program. These influencers were giving a “sneak preview” of the program before they rolled it out to the company at large. And FedEx realized that influencers are not necessarily the people at the top. These hand-picked people came from all levels throughout the company.