Customer experience is a catalyst in many digital transformation projects. It is why many businesses invest in new technologies and processes to more effectively engage customers, constituents, or employees. The goal of putting digital tools to work in a transformative way is to ensure that data and insights connect people with information and processes that ultimately lead to a better experience for customers. Yet, it demands a modern approach that considers all of the platforms, processes, and data across the customer journey. The goal for many organizations is dynamically maintaining a single source of truth about each customer to drive personalized experiences based on individual preferences and behaviors.
However, businesses today have primarily invested in systems of record. While these systems are critical for managing internal operational processes, they are typically not effective for today's pace of business change. Insight-driven experiences require customer intelligence platforms that can finally create a customer 360. The deeper data and improved algorithms now available let users factor in individual affinity, segment, and a myriad of growing data sources. The result is greater relevance and effectiveness to deliver a differentiated experience that in today’s competitive landscape is not a luxury, but a necessity for survival.
In this session we will address:
3 things to learn:
•Leaders and Laggards of digital transformation
•How to create data-driven customer insights
•The importance of machine learning to uncover hidden insights
7. Digital Transformation Critical to Delivering Frictionless
Experiences
• Meeting demands of empowered customers
• Stop asking customers to adapt to company
processes or technology constraints
• New competitive threats demand speed to market
• Analytics and data critical component to delivering
contextually-driven engagement
8. A Four-Pronged Approach
8
Digital experience is a
key component to
transformation initiatives
It’s the new front door
for all businesses
9. Digital transformation
Digital transformation is about the application and exploitation
of technology in all aspects of an organisation’s activity.
9
Digital transformation
ˈdɪdʒɪt(ə)l/ ˌtransfəˈmeɪʃ(ə)n
adjective noun
… Success isn't only about the technology.
It’s about rethinking strategy, culture, talent,
operating models and processes.
10. Digital Transformation is the investment in new digital technologies and processes to not only more
effectively engage customers, partners or employees, but also cut costs.
17%
20%
33%
29%
1%
We currently have no digital transformation strategy
We are considering it, but have no formal plans
We are in the planning stage - researching to form our digital transformation
strategy
We have a formal strategy and are actively digitizing our business processes
and technologies
Don't Know
Which of the following best describes your organization’s status with regards to a Digital Transformation effort?
Nearly 1/3 have a formal digital transformation
strategy
Source: 451 Research, VoCUL Representative 2H, 2016,
11. 27% 39% Mobile
Top Drivers
Location-Based Technologies
34% 44% Innovation
Financial Services44%
60%
29%
41%
39%
No
Strategy
Formal
Strategy
We have a formal strategy
and are actively digitizing
our business processes
and technologies
We currently have no
digital transformation
strategy
Healthcare
63% Over 500 EmployeesUnder 500 Employees
Top Industry
Company Size
Managing Data GrowthManaging Risk of Social Networks
Top Pain Point
Top Drivers
Innovation
Top
Transformational
Technology
Digital Transformation Maturation
Source: 451 Research 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey,
conducted during August 2016. n= >500 IT and line-of-business decision-makers
12. 43%
23%
33%
21%
31%
28%
34%
39%
40%
42%
33%
30%
31%
33%
38%
28%
20%
35%
34%
46%
28%
29%
37%
45%
35%
34%
36%
18%
40%
35%
CONSUMER RETAIL PRODUCTS
& SERVICES
FINANCIAL SERVICES HEALTHCARE MANUFACTURING EQUIPMENT
& SERVICES
TELECOMMUNICATIONS -
CARRIER/ISP
Customer responsiveness Security Initiatives
Creating new revenue streams Enabling more mobile/remote working
Transforming business processes to improve operational efficiencies Enhancing our ability to innovate and develop new products and services
Biggest Drivers Vary By Vertical
Source: 451 Research 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey,
conducted during August 2016. n= >500 IT and line-of-business decision-makers
13. Dawn of the New Era – CDOs Are the Catalyst
13
“Organizations can digitally transform their businesses
to best attract, win, retain and support customers by
leveraging the latest applications, analytics and
infrastructure to deliver a differentiated experience that
is not a luxury, but a necessity for survival.”
14. Who Owns The Customer?
Chief Data Officer
Chief Analytics Officer
Chief Marketing Officer
Chief Customer Officer
Chief Digital Officer
Chief Technology Offer
Chief…...
15. Top of Mind for Customer Experience Professionals
16. The Customer 360 Must Identify the Known and Unknown
Perspectives of a Non-Linear Customer Journey
16
Suspect
Anonymous
Prospect
Known
Prospect
Customer
Advocate
Inactive
Suspect Prospect Customer
17. Today’s Requirements of a True 360 View of the Customer
17
Demographics
Contact Details
Products Owned
Social Posts and
Profiles
Relationships
Service Requests
Interactions
Transactions
Sentiment
Life Events
Alerts
Churn, Risk and Value
Inferred Demographics
(Occupation, etc.)
Personality
Influencers
Customer Journey Insights
Proximity and Location
Events
18. 21%
24%
20%
27%
14%
16%
29%
28%
15%
8%
21%
12%
28%
23%
27%
41%
28%
37%
35%
41%
17%
19%
9%
23%
16%
CONSUMER RETAIL PRODUCTS
AND SERVICES
MANUFACTURING EQUIPMENT
AND SERVICES
FINANCIAL SERVICES TELECOMMUNICATIONS –
CARRIER/ISP
HEALTHCARE
Integrating business apps across silos and processes
Adapting legacy business apps that are not flexible or customizable
Mobilizing business applications
Managing data growth
Eliminating data silos
Managing Data Growth Pain Across All Businesses
Source: 451 Research 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey,
conducted during August 2016. n= >500 IT and line-of-business decision-makers
20. Challenge 1: Achieving a Customer 360 for the New
Era
20
For Big Data For Data Quality For Intelligence
Hadoop, Spark, Graph
and Columnar Data
Stores
Data Synthesis,
Scalable Data
Stewardship
Analytics, Machine
Learning
22. Volume of data vs cost of storage
22
CHAT BOTS
WEB/SERVER LOGS
ERP, HRM, SCM, CRM
TRANSACTIONAL ERA INTERACTION ERA ENGAGEMENT ERA
MOBILE DATA
SOCIAL MEDIA RECOMMENDATION
ENGINES
E-COMMERCE
DIGITAL ASSISTANTS
SENSORS/IOT
REVIEW
SITES
23. IT vs LOB Finger Pointing and Status Quo Must
Change
23
Fragmented
Customer
Data
IT’s Status Quo
“We have a platform”
Business’ Status Quo
“Just do it”
MDM and Data Warehouses
Only structured data, designed to be
system of record
Data Lakes and Hadoop
A dumping ground for data, not connected
into business context
IT approaches try to consolidate
everything, but are designed to solve IT
problems and address ALL data domains
rather than solving real business
problems.
Customer Analytics Tools
Sophisticated analytics but poor data
management, fragmented analytic types =
disconnected insights
Marketing Data Platforms
Easy to use but don’t access enterprise
data, and no data management capabilities
Business approaches involve going
outside of IT for the sake of ‘getting it
done,’ but rush and underestimate data
management. They have the wrong data
for analysis and the wrong insights.
Data Visualization Tools
An empty tool, designed to create
dashboards
CRM
Systems of record designed for operational
sales, marketing or service use cases
24. Opportunity Lost
24
A Marketing
Data Platform
…with self-service
access to
incomplete data
sources…
...built campaign
lists...
BUT
...failed to segment
customers based
on complete data,
resulting in mis-
targeted campaigns
and low response.
…with incomplete
customer data from
the data
warehouse…
…identified
propensity to
churn…
BUT
failed to unearth
leading indicators,
resulting in untimely
predictions that
were too late to act
on.
Customer
Analytic Tools
…with un-
synthesized
customer data…
…identified a cross-
sell opportunity…
BUT
failed to do proper
customer matching,
resulting in
duplicate offers and
a lower response
rate.
Data LakeA MDM Hub
…with only
structured master
customer data…
…prioritized service
queues…
BUT
failed to factor in all
customer data and
relationships,
resulting in providing
poor service levels to
valuable clients.
Visualization
…with beautiful
charts and graphs…
…identified what-if
scenarios…
BUT
…failed to provide
prescriptive insight
and was only as
good as the data
driving it.
CRM
…with customer
profile data…
…identified
opportunities,
campaigns and
cases…
BUT
…failed to provide
the next best action
based on the full
360.
25. The Shift to Intelligent Applications
25
BusinessImpact
Intelligent
26. Contextual Experiences Must Take a Hybrid Approach
Deterministic CognitiveHybrid
• Limited Human
Intervention
• Algorithmic
• 1:1
• Pre-
determined
• Rules-Based
• Segment
Capture real-time content and data, and then dynamically interact with relevant
content based on explicit signals such as search and implicit signals such as first
party customer data
29. Average KPIs
Personalization
• Significant increase
in conversion rate
and AOV
• 2x lift in
incremental
revenue return on
promotional spend
vs. BAU Increased
lifetime spend by
15%
Machine Learning Strategies Scale Individualized Offers Results
• Based on behavior the service
predicts and dynamically adjusts email
based on likelihood to open messages
Delivery or
Send time
optimization
• Dynamically choose best subject lines
Subject line
optimization
• Rapidly find content that will drive
conversion for each individual
subscriber
Dynamic
Content
Optimization
• Rapidly create offer that will drive
conversion for each individual
subscriber
Dynamic Offer
Optimization