This document discusses trends in customer experience management (CEM). It notes that while companies have invested in customer experience initiatives, metrics show most have not consistently improved experiences. The document also addresses how digital disruption, empowered consumers, and a shift to customer-managed relationships require companies to navigate a "dissonance gap" and adapt ongoing CEM processes. It emphasizes that CEM requires accepting business reality has fundamentally changed and acting accordingly.

1. Trends and Opportunities in
Customer Experience
Management
A Conversation with Univision
A conversation with Univision
October 22, 2013
EPiServer Update, Copenhagen
02 October 2014
@tim_walters

2. The DCG team Scott Liewehr
2"
Cathy McKnight
Tim Walters
Mary Laplante
Robert Rose
Jill Finger Gibson
Kyle Dover
Hollis Thomases
Chris Walter
Connie Moore
Marianne Kay
Tiffany Elliot
DCG helps business leaders navigate the
digital transformation and create competitive
advantage from disruption.

3. 3

4. June 28, 2007
4

5. 5

6. 6

7. The compression of time and space
7

8. 8

9. 9

10. 10

11. 11

12. 12

13. 13

14. 14

15. 15

16. Each improvement or innovation literally
compresses time and space by progressively
reducing the delay and/or the physical
distance (or activity) between the
expression and the satisfaction of a desire.
16
#epiupdateCPH|@9m_walters

17. ! Accelerated flow of information
! Democratized production of information
! Dissolved monopoly over information
The deformation of information
17
#epiupdateCPH|@9m_walters

18. “As the industrial revolution was defined by
radical efficiency in production, the digital
revolution is defined by radical efficiency in
information transmission”
- Mike Aruz
18

19. Twitter trumps condiments
19
Source:hEp://www.newmediaandmarke9ng.com/brandsLhaveLtoLmasterLcomplaintLmanagement/customerLcomplaintsL561

20. Only
20
1%
feeltheir
expecta9ons
forgood
customer
serviceare
alwaysmet
Source:HaarisInterac9vesurveyofNorthAmericanconsumers,2011.CommissionedbyRightNow.

21. Say they have switched business
to a competitor due to poor
customer experience
21
Source:HaarisInterac9vesurveyofNorthAmericanconsumers,2011.CommissionedbyRightNow.

22. Global executives say the cost of
not providing “positive, consistent,
and brand relevant experiences” is
20% of total revenue
22
Source:OkeeffeCompanysurveyof1,342seniorexecu9ves,2012.CommissionedbyOracle.

23. How much is at stake?
$5,900,000,000,000
($5.9 trillion)
Source:Accenture,2013GlobalConsumerPulseResearch.Photo:hEp:2/3/w ww.tLna9on.com/free_online_ar9cle/most_recent/
train_like_a_man_5_the_real_paleo_exercise

24. The only graphic you need
24
#epiupdateCPH|@9m_walters

25. #CEM isn’t the Next Big
Thing. It is the Next Only
Thing. #provocation
25
#epiupdateCPH|@9m_walters

26. What do consumers want from us?
26

27. Sources of consumer frustration
79% Companies“askingsameques9onsormarke9ng
sameoffer”acrosschannels
65% Inconsistentoffersorcontent
79% Companies“se^ngfalsepromises”
Source:AccentureGlobalConsumerPulseReport,2014. #epiupdateCPH|@9m_walters

28. of consumers are frustrated by site content
that has nothing to do with their interests
28
Source:HarrisInterac9vesurveyof2,091U.S.consumers,2013. #epiupdateCPH|@9m_walters

29. of consumers say that personalization
influences what they purchase – 25% say
the influence is “significant”
29
Source:VansonBournesurveyofUSconsumers,2013. #epiupdateCPH|@9m_walters

30. Consumers expect insight
30
Source:DynamicMarketsstudyforExperian,January2012.
“Understanding”
means, e.g.,
“taking account of
preferences,
purchase history,
and other provided
information.”
84% said they
would no longer
buy from a
company that
failed to
“understand.”
@9m_walters

31. We are anxious about
privacy . . . but we want
companies to offer relevant
experiences based on our
wants, needs, and tasks.
31
#epiupdateCPH|@9m_walters

32. Personalization isn’t about
getting personal. It’s
about being personable.
32
#epiupdateCPH|@9m_walters

33. The point of BIG DATA is not
to expose the consumer’s
every desire. It is to make
your responses less pathetic
and more empathetic.
33
#epiupdateCPH|@9m_walters

34. It’s very easy to be too
personal. But almost
impossible to be too
relevant
34
#epiupdateCPH|@9m_walters

35. #CEM means: Embracing
the shift from #CRM to
#CMR
35
Source:hEp://sapinsider.wispubs.com/Assets/Ar9cles/2014/January/SPI_Feature_FromLCRMLtoLtheLCustomerLManagedLRela9onship

36. #CMR=customer managed
relationships. (Thanks to
@collsdad)
36
Source:hEp://sapinsider.wispubs.com/Assets/Ar9cles/2014/January/SPI_Feature_FromLCRMLtoLtheLCustomerLManagedLRela9onship

37. Strategic inflections
37
Source:BasedonAndyGrove,OnlytheParanoidSurvive,1996
Status Quo
Strategic Inflection Point
New Paradigm
Old Paradigm
#epiupdateCPH|@9m_walters

38. “Strategic inflections can come from
anywhere: new technologies, new
competition, new regulations, new
customer values and habits, etc. – anything
that has a significant impact on the
business itself or the industry as a whole.”
– Andy Grove
38

39. ! Digital disruptions
! Era of empowered consumers
! Basic shift in the business environment
! Impacts every firm, regardless of industry
Impact:Failuretoprovide
superiorcustomerexperiences
leadstoirrelevanceandbusiness
CEM is a “fundamental” SI
39
Source:BasedonAndyGrove,OnlytheParanoidSurvive,1996
Status Quo
Strategic Inflection Point
New Paradigm
Old Paradigm
decline

40. 40

41. Answer: You suck
! In Forrester’s 2014 CX Index, 11% of companies
received a top grade
! Accenture surveyed over 13,000 consumers in 33
countries about 10 industries
– Despite investments and initiatives, no CX metric
“has improved consistently in the past five years.”
– All metrics “lost ground in 2013”
– Companies “have been playing not to lose”
41
Source:AccentureGlobalConsumerPulseReport,2014.hEp://blogs.hbr.org/2013/06/newLresearchLyoureLdoingLcusto/

42. New Paradigm
Dissonance Gap
“Dissonance gap”
42
Source:BasedonAndyGrove,OnlytheParanoidSurvive,1996
Status Quo
#epiupdateCPH|@9m_walters

43. #CEM means: Navigating
the “dissonance gap.”
Time is running out..
43
#epiupdateCPH|@9m_walters

44. You can’t do it alone.
44
Source:hEp://silenceLwithout.blogspot.de/2010_12_01_archive.html

45. “CEM is so new, hard, and
complex that nearly all
organizations must draw on
third-party service providers to
provide or supplement skills in
research, strategy, design,
technology, operations, and
much more.
In short, service provider
partners increasingly provide
an indispensable ingredient in
any CEM endeavor.”
45 @9m_walters

46. It’s more than implementation
The “Three I’s” turn software into a solution
! Implementation
! Integration
! Incorporation into ongoing CEM
processes
#epiupdateCPH|@9m_walters

47. 47

48. By 2020, consumers will
favor “nearly perfect
execution” of “unified
omnichannel experiences”
- PwC
48
Source:hEp://www.pwc.com/us/en/retailLconsumer/publica9ons/retailingL2020.jhtml #epiupdateCPH|@9m_walters

49. But . . . Marketers should
avoid chasing the latest cool
touchpoint, or trying to pull
a fully mature omnichannel
rabbit out of a siloed hat.
49
Source:hEp://www.pwc.com/us/en/retailLconsumer/publica9ons/retailingL2020.jhtml #epiupdateCPH|@9m_walters

50. Time
50
Customer Experience
Quality
Improve today’s
experience
Transform the
organization
Sustain cultural
change
Customer-focused transformation
#epiupdateCPH|@9m_walters

51. The #CEM Imperative:
Accepting that business
fundamentally
reality has changed. (And
acting like it.)
51
forever
#epiupdateCPH|@9m_walters

52. What it means
! Firms must act now: Consumers expect rich experiences
today, and they are growing ever less tolerant of deficient
engagement – and of disengaged brands.
! Resistance is futile – but pervasive . . . and fatal: If you wait
for best practice to emerge, you won’t need them. New ways
of working – among clients, vendors, and other service
providers – are unavoidable and advantageous.
! CEM is not design-build-deliver. Consumer expectations are
insatiable. Change is the only constant. Unpredictability is the
only reliable forecast. Adaptability is the only sensible five
year plan.
52 @9m_walters

53. 53
“You may hate gravity, but
gravity does not care.”
-- Clayton Christensen

54. Tim Walters | Partner, Principal Analyst
@tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com