© BQF 2013 Excellence for Customers Joe Goasdoué Chief Executive British Quality Foundation (BQF)

2© BQF 2013 The BQF Independent not for profit Corporate membership Business excellence, best practice, research, training

3© BQF 2013 How to achieve and sustain outstanding levels of performance Insights into contemporary business excellence practices to further develop understanding of what it looks and feels like and how it benefits business

4© BQF 2013 Research themes Adding Value for Customers Leading with Vision, Inspiration and Integrity Succeeding Through the Talent of People Managing Processes with Agility

5© BQF 2013 Adding Value for Customers topics Customer Experience Customer Effort Customer Engagement

6© BQF 2013 Case studies B2CBoots O2 B2BRicoh UK Products Siemens Industry Automation and Drive Technologies

7© BQF 2013 Customer Experience highlights Whole experience Manage and measure as a succession of contacts Process methodologies and mapping Integrated systems to gather feedback

8© BQF 2013 Customer Experience highlights Rethinking the way everything is done Managing integrated cross-functional delivery B2B companies increasingly provide service ‘solutions’

9© BQF 2013 Customer Experience highlights Solutions must put customer value first May mean avoiding short term value maximisation And even guiding customers away from your offer

10© BQF 2013 Head of Customer Care, Boots “If you want to be the best, you have to compete with whoever’s out there, whether they are on the high street or online. I want to know what’s going on at Amazon. If they are doing better than us, I want to know what it is and what we can learn.”

11© BQF 2013 Chief Financial Officer, O2 “The key difference between O2’s finance function and other businesses is that we use an awful lot of customer insight. It’s not just about revenue but about understanding customers’ behaviour and what they do to drive that revenue.”

12© BQF 2013 Marketing Director, O2 “You cannot work out the return on every marketing dollar. Marketing engagement is cheaper than having to drop prices to keep customers and avoids the need to compete only on price, commoditising the offer.”

13© BQF 2013 Marketing Director, O2 “O2 customers get their tickets 48 hours before everyone else. That is what is valuable to us, not having our name above the door. It is more about differentiating between O2 and the competition and about investing in a few key areas that can bring a disproportionate return.”

14© BQF 2013 Customer Effort highlights Physical, mental and financial resources expended Excellent core value easily destroyed Difficult processes a key disloyalty cause

15© BQF 2013 Customer Effort highlights More information reduces effort Customer Effort Score (CES) better than Net Promoter Score (NPS)? “Stop Trying to Delight Your Customers”, HBR July 2010

16© BQF 2013 Boots UK Maximum accessibility to the brand, making shopping faster and cheaper while providing more choice, are vital Customers want to shop more conveniently and are becoming more price-sensitive, e.g. making price comparisons online

17© BQF 2013 O2 Special team taking calls is focused on making it easy for the customer and getting the right outcome for them Ignore all normal processes and record what they had to do to get it right Also measuring whether the customer got the right outcome on the first approach

18© BQF 2013 Customer Engagement highlights Numerous factors impact on the relationship Senior team responsibility for customer wellbeing Excellent companies use positive experiences to engage customers both rationally and emotionally

19© BQF 2013 Customer Engagement highlights The highly interactive nature of business today has enabled some companies to become more engaged with customers Engaged customers provide insights into new product and service development Employee engagement

20© BQF 2013 Marketing Director, O2 “We talk about fandom, not the Net Promoter Score. Highest engagement is a fan who ultimately forgives you when you mess up.”

21© BQF 2013 Director of Customer Care, Boots “You learn more from talking to customers than from any amount of data. Store leaders…..standing at the front of the shop and watching where customers pick up a basket and how they interact with colleagues.” General Manager, Boots Arndale Centre store “Observation is key. I watch.”

22© BQF 2013 Boots UK Customer engagement facilitated by focus on customer wellbeing, an emotive subject Director of Customer Care, Boots “We are a brand based on ‘wellness’. Wellness because customers are sick or wellness because they want to feel happier: women shop for cosmetics because they want to feel happier. You learn more from talking to those customers than you do from any amount of data.”

23© BQF 2013 Marketing Director, O2 “We talk about ‘functional’ and ‘emotional’ engagement. Engagement at the most functional level is tracked by churn. In terms of maximising retention, the third imperative after satisfaction and loyalty is emotional commitment.”

24© BQF 2013

25© BQF 2013 Siemens Executive engagement with the customer critical to supporting the sales team and generating business

26© BQF 2013 Summary No quick fix to achieving excellence for the customer Customer expectations continue to rise rapidly as technology develops ‘exponentially’ The survivors will be the most dynamic, flexible and agile in responding to their customers’ needs

27© BQF 2013 Excellence for the customer Involves developing a strategic view of how an organisation’s Leadership team leads and manages its People ….. So as to keep them engaged and empowered to make Processes more agile ….. So that it is flexible and dynamic in its approach to adding value for the Customer

28© BQF 2013 Excellence for the customer Uncompromising consistency Total executive team commitment to the customer Ability to really understand what excellence means for people, processes and culture Energy and passion

29© BQF 2013 “You have to relentlessly keep trying to get better. You also have to understand what getting better looks like. In sport, there is no hiding place. If you are not good enough, you will be beaten. You need to bring that level of clarity to business. The challenge is having the energy and the passion.” Juergen Maier: MD, Siemens IA&DT

© BQF 2013 The community for every business seeking excellent insights, tools and experiences to improve itself bqf.org.uk/research