30.11.2016 A keynote from startup event Slush on building a profitable customer experience strategy. How to make customers return and spend more.

1. Customer
Experience Strategy
How to compete against all
these startups?
Eero Martela @eeromartela
30.11.2016
columbiaroad.com / @columbiaroadcom

2. ColumbiaRoad
Digital Commerce Consulting
Customer focus
• CX Strategy and transformation
• CX Vision and planning
• Customer Journey Optimization
• Customer insight
Digital Sales
• eCommerce strategy and design
• Omni-channel strategy and design
• Inbound
• eCommerce data analytics
Implementation with lean service creation
• B2B Sales Channels
• Continuous design & development
• Enabling agile
• Concept and UX design
• Prototyping
• eCommerce Shops

3. Customer
Experience

4. Managing
Customer
Experience
MEASUREMENT
CUSTOMER EXPERIENCE
STRATEGY AND LEADERSHIP
SHARED UNDERSTANDING BETWEEN SILOS
EMPLOYEE MOTIVATION AND EMPOWERMENT
CUSTOMER
UNDERSTANDING

5. ColumbiaRoad
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89% of companies
compete mostly on
customer experience
50% of consumer product
investments will be on
customer experience
B2B buyers demand
B2C type of
customer experiences

6. ColumbiaRoad
Good CX provides
35% higher returns.
Customers with best
past experiences
spend 140% more.

7. ColumbiaRoad
75% of respondents find
service to be critical…
...still, satisfaction levels
are constantly decreasing.

8. An app is not enough!
Marketing is not enough!
A smile in customer service is not enough!
CX IS HARD!

9. It is about…
...operations and processes
...numbers and culture
...passion and leadership
CX IS HARD!

10. ColumbiaRoad
Strategy is the number 1
key building block of
brilliant customer experience

11. ColumbiaRoad

12. ColumbiaRoad
CUSTOMER
CX Strategy is not about having
the word ‘customer’ in each of
your charts and diagrams

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MEASUREMENT
CUSTOMER EXPERIENCE
STRATEGY AND LEADERSHIP
SHARED UNDERSTANDING BETWEEN SILOS
EMPLOYEE MOTIVATION AND EMPOWERMENT
CUSTOMER
UNDERSTANDING

14. 5 Elements of
CX Strategy

15. Critical success factors in
veterinarian business?

16. How do you solve customers’ aspirations and meet
their expectations at every single touchpoint?
CUSTOMER JOURNEY
VALUE
PROPOSITION
CUSTOMER
JOB TO BE DONE

17. ColumbiaRoad
Job to be done?

18. ColumbiaRoad
CUSTOMER
JOB TO BE DONE
What customer
actually needs
What
customer
wants
What customer
expects
What
customer
feels
It’s not about function,
it’s about experiences

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Healthy food to your
home/office door in
26 minutes.

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LEVELS OF VALUE
Functional
Emotional
Core life
values
Value proposition = Your particular way of helping
customer reach their aspirations with your assets
CUSTOMER
EXPERIENCE
VISION

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Workplace lifecycle
services - not just
furniture

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Customer’s aspirations have to be fulfilled throughout the
whole journey from awareness through buying to termination
CUSTOMER JOURNEY
AW
ARENESS
GETTING
FAM
ILIAR
CONSIDER
PURCHASE
USE
SERVICE
/
PRODUCT
ADVOCACY
RETIRE

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Our principal task is
to ensure a smooth
commerce and
every-day life.

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CUSTOMER JOURNEY PROCESS
VALUE
PROPOSITION
CUSTOMER
JOB TO BE
DONE
How can you help customers to reach their
aspirations with the assets you have?

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Now, who are you again
competing against?

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CUSTOMER JOURNEY PROCESSVALUE
PROPOSITION
CUSTOMER
JOB TO BE
DONE
COMPETITORS
Finally, which competitors are trying to solve the
same job to be done as you - now and in future?

27. 5 Aspects for
Applying CX
Strategy

28. ColumbiaRoad
Define where to focus your efforts - customer
intimacy is not everyone’s game
29
VALUE
PROPOSITION
CUSTOMER
JOURNEY
PROCESS
Operativeefficiency=price
Productleadership
Customer intimacy

29. ColumbiaRoad
Key questions in defining your CX strategy
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CUSTOMER JOURNEY PROCESSVALUE
PROPOSITION
CUSTOMER
JOB TO BE
DONE
COMPETITORS
How do new technologies and consumer habits affect the pattern?
What is the business case?
How to do money?
Who is the
customer?
Is this in sync with
job to be done?
What are the
critical points?
Are the assets able to
fulfill the expectations?
Who are
competing for
the same job to
be done?

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How does a change in one affect the whole?
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CUSTOMER JOURNEY PROCESS
CUSTOMER
JOB TO BE
DONE
COMPETITORS
VALUE
PROPOSITION
E.g. changing
competition
E.g. change in
value prop.

31. ColumbiaRoad
How to ensure you are focusing on both short-term
and long-term efficiently with minimal risk?
32
Time
Value
2 months - 1 year 1 year - 3 years 3 year - 6 years
Incremental
New
Disruptive

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How to measure customer experiences?
33
CUSTOMER JOURNEY
VALUE
PROPOSITION
CUSTOMER
JOB TO BE DONE
Does your customer
perceive your value
proposition as planned?
What are the key points and bottlenecks
in overall journey?
How are customers moving between phases?
How is each touchpoint performing?
Is customer getting
their job done?

34. ColumbiaRoad

35. Why Columbia Road?
FOCUS: our focus is purely on creating & growing businesses with
digital. Our mission is to challenge current Finnish digital channel
approach which is either IT or marketing driven, not holistic.
OUR TEAM: Includes strong B2C & B2B digital sales channel
expertise. Strong experience from every aspect in relation to
customer experience and digital sales.
OUR SKILLS: End-to-end delivery capability from strategy to
implementation. Sales strategy, customer journey mapping,
concept design, agile development, data analysis & growth
consulting.
MOTIVATION: We are a young & dynamic growth company with
hunger to make this a success story.
RISKS MINIMIZED: We are backed up by Futurice’s 300+ digital
experts.
columbiaroad.com

36. ColumbiaRoad
Digital Commerce Consulting
Customer focus
• CX Strategy and transformation
• CX Vision and planning
• Customer Journey Optimization
• Customer insight
Digital Sales
• eCommerce strategy and design
• Omni-channel strategy and design
• Inbound
• eCommerce data analytics
Implementation with lean service creation
• B2B Sales Channels
• Continuous design & development
• Enabling agile
• Concept and UX design
• Prototyping
• eCommerce Shops

37. Sources
38

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Of global digital companies 28% strongly agree and 50% companies agree
that they try to differentiate through customer experience
Source: eConsultancy
89% of companies expect to compete mostly on the
basis of customer experience by 2016
50% of consumer product investments will be, by 2017,
redirected to customer experience innovations
Source: Gartner for Marketing Leaders
Source: Gartner for Marketing Leaders
Your competitors will try to win you
through superior customer experience

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Leaders in customer experience generated 35% higher
returns than market average.
Laggards posted 45% lower returns than market average.
Source: Watermark Consult
Customers who had the best past experiences spend 140% more compared to
those who had the poorest past experience.
Source: Harvard Business Review
Customer experience has a critical
impact on company profitability

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75% of companies recognise service as competitive differentiator…
..still, customer satisfaction levels have decreased for 4th year in
succession.
Still, companies are failing to meet
customer expectations
Source: Dimension Data

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Strategy is perceived to be the nr. 1 key
building block of brilliant customer
experience, according to respondents.
Source: eConsultancy
CX should be the heart of your strategy