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Makeup customer experience

Three remarkable customer experience makeovers


Forrester's Harley Manning examines how Office Depot, Sprint and Fidelity Investments turned around their customer experience.

5th Jul 2018
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For those still in need of convincing of the correlation between customer experience and financial results, “Outside In: The Power of Putting Your Customers at the Center of Your Business” presents a compelling argument.

Co-authored by Harley Manning, VP of customer experience at Forrester, and CX consultant Kerry Bodine, the book not only provides statistical evidence by comparing total returns from a portfolio of customer experience leaders to customer experience laggards, but also via case study examples demonstrating how brands cut costs and/or increased revenue through CEM programmes.
Boasting more than 80 case studies and examples from 15 industries in 16 countries, the evidence is overwhelming, with brands including the likes of Boeing, FedEx, JetBlue and Virgin Media all demonstrating improvements in fortune following customer experience overhauls.
Based on the findings of his book, Manning, VP research director at Forrester, previously spoke with about the most basic errors that organisations make when it comes to customer experience – and how they can be addressed.
And here, he shares three case studies that demonstrate how Office Depot, Sprint and Fidelity Investments turned around their customer experience.

Sprint: Ensuring you are making it easy for your customers

“When Dan Hesse took over as CEO of Sprint in 2008, the company was bleeding red ink. They had the lowest score in the American Customer Satisfaction Index (ACSI) of any of the big wireless service providers by far," explains Manning. 
"They had lots of unhappy customers and what those unhappy customers were doing (besides leaving Sprint) was calling up the call centre with problems. Sprint was having to cut all kinds of contracts with outsourced call centres, so they were spending lots of money, plus when you call a centre with a problem, in addition to trying to solve your problem they also give you a credit by way of an apology.
“So when Hesse took over he pledged to break this cycle of madness, and decided to assign a reason code (the reason for the call) for every one of those problematic calls, and look at the top reason for the causes of customer unhappiness and then assign executives to solve those problems and report to him. And with that attention and focus, those problems got knocked down, and as the problems got knocked down, the call centre volumes went down, and as the call centre volumes went down they were able to close one call centre after another.
Sprint had lots of unhappy customers and what those unhappy customers were doing (besides leaving Sprint) was calling up the call centre with problems.
“An example of one of the problems was that a lot of customers were calling in about having the wrong bill. If Sprint had simply taken this at a superficial level, it would have just spent time looking at the billing system. But it queried why customers thought they had the wrong bill, who was responsible for the bill, and what happened when customers originally signed up to it, and traced that back, looking within the organisation.
"And Sprint found that that the root cause of the problem was something that had nothing to do with people calling in about the bill. It established that the problem was that it had way too many plans that customers could sign up for and so they were singing up for plans that didn’t meet their needs because they were confused. So rather than just staff up the call centres, Hesse decided to greatly reduce the number of plans."
Manning believes that the impact this had directly translated into customer satisfaction and financial gains, highlighting two facts that Hesse emphasised in a subsequent annual report to the company's shareholders. 
"One was that Sprint now had the highest customer satisfaction score in the ACSI of any wireless service provider, whereas before it was by far the lowest. And secondly the company had saved $1.7bn per year from reduced contact centre costs. That is real money for any company on the planet.”

Fidelity Investments: Going the extra mile for high value customers

Fidelity is one of the largest mutual fund companies in the world, and has a chief customer experience officer as well as senior vice presidents of customer experience in each of their business units, one of which used to be Parrish Arturi, who Manning interviewed for the book. Arturi would play an important role in revitalising Fidelity's customer experience. 
Manning explains: “Parrish did a number of things and piloted programmes including a study of the high net worth customers who were calling either because they wanted to open an account or get some advice or resolve a problem. And Parrish did research - because it really starts with really understanding the customer and taking it out of the land of the ‘squishy’ – and what they found was that these customers were not terribly happy because they were getting bounced around from expert to expert.
Fidelity piloted a programme so that high net worth clients would be assigned a case manager that would navigate them through the process and make sure that they got a good resolution.
"From Fidelity’s point of view this was the right thing to do - you have tax advice advisors, you have investment advisors, you need this and that. But from a customer’s point of view it was very easy to get lost and confused.
“So Parish piloted a programme so that when some of the high net worth clients called in, they would be assigned a case manager that would navigate them through the process and make sure that they got a good resolution – open an account, resolve a problem, whatever. And after he had been running this programme for a while he was able to look at the behaviour of clients who had had this upgraded customer experience versus ones who hadn’t had this treatment, and he found that the customers who said they had a good customer experience as a result of this treatment, invested billions of dollars net more in their accounts in total.
"Overall, they invested four-and-a-half times more with Fidelity than customers who hadn’t – and this added up to billions of dollars over the course of two years.”

Office Depot: The importance of getting the right staff

“If you don’t have a customer-centric culture, it is very hard to change and it takes time – and it takes being very purposeful,” explains Manning. “The then-president of Office Depot Kevin Peters visited dozens of stores undercover, walking around, looking at the stores, talking to customers, because he wanted to get a sense of what customers were really experiencing in his stores. And he reached the conclusion that the experience was poor in the stores.
“He assembled a larger team to analyse his findings and one of the things they concluded was that for years they had been hiring people for task orientation – people who wanted to stack shelves, people who wanted to keep the floors clean. And while it is important that the shelves are stocked and the floors are clean, they don’t really matter all that much to the customers as it turns out. What matters to the customers (who are small business owners) is that they are able to get in, find the products that they want and need, buy them easily, and get out.
“And so Kevin had his store associates take a psychological profile test and he found that a fairly significant percentage of them did not want to interact with customers. They actually said quite clearly that if their job changed so that they would be spending their time interacting with customers and serving customers, they wouldn’t want that job. And then he helped them not have that job!
"He went through and managed those people out of the business and Office Depot started hiring people and screening them for customer-centric attitudes.”

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Agi Marx
By AgiMarx
13th Jul 2018 15:56

Such a good article, and a great example of screening employees for customer-centric attitudes.

I'd be keen to know your perspective on the internal organisational impact that customer experience changes, and customer insights analysis can have?

In our line of business, we often see the truly revolutionary results that can happen when companies start to take CX seriously and start listening to their customers. Here is just one of those examples:

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