Building capabilities for customer centric decision-making using time to value

29th March 2021

In our latest blog post relating to Intelligent CX, Curzon Analyst Milla Bradstock explores how to build capabilities for customer centric decision-making using Time to Value.

Time to Value, as a metric, initially rose to fame among software companies and its insights now drive improvements in a range of business contexts. In a customer context, it is described as the length of time between a customer purchasing a product or service and seeing the value of that action. Yet to untap the metric’s full potential, businesses must take a longer-term view of its application that goes beyond resolving customers’ immediate needs.

As T2V requires organisations to understand the value of their product or service from a customer’s perspective, it entrenches customer-centricity into the way businesses think about their services. At a time of rapidly shifting customer priorities, organisations that take this approach will be well placed to remain aligned to the needs of their customers.

Measuring Time to Customer Value

Tracking T2V builds a picture of your present customer journey, which will inform solutions to better fulfil customer needs. However, you can only track T2V if you know what ‘value’ is in the eyes of your customer. The definition of value will, of course, differ amongst your customers, but we can start to break down this metric into two sub metrics:

  • Time to Basic Value – The time it takes for a customer to see the minimum amount of value from your product or service. Delivering on this metric doesn’t lead to customer loyalty necessarily, but will increase conversion. 

  • Time to Exceeded Value – The time it takes for a customer to see enough value to exceed their expectations over a longer period of time. Delivering on this metric reduces churn, builds loyalty and increases customer lifetime value. 

For example: A travel app with an easy to use interface and intuitive search results will deliver on the Time to Basic Value metric. However, its Exceeded Value will be realised only when it helps a customer have a good holiday i.e. booking a place to stay using the platform.  

T2V helps businesses identify obstacles to customer satisfaction, which inform solutions for long-term value creation in the eyes of their customer. For SaaS businesses, onboarding is essential to their customers seeing value from their purchase, which creates the challenge of motivating customers to complete the process.

Focusing on accelerating T2V at this point in the customer journey can therefore decrease customer churn and improve satisfaction. Automated onboarding can be an effective tool, delivering frictionless setup and easy deployment through product tours, in-app messages and onboarding checklists. In tune with customer demands for instant service and ultimate convenience, this tool enables customers to seamlessly see the value of their purchase for themselves.

Implications for organisations

  • Move the narrative from Customer Needs to Customer Value
  • Focus on Customer Engagement beyond the initial purchase
  • Measure and monitor customer engagement throughout the Customer Lifecycle 
  • And, of course, ensure the engagement delights the customer every time

How we can help

T2V is just one of the tools that we employ to help our clients improve customer value. Businesses that invest now in strengthening their capabilities for meaningful customer engagement will build the resilience necessary for long-term success.

Get in touch to explore how we can help your organisation create lasting value for your customers.

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digital customer experience

Creating a strong operating model in the digital age

10th December 2020

In our latest blog post relating to Intelligent CX, Curzon Associate Partner Rachna Trehan explores how to start creating a strong operating model in the digital age.

It is undeniable that we are deep in the ‘digital age’, or even the ‘post-digital age’. Different organisations are still at different levels of digital maturity and have shown a remarkable capability to change.

I think we can also agree that “Customer Needs” have changed. Browsing, selecting, influencing, engaging, buying, renewing… these all have new meanings which organisations are responding (some leading the way) to keep up with.

So, let’s take this argument further. How do we ensure organisations are set up to adapt to change rather than react to it? Whether it’s technology advances, changing customer needs or business continuity, they need to be agile and flexible.

The answers lie in transforming your operating models.

Four pointers to help you start to create a strong operating model in the digital age

Here are four pointers that we recommend in the sales and service space:

Build Agile Delivery Cells

  • Create Change cells around customer journeys that move fast, drive change, engage different talents and build an AGILE mindset.
  • Build flexible organisational structures enabling the growth and deployment of change cells.
  • Focus on outcomes, not outputs, in every part of the organisation. Change your metrics, incentives, and culture to be customer outcomes focussed.
  • Build processes / journeys with Systems and Design Thinking but with an agile mindset.
  • Collaborate with customers… before finalising products, journeys, metrics, operating models.

Focus on building platforms, not just software solutions

  • Build or transition to cloud-based platforms and collaborative solutions.
  • Ensure service designs are accurately reflected through the systems, and deliver the desired outcome.
  • Think end-to-end connectivity across customer journeys and potentially across the value chain.

Keep your employees happy

  • Happy employees are motivated to work with agility, create happier customers and generate more revenue.
  • Employee Happiness is actually a measure – there are ways to make it tangible, and track impact on the top/bottom line.
  • Invest in your people – Train them to “add value” to the customers / company. Having high quality human conversations can actually be a differentiator.
  • Flexibility in resourcing and ways of working – “physical boundaries” and “typical employee profiles” are a thing of the past. The world is your oyster. AI powered WFM solutions can take the pain away.

Focus on Customer Engagement

  • Get customers to engage with your products, journeys and people.
  • Learn from these engagements and improve the happiness quotient around them.
  • Spread the word within your organisation – Sales, Loyalty, Up/Cross Sales all depend on customer engagement.

Get in touch

These four areas will help you start your journey towards creating a strong operating model in the digital age.

Curzon provides the experience to prepare our clients for the future and deliver tangible results. See you on this exciting journey.

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Curzon Consulting Background

Return to Curzon: Rachna Trehan to lead ‘Intelligent CX’ offering

9th October 20205 Minutes

We are delighted to welcome Rachna Trehan to Curzon Consulting as Associate Partner. She will be leading the Intelligent CX service line. Rachna previously worked at Curzon from 2007 – 2014. Since then, she has advanced customer and digital strategy for clients at Accenture, Baringa and Ember Services.

Rachna answers our questions on reasons for joining Curzon and what’s in store for our Intelligent CX service line.

How did Curzon set you up for a career in consulting?

Very early in my career I learned to focus on doing the right thing for the client and doing it well. During my first tenure at Curzon, I learnt what drives businesses, how to problem solve, how to construct an approach to resolve the problems and how to make the solutions stick. Learning these core consulting skills gave me confidence that I could solve client issues in any industry. In addition to this, I started working directly with the partners of the firm and with the clients within hours of joining Curzon. I learnt by observing these brilliant minds at work and started to pick up their thought process and how to breakdown the problem statements into root causes and work packages. This live experience was far above what any training programme could give me. These skills helped me thrive in consulting firms later in my career.

What have you been up to since leaving Curzon in 2014?

Since leaving Curzon in 2014 I decided to remain in the same field and further develop my programme leadership and account management skills. I have  specialised in the Customer Space and have built thought leadership around it. I have worked in large, medium sized and small consulting firms and have been lucky enough to work alongside really intelligent people who deliver real impact for clients. Throughout this time I saw the value that consulting can bring to our clients professional life and help in their own personal development. My passion and respect for my profession has gone up greatly and I hope it rubs off on my new colleagues/ clients.

Why return to Curzon Consulting?

Curzon always felt like home for me. The company culture is based on doing the right thing for the clients, building trust and developing skills rather than templates. It doesn’t compromise on quality and focusses on delivering real impact to the top/bottom line. I like the fact that each consultant in Curzon takes the role of a coach/trusted advisor for the clients. Curzon focuses on building strategic partnerships with clients, helping them achieve their objectives, rather than a narrow approach. The client relationships go beyond the immediate projects and we often help contribute to clients’ career growth. The Curzon team is more like a family and has each other’s backs. I am really looking forward to being a part of that team again.

What are you most looking forward to?

I’m looking forward to establishing and strengthening our Intelligent CX service line. These are exciting times in the customer space where we have seen rapid digitalisation over the past few months. There has been a change in customer’s needs and expectations. Our clients are now looking at not just sustaining and further building on the AI powered customer focussed technologies but also on organising themselves in such a way that they are ready to deal with and future surprises. This means they need different operating models, service excellence will be redefined, employee satisfaction is finally gaining as much attention as customer satisfaction and new ways of measuring success will be required. I am looking forward to helping our clients in these areas through our Intelligent CX service.

Over the coming months we will be sharing our thoughts on customer experience.

Rachna Trehan returned to Curzon Consulting in November 2020 as Associate Partner. We are delighted to welcome her back. Contact Rachna to arrange an introductory meeting.

Intelligent CX

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Change management optimisation at a UK retail bank

The issue

  • Unprecedented customer growth & branch expansion coupled with focus on improving service delivery and customer satisfaction placed pressure on our client to deliver greater and more complex change
  • A need to improve the architecture and governance of business process change
  • To ensure change management is ready and optimised for successful delivery of current and downstream change demand
  • Rapid growth brought complexity & uncertainty
  • There was a need for tightly defined governance mechanisms supported by a standardised way to adhere to change

What we did

  • Designed framework for a multilevel business change process architecture to facilitate effective governance
  • Translated the framework into a new change management model with new working practices & Balanced Scorecard
  • Consistent communication and deployment in line with organisation’s need

The results

  • Building blocks in place for bank to deliver its growth strategy securely
  • Reduced change backlog
  • Change management framework to drive sustainable change and maximise results implemented across bank operations
  • Agreed metrics/KPIs at selected organizational levels including baselines and targets

An award-winning team

Curzon consulting mca finalist 2019

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Improving customer satisfaction at a leading retail and commercial bank

The issue

  • Continuing declines in NPS and CRI scores across retail and commercial customer bases
  • Board’s ambition was to achieve market-leading customer recommendation levels
  • Ongoing customer service challenges driving up customer dissatisfaction ― but unclear as to true extent and causes
  • Big gaps between customer expectations and delivery
  • True extent of customer dissatisfaction not identified or addressed, and NPS surveying not used to mine for triggers. 40% of customers thought they had complained vs 4.5% recorded
  • Reality was 45% of customers who’d formally complained were dissatisfied with complaint resolution, making them far more likely to churn (62%)

What we did

Designed & executed a pricing, product and service migration of all policyholders to one new modular product

  • Worked across retail and commercial banking operations to understand and map impacts of service failures and complaints response on NPS and CRI scores
  • Identified biggest linkages between types of service failure, quality/ timeliness of complaint resolution, and the creation of Detractors
  • Surfaced major under-reporting of complaints and inaction where known detractors continued to be detractors
  • Developed set of targeted remedial actions to apply at point of service failure or complaints to prevent creation of detractors or convert them into neutral/advocates, minimising risk of eventual lapse
  • Defined how to cost-effectively and proactively pinpoints and stop service failures occurring
  • Designed operational changes in four customer management areas across Retail & Commercial Banking to reduce service failure and complaints volumes and costs

The results

  • Recommendations agreed by both divisions
  • Transition plans delivered
  • ExCos in implementation
  • Reported improved NPS & satisfaction rate scores
  • On-target run-rate cost reduction benefits

An award-winning team

Curzon consulting mca finalist 2019

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New rules for insurance customer growth

26th April 20185 Minutes

Curzon Consulting Financial Services lead Doug Badham discusses the “New rules for customer growth” for insurance companies in an article for Raconteur.

New Rules for Customer Growth

The old norms of insurance cause a lot of customer pain: ever-rising premiums, slow and undifferentiated service, complex procedures and poor communications. But big changes are afoot. Insurance customers want better for less as rapid technology advancement continuously raises service expectations – and disruptive new entrants are riding the wave. Inward-looking insurers ignore this at their peril. Doug Badham said:

“We believe the industry has passed the point where it’s possible to grow profitably by sticking to the old rules,”

Successful net insurance customer growth now depends on embracing a new set of rules.

All customer contact is precious and should be as convenient as possible

Policyholders expect to be treated as valued customers, able to interact 24/7 across joined-up access points as they do in other sectors. Seamless access boosts retention and reduces overall cost to serve, and requires digital enablers to be at the heart of the insurer’s operating model.

“Insurers can no longer hide behind data security and Financial Conduct Authority (FCA) regulation as reasons not to allow multiple channel completion of processes,” says Mr Badham

The focus must be on retention from day one

Keeping customers is harder than ever: switching, reducing or dropping cover has been rising steadily due to household cost-cutting and self-researched offer-hopping, leaving some underinsured. Use of comparison sites also means consumers leave bigger data footprints, which ratchets up competitor targeting of renewal dates. To defend against this, care and consistency must be core to the entire customer journey. The jolt when a frictionless sales process gives way to a clunky claims procedure won’t be tolerated.

As Mr Badham explains: “Optimising claims experiences and making best use of technology to help customers minimise the cost of a claim, or not have to claim, is how retention battles will be won.” Take the LeakBot recently introduced to homecare cover, which alerts customers to first signs of a leak before worse damage ensues. Alongside claims experience, affordability is a prime reason for customer exit and another cornerstone of retention effectiveness will be the increasingly precise, personalised renewal pricing artificial intelligence can deliver.

Have more meaningful customer communication more of the time

Too often insurers’ attempts to communicate have an adverse rather than positive impact. Providers need to treat every customer touchpoint as an opportunity to demonstrate the value of their cover, particularly since April 2017’s FCA renewals regulation, which requires every renewal notice to encourage customers to shop around.

The best will use analytics to provide genuinely beneficial, timely insight that allows customers to understand and minimise their risk, for example: “You are regularly braking sharply and exceeding speed limits.” According to Mr Badham: “What’s happening in health insurance, where providers are transforming from benign payers to lifelong wellbeing partners, is likely to be followed in motor, home and other lines.”

Rebuild or build a brand based on trust and followership

Insurance has become something of a dirty word in recent years, with many incumbents losing customer trust. Restoring it is partly about making the move from a back-office-centric operating model to one that delivers digitally driven customer management and contact excellence. On top of this, compelling brand proof points are crucial to fend off powerful non-insurance brands that have taken a foothold, such as John Lewis, and to combat price erosion from online distribution challengers. It won’t be a case of outspending them. The insurers who cut through the noise of comparison tables and “expert” web articles will be those earning and sustaining customer advocacy through trusted recommender communities and app-based insurance aggregators such as Boughtbymany and Brolly.

There’s no hiding place from the disruption. Shedding the old rules and becoming a genuinely customer-driven insurer – in the customer’s eyes – is what it will take to thrive in the new environment.

raconteur

This article originally featured in Raconteur, April 2018

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