The Chemicals & Allied Industries Customer Service Management Group

Delivering superior customer

experience
April 2019

Oliver Zeranski
Gaurav Bhati
Introduction to A.T. Kearney

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About A.T. Kearney

A.T. Kearney is a leading global management consulting firm with offices in 40 countries. Since
1926, we have been trusted advisors to the world's foremost organizations. A.T. Kearney is a
partner-owned firm, committed to helping clients achieve immediate impact and growing
advantage on their most mission-critical issues.

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Our expertise spans a wide range of industries and services

What we do
Communica- Health
Our Aerospace &
Defense Automotive Chemicals tions, Media Consumer
Products Energy Financial
Institutions
& Technology
industry
expertise

Our Leadership,
service Analytics Cost Digital Global Policy Change &
Transformation Transformation Organization
expertise
Marketing Mergers Strategy &
& Sales & Acquisitions Procurement Top-Line Supply Chain
Transformation

Industrial Metals Transportation

Health Goods Infrastructure & Mining Private Equity Public Sector Retail & Travel
& Services

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We are the leading consulting firm in Chemicals with a strong global
presence

A.T. Kearney’s Chemical Clients

• Globally 19 of top 25 chemical companies
• Top 3 North American players
• 50+ diversified/specialty chemical companies

Selection of recent consulting topics

• Growth strategy
• Marketing and sales effectiveness A.T. Kearney Chemicals Centers of Excellence
• Organizational effectiveness and restructuring • Chicago • London • Dubai
• New York • Düsseldorf • Hong Kong
• Customer satisfaction
• Houston • Moscow • Melbourne
• Operational assessment and improvement • Paris • Mumbai
• Mexico City
• Sao Paulo • Johannesburg • Tokyo
• Toronto • Riyadh • Singapore

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Our team today

Oliver Zeranski Gaurav Bhati

Partner Manager

@ Oliver.Zeranski@atkearney.com @ Gaurav.bhati@atkearney.com
+1 212 705 1534 +1 212 350 1069

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Reimagining customer experience

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What connects the following?

Colonoscopy Michelin 3 star Arnold

restaurant Schwarzenegger

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Customer experience: A conceptual model

You Customer

Communication

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Customer experience: A conceptual model

You Customer

Communication

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4 stages of communication

STAGE 01 STAGE 02 STAGE 03 STAGE 04

Talking Listening Neural Remembering
Imprinting

• Customer • Invoke right

• Give the hears what mapping/
right you want associations • But 6
messages them to hear in the brain months later
– what do
• Create a • Understand • Appealing to they
narrative/sto cultural / the better remember?
ry personal angels of
nuances brain

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Meet your alter ego

You Now

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Meet your alter ego

You 6 months later

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Meet your alter ego

You 6 months later

• Part of you which is • Part of you which remembers

experiencing the current how things happened in the
sequence of events past, makes memories of
• Makes reflexive distant events
decisions: Fight or flight • Makes evidence based
thoughtful decisions – like
new purchases

Experience Self Remembering Self

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Meet your alter ego

Why is it important?

• Remembering self and

experience self rarely agree
on details of events
• As time lapses – as it
usually does when customer
• Part of you which is • Part of you which remembers
makes a purchase decision
experiencing the current how things happened in the
– remembering self takes
sequence of events past, makes memories of
the driver seat
• Makes reflexive distant events
decisions: Fight or flight • Makes evidence based
thoughtful decisions – like
new purchases

Experience Self Remembering Self

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Can science prove existence of remembering self?

Which patient experienced more pain?

Patient A Patient B
8 8

6 6
Pain intensity

Pain Intensity
4 4

2 2

0 0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28

Time (minutes) Time (Minutes)

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How can we influence the ‘remembering self’ to create lasting
positive impression on our customers?
Two Rules to influence the remembering self
Rule Peak-end Rule Duration Neglect Rule

Highs (and lows), especially towards the

What it says end of the experience, are more important Duration does not matter
than individual aspects or averages

• Instead of delivering a sustained superior • Spilt negative experiences over

CE, focus on your strengths –create one time/touchpoints
Implications for or two moments of extreme satisfaction
• Disproportionate attention currently is
customer experience for your customer
given to customer wait time. If properly
• Emotional highs are as important (if not sequenced, long wait time can work to
more) as rational highs your advantage
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A quick poll: How happy do you feel?

Does marriage makes us happy?

0.6

0.5
Life Satisfaction

0.4

0.3

0.2

0.1

0
-4 -3 -2 -1 0 1 2 3 4 5+
Years
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How to use WYSIATI (What you see is all there is) to improve
customer experience?
When to appease an unhappy customer?

5 months from good experience

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

5
5 months
months from
from bad
bad experience
experience

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How to use WYSIATI (What you see is all there is) to improve
customer experience?
When to appease an unhappy customer?

3 months from good experience

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

5 5months
monthsfrom
frombad
badexperience
experience

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Urge to ‘control’ is ingrained in human mind, harness it to improve
customer experience

Surgery Patients Customer Delivery

Delivering better health care Creating better customer experience

• Tale of the old internet explorer

• Providing better healthcare by giving control back to the
patient • Does tracking your shipment makes it arrive faster?
• Is placebo effect real? • Delayed shipment - is there a better way to deliver the
bad news to the customer
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To summarize: 4 mind hacks for superior Customer Experience

Summary

• Focus on your strengths to Peak End Duration • Duration of the experience

create high points in the Neglect does not matter – dilute the
customer journey lows by splitting them over
time/touchpoints

• Give the control back to the Urge To WYISIATI • Sequence customer

customer – it’s free and Control experience – bring positive
powerful
experiences closer, push
negative ones out

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A real world example : Secret ingredient for healthier and tastier
food

The Fat Duck Restaurant

• The secret ingredient of a Michelin 3 star

restaurant is ……Nothing

• To be fair, they do use a technique called

Encapsulation which uses whole spices instead
of a powder – e.g. small granules of salts or
pepper
• Granules delivers a few strong burst rather than
dispersed flavor – peak end rule

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But why should we change? B2B customers don’t care

If you think you are in B2B business, then think again

Customers push companies to do better Business buyer expectations get consumerized

Percentage of business buyers who agree with the
following:

80% 95% 67% I expect vendors to personalize

engagement to my needs 72%
of customers of customers of customers
say the experience a say they are more Say their standard
company provides is as likely to be loyal to a for good experiences I expect Amazon-like buying
experiences 69%
important as it company they trust are higher than ever
products &
services
I think vendors are providing more
retail-like experiences than ever before 67%

I have switched vendors for a more

consumer-like experience 67%

Consumers Business Buyers

Source: “State of the Connected Customer”, Salesforce Research, June 2018 7/55888 25
Using Digital to deliver superior customer
experience

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Why care for Digital? Why not end this session with some good use
cases?
A case for use of Digital
Cognitive strain
Digital brings down the
transaction cost of
implementing ideas
Thinking, especially, under
daily stress of work is hard –
automate the insights
through digital
Fit to context Standardization
Be pragmatic, not dogmatic Customer service is the face
A digital design exercise of the company –
helps an organization to standardized, automated
think through use cases that work flow makes customer
are most relevant to its experience consistent and
customer’s needs repeatable
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How can digital help? Four key capabilities to deliver a differentiated
B2B customer experience
Capabilities and levers
Frictionless interaction Insights-enriched relationships

B2B Customer
Engagement Pathways

Omni-channel interaction Open platform

Source: A.T. Kearney 7/55888 28
Leading players are using digital to improve B2B customer
experience
Example of early adopters Examples

Frictionless interaction Insights-enriched relationships

Ensure the right products are in the right Build more personal relationships faster and more
place and enable better innovation effectively than ever before

B2B Customer
B2B Customer Engagement
Engagement Pathways
Pathways
Meet customers where they Scale capacity quickly and
are with what they need to efficiently using external
better retain and differentiate supplier networks

Omni-channel interaction Open platform

Source: Web research; Company websites; A.T. Kearney 7/55888 29

Applied in the right way, B2B Customer Experience can provide
significant benefits to the companies
Typical benefits from B2B CX projects

workload customer up to three-year

Frictionless -80% -38% 1000
interaction reduction acquisition costs % ROI

Insights- increased meaningful

up to hit rate
enriched customer 200% customer +50%
10x enhance-ment
relationship insights interaction

margin up-/cross-
Omni-channel up to more
5-10% benefit vs. 30% selling
10x customers
interaction classical sales increase

revenue with reduced churn

up to
Open platform new offerings -70% engineering 30% rate
50%
in 2 years effort1 reduction
CX- Customer Experience
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The key is to drive a mindset shift

Digital mindset and culture

Design thinking Customer delight Agile
• User-centric workshops identify unmet needs • Deliver products that exceed expectations to • Highest gear of 2-Speed IT Delivery model
and opportunities delight users • Working in parallel but coordinating with
traditional IT operations

Result-oriented Lean Forward looking

• Light, pragmatic and results-focused • Permission to experiment • Architecting the future
• Mindset of rapidly moving from problem to • Minimum Viable Product (MVP) delivery- • Enabling continuous innovation
prototype Avoid large upfront investment. Focus on
smaller scope and scale successes

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Vison meets Pragmatism - an iterative approach to deliver the future
B2B customer experience
A.T. Kearney B2B CX design methodology
Test

Learn
Set ambition Design Pilot Scale Embed
Set the ambition Envision the Establish Develop Embed
and assess Art of the proof of execution systems,
current Possible and concept, test roadmap, processes,
capabilities to design future MVP, and integrate capabilities, and
identify gaps in state B2B prioritize ecosystem culture in the
B2B customer customer initiatives partners, and organization
experience experience launch new B2B
experiences
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Crowd funding ideas to redesign your customer experience

Questions to answer

• What are some of the high points of your customer experience journey
High – How can we move them towards the end
– Can we create new, more powerful highs

• What are some of the low (friction) points of your customer experience
Lows journey
– Can their impact be reduced by diluting them over time or touchpoints? How
digital
can
• What are the key milestones in your customer experience journey
Key milestones – Can you work with sales team to create some positive
help?
associations/experiences before key milestones?

• How can you offer more choice to your customers

Elements of choice – Increase transparency, proactive updates.

CX- Customer Experience

Source: A.T. Kearney 7/55888 33
Conclusion

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A final thought experiment to illustrate the power of remembering
self
1 2
Take a wonderful 3 Have a memory of a 3
week vacation in week vacation
Europe but forget the implanted in your brain
experience after?

Which one will you choose? 7/55888 35

Thank You!

"I've learned that people will forget what you said, people will forget
what you did, but people will never forget how you made them feel."
- Maya Angelou

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