AmEx: High Value Customer Service Drives Shareholder Value
0 comments | 1428 reads
The Challenge: Businesses that do not recognize the power of high quality customer service, increase the risk of revenue loss and decreases in market valuation.
Businesses that treat customer service as a cost center, relegate it to an operations function and focus on manufacturing metrics such as reducing the time per call.
Innovative marketers like QVC treat service as an opportunity to build strong customer loyalty. For them, service isn't a cost;it's a revenue driver.
Jim Bush, Customer Service Czar at American Express, has pushed the envelope even further. For him, service is a major driver of market valuation and shareholder value.
Like many innovative marketers, Bush shifted the focus of his service team from reducing call time to building engagement. He discussed his reasons, and the results, with Fortune Magazine's Geoff Colvin. These are some of his innovations:
Reps too often sound robotic. They need to conduct authentic conversations which are based on empathy and personalized data. According to Bush, "We present the profile of who that customer is and other information relevant to that particular interaction. That allows the care professional to be conversant and pull out their personality and match it to the personal needs of the customer."
Dropping "low call time" as your service goal doesn't mean ignoring key performance metrics. Bush's team optimizes for Bain's "Net Promoter Score”. “For every servicing transaction we ask, How can we get the customer to feel better about American Express and recommend it to a friend? That’s a promoter.”
Bush clearly recognizes the importance of the Voice of Customer (VoC): "Think of the power of the voice of customer now. Verizon introduced a $2 fee, the voice of customer screamed loud, and it turned that around 24 hours later. We need to appreciate customer centricity and the value it creates."
The results have been dramatic: According to Bush, "For a promoter who is positive on American Express, we see a 10% to 15% increase in spending and four to five times increased retention, both of which drive shareholder value".
Customers today expect a higher level of personalization than ever before. Bush emphasizes the role of service in personalization: "I thought about the opportunity of capitalizing on every interaction and moving away from being a cost of doing business to being an investment in building relationships. Every one of those moments of truth is an opportunity to make a difference to customers in a personalized way."
Solving customer problems is crucial, but it's not enough. The service team at AmEx focuses on "how you create the relationship and build it through humanity, conversation, and engagement". To do those things effectively, call center employees need the right training.
Bush's quote above should become a mantra for all businesses. Call center employees should serve customer’s desires and needs, and customers should be the ones to determine how long they need to be on the phone.
Ernan Roman
- About Ernan Roman |
Connect:
- 1428 reads
0 comments »
Join the conversation!
MarketPlace
Boost Customer Satisfaction & Loyalty at SCORE 2013
[May 29-31, Boston] Customer experience management (CEM) strategy meets customer operations at SCORE Conference 2013. Topics include driving customer satisfaction and loyalty, employee engagement, customer retention, call center technology and big data analytics. CustomerThink members save $700 off the regular registration fee.
Digital vs. Human Banking Experiences: Can This Be a Happy Marriage?
[June 6] It's time for banking leaders to rethink how to nurture and grow customer relationships in an increasingly digital world. Get the results of a new study that revealed the CX practices of top performing banks. Learn how digital Innovations can enable more personal service.
[June 10-13, Chicago] If you are responsible for the results of your company’s website, social media, ecommerce, web intelligence, data strategy, audience research and/or measurement, then mark your calendar. Customerthink members save 15% off full conference passes with code CTKTO15.
[June 10-13, Chicago] PAW's program will feature over 40 sessions with case studies so you can witness how predictive analytics is applied at leading enterprises. Customerthink members save 15% off full conference passes with code CTKTO15.
Confirmit’s Community Conference ’13 – London and Las Vegas
[June 19-21, London; June 26-28, Las Vegas] Attending CCC ‘13 gives you an unrivaled opportunity to understand and address rapid industry changes and discover new techniques that can drive your business forward. Create a tailored agenda that explains how to overcome the challenges your business faces. Take advantage of excellent networking opportunities and face-to-face discussions with thought leaders.
Global Customer Experience Management (CEM) Certification Program
[Sept 19-20, Amsterdam; Sept 24-25, Sao Paulo; Nov 12-13, San Francisco] An internationally recognized program with proven track record of success - being run for 40 times in 17 cities with attendees from 58 countries, the program is developed based on the U.S. patent-pending Branded CEM Method which aims to drive customer loyalty and brand differentiation with quantifiable business results. Limited offer: USD300 early bird discount.
Customer Experience Certification
[Sept 24-26, London] If you’re developing a customer experience program or want to review your current approach, join other customer experience leaders for this intensive 2.5-day certification. Presented by Medallia, the global leader in customer experience management. Enter code ‘Cthink’ to save$300/£200.
Voice of Customer 2.0: Creating Change Your Customers and Employees Can Believe In
[Recorded April 25] Despite good intentions, in the majority of companies Voice of Customer programs contribute little to business success. Join us to learn the secrets to capitalize on Customer Experience feedback, so you can drive organization actions that will unlock profitable growth.
Get your event or resource listed in the MarketPlace, reaching 200,000 business leaders monthly.
For more information, contact
CustomerThink advertising sales.
Follow CustomerThink
The Future of Work - Please Give Your Input
CustomerThink is collaborating with Chess Media Group in a study about "The Future of Work" including the use of social/collaborative tools. Please take a few minutes to share your input. As thanks for your time, you'll receive a complimentary copy of the report.
Featured Resources
