Your SlideShare is downloading. ×
Research ReportMulti-channelCustomerExperienceReportin association with Econsultancy
Multi-channel Customer ExperienceThe aggregated experience a customer has of a brand gained fromall interactions across ma...
Contents	    1.	   About Foviance 	                                                            2	    2.	   About Econsulta...
1. About FovianceBetter customer experiencesFoviance is a cross-channel customer experience consultancy to the world’s lea...
2. About EconsultancyEconsultancy is a digital publishing and training group that is used by more than 200,000internet pro...
3. Executive Summary and HighlightsThe Multi-channel Customer Experience Report, published by Econsultancy in associationw...
•	 More than a third of companies surveyed (38%) say that ownership of the       multi-channel customer experience lies wi...
4. Introduction by FovianceThis report provides real insight about how businesses are thinking and acting in the area ofmu...
The Foviance “Customer Experience Maturity Model”                    Paul Blunden                    CEO                  ...
5. Methodology and Sample5.1. MethodologyThis report is based on a survey of more than 500 respondents to an online survey...
5.2.2. Business sectorClient-side survey respondents are spread across a range of business verticals. The bestrepresented ...
5.2.3. GeographyJust over two thirds of client-side respondents (68%) are UK-based, while 15% are basedelsewhere in Europe...
5.2.5. Job role Survey respondents are most likely to work within their organisation’s e-commerce or digital department. T...
5.2.7. Type of agencyAgenciesFigure 7: What type of company do you work for?45%	                   40%40%	  35%	  30%	    ...
6. Findings6.1. Customer experience strategy6.1.1. Dominant competitive strategyMore than half (61%) of respondents say th...
CompaniesFigure 9: Does your organisation try to differentiate its brand through superior customerexperience?             ...
Richard Sedley                                Commercial Director at Foviance                                and Course Di...
6.1.3. Importance of multi-channel customer experience strategyAlmost half of companies (49%) say a joined-up multi-channe...
AgenciesFigure 12: Typically, how important is a joined-up multi-channel customer experience to your clients?60%	         ...
Companies with a turnover of less than £1 million or more than £1 billion are most likely to claimto have a properly formu...
Agencies [Figure 14] are more likely than company respondents to say that there is an absence ofany such strategy (24%) an...
6.1.5. Ease of implementing a customer experience strategyThis research clearly highlights the difficulty faced by most or...
AgenciesFigure 16: How easy or difficult do your clients find it to implement a strategy for improving thecustomer experie...
CompaniesFigure 17: Does your company recognise a link between long-term business performance andcustomer experience?     ...
Table 5Link with long-term business performance and size of the organisation                             Yes, a strong    ...
6.1.7. Gaining a single view of the customerSurvey respondents were asked how close their own organisations (or their clie...
CompaniesFigure 20: How close is your organisation to having a single view of the customer?Cluttered:Operational systems a...
Table 7 shows the breakdown of responding companies by size. The largest companies (those witha turnover of more than £1 b...
CompaniesFigure 22: Which touch-points does your organisation use to communicate directly with customers?120%	  100%	     ...
6.2.2. Integration of channels with customer experience strategyLess than a third of companies (31%) say that the differen...
Neal Preece                                eCommerce Development Director                                Shop Direct      ...
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Foviance multi channelcustomerexperiencereport
Upcoming SlideShare
Loading in...5
×

Foviance multi channelcustomerexperiencereport

382

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
382
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
19
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Foviance multi channelcustomerexperiencereport"

  1. 1. Research ReportMulti-channelCustomerExperienceReportin association with Econsultancy
  2. 2. Multi-channel Customer ExperienceThe aggregated experience a customer has of a brand gained fromall interactions across managed and unmanaged touch-points, forthe duration of that relationship.
  3. 3. Contents 1. About Foviance 2 2. About Econsultancy 3 3. Executive Summary and Highlights 4 4. Introduction by Foviance 6 5. Methodology and Sample 8 5.1. Methodology 8 5.2. Respondent profiles 8 5.2.1. Role within responding organisation 8 5.2.2. Business sector 9 5.2.3. Geography 10 5.2.4. Annual company turnover 10 5.2.5. Job role 11 5.2.6. Type of company 11 5.2.7. Type of agency 12 6. Findings 13 6.1. Customer experience strategy 13 6.1.1. Dominant competitive strategy 13 6.1.2. Differentiation through superior customer experience 13 6.1.3. Importance of multi-channel customer experience strategy 16 6.1.4. Company strategy for improving the customer experience 17 6.1.5. Ease of implementing a customer experience strategy 20 6.1.6. Long-term business performance and customer experience 21 6.1.7. Gaining a single view of the customer 24 6.2. Touch-points 26 6.2.1. Touch-points used to communicate directly with customers 26 6.2.2. Integration of channels with customer experience strategy 28 6.3. Barriers 30 6.3.1. Greatest barriers to improving the multi-channel experience 30 6.3.2. Problems improving the customer experience 33 6.3.3. How to improve the customer experience 36 6.4. Measurement 38 6.4.1. Organisational framework for measuring multi-channel 38 6.4.2. Methods to measure effectiveness of customer experience 39 6.4.3. Most useful data source for measuring customer experience 40 6.5. Ownership and budget 44 6.5.1. Ownership of multi-channel customer experience 44 6.5.2. Dedicated budget for improving customer experience 47 6.5.3. Job roles 49
  4. 4. 1. About FovianceBetter customer experiencesFoviance is a cross-channel customer experience consultancy to the world’s leading brands.We help clients drive business performance through better: • Customer relationships • Marketing effectiveness • Use of technology • Customer focussed cultureWe use our proprietary Foviance Framework© to help clients understand, define, assessand make improvements to their customer experience.Our Framework CY QU IEN AL ITY EFFICOur expertise includes: • Customer experience strategy • Customer insight • Customer experience testing • Customer analytics • Customer experience and services design • Client knowledge developmentFoviance works with each client to solve their single or multi-channel challenges in the area ofcustomer experience using a range of established tools or proprietary solutions.For further information:Tel:+44 (0)8450 546 500, e-mail: info@foviance.com, web: www.foviance.com2 Foviance: Multi-channel Customer Experience Report
  5. 5. 2. About EconsultancyEconsultancy is a digital publishing and training group that is used by more than 200,000internet professionals every month.The company publishes practical and time-saving research to help marketers make betterdecisions about the digital environment, build business cases, find the best suppliers, look smartin meetings and accelerate their careers.Econsultancy has offices in New York and London, and hosts more than 100 events every yearin the US and UK. Many of the world’s most famous brands use Econsultancy to educate andtrain their staff.Some of Econsultancy’s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, VirginAtlantic, Barclays, Deloitte, T-Mobile and Estée Lauder.Join Econsultancy today to learn what’s happening in digital marketing – and what works.Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York).You can also contact us online. Foviance: Multi-channel Customer Experience Report 3
  6. 6. 3. Executive Summary and HighlightsThe Multi-channel Customer Experience Report, published by Econsultancy in associationwith Foviance, is based on a survey of more than 500 companies and agencies. The researchexamines the extent to which organisations have a strategy for providing a joined-up customerexperience and how close companies are to the holy grail of a single customer view.It is clear that while the vast majority of companies understand its impact on businessperformance, very few organisations have integrated, cross-channel processes and systems inplace, or a strategy to help them to achieve this. • Almost half of companies (49%) say a joined-up multi-channel customer experience is very important to their organisation, and a further 41% say it is quite important. • More than two thirds of companies (68%) recognise a strong link between long- term business performance and customer experience, while 24% say there is a weak link. Only 8% say there is no link. • But nearly one in 10 companies (9%) surveyed, including organisations with revenues exceeding £1 billion, say there is no strategy for improving the customer experience. A further 69% say they are just beginning to develop the strategy. Only 22% of companies say they have a well-developed strategy.The research highlights how an increasing number of online and offline customer touch-pointsare making it even more difficult for organisations to ensure a consistent cross-channel customerexperience. Nine different online and offline touch-points are relevant for at least half of thecompanies surveyed.Survey respondents were asked how close their own organisations are to having a single viewof the customer. Only 32% of companies say they have the integrated systems and processesrequired to give customers a joined-up experience.Companies are typically trying to integrate systems and adopt a customer-centric approach, buthaven’t yet reached the stage where they have properly managed to harness these differentprocesses in a way which allows for seamless cross-channel engagement.Respondents were asked to indicate the most significant barriers which prevent them fromimproving the multi-channel customer experience. • The greatest barrier is organisational structure, which is one of the three greatest barriers for 41% of respondents. • The next most significant issue is complexity of customer experience, cited as a major barrier by 38% of respondents.It is clear that many organisations are lacking an individual or department to take responsibility forthe customer experience within the business. For some companies, the problem is compounded bya lack of budget.4 Foviance: Multi-channel Customer Experience Report
  7. 7. • More than a third of companies surveyed (38%) say that ownership of the multi-channel customer experience lies with a mixture of different departments, and less than a third of companies (31%) have a budget which is dedicated to improving the customer experience. • More than a quarter of companies (28%) say there is no budget at all for improving the customer experience, while a further 41% say that they use budget which was assigned for other things.Encouragingly, most companies are at least trying to tackle the challenges of a multi-channelcustomer experience even though, for most, there is still a long way to go. This report enablesorganisations to benchmark their progress and think about how they can become more advancedin their approach, at a time when customer expectations are higher than ever. Foviance: Multi-channel Customer Experience Report 5
  8. 8. 4. Introduction by FovianceThis report provides real insight about how businesses are thinking and acting in the area ofmulti-channel customer experience. The issue is important today because it builds upon theretention strategies that many have adopted as a result of the global recession.But there are other, more pressing reasons why it is a key strategic challenge for organisationsas they face an increasingly commoditised service economy and greater customer power broughtabout by the continuing evolution of the internet.Most importantly, it is a source of competitive advantage for those that can become trulycustomer-centric and there are various examples in the report that identify where businesses areon this journey.The vast majority of the world’s businesses operate in a service economy and as competitionhas increased they have taken steps to streamline service delivery and drive out operationalinefficiencies. Sometimes these changes have enhanced the customer experience, for exampleby reducing waiting times or delivering a more consistent service.More often than not though, they have commoditised the way services are delivered and in doingso have lost the ability to differentiate and have become indistinguishable from the pack.The challenge is further compounded by the dramatic effect the internet has had on multi-channelmarketing and customer experience. Power has moved with data-driven insight from the FMCGbehemoths, to the supermarket chains and now finally toward the customer.The internet is the point of integration for many of the different channels customers use andprovides far richer data about customer journeys and behaviours than ever before. But the riseof social networks has put the power with customers and it has never been more important fororganisations to create an environment where customers notice a positive difference.Foviance believes there are 5 key areas that need to be addressed if an organisation is to improveperformance by adopting a more customer centric strategy. These are: leadership & culture;systems and processes; customer insight, customer touch-points; and alignment with brand.By establishing the degree to which these areas are considered and integrated toward customercentricity we can position an organisation on our customer experience maturity model and createa road-map to move them forward.This report reveals that the majority of organisations are considering how to address thechallenges that multi-channel customer experience brings. It also indicates that most are at thecluttered stage with just a handful achieving considered or even capable status.Fewer still are in a position where customer centricity has become part of the culture of theirbusiness – part of their DNA.Ten years ago, with the internet in its infancy, customers were satisfied just to be exploring thebrave new world that being online delivered to them. Some businesses tried to make websites moreusable, others simply focussed on acquisition but as they worked towards these goals they wereleapfrogged by their customers who adopted technology faster and culturally became multi-channel.These customers are no longer prepared to accept that businesses are still learning and view theirmulti-channel interactions through a single lens sharing their experiences widely and candidly.6 Foviance: Multi-channel Customer Experience Report
  9. 9. The Foviance “Customer Experience Maturity Model” Paul Blunden CEO Foviance At Foviance we recognise that for a business to completely embrace multi-channel customer experience it is not a trivial undertaking. As this report reveals, the challenges range from organisational culture to basic budgeting, but the opportunity is tangible and most people surveyed recognise the direct link between customer centricity and business performance. Those that manage to pull it off will be the brands we all look to in the future and that customers talk about both off and online. Foviance: Multi-channel Customer Experience Report 7
  10. 10. 5. Methodology and Sample5.1. MethodologyThis report is based on a survey of more than 500 respondents to an online survey carried out inJune and July 2010. Respondents included both client-side (in-house) and supply-side respondents(i.e. those working for agencies, consultancies or technology companies with an interest incustomer experience).The findings are shown for both client-side (“company respondents”) and supply-side (“agencyrespondents”) separately.Information about the survey, including the link, was emailed to Econsultancy’s user base.The incentive for taking part was access to a complimentary copy of this report just before itspublication on the Econsultancy website.If you have any questions about the research, please email Econsultancy’s Research Director,Linus Gregoriadis (Linus@econsultancy.com).5.2. Respondent profiles5.2.1. Role within responding organisationMore than half of survey respondents (53%) work for an organisation “interested in improving thecustomer experience”, while some 41% work for agencies, consultancies or technology vendors.Figure 1: Which of the following most accurately describes your job role? 6% 41% 53% Client -side - company interested in improving the customer experience Supply- side - an agency helping companies to improve their customer experience Other Response: 5418 Foviance: Multi-channel Customer Experience Report
  11. 11. 5.2.2. Business sectorClient-side survey respondents are spread across a range of business verticals. The bestrepresented sectors are retail (19% of client-side respondents) and financial services (18%).CompaniesFigure 2: In which business sector is your organisation?20%   19% 18%18%  16%   15%14%  12%  10%   9% 8%   7% 6% 6%   5% 5% 4% 4%   3% 3% 2% 2%   1% 1% 1% 1% 1% 0%   l el e s es ng g or t re G g er s gy ty ity ai en ice al iv tin in CP av ca th ct er on t hi er ar tic ot Re m nm rv s rke Se Tr O op th is En Ch ph om / Ga eu Se bl al ai CG Pr ice a ic ac Pu & ile t He rt rv M bl Au l FM ia te m s ob Pu / ie nc En ar Se y /m ilit nc na Ph Ut ta Fi s om ul ns c le Co Te Response: 233 Foviance: Multi-channel Customer Experience Report 9
  12. 12. 5.2.3. GeographyJust over two thirds of client-side respondents (68%) are UK-based, while 15% are basedelsewhere in Europe. Respondents from North America make up 6% of the sample.“Other” regions represented include Australasia, Africa and the Middle East.CompaniesFigure 3: In which country/region are you (personally) based?80%   68%70%  60%  50%  40%  30%  20%   15% 11%10%   6% 0%   UK Europe (non-UK) North America Other Response: 2365.2.4. Annual company turnoverCompaniesFigure 4: What is your annual company turnover?25%   22% 21% 20%20%  15%   14% 13% 11%10%   5%   0%   <£ 1 million £ 1-10 million £ 10-50 million £ 50-150 million £ 150 million - More than £ 1 billion £ 1 billion Response: 23610 Foviance: Multi-channel Customer Experience Report
  13. 13. 5.2.5. Job role Survey respondents are most likely to work within their organisation’s e-commerce or digital department. This reflects Econsultancy’s user base and broad reach within the digital marketing industry. A third (34%) of company respondents work for marketing / sales. Companies Figure 5: Which part of your organisation do you work for? 50%   45%   43% 40%   34% 35%   30%   25%   20%   15%   10%   8% 7% 3% 2% 3% 5%   0% 0%   ns l ns l e r es ht ta ve he nc ig al io tio i le ig Ot na s /S t /d ra ica in rd Fi e oa er g un Op ce in m /b m t er to ke om m us l ar ve m /c /c M leco C- PRE- e nc rie pe ex er om Response: 289 st Cu 5.2.6. Type of company Figure 6: Is your company a multi-channel organisation or pure play? 8% 92% Multi-channel Pure play (100% Internet) Response: 236 Foviance: Multi-channel Customer Experience Report 11
  14. 14. 5.2.7. Type of agencyAgenciesFigure 7: What type of company do you work for?45%   40%40%  35%  30%   27%25%  20%   18%15%  10%   8% 8% 5%   0%   Full-service digital Independent consultant User experience Web design agency Other agency specialist agency Response: 21512 Foviance: Multi-channel Customer Experience Report
  15. 15. 6. Findings6.1. Customer experience strategy6.1.1. Dominant competitive strategyMore than half (61%) of respondents say the most dominant competitive strategy for theircompany is service or product differentiation.Exactly a fifth (20%) of respondents say their organisations have a niche focus, while only 7% saytheir strategy is price leadership.This question is based on Porter’s Competitive Advantage model which states that companies needto focus on either low cost or differentiation to prosper.CompaniesFigure 8: What would you say is your company’s most dominant competitive strategy?70%   61%60%  50%  40%  30%   20%20%   11%10%   7% 0%   Price leadership Service or product Niche focus Its not clear differentiation Response: 2646.1.2. Differentiation through superior customer experienceThe vast majority (86%) of companies say that they make some attempt to differentiate theirbrands through superior customer experience.Just under half of companies (46%) say they do this to a certain extent, while 40% say it is verymuch part of their strategy.Supply-side respondents [Figure 10] aren’t as convinced as company respondents that there arewidespread attempts to differentiate through customer experience.A quarter of agency respondents (26%) say their clients don’t try to differentiate throughcustomer experience, and only 15% say it is very much part of their strategy. Foviance: Multi-channel Customer Experience Report 13
  16. 16. CompaniesFigure 9: Does your organisation try to differentiate its brand through superior customerexperience? 14% 40% 46% Yes, this is very much part of our strategy Yes, we do this to a certain extent No, we dont do this Response: 264AgenciesFigure 10: Do your clients try to differentiate their brands through superior customer experience? 15% 26% 59% Yes, this is very much part of their strategy Yes, they do this to a certain extent No, they dont do this Response: 19814 Foviance: Multi-channel Customer Experience Report
  17. 17. Richard Sedley Commercial Director at Foviance and Course Director for Social Media at the Chartered Institute of Marketing In memory of the multi-channel customer experience Sometimes I’m pretty spontaneous and buy stuff straight awayafter a single website visit (a single customer journey). Sometimes I prevaricate, make selectionsonline, change my mind and leave, come back, add to basket, get distracted, check out anotherwebsite, check my bank account, leave the website, a week later return and then finally buysomething completely different from the high street store of the original company I was visitingthe website of (a customer odyssey across both managed and unmanaged touch-points).At the heart of measuring the multi-channel customer experience is our desire to shape thatexperience, not just when a customer interacts with us, but also between those touch-points.Just because someone has seen or interacted with us doesn’t mean that they have been influenced.And even if they have, what did the influencing? Or, more importantly when considering a customer’smulti-channel odyssey, what is remembered? There is no point influencing someone if they neitheract immediately, nor remember for later, that influence. (Indeed this could be the definition ofuninfluential.)The science of psychology understands two different types of memory. • Episodic Memory. The memory for ephemeral details, the individual features or the unique particulars of an experience. • Semantic Memory. The memory of meaning. Memory that preserves only the gist, the general significance of remembered experiences.Both of these memory types can be vital in shaping a multi-channel customer experience, whichleaves the question, ‘what can we do to help our customers with their semantic and episodicmemories?’ One of the most effective techniques is the use of the Peak-End Rule.This Behavioural Economics theory states that people are most likely to remember the best/worst part of an experience and the end of it. So ensuring that experiences have one exceptionalmoment and finish on a high could be the best way to ensure our customers remember us overour competition. Foviance: Multi-channel Customer Experience Report 15
  18. 18. 6.1.3. Importance of multi-channel customer experience strategyAlmost half of companies (49%) say a joined-up multi-channel customer experience is veryimportant to their organisation, and a further 41% say it is quite important. Only 9% say it is notvery important and 1% say it is not at all important.A similarly large proportion (91%) of supply-side respondents [Figure 12] believe that a joined-upmulti-channel experience is either very important or quite important (for their clients), but slightlyfewer respondents (42%) believe that it is very important.Table 1 shows that, of those companies who say that differentiating their brands through superiorcustomer experience is very much part of their strategy, a high number (67%) are not prioritisinga joined-up multi-channel approach.CompaniesFigure 11: How important is a joined-up multi-channel customer experience to your organisation?60%  50%   49% 41%40%  30%  20%  10%   9% 1% 0%   Very important Quite important Not very important Not at all important Response: 264Table 1 Breakdown - importance of joined-up multi-channel customer experience by extent to which organisations try to differentiate brand through superior customer experience Very Quite Not very Not at all important important important important Yes, this is very much part of 67% 27% 5% 1% our strategy Yes, we do this to a certain 39% 49% 11% 0% extent No, we don’t do this 31% 53% 14% 3%16 Foviance: Multi-channel Customer Experience Report
  19. 19. AgenciesFigure 12: Typically, how important is a joined-up multi-channel customer experience to your clients?60%   49%50%   42%40%  30%  20%  10%   9% 0% 0%   Very important Quite important Not very important Not at all important Response: 1996.1.4. Company strategy for improving the customer experienceNearly one in 10 companies (9%) say there is no strategy for improving the customer experience,and a further 69% say they are just beginning to develop the strategy.Despite the almost universal consensus around the importance of a joined-up customerexperience, only a relatively small proportion of companies (22%) say they have awell-developed strategy.It is clear that those looking from the outside are more sceptical about how well developedcompany strategies are.CompaniesFigure 13: How well developed is your company’s strategy for improving the customer experience?80%   69%70%  60%  50%  40%  30%   22%20%   9%10%   0%   There is no strategy We are just beginning to develop the We have a well developed strategy strategy Response: 263 Foviance: Multi-channel Customer Experience Report 17
  20. 20. Companies with a turnover of less than £1 million or more than £1 billion are most likely to claimto have a properly formulated strategy [Table 2].Despite this, it is clear that there are large organisations out there which are not paying anyattention to this area. Some 4% of companies with a turnover of more than £1 billion have nostrategy. Of those companies with a turnover of between £150 million and £1 billion, 7% say thisis the case.Looking specifically at chief-level or board level managers [Table 3], the vast majority (82%) saytheyare only just beginning to formulate a strategy. Only two of these respondents said there was nostrategy.The same table shows that those working in marketing and sales are most likely to claim theircompany has a well-developed strategy.Table 2Breakdown - strategy for improving the customer experience by sizeof the organisation. Just beginning to Well developed No strategy develop strategy strategy<£1 million 8% 68% 24%£1-10 million 14% 74% 12%£10-50 million 17% 66% 17%£50-150 million 4% 78% 17%£150 million - £1 billion 7% 76% 17%More than £1 billion 4% 69% 27%Table 3Breakdown - strategy for improving the customer experience bybusiness department There is no We are just beginning to We have a well strategy develop the strategy developed strategyC-level / board level 9% 82% 9%E-commerce / digital 6% 73% 21%Marketing / Sales 10% 64% 26%Customer experience / 18% 71% 12%customer insight18 Foviance: Multi-channel Customer Experience Report
  21. 21. Agencies [Figure 14] are more likely than company respondents to say that there is an absence ofany such strategy (24%) and less likely to say their clients have a well developed strategy (8%).AgenciesFigure 14: Typically, do your clients have a well developed strategy for improving thecustomer experience?80%   68%70%  60%  50%  40%  30%   24%20%  10%   8% 0%   No they dont have a strategy They are just beginning to develop their They have a well developed strategy strategy Response: 198 Foviance: Multi-channel Customer Experience Report 19
  22. 22. 6.1.5. Ease of implementing a customer experience strategyThis research clearly highlights the difficulty faced by most organisations when trying to implementa strategy for improving the customer experience.Two-thirds of companies (65%) say it is quite difficult, and a further 16% say it is very difficult.The larger the organisation, the more likely they are to say that this is very difficult [Table 4].Only 18% of companies say implementing a customer experience strategy is quite easy, and thisnumber decreases to just 5% for agencies [Figure 16].CompaniesFigure 15: How easy or difficult do you find it to implement a strategy for improving thecustomer experience?70%   65%60%  50%  40%  30%   18%20%   16%10%   0% 0%   Very easy Quite easy Quite difficult Very difficult Response: 264Table 4 Breakdown - ease of implementing customer strategy by size of the organisation Easy Quite difficult Very difficult <£1 million 17% 74% 9% £1-10 million 33% 53% 14% £10-50 million 16% 68% 16% £50-150 million 10% 76% 14% £150 million -£1 billion 15% 65% 20% More than £1 billion 14% 62% 24%20 Foviance: Multi-channel Customer Experience Report
  23. 23. AgenciesFigure 16: How easy or difficult do your clients find it to implement a strategy for improving thecustomer experience?90%  80%   77%70%  60%  50%  40%  30%  20%   17%10%   5% 1% 0%   Very easy Quote easy Quite difficult Very difficult Response: 1996.1.6. Long-term business performance and customer experienceMore than two thirds of companies (68%) recognise a strong link between long-term businessperformance and customer experience, while 24% say there is a weak link. Only 8% say thereis no link.Supply-side respondents [Figure 18] are not as convinced that companies recognise thiscorrelation. Only 45% of agencies say their clients typically recognise a strong link.The discrepancy between the client-side and supply-side perspective on this may be becauseagencies are not necessarily aware that their clients’ senior managers do in fact perceive a link.Agencies may be dealing with a particular silo within an organisation which has not been properlyassimilated into a broader company strategy or exposed to senior management thinking.Smaller companies are more likely to recognise a strong link [Table 5].Table 6 shows that there is a strong correlation between recognition of the link with businessperformance and the extent to which companies have developed a strategy for improvingcustomer experience. Foviance: Multi-channel Customer Experience Report 21
  24. 24. CompaniesFigure 17: Does your company recognise a link between long-term business performance andcustomer experience? 8% 24% 68% Yes, a strong link Yes, a weak link No Response: 262AgenciesFigure 18: Do your clients typically recognise a link between long-term business performance andcustomer experience? 13% 45% 43% Yes, a strong link Yes, a weak link No Response: 19822 Foviance: Multi-channel Customer Experience Report
  25. 25. Table 5Link with long-term business performance and size of the organisation Yes, a strong Yes, a weak link No link<£1 million 77% 12% 12%£1-10 million 70% 26% 5%£10-50 million 62% 21% 17%£50-150 million 62% 24% 14%£150 million -£1 billion 66% 32% 2%More than £1 billion 70% 23% 7%Table 6Breakdown - Link with long term business performance by extent of customerexperience strategy Yes, a strong Yes, a weak link No linkThere is no strategy 38% 29% 33%We are just beginning to 67% 27% 6%develop the strategyWe have a well developed 82% 15% 4%strategy Foviance: Multi-channel Customer Experience Report 23
  26. 26. 6.1.7. Gaining a single view of the customerSurvey respondents were asked how close their own organisations (or their clients) were to havinga single view of the customer.Based on the Foviance Customer Experience Maturity Model [Figure 19], an organisation’s progressin this respect can be broken down into four phases based on long-term business performance andthe approach to customer experience: • Cluttered: Operational systems and processes are tactical and single-channel driven • Considered: Individual systems and processes are customer focussed but lack links cross-channel • Capable: Integrated systems and processes but not fully harnessed cross-channel • Cultural: Fully integrated systems and processes harnessed cross-channelFigure 19: Foviance Customer Experience Maturity ModelFigure 20 shows that the majority of organisations are either at the “cluttered” (24%) or“considered” stage (44%), and therefore lacking joined-up systems and processes.Just over a quarter of companies (28%) say they are now at the “capable” stage, with integratedsystems and processes which are customer-focussed but not fully harnessed cross-channel.Only 4% claim to have reached the promised land of “cultural” customer experience, built oncross-channel integration which is being fully harnessed.According to agencies [Figure 21], their clients are typically lower down the ladder of maturity,with only a quarter in the capable or cultural phase.24 Foviance: Multi-channel Customer Experience Report
  27. 27. CompaniesFigure 20: How close is your organisation to having a single view of the customer?Cluttered:Operational systems and processes are tactical and single-channel driven 24%Considered:Individual systems and processes are customer focused but lack links cross-channel 44%Capable:Integrated systems and processes but not fully harnessed cross-channel 28%Cultural:Fully integrated systems and processes harnessed cross-channel 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Response: 263AgenciesFigure 21: Typically, how close are your clients to having a single view of the customer?Cluttered:Operational systems and processes are tactical and single-channel driven 28%Considered:Individual systems and processes are customer focused but lack links cross-channel 47%Capable:Integrated systems and processes but not fully harnessed cross-channel 23%Cultural:Fully integrated systems and processes harnessed cross-channel 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Response: 198 Foviance: Multi-channel Customer Experience Report 25
  28. 28. Table 7 shows the breakdown of responding companies by size. The largest companies (those witha turnover of more than £1 billion) are most likely to say that they are at the cluttered stage.These companies struggle the most to get a single view of the customer because of the way theyhave typically evolved into sprawling businesses with a multitude of different business units, eachwith their own data, technology and processes.Table 7Breakdown - gaining a single view of the customer by size of the organisation Cluttered Considered Capable Cultural<£1 million 27% 50% 19% 4%£1-10 million 18% 34% 41% 7%£10-50 million 28% 55% 17% 0%£50-150 million 13% 43% 39% 4%£150 million - £1 billion 30% 43% 28% 0%More than £1 billion 36% 40% 24% 0%6.2. Touch-points6.2.1. Touch-points used to communicate directly with customersFigure 22 shows a range of different customer communication touch-points and the extent towhich they are used by responding companies.It can be seen that nine different online and offline touch-points are relevant for at least half of thecompanies surveyed. Against this backdrop, it is easy to see why so many organisations struggleto ensure a consistent cross-channel customer experience.The almost universal nature of digital communication is highlighted by the fact that 97% ofcompanies use websites to communicate with customers, while 87% use email.The most commonly used offline channel is telephone support or sales which almost threequarters (74%) of companies use. Two thirds of companies (66%) say they carry out offlinebrand advertising.The same proportion (66%) use digital advertising as a touch point, while almost the same numberof respondents (65%) say they use social media. It is a sign of the times that as many companiesnow communicate through social media as offline direct marketing (also 65%).Despite the growth of mobile marketing in recent years, fewer than a quarter of companies say theyuse mobile applications (23%) or text or picture messaging (22%) to communicate with customers.26 Foviance: Multi-channel Customer Experience Report
  29. 29. CompaniesFigure 22: Which touch-points does your organisation use to communicate directly with customers?120%  100%   97% 87% 80%   74% 66% 66% 65% 65% 59% 60%   55% 40%   37% 23% 22% 19% 20%   9% 0%   e S l s ia s s ps ks s s g ) g ai e le ey ce t ue si t M in in ed le in os Em ap sa /M tis tis n rv eb og ut ffl lm Ki re su er r ile lo t/ (o W al ve fe S cia dv ob at or ai er SM on ad g rc t la in pp So M om Re /c d t t/ ta e ke su an rd st gi ts x ar Cu br lo Te ne Di en tm ai ho ne Ev M c p fli re Response: 258 le Of Di TeAgenciesFigure 23: Which touch-points do your clients typically use to communicate directly with customers?100%   90%   89% 80% 80%   74% 73% 69% 70%   65% 61% 60% 60%   50%   39% 38% 40%   30%   28% 28% 23% 20%   10%   8% 0%   e S l ia ps ks s ts s s s g e) g ai le ce ey ue si t M in in ed le in os Em ap sa /M tis s n rv eb og ut ffl rti lm Ki re su er ile lo t/ (o W al ve fe S cia dv ob at or ai er SM on ad g rc t la in pp So M om Re /c d t t/ ta e ke su an rd st gi ts x ar Cu br lo Te ne Di en tm ai ho ne Ev M c p fli re le Of Di Te Response: 192 Foviance: Multi-channel Customer Experience Report 27
  30. 30. 6.2.2. Integration of channels with customer experience strategyLess than a third of companies (31%) say that the different customer channels relevant for themare well integrated into their overall customer experience strategy. Only 7% say that there is nointegration, but 62% say that the channels are not very well integrated.The findings here are consistent with earlier data which showed that companies are typicallytrying to integrate systems and adopt a customer-centric approach, but haven’t yet reached thestage where they have properly managed to harness these different processes into a trulyseamless cross-channel experience.CompaniesFigure 24: Thinking about the different channels you have, how well integrated are they into youroverall customer experience strategy?70%   62%60%  50%  40%   29%30%  20%  10%   7% 2% 0%   Very well integrated Quite well integrated Not very well integrated Not at all integrated Response: 258AgenciesFigure 25: Thinking about the different channels your clients have, how well integrated are theyinto their overall customer experience strategy?80%   67%70%  60%  50%  40%  30%   24%20%  10%   8% 1% 0%   Very well integrated Quite well integrated Not very well integrated Not at all integrated Response: 19028 Foviance: Multi-channel Customer Experience Report
  31. 31. Neal Preece eCommerce Development Director Shop Direct Multi-channel waits for no-one In the ten years that eCommerce has come into its own, it’s amazing to think that we are yet to get ahead in multi-channel integration. This is underlined by the two themes that come through in this report – firstly, internal silos where different channel teams haven’t realised the joint opportunity (like stores seeing online as cannibalising sales for example) and secondly,technology struggling to keep up where legacy systems and eCommerce platforms are not talkingto each other.It is now the customer who is driving business to change its attitude toward integration. It’s nouse ignoring the customer who walks into your store with a product print-out from your website orthe contact centre advisor not knowing what products are on sale online. The customer only seesone business and they expect the right hand to know what the left is doing.What’s more, multi-channel no longer means stores, internet and contact centres. It now meansmulti-device too as eCommerce merges into mCommerce and we have to include iPhones, Androidand Google TV. Consumers are blurring the lines once again, expecting to get a consistentexperience across these new channels.Luckily eCommerce technology is getting better and once we have embraced the conceptof a multi-channel experience it is going to be simpler to offer customers exactly whatthey want regardless of the channel they choose.At Shop Direct, we’re as multi-channel as we can be considering we don’thave stores. We’ve tackled that head-on by building our Collect+ capabilitywhich allows delivery to over 3500 local drop-off points nationwide and byimproving our offer to customers to meet their needs with time choicessuch as ‘avoid the school run.’ Our new ATG eCommerce platform hasmulti-channel and multi-device capability in its development path so wecan improve the service we offer to our customers over the next year toget us into that small group in the report who see themselves as ‘cultural.’ Foviance: Multi-channel Customer Experience Report 29

×