2011 global-ce-management-survey

Global Customer Experience
Management Survey 2011
Beyond Philosophy
Steven Walden, Senior Head of Research
Colin Shaw, Founder & CEO

www.beyondphilosophy.com

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Beyond Philosophy © All rights reserved. 2001-2011


2

The Beyond Philosophy Perspective

Customer Experience
is all we do!

Offices in London,
Atlanta with partners in
Europe & Asia


Thought leadership is
our differentiator

Links with academia


New fourth book
Is now available

Focus on the emotional side
of Customer Experience
3

We are Proud to Have Helped Some Great Organizations



4

Themes
1

Methodology

2

How can we model the state of the market in Customer
Experience globally?

3

How are global resources allocated to Customer
Experience?

4

The risks, challenges and drivers to Customer
Experience programmes

5

Best Practice: what you need to do!



5

Questions
1.

Learn about our 7-stage Customer Experience Maturity
model. Also, gain insight into how customer experience is
understood or misunderstood, and learn about the
implications and risks as it continues to evolve.
2. Where is customer experience management most needed?
What industry? What country? What companies?
3. Which industries spend the most on customer experience?
4. Which regions spend the most on customer experience?
5. What companies have seen the biggest customer
experience growth, by industry?
6. What industries will see the greatest growth in customer
experience over the next several years?
7. What are the drivers and challenges the customer
experience industry faces as it further develops?
8. What is the valuable element of a company’s customer
experience program? How does it differ by industry or
region?
9. How will social media affect the way companies approach
customer experience?
10. What will be the next great customer experience
advancement?: Best Practice and Innovations



How can we model the
state of growth in
Customer Experience
Globally?

How are global resources
allocated to Customer
Experience?

The risks, challenges and
drivers to Customer

Best Practice: what you
need to do!

6

Section 1
1

Methodology



7

Quantitative Analysis
•
•
•
•

8,000 Customer Experience Executives
Over 2,106 companies
Covering 239 countries and regions
Sourced from social media, Google, SEC filings, LinkedIn,
Beyond Philosophy database of 20,000 contacts; company
websites, news reports, conference speaking, blog articles



8

A High Bar to Minimize the Inclusion of Weakly
Active Firms or Those Not Really Doing CE
 We selected CE ‘active’ companies e.g., those with a CE presence on
an in-country Google site ‘in the last year’ and/ or a presence of
executives with a LinkedIn CE title.



9

Global Study: 53 In-Depth Interviews with CE
Professionals



10

A Cross-Section of Experts and Industries
Region

%

Western Europe

27%

Experts , 19%

Banking, 19%

Oil, 2%

North America

19%

Eastern Europe/
Russia

10%

Middle East

10%

South America

6%

Africa

6%

India

6%

South-East Asia

6%

Australasia

6%

Caribbean

2%

Healthcare, 2%
Logistics, 2%

Insurance, 10%

Charity, 2%
Construction, 2%


Utilities, 2%

Telco, 21%

Car, 6%
Retail,
6%

Manufacturing,
6%

Outsourcing, 2%






CxO 47%
Lead PM 23%
CE Experts 30%

11

Section 2

2

How can we model the state of the market in Customer
Experience globally?



12

Modeling the State of the World for Customer Experience
 We developed the CE Maturity Index to answer this question
CE Maturity Index
Quantitatively Derived
1. Concentration of CE active companies
2. Existence of key CE players
3. Industry presence i.e., in or beyond key verticals
4. Country Google presence
5. Size of businesses interested
6. General market conditions
7. Competitive intensity
Qualitatively Derived
1. Value derived i.e., CSAT or loyalty focused
2. Awareness of the term
3. Understanding of the term
4. Strategic or tactical use
5. Origination of term


13

7 Stage Maturity Model

Source: 2,106 companies, and 53 CE
professionals

•
•
•


7 stages of maturity
Customer Experience is a global
phenomena
Mid-low countries are key to growth

14

Dynamics Behind the Index: Movements are Seen
Best Practice & Innovation
Acquisition

Relationship

Retention

Economics

Focused on acquiring
customers

Focused on relationship
building with customers

Focused on retaining customers
and preventing churn

Stages
Key metrics

Mid-low maturity

Mid-high maturity

High maturity

Sales

Satisfaction and Sales

Loyalty

Example
countries

Peru
Nigeria
China
India
Brazil

Turkey
UAE
South Africa
Russia

USA
UK
Singapore
Canada

Key drivers

1. Blue Ocean
2. Use to differentiate a
market entrant deregulation
3. Leapfrog a technology
4. HQ directive
5. Software vendor push
6. Government regulation
7. Internationalization – see
and be like developed
markets (social media)

1. Target high margin
segments
2. Manage a changed
expectations set
3. HQ directive
4. Technology
programmes rebranded

1. Optimise channels
2. Manage retention
programmes
3. Launch branded
programmes
4. Regulation

Internal

1. No CE dept or very
limited: marketing
owned or defined by
customer service

1. Start up CE dept. in
certain verticals

1. Established key CE players
2. Start up CE going beyond
Telco, Banking and Retail

1. Motor
2. Aviation
3. Utilities

1.
2.
3.
4.
5.

Example
Changes in
High Mature

1. B2B -Logistics
2. B2B - Manufacturing



Banking
Telecommunications
Retail
IT
Insurance

15

Acquisition

Relationship

Retention

Economics

customers



Stages
Key metrics

Mid-low maturity

Mid-high maturity

High maturity

Sales


Loyalty

Example
countries

Peru
Nigeria
China
India
Brazil

Turkey
UAE
South Africa
Russia

USA
UK
Singapore
Canada

Key drivers

1. Blue Ocean
4. HQ directive

segments
2. Manage a changed
expectations set
3. HQ directive
4. Technology
6. Internationalization –
see and be like
developed markets
(social media)

2. Manage retention
programmes
3. Launch branded
programmes
4. Regulation

Internal

limited: marketing
owned or defined by
customer service

certain verticals


Example
Changes in
High Mature

1. B2B -Logistics

1. Motor
2. Aviation
3. Utilities

1. Banking
2. Telecommunications
3. Retail



16

Acquisition

Relationship

Retention

Economics

customers



Stages
Key metrics

Mid-low maturity

Mid-high maturity

High maturity

Sales


Loyalty

Example
countries

Peru
Nigeria
China
India
Brazil

Turkey
UAE
South Africa
Russia

USA
UK
Singapore
Canada
Netherlands

Key drivers

1. Blue Ocean
4. HQ directive

segments
2. Manage a changed
expectations set
3. HQ directive
4. Technology
see and be like
developed markets
(social media)

2. Manage retention
programmes
3. Launch branded
programmes
4. Regulation
5. Spread of CE into other
non-core (big 4) verticals
(see below) – increasing
customer consciousness

Internal

limited: marketing
owned or defined by
customer service

certain verticals


1. Motor
2. Aviation
3. Utilities

1.
2.
3.
4.
5.

Example
Changes in
High Mature

1. B2B -Logistics



Banking
Telecommunications
Retail
IT
Insurance

17

Acquisition

Relationship

Retention

Economics

customers



Stages
Key metrics

Mid-low maturity

Mid-high maturity

High maturity

Sales


Loyalty

Turkey
UAE
South Africa
Russia

USA
UK
Singapore
Canada
Netherlands

segments
2. Manage a changed
expectations set
3. HQ directive
4. Technology
see and be like
developed markets
(social media)

2. Manage retention
programmes
3. Launch branded
programmes
4. Regulation
5. Spread of CE into other
non-core (big 4) verticals
(see below) – increasing
customer consciousness

certain verticals


1. Motor
2. Aviation
3. Utilities

1.
2.
3.
4.
5.

Example
countries

Peru
Nigeria
China
India
Brazil

Key drivers

1. Blue Ocean
4. HQ directive

Internal

limited: marketing
owned or defined by
customer service

Example
Changes in
High Mature

Moving

1. B2B -Logistics


Moving


Banking
Telecommunications
Retail
IT
Insurance

18

Overall Company Growth Rates – Still Increasing In
Spite of Recession Possibilities in the ‘West’

Maturity

Increase

Maintain

Decrease

Range est.

High-Maturity

65%

35%

0%

Slight 0-15%

All Other

79%

18%

2%

Moderate 0-30%

Total

73.5%

24.5%

2%

15%

Source: 53 CE professionals
Certain niche industries will
continue to grow e.g., motor and
aviation. There is also a strong
push within retail, especially with
rising expectations in the Mid
Mature countries to ‘experience’
western brands and a higher
standard required from the
burgeoning ‘upper middle class’ for
luxury e.g., UAE, India and China.
Motor is a key vertical here.



19

The Themes

3

How are global resources allocated to Customer
Experience?



20

Which Regions Allocate Most Resources on Customer
Experience?

•
•
professionals


•

The regions with the highest resource
allocation on CE are North America (USA
and Canada) and the UK
Growing interest in Brazil, China, South
Africa, Singapore and New Zealand.
A surprisingly strong impact in India and
Australia

•

21

Which Regions Allocate Most Resources on Customer
Experience?

•
professionals


•

In low active countries, often pushed as a
corporate mission or the language of
software vendors
Growing interest countries are starred –
this includes UAE, Australia/ New Zealand
due to ‘awareness’ factor


22

Which Industries Allocate Most Resources on
Customer Experience?
Sector

No. Active CE
companies

% of total
(N= 2,106)

1

Telecoms

441

Banking

414

Retail

291

14%

4

IT and
Services

174

96

5%

Airlines

67

3%

Motor

67
65
60

3%

Logistics

51

Innovation/ technology
driver for some is key

3%

Utilities

3.

3%

Software

Large scale investment
in CE noted in Airlines
(Delta and Boeing)

8%

Insurance

2.

20%

3

63 percent in 4
verticals: Telecoms,
Banking, Retail, IT and
services

21%

2

1.

2%

Source: 2,106 companies, and 53 CE professionals



23

Where is the concentration of resources? Is it just about
the Big 4 in each country?
Countries

Total
(2,106)

Big 4
vertical
%

Telecom

Banking

Retail

IT /
Services

USA

506

55%

68

87

100

22

UK

276

43%

31

26

46

17

Canada

165

61%

20

31

40

9

India

109

71%

18

11

20

28

Australia

106

56%

14

23

9

13

China

34

71%

2

11

5

6

France

34

62%

5

7

4

5

New
Zealand

29

69%

5

8

3

4

Netherlands

28

61%

6

4

2

5

Brazil

27

78%

8

4

6

3

Singapore

27

70%

4

8

3

4

1.

Regional growth
is driven by the
Big 4 verticals

2.

In mature USA
and UK there is
diversification:





Insurance
Software
Utilities
Motor

Source: 2,106 companies, and 53 CE professionals



24

What Companies Have Seen the Biggest Customer
Experience Resource Allocation, by Industry?
Top 20
IT

1. HP
2. HSBC
3. Vodafone
4. GAP
5. AMEX
6. Dell

Bank
Telecom
Retail

7. Citibank
8. Best Buy
9. Sprint Nextel
10. AT&T
11. TD Bank
12. Bank of America
13. All State Insurance
14. Wells Fargo
15. BT
16. BSkyB
17. Lloyds Bank
18. Telstra
19. Verizon
20. T-Mobile

These companies are not
necessarily the best, they
claim most activity in CE

Criteria: location, spread
and number of country
Executives are by
locations, number of CEdisclosure- the identified
executives give direction of focus and are for crossexecutives comparison purposes
Source: 2,106 companies, and CE experts



25

What do they do? HP and HSBC
HP: “TCE is the HP Enterprise Business
focus on our customer’s experience at every
contact with us, our products and
services. We work to have the most satisfied
and loyal customers in the industry and we
would like to share some of the ways we do
that and hear your thoughts and ideas.”

HSBC: “Implemented a multi-faceted CEM
solution, including customer listening posts
in HSBC net, event driven surveys within the
banking platform and opportunities for future
enhancements”

“A simplified ownership experience”

Customer Experience intelligence from an
annual survey of 72,000 global business
customers

“Make products work better together”
“Bring the customer into the heart of our
decision-making”

Development of targeted strategies
20% rise in NPS

“ Looking for competitive pricing and low
cost of ownership”



26

CE Professionals Most Admired Companies
(Does Not Mean Most Resources Allocated)
Rank
1

Apple

2

Amazon.com

3

Zappos

4

Virgin Atlantic

8

Vodafone

9

Nordstrom

10

First Direct

Some e-retail
success, being
able to give a
human touch to an
impersonal
channel

Tesco

7

•

Disney

6

Most admired the
‘usual suspects’
i.e., Apple and
Amazon

Starbucks

5

•

Company
E-retail strong
E-retailers

•




This does not
translate to having
most ‘resources’
thrown at CE

27

The Themes

4

The risks, challenges and drivers to Customer



28

Risk 1: Limitations in its Adoption: rule of 1/3rds

Example
“Most work in the USA today is in the top 100
banks (in the US there are 4,500 banks). One
third are trying to do something so CE is a
core strategy e.g., TD Bank. Umpqua,
Huntingdon; one third are dabbling in the
middle - CE measurement.

Also an
Opportunity!

Now with the change in financial regulation
and margin pressure, momentum has been
built.” (Banking, USA, Expert)



29

Risk 2: Use of the Term to Rebadge Current Operations

“Lipstick on a pig”

“There is major confusion
between customer service (i.e.,
bounded by customer service
departments) so CE= CS.
(Expert, UK)


“Australia not strong in CE
development, in Australia,
culturally they are between the
USA and the UK so they are
always looking to do the same
things but that does not mean
they do it; they get the title but
still do standard marketing
things.” (Australia, Expert)

“The other one is confusion with
user experience so things about
web, user interface, design. Techies
think user experience, business
professionals think customer service
- here it becomes, survey tools,
workforce automation, all stuff
related to the contact center use (as
they worry about CSAT).” (Expert,
UK)


30

Risk 3: Misappropriation of the Term for Vendor Sales
“There is a lot of CRM being
rebranded to CEM. Lots of
vendors are doing this and lots of
buyers are thinking it. (Expert,
UK)

Company

Claim

Fact

Bhutan
Telecom

“Enable Bhutan to have an end-to-end
Customer Experience Management
approach”

Customer Contact Center
Solution with help-desk
support and management

Saudi
Telecom

“Provide a great level of satisfaction
given their vast experience in managing
Customer Experience across multiple
geographies”

Contact Center
Management



31

Risk 4: Failure to Take Account of the Customer’s
Emotional Viewpoint, e.g., in ROI
Measurement

Measurement

%

NPS
CSAT
Don’t measure
General qualitative
Cannot measure
Journey maps
Sentiment analysis

Measurement
Quantitative

Qualitative
Can’t do or don’t do

Verbatims

15%

Focus groups

15%

Emotion curves

15%

TRIM index

11%

Crisis moments

9%

%
6%
4%
2%
2%
2%

Customer
immersion

8%

%
32%
43%

2%

Call recovery
scripts

8%

2%

 Over 50% of an
experience is about
emotion.
 Emotions drive
behaviour.
 Customer
Experience is about
using Emotions to
differentiate.
If you are not thinking
about Emotions you
are not doing your job
and not standing out
from your competitors

While 88 percent of
interviewees accepted the
importance of emotion to
customer experience, few
knew what to do about it!

25%




32

Risk 5: Length of Time Required to Execute
“The change occurred over a 6-7
year time period. Driven by the
Chairman” (Motor, UK, CxO)

“Sprint is currently in a 3-4 year
turnaround period. It takes 5 years
to go from awful to ok then another
5 years from good to great – the
problem is companies are usually hit
by a recession in that time and
scrap it, short-termism does them
in.” (Expert, UK)


Are you fit for purpose over the
long run or just adding more
functionality?


33

Challenge: Get the Definition Right!
Definition

%

Touchpoint

60%

Customer research

28%

Emotional

18%

Company mindset

18%

Company process

10%

Brand

8%

Loyalty

8%

Relationship

6%

Value-add

4%

Customer service

2%

“It is quite a defensive definition.”
(Expert, UK)



Where is Experience in
terms of being memorable
and emotional, something
you would want to pay
money for?

Source: 53 CE Professionals



34

This Means Get Enlightened
First Generation

Second Generation

Telecoms

E-Tail

Innovation

Banking

Healthcare

Regulation

Retail

Utilities

Regulation

Insurance

Logistics

Economic

IT and Services

Manufacturing

Economic

Hotel and
Hospitality

Government

Regulation

Pharma

Economic

Construction

Economic

Charity

Economic

Software
Consumer Goods
Motor
Aviation

Seeking
Enlightenment

New to
Enlightenment
(lower base, higher
growth, newly
innovated)

(at least some)
Source: 2,106 companies and 53 CE professionals


35

Challenge: Get The Internal Mindset Right
Challenges

%

Operational priorities override (inc. acquisition
focus, cost cutting agenda, legacy sales
metrics)

16%

Culture (mindset of organization)

14%

Lack of understanding of CE

12%

Lack of leadership

11%

Uncertainty on how to implement

10%

Need to demonstrate ROI

9%

Customers not used to it

5%

Recruitment difficulties

4%

Lack of industry adoption

4%

Difficulties of embedding in value chain

2%

Regulations

Internal Mindset problems–
is it a priority or not?

9%

Complexity of management challenge (inc. IT,
multi-channel)



2%



36

Challenge: Get People Engaged with CE
Origin of CE VP and Director %

Origin of CE VP and Director %

With CE Background

22%

Strategy

1%

Without CE Background

78%

Web

1%

Operations/ process

23%

Purchasing

1%

Customer service

22%

IT

1%

Sales

7%

HR

1%

Brand

4%

Retention

4%

Marketing

4%

Research

4%

Finance

4%

1.

78% of CE directors and VPs (N=136)
have no background in CEM

2.

45% of leaders have a background in
operations or customer service

Source: LinkedIn sample of 136



37

Challenge: Ensure You Are Investing in the Right Projects
Projects undertaken
Now

Total

IT/Software

19%

Training

13%

Customer research

8%

Measurement

8%

Process improvement
(multi-channel)

7%

Culture

6%

Brand

6%

Governance

5%

Touchpoint mapping

5%

Strategic review

4%

HR and recruitment

3%

Marketing campaigns

3%

Social media

2%

Modelling and analytics

Just a rebrand?
Helping software sales?

10%

Customer service




3%

Source: 53 CE Professionals



38

Challenge: Respond to the Drivers
Driver

%

Differentiate under commoditization pressure

24%

Improve loyalty, retention, prevent churn

19%

Respond to customer empowerment

19%

Drive through a branded experience



10%

Target and create new segments

8%

Practitioners push

5%

Regulation

4%

Control costs by being more efficient

4%

Customer management (multi-channels)

2%

Vision of one person

2%

Silver bullet

1%

Ethical

The rise of Customer
Empowerment means you
have to do CE

1%




39

Customer Empowerment
10 customer empowerment drivers:
1.

Social media

2.

The development of the ‘fast society’ – ultra competitive markets (added value CE is a
barrier to entry as well as a differentiator)

3.

The burgeoning middle classes in countries such as India have raised service expectations.

4.

The development of a high-value consumer segment in countries such as UAE and China
has raised demand for luxury experiences

5.

Customer demand for international brands has encouraged the expansion of western firms
into new markets and the development of the ‘branded experience.’

6.

Deregulation has opened up demand from third, fourth or fifth market players to differentiate
through CE e.g., in Telecommunications, UK Banking

7.

With increased travel, customers are becoming more demanding

8.

Government regulation

9.

Cultural sensitivity – service to experience (India, Middle East); hospitality focused centers

10.

Web aggregator sites (e.g., trip advisor et al. sharing views continuously)



40

Internationalization of Leadership and Customers
Through Contact



41

What Will be the Next Great Customer Experience Advancement?

WHAT YOU NEED TO DO



42

Aim to Become Customer Conscious
Customer Experience is an
“Organizationally
Conscious” effort to
orchestrate every action that
impacts the customer. This
goes beyond customer
service, it looks at making
memorable and long-lasting
experiences for customers
through all activity.
(Banking, Nigeria, CxO)

1.

2.

Some industries
will remain
strong in
awareness,
others will be
forced to
awareness (e.g.,
via regulation,
customer
empowerment)

Conscious

Unconscious


The growth in CE
programs
depends on the
level to which an
organization has
developed a
‘conscious’
concern for the
customer.


43

Undertake an Organizational Roadmap Approach
Monitor and review

Embedding the CE culture

Process improvement

Training, what it means, leadership engagement

IT infrastructure, call center infrastructure

Engage the Organisation
Training, governance, CE Council or organisational support for
design

Redesign experiences
Process design, pilot new designs (do something!)

Setting the strategy
Where is the organisation (audit), emotion research, strategy roadmap & ROI,

Understanding CE
What is CE! leadership buy-in, get the emotional difference



44
44

Monitor and review


Process improvement



design



Without an
alignment to
emotional
engagement
your are not
doing CE

Understanding CE



45
45

Monitor and review


Process improvement



design



Without a
supporting
leadership and
culture CE is
nontransformational

Understanding CE



46
46

Monitor and review


Process improvement



design



Without a
demonstration of
return, CE as a
strategy will be
short-term

Understanding CE



47
47

Ensure You Become Fit for Purpose – Maintain
Long-Term CE
From retain to redesign
around customers

Emotions
Inside

More Control

•
•
•
•

Mindset stays the same
Become less customer focused
See the number
You can’t change the weight of a
pig by continually weighing it


Better control

•
•
•
•

Changed mindset
More customer focused
See the change
CE as an Organising principle for
maintaining CE in the long-term


48

7 Strategic Questions

1. What is the Customer Experience
you are trying to deliver?
2. What are the emotions you are trying
to evoke?
3. What is your subconscious
experience telling Customers?
4. Is your Customer Experience
deliberate?
5. What do your Customers really want?
6. What provides you with the most
value?
7. How Customer centric is your
organisation?



49

Thank You
We invite you to continue the conversation.
Steven Walden
Senior Head of Research and Consulting
Beyond Philosophy

US Office: +1 770 206 5280
UK Office: +44 (0) 207 917 1717

Email: steven.walden@beyondphilosophy.com
@Steven_Walden
http://www.linkedin.com/pub/steven-walden/2/ba5/1ba
Colin Shaw
CEO and Founder
Beyond Philosophy
Email: colin.shaw@beyondphilosophy.com

@ColinShaw_CX
http://www.linkedin.com/in/colinrjshaw



50

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