What it takes to keep
customers coming back
Jeremy Cox
Jeremy.cox@ovum.com
@jeremycoxcrm
October 8th 2013

1

© Copyright ...
Agenda




Answer the question



Pilot research findings – current maturity levels



2

What question should every o...
What question should every
organisation answer?

3

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Where will we be in 5 - 10 years time perhaps?
• 87% companies from1955
Fortune 500 list have
gone bankrupt.
Source: S.Den...
The future of a commercial organisation is assured only
if it can maintain its relevance to its customers

5

© Copyright ...
We all have to answer the same question:

How can we remain persistently
relevant to our customers?

6

© Copyright Ovum. ...
Today it’s even more challenging…..

7

Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013

...
What should we do?

8

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Answer the question

9

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
What attributes do we need?
Visionary
leadership
Architected
Engaged

Collaborative

Connected

Insightful
Innovative

Pos...
Examples leading Organizations displaying customeradaptive attributes

+

+

=

+

+

=

+

=

+

60,000

All display the ...
Pilot research findings

12

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Organization & respondent segmentation
Organization Size US$ Millions

Sectors represented
11%

>500
30%

< 50
38%

>50 - ...
The top 5% are doing well but the majority of
organisations are at risk
100
90

Breakthrough

80
70
60
50
40
30
20
10
0
Le...
Organizations are largely disconnected from their
customers, putting their futures at risk
Critical areas of weakness iden...
Decision cycles are too slow
Leadership attributes
Customer Vision articulated
Use
continuous
planning

Provides
sense of
...
Workforce engagement levels need attention
Workforce engagement
Engaged workforce

Personal
growth
encouraged

High
satisf...
More determined ESN adoption required
Collaboration

Enterprise-wide ESN

Ideas
encouraged

Customer
communities

Positive...
Majority of organizations are flying blind
Sensing capabilities

Monitor customer environment

Easy
access to
intelligence...
Organizations deliver fragmented experience
Customer experience (CX)

Mapped customer journeys

Analytics to
inform
intera...
Organizations too reliant on luck
Innovation management

Collaborate with partners

Seen as
innovators

Workforce
contribu...
Recommendations

22

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Integrated CRM provides a solid foundation for CX
which in turn provides the same for CAE

Point solution

Integrated
CRM
...
So consider where your organisation is today and
aim for the next stage

Transactional

Stage 2
integrated
with backoffice...
Then develop your roadmap to move forward towards
your customer-centric vision

25

© Copyright Ovum. All rights reserved....
Recommendations from customer-adaptive maturity
research findings: 1
• Coordinate to
create a ‘nervous
system’
• Monitor i...
Recommendations from customer-adaptive maturity
research findings: 2
• Create blueprint to
support vision

• C-level CX le...
You can draw on our analyst community for a deeper
exploration into areas of particular focus

28

© Copyright Ovum. All r...
''If you’re not
prepared for the
future today,
you're history
tomorrow''

Peter Hasler Chairman

THANK YOU
Jeremy.cox@ovum...
30

© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Upcoming SlideShare
Loading in...5
×

How to keep customers long term customer-adaptive enterprise maturity research -10-13

311

Published on

Keeping customers long term is what drives profitable growth, yet what we find is that many organisations are dangerously disconnected from their customers. Firms which succeed are what we call customer-adaptive as they are able to orchestrate 8 key attributes. Take a look to find out more.

Published in: Business, Education
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
311
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • It’s plain and simple the future is only guaranteed if we can grow the customer base, by nurturing existing customers and attracting new ones over time.This generates the cash flows nothing else, and shareholder value is the result – barring the odd speculative hiccup from the stock market.
  • How to keep customers long term customer-adaptive enterprise maturity research -10-13

    1. 1. What it takes to keep customers coming back Jeremy Cox Jeremy.cox@ovum.com @jeremycoxcrm October 8th 2013 1 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
    2. 2. Agenda   Answer the question  Pilot research findings – current maturity levels  2 What question should every organisation answer? Recommendations © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    3. 3. What question should every organisation answer? 3 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    4. 4. Where will we be in 5 - 10 years time perhaps? • 87% companies from1955 Fortune 500 list have gone bankrupt. Source: S.Denning Forbes Magazine • Life expectancy of a firm since then reduced from 75 to 15 years Source: S.Denning Forbes Magazine • CEO tenure has dropped to 6.6 years from 8.1 years in 2003 Source: Booz & Co 4 Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    5. 5. The future of a commercial organisation is assured only if it can maintain its relevance to its customers 5 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    6. 6. We all have to answer the same question: How can we remain persistently relevant to our customers? 6 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    7. 7. Today it’s even more challenging….. 7 Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    8. 8. What should we do? 8 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    9. 9. Answer the question 9 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    10. 10. What attributes do we need? Visionary leadership Architected Engaged Collaborative Connected Insightful Innovative Positive experience 10 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    11. 11. Examples leading Organizations displaying customeradaptive attributes + + = + + = + = + 60,000 All display the ability to continuously refresh the value they deliver to customers and move at pace 11 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    12. 12. Pilot research findings 12 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    13. 13. Organization & respondent segmentation Organization Size US$ Millions Sectors represented 11% >500 30% < 50 38% >50 - 500 32% < 50 >50 - 500 18% 71% Public Sector >500 Private Sector Charities & Education Respondent profiles Senior Manager Total number of respondents 73 CIO, VP/IT Director Other C-suite CEO 0 13 5 10 15 20 25 30 Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    14. 14. The top 5% are doing well but the majority of organisations are at risk 100 90 Breakthrough 80 70 60 50 40 30 20 10 0 Leadership Workforce Collaboration engagement Sensing Customer Innovation Connected experience management processes Composite best = top performers (5%) 14 Enterprise architecture Average © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    15. 15. Organizations are largely disconnected from their customers, putting their futures at risk Critical areas of weakness identified   Partially engaged workforce - 60%  Collaboration – Lack tools & encouragement  Weak sensing capabilities ‒ Fragmented view  Fragmented/disjointed customer experience ‒ could impact reputation and retention  Innovation is haphazard ‒ No process  Poorly aligned or connected mission critical processes ‒ Operational silos & inefficient  15 Leadership ‒ Slow decision making Lack an adaptive enterprise architecture ‒ No insight into how vision is to be delivered © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    16. 16. Decision cycles are too slow Leadership attributes Customer Vision articulated Use continuous planning Provides sense of purpose Positives: Workforce trusts leadership Clear values guide workforce decision making Front line able to respond fast to customers • Most have customer visions Negatives: • Slow decision cycles • Inability to redeploy resources fast enough See The Customer-Adaptive Future, and Agile and Lean Business Transformation, (February 2013) 16 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    17. 17. Workforce engagement levels need attention Workforce engagement Engaged workforce Personal growth encouraged High satisfaction Positives: • 60% engagement – could be worse Customer 1st dep’t 2nd Empowered Negatives: • Silos • Lack of contribution Has right tools • Impacts CX See Supporting The Next Generation of Information Workers, IT007-000712 (August 2013) 17 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    18. 18. More determined ESN adoption required Collaboration Enterprise-wide ESN Ideas encouraged Customer communities Positives: • Collaboration seen as essential Peer recognition fosters collaboration Knowledge sharing Readily identify expertise Negatives: • Lack of supporting tools like ESN • Missing out on customer communities See Checklist: Implementing Your Own Internal Social Network, IT018-001422 (July 2013) 18 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    19. 19. Majority of organizations are flying blind Sensing capabilities Monitor customer environment Easy access to intelligence Harvest Insights from social/web Positives: • Top 5% using analytics extensively Operational BI Predictive Negatives: • 95% are not Aware of customer context • Lack insight and foresight = major risk See Creating the Infrastructure for Big Data and Analytics, (July 2013) 19 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    20. 20. Organizations deliver fragmented experience Customer experience (CX) Mapped customer journeys Analytics to inform interactions Integrated voice/chat/ self-service and mobile Positives: • Top 5% offer seamless CX Negatives: Closed-loop VOC all channels CX metrics vs. time CSAT 90%+ • 95% provide fragmented experience • Retention and reputations at risk Positive NPS See Redefining the Customer Experience (June 2012) Also see the October 2013 Ovum report on state-of-the-art VoC programs. 20 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    21. 21. Organizations too reliant on luck Innovation management Collaborate with partners Seen as innovators Workforce contributes to ideas Positives: • Only top 3% have CEO led innovation management process Enterprisewide Innovation Mgt New innovations contribute high share of revenue Co-innovate with customers Negatives: • 97% take an ad hoc approach • Commoditisation & eventual obsolescence See Creating an Environment for Continuous Innovation (April 2013) 21 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    22. 22. Recommendations 22 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    23. 23. Integrated CRM provides a solid foundation for CX which in turn provides the same for CAE Point solution Integrated CRM CX CAE 23 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    24. 24. So consider where your organisation is today and aim for the next stage Transactional Stage 2 integrated with backoffice Stage 1 Departmental • Single department focus e.g. SFA, campaigns, service Engaged • 360 transactional view of the customer Stage 3 all-channel seamless and relevant 24 CustomerAdaptive • Context aware & personalized • Persistently relevant • harvest external data to generate insights • Ability to adapt at speed • Continuous innovation • Customer centricity continuum Stage 4 Multiple integrated applications © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    25. 25. Then develop your roadmap to move forward towards your customer-centric vision 25 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    26. 26. Recommendations from customer-adaptive maturity research findings: 1 • Coordinate to create a ‘nervous system’ • Monitor inside and outside • Make analytics accessible • Vision – put customer at the centre • Adaptive planning • Empower front line decision making • Orchestrate 8 attributes • Deploy ESN purposefully • Foster adoption • Monitor morale • Encourage expertise sharing 26 • Involve workforce in direction • Identify and remove inhibitors © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    27. 27. Recommendations from customer-adaptive maturity research findings: 2 • Create blueprint to support vision • C-level CX leader • Ensure open to future technologies • Embed enterprise wide VOC & measurements • Map value chain to identify critical processes • Set agenda from top • Assign process owners • Connect 27 • Map customer journey • Encourage experimentation • Use innovation mgt integrated with ESN • Invest – set aside budget © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    28. 28. You can draw on our analyst community for a deeper exploration into areas of particular focus 28 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    29. 29. ''If you’re not prepared for the future today, you're history tomorrow'' Peter Hasler Chairman THANK YOU Jeremy.cox@ovum.com @jeremycoxcrm 29 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    30. 30. 30 © Copyright Ovum. All rights reserved. Ovum is an Informa business.
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×