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Changing CX Channels and Millennial Influence

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ACDECC Customer Experience Summit 2016
Changing CX Channels and Millennial Influence
Mark Hillary - Presentation in Bogotá, Colombia

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Changing CX Channels and Millennial Influence

  1. 1. Changing Channels & Millennial Consumers Mark Hillary – Carnaby - @markhillary ACDECC Customer Experience Summit 2016 Bogotá, Colombia : April 20, 2016
  2. 2. • Analyst / writer / journalist / ghostwriter • 15 books on tech, work, CX, and globalisation • London 2012 Olympic blogger • First ever internal UK government blogger • Advised UN and several governments on tech policy • Visiting MBA professor Mark Hillary
  3. 3. • People born from 1980 up to the change in the millennium in 2000 • In general, university age to mid-30s • Preceded by Generation X and presently we are in the post-millennial period Thomas Hawk https://flic.kr/p/bwfmjb What is a “millennial”?
  4. 4. Pew Research Center http://j.mp/acdecc6 Why do they matter?
  5. 5. • By 2020 over half of all workers globally will be millennials1 • 41% of millennials use digital communication as their #1 choice – even above personal meetings or phone calls2 • Millennial shoppers (USA only) spend over $600bn annually in shops – predicted to rise to $1.4tn by 20203 1: PwC http://j.mp/acdecc1 2: PwC http://j.mp/acdecc1 3: Accenture http://j.mp/acdecc4 Why do they matter?
  6. 6. • Web 1994 (In common use) • Broadband 2000 • Mobile Internet 2007 • Social Networks 2008 A 21-year-old graduate joining a company today cannot remember a world without the Internet and mobile phones… A life with technology
  7. 7. • Radio 30 years • Mobile Phones 15 years • Social Media 1.5 years The time required for at least 50% of the population to have adopted a new technology… exponentially increasing! A life with technology
  8. 8. Over the next year, customer experience managers will be busy with many new technologies… •Virtual Reality • Augmented Reality • Wearables • Internet of Things • Automation / Robots • Location Awareness “Any sufficiently advanced technology is indistinguishable from magic.” Arthur C Clarke Technology as magic
  9. 9. • First, consider the customer service business as it was in 2006 – just ten years • The brand defined when it was possible to interact - and how – by publishing service hours, a phone number, and an email Kevin Dooley https://flic.kr/p/5bqaUr What do they expect?
  10. 10. • Now customers, but especially millennials, expect service: • Anytime • Using any channel • The customer defines how and when they will engage John Watson https://flic.kr/p/7972f6 What do they expect?
  11. 11. • Millennials expect engagement • Brands need to build a relationship with customers • Loyalty is no longer about a card with points Luis Fernando Rabelo https://flic.kr/p/awDZnu And new expectations!
  12. 12. • Loyalty for millennials is more closely linked to how a brand makes them FEEL • Look at how these brands engage beyond just the purchase alone: • Harley Davidson: HOG Clubs • Starbucks: App Improves Experience • L’Oreal: Makeup Genius • Nike: Nike+ App and Community Cristian Janke https://flic.kr/p/6RTPP8 Loyalty is changing
  13. 13. The “classic” customer journey looks like: • Awareness • Interest • Consideration • Purchase • Retention --- Service interactions here • Advocacy The Customer Journey
  14. 14. The millennial customer journey – INFORMATION! • Communication with the brand can take place at any stage – often conversational, not just transactional service requests • Customers read and post reviews • Customers use price comparison systems • Customers talk to family and friends for advice and use social networks to post their own views on products • Customers can move beyond advocacy to becoming fans – see Apple for example The Customer Journey
  15. 15. • Customer journey is more complex • Customer loyalty is about a relationship rather than points • Customer interactions are defined by the customer using technology they have grown up with So what conclusions can we draw about millennials from all this change? Changing Service Culture
  16. 16. 1. Millennials expect an experience with the brand, not just a purchase followed by the option to call a customer service team 2. Millennials grew up with technology so your systems need to work 3. Social sharing and interactions with apps are just as real and important as “real life” CX Not Customer Service
  17. 17. Forrester advises on three key areas for managing millennials: 1. Multi-skilled and social agents; your team needs to be on every channel 2. Proactive customer engagement; push your message to them with deals and reminders 3. Embed your service channel inside apps, games, or other services Forrester Research: http://j.mp/acdecc3 How Can I React?
  18. 18. Gartner differs in their advice: 1. Build your brand around the CX 2. Create a customer engagement hub 3. Remember that customers no longer tolerate amnesia – you need an omnichannel that works Gartner: http://j.mp/acdecc2 How Can I React?
  19. 19. Myth 1: “Millennials only shop online” • 68% expect seamless channel hopping • 82% of millennials prefer shopping in- store to online • Millennials don’t only shop online, they want a more complex online/offline blend Accenture: http://j.mp/acdecc4 Deal With The Myths
  20. 20. Myth 2: “Loyalty has gone” • 95% want brands to be proactive about deals and offers • Loyalty is not dead, it has just changed… people expect personalised offers… deals designed for one person Accenture: http://j.mp/acdecc4 Deal With The Myths
  21. 21. Myth 3: “Brands are just like people” • Most millennials are still transactional about (most) brand relationships – they ‘like’ a Facebook page because they expect deals • Brands need to say something worth talking about – being online is not enough Accenture: http://j.mp/acdecc4 Deal With The Myths
  22. 22. It’s not just Facebook and Twitter – diverting a few of your voice agents to social networks is not the answer! • Brands cannot focus on a single social network – that’s like issuing a customer service email address • You need to go where the customers are – this requires data analysis and business intelligence • Facebook was dominant, but now Pinterest, Instagram, Snapchat, Tumblr, LinkedIn, Whatsapp, blogs, review sites are all important Accenture: http://j.mp/acdecc4 Online Landscape Shifts
  23. 23. The challenge is enormous, but if you want a summary of five issues to focus on: • Society is changing – be aware! • Plan your customer journey again • Rethink loyalty • Make the omnichannel real • Build a customer experience hub My Recommendations
  24. 24. • How do you keep in touch with your friends today? • How are your kids talking to each other and sharing information? • All of society is seeing a shift in how we communicate – brands need to reflect these changes in communication methods and expectations • Think ahead – not just about social media now… where are we headed soon? Society Is Changing
  25. 25. • There is no turning back – customers have information and can publish their views • How can you interact with non-customers long before a purchase is made and long after a purchase too? • How can you build a relationship with customers and remain authentic – potentially creating fans who never even check prices before purchasing? Customer Journey
  26. 26. • Points can still work, but only when applied to an improved system like the Starbucks app combining points, payment, and a better experience • The experience will count more, therefore how can CX and customer engagement be used to build loyalty? Loyalty comes from a relationship… Rethink Loyalty
  27. 27. • The omnichannel is not just a contact centre that can answer customers on Twitter… it is not just multichannel service • Most customers want to use multiple channels and will do so – make it easy for them to hop channels • Most customers are now familiar with at least 6 ways to reach the customer service team – this problem exists right here, today! Omnichannel
  28. 28. • The reality today is that all customer-facing functions in most companies are blending – no longer a strict boundary between marketing/sales/customer service/advertising/PR • How can your business create a single hub that blends all customer-facing functions so your management has a single view of the customer… not a totally different marketing and customer service view? CX Hub
  29. 29. • Changes in the way we communicate, driven largely by millennials, are changing how customer service needs to function… • New technologies are coming faster than ever and being adopted/discarded rapidly • The key is to redefine your business so the customer is at the core of everything – look to banks and fintech for examples Summary
  30. 30. Carnaby Content – São Paulo mail@markhillary.com @markhillary markhillary.com Thank you Gracias Obrigado Get in touch!

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