Through my years here in Holland I have met a few individuals on occasion as enthusiastic as myself; however, they all shared one similarity.  They didn’t believe there was a way to turn their dream into reality.  I was beginning to wonder if anyone here had read the book  ’Dromen, durven, doen’….?

Then one fall day in November 2010 I met a man, a man with a dream, and for the first time in many years I could see by the determination in his eyes that this man was determined to turn his dream into reality. This was the day I met Roy Scheerder (Vice President Marketing KLM Netherlands), a man with a dream and a desire to pursue it. KLM Netherlands and Accenture had been working together for many years and had shared many successes together as a result of a trusted partnership.  This long term relationship was a core reason why Roy Scheerder turned to Accenture to help him with his new challenge: turning his dream into a reality.

On February 9th Roy will be presenting his story of how KLM Customer Care Netherlands transitioned from a re-active to a pro-active customer service team.  A team that works together to deliver exceptional service to its’ customers, a team that works fact based and with predictive models to ensure they can adapt to unforeseen changes in volumes: a team that maximizes the effectiveness of the daily execution through clear communication and strong leadership.

“It’s about changing a non-critical process into a value-adding service for customer and commerce.“

– Roy Scheerder

Don’t miss this opportunity to hear Roy share his dream, and how together with his team, they found the passion and drive to turn the dream into reality.  Register today for the Accenture High Performance Marketing Conference:  http://www.accenture.com/Microsites/hpmc/Pages/index.aspx

According to Accenture’s comprehensive research over 1,000 executives in 12 countries, most companies are still hesitant to believe in a full-scale recovery and operate in a position of strength from a cash standpoint. The research provided us various key findings including that price optimization is one of the three most important strategic priorities in the past 18 months for seven in 10 companies:

• Most companies are planning for growth, but that growth is likely to be modest.
• When seeking to drive competitive advantage and boosting revenue, companies use three of the most popularly levers for driving competitive advantage: service, innovation and pricing. Price optimization was one of the three most important strategic priorities in the past 18 months for seven in 10 companies in our survey.
• When it comes to pricing, companies tend to most frequently use actions by competitors and the balance between supply and demand as inputs in setting price. Comparatively fewer consider value-based and cost-plus strategies.
• Companies face a wide range of challenges in optimizing pricing, including sales execution, inadequate pricing analytics, unclear pricing strategy, inadequate decision support/analytics, and governance and accountability incentives.
• In most companies, cost-reduction efforts are viewed as having been a qualified success. Despite the success of companies in reducing costs, the focus on cost likely will continue in the foreseeable future. In the past 18 months, 82 percent of executives globally said their company has undertaken a significant effort to reduce costs, and these efforts were seen as largely effective in creating sustained cost reduction by the vast majority of executives.
• Companies believe there are still opportunities to capture in cost reduction and, thus, more cost cutting is planned for the next six months; with strategic sourcing and enterprise rationalization being the most popular cost management actions).

There’s no question that price is a leading competitive lever, but raising prices in the current environment will not boost sales, nor will dropping prices improve margins. Similarly, reducing costs eventually can have a deleterious effect on a company’s ability to support growth initiatives. As growth comes back onto the agenda, a more integrated approach that balances cost and price according to market segment is needed in the quest for high performance. Companies that are best positioned to capitalize on the growth opportunities today are those that use insights from the demand side to drive appropriate cost reduction efforts on the supply side. These enterprises will be the ones setting the agenda for competitive differentiation, profitable growth and, ultimately, high performance in a volatile world.

Despite the differences in products and customer interaction frequency, banks can certainly draw inspiration from what is happening in retail. According to the survey of 78 senior executives, many leading banks are adopting retail techniques to grow revenues and increase cross-selling.

Research conducted by Efma (commissioned by Accenture and UniCredit) reveals that banks have made substantial progress by implementing proven retail strategies. Four out of five respondents thinks that retail techniques for customer analytics and behavioral segmentation are essential for future competitiveness. 41% responded that at least one retail program has already been implemented or plans to do this within one year. Moreover, a significant number of respondents said that their bank has already begun initiatives similar to those of:

• Best Buy (56%)
• Giorgio Armani (47%)
• Prenatal (38%)

Best Buy has a customer segmentation initiative that helps to determine existing and potential customer profitability. All customers are divided into segments for targeted marketing and promotions. Giorgio Armani is working with in-store and online branding programs for Y-generation clients, popular celebrities, social networking and entertainment. The in Italy based Prenatal (retailer of baby products and maternity wear) offers free in-store and online customer education services.

Respondents judged 16 successful customer initiatives from outside the banking sector on applicability and potential to increase revenues and cross-selling. Initiatives rated highest were:

• Amazon’s point-of-sale product recommendations, consisting of “often simultaneously purchased” products based on buying patterns and correlations within the shop.
• Best Buy’s strategy for customer segmentation.
• Analytics based on Apple’s iTunes “Genius” tool, which recommended new content based on individual purchase history and entertainment library.

Respondents also give high ratings to Prenatal’s free educational services and BMW’s Configurator tool for creating your own BMW.

We expect a shake-out in the banking sector, driven by a sophisticated use of marketing and analytics. New service models, with greater focus on digital channels, are already being implemented to reach out to today’s less loyal customers. Although not all techniques will be equally meaningful to the European banks, many can be valuable in the battle for customer loyalty. With a selective approach and the right investments, banks will be better equipped to differentiate their offerings to achieve higher growth and profitability.

Banks that learn selectively and quickly from the successes of top retailers have a good chance to outperform the competition. Compared to retail, banks have a lot of customer information, but are currently not using this to its fullest potential. Those able to transform this data into usable information and linking this to the right retail strategies will have an absolute advantage. Using this wealth of customer information would enable banks to service customers more effectively. Although there are many barriers regarding confidential information, overcoming these barriers will prove essential for survival.

Which successful retail strategy do you think will grow revenues and increase cross-selling in today’s Banking?

1. Customer service expectations are rising!

Globally, 40% of consumers stated their customer service expectations had risen as compared to one year ago.  This figure dropped to 19% for the Dutch sub-set of consumers.  Why so much less in the Netherlands…?

2. Dutch consumers are the least satisfied with the most important service characteristics!

From eleven pre-specified service characteristics, Dutch consumers gave the following three (in order of priority) the highest score in importance: ‘having employees who are knowledgeable and informed’, ‘having customer service employees who know my history so I do not have to repeat myself’, and 3^rd place was ‘the amount of time I have to wait to be served’.  After scoring the characteristics to determine which were the most important consumers then were then asked to rate how satisfied they are with the current delivery of these characteristics from Dutch service providers.  On a scale of 1-5 (5 being highly satisfied) the scores are shockingly low;

• having employees who are knowledgeable and informed scored 2.74
• having customer service employees who know my history so I do not have to repeat myself scored 2.42
• the amount of time I have to wait to be served scored 2.44

So the service characteristics that are the most important to Dutch consumers are also those characteristics that consumers are least satisfied with.  Odd, don’t you think?  Are Dutch consumers not communicating to service providers what is important to them…? Or are service providers just not listening…?

3. The Dutch are not switching service providers, why not?

Considering the lack of satisfaction for the most important service characteristics you would think customers would be switching …or at least searching for another organization that does it better.  This was perhaps the most interesting aspects of the survey results.  Globally, 64% of consumers have switched service providers in the last year due to poor customer service.  Quite a clear message; however, only 13% of Dutch consumers switched in the last year.  Considering that it has been established that Dutch consumers are not satisfied with the level of service they are receiving; they are surprisingly not switching.  Why are they so loyal…?  We asked the question again, but then with the following nuance; ‘did you not switch as there was no better alternative available in the market’?  The results were still surprising low, a total of 10% of Dutch consumers considering switching in the last year but did not switch as there was no better alternative available in the marketplace.  So not only are Dutch consumers not switching; they are also not really even considering it!!

4. When not happy with the service agent Dutch consumers are the most likely to hang up and call back another time!

For anyone with a call center background your hair is likely standing up when you read this as the euro signs float by your eyes.  Yes, they hang up and call back again…that is as expensive as it sounds. Globally 22% of consumers are likely to hang up and call back again, among the Dutch consumers this rose to 26%.  Imagine a quarter of your contacts are repeat contacts…?  And that is not all they do, among Dutch consumers 14% will submit a formal complaint (globally 16%).  So, not only is it generating 26% repeat contacts but it is also generating 14% of the incoming complaints – yikes!

5. Usage of social media sites; the Dutch consumers are not that far behind!

In the past year I have heard many statements from Dutch organizations like ‘social media is just a trend’…’we will never use it like the Americans do’….’no one does anything with social media in Holland’.  Well, it is simply not true, and now I have some facts to backup my opinion.  Here are the highlights;

• 85% of Dutch consumers use the Internet to search for information on a company’s product and services several times a month or more frequent (71% globally)
• 34% of Dutch consumers use social media platforms to search for information on a company’s product and services several times a month or more frequent (43% globally)
• 22% of Dutch consumers interact directly with company’s via social media platforms several times a month or more frequently (27% globally)
• 18% of Dutch consumers write about a company’s product and services on social media platforms several times a month or more frequent (24% globally)

What does this slew of facts tell us?  Well firstly, it confirms that the Netherlands consumer base has a high penetration of internet users.  When compared to the global results the Dutch are connected and internet savvy. Next to that, the numbers show that the Dutch consumers are not that far behind the global results in the adaption to using social media platforms.  34% are reading social media platforms, 22% are interacting with web-care teams and 18% are writing about and sharing their experiences for organizations products and services.  This is definitely not nothing, and seeing that Dutch consumers are leading in the results when it comes to using the internet it is only a matter of time before we see a shift from the internet (ie: likely via a traditional PC) towards social media channels via the every growing popularity of smart-phones.

I have provided some interesting facts and raised a lot of new questions – I look forward to reading your comments!  If you are interested in receiving more details about the 2010 Global Consumer survey do not hesitate to contact me at angela.gordon@accenture.com.

The day began with an introduction to the demanding and selective customers of today combined with a poll of the room to see how ’social’ the audience members were.  After the short introduction the participants were in agreement to the challenge their organizations face and were ready with their smart phones to start filling up the Twitter fountain.  The day flew by as all 8 speakers provided their view on the challenge of today, and those challenges that are likely to arise.  Key ideas shared by the presenters are;

1. Tjalling Smit from KLM (@KLM): dare to experiment, go to where your customers are, and learn from them!
2. Xaviera Ringeling (@Contentgirl): it comes down to personality, audience, knowledge, & trust (P.A.K.T.)
3. Fred Zimny (@serve4impact): create time and space: access, connect, engage, collaborate, & customize
4. Arjen Hof from GovUnited (@GovUnited): putting government in the citizens’ pocket
5. Paul Honout from Microsoft (@Pauluz): best practice social media policy — “don’t be stupid”
6. Martin Visser from Salesforce.com (@salesforce): find flexibility and a quicker ’time to market’ in the cloud
7. Rahm Fehr from Verint (@Verint): don’t just hear your customer; make use of analytics to really listen to them
8. Kenneth Lim (@kennethlim): value lies beyond social media and customer service

On behalf of Accenture and Teletrain, I would like to thank all the presenters for their stories, views, and opinions.  The day was full of discussions as to how organizations need to prepare their business, and their employees, for the new challenges and demands the social customer will bring.  A special thanks to our highly interactive and ’social’ audience which resulted in an interesting stream on the twitter fountain of more than 250 tweets.  Thanks for all your questions and comments and I hope to see you all next year at the 2nd annual Customer Service Seminar.

For a view of the individual presentations please visit the seminar webpage.

“Social CRM isn’t just another communication channel to market”.

Following-up on my last blog entry, I found a blog about the current status of social CRM and where it could go next: Social CRM at a crossroads? According to the author social CRM evolved from an innovative new tool used by a few companies to a mainstream functionality that practically all companies use (in one way or another). The big question is what to do with it now and how to really create value with this new technology?

The author outlines three main possibilities:

1. A new communications channel, used to communicate and market to new customer groups, but doing it mainly from the perspective of the company (and not the customer).
2. A new social CRM technology solution, implemented in order to follow the crowd and “have it”, but failing to create real value.
3. A way to co-create value together with customers, incorporating the perspective of the company, the customer and their touch points. Based on this understanding value can be created for both parties.

While the author sees the third option as the only one providing sustainable success for companies implementing social CRM, Dutch banks and insurance companies are still very much figuring out which way they would like to go. I do recognize abovementioned options one and two among them, but have not yet seen anything that really goes beyond that.

And this is the step a lot of companies need to start thinking about right now. The emergence and increasing usage of social media and other Web 2.0 tools has dramatically altered the ways in which companies interact with their customers. If they want to make social CRM something sustainable or something more than just the next hype, they need to make it more than a communication channel or another CRM functionality. They need to make it part of their overall CRM concept, something that is fully incorporated in their sales and service strategy. Companies should adopt a “social CRM” strategy.

I’m very much looking forward to the first Dutch bank or insurance that manages to do that. Or, even better, help to develop and implement it.

What do you think is next? What should companies do to respond to these changes?

He bursted onto the services scence by simply telling it like it is. He shared his personal service journey with the nation, and much to the dismay of the corporations, the nation nodded in agreement and shared their service disaster stories as well. The dirty laundry has been aired….

So where does a nation go from here?  Do we allow it to be simply a ‘hype’…?  Or do we as a nation of customers continue to bond together and challenge the current service norms…? Will corporations listen to the nation and take steps to make long-term changes to their service committements…?   And if they do make change, who will lead the revolution and who will trail behind…?

2011 has the ability to be the year in which corporations take action and push the Netherlands forward, dare I say, onto the customer service playground as seen in other western nations.  Or will they kick back and let the customers scream at the door…?  None of us know the answer, but we are all surely interested in seeing how this all plays out!

I have identified 5 key service themes which represent where I think organizations can make the difference. During 2011 I will be writing about these service themes and providing you with examples, as seen worldwide, as well as in our own backyards.  In no order of importance, the 2011 top 5 service picks are:

1. The Differentiated Service Strategy…make me feel special and make me feel like the only one!

2. Empathy, treat me like a king even when I am wrong.

3. The new workforce….generation X, Y, Z and A. Do you understand what motivates them?

4. The new workplace…my kitchen table is where I want to work (let’s face it, the coffee is always better at home)

5. Open up all digital interaction channels by investing in technology…the customer decides how they want to interact with the organization and that can range from email, to social media channels (twitter), to chat, or a user designed secure web portal.

Throughout 2011 the five themes will be discussed, debated, and used to demonstrate how the leaders are succeeding.  I look forward to sharing my ideas about these themes and I look forward to hearing more about your ideas and views!

My surprise was taken away when reading about the comparison made between the customer friendliness score and NPS.  Here is the ‘true’ picture of how things are really going in the Netherlands marketplace in terms of customer service.  The graph shown clearly displays the majority of companies having a negative NPS score.

Even a few companies with a score of 8 for customer friendliness do not have a positive NPS.  Here is in essence the key; just because you are friendly to customers doesn’t mean they will recommend your products and services to others. With a NPS adoption wave running through many organizations in the Netherlands it is important to realize that by taking on this new metric organizations are in essence raising the bar for themselves.  Organization have for years measured customer satisfaction but likely were satisfied with a score of 7. The NPS measurement doesn’t give any credits for a 7.  As average service is just that; average.

To have a positive, and double digit, NPS score organizations need to provide excellent customer service.  Don’t just meet the customers expectations but exceed them. Give them something to tell their friends about via Twitter.  Excellence in customer service requires organizations to open up and have a dialogue with the customer. One way service is no longer acceptable; customers want to be heard and involved in the discussion to find solutions.  This years #1 customer friendly company; Landal Greenparks, says it best: “een noreply@landal.nl is uit den boze”.

Creating and maintaining promoters for your organization requires dedicating your organizations efforts to providing a true customer centric experience.  Don’t settle for an average 7 when you can be a 10!

For inspiring ideas on how to adopt a customer centric approach to your organization visit: http://tinyurl.com/365xzg5

Let’s think about it for a moment; the key companies I deal with in Holland (phone company, cable company, bank, etc..) all know who I am. I have trusted them with my person details. They have my name, address, birth date, passport, bank account info, phone numbers, email addresses, etc.  So they know everything about me yet treat me like they do not know a thing? How much does it really cost to put in a little more effort in the delivery of a valued customer service experience?

I have witnessed countless companies explain their goal of cutting costs by implementing a self-service channel. Few have stated they are delivering it for their customers, or have done the research to show that their customers have requested it. It is the start of a vicious circle. Organizations build a self-service channel, the customers do not use it as they find it unfriendly or not hosting the required functionality, organizations need to cut costs and start to force customers to the self-service channel, customer complain or leave. To add fuel to the fire organization friction erupts as marketing and operational departments point the finger of blame at one another.

Is there a solution…? Absolutely, make every interaction with your customer count by designing and executing a customer experience blueprint for your service organization. Move away from the one general service for all and make use of the customer insight information to design tailored customer experiences that balance the value of the customer against the investment of the organization in servicing the customer.

Is it as easy as it sounds…? Unfortunately not. There are two key successful factors; first know your customer and what their needs are. Do not limit this research to what the customer wants now; ensure to look forward to the future so your organization can build a sustainable customer experience blueprint that evolves as the customer evolves.  Stay one step ahead! Second, invest in and cherish your organizations workforce.  Invest in implementing the infrastructure and tools needed to efficiently execute the customer experience blueprint; but do not stop there.  Invest in training to ensure the workforce can effectively use the tools and have the right soft skills. Then the secret weapon: cherish. Build an engaged and enthusiast workforce, one that places the customer experience first and takes pride in the service they deliver.  Trust me, your customers will notice!

For more inspiring information of creating a differentiated customer experience visit: http://www.accenture.com/Global/Research_and_Insights/Outlook/By_Subject/Customer_Relationship_Mgmt/default.htm

Walt Disney: key note speaker Mark David Jones reminded us that keeping it simple is a key to success.  Everything an organization decides to do needs to be easy; not only for the customer but also for the employee!

Ziggo: Martine Ferment launched the new buzz word ‘cross-channel’ and encouraged organizations to open up all available channels to the customers.  The presentation went on to provide convincing statistics as to the impact the chat channel has had on the Ziggo operational organization.  The interesting discussions continued during the networking event as to why this channel is not commonly used in the Netherlands seeing the obvious willingness of customers to use this technology.

ANWB: the ‘verrassende en vernieuwende dialoog’ presentation from Jose van Offeren was an eye opener for the audience. While most organizations make use of customer personna’s for their Marketing activites; ANWB recently implemented the use of 3 designed personna’s across their complete service organization (ie: contact center, stores, service montieurs, etc.). The cross channel alignment ensured a focused and consistent diaglogue with the customer as well as simplifying the process for the employees.  The success of the program was underpined with a positive trend seen in key operational performance indicators of ANWB.

Trendsketcher: Perhaps one of the most innovative presentations of the day was that by Anna Luise Sulimma who explained to the audience the links between the trends seen in recent years through a variety of sketches.  It was a convincing storyline that made use of entertaining metaphors to communicate the key message: your customer is the skeptical pretty girl with many potential suitors. What are you going to do to win her over?  What can you offer her that the other suitors can not?

For those who did not attend this year be sure to note this conference in your agendas for the fall of 2011 as it is not to be missed!

http://www.klantbelevingsconferentie.nl/