More Related Content Similar to Bus r04 beyond digital experiences - driving your customers and employees from engagement to commitment Similar to Bus r04 beyond digital experiences - driving your customers and employees from engagement to commitment (20) Bus r04 beyond digital experiences - driving your customers and employees from engagement to commitment1. Drive your customers and employees
From engagement…
To commitment
Peter Funke, Executive Consultant
#IBMDX15
BUS R04
Beyond exceptional experiences…
2. © 2015 IBM Corporation
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Performance is based on measurements and projections using standard IBM benchmarks in a
controlled environment. The actual throughput or performance that any user will experience will
vary depending upon many factors, including considerations such as the amount of
multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and
the workload processed. Therefore, no assurance can be given that an individual user will achieve
results similar to those stated here.
2
3. Agenda
• Evolution of systems of engagement
• ROI of engagement
• Demos of “The Goal” – Commitment!
– Example 1 – A “most essential” use case
– Example 2 – Customer in typical business
• Next steps
© 2015 IBM Corporation 3
4. © 2015 IBM Corporation
4
Web Experience Evolution
Standard UX
Single Sign-On
Single Taxonomy/.
& Navigation
Common UI
Social Integration
Personalization
Personalized Full-
Journey Composite
Mobile Everywhere
Container Evolution
Forms
Content EvolutionCorp. Web Pages
“About” your HR
“About” everything
Integration with
“systems of record”
Integration with
“systems of Engagement”
Analytics and
Heuristics, Journeys
90s 2015
5. © 2015 IBM Corporation
5
90s 2015
“Human Artifact” Evolution
Pre-Human
Ergo-Human
Socio-Human
Psycho-Metrically
Social Human
6. – Identical factors drive intrinsic (sustainable) satisfaction:
– Net Promoter Score applies equally to both
© 2015 IBM Corporation
6
Employee engagement and customer
engagement are similar:
Ryan/Deci, American Psychlogist, Jan. 2000
Enablement
Autonomy
Relatedness
7. What are we connecting these ubiquitous screens to?
Human needs cover a wide spectrum. Aspire high!
© 2015 IBM Corporation
7HR Zone, April 2014
8. What is the difference? What is the gap?
What if we closed the gap?
© 2015 IBM Corporation
8HR Zone, April 2014
Employees Customers
Engagement
Commitment to be a
Server to others!
9. Customer & Employee Management
Systems
© 2015 IBM Corporation
20+ Years to evolve to the same conclusion!
“People are People”
CUSTOMER ENGAGEMENT EMPLOYEE ENGAGEMENT
Customer Satisfaction Index Employee Satisfaction
CES
Employee Engagement
MOTS
1995
2015
Employee Commitment
Personnel/HR
Owned
Business
OwnedNPS
OF CUSTOMER
NPS
OF EMPLOYEE
® ®
®NPS Net Promoter Score is a trademark of Bain and Company
10. © 2015 IBM Corporation
10
Net Promoter Score is a trademark of Bain and Company
A single question foretells the future, but how do
you manage and make it sustainable?
11. © 2015 IBM Corporation
11
Millennials demonstrate higher altruism.
“Wealth is…
“A means to help my
Community”
“A means to help future
generations.”
“A means to pursue
what is most important”
BusinessInsider Oct, 2014
12. AMD asked their sales team how they think they learn best…
Source: Kenexa - Brandon Hall Webinar Why We Needed a Social LMS: The AMD Story
If learning moves us up the pyramid, how do we learn faster?
13. And so spend on collaborative social portals will increase.
14. Hypotheses
• We are now in age of human-centered systems
• Value driven fastest by addressing human needs
• Increasingly these are altruistic
• Altruism requires easy (but trusted) connection
• Firms that most enable altruism will prosper
• It will be “expensive”
• e.g . Google 2004 “Do no evil”
© 2015 IBM Corporation 14
Google 2014 “invest in healthcare”
15. Agenda
• Evolution of systems of engagement
• ROI of engagement
• Demos of “The Goal” – Commitment!
– Example 1 – An “essential” use case
– Example 2 – Customer in typical business
• Next steps
© 2015 IBM Corporation 15
17. © 2014 IBM Corporation
17
Customer Experience & Profits
CXO’s know Engagement thru increased Connectedness/Collaboration With
Customers drives profits!
Outperformers collaborate We need to do it more!
18. CxO’s Get It! Investments Are Shifting to the
Front Line
First To The Customer, Then To The Employees Who Support Them
© 2014 IBM Corporation
18
19. Socially active customers are more engaged
© 2014 IBM Corporation19
66% of
consumers left in
past year
from poor service
costing $5.9T
Accenture
Socially-engaged
interactions drive
15% more
revenue
McKinsey
68% more profit
from a5%
decrease in
defections
Bain
21. Market leaders in digital enterprise are seeing strong gains in market-share and profits.
Cemex – A first mover in construction logistics:
•Reduced time to market on new product by >65%
•Accelerated deployment of $113M alternative fuels idea
Omron – Converged disparate sales into one via consolidated “social portal”
•Increased responsiveness to leading edge engineering firms
•Rich visual sales methods enhanced with easy access to experts
•Engaging and compelling training materials for sales team
Asian Paints – Deployed portal + Connections to B2B distributors and dealers
•Sensing requirements of diverse consumers as they shift
•Foundation for new mobile customer apps
22. © 2015 IBM Corporation
22
Increased engagement by employees yields impressive financial impact, saving costs while increasing margins and revenues.
Caterpillar: Decreased grievances by 80% and saved $8.8 M/yr in one plant (from
absenteeism and overtime)
$2M increase in profit with 34% increase in highly satisfied customers
(1 plant)
Molson: Average safety cost per employee was $63 for engaged versus $392
for non-engaged employees.
Increased profit from higher engaged sales teams $2.1M
Intuit: Disengaged employees 5X more likely to leave
IBM: Demonstrated 25% less turnover in A/B test of first year turnover from
social portal.
23. © 2015 IBM Corporation
23
Connections matter most.
24. 60%
80%
100%
120%
140%
"A" Managers "C" Managers
81%
137%TurnoverPercentage
Kenexa Assessment Classification
Hourly Turnover Percentage
Total Sales per Employee (as % of budget)
8.31
8.35
8.4
8.6
8
8.2
8.4
8.6
8.8
9
OverallSatisfaction
Lowest Low High Highest
Employee Engagement and Guest Satisfaction
14%
19%
20%
21%
10%
12%
14%
16%
18%
20%
22%
1stQuartile 2ndQuartile 3rd Quartile 4th Quartile
Engagement and Profit
1.70
11.00
18.07
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Actual Theft Rate per 1000 Hires
Teams run by managers who most
closely aligned with the “fit” strategy
saw:
•Employee engagement scores
increase 6.2%
•Turnover rates dropped 43%
•Profit per customer increased by 1.2%
Which translated into millions of
increased net income!!!
25. Just one slice of the “optimized employee engagement” will
pay the freight for the entire “engagement cake”.
© 2014 IBM Corporation
25
Exceptional Customer Journey(s)
Exceptional Employee Journey(s)
YES!! Therefore:
Total Employees 50000
Turnover (ind. Ave) 0.15
Recruited/landed 7500
Cost per recruit 10700*
Total cost of recruiting $80,250,000 M
1st year turnover 66%*
Reduction 25%**
Total 1st year
Savings!! $13,241,250 M
* Allied Index survey 2012
** Based on IBM A/B test Engaged Employees study
26. Agenda
• Evolution of systems of engagement
• ROI of engagement
• Demos of “The Goal” – Commitment!
– Example 1 - Employee
– Example 2 - Customer
• Next steps
© 2015 IBM Corporation 26
27. Can this we develop a digital model for
learning this faster?
© 2015 IBM Corporation
27
Engagement Campaign
Templates (projects)
Deploy
Engagement
Campaigns
Analyze and measure
Results. Promote
Winning (outlier) campaigns
Redeploy to
other segments
Experiment A/B
Testing
28. © 2015 IBM Corporation
28
Start with the end in mind… the most essential use case.
29. Can we do even better? How do we persuade
employee and customer to consistently raise NPS?
© 2015 IBM Corporation
• Commitment/Consistency*
• Social Proof (Vicarious commitment*)
• Authority
• Liking
• Scarcity
• Reciprocity
R. Cialdini, Psychology of Persuasion, 1984
30. Can we do even better? How do we persuade
employee and customer to raise NPS?
© 2015 IBM Corporation
Cooper and Axel, 1983, Journal of Experimental Social Psychology
32. © 2015 IBM Corporation
32
HealthBest works to continuously improve the health of its
members. Here we see Dina, a marketing manager, harvesting
a winning campaign and cascading it to heart attack victims.
33. © 2015 IBM Corporation
33
Analytics make obvious where the successful campaigns are.
She harvests from the top/right team.
34. © 2015 IBM Corporation
34
Konrad has had an enlightening session with his heart recently.
He is on the mend.
35. © 2015 IBM Corporation
35
In the e-Consult with his physician, he sees a very rich
“gamified” (almost) view of his diseased heart.
36. © 2015 IBM Corporation
36
He is asked to step thru commitments at then end of the
session.
37. Here we view these principles applied in a banking environ. The
seller is presented leads (from system of record) in context of his
virtual team.
38. The opportunity is surrounded by the people, process, and tools
that enable the seller to engage.
40. In the most compelling way… rich media with team connected.
42. 7 steps to
become a
digital
enterprise
1. Deploy “digital enterprise” governance team
2. Know starting point, then “aim high”. Build an
explicit vision that articulates customer and
employee journeys (include social in all cases)
3. Rank investment options with common
risk/benefit methods
4. Deploy social interaction, “listening” and
response (analytics + micro campaign) systems
across the entire customer journey
5. Deploy best practice (low risk and scalable)
architecture
6. Define and deploy social and analytics policies
7. Attract and retain/engage the best and brightest
Recommendations/Next steps:
44. © 2015 IBM Corporation
For Additional Information
IBM Digital Experience Solutions
http://www-01.ibm.com/software/collaboration/digitalexperience
WebSphere Portal and IBM Web Content Manager Information Center
Wiki
http://www-10.lotus.com/ldd/portalwiki.nsf/
IBM Digital Experience Demonstrations:
http://www.youtube.com/user/IBMXWebX
• IBM Digital Experience Developer
http://developer.ibm.com/digexp
IBM Software Business Solutions Catalog
https://greenhouse.lotus.com/catalog/
44
Editor's Notes Sources:
Accenture Global Consumer Pulse Research, 2013
American Express Global Customer Service Barometer, 2013
“Evolution of the networked enterprise”, McKinsey & Co, March 2013
Bain & Co report
So there is the gap. A major shift in awareness across Senior Management, followed by a chasm of uncertainty by middle management on how to execute. Based on our experience, we have pulled together a sort of “best practices” set of initiatives to start help our client effectively launch their digital transformation. These are arranged roughly in sequence, though of course, it is best to do them all as soon or early in the process as is possible.