1. Kathryn Saducas Partner marketing manager Are your Customers Satisfied?

2. The importance of customer satisfaction to your business

3. Customer focused organisation

4. Goals of Customer Focus: End goal of customer focused strategies is the same: Boosting retention and repurchase = more sales!!! Creating Better Products or Services Offering compelling customer experience Building deeper customer relationships

5. Business Performance Factors Contribution to Shareholder Value Source: Price Waterhouse Coopers, 2002

6. Customer Satisfaction = Profits Knowing what drives customer loyalty is important to your company’s financial health Repeat customers and new customers from referrals  continuous revenue streams Disloyal customers are expensive to replace Attracting NEW customer is 4 x cost of retaining existing customer 5% increase in customer retention  75% in aggregate lifetime profits from that customer

7. What are your customers worth? S = average revenue per customer sale C = costs of servicing customer V = expected # sales per year Y = expected # years customer will use your services A = cost of acquiring new customer N = # of referrals from customer F = correction factor Lifetime Value of Customer (CLV) = [(S-C)*(V*Y)- A+(A*N)]*F OR Margin * # sales – cost of acquisition + savings from referrals * correction factor Customer Lifetime Value = CLV

8. What are your customers worth? S = average revenue per customer per sale C = costs of servicing customer V = expected # sales per year Y = expected # years customer will use your services A = cost of acquiring new customer N = # of referrals from customer F = correction factor –S = $20,000 –C = $5,000 –V = 2 –Y = 5 –A = $1500 –N = 4 –F = 1.2 CLV = [($20000-$5000)*(2*5)- $1500+(1500*4)]*1.2 CLV = $185,400 Customer Lifetime Value = CLV

9. Why Customer Sat. is important? Study by Le Beouf: “the reasons why customers no longer dealt with a particular supplier”

10. A customer satisfaction program

11. Customer-Focused Initiatives Customer Value Attache Nokia product engineer goes on-site with customer for up to 1 month to learn about challenges and show how Nokia can add value Customer Champion Create a customer champion Director who is responsible for championing the voice of the customer through the organisation. Customer Success Engineer Team Centralised group that diagnoses root causes of complex customer problems and implements solutions across business Everyday Life Observation To gain deeper understanding of customer, send video crews & TV cameras into 80 households around world to capture customer daily routines Customer Charter & Advocate Independent customer advocate whose role is to resolve particularly difficult customer and business problems. Customer charter to improve customer experience with service. Customer Partner Experience Organisation-wide customer and partner satisfaction index to provide a holistic view of business health and trigger specific corrective actions where necessary.

12. The 6 Ps of Marketing

13. Customer Feedback Program With a well constructed feedback program you can get key insights into customers to: –Identify key drivers of customer experience –Glean insights into health of your company –Detect early warnings of any erosion of your relationship or value proposition

14. Customer Program Activities 1.Assess internal root cause for customer perceptions – satisfaction drivers 2.Derive action plans to resolve most critical issues – set your objectives 3.Implement these actions 4.Track your progress with ongoing customer research 5.Link these customer metrics to your financial results & staff incentives 6.Tell your customers how you used their feedback 2 1 3 4 5 6

15. Case Studies Rice University Case Study showed customer satisfaction improves customer retention and company profits Methodology: –50% surveyed (group 1) and 50% not surveyed (group 2) –Group 1 were twice as loyal to company Conclusion? –Customers want to be coddled –Surveys  increase in auxiliary product sales –Surveys create opinions

16. At Microsoft Worldwide Survey Apr & Oct Customer Escalation Tool RMTP – Response Management Through Partner Feedback forms at events (9 point scale) Tactical Research – Qualitative & Quantitative Anecdotal feedback Roundtable sessions

17. Understand Satisfaction Drivers CustomerSatisfaction Access to products & Services Emotional Factor ServiceQuality Price ProductQuality

18. Value Mapping lowhigh satisfaction value support product reputation Sales staff Brand service Easy to do bus with Bus expertise

19. Example of Value Mapping Service Deployment Time [30%] Reputation and customer testimonials [25%] Account Managers/ Sales experience [15%] After Sales Support [10%] Business Process [10%] Market/Branding [5%] Innovation [3%] Strategic Direction [2%] lowhigh satisfaction 1 2 3 4 5 6 7 8 9

20. Avoiding the Pitfalls Listening to the wrong customers Incorrectly identifying customer priorities Failing to consider strategic objectives Failing to align organisation around execution Failing to ‘get paid’ by customers for new value Losing momentum – “campaign mentality”

21. Case Study – GAP Clothing

22. Ways to measure customer satisfaction

23. Annual Customer Satisfaction Surveys Focus Groups (Formal/ informal) Online Questionnaires Phone or Fax Surveys Feedback Forms Online Polls Customer Service Feedback CRM Software Other Surveys (Benchmarking, Employee, Org Alignment) Different forms of measurement

24. Partner Program - CSAT Tool http://www.microsoft.com/partner/media/csat/

26. Microsoft CSAT – Points Awarded Participation Individual Customer Responses Points 10-245 25-4910 50-9915 100+20 Net Satisfaction (20+ responses required) NSAT Score Points 165-174 10 175-184 15 185-200 20 Partners may only survey the same individual once every six months. Only the first eight individual responses per customer organisation are eligible toward Partner Points calculations.

27. Measurement & Reporting “Satisfaction” can be measured on a scale Align business functions around a single customer-focused metric NSAT = (VSAT- DSAT) +100 VSAT = 8+9 DAST = 1 to 4

28. Food for Thought The name of the game should be about "giving customers a memory and experience so great that they'll want to repeat it." The game is not all about getting that score—that darned customer score—any way possible.

29. 10 Golden Rules 1.Believe customers possess good ideas 2.Gather customer feedback at every opportunity 3.Focus on continual improvement – start with top 10 issues bugging your customers 4.Solicit good and bad feedback 5.Seek real time feedback 6.Don’t spend vast sums of money 7.Make it easy for customers to provide feedback 8.Leverage technology to aid efforts 9.Share feedback throughout the company 10.Use feedback to make quick changes 1 2 3 4 5 6 7 8 9 10

30. In Summary “You can’t move a mountain in a day, but you can make it easier to climb by clearing a path.”

31. Information Source: “Why track end to end customer experience?” TNS Prognostics White paper “Driving Customer-Focused Decision Making” – Marketing Leadership Council USA www.Marketingprofs.com