GreatCustomer Experiences

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 Great Customer
        # Read how, Nikon,
    and eHarmony
             earned their recognition.
                       Gartner & 1to1 Customer Awards Judges
   A distinguished panel of independent judges reviewed the nominations for the Gartner & 1to1 Customer
   Awards and selected the winners in each category. Those judges included past 1to1 Impact and Gartner
   CRM Excellence Award winners, as well as other industry experts and several distinguished Gartner
   analysts. These thought leaders evaluated the initiatives and rewarded the companies that demonstrated
   a level of customer excellence that delivers bottom-line results. The panel includes:

Gene Alvarez, Research Vice President, Gartner              Janet LeBlanc, 1to1 Impact Award winner, 1to1 Customer
                                                            Champion, and Director of Customer Value Management,
Boyd Beasley, 1to1 Customer Champion and Senior Director,   Canada Post
Customer Support, Electronic Arts
                                                            Ginny Mahl, 1to1 Impact Award winner and Vice President,
Sam Bruni, Director of the Customer Experience,             Sales and Customer Service, Travelocity
                                                            Richard Martino, 1to1 Impact Award winner,
Aaron Cano, 1to1 Customer Champion and Vice President,      1to1 Customer Champion, and Senior Vice President, US Bank
Customer Knowledge & Marketing Planning, 1-800-                                                 Adrian Paull, 1to1 Impact Award winner and Vice President,
                                                            Customer and Product Support, Honeywell Aerospace
Kimberly Collins, Managing Vice President, Gartner
                                                            Adam Sarner, Principal Research Analyst, Gartner
Perry Cooper, Vice President, Direct and
Database Marketing, NHL                                     Mike Swartz, Senior Director, Planning & Interactive Services,
                                                            Door C, Carlson Marketing Worldwide
Jim Davies, Research Director, Gartner
                                                            Dan Thorpe, 1to1 Customer Champion and former
Michael Dunne, Research Vice President, Gartner             Senior Vice President, Director of Analytics, Wachovia
Mike Eichorst, 1to1 Editorial Advisory Board member and     Erik Walters, 1to1 Impact Award winner and
Vice President, Market and Business Analysis, TIAA-CREF     Manager of Business Sales, DirecTV
Paul Greenberg, Author, CRM at the Speed of Light           Pete Winemiller, 1to1 Customer Champion and
Gareth Herschel, Research Director, Gartner                 Vice President, Guest Relations, NBA’s Seattle
                                                            SuperSonics/WNBA’s Seattle Storm
Isher Kaila, Research Director, Gartner

       To learn more about the Gartner & 1to1 Customer Awards winners, visit us online at:
               Every business has a unique customer strategy.
               The strategies of 2008 Gartner & 1to1 Customer Award
               winners share one common element: profitable results.

1to1 Media and Gartner have launched a joint awards program to establish a
standard of excellence for customer-focused organizations and honor those companies
that have recently implemented a successful customer-based business strategy with
resulting business impact.
 For the past six years Gartner has honored companies with the Gartner CRM
Excellence Award, while 1to1 Media has presented the 1to1 Impact Awards. The
2008 Gartner & 1to1 Customer Awards combine the best aspects of both. A panel
of judges that included Gartner analysts and other industry experts reviewed the
nominations and selected the 19 winners in each of seven categories.
 The awards spotlight the success of these organizations’ customer strategies and
demonstrate the real impact of a company’s commitment to its customers. “These
companies demonstrated that they have made major commitments to push the
CRM envelope, bringing forth new and innovative ideas to enrich their customer
experience,” says Gartner’s Adam Sarner, principal research analyst, CRM.
 In the pages that follow, we’ll highlight four of the 19 companies who used
Enterprise CRM Optimization and Customer Service Optimization them to deliver a
common result: an exceptional customer experience that drives profitable growth.
Enterprise CRM Optimization Caters to Disparate Customer Groups
                 already had two very different   customer satisfaction and revenue generation.”
 GOLD WINNER              customer groups when it decided to add a          Marktplaat’s customer satisfaction score has increased 7 percent in
third. An eBay company and the largest commerce site in the               the past year. Customer acquisition is up 25 percent and email answer
Netherlands, Marktplaats’ customers include the people who sell           time is down 55 percent. Additionally, data accuracy has increased from
items on its site and those who buy them. Recently, the company           75 to 90 percent. As a result of these efficiencies, customer churn is
began selling banner ads on the site                                                                       down, support staff have more time
as well, which brought an entirely                                                                         for     customer   interactions,   and
different set of interests into the mix.                                                                   marketing can better coordinate with
After realizing the difficulty in                                                                          sales     for   more    synchronized
accommodating        three    different                                                                    campaigns.
customer groups, the company devel-                                                                           One of the biggest changes is a
oped a CRM strategy to better                                                                              centralized dashboard. Regouin says
manage customer information, says                                                                          it was difficult at first to get people
Floris Regouin, products and process                                                                       to think outside of silos, but that
improvement manager.                                                                                       Marktplaats needed every depart-
  “In the past we had a home-grown                                                                         ment onboard to be successful. His
system that was really just an order                                                                        team met with each department to
                                           “We wanted to have one view of the customer and one
management system,” he says. “We                                                                            understand their specific needs
                                            way of dealing with marketing, sales, and service as
wanted to have one view of the                                                                              from the database, and made sure
                                            they related to our customer relationships.”
customer and one way of dealing                                                                             that information could be delivered
with marketing, sales, and service as they related to our customer        via the dashboard when it was needed. To ensure accurate data, any
relationships.”                                                           employee can request a data clean-up, and there are designated
  Using the on-demand CRM solution from RightNow Technologies,            members of each team responsible for honoring that request is now able to segment its customer database, track        promptly.
activity on its website, and measure everything from satisfaction to        As each phase of the CRM initiative showed signs of success,
problem resolution. The company began with its service department,        Regouin rolled out the next phase. The plan is to fully implement the
checking the data it already collected for accuracy before rolling out    strategy by the end of the year. Still, the increased customer insight
the system to marketing, sales, and finance.                              and efficiency improvements aren’t enough to make him sit back and
  By segmenting customers and analyzing their value to the                relax. “Even now we’re trying to further segment customers so we can
company, can now customize its approach based on           target them better,” Regouin says. “We’re constantly monitoring our
each group’s lifecycle. Advertisers, for example, are a low-volume        numbers and thinking of ways to continuously improve them.”
segment that brings in high revenue, so salespeople focus on person-
alized interactions. For buyers and sellers, which tend to be higher
volume and a lower revenue, the support team moderates forums                Key Facts:
and focuses on increasing efficiency.                                        # #3 most visited site in the Netherlands
  “In the past we had several clusters of information and no single          # #1 commerce site in The Netherlands
view of the customer,” Regouin says. “Today we can track every               # Acquired by eBay in 2004
metric, including the most important: the relationship between
Enterprise CRM Optimization

Nikon Captures the Right Picture of Its Customers
                          Nikon    didn’t   used      to   know     its     data. Today Nikon handles its surveys internally and measures
 SILVER WINNER            customers. The third parties that                     customer satisfaction itself.
primarily sold its products in the past were very knowl-                                      As a result of organizing its customer data, Nikon has
edgeable, and Nikon itself rarely had to handle                                                 improved service response rates by 50 percent, reduced
customer interactions. Today, however, the digital                                                 call response times by 70 percent, and increased
camera market has exploded and sales are often                                                       survey response rates from 20 to 60 percent.
handled by big-box stores whose employees                                                                “We have a 95 percent satisfaction rate now,
don’t have the expertise that specialty camera                                                        up from just receiving negative feedback
stores’ staff do.                                                                                    before,” Dentry says. “We have such a wide
  “Our business model has definitely changed in                                                     breadth of information on who our customers
recent years,” says David Dentry, general manager                                                 are that we even do targeted surveys for new prod-
of the technical support group. “It’s become                                                     ucts and adjusting our existing products.”
important for us to talk directly to our consumers,                                                  Nikon now owns its customer relationship from the
                                                           “We’ve realized that
which required a CRM system.”                                                                    time customers contact the company with a comment
                                                            customers see us very
  Nikon had used RightNow Technologies for                  differently from how we’re           or question to following up through the marketing and
seven years for some support functions, but when            organized internally.”               sales departments long after that initial interaction.
the company began assembling a customer data-                                                    “We’ve realized that customers see us very differently
base it turned to RightNow for a CRM solution as well. Prior to             from how we’re organized internally. We’ve tried to overcome that by
that, outsourced survey companies collected most of Nikon’s                 increasing our visibility and asking for their concerns and feedback.”

              Customer Centricity Starts at the Top
              It’s up to senior management to set the tone of customer centricity throughout the
              organization. Listen to interviews with the executives from the winning companies to learn
              how to set the customer-centric tone in your organization.


September/October 2008
                                                                          ®Reprinted from 1to1 Magazine, a Peppers & Rogers Group publication. All rights protected and reserved.
Customer Service Optimization’s Customer Care Drives Growth
                            “I currently sit at my 47th desk in my six    problems when people call in for returns or some mistake. When we
  GOLD WINNER               years at Overstock.” So says Brian Popelka,   flipped the business model so that customer care was the most
vice president, customer service, at the online retailer. He uses the     important department, rather than the last one budgeted for, it
statistic to illustrate how much growth—or, to use his term, “hyper-      really turned things around for us.”
growth”—the company has experienced.                                         In fact, CEO Patrick Byrne has projected that will
  Popelka freely admits that the triple-digit growth that                 achieve a $10 million profit this year—the company’s first overall experienced for a few years came at the                      profit since 1999—and has cited customer care and the company’s
expense of customer service. “It was simply not a                             customer-centric transformation as instrumental in helping
priority,” he says. “The focus was entirely on                                 turn the company around.
managing the growth. We wanted to take care of our                                The company instituted its own “Customer Pain Score,”
customers, but we were simply not proficient at it.”                            mapping every possible touch a customer has with
  Outsourcing customer care was a limited success,                           and all the processes that impact
as has what Popelka terms “an                                            customers and then identifying the factors that could
unusual and dynamic business model that makes                                           cause customer pain. While Popelka is loath to share
it difficult for someone even a few miles down the                                      too much detail about the initiative—“We are, after
road to really understand how to handle certain situa-                                  all, faced with a lot of competitors”—he says that
tions.” Indeed, with distributors ranging from eBay                                     “customer pain” as a metric has declined by about 90
sellers to megadistributors Apple, Sony BMG, and                                          percent. Additionally, the company’s customer care
Michael Kors, the stock at varies                                              Net Promoter Score has improved 125 percent.
from hour to hour.                                                                                 Agents are urged to “treat every caller like
  As a result, began experiencing                                                  they’re your grandmother,” Popelka says,
customer attrition. In early 2006 the company                                                    adding that any defensive mind-set needs to
began upgrading its customer care division, ulti-                                                be eliminated. “A customer didn’t order
mately leading to an implementation of RightNow                                                  a product to set up a return. Of course,”
Technologies’ CRM system, which provides agents                                                  he laughs, “there are some [people] who
with a single view of all customer                                                                       do that, but we focus more on,
interactions across phone, email,            Key Facts                                                   ‘Gosh, if this was me, how would
and chat; it’s also integrated with                                                                      I feel about it?’”
                                             # Headquartered in Cottonwood Heights, Utah, near’s Oracle e-commerce                                                                          Popelka says is now
                                               Salt Lake City.
system to provide agents with real-                                                                      fully invested in being “a Kaizen
                                             # Founded in 1997 under the name D2: Discounts
time access to order, fulfillment, and                                                                   company,” referring to the Japanese
                                               Direct; changed its name to in 1999.
returns information.                                                                                     philosophy that focuses on continuous
                                             # Started offering online auctions on its website
  “I hear lip service from every                                                                         improvement throughout all aspects of
                                               in 2004, including charity auctions.
company about how important the                                                                          life. “What worked three years ago does
                                             # President, CEO, and chairman Patrick Byrne
customer    is—and     we     certainly                                                                  not necessarily still work today,” he says.
                                               was included in BusinessWeek’s list of the 25
agreed with that—but you really get                                                                      “We’re constantly looking to improve the
                                               most influential people in e-Business in 2002,
to show that on how you handle the             and Ernst & Young named Byrne the “2002                   customer experience.”
                                               Milestone Award Winner, Utah Region.”
Customer Service Optimization

Building Lasting (Customer) Relationships at eHarmony
                              As the Internet’s leading dating service,        because it allowed us to lower our email interactions using our
 SILVER WINNER                eHarmony has served more than 20                 knowledge base, which allowed us to spend less time on email and
million registered users in more than 200 countries. But, according to         more time on the phone.”
Vice President of Customer Care Scott Ackerman, continued vigilance                eHarmony also strives to answer email inquiries while customers are
over how the site’s users and visitors are treated remains a critical part     still online. Such quick turnaround helps customer satisfaction scores.
of the business.                                                               “By lowering the [amount of] email,
  “We embarked on a proactive customer care improvement                        improving our retention, and stream-
strategy,” Ackerman says. “Previously, we were reactive in our                 lining our agents’ way of going through
approach to customer service. We would wait for customers to                   the call flow, our customer satisfaction
contact us with an issue and provide a resolution specific to the              has increased about 20 percent,” he
issue raised. We also wanted to improve in terms of customer                   says, adding that all this has helped to
satisfaction and retention, response times, and maintaining a                  boost customer retention as well.
single view of the customer.”                                                  “Before the [RightNow implemen-
  On average, he says, eHarmony accounts for some 240 people                   tation] we were retaining about
getting married every day, which typically starts with a 90–120 day            one in every 10, and now we’re
relationship with the website. Customers calling to cancel before              close to six in every 10.”
at least 30 days are given such data in an attempt to keep them on
the service.                                                                  “We embarked on a
  “We know that talking to our customers by phone is the best                  proactive customer care
method to do that,” Ackerman says. “So when we were looking for                improvement strategy.”
a more dynamic CRM system, we chose RightNow [Technologies]

               Gartner and 1to1® Customer Award Winners Share Advice
               on Bottom-Line Impact
               Executives from Nikon, Bell Canada, and discuss the important role data
               plays in tying customer centricity to the bottom line. Listen to the interviews today.


September/October 2008
                                                                             ®Reprinted from 1to1 Magazine, a Peppers & Rogers Group publication. All rights protected and reserved.
   Thanks for Giving
        Us Reason to


    Marktp Overst
  Nikon Harmony
      e          er Award Winner
               1to1 Cus

2008 Gartner
                          RightNow is honored to partner with
                      these esteemed leaders who have made
                        customers the center of their business.

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