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The Customer Experience Scenario

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understanding that User Experience is more important than customer satisfaction, loyalty and branding alone.

understanding that User Experience is more important than customer satisfaction, loyalty and branding alone.


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  • 1. The Customer Experience Scenario Ed ThompsonThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
  • 2. Is Your Organization Selling Experiences, Or IsIt Still Thinking in Terms of Products? The experience economy Commodity Goods Experience 1¢ to 2¢ a cup 5¢ to 25¢ a cup $2 to $5 a cup
  • 3. Does Your Organization Have anExperience Tab on Its Main Website?
  • 4. Has Anyone Written a Book About YourOrganizations Customer Experience?
  • 5. How Does Your Corporate Blog Stack UpAgainst Southwests?
  • 6. Is Your Organizations CustomerExperience as Memorable as Apples?
  • 7. Has Your Organizations CustomerExperience Changed the Market?
  • 8. Will One Interaction Stay With YourCustomer Forever?el Bulli, Best Restaurant in the World in 2002, 2006, 2007, 2008, 2009 Closed 2011
  • 9. Are You Willing to Listen to YourCustomers as Much as Zappos?"Unlike most websites … Zappos prominently displaysa toll-free customer-service phone number. There areno limits on call times, and the resulting sessionsoccasionally resemble protracted talk therapy.On July 5 [2009], a 22-year-old Customer Loyalty Teammember named Britnee Brown, who has been with thecompany for a little more than a year, took a call thatwas a record 5 hours, 25 minutes, and 31 secondslong, from a woman on the East Coast interested inMasai Barefoot Technology shoes."Source: The New Yorker, 14 September 2009
  • 10. How Do You Stack Up Against Those WhoAre on Top of Their Game?
  • 11. Do Your Customers Willingly TattooThemselves With Your Corporate Logo?
  • 12. Customers Care More About the Customer Experience Than in the Past1. 40% of organizations cite ‘complexity’ as the greatest barrier to improving multichannel customer experience, overtaking ‘organizational structure’ since 2010.2. Only 26% of companies have a well-developed strategy in place for improving customer experience. Source: Econsultancy MultiChannel Customer Experience Report3. 50% of smartphone users would prefer to use a mobile customer service application to try to resolve their customer service issue before calling into the contact center. Source: SpeechCycle and Echo Research Study4. Customers who engage with companies over social media spend 20% to 40% more money with those companies than other customers. Source: Bain & Company Report – Putting Social Media to Work5. 63% percent of online adults are less likely to buy from the same company via other purchase channels if they experienced a problem with a transaction on their mobile phones. Source: Tealeaf Mobile Transaction Research Report 20116. $289 – Average annual value of each customer relationship lost to a competitor or abandoned. Source: Genesys Report – The Cost of Poor Customer Service7. Consumers prefer to resolve their customers service issues using the telephone (90%), face to face (75%), company website or email (67%), online chat (47%), text message (22%), social networking site (22%). America Express 2011 Global Customer Service Barometer
  • 13. CIO Survey 2012: CIOs See Customer Experienceas the Greatest Opportunity for IT Innovation Ranked First Ranked LastCustomer experience 35%(products, services, etc.) 6%How we learn and 18%change as a business 13%Customer engagement 15%marketing & sales 9%The way we get ideas 12%and make decisions 16%The way we extract 10%value from customers 24%The manufacturing and 11%service creation process 32% Distribution of Respondents 12
  • 14. Key Issues1. What is a customer experience, and how is its improvement measured?2. Which projects will deliver the most positive customer experiences?3. How is a strategy created to start to improve the customer experience?4. Which technologies and vendors are best for customer experience management?
  • 15. Definitions• The dictionary defines experience as: "The sum total of conscious events."• Gartner defines customer experience as: "The customers perceptions and related feelings caused by the one-off and cumulative effect of interactions with a suppliers employees, channels, systems or products."• Gartner defines customer experience management as: "The practice of designing and reacting to customer interactions in order to meet or exceed customer expectations and so increase customer satisfaction, loyalty and advocacy."
  • 16. The Measurable Benefits of CustomerExperience Management Customer Satisfaction Scores Average Cycle Times Customer Mystery Shopper Scores Timeliness Product Review Ratings Competitive Benchmarks Satisfaction First-Call Resolution Rates Number of Support Requests Customer and Employee Referrals Average Order Size Deactivation/Reactivation Costs Average Customer Tenure Loyalty/ Customer Attrition/Churn Rates Purchase Frequency Loyalty Program Enrolled/Participating Adoption of New Products Advocacy Brand Advocates/Net Promoters Use of Multiple Channels No. of Product or Service Upgrades No. of Repeat Orders No. of Customers "Likely to Defect" No. of Customers Interacting Price Sensitivity Brand/ Brand Value Trust Rating Social Network Participation, Likes Reputation Brand Perception (Recognition, Website Usability Benchmark Credibility, Relevance, Influence) Sentiment Scores Defect Rates Delivery Timeliness and Accuracy Quality Tolerance of New Processes Product Return Rates Accuracy of Inventory and Pricing End-to-End Transaction Times
  • 17. Key Issues1. What is a customer experience, and how is its improvement measured?2. Which projects will deliver the most positive customer experiences?3. How is a strategy created to start to improve the customer experience?4. Which technologies and vendors are best for customer experience management?
  • 18. Seven Types of CustomerExperience ProjectListen, From Out Act as Open Get Alter DesignThink, Do to In One Up Personal Attitudes BetterCollect Feedback Find Moments of Achieve More Accessible Personalize Empower Have aMultichannel Truth Consistent Self-service Products Employees Strategycollection Process modeling Experiences Configure to order Education and Executive Track forReal-time alerts and Identify the weakest Single view of customer Mass training enlighteningactions link customer customization Cultural values Ideal and real Add channels Automate and Recognition New product Ownership of the experiences escalate development experience Program and project plansAnalyze Opinion Redesign Share Answers Demonstrate Customize Offers Make Clear the BrandValue analysis Processes Knowledge Trust Bundling Responsibility ExecutionMarket research Quality controls management Honor privacy product/service Governance and Values and Trading efficiency Skills inventory Share data Personal pricing policing promiseSegmentation and experience Better search Use only what Responsibility ReputationPropensitymodeling you need Compensation and Communication contractsStart a Adapt in Real Time Multichannel Encourage Stripped Down Recruit Differently Design theConversation Real-time rerouting Availability Participation Simplification Profiling the ExperienceExpectations setting Analytical-driven Multichannel Review and One size fits all personalities BenchmarkCapturing intent process decisions integration comparison Standardization Balance teams usability and Device- Communities and scale empathyManage dialogue Recruit to brand independent Social networks Digital design interaction coolVirgin Media Lego Argos Missha Nike Southwest DisneyWhirlpool UPS Clarks Threadless Garmin Zappos Nespresso Giff Gaff BMW
  • 19. Key Issues1. What is a customer experience, and how is its improvement measured?2. Which projects will deliver the most positive customer experiences?3. How is a strategy created to start to improve the customer experience?4. Which technologies and vendors are best for customer experience management?
  • 20. Know Your Starting Point for CustomerExperience Management 3. Staying on Top + Pricing Billing Availability Delivery Build Quality £/$ Returns 2. Moving Above Repairs Average 1 2 3 4 5 6 7 8 9 10 Couldnt Feels Feels Feels Couldnt Bad Neutral Good Return Feel Feel Worse Better - 1. Get the Commitment/Investment Basics RightSource: Harding & Yorke
  • 21. Staying on Top: Head for Higher Levels ofCustomer Experience Maturity• Customers dont forget. After the recession, those companies that did the right thing are rewarded. Those that kicked customers when they were down suffer.• Seek out unhappiness. Dissatisfied customers that 1% have their problems resolved are more loyal than those that never had a problem. Culture• Look outside your industry. If youve reached the top 4% Change of your industry, look at others for inspiration. Invite them to share best practices. Profit 20% Parity Execs 30% Engaged VOC 45% Validated Fragmented Focus Initial Developing Defined Managed Optimizing
  • 22. Key Issues1. What is a customer experience, and how is its improvement measured?2. Which projects will deliver the most positive customer experiences?3. How is a strategy created to start to improve the customer experience?4. Which technologies and vendors are best for customer experience management?
  • 23. Age and Gender Recognition andSuggestions on Japanese Vending Machines
  • 24. Technologies Can Help in MultipleCustomer Experience Project TypesListen, From Out Act as Open Get Alter DesignThink, Do to In One Up Personal Attitudes BetterCollect Feedback Find Moments of Achieve More Accessible Personalize Empower Have aEFM Truth Consistent Web service Products Employees Strategy Data mining Experiences Product E-learning/LMS ConsultantsSurvey tools Tracking Lead mgmt. MDM configuration WFO AdvisorsEvent analytics Field force Segmentation BPM optimization Pricing mgmt. Sales analytics BrandingBPMQA monitoring BI ERMS Remote New product CSS analytics Value analysts monitoring developmentSocial media WFO Web analyticsmonitoring ERMS StorefrontAnalyze Opinion Redesign Share Answers Demonstrate Customize Offers Make Clear the BrandCustomer value Processes Knowledge Trust Product Responsibility ExecutionAnalytics BPM modeling management Data privacy configuration HCM, ICM MRMData mining Data mining Search Security tools Pricing mgmt. Employee contract EMMSegmentation Workflow Web service Partner mgmt. PIM, content mgmt. management Content mgmt.Web analytics Content Product catalog QA monitoring CommunitySentiment management Order mgmt. WFO mgmt.Start a Adapt in Real Time Multichannel Encourage Stripped-Down Recruit Differently Design theConversation Business activity Availability Participation Simplification Recruitment ExperienceDialogue monitoring Application Review and Order mgmt. Induction Web analyticsmanagement Workflow integration comparison BPM modeling Web design technologies Community mgmt.ERMS In-line, event-driven Mobile Web design ContentSearch analysis technologies Community mgmt. mgmt. StorefrontWeb service ERMS, IVR, SMS Social networking Storefront
  • 25. There is No Customer Experience Market100 Vendors in 100 Different Markets
  • 26. CE Technology Matrices:Customer Service Applications Achieving ROI Easier Moderate Challenging Source: Balance Customer Experience With Customer Service Productivity in Customer Service Automation Initiatives, September 2011
  • 27. RecommendationsSTOP: START:• Banging your head against a wall • Finding the spark that is if your executive leadership are motivating executives — fear of not really committed to it. humiliation or pride at leading the• Trying to do everything at once, industry? focus on the biggest pain point for • Consolidating customer feedback customers in one department in sources and become the voice of one business unit for six months. the customer internally.• Making do with part time • By appointing a VP or head of resources. Instead build the team. Customer Experience. You need both a coordinating • Inspiring, seek out stories, department at the head office, but anecdotes, examples and case also dotted line links to individuals studies of what others have in every department. achieved, and mimic if achievable.
  • 28. Improving the Multichannel Customer Experience Ed ThompsonThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

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