Post on 30-Oct-2014
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© SFI International
Presenter - Peter Gillson
Annual Conference Sydney 2013
‘Joy of Baking’
Managing Consumer Relationships Effectively
- Presented by : Peter Gillson
Who Contacts Customer Service?
Is this your Customer Service Team?
YES! We have a complaint
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How Do you Do that?
Building Engagement that Lasts
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Taking a bad taste &
turning it into
a sweet sensation
Building Relationship through Experiences
Relationship Marketing Logic
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• Recognition of market failure
• Improved understanding of consumer behaviour
• Improved understanding of the customer value
1%
2%
2%
2%
2%
3%
3%
3%
5%
5%
9%
10%
10%
11%
13%
19%
Improve Tone of voice, attitude
Remove electronic & computer answering
Be prepared to compensate
Improve Product knowledge
Apologise if needed
Truthfulness
No “buck passing”
Resolve situation – work at it
Seek to understand customer’s viewpoint
More empathetic & open to complaints
Seek fast solutions
Train staff to solve problems
Be friendly & professional
Value customer – respect, not idiot
Increase response rate with acknowledgement
Listen
Staff need to be empowered
Source ‘Consumer Sentiment Emotions and Advocacy Research SFI’ © SFI International
85% of consumers are
less likely or would not recommend
an organisation where there is no
complaint resolution to their
satisfaction
©SFI Consumer Sentiment Emotions and Advocacy Research
© SFI International
CUSTOMER SATISFACTION
Relationship Logic
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• Consumers are rational & reasonable
• Today’s Consumers maximise tools available to
them
• Consumers have alternatives
• Cooperation is more effective than confrontation
Challenges to our Loyalty Ladder
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8%
5%
5%
15%
31%
36%
Others
Don’t like to be seen complaining
Don’t want confrontation
Easier to switch brands
Indifferent / No specific view
No results / Waste of time
View that often prevents consumers from complaining taken from 15,000
What can organisations need to do better?
1%
2%
2%
3%
3%
3%
3%
4%
4%
4%
4%
5%
5%
10%
12%
12%
23%
Stay open to suggestions
Apologise
Less options & better response on phone
Give refunds/replacements-sometimes necessary
Treat customers better-not always wrong
Ensure customer satisfaction
Better processes-how to fix it
Empower staff – stop “passing the buck”
Listen & validate complaint (helpful)
Listen to people. Be friendly
Seek resolution at all times
Get rid of automated systems
Problem solvers on phone
Acknowledge & communicate during resolution
Value customer, care & respect
Better trained staff with authority
Quicker response
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Quicker Resp – 21% in 2013
Train/Empower 20% in 2013
• One off sale – one call, one relationship opportunity
• Profit driven comes from repeat relationships and business
innovation that is line with the customer
• Focus on the customer not money to drive bottom line
improvements
• Understand wants and needs to drive bottom line increases
No longer transaction based
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www.sfi.com.au © SFI International
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Do we need to record Experiences?
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Building Relationship through Experiences
What is CRM?
Are we ready for VRM?
• Customer/consumer satisfaction driven, not complaints driven
• Track consumer viewpoint just as readily as you track products
on the shelf
• Treat each other as people and develop relationships
• Customer has chosen YOU already.
Elements of relationship driven CRM:
CRM is not just a software system;
- it is a business strategy
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Spread the Word
What does Social Media Deliver?
Integrated Workflow Tools
Reports to
Effectively Data mine
Systems that Talk
to your Systems
Case Management - Investigation
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Case Management Systems - Holistic Process
Case Management Systems
Deploy Capture Screens for:
• Case Management
• Safety Incident Management
• Human Resources
• Operations
• Environment and Strategic Risk
• Quality Assurance
• Corrective Action
• CRM (Customer Relations)
• New Product Development
• Others to suit the Business
Build Links to:
• Your Product & Sales systems
• Phone systems
• Documents Policies and Forms
• HACCP Plans
• SCM, ORM Plans
• Supply Chain
• Recall Process
• External or internal investigation systems
• Reporting System
• Knowledgebase
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What are your Customers Looking for?
Consumer Value Proposition • Knowledge/ Empowerment
• Empathy
• Listening/ Co Creation
• Honesty
• Apology
• Experience
• Brand awareness
• Ethical/Environment
• Relationships
Business Area Benefits • Quality Assurance Improvements
• Corporate Compliance/Governance
• New Product Development
• Co-Creation /Reduced R&D
• Brand Purchase
• Boardroom engagement
• Systems in Sync
• People in Sync
• Reporting
• Relationship
Traceability
Tracking
Profit Centre
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Customer
Site Investigation
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Log Corrective
Action Plan
Reporting and Tacking Costs
Cost Savings
Unproductive Contacts
Sales & Distribution
Packaging
Non Food (eg Petcare accessories)
Food
Nesoto Corporate
Communication & Marketing
Artwork
Incidents: 35,949
0
2000
4000
6000
8000
NESCONFECT NESBEV CORPORATE NESFOOD NESTLEDAI NPP NESTLECHI NUTRI FOODSERVICNESTLECERNESNESPRES NPI
2004
2005
Sale
s
Period
64655920
68935384
80802744
92608568
117454368
110414792
89290184
90905720 107133856
93876912
131979536
114489248
121682360
102966904
156891456
110117400
121064632
85948752
122462624
74847048
133786936
88545856
77408400
66949352
Case Management Reports: - Executive Summaries
- Trends - CPM - Systemic Issues - Root Cause - Corrective Actions - HACCP..etc
Going from a Cost Centre to a Profit Centre
Key Points to Remember - Summary
• Transaction based Approach -out
• Relationship and Experiences - hot
• Innovation - in
• Data Mining -in
• Predictive Analytics-in
• Boost Satisfaction and Resolution Levels to Create Bottom Line
• Complaints are a gift that gives you the opportunity profit
© SFI International
Going from a Cost Centre to a Profit Centre
• Without CRM/VRM Focus no tracking of issue – product taken off shelves by
regulators (eg Recall tracking)
• Customers changed buying habits including pretailing (eg: on line options)
• Cost to acquire new customers rather than meet needs of already loyal or advocate
customers
• Communication with an understanding who your customer is, what they
want, when they want it and how they want is packaged
• You are the value proposition for the company to keep that business
Key Points to Remember - Summary
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Managing Consumer Relationships Effectively
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Care CRM™ Case Management Systems
THANK YOU
© SFI International – Knowledge – Capability - Capacity
‘Consumer dissatisfaction is the lack of fulfilment of a product or
service determined by the outcome of the consumers expectation
and /or the organisation brand promise
The extent of the dissatisfaction will directly relate to the efficacy
and currency of your resolution model
Listen to your customer and enhance the experience for both parties
so that you may obtain greater knowledge to assist in building
those relationships that deliver advocacy so that you will enjoy
viable brand strength and equity together’