Developing a Customer Experience Vision
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Learn how McKinsey & Company works with different organizations to help them develop a customer experience vision. This presentation outlines how to define your CX aspiration, align leadership, and how to cascade the vision to the front line.
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Developing a Customer Experience Vision
- 1. Developing a Customer Experience Vision Ron Ritter and Will Enger Principal McKinsey & Company
- 2. Will Enger Associate Principal, McKinsey & Company 6 Years of experience with McKinsey & company’s Dallas office Cross-industry experience in customer experience transformations Prior experience in the U.S. Army MBA from Univ. of Pennsylvania, B.S. from the United States Military Academy Ron Ritter Principal, McKinsey & Company 17 years of experience with McKinsey & Company in the Miami office Expert in large scale transformations involving operations and customer experience Served as Special Assistant to the Secretary of the Air Force, US DoD from 2006 to 2009, Ph.D. from Oxford University, (Rhodes Scholar), B.S. from the University of Miami (FL)
- 3. 3 Your company’s culture drives it’s performance…. ©2015QUALTRICSLLC. Average Total Return to Shareholders (TRS) Strength of culture Average TRS per year 9 16 26 Average Strong Weak 3X Higher TRS scores for companies that have strong cultures vs. who do not This translates into ~$1.2B difference in value for an average sized company
- 4. 4 …. and most transformations fail to address it ©2015QUALTRICSLLC. Only 30% of transformations succeed Why do 70% fail? 72% 28% Financial and other obstacles Employee resistance to change and unsupportive leader behaviors
- 5. One organization used culture to drive success ©2015QUALTRICSLLC. ▪ Security anxiety increases airport crowding, wait times ▪ Increased passenger volume stresses capacity of the facility ▪ Other airports and local attractions raised the bar, changing the frame of reference 20% decline in passenger CSAT Double-digit decline in industry rankings A challenging operating environment drove decreased customer satisfaction ▪ Cross-stakeholder development of Customer Experience Vision ▪ Rigorous quantification of what matters to passengers to inform aspiration ▪ Governance and ‘test and try’ programs put in place to keep employees engaged Top 10 industry ranking within 2 years 14% improvement in retail revenues Two –year transformation centered on the passenger experience
- 6. 6 Let’s talk about how they did it ©2015QUALTRICSLLC. McKinsey’s core beliefs on customer experience How to: defining the aspiration, creating a shared vision, cascading and reinforcing the message Use of ‘wow moments’ to reinforce culture Customer vision case studies
- 7. 7 Setting the customer experience vision is a critical component of a transformation ©2015QUALTRICSLLC. Reinvent customer journeys using digital technologies Develop a deep understanding of what matters to customers Use behavioral psychology to manage customer’s expectations Use customer journeys to empower the frontline To improve constantly, establish metrics and a governance system Define a clear customer-experience aspiration and common purpose Customer Journeys 1 CE metric Journeys experience assessment Operational KPI Indicators Organizational and cultural foundation CE measurement pyramid 2 3 4 5 6
- 8. 8 The aspiration and common purpose link the brand strategy directly to front line behaviors ©2015QUALTRICSLLC. Common factbase of current state Brand strategy and value proposition Aspiration (informed by current state) Common purpose Standards for service Day-to-day employee required behaviors
- 9. 9 What they did Invested two months to build a common passenger fact base Prioritized the most important drivers of passenger satisfaction Understood current state of employees from across the ecosystem Took risk and thought big Understand which customer Journeys matter Decide were CX can competitively differentiate Don’t forget the employee diagnostic Takeaways First, the airport defined the aspiration ©2015QUALTRICSLLC.
- 10. 10 Next, the airport purposefully aligned leadership ©2015QUALTRICSLLC. Identify the most influential 60 leaders across the ecosystem Devoted 2 days in person Everyone was equally heard Stayed consistent with the tradition of the brand Aligned on a one-sentence version of the customer vision What they did Get the right leaders in the room and commit the time Give people safe space to debate, discuss, and emotionally commit Stay simple and authentic Takeaways
- 11. 11 Finally, the airport cascaded the vision ©2015QUALTRICSLLC. What they did Leaders must purposefully communicate the vision Link the vision to what individual employees must do differently each day Use positive reinforcement TakeawaysCreated four principles to apply the vision to daily operations Defined observable behaviors that meshed with the vision Created employee-led training, communication, and recognition teams
- 12. 12 Engineer ‘wow’ moments to support the transformation Health insurance Utilities Pay TV Bank 25.7 Hotel 26.3 Health care providers 28.2 Percent of customers “strongly agreeing” to having an experience that surpassed expectations 1 Defined as customers responding with score of 10 Industry Customers “strongly agreeing”1 % of customers CSAT Average Score “Strongly Agree” customers SOURCE: 2015 McKinsey Cross-Industry Customer Experience Survey, June & July 2015, Question DL1 Industries creating “Wow” moments for customers 14.1 15.7 18.7 B $$ ©2015QUALTRICSLLC. 9.5 9.6 9.7 9.6 9.6 9.6
- 13. 13 Case example: Financial institution ©2015QUALTRICSLLC. Standards Security: Ensure you peace of mind Closeness: build an emotional connection Diligence: give advice and deliver “right first time” Image: Live our values in all actions Example employee behaviors I protect the assets of the bank and its customers I care for the safety of information I put myself in the other’s position I take responsibility for all of my customers’ requirements I always have a positive attitude I honor my commitments in due time and manner My work is always right first time, minimizing errors and being attentive to detail My actions are consistent with our values: respect, excellence, integrity My worksite is always neat Customer experience vision “We make dreams come true by developing trust-based relationships during the entire lives of our customers”
- 14. 14 Case example: Airport ©2015QUALTRICSLLC. Standards Safety: Look out for safety and well-being of guests and employees Comfort: Create a clean space free of physical and mental stress Ease: Make the experience simple and courteous Speed: Remove the perception of inefficiency and delay Example employee behaviors Remain mindful of surround- ings and stop unsafe behaviors Pick up trash or report an area that needs attention Display appropriate body language and use a calm tone of voice Make eye contact and smile Stop and proactively offer assistance to next step in the journey Customer experience vision “To delight and value each guest with the finest airport experience in the world”
- 15. 15 Create simple behaviors and recognize employees that are doing it right CLIENT EXAMPLE