Accenture outlook-how-to-make-your-company-think-like-customer-crm


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For too many companies, ensuring that every customer has a tailored experience remains an elusive goal. Indeed, in a 2010 survey of more than 140 North American companies, just 3 percent were identified as truly “customer-centric organizations.” Fully a third were found to be “customer oblivious.”
The stakes are high. Some studies suggest that failing to deliver a high-quality customer experience can result in a staggering erosion of a company’s customer base—a loss of as much as 50 percent over a five-year period.

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Accenture outlook-how-to-make-your-company-think-like-customer-crm

  1. 1. This article originally appearedin the 2012, No. 1, issue ofThe journal of high-performance businessCustomer Relationship ManagementHow to make your companythink like a customerBy Floren Robinson and Justin M. BrownC ustomers today expect an imaginative, high-quality experiencein a multichannel environment. Regard this as an opportunity:Your company can leverage new strategies and technologies tocreate operations capable of making good on your customer-centric promise and growing your
  2. 2. For too many companies, ensuring immediate competitors but to their that every customer has a tailored experiences with companies in general. experience remains an elusive goal. The pampered luxury car customer Indeed, in a 2010 survey of more expects the same attention from the than 140 North American companies, cable provider and at the retail store just 3 percent were identified as truly at the mall. Are you prepared to meet “customer-centric organizations.” that expectation? Fully a third were found to be “cus- tomer oblivious.” Your customers are evolving. The traditional shopper has been joined by The stakes are high. Some studies the digitally oriented, multichannel suggest that failing to deliver a high- customer; as a result, operating models quality customer experience can result must accommodate both. The traditional in a staggering erosion of a company’s customer may still be reluctant to customer base—a loss of as much as share personal information, but the 50 percent over a five-year period. growing base of digital customers tends to be more open with data, Why do some companies succeed especially if it is used to provide while so many fail? Often, the cause them with a better product or service is internal barriers. Even the best- experience. intentioned attempts at customer- centricity can be sabotaged by siloed Nike did exactly that with its Nike + strategies, organizations, processes, iPod Sport Kit, partnering with Apple technologies and data, which can to change the running shoe forever. result in disconnected sales, marketing Anticipating that runners would be and service functions. Your customer eager to adopt technology and online views all of your functions and channels to augment their training, business units as a single company. the company developed a sensor for Shouldn’t you? the left shoe that sends workout data wirelessly to an iPod. The sensor Merely adding customer-centricity tracks distance, time, pace and calo- to your vision statement isn’t enough. ries burned—and even tells runners Thinking like your customer is the if they’ve beaten their personal best. first challenge, and delivering a Back at home, Nike’s online portal positive customer experience is even enables the runner to plot goals and harder. Achieving customer-centricity compete with others. Can you iden- requires rethinking the way business tify similar ways to reinvent yourself is done. And this, in turn, requires as markets evolve? a holistic approach that encompasses everything from analytics and insights The voice of dissatisfaction echoes to strategy and customer experience, louder than ever before. Social from operating model design and media sites and online research execution to governance and trans- are accelerating word of mouth. formation management. According to conventional wisdom, a dissatisfied customer might tell Identifying the obstacles 10 people of a negative experience; The rethinking begins by breaking down today, social media enables that same the challenge into its constituent parts. customer to reach thousands with a few keystrokes. Do you have a strategy Your competition is expanding. In to address negative feedback hitting the past, competitive intelligence from the Web? outside your industry wasn’t required. But today’s consumers compare their You must kill the back-office mental-2Outlook 2012 experience with your company not ity. The days of a cloistered back officeNumber 1 just to their interactions with your are over. What once seemed like smart
  3. 3. organization—discrete processes, data- connecting internal data and analytical bases and designated teams designed capabilities such as “next-best-action” for efficiency—creates siloed operating decision making to enable contact models that prevent companies from centers and sales forces to dynamically coordinating interactions and customer drive interactions based on real-time experiences. Is there a backroom fire- customer insight. Look closely at your wall at your company that’s become own company: Are handoffs seamless a liability? and informed? Are the right people armed with the right information, at You need effective connectivity, the right time, to anticipate and address not just flashy capabilities. Few customer needs? companies understand what actually happens as a customer moves from one Having familiarized yourself with the interaction to another. To offer the best obstacles in the dramatically altered customer experience, it is necessary customer environment, you can begin to to connect customer-facing and non- build a framework for a customer-centric customer-facing functions. For example, operating model. There are five areas an increasing number of companies are of focus surrounding the customer. Analysis and insights Your strategy and operations must be guided by the people they’re meant to serve: your customers. Once you’ve resolved to pursue Your analysis will produce more valu- customer-centricity, market research able insights if you keep a few simple and analytics can help you understand rules in mind. what you’re aiming for. Next, auditing your company’s current performance Don’t be afraid to collect criticism. in meeting customer needs and wants Unaddressed customer feedback can can help you improve your products have harmful repercussions, but if and services. you develop the ability to gather and organize customer reactions, you can Research conducted by Wells Fargo use them to inform and enhance your offers a case in point. Even as account operations. Links across functions are holders flock to new services online, usually required, since a poor customer at ATMs and via mobile devices, the experience with one channel is often bank’s analysis revealed that 60 per- communicated through another, only cent of ATM transactions are made to have a third group tasked with res- by customers who still prefer banking olution. Think car rentals: Reservations with a teller. are made online or by phone, then the consumer encounters different employee That insight, along with others, led to teams at pickup and drop-off. Wells Fargo’s decision to tie platforms together, meaning a customer can open Conduct an “enterprise customer an account online, make a deposit experience audit.” The audit aims to at a branch, withdraw cash from an assess the effectiveness of customer- ATM and check balances on a mobile facing and internal capabilities of device, confident that everything will working in unison to deliver the intended work just as it would with a teller. Wells customer experience. Navigate a series3 Fargo’s investment in multiple integrated of interactions with your companyOutlook 2012 channels thus makes for a unifiedNumber 1 customer experience. (Continued on page 5)
  4. 4. The Accenture Customer-Centric Operating Model FrameworkThe Accenture Customer-Centric Operating Model Framework is designed to be used by companies at any stage of maturityon the journey to customer-centricity. Whether a company is looking for smaller “quick win” enhancements or is in needHeadline tk tk tkof a comprehensive transformation, it can use this framework to translate customer-focused strategies into execution. TheDeck copy goes here and here and here and here and here and here andthe foundational and customer-facing functions andframework helps organizations guide efforts to build and integrate here and here and herehere and here and here customer and here andwhile and here and here and here and here. focus of its efforts.capabilities that drive and here experience, here always keeping the customer at the Governance Strategy Analysis and customer and insights experience The customer Operating model design and execution Transformation managementAnalysis and Strategy and Operating model Governance Transformationinsights customer experience design and execution management • Governance strategy• Market research • Customer segmentation • Performance and program • Change management• Customer needs, • Customer-centric strategy management • Cross-organizational • Cultural transformation behavior and feedback • Customer experience • People/organization roles and • Interim operations• Customer analytics blueprint • Business process responsibilities support and reporting • Sales, marketing, service • Technology • Governance-related • Program management• Industry landscape integration strategy processes office • Channels• End-to-end customer • Investment strategy • Escalation paths • Implementation • Channel enablement experience auditing • Product/service portfolio, and business rules reporting innovation and partner • Customer data strategy • Operating model principles and enterprise architecture strategyThe framework relies upon five basic principles.Source: Accenture analysis• omprehensiveness is key, and an end-to-end strategy C • Iteration is essential, as feedback loops within the helps companies set priorities for maximum return on framework make the process cyclical and support investment. continuous improvement.• Integration supports collaboration and coordination • aintaining your focus helps keep your customers’ M across functions based on a consistent vision. wants and anticipated future needs at the core of everything your company does.• he framework allows for scalability, permitting a T comprehensive overhaul or more modest adjustments in particular areas.4Outlook 2012Number 1
  5. 5. (Continued from page 3) a more complete understanding of their customers. By building on such from your customer’s perspective, a foundation with technologies that understanding not just the external drive predictive modeling and next- but also the internal capabilities that best-action decision making, you drive the experience. Be on the lookout can anticipate a customer’s needs or for awkward transitions—for example, actions in order to tailor messages or where the customer moves from browsing offers to that customer, distinguishing to purchase and on to service, shifting your company from the competition. from retail store to Internet or other mediums of communication. Although some companies long ago implemented vital strategies like On the back end, determine whether the these, few have fully realized the po- right information gets to the appropriate tential. One financial services provider people at the right time to delight the has, however. A multichannel analytics customer. The intelligence gained in a strategy that drew upon Web and customer experience audit will provide phone data provided insights into the insights required to move from which channels were preferred by vision to execution. customers in different age brackets. By matching the evolving financial and Powerful information insurance needs of aging customers with Customer experience audits can act its products, the company improved as internal benchmarks as well. If both service delivery and marketing analyzed and conducted routinely, effectiveness. they will guide the journey toward customer-centricity. Understanding industry dynamics, assessing your internal capabilities Harness the power of reporting and and leveraging insights to deliver analytics. Tools that provide a responsive service and make opera- 360-degree view of customer profile tional improvements are all essential information, preferences and behaviors to enhancing the experience of your give leaders in customer-centricity customers. Strategy and customer experience Customer experience is the North Star of your company’s strategy. Simple insight can lead to powerful by establishing a strategic vision. Next, business models. Take leading online define what “good” looks like on the shoe retailer In typical ground, outlining the ideal customer off beat style, Zappos calls its policy experience blueprint at the tactical level. “WOW,” and it reflects a basic insight Make clear for your employees the step- into selling footwear: No consumer can by-step path you expect your customers know from a catalog whether a shoe to follow. When compared to your exist- fits. So Zappos offers free shipping and ing enterprise architecture, the blue- returns. By removing the risks, Zappos print can reveal changes that will ease makes shopping online the next-best customer access, and may offer insights thing to walking into a shoe store. into how to phase in such changes. Fi- nally, connect the top-down vision with Again, a few simple principles: the bottom-up blueprint, and define the roadmap to make both a reality. Design from the top down and the5Outlook 2012 bottom up via a “customer experience There are lots of ways to rearrangeNumber 1 blueprint.” First, define the big picture resources, whether they’re people,
  6. 6. processes, technologies or data. But centric strategy may require growth leaders in customer-centricity have beyond the current product portfolio found that the right plan creates both or service model. Think of Nike as customer value and business value. a purveyor of digital fitness services, Zappos is a prime example. or Ford Motor Co. as a provider of electric vehicle management services Establish collaborative planning (see sidebar, page 7). The two compa- across functions and business units. nies provided important new value Isolated planning can lead to frag- propositions to their customers by mentation—the survival of those shifting both their product lines and dreaded silos—at the product or operating models. functional level, or both. Integrated planning—going to market with a The proposition doesn’t have to be that cohesive, unified approach and in- big or far-reaching. US restaurant chain tegrated customer experience blue- Applebee’s, for example, expanded its print—leads to compatibility between menu and provided increased nutrition customer and product strategies information in a partnership with and collaborative execution across Weight Watchers International. business units and customer-facing Adopting the Weight Watchers points functions. system helped reposition Applebee’s as a restaurant offering healthy Consider expanding core products choices to customers looking for and services. Adopting a customer- healthier lifestyles. Operating model design and execution A successful operating model merges strategies, people, processes, technologies and data. Designing and implementing an occur; which steps shape the customer operating model means taking a experience; and how data, technology, holistic approach as you address issues processes and people must be leveraged. ranging from corporate culture to IT. While the biggest challenge Build new internal- and external- is to achieve unity in design and facing capabilities. Some companies execution, that often means—once using advanced CRM capabilities again—dismantling silos. As with an know whether the customer contacting orchestra, everyone must play from the call center has previously voiced the same score and follow the conductor opinions about a product online, if an operating model is to produce a prompting the agent who answers to harmonious customer experience. deliver relevant messaging or offers. The result is a more personalized Refine customer-focused processes. interaction. Connecting processes, linking organiza- tional structures and integrating Keep in mind that new platforms systems can ease the flow of information. such as online portals, capabilities Be prepared to define customer- like mobile-enabled video chat and impacting processes as they will other advanced tools are not, in define activities, drive technology themselves, the answer. During the and channel requirements, and define customer-centric transformation, roles and responsibilities. A customer- technology becomes an important6Outlook 2012 focused process architecture makes focus across the company as newNumber 1 clear where customer handoffs foundational, operational, process
  7. 7. MyFord Mobile: Serving the digital customer Fear of the unknown is to be expected—so Ford Motor Co. decided to harness it. Recognizing that owning a 2012 Ford Focus Electric will be a new adventure, the company devised a mobile application called MyFord Mobile to give the customer more control of the electric car experience. MyFord Mobile will help Focus Electric owners plan trips, monitor their vehicle’s state of charge and receive vehicle alerts. The multipurpose app ranges in capability from identifying cost-effective electricity purchases to helping the owner find where the car is parked. Electric cars represent the emergence of a new demographic among car owners, and Ford aims to serve customers keen to engage digital capabilities for their convenience. Are there ways you can anticipate your customers’ needs and, in turn, drive brand advocacy? management and decision-making model, examine your company’s technologies are needed to manage capacity for collaboration. Processes the operating model. The result will are very structured at some organiza- be greater precision in executing tions; at others, they are more flexible. the customer experience blueprint. How does collaboration work in your company? Is there a willingness to Consider connectivity. Collaboration change? Be realistic about what is is key in a customer-centric operating appropriate for your company’s culture. model. Once your company decides If the changes seem too radical in to break the silos, you must decide the short term, consider smaller steps how this should happen. The answer, that can be made now and plan for dependent on culture, could vary larger shifts over time. Leverage from formally connecting processes individual objectives and incentive across the organization to fostering compensation to get employees moving collaboration in a less structured in the direction of collaboration. way. Before redefining an operating Governance This is the glue that holds together a customer-centric operating model. As your company shifts from a tions. Yet too rigid an approach may product-centric to a customer-centric limit innovation and the autonomy of model, there are many questions to individual managers to make the best ask when establishing governance. decision for their parts of the business. Among the most important: How On the other hand, leaders need to be flexible do you want your vision to wary of promoting an undisciplined be? How are decisions made, and who “Wild West” mentality. Deciding has the power to make them? Both where to draw such lines requires a questions affect the essential tension thoughtful reading of company culture between maintaining discipline and and behaviors. encouraging creativity. Typically, governance involves creating7Outlook 2012 By definition, governance is about a board from various customer-facingNumber 1 making decisions and handling excep- and impacting functions that is
  8. 8. LEGO: Beyond the block For decades, LEGO has been the dominant manufacturer of interlocking bricks for children. But as consumers have increasingly shifted playtime to the digital frontier, the Danish company has introduced new capabilities: What used to be just a box of plastic bricks is now a multichannel experience that neatly adapts the timeless LEGO product to the high-tech tastes of today’s consumer. LEGO’s operating model enables connectivity, creating links between its traditional, store-bought products and new, flashy digital channels and services. Children can learn to build like the pros through an MBA—“Master Builder Academy”—program, which sends subscribers new models with special building instructions directly to their home every two months, and allows builders to show off their creations in an online community. Teens can now test their building skills through mobile phone applications and challenge their friends to build-offs using their tablets. responsible for an array of issues, board must decide where ownership including maintaining the vision, lies based on the company and its creating a roadmap for evolving products; it can be at the corporate, enterprise architecture, initiating an franchise or brand level. Clear owner- approach for sourcing new capabilities ship of the customer helps to ensure and stemming deviations from customer- a deliberate and consistent customer centric decisions. Governance is the experience. If ownership is not clear, conductor; when one section starts inconsistent customer experiences playing from a different score, the or internal turf battles for share of sound of the whole orchestra changes. voice may ensue. If multiple business units or brands within a company have Maintain a shared vision and control overlapping customer segments, the scope. Adhering to a vision can be company will need to be careful not to difficult because different stakeholders oversaturate its customers with proactive have different priorities and new and unsolicited communications. information can drive decision makers to stray from the path. Visions evolve Keep track of touchpoints. based on new insights, but traditionally, Analytically driven capabilities that evolution is deliberate. When and commonsense rules concerning individuals are asked to adhere to a how the company interacts with its vision they do not fully understand, customers can prevent oversaturation. they tend to make decisions that are A governance committee can help not aligned with that vision, thus define the appropriate business rules requiring governance. If one function around frequency and cadence of within the organization deviates from customer touchpoints. When a company the larger plan, a formal escalation proactively engages its customers process needs to be in place to manage too frequently, the contacts become any potential negative impact. The gov- spam; therefore, it should establish ernance team needs to be in a position business rules around the ideal number to make the right calls so that everyone of customer touchpoints so that the keeps focused on the same goals. contacts drive a positive experience. Coordination is even more critical Be explicit about who owns customer when multiple business units or brands relationships. The governance share targeted customers.8Outlook 2012Number 1
  9. 9. For further reading Transformation management“Bringing Science to Selling: These initiatives integrate new behaviors and allow the businessWhat Every Chief Sales Officer ShouldKnow About Sales Analytics”: to serve customers without interruptions to operations. Ensuring adoption of a customer-centric program. It will also make it easierabout-sales-analytics.aspx focus across the organization requires for the organization to evolve its a strong leadership commitment customer vision by having this leader“Building a Differentiated to managing change. A traditional focus on both high-level strategy andService Experience Strategy to project management office won’t be tactical execution. This individual willDrive High Performance”: enough. Significant attention needs to take a cross-functional perspective to be dedicated to the behavioral changes, connecting the discrete pieces into ainsight-building-differentiated-service- cultural implications, operational im- comprehensive approach to customerexperience-strategy.aspx pacts and interim plans. interactions, enforcing the breaking of silos.“Maximizing Customer Retention: How do you get to the new? OneA Strategic Approach to of the greatest challenges during Don’t expect these changes to justEffective Churn Management”: the transition from the old operating happen. Some organizations assume model to the new is building the these changes will take care ofinsight-strategic-approach-effective- new model while simultaneously themselves over time. This is rarelychurn-management.aspx continuing to operate the old without the case, so resist the it-just-sort-of- disruption. How do you balance the happens mindset. The most successfulFor these and other articles, old world with the new? How do you transforming companies have a robustplease visit prepare your team for these changes? change management program that Your company’s culture may embrace includes training—skills and knowledge— or resist change, but to realize the and communications. full return of customer-centricity programs, employees and vendors Create a change management program need guidance during the transition. for training and communications. Some of the most challenging moments Establish a customer experience of change take place after you go live. champion at the executive level. Plan for support beyond initial mile- Dedicated senior leadership involvement stones until your organization has demonstrates the importance of the truly institutionalized your vision. Customers today expect an imaginative, high-quality experience in a multichannel environment. Failure to adapt to this new reality will mean not only lost business but a growing gap in product development. If you’re not listening and responding to your customers, chances are you’re not anticipating new needs and demands. Industry leaders are constantly enhancing their customer-centric operating models and raising customer expectations; therefore, it’s critical for your company to get customer-centricity right. Regard this as an opportunity: Your company can leverage new processes, roles and data to create operations capable of making good on your customer-centric promise and growing your business. But you must put the focus of your company’s thinking on the customer, even if it means entering unchartered waters.9Outlook 2012Number 1
  10. 10. About the authors Floren Robinson is a New York-based senior executive in Accenture’s Analytics Marketing Services group. Ms. Robinson, whose work focuses on commercial transformations and operating model design, has spent the past 12 years helping clients focus on their external and internal customers. Justin M. Brown is a Chicago-based consultant in Accenture’s Analytics Marketing Services group. He advises companies across industries in the areas of analytics, customer experience, and customer-centric operating model transformation. Outlook is published by Accenture.The views and opinions in this articleshould not be viewed as professionaladvice with respect to your business.The use herein of trademarks that maybe owned by others is not an assertionof ownership of such trademarks byAccenture nor intended to imply anassociation between Accenture and thelawful owners of such trademarks.For more information about Accenture,please visit © 2012 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.