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The Economic Impact of Customer Journey Mapping

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The Economic Impact of Mapping Experiences

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The Economic Impact of Customer Journey Mapping

  1. 1. Economic Impact of Customer Journey Mapping Punit Sahni
  2. 2. 2 What does it affect in my industry? 3 In practice? 1 What is customer journey mapping and why it matters? 4 Bottom-line
  3. 3. the challenge of competing and differentiation in a digital world DIGITAL’S IMPACT GOES WAY BEYOND MARKETING HR and Communications leaders are exploring how digital technologies in particular affect the workplace and the ways that employees engage with each other and with the broader organization/corporation Marketing leaders are exploring how digital technologies are changing customer experiences and customer engagement (and partner and supplier engagement, too) Operational leaders are exploring how digital technologies can help the organization coordinate internal processes and ‘things’ to create ‘digital operations’ capabilities Strategists are exploring the realm of Uber, Airbnb, Upwork, Zopa, open innovation networks, and so on, looking at digitally-powered strategies for new products and changes to business models 3 Four complimentary domains of digital impact Employee engagement External experiences Operations Products, Platforms. Networks Digital Impact
  4. 4. both outside-in and inside-out approaches are required to address the challenge CUSTOMER JOURNEY DESIGN IS AN APPROACH WHICH GIVES BOTH PERSPECTIVES Customer Journey Design - A new approach Outside-in perspective • Design customer journeys • Define moments of truth(MoTs), customer touchpoints and pain points • Define target KPIs • Emphasize customers’ emotions and expectations • Evaluate actual customer journeys Inside-out perspective • Capture business requirements • Design the business processes • Identify business scenarios and their risks • Model process data flows • Test process scenarios 4 Outside-in perspective Inside-out perspective Well designed touchpoints match both perspectives and lead to customer centricity, loyalty and advocacy
  5. 5. 2 What does it affect in my industry? 3 In practice? 1 What is customer journey mapping and why it matters? 4 Bottom-line
  6. 6. the value of customer journey mapping in retail RETAILERS ARE CONSTANTLY ADAPTING PROCESSES TO CUSTOMER’S JOURNEY For retailers, customer journey mapping is vital to • make sense of customer behavior trends • prioritize changes to operations which ensure that customer experiences are both seamless across channels • make the most of opportunities to compete more effectively in a world of high customer expectations about pricing, assortment availability, fulfilment, and responsiveness Shoppers expect clear and prompt communication about availability and delivery of orders, so fulfilment operations had better be integrated across channels 6
  7. 7. the value of customer journey mapping in banking BANKS ARE ADAPTING TO PROVIDE SEAMLESS TRANSACTIONAL EXPERIENCE ACROSS CHANNELS For banks, customer journey mapping is vital to make sense of how customers interact with them across channels – and prioritize changes to operations which ensure that customer experiences are both seamless across channels, and which help them fend off challenges from new ‘digital’ banks. The challenge for many established banks is that they have a heritage of approaching integration from a primarily technical perspective – concentrating on reconciling transaction and account information across channels, for example, rather than really working to integrate and co-ordinate business activities across channels. 7
  8. 8. the value of customer journey mapping for communication service providers CSPs ARE INNOVATING IN SALES, MARKETING AND SERVICE CHANNELS Even though the communications and media sector is known, generally speaking, for delivering sophisticated loyalty and retention programs and work hard to make prices competitive, established CSPs Average Revenue Per User (ARPU) is tough to maintain – and customer churn is also hard to control. Adding new services (streaming movie services, mobile TV content, in-car WiFi, and so on) is popular, but it increases complexity: not only are customers interacting with CSPs through multiple channels at multiple customer journey stages; they’re experiencing CSP products and services in multiple ways and combinations, too. 8
  9. 9. 2 What does it affect in my industry? 3 In practice? 1 What is customer journey mapping and why it matters? 4 Bottom-line
  10. 10. digitizing the customer experience TRANSFORMING THE CUSTOMER EXPERIENCE REQUIRES A LEVEL OF SPEED AND PRECISION Using rapid process digitization, teams redesign one customer journey at a time, then build capabilities to scale quickly, with a goal of releasing a basic version in under 20 weeks. To meet its customer goal of extending digital engagement, for instance, Starbucks recently launched a new mobile ordering service. To get there, Starbucks had to create a new set of processes that integrated the company’s mobile loyalty program and point-of-sale applications. It also had to reengineer the flow of line operations. Cross-disciplinary teams, comprising operations, IT, and business managers, hunkered down together and mapped out needed processes, and even built a fully functional mock store. 10
  11. 11. key enablers for digitizing the customer journey THE NEW JOURNEY MANAGEMENT ORGANIZATION Technology smarts are necessary but not sufficient for designing competitive, continuously improving journeys; companies also need new organizational structures and types of management. Guided by the firm’s business priorities (for example, growing market share, increasing revenue, and improving customer satisfaction), Journey Product Manager explores ways to expand and optimize the journeys they’re responsible for, increase their stickiness, engage new partners, fend off competitors, and cut costs, particularly through digitizing manual processes. 11
  12. 12. key enablers for digitizing the customer journey SIMPLE TOOLS HAVE ADVANTAGES, BUT AREN’T ENOUGH BY THEMSELVES Companies building the most effective journeys master four interconnected capabilities: • automation, • proactive personalization, • contextual interaction, and • journey innovation Underpinning the rise of competitive journeys is the emergence of new programming, data-access, and user interface technologies that enable unprecedented tracking of customer behavior and personalized interaction. 12
  13. 13. 2 What does it affect in my industry? 3 In practice? 1 What is customer journey mapping and why it matters? 4 Bottom-line
  14. 14. the business benefits of customer journey management ORGANIZATIONS THAT ARE ABLE TO LEVERAGE CUSTOMER JOURNEY MAPPING SEE NUMEROUS BUSINESS BENEFITS Boost revenues by 10 to 15% • Analysis of full customer journeys and predictive learning help identify opportunities for cross sales, onboarding optimization, and intelligent marketing Lower operational costs by 10% to 20% • Optimized customer experiences reduce costs by anticipating customer needs, reducing customer complaints, and streamlining journeys. Organizations can also steer customers to lower-cost channels, while effective journey analysis quickly identifies opportunities for improvement Dynamically improve customer experience • An experience which is personalized and relevant will foster loyal customers, lowering churn risk and increasing customer satisfaction. According to Forrester’s report, “Adopt the Right Governance Model for Your Journey Mapping Efforts”, Pitney Bowes first mapped the end-to-end customer journey within a single business unit. After finding and fixing customer pain points there, it trumpeted the resulting 68% improvement in NPS 14 1 “A Step-by-Step Plan to Improve CMO-COO Collaboration”, HBR, Jan 2015 2Ibid. 3“Adopt The Right Governance Model For Your Journey Mapping Efforts” by Joana van den Brink-Quintanilha, Forrester Research,Inc., May 5, 2015
  15. 15. the time is now PROVIDE CUSTOMERS WITH A DIFFERENTIATED CUSTOMER EXPERIENCE, WHICH IS PERSONALIZED, RELEVANT AND PROVIDED IN REAL TIME Customer journey mapping has become a strategic imperative for companies that are serious about improving customer experience. With a well-implemented customer journey mapping system in place, organizations are well equipped to provide customers with a differentiated customer experience . That means service which is personalized, relevant and provided in real time. The key to a successful customer experience program is empowerment. Empowering… – Customers, by giving them the ability to jump across channels and still obtain a seamless experience – Employees, by guiding them with relevant data and the right tools to ensure success – Organizations, with the ability to put the customer at the core of every business decision: leading the “customer revolution” The time to bring customers into the heart of the organization is now. Make them feel understood, appreciated, and heard by optimizing their journeys and experiences. 15
  16. 16. recommended readings 16 RESEARCH AND VIEWPOINTS BOOKS
  17. 17. thank you Punit Sahni www.linkedin.com/in/punitsahni 17

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