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Weave study 2013  - The state of customer experience management in Belgium
 

Weave study 2013 - The state of customer experience management in Belgium

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This study provides a framework to help companies to connect with their customers. It also gives a state of the art of customer experience management for Belgium companies.

This study provides a framework to help companies to connect with their customers. It also gives a state of the art of customer experience management for Belgium companies.

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    Weave study 2013  - The state of customer experience management in Belgium Weave study 2013 - The state of customer experience management in Belgium Document Transcript

    • ForewordIn an increasingly competitive business place charac- munication and co-ordinated processes to deliver on cus-terised by cut-throat competition and increasingly de- tomer needs and failure to offer a holistic customer expe-manding and more empowered customers, service firms rience in an integrated multichannel system.are finding it difficult to gain a sustainable competitive ad-vantage that will help them not just retain their existing It is also interesting to note that, while service providerscustomers but also do this in a more cost-efficient manner. can pull their act together and organise themselves to pro-It is important to note that, while retaining customers is al- vide a good customer experience, they are still faced withways a good thing to curb customer churn, maintain mar- customers who do not see the complex web of organisa-ket share and have a guaranteed source of future income, tions and processes that operate behind the scenes to de-firms that manage to satisfy their customers consistently liver their experiences. They see interactions, coloured bywill also reap the benefits of having their loyal customers their expectations, emotions and their alternatives. Thus,become customer advocates who, in turn, will help attract managing the expectations of the customers while rallyingnew customers through positive word of mouth. A review the whole organisation to deliver on these customer ex-of the business practices of some of the most successful pectations becomes the rather challenging job of the busi-and profitable service providers invariably reveals a con- ness leader charged with the task of delivering a greatsistent pattern: the ability of these firms to consistently de- customer experience.liver a holistic customer experience. If top executives need to understand their customers andWhile the benefits of delivering a good customer experi- urge their subordinates/colleagues to deliver a good ex-ence have been documented in various academic and perience, a logical framework that accounts for both thebusiness publications, the roadmap for delivering excel- strategic aspect of customer experience and the imple-lent customer experience in a cost-efficient manner has mentation process of customer experience needs to beseldom been explored. This means that, despite the im- explored. Once this framework is established, a baselineportance of delivering a good customer experience, many of the current performance by service providers on cus-service providers fail to tap into the huge potential that de- tomer experience needs to consider which further actionslivering a good customer experience can harness. need to be taken to improve customer experience.Various reasons can be posited for a service provider’s I am convinced that the framework that has been devel-failure to understand the dynamics involved in delivering oped in the context of this research study is a sound onean excellent customer experience. Some of these include and will serve as a solid foundation for executives inter-lack of top management support for customer experience ested in capitalising on all the benefits of delivering a greatinitiatives, a silo mentality that exists within an organisation customer experience.that prevents different internal departments from deliveringa seamless customer experience, failure to accurately un- Prof. Dr. Deva Rangarajan, Vlerick Business Schoolderstand customer segment needs, lack of internal com- Weave study 2013 - The state of customer experience management in Belgium 2
    • “ Lack of knowledge of customer experience concepts is seen as a major deterrent by service providers for the development of ” efficient customer experience management
    • ExecutiveCustomer experience management performance leaves a study reveals that only 8% of companies efficiently uselot to be desired! the collected customer insights to define and enhanceOur study shows that customer experience, though recog- customer experience management;nised as strategically important by companies, is not suc- • Companies need to engage the whole organisation andcessfully managed within them. the employees in particular to create a great experience:• 83% of companies consider that customer experience some useful levers to improve customer experience are has an important place in their strategy; completely unexploited by companies:• 54% of companies consider that their customer experi- > 4% of companies rate as excellent or close to excel- ence management performance is not satisfactory. lent the development and implementation of new None of the interviewed companies rate their perform- technologies to improve the customer experience; ance as excellent or close to excellent. > 8% of companies consider that they successfully offer a new/improved value proposition linked to the cus-Lack of knowledge of customer experience concepts is tomer experience vision;seen as a major deterrent by service providers for the de- > 21% of companies successfully engage employeesvelopment of efficient customer experience management to become more customer-centric and deliver an im-The evaluation of companies’ performance on the 10 di- proved customer experience;mensions of the weave Customer Experience Framework > 25% of companies consistently enhance their organ-reveals that: isation or optimise operations and processes.• Companies fail to implement an efficient customer ex- • Companies must understand the customer experience perience management programme: only 12% of com- economics to build the business case for change: only panies have adequately developed a customer 17% of companies successfully measure the impacts of experience management programme; the customer experience management programme on• Companies must define and disseminate across the customer satisfaction and only 13% of companies suc- company a well-articulated customer experience vision: cessfully track the effectiveness of customer experience only 29% of companies have developed a concrete cus- management actions on business performance. Exec- tomer experience vision, and only 13% of companies utives consistently use the customer experience meas- consider that their vision is adequately shared across ures to make investment decisions in only 4% of the company and merely 21% of companies claim to companies. have it satisfactorily translated into strategic objectives;• Senior executives must play their roles in improving cus- There is a substantial difference in customer experience tomer experience: our study reveals that, though cus- maturity levels across the different sectors in our sample tomer experience is high on the agenda of the top Based on the evaluations shared by the respondents management for 42% of the companies (9 or 10 on a about their company’s performance and maturity on each scale of 1 to 10), senior executives are struggling to lead dimension of the weave Customer Experience Manage- concrete customer experience actions, give guidelines ment Framework, the Customer Experience Management and communicate about customer experience within Index (CEMI) calculates an overall score reflecting the gen- their company; eral level of customer experience management maturity.• Companies must define a clear customer experience Indexes are reported on a 0 to 100 scale. strategy only 21% of companies have a clearly defined The CEMI scores show significant differences between the customer experience management strategy, and simul- industries included in the study: taneously 3 out of 4 companies fail to manage and inte- • The transportation industry is by far the best performing grate the customer experience dimensions such as industry in terms of customer experience management products, customer segments, channels, customer life- with a global score of 77.5; cycle, moments of truth and customer touchpoints (see • The telecommunications industry comes second with a weave Customer Experience Management Framework); global score of 74.2;• Companies should better examine the experience from • The energy and retail banking industries lag significantly the customer’s point of view, and use that perspective behind the 2 others industries with scores of 65.8 and to make improvements and manage the experience: our 64.7 respectively. Weave study 2013 - The state of customer experience management in Belgium 4
    • AboutThe objective of this study is to assess the level of maturity In order to assess the performance of customer experi-and the efficiency of customer experience management ence management in companies, we have developed afor the top companies on the Belgian market. questionnaire based on the weave Customer Experience Management Framework. This framework helps compa-In order to ensure the pertinence and the viability of our nies define, prioritise and implement an effective customerapproach and the framework used (cf. weave Customer experience management programme.Experience Management Framework), a neutral expert-Prof. Deva Rangarajan from the Vlerick Business School Our questionnaire asked executives to assess the key el-was consulted. ements of the 10 dimensions of the weave Customer Ex- perience Management Framework inside their company.This first edition of the study covers Although the assessment of the companies’ customer ex-four different industries: perience is based on a limited number of respondents per• Energy company, it nevertheless allows us to undertake an analy-• Retail Banking sis and to establish trends on the general level of customer• Telecommunications experience performance and maturity in these 4 indus-• Transportation tries.The report is based on the results of a quantitative survey The respondents were asked to assess their company’sconducted among senior executives and/or middle-man- customer experience on a scale from 1 to 10. We haveagers in charge, directly or indirectly, of customer experi- considered 9 and 10 as excellent, 7 and 8 as neutral andence in their companies. This survey was conducted 1 to 6 as not satisfactory.between September 2012 and January 2013. The quanti-tative research was implemented using an online ques-tionnaire and a total of 34 respondents from 24 differentcompanies were included in the research study. All thesecompanies are key players in their industry. Weave study 2013 - The state of customer experience management in Belgium 6
    • “ A customer experience management strategy is the process of understanding and managing the customer’s interactions and perceptions ” with the company
    • The weaveManagement FrameworkThe customer experience refers to the quality and nature Weave has developed a framework to help companiesof interactions between a company and its customers. The craft a customer experience management strategy and tocustomer experience is the result of the interactions be- align it with the company’s overall strategy and brand at-tween an organisation and a customer, as perceived tributes.through a customer’s conscious and subconscious mind.The customer experience, therefore, is a combination of Our framework and its 10 core dimensions allow a suc-the organisation’s rational performance and the irrational cessful and pragmatic customer experience strategy andemotions evoked across all customer touchpoints. provide the blueprint to design, deliver, manage, and measure the intended customer experience.A customer experience management strategy is theprocess of understanding and managing the customer’sinteractions and perceptions with the company. The im-plementation of an effective customer experience man-agement strategy allows companies to develop acompany culture focused on delivering an excellent cus-tomer experience in order to build customer-based brandequity and long-term profitability. Weave study 2013 - The state of customer experience management in Belgium 8
    • The weave Customer Experience Management Framework C le us yc to ec m Lif er Cu er Tou s tom to cts chp me Cus du rS oints Pro egm Customer ents Experience Strategy C h a n n els 3 M o m en ts of Truth CE Implementation Levers Customer Voice of the Customer PeopleExperience Vision Customer Organisation Experience ROI Value proposition Operations 1 2 Technology 4 5
    • 3Customer Experience Vision Customer Interactions, Touchpoints and Mo-A customer experience vision positions the im- mentsportance of the customer (experience) within To develop an effective customer experienceand outside the company. It gives a high-level strategy, companies need to strive for strongdescription of what and how the organisation performance in 6 core customer experienceintends to achieve in its interactions with its competences: 1) products, 2) customer seg-customers. ments, 3) channels, 4) moments of truth and 5) customer touchpoints.The definition of a customer experience visionshould be taken as the starting point to design Hence, it is broader than touchpoints anda customer experience programme. The cus- deeper than user experiences. it requires a trulytomer experience vision should drive the whole holistic approach.customer experience management process,from customer experience strategy definition toimplementation and return-on-investments. Customer Experience Implementation Levers Delivering a remarkable customer experienceOn the one hand, the customer experience vi- requires the mobilisation and alignment of thesion must serve as guiding principles in the whole organisation, starting from defining a dif-thinking process and ensure coherent deci- ferentiated customer value proposition throughsions-making. On the other hand, the purpose to engaging the people, optimising theis to leave the “how vague” in order to ensure a processes and using the right technology.wide clarification by the organisation. Linking Customer Experience ROIVoice of the Customer Companies are always looking for ways to bet-The Voice of the Customer describes the cus- ter understand the connection between cus-tomers’ needs, expectations and preferences, tomer experience and business performance.which a company can capture through direct The ROI of customer experience shows thatand indirect ways. customer experience is highly correlated to loy- alty, retention and satisfaction.Meeting customer needs requires that thoseneeds are collected, understood, analysed and Appropriate measures of the customer experi-translated into actions. A customer experience ence management performance should allowstrategy cannot be defined without a deep un- companies to demonstrate the positive ROI ofderstanding of the customer needs. This dimen- their customer experience actions and makesion is incredibly challenging for companies good decisions in order to enhance their cus-since listening to and understanding the lan- tomer experience managementguage of the customer requires the companiesto place themselves in the customer’s shoes.An efficient Voice of the Customer programmehelps executives to define the best customerexperience strategy and actions that will meetcustomers expectations. Weave study 2013 - The state of customer experience management in Belgium 10
    • “ The respondent companies are struggling to implement an efficient customer experience ” management programme
    • Are companies creatingfor their customers? Without defining and implementing an efficient customer experience pro- gramme, companies will continue to struggle to create a “wow” experience and to satisfy, retain and co-create value for their customers While 83% of the companies recognise the importance of delivering an outstanding customer expe- rience, 100% rate their performance as not satisfactory or neutral (see figure 1 and 2). Figure 1 - Importance of Customer Experience Figure 2 - Performance against Customer Expe- On a scale of 1 to 10, how would you rate the im- rience Management portance of delivering an outstanding customer ex- On a scale of 1 to 10, how would you rate the per- perience in your companys strategy? formance of your company against customer ex- perience management? 4% 46% 13% 54% 83% Moreover, the results of the study reveal that the respondent companies are struggling to implement an efficient customer experience management programme. 46% of companies consider the imple- mentation of a customer experience management programme in their company as not satisfactory while only 12% of companies consider it as successful (9 or 10 on a scale of 1 to 10) (see figure 3). Figure 3 - Implementation of a Customer Experience Management Programme To what extent has your company implemented a customer experience management programme (on a scale of 1 to 10)? 12% 46% ≤6 7&8 42% 9 & 10 Weave study 2013 - The state of customer experience management in Belgium 12
    • Companies must define and disseminate across the company a well-ar-ticulated customer experience vision, with buy-in from all stakeholdersOnly 29% of companies have developed a concrete customer experience vision, only 13% considerthat their vision is adequately shared across the company and merely 21% of companies claim tohave it satisfactorily translated into strategic objectives (see figure 4).Figure 4 - Customer Experience VisionRegarding the definition of a customer experience vision in your company, please evaluate the followingstatements (on a scale of 1 to 10) : Your company has a concrete 25% 46% 29% customer experience vision Your company has a brand promise 29% 50% 21% reflecting customer experience The customer experience vision is shared within the 29% 58% 13% entire company The customer experience vision is translated in strategic objectives 33% 46% 21%While senior executives recognise the importance of customer experience, they fail to translate it intoconcrete operational actions and behaviours.Though customer experience is high on the agenda of the top management for 42% of the companies(9 or 10 on a scale of 1 to 10), many senior executives are struggling to lead concrete customer ex-perience actions, give guidelines and communicate about customer experience within their company.Results show that senior executives are struggling in particular to communicate a shared image ofthe ideal customer experience they want to deliver. Hence, executives manage to consistently com-municate this shared image in only 17% of companies while they do not convincingly communicateit in close to 1 out of 2 of companies (see figure 5).Figure 5 – Roles of Senior Executives in Improving Customer Experience ManagementRegarding the role of your companys executives in improving customer experience management, pleaseevaluate the following statements (on a scale of 1 to 10) : A senior executive is leading customer experience efforts within your company 25% 38% 37% Executives define guiding principles for customer experience actions 29% 46% 25% Executives consistently communicate about the importance of the customer experience management 33% 38% 29% Executives consistently communicate a shared image of the ideal customer experience to offer to the customers 46% 37% 17% Customer experience is a recurring agenda item for the top management 37% 21% 42% ≤6 7&8 9 & 10
    • Companies especially fail to effectively integrate the customer segmentsand the customer lifecycle dimensions into their customer experiencestrategyOnly 21% of companies have a clearly defined customer experience management strategy, and, atthe same time, 3 out of 4 companies fail to manage and integrate customer experience dimensionssuch as products, segments, channels, customer lifecycle, moments of truth and customer touch-points (see weave Customer Experience Management Framework).Indeed, only 8% of companies say they are consistently integrating products into the prioritisationand definition of the customer experience actions. Only 13% of companies consider that they are ad-equately integrating customer segments, channels and customer lifecycle. Barely 1 out of 4 compa-nies rate as excellent the integration of moments of truth and customer touchpoints (see figure 7).Figure 6 – Customer Experience Management StrategyTo what extent has your company a clearly defined customer experience management strategy (on a scale of1 to 10)? 21% 25% 54%Figure 7 – Integration of the Key Customer Experience DimensionsTo what extent does your company integrate the following dimensions into the definition and prioritisation ofthe customer experience management programme? (on a scale of 1 to 10) 38% 54% 8 Products % Customer segments 41% 46% 13% Customer lifecycle 46% 41% 13% Channels 33% 54% 13% Moments of truth 38% 37% 25% Customer touch points 25% 50% 25% ≤6 7&8 9 & 10 Weave study 2013 - The state of customer experience management in Belgium 14
    • “ A shift is required ” in the organisation’s DNA
    • A shift is required in the organisation’s DNA to better examine the experi-ence from the customer’s point of view, and to use that perspective tomake improvements and manage the experienceThough 1 out of 2 companies have very satisfactorily implemented a VOC programme, our study re-veals that only 8% of companies efficiently use the collected customer insights to define and enhancecustomer experience management.Figure 8 - Formalised Programme Figure 9 - Use of the Collectedto Collect VOC On a scale of 1 to 10, to what extent is your com-On a scale of 1 to 10, to what extent does your pany efficiently using the collected customer in-company have a formalised programme in place to sights to define and enhance the customercollect the Voice of the Customer? experience management programme? 50% 8% 33% 33% 17% 59%Moreover, several improvement opportunities remain for the respondent companies in terms of po-tential sources/means to collect the Voice of the Customer. The results reveal that, with the exceptionof the customer complaints that are used by 83% of companies, all the other potential sources ofVOC, such as social media, voice of the employees, CRM, user groups/ advisory boards or all influ-encers in the buying decision process could be more efficiently exploited by at least 79% of compa-nies (see figure 10).Figure 10 – Use of the Different Sources to Collect the VOCTo what extent does your company use the following sources/means to collect the Voice of the Customer? Customer communities/forum/social media 37% 42% 21% CRM 46% 42% 12% Customer data analysis 42% 42% 16% Users groups/advisory board 63% 29% 8 % Customers complaints 17% 37% 46% All influencers in the buying 67% 21% 12% decision process Front line employees observations 50% 38% 12% ≤6 7&8 9 & 10 Weave study 2013 - The state of customer experience management in Belgium 16
    • Companies need to engage the whole organisation and specifically theemployees to create a great experienceThe results show that some useful levers to improve customer experience are unexploited by com-panies. Indeed, only 4% of companies rate as excellent or close to excellent the development andimplementation of new technologies to improve the customer experience. Only 8% of companiesconsider they successfully offer a new/improved value proposition linked to the customer experiencevision.A somewhat higher but still very limited proportion of companies consistently enhance their organi-sation (25%), optimise operations and processes (25%) or engage employees (21%) to become morecustomer-centric and deliver an improved customer experience.Figure 11 – Customer Experience LeversRegarding the efforts your company is making to deliver the best customer experience, please evaluate the useof the following levers to improve customer experience (on a scale of 1 to 10) Develop and implement new technologies to improve 50% 46% 4 % the customer experience Optimise operations and processes which support 21% 54% 25% the delivery of the best experience to your customers Offer a new/improved value proposition linked to the 8 34% 58% % customer experience vision Enhance the organisation of the company to become 29% 46% 25% more customer-centric Engage employees to deliver an outstanding custo- 37% 42% 21% mer experience ≤6 7&8 9 & 10
    • Understanding the customer experience economics allows companies tobuild the business case for change; customer experience directly impactsyour bottom lineOur study reveals that only 1 company out of 5 manages to appropriately understand and measurethe customer experience business case.Indeed, on the one hand, 83% of companies say that they measure the performance of their customerexperience management programme, although only 17% of companies consider that they success-fully measure this performance (9 or 10 on a scale of 1 to 10).On the other hand, while 38% of companies have adequately developed metrics to measure customerexperience management performance, only 17% of companies successfully measure the impacts ofthe customer experience management programme on customer satisfaction and only 13% of com-panies successfully track the effectiveness of customer experience management actions on businessperformance.The results show as well that, for 50% of companies, customer experience management is not sat-isfactorily integrated into the general performance management of the organisation.Since customer experience is not satisfactorily integrated into the performance management of com-panies and only few of them successfully track the impacts of customer experience management oncustomer satisfaction and business performance, it is not surprising to see that executives use thecustomer experience measures to make investment decisions in only 4% of companies.Figure 12 – Measurement of the Customer Experience Management PerformanceRegarding the measurement of your companys performance in the field of customer experience management,please evaluate the following statements (on a scale of 1 to 10) Your company measure the performance of the custo- mer experience management programme 17% 66% 17% Your company has developed metrics to measure the customer experience management performance 33% 29% 38% Your company measures the impacts of the customer experience management programme on the customer 29% 54% 17% satisfaction Your company tracks the effectiveness of customer expe- 37% 50% 13% rience management actions on the business performance Executives use these measures to make investment 4 décisions 58% 38% % ≤6 7&8 9 & 10 Weave study 2013 - The state of customer experience management in Belgium 18
    • Customer Experienceand industry comparison Based on its framework, weave has developed a Customer Experience Management Index (CEMI). This index is based on the evaluations shared by the respondents about their company’s performance and maturity on each dimension of the weave Customer Experience Management Framework. The CEMI gives an overall score reflecting the general level of customer experience management maturity and performance. Indexes are reported on a 0 to 100 scale. Figure 13: The 2013 Customer Experience Management Index ona l il Reta ing om rta- Nati el rgy Tele c spo CEMI Dimensions Ene k Tran on lev ban ti Customer Experience 14,0 12,1 12,3 14,9 16,7 Vision (../20) Voice of the 13,1 10,9 13,3 13,4 15,1 Customer (../20) Customer Experience 14,0 13,0 12,8 14,9 15,2 Strategy and Design (../20) CE Implementation 14,1 13,8 13,0 15,2 14,4 Levers (../20) Customer Experience ROI 15,1 15,0 13,3 15,8 16,2 (../20) Customer Experience 70,3 64,8 64,7 74,2 77,5 Management Index (../100)
    • The scores show significant variances between the differ- The scores of the retail banking industry on the differentent industries included in the study. The transportation in- CEMI dimensions are relatively homogeneous. The retaildustry is by far the best performing industry with a global banking industry is not outperforming on a particular di-score of 77.5. The telecommunications industry comes mension. However, retail banks score particularly low onsecond with a global score of 74.2. The retail banking and the Customer Experience Vision dimension and obtain byenergy industries lag significantly behind the 2 others in- far the lowest scores on the CE Implementation Leversdustries (see figure 13). and Customer Experience ROI dimensions.The scores by dimension confirm the four industries’ dif- The telecommunications industry’s performance is alsoferent positions towards customer experience manage- homogeneous on the different customer experience di-ment. Indeed, the transportation industry scores the mensions, with scores of around 15, except on the Voicehighest on 5 out of 6 dimensions of the CEMI model. It is of the Customer dimension. Indeed, the telecommunica-the telecommunications industry that scores the highest tions industry only obtains a score of 13.3 on this dimen-on the Customer Experience Implementation Levers di- sion.mension. The transportation industry clearly outperforms the otherThe energy industry obtains particularly low scores on industries on the Customer Experience Vision and Voicethree dimensions: the Customer Experience Vision, the of the Customer dimensions. However, its score on the CEVoice of the Customer and the Customer Interactions, Implementation Levers is far below its average score.Touchpoints and Moments. However, the score of the en-ergy industry is relatively high on the Customer ExperienceROI dimension. Weave study 2013 - The state of customer experience management in Belgium 20
    • ConclusionDespite, or thanks to, the challenging economy, which is • Define a concrete customer experience strategy and de-putting strong cost pressure on consumer companies, sign the customer experience consistently integratingcompanies are convinced of the importance and the com- the products/services, segments, channels, customerpetitive advantage of designing and implementing a prag- lifecycle, customer touchpoints and moments of truth;matic customer experience strategy. Customer • Engage the whole organisation and specifically the em-satisfaction, loyalty and retention are valuable assets for ployees to create a great experience;any company. • Understand the customer experience economics in order to build the “experience” business case.Paradoxically, companies are struggling to define, design,measure, implement and manage a customer experience Though the business community, doubtlessly and increas-strategy that will generate value for their customers. They ingly, recognises the criticalness and power of deliveringfail to deliver the expected customer experience and rela- a holistic customer experience, most companies have nottionship. successfully embraced it. This is because becoming a customer experience-driven organisation is a global trans-Completely transforming how you interact with customers formation and process, one that requires fundamentalis a larger, more complex task than simply optimising shifts in how business behaves and is organised. We hopechannels to work better in concert. In order to understand that this study will help companies understand how theythe cross-channel journey customers undertake, compa- can better orchestrate existing elements to realise newnies need to adopt a holistic approach. values, and to better connect to their customers needs and wants.The weave Customer Experience Framework will eventu-ally help your company define your customer experiencestrategy to connect with your customers.Companies should increase their efforts on all 10 dimen-sions of the weave customer experience framework tobetter manage the total customer experience, and specif-ically:• Define and disseminate across the company a well-ar- ticulated customer experience vision, with buy-in from all stakeholders;• Examine the experience from the customer’s point of view, and use that perspective to make improvements and manage the experience;
    • “ Define and disseminate a well-articulated customer experience vision Examine the experience from a customer’s point of view Define a concrete customer experience strategy Engage the whole organisation Understand ” the customer experience economics
    • ContactsAuthor of the study:Weave BelgiumAcademic Expert:Vlerick Business School