Trends and challenges facing business and talent in the Age of the Customer. Background for panel discussion with HR leaders from five customer-centric firms. St. Louis Oct 15.

1. St. Louis · October 15, 2014

2. Our Focus Today
• Economy? Customer-Centered Economy?
• Why is this important?
• What challenges do businesses face?
• How are they responding?
• What is most important asset for business?
• Are there opportunities for career-seekers?
• How does the future look?

3. Economy
The network of
businesses and people
that make, distribute,
market, sell, and buy
goods and services in a
local, regional, or
national community.
Adapted, Business Dictionary

4. Economies have changed over time
• The Agrarian Age
Farming, mining, working the land
• The Industrial Age
Factories and the things they made
• The Transportation Age
Highways, roads, distribution systems – coast to coast
• The Information Age
Computer technology everywhere – around the globe

5. Today is the Age of the Customer
Attracting, engaging, retaining customers in a competitive market

6. The Customer-Centered Economy
“To be truly competitive, your company must
become customer obsessed, which means you
need to have deep knowledge of and engagement
with your customers.”
Forrester, a global advisory firm to business
Why?

7. What customers spend is 70% national GDP

8. Customer satisfaction impacts biz growth
43% of U.S. CEOs are concerned
that shifts in consumer spending
could threaten growth of their
company PwC
10% increase in customer retention
= 30% increase in company value
Bain and Co.

9. Attracting, retaining customers is a challenge

10. 1. Customers are more diverse than ever
• All ages, from pre-teens to seniors
• Different budgets: high-end to low
• Different lifestyle preferences
• Different cultural, ethnic, international
backgrounds and languages
• Some want ‘green’ products and services
• Some are health and diet conscious
• Some want things right away, others ponder

11. 2. Customers have high expectations
• Four levels of service: basic, expected,
desired, and WOW.
• Customized products and services give
customers what they want, ‘my way.’
• “Participatory commerce” brings customers
into design, product development,
marketing.

12. 3. Social media gives customers power
• Traditional marketing techniques have been
up-ended.
• Smartphone videos and photos put the
message in the hands of customers.
• Twitter, Facebook, Yelp, TripAdvisor,
GooglePlaces, Instagram, company websites
give customers a megaphone.
• 60% consult a customer review forum prior to
making a purchase.
• 70% listen to family or friends.

13. 4. A bad experience can be bad
• Customers can easily shop around.
• Two-thirds of customers surveyed took their
business elsewhere because of poor service.
Accenture
• It costs 5 to 10 times more to acquire a new
customer than to keep an existing one.
Restaurant Business Online
• Customers want to be able to trust. One bad
apple can make it harder on others.

14. How are companies responding?
Nine out of ten are
strengthening their
customer / client
engagement
programs.
PricewaterhouseCoopers

15. They’re taking new products and services...

16. Offering customers many shopping choices
• Bricks and mortar stores, hotels, restaurants
• Home delivery – just in time
• Personalized service
• Online advertising, reservations, shopping
More use mobile devices vs desktop, laptop
• Omnichannel experiences
74% of customers use more than one
channel when making a purchase
• Pay with mobile device instead of paper, plastic

17. Getting ahead with the Internet of Things

18. And other new technologies, like RFID

19. The most important business asset is people

20. People who are enthusiastic and
knowledgeable about customer service

21. People who can ride the ups and downs
of the customer-centered economy

22. People who are ....
• Sociable
• Confident

23. And ...
• Flexible
• Hard working

24. And ...
• Good listeners
• Empathetic

25. And ...
• Thorough
• Good communicators

26. And ...
• Team players
• Problem-solvers

27. CEOS say these skills shine in the workplace
from an interview for Forbes
“I look to see if the person behind the counter
looks me in the eye, smiles, and says ‘good
morning’ or ‘good afternoon.’”
“I would say attitude and integrity are the most
important.”
“I think empathy and a drive for excellence.”

28. CEOs say...
“I love people who are just unwilling to stop
until it’s right, whatever it is; they don’t stop
until it’s right.”
“We strive to make our guests feel not just
important, but genuinely welcome.”
In other words, these business leaders want to
make sure that customers are at the center of
what their employees do.

29. Do St. Louis employers need such people?

30. In the St. Louis Labor Market Region...
• Retail salespersons, wholesale sales reps,
customer service representatives, and food
servers are among the top five occupations
for entry-level work.
• There were nearly 3,200 openings for these
occupations in the area in June – July 2014.

31. Are these dead-end jobs?
No, these can be career-launching jobs!
An entry-level customer service representative
may make $20,100 per year. With experience
and time on the job, that customer service rep
may earn $37,400 a year.
The skills needed for entry-level customer
service provide a solid foundation for many
other career fields.

32. How does the
future look?
• Bright
• Hands-on
• Tech-savvy
• Dynamic
• Within our reach

33. St. Louis · October 15, 2014