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	<title>onVector Consulting Group &#187; Customer Engagement</title>
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	<description>Line of Sight to Performance Excellence</description>
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		<title>A Simpler (and Faster) Path to Cx</title>
		<link>http://www.onvectorconsulting.com/a-simpler-and-faster-path-to-cx/</link>
		<comments>http://www.onvectorconsulting.com/a-simpler-and-faster-path-to-cx/#comments</comments>
		<pubDate>Fri, 15 Aug 2014 21:29:08 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Customer Experience Governance]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Performance Management]]></category>
		<category><![CDATA[Performance Measurement]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=3204</guid>
		<description><![CDATA[Regardless of whether you&#8217;re a racing fan or not, chances are you&#8217;ve seen the below video as it made its social media rounds last year. As a junkie for organizational agility and speed, I never get tired of watching it. [&#8230;]]]></description>
				<content:encoded><![CDATA[<p>Regardless of whether you&#8217;re a racing fan or not, chances are you&#8217;ve seen the below video as it made its social media rounds last year. As a junkie for organizational agility and speed, I never get tired of watching it. And if you haven&#8217;t seen it, by all means take a look, as it speaks volumes about today&#8217;s topic.</p>
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<p>Those of us who spend time in and around Customer Service organizations see our fair share of big investments—new IT deployments, reengineering of back-office processes, upgrading our contact centers … the list goes on. With the introduction of each new Customer Experience (Cx) program, the size of the investment portfolio grows even further through projects like enterprise-wide journey mapping, training initiatives, new service channels, and improvements to research and data analytics platforms. Big projects are a reality for CCO’s and their leadership teams, and justifiably so. Maintaining customer support infrastructure is undoubtedly key to our long-term success.</p>
<p><em>But are we putting too much emphasis on our customer infrastructure at the expense of the smaller and more actionable practices that could generate more immediate results?</em></p>
<h2><em>When Smaller is Better&#8230;</em></h2>
<p>When asked to describe their Customer Experience initiatives, many CCO’s point to the &#8220;small stuff” as being key to the results they’ve achieved. In a world where everyone talks about “Big”—big data, big projects, big commitments—it’s these small, seemingly insignificant, practices, with not-so-small impacts, that are becoming the poster children of their efforts.</p>
<p>I’m talking about practices that don’t require an “act of congress” to implement—the ones that are just good common sense and take next to nothing to implement, except a little foresight and follow-through. Simple and easy, yet, still, an overwhelming number of organizations focus on the big solution being implemented and, in doing so, miss the opportunities to make a difference today.</p>
<p>Consider call/contact centers for a moment, where “big stuff” always takes center stage. How often do we hear “When our new CIS is in place,” “As soon as we implement speech analytics,” “Once we get that new IVR,” etc. But the reality is that most of what we need to make incremental—and sometimes big—changes is already there for those with the creative energy to act on it.</p>
<h2><em>Fix-it-Fridays</em></h2>
<p>A past client (We’ll call her Sarah), one I still regard as a brilliant Customer Service manager, was excellent at demonstrating this concept, i.e., using what she had available at her disposal today, combined with a real action bias to catalyze big change. One of my favorites was a practice she called “Fix-it Fridays.”</p>
<p>During the week, she would mine a few recorded calls for good examples of customer interactions that were “less than optimally handled.” This could mean the rep simply misunderstood the customer’s issue and employed an ineffective solution, or that a good solution was just poorly delivered and/or executed.</p>
<p><img class="wp-image-3210 alignleft" alt="shutterstock_178717751 copy" src="http://www.onvectorconsulting.com/wp-content/uploads/2014/08/shutterstock_178717751-copy.jpg" width="329" height="143" /></p>
<p>Each Friday afternoon, she would get small groups of reps together (voluntarily, but usually enticed with a bit of free food or cake) to brainstorm better ways of handling these customer situations. They would listen to a sample call together and discuss how the rep handled the interaction. Then they (not the supervisor, QA manager, or trainer, but the front line reps themselves) would talk about how they would approach the call differently. Challenge and debate were encouraged. But it was also a safe and rewarding experience that left everyone, including the rep in the “case study,” feeling better equipped to deliver on their Cx commitment. As this manager used to say, “it’s a little like looking in the mirror when you apply your own service standards to the responses we deliver day in and day out.”</p>
<p>Many organizations use some variation of this in their centers. Nearly everyone has a QA/monitoring process in place (although many place their focus on procedural and policy compliance rather than emerging Cx values and standards). Most have decent follow-up mechanisms for supervisor coaching when problems occur. And (most of the time) when broad themes emerge, they work them into their ongoing training.  But all of this takes time. And, increasingly, such efforts rely on technology and infrastructure to mine interactions, which often means more time and complexity.</p>
<p>Sarah’s approach was focused on “time to market.” It didn’t discount the value of the existing process or the opportunities new technology can offer. Rather, it simply looked for ways to act more quickly. Perhaps, more importantly, she used her weekly forums as a way to teach staff how their Cx standards really were being applied, by immersing them directly, and by letting the team explore those standards in real time. The focus wasn’t on developing new policies or approving new scripts. It was about learning and applying good Cx.</p>
<p>Your reaction to this may be that you achieve these results through your QA process and ongoing coaching. But before your discount Sarah’s practice as run-of-the-mill, ask yourself:</p>
<ul>
<li>How long does it take employees in your organization to act on a solution once it’s identified?</li>
<li>Do you encourage bad practices to be changed on the spot, sometimes on the basis of good instinct or common sense, or do all changes have to go through your business improvement processes and protocols?</li>
<li>Once a new approach is identified, how quickly is it shared and institutionalized?</li>
<li>Do your managers and staff feel empowered to take risks and deploy changes quickly?</li>
<li>Are small “experiments” allowed, knowing that most can be “unwound” if they prove to be less effective than anticipated?</li>
</ul>
<p><img class=" wp-image-3211 alignright" alt="yesterday-tomorrow-nike" src="http://www.onvectorconsulting.com/wp-content/uploads/2014/08/yesterday-tomorrow-nike.jpg" width="225" height="300" /></p>
<p>Examples like this abound throughout our customer service organizations—process fixes,touchpoint improvements, intelligence gathering techniques, and many more. And there is no doubt that the projects and initiatives we have in place to deal with these challenges will lead us to a more consistent and sustainable application of our Cx strategy. But without an equally ambitious focus on the smaller solutions, and a bias from the organization to support them, they simply won’t happen.</p>
<p>Commit today to making the small stuff an equal priority within your company. Ask for it, reward it, and manage to it. The wins may seem small at first, but stack up enough of them and you’ll discover stronger momentum and a faster ROI on your Cx investment.</p>
<div class="clear-line"></div>
<address><em>Bob Champagne is Managing Partner at onVector Consulting. Bob has over 25 years designing and delivering performance management and governance solutions at the Enterprise and Business Unit levels of the organization. <em>Bob can be contacted at bob.champagne@onvectorconsulting.com or through LinkedIn at <a href="http://www.linkedin.com/in/bobchampagne">http://www.linkedin.com/in/bobchampagne </a></em></em></address>
<address><em>onVector’s Line of Sight solution suite has been utilized by its client organizations to establish the critical linkages between strategies, initiatives and KPI’s; enabling better alignment, higher levels of performance and a faster path to ROI.</em><em> onVector&#8217;s Line of Sight methodology has been adapted to facilitate the unique management and governance needs of many </em><i>strategic initiatives across the organization, including Customer Experience.</i></address>
<p><i> </i>To learn more about Cx Solutions available through onVector, including:</p>
<ul>
<li>Cx Readiness Assessments</li>
<li>Cx Program Startups</li>
<li>Cx Alignment &amp; Standards Development</li>
<li>Rapid Touchpoint Renewal</li>
<li>Cx Management &amp; Governance Solutions</li>
</ul>
<p>visit us at <a href="http://onvectorconsulting.com/cxsolutions" target="_blank">http://onvectorconsulting.com/cxsolutions</a></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>Governing Cx through Line-of-Sight</title>
		<link>http://www.onvectorconsulting.com/line-of-sight-cx/</link>
		<comments>http://www.onvectorconsulting.com/line-of-sight-cx/#comments</comments>
		<pubDate>Mon, 28 Jul 2014 22:51:34 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Intelligence]]></category>
		<category><![CDATA[Business Process Improvement]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[Corporate Performance Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Customer Experience Governance]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Enterprise Performance]]></category>
		<category><![CDATA[KPI]]></category>
		<category><![CDATA[Lean]]></category>
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		<category><![CDATA[Performance Measurement]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=3091</guid>
		<description><![CDATA[An end-to-end approach for managing customer experience strategy and delivering on its promises... Over the past 24 months, Customer Experience Initiatives (Cx programs, as they have come to be called) have climbed to the top of the radar screens of [&#8230;]]]></description>
				<content:encoded><![CDATA[<h2><img class="wp-image-3092 alignright" style="color: #333333; font-style: normal; line-height: 24px;" alt="line of sight gears" src="http://www.onvectorconsulting.com/wp-content/uploads/2014/07/line-of-sight-gears.png" width="293" height="157" /><em><strong>An end-to-end approach for managing customer experience strategy and delivering on its promises..</strong>.</em></h2>
<p>Over the past 24 months, Customer Experience Initiatives (Cx programs, as they have come to be called) have climbed to the top of the radar screens of most leadership teams. Organizations are abuzz with projects to identify “touchpoints,” map “customer journeys,” and strengthen their customer-facing business processes. Alongside these initiatives are even larger investments in acquiring the data and analytics required to feed and sustain these service improvement strategies. <a href="http://www.onvectorconsulting.com/line-of-sight-cx/2/">&gt;&gt;Next&gt;&gt;</a></p>
<p><a href="http://www.onvectorconsulting.com/governing-cx-through-line-of-sight-full-article/">Read Full Article</a></p>
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		<title>The Anatomy of a Touchpoint</title>
		<link>http://www.onvectorconsulting.com/the-anatomy-of-a-touchpoint/</link>
		<comments>http://www.onvectorconsulting.com/the-anatomy-of-a-touchpoint/#comments</comments>
		<pubDate>Sat, 04 Jan 2014 04:46:01 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[CEM]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Performance Management]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=2985</guid>
		<description><![CDATA[Customer touchpoints  have always been the ground zero where Cx battles are won and lost. For years, even long before the Cx &#8220;movement&#8221; made the term touchpoint a part of the corporate lexicon, Customer Service organizations have been obsessed with improving these [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><img class="alignright" style="color: #333333; font-style: normal; line-height: 24px; margin-top: 0.4em;" alt="Screen Shot 2013-12-30 at 3.33.34 PM" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/12/Screen-Shot-2013-12-30-at-3.33.34-PM.png" width="344" height="345" /></p>
<p><span style="color: #333333; font-style: normal; line-height: 24px;">C</span>ustomer touchpoints  have always been the <em>ground zero</em> where Cx battles are won and lost. For years, even long before the Cx &#8220;movement&#8221; made the term touchpoint a part of the corporate lexicon, Customer Service organizations have been obsessed with improving these targeted areas where our customers transact business with us.</p>
<p>And for years, we&#8217;ve invested enormous sums of money trying to measure, analyze, and improve our customer touchpoints.  Customer research, satisfaction surveys, training programs, systems investments, process improvements, and the myriad of other &#8220;projects&#8221; we take on in our annual business plans are in large measure focused on what we believe are our most important customer interactions. And today, they are the central focus of our new Cx initiatives, whether it&#8217;s the mapping of customer journeys within and across these interactions, or the creation of new products, channels and communication strategies to enhance those experiences.</p>
<p>Yet ironically, with as much focus as we&#8217;ve placed on the proverbial &#8220;touchpoint&#8221; over the years, and with as much consensus as there is on how to improve them, there still exists little universal alignment across the Cx community at large on what exactly a touchpoint is. And without that, one can only hope we are spending our resources on improving the right things that will yield the right kind of outcomes.</p>
<h2>Lack of Definition = Lack of Focus</h2>
<p>When I start working with a new organization, I always try to get a read on where their current focus is, and how they see their priorities moving forward. I start by asking  some general questions about past customer service performance, existing satisfaction levels and what they see on the horizon in terms of emerging focus. And yes, I often raise the question of &#8220;touchpoints&#8221; &#8212; Which ones are working? Which ones are not? Which ones are most vulnerable?</p>
<p>These are, of course not &#8220;pass/fail&#8221; questions. I ask them primarily to help me understand  the lens they are currently looking through, which in turn helps establish a bit of a baseline. Their answers invariably span a broad range of different perspectives and interpretations on what they believe their touchpoints are and where they want to start improving.</p>
<p>Some clients will talk about improving touchpoints in terms of delivery <em>channels &#8211;</em>&#8211; call centers, storefronts, etc. Others speak in terms of the <em>transactions</em> themselves &#8212; paying a bill, signing up for service, getting information on a service interruption. Others say its about a certain <em>type of customer </em>&#8212; For example, candidates for product renewal or upgrade, or what they might term their &#8220;at risk&#8221; customers. And for some, touchpoint improvement is viewed from an extremely broad/functional perspective, like improving  &#8220;customer billing&#8221; or &#8220;call centers&#8221; &#8212; based on recent (albeit sometimes very &#8220;general&#8221;) customer feedback.</p>
<p>Of course, they are all right. And, at the same time there exist flaws in each of these interpretations.</p>
<h1><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/12/Screen-Shot-2013-12-30-at-3.36.33-PM.png"><img class="alignnone size-full wp-image-3005" alt="Screen Shot 2013-12-30 at 3.36.33 PM" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/12/Screen-Shot-2013-12-30-at-3.36.33-PM.png" width="684" height="449" /></a></h1>
<p>Rather than thinking about touchpoints as specific transactions, channels, and customer types; perhaps we ought to think about these in combination &#8212; That is, <span style="text-decoration: underline;">three separate but strongly related parts</span> of a customer interaction:</p>
<p><em><strong>The Transaction:</strong></em></p>
<p style="padding-left: 30px;"><em><strong></strong></em>We call this the &#8220;WHAT,&#8221;  or the purpose of the interaction. For example, <span style="text-decoration: underline;">paying</span> a bill is a transaction. <span style="text-decoration: underline;">Receiving</span> a bill is also a transaction, but of a very different type with a ton of different issues at play. Getting <span style="text-decoration: underline;">status</span> on an outage is an interaction. <span style="text-decoration: underline;">Initiating</span> service and setting up a new account is an interaction. There are literally hundreds of transaction types that involve thousands if not millions of customer interactions every day. But while a transaction does represent the &#8220;what&#8221; of the interaction, it often ignores &#8220;where&#8221; the transaction is occurring as well as the customer &#8220;setting&#8221; within which it is taking place. Without those, real customer centric improvement is difficult if not impossible.</p>
<p style="text-align: left;"><em><strong>The Channel:</strong></em></p>
<p style="text-align: left; padding-left: 30px;">Channels represent &#8220;WHERE&#8221; transactions occur. These can be inside the company or outside. They can be automated or manual. They can be company triggered or customer triggered. In essence, they represent the &#8220;medium&#8221; through which the transaction occurs. Call centers, websites, mobile applications, etc. are all channels. But while a channel represents &#8220;where&#8221; the customer is conducting business with you, it too is not by itself a touchpoint. Focusing your renewal efforts on channels alone can lead to useful improvements (often of the operational or efficiency variety), but they also tend to lead to more &#8220;one size&#8221; fits all solutions.</p>
<p style="text-align: left;"><em><strong>The Context:</strong></em></p>
<p style="text-align: left; padding-left: 30px;">The third aspect of a touchpoint is the &#8220;CONTEXT&#8221;.  For us, this is really a combination of a segment, persona and a circumstance. In our view, it&#8217;s the most important part of the touchpoint equation, as it reflects the true setting the customer is in when they begin the journey. As one of my clients likes to say, context &#8220;puts a face on the interaction&#8221;. For example, a &#8220;<em>high income </em>(and often &#8220;overextended&#8221;)<em style="color: #000000;"> customer calling to obtain a payment arrangement after losing their job&#8221;</em> is an example of a context. Contexts exist at varying levels of granularity, and undoubtedly require a bit more sophistication to accurately define and portray. But the closer you can get to weaving the context into your definition of a touchpoint, the closer you will be to focusing on change that will produce a relevant, meaningful and high quality experience.</p>
<p>Of course, this is just our take on it. Based on our own experiences and lessons learned, we&#8217;ve found this to be the lens that most quickly focuses us on the right changes and provides the fastest path to successful <a title="2014: The Year of Touchpoint Renewal" href="http://www.onvectorconsulting.com/2014-the-year-of-touchpoint-renewal/" target="_blank"><em>touchpoint renewal</em></a>.</p>
<p>However, the fact is, you can take any one of these paths in isolation and ultimately get to the point of making useful and lasting improvements. It just that this less integrated approach often requires more time and iterations to reveal solutions that are genuinely oriented around the  true needs and drivers of the customer.</p>
<p>Alternatively, defining a touchpoint as a <em>combination of purpose (transaction), channel, AND context</em> will produce touchpoint improvements that are, from the start, highly focused on customer centric-design. Organizations are less likely to get bogged down or sidetracked on things that are only peripheral to the customers&#8217; <em>line of sight</em>. If the objective of your Cx initiative is to be truly customer-centric, and to get your organization to embody change at that level, we think you are better off starting with a more integrated view of your touchpoint landscape. Cycle times to implementation will be shorter, and you will begin amassing a string of &#8220;quick wins&#8221; which we all know is key to building momentum and transforming the thinking and culture of the organization.</p>
<p>&nbsp;</p>
<p><em>Bob Champagne is Managing Partner: <a title="Your Partner in Cx Excellence" href="http://www.onvectorconsulting.com/cxsolutions/">Customer Experience Solutions</a> at onVector Consulting Group.. Bob has over 25 years of  experience in Cx and Customer Operations, with emphasis on the global energy and utilities sector. Bob has </em><em></em><em>consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com or through <a href="http://www.linkedin.com/in/bobchampagne ">LinkedIn</a> at <em>http://www.linkedin.com/in/bobchampagne </em></em></p>
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		<title>2014: The Year of Touchpoint Renewal</title>
		<link>http://www.onvectorconsulting.com/2014-the-year-of-touchpoint-renewal/</link>
		<comments>http://www.onvectorconsulting.com/2014-the-year-of-touchpoint-renewal/#comments</comments>
		<pubDate>Fri, 27 Dec 2013 02:10:56 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Enterprise Performance]]></category>
		<category><![CDATA[Performance Management]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=2959</guid>
		<description><![CDATA[At its core, Cx is about all the pursuit of delivering  an exceptional customer experience across every touchpoint, every time. That&#8217;s a pretty ambitious goal, and one that I&#8217;ve begun to refer to with my clients as the &#8220;Cx Holy Grail&#8221;. [&#8230;]]]></description>
				<content:encoded><![CDATA[<div id="attachment_2967" style="width: 291px" class="wp-caption alignleft"><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/12/Screen-Shot-2013-12-26-at-7.06.08-PM.png"><img class="wp-image-2967  " alt="Screen Shot 2013-12-26 at 7.06.08 PM" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/12/Screen-Shot-2013-12-26-at-7.06.08-PM.png" width="281" height="284" /></a><p class="wp-caption-text">CxTAM Industry View<br />Copyright 2013, onVector Consulting</p></div>
<p>At its core, Cx is about all the pursuit of delivering  an exceptional customer experience across <em>every touchpoint, every time</em>.</p>
<p>That&#8217;s a pretty ambitious goal, and one that I&#8217;ve begun to refer to with my clients as the &#8220;Cx Holy Grail&#8221;.</p>
<p><em>EVERY touchpoint, EVERY time?</em> Think about it. Every time we buy a product, activate a product, use a product, get support, renew our service, suspend or terminate our contract&#8230;and the list goes on&#8230;, we must deliver an exceptional experience. Some would even say that our viewing of advertisements, interactions with social media, and even our passive conversations with others about our experiences qualify as a touch points that need to be &#8220;managed&#8221;.  And they wouldn&#8217;t be far off.</p>
<p>So where do we focus first? Which touch points? Which parts of those touch points ? What can wait? What can&#8217;t?</p>
<p>One way to simplify the madness is to have a common set of unifying standards that every part of the organization can identify with, routinely. While statements like <em>&#8220;Exceptional Cx: Every Touchpoint, Every Time&#8221;</em> make for good mantras and vision statements, our Cx program will be short lived unless those statements can be  translated into a clear set of observable, measurable and actionable factors. Without these, you&#8217;re literally flying blind with no way of knowing when something is broken, where improvement is needed, or how to fix it. That&#8217;s a core principle in managing any strategy, and one that is glaringly missing from most Cx programs today. Our <em>Touchpoint Assessment Model (TAM)</em>, and the 12 attributes that comprise it, was essentially constructed to address that gap and and help our clients better focus and navigate their Cx improvements.</p>
<h2><i>TAM </i>in a Nutshell</h2>
<p>While  the model is based on a quite a bit of research, client experiences, and some pretty creative crowdsourcing; its structure and architecture is quite simple: 3 key areas of focus comprised of 12 unique and discernible attributes.</p>
<div>
<div>The first four dimensions deal primarily with the <em>product or content</em> being served up in the transaction. The second four deal with the <em>process</em> through which the interaction occurs. And the final four relate to the <em>style and delivery</em> of the transaction. Each of the 12 attributes are worthy of separate discussion and exploration which I&#8217;ll cover in subsequent posts. But for now,  here are the highlights.</div>
<div></div>
<div>An<strong> </strong><em><strong>Exceptional Customer Experience </strong></em>requires that the:</div>
<div></div>
<div><strong><em> Content</em></strong> <strong><em>or Product</em></strong> is:</p>
<ul>
<li><em>Relevant</em> to the specific transaction, persona and context at play</li>
<li><em>Useful</em> in serving its intended purpose</li>
<li><em>Reliable</em> and consistent in its delivery</li>
<li><em>Value accretive</em> (we&#8217;ll explain this more later, but suffice it to say, it&#8217;s the &#8220;differentiable stuff&#8221; (smart value) that gets noticed)</li>
</ul>
</div>
<div>Delivered through<em> <strong>Processes and Mediums</strong></em><strong> </strong>that are:</div>
<div>
<ul>
<li>Crazy <em>simple</em></li>
<li><i>Responsive</i> to the required or desired outcome of the transaction</li>
<li><em>Efficient</em> and free of waste (&#8220;my time&#8221; and &#8220;your&#8217;s&#8221;)</li>
<li><em>Transparent</em> when they need to be</li>
</ul>
<div>With an accompanying <strong><em>Style and Tone</em> </strong>that is</div>
</div>
<div>
<ul>
<li><em>Inviting and engaging </em></li>
<li><i>Real and Authentic</i></li>
<li><em>Appropriate</em> to the context and customer circumstance</li>
<li><em>Helpful and resourceful</em></li>
</ul>
<p>Within each of these 12 attributes are corresponding definitions, metrics and practices that paint the full picture of what is required to achieve what we would call &#8220;best practice&#8221;. It&#8217;s a model that has been constructed over 36 months of research and client experiences, along with a healthy dose of reader input and perspective. Is it perfect? Of course not. But it does provide a good set of distinctions that help break down where our issues lie and what can be done to begin turning things around in the right direction. What&#8217;s profiled in the chart above is how our clients have graded themselves in a recent survey of current Cx program focus. Do we agree with all of these assessments? Probably not. But it does show that most believe there is considerable room for improvement. And after all, that&#8217;s the point of all of this.</p>
<p>Throughout 2014, I&#8217;ll be posting periodically on different aspects of the model as well as case studies on how our clients are using the framework within their Cx programs and governance processes to drive sustainable change. And as I have in the past, I&#8217;ll &#8220;pepper&#8221; things a bit with my own personal experiences which, as many of you know, are viewed through a pretty critical Cx lens. Taken together,  I believe this input will provide our readers a with a useful perspective from which to measure and strengthen their Cx program.</p>
<p>To all of my clients and colleagues, thanks for a great 2013. I look forward to our continued collaboration in 2014 and the learning and sharing that goes with it.</p>
<p>For more information on the CxTAM, and how it can help accelerate and strengthen your touchpoint renewal efforts, visit our onVector <a href="http://www.onvectorconsulting.com/2812-2/">Cx webpage</a>, or contact us at Cx@onVectorConsulting.com</p>
<p>b</p>
<p><em>Bob Champagne is Managing Partner: Customer Experience Solutions at onVector Consulting Group.. Bob has over 25 years of  experience in Cx and Customer Operations, with emphasis on the global energy and utilities sector. Bob has </em><em style="color: #333333; line-height: 24px;"></em><em>consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com or through <a href="http://www.linkedin.com/in/bobchampagne ">LinkedIn</a> at <em>http://www.linkedin.com/in/bobchampagne </em></em></p>
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		<title>Crowdsourcing Through A Crisis</title>
		<link>http://www.onvectorconsulting.com/crowdsourcing-through-a-crisis/</link>
		<comments>http://www.onvectorconsulting.com/crowdsourcing-through-a-crisis/#comments</comments>
		<pubDate>Wed, 16 Jan 2013 20:22:00 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Process Improvement]]></category>
		<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Performance Management]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=2605</guid>
		<description><![CDATA[A model where your CUSTOMERS provide faster, better, and more accurate answers and support than you can; render conventional service models obsolete, and take control of their own satisfaction. How you can engage, participate and gain competitive advantage through this grass roots customer revolution...]]></description>
				<content:encoded><![CDATA[<p><em><strong><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/CSRinCloud.png"><img class="alignright size-full wp-image-2611" title="CSRinCloud" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/CSRinCloud.png" alt="" width="300" height="187" /></a>The collapse of a conventional service model, and the rise of a new one&#8230;</strong></em></p>
<p>One of the exciting things about my line of work is that we see lots of new ideas and ways of doing business. Not all of them make sense at the time. Some just have to evolve. But over time, we witness step changes where bleeding edge becomes leading edge. And what causes that to occur is that a brand new “use case” emerges for a solution or technology that has been waiting for its time.</p>
<p><em><strong>Silence in the dark&#8230;</strong></em></p>
<p>During hurricane Sandy, many of us in the northeast were starved for information. Millions of customers were without power, gas stations were out of service, grocery stores were closed, and just about every part of life as we knew it shut down. For many, it was a “mini Katrina,” making us reflect on what life must have been like in New Orleans in 2005. For others, it was the real thing.</p>
<p>It’s hard to get real upset about things when you look at them through such a lens. In large measure, folks affected by Hurricane Sandy were pretty patient, at least in the early going. But over time, that patience waned and the demand for information escalated—information that never really materialized. For the most part, customers understood they weren’t going to get specifics, but they wanted something. What they got was nothing.</p>
<p>The sum total of the narrative was:</p>
<ul>
<li>&#8220;This is an unprecedented event&#8221;</li>
<li>&#8220;It’s not our fault&#8221;</li>
<li>&#8220;We’re all doing the best we can&#8221;</li>
<li>&#8220;It will be a minimum of 7-10 days before things return to normal&#8221;</li>
</ul>
<p>On day one, that may have been an appropriate response (or at least somewhat understandable), but with each additional day, that response created more and more frustration.</p>
<p><em><strong><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Unknown.jpg"><img class="alignleft size-full wp-image-2608" title="Unknown" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Unknown.jpg" alt="" width="248" height="203" /></a>A core competency becomes irrelevant&#8230;</strong></em></p>
<p>Ironically, Utility companies pride themselves on service excellence, and for the most part do a fairly good job of it. Most have made dramatic strides in terms of customer experience. Sure, there is a lot more they can do, but for the most part, the nature, speed, and quality of service have all improved. Most have invested significantly in upgrading core service and delivery channels (Call Center availability, CRM technology, metering and billing systems), and have expanded the range of service options (web, mobile, kiosks, etc.)</p>
<p>And as you might expect (since it is one of their biggest drivers of satisfaction), most have gotten better in terms of outage notification, communications, and restorations. Most major utilities have online outage maps available that provide location, current status, and restoration times. Infrastructure has gotten better with expanded use of distribution automation and switching technologies. The logistics of managing restoration efforts has improved. And customer communications (both proactive and reactive) have expanded. After all, it is (and should be)a core competency.</p>
<p>But eight weeks ago, none of this really mattered. Sandy was an unprecedented event. The foundation for most of the improvements referenced above was compromised by the storm. You can only provide information you have, and the damage assessments had only just begun. Even if you possess the technical and informational resources required to provide updated outage maps, doing so assumes that customers can get online to view them. Most outage notifications require a phone call. Most phones today are VOIP and require power to function. Ironically, the call centers were generally available and functional (the three times I called, the call was answered in less than twenty seconds), but with none of the other parts of the process working, the reps just became another “talking head” for what we already know (or didn’t know)—The storm was an unprecedented event. It was not their fault. They had no information. And it’s a waste of your (and by inference their) time to contact them for more information before 7-10 days had passed.</p>
<p>Electric power is an interesting kind of product. You don’t think about it much. In fact, studies have shown that the typical customer only thinks about their utility 6-9 minutes a year. You could say it’s like “air”—you only think about it when you can’t get it.  And when it’s unavailable, it certainly occupies a lot more of your mind-space. Most complaints and pockets of significant dissatisfaction can be directly ascribed to extended outage situations. And those impressions last a lifetime.</p>
<p>So while utilities have invested heavily in service improvements, one could argue that their systems have been designed for everything OTHER THAN that which poses the most significant risk to satisfaction and loyalty. But again, it’s a bit of a Catch-22. Designing a system for a low-probability but catastrophic event that most likely will render the system itself useless, seems somewhat circular and, ultimately, futile. Or does it?</p>
<p><em><strong>Customers take matters in their own hands&#8230;</strong></em></p>
<p>In circumstances like this, some customers intellectually understand the position the utility is in. They may not like it, but the more it becomes clear that they are asking for information the company simply doesn’t have and/or can’t provide, they will come to understand that continued efforts to obtain such information are pointless.</p>
<p><em style="color: #333333; line-height: 24px;"><strong><a style="text-decoration: underline;" href="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Social-Buzz.png"><img class="alignright size-full wp-image-2610" style="border-color: #bbbbbb; background-color: #eeeeee; margin-top: 0.4em;" title="Social Buzz" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Social-Buzz.png" alt="" width="300" height="191" /></a></strong></em></p>
<p>During the storm, many customers turned to online news, discussion boards, online forums, and social media for their information with varying degrees of success. What many wanted to know was whether work had begun in their area, whether the source of the problem had been identified, and a better (if not definitive) sense of restoration time. But</p>
<p>for the most part, they wanted to know that repairs in their area had been initiated. Or in some cases, THAT their power HAD been restored (Many were staying with relatives or friends out of town, and this would be their only way to learn that things were back up and running). Last year during a similar event, my wife learned we were restored via Facebook, two days before the utility reported it on the web.</p>
<p><em><strong> A solution staring you in the face?</strong></em></p>
<p>But here’s where it gets interesting. During any such wide-scale outage, there are hundreds of thousands of eyeballs scouring these channels, many capable of providing information the utility doesn’t have access to—localized damage, poles down, safety issues, and plenty more. But the vast majority of this information goes unharvested.</p>
<p>In fact, with Sandy it was just the opposite. My local utility was literally pumping out messages, at times more than three or four per hour. But the sum total of the content was—yes, you guessed it… that it was an unprecedented event; it was not their fault; that they had no information; and, yes, that unnerving seven-to-ten-day restoration prediction. There was the occasional posting of “ice and water” locations (met with sarcasm since temps were often well below freezing). There were some attempts by customers to engage with whoever was providing these messages, but it was always met with some way of saying “we don’t know”.</p>
<p>Then I noticed something interesting. A few customers began hashtagging tweets with specific information about their location. Soon others were replying in kind—simple things like “we have two trucks on our a street.” Then someone else would chime in with an address that had been restored.</p>
<p>One of the utilities in our area (not ours, mind you) even attempted to “coordinate” some of the dialogue between customers—things like “thanks for your question about such-and-such a town, we don’t know the status, but three customers are reporting activity in your area.” That type of coordination was very rare to see, and was only short lived, but someone began to see an opportunity and was willing to act on it. For the most part, though, the majority of the dialog was between and among customers, and the utilities were largely absent from the conversation, save for the repeated banter of … “7-10 days.”</p>
<p><em><strong><em><strong><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/SocialBuzz2.jpg"><img class="alignright" title="SocialBuzz2" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/SocialBuzz2.jpg" alt="" width="252" height="253" /></a></strong></em>What if?&#8230;</strong></em></p>
<p>OK—extrapolate with me a bit here…</p>
<p><em>What if the posts and tweets of customers were slightly more structured—like we saw with customers hash-tagging their locations?</em></p>
<p><em>What if utility reps played a role in facilitating the conversations between customers and other information providers and consumers?</em></p>
<p><em>What if we had systems that could synthesize large volumes of unstructured data that was already out there and actually add value to it?</em></p>
<p><em>What if utility workers and restoration crews could post directly to appropriate forums and boards as the work was being done?</em></p>
<p>In short, what if the customer was actually a participant in providing customer service?</p>
<p><em><strong>Emerging Models&#8230;</strong></em></p>
<p>Farfetched? Perhaps.<br />
But there are models that are beginning to look exactly like this.</p>
<p><img class="alignright  wp-image-2612" style="border-color: #bbbbbb; margin-top: 0.4em; background-color: #eeeeee;" title="Screen Shot 2013-01-16 at 11.23.50 AM" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Screen-Shot-2013-01-16-at-11.23.50-AM.png" alt="" width="254" height="72" /></p>
<p>GifGaf , a UK mobile service provider has migrated almost completely to customer-provided customer service. No call centers, no lobbies, just a portal for customers to report issues and actually play a role in responding to and solving problems. There are reward mechanisms where customers can earn points toward minutes or other merchandise for contributing valuable content and solutions. The model isn’t perfect, and some customers would say it’s just another way to save money and push self-service, but if you look a bit more closely, you’ll see that this is a radically different approach.</p>
<p><a href="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Screen-Shot-2013-01-16-at-11.24.36-AM.png"><img class="alignright size-medium wp-image-2613" title="Screen Shot 2013-01-16 at 11.24.36 AM" src="http://www.onvectorconsulting.com/wp-content/uploads/2013/01/Screen-Shot-2013-01-16-at-11.24.36-AM-300x205.png" alt="" width="300" height="205" /></a>There is a variety of services (see-click-fix, and get satisfaction) to name a few , that have begun to apply the concept of “crowdsourcing” (a more formal name for aggregating and extracting value from available streams of social content in the provision of services) to the provision of infrastructure and other utility services. In both cases, these companies provide a structured app for customers to report issues, and companies to respond, while tracking progress along the way—everything from fixing potholes to streetlights. Only these services are not completely tied to the company providing the service. It does, however, behoove the service provider to monitor and participate in the resolution process, since the complaints, issues, and resolution have so much visibility.</p>
<p><em><strong>Take-aways&#8230;</strong></em></p>
<p>I believe we are at an interesting juncture in customer service—one that can not only improve the process and costs of providing customer solutions, but radically change the delivery model.</p>
<p>To me, the take-aways are threefold:</p>
<ol>
<li>Become a more active participant in your customer communities. Don’t just settle for perfunctory uses of Twitter and Facebook as communication channels. Engage in a value-adding way to the dialogue that is already taking place. Instead of trying to create new followers or get “Liked,” try to join in on active discussions and dialogue.</li>
<li>Change how we think about service infrastructure and technologies. I would say 90% of our systems are based on using information collected from customers by our companies FOR our companies. Instead, think about how we might harness information from the broad range of unstructured data already out there (information already provided by our customers FOR our customers) in the provision of better and more relevant customer experiences.</li>
<li>Focus on the one or two areas where dissatisfaction and loyalty are most at risk. Most companies design their service infrastructures for the average environment, when the larger risk is posed by the anomalous circumstance (the three-week outage, the blizzard that closes ten airports, etc.). That will likely change the tools, technologies and even the customer portals that are used for providing service, as well as who actually provides it.</li>
</ol>
<p>Some could argue that engaging in this sort of thinking poses a significant competitive threat (by removing you from the process and giving competitors a window into your customer relationships). I would argue just the opposite—that customer communities exist all around us, and many of us are blind to the value it can provide in terms of better, cheaper, and more relevant service.</p>
<p>Instead of viewing it as a threat, look for ways to engage with it and add value.</p>
<p>-b</p>
<p>&nbsp;</p>
<div><em style="color: #333333; line-height: 24px;"><br />
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		<title>I&#8217;ve Got Your Number!!!- The simple touches that are redefining customer &#8220;WOW&#8221;</title>
		<link>http://www.onvectorconsulting.com/ive-got-your-number-the-simple-touches-that-are-redefining-customer-wow/</link>
		<comments>http://www.onvectorconsulting.com/ive-got-your-number-the-simple-touches-that-are-redefining-customer-wow/#comments</comments>
		<pubDate>Sun, 12 Feb 2012 18:37:49 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Performance Management]]></category>
		<category><![CDATA[Performance Measurement]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=1711</guid>
		<description><![CDATA[Companies once used the "heroic" actions of their customer service and front-line staff to create that unique and differentiable customer experience. But today, it is the much smaller and appearingly insignificant aspects of organization's products and services that are creating the biggest breakthroughs in customer experience and brand differentiation.]]></description>
				<content:encoded><![CDATA[<h4><strong><em>Remember these guys?</em></strong></h4>
<p><img class="alignright" style="color: inherit; font: normal normal normal 15px/normal 'Helvetica Neue', Helvetica, Arial, sans-serif; font-style: inherit; font-weight: inherit; line-height: 1.625; border-style: solid; border-color: #dddddd; margin-top: 0.4em; display: inline; margin-left: 1.625em; margin-bottom: 1.625em; border-width: 1px; padding: 6px;" title="Screen Shot 2012-02-12 at 12.19.55 PM" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/screen-shot-2012-02-12-at-12-19-55-pm.png" alt="" width="146" height="198" /></p>
<p>Of all the business functions discussed in the arena of performance improvement over the years, Customer Service has certainly gotten its fair share. But lately, with the rapidly growing range of new enabling technologies, and an accelerated adoption rate that shows these technologies are starting to take root, we are now seeing some of the best performance “breakout” stories since the legendary FedEx, Nordstrom, and Toyota (Lexus) case studies of the 90’s.</p>
<p>What’s interesting about today’s success stories is that it’s no longer about what I call the customer “heroics”&#8211; the FEDEX guy who hires a plane to deliver a package that just “has to get there overnight”, or the Nordstrom sales clerk who agrees to sell a single shoe to a woman with only one leg. And it’s not about the technologies. It’s now about the little things&#8211;the refreshingly responsive, yet consistent, way in which everyday transactions get executed.</p>
<p><em><strong>I&#8217;ve got your number</strong></em></p>
<p><em><strong></strong></em>A few weeks ago I called Apple to check on a repair (self induced). I was in my car and didn’t have time to look up the number of the repair facility or the order number. I figured I could call Apple’s main number (which they apparently pre-program into your phone), and have them look me up via my email or phone number. If I was lucky, they&#8217;d transfer me directly to the repair facility.</p>
<p><img class="alignright" title="Image" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/image1.jpg" alt="" width="157" height="234" /></p>
<p>I called the number, their system recognized mine, and without any IVR menus, speech requests, or human involvement, I heard “We recognize that you have a repair with us. It was completed yesterday and shipped at 5:23PM for Saturday delivery at your home address…If you need anything else, just say what you need.” Everyone these days has voice recognition and ANI capabilities in their call center. But in this experience, everything was placed exactly right, in the precise order required to produce a great experience</p>
<p>I had a similar experience last year with AT&amp;T Mobile, when I received a text that read:</p>
<blockquote><p><em>“Your bill is ready for $xxx.xx (which is my average bill amount). You can view it on ATT.com or by clicking here.&#8212;&#8211;</em><em>Please respond “full” if you would like to pay in full, or a specific amount ‘XX.XX’ We will process your payment using the credit card on file&#8221;</em></p></blockquote>
<div style="width: 247px" class="wp-caption alignleft"><a href="http://performancemanagementperspectives.files.wordpress.com/2012/02/screen-shot-2012-02-12-at-11-15-11-am.png"><img title="Screen Shot 2012-02-12 at 11.15.11 AM" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/screen-shot-2012-02-12-at-11-15-11-am.png" alt="" width="237" height="157" /></a><p class="wp-caption-text">Superman is still there- he&#39;s just not as conspicuous!</p></div>
<p><em> </em>These days, nearly every company I work with has a mobile strategy, or at least has one on the drawing board. But this is the best application of mobile service I’ve seen, again, largely because of how the process was designed and sequenced. Sure, I could go visit the website and see my bill, then go home and pay it like nearly every other system. Or I can simply respond “full.”</p>
<p>Of course, there is the Apple Store in your local mall that sells more per square foot than just about any retailer in your state. These stores are always packed, even at 1pm on a slow Wednesday. There are no cash registers. Cards are swiped by sales clerks using hand-held devices, which prompts someone in the back to quickly bring the product to you. They offer to print or email your receipt on the spot, and you’re off. I can remember distinctly the first time I experienced this, actually leaving the store feeling like I had forgotten something.</p>
<p>Truth is, I DID forget something&#8211; all the needless paper and annoyance that usually accompanies routine retail transactions!</p>
<p>So here’s the moral of those stories, and others like it&#8212;It’s no longer about the heroics. It’s no longer about the technologies. It’s about how well those things are understood in the complete context of customer experience drivers, and then deployed in a mass producible way.</p>
<p><img class="alignleft" title="Screen Shot 2012-02-12 at 11.20.39 AM" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/screen-shot-2012-02-12-at-11-20-39-am.png" alt="" width="138" height="106" /><em><strong>Build in the &#8220;small stuff&#8221; where it matters most</strong></em></p>
<p><strong></strong>Next time you are getting ready to deploy one of those myriad of “must have” or “way cool” technologies for the sake of customer satisfaction or productivity improvement, think about the following in terms of HOW and WHERE you will deploy it within your process:</p>
<ul>
<li>Will it help me produce a faster TTE (Time to Engagement)? –- That’s the time it takes from the customer&#8217;s initial call arriving until they actually feel that the agent or system understands and is engaged in solving the problem (rather than the incessant and often redundant asking/probing/clarifying about why the person is calling). How long does it take to get past all that script-based validation, authentication, menu choices, long-winded greetings, survey requests, transfers, redundant requests, etc.)?</li>
<li>Will it improve the speed of the transaction? Will it mean more or fewer steps for the customer? This sounds simple, but in most applications of CS technology &#8212; IVR, ANI, Voice Recognition -– the pain factor for the customer usually goes up, even though cost for the company may be going down.</li>
<li>Does it improve customer convenience? What I liked about the AT&amp;T bill text experience is that the entire solution took place in real time, rather than as three separate transactions (viewing text (on the run), viewing bill (at your desk), paying bill (at home).</li>
<li>Is it respectful of the customer&#8217;s time? New technologies like <em>Virtual Hold</em> allow a caller to forego waiting in queue by having the system maintain the caller&#8217;s place in line and call them back when an agent becomes available (or at a time agreeable to the caller).</li>
<li>Will it quietly steer the customer to a better solution if one exists? I like the IVR hold schemes that offer tips or better calls to action, whether or not they actually produce one on the spot. Even better if the solution is unique and “smart” enough to warrant a “wow” reaction. I had this experience where I was attempting a complicated installation, and the hold narrative mentioned a site that there were video tutorials available. That was better than another instrumental version of “<em>Just the Way You Are</em>,” and far better than “you can visit our website&#8221;.</li>
<li>Will it produce a notable distinction between what occurs and what a customer was expecting? I know that sounds trite, but very few actually do. Remember, it’s not only the magnitude of the distinction, but how meaningful the result is as well. Significantly reducing the wait time on-hold isn&#8217;t going to buy you much good will if the service the customer receives remains inadequate. I use the term “refreshingly responsive” (implying responsive, but with a useful but unexpected touch &#8212; the service equivalent of <em>lagniappe</em>).</li>
</ul>
<p>One of my clients uses the term “smart value” when describing a product transaction that is reinforcing to the customer (I made a good choice, and I feel smart for having done so). I would argue that the same dynamic is possible with transactions. Admittedly, it&#8217;s very challenging to make a customer feel good about making a call to resolve an issue. But I’ve gotta tell you, when it happens, it certainly carries a loyalty premium.</p>
<p>And that&#8217;s how we redefine WOW!</p>
<p>-b</p>
<p><em>Bob Champagne is Managing Partner of onVector Consulting Group, a privately held international management consulting organization specializing in the design and deployment of Performance Management tools, systems, and solutions. Bob has over 25 years of Performance Management experience with primary emphasis on Customer Operations in the global energy and utilities sector. Bob has consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com</em></p>
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		<title>Sure, I&#8217;ll Jump Right on That!</title>
		<link>http://www.onvectorconsulting.com/sure-ill-jump-right-on-that/</link>
		<comments>http://www.onvectorconsulting.com/sure-ill-jump-right-on-that/#comments</comments>
		<pubDate>Sun, 12 Feb 2012 03:29:49 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Process Improvement]]></category>
		<category><![CDATA[CEM]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Enterprise Performance]]></category>

		<guid isPermaLink="false">http://www.onvectorconsulting.com/?p=1683</guid>
		<description><![CDATA[For decades now, behavioral management techniques have been used to drive desired behaviors of consumers, and measure the effects of their marketing and customer strategies. But lately, companies appear to be losing sight of some of the most basic tenants of behavioral change, and as a result are likely to miss the more significant opportunities that lie ahead.]]></description>
				<content:encoded><![CDATA[<h2><strong><em>Inspiring Action- An Art or a Science? </em></strong></h2>
<p><img class="alignright" title="images" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/images2.jpeg" alt="" width="187" height="187" /></p>
<p>I&#8217;ll jump right on that!! Five simple words that can either convey the attitude of a person eager and motivated to get something done, or a sarcastic way of declining a request based on it being either an uninspiring or unrewarding experience (or perhaps both).</p>
<p>Much of what we know about performance management comes from the behavioral sciences and the work of legendary psychologist B. F. Skinner. In case you missed that day in your Psych 101 class, basic behaviorism is built on the simple concept of providing a tangible reward&#8211;a piece of food in the case of experimental animals&#8211;in response to the correct achievement of some basic task (or, conversely, the withholding of a reward&#8211;or administration of a penalty of some sort&#8211;for failure to complete the task).</p>
<h2><img class="alignleft" style="color: inherit; font: normal normal normal 15px/normal 'Helvetica Neue', Helvetica, Arial, sans-serif; font-style: inherit; font-weight: inherit; line-height: 1.625; border-style: solid; border-color: #dddddd; margin-top: 0.4em; float: left; display: inline; margin-right: 1.625em; margin-bottom: 1.625em; border-width: 1px; padding: 6px;" title="220px-B.F._Skinner_at_Harvard_circa_1950" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/220px-b-f-_skinner_at_harvard_circa_1950.jpg" alt="" width="176" height="193" /><em>Pigeons, Teenagers, and Everything In Between</em></h2>
<p>When we talk about the field of performance management&#8211;be it measurement, goals and targets, tracking and reporting, performance communications, back-end rewards, or the myriad of other &#8220;moving parts&#8221;  within the performance management process&#8211;we are really talking about elements that are at the core of managing human behavior.</p>
<p>While most of  us regard performance management techniques as a way to motivate our organizations and employees to achieve &#8220;peak performance&#8221; levels, the same techniques can be used in an infinite number of other areas, across both the work and personal spectrum. Remember, while Skinner&#8217;s subjects were originally pigeons, his techniques have been applied effectively in everything from corporate performance to the most basic of personal transactions with our children&#8230; and everything in-between.</p>
<h2><em><strong>&#8230;and Yes, Customers Too!</strong></em></h2>
<p>Recently, I&#8217;ve been giving a good deal of thought to how we can use these same principles in our relationships with customers. There are many things we do to encourage customers to behave in certain ways. Whether it&#8217;s  buying more of a product, maintaining allegiance to our brand, or other more subtle changes we seek in customer behavior (shifting to less costly billing and payment channels, moving consumption to more optimal places in our delivery system, increasing utilization of our automated inquiry channels (website, IVR, etc.), participating in recycling campaigns, etc.), the age old &#8220;behavior modification&#8221; techniques used by the early behaviorists, still present in most of our performance management organizations, are just as, if not more, important to our relationships and interactions with customers. It&#8217;s all about creating a line of sight between a desired outcome and the behaviors required to drive it, keeping that line of sight visible, and ensuring that all requisite parts of the process are in place to motivate and reinforce staying on that path and consistently hitting the desired target.</p>
<p><img class="alignright" title="images" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/images3.jpeg" alt="" width="259" height="195" /></p>
<p>A few days ago, a close friend of mine who enjoys spending an occasional weekend in Las Vegas (something I know very little about, or at least wouldn&#8217;t  admit to if I did!), received, during one of these periodic jaunts, a loyalty card from a casino offering him certain amenities whenever he visited their property&#8211;usually free (or at least that&#8217;s the spin they put on it) dinners, valet parking, etc. Personally, I find it hard to see these loyalty programs as being of any great value, since I&#8217;m sure the rewards pale in comparison to how much casinos &#8220;fleece&#8221; their patrons. But regardless of how I view that industry and their programs, my friend seems to enjoy them. And, well, who am I to judge?</p>
<p>After visiting the casino a few times in 2011, he received a letter letting him know that he had reached a new loyalty level (again, one has to wonder about achieving a new loyalty level at a casino whose primary mission it is to take your money. But let&#8217;s not digress again). After quickly congratulating him on achieving this &#8220;new loyalty tier&#8221;, the program manager went on to describe how close my friend was to reaching the <em>next</em> level beyond his newly attained one.</p>
<p>I may not have all of my numbers exactly right, but it went something like this: &#8220;Congratulations on achieving our Silver level by earning 15,000 points! You&#8217;re now only a few steps away from hitting the Gold level. By earning an additional 900,000 points, you&#8217;ll enjoy all the benefits of Silver PLUS all the many new benefits reserved exclusively for our Gold members!&#8221; etc, etc, etc&#8230;</p>
<p>Sometimes there is not enough oxygen on the planet to describe how many things are wrong with a particular business practice. This was one of those times. But the letter alone did most of the damage. Whatever the expenditures required to get to the &#8220;silver level&#8221; (and I really didn&#8217;t want to know the details), simple math told him that he&#8217;d need to spend many, many, many multiples of that to even approximate the next level. After a good laugh, his response was: <em><strong>&#8220;Sure, I&#8217;ll get right on that!&#8221;</strong></em></p>
<h2><em>Motivating Loyalty-</em></h2>
<h2><em></em><em>The good, the bad and the ugly&#8230;</em></h2>
<p><img class="alignright" title="images" src="http://performancemanagementperspectives.files.wordpress.com/2012/02/images1.jpeg" alt="" width="260" height="194" /></p>
<p>Loyalty programs all include features of this sort: tiers of benefits that reward buying behavior, incentives for climbing to the next tier, quantifiable measures and tracking schemes that let you know how you are doing on your progress, and all the communication required to motivate you up and over the &#8220;next hurdle.&#8221; It doesn&#8217;t matter whether the program is for frequent fliers, hotel visitors, or even banking savers (an alternative I would encourage my friend to consider). There is no doubt that such programs work.</p>
<p>What differentiates the good ones is not simply the presence of elements like measures, goals, and rewards but, rather, the range of &#8220;moving parts&#8221; within the PM process I alluded to earlier. For example, let&#8217;s look inside my friend&#8217;s experience. It wasn&#8217;t the lack of a measurable outcome or awareness of what he had to do to get to the next tier that created the breakdown, but rather the enormous gap between the tiers (where the target was set), its level of achievability, and the manner in which progress was communicated.</p>
<p>Sometimes the issue is as simple as managing distinctions between tiers and levels. For a person like me who travels extensively, upgrades, for example, are certainly important. But as airlines continue to consolidate, customers who might have grown used to being consistently upgraded now find that while they were once big fish in a small pond, they have now become average-sized fish in a much larger lake. Anyone caught in the consolidation of the United and Continental loyalty programs knows this first-hand. In fact, there are now more &#8220;elite&#8221; than &#8220;non-elite&#8221; fliers (usually by a factor of two) competing for that &#8220;special boarding&#8221; privilege (essential for getting dibs on very scarce and valuable carry-on luggage space). So for me, the boarding privileges have become more valuable than the upgrade itself. Simply differentiating between platinum, gold, and silver elite fliers in the boarding process would improve the experience of those with the highest travel frequency. Further distinctions (within the higher tier) would also help to create more perceived equity within the ever growing mass of frequent travelers when it comes to upgrades.</p>
<p>More often than not, the differences lie in more subtle application of the &#8220;moving parts&#8221; within the process. There is a principle most of us may remember from that Psych 101 course that deals with the specifics of reinforcement &#8220;schedules&#8221; (variable/fixed intervals, for example). While it&#8217;s nice to get &#8220;upgraded&#8221; every single time we exhibit the expected behavior, true behaviorists would tell you that is a clear path to complacency (besides which, the experimenter&#8211;or in our case, the program manager&#8211;ends up spending a great deal more than necessary in rewards in order to achieve a desired result). Whether they are right or wrong in this assertion is not the issue; market research can answer that. The real issue is that nuances such as this remain very much in play and should not be simply ignored or overlooked in a program&#8217;s design. Most of us can recall a time as a customer when receiving an unexpected extra (what we in the south call <em>lagniappe</em> ) did, in fact, generate good will and motivate improved buy behavior. A colleague of mine talks about this quite extensively on his blog <a href="http://marketinglagniappe.com/" target="_blank">&#8220;Marketing Lagniappe,</a>&#8221; and, although he does not purport to be a true southerner, he understands the concept and its application better than most that actually hail from the &#8220;Big Easy&#8221;.</p>
<h2><em>Incorporating Performance Management into your CEM strategies&#8230;</em></h2>
<p>Like any good chef, there are many ingredients that need to be mixed in the correct sequence, at the right temperature, and  presented in the right way to create that high-quality, positive experience. Same goes for designing our customer experiences:</p>
<ul>
<li>Are the incentives you&#8217;re offering ones customers even care about? How much time and energy are you wasting on deploying innovative tools that have more impact for you that they do for customers?</li>
<li>Are your incentives easy for customers to redeem? .Small &#8220;point of sale&#8221; rebates are often have far more &#8220;relevant impact&#8221; than larger ones that require more customer effort to redeem (after adjusting for lower redemption levels)</li>
<li>Do you rely on hidden tricks to manage program costs (e.g., points that expire, rewards that require supplemental cash payments, etc.) that can actually produce more negative that positive impact on customer experience?</li>
<li>Are the measures you&#8217;re using easy and simple for customers to understand and use in tracking their progress to that next reward or level?</li>
<li>Have you considered the effect of different reinforcement schedules? (Fixed versus variable intervals? Different types and quantity of rewards?</li>
<li>Have you given enough thought to where program &#8220;targets&#8221; (rewards and tiers) are set?</li>
<li>Are the targets achievable in reasonable amounts of time?</li>
<li>Is your messaging and communication sufficiently compelling?</li>
</ul>
<p>Clearly these techniques apply any time we are trying to convince someone to &#8220;jump right on it.&#8221; But in the world of customer experience, where competitive forces are always at play and differentiation is becoming more and more critical, it may just be the most important consideration in your product and program design.</p>
<p>-b</p>
<p><em>Bob Champagne is Managing Partner of onVector Consulting Group, a privately held international management consulting organization specializing in the design and deployment of Performance Management tools, systems, and solutions. Bob has over 25 years of Performance Management experience with primary emphasis on Customer Operations in the global energy and utilities sector. Bob has consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com</em></p>
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		<title>Metrics that make you go&#8230;YAWN&#8230;</title>
		<link>http://www.onvectorconsulting.com/metrics-that-make-you-go-yawn/</link>
		<comments>http://www.onvectorconsulting.com/metrics-that-make-you-go-yawn/#comments</comments>
		<pubDate>Fri, 28 Oct 2011 19:20:53 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Intelligence]]></category>
		<category><![CDATA[CEM]]></category>
		<category><![CDATA[Corporate Performance Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Lean]]></category>

		<guid isPermaLink="false">http://epmedge.com/?p=1283</guid>
		<description><![CDATA[Inspiring or Uninspiring?                                                                           [&#8230;]]]></description>
				<content:encoded><![CDATA[<h2><em><a href="http://www.onvectorconsulting.com/wp-content/uploads/2011/10/yawn.jpeg"><img class="alignright size-full wp-image-1290" title="yawn" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/10/yawn.jpeg" alt="" width="188" height="268" /></a>Inspiring or Uninspiring?                                                                                                       </em><em>-It all starts with the strategy&#8230;</em></h2>
<p>On each client engagement, regardless of type (Business Planning, Assessments, Turnarounds, Process Improvement, etc.), we invariably find ourselves working extensively with what I call the company&#8217;s or business unit&#8217;s Strategic Performance Framework (i.e., the specific goals, objectives, and KPIs of the area in focus). That is because these three critical elements serve as the foundation for everything that follows. It essentially answers the proverbial  question &#8220;For the sake of what? (FSOW?). FSOW are we making this or that investment? FSOW are we developing a new product? FSOW are we consuming resources to improve a specific business process?  FSOW are we changing our organization chart (again&#8230;)?</p>
<p>Without a thorough analysis and understanding of  goals, objectives, and KPIs, any plan that is developed will simply be a formalized road map for throwing darts at a wall. Goals and objectives tell us the destination. KPIs give us continuous feedback as to whether or not we&#8217;re on course for our journey, or if deviations from plan are occurring.</p>
<p>This shouldn&#8217;t be new to many of us, as any manager worth his salt understands the basics of strategic thinking and performance management. Yet, when we step back and look at the organization or business unit in total, it&#8217;s not unusual to observe some big &#8220;cracks&#8221; in the foundation. And often it is often the KPI&#8217;s and metrics that are the first indication that the strategic underpinnings of the business unit are starting to get shaky.</p>
<h2><em><strong>Strategies vary&#8230;and so should KPIs&#8230;</strong></em></h2>
<p>Working with as many organizations as I do, you would naturally expect the destinations of each client to be different. Take &#8220;customer contact&#8221; organizations, for example, where there are clearly a myriad of contributions that the organization can be set up to achieve &#8212; providing purely reactive service, converting leads, driving participation in customer programs, increasing market share, retaining customers, building loyalty&#8230; the list goes on. And most often, these goals and objectives do, in fact, differ from company to company (although there is a growing tendency among managers to &#8220;follow the pack&#8221; where  goals and objectives are becoming more about &#8220;maintaining the course&#8221; than about providing new and inspiring destinations &#8212; a subject for another day!)</p>
<p>But despite the wide array of strategies we expect, and often see, we still find that nearly every customer service organization focuses on the same operating metrics. Back to the Call Center for a moment, here&#8217;s a list I can almost guarantee that EVERY company focuses on.</p>
<ul>
<li>Speed of Answer/Service Level</li>
<li>Abandon Rate</li>
<li>Call Queue Length</li>
<li>Average Handle Time</li>
<li>Agent Satisfaction</li>
<li>Agent Availability/Productivity</li>
</ul>
<p><a href="http://www.onvectorconsulting.com/wp-content/uploads/2011/10/ticker.jpg"><img class="alignleft size-full wp-image-1291" title="ticker" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/10/ticker.jpg" alt="" width="259" height="194" /></a> The list goes on&#8230;</p>
<p>No matter how different the objectives are for the Customer Service channels, the measurements (the things the reps care most about since they influence everything from raises to career progression) remain the same. Don&#8217;t believe it? Next time you see your call center manager at the coffee machine, ask them what the top three measures of success are for their group. Try the same question with the reps themselves.</p>
<p>How can that be? Dramatically different destinations, yet metrics that tell you little about progress toward the destination, assuming your mission is something other than churning calls, tasks, and shifts.</p>
<h2><em><strong>Are you &#8220;de-motivating&#8221; your workforce?</strong></em></h2>
<p>This is clearly a sad state of affairs, because it not only tells us how disconnected our day-to-day activities are from our strategy (read PURPOSE), but really exemplifies how intellectually lazy our strategic planning processes have become. Assuming the organization has developed a compelling and inspiring purpose (which many have, but most still lack), very few have a set of KPIs that track with it. Worse yet, most of these KPIs (the ones above that have been measured for decades) scream for more clarity, consistency, and targets based on something other than &#8220;finger in the wind&#8221; aspirations or the &#8220;annual 5% improvement.&#8221;</p>
<p>And as these KPIs trickle down into the organization, their relevancy begins to wane exponentially. What can a call center manager or rep do from one day to the next to drive an outcome like average service level? Sure, there are long term strategies to &#8220;course correct&#8221; when negative trends emerge (better forecasting of workload, more flexible staffing strategies, etc.), but what about day-to-day behavior? Most often, this is left to the intuitive feel of the operating manager and their motivational style, which can affect consistency and effectiveness over time. Even if you end up measuring things that are &#8220;conventional&#8221; or somewhat dated, failing to link these in some coherent and causal manner to the organization&#8217;s broader goals will undoubtedly elicit the proverbial yawn&#8230;that is assuming they haven&#8217;t already dismissed the metrics as irrelevant.</p>
<h2><em><strong>Waking up your strategies and KPIs&#8230;</strong></em></h2>
<p><em><strong></strong></em><span class="Apple-style-span" style="font-size:13px;font-weight:normal;">So here are my five tips for &#8220;waking up&#8221; your customer metrics:</span></p>
<div>
<ul>
<li>Make sure they are built on the foundation of a compelling and clearly articulated strategy. If your strategy doesn&#8217;t get you out of bed energized every morning, you&#8217;ve got more work to do. Resist the temptation for that &#8220;follow the pack&#8221; 3-5% improvement gain from last year. What is it your business unit is really there to accomplish? Think business outcomes (sales, leads, changes in customer disposition, etc&#8230;) rather than operational activities (calls answered, transaction speed, etc&#8230;)</li>
</ul>
<ul>
<li>Line up your tactical objectives to your strategic purpose. If your goal is, say, to improve customer loyalty, then your objectives should revolve around the known drivers of loyalty. And avoid the &#8220;circular answer&#8221; to these questions. An objective for attaining loyalty is NOT to improve transaction satisfaction, but more likely, to eliminate the need for the transaction in the first place.</li>
</ul>
<ul>
<li>Develop relevant, clearly understood, customer-centric KPIs. Should you really be measuring, &#8220;average service level&#8221;, or should you be measuring the number of times a call exceeds 20 minutes, or the number/percent of calls that get dropped prior to resolution, etc. I&#8217;d submit these are bigger drivers of loyalty and dissatisfaction than, say, average queue lengths or duration of after-call work. Think one or two levels beyond what you&#8217;re currently measuring. Think drivers versus macro results. If you&#8217;re on a journey from New York to California, a measure like service level is akin to telling you what state you&#8217;re in when it would be more helpful to know when you go off course by x%.</li>
</ul>
<ul>
<li>Make metrics relevant at the department level AND the work face &#8212; the best metrics are those that can be discussed and improved at any level in the organization. If your objective is to eliminate a particular source of dissatisfaction, then declare what that driver is and measure it at every level across the business. Get the organization talking in the same language and counting things the same way, and you&#8217;ll be tracking a lot closer to your desired outcome.</li>
</ul>
<p>Having a set of metrics for the sake of measuring things is not only a waste of time, but can be a real distraction to achieving your desired outcomes as a business. If your mission, goals and objectives have been declared in a clear and compelling manner, then do yourself a favor and spend some time making sure your metrics will guide you toward that outcome.</p>
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<p>-b</p>
<p><em>Author: Bob Champagne is Managing Partner of onVector Consulting Group, a privately held international management consulting organization specializing in the design and deployment of Performance Management tools, systems, and solutions. Bob has over 25 years of Performance Management experience and has consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com</em></p>
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		<title>Does Size Really Matter?</title>
		<link>http://www.onvectorconsulting.com/does-size-really-matter-2/</link>
		<comments>http://www.onvectorconsulting.com/does-size-really-matter-2/#comments</comments>
		<pubDate>Wed, 13 Apr 2011 14:12:04 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Intelligence]]></category>
		<category><![CDATA[Business Process Improvement]]></category>
		<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[Corporate Performance Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Performance Management]]></category>

		<guid isPermaLink="false">http://epmedge.com/?p=1033</guid>
		<description><![CDATA[A Little &#8220;Customer Voyeurism&#8221;&#8230; Last week, my family and I took a vacation to visit some of my in-laws in California. For those of you who know me, you&#8217;ll appreciate the fact that any trip for me is an opportunity [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><img class="alignright size-full wp-image-1041" title="sizesummo" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/04/sizesummo.jpg" alt="" width="210" height="240" /></p>
<p><strong><em><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">A Little &#8220;Customer Voyeurism&#8221;&#8230;</span></span></em></strong></p>
<p>Last week, my family and I took a vacation to visit some of my in-laws in California. For those of you who know me, you&#8217;ll appreciate the fact that any trip for me is an opportunity for a little &#8220;customer voyeurism.&#8221; That is, I very much enjoy watching exchanges between customers and service providers, whether I am engaged in the transaction or not, largely because they provide me with a wealth of perspectives that serve to validate and augment the many years of performance data, benchmarks and trends I&#8217;ve collected in my research and client engagements. So, while spending part of my vacation documenting the customer experiences of myself and others may seem a little weird to some of you, I was not about to miss the insights that would undoubtedly be generated by this seven-day excursion into the depths of airline, restaurant, amusement park, golf course, and taxicab servicing processes.</p>
<p>Like most, this trip did not disappoint (as far as the volume of insights and &#8220;take-aways&#8221; go). While there was no shortage of examples on both the good and bad aspects of the customer experience (too many to share in one post), I decided to zero-in on what I am finding to be an interesting phenomenon, i.e., the apparent<em><strong> implication of company size on customer satisfaction, engagement, and perception</strong></em>.</p>
<p>Here&#8217;s what the data from my little informal research gig told me:</p>
<ul>
<li>The vast majority of transactions (experiences) appeared to be &#8220;issue neutral&#8221;- apparently meeting expectations of the customer (deduced through a lack of a visible change in emotion on either side)&#8230;Note that I use the word expectations deliberately since I believe many customer&#8217;s expectations are considerably lower than in past years. Hence, delivering against a &#8220;bar&#8221; that is set very low is not likely to produce a lot of emotion other than resignation or apathy.</li>
<li><img class="alignright size-full wp-image-1042" title="Screen shot 2011-04-12 at 12.01.08 PM" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/04/screen-shot-2011-04-12-at-12-01-08-pm.png" alt="" width="287" height="185" />While they were few and far between, there were failures and successes on &#8220;the fringes&#8221; of the distribution. I&#8217;ve shown a simple example of what I mean, although I believe actual research on a broader set of experiences would probably show that the distribution is anything but &#8220;normal&#8221; /gaussian (i.e. these days it is likely skewed to the left assuming customers still have some semblance of  expectation (hope) of good service, which of course, is debatable  (I&#8217;ll leave that for another post).</li>
</ul>
<p style="padding-left:30px;">That notwithstanding, If we were plotting this data, we&#8217;d be talking about a data distribution with some range of values that characterize the majority of observations, and a small number of <em>significant negative </em>(small in number, but &#8220;intense&#8221; as far as generating negative emotion&#8230;and what our lean or six sigma brethren would call &#8220;failures&#8221;),<em> and significant positive experiences </em> (pure, but perhaps unexpected, delight- or what my friend <a href="http://9inchmarketing.com/about-the-author/" target="_blank">Stan Phelp&#8217;s</a> at <a href="http://9inchmarketing.com/" target="_blank">&#8220;9 Inch Marketing&#8221; </a>(no relationship to the title of this post!!!) likes to call &#8220;<em><strong><a href="http://www.marketinglagniappe.com/blog/1001-examples-of-lagniappe/" target="_blank">Lagniappe&#8221; </a></strong></em><a href="http://www.marketinglagniappe.com/blog/1001-examples-of-lagniappe/" target="_blank">in his &#8220;purple goldfish&#8221; project</a>), at the &#8220;tails&#8221; of the distribution.</p>
<p style="padding-left:30px;">In my experience on this trip, the above distribution was more in line with my observations in that there were probably an equal number of positive and negative experiences on each side of the norm, along with a similar proportion of significant negative and positive experiences on the fringes. The following however, was particularly noteworthy.Most</p>
<ul>
<li>
<ul>
<li>(90%+) of the really poor exchanges (generating a fairly clear display of emotion from neutral, to visibly &#8220;pissed&#8221;) occurred with what I would call larger more established companies</li>
<li>Most (60%+) of the really positive exchanges (generating what we might refer to as &#8220;delight&#8221;, or as Stan Phelps likes to refer to it, &#8220;customer lagniappe&#8221;) occurred with small companies (&#8220;Mom and Pops&#8221; and/ or specialty stores in cottage industries)</li>
</ul>
</li>
</ul>
<p>I&#8217;ll say again, that throughout this trip, I was only able to observe several dozen transactions between a variety of customers and service providers, including those encountered by yours truly. And while this hardly qualifies as a statistically relevant sample, and falls well shy of what I would consider a rigorous research approach, it served its purpose of identifying a subject worthy of some debate and dialogue.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">Why Size Matters&#8230;</span></span></strong></em></p>
<p>Why does the above phenomenon occur? Hard to say exactly, but my hunch would be that it has a lot to do with the history and evolution of these organizations. Clearly the smaller &#8220;niche players&#8221; have a vital need to differentiate and compete, since many lack the market size and scale to do so &#8220;naturally.&#8221; And while service is one way to accomplish that differentiation,  you&#8217;d expect some real &#8220;over-achievement&#8221; in this segment. In fact, the brand identity of many of these companies is directly tied to some &#8220;exceptional&#8221; aspect of their product or service offering (e.g. the special touch in the packaging, the handwritten thank-you note, or similar gestures). It&#8217;s a necessity for these companies, and when they realize they&#8217;ve stumbled onto a differentiator (deliberately or by accident), it&#8217;s relatively easy to clone and replicate.</p>
<p>No so much with the larger players. Sadly, many of the companies causing the above &#8220;grief&#8221; were once viewed as nimble and leaders in CS space (think  wireless providers, regional airlines, etc.). Not anymore. Sure, they all have their positive exceptions, but with these companies, many of the interactions have been routinized into their operational processes and automated systems, most of which were built on the foundation of operational and technology excellence, rather than on the basis of what differentiated their service to begin with. That leaves the only opportunity for real customer &#8220;delight&#8221; in the hands of standout employees operating &#8220;on the margin&#8221;, often operating  outside of the process to either strengthen the exchange or recover from a process-inflicted problem. While scale and size should be an advantage, many of these companies have allowed it to become a disadvantage.</p>
<p>That is not to say that the larger companies did not generate some level of delight, and that the smaller companies didn&#8217;t generate some significant failures. For example, I did get a &#8220;call back&#8221; from a CSR after a &#8220;disconnect&#8221;  from a rather large company call center,  which was nice to see for a change. I also experienced what I&#8217;d call a &#8220;super save&#8221; from an airport employee to avert what could have been a significant failure. And the small companies, on occasion did generate some negative experiences. Interestingly though, my tendency was to &#8220;forget&#8221; these failures quicker, giving them the benefit of the doubt for not having all of the CRM tools and technologies that larger companies have at their disposal. But in the end, my observations were my observations, and the trends were notable.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">Breaking the Trend&#8230;</span></span></strong></em></p>
<p>Given the above reality that size does apparently influence customer experience, and recognizing that &#8220;shrinking the company&#8221; is not the desired path to breaking that trend, companies that are increasing in size and growth need to be especially vigilant in five key areas:</p>
<ul>
<li><em><strong>How we measure success</strong></em> &#8211; We need to once and for all get beyond the measurement of general perception, because it tells us little about performance against <em>real customer desires</em>, and tells us virtually nothing about<em> what is really happening on the margin</em>.</li>
<li><em><strong>How we view risk and failure </strong></em>&#8211; When we think of risk and failure, we normally think of manufacturing or operational processes, not customer processes. We need to get beyond the notion that 95% satisfaction is acceptable, and into the zone of limiting the number and magnitude of breakdowns on the margin (what are now viewed as exceptions or acceptable tolerance. Think: How would a Six Sigma or Lean driven manufacturing process view this challenge?</li>
<li><em><strong>How we build our processes &#8211;</strong></em> We can start by changing from a functional to a market-driven approach to building our processes and systems. Most systems today are built to optimize cost and effectiveness at the<em> transaction level, rather than the customer level.</em></li>
<li><strong><em>How we staff and develop our employees</em></strong> &#8211; It is becoming harder and harder to find retainable employees that come &#8220;hardwired&#8221; with a strong CEM mindset. Finding and retaining them in large numbers is virtually impossible these days given employee demographics and market conditions. We need to look to other industries and functions to learn how to build and clone the human capital skills to support and enable the above processes.</li>
<li><em><strong>How we manage and reinforce performance</strong></em> &#8211; In support of all of the above, we need to change what we teach, how we lead, what we observe, how we motivate, and what we elect to reward in terms of its orientation toward CEM excellence.</li>
</ul>
<p>The old adage&#8230;think globally, act locally&#8230;seems to have some relevance here. I am firmly of the belief that the notion of large size, scale and growth can effectively co-exist with high levels of service, at the norm and the margin. It just takes work on the front end to design the right foundation to make it all work.</p>
<div><em>-b</em></div>
<div>
<p><em>Author: Bob Champagne is Managing Partner of onVector Consulting Group, a privately held international management consulting organization specializing in the design and deployment of Performance Management tools, systems, and solutions. Bob has over 25 years of Performance Management experience and has consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com</em></p>
</div>
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		<title>Customer Engagement and Efficiency- Are these conflicting priorities?</title>
		<link>http://www.onvectorconsulting.com/customer-engagement-and-efficiency-are-these-conflicting-priorities/</link>
		<comments>http://www.onvectorconsulting.com/customer-engagement-and-efficiency-are-these-conflicting-priorities/#comments</comments>
		<pubDate>Mon, 28 Mar 2011 13:58:36 +0000</pubDate>
		<dc:creator><![CDATA[Bob Champagne]]></dc:creator>
				<category><![CDATA[Business Process Improvement]]></category>
		<category><![CDATA[CAPEX]]></category>
		<category><![CDATA[CEM]]></category>
		<category><![CDATA[Change Management]]></category>
		<category><![CDATA[Corporate Performance Management]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Customer Engagement]]></category>
		<category><![CDATA[Customer Service]]></category>
		<category><![CDATA[Enterprise Performance]]></category>
		<category><![CDATA[KPI]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Performance Management]]></category>
		<category><![CDATA[Performance Measurement]]></category>

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		<description><![CDATA[The Challenges of Funding a  CEM Strategy&#8230; A few weeks back, I was talking to a client about their latest strategies to enhance what is now known commonly as &#8220;the customer experience.&#8221; And like most companies that are working tirelessly [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;"><a href="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-28-at-9-35-28-am.png"><img class="alignright size-full wp-image-947" title="CE Question" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-28-at-9-35-28-am.png" alt="" width="272" height="222" /></a>The Challenges of Funding a  CEM Strategy&#8230;</span></span></strong></em></p>
<p>A few weeks back, I was talking to a client about their latest strategies to enhance what is now known commonly as &#8220;the customer experience.&#8221; And like most companies that are working tirelessly on driving their customers toward higher levels of satisfaction, delight, and our latest aspiration, &#8220;engagement,&#8221; this company was going through all the common challenges of funding their new Customer Experience Management (CEM) strategy.</p>
<p>But also, like many others, funding their CEM strategy is meeting some pretty big resistance from their CFO and others who are trying to make corporate &#8220;ends meet,&#8221; especially in this economic climate. More and more, these two perspectives are clashing, not because the organization fails to value investment in Customer Service (CS), but more so because the impacts associated with that those investments are often less direct and less tangible, at least compared with the realm of immediate cost and productivity savings that produce faster (albeit not always sustainable) payback to the bottom line.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">The Cost/ Service Trade-off: Myth or Reality?</span></span></strong></em></p>
<p>For over two decades of working in the Customer Operations arena, I&#8217;ve heard clients invariably revert to the &#8220;perceived&#8221; trade-off between customer service levels and cost savings or efficiency efforts. That is, the notion that there is an inverse relationship between our ability to improve service levels and our ability to capture CS related productivity and cost savings. And for a long time, the data supported this notion. But as technologies improved, and companies began to increase investments in CS-related technology, tools and process changes, select companies started to prove  that notion false by demonstrating the existence of both high service levels and low cost at the same time&#8211;companies clearly worthy of the term &#8220;myth busters&#8221;.</p>
<p>Yet despite all those great examples from the 90&#8217;s, we are now seeing many return to the proverbial &#8220;trade-off&#8221; as a reason for deferring further investments in their CS infrastructure. Make no mistake, there are clearly companies that are pushing the envelope of customer delight, and perhaps even engagement, but more often than not, investments in CEM, and even critical investments in basic infrastructure, are once again hitting the funding wall.</p>
<p><a href="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-28-at-9-37-44-am1.png"><img class="alignright size-full wp-image-949" title="tradeoff cem" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-28-at-9-37-44-am1.png" alt="" width="434" height="267" /></a>Some of this is clearly driven by the current economic climate. As a CEO from one of my energy clients said recently, &#8220;We haven&#8217;t given up on CS. But these investments are discretionary, and right now we are struggling to &#8216;keep the lights on'&#8221;. And, while on the surface, this may provoke emotions of heresy from those in highly competitive markets, it&#8217;s hard to argue with financial realities. At one time or another, most CS executives, regardless of industry, have encountered this same argument from their C-Suite executives.</p>
<p>Unfortunately, for some, the lack of investment in that infrastructure has created a bit of a back-slide in performance, creating the question of whether we are back to the days of the proverbial trade-off.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">Reversing The Course&#8230;</span></span></strong></em></p>
<p>As with most things in life, the cup can be either half empty or half full based simply on the lens through which we are looking.</p>
<p>Sure, we all want to delight our customers and make them happy. But from a financial perspective, there is always an ROI at play, and it&#8217;s not always easy to establish a causal linkage between that &#8220;added delight factor&#8221; and the bottom line. Hence the conflict.</p>
<p>But this assumes we are trying to impress, delight, or otherwise &#8220;engage&#8221; the customer for the sole purpose of selling more of our product or service. And that is clearly part of it. But again, at the risk of offending our hardcore sales and product advocates (of which I am one), I would assert that there are many other reasons for having an engaged customer that go far beyond the next product sale or any direct influence on buying behavior at all.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">Beyond the Obvious&#8230;</span></span></strong></em></p>
<p>From my perspective, &#8220;Engagement&#8221; is about changing the overall predisposition of a customer from one of negative predisposition or neutrality, to one of positive engagement that is leveragable in some context. That context could be higher sales, repeat business, or Word of Mouth (WOM) referrals, but it could also serve a variety of other purposes.</p>
<p>One of those purposes is cost savings. What?</p>
<p>That&#8217;s right, <em>cost savings.</em></p>
<p>Over the past several years, we&#8217;ve completed a variety of assignments that were geared to identifying efficiencies where the mandate was &#8220;zero degradation to Customer Satisfaction&#8221;. Not an insignificant challenge. Especially when you consider that most companies have explored every way under the sun to drive more productivity out of their workforce, and have automated just about everything they can automate. And in some cases, these efforts have in fact degraded service level.</p>
<p>But many of those changes were inflicted on customers in a &#8220;push fashion&#8221;. Sure we&#8217;ve made tons of good changes in everything from local office closures, to call center automation improvements, to web interaction, but many of those changes were &#8220;pushed on the market&#8221; regardless of the level of satisfaction or disposition it happened to be in at the time. Yet we still wonder why the acceptance rates on what may appear to be wonderful customer options are at levels well below their potential. Experts claim that something as basic as &#8220;paperless billing&#8221; should be hitting 50-70% saturation in the next 3 years, but most of us are only at a fraction of those levels. But to me that is not surprising, given that we have not yet engaged the customer who we are asking to accept these changes. At least not in the spirit of how it is defined above.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">Engagement for the Sake of Cost Reduction ?</span></span></strong></em></p>
<p>Just for a second, put on your CFO hat and consider the following argument.</p>
<p><a href="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-27-at-8-21-26-pm.png"><img class="alignright size-full wp-image-939" title="Screen shot 2011-03-27 at 8.21.26 PM" src="http://www.onvectorconsulting.com/wp-content/uploads/2011/03/screen-shot-2011-03-27-at-8-21-26-pm.png" alt="" width="329" height="306" /></a>Cost is a product of both efficiency and transaction volume. We can decrease cost per transaction by 5,10, or even 20% in the form of cost-per-call, cost-per-bill, cost-per-payment, and the litany of other transaction types we offer. But the large majority of cost still remains.</p>
<p>Now think about the other side of the equation. Transaction volume. Different story entirely. When we eliminate a transaction, be it a printed bill, a mailed payment, or a call to the call center, we eliminate 100% of the cost. Looking at it this way, there is no question where our focus should be. And looking at the potential that our recent advances in technology could have on enabling these reductions in transaction volume, it&#8217;s rather amazing that such a large part of our focus is still on operating and productivity gains.</p>
<p>On this basis, and given the potential that exists in the workload dimension alone, it is conceivable that savings of 30, 50%, or more are possible, and go well beyond what we would ever consider from mere productivity gains.</p>
<p><em><strong><span style="font-family:Georgia;font-size:large;"><span style="font-size:18px;">It all starts with Impacting Predisposition and Behavior&#8230;</span></span></strong></em></p>
<p>Given the impact of workload on bottom line, why wouldn&#8217;t that become our primary focus?</p>
<p>Perhaps it should be. Or at least one of our primary goals. But haphazardly looking for where we can drive customers to self-service channels without a clear strategy will get us right back to square one. The &#8220;win win win&#8221; (CCO, CFO, and Customer) if you will, is only achievable if the levels of potential I describe above are fully realized, and accomplished in a manner that leaves the customer satisfied and engaged.</p>
<p>Engagement is about changing customers&#8217; predisposition from negative or neutral to positive and engaged. Once that is accomplished, there exist numerous ways to leverage that engagement, including getting the customer to willingly shift the nature and frequency of their interactions with us, thus decreasing transaction volume. But that is only the tip of the iceberg, as the companies mastering this dynamic are finding out.</p>
<p>But it all starts with the lens we look through.</p>
<p>So next time you are faced with hitting that infamous &#8220;funding wall&#8221;, or get challenged on the basis of your new CEM strategy, think beyond the obvious.</p>
<p><em>-b</em></p>
<p>For more on driving Customer Excellence through combined efficiency and service level focus, see the folloowing posts on <a href="http://EPMEdge.com" target="_blank">EPMEdge.com</a> . Related articles include:</p>
<ul>
<li><a href="http://epmedge.com/2011/03/08/lagniappe-and-its-impact-on-customer-satisfaction/" target="_blank">Lagniappe, Purple Gold Fish, King Cakes and Customer Delight!</a></li>
<li><a href="http://epmedge.com/2011/03/02/apology-not-accepted-beyond-the-empty-words-of-a-typical-customer-apology/" target="_blank">The Mythology of (the customer) Apology</a></li>
<li><a href="http://epmedge.com/2011/03/01/when-did-common-sense-go-extinct-from-the-workplace/" target="_blank">When Did &#8220;Common Sense&#8221; Go Extinct from the workplace?</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2011/02/28/to-meet-or-exceed-expectations-the-answer-may-surprise-you/">To “Meet or Exceed” Customer Expectations? The answer may surprise you…</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2011/02/26/a-customer-service-rant-rare-but-necessary/">A Recent Rant – Rare but necessary</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2011/02/02/putting-the-customer-back-into-customer-service/">Putting the Customer back into Customer Service</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2010/07/11/the-primary-fuel-of-dissatisfaction/">The Primary Fuel of Customer DISSATISFACTION</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2010/07/08/csat-the-bigger-picture/">CSAT-The Bigger Picture</a></li>
<li><a href="http://performancemanagementperspectives.wordpress.com/2011/02/10/first-things-first-process-before-technology/">First Things First- Process BEFORE Technology</a></li>
</ul>
<div><em><br />
</em></div>
<div>
<p><em>Author: Bob Champagne is Managing Partner of onVector Consulting Group, a privately held international management consulting organization specializing in the design and deployment of Performance Management tools, systems, and solutions. Bob has over 25 years of Performance Management experience and has consulted with hundreds of companies across numerous industries and geographies. Bob can be contacted at bob.champagne@onvectorconsulting.com</em></p>
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