© 2015 Catalyst

February 25, 2015

The Customer Experience

RevolutionDamir Saracevic, Director of Digital

Marketing

2

‘95 UR EE graduate

Cofounded Auragen

Communications in 1995,

sold to Catalyst in 2007

’09 Simon MBA

Director, Digital Marketing

@Catalyst

Leadership principles:

Excite

Energize

Guide

About Catalyst

3

#1 direct and digital marketing agency in

Greater Rochester

Catalyst combines Science + Soul to develop

more profitable customer relationships

Our approach yields deeper insights that

anticipate customers’ needs better

What Is Customer Experience

Wikipedia

6

Customer experience (CX) is the sum

of all experiences at various

touchpoints a customer has with a

supplier of goods and/or services,

over the duration of their relationship with that supplier. This can include

awareness, discovery, attraction,

interaction, purchase, use, cultivation

and advocacy.

Why It Matters

7

According to the Gartner Group, Inc.:By 2016, companies will compete primarily on the customer experiences they deliver

Leading customer experience is the #1 expectation CEOs

have of CMOs

It’s the area where CMOs have made the least amount of

progress

8

Good Customer Experiences Count

9

60% of shoppers

who excluded an

institution from

consideration did

so because of a bad experience or

hearing negative

things.

Which financial institutions would you NOT consider

banking with and why?

Source: Novarica © 2014 The Financial Brand

Bad Customer Experiences are

Shared …

10

… and Shared …

11

It’s All About the Customer

12

“There are only three ways a

company can grow. First, earn more

business from your current customers.

Second, attract customers from your competitors. Or third, buy another

company. If you can’t do the first,

what makes you think you can earn

more business from your competitors’ customers or from customers you buy

through acquisition?”

John Stumpf, chairman and CEO, Wells Fargo

Implications for Marketing

Implications for Marketing

14

Consumers are in the driver’s seat: More ways to engage and share content

More ways to opt out of traditional “push” channels

Marketing must evolve to meet customers’

expectations:Must shift from brand push to consumer pull

Must develop better data-driven customer intelligence

Must optimize customer experiences across every touch point and in real time

Implications for Marketing

15

Most organizations still struggling:Structured around channels, touch points, technologies or

features, not customer’s relationship with brand

Customer Journey

Forrester Research, Inc.

17

“Organizations that use

consumer intelligence to

drive business strategy and

customer engagement will

thrive in the age of the

customer.”

The Customer Journey

18

Also known as a Customer Experience Map

Research methodology that tells you what customers are

thinking, feeling and doing at each stage of the customer life cycle

First step to better customer understanding

Results in opportunities for more relevant communications, better customer relations, higher retention, and increased

customer value

Four Key Components

19

The journey – shows you what customers have

actually done

Qualitative online and offline research –

conversations with customers to gain insight

about what they are thinking and feeling

Four Key Components

20

Opportunities – gaps in the customer

experience that can be closed with improved

marketing and customer service

Guiding principles – these emerge as you

begin to understand your customer’s journey

Sample Customer Journey Map

21

Developing the Customer Journey

Customer Life Cycle

23

Looks at each stage of the customer life cycle

Process

24

Triggers,

touch points

and

channels

inventory

Look at the gaps in your touch point

inventory – are those opportunities?

Process

25

Triggers,

touch points

and

channels

inventory

Customer

research

(online

bulletin

boards)

Large geographic reach

Easier for customers to participate

Participants can remain

anonymous

Moderator can probe for clarification

No “group think” and bias

Immediate results

Process

26

Triggers,

touch points

and

channels

inventory

Customer

research

(online

bulletin

boards)

Special deals are sometimes put out there to attract new customers. I want

my bank to make special offers to me...to show they value my continued

relationship with the bank.

Linda C.

Talk to me to find out which accounts work best for me now...everyone wants to feel important no matter how much money

they have. But also, they want to be understood and valued as a customer.

Jessica F.

I want them to feel like they already know me. Not by a number.

Bill M.

Process

27

Triggers,

touch points

and

channels

inventory

Customer

research

(online

bulletin

boards)

Customer

experience

workshops

Include stakeholders who

can impact the final

customer experience

Workshop participants gain customer empathy

Process

28

Triggers,

touchpoints

and

channels

inventory

Customer

research

(online

bulletin

boards)

Develop

initial model

of customer

feelings

Customer

experience

workshops

Process

29

Triggers,

touchpoints

and

channels

inventory

Customer

research

(online

bulletin

boards)

Develop

initial model

of customer

feelings

Customer

experience

workshops

Complete

analysis of

customer

research

30

31

Who do my friends and family bank with?

How do I choose the best account for my needs?

Does the bank offer the services and technology I

need?

How close are the nearest branches and ATMs?

How do fees and rates compare to other

banks?

How big is the bank’s presence (local,

national, international)?

Does the bank take an interest in my community?

How helpful and knowledgeable are the

bank employees?

Will the bank help me grow and progress

financially?

32

Gaps Lead to Opportunities

33

Pinpoint opportunities for improvement:For each stage in the customer life cycle

Which customer segments?

What channel or touch point?

34

Customer Journey ImpactWhat the Bank Did to Improve

Using Data to Deliver Relevant

Communications

37

Personalized Onboarding

38

Systematic Customer Cross-Sell

39

What is best next product for customer?

Self-reported interests

Behavioral inference

Modeled fit

What offers has customer recently

received?

What are business priorities for

quarter?

What channels are cost effective?

Q1: HELOCCustomer told bank representative that he

wanted to consolidate debt and reduce

monthly payments

Q2: Money Market AccountCustomer has significant checking

balances and can earn more interest

Q3: World MasterCardGreat rewards card without a fee because

of PinnaclePlus checking account

Q4: Interest SurveyShow customer we care about their

needs, and use info for subsequent

targeting

Key Takeaways

Key Takeaways

41

1. Good customer experiences

matter

2. Bad customer experiences

impact the bottom line

Key Takeaways

42

3. Develop a customer experience map to

learn what customers are thinking, feeling

and doing at each stage of the life cycle

4. Use relevant, personalized communications

Key Takeaways

43

5. Put the customer’s needs first, not your

organization’s needs; CEO expects CMO to

lead this

6. Organizations who do all this will be

positioned for success. Organizations who

don’t are doomed to fail

Thank you!