Fs forum june 2010
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Transcript of Fs forum june 2010
Our business delivers Intellectual Capital
MeasurementAction
for Customer Experience
What’s the Big Idea?
Jamie LywoodCEO – Harding &Yorke
EMPATHY
- So what is empathy?
- So what is empathy?
The Greek - PATHEA
- Feelings
Wikipedia
“Is the capability to share another being’s emotions and feelings as if they were your own”
EM
- FEELINGS
and then do something about it!
Existing Customer?
New Customer?
Tom Peters: “Every Board should have a ten year old on it!”
80%
20%
Lie
Manipulate
Play Politics “Because you
Promised!”
GURU
2
8
The Retailer’s Dilemma
The HYM Sheet
The Traditional Approach to Customer Service
Harding & Yorke
Matrix
FAILFAIL SUCCEEDSUCCEED
THE WAY THE WAY YOU DO YOU DO
IT!IT!
PPLLEEAASSAANNTTAALLIIEENNAATTEE
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
??PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
FAILFAIL SUCCEEDSUCCEED EXCEEDEXCEED
PPLLEEAASSAANNTTAALLIIEENNAATTEE
EEMMPPAATTHHYY
Trad
ition
al C
ustom
er S
atisf
actio
n
THE WAY THE WAY YOU DO YOU DO
IT!IT!
WHAT YOU DO!WHAT YOU DO!
Can we measure Empathy?
•High Ratio
•Statistically Significant
•Easily Segmented
•Comparable
•Highly Focussed
•Validated
•Easily Actionable
A typical approach to Customer CentricityA better approach
Have: Needs / Wants / Problems
Satisfies: Needs / Wants / Problems
Marketing / Awareness
Communication
PHYSICAL & EMOTIONAL
Meet Physical
needs well
Poor Emotional understanding
SURVEY CUSTOMERSCUSTOMERS RESPOND
Based on:•Logic•Expectation•In the moment•Outcome•Knowledge
Missing:•Emotion•How it feels•Relationship•Moment of Truth
VALIDATEFEED BACKRECOMMENDIMPLEMENT
ANALYSE
EMPATHY
Web
Email, SMS
Mail, Fax, etc
Voice
Face to face
ANALYSEEMPATHY
-PHYSICAL
EMOTIONAL
Can we measure Empathy?
How we feelFeel
GutFeeling
Empathy
Warm
Willing
Happy
Friendly
How they feel
EmotionalEmotional ResponseResponse
How we feelFeel
EmpathyEmpathy
Respond
GutFeeling
Clarity
Volume
Tone
Pace
Warm
Willing
Happy
Friendly
How it’s said / written
Voice / Text Qualities
How they feel
Emotional Response
How we feel
Listen / ReadRespond
Feel
Empathy
GutFeeling
Clarity
Language
Content
Words Facts
Volume
Tone
Pace
Warm
Willing
Happy
Friendly
Quantitative Attention
Hear what’s saidHow it’s said
Voice / Text Qualities
How they feel
Emotional Response
How we feel
Hear / Re-readListen / Read
RespondFeel
Empathy
GutFeeling
Clarity
Language
Content
Words Facts
Volume
Tone
Pace
Warm
Willing
Happy
Friendly
Quantitative Attention
Hear what’s saidHow it’s said
Voice / Text Qualities
How they feel
Emotional Response
How we feel
Hear / Re-readListen / Read
RespondFeel
GutFeeling
EmpathyGo directly
to th
e Gut Feelin
g
0
5
10
15
20
25
30
35
40
%
ExtremeExtreme
DissatisfactionDissatisfaction DissatisfactionDissatisfaction NeutralNeutral SatisfactionSatisfactionExtremeExtreme
SatisfactionSatisfaction
11 22 33 44 55 66 77 88 99 1010
Couldn’Couldn’ttFeel WorseFeel Worse Feels BadFeels Bad NeutralNeutral Feels GoodFeels Good
Couldn’tCouldn’t
Feel BetterFeel BetterCouldn’t feel Couldn’t feel
less less WelcomedWelcomed
UnwelcomedUnwelcomed NeutralNeutral WelcomedWelcomedCouldn’t feel Couldn’t feel
more Welcomedmore Welcomed
How welcomed do I feel by the initial words of the Greeting?
Average
5.7
COMMON VALUES
HANDLING THE
TASK
DEVELOPING THE
RELATIONSHIP
Overall SUB-CONSCIOUS
IMPRESSION
Overall
CONSCIOUSIMPRESSION
WRAP UP
FACTS AND
FEELINGS
PROMOTION / RETENTION
Can we measure Empathy?
6.02 6.02 8.28.222
How you make us
‘Feel’
How you ‘Process’
us
The Importance of Empathy
Alliance & Leicester (4)
Aviva (3)AXA (1)
Barclays (4)Bradford & Bingley
(1)Churchill (2)
Direct line (3)HBoS (7)
ING Direct (3)Lloyds TSB (4)
MBNA (1)NatWest (4)
Post Office (1)RAC (1)RBS (5)
RBS Insurance (1)Sainsbury’s (6)
Santander (Abbey) (5)
Scottish Widows (1)Standard life (3)Virgin Money (2)
Prof. Merlin Stone
Dr. Yuksel Ekinci
The Importance of Empathy
Financial business performance indicators downloaded from the AMEDEUS database
Empathy ratings downloaded from Harding & Yorke
Univariate & multivariate statistical techniques used for assessing validity and reliability of ERIC. These included:
Linear Correlations
Exploratory Factor Analysis (EFA)
Multiple Regression (Ordinary Least
Squares)
Cronbach’s Alpha (Reliability)
Another
GURU
A man with a very high
forehead
Key Findings:
Process:•No correlation with profit•4 dimensional
Empathy:•Very strong correlation with Return on Capital Employed at .85•Uni-dimensional
Reliability:•98.9% reliable
0.32 0.55 1.0 0.75
NONE WEAK GOOD STRONG
STRENGTH OF CORRELATION
The Importance of Empathy
++
--
£/$£/$
RR
EE
TT
UU
RR
NN
11 22 33 44 55 66 77 88 99 1010
Commitment / InvestmentCommitment / Investment
first directVirginRBSStandard LifeEtc.
The Importance of Empathy
2004
11 22 33 44 55 66 77 88 99 1010
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
-80%
-100%
Conclusion:
For every point increase on the Empathy index, there will be 16.4 % improvement on ROCE.
£/$£/$
RR
OO
CC
EE
EMPATHYEMPATHY
The Importance of Empathy
The Importance of Empathy
Increased value of products
purchased at Bank
58%
Purchased new product
29%
Perception of bank
improved but did nothing
13%
Bought product at
another Bank23%
Stopped Product
20%
Switched main Bank
15%
Decreased Value of products
14%
Perception of Bank
worsened but did nothing
28%
Positive Moment of Truth Negative Moment of Truth
Source: McKinsey
Advanced Predictive Analysis - Benchmarkinge.g. ACSI
Advocacy Measurese.g. NPS
‘Stakeholder Value’ – Claus Fornell
‘Revenue Growth’ - Fred Reichheld
‘Profit’ - Prof. Merlin Stone
The Importance of Customers recognisede.g. Customer Satisfaction
1983
Chronology
High 6.75Catalogue Clothing - Dec’08
Life Insurance - Jun’09
Savings - May’09
Home Insurance - Jul’09
Loans – Jul’09
Motor Insurance- Feb’09
Mobile Phone - Mar’09
Credit Cards - Apr’09
Health Insurance - Oct’09
Telephone Banking - Mar’10
Low 5.69 Average 6.18
Low 6.26 High 6.83Average 6.42
Low 5.69 High 6.49Average 6.19
Low 5.93 High 6.53Av. 6.29
Low 5.61
High 6.44
Average 6.03
Low 5.75 High 6.58Average 6.28
Low 5.83 High 6.73Average 6.29
Low 5.43 High 6.65Average 6.04
Low 5.92 High 6.77Av 6.39
Low 5.94 High 6.4Average 6.16
Low 5.86 High 6.69Av. 6.23Mortgages - Feb’09
Low 6.72 High 8.61Average 8.07
Low 8.21 High 9.00Average 8.59
Low 7.93 High 8.76Average 8.39
Low 8.29 High 9.01Average 8.59
Low 7.66
High 8.56
Average 8.15
Low 7.76 High 8.96Average 8.45
Low 7.55 High 8.81Average 8.27
Low 7.85 High 8.71Average 8.31
Low 7.39 High 8.82Average 8.43
Low 7.86 High 8.74Average 8.38
Low 7.28 High 8.51Average 8.23
65 7 8 9 10 PROCESS
OPPORTUNITY
EMPATHY
OPPORTUNITY
6.5+ Makes us FEEL ‘good’7.5+ A ‘good’ PROCESS
Bank Branch ScoresNatWest has done particularly well in efforts to attain a high and consistent score within their Branch Network. Lloyds Banking Group (Lloyds TSB & Halifax) stand out through their inconsistency by having both the lowest and highest scores.
Lloyds TSB
HSBC
HBoS
NationwideAlliance & Leicester
First Direct
RBSBarclays
Data is taken from H&Y’s ERIC™ competitor benchmarking programme (Telephone Banking - Sales)
Lloyds TSBBarclays
HBoS
HSBCNationwide
NatWest
NatWest
Alliance & Leicester
First Direct
Contact Centre Banking – Over Time
RBS
Telephony
Physical Retail / Meetings / Interviews / Home visits etc.
Web / Mobile / Television / Email etc.Digital
Self Service
Inbound/outbound / IVR / ISR / Auto messages etc.
ATM’s / Handsets / Posters / Environments etc.
COMPETITION
The Versatility of Empathy
Dare to be Different – The Ritz CarltonSome ideas to explore
Empathy in Action!
Empathy in Action!
Empathy in Action!
Key messages to take away Direct and academically proven correlation with PROFIT (ROCE)
Proposition appeals to highest Execs, but is also practical and supportable throughout organisations and unions
Empathy is evidence based measurement for all offline and online channels and provides clear recommendations for action
Valid, Reliable and Sensitive data supported by proven solutions for improvement – not-dependent on consultancies!
Enables built-in measurement and proof of progress and can be integrated with internal Quality Performance Measures
Outputs are comparable through industries, channels, functions and across borders
Common Sense!
Our business delivers Intellectual Capital
MeasurementAction
for Customer Experience
What’s the Big Idea?
Jamie LywoodCEO – Harding &[email protected]+44 (0)7850 20 20 30
EMPATHY
- Is it!