the customer experience scenario
DESCRIPTION
understanding that User Experience is more important than customer satisfaction, loyalty and branding alone.TRANSCRIPT
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Ed Thompson
The Customer Experience Scenario
Is Your Organization Selling Experiences, Or Is It Still Thinking in Terms of Products?
The experience economy
Commodity1¢ to 2¢ a cup
Goods5¢ to 25¢ a cup
Experience$2 to $5 a cup
Does Your Organization Have an Experience Tab on Its Main Website?
Has Anyone Written a Book About Your Organization's Customer Experience?
How Does Your Corporate Blog Stack Up Against Southwest's?
Is Your Organization's Customer Experience as Memorable as Apple's?
Has Your Organization's Customer Experience Changed the Market?
Will One Interaction Stay With Your Customer Forever?
el Bulli, Best Restaurant in the World in 2002, 2006, 2007, 2008, 2009
Closed 2011
Are You Willing to Listen to Your Customers as Much as Zappos?
"Unlike most websites … Zappos prominently displays a toll-free customer-service phone number. There are no limits on call times, and the resulting sessions occasionally resemble protracted talk therapy.
On July 5 [2009], a 22-year-old Customer Loyalty Team member named Britnee Brown, who has been with the company for a little more than a year, took a call that was a record 5 hours, 25 minutes, and 31 seconds long, from a woman on the East Coast interested in Masai Barefoot Technology shoes."
Source: The New Yorker, 14 September 2009
How Do You Stack Up Against Those Who Are on Top of Their Game?
Do Your Customers Willingly Tattoo Themselves With Your Corporate Logo?
Customers Care More About the Customer Experience Than in the Past
1. 40% of organizations cite ‘complexity’ as the greatest barrier to improving multichannel customer experience, overtaking ‘organizational structure’ since 2010.
2. Only 26% of companies have a well-developed strategy in place for improving customer experience. Source: Econsultancy MultiChannel Customer Experience Report
3. 50% of smartphone users would prefer to use a mobile customer service application to try to resolve their customer service issue before calling into the contact center. Source: SpeechCycle and Echo Research Study
4. Customers who engage with companies over social media spend 20% to 40% more money with those companies than other customers. Source: Bain & Company Report – Putting Social Media to Work
5. 63% percent of online adults are less likely to buy from the same company via other purchase channels if they experienced a problem with a transaction on their mobile phones. Source: Tealeaf Mobile Transaction Research Report 2011
6. $289 – Average annual value of each customer relationship lost to a competitor or abandoned. Source: Genesys Report – The Cost of Poor Customer Service
7. Consumers prefer to resolve their customers service issues using the telephone (90%), face to face (75%), company website or email (67%), online chat (47%), text message (22%), social networking site (22%). America Express 2011 Global Customer Service Barometer
CIO Survey 2012: CIOs See Customer Experience as the Greatest Opportunity for IT Innovation
How we learn andchange as a business
The way we extractvalue from customers
Customer experience(products, services, etc.)
Customer engagementmarketing & sales
The manufacturing andservice creation process
The way we get ideas and make decisions
Distribution of Respondents
Ranked First Ranked Last
35%
32%
24%
18%
15%
16%
12%
6%
13%
9%
10%
11%
12
Key Issues
1. What is a customer experience, and how is its improvement measured?
2. Which projects will deliver the most positive customer experiences?
3. How is a strategy created to start to improve the customer experience?
4. Which technologies and vendors are best for customer experience management?
• The dictionary defines experience as: "The sum total of conscious events."
• Gartner defines customer experience as: "The customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier's employees, channels, systems or products."
• Gartner defines customer experiencemanagement as: "The practice of designing and reacting to customer interactions in order to meet or exceed customer expectations and so increase customer satisfaction, loyalty and advocacy."
Definitions
Loyalty/
Advocacy
Brand/
Reputation
Customer
Satisfaction
Quality
Brand Perception (Recognition,
Credibility, Relevance, Influence)
Brand Value
Brand Advocates/Net Promoters
Customer Satisfaction Scores
Customer and Employee Referrals
Average Cycle Times
First-Call Resolution Rates
Product Review Ratings
Number of Support Requests
Customer Attrition/Churn Rates
Deactivation/Reactivation Costs
Loyalty Program Enrolled/Participating
Defect Rates
Average Customer Tenure
Adoption of New Products
Price Sensitivity
Purchase Frequency
Use of Multiple Channels
Average Order Size
The Measurable Benefits of Customer Experience Management
Tolerance of New Processes
Website Usability Benchmark
Social Network Participation, Likes Trust Rating
No. of Product or Service Upgrades No. of Repeat Orders
No. of Customers "Likely to Defect" No. of Customers Interacting
Mystery Shopper Scores
Delivery Timeliness and Accuracy
Product Return Rates
End-to-End Transaction TimesAccuracy of Inventory and Pricing
Timeliness
Competitive Benchmarks
Sentiment Scores
Key Issues
1. What is a customer experience, and how is its improvement measured?
2. Which projects will deliver the most positive customer experiences?
3. How is a strategy created to start to improve the customer experience?
4. Which technologies and vendors are best for customer experience management?
Seven Types of CustomerExperience Project
Disney
Nespresso
Southwest
Zappos
Nike
Garmin
BMW
Missha
Threadless
Giff Gaff
Argos
Clarks
Lego
UPS
Virgin Media
Whirlpool
Design the Experience
Benchmark usability and empathy
Digital design cool
Recruit Differently
Profiling the personalities
Balance teams
Recruit to brand
Stripped Down Simplification
One size fits all
Standardization and scale
Encourage Participation
Review and comparison
Communities
Social networks
Multichannel Availability
Multichannel integration
Device-independent interaction
Adapt in Real Time
Real-time rerouting
Analytical-driven process decisions
Start a Conversation
Expectations setting
Capturing intent
Manage dialogue
Brand Execution
Values and promise
Reputation
Communication
Make Clear the Responsibility
Governance and policing
Responsibility
Compensation and contracts
Customize Offers
Bundling product/service
Personal pricing
Demonstrate Trust
Honor privacy
Share data
Use only what you need
Share Answers
Knowledge management
Skills inventory
Better search
Redesign Processes
Quality controls
Trading efficiency and experience
Analyze Opinion
Value analysis
Market research
Segmentation
Propensity modeling
Have a Strategy
Executive enlightening
Ideal and real experiences
Program and project plans
Empower Employees
Education and training
Cultural values
Ownership of the experience
Personalize Products
Configure to order
Mass customization
New product development
More Accessible
Self-service
Track for customer
Add channels
Achieve Consistent Experiences
Single view of customer
Recognition
Find Moments of Truth
Process modeling
Identify the weakest link
Automate and escalate
Collect Feedback
Multichannel collection
Real-time alerts and actions
DesignBetter
AlterAttitudes
Get Personal
Open Up
Act as One
From Out to In
Listen, Think, Do
Key Issues
1. What is a customer experience, and how is its improvement measured?
2. Which projects will deliver the most positive customer experiences?
3. How is a strategy created to start to improve the customer experience?
4. Which technologies and vendors are best for customer experience management?
Know Your Starting Point for Customer Experience Management
+
-
£/$
1 2 3 4 5 6 7 8 9 10
Commitment/Investment
Couldn'tFeel
Worse
Neutral GoodCouldn't
Feel Better
Feels Feels
1. Get the Basics Right
3. Staying on Top
2. Moving Above
Average
FeelsBad
Source: Harding & Yorke
Re
turn
Pricing
Billing
Availability
Delivery
Build Quality
Returns
Repairs
Staying on Top: Head for Higher Levels of Customer Experience Maturity
Initial Developing Defined Managed Optimizing
Culture Change
Profit Parity
Execs Engaged
VOC Validated
Fragmented Focus
45%
30%
20%
4%
1%
• Customers don't forget. After the recession, those companies that did the right thing are rewarded. Those that kicked customers when they were down suffer.
• Seek out unhappiness. Dissatisfied customers that have their problems resolved are more loyal than those that never had a problem.
• Look outside your industry. If you've reached the top of your industry, look at others for inspiration. Invite them to share best practices.
Key Issues
1. What is a customer experience, and how is its improvement measured?
2. Which projects will deliver the most positive customer experiences?
3. How is a strategy created to start to improve the customer experience?
4. Which technologies and vendors are best for customer experience management?
Age and Gender Recognition and Suggestions on Japanese Vending Machines
Technologies Can Help in MultipleCustomer Experience Project Types
Design the Experience
Web analytics
Web design
Content mgmt.
Storefront
Recruit Differently
Recruitment
Induction
Community mgmt.
Stripped-Down Simplification
Order mgmt.
BPM modeling
Web design
Storefront
Encourage Participation
Review and comparison technologies
Community mgmt.
Social networking
Multichannel Availability
Application integration
Mobile technologies
ERMS, IVR, SMS
Adapt in Real Time
Business activity monitoring
Workflow
In-line, event-driven analysis
Start a Conversation
Dialogue management
ERMS
Search
Web service
Brand Execution
MRM
EMM
Content mgmt.
Community mgmt.
Make Clear the Responsibility
HCM, ICM
Employee contract management
QA monitoring
WFO
Customize Offers
Product configuration
Pricing mgmt.
PIM, content mgmt.
Product catalog
Order mgmt.
Demonstrate Trust
Data privacy
Security tools
Partner mgmt.
Share Answers
Knowledge management
Search
Web service
Content management
Redesign Processes
BPM modeling
Data mining
Workflow
Analyze Opinion Customer value Analytics
Data mining
Segmentation
Web analytics
Sentiment
Have a Strategy
Consultants
Advisors
Branding
Value analysts
Empower Employees
E-learning/LMS
WFO
Sales analytics
CSS analytics
Web analytics
Personalize Products
Product configuration
Pricing mgmt.
New product development
Storefront
More Accessible
Web service
Tracking
Field force optimization
Remote monitoring
ERMS
Achieve Consistent Experiences
MDM
BPM
ERMS
Find Moments of Truth
Data mining
Lead mgmt.
Segmentation
BI
WFO
Collect Feedback
EFM
Survey tools
Event analytics
BPM
QA monitoring
Social media monitoring
DesignBetter
AlterAttitudes
Get Personal
OpenUp
Act as One
From Out to In
Listen, Think, Do
There is No Customer Experience Market 100 Vendors in 100 Different Markets
CE Technology Matrices:Customer Service Applications
ModerateChallenging
Easier
Achieving ROI
Source: Balance Customer Experience With Customer Service Productivity in Customer Service Automation Initiatives, September 2011
Recommendations
STOP:
• Banging your head against a wall if your executive leadership are not really committed to it.
• Trying to do everything at once, focus on the biggest pain point for customers in one department in one business unit for six months.
• Making do with part time resources. Instead build the team. You need both a coordinating department at the head office, but also dotted line links to individuals in every department.
START:
• Finding the spark that is motivating executives — fear of humiliation or pride at leading the industry?
• Consolidating customer feedback sources and become the voice of the customer internally.
• By appointing a VP or head of Customer Experience.
• Inspiring, seek out stories, anecdotes, examples and case studies of what others have achieved, and mimic if achievable.
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Ed Thompson
Improving the Multichannel Customer Experience