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© 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
A BBC 2017 Pr...
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Yourpresenter...
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IntroducingMc...
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HowMcorpCXsta...
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Today, we’re ...
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Whatpercentag...
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Whatpercentag...
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Why?Simple:Yo...
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Customerexper...
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Whenexpectati...
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Thentheytello...
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Andmanycustom...
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Problem:Today...
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Solution:Afoc...
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High-levelben...
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Today, we’re ...
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Inaworldofrad...
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Integrated, o...
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Todaysleaders...
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Mcorp’sCustom...
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Business Oper...
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Goals
Expecta...
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Interested
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Major
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People Proces...
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Customer Experience 101: Building CX Capabilities to Drive Differentiation and Business Success

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Presentation given at the Building Business Capabilities conference for the International Institute of Business Analysts (IIBA) discussing customer experience, why it matters and how to enable customer experience in your organization.

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Customer Experience 101: Building CX Capabilities to Drive Differentiation and Business Success

  1. 1. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) A BBC 2017 Presentation: Building Business Capabilities, and the International Institute of Business Analysts (IIBA)
  2. 2. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Yourpresenter: MichaelHinshaw  President and Founder, McorpCX – leading customer experience strategy, innovation and design firm  Currently on 5 “2017 Top CX leader" lists  Top CMO.com and CustomerThink author (#6 Overall, #3 Customer Experience)  Former CEO, $300 Million B2B Ecommerce company built with (and on) CX principles  Teaching Fellow at UC Berkeley’s Lester Center for Entrepreneurship and Innovation at The Haas School of Business +1-415-526-2651 mhinshaw@mcorp.cx www.mcorp.cx
  3. 3. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) IntroducingMcorpCX:DrivingbetterCXforleadingbrands
  4. 4. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) HowMcorpCXstacksupagainstthebest… “[Their] narrow but deep market position enables McorpCX to effectively serve both the SME market and the largest global corporations”1 -- ALM Intelligence: The Kennedy Vanguard 1) The Kennedy Vanguard – Digital Customer Strategy & Experience Consulting Providers
  5. 5. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Today, we’re going to discuss: What customer experience is, and why it matters; Implications for your business, and How to enable customer experience in your organization.
  6. 6. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Whatpercentageofexecutivesthinktheexperiences theyprovidetheircustomersis“excellent”? 80%
  7. 7. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Whatpercentageoftheircustomersthink(overall) thattheexperiencetheyreceiveis“excellent”? 8%8% vs 80% is a 72 point Perception Gap
  8. 8. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Why?Simple:Yourcustomershaveclearexpectations oftheexperiencetheywishtoreceive. Ifthoseexpectations are notmet,there’sagap. experience © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  9. 9. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Customerexperienceoccurseverytimea customerinteracts withyour people,products, servicesordevices. The challenge? Customer experience lives in the minds of your customers: It is whatever they think it is. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  10. 10. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Whenexpectations aren’tmet,brandsgetdumped Given a choice, both consumers and business buyers will switch after a single bad experience Source: ZenDesk, Oracle, and Harris Interactive Customer Experience Impact Reports
  11. 11. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Thentheytellothersexactlyhowtheyfeel... Source: ZenDesk, Oracle, and Harris Interactive Customer Experience Impact Reports Dissatisfied customers actively share complaints with others.
  12. 12. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Andmanycustomersjustgrabtheirsmartphones... Source: Forbes Insights, Would rather make a business purchase over the mobile Web than the phone Have started transactions worth over $100,000 on their smartphones Look up business products and services on first hearing about them THEN NOW
  13. 13. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Problem:Today,customers arehardertoget,andkeep. Page 5© 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  14. 14. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Solution:Afocusoncustomerexperiencecansolvethis 1) HBR, August 2014: The Value of Customer Experience, Quantified 2) Forbes, March 2014: 'Customer Experience' Is Today's Business Benchmark
  15. 15. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) High-levelbenefitsforcustomerexperienceleaders: 1. Greater top- and bottom-line revenue growth 2. Ability to adapt to fast-changing customer needs 3. Proven protection from commoditization 4. Greater customer (partner and employee) loyalty and engagement
  16. 16. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Today, we’re going to discuss: What customer experience is, and why it matters; Implications for your business, and How to enable customer experience in your organization.
  17. 17. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Inaworldofradicallychangingcustomerexpectations, thereisonlyonesustainablecompetitiveadvantage: Deliver a better customer (and employee, and partner) experience, across all channels and interactions
  18. 18. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Integrated, operating model-driven: Andthe‘disciplineofcustomerexperience’isevolving More tactical, issue-driven: Tools like Journey Mapping and Persona; Metrics like CSAT and NPS More holistic, capability-driven: CX strategy and management capabilities; Customer understanding, CX design capabilities Business Operating Model CX Capability, Metrics & Measures CX Vision
  19. 19. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) TodaysleadersfocusondeliveringCXtransformation Business Operating Model CX Capability, Metrics and Measures Customer Experience Vision CX Vision The desired customer experience (“CX Vision”) as seen through the eyes of the customer - balanced with the needs of the business. Grounded in Persona Models and Journey Maps Business Operating Model How the organization delivers the desired CX vision, and how that relates to driving business value through products and services offered Grounded in People, Processes, Information and Technology CX Capability, Metrics and Measures How the organization continuously and systematically manages, measures and optimizes the CX Vision and the Business Operating Model Grounded in the 8 “Best Practice Capabilities” of CX Leaders (Top 20%)
  20. 20. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Mcorp’sCustomer ExperienceOperatingModel(CXOM) Goals Expectations Needs Metrics & Measures Brand/ Ethics Legal/ RegulatoryFinancial Organi- zation Business Operating ModelCustomer Persona Business Case Preferences Easy|Enjoyable|Useful Channels Compe- tition Products & Services Customer Journeys CX Strategy Customer Understanding Design and Innovation Governance Culture Measurement Technology Processes © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  21. 21. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Business Operating Model Goals Expectations Needs Metrics & Measures Brand/ Ethics Legal/ RegulatoryFinancial Organi- zation Customer Persona Business Case Preferences Easy|Enjoyable|Useful Channels Compe- tition Products & Services CXOM:Business ValueRealization (The“why”) Customer Journeys CX Strategy Customer Understanding Design and Innovation Governance Culture Measurement Technology Processes Business Value Realization: Systematically linking Customer Experience efforts to the delivery of measurable business value – as defined by your business © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  22. 22. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Goals Expectations Needs Metrics & Measures Brand/ Ethics Legal/ RegulatoryFinancial Organi- zation Customer Persona Business Case Preferences Channels Compe- tition Products & Services CXOM:Customer Experience Vision(The“who”) Customer Journeys Business Operating Model CX Capability, Metrics & Measures CX Vision Customer Experience Vision: Driven by a deep understanding of who customers are and what they desire, the experiences they have today, and the ideal experiences that – if delivered – will ensure they drive business value. CX Strategy Customer Understanding Design and Innovation Governance Culture Measurement Technology Processes Easy|Enjoyable|Useful © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  23. 23. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Goals Expectations Needs Metrics & Measures Brand/ Ethics Legal/ RegulatoryFinancial Organi- zation Customer Persona Business Case Preferences Easy|Enjoyable|Useful Channels Compe- tition Products & Services CXOM:BusinessOperating Model(The“how”) Customer Journeys Business Operating Model CX Capability, Metrics & Measures CX Vision Business Operating Model CX Strategy Customer Understanding Design and Innovation Governance Culture Measurement Technology Processes Business Operating Model: Understanding how an organization operates today, and how it could operate tomorrow to deliver the experiences customers desire, and the business value you require. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  24. 24. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Goals Expectations Needs Metrics & Measures Brand/ Ethics Legal/ RegulatoryFinancial Organi- zation Customer Persona Business Case Preferences Easy|Enjoyable|Useful Channels Compe- tition Products & Services CXOM:Customer ExperienceManagement Capabilities Customer Journeys Business Operating Model CX Strategy Customer Understanding Design and Innovation Governance Culture Measurement Technology Processes Customer Experience Management (CXM) Capabilities: How an organization systematically and continuously manages and optimizes customer experience… to deliver on the CX Vision, activate the Business Operating Model and drive measurable Business Value Business Operating Model CX Capability, Metrics & Measures CX Vision
  25. 25. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Marketing return on investment Positive social media mentions Revenue from customer referrals Greater customer “win-back” rates Faster average sales cycle More cross- and up-sell revenue +1,767% 24.9%: With Customer Journey Management, 16.2%: Without 16.8%: With Customer Journey Management, 0.9%: Without 17.9%: With Customer Journey Management, 5.1%: Without 17.1%: With Customer Journey Management, 1.2%: Without 17.1%: With Customer Journey Management, 1.2%: Without 15.3%: With Customer Journey Management, 9.8%: Without +54% +1,325% +24% +56% +251% 1) Source: Aberdeen Group – The CMO Dilemma: Bridging the Gap Between Love and Money, May 2015 Page 7 Thepayoffforthisshift?MassiveROI...ifyouactively managecustomerexperience,personaandjourneys1 © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
  26. 26. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Today, we’re going to discuss: What customer experience is, and why it matters; Implications for your business, and How to enable customer experience in your organization.
  27. 27. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Greatcustomerexperiencedoesn’t“justhappen.” It’splanned,andmanaged. Breaking down and working across organizational silos Integrating customer needs and business requirements
  28. 28. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Itstarts byconsistentlyputtingyourcustomersand theirneedsatthecenterofyourbusiness Refine Your operating model to enable customer experience Align Technologies and Processes to support and drive customer engagement Engage Executives, leadership and staff in making customer intimacy real Map and improve customer journeys Listen to your customers across all aspects of their experience Measure and improve performance using key CX metrics Transform your culture and reward systems Incorporate customer feedback into experience design
  29. 29. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Interested Invested Committed Engaged Optimized Stage 1: Undeveloped Stage 2: Ad-Hoc Stage 3: Repeatable Stage 4: Systematic Stage 5: Embedded CustomerValue Customer Experience (CX) may be important, but there is no formal approach CX is important, and some formal programs emerge, though customer experience management is ad hoc CX is very important; customer experience management practices implemented regularly, but not yet systematic or scalable CX is ingrained in culture or “DNA” of the company, customer experience management practices are performed regularly and systematically, and systems are in place to drive ongoing improvement CX is a core piece of the company’s strategy, and customer experience management practices are performed regularly and systematically, Todososystematically,youmustcommittoimproving yourcustomerexperiencematurity. Organizational Adoption and Maturity
  30. 30. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Embracingtheseeightkeycapabilities, modeledon thebestpracticesofcustomer-centricleaders Customer Experience Strategy Customer Understanding Design and Innovation Governance Culture Technology Developing better customer experiences requires: Delivering better customer experiences requires: Measurement Processes
  31. 31. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Interested Invested Committed Engaged Optimized Stage 1: Undeveloped Stage 2: Ad-Hoc Stage 3: Repeatable Stage 4: Systematic Stage 5: Embedded Core Capabilities for Delivering Better Experiences Core Capabilities for Designing Better Experiences Buildingonyourexistingcapabilitiestosupport “customer-centric” transformation CX strategy Customer understanding CX design and innovation Governance Culture Experience measurement Technology Processes
  32. 32. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Major Objectives A multi-phase, end-to-end engagement Design a seamless, end-to end certification experience across platforms Ensure that changes can be understood and leveraged by MSL and IT Develop an internal CX capability in Microsoft IT Research insights and experience design for 3 key, global customer segments Overarching customer experience strategy for all MSL audiences Current and ideal state journey maps Identify and prioritize gaps, improvements, and omni-channel initiatives AnexampleCXcasestudy:Transforming certification for5M+globalusersacross 10,000+institutions
  33. 33. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Astraightforward approach that enabled IT to more efficiently build business-aligned technology solutions Insights Strategy Design Implement Improve Understand customer perceptions Align on a strategy to drive improvements Design the experiences customers need Build, iterate and improve – then roll out Monitor and measure, and improve over time
  34. 34. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Linkingan‘outside-in’viewofthejourneyscustomers takeandthemetricsthatdrivecustomersuccess… TryLearn Buy Use Support To understand what customers are doing and how they are feeling – and where interactions are powerful, painful or broken, from the customers perspective Capturing the overall expectations Functional and emotional aspects of the experience The overall journey, and individual stages for each Performance of channels and interactions Overall Journey AttributesTouchpoints
  35. 35. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) People Process Information Technology How client centric is your organization? Do you have and support the right technologies? How much do you know about your clients? Are your processes simple & easy to navigate? To find and prioritize systems issues and gaps, to drive improvements to the experiences customers expect to receive TryLearn Buy Use Support Toaninside-outviewofthesystems(people,processes, data,andtechnologies) thatdeliverthesejourneys
  36. 36. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Whatdidweaccomplish?Somebusiness results… User Experience Substantially Better Time to Market Radically Reduced Significant Cost Savings 10 Percent Topline Revenue Increase Satisfaction Doubled 100 125 183 200 130 64 90 7 $6.1 $5.1 $25.8 $17.2 $8.6 Improved experiences drive substantial top-line revenue increases Decreased Certification Annual Operating Costs Decreased Certification Exam Time-to-Market from 90 days to 7 days Increased User Satisfaction with Experience, up 64 points to 130 Increased Business Partner Satisfaction, up 100 points to 200
  37. 37. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) “Ifyoudon’tlikechange, you’regoingtolike irrelevanceevenless.” General Eric Shinseki, Retired Chief of Staff, U.S. Army Soaskyourself:Whatmight– whatmust–YOUaccomplish?
  38. 38. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) In closing, just a couple things…
  39. 39. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Customers andindustries arechanging.Youmust,too. (Formany,changehappensslowly–thenallatonce). Customers need to be at the center of your business The status quo in your industry is changing Customer Experience is the only sustainable advantage Your ability to manage processes, data and technology drives success Your operating model will accelerate (or block) progress
  40. 40. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Anyquestions? Let’stalk…
  41. 41. © 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission) Michael Hinshaw Direct: +1-415-526-2651 mhinshaw@mcorp.cx www.mcorp.cx
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Presentation given at the Building Business Capabilities conference for the International Institute of Business Analysts (IIBA) discussing customer experience, why it matters and how to enable customer experience in your organization.

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