The Path to Customer Experience Maturity
in

The Age of the Customer
Craig Menzies, Principal Analyst
Serving Customer Exp...
Why should we care about
customer experience?

© 2012 Forrester Research, Inc. Reproduction Prohibited
© 2012 Forrester Research, Inc. Reproduction Prohibited
How customers perceive their
interactions with your company
© 2012 Forrester Research, Inc. Reproduction Prohibited
Enjoyable
Easy
Meets Needs
© 2012 Forrester Research, Inc. Reproduction Prohibited
Customer experience
correlates to loyalty
 Willingness to consider
for another purchase
 Likelihood to
recommend to a fr...
The playing field for businesses is
changing before your eyes

© 2012 Forrester Research, Inc. Reproduction Prohibited
Sources of competitive advantage
change over time
Sources of competitive advantage
change over time
Sources of Dominance
Age of
Information
Age of
Distribution
Age of
Manuf...
Sources of competitive advantage
change over time
Sources of Dominance
Age of
Information
Age of
Distribution
Microsoft,
D...
Sources of competitive advantage
change over time
Age of the
Customer

Sources of Dominance
Age of
Information
Age of
Dist...
The Age of the Customer
A 20 year business cycle in which
the most successful enterprises will
reinvent themselves to
syst...
My Buying Criteria:
•My friend was selling it
(proximity)
•I could afford it (price)
•I hadn’t heard anything bad
about it...
Fast forward 25 years!
Word of Mouth, Price,
Expert opinion, Proximity
AND…

© 2013 Forrester Research, Inc. Reproduction ...
Highly detailed specifications
© 2013 Forrester Research, Inc. Reproduction Prohibited
Competitive comparisons
© 2013 Forrester Research, Inc. Reproduction Prohibited
With even more detailed specs
© 2013 Forrester Research, Inc. Reproduction Prohibited
Reviews from other buyers
© 2013 Forrester Research, Inc. Reproduction Prohibited
Forums of opinionated owners
© 2013 Forrester Research, Inc. Reproduction Prohibited
•
•
•
•
•
•
•
•
•
•
•
•
•
•
© 2013 Forrester Research, Inc. Reproduction Prohibited

Detailed specs
Model comparisons
Trus...
In short…

The Customer
has all the power

© 2013 Forrester Research, Inc. Reproduction Prohibited
© 2013 Forrester Research, Inc. Reproduction Prohibited
© 2014 Forrester Research, Inc. Reproduction Prohibited

22
© 2013 Forrester Research, Inc. Reproduction Prohibited
© 2014 Forrester Research, Inc. Reproduction Prohibited

23
© 2013 Forrester Research, Inc. Reproduction Prohibited
© 2014 Forrester Research, Inc. Reproduction Prohibited

24
© 2013 Forrester Research, Inc. Reproduction Prohibited
© 2014 Forrester Research, Inc. Reproduction Prohibited

25
So how does one “do”
customer experience?

© 2013 Forrester Research, Inc. Reproduction Prohibited
20
362
10,000
Khumbu Icefall
Lhotse Face
“clearly unused to even basic
mountaineering equipment”
Customer
Experience
47%

Differentiate the company
from leaders in their industry

13%

Differentiate the company
from leaders in ANY industry...
Firms are not doing what it takes
47%
don’t measure customer
experience quality
79%
don’t train employees on how to deliver
the target customer experience
Not differentiating
Low customer
experience maturity
Customer Experience Maturity

The extent to which an organization
routinely performs the practices
Customer Experience Maturity

The extent to which an organization
routinely performs the practices
required to design, imp...
Customer Experience Maturity

The extent to which an organization
routinely performs the practices
required to design, imp...
High CX maturity
Practices are performed systematically

Low CX maturity
Practices are missing or performed in an ad hoc w...
Get on the path to high
customer experience maturity.

© 2013 Forrester Research, Inc. Reproduction Prohibited
Differentiate
Optimize
Repair

Elevate
Differentiate
Optimize
Repair

Elevate
STOP the avalanche of
bad customer experiences
Repair Phase Key Activities

›
›
›
›

Identify bad experiences
Prioritize fixes

Coordinate implementation
Measure results
2008 CXi – Wireless Carriers
$1.7 billion
OK

Very Poor

Base: US online consumers who have interacted with each firm
Source: North American Technographics Customer...
Base: US online consumers who have interacted with each firm
Source: North American Technographics Customer Experience Onl...
Differentiate
Optimize
Repair

Elevate
Make good CX behaviour the norm
Elevate Phase Key Activities

›
›
›
›

Define a customer experience strategy
Share customer insights with all employees

C...
Edward Jones CXi Score 2011 – 2013

Good
OK

Base: US online consumers who have interacted with Edward Jones
Source: North...
Differentiate
Optimize
Repair

Elevate
A more sophisticated
customer experience toolkit
Optimize Phase Key Activities

›
›
›
›

Model the relationship between CX quality and
business results
Build strong experi...
•

Let personality shine

•

Provide options

•

Help guests feel comfortable in
public spaces
“Matt is chillin”
Systematic customer experience training
Full Associate
Training

Walk-through
Immersion

Six months before

Pre-reno

6 We...
Courtyard by Marriott CXi Score ‘10 – ‘13

Good

Base: US online consumers who have interacted with Courtyard by Marriott
...
Courtyard by Marriott CXi Score ‘10 – ‘13

Excellent

Good

Base: US online consumers who have interacted with Courtyard b...
Differentiate
Optimize
Repair

Elevate
Catapult you to the top
Differentiate Phase Key Activities

›
›
›

Re-frame customer problems
Reveal unmet customer needs
Re-think the entire CX e...
Car loans
Mortgages
Insurance
USAA

Lead over
next highest
brand

Banks

85

+7

Credit Card
Providers

82

+7

Insurance
Providers

83

+9

© 2013 Forr...
How do you get started on
the path to CX maturity?
The Experience-Driven Organization Playbook

May 2012 “Transform To An Experience-Driven Organization”

Assessment: Where ...
Assess your maturity
Understand your
customer’s journey(s)
Does your digital channel meet
your customer’s needs?
Thank you
Craig Menzies
Principal Analyst, Forrester Research (Sydney, Australia)

cmenzies@forrester.com
+61 02 9006 3352...
We Need You!
Please join our Asia Pacific Customer Experience
Peer Research Panel and take the 2014 CX Survey!
- Contribut...
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester
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NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester

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NASSCOM ILF 2014: The Path to Customer Experience Maturity in The Age of the Customer - Craig Menzies, Forrester

  1. 1. The Path to Customer Experience Maturity in The Age of the Customer Craig Menzies, Principal Analyst Serving Customer Experience Professionals Twitter: @craigmenzies, @forrester, #NASSCOM_ILF My CX blog: http://blogs.forrester.com/craig_menzies 12th February, 2014
  2. 2. Why should we care about customer experience? © 2012 Forrester Research, Inc. Reproduction Prohibited
  3. 3. © 2012 Forrester Research, Inc. Reproduction Prohibited
  4. 4. How customers perceive their interactions with your company © 2012 Forrester Research, Inc. Reproduction Prohibited
  5. 5. Enjoyable Easy Meets Needs © 2012 Forrester Research, Inc. Reproduction Prohibited
  6. 6. Customer experience correlates to loyalty  Willingness to consider for another purchase  Likelihood to recommend to a friend  Likelihood to switch business to a competitor © 2012 Forrester Research, Inc. Reproduction Prohibited
  7. 7. The playing field for businesses is changing before your eyes © 2012 Forrester Research, Inc. Reproduction Prohibited
  8. 8. Sources of competitive advantage change over time
  9. 9. Sources of competitive advantage change over time Sources of Dominance Age of Information Age of Distribution Age of Manufacturing
  10. 10. Sources of competitive advantage change over time Sources of Dominance Age of Information Age of Distribution Microsoft, Dell, Google, Capital One Age of Manufacturing Ford, RCA, GE, Boeing, P&G, Sony Wal-Mart, Toyota, UPS, CSX Dominant Companies
  11. 11. Sources of competitive advantage change over time Age of the Customer Sources of Dominance Age of Information Age of Distribution Microsoft, Dell, Google, Capital One Age of Manufacturing Ford, RCA, GE, Boeing, P&G, Sony ? Contenders include Southwest Airlines, USAA, Amazon, … Wal-Mart, Toyota, UPS, CSX Dominant Companies
  12. 12. The Age of the Customer A 20 year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.
  13. 13. My Buying Criteria: •My friend was selling it (proximity) •I could afford it (price) •I hadn’t heard anything bad about it (information) •It was on the cover of a magazine (media) © 2013 Forrester Research, Inc. Reproduction Prohibited
  14. 14. Fast forward 25 years! Word of Mouth, Price, Expert opinion, Proximity AND… © 2013 Forrester Research, Inc. Reproduction Prohibited
  15. 15. Highly detailed specifications © 2013 Forrester Research, Inc. Reproduction Prohibited
  16. 16. Competitive comparisons © 2013 Forrester Research, Inc. Reproduction Prohibited
  17. 17. With even more detailed specs © 2013 Forrester Research, Inc. Reproduction Prohibited
  18. 18. Reviews from other buyers © 2013 Forrester Research, Inc. Reproduction Prohibited
  19. 19. Forums of opinionated owners © 2013 Forrester Research, Inc. Reproduction Prohibited
  20. 20. • • • • • • • • • • • • • • © 2013 Forrester Research, Inc. Reproduction Prohibited Detailed specs Model comparisons Trusted reviews Best place to buy Best price to pay Special offers Best insurance deals Owner opinions Maintenance history Accessories Upgrades Social events Where to ride Etc, etc, etc, etc…
  21. 21. In short… The Customer has all the power © 2013 Forrester Research, Inc. Reproduction Prohibited
  22. 22. © 2013 Forrester Research, Inc. Reproduction Prohibited © 2014 Forrester Research, Inc. Reproduction Prohibited 22
  23. 23. © 2013 Forrester Research, Inc. Reproduction Prohibited © 2014 Forrester Research, Inc. Reproduction Prohibited 23
  24. 24. © 2013 Forrester Research, Inc. Reproduction Prohibited © 2014 Forrester Research, Inc. Reproduction Prohibited 24
  25. 25. © 2013 Forrester Research, Inc. Reproduction Prohibited © 2014 Forrester Research, Inc. Reproduction Prohibited 25
  26. 26. So how does one “do” customer experience? © 2013 Forrester Research, Inc. Reproduction Prohibited
  27. 27. 20 362 10,000
  28. 28. Khumbu Icefall
  29. 29. Lhotse Face
  30. 30. “clearly unused to even basic mountaineering equipment”
  31. 31. Customer Experience
  32. 32. 47% Differentiate the company from leaders in their industry 13% Differentiate the company from leaders in ANY industry : 100 customer experience professionals (percentages may not total 100 because of rounding) ce: Q4 2012 Global Customer Experience Peer Research Panel Online Survey
  33. 33. Firms are not doing what it takes
  34. 34. 47% don’t measure customer experience quality
  35. 35. 79% don’t train employees on how to deliver the target customer experience
  36. 36. Not differentiating
  37. 37. Low customer experience maturity
  38. 38. Customer Experience Maturity The extent to which an organization routinely performs the practices
  39. 39. Customer Experience Maturity The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience
  40. 40. Customer Experience Maturity The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way.
  41. 41. High CX maturity Practices are performed systematically Low CX maturity Practices are missing or performed in an ad hoc way
  42. 42. Get on the path to high customer experience maturity. © 2013 Forrester Research, Inc. Reproduction Prohibited
  43. 43. Differentiate Optimize Repair Elevate
  44. 44. Differentiate Optimize Repair Elevate
  45. 45. STOP the avalanche of bad customer experiences
  46. 46. Repair Phase Key Activities › › › › Identify bad experiences Prioritize fixes Coordinate implementation Measure results
  47. 47. 2008 CXi – Wireless Carriers
  48. 48. $1.7 billion
  49. 49. OK Very Poor Base: US online consumers who have interacted with each firm Source: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
  50. 50. Base: US online consumers who have interacted with each firm Source: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
  51. 51. Differentiate Optimize Repair Elevate
  52. 52. Make good CX behaviour the norm
  53. 53. Elevate Phase Key Activities › › › › Define a customer experience strategy Share customer insights with all employees Create a consistent, companywide customer experience measurement framework Start following a human-centered design process
  54. 54. Edward Jones CXi Score 2011 – 2013 Good OK Base: US online consumers who have interacted with Edward Jones Source: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
  55. 55. Differentiate Optimize Repair Elevate
  56. 56. A more sophisticated customer experience toolkit
  57. 57. Optimize Phase Key Activities › › › › Model the relationship between CX quality and business results Build strong experience design practices Sharpen employees’ CX related skills through targeted training Evaluate employee performance against rolespecific CX metrics
  58. 58. • Let personality shine • Provide options • Help guests feel comfortable in public spaces
  59. 59. “Matt is chillin”
  60. 60. Systematic customer experience training Full Associate Training Walk-through Immersion Six months before Pre-reno 6 Webinars 11 days before 3 months after reopening 2 – 3 Day Post-Visit
  61. 61. Courtyard by Marriott CXi Score ‘10 – ‘13 Good Base: US online consumers who have interacted with Courtyard by Marriott Source: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
  62. 62. Courtyard by Marriott CXi Score ‘10 – ‘13 Excellent Good Base: US online consumers who have interacted with Courtyard by Marriott Source: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
  63. 63. Differentiate Optimize Repair Elevate
  64. 64. Catapult you to the top
  65. 65. Differentiate Phase Key Activities › › › Re-frame customer problems Reveal unmet customer needs Re-think the entire CX ecosystem
  66. 66. Car loans Mortgages Insurance
  67. 67. USAA Lead over next highest brand Banks 85 +7 Credit Card Providers 82 +7 Insurance Providers 83 +9 © 2013 Forrester Research, Inc. Reproduction Prohibited
  68. 68. How do you get started on the path to CX maturity?
  69. 69. The Experience-Driven Organization Playbook May 2012 “Transform To An Experience-Driven Organization” Assessment: Where Are You On The Path To Customer Experience Maturity? October 11, 2013 | Megan Burns Gather best practices Overview: Transform To An Experience-Driven Organization May 7, 2012 | Harley Manning
  70. 70. Assess your maturity
  71. 71. Understand your customer’s journey(s)
  72. 72. Does your digital channel meet your customer’s needs?
  73. 73. Thank you Craig Menzies Principal Analyst, Forrester Research (Sydney, Australia) cmenzies@forrester.com +61 02 9006 3352, +61 43 555 1412 Twitter: @craigmenzies, @forrester, #NASSCOM_ILF My CX blog: http://blogs.forrester.com/craig_menzies
  74. 74. We Need You! Please join our Asia Pacific Customer Experience Peer Research Panel and take the 2014 CX Survey! - Contribute your views and insights to leading edge industry research (confidential/anonymous) - Receive free research reports and read the views of other people working with the same challenges day in day out Get in touch: cmenzies@forrester.com
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