Customer Experience Roots And Reasons New
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Transcript of Customer Experience Roots And Reasons New
© 2009, Ron McCulloch MBA
Customer Experience:Roots and Reasons
Ron McCulloch, MBAhttp://rmcculloch27603.tripod.com
Read the article at:http://www.bxjonline.com/bxj/earticlefull.asp?magarticle_id=1388
© 2009, Ron McCulloch MBA
Customer Experience Defined
• It’s about the client, not about me!
• Do what they want, the way they want it
• It’s more than just service!
© 2009, Ron McCulloch MBA
Customer Experience Defined
• Environment + Execution + Service = Customer Experience
Environment
Execution Service
The Magic Lives Here!
© 2009, Ron McCulloch MBA
This Should Be Intuitive, but…
The Magic Lives Here!
• How many businesses display this attitude toward their customers?
• “ …get out of my store – and please come again ”– A. Nahasapeemapetalan
• “ It’s funny because it’s sad ”– H. Simpson
© 2009, Ron McCulloch MBA
Finding the Bull’s Eye
Environment& Execution
Service
Experience
Customer Satisfaction
Repeat Buying
© 2009, Ron McCulloch MBA
Value Questions
• How much does it cost to acquire a customer?• How much is customer retention worth?• Customer Lifetime Value: a little math• CLV = [M/(1 - r + i)] – AC
– M = margin in a given year– r = annual retention rate– i = interest rate– AC = Acquisition Cost
© 2009, Ron McCulloch MBA
Is Great Customer Experience Really Free?
““Great customer experience is not only free, Great customer experience is not only free, it is an honest-to-everything profit maker...if it is an honest-to-everything profit maker...if you concentrate on improving customer you concentrate on improving customer experience, you can very likely increase experience, you can very likely increase your profits.” your profits.”
-Bruce Temkin-Bruce Temkin
© 2009, Ron McCulloch MBA
Short-Term Costs
TravelOther
Marketing Costs
Time
Long-Term
Benefits
© 2009, Ron McCulloch MBA
Long-Term Gains
Retention(CLV)
Reputation
Referrals
© 2009, Ron McCulloch MBA
Roots
• Business leaders hold the keys• Planning (strategic)• Educate and demonstrate
(consistent behavior from leaders)• Empower staff to act (tactical)
© 2009, Ron McCulloch MBA
Build Great Experiences
• Study customers’ habits and preferences• Pay attention to the small details• Provide help when and how customers want
it, not when they don’t want it
© 2009, Ron McCulloch MBA
Sustain Great Experiences
• Be intentional – ask customers and yourself hard questions
• Communication loop – more tactical execution
• Plan/do/check/act cycle – strategic planning
© 2009, Ron McCulloch MBA
Examples
• Consider your favorite and least favorite local grocery
• Do you have a trusted auto mechanic? Would you switch to save a few dollars?
• How about Chick-fil-A® vs. the rest of the fast-food universe?
© 2009, Ron McCulloch MBA
Still Don’t Think Great Customer Experiences Are Really Free?
© 2009, Ron McCulloch MBA
Just Try Creating Lousy Ones!