Tag Archives: customer strategy

FS CX Special: 3 interviews with CX leaders in financial services

I write a series entitled, ‘CX leaders’ which has included number of CX practitioners. The selection criteria for the interview is simply companies, or CX leads within those organisations who have impressed me with their commitment to a customer-led approach.

I’ve covered a range of sectors, including financial services. There is inspiration to be found from talking with those who are pushing forward with a customer agenda in a world dominated by transactions. As the interviews featured in this FS special show customer experience is a great way to transcend from a customer transaction focus to a customer relationship culture.

Against a backdrop of FCA regulation, historical lack of consumer trust and the arrival of nimble ‘cloud’ inhabiting digital brands, the established FS brands have their work cut out to stay relevant. But as these three interviews show, FS has a lot to gain from an effective CX strategy.

Newcastle Building Society – interview with Stuart Fearn, Head of Customer Contact

Stuart explains how NBS review technology to understand how it helps customers before deciding whether its relevant and valuable to adopt.

“Our priority is to make it easy for our customers to deal with us and to create positive, memorable moments and connections.

Link to the full interview – CX Leaders: Newcastle Building Society

The Bank of Cyprus – interview with Scott Fleming, Chief Customer & Commercial Officer

As his job title suggests, the Bank of Cyprus see customer-led thinking as a key growth imperative. With a customer base spread across branch usage and online banking, BoC’s challenges are familiar to most in retail banking.

Scott highlights the key requirements and support needed to make customer experience a priority focus in a financial organisation, including KPI management and backing from the CEO.

Link to the full interview – CX Leaders: Bank of Cyprus

One Savings Bank – Interview with Stephen Plimmer, Head of Customer Strategy & Insight

I met Stephen at the FSF Marketing Effectiveness Awards where OSB had picked up the CX award we sponsored that year.

Their story is of interest to anyone with a specific product or demographic looking to broaden their reach further.

link to the full interview – CX Leaders: One Savings Bank

These three interviews highlight some of the challenges and solutions financial services brands are dealing with in order to pursue a more sustainable profit from committed and content customers.

If you would like to be, featured in our CX Leaders series please drop me a line.

If you’d like to understand more about the value of CX and how to apply it to your business, email christopherbrooks@lexdengroup.com and we will forward details of how to ‘improve’, ‘prioritise’ and ‘lead’ with CX.

Posted by Christopher Brooks, Lexden – The Customer Experience Practice

lexdengroup.com ¦ +44 1279 902205 ¦ @lexdengroup

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Beware of the vanity project some parade as Customer Experience

‘Customer Experience’ is a very popular business expression these days. It features heavily in everything from boardroom agendas, to Amazon book lists, to the events & conference circuit to LinkedIn posts.

But what you must be careful of is making sure you are only reading content from sources connected to the right one of the two wildly different servings of customer experience which have emerged. One has a ‘gain for all’ motto, whilst the other a ‘gain for me’ sentiment.

The correct and healthy definition for CX is one that delivers value to clients and their customers and has been around since before ‘CX’ had a label. It is expressed (broadly) as follows:

“The value created from the sum of the interactions between a customer and company throughout the term of their relationship”

Those providing support services to clients seeking to improve their CX focus on helping companies to identify what matters most to their customers and how to improve the associated experience to attract an increasing level of positive commitment from customers on a sustainable basis.

And there are a myriad of great books (see below), helpful practitioners guidance notes and insightful case studies to fuel your CX thinking if you chose not to engage the better CX advisory companies now established. These are penned and provided by some great practitioners who happily stay in the wings; client-side or consultants, recognising the solutions are the true heroes and they are the enablers.

Accepting CX evolves and everything from customer expectations to the way it’s measured updates with it, are the hallmarks of progressive and proactive professionals in CX. We’ve found being connected with an elite number of practitioners, professionals and professors in CX keeps us up to date and always seeking a higher ground (if you are wed to an old model or measure or machine, you have to keep flogging it even if the metaphorical horse has already died).

This is an inclusive approach where the collective create gains for clients and customers alike dominate. Customer comes first.

I was approached to write a book on CX. In response to which I pointed out the set below – explaining there are enough good books out there covering many angles. What more could be said?The effort should be on the application of wisdom now. Then let’s regroup and review the scripts.
So it’s very important to avoid the second definition of customer experience:

“The value created by often lesser qualified individuals or companies using CX primarily as a means to create financial gain”

Sadly this has led to many mediocre books, second rate speakers (poor content overpowered by questionable delivery style) and case studies (without the context connected).

These serve the providers and presenters well, feeding egos and appearance euros in equal measure. But they are nothing more than re-purposed content often featuring outdated, re-purposed or unsubstantiated ‘observations’ from others.

But it’s getting easier to spot these pretenders from the true professionals.

CX is an evolving discipline and many of the conventional ideas, models and measures have now been proven to be less reliable and damaging. But like a one hit wonder pop star, it’s too much of a challenge for these podium players, UX Unicorns, digital dinasours, solution serpents and other ‘CX pretenders’ to evolve. They have built their fortunes on a back catalogue, and struggle to adapt to new material.

Their advice and soundbites may quench the thirst before an all day conference break and even taste good compared to the buffet lunch but they will prove difficult to digest and ultimately add little to no substance, leaving your corporation still hungry for sense and success, but a little lighter in the pocket.

So how can you tell the good from the bad? It’s quite simple beware of those putting ME and US into CUSTOMER. Now we’ve shared the signs, you’ll spot them every time you pick up a CX book, click open a webinar, pay to hear a speaker or scan an article on customer experience. 

But if you are unsure simply challenge their value with these,

  • ‘Does it put the customer first?’
  • ‘Will it improve our customer’s experience?’
  • ‘Does everyone gain from the experience?’
  • Can you substantiate the claim?
  • Can you explain what happened before, what was the catalyst and how did you measure the change?

If the answers are yes, keep consuming!

The other way to spot a pretender is they will typically start their presentation with a story about the customer experience they endured en route to the event. Commonly known as the ‘a funny thing happened to me on the way here’ syndrome. Ironically, it never did.

Posted by Christopher Brooks, fan of progressive and productive CX which inspires practitioners and delivers gains to clients by generating genuine value for their customers.

LexdenGroup.com

 

Free listing of 2018 Customer Experience Events & Conferences

Each year there are over 100 Customer Experience events and conferences. The event junkies attend at least a handful, most of us aim to get to one or two and others miss out altogether. Whichever you are, I’m sure you’ve also found out about a conference after the event that you  wished you’d attended.

With so many events, how do you know what’s happening and when?

Good news. At Lexden Customer Experience Consultancy, we’ve decided to pull together a listing of the CX events so you don’t miss out anymore. If you would like a free copy and updates, reply below and we will give you access to an ‘always up to date’ listing.

We hope you find it a useful source.

At Lexden we provide advice and support to enable customers to make the most from their customer experience.

www.lexdengroup.com | Contact: christopherbrooks@lexdengroup.com | +00 441279 902205

Free Customer Experience Progress Assessment

As independent Customer Experience Consultants, we have launched a free Customer Experience Programme Assessment tool to help clients review their internal practices against several areas where alignment is required to achieve distinction through customer experience.

We see the benefit to you as follows:

  • Identify the key areas involved in progressing CX
  • Identify where you are ahead or behind others in terms of your CX progress
  • Assess what progress looks like, to ensure you are good shape to get there
  • Help you assess where you are ahead of any resource decisions coming up
  • Get a quick read (within 3 days) with minimum impact on the business
  • Provide current state insight which you can share with others helping you take CX forward
  • Validate or challenge advice and recommendations received from current CX partners
  • Receive an independent observation separate to any vendor supported opinions

As independents we have no invested interest in the outcome

We include consideration of feedback platforms and other technologies alongside the other key areas of CX rather than the focus as is often the case with vendor assessments. We are in the business of best practice guidance and effective advice rather than tech solutions. So our report provides you with a broader appreciation of how far you’ve progressed.

Each of the key practice areas (such as channel management, accountability, tech, adoption, measurement and culture) are graded from ‘Unaware’ to ‘Differentiating. The grading is based on Lexden’s extensive experience in setting up and improving clients CX programmes. Your progress is plotted accordingly with an output report highlighting your overall progress and breaking this down across key areas. A comparison of your performance to other companies is also made across each area.

More than one assessment per company can be completed. This means you can use the approach to gauge the variance in perceptions of CX progress across the business between different individuals, levels, roles, departments, locations or even brands in a group set up. Let us know if this is the intended purpose and we will aggregate results as well as supply specific reports.

Click this link to the survey which will take 10-15 minutes to complete. Information collected is confidential. Once the assessment is complete we will confirm this and forward the output within 3 days.

How to achieve 600% from your Customer Experience Programme

If you are looking for something more comprehensive we also provide a robust assessment of the profitability level your CX programme is achieving, bench-marked against over 1,000 organisations. Adapting the award winning CX Typology(c) Measuring Customer Experience research of Dr Professor Phil Klaus, we assess your current programme against 47 practice points. Arriving at a score, CXPPA (Customer Experience Programme Profitability Assessments) pin points where improvements in your programme should be focused, and how to align your actions to those of organisation who are driving 600% more from their CX programmes. To receive more information on this exclusive assessment please contact us.

If you’d like to receive more articles on driving more profitable Customer Experience, please sign up to our free monthly ‘Customer Experience Update’.

Lexden helps deliver effective customer experience insight, strategy, content and creative activation clients seeking sustainable profit from customer experience.

If you’ve got a CX challenge, see if we can help.

Are you wasting money on Customer Experience?

With 90% of CEO’s prioritising Customer Experience as a leading business practice(1), financial scrutiny on performance will only increase to retain board confidence and commitment. However, 90% of programmes are failing to deliver (2) their potential.

How can you be sure Customer Experience investment is correctly prioritised?

Most manuals and professional CX speakers would advise practioners to fix what’s upsetting customers and move on to making a point of distinction on what they rave about. Which should push up satisfaction and recommendation scores.

However, both these customer experience strategies require investment to succeed. What if there is no budget? Can you ‘hedge’ the required investment against incremental sales/profit this focus will deliver? It’s probably not that safe to do so. Evidence shows that only 1% of share of category can be reliably attributed back to these conventional measures (email me if you want more on why this is).

A more linear approach is to show the reduction in ‘bad demand’ operational costs associated with managing activities creating negative feedback on specific touchpoints. This would show an accountable reduction in costs. Albeit costs created by a bad customer experience in the first place. So should they be classed as a win, or an own goal? Either way, it’s a start.

This gives you the two more common strategies for CX growth pursued:

  1. Improve that which the business is poor at but customer’s value (also known as the ‘Fix’ phase)
  2. Leverage that which the business is good at and customer’s value (also known as ‘Build’ phase)

The shortfall here is that the hit list for these strategies rely on customer’s feeding back about what’s great and what’s not. But what if customers don’t vex about an issue? And why wouldn’t they –  because it’s not on their radar? What if there’s nothing wrong or right about an experience but because it’s not important to customers it never gets raised? With most VoC set ups if you don’t hear about it often it gets considered not worth looking at.

A conventional approach focuses on capturing feedback on customer’s sentiment and intention. But as proved on most voting days, intention and behaviour are often distant relatives. Whereas, understanding actual behaviour caused by Customer Experience is evidence of what customer’s do.

So rather than only asking how satisfied a customer is with an activity or experience, or which activities they are satisfied with or otherwise, understanding how important an activity is to a customer’s share of category commitment brings behavioural based measurement in to CX. Actual behaviour is a significantly more reliable indicator of decision making than intention.

This moves the focus from knowing some of what’s going on, to knowing everything

With fix and build programmes linked to CSAT and NPS inferred scores, there is a read on, ‘what we are good at and what we are not so good at’. By complimenting this with behavioural change insights we are now answering, ‘what customer experiences matters most to a customer’s decision to commit share of category’. This adds the missing commercial dimension to CX performance management and with it reveals two further CX strategies for practioners to pursue. As well as sharpen the purpose of the ‘Improve’ and ‘Leverage’ strategies too:

  1. Monitor and refine/remove CX which the business is poor at and does not impact customer’s decision to commit to us
  2. Improve CX which the business is poor at but impacts customer’s decision to commit to us
  3. Leverage CX which the business is good at impacts customer’s decision to commit to us
  4. Explore the potential in CX Opportunities which the business is good at but does not impact customer’s decision to commit to us

These are shown in Lexden’s MILO matrix below, which enables prioritisation of CX investment.

Lexden’s CX MILO Matrix

The ‘Monitor’ strategy identifies investment which is under-performing and not needed (or as the headline state where a company is ‘wasting money on CX’).

With conventional feedback this insight isn’t unearthed because it’s the customer experience that doesn’t matter to customers, so it rarely gets asked for or feedback provided – whether it’s good or bad. But if this collated less meaningful activity can be refined, reduced or removed and rationalised costs redeployed to the ‘Improve’ and ‘Leverage’ strategies.

Which leaves the ‘Opportunity’ strategy, which provides untapped potential for new areas to consider. These could provide future advantage in a maturing CX-led organisation if reshaped and made important to the customer’s decision making or outcomes fulfilment.

You may be questioning this only works if you know what activities matter in the first place, and their relative degree of importance. If you were starting from scratch that would take longer and cost more to work out than would be of use.

Fortunately, the missing golden insight is already available

Leading CX academic Dr Professor Phil Klaus developed a quality of experience measure which identifies which customer experiences impact customer’s behavioural decisions. In conjunction with Prof Klaus, we work with this leading edge CX insight measure, which means we can now add ‘behavioural change’ insight to existing NPS and CSAT measures to create the missing commercial rigour CX deserves.

With ten years and over 1,000 case studies complete, this award-winning insight informs companies on ‘what matters most’ and ‘what doesn’t matter at all’ when it comes to customer experiences impacting share of category decision making. By identifying the most important 25 customer attributes and experiences (refined from a total of 300), the ‘Experience Quality Measure’ accounts for up to 88% of a customer’s decision making. Making it the most reliable CX measurement available.

Each individual study completed highlights the specific set of activities and their relative importance for that company. No two outcomes are the same making it the unique CX DNA of a company. The principal advantages of this approach are as follows:

  • It doesn’t matter which CX measure you have in place already, or which VoC platform you use, we run a one-off separate study alongside what’s already in place.
  • The volume of customer contacts engaged to arrive at the experience measure is around 125, so it’s a much smaller study all round, than a VoC programme commitment
  • We are now into our third year working with the approach and translating the academic science into a more workable and accessible insight source for clients to prove profitability from CX
  • The measurement won’t shift overnight, because it’s based on actual behaviour change, not just opinion. So, we recommend capturing and tracking progress annually
  • Competitor data is also captured which means we also know 1) who else has your customer’s share of category and 2) what customer experiences attract your customers to them
  • This insight can be identified and the MILO matrix complete within 8 weeks

So, there you have it. The ability to identify what drives share of category rather than just favourable commentary.  The confidence to pull out from your plan those activities which matters least. The insight to keep ahead of your competition in CX. Which means CX leaders can demonstrate to budget holders that CX investment isn’t being wasted. In fact, with all four of the MILO strategies pursed it’s driving profitable growth.

If you’d be interested to see how it works with a case study or how easy it is to add this essential CX insight to the CX governance, please contact christopherbrooks@lexdengroup.com 

If you’d like to receive more of these, and other articles on driving more profitable Customer Experience, please sign up to our newsletter.

Lexden helps deliver effective customer experience insight, strategy and solutions for clients seeking sustainable profit from customer experience. If you’ve got a CX challenge, see if we can help.

(1) Bain (2) Dr Professor Phil Klaus

Customer Lifetime Value – can you solve the formula?

Can you solve the formula
to the right?
If you paid as much attention to algebra as me in maths lessons at school, probably not.

That said, I can almost guarantee that you do understand the formula (or at the very least will by the end of this blog!).

In my time working on a very progressive service initiative in the commercial insurance area, the organisation I was with were responsible for a huge upturn in their new business, rate and retention results by understanding that just because a customer doesn’t choose you this time, doesn’t mean they will make the same decision the next time round.

What will dictate their next decision will be the feelings and associations they have of you and your brand as a result of the experience you gave them.

I listened in to a call once where a city Broker spoke with our Trader to say he was placing a £900k risk with a rival insurer after three months of effort on our Traders part. I’ll never forget the startled reaction of the Broker as our trader told him:

“not a problem, well done, you’ve done a great job to get that price. We’d love to speak with you about it again next year, I’ll put something in our diaries as a reminder”.

Not only did we win back the risk the next year, but we got a lot more incremental business in the following 12 months from the Broker.

Moving on to an example of a slightly smaller value, my mortgage company with whom I also have a credit card and a debit card (let’s call it a 321 debit card) recently failed to apply the new rate I had chosen following my initial two year rate coming to its end. They said they hadn’t received the letter, I knew I had sent it – it was their word against mine and as a result of the mistake, I had been overpaying for three months.

As the conversation unfolded, it became clear that the experience I had expected; application of the new rate going forwards, and no reimbursement for me, wasn’t going to happen. In fact, the excellent, empathetic, and well trained advisor applied and backdated the rate, taking the corresponding amount of money off my next mortgage payment.

Am I likely to move my mortgage or any of my cards now? Not a chance.

We at Lexden take the same view. We feel that when deciding whether to set out on a CX journey or not, the last thing any organisation should do is call in the consultants to decide for them.

It sounds counter-intuitive coming from a CX consultant, but it’s something that we beleive must be owned and driven from within rather than outsourced. It can lead to a complete lack of ownership of CX within the business.

Whereas we find the most fruitful engagements are those with clients who have a clear desire to deliver excellent experiences. We do of course help them understand what matters most to their customers and how to amplify their authentic difference through customer experience, but throughout we are ensuring ownership, drive and knowledge rests with our clients.

Our experience of this approach has led to client’s inviting us back in and welcoming us rather than judging the value of CX support provided, time after time. This is my understanding of customer lifetime value (even if I still can’t quite decode the equation!)

Posted by James Edmonds, Senior Consultant, Lexden

Lexden helps deliver effective customer experience strategy and solutions for clients seeking sustainable profit from customer experience.

If you like what you’ve read please sign-up to Lexden’s ‘Customer Experience’ Update for monthly ideas, inspiration and insights to improve your customer strategy endeavours. 

Lexden’s top 3 Customer Experience moments of 2016

As you would expect from a Customer Experience Consultancy, we collect examples of good and bad practice in customer experience as sales execs collect air-miles. So the office conversation often turns to something we’ve seen or experienced and what impact we feel it has on customer’s future commitment to that brand.

We took this ‘I wonder’ a little further and created two twitter characters to collect stories from people too. Grumpy persona @vexvox collects and distributes stories from others on the woes of customer experience, whilst his upbeat cousin @fondfox shares applauds stories of positive customer experience.

If you want to here what people have been saying about your brand, let us know

Keeping the mood on customer experience light, we’ve collated our favourite three experiences from last year. We hope you find these examples inspirational and can see how the ‘themes’ involved can be taken back and embedded in to your own programmes.

#1 Adidas (Christopher, MD, Lexden)

July 2016 and walking down the Champs-Elysee my son spots an Adidas store. Despite his heart being set on a pair of Nike ‘sock’ football boots for his birthday the following month, we go in.

adiddas-2

In the store, we were approached. When we mentioned the sock boot the assistant said the only way to know if the Adidas boot might be better is to play football in them. At which point he got a pair out which my son tried. The Adidas assistant also got out a ball and turned the shop into a training ground; passing, lobbing over clothes rails and shooting at walls. My son stated it was one of the highlights of his time in Paris. The next month he switched his allegiance and requested a pair of Adidas sock boots for his birthday. Link to full article.

#2 Wordery (Leanne, Office Manager, Lexden)

wordery2One of the gifts Leanne ordered up as a Christmas present for a nephew was an Aladdin, popup book which also played music. Although on opening it her nephew found it didn’t play anything. Fretting about how to get it returned as it had been free delivery, Leanne contacted the online retailer, Wordery. Their returns policy couldn’t have been better. They apologised, didn’t question the legitimacy of the dispute, explained even though it doesn’t happen often a replacement was in the post already. Not bad.

But what about returning the faulty book? Returns are proving to be a killer pain point in customer experience for online companies. Not with Wordery, they said no return of the book was needed, just a copy of the ISBN page details. What really impressed us was they asked if Leanne could drop the book off at a children’s home or hospital to enjoy.

#3 Mercedes-Benz (James, Senior Customer Experience Consultant)

You may be aware but Mercedes-Benz are one of the best performing customer experience brands in the world. Their CX drives contentment, commitment and contribution from their customers. This example highlights why.

mercedes

https://mercedes.citnow.com/vxxHgsLNh9S link to service video.

James’ took his car in for a service. Most of us worry about what the costs will be and part of the anxiety is created by the ‘behind closed doors’ set-ups of garages. The layout is no different at Mercedes-Benz, but recognising this anxiety and wanting to reaffirm their transparent approach to servicing, they sent a video of the service being conducted through. It’s not a new idea, Pizza Express brought the kitchen experience into the restaurant a few years ago. But it’s still a powerful one which creates confidence in the quality of the service and therefore overall brand trust.

We hope you enjoy these varied examples from our 2016 vaults.

If it floats your boat, our monthly Customer Experience Update contains similar content as well as the latest developments in Customer Experience, successful case studies and interviews with leaders. You can the vanguards in customer experience, and subscribe for free here.

cb2

 

 

 

Lexden delivers effective customer experience solutions for clients serious about sustainable customer relationships.