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Transforming the Digital Experience Via Customer Journey Mapping

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As the modern consumer's expectations of a sublime digital experience increase, so does the need for a new customer journey map. In this post, I unveil the Customer Insights Map, which makes the traditional exercise of customer journey mapping more intelligent by answering the nuances of today's buyers, leveraging machine learning, artificial intelligence, and path-to-purchase analytics to boost the lifetime value of customers.

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Transforming the Digital Experience Via Customer Journey Mapping

  1. 1. Social Skills Problem Solving Skills Digital Transformation System Skills Transforming the Digital Experience via Customer Journey Mapping Digital Security & Governance Resource Management Skills Process Skills Content Skills Experience Management Organizational Development Digital Trade Machine & Cloud Learning Platform Management Data Solutions Architecture Technical Skills Information Technology Services Product Service Integration
  2. 2. Digital transformation is quickly altering the competitive landscape and forcing the workforce to skill up to embrace the amount of data and intelligence at our disposal. Running an intelligent operation goes well beyond gut checking decisions against limited data sets. The best intelligent operations scale human logic and empathy to tell rich stories. One place those stories come to life is through customer journey mapping exercises. Intelligent Operations & Journey Mapping.
  3. 3. The Complex Customer Journey. Leads 38% More than half of all customer interactions occur during a multi- event, multichannel journey 38% of all customer journeys involve more than one channel of interaction 56% Everything involved in organizational growth is intertwined and dependent on how well you understand your buyer’s and employee’s needs across their journey. Effective customer journey mapping exercises can only take place when you set aside preconceived notions of how a customer decides to buy from you.
  4. 4. 86% of buyers are willing to pay more for a better experience with a brand but only 1% of those brands consistently meet those expectations. To try to meet the modern consumer’s elevated expectations, 47% of organizations will use artificial intelligence, such as chatbots and virtual assistants. In addition, 40% of all data analytics projects run will relate to an aspect of the customer’s experience. Improving Process to Improve Experience. 86% 59% 47% 40% MEETING CUSTOMER EXPECTATIONS HEAD ON 86%
  5. 5. The mechanical process of the traditional marketing funnel feels disjointed for the end consumer and causes friction for the employees as silo walls build sky high. The disjointed handoff between the marketing and sales departments will no longer suffice. It’s this conveyor-belt style approach which robs both employees and customers of a sublime journey and end experience. The Old Marketing Funnel Falls Short.
  6. 6. Organizations considered CX leaders outperformed laggards on the S&P 500 index by nearly 80%. Leading brands today are in the leader spot because of their relentless focus on delivering a more cohesive experience at each stage of the buyer’s journey. But, in order to deliver the type of experience in- demand today, these organizations know they must embrace the notion that the buying funnel isn’t what many once believed it to be. A New Funnel for the Modern Customer.
  7. 7. Improving Customer Journey Analytics. Iterating on past customer journey mapping exercises via innovative methodologies can help deepen your insights into what’s happening and deliver a better end-experience for both customers and employees..
  8. 8. The Customer Insights Map is nuanced and detailed, providing an intelligent layer to gain a deeper analysis. By merging qualitative and quantitative data in one place, you’re able to gain unprecedented insights and organizational buy-in for your initiatives. Presenting the Customer Insights Map. Thinking Touch Points Saying Departments Platforms Assets Metrics Path to Purchas e Opportunit ies Experience Mapping Customer Insights Map Feeling
  9. 9. ● Thinking ● Feeling ● Saying ● Touchpoints ● Dual Experience Mapping ● Departments ● Platforms ● Assets ● Opportunities ● Metrics ● Path-to-Purchase Comparison Basic Anatomy of the Customer Insights Map. Feeling Thinking Touch Points Saying Departments Platforms Assets Metrics Path to Purchase Opportunities Experience Mapping Customer Insights Map
  10. 10. Extracting Insights. The way you visualize and interpret the Customer Insights Map helps extract even deeper insights. Horizontally: When you follow the progression of your buyer through the journey you can compare touchpoints side-by-side and gain a deeper understanding of how purchase decisions unfold. Vertically: By breaking down your buyer’s journey into stages, you’re able to get a better understanding of what’s happening both internally and externally throughout each stage of the buyer’s journey.
  11. 11. Mapping your post-purchase experience empowers your brand to not only create return customers, but also make customers into brand advocates. Post purchase, customers go through the stages of: ● Adoptor ● Loyalist ● Advocate ● Brand Advocate Customer Insights Mapping Post-Purchase. Feeling Thinking Touch Points Saying Departments Platforms Assets Metrics Path to Purchase Opportunities Experience Mapping Customer Insights Map
  12. 12. Improvement in Action: Pinduoduo. Pinduoduo doubled in size in only 5 quarters, reaching 443 million active buyers and 195 million Monthly Active Users to date. Taobao JD.com Pinduoduo Weipinhui Pinduoduo’s Rise to Success $1.6b X2 443m 195m Monthly Active Users Active BuyersDoubled in Size in 5 Quarters Raised through a United States IPO Usage Rate of Top-10 Chinese E-Commerce APPs
  13. 13. By integrating a social element into ecommerce, and allowing consumers to inform their needs directly to the manufacturer, Pinduoduo addressed a user need and now has the highest retention rate of all China’s e-commerce platforms with 76.9% retention. Improvement in Action: Pinduoduo. Pinduoduo Retention Rate E-Commerce APPs After 7 Days 76.9%
  14. 14. The quality of Zappos’ post- purchase service & benefits is one of the reasons the company grew so quickly. With an intelligent customer journey map, your team can be empowered to improve your customer’s experience, increase the lifetime value(LTV) to customer acquisition costs (CAC) ratio, and create a more sublime end-to-end experience. Zappos: Businesses Looking Beyond Acquisition.
  15. 15. When you think of a journey map, you naturally think they can only be about customers. I’m going to shift gears here for a second and talk specifically to an often overlooked group of people — your employees. To digitally transform, you need to be just as aware of what’s happening with your teams as you are with your customers. And not just in a simple way like this... Exceptional Digital Experience Initiatives Start Internally.
  16. 16. Exceptional Experiences Start Internally. In today’s era where digital transformation is necessary for survival, you need employees who can look at things pragmatically, analytically, and empathetically. Monitoring these employee’s experiences on the Customer Insights Map is critical. PainsAssets EMPLOYEE MotivationsAs sets SolutionsAssets MeasurmentA ssets
  17. 17. Businesses with a strong learning culture had as much as 50% higher engagement and retention rates than organizations that don’t value continual professional development. Skilling up your employees in the areas that will be critical over the next decade will help spur growth and transformation initiatives. Professional Development Builds Engaged Teams. Platform Management HighLow Social Skills Problem-solving skills Digital Transformation System Skills Digital Security & Governance Resource Management Skills Process Skills Content Skills Experience Management Product Service Integration Digital Trade Machine & Cloud Learning Data Solutions Architecture Technical Skills Information Technology Services Organizational Development Collaboration Skills
  18. 18. Organizational Intelligence Digital transformation is the foundation and catalyst for employee experience, customer experience and other transformative efforts. Skewing the prioritization of other initiatives away from digital transformation can cause you to embark on an initiative without the right people, processes or platforms available. Digital Transformation Fuels Other Initiatives. Better Experiences Agile Development Initiative Data Architecture Initiative
  19. 19. Improving any experience requires feedback to know where things are going wrong, but building those feedback loops takes work — so much so that many organizations avoid it. This point is especially true when it comes to the employee’s experience. Innovative companies map internal data to better understand what their employees need and find areas of opportunity for growth. Quantifying the Employee Experience. CUSTOMEREMPLOYEES
  20. 20. Looking at how the C-Suite works together can help uncover ways where departments can drop those silo walls and start collaborating more effectively. This collaboration is critical to developing a sublime end-to-end customer and employee experience. Analyzing Internal Experiences. Review Assets Create/ Revise Assets Implement Changes Cross Check Findings Extrapolate Insights Visualize Data Structure Data Collection Model Data Knowledge Dissemin- ation
  21. 21. Analyzing Internal Experiences to Improve LTV:CAC. Looking specifically at the transition between the path- to-purchase and path-to- loyalty, you’re able to see where experiences drop off both internally and externally. These drop offs can signal opportunities to lower attrition and improve LTV:CAC ratios. Path to Purchase Path to Loyalty
  22. 22. One of the first steps in customer journey mapping is to run a gap analysis. A gap analysis assesses whether you have the right systems and software in place to gather needed data, whether your people are primed to receive the results, and whether an asset like the Customer Insights Map will get adopted and democratized across the organization. Improving Experiences With a Gap Analysis. WHERE ARE WE NOW? WHERE DO WE WANT TO BE? HOW DO WE GET THERE?
  23. 23. Analytics like this from Google 360 can tell you about how the customer moves through the funnel, but it’s not going to help you understand the “why” of their behavior. Knowing the “why” is what will make your brand stick in the minds of consumers and increase the lifetime value of that buyer. Increasing Stickiness with Deeper Analytics. Business Related Services Channel Position on the Path to Purchase
  24. 24. Analysis must go well beyond Google data, and take into account behavioral psychology and macroeconomic trend analysis. This is the reason why visionaries like Steve Jobs dug into the true motivations behind consumer’s behaviors; instead of pumping money into advertising, or even into more traditional research studies. Increasing Stickiness with Deeper Analytics. It isn’t the consumer’s job to know what they want. “ -Steve Jobs
  25. 25. When you analyze the path-to-purchase, you’re looking more closely at the series of channels a buyer goes through when engaging with your brand. The sequence of those channels is critical when it comes to helping you better understand how a person progresses in their relationship with your brand. P2P Analytics Guiding Digital Transformation. Customer Lifetime Value Repeat Purchase Rate (RPR) Repeat Purchase Rate (RPR) Revenue Velocity Customer Lifetime Value Active Engagement Rate Path-to-Purchase Path 1 Path 2 Active Engagement Rate Revenue VelocityPath 1 Path 2 % Traveled Path % Traveled Path Average Duration Average Duration Average Revenue Average Revenue
  26. 26. Back in 2012, Target dove head first into path-to-purchase analytics and pattern recognition to find an approach that would hone in on the purchase behavior of new parents. Target’s P2P Analytics In Action. Compressed Data PREDICTIVEOUTPUT Encode Decode
  27. 27. Target discovered 25 common items that were typically purchased a few months prior to creating a baby registry, and was able to retarget parenting ads to customers who bought those common items. Early retargeting was key to creating repeat customers. P2P Analytics In Action.
  28. 28. Plenty of thought leaders, such as IBM, ClickFox, and others in this space continue to work hard at mastering the art of data and analytics to transform customer experience. Though these platforms are powerful, they can only be as powerful as the people running them. Strong Approaches with Stronger Foundations. 750 500 0
  29. 29. When someone as prolific and influential as Mary Meeker exposes the rising cost of CAC and the highly competitive nature of the market today, it’s clear there’s a need to make adjustments. Rather than focusing on lowering CAC alone, leading organizations are focused more on improving the LTV:CAC ratio. P2P Analytics Guiding Digital Transformation.
  30. 30. Bringing AI Into Path-to-Purchase Analytics. Parsing single touchpoint analytics into data nodes isn’t difficult. The real power of path-to-purchase analytics, though, comes when you delve into the decision science behind the journey analytics and take the requisite steps to understand the customer’s journey at a macro- and micro-level by asking the right business questions.Humanization Process Data Data Algorithms
  31. 31. Path-to-Purchase Analytics With AI. “It’s not the algorithms or the technology which moves the needle for organizations — it’s the agile approach and frameworks of which the technology is a component in bringing real value and meaningful results.” - Cassidy Hilton, RocketSource VP of Data Science
  32. 32. Life-Time Value Over Customer Acquisition Cost. Sometimes, the channels which draw the highest conversions yield the lowest LTV. Uber Eats learned that lesson by adopting machine learning and AI to better understand the buyer’s path-to-purchase and path- to-loyalty. In taking this uncommon approach, Uber Eats quickly surpassed the competition and is on track to deliver $4 billion more worth of food in 2019 than 2018. Machine Based Learning Approach The Result Uber Eats Grub Hub Industry Average
  33. 33. SENTIMENT BY AIRLINE AIRLINES’ TOP REASONS FOR NEGATIVE SENTIMENT MOST COMMON REASONS FOR NEGATIVE SENTIMENT MOST RETWEETED NEGATIVE SENTIMENT SENTIMENT OVER TIME SENTIMENT BREAKDOWN MOST COMMON WORDS FROM NEGATIV TWEETS Analysis of Traveler’s Tweets From a Week in Feb 2015 Simplifying the Complex. When the crosshairs of AI and machine learning come into focus, the results bring massive amounts of value. It’s through this convergence that you can simplify data even further. This simplicity lets you leverage insights and tell a story to everyone within the organization, effectively dropping silo walls and generating ideas for growth.
  34. 34. Customer Insights Map Drops Silo Walls. Meeting IT goals and objectives starts with organizational alignment. A Customer Insights Map, which spreads across the organization, can help teams speak the same language, breaking down technological silo walls, which are one of the top barriers to transformation. Top Challenges to Meeting Digital Tranformation Goals Organizational Alignment Governance Skills Scope & Architechture Competency Partnerships Other 2018 2019 9% 59% say that technological silos are the leading barrier to transformation 33% 29% 17% 20% 20% 20% 12% 11% 7% 5% 1% 1% 13% 9%
  35. 35. Organizational Alignment Via a Digital Twin. Using a customer journey map can serve as a digital twin, fueling your core strategy. By taking the insights from a digital twin, analyzing them, running predictive models, and optimizing opportunities, you’re able to better align your organization’s “why” closer with your customer’s and employee’s emotional and logical triggers. No Man’s Land Excellent Brand Euphoria
  36. 36. A Digital Twin Can Fuel Growth. WeChat launched in 2011 and by 2018 had over 1 billion Monthly Active Users (MAU). Their growth is expected to continue to grow to over 90% penetration in China by 2021. Insights available via a digital twin can help uncover growth opportunities along the customer’s journey. Number of Monthly Active WeChat Users? Top Ranked Items Sold On WeChat
  37. 37. Developing a Sublime Customer Experience. Architecting a sublime customer experience isn’t a one-off approach. It must be agile enough to evolve alongside the customer’s journey. By using microservices and event- driven architecture, you can set up your platforms to ebb and flow alongside market expectations and demands. Data Visualization Data Visualization ETLData Sources
  38. 38. Evolution in a Complex Space. By leveraging a business transformation framework with an intrinsic human touch (StoryVesting), aligning people, processes and platforms, and deploying Hoshin methodologies we can engage in more insightful customer journey mapping exercises known as Customer Insights Mapping.
  39. 39. Insulate your business from disruption. Learn more at RocketSource.co/Blog/Customer-Journey-Mapping

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