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Customer Experience Excellence In The Age of the Customer Megan Burns, Vice President, Principal Analyst

April 29, 2015

© 2015 Forrester Research, Inc. Reproduction Prohibited 3

"Cuddling with multiple devices" by Jeremy Keith - Flickr: Cuddling with multiple devices. Licensed under CC BY 2.0 via Wikimedia Commons

The Age of the Customer

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We’ve entered the age of the customer. "Cuddling with multiple devices" by Jeremy Keith - Flickr: Cuddling with multiple devices. Licensed under CC BY 2.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Cuddling_with_multiple_devices.jpg#/media/File:Cuddling_with_multiple_devices.jpg

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Turn big data into business

insights

Transform the customer experience

Accelerate your digital business

Age of the Customer

Embrace the mobile mind shift

The AoC Market Imperatives

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Transform CX Embrace MMS Accelerate digital business Turn big data into insight My research focuses primarily in one - transforming the CX. Most people when they hear that they think about trends like shifting to…

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Agenda

› What does it take to be good at customer experience in 2015?

› How are companies developing the CX capabilities they need?

› What do you need to support your company’s CX efforts?

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Agenda

› What does it take to be good at customer experience in 2015?

› How are companies developing the CX capabilities they need?

› What do you need to support your company’s CX efforts?

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“If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude.” -Colin Powell

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"Jogging Woman in Grass" by Mike Baird from Morro Bay, USAMike Baird bairdphotos.com Licensed under Creative Commons Attribution 2.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Jogging_Woman_in_Grass.jpg#mediaviewer/File:Jogging_Woman_in_Grass.jpg

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How many people believe it’s important to eat healthy and exercise? Everyone. Won’t ask to raise hands, but how many do this as well as you’d like? I know I don’t. And most Americans don’t. According to the CDC…

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Design Governance

The Six Disciplines of

Customer Experience

Strategy Measurement

Culture

Customer Understanding

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Design Governance

The Six Disciplines of

Customer Experience

Strategy Measurement

Culture

Customer Understanding

“Voice of the Customer”

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Customer Understanding

Measurement

Call transcripts, emails, social media posts, etc.

Customer interviews & field observations

Employee input

Operations & process data, metrics

Behavioral analytics e.g. web, call center, mobile

Financial data

Goal: Understand who customers are and what they want from their interactions with the company

Goal: Quantify CX quality and it’s relationship to business health to guide management decisions.

Inherently qualitative Inherently quantitative

Structured questions

Survey responses

VoC

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Human Beings

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Source: Bertucci’s; Continuum

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Executives trying to walk in their customers’ shoes, like this Kimberly-Clark executive who’s trying to shop while wearing vision-impairment glasses and gloves that simulate arthritis – so that he can understand the challenges of elderly shoppers. And strange acquisitions like… Source: Wall Street Journal http://online.wsj.com/article/SB125288402995807243.html

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By Felix Andrews (Floybix) (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html), CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], via Wikimedia Commons

More than a set of parts

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Source: “Rethink Marketing In The Customer’s Context” May 27, 2014

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Source: Citrix Systems

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Source: Prime Theraputics

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Evolving

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2007 2010

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Source: http://25.media.tumblr.com/f3a3677677c051e3f1d990360aa9d178/tumblr_mjnu59nuq81qc91k6o1_500.png

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Source: Motorola Solutions website

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Design Governance

The Six Disciplines of

Customer Experience

Strategy Measurement

Culture

Customer Understanding

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Guiding Star

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Source: Maersk Lines website

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Source: Pinterest

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Execution. Because let’s face it, even with the best design there’s no guarantee that what you produce will look anything like what you’ve designed. And most companies don’t have the ability to execute to spec the way they need to around CX.

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Source: Doberman

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Source: Continuum; Holiday Inn

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Design Governance

The Six Disciplines of

Customer Experience

Strategy Measurement

Culture

Customer Understanding

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Image source: http://www.bridging-the-gap.com/wp-content/uploads/2011/07/Measure.jpg

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Source: http://www.reasonsmysoniscrying.com/

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Outcome Behaviors as a result

of a customer perception, e.g. loyalty

Perception How customers perceive

their experiences.

Descriptive What happened during the

experience.

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And then there are the outcomes of that experiences – what do customers do as a result of the experience? Holy grail – do CX for bottom line. Many ppl have outcome metrics but this is not a CX metric. E.g. NPS

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© 2015 Forrester Research, Inc. Reproduction Prohibited 36 Image: Wikimedia

Image: http://commons.wikimedia.org/wiki/File:US_Navy_110519-N-VA590-457_Sailors_participate_in_the_three-person,_four-legged_race_during_Sports_Day_at_Nong_Prue_Municipality_Sports_Field.jpg

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And it’s broader than you think. I know many of you are in financial services, which means your ecosystem includes…

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CX Professionals CX Leaders

CX Ecosystem

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Image source: https://www.facebook.com/#!/photo.php?fbid=10151991711642372&set=pb.42693447371.-2207520000.1384874718.&type=3&theater

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Design Governance

The Six Disciplines of

Customer Experience

Strategy Measurement

Culture

Customer Understanding

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Values

Beliefs

Behavioral Norms

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Source: Hampton Hotels

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Source: Hampton Inn

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Agenda

› What does it take to be good at customer experience in 2015?

› How are companies developing the CX capabilities they need?

› What do you need to support your company’s CX efforts?

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By John5199 (Sulcata Tortoise (5) Uploaded by russavia) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Slowly!

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• Tuesdays • Full Moon • Ann

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Spread best practices

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Spread best practices

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Reactive

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Source: Verizon “Broken Promises”

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Image source: Verizon Verizon has been doing since 2011. Like most companies Verizon had programs to listen and respond to customer feedback, but they knew they needed to enhance those programs to be broader and more comprehensive. CX leaders brought together more than 50 sources of customer feedback and found that that roughly 14 customer issues were driving 60% of customer comments, things that …caused customers to call the call center more than once… …or wait a long time to get something fixed. They called the program…

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Source: Forrester

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Preventative

Reactive

Customer Lens

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Image Source: FedEx FedEx did this as part of its evolution, creating something they call the “360 Research Structure.” They provided: A template that calls for people to map out the experience affects across the top 48 touchpoints in FedEx’s customer journeys A process for doing the research needed to assess impact, that includes best practices like polling customer facing employees A RACI model of owners, influences, and decision makers for touchpoints to help people know who to involve Models to help people predict ROI by connecting CX metrics to loyalty metrics

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“but” “and”

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Source: Apple website

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Intentional

Preventative

Reactive

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Source: Holiday Inn

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They clearly defined who the experience was for: “everyday heroes.” Source: Holiday Inn and Continuum

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Purposeful Inclusive

Social Familiar

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They rooted that strategy in their four brand attributes. Source: Holiday Inn and Continuum

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Strategic

Intentional

Preventative

Reactive

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Agenda

› What does it take to be good at customer experience in 2015?

› How are companies developing the CX capabilities they need?

› What do you need to support your company’s CX efforts?

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1. Let go

2. Learn

3. Practice

Thank you

forrester.com

Megan Burns +1 617.613.6294 [email protected] http://blogs.forrester.com/megan_burns @mbcxp