Customer Loyalty Solutions | Customer Loyalty Programs | LoyalMark
How reducing customer effort raising & resolving a complaint can drive customer loyalty
-
Upload
scott-davidson -
Category
Business
-
view
53 -
download
0
Transcript of How reducing customer effort raising & resolving a complaint can drive customer loyalty
A RESEARCH AGENCY DEDICATED TO IMPROVING COMPLAINT HANDLING
PERFORMANCE, DEVELOPING THE CUSTOMER EXPERIENCE AND ENHANCING
CUSTOMER LOYALTY
“We pick companies because of
their products,
but we often leave them because
of their service failures.”
Source: “The Effortless Experience”, Matthew Dixon et al, 2013
Our Research Goal:
To help clients better understand the complaint experience delivered to their
customers … through feedback elicited directly from
customers!
Incorporates client business objectives, the latest regulatory expectation and
commercial realities …so as to ensure research results are
presented in the correct context!
Our Research Approach:
Include customer journey mapping and storytelling, aiding understanding and
recall … more importantly, to allow our clients to make informed business decisions
and drive positive change!
Our Research Output:
Ask yourself:
Do you know which elements of the complaints experience you currently
deliver have the biggest effect on making your customers more (or less)
loyal?
THE COMPLAINTS EXPERIENCE AND CUSTOMER LOYALTY
Customer perception of the complaint experience influences future intentional behavior and can impact loyalty
Three critical questions to consider:
1. To what extent does your complaints handling performance impact customer loyalty?
2. What are the key actions your Complaints Operations should take to retain (and drive) customer loyalty?
3. Do you understand how improving your complaints handling performance can enhance customer loyalty, while also reducing operational costs?
6
Ask yourself: Does your organization fully understand the impact the quality of the complaints experience delivered has on customer loyalty?
UNDERSTANDING COMPLAINTS FROM THE CUSTOMER PERSPECTIVE
We use research to collate feedback from customers who had a recent complaint experience with your organisation
Three core areas covered:
1. Questions about the customer’s experience with the staff they interacted with
2. Questions about the amount of energy or number of actions the customer had to exert during the complaint experience
3. Questions about your organization’s ability to deliver a positive complaint experience to your customers.
Ask yourself: Do you understand what your customers perceive to have really happened when they interacted with your organization? How
well do they think you really did in terms of resolving their complaint?
7
Complaint Nature & Channel
Complaint statusEase of raising a
complaint*Staff capabilities
Ease of resolving a complaint*
Time to resolve Complaint outcome
Outcome communication
(incl. Ombudsman rights)
Changes in brand perception
Impact on Customer Loyalty
DemographicsIdentification of
Vulnerable Customers
*Our approach covers the end-to-end customer journey, measuring Effort and establishing Emotions from key interactions. We then plot all these variables via Customer Journey Mapping so as to provide clients with an ‘as is’ picture of typical customer experiences when complaining.
EXAMPLE:QUESTIONNAIRE “FLOW” (I.E. STRUCTURE)
CORE #1: MEASURING STAFF PERFORMANCE
We look to understand how well your staff handled the customer complaint
Some of the key ‘variables’ include:
Ask yourself: As well as measuring staff abilities, do you also measure other ‘variables’ which directly relate to the complaint experience, e.g.
correct identification and recording of the customer complaints?
9
Correctly identified the
complaint
Correctly identified action
was required
Had knowledge of how to
resolve
Actively listened to customer
Set customer expectations
Delivered on promises
CORE #2: UNDERSTANDING THE CUSTOMER EFFORT
We look to understand how easy (or difficult) your customers found it to resolve their complaint
Some of the key ‘variables’ include:
Ask yourself: Do you currently measure ‘effort required’ from the customer perspective? Do you know the customer’s emotional state
when first raising their complaint (as well as the emotional impact of their exertions)?
10
Ease of raising complaint
% First Contact Resolution
Number of contacts
required (if not FCR)
Number of transfers
Repeating information
Time to resolve
CORE #3: MEASURING EMOTIONAL IMPACT
We establish customer emotions felt as a result of company interactions, establishing Advocacy vs Detractor drivers.
Some of the key emotions captured include:
Advocate Cluster
11
Happy
Pleased
Recommend Cluster
Attention Cluster
Detractor Cluster
Trusted
Valued
Interested
Indulged
Frustrated
Dissapointed
HOW WE MEASURE CUSTOMER EFFORT
We use a 7pt scale to measure Customer Effort against a series of Agree vs. Disagree statements
[Company] made it easy for me to resolve my complaint?
1 2 3 4 5 6 7
Strongly Disagree
DisagreeSomewhat Disagree
Neither / Nor
Somewhat Agree
AgreeStrongly
Agree
PREVIOUSLY:How much effort did you personally have to exert to
resolve your complaint?
1 2 3 4 5
Very Low Effort
Low EffortNeither /
NorHigh Effort
Very High Effort
12
EXAMPLE CUSTOMER EFFORT QUESTIONS
We use a wide range of Agree vs. Disagree statements to help build a clearer picture of Customer Effort
To what extent do you agree or disagree with the following statements:
1. [Company] made it easy for me to raise my complaint
2. It was easy to reach the right member of staff who could handle my complaint
3. The member of staff seemed to be very knowledgeable in complaint handling
4. [Company] made it easy for me to resolve my complaint
5. It took less time than I expected to resolve my complaint
13
LEVERAGING CUSTOMER EFFORT FEEDBACK
WHERE CUSTOMERS DISAGREE WITH STATEMENTS, WE CAN CAPTURE, CODE & ANALYSE VERBATIM
▪ Follow-up ‘negative’ scores with request for ‘solution’ suggestions, e.g.
▪ We then code the verbatim and start to analyse so as to identify common themes
▪ Understanding themes (i.e. suggested pain relief) can help identify opportunities for improvement and guide where customer effort might be reduced
What could [Company] do to make resolving complaints easier for its customers?
14
We use Customer Journey Mapping to visualise the customer complaint
experience, allow you to understand where opportunities to improve exist, and how current interactions impact customers emotions and intentional
behaviour
MAPPING THE COMPLAINT JOURNEY
WE PLOT CUSTOMER EFFORT ALONGSIDE EMOTIONAL IMPACT OF INTERACTIONS / TOUCHPOINTS
16
Ask yourself:
Do you understand the relationship between Customer Effort and Customer
Loyalty (and the commercial implications for your business)?
EFFORT RESOLVING INFLUENCES LOYALTY
In recent research conducted for an insurance provider, we found that customer effort had a significant impact on the customer’s future intentional behavior …
18
AllComplainants
32%Easy
48%
43%
38%Neither / Nor
9%
4%
29%Difficult
2%
3%
LIKELIHOOD TO REMAIN
LIKELIHOOD TO RECOMMEND
EASY OR DIFFICULT TO
RESOLVE
Base: 495 insurance complainants, October – November 2016
INTENDED LOYALTY INFLUENCES YOUR BOTTOM LINE
For the purposes of illustrating how Customer Effort’s translates to ‘revenue at risk’, we have used our client’s insurance ‘book’ and average insurance premium per annum
19
*Assumes 75,000 reportable complaints represents 1/5th of total unhappy customers – as 4/5ths don’t complain ** Source: Association of British Insurers
Easy to Resolve
Neither / NorDifficult to
Resolve
*Total Population of Unhappy Customers (n) 375,000
Easy / Difficult to Resolve Complaints (%) 32% 38% 29%
Calculated Population by Ease / Difficulty to Resolve (n)
120,000(375k x 32%)
142,500(375k x 38%)
108,750(375k x 29%)
Likelihood to Switch (%) 24% 68% 85%
Calculated Population Likely to Switch (n) 28,800 96,900 92,438
**Average Motor Insurance Premium per Annum (£)
£788
Revenue at Risk from Customer Defection –per Annum (£)
£22,694,400 £76,357,200 £72,841,144
Ask yourself:
Does your existing customer research include Customer Effort?
Does it also measure the Emotions felt by your customers?
Does it visualise both Effort and Emotion on Customer Journey Maps so you
understand where opportunities for improvement exist?
RESEARCH METHODOLOGIES
Our clients have different complaints objectives, so we deploy bespoke research approaches to meet those needs
21
Face-to-Face Telephone Online Mobile Postal
QUALITATIVE
QUANTITATIVE
OUTPUTS:(Include but not limited to)
CUSTOMERJOURNEY MAPS
INFOGRAPHICS
VIDEOANIMATIONSTORYTELLING
KEY DRIVERANALYSIS
WE HOPE YOU FIND THIS ADDITIONAL INFORMATION HELPFUL TO UNDERSTAND WHERE REDUCTIONS IN
CUSTOMER EFFORT CAN LEAD TO IMPROVED COMPLAINT HANDLING PERFORMANCE AND ENHANCE CUSTOMER
LOYALTY AND RETENTION EFFORTS.
SHOULD YOU HAVE ANY QUESTIONS OR WISH TO DISCUSS, PLEASE DO NOT HESITATE TO CONTACT THE RESEARCH LOCKER.
WE LOOK FORWARD TO HEARING FROM YOU
SCOTT DAVIDSONHEAD OF RESEARCH
07718 646 463