Making CEM a Reality
JBoye 2014 Philadelphia| 06 May 2014
Tim Walters, Ph.D. | Partner, Principal Analyst
twitter: tim_wal...
2	
  
A strategic inflection point
Source:	
  Based	
  on	
  Andy	
  Grove,	
  Only	
  the	
  Paranoid	
  Survive,	
  1996	...
Making #CEM real means:
We’re all Grace Kelly
now.
3	
  
Twlusion #1
“Strategic inflections can come from
anywhere: new technologies, new
competition, new regulations, new
customer values and...
5	
  
The “dissonance gap”
	
  
	
  
STATUS
QUO
Marks the divergence between
“business as usual” and what you
should be do...
6	
  
The “dissonance gap”
	
  
	
  
	
  
The business challenge is to
correct course before the gap
becomes too large to ...
Making #CEM real means:
Navigating the
“dissonance gap.” Time is
running out.
7	
  
8	
  
“Ex>nc>on	
  is	
  the	
  rule.	
  Survival	
  is	
  the	
  excep>on.”	
  	
  	
  	
  	
  
	
   	
   	
   	
   	
   ...
9	
  
What do consumers want from us?
@>m_walters	
  
Twitter trumps condiments
10	
  
Source:	
  hQp://www.newmediaandmarke>ng.com/brands-­‐have-­‐to-­‐master-­‐complaint-­‐ma...
Only	
  
11	
  
1%	
  
feel	
  their	
  
expecta>ons	
  
for	
  good	
  
customer	
  
service	
  are	
  
always	
  met	
  ...
12	
  
Say they have switched business
to a competitor due to poor
customer experience
Source:	
  Haaris	
  Interac>ve	
  ...
13	
  
Source:	
  Okeeffe	
  &	
  Company	
  survey	
  of	
  1,342	
  senior	
  execu>ves,	
  2012.	
  Commissioned	
  by	
...
14	
  
$1.25	
  million	
  
per	
  year	
  
@>m_walters	
  
Source:	
  hQp://www.weirdworldfacts.com/smart-­‐dogs-­‐with-­...
$89 billion“is lost by US retailers each year because of customer
defection or abandoned purchases due to poor
experiences...
How much is at stake?
$5,900,000,000,000
($5.9 trillion)
16	
  Source:	
  Accenture,	
  2013	
  Global	
  Consumer	
  Puls...
Making #CEM real means:
Accepting that business
reality has changed. (And
acting like it.)
17	
  
#CEM isn’t the Next Big
Thing. It is the Next Only
Thing. #provocation
18	
  
“CX could become a fad, like Six Sigma,
TQM, and CRM, as the industry fills with
consultants, vendors, and gurus hoping to...
20	
  
Consumers gain voice and choice
@>m_walters	
  
of consumers are frustrated by site content
that has nothing to do with their interests
21	
  
Source:	
  Harris	
  Intera...
79% Companies	
  “asking	
  same	
  ques>ons	
  or	
  
marke>ng	
  same	
  offer”	
  across	
  channels	
  
Sources of cons...
of consumers say that personalization
influences what they purchase – 25% say
the influence is “significant”
23	
  
Source...
24	
  
Consumers expect insight
Source:	
  Dynamic	
  Markets	
  study	
  for	
  Experian,	
  January	
  2012.	
  
“Unders...
Making #CEM real means:
Embracing the shift from
#CRM to #CMR – customer
managed relationshps.
(Thanks to @collsdad)
25	
 ...
26	
  
§  Accenture surveyed over 13,000
consumers in 33 countries about 10
industries and determined:
– Despite investments and...
28	
  
Can “CX” be “M”d?
Source:	
  hQp://www.bedeckhome.com/sloane-­‐towels-­‐2-­‐colours.html	
  
§  Customer experience (CX) is how customers perceive the totality of
a their interactions with a company or brand. Note ...
Making #CEM real means:
Judging CEM tech and
practices from the
customer’s (ad)vantage
point.
30	
  
You can manage an
experience, but not the
experience of the
experience. #CEM #WTF?
31	
  
Sorry, but . . .
@>m_walters	
  
32	
  
Johanna Maria Christina Snel
Three vectors of experience
§  Environment – The thing/product
experienced
§  Encoun...
We say that #CEM is about
the effect (perception), but
we act like it is about the
environment (product).
(Because the thi...
You can build
Disneyworld, but you
can’t ensure the kid will
have a good time there.
34	
  
That experience nonsense expla...
Customer insight + brand
story = experience assets
Experience assets +
interaction = customer
perception = CX
35	
  
Making #CEM real means:
Managing the delta
between your intent and
the customer’s
perception.
36	
  
37	
  
If	
  CX	
  is	
  the	
  percep>on	
  of	
  the	
  TOTALITY	
  
of	
  interac>ons,	
  it	
  requires	
  a	
  HOLIST...
38	
   @>m_walters	
  
39	
  
The “dissonance gap”
	
  
	
  
	
  
Were these guys going to be
saved by better marketing? Sales
force tools? Call ...
§  Create the company’s “value zone”
(Vineet Nayar)
§  Companies in the top quartile of
engagement had 50% higher total
...
41	
  
How are we doing with enterprise
social and collaboration?
Scandinavian Internal Comms Survey (200 CIOs,
2014)
§  Use social internally: 19%
§  Contributes to emp. engagement (hig...
Dreary news from the front
43	
  
Source:	
  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterpr...
44	
  
Growth is slowing – dramatically
≅50%	
  
≅78%	
  
≅8%	
  
Source:	
  hQp://www.netjmc.com/business-­‐value/decreas...
45	
  
Deployment falters at “the chasm”
Source:	
  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐...
46	
  
Early adopters don’t . . . adopt
Source:	
  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐e...
47	
  
Trivial impact on daily work
Source:	
  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enter...
Social business 2016?
48	
  
Provides
-  Support for digitalization/
automation of work
-  Structure and accelerator for
business transformation
49	
  ...
Making #CEM real means:
Effecting organizational
transformation through
social driven by customer
experience.
50	
  
§  Touchpoints (web site, app, call center) are too specific
§  Customer lifecycle is too unpredictable
§  Customer jou...
52	
  
Selected journeys (McKinsey)
§  Identify customer goals/needs
§  Map the journey
§  Determine/assign responsibilities
§  Measure current effectiven...
54	
  
“You may hate gravity, but
gravity does not care.”
-- Clayton Christensen
Tim Walters | Partner, Principal Analyst
@tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com
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Making customer experience management real by Tim Walters

  1. 1. Making CEM a Reality JBoye 2014 Philadelphia| 06 May 2014 Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com
  2. 2. 2   A strategic inflection point Source:  Based  on  Andy  Grove,  Only  the  Paranoid  Survive,  1996   @>m_walters  
  3. 3. Making #CEM real means: We’re all Grace Kelly now. 3   Twlusion #1
  4. 4. “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 4  
  5. 5. 5   The “dissonance gap”     STATUS QUO Marks the divergence between “business as usual” and what you should be doing to accommodate and leverage the new paradigm. @>m_walters  
  6. 6. 6   The “dissonance gap”       The business challenge is to correct course before the gap becomes too large to cross.
  7. 7. Making #CEM real means: Navigating the “dissonance gap.” Time is running out. 7  
  8. 8. 8   “Ex>nc>on  is  the  rule.  Survival  is  the  excep>on.”                                    -­‐-­‐  Carl  Sagan  
  9. 9. 9   What do consumers want from us? @>m_walters  
  10. 10. Twitter trumps condiments 10   Source:  hQp://www.newmediaandmarke>ng.com/brands-­‐have-­‐to-­‐master-­‐complaint-­‐management/customer-­‐complaints-­‐561  
  11. 11. Only   11   1%   feel  their   expecta>ons   for  good   customer   service  are   always  met     Source:  Haaris  Interac>ve  survey  of  North  American  consumers,  2011.  Commissioned  by  RightNow.   @>m_walters  
  12. 12. 12   Say they have switched business to a competitor due to poor customer experience Source:  Haaris  Interac>ve  survey  of  North  American  consumers,  2011.  Commissioned  by  RightNow.   @>m_walters  
  13. 13. 13   Source:  Okeeffe  &  Company  survey  of  1,342  senior  execu>ves,  2012.  Commissioned  by  Oracle.       Global executives say the cost of not providing “positive, consistent, and brand relevant experiences” is 20% of total revenue @>m_walters  
  14. 14. 14   $1.25  million   per  year   @>m_walters   Source:  hQp://www.weirdworldfacts.com/smart-­‐dogs-­‐with-­‐amazing-­‐jobs/  
  15. 15. $89 billion“is lost by US retailers each year because of customer defection or abandoned purchases due to poor experiences” 15   IBM says . . . Source:  www.mycustomer.com/feature/experience/jim-­‐glazer-­‐ibm-­‐store-­‐s>ll-­‐pivotal-­‐customer-­‐experience/165159  
  16. 16. How much is at stake? $5,900,000,000,000 ($5.9 trillion) 16  Source:  Accenture,  2013  Global  Consumer  Pulse  Research.    Photo:  hQp://www.t-­‐na>on.com/free_online_ar>cle/most_recent/ train_like_a_man_5_the_real_paleo_exercise  
  17. 17. Making #CEM real means: Accepting that business reality has changed. (And acting like it.) 17  
  18. 18. #CEM isn’t the Next Big Thing. It is the Next Only Thing. #provocation 18  
  19. 19. “CX could become a fad, like Six Sigma, TQM, and CRM, as the industry fills with consultants, vendors, and gurus hoping to cash in on the CX wave.” 19   The worst kind of hype? Source:  hQp://customerthink.com/the_biggest_danger_to_cx_is_simply_this_hype/  
  20. 20. 20   Consumers gain voice and choice @>m_walters  
  21. 21. of consumers are frustrated by site content that has nothing to do with their interests 21   Source:  Harris  Interac>ve  survey  of  2,091  U.S.  consumers,  2013.   @>m_walters  
  22. 22. 79% Companies  “asking  same  ques>ons  or   marke>ng  same  offer”  across  channels   Sources of consumer frustration 65% Inconsistent  offers  or  content   79% Companies  “seang  false  promises”   Source:  Accenture  Global  Consumer  Pulse  Report,  2014.   @>m_walters  
  23. 23. of consumers say that personalization influences what they purchase – 25% say the influence is “significant” 23   Source:  Vanson  Bourne  survey  of  US  consumers,  2013.   @>m_walters  
  24. 24. 24   Consumers expect insight Source:  Dynamic  Markets  study  for  Experian,  January  2012.   “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.” @>m_walters  
  25. 25. Making #CEM real means: Embracing the shift from #CRM to #CMR – customer managed relationshps. (Thanks to @collsdad) 25   Source:  hQp://sapinsider.wispubs.com/Assets/Ar>cles/2014/January/SPI_Feature_From-­‐CRM-­‐to-­‐the-­‐Customer-­‐Managed-­‐ Rela>onship  
  26. 26. 26  
  27. 27. §  Accenture surveyed over 13,000 consumers in 33 countries about 10 industries and determined: – 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” 27   Answer: You suck Source:  Accenture  Global  Consumer  Pulse  Report,  2014.   @>m_walters  
  28. 28. 28   Can “CX” be “M”d? Source:  hQp://www.bedeckhome.com/sloane-­‐towels-­‐2-­‐colours.html  
  29. 29. §  Customer experience (CX) is how customers perceive the totality of a their interactions with a company or brand. Note that in this definition, "customer" refers equally to  prospects  – those who have not yet conducted a transaction with the company – and that the “totality” of interactions includes all channels and touch points over the entire life of the relationship. §  As a business discipline, customer experience management (CEM) refers to the strategies, processes, skills, technologies, and commitments that aim to ensure positive and competitively outstanding customer experiences. §  With reference to technology, CEM includes the array of software tools that organizations use to create, store, deploy, analyze, and optimize the aggregations of digital assets that make up the user experiences on digital channels. 29   Unpacking CX and CEM @>m_walters  
  30. 30. Making #CEM real means: Judging CEM tech and practices from the customer’s (ad)vantage point. 30  
  31. 31. You can manage an experience, but not the experience of the experience. #CEM #WTF? 31   Sorry, but . . . @>m_walters  
  32. 32. 32   Johanna Maria Christina Snel Three vectors of experience §  Environment – The thing/product experienced §  Encounter – The interaction between the product and person §  Effect – A person’s response to the encounter Source:  hQp://books.google.com/books/about/For_the_Love_of_Experience.html?id=u98ZkgEACAAJ  
  33. 33. We say that #CEM is about the effect (perception), but we act like it is about the environment (product). (Because the things we offer to be experienced can be managed, but the reaction cannot be.) 33  
  34. 34. You can build Disneyworld, but you can’t ensure the kid will have a good time there. 34   That experience nonsense explained
  35. 35. Customer insight + brand story = experience assets Experience assets + interaction = customer perception = CX 35  
  36. 36. Making #CEM real means: Managing the delta between your intent and the customer’s perception. 36  
  37. 37. 37   If  CX  is  the  percep>on  of  the  TOTALITY   of  interac>ons,  it  requires  a  HOLISTIC   company  response   Source:  hQp://darkroom.bal>moresun.com/2012/11/total-­‐eclipse-­‐of-­‐the-­‐australian-­‐heart/solar-­‐eclipse-­‐draws-­‐crowds-­‐to-­‐north-­‐queensland-­‐ vantage-­‐points-­‐3/  
  38. 38. 38   @>m_walters  
  39. 39. 39   The “dissonance gap”       Were these guys going to be saved by better marketing? Sales force tools? Call center optimization?
  40. 40. §  Create the company’s “value zone” (Vineet Nayar) §  Companies in the top quartile of engagement had 50% higher total shareholder return. §  Each incremental % of employees who become engaged predicts incremental 0.6% growth in sales. (Aon Hewitt) 40   Engaged and empowered employees . . .
  41. 41. 41   How are we doing with enterprise social and collaboration?
  42. 42. Scandinavian Internal Comms Survey (200 CIOs, 2014) §  Use social internally: 19% §  Contributes to emp. engagement (high): 0.57% §  Improves knowledge sharing (high): 2.5% §  Improves productivity (high): 0.57% §  Improves mgmt-emp dialogue (high): 0.95% §  Could “easily” convince top mgmt of high value of social: 36% !!! 42   Answer: Local success, lots of hard work and enthusiasm, but, in the final instance, overall, You Suck! @>m_walters  
  43. 43. Dreary news from the front 43   Source:  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterprise-­‐social-­‐sonware-­‐signals-­‐a-­‐shin-­‐from-­‐tool-­‐to-­‐behavior/  
  44. 44. 44   Growth is slowing – dramatically ≅50%   ≅78%   ≅8%   Source:  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterprise-­‐social-­‐sonware-­‐signals-­‐a-­‐shin-­‐from-­‐tool-­‐to-­‐behavior/  
  45. 45. 45   Deployment falters at “the chasm” Source:  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterprise-­‐social-­‐sonware-­‐signals-­‐a-­‐shin-­‐from-­‐tool-­‐to-­‐behavior/  
  46. 46. 46   Early adopters don’t . . . adopt Source:  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterprise-­‐social-­‐sonware-­‐signals-­‐a-­‐shin-­‐from-­‐tool-­‐to-­‐behavior/  
  47. 47. 47   Trivial impact on daily work Source:  hQp://www.netjmc.com/business-­‐value/decrease-­‐of-­‐interest-­‐in-­‐enterprise-­‐social-­‐sonware-­‐signals-­‐a-­‐shin-­‐from-­‐tool-­‐to-­‐behavior/  
  48. 48. Social business 2016? 48  
  49. 49. Provides -  Support for digitalization/ automation of work -  Structure and accelerator for business transformation 49   Social   CEM   Org   Transforma>on   Needs -  Business justification -  Clear/measurable impact, value proposition, ROI Provides -  Cure for declining business performance -  Structure for organization- wide customer-centricity Needs -  Business driver that justifies a radical shift in practice -  A “why” that proves a radical shift in the conditions of value production Provides -  A driver for org transformation -  A justification for social practices and tools (i.e., specific value-generating activities Needs -  Org-wide support -  Fundamental transformation of business practices (e.g. outside-in) -  (Software) support for agility, responsiveness, innovation, “consumerization” @>m_walters  
  50. 50. Making #CEM real means: Effecting organizational transformation through social driven by customer experience. 50  
  51. 51. §  Touchpoints (web site, app, call center) are too specific §  Customer lifecycle is too unpredictable §  Customer journey is just right – it combines end-to-end experience with clear outcomes and team responsibilities 51   Where to start? @>m_walters  
  52. 52. 52   Selected journeys (McKinsey)
  53. 53. §  Identify customer goals/needs §  Map the journey §  Determine/assign responsibilities §  Measure current effectiveness/satisfaction §  Identify flows and gaps for social support §  Organize and/or network team(s) for complete journey §  Refine and optimize §  Learn, repeat, expand 53   The road to CEM reality begins tomorrow (or, anyway, after cocktails) @>m_walters  
  54. 54. 54   “You may hate gravity, but gravity does not care.” -- Clayton Christensen
  55. 55. Tim Walters | Partner, Principal Analyst @tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com
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