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Listening to the Customer
7 New Research Findings
Stefan Tornquist, VP Research,
Econsultancy
Elizabeth Magill, Program Le...
Econsultancy
Stefan Tornquist
VP research, NA
@SKTornquist
Elizabeth Magill
Program Leader,
Customer Analytics Marketing,
...
The studies and some context
A look at the marketer and consumer studies behind this talk
Findings
Top findings on current...
Study 1: Marketers
276 Brands
Revenues $200 million+
Director+ (VP/C-suite/Board 42%)
Broad range of B2C industries
Online...
Study 2: Consumers
1,136 Consumers
50/50 gender
18+ nationally representative
40% HH above $100K
At least one multi-channe...
Marketers
37% 35%
28%
38%
34%
29%
19%
20%
24%
6%
9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINE
cus...
Marketers
37% 35%
28%
38%
34%
29%
19%
20%
24%
6%
9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINE
cus...
Marketers
37% 35%
28%
38%
34%
29%
19%
20%
24%
6%
9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINE
cus...
What’s the upside of understanding
your customers?
/01
Why they leave…
Banks
Cable/Satellite
Internet
Mobile service
Why they leave…
Banks
Cable/Satellite
Internet
Mobile service
49%…switched in 2014
Question: In the last year have you cha...
Why they left…
Banks
Cable/Satellite
Internet
Mobile service
30%…because their old company failed
Question: When you switc...
Why they left…
Banks
Cable/Satellite
Internet
Mobile service
59%…new company offered something
better
30%…old company fail...
Why they left…
30%
…old company failed
51%
20%
20%
9%
Question: Which of the following best describes what your old [vendo...
Why they left…
30%
…old company failed
51%
20%
20%
9%
Experience
Question: Which of the following best describes what your...
Why they left…
30%
…old company failed
51%
20%
20%
9%
Experience
Product
Question: Which of the following best describes w...
Why they left…
30%
…old company failed
51%
20%
20%
9%
Experience
Product
Pricing
OtherQuestion: Which of the following bes...
Why they left…
59%…new company offered more
29%
42%
24%
6%
Question: What did your new [vendor type chosen] offer that led...
Why they left…
29%
42%
24%
6%
Experience
Product
59%…new company offered more
Question: What did your new [vendor type cho...
Why they left…
29%
42%
24%
6%
Experience
Product
Pricing
Other59%…new company offered more
Question: What did your new [ve...
/One
Most customers are lost for reasons we can control.
A holistic view?
/02
Multi-channel consumers
Average
Research products Buy products Not applicable
Store 50% 78% 15%
Website 81% 82% 3%
Mobile ...
Marketers
81% of consumer marketers
say they have a holistic view of
their customers…
Question: Do you feel like your orga...
A holistic view?
37% of consumers say their
favorite retailer understands
them…
Question: Still thinking about your favori...
A holistic view?
22% of consumers say
average retailers understand
them…
Question: In general, do the companies you do bus...
/Two
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Average isn’t nearly good enough
/03
Marketers
37% 35%
28%
38%
34%
29%
19%
20%
24%
6%
9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINE
cus...
Consumers
35% say “usually relevant” about their favorite
companies
How often are communications relevant?
Question: In ge...
Consumers
21% say “usually relevant” about average
companies
How often are communications relevant?
Question: In general, ...
/Three
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they...
Trust is earned through experience
/04
When consumers say “trust”…
251
276
348
439
441
642
831
Products that are customized for me
Very respectful of my privacy
...
Yes, I’ll share my information…
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
0% 25% 50% 75% 100%
Who I am specifically – my per...
Yes, I’ll share my information…
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
88%
89%
0% 25% 50% 75% 100%
Who I am specifically ...
Marketers
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
88%
89%
0% 25% 50% 75% 100%
Who I am specifically – my personally identi...
/Four
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they ...
Our most coveted customers
/05
Marketers
64%
27%
6%
2% 0%
0%
10%
20%
30%
40%
50%
60%
70%
Strongly agree Somewhat agree Neutral Somewhat disagree Strongly...
Marketers
64%
27%
6%
2% 0%
0%
10%
20%
30%
40%
50%
60%
70%
Strongly agree Somewhat
agree
Neutral Somewhat
disagree
Strongly...
Youth (18-34)
• 24% more likely to download store/service apps
• 20% less likely to have bought from an email in last 12 m...
Affluent HH ($100k+)
• 49% more likely than Millennials to have bought from an email
• 25% more likely than the average to...
/Five
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they ...
As strong as its lowest point
/06
Conflict happens
42% of consumers have had a conflict with
a trusted company in the last year.
Question: In the last year,...
Marketers
37%
52%
8%
3%0%
How satisfied are you with your ability to resolve
customer conflicts?
Very satisfied
Somewhat s...
But…
28% of consumers
said that the company
resolved the conflict
very effectively
28%
31%
17%
24%
How effectively did [th...
And it matters…
24%
Very ineffective
46% are still customers
13% shop/use at same levels
98% shared their story
Question: ...
And it matters…
28%
Very effective
71% are still customers
46% shop at the same levels
89% shared their story
Question: Ho...
/Six
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they d...
Mind the gap
/07
Marketers
48%
40%
8%
3%1%
Our growth depends on personalizing the customer’s
experience
Strongly agree Somewhat agree Neut...
Marketers
Most organizations lack the
essential capabilities or tools
to fulfill on that promise… 34% 37% 37%
0%
15%
30%
4...
/Seven
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they...
Stefan Tornquist
VP research, NA
Econsultancy
@SKTornquist
Questions and Answers
Elizabeth Magill
Program Leader,
Customer...
Who Should Attend IBM Amplify:
Executives and practitioners in marketing,
commerce and customer analytics
Why Attend IBM A...
Stefan Tornquist
VP research, NA
Econsultancy
@SKTornquist
Questions and Answers
Elizabeth Magill
Program Leader,
Customer...
Listening to the customer - 7 key customer experience trends
Listening to the customer - 7 key customer experience trends
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Listening to the customer - 7 key customer experience trends

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Is your approach to customer analytics and experience obsolete? In today’s marketplace, basic personalization strategies aren’t even close to good enough. Your customers expect consistent experiences and added value in every interaction with you. And if you don’t meet their needs, you risk losing their business.

Experts from Econsultancy and IBM teach you how leading marketers are integrating and analyzing expanding data sources to gain insights into their customers’ buying patterns and brand preferences. This fast-paced session will cover findings from the latest research into buyer behavior from Econsultancy commissioned by IBM. By looking at the results of studies examining both consumers and the marketers trying to reach them, we'll uncover what's important, what's not, and where to find opportunities for success.

You’ll learn:
- Why customer experience is more important than ever in a commoditized world
- Why today’s approach to customer analytics and experience is obsolete
- How to capitalize on the powerful connection between customer experience and trust
- About the dangers of poor conflict resolution, and why you should fix issues before they drive customers away.

Published in: Marketing
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Listening to the customer - 7 key customer experience trends

  1. 1. Listening to the Customer 7 New Research Findings Stefan Tornquist, VP Research, Econsultancy Elizabeth Magill, Program Leader, Customer Analytics Marketing, IBM
  2. 2. Econsultancy Stefan Tornquist VP research, NA @SKTornquist Elizabeth Magill Program Leader, Customer Analytics Marketing, IBM @emagill
  3. 3. The studies and some context A look at the marketer and consumer studies behind this talk Findings Top findings on current trends and eternal truths in customer experience design and management Conclusion Mind the gap between self-perception and reality Q&A Today
  4. 4. Study 1: Marketers 276 Brands Revenues $200 million+ Director+ (VP/C-suite/Board 42%) Broad range of B2C industries Online/offline/call centers 1
  5. 5. Study 2: Consumers 1,136 Consumers 50/50 gender 18+ nationally representative 40% HH above $100K At least one multi-channel relationship 276 Brands Revenues $200 million+ Director+ (VP/C-suite/Board 42%) Broad range of B2C industries Online/offline/call centers 2
  6. 6. Marketers 37% 35% 28% 38% 34% 29% 19% 20% 24% 6% 9% 14% 1% 2% 5% 0% 20% 40% 60% 80% 100% We deliver a superior OFFLINE customer experience compared to competitors We deliver a superior ONLINE customer experience compared to competitors We deliver a superior MOBILE customer experience compared to competitors Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree Question: Do you agree or disagree with the following statements? N = 265 75% believe they deliver a superior offline experience
  7. 7. Marketers 37% 35% 28% 38% 34% 29% 19% 20% 24% 6% 9% 14% 1% 2% 5% 0% 20% 40% 60% 80% 100% We deliver a superior OFFLINE customer experience compared to competitors We deliver a superior ONLINE customer experience compared to competitors We deliver a superior MOBILE customer experience compared to competitors Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree Question: Do you agree or disagree with the following statements? N = 265 69% believe they deliver a superior online experience
  8. 8. Marketers 37% 35% 28% 38% 34% 29% 19% 20% 24% 6% 9% 14% 1% 2% 5% 0% 20% 40% 60% 80% 100% We deliver a superior OFFLINE customer experience compared to competitors We deliver a superior ONLINE customer experience compared to competitors We deliver a superior MOBILE customer experience compared to competitors Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree Question: Do you agree or disagree with the following statements? N = 265 57% believe they deliver a superior mobile experience
  9. 9. What’s the upside of understanding your customers? /01
  10. 10. Why they leave… Banks Cable/Satellite Internet Mobile service
  11. 11. Why they leave… Banks Cable/Satellite Internet Mobile service 49%…switched in 2014 Question: In the last year have you changed providers in any of the following areas? N = 1,010
  12. 12. Why they left… Banks Cable/Satellite Internet Mobile service 30%…because their old company failed Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473
  13. 13. Why they left… Banks Cable/Satellite Internet Mobile service 59%…new company offered something better 30%…old company failed Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473
  14. 14. Why they left… 30% …old company failed 51% 20% 20% 9% Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
  15. 15. Why they left… 30% …old company failed 51% 20% 20% 9% Experience Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
  16. 16. Why they left… 30% …old company failed 51% 20% 20% 9% Experience Product Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
  17. 17. Why they left… 30% …old company failed 51% 20% 20% 9% Experience Product Pricing OtherQuestion: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
  18. 18. Why they left… 59%…new company offered more 29% 42% 24% 6% Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
  19. 19. Why they left… 29% 42% 24% 6% Experience Product 59%…new company offered more Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
  20. 20. Why they left… 29% 42% 24% 6% Experience Product Pricing Other59%…new company offered more Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
  21. 21. /One Most customers are lost for reasons we can control.
  22. 22. A holistic view? /02
  23. 23. Multi-channel consumers Average Research products Buy products Not applicable Store 50% 78% 15% Website 81% 82% 3% Mobile app 51% 35% 42% Catalog 34% 28% 52% 18-34 years old Research products Buy products Not applicable Store 51% 75% 13% Website 80% 82% 2% Mobile app 64% 46% 22% Catalog 41% 29% 43% Affluent ($100k+) Research products Buy products Not applicable Store 54% 82% 15% Website 93% 84% 1% Mobile app 60% 40% 35% Catalog 36% 23% 52% Women Research products Buy products Not applicable Store 51% 75% 13% Website 81% 82% 2% Mobile app 49% 32% 44% Catalog 37% 29% 50% Question: What are the different ways you shop with your favorite retailer? N = 587
  24. 24. Marketers 81% of consumer marketers say they have a holistic view of their customers… Question: Do you feel like your organization has a holistic view of your customers…do you have a view of individuals and segments across interactions and channels? Responses: Yes, we have a holistic view / We have a good view of our customers, and are close to a holistic one. N = 265
  25. 25. A holistic view? 37% of consumers say their favorite retailer understands them… Question: Still thinking about your favorite retailer – do you feel that they personalize the shopping experience (products, deals and other information) for you as an individual? N = 587
  26. 26. A holistic view? 22% of consumers say average retailers understand them… Question: In general, do the companies you do business with personalize the experience (deals and other information) for you as an individual? N = 1,020
  27. 27. /Two Most customers are lost for reasons we can control. Our approach to the customer is obsolete.
  28. 28. Average isn’t nearly good enough /03
  29. 29. Marketers 37% 35% 28% 38% 34% 29% 19% 20% 24% 6% 9% 14% 1% 2% 5% 0% 20% 40% 60% 80% 100% We deliver a superior OFFLINE customer experience compared to competitors We deliver a superior ONLINE customer experience compared to competitors We deliver a superior MOBILE customer experience compared to competitors Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree Question: Do you agree or disagree with the following statements? N = 265 Marketers believe they deliver a superior experience
  30. 30. Consumers 35% say “usually relevant” about their favorite companies How often are communications relevant? Question: In general, how relevant are the marketing messages you receive from your favorite [retailer or travel/hospitality]? N = 1,004
  31. 31. Consumers 21% say “usually relevant” about average companies How often are communications relevant? Question: In general, how relevant are the marketing messages you receive from most [retailer or travel/hospitality]? N = 1,004
  32. 32. /Three Most customers are lost for reasons we can control. Our approach to the customer is obsolete. Businesses think they deliver a superior customer experience. They don’t.
  33. 33. Trust is earned through experience /04
  34. 34. When consumers say “trust”… 251 276 348 439 441 642 831 Products that are customized for me Very respectful of my privacy Lowest prices Easiest to shop with, save me the most time Best service when I have an issue Treat me well as a loyal customer Very trustworthy with my data/information Question: If you were building the perfect company to serve you, what would be most important? N = 618
  35. 35. Yes, I’ll share my information… 37% 38% 67% 73% 79% 80% 61% 72% 84% 90% 0% 25% 50% 75% 100% Who I am specifically – my personally identifiable information Where I am – location and time data Who I am in general – my age range, gender, town, etc. How I feel about their brand – from comments, past issues, loyalty info, etc My history with the company – my past purchases, returns, issues, etc. What I want – kinds of products I like, what I’m looking for All companies Trusted companies Question: How do you feel about companies having the following information? N = 618
  36. 36. Yes, I’ll share my information… 37% 38% 67% 73% 79% 80% 61% 72% 84% 90% 88% 89% 0% 25% 50% 75% 100% Who I am specifically – my personally identifiable information Where I am – location and time data Who I am in general – my age range, gender, town, etc. How I feel about their brand – from comments, past issues, loyalty info, etc My history with the company – my past purchases, returns, issues, etc. What I want – kinds of products I like, what I’m looking for All companies Trusted companies Question: How do you feel about your favorite [retailer or travel/hospitality] company having the following information? N = 843
  37. 37. Marketers 37% 38% 67% 73% 79% 80% 61% 72% 84% 90% 88% 89% 0% 25% 50% 75% 100% Who I am specifically – my personally identifiable information Where I am – location and time data Who I am in general – my age range, gender, town, etc. How I feel about their brand – from comments, past issues, loyalty info, etc My history with the company – my past purchases, returns, issues, etc. What I want – kinds of products I like, what I’m looking for All companies Trusted companies 1st Consumer Question: How do you feel about companies having the following information? N = 618 Marketer Question: Which of the following types of information are most important for your customer experience management? N=263 3rd 2nd
  38. 38. /Four Most customers are lost for reasons we can control. Our approach to the customer is obsolete. Businesses think they deliver a superior customer experience. They don’t. To deliver value we need information.
  39. 39. Our most coveted customers /05
  40. 40. Marketers 64% 27% 6% 2% 0% 0% 10% 20% 30% 40% 50% 60% 70% Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree “Identifying high value customers is vital to our growth” Question: Do you agree or disagree with the following statements? N=257
  41. 41. Marketers 64% 27% 6% 2% 0% 0% 10% 20% 30% 40% 50% 60% 70% Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree “Identifying high value customers is vital to our growth” P a r e n t s M e n W o m e n S i n g l e M e d i a n H H Mid-career Married Affluent MillenialsQuestion: Do you agree or disagree with the following statements? N=257
  42. 42. Youth (18-34) • 24% more likely to download store/service apps • 20% less likely to have bought from an email in last 12 months • More comfortable sharing their data • More demanding for benefits in sharing it • More multi-channel in general • Even more multi-channel with preferred brands
  43. 43. Affluent HH ($100k+) • 49% more likely than Millennials to have bought from an email • 25% more likely than the average to buy from a mobile device • More demanding of service • More controlling of their information • More likely to leave because of a mistake • Less likely to jump for a better price
  44. 44. /Five Most customers are lost for reasons we can control. Our approach to the customer is obsolete. Businesses think they deliver a superior customer experience. They don’t. To deliver value we need information. Our most desirable audiences will demand the most of us.
  45. 45. As strong as its lowest point /06
  46. 46. Conflict happens 42% of consumers have had a conflict with a trusted company in the last year. Question: In the last year, have you had a conflict with a company you do business with? For example, couldn’t return or exchange something, charged for something you didn’t buy, had a service request they couldn’t handle, etc.? N = 1,004
  47. 47. Marketers 37% 52% 8% 3%0% How satisfied are you with your ability to resolve customer conflicts? Very satisfied Somewhat satisfied Neutral Somewhat unsatisfied Very unsatisfied 89% of brands are satisfied with their ability to resolve conflicts… Question: How satisfied are you with the organizations ability to resolve customer conflicts? N=252
  48. 48. But… 28% of consumers said that the company resolved the conflict very effectively 28% 31% 17% 24% How effectively did [that company] deal with your issue? Very effectively Somewhat effectively Somewhat ineffectively Very ineffectively Question: How effectively did [company type chosen] deal with your issue? N=424
  49. 49. And it matters… 24% Very ineffective 46% are still customers 13% shop/use at same levels 98% shared their story Question: How effectively did [company type chosen] deal with your issue? N=424
  50. 50. And it matters… 28% Very effective 71% are still customers 46% shop at the same levels 89% shared their story Question: How effectively did [company type chosen] deal with your issue? N=424
  51. 51. /Six Most customers are lost for reasons we can control. Our approach to the customer is obsolete. Businesses think they deliver a superior customer experience. They don’t. To deliver value we need information. Our most desirable audiences will demand the most of us. We must understand the perilous parts of the customer journey.
  52. 52. Mind the gap /07
  53. 53. Marketers 48% 40% 8% 3%1% Our growth depends on personalizing the customer’s experience Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree 88% agree that their growth depends on personalizing the customer’s experience Question: Do you agree or disagree with the following statements? N=234
  54. 54. Marketers Most organizations lack the essential capabilities or tools to fulfill on that promise… 34% 37% 37% 0% 15% 30% 45% 60% 75% We do a good job of linking our online and offline customer experiences We have the tools we need to provide exceptional customer service and experiences We are able to tie customer experience activities to revenue and/or cost savings Question: Do you agree or disagree with the following statements? N=234
  55. 55. /Seven Most customers are lost for reasons we can control. Our approach to the customer is obsolete. Businesses think they deliver a superior customer experience. They don’t. To deliver value we need information. Our most desirable audiences will demand the most of us. We must understand the perilous parts of the customer journey. The intent is there. The tools are available. The gap is execution.
  56. 56. Stefan Tornquist VP research, NA Econsultancy @SKTornquist Questions and Answers Elizabeth Magill Program Leader, Customer Analytics Marketing, IBM @emagill
  57. 57. Who Should Attend IBM Amplify: Executives and practitioners in marketing, commerce and customer analytics Why Attend IBM Amplify:  Network with over 2,800 industry leaders, executives and practitioners in marketing, commerce, merchandising and customer analytics.  Discover the latest trends and innovative solutions that demonstrate measurable business results.  Get hands-on with the latest technologies and solutions.  Experience the newest innovations from IBM through 200+ sessions and workshops plus the latest demos.  Anticipate behavior and deliver flawless customer service.  Capitalize on opportunities with mobile, social, cloud and analytics. IBM Amplify Tracks: For more details, visit ibm.com/ibmexperienceone Commerce - create a unique brand experience across all channels for both B2B and B2C omni-channel commerce Customer analytics - acquire the right customers, optimize the customer experience, understand the customer journey, and minimize fraud Marketing - target, engage and win customers across multiple channels by combining proven best practices with innovative technologies Merchandising - maximize sales, profit and shopper loyalty in an omni-channel environment May 11-13 | San Diego Convention Center #ibmamplify
  58. 58. Stefan Tornquist VP research, NA Econsultancy @SKTornquist Questions and Answers Elizabeth Magill Program Leader, Customer Analytics Marketing, IBM @emagill

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