Barriers to service innovation and how to overcome them l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 14

Barriers to Service Innovation and How to Overcome Them PowerPoint PPT Presentation


  • 135 Views
  • Uploaded on
  • Presentation posted in: General

Barriers to Service Innovation and How to Overcome Them . John Goodman, Vice Chairman, TARP Bentley University June 18, 2009. About TARP. Founded in 1971—38 years delivering dramatic impact White House sponsored studies of client service (instigated 800#s)

Download Presentation

Barriers to Service Innovation and How to Overcome Them

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Barriers to service innovation and how to overcome them l.jpg

Barriers to Service Innovation and How to Overcome Them

John Goodman, Vice Chairman, TARP

Bentley University

June 18, 2009


About tarp l.jpg

About TARP

  • Founded in 1971—38 years delivering dramatic impact

    • White House sponsored studies of client service (instigated 800#s)

    • Malcolm Baldrige (influenced criteria)

    • Assisted 6 Baldrige winners and 43 Fortune 100 companies

    • Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and “word of mouse” (eCare and Click & Mortar studies 1999)

  • Credited with developing approach for quantification of impact of service and quality on revenue for companies like Neiman Marcus, Mayo HS, IBM, American Express, Qualcomm, Honda, Chick-Fil-A, Toyota/Lexus, USAA, Xerox, and Motorola

  • New book, Strategic Customer Service, published by American Management Association, May 2009.


Formula for satisfaction brand loyalty l.jpg

MAXIMUM CUSTOMER

SATISFACTION & LOYALTY

EFFECTIVE

CUSTOMER

CONTACT

MANAGEMENT

DOINGTHE JOBRIGHT THE FIRST TIME

+

=

Customers will:

Buy again

Buy more

Tell others to buy

Buy your other products & services

Respond to

Individual Customers

Identify Sources

of Dissatisfaction

Improved

Product & Service

Quality

Conduct Root

Cause Analysis

Feedback on

Prevention

Formula for Satisfaction & Brand Loyalty

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Barriers to service innovation l.jpg

Barriers to Service Innovation

  • Misunderstanding of the causes of dissatisfaction

  • Assumption that no news is good news

  • Assumption that everyone is price driven

  • Demand for interactions that are consistent and delightful

  • Benchmarking that causes complacency

  • Single source Voice of the Customer

  • Financial and Marketing cynicism

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Causes of customer dissatisfaction l.jpg

Causes of Customer Dissatisfaction

The majority of dissatisfaction is not caused

by employee errors or attitude.

Employee

Customer

20%-30%

20%

  • - Wrong expectations

  • - Customer error

  • Fails to follow policy

  • Attitude

  • - Fails to follow policy

Company 40%-60%

  • - Products and services don’t meet expectations

  • - Marketing miscommunication

  • - Broken processes

  • - Products and services don’t meet expectations

  • Marketing miscommunication

  • - System fails

  • - Units fail to coordinate

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


No news is not good news health care l.jpg

No News Is Not Good News: Health Care

I

Question/Problem

Experience

II

Contact

Behavior

III

Contact

Handling

IV

Market

Impact

%

Definitely/Probably

Recommend/repurchase

from same organization

No

problem

experience

50%

90%

Satisfied150%

93%

Health

Care Clients

Complainers

5-25%

Mollified230%

50%

Problem

experience

50%

Dissatisfied3

20%

30%

Non-

Complainers

95-75%

Experience suggests three strategies:

Prevention, Solicitation of Complaints, and Response

60%

6

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Problems raise sensitivity to price problems vs dissatisfaction with price l.jpg

Problems Raise Sensitivity to PriceProblems vs. Dissatisfaction with Price

Percent of customer dissatisfied with fees rises with number of problems.

% Dissatisfied with price or fees

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Flexibility and explanation trump consistency accessibility and money l.jpg

Flexibility and Explanation Trump Consistency, Accessibility and Money

  • No Unpleasant Surprises

  • If Trouble Encountered

    • Accessibility

    • Taking Ownership

    • Apology

    • Tailored action – flexible response

    • Clear Explanation – so that I believe I have been treated fairly – often more important than money

  • Handle on First Contact Results in 10% Higher

    Satisfaction and 50% Lower Cost

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Impact of delightful experience on top box loyalty by type of action l.jpg

Impact of Delightful Experience on Top-Box Loyalty by Type of Action

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Traditional views of benchmarking and voice of the customer l.jpg

Traditional Views of Benchmarking and Voice of the Customer

  • Benchmarking of processes is good – benchmarking of performance is problematic

    • Performance is local

    • If tied to incentives – can be disheartening

  • Voice of the customer tends to be only surveys or fragmented

    • Surveys, contacts, internal operations and employees

    • Marketing and sales are usually not the focus of feedback

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Revenue impact of service can be 20 x the cost impact l.jpg

x

x

x

X%

Satisfied

Almost all

repurchasing

35

50%

Complain

Y%

Mollified

Some not

repurchasing

153

10,000

Customers

with

problems

Z%

Dissatisfied

Many not

repurchasing

306

50% Do not

complain

Some not

repurchasing

1500

1994

Total customers at risk

Revenue Impact Of Service Can Be 20 X The Cost Impact

=

=

=

=

=

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Word of mouth impact can be estimated l.jpg

x

x

20%

delighted

Tell a few

=

600

1,000

clients

80%

satisfied

Tell one

=

800

1,400

1 Actions

30 Referrals

= 47 New clients

1400 Referrals X

Word of Mouth Impact Can be Estimated

Example Calculation of Potential Impact

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Ten myths about service l.jpg

Ten Myths About Service

1. Always exceed customer expectations

2. Answering the phone really fast is the key to success

3. People always prefer talking to people

4. The customer is always right

5. Complaints are down, things are getting better

6. Employees are the cause of most dissatisfaction

7. Price and cost cutting is the key to success

8. We’re at 90% satisfaction – let’s declare victory!

9. Measure Net Promoter and we’re done

10. We have a 100% satisfaction guarantee – everyone is happy.

This presentation is the intellectual property of TARP Worldwide and for use only to illustrate

TARP’s methodology. Use of or distribution beyond that purpose is forbidden.


Contact information for papers mentioned l.jpg

Contact Information for Papers Mentioned

  • John Goodman

  • [email protected]

  • (703) 284-9253


  • Login