How many ways are there to tie your shoe laces? (6 eyes per side) Slide 2 Burkard Polster, Australian Mathematician 43,200! Slide 3 Changing Your Cultural Thinking Slide 4 Sharpening your saw Slide 5 Objectives for Today Understand the changes we faced Recognise need to change How we can all play a part in improving the customer experience Understand customer expectations and the impact of emotion Identify where we can improve as a team Recap on our values Recognise how we can improve our impression How to apply the magic recipe for success Understand what is in it for me Make three personal commitments Slide 6 Objectives for Today Understand the changes we faced Recognise need to change How we can all play a part in improving the customer experience Understand customer expectations and the impact of emotion Identify where we can improve as a team Recap on our values Recognise how we can improve our impression How to apply the magic recipe for success Assessing your team Make three personal commitments Slide 7 Come With Us On a Journey Slide 8 What The Landscape Looks Like Slide 9 The Business Landscape Further prolonged economic uncertainty We never learned this in university. Everyone is lost. Increasing customer expectations Less loyalty and more choice Aggressive competition Offerings very similar product, facilities, service levels Shorter copy-cat timeframes Cost of differentiation increasing Pressure to reduce costs and improve profitability Focus on growth, market share and bottom line Slide 10 Employee Landscape Expect more than just the salary Glad to have a job though Expect to be valued as individuals Want to be involved and to contribute Increasingly seek good employers and cultures Conscious about employee rights Critical of poor management More likely to speak out than ever before employees vote with their feet. Slide 11 Customer Landscape Expect more than just the product Expect to be respected as an individual Seeking the feel good factor Highly educated about price, VFM and rights Less forgiving and more critical Social media savvy Face Book, Twitter, LinkedIn Increasingly experience bland levels of service Increasingly buy brand and differentiation customers vote with their feet (and increasingly their mouse clicks.) Slide 12 The Customers Experience. What does that really mean? Slide 13 The Customer Experience Defined "The customer experience is the combination of your organisation's tangible performance together with the senses these stimulate and the consequential emotions these trigger in the customer, all instinctively assessed against the customer's own expectations across all the interactions the customer has with your organisation. or put another way... Slide 14 The Customer Experience Defined Customer experience is the internal response of an individual to their interactions with an organisation's products, people, processes and environments. or put another way... Slide 15 The Customer Experience Defined It's how you're making your customers feel whenever and however they deal with you. Slide 16 The customer experience must be planned and deliberate. Otherwise its left to chance! Slide 17 Customer Expectations Slide 18 Great course Safe rides Clean rooms Healthy animals Efficient process Clean Hot food Prompt service Valued Cared for Interested in Happy Pleased Satisfied Confident Relaxed Engaged Slide 19 How are we making them feel? Slide 20 Brand Satisfaction Continuum the impact on loyalty Champions Delight Passive Satisfied Floating Neutral Alienated Dissatisfied 5% shift in customer retention delivers 25% - 100% profit improvement Beyond My Expectations!! It Was What I Expected. Not What I Expected. I Was Disappointed 60 % to 80% defecting customers said they were satisfied to very satisfied just prior to defection ! You Completely Failed To Meet My Expectations ! Satisfaction - Loyalty Continuum Irritated Hurried Neglected Unhappy Unsatisfied Stressed Disappointed Frustrated Interested Energetic Exploratory Indulgent Stimulated Trusted Valued Focussed Safe Cared for Happy Pleased Slide 21 Working as a team Slide 22 Our Values What are the Woburn values? Slide 23 Our Values Integrity Innovation Community Heritage Excellence Slide 24 Work is theatre Slide 25 Referrals Reduced Costs Price Premium Increased Purchases Base Profit source:zero defections, harvard business review Average Length of Customer Relationship (in Years) 0123456701234567 Customer Profitability Why customer relationship the value of customer loyalty and increased profit Loyal Customers Stay Longer Buy More Cost Less Pay More Tell Others Loyal Customers Stay Longer Buy More Cost Less Pay More Tell Others Slide 26 The price of birthday cake offerings the value of customer experiences Commodities 1.50 Services 25 Goods 4.50 Experiences 175 Slide 27 The price of coffee offerings the value of customer experiences source:zero defections, Harvard Business Review 0 1 2 3 4 5 6 7 8 Commodities Goods Services Experiences Slide 28 Slide 29 Slide 30 The magic recipe for a great experience Slide 31 Assessing your team Slide 32 Change can be achieved through commitment or compliance Compliance "I have to do it this new way" Reaction "I will react to this change -if I must" Testing "I must absorb this change Negative perception "I feel threatened by this change" Positive perception "I see the opportunity in this change" Engagement "I see the implications for me / us" Understanding "I know why and what will change Awareness "I am being told about something" Testing "I will put myself at stake for this change" Action "I will act to achieve this change" Commitment "I want to do it this new way" Slide 33 SPECTATORS PLAYERS WALKING DEAD CYNICS LowHigh Low High Energy Attitude Slide 34 Moving the tanker Slide 35 You Cant Light a Fire with a Damp Match! Slide 36 What we are and who we become is determined by those who love us. As a child.. Slide 37 What we are and who we become is determined by those who lead us. As a business.. Slide 38 Managements Responsibility directive v supportive Front line staff Supervisors Managers HOB Customers Creating Vision & Values Front line staff Supervisors Managers HOB Customers Supporting & Responsive Your Customer Experience Slide 39 You Cant Light a Fire with a Damp Match! Slide 40 to succeed you have to believe in something with such a passion that it becomes a reality Slide 41 Customer Capture and Retention working on your bottom lines Senior Executive level to create and communicate vision & values Strong leadership required Dept. Manager level to create processes, team alignment and commitment and cascade the vision Strong leadership required Front line level to create expertise and emotional connection through brand oriented action and customer experiences Slide 42 Connecting the Vision HOB/CEOs vision gives organisation belief but often disconnected from the Customer Experience Customer Experience reflects behaviour of your people Behaviour is conditioned by commitment and capability of managers the RED LINE line of sight Customers Slide 43 Empowerment Slide 44 Not all change initiatives succeed Slide 45 The Reality About Change Programmes 1. Too complex. 2. Failing to build a substantial coalition. 3. Not understanding the need for a clear vision. 4. Failing to clearly communicate the vision. 5. Permitting roadblocks against the vision. 6. Not planning for short term results and not realising them. 7. Declaring victory too soon. 8. Failure to anchor changes in corporate culture. 70% of Change Processes Don't Succeed Professor John Kotter, Harvard Business School Slide 46 The Eight Phases for Change Establish a Sense of Urgency the context of why Professor John Kotter, Harvard Business School 1 2 3 4 5 6 7 8 Create a Coalition champions for the cause Develop a Clear Vision where are you going, what will it look like? Share the Vision to all audiences across the business Empower People to Clear Obstacles get out of their way Secure Short-Term Wins celebrate success, look for the quick wins Consolidate and Keep Moving keep the momentum going Anchor the Change consolidate successes Slide 47 Align every facet to the customer experience Slide 48 The customer journey Slide 49 The voice of the customer has to be heard Slide 50 Engage With Your Customers the more you engage with customers the clearer things become and the easier it is to determine what you should be doing John Russell, President, Harley-Davidson Europe Slide 51 BAIN Consulting, USA 1999 -2002 Interviewed over 130,000 customers, 400 companies, 28 industries Searched to find a clear, tangible, unambiguous measurement that linked customers experience with growth Loyalty and Business Growth the research Slide 52 Loyalty is the willingness of someone - a customer, an employee, a friend - to make an investment or personal sacrifice in order to strengthen a relationship. For a customer, that can mean sticking with a supplier who treats him well and gives him good value in the long term even if the supplier does not offer the best price in a particular transaction. Loyalty is more than simply repeat purchase Loyalty is a state of mind, attitudinal as well as behavioural Loyalty is the willingness of someone - a customer, an employee, a friend - to make an investment or personal sacrifice in order to strengthen a relationship. For a customer, that can mean sticking with a supplier who treats him well and gives him good value in the long term even if the supplier does not offer the best price in a particular transaction. Loyalty and Business Growth definition of loyalty Slide 53 Slide 54 Referrals Reduced Costs Price Premium Increased Purchases Base Profit source:zero defections, harvard business review Average Length of Customer Relationship (in Years) 0123456701234567 Customer Profitability Why customer relationship the value of customer loyalty and increased profit Loyal Customers Stay Longer Buy More Cost Less Pay More Tell Others Loyal Customers Stay Longer Buy More Cost Less Pay More Tell Others Slide 55 A Single Question? How likely are you to recommend us to a friend or colleague? 0 = Extremely unlikely 5 = Neutral 10 = Extremely likely Slide 56 How Likely Are You to Recommend Us to a Friend or Colleague? PROMOTERS % DETRACTORS % 9 - 10 0 - 6 7 - 8 Net Promoter Score % Slide 57 Slide 58 All companies should ask their customers the Net Promoter question. Slide 59 Dont Just Take Their Word For It Here the views of others All companies should ask their customers the Net Promoter question. Slide 60 London School of Economics supports Net Promoter Findings Word of Mouth and Growth in the UK By finding an empirical link between word of mouth recommendations and sales performance among US companies, the Reichheld study answered two thorny business questions: How do you measure word of mouth? (Answer: the Net-Promoter score). And how do you measure the effect of word of mouth? (Answer: sales uplift). Dr Paul Marsden, London School of Economics Report Published 05 September 2005 Advocacy Drives Growth Customer Advocacy Drives UK Business Growth Slide 61 Word of mouth was found to predict sales growth for retail banks, car manufacturers, mobile phone networks and supermarkets in the UK. We conclude by suggesting that the Net Promoter score as a measure of word of mouth advocacy may be useful not only in predicting sales growth, but also in predicting share performance and employee productivity. Specifically we propose that three simple questions could predict overall business performance; Likelihood that customers would recommend a company or brand to friends or colleagues. Net Promoter score as a predictor of sales growth. Likelihood that investors would recommend investing in a company to friends or colleagues. Net Promoter score as a predictor of share performance. Likelihood that employees would recommend working for their company to friends or colleagues. Net Promoter score as a predictor of productivity. Dr Paul Marsden London School of Economics Report Published 05 September 2005 Advocacy Drives Growth Customer Advocacy Drives UK Business Growth Slide 62 London School of Economics Report Published 05 September 2005 Advocacy Drives Growth Customer Advocacy Drives UK Business Growth Slide 63 In terms of percentage growth, a 7 point increase in word of mouth advocacy (Net-Promoter score) correlated with a 1% increase in growth. Every 2% reduction in negative word of mouth correlated to just under 1% growth. Companies with relatively high Net-Promoter scores (>0), and relatively low negative word of mouth rates ( 25%). Slide 64 Your Community Tools Slide 65 Ideas for keeping employees engaged Slide 66 Engaging Employees Involves Keeping them informed of progress and plans, Celebrating successes Seeking their opinions Encouraging ideas generation and business improvement Running competitions Asking question Motivating and inspiring individuals in their teams Communicating, giving and receiving constructive feedback, delegation, and encouraging support. Enhanced through briefings, suggestion schemes, performance reviews and reward systems, along with day to day management processes such as identifying what motivates specific individuals, spotting people doing things well, and saying thank you. Slide 67 The Vision A meaningful picture of the future that creates focus, direction, passion and commitment. Slide 68 The Woburn Vision What does that really mean? Slide 69 Questions for You Do you have a vision? Are employees excited by your vision? Is it communicated in a meaningful and relevant way at every opportunity? Is it more than a poster in reception or a set of financial figures? Are people aware of your progress towards the vision? Does it drive your dealership and departments? Is it revisited, reviewed and reenergised by your leaders regularly? Slide 70 Questions Employees Will Ask How is this vision relevant to me? What actually do you want me to do? How will I be measured? What rewards/consequences will I face? What tools and support are available? Whats in it for me? How are we doing? When will we get their? What are the milestones? Slide 71 Our Values Integrity Innovation Community Heritage Excellence Slide 72 Creating the Winning Culture Creating the culture you want starts with assessing the current culture and identifying which aspects of it are we happy/unhappy with. The next step is to establish the culture you want. This often involves spelling out what we want our organisation to be like (its an integral element of the vision). Creating the culture you want can involve a number of key elements: Publishing and living a set of core values Ensuring systems and procedures support the culture we want Establish reward systems that reinforce it Identifying and championing role models throughout the organisation Slide 73 Values can Help: Create the culture you want Provide clear guidelines for acceptable and non acceptable behaviour Reduce game playing and confusion Reinforce and support the external image of the organisation Organisations that truly value their values, use them in the day to day management, recruitment and rewarding of their people Slide 74 Culture Check Are you happy with your organisations culture? Do your people act in line with your preferred behaviours and values? Do your reward systems, performance management and operational procedures reinforce and help promote your preferred behaviours and values? Does your organisation Celebrate its Champions and Challenge its Challengers? Do your leaders act as role models and positively reinforce your preferred culture?