art - acknowledgement, respect & trust

CopyrightCopyright©©CIBCCIBC

Breakaway Service Breakaway Service PerformancePerformance

John McKean, Paul KellJohn McKean, Paul KellCenter for Information Based CompetitionCenter for Information Based Competition

www.informationmasters.comwww.informationmasters.comjohnsmckean@[email protected]

1-937-427-88751-937-427-8875




Customers Don’t Want Relationships…

never have, never will…

Customers Don’t Want Relationships…

never have, never will…Voted – BEST SESSION at Largest Banking Conference in

the World“This guy must have felt like Gandhi at a Soldier of Fortune rally. But he

was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week”

Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One)

Voted – BEST SESSION at Largest Banking Conference in the World

“This guy must have felt like Gandhi at a Soldier of Fortune rally. But he was factual, he was blunt, and he hit it right on the screws, as we say on the golf course. For my money, the best presentation of the week”

Compared with 54 presentations plus keynotes from Richard Branson (Virgin), Lou Gerstner (ex-IBM CEO), Jamie Dimon (CEO Bank One)


Customer Service BasicsCustomer Service BasicsDon’t want Relationships, but consistent human

treatment…“Give me the best product, at the right price (not

cheapest) and treat me like a human being in the process of selling and servicing that product”

Don’t want Relationships, but consistent human treatment…

“Give me the best product, at the right price (not cheapest) and treat me like a human being in the process of selling and servicing that product”

http://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=macrochrome_home

What Customers remember What Customers remember

Product/PriceProduct/Price 30%30%

Sales/MarketingSales/Marketing 15%15%

Repair/ServiceRepair/Service 30%30%

Initiation/InstallationInitiation/Installation 10%10%

BillingBilling 15%15%

100%100%

70%70%

What they remember…What they remember…

……determined by determined by treatment during treatment during

interinteractionsactions

……from from product/priceproduct/price

30%30%

1.1. Customers remember interactionsCustomers remember interactions2.2. Specifically, how “human” they were…Specifically, how “human” they were…


Bell Labs Scientists’ study of Bell Labs Scientists’ study of 300,000 customers300,000 customers

What they remember What they remember Resolving ProblemsResolving Problems Excellent RatingExcellent Rating

Average excellence ratingsAverage excellence ratings 51%51%

Fix within 2 hoursFix within 2 hours 81%81%

Takes longer than 2 hoursTakes longer than 2 hours 74%74%

Takes longer than a dayTakes longer than a day 46%46%

Fix within two hours, tell afterFix within two hours, tell after 84%84%

Fix within two hours, tell duringFix within two hours, tell during 90%90%

AT&T/Bell Labs


It’s not what “Westpac does”, but how It’s not what “Westpac does”, but how what Westpac does… makes them feelwhat Westpac does… makes them feel

Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly

Top sales people don’t sell better, they treat better…

Few companies explicitly address “high order” human touch experience elements as a consistent, company-wide science rather than intuitive art practiced randomly

Top sales people don’t sell better, they treat better…

The Human Interaction Factor

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Resources applied to"Humanness" of Interaction

Buying Influence of "Humanness"of Interaction

The Human Interaction Factor

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Resources applied to"Humanness" of Interaction

Buying Influence of "Humanness"of Interaction


Human Touch as a ScienceHuman Touch as a Science


1.1. Behavioral - Identify Buying Emotions that most Behavioral - Identify Buying Emotions that most influence decision to choose one company over influence decision to choose one company over anotheranother

AAcknowledgement, cknowledgement, RRespect & espect & TTrust (ART)rust (ART)2.2. Operational – 4 High Order Human Touch SciencesOperational – 4 High Order Human Touch Sciences

a)a) Communicate more humanlyCommunicate more humanlyb)b) Execute as definable processExecute as definable processc)c) Consistency across business functionsConsistency across business functionsd)d) Technology that humanizes, not dehumanizesTechnology that humanizes, not dehumanizes

1.1. Behavioral - Identify Buying Emotions that most Behavioral - Identify Buying Emotions that most influence decision to choose one company over influence decision to choose one company over anotheranother

AAcknowledgement, cknowledgement, RRespect & espect & TTrust (ART)rust (ART)2.2. Operational – 4 High Order Human Touch SciencesOperational – 4 High Order Human Touch Sciences

a)a) Communicate more humanlyCommunicate more humanlyb)b) Execute as definable processExecute as definable processc)c) Consistency across business functionsConsistency across business functionsd)d) Technology that humanizes, not dehumanizesTechnology that humanizes, not dehumanizes

High-Order HT CommunicationsHigh-Order HT CommunicationsHigh-Order HT CommunicationsHigh-Order HT Communications

7 Steps of Customer Service

(start & end is human, middle is business)

1. Thank you – recognize their effort & concern

2. Sorry - acknowledge emotion is valid

3. Listen carefully – collect/clarify facts

4. Fix problem now or come to agreement

5. Ask for suggestions – engage in solution

6. Administrative - log complaint & reimburse

7. Follow-up – ensure closure

7 Steps of Customer Service

(start & end is human, middle is business)

1. Thank you – recognize their effort & concern

2. Sorry - acknowledge emotion is valid

3. Listen carefully – collect/clarify facts

4. Fix problem now or come to agreement

5. Ask for suggestions – engage in solution

6. Administrative - log complaint & reimburse

7. Follow-up – ensure closureCopyrightCopyright

©©CIBCCIBC

Wendy EggletonWendy Eggleton

High-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT Processes

Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint

1. Room service was slow

2. Room service deliverers had long waits for elevators

3. Houseman who supplied Maids w/linen tied up elevators

4. Linen shortage required them to steal from other floors

5. Initial hotel budget created linen shortage (2 years ago)

6. Decision to cut linens by Founder and CEO

7. Solution – ordered one more “parr” of linens

Customers felt Ritz-Carlton didn’t care because of slow room service orders - #1 customer service complaint

1. Room service was slow

2. Room service deliverers had long waits for elevators

3. Houseman who supplied Maids w/linen tied up elevators

4. Linen shortage required them to steal from other floors

5. Initial hotel budget created linen shortage (2 years ago)

6. Decision to cut linens by Founder and CEO

7. Solution – ordered one more “parr” of linensCopyrightCopyright

©©CIBCCIBC

Horst SchultzeHorst Schultze

Human Touch and the Bottom line

By studying human interactions as a process…

• If fulfilled guests went from 92% to 97% over 2 years

– 4 million room nights a year

– If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy

– +8% occupancy rate = $300 mil. in additional profit

– $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction

Human Touch and the Bottom line

By studying human interactions as a process…

• If fulfilled guests went from 92% to 97% over 2 years

– 4 million room nights a year

– If 5% previously dissatisfied guests (200,000) did not leave the hotel unfulfilled and didn’t tell others of dissatisfaction = 8% additional occupancy

– +8% occupancy rate = $300 mil. in additional profit

– $300 mil. could never be achieved by cost-cutting w/o significantly affecting customer satisfaction

High-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT ProcessesHigh-Order HT Processes


High-Order HT TechnologyHigh-Order HT TechnologyHigh-Order HT TechnologyHigh-Order HT TechnologyFatal Technology Assumptions• We’ll “save money” by pushing customers to

technology channels and lose nothing• A single view of the customer is not critical• Asking for personal info before trust is OK• Design w/o considering emotional content• Expecting they'll tolerate a few “bugs”• Design for our efficiency, convenience, and control

and they won’t lose theirs• Design for task execution alone, not to enable more

human interactions

Fatal Technology Assumptions• We’ll “save money” by pushing customers to

technology channels and lose nothing• A single view of the customer is not critical• Asking for personal info before trust is OK• Design w/o considering emotional content• Expecting they'll tolerate a few “bugs”• Design for our efficiency, convenience, and control

and they won’t lose theirs• Design for task execution alone, not to enable more

human interactions


The Employee Connection“Treat employees as you would have

them treat customers”

The Employee Connection“Treat employees as you would have

them treat customers”


Humanizing Humanizing BehaviorBehavior

LeadershipLeadership

Dehumanizing Dehumanizing BehaviorBehavior

Humanizing Humanizing BehaviorBehavior

EmployeesEmployees

Dehumanizing Dehumanizing BehaviorBehavior

Profitable Profitable BehaviorBehavior

CustomersCustomers

Unprofitable Unprofitable BehaviorBehavior

80% How they treat /

how they are treated

70% how they treat/

“Decision to Buy”

Treatment-Chain EconomicsTreatment-Chain Economics

Based on 50,000 Employees, 6 business units, over 2-3 yearsBased on 50,000 Employees, 6 business units, over 2-3 yearsQuarter lag on stock priceQuarter lag on stock price

Employee = Customer = Shareholder Fulfillment

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art - acknowledgement, respect & trust

Leadership & Management