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58th ICCA Congress | Customer Excellence as key brand differentiator for destinations – how to measure it?
The document discusses the importance of customer experience (CX) as a key brand differentiator for businesses, emphasizing that a focus on customer-centric strategies leads to better loyalty and financial performance. It highlights the need for effective feedback systems to close the gap between perceived and actual service quality, and outlines best practices for successful CX programs, including the clarification of objectives and ongoing optimization. Ultimately, the document underscores the critical role of understanding customer journeys and implementing improvements to enhance overall satisfaction.
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58th ICCA Congress | Customer Excellence as key brand differentiator for destinations – how to measure it?
- 1. International Congress andConvention Association #ICCAWorld#HoustonLaunch Session Sponsor
- 2. Provide your sessionfeedback via the ICCA Meetings App and help us to shape next year’s education programme! Join the online conversation with the #ICCAWorld #HoustonLaunch International Congress and Convention Association #ICCAWorld#HoustonLaunch
- 3. International Congress andConvention Association #ICCAWorld#HoustonLaunch Customer Excellence as key brand differentiator for destinations – how to measure it?
- 4. International Congress andConvention Association #ICCAWorld#HoustonLaunch Client centricity
- 5. The Age OfThe Customer Assembly lines Supply chains Automation Engagement Source: Forrester 2015 • Apple • Trip Advisor • USAA • Amazon • IBM • Microsoft • Google • Comcast • Ford • Boeing • GE • Siemens
- 6. Customer Focused StrategiesPay Off “If there’s one reason we have done better than our peers in the internet space over the last six years, it is because we have focused like a laser on customer experience, and that really does matter, I think, in any business.” Jeff Bezos
- 7. Keeping Loyal ClientsIs Increasingly Difficult
- 8. From Product CentricTo Experience Centric “By 2020, customer experience will overtake price and product as the key brand differentiator.” Source: Walker
- 9.
- 10. Customer Experience Matters Source:Forrester 2018 / Temkin Group 2018 5x revenue growth of CX leaders vs. laggards 86% of buyers will pay more for a better customer experience +17% customer loyalty
- 11. Customer Experience BuildsAdvocacy Source: Forrester 2018 / Temkin Group 2018 “Customers with positive experience recommend companies to an average of three people out of their friends, families and colleagues.” “However, negative experiences are shared with up to 10 people.” “Customers with positive experience have a 7x higher willingness to forgive failures.“
- 12. A Bad ExperienceCan Be Very Costly Source: Temkin Group 2018 / McKinsey 15-20% lower cost of service at companies that focus on customer journey optimization
- 13. International Congress andConvention Association #ICCAWorld#HoustonLaunch Collecting Client Feedback
- 14. The Delivery Gap Source:Bain / Satmetrix 2010 80 : 8 80 percent of companies believe that they offer an outstanding range of products and services Eight percent of the clients of these companies agree to this
- 15. Collecting Client Feedbackto Close the Delivery Gap “Do you walk in your customer’s shoes?”
- 16. ICCA 58th ICCA Congress 27– 30 October 2019
- 17. Feedback: Simple &Holistic Online At the contact / event Mobile In the moment Email Social Make it easy for your customers to give feedback, wherever they interact with you!
- 18. Feedback: Proactivity IsKing Standard experience Asked for feedback 8% 68% Source: Review Trackers Negative experience 34% 10% 50% 100% Great experience 22%
- 19. Feedback: Quantity versusQuality More data = better insights?
- 20. Creating an OptimalFeedback System Architecture Understanding all key elements that build relationship and service experience – basis for strategic focus Focus on identifying & understanding client segments or individual (big) clients and their needs (account management) Understanding the performance of an end-to-end customer journey – basis for operational improvement Focus on most important customer journeys (e.g. for destinations – site inspection, congress organisation, incentive planning, etc.) Key moments of truth or touchpoints that are in the focus of actual improvement efforts (e.g. call centre/ reservation system/ web site) Combined system and coaching approaches to achieve immediate improvements. Tracking of success Strategic relationships Customer journeys Individual touchpoints Alignment yearly per organization continuously per journey / event / project continuously per touchpoint
- 21. International Congress andConvention Association #ICCAWorld#HoustonLaunch CX Programs That Deliver Insights
- 22. Customer Experience Program‘sPerformance Source: Oracle 2018 / Frankfurt University of Applied Sciences 2017 Only 32% of CX professionals feel they have access to the information they really need to understand customers’ needs and previous interactions and can apply it to improve their experience. Only 1/2 of companies in Germany are satisfied with their current customer satisfaction survey. “What are your experiences with CX programs?”
- 23. ICCA 58th ICCA Congress 27– 30 October 2019
- 24. Key Pillars OfA Successful Customer Experience Program Clarification of strategic rationale and key objectives Definition of senior management sponsor Specification of business needs and prioritisation Keep it simple and pragmatic Role specific information and workflows Ease of access (data & insights) Ongoing audits of system modules and their usage Adaptation of approach to new business needs 2. Top management and stakeholder buy-in 3. Optimal system architecture 4. Active and committed employees 5. Ongoing optimisation of system to secure impact Take an inventory of current feedback programs Check both, tools and processes 1. Audit
- 25. Project Steps ofa Strategic Customer Experience Program Survey Design Implement Learnings Analysis & Reporting Survey Execution Questionnaire Development
- 26. What is theRight KPI? It matters less which top-line metric a business relies upon. More important is how the business inserts the metric into a systematic feedback program
- 27. Questionnaire Structure Brand & Communication Performance Evaluationof overall satisfaction and dedicated performance aspects Perception and evaluation of portfolio and brand communication Audiences Capturing needs, preferences, information channels Strategic Experience Surveys Duration approx. 10-12 minutes Objective Detailed and dedicated evaluation of overall relationship Overall Experience General experience and satisfaction Process & Phases Assessment of main aspects / phases of the journey / event Operational Satisfaction Surveys Duration approx. 3-5 minutes Objective Journey / Service / Event Experience & Assessment
- 28. The Right Sample “Yourmost dissatisfied customers are the ones from whom you can learn the most” Bill Gates
- 29. Putting Experience inContext
- 30. The Global EngagementIndex Global Engagement Index 2016 / 2018 In total more than 11,000 Interviews in about 150 countries American Engagement Index 2017 More than 4,000 Interviews in the USA A total of 23 different associations participated in the Engagement Index Different segments: Engineering, ICT, Healthcare, Professional Services Professional associations and trade associations THE BENCHMARK SURVEY FOR ASSOCIATIONS
- 31. GEI - Benchmarkfor the Industry
- 32. From Measurement toManagement Avoid: “Good Research, Poor Actionability” Communication of Results Root Cause Analysis Implementation of Change Development of Measures Monitor
- 33. Customer Excellence Broughtto the Point “Whatever you do, do it well. Do it so well that when people see you do it, they will want to come back and see you do it again, and they will want to bring others and show them how well you do what you do.” Walt Disney
- 34. International Congress andConvention Association #ICCAWorld#HoustonLaunch Thank you!
Editor's Notes
- #2 Slide to use for introduction of panelists or subtopics
- #3 Please leave in PPT – will be shown while delegates walk in
- #4 Session title slide
- #5 Slide to use for introduction of panelists or subtopics
- #6 Introduction Ok, why is client centricity so important? Because we live in the age of the customer! In the first half of the last century the largest companies were those that could produce most in good quality, while in the second half of the century those companies suceeded that organized their supply chanis best and made use of the globalisation. In the nineties and at the turn of the millenium we entered the age of information and the tech giants dominated the scene. But even though we're about to enter the fourth industrial revolution, it’s not the companies with the best products that are leading the game but those that are most customer centric.
- #7 I think we can really say, that customer focus pays off for some companies.
- #8 But customer focus isn’t that easy these days: Clients have vastly more choice Convergence of customer experiences: it’s harder to differentiate products and services People power through new media, advocacy and loss of reputation Social media accelerates the reach and the speed of discussion Client’s rising expectations and constantly changing preferences and needs
- #9 And within that context – organizations need to shift from developping and marketing just products for the market to designing the experience for their customers. So don‘t focus on promoting „we have so many 5-star hotels or we offer that many exhibition space in our destination“. Others might have it too, at least in near future. Because products are imitable, an excellent customer experience however, cannot easily be replicated by competitors. Or do you really think iPhones are better than the top smartphones of other brands? Not really. Bu there is a difference that Apples has figured out earlier than all others:
- #11 Do you have shares from Apple? Or Amazon? If you compare their value with two years ago or even 5 years, I think you made a great deal. But a great customer experience not only increases the value of the company, it also means a real competitive advantage. As we can see from some figures here.
- #12 Great customer experience is also a good marketing strategy as it builds advocacy. It also makes your life easier. But attention: negative experiences are always shared with more people than positive ones
- #13 A bad experience can be really costly. It's just more likely to lose a customer forever. But it‘s not only the risk of loosing a client. Bad experiences need to be managed and involve high process costs. Companies with a hgh customer excellence have therefore lower costs of servicing th ecustomers.
- #14 Ok, let’s now have a look on why customer feedback is so important for client centricity and how to collect that feedback
- #15 In any business hundreds of decisions are made every day. But how many of those decisions include the customer’s point of view? In this context, Bain and Satmetrics have detected a phenomenon they called delivery gap. Does anyone know what the delivery gap is? It’s the mismatch between the internal and the external perspective.
- #16 And how to close that gap? It is only possible by collecting client feedback, by talking to your clients. Can you describe a day in the life of your customers? Do you know how they takes decisisons? Do you know their preferences? Do you know what keeps them up at night? SLI.do Survey
- #18 There are many places you can gather explicit and implicit feedback from customers. Each interaction is an opportunity to learn and improve. But it‘s not just about feedback through surveys – enabling customers to give feedback easily, anywhere is key. Whether they are giving you a satisfaction rating, a review or just texting you about their experience – you‘ve got to make it easy to connect.
- #19 But who is giving feedback? There has been an interesting study recently on feedback behaviour in North America and Europe with regards to a number of product and service categories that revealed following: 1/3 of all persons that had a negative experience provided a feedback on their experience while only 1/5 of those that had a great experience shared their feedback on their own initiative. That value decreases to less than 10% for those that had just a normal experience. Not much for that group of people that typically is the majority in the customer base. But the study also showed, that 68% would have given feedback if they had been asked to do so. So very important, you need to be proactive if you would like to get the voice of your customers.
- #20 But does the constant availability of customer feedback really make companies smarter and their customers actually more satisfied? Not automatically. The idea that a company gets smarter when it gets more information from its customers is an expensive illusion. Often the opposite happens, when the amount of information obscures the view of the essentials. It is a matter of setting up systems that are limited to collecting the essential information and are cleverly integrated into the company organization – all without burdening your customers. Focus on one comprehensive listening architecture to ensure: Relevant insights From the right clients At the right time Using the most effective method
- #21 But how does an optimal feedback system architecture looks like? Typically, there are three levels of customer feedback programs with different objective, content, modules and workflow design To design the optimal customer experience, we must first - on a broad, strategic level – identify what truly matters to your customers. This information will lay the groundwork for you to develop a customer strategy that is a prerequisite for strong customer relationships and profitable growth. Once we have the big picture, we will then move on to the processes that matter to your customers. We must find out precisely how your customers interact with your company, the journey they go through, the touchpoints they face, and how they like what they find there. With that knowledge, we can work on optimising your touchpoints and services.
- #22 Slide to use for introduction of panelists or subtopics
- #23 Many companies find it difficult to measure customer experience and loyalty and analyze customer relationships correctly. Although client focus and customer centricity are one of the main pillars of many corporate strategies ... ... a systematic approach to customer satisfaction analyses is often lacking: Strong focus on just measurement of KPIs Lack of action orientation and implementation of results Lack of resources and low relevance of programs in the overall organization
- #25 Designing an effective VOC strategy involves evaluating existing sources of customer intelligence, determining the additional sources which are needed, infusing the necessary analysis to interpret customer insights, and determining the right approach to make customer intelligence available for day-to-day decision making.
- #26 And how does it look at operational level?
- #27 It matters less which top-line metric a business relies upon; almost any will do, and some companies construct metrics of their own design. More important is how the business inserts the metric into a systematic capability to collect, analyze, and act on feedback in an effective and complete system for measurement of the customer journey.
- #30 “Learn from the peers and the best: Benchmark against competitors and leaders to put your results in context” Our perceptions and attitudes are subject to the context in which they appear. This picture is well known – it seems that the blue circle on the right hand side of this chart is bigger than the one on the left. It shows very convincingly how our brain always automatically puts information in context. Many companies suffer from myopia in measuring customer experience. Companies often hyperfocus on their own performance and small pain points, and they do not spend enough time looking at how they stack up against others—not only their nearest competitors but also companies that are best in class in customer experience within and outside their sector. Such an exercise is powerful in triggering bigger and bolder ideas to improve customer service and experience.