Achieving Wireless Retail Excellence Achieving Wireless Retail Excellence...Retail Store Manager...
Transcript of Achieving Wireless Retail Excellence Achieving Wireless Retail Excellence...Retail Store Manager...
J.D. Power | Presentation | © 2013 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
Overview
June 2013
Kirk Parsons, Senior Director, U.S. Telecom
Adrian Chung, Director, Canadian Telecom
Achieving Wireless Retail Excellence
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Agenda
• The Financial Impact of Retail CSI
• Best Practices to Achieve Retail Excellence
• Recognizing Performance
• Question and Answers
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Challenges Facing Wireless Retailers
Corporate Retail Operations
Retail Store Manager Regional Marketing Operations
Regional Retail Operations
I need a way to differentiate my
brand from the competition,
attract new customers, and
reduce customer churn
I need a way to provide a
consistent customer experience
across the retail chain and
increase store traffic
I need a way to recognize our
brands commitment to customer
satisfaction, reinforce a positive
brand image, and drive interest in
our products/services
I need a way to differentiate my retail
store location, validate/implement
retail store best practices, and
increase avg. revenue per customer
and store traffic
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The Financial Impact of Getting It Wrong
The Potential Revenue Impact of a Poor Retail Experience is Significant
<Carrier> Subscriber Base (as of Q4 2012): 107 M
Net adds in 2012 3.8 M
Visit Retail Store for Purchase* Past 6 Months: 63% = 2.7 M
% Unsatisfied (Rate Carrier 1-5 on Overall
Sales Satisfaction) and “Def/Prob.” will
Churn Away From Carrier*: 39% = 1.05 M
Monthly ARPU** (Wireless): $64.98
Potential Loss of Revenue per Year: $68.4 M
*Based on those who report making a transaction between July ’12-December ’12
** Q4 2012 reported ARPU
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Value of Getting It Right
• Motivate Employees
• Improve the Customer
Experience
• Improve Individual Store
Performance
• Achieve Performance
Consistency Across Retail
Chain
• Attain Market
Differentiation
• Positive ROI
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The Economic Value of Service Excellence
• Lower incremental cost
• Higher incremental revenue
CSIROI
Lower Incremental Cost
Lower Customer
Acquisition Costs
+Lower
Problem Resolution
Costs
Higher Incremental Revenue
Higher TotalSales
+Higher Price
Premiums
+
Incremental Investment in
Customer Satisfaction
+Higher
Incremental
Spend
=
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The Economic Value of Service Excellence (Cont.)
80%Definitely Will
Return to Store
Driving Loyalty
U.S
.C
an
ad
a
79%Definitely Will
Recommend Store
Creating Advocates
78%Definitely Will
Return to Store
77%Definitely Will
Recommend Store
• Providing an exceptional retail customer experience has significant ROI implications
Source: 2013 Canadian Wireless TOE and U.S. Wireless Purchase Experience Studies
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The Economic Value of Service Excellence (Cont.)
66%Require Customer
Service Contacts
(Past 6 Months)
82(months)
Tenure with
Current Carrier
(Months)
51%Prob./Def. Will Use
Carrier for Addt’l Services
Lower Overhead Long-term Customers
Product Penetration1
Source: 2013 V1 Wireless Purchase Experience (U.S.), 1 – 2013 Canadian Wireless TOE Study
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Wireless Retail Best Practices
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Three Components for Achieving Wireless Retail
Excellence
• Outstanding sales
interaction
• Increasing sales
revenue per customer
• Achieving consistent
performance across
the retail network Increasing Sales
Revenue per Customer
Outstanding
Sales Interaction
Achieving Consistent
Performance Across
the Retail Network
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Best Practice 1: Outstanding Sales Interaction
• Promptness of Rep
• Rep Courtesy
• Rep Knowledge
• Rep Empathy
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Walk-in Purchase Timing Carrier A B C D
Time to be greeted (Min.) 1:57 1:41 2:03 1:36
Time to speak with a sales
rep (Min.)5:55 6:43 5:51 6:36
Walk-in Purchase
ComplianceCarrier A B C D
% Were met by personal
greeter76% 74% 66% 78%
Best Practice 1: How Companies Perform
109
Purchase Index – Example
Promptness of Rep
Source: 2013 U.S. Wireless Purchase Experience Study Vol. 1Current industry range
Opportunity for the industry to improve overall
customer satisfaction by standardizing this
practice in their retail stores
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Best Practice 1: How Companies Perform (Cont’d)
Rep Courtesy
Purchase Index – Example
181
Although a common
practice, the
consequences of not
thanking a customer
for their business is
significant
In-Store Purchase Compliance U.S. Carrier Avg. Canadian Carrier Avg.
% Rep Thanked Customer 92% 84%
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Best Practice 2: Increasing Sales Revenue/Customer
Exceeding Customer
Expectations
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Key Diagnostic AreasSatisfied
(10-8)
Not Satisfied
(7-1)Difference
% Likely to recommend retail store
(Definitely/Probably Will)94% 67% 27%
% Would visit store again
(Definitely/Probably Will)94% 75% 19%
Intent to switch from service carrier
(Definitely/Probably Will)8% 20% -12%
Best Practice 2: How Companies Perform
Exceeding customer
expectations increases
brand advocacy and loyalty
Exceeding Customer Expectations
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Best Practice 2: How Companies Perform (Cont’d)
• Customers who are Satisfied with their Purchase Spend More Per Month and Subscribe to Premium Services
= Significantly ABOVE Industry Average at 95%
Confidence Level.
= Significantly BELOW Industry Average at 95%
Confidence Level.
Source: 2013 U.S. Wireless Purchase Experience, Vol. 1
10 - "Highly
Satisfied"
8 Thru 9 -
"Satisfied"
5 Thru 7
"Indifferent"
1 Thru 4
"Dissatisfied"
Monthly Spending $149 $143 $140 $136
Service Plan Minutes 965 895 876 823
% With Data Plan 81% 81% 79% 82%
% With International Coverage 21% 18% 15% 15%
% With Mobile Broadband 5% 4% 4% 5%
% With Data Plan for Tablet 9% 4% 4% 6%
Satisfaction with Purchase Experience - In Store
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Wireless Retail Certification Program
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Wireless Retail Certification Program At-A-Glance
Research
Certification
Recognition
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Wireless Retail Certification Program
Aggregate
Results
Administer
Customer Phone
Survey
CUSTOMER CONFIRMATION PHASE – J.D. POWER SURVEY:Outline
Improvement
Opportunities
Proceed to Criteria
Compliance Phase
Certification
Achieved
CRITERIA COMPLIANCE PHASE:
Stores Complete
Criteria Checklist &
Submit Data
Revise Processes/
Documentation
(1 Opportunity)
Aggregate
Results
CUSTOMER CONFIRMATION PHASE - CARRIER SURVEY OPTION:
Validate Carrier
Survey
Methodology
Carrier Revises Survey/Methodology or Utilizes J.D. Power Survey
Obtain Data
From Compliant
Retail Stores
Obtain Customer
Sample
Obtain Customer
Sample
NO
YES
YES
NO
YES
NO
Met or Exceeded
Performance
Benchmark?
Survey &
Methodology
Compliant?
Store
Processes &
Documents
Compliant?
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Recognition
• Promote your operational excellence and customer-
centric focus recognition via the following:
Window Decal
In-store Signage
Business Cards
Sales Receipts
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• Independent and un-biased
confirmation of quality
• Point of differentiation from
competitors (first-to-market provides
greatest advantage)
• Established reputation in providing
certification to best-in-class
organizations
• Proven value within retail channel
• Unaided awareness of the
J.D. Power brand by consumers
is 52%
– Aided awareness is at 72%
• Independent research confirms that
J.D. Power is:
– Trusted, Unbiased, Influential:
60% of consumers are more willing
to consider a product or service
based on a J.D. Power award
• Consumers will complete J.D. Power
surveys compared to others: 76% agree
Value of J.D. Power Recognition
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Certification and Distinction Programs
• J.D. Power has proven
processes and extensive
experience providing
certification program
solutions across a variety
of industries
• Helps consumers and B2B
customers identify product
and service providers that
deliver an excellent
customer experience
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Insurance Carrier―Top 15 in U.S. Net Premiums
• Business challenge: Improve the customer experience
• J.D. Power Solution: Distinguished Insurance Agency Program
Source: J.D. Power U.S. Auto Insurance StudySM
812
821
831
821
836
847
860
818
838 841
847
854 857
878
800
820
840
860
880
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Industry Average DIAP Par cipa ng Carrier
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Case Study―Big 3 AutomoSve
• Business challenge: Improve the customer experience
• J.D. Power Solution: Performance Improvement Certification Program
focused on dealership and service assessment
Sources: J.D. Power Sales Satisfaction Index (SSI) StudySM
J.D. Power Customer Service Index (CSI) StudySM *Brand C was #1 in CSI during Years 4 and 5
750
800
850
900
950
Year 1 Year 2 Year 3 Year 4 Year 5
Sales Satisfaction Index (SSI)
Brand A Brand B Brand C
750
800
850
900
950
Year 1 Year 2 Year 3 Year 4* Year 5*
Customer Service Index (CSI)
Brand A Brand B Brand C
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Clients of J.D. Power Branded Certification Programs,
Assessments, and Performance Improvement Initiatives
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Questions?
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For more information, contact:
Kirk ParsonsSenior Director, U.S. Telecom
[email protected] | 203-663-4120
Adrian ChungAccount Director, Canadian Telecom
[email protected] | 416-507-3257