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The secret spice of great customer experiences

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An overview of main CX themes and trends from STKI's annual summit 2019

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The secret spice of great customer experiences

  1. 1. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 1 The secret spice of GREAT EXPERIENCES STKI Summit 2019
  2. 2. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 2 Main Themes 2019 for Customer Experience DATA-CENTRIC CX THE CHANNEL DIVIDE 01 02 03 06 05 08 07 04 A special focus on data platforms that manage a single customer identity Addressing the channels disconnect gap CONVENIENT CX Striving to simplify experiences, reducing CES and cognitive effort JOURNEY-CENTERED ORG. Managing journeys as products Organizing around CX MAKING SENSE OF EXPERIENCES Increasing use of Experience / Journey Analytics & VOC OUTCOME-DRIVEN DESIGN Designing experiences around the “job to be done” AUTOMATION & AI Scaling CX along with the human touch BRAND & CX CONNECT Refocus on the brand and connecting CX to it STKI Summit 2019
  3. 3. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 3
  4. 4. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 4 50% of CMOs will bring BRAND back as their top priority*. In 2019, CMOs will move more budget and attention to reshaping the brand. Some will take the added step of reaffirming and honing purpose as an internal engine to re-establish the connection among their firm’s purpose, brand, and experience. * (Forrester).BRAND EXPERIENCE is the PROMISE. CUSTOMER EXPERIENCE is the REALITY CHECK. WHAT YOU PROMISE: WHAT YOU DELIVER:
  5. 5. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 5
  6. 6. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 6 Management. Employees. Customers. Partners.
  7. 7. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 7 People love brands that constantly deliver (CX) on their promises (Brand)
  8. 8. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 8 WHICH BRANDS ARE DOING A REALLY GOOD JOB IN CONNECTING BRAND PROMISE TO CX? 3% annual growth rate advantage 2% lower expense ratio 80% higher customer loyalty* *Source: McKinsey
  9. 9. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 9 ✓ Most beloved financial brand on earth ✓ NPS Score x 4 times higher than other banks ✓ 97% retention rate ✓ 10,000 employee-driven CX patents (897 registered) ✓ 22% higher empathy score. All employees are also customers and attend design thinking workshops THE PROMISE: THE FULLFILLMENT: “When you join USAA, you become part of a family who stands by you during every stage of your life.” “We know what it means to serve”
  10. 10. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 10 All core values are transparently kept in the product, (none existing) packaging, its enthusiastic employees and award-winning customer experience Strong community of “Lushies”: brand fans THE PROMISE THE FULLFILLMENT 6 core values: 1. Fighting animal testing 2. Fresh 3. Ethical Buying 4. 100% vegetarian 5. Handmade 6. Naked packaging
  11. 11. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 11 Low prices due to control of supply chain & vertical integration Buy a pair -> Give a pair (>5M pairs till now) Actively assisting in making eye examinations more accessible worldwide, especially for school children THE PROMISE THE FULLFILLMENT Offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses
  12. 12. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 12 ✓ 50% of profits devoted to building accessible toilets to those in need ✓ “Impact updates” reported to the community ✓ All products are environment-friendly ✓ Strong community and high level of engagement THE PROMISE: THE FULLFILLMENT: “40% of the global population don't have access to a toilet. We aim to actively change that”
  13. 13. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 13 THE EXPERIENCE - EXPECTATIONS GAP Source: PWC But the reality is that most brands don’t deliver what their brand promises
  14. 14. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 14 BRANDS KEEP ON TRYING TO GET IT RIGHT
  15. 15. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 15 MARKETING TECHNOLOGY BUDGET IS BACK ON THE RISE % of Marketing budget devoted to MarTech Source: Gartner 2014-2015 2015-2016 22% 2017-2018 29% 2018-2019 27% 2016-2017
  16. 16. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 16 Source: PWC What is the price premium of good customer experience? What is the cost of a bad one? 32% will walk away from a brand after just one bad experience 96% will become disloyal +20%
  17. 17. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 17 Source: PWC CUSTOMERS WANT EASY, CONVENIENT, FRIENDLY, EFFICIENT, HUMAN
  18. 18. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 18 ORGANIZATIONS GET CX WRONG What consumers REALY WANT: Quick, convenient, affordable results What executives THINK customers want: • Digital • Self-service • Control
  19. 19. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 19 FOCUS ON CONVENIENCE “They are so easy to work with!” Mission: Trying on shoes Friction: Locating employees and asking them for help to try on shoes Mission: buying food/drink Friction: Waiting in checkout line Mission: buying tickets, waiting in lines, getting food & drinks Friction: A lot of tension - long lines, locating facilities, knowing where to go Mission: Dressing in style Friction: going to physical shop, waiting in lines to try on, waiting in line to pay, don’t know what fits me & what’s in style
  20. 20. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 20 FOCUS ON CONVENIENCE “They are so easy to work with!” Mission: Trying on shoes Friction: Locating employees and asking them for help to try on shoes Mission: buying food/drink Friction: Waiting in checkout line Mission: buying tickets, waiting in lines, getting food & drinks Friction: A lot of tension - long lines, locating facilities, knowing where to go Mission: Dressing in style Friction: going to physical shop, waiting in lines to try on, waiting in line to pay, don’t know what fits me & what’s in style
  21. 21. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 21 • From 25 steps -> to 5 -> to zero • Customer profiles is key (DATA!) • >60% of all orders are online Just open the app After 10 seconds order is automatically placed LITERALY ZERO FRICTION: “We have to make sure everyone at every level of our business - from IT to retail - is working towards the common goal of removing friction from customer experiences.” - Dennis Maloney, Domino’s CDO
  22. 22. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 22 THE PEAK-END RULE: People’s judgment of an experience is the average of how they felt at two moments: PEAK END
  23. 23. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 23 IKEA PEAK-END IN-STORE EXPERIENCE: PEAK END
  24. 24. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 24 Organizations got CX wrong! • In 95% of the companies, managers have been unable to agree on what CX even is • CX is not an initiative; it is a business process In order to build a CX strategy we went straight to the source - customers/users…
  25. 25. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 25 BUT Customers don’t need an app Customers don’t need a better site They definitely don’t need an upgraded BO Why are we even asking customers what solutions they want? “customer is a wrong unit of analysis when you are trying to innovate” Clayton Christensen • Why should a company depend on the customer to know the best solution? • Why hire the customer to do the job of the marketing, development, and product planning team? • Coming up with the winning solution is not the customer’s responsibility. It is the responsibility of the company. 85% of CUSTOMERS / business executives usually say that they need a better tech solution. STKI
  26. 26. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 26 Job-to-be-Done What is that the customer trying to accomplish? Millions of people are trying to turn their cars into an office
  27. 27. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 27 CX innovative initiatives usually start with: Ideas-FIRST Approach: Customers Needs-FIRST Approach: Many bad ideas are still not a good process There is such a thing as a BAD IDEA Even thought customer needs are important input into the CX process, there is no universally accepted definition of what a need is and it is assumed that customers have latent needs or needs that cannot be articulated
  28. 28. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 28 CX Outcome Driven Innovation Journey
  29. 29. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 29 Outcome Driven Innovation Design Thinking LEAN AGILE DevOps Innovation team Design team Product team Tech teams Everybody So many different methodologies & tools Outcome Driven Development (NO to features/ YES to outcomes) The combination of 6 methodologies
  30. 30. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 30 DevOps 01 02 03 04 05 Deploy & implement Define requirements based on customer metrics Design system & test outcomes with customer metricsAgile development & test with outcome metrics JOB TO BE DONE DESIGN PRODUCT PROTOTYPE & TEST DEVELOP THE PRODUCT FRUITION Outcome-Driven Development® Product strategy Problem definition Product prototype Deploy ment Maintain Implementation & Training Terroir Innovation Management® TIM Define market/ product strategy based on unmet needs
  31. 31. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 31 TIM Methodology®- Job To Be Done® 01 Define market/ product strategy based on unmet needs JOB TO BE DONE Product strategy Uncovering the jobs (a fundamental problem in a given situation that needs a solution) that cause customers to hire products and services 1. Functional Job 2. Customers Needs 3. Unmet Needs 4. Solution for Job Done Better 5. Define Outcomes 6. Product/Service Strategy
  32. 32. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 32 TIM Methodology®- Design Product & Define Outcome 02 03 Define requirements based on customer metrics DESIGN PRODUCT Product strategy Problem definition Spotting underserved customers needs 1. Customers Research 2. Prioritize Outcomes 3. Commit to an Outcome 4. Develop Success Metrics 5. Problem Definition
  33. 33. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 33 Giving people the authority, procedures, and resources needed to serve their customers
  34. 34. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 34 Employee engagement drivers: AUTONOMOS INTEREST MASTERING PURPOSE
  35. 35. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 35 Ritz Carlton: Every employee at Ritz-Carlton Hotels has the freedom to use up to $2,000 to rescue a bad guest experience Trader Joe’s: Try it. We think you'll like it. If you don't, bring it back for a full refund. Companies that encourage their employees to make AUTONOMOUS DECISIONS: Virgin Airlines: Employees are empowered to solve problems immediately and to make every customer’s journey memorable. Front-line employees have freedom to operate and solve customer problems within a wide outline established by managers.
  36. 36. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 36 People first Culture of cooperation Small and blended teams Top priority purpose Do not copy what works for others- find your own way
  37. 37. Copyright@STKI_2019 Do not remove source or attribution from ant slide or graph 37 EMPLOYEES FIRST & IN THE CENTER SYMMETRY LISTENING EMPLOYEE EFFORT Great customer experience starts with great employee experience. Focus on fulfilling employees’ needs, and everything will follow. Employees must come first
  38. 38. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 38 SO WHAT ARE WE DOING WRONG?
  39. 39. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 39 LACK OF CX STRATEGY 1/3 of organizations have no clear roadmap for their CX vision (PWC) Only 18% of companies use their brand as the base for their CX strategy (Forrester)
  40. 40. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 40 *40%‫פיננסים‬ ‫ארגונים‬ ‫מקור‬:‫סקר‬STKI,2019
  41. 41. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 41 MATURE CX COMPANIES’ #1 MOST IMPORTANT METHOD FOR EXECUTING THEIR CX STRATEGY: Source: Hotjar state of CX 2019 28% 24% 11% 2% 12% 9% 8% 6% Voice of the Customer Having an outstanding team Real time/Predictive Analytics Chatbots Personalization Market Research Artificial Intelligence (AI) Virtual reality (VR)/Augmented Reality (AR) Voice of the Customer/ Customer Feedback
  42. 42. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 42 LACK OF TECHNOLOGY STRATEGY & ARCHITECTURE How does it all come together?
  43. 43. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 43 UNDERSTAND NEED DESIGN ANSWERDELIVER IT MAXIMIZE VALUE CUSTOMER PROFILE & VOC Orchestrate touchpoints DECISION HUB Customer Feedback Outcome-driven Design Empathy Personas & Audiences Journey Analytics Visualization Marketing Automation Physical & Digital Channels Journey Orchestration Optimization Personalization SYSTEMS OF ENGAGEMENT Human-centered Design AI
  44. 44. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 44 <STILL> NO SINGLE VIEW OF THE CUSTOMER Too much data, from different sources, configured in different formats and managed by individual business units
  45. 45. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 45 CX managers need access to integrated & harmonized data! Source: SMG CMSwire Survey 2018
  46. 46. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 46 Source: SMG/CMSwire Source: Forbes A CDP ensures that customer profile data, transactional events and analytic attributes are available for real-time interactions
  47. 47. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 47 What is the value of a CDP? Source: Gartner
  48. 48. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 48 Source: Lytics 3rd Party Data1st Party Data Behaviors Actions Interests Online and Offline 90 days lifespan Anonymous profiles Use cases: acquisition marketing, display advertisingUse cases: Personalization, Omni-channel Fixed audiences structure Flexible audiences taxonomy
  49. 49. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 49 NOT ENOUGH USE OF ANALYTICS 56% are collecting feedback but not yet implementing insights (PWC) Organizations must shift from retrospective reporting to real-time, behavior-driven engagement (Data-Centric CX)
  50. 50. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 50 Of CMOs budget is dedicated to Analytics Source: Gartner CMO Study But this is starting to change:
  51. 51. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 51 JOURNEY ANALYTICS & ORCHESTRATION Journey orchestration (Forrester): Data fusion, journey design and planning, journey testing and optimization, and journey automation and orchestration Source: Pointillis
  52. 52. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 52 Journey Orchestration Engines* *Partial list
  53. 53. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 53 SILOED ORGANIZATION The customer journey should be the organizing principal of the business strategy. But today only 13% of organizations are structured around the customer journey
  54. 54. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 54
  55. 55. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 55 THE CHANNEL DIVIDE STILL EXISTS Nothing has changed in “omni channel” <except for buzzwords> Omni-Channel Channel-Less Seamless
  56. 56. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 56 8.4% 7% ARE ALL CHANNELS CONNECTED? Hmm… No. Source: STKI CX Survey, 2019Source: Frost and Sullivan, Dimension Data 46% 47%CONNECTED SOMEWHAT CONNECTED
  57. 57. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 57 ‫מקור‬:‫סקר‬STKI,2019 STKI CX Survey 2019
  58. 58. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 58 ‫מקור‬:‫סקר‬STKI,2019
  59. 59. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 59 Actual vs. desired split of interactions Source: Dimension Data Telephone 64% ACTUAL DESIRED Telephone 38% Automated 13% Automated 33% Assisted 27% Assisted 29%
  60. 60. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 60 COMPANIES DON’T PAY ENOUGH ATTENTION TO HUMAN-CENTERED, OUTCOME-DRIVEN DESIGN Source: Brian Solis
  61. 61. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 61
  62. 62. Copyright@STKI_2019 Do not remove source or attribution from any slide or graph 62 Einat Shimoni Galit Fein Liat Tsafir EVP & Senior Analysts, STKI

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