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Touch-Point Technology: Transforming the Customer Journey

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Technology has become a part of almost every day-to-day activity. Things are no different for how brands do business. The customer journey has been transformed to address rising expectations in speed, precision, personalization and security through implementation of technologies at crucial touch-points, or the moments of interaction between the brand and the customer.

This snapshot explores three trends we see in today’s brands’ use of technology at touch-points along the customer journey:

Reducing customer effort
Re-humanizing interactions
From responsive to predictive

Published in: Marketing

Touch-Point Technology: Transforming the Customer Journey

  1. 1. UNDERSTAND TODAY. SHAPE TOMORROW. TRANSFORMING THE CUSTOMER JOURNEY TOUCH-POINT TECHNOLOGY 1 the latest installment of our: Snapshot Series LHBS // TOUCH-POINT TECHNOLOGY
  2. 2. ABOUT. At LHBS, we believe in continuously observing and learning from what’s happing in the market. We’ve created our Snapshot Series to provide insights on platforms, industries and companies. Using best practice examples, we explore, analyze and share how businesses are adapting to new trends. Moving from insightful data to best practices to inspiring thought starters for brands, Snapshots can be a guide to bring meaningful innovations to life in different areas of business. This issue explores the rise of digitalization along the customer journey, and for what reasons brands are utilizing new technologies for touch-point interactions. We hope you enjoy this deck and find inspiration for your innovation process. UNDERSTAND TODAY. SHAPE TOMORROW. 2 Discover Define Develop Deliver UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // TOUCH-POINT TECHNOLOGY
  3. 3. UNDERSTAND TODAY. SHAPE TOMORROW. INTRODU CTION. Technology has become a part of almost every day-to-day activity. Things are no different for how brands do business. The customer journey has been transformed to address rising expectations in speed, precision, personalization and security through implementation of technologies at crucial touch-points, or the moments of interaction between the brand and the customer. This snapshot explores three trends we see in today’s brands’ use of technology at touch-points along the customer journey: • Reducing customer effort • Re-humanizing interactions • From responsive to predictive LHBS is a marketing & innovation firm with offices in Berlin and Copenhagen. We help clients to understand today's emerging customer expectations and to shape their business offerings for tomorrow. http://www.lhbs.com Kathleen McCaffrey Marketing Strategist at LHBS lhbs.com | kmc@lhbs.com INTRODUCTION 3 LHBS // TOUCH-POINT TECHNOLOGY Abhijeet Patil Strategy Consultant at LHBS lhbs.com | ap@lhbs.com
  4. 4. CONTENT. UNDERSTAND TODAY. SHAPE TOMORROW. Chapter 2 RE-HUMANIZING INTERACTIONS Chapter 3 FROM RESPONSIVE TO PREDICTIVE Chapter 1 REDUCING CUSTOMER EFFORT CONTENT 4 LHBS // TOUCH-POINT TECHNOLOGY
  5. 5. CHAPTER ONE REDUCING CUSTOMER EFFORT In what ways does a low-effort experience value both businesses and customers? How are brands utilizing technology to simplify touch-points in the customer journey? 5UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // TOUCH-POINT TECHNOLOGY
  6. 6. UNDERSTAND TODAY. SHAPE TOMORROW. With each (successful) innovation we see a reduction in some form of effort undertaken by consumers. Recently there have been extensive reports revealing that when consumers reach out to brands, above all else what they want is simply an effortless experience. The fewer number of steps needed to order a pizza, the increasingly natural speech recognition capabilities of devices and the advancement of device-to-device communication with little to no human involvement all demonstrate the growing success of reduced customer effort. We’re seeing companies implement technology at various touch-points along the customer journey, some of which have been innovated around extensively (e.g. customer service and use), others are seeing disruption for the first time more recently (e.g. payment and delivery). 6 REDUCING CUSTOMER EFFORT LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  7. 7. UNDERSTAND TODAY. SHAPE TOMORROW. 7 LHBS // TOUCH-POINT TECHNOLOGY Technologies making reducing customer effort possible: REDUCING CUSTOMER EFFORT Automation Integration: omnichannel New processes e.g. app
  8. 8. UNDERSTAND TODAY. SHAPE TOMORROW. 8 Customer Effort Score (CES) is the resulting score given on a scale of 1 (very low effort) to 5 (very high effort) when a customer is asked “How much effort did you personally have to put forth to handle your request?” Source: HBR / CEB LHBS // TOUCH-POINT TECHNOLOGY This research by CEB focused on the customer service interaction stages of the customer journey, but can be applied to other touch-points. HIGH HIGHLOW PREDICTIVE POWER FOR REPURCHASING CES NPS CSAT CES outperforms other measurements of customer experience in predicting behavior CES outperformed both Net Promoter Scores (NPS) and Customer Satisfaction Scores (CSAT) in predicting behavior. Customer effort as a measurement of business success REDUCING CUSTOMER EFFORT
  9. 9. A experience from the customer’s perspective results in: UNDERSTAND TODAY. SHAPE TOMORROW. 9 HAVAS MEDIA HAVAS MEDIA 6026 % 74 % increased likelihood of spending more or wallet share, meaning they will spend more over a lifetime on the brand or product increased likelihood of recommending the brand to others LHBS // TOUCH-POINT TECHNOLOGY HAVAS MEDIA 60 12 % 88 % 88% 74% LOW EFFORT REDUCING CUSTOMER EFFORT Source: CEB, The Effortless Experience
  10. 10. UNDERSTAND TODAY. SHAPE TOMORROW. 10 HAVAS MEDIA HAVAS MEDIA 60 4 % 96 % increased likelihood of negative word of mouth increase in overall disloyalty towards the brand LHBS // TOUCH-POINT TECHNOLOGY HAVAS MEDIA 6019 % 81 % 81% 96% A experience from the customer’s perspective results in:HIGH EFFORT REDUCING CUSTOMER EFFORT Source: CEB, The Effortless Experience
  11. 11. UNDERSTAND TODAY. SHAPE TOMORROW. 11 By streamlining it LHBS // TOUCH-POINT TECHNOLOGY How can a touch-point be made effortless? REDUCING CUSTOMER EFFORT By turning it into something else Process automation Making it more fun and enjoyable, either through gamifying the step or connecting it to a social platform Reducing steps Simplifying design
  12. 12. UNDERSTAND TODAY. SHAPE TOMORROW. BEST PRACTICES 12 LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  13. 13. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. eBay’s Image Search eBay is rolling out a new feature to let shoppers search for products using a images. Explore sign eBay’s new feature analyzes photos to find similar products on the site for the best prices. The technology behind the feature does not simply search for images that have similar colors and shapes, but instead uses deep learning and computer vision to highlight what the product is and look for similar products. 13 REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  14. 14. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Adidas’ Text To Shop Billboard Adidas has released a new collection available exclusively through a chat bot accessed via billboards. Explore sign Adidas has partnered with Alexander Wang to release a new collection. The collection is only accessible by locating advertisements placed throughout Manhattan. By texting the phone number with the specific product code displayed, the customer is able to engage with a chatbot and purchase their desired item. 14 Find & compare REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  15. 15. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. WeChat Stores Open Doors to Chinese Market The WeChat stores offer brands a way to seamlessly lead shoppers to purchase. Explore sign The newest addition to the service: WeChat commerce, mobile digital stores. One version of the stores is the off-the-shelf store that is a template provided by third-party interfaces. The other version of the WeChat store is to integrate the functionality into an existing mobile commerce.  15 Find & compare REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  16. 16. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Volvo’s Concierge Service App Third party services can be granted remote access to clean, refuel or service the vehicle through a secure app. Explore sign Third party services such as fuel providers, car washes and servicing teams can be contacted and granted access remotely by the Volvo car owner through the app. They are given a single use, single location digital key for a specified time to access the vehicle. 16 Find & compare REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  17. 17. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Amazon Working on In-Home Delivery A partnership with smart home developers may open your front door for Amazon deliveries. Explore sign When checking out an order on Amazon, users would be able to opt for in-home delivery. They would allow Amazon’s courier one-time access to their home via a connected front door or garage. The courier would get access by using the correspondent app and leave the package inside. 17 Find & compare REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  18. 18. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Louis Vuitton Use WeChat for Instant Customer Service Offering customers support and immediate keyword-based responses, all via WeChat. Explore sign By utilizing the message automation and intelligent response API of WeChat, Louis Vuitton customers in China can now head to WeChat to get immediate answers to common queries. When a conversation is opened, customers receive a welcome message straight away which also lets them know the customer service hours of the support team. 18 Find & compare REDUCING CUSTOMER EFFORTLHBS // TOUCH-POINT TECHNOLOGY
  19. 19. UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATIONS 19 LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  20. 20. UNDERSTAND TODAY. SHAPE TOMORROW. 20 -1- Create a low effort experience for customers at each touch-point Your customers want an effortless experience, and to get the job they want to do, done. Whether this is reading content, ordering a product or finding a solution to a problem. Make it effortless. LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  21. 21. UNDERSTAND TODAY. SHAPE TOMORROW. 21 -2- Frequently measure your customers’ effort scores to keep up with evolving expectations Measure and identify touch-points along the customer journey of highest effort, and define the contributors that make it a high effort experience. LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  22. 22. UNDERSTAND TODAY. SHAPE TOMORROW. 22 -3- Reach customers where they are Reach out to customers via the channels where they’re spending time, or simply be there whenever they need you by optimizing services for mobile. LHBS // TOUCH-POINT TECHNOLOGY REDUCING CUSTOMER EFFORT
  23. 23. CHAPTER TWO RE-HUMANIZING INTERACTIONS What’s the reasoning behind making a brand seem more “human”? Why do we want this? How are businesses harnessing new technologies to convey themselves as more “human”? 23UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // TOUCH-POINT TECHNOLOGY
  24. 24. UNDERSTAND TODAY. SHAPE TOMORROW. Customer interactions for a long time became standardized to cope with fast-paced growth, and so were stereotyped as robotic and disconnected. More recently, the importance of customer- centricity has become widespread, as disrupters of consumer expectations enter the market swiftly and successfully as a result of a technology driven business models. Keeping up with the fast-paced trends and changing consumer behaviors has become the only way for businesses - both small and legacy - to stay relevant, and to do this, the customer should be at the center of the business. Business is now turning a corner and recognizing the importance of showing their human side in order to reach and connect with customers, and are delivering this new experience to every single customer, efficiently and effectively by harnessing new technologies. 24 RE- HUMANIZING INTERACTIONS LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  25. 25. UNDERSTAND TODAY. SHAPE TOMORROW. 25 LHBS // TOUCH-POINT TECHNOLOGY Technologies making humanizing interactions possible: Artificial Intelligence Natural Language Understanding Chatbots RE-HUMANIZING INTERACTIONS
  26. 26. UNDERSTAND TODAY. SHAPE TOMORROW. 26 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS “It is ironic that where the race to automate everything seemed to obviate the human factor, technology is now being used to personalize and humanize service.” Catherine Chetwynd, Raconteur
  27. 27. UNDERSTAND TODAY. SHAPE TOMORROW. 27 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS Creating an emotional connection Making communication as natural as possible Personalizing interactions Here are 3 ways technology is helping brands to ‘humanize’ customer interactions: As we hear about robots replacing staff in almost every industry, we are beginning to see the marketing power of “brand human.” The act of presenting a brand as having a human- touch - something we feel we will soon lose. The man-power required to not only provide this human-touch, but to also meet rising consumer demands of speed, omnichannel consistency and personalization is massively costly and impractical. Enter technology solutions.
  28. 28. UNDERSTAND TODAY. SHAPE TOMORROW. 28 Source: The New Science of Emotions report LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS Creating an emotional connection “An emotional connection matters more than customer satisfaction” Emotionally connected customers are more than twice as valuable as highly satisfied customers, on a lifetime value basis. They will buy more from brands, pay more attention to communications and recommend them more. Consumer behavior is driven by hundreds of “emotional motivators.” Some of the most significant include a desire to stand out from the crowd, to have confidence in the future and to feel a sense of freedom. “To relate is human” By implementing technology at touch-points along the customer journey, brands can apply sophisticated data analytical techniques to gather data to inform them of their customer’s motivators at each point.
  29. 29. UNDERSTAND TODAY. SHAPE TOMORROW. 29 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS Making communication as natural as possible Source: Tratica Research, eMarketer 129% In the last year, the user base of voice devices grew: 90% This coincided with the rise in accuracy of voice recognition technology, which, in 2010 was at 70%, and in 2016 was: It’s predicted that in 2020, the percent of speech-recognition based interfaces will be: 82% “60% of smartphone users agree that “if voice assistants could understand me properly and speak back to me as well as a human can, I’d use them all the time.”
  30. 30. UNDERSTAND TODAY. SHAPE TOMORROW. “I want to talk to a robot” - said no customer, ever. 30 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS Making communication as natural as possible Source: Techanalysis Research, Wired “To help rid Alexa of its cyborgian lilt, Amazon recently upgraded its speech synthesis markup language tags … [to] allow Alexa to do things like whisper, pause, bleep out expletives, and vary the speed, volume, emphasis, and pitch of its speech.” Customer-centric company Amazon are making a huge effort to make Alexa sound more human:
  31. 31. UNDERSTAND TODAY. SHAPE TOMORROW. 31 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS Personalizing interactions Source: L2 Report on Personalization, Accenture Consumers are more likely to buy from a retailer that either: 75% recognizes them buy name recommends options based on past purchases knows their purchase history “I would give more data to businesses if it meant avoiding irrelevant offers” With masses of customer data at our fingertips, in real-time and with great accuracy, we have no reason not to personalize customer journeys where possible. Consumers now recognize that a personalized journey gives them a more enjoyable and relevant experience, and is well on it’s way to becoming an expectation.
  32. 32. UNDERSTAND TODAY. SHAPE TOMORROW. BEST PRACTICES 32 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  33. 33. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Connecting with the Lufthansa Crew Lufthansa created a highly successful behind- the-scenes “stories” campaign. Explore sign The behind-the-scenes Snapchat stories featured the preparation work in getting a plane ready for take off. Titled “Crew Stories,” audiences were given candid insights into the process of preparing a Lufthansa flight. Since its debut the airline has seen an 800% increase in the viewing rates of their Snapchat stories. 33 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  34. 34. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Interactive, Personalized Shopping Experience The North Face is working together with Fluid and IBM to launch an AI-powered personal shopping assistant. Explore sign Customers will be asked a series of questions related to their needs, as well as their requirements. IBM’s Watson interprets the answers and leads the shopper to products that meet their individual needs. Named XPS for North Face, the system relies on natural language, which is one of the most successful applications of AI to date. This allows shoppers to speak to the assistant as they would an real person in store. 34 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  35. 35. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CoverGirl’s Chatbot Modeled On Influencer CoverGirl’S chatbot simulates the tone and style of conversations with celebrity influencer Kalani Hilliker. Explore sign Named the KalaniBot after the 16-year-old celebrity Kalani Hilliker, the bot is designed to interact as authentically as possible. It introduces itself as a bot, sharing product information and exclusive deals, already reaching x14 more conversations than an average Hilliker post. The KalaniBot gets smarter the more it interacts, tracking analytics such as conversation length, sentiment analysis and response rates.  35 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  36. 36. UNDERSTAND TODAY. SHAPE TOMORROW.Source: In-car Voice Assistant Improves with Use German Autolabs have created an AI-powered, in-car digital assistant for communication, entertainment and navigation via voice. Explore sign Dubbed the digital co-driver, “Chris” has been described by founders as an “Alexa of the automotive world.” The greatest difference between “Chris” and other devices such as Alexa, is that it can be interacted with just with hand gestures as well as voice. The artificial intelligence used also means that speech recognition will improve over time when one specific driver is using the assistant. 36 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  37. 37. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Lark, Your Digital Coach And Friend A compassionate, human-like companion to help people manage chronic illness, in the form of an AI app. Explore sign Advertised as a personal, digital coach, Lark offers a highly personalized and infinitely scaleable support platform. The app makes searching for content related to illnesses, communicating with a professional for advice and for general support and motivation easy and friendly. The “coach”, run by Artificial Intelligence is there 24/7 for users, and speaks in a caring and personal way. 37 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  38. 38. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Artificial Intelligence Customer Service Agent Can Sympathize With You The consulting firm Accenture is recommending companies use Amelia, a self- learning cognitive customer service agent.. Explore sign Amelia can have a back and forth conversation with customers in natural language, answer questions and manage processes, like opening a bank account for you. 38 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  39. 39. UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATIONS 39 LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  40. 40. UNDERSTAND TODAY. SHAPE TOMORROW. 40 -1- Analyze customer data to uncover needs and make a connection Before transforming touch-points to become more ‘human’, you first need to really understand your customer, the job they are trying to get done and their emotions at that point. When a customer feels you ‘get’ them, they will be more likely to see the value in - and trust - your solution. LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  41. 41. UNDERSTAND TODAY. SHAPE TOMORROW. 41 -2- Create frictionless and ‘human’ interactions “Brand human” is trending. Businesses who speak via content or directly with customers in a conversational tone, without jargon are described as having a ‘human-touch’, something increasingly valued today. Consumers are wanting to become more involved with the brands they love, and speaking to them as equals and empowering them with understanding and solutions is a huge step towards bringing them closer. LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  42. 42. UNDERSTAND TODAY. SHAPE TOMORROW. 42 -3- Personalize touch-point interactions The more you use customer data to personalize, and so increase the value and relevancy of an experience for your customers in a way they can see, the more willing they will be to offer more personal data in the future. As personalization becomes an expectation, this is something every brand should begin experimenting with. LHBS // TOUCH-POINT TECHNOLOGY RE-HUMANIZING INTERACTIONS
  43. 43. CHAPTER THREE FROM RESPONSIVE TO PREDICTIVE Where is the demand coming from for more than instant service? How is technology beginning to open up new opportunities for predictive intelligence? 43UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // TOUCH-POINT TECHNOLOGY
  44. 44. UNDERSTAND TODAY. SHAPE TOMORROW. As consumers become accustomed to instantaneous service from brands and from the products they use, we see businesses taking a step further to stay ahead, to meet and exceed expectations. The huge quantity of customer data that can now be so easily aggregated has brought about the possibility for technology that can begin to anticipate customer needs. This technology has been around for a long time - just think of Google search predicting what you want to type. We’re now seeing this advance further under the title “smart automation.” Far from perfect, this technology can be a negative impact if not done right, but when successful, it proves to be immensely valuable to users and businesses alike. Technologies anticipating our needs before we even have to act will soon be routine. 44 FROM RESPONSIVE TO PREDICTIVE LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  45. 45. UNDERSTAND TODAY. SHAPE TOMORROW. 45 LHBS // TOUCH-POINT TECHNOLOGY Technologies making prediction possible: Predictive Analysis Artificial Intelligence Connected Devices (of customer data) FROM RESPONSIVE TO PREDICTIVE
  46. 46. 40 % 60 % UNDERSTAND TODAY. SHAPE TOMORROW.Source: SALESFORCE “STATE OF THE CONNECTED CUSTOMER REPORT” 60% More than half of consumers expect companies to anticipate their needs, and make relevant, proactive suggestions across every touch-point 46 HAVAS MEDIA 60%49 % 51 % 51% FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  47. 47. UNDERSTAND TODAY. SHAPE TOMORROW. 47 “Predictive analytics, self-learning algorithms and technology create a connective thread powered by data to fine-tune customer interactions and experiences. This enables a company to use real-time data to calculate and anticipate customer needs, delivering the next-best product, service or experience for customers.” Source: Forbes Rob Walker, CTO & VP of Product Marketing at Pega LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  48. 48. 30 % 70 % HAVAS MEDIA LHBS Put the Title of the Report here increase in conversion rate as a result of Microsoft’s tailored email offers using real-time customer data 70% When sending email offers for Bing, Microsoft saw an increase of 70% in conversion rates. They achieved this by using real-time customer information such as location, age, gender, past and very recent online activity and information about recent responses from other customers. This data was not gathered beforehand, but was collected and analyzed within 200 milliseconds of the email actually being opened, in order for the most relevant offer to be made. This use of predictive analytics in real-time and consequent success demonstrates that if data is being used to ensure ultimate customization and so deliver the most value for the user, customers will respond. UNDERSTAND TODAY. SHAPE TOMORROW.Source: 48 Source: HBR FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  49. 49. UNDERSTAND TODAY. SHAPE TOMORROW. 49 “..remembering customer preferences is only the beginning; the personalization capability extends to optimizing the next steps in a customer’s journey. At the moment a customer engages (for example, by responding to a message or launching an app), the firm must analyze the customer’s behavior and tailor its next interaction accordingly.” David C. Edelman & Marc Singer, HBR, Competing on Customer Journeys LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  50. 50. UNDERSTAND TODAY. SHAPE TOMORROW. BEST PRACTICES 50 LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  51. 51. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Harley-Davidson Is Using AI to Drive Sales A Harley-Davidson dealer in NYC has increased it sales leads by 2,930% by utilizing targeted marketing driven by AI. Explore sign Targeted marketing from AI is saving a Harley- Davidson in NYC. Mid winter saw less than 3 motorcycles selling a week. The week after implementing the new tools they sold 15 bikes. By using the advanced AI algorithms to find people similar to past customers, the dealer is able to be much more efficient and effective with their advertising. They have been able to successfully predict who their next customers will be, and target them. 51 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  52. 52. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Otto Harnesses AI to Predict Customer Orders German e-commerce merchant Otto is using artificial intelligence (AI) to make decisions at scale by predicting monthly sales. Explore sign Using AI, Otto decreased product returns by almost 2m a year, automatically purchase items each month for quick dispatch and reduced their quantity of surplus stock held by a fifth. By also analyzing around 3 billion past transactions as well as 200 variables including past sales, Otto site searches and weather information, the technology is able to predict customer purchases weeks before they place their orders, and does so with a 90% accuracy rate. 52 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  53. 53. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Using AI To Help Millennials Budget AI banking app Chip is trying to do just that by analyzing spending and maximizing savings. Explore sign Chip works by analyzing spending and automatically moving small amounts of money into a saving account. By only moving small amounts during times when the AI has noticed you don't usually need the extra cash, the goal is to reduce the impact of saving money to the point where the user doesn’t even notice their reduced spending power. Chip is currently focusing on Millennials, with a special focus on trying to cut down on the overdraft fees which 40% of Brits are affected by. 53 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  54. 54. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Orange Bank Chatbots The telco moves into the French markets after success launching their mobile banking services in Poland. Explore sign The Orange chatbot will apply machine learning to gradually understand more about you, like your future needs and wants, along with your projected spending habits. The chat bots are programmed to detect emotion through 'sentiment analysis' where you, as the customer may require human advice over machine.  54 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  55. 55. UNDERSTAND TODAY. SHAPE TOMORROW.Source: REPORT TITLE // IMPLICATIONS. Proactive Customer Support BetterCloud offer proactive support when their technology notices potential issues with users, and initiate conversations. Explore sign BetterCloud help businesses manage software- as-a-service applications, and know full well that many times customers will attempt to fix problems themselves, or even look for an alternative solution to avoid the time it takes to submit a ticket. So their technology flags potential issues the website spots, and support staff preemptively contact the customer offering support. 55 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  56. 56. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Disney Can Now Read Audience Emotions Disney's new technology can read individual audience member's faces to determine emotions, and so their enjoyment of films. Explore sign Asking audience members for feedback on the film they just watched is informative, but not completely reliable. So Disney have devised a new facial recognition technology utilizing deep learning techniques, which can analyze the motions on the faces of every single audience member in a movie theatre. It can confidently predict how a person will react to an entire film after analyzing reactions for only ten minutes. 56 FROM RESPONSIVE TO PREDICTIVELHBS // TOUCH-POINT TECHNOLOGY
  57. 57. UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATIONS 57 LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  58. 58. UNDERSTAND TODAY. SHAPE TOMORROW. 58 -1- Map your customers’ digital journey Businesses should first have a comprehensive overview of their customer’s journey with their product or service. Then place themselves in the position of the customer. Compare your journey with those of competitors, but also with the highest ranked customer journey experiences of companies from other industries. Can you disrupt your industry by tailoring and applying the best experiences? LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  59. 59. UNDERSTAND TODAY. SHAPE TOMORROW. 59 -2- Identify the touch-points of highest effort for customers With the mapped digital customer journey, acting as the customer and by utilizing data and feedback identify the touch-points of highest effort using the Customer Effort Score (CES) scale. This is where you begin. LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  60. 60. UNDERSTAND TODAY. SHAPE TOMORROW. 60 -3- Use data insights to form hypothesis, and inspire innovation From your customer data and internal insights, begin forming hypothesis around what might be possible, and around what predictive technology might spark in customers in terms of emotional response and actions. Testing predictive technology is crucial. When done right it can be immensely valuable, but often what seems logical to a business can feel intrusive or an annoyance to customers. LHBS // TOUCH-POINT TECHNOLOGY FROM RESPONSIVE TO PREDICTIVE
  61. 61. UNDERSTAND TODAY. SHAPE TOMORROW. Discover ABOUT. Define Develop Deliver LHBS is a marketing & innovation firm with offices in Berlin & Copenhagen. We work with legacy organisations to adapt their customer value proposition to meet emerging customer expectations. Together with our clients we discover business opportunities and deliver integrated customer offers for products, services, experiences and communication. http://www.lhbs.com ABOUT UNDERSTAND TODAY. SHAPE TOMORROW. 61 DISCOVER DEFINE DEVELOP DELIVER UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // TOUCH-POINT TECHNOLOGY
  62. 62. LHBS Put the Title of the Report here HUB. UNDERSTAND TODAY. SHAPE TOMORROW. This case study has been created with the help of signmesh. signmesh innovation hub is a tailored dashboard of curated insights and business cases to keep your company ahead of the learning curve and inspire ongoing innovation. signmesh.com SIGNMESH 62 REQUEST A DEMO. LHBS // TOUCH-POINT TECHNOLOGY
  63. 63. Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der 
 LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung, 
 die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154  10997 Berlin Germany   IMPRINT UNDERSTAND TODAY. SHAPE TOMORROW. www.lhbs.com THANK YOU 63 LHBS // TOUCH-POINT TECHNOLOGY

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