Today’s marketing leadership is being tasked with creating lasting relationships and loyalty among their customer base. Yet so much of how we engage with customers and prospects is campaign driven, activating specific actions in a single moment in time. As the development of a robust and connected customer experience strategy becomes the linchpin to CMO success, the question is now more important than ever: Can loyalty and advocacy be built…and how? This presentation walks through some of the challenges and considerations CMO need to explore in order to reframe how their brands engages their customers like never before.

1. Maximize How You Individualize
Because the Journey and Outcome Matter
Use this title slide only with an image
The CMO Council APJ Roundtable Tour, October/November 2014
Nicholas Kontopoulos
Global Head of Strategic Marketing Programs,
SAP Customer Engagement Solutions

2. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

3. Get in touch with me @nicholask71
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

4. CONFIDENTIAL EXPLORE THE IMPACT
DIGITAL CUSTOMERS
ARE HAVING ON
OUR ENTERPRISES

5. OP + NT = EOP
© 2011 SAP AG. All rights reserved. Public 5

6. The Good Old Days

7. WE LIVE IN A WORLD OF
DIGITAL IMMERSION
Social Rich Content Mobility Always On

8. This is the dawn of Generation C.
Where "C" represents a connected
society based on interests and
behavior. Gen C is not an age group --
ITS A WAY OF LIFE.
- Brian Solis, author and digital analyst

9. COMPANIES ARE STRUGGLING TO BREAKTHROUGH AND
ENGAGE THEIR CUSTOMERS

10. DIGITAL DARWINISM:
When technology and society evolve
faster than the ability for companies to
adapt.
- Brian Solis, author and digital analyst

11. OP + NT = EOP

12. DUDE, IT’S NOT ALL
ABOUT THE
TECHNOLOGY…

13. THERE IS
NO SINGLE
SILVER BULLET
SOLUTION

14. 21ST CENTURY
CUSTOMERS
REQUIRE A
21st CENTURY
MANAGEMENT
RESPONSE

15. HISTORY LESSON ON
MANAGEMENT 1.0
1890:
90% of the then developed world worked
in agriculture & the average manufacturing
firm employed 4 employees.
1915:
Ford was making a ½ million cars and
US Steel was the first company in history to
urnover $1b a year.

16. 1920:
By this time most of the tools for modern
management have been created:
Pay for
Performance
Capital
Budgeting
Task
Design
Divisionalization Brand
Since then the way we manage has hardly changed.
Management
HISTORY LESSON ON
MANAGEMENT 1.0

17. 19TH CENTURY
ENGAGEMENT
Sales & Marketing Funnel
Awareness
Interest
Desire
Action
Created in 1898 by Elmo Lewis

18. Action
Interest
This is no longer
our customer’s
journey.
Awareness
Desire

19. ACTION
RETAIL
STORE
Desire
REFER
FRIENDS
AWARENESS
PRINT
DISCOVER
NEED
DIGITAL ADS
WORD OF
MOUTH
RESEARCH
RECEIVE
OFFER
WEB
SHOP
TRACK
ORDER
USE
CONTACT
CENTER
RESTART
SERVICE
Desire
EMAIL
CONTACT
CENTER
SHOP &
BUY
RECEIVE
PACKAGE
MISSING
ITEM
SOCIAL
POST
REVIEW
SETUP
PHONE
?
SUPPORT
PORTAL
CONTACT
CENTER
BILLING
ISSUE
CONTACT
CENTER
MAKE
PAYMENT
ADVOCACY
PHONE
DAMAGE
TERMINATE
SERVICE
JOIN
GROUPS
?
BRANDED
COMMUNITY
NETWORK
ISSUE
CHANGE
ADDRESS
RECEIVE
OFFER
REFER
FRIENDS
WEB
WORD OF
MOUTH
SOCIAL
TV
RETAIL
STORE
WEB
SHOP
REVIEWS
SEARCH
KW/ADS
RETAIL
STORE
WEB
SHOP
?
SUPPORT
PORTAL
CONTACT
Each customer
chooses their own adventure.
SOCIAL CENTER
SOCIAL
EMAIL
INTEREST
ACTION
USE
ADVOCACY
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 19

20. One customer.
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 20

21. Many journeys.
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 21

22. Infinite possibilities.
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 22

23. OP + NT = EOP

24. Why
does it
matter?
Customers are In Control
The Rules are Changing
The Customer Journey is Complex
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 24

25. Measurable
Business
Impact
© 2014 SAP SE or an SAP affiliate company. All rights reserved. Confidential 25

26. 59% of customers are willing to try a
new brand to get better
customer service.
Better Informed
Empowered Customers
79% of customers spend at least
50% of total shopping time
researching products online.
Digitally Connected
53% of customers abandoned an in-store
purchase due to negative
online sentiment.
Socially Networked

27. They are individuals
with specific needs.

28. 2.4 BILLION brand-related conversions happen online every day.
SOURCE – KELLER FAY GROUP
57% of the buying process is completed before a first interaction with sales.
SOURCE – CUSTOMER EXECUTIVE
BOARD
86% of customers are willing to pay more for a better customer experience
SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER
The Rules are Changing

29. OP + NT = EOP
© 2014 SAP SE or an SAP affiliate company. All rights reserved. Confidential 29

30. HOW DO YOU
ENGAGE THE
INDIVIDUAL?

31. If you keep on doing what
you’ve always done, you’ll keep on
getting what you’ve always got.
- W L Bateman

32. WE NEED TO RETHINK
OUR MARKETING & SALES
STRATEGIES.
LET’S START WITH
BINNING THE CONCEPT OF…
a go-to-market strategy
and replace it with
A GO-TO-CUSTOMER STRATEGY
© 2014 SAP SE or an SAP affiliate company. All rights reserved. Confidential 32

33. CUSTOMER
EXPERIENCE
MANAGEMENT
© 2011 SAP AG. All rights reserved. 33

34. CUSTOMER
EXPERIENCE
The customer’s perceptions and related
feelings caused by the one-off & cumulative
effect of interactions with a supplier’s
employees, systems, channels or products.
Source: Gartner

35. “Or, the aggregated
memories of every
touch a customer has with
your company”

36. CUSTOMER
EXPERIENCE
MANAGEMENT
The practice of designing and reacting to
customer interactions to meet or exceed
customer expectations to increase customer
satisfaction, loyalty and advocacy.
Source: Gartner

37. “Or delivering the consistent
customer experience
across the entire enterprise”

40. It’s time to reimagine Customer Engagement

41. But what is Customer Engagement?

42. Well from an SAP perspective we frame it thus…

44. End-to-End Business Process Execution
Harmonized Digital and Physical Experiences
Growth in Profitable Customers
Real-time Customer Insight

45. OP + NT = EOP

46. 60% of APJ marketers say putting the
customer first is key to customer centricity.
(Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)

47. CX A STRATEGIC PRIORITY
But Asia Pacific Marketers are struggling to deliver on it
26%
Use this title slide only with an image
11% 8%
Report that they are highly
satisfied with their ability
to Listen to Their
Customers.
Have implemented
systems or processes to
Understand & Meet
Customer Needs.
Have back office systems
that Deliver on Brand
Promises
(Source: The CMO Council APJ Research Study
- Maximise how you Individulise 2013)

48. WHERE
DO YOU
START?

49. YOU NEED A
STRATEGY

50. Need to follow key CX best Practices
in a structured manner
Gauge your CX maturity: how ready is your organization?
Define a CX strategy and focus on implementation:
think big, start small.
Use this title slide only with an image
Evaluate the impact of CX initiatives on business
goals: measure, measure, measure.

51. SUCCESS FACTORS:
STRATEGY, PROCESS,
TECHNOLOGY, AND
PEOPLE
Strategy
Business goals and
objectives
People
Organisational
structure, skills, and
incentives
Process
Procedures and
business rules
Deploy new technology
that supports required
process flows.
Technology
Apps and
infrastructure
Develop process flows
to achieve the selected
strategy.
Condition the
organisation to
adopt new processes.
Get target users to
successfully utilise
the applications
Don’t become one of these statistics:
§ 25% of projects failed because of
poorly defind business requirements.
§ 31% of projects failed because of
poor business process desgin.
§ 48% of projects suffered because of
technical/intergration difficulties.
§ 21% of projects failed to factor in
customisation requirements.
Customer
Source: Forrester.

52. 1st Generation
MARKETING
SALES
COMMERCE
SERVICE
CUSTOMER RECORD
Departmental /
Channel Silos
2nd Generation
SERVICE
‘Multi’-channel
CRM Suites
CUSTOMER RECORD
SALES &
MARKETING
COMMERCE
3rd Generation
CONTEXTUAL
MARKETING &
SERVICE
SALES &
COMMERCE
PHYSICAL &
DIGITAL EXPERIENCE
CUSTOMER
INTELLIGENCE
Omni-channel
Engagement Platform
Evolution from CRM to Engagement

53. Engagement requires orchestration.
INSIGHT CREATION EXPERIENCE MANAGEMENT
PROCESS & ORDER COORDINATION

54. OP + NT = EOP
© 2014 SAP SE or an SAP affiliate company. All rights reserved. Confidential 54

55. Show me the Money
Show
me
the
money!

56. CUSTOMER
EXPERIENCE LEADERS
OUT PERFORM THE
LAGGARDS
+22% - 46%
Over a recent five-year period during which the
S&P 500 was flat, a stock portfolio of customer
experience leaders grew 22%. During this time,
Forrester found that those companies who
performed poorest in the Customer Experience
Index also performed poorest in terms of stock
performance.
SOURCE: FORRESTER RESEARCH 2012

57. CUSTOMER EXPERIENCE MATTERS
Because Revenue in on the line
23% 42% 16%
of marketers surveyed in
APJ have calculated the
impact of Customer
Expereicne on their
business
say their revenue has
increaded based on
Customer Experience
optimization.
of marketers reported that
improvements in CX had
resulted in their enterprise
increacing revenue between
5% and 10%
(Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)

58. CASE STUDY

59. AT&T AND T-MOBILE SLUG IT OUT OVER
A CUSTOMER ON TWITTER

60. Looking at our results with social engagement, the ROI
is tremendous. We are getting a 94% resolution rate as
compared to our usual 11-12%. We are seeing
tremendous ROI servicing our customers on social
using these tools.
Krissy Espindola
Director, Knowledge Management & Social
Customer Support
“
”
AT A GLANCE
Objective
Take on larger rivals by providing a delightful
social media experience
Solution
SAP Cloud for Social Engagement
Benefits
Meet increasing demand for social media
interaction without scaling team. Reduced
churn. More cost-effective customer acquisition
with marketing messages based on social
buzz.

61. USING SOCIAL DATA TO
LISTEN, UNDERSTAND, AND ENGAGE
LISTEN
UNDERSTAND
ENGAGE
THE FULL SOCIAL WEB
YOUR TARGET AUDIENCE
PERSON TO PERSON
© 2011 SAP AG. All rights reserved. Public 61

62. OMNI CHANNEL
BUILDING A CONNECTED
ENGAGEMENT PLATFORM

63. YOUR
CUSTOMERS
DON’T CLOCK
OFF AT 5PM

64. TODAY’S
CUSTOMERS
WANT
INSTANT
GRATIFICATION

65. KEY TAKEAWAYS
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 65

66. Engage at the point
of awareness
Stop telling, start listening
predict & influence behavior.
Respond quickly.

67. Guide customers
through their
journey
Guide customers
through their
journey
Understand their needs & desires.
Earn advisor status.
Help them.
Understand their needs & desires.
Earn advisor status.
Help them.

68. Empower your
customers
Make their life easier
with all the information they need
– anywhere, anytime –
so they can better engage with your
company.
© 2011 SAP AG. All rights reserved. 68

69. Create loyal brand
advocates
Make every conversation count.
Create amazing experiences.
Deliver relevant & timely offers.

70. SAP Customer Engagement & Commerce
WEB MOBILE IN STORE/
BRANCH
CONTACT
CENTER
DIGITAL
GOODS
Experience Management
Commerce Marketing Service Sales
MDM for Customer Engagement & Commerce (product, customer, order)
Infrastructure, Platform, Integration
MARKETPLACE INTERNET
OF THINGS
SOCIAL SMS/
NOTIFICATNS
SEARCH
KW/ADS
DIGITAL ADS EMAIL PRINT AGENT
TOOLS

71. You’ve got to start with the
CUSTOMER EXPERIENCE and
work back toward the technology.
- Steve Jobs

72. Make it simple to
engage customers
like never before.
Customer Engagement Solutions
for Marketing, Sales, Commerce, Service, and Social.
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 72

73. OP + NT = EOP
© 2011 SAP AG. All rights reserved. Public 73

74. ?
© 2011 SAP AG. All rights reserved. Public 74

75. Old Process + New Technology =
Expensive Old Process

76. www.custedge.com

77. THANK YOU!
Feel free to connect with me at :
Nicholas.kontopoulos@sap.com
#nicholask71
http://sg.linkedin.com/in/nicholaskontopoulos
© 2013 SAP AG. All rights reserved.