Posts filed under Service Design

The reason negative word of mouth kills Service brands

The interest in design has taken increased markedly within both consumers and organisations over the past decade. Where it was once once the domain of a select group, everyone now wants well designed products. And for good reason too, in an extensive Study by CEB Research of over 100,000 customers all across the world, they found that a Positive Product Experience produced 71% positive World of Mouth and only 32% Negative World of Mouth.

What was even more interesting were the finding for the Services. For those customers who had a positive service experience, it only generated only 25% positive Word of Mouth. The even more staggering statistic was the a negative Service Experience generated a whopping 65% negative work of mouth!

Why the startling difference. When it comes to a positive product experience, word of mouth usually comes in the form of a recommendation: “Hey you should check out this cool new phone I bought or you should try this great new restaurant!” When we find something great, we like to tell other people about it, it shows how clever we are.

On the other hand, when it comes to Service, people as we can see from the research are much more likely to tell many more people about the negative service experience. The reasoning is, as humans, when something bad happens to us, we tell others to evoke they sympathy. “You won’t believe how they treated me, they were rude to me”. The usual response as we all know is to support our friend and agree how awful that experience must have been for them.

What this tells us is that we pick companies because of their products, but we often leave therm because of their service failures.

To read the book, “The Effortless Experience by Matthew Dixon.

Posted on November 3, 2016 and filed under Customer Experience, Service Design, Innovation.

5 Ways To Achieve Business Transformation Through Customer Journey Mapping

Customer_Journey_Mapping

Customer Journey Maps (CJMs) are quickly emerging as the go-to tool for leading businesses because of the instantly-usable benefits they provide.

Access to fresh customer insights enable you to prioritise meaningful investments that will drive growth. CJMs help you to deeply understand your customer’s experience from the their point of view whilst leveraging that data to increase business acumen. 

In this article from TandemSeven, Steve Offsey shares five situations in which Customer Journey Maps can serve as a powerful tool for transforming your organisation. 

"Journey maps are... an ideal tool for transforming your company into a truly customer-centric organisation."

Check out how Proto Partners can map your customers' journey here. Or if you want to find out more about the value of CJMs, read the article here.

 

Reduce monthly churn by investing in your Customer Lifetime Value: it's a no-brainer

Customer Lifetime Value

If 70% of your business comes from repeat customers, why aren't you investing in Customer Lifetime Value? The key to increasing Customer Lifetime Value (LTV) is to thoroughly engage your customers - and how do you do this? By anticipating their needs and empathising with their problems.

Research continues to reveal that it's better to retain a customer rather than acquire a new one. Despite this, the 2015 Retention Marketing survey reported that:

“60% of retailers report a retention rate of less than 20%.”

This means there is an opportunity to increase your retention strategy. You can better understand every interaction your customer has with your company by mapping their journey from end-to-end.  Find out more about what Proto Partners can do for your company with the power of Customer Journey Mapping.

Empowered with this understanding, your company will have the competitive advantage it needs to retain your customers - for life.

You can find out more about building Customer Lifetime Value.
Read the article here.

 

 

Can Customer Experience Become Your Brand?

It is apparent to big brands that Customer Experience is what keeps customers coming back time and time again. Steve Olenski, a top Content Marketing Influencer and Forbes & HuffPost contributor, describes CX as a journey that never ends.

"Brands need to continually work harder to get closer to the destination without ever reaching it so customers keep coming back for more.”

The experience starts to become the brand - banks are creating delightful online experiences, hotels are delivering more memorable moments for their visitors, museums are focusing on creating emotional connections with their visitors.

How will your brand become the experience that your customers keep coming back for?

To read the article click here

9 CUSTOMER JOURNEY COMPONENTS

Why focus on the customer journey? Because the customer journey itself can create value for the customer. It is a key source of differentiation between competing products and services. A third of customers leave brands after one negative experience, thats why it is ever so important that we optimise EVERY interaction customers have with your company across their journey. This article breaks down the nine journey mapping components to help you take the first step towards customer centricity.

To read more click here

Empower your Employees to Become Customer Service Leaders

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You have probably heard one of the customer centric stories surrounding Ritz employees. They are renowned for going above and beyond what is required to create something special for their guests, such as investing time and money to simply return a family item to a customer.

..... ..... .....

To become service leaders, Ritz is empowering its employees and giving them the ability to make on the spot decisions in favour of their customers.  Ritz is aware that one generic policy cannot cover everything, and to accommodate for this Ritz empowers its employees with $2000 each to spend on improving their customer service, and ultimately improving their guests’ satisfaction.

This may sound alarming, but most of the time the decision to help a customer in need will be less than $50, a relatively insignificant amount when considering the customer lifetime value and the positive brand equity that will be generated. We know that happy customers create a positive return and since “most customer interactions” exist with employees, it is important to give them all the means to take action when needed.

Regrettably, this is not as simple as it seems. Most of the time employees are fearful to take independent decisions to solve customer problems. This occurs because they believe that they will lose their jobs, and that they could be criticised for the initiative they have taken. Employees are often nervous around whether they will be required to pay for the loss of expenses.

There is however three easy steps that can help your company overcome this problem and boost your employee’s empowerment:

1. Make sure that every department and manager is on board with this policy: Reinforce the culture of empowerment within the teams and the notion of “stand by the employee”.

2. Train employees on empowerment

3. Celebrate employees taking initiative

In the hope that their businesses will generate an enormous revenue from new clients and happy guests, companies can spend thousands on creating an innovative and differentiated business strategy from the “marketing mix”. Despite this investment however, the majority of businesses are not willing to invest a couple of bucks on training employees on how to retain customers and are becoming increasingly reluctant on empowering their staff to make decisions that will impact the customer immediately.

It is important for companies to understand that employees need the ability to bend policies in order to fit each customer specific context. You need to be confident in investing in these little things that dramatically improve the customer experience!

To read more click here.