Customer Experience Transformation: 5 Research Findings And 12 Action Items


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During this webinar, Ernan Roman will share recent insights from more than 10,000 hours of Voice of Customer (VoC) Relationship Research conducted by his firm, Ernan Roman Direct Marketing.

Based on the findings, Roman will share 5 key VoC research findings that will help retailers significantly improve customer engagement and personalization of offers and experiences. And critically, how personalization can be driven by individual preferences.

Roman’s part of the session will conclude with an 12 Point Checklist for transforming your customer experience.

Rick Ludolph from Productive Solutions will follow with a look at the enabling technologies to help retailers achieve their customer engagement goals in an omnichannel marketplace

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Customer Experience Transformation: 5 Research Findings And 12 Action Items

  1. 1. Customer  Experience  Transforma3on:     5  Research  Findings  and     12  Ac3on  Items     Presented by Session sponsored by
  2. 2. Follow  this  Webinar  on  Twi1er     #RetailCCS   @ConnectConsumer   @RTouchPoints   #RetailCCS
  3. 3. About  CCS  2013   ü 5 Webinars, 4 Days ü Sessions covering Store Ops, X-Channel, Loyalty, ü Featuring industry analysts and consultants ü Free for Retail executives Big Data & more #CCSeries13
  4. 4. Welcome  Webinar  A1endees   #RetailCCS
  5. 5. Xbox  One  Giveaway   Enter to win an Xbox One by attending at least two sessions from this week’s webinar series! #RetailCCS *Visit the contest rules page for more information.
  6. 6. About  Retail  TouchPoints   ü Launched in 2007 ü Over 28,000 subscribers ü To provide executives with relevant, insightful content across a variety of digital medium #RetailCCS
  7. 7. Panelists   Ernan Roman Rick Ludolph President Consultant – CGS Founder and President Ernan Roman Direct Marketing Corp. (ERDM) Productive Solutions LLC MODERATOR #RetailCCS Debbie Hauss Editor-in-Chief Retail TouchPoints
  8. 8. Customer Experience Transformation: 5 Important Research Findings and 12 Action Items 8 Ernan Roman President Ernan Roman Direct Marketing Corp. 12/9/13
  9. 9. Ernan Roman President Ernan Roman Direct Marketing Corp. (ERDM) Recognized as a marketing thought leader. Inducted into the Marketing Hall of Fame for creating three transformational methodologies: Voice of Customer (VoC) Relationship Research, Opt-in Marketing and Integrated Direct Marketing.   Named by Crain’s BtoB magazine as one of the “100 most influential people in Business Marketing”. Ernan Roman President, Ernan Roman Direct Marketing Corp. (ERDM) 9 ERDM specializes in conducting Voice of Customer Relationship Research to identify customer experience strategies that generate significant increases in revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft and Norton AntiVirus. Ernan’s latest book on marketing best practices is titled, “Voice of the Customer Marketing”. He writes the widely read, Huffington Post published blog, “Ernan’s Insights on Marketing Best Practices”. Authored the landmark books “Opt-in Marketing” and “Integrated Direct Marketing”.
  10. 10. Agenda —  Provide 5 strategies for transforming your retail customer experience across the multichannel mix. —  Insights are based on new findings from VoC Research conducted for thought leaders such as IBM, QVC, NBC Universal, MassMutual and Norton AntiVirus. —  12 Action Items to transform your retail multichannel customer experience. 10
  11. 11. Voice of Customer (VoC) Relationship Research Findings
  12. 12. Learnings from 10,000+ hours of VoC Interviews: 12
  13. 13. Understand how Consumers define “Customer Experiences”. Customer Experience Requirement #1
  14. 14.      How  Consumers  Define  “Customer  xperiences”* 1.      Improve  the  customer  experience  across  every  point  of   contact  with  your  organiza3on.   2.      Applies  to  all  elements  of  the  media  mix  and  all  departments           in  your  organiza3on.   3.      High  quality  experiences  must  be  maintained  throughout  the   rela5onship  “not  just  when  you  are  selling  or  renewing”.   14 *Defini'on  is  based  on  10,000  +  hours  of  VoC  research  conducted  by   Ernan  Roman  Direct  Marke'ng,  5-­‐26-­‐13  
  15. 15. How  Consumers  Define  “Customer  Experiences”* 4.      Customer  experiences  must  be  driven  by  my  individual   preferences  regarding:  message,  3ming,  frequency,  and   media  mix.       5.      Preferences  must  drive  high  quality  personaliza5on  of   communica5ons  and  experiences.                                                                                               Privacy  of  preference  informa3on  is  essen3al.     15 *Defini'on  is  based  on  10,000  +  hours  of  VoC  research  conducted  by   Ernan  Roman  Direct  Marke'ng,  5-­‐26-­‐13      
  16. 16. Satisfaction has become a given. Engagement is now the critical competitive differentiator consumers are searching for. Customer Experience Requirement #2
  17. 17. Per VoC Research Findings: Across the last 12 months, a consistent trend: Consumers expect companies to use their preferences to deliver increasingly personalized offers, communications, and experiences. 17
  18. 18. Satisfaction is a Given… Engagement is What Counts: “When  we  analyze  the  US  hotel  category,  we  found   less  than  1  social  advocacy  men5on  per  100  stays.       With  some  hotels  repor3ng  guest  sa3sfac3on   scores  of  80%  or  more,  there’s  clearly  a  large  social   advocacy  gap:  the  vast  majority  of  people  sa3sfied   with  their  experience  aren’t  talking  about  it   online.”   1to1  Media,  Social@Ogilvy  research,  “How  to   Build  a  Global  Passion  Brand”,  8-­‐29-­‐13   18
  19. 19. Opportunity to completely rethink how you engage with customers; Reciprocity of Value Equation. Customer Experience Requirement #3
  20. 20. Powerful VoC Finding: Voiced by B2B and B2C customers and prospects 20 Cited so frequently and clearly that we call this: Reciprocity of Value Equation
  21. 21. Reciprocity  of  Value  Equa3on: Recognition by consumers that to receive or access increasingly relevant information, they must provide information regarding their preferences. Applies to B2B and B2C. If they trust the brand and receive a useful value proposition, consumers will opt-in to sharing increasingly detailed preference information in exchange for the marketer’s promise to deliver relevant information and offers. This reframes data privacy concerns! Reciprocity seen as a valuable exchange of information which improves the customer experience. This information will constantly change, grow, and be enriched, through ongoing interactions with consumers. 21
  22. 22. Reciprocity  of  Value  Equa3on: As a result of these preference-based interactions, consumers are more willing to respond to communications and offers. This customer-driven information exchange results in uniquely accurate databases which consistently drive 25% to 50% increases in revenue. 22
  23. 23. Double-digit Results from Microsoft’s VoC-driven Customer Engagement Programs: 23
  24. 24. Double-digit Results from MassMutual’s VoC-driven Customer Engagement Programs: •  Mock talk show with a cast of 3 discussing personal financial issues •  More humorous than serious MassMutual’s Smart View Webisode Email Pilot •  Provided actionable takeaways •  Season 1: 9 episodes over 18 weeks •  Season 2: Launched September 2013 21 24
  25. 25. Double-digit Results from MassMutual’s VoC-driven Customer Engagement Programs: By opting-in, participants receive proactive communication when new episodes are ready. Results: Opt-in vs. Control Group 94% Zero 100% Higher open rate 25 1,062% Higher video views Unsubscribes Deliverability 22
  26. 26. Differentiate your company by providing truly personalized experiences, communications, and offers. Customer Experience Requirement #4
  27. 27. True Personalization is Critical: Per VoC findings, customers and prospects view personalization as the next step in a company’s commitment to service excellence. Personalization is viewed as a service and benefit, not just a sales tool. They also look to personalized follow-up emails as value-added triggers to go online and evaluate relevant products. 27 Online shoppers view personalization as a critical requirement for engagement.
  28. 28. “Transaction-based” is Inadequate: Consumers are very clear in defining personalization as much more than “those old-fashioned” transaction-based communications. Representative VoC research quotes: “I want more than just buying history-based emails”. 28 “With today’s technology, I expect the experiences and emails to reflect my preferences”.
  29. 29. Deliver on the expectations of improved customer experiences across every channel and point of contact with your organization. Customer Experience Requirement #5
  30. 30. Multichannel Engagement: Today’s shopper is multidimensional; multi-channel and multi-purpose. Many report using multiple media, often at the same time. "I take pride in being a smart shopper. I might see something on TV, or hear an ad on the radio.  I’ll text some of my fellow FrugalMom$ friends to check it out.  Then I’ll browse the website. If the item interests me, I’ll put it in my cart. When I’m finished browsing, I’ll print out the cart. Then, I call Customer Service to have them answer my questions, and place the order."  30
  31. 31. QVC Priority; Deliver Competitively Differentiating Multichannel Customer Experiences: Do Multiple Channels Enhance or Cannibalize Sales? Best Customers Engage on All Screens Web Only 31 Phone Only Mobile + Phone or Web Phone, Web Phone, Web & Mobile
  32. 32. Sephora Delivers High Quality Multichannel Customer Experiences: Sephora revamped website and mobile apps to deliver personalized, and integrated in-store and online experiences. Online searches and purchases are saved to a customer’s profile if they are a member of Sephora’s loyalty program, Beauty Insider. “It’s an opt-in service, because Sephora recognizes that not all consumers want to be tracked. Currently, 20 Sephora stores will have iPads from which store associates will be able to pull customer data to help them with purchases…” “Customers can search across 25 criteria including age group, SPF, skin type and more. We have all the expertise of Sephora’s staff built into a web interface.” Bridget Dolan, VP Interactive Media. DM News 4/19/12 32
  33. 33. Personalization •  2,500+  versions  of  personalized  emails  on  a  daily  basis   •  Key  drivers:  shopping  behavior,   self  stated  profiling,  and   collabora3ve  filtering   33 Email  
  34. 34. Personalization Website The  store  with  the  highest   affinity  sits  at  the  top     Sales  within  this  sec3on   are  based  on  what  the   member  has  shopped  or   favored  in  the  past     All  other  stores  are  ranked   according  relevance  based   on  shopping  behavior       Collabora3ve  filtering  is   also  used  to  suggest   specific  sales     34
  35. 35. Personalization Personaliza3on  drives  engagement  by  increasing  order  conversion  rates   and  decreasing  unsubscribe  rates   Long-­‐term  A/B  test  for  email  personalizaOon   35
  36. 36. 36
  37. 37. 12 Actions for Retail Multichannel Success Be humble. Acknowledge what you don’t know about how your customers define engagement. Listen to your customers. Understand how customers define the Reciprocity of Value Equation with your company. Create opt-in preference databases to drive true personalization of communications and offers. Achieve frictionless, high-value, engagement across every medium in the multichannel mix. 37
  38. 38. 12 Actions for Retail Multichannel Success Customers engage with your messages across multiple media. Ensure message and brand consistency across all your media. Communications should reflect the “personalities” of the individual media used by customers to engage with your brand. Each medium should reinforce the other, i.e., Retail reinforcing Social, Mobile reinforcing Web, etc. Be where your customers are, i.e., push mobile during commuting hours, holidays, etc. 38
  39. 39. 12 Actions for Retail Multichannel Success Select channels that serve the customer: texting an offer is intrusive. Using it as a reminder for something they want is a value. Avoid turf and silos; ideally one team should manage all customer touch points. Make customer listening a part of every functional area, not just Marketing. Deliver high quality customer service in every channel. Marketing has to take responsibility! 39
  40. 40. Additional Information for You: —  PowerPoint Presentation —  14 Step Checklist For Breakthrough Multichannel Marketing —  7 Marketing Mistakes You Need to Avoid —  Case Studies —  Blog; Ernan’s Insights on Marketing Best Practices —  To receive this information, send your request to 40
  41. 41. Contact Information: Ernan Roman President Ernan Roman Direct Marketing Corp. 41
  42. 42. Leveraging Technology To Drive Omnichannel Success Rick Ludolph Founder & President
  43. 43. •  Today’s shoppers expect more from their retail experience •  Loyalty is now earned through an experience across all channels rather than a single one •  The retail experience has expanded to include stores, websites, call centers, marketplaces, and social networks •  Consumers expect a seamless all-channel experience •  Retailers need to be more connected, more empowered, and more proactive than ever before •  Shift from supply/push approach to demand/pull approach
  44. 44. •  Connecting with customers o  Individual, personal & relevant dialog •  Merchandise planning & execution o  Optimizing a plan for each channel •  Supply chain & order fulfillment o  Increasing supply chain and inventory management complexity •  Operations & performance management o  Real-time, actionable information •  Empowering employees o  Advanced POS tools & customer service skillset •  Content & data management o  Single view of data across all channels & touchpoints
  45. 45. •  Engage customers across all channels/devices •  Leverage customer data and trends to offer what they want, where and when they want it •  Create new opportunities for customer interaction through online/store integration •  Maintain a history of customer interactions •  Ensure consistent, convenient customer responses •  Improve service and increase customer satisfaction Supporting Technologies/Services: Customer Relationship Management (CRM), Contact/Call Center, Training
  46. 46. •  Compelling, on-trend, and smartly-priced merchandise can define success or failure •  Plan relevant/profitable assortments for each channel based on customer demand •  Integrate sales history and POS data into merchandise planning and development •  Synchronized view of demand across channels •  Roll up individual plans to a single, omnichannel plan Supporting Technologies/Services: Merchandise Planning, Product Lifecycle Management (PLM), Retail Enterprise Resource Planning (ERP)
  47. 47. •  Accept, fulfill and track standard and special orders with a 360-degree business view •  Pull inventory from any channel or location •  Check inventory and manage reservations •  Seamlessly replenish across any channel •  Manage purchasing, requisition, and replenishment •  Production order and automated shipment management Supporting Technologies/Services: Supply Chain Management (SCM), Warehouse Management System (WMS), Retail Enterprise Resource Planning (ERP)
  48. 48. •  Create orders without leaving the customer’s side with advanced service capabilities •  Transaction processing, loyalty capture, customer detail capture, and more at POS •  Centralized POS terminal management •  Consistent store/ERP data model and business rules facilitate accurate, timely data •  Configurable, flexible inventory and financial updates •  Manage store, regional, and global staff Supporting Technologies/Services: Retail Enterprise Resource Planning (ERP), HR, POS
  49. 49. •  Bringing together product information from multiple channels/sources in POS •  Clienteling to cross/up sell and improve customer service •  Advanced POS solutions enhance customer service and reduce training time •  Instructor-led training, e-learning, and blended training programs Supporting Technologies/Services: POS, Retail Enterprise Resource Planning (ERP), Training Services
  50. 50. •  •  •  •  •  •  •  Synchronized view across all channels Integrated online storefront Consistent content across all channels Robust catalog management Single view of data across the enterprise Real-time analytics and performance reporting Customer history drives personal and relevant content Supporting Technologies/Services: POS, Retail Enterprise Resource Planning (ERP), Training Services
  51. 51. •  Consistent customer interaction and care •  Integrated online storefront and content •  Integrated assortment and category planning/management across channels •  Visibility and control across stores, ecommerce sites, mobile, social commerce, and more •  Centralized store (POS) and e-commerce management •  End-to-end solution with real-time analytics
  52. 52. •  Rethink Current Business Models o  Tactical approach is not sufficient •  Modern, unified technology platform o  Microsoft Dynamics AX •  Experienced solutions and services partner o  Computer Generated Solutions (CGS) •  Integrated business solutions o  o  o  o  o  o  Microsoft Dynamics AX for Retail Microsoft Dynamics AX POS CGS BlueCherry (Merchandise Planning, PLM, SCM, WMS) CGS BPO/Contact Center CGS Training Services CGS Technology & Infrastructure Services
  53. 53. Leveraging Technology To Drive Omnichannel Success Rick Ludolph
  54. 54. End-To-End Solutions for Seamless Retailing IOS/POS   POS MCMP Clienteling   Mul3-­‐Channel   Merchandise     Planning   Product  Lifecycle   Management  &   PLMS Sourcing   Advanced   Warehouse   Management   Contact  Center   Solu3ons     For  Retail   ©  2013  Computer  Generated  SoluOons,  Inc.  All  rights  reserved.  ConfidenOal  and  proprietary  to  CGS.     Technology   Services   Page  54  
  55. 55. Kick-off NRF in style by attending the Opening Night Reception at the Marriott Marquis Times Square More Modern More Mobile More Global Sunday Jan 12 5:30 – 7:30 pm Visit Booth # 2703 to learn more BIG !deas Session: Become a Dynamic Retailer and Make Sure You’re Ready for What’s Next Follow all the action live on Twitter and Facebook Monday Jan 13 @msretail 3:15 – 4:15 pm
  56. 56. Help  us  support  RetailROI  at   NRF  this  year…   •  Schedule  a  mee3ng  with  CGS  at  NRF  and  agend  it,  and  CGS  will   donate  $25  to  RetailROI.     •  The  Purpose  of  the  Retail  Orphan  IniOaOve  (RetailROI)  is  to  raise   awareness  and  provide  real  soluOons  for  the  more  than  400  million   vulnerable  children  worldwide.     •  Visit  for  more  informaOon.   •  To  schedule  a  meeOng,  send  an  email  to   with  the  subject  line  NRF  MeeOng.   #RetailCCS
  57. 57. Q  &  A  //  Panelists   Ernan Roman Rick Ludolph President Consultant – CGS Founder and President Ernan Roman Direct Marketing Corp. (ERDM) Productive Solutions LLC MODERATOR #RetailCCS Debbie Hauss Editor-in-Chief Retail TouchPoints
  58. 58. Xbox  One  Giveaway   Enter to win an Xbox One by attending at least two sessions from this week’s webinar series! #RetailCCS *Visit the contest rules page for more information.
  59. 59. Thank  You    For  Joining  Us   The next Connected Consumer Series session… The  ABC's  Of  Delivering  A   Superior  Customer  Experience Tomorrow, 12 PM ET / 9 AM PT #CCSeries13