What is customer experience? Why have most market leaders been investing in customer experience? How have they aligned their organization to consistently deliver a deliberate customer experience? The "Naïve-to-Natural" model is a maturity assessment that shows organizations to what extent they are capable of delivering a customer experience. This presentation includes a Belgian benchmark study.

1. The Naïve to Natural ® Model
Building great customer experiences
Qaalfa Dibeehi, CEO Beyond Philosophy
Geert Martens, practice leader 4C Consulting
Geert Martens practice leader 4C Consulting

2. Content
01 Introduction to 4C Consulting
to 4C Consulti
02 The counterintuitive nature
e of customer experience
p
03 The Naïve‐to‐Natural mode
el
04 Belgian Benchmark 2010
05 Questions

3. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
4C Consulting | Our Mission
g |
Ensure higher return on
E hi h t
customer interactions
customer interactions
through
through
smarter solutions
in marketing, sales & service
3

4. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
4C Consulting | Our Playgro
g | yg ound
Customer Interactio M
C I ion Management
Enabling the consistent delivery of th desired customer experience
he
for each of your targeted segments, across all touch points and all stages in the customer lifecycle
h
Marketing Excellence Sales Excel
llence Service Excellence
Enabling smarter approaches to
Enabling smarter approaches to Enabling smarter a
approaches to
your customer service delivery
your marketing operations your sales deliv
very model
and exploitation
…allowing for a rejuvenated strategic focus
Customer Insight Management
Enabling the transformation of your customer data
into actionable insights through high-end data analytics
4

5. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
4C Consulting | Our Custom
g | mers
5

6. Content
01 Introduction to 4C Consulting
to 4C Consulti
02 The counterintuitive nature
e of customer experience
p
03 The Naïve‐to‐Natural mode
el
04 Belgian Benchmark 2010
05 Questions

7. 02 The counterintuitive nature of customer experience
r

8. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Beyond Philosophy | Emot
y p y | tional engagement
g g
Going Beyond the Philosophy:
Practical implementations
Focus on the Customer Experience
Thought Leadership as differentiator
A number of unique methodologies
Colin Shaw Qaalfa Dibeehi
Links with academia
4C Consulting owns the exclusive
rights for Continental Europe
rights for Continental Europe
8

9. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Key Strategic Customer Expe
y g perience Questions
Q
We help companies answer and action tough questions like:
What is the future of our competition?
What do our customers expect of us?
How much is my current Customer Experi
ience costing me?
What is the Customer Experience we are trying to deliver?
How deliberate is our Customer Experienc
ce?
What emotions are we trying to evoke in our Customer Experience?
y g p
Are our senior executives engaged in the Customer Experience?
p p
How can we ensure our people understan p
nd the importance of the Customer
Experience to our organization and becom
me motivated to change their behaviours?
9

10. Customer experience is
C t i i
NOT about d g
doing whatever it takes
to “wow” customers

11. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Customer Experience | A d
p | definition
A Customer Experience is an
interaction between an
organization and a Customer.
organization and a Customer.
It is a blend of an organization’s physical
performance,
the senses stimulated and emotions evoked,
each intuitively measured
against customer expectations
across all moments of contact.
across all moments of contact
Picture taken by Geert Martens (4C Consulting) on 06/05/2010 at Chaussée de Haacht – Bruxelles, BELGIUM
Result of the encounter: big smile… and indeed as it turned out to be: a very nice day: TX 3M!
(The number plate has been changed for privacy reasons)
11

12. What do you see here?
do you

13. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Customer Experience | A d
p | definition
A Customer Experience is an
interaction between an
organization and a Customer.
organization and a Customer.
It is a blend of an organization’s physical
performance,
the senses stimulated and emotions evoked,
each intuitively measured
against customer expectations
across all moments of contact.
across all moments of contact
13

15. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Why improve the customer exp
y p xperience?
Customers are prepared to pay a price premium.
Price is the most important differentiator in rational
1. Shif
1 Shif the
ft the
ft competition
demand
cur
rve
Rational elements (product
features, service attributes,…) are 4. Build Gre
eat Customers get involved and
easy to copy 2. Reduce share their thoughts
Key success factor for impacting
y p g
competitive custo
omer costs Customers manage
g
advantages
the customer decision journey experiences
i themselves.
3. Gen
nerate
revenue
Customers become ambassadors who promote the brand to others
15

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Consumer decision journey | Traditional funnel
j y |
McKinsey Quarterly: The consumer decision journey – June 2009 16

17. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Consumer decision journey | Actual journey
j y | j y
McKinsey Quarterly: The consumer decision journey – June 2009 17

18. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Consumer decision journey | Impact of CE
j y | p
Recommendations
Enhance speed of evaluation
Enhance speed of
decision taking
Change the rules:
Ch h l
Own expperiences
& recom
mmendations
Initiate:
Recommendations
Excellente postpurchase experiences
Confirms & reinforces
McKinsey Quarterly: The consumer decision journey – June 2009 18

19. Results of investing in
the
he customer experience? ?

20. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Results of investing in the cus
g stomer experience?
p
Regional utility provider:
Regional utility provider: Improve p
p public and industry image, e.g.,
y g , g,
20% increase in Customer winner of the 2003 Utility Industry
Satisfaction and 25% Achievement Award for Customer Care
reduction in call volumes
International FMCG / retailer:
1% increase in Cu ustomer
Satisfaction driving a 1.3%
g
increase in reveenues European insurance
provider:
80% reduction in
transaction costs
Global multi-service telco:
36% improvement in Customer
Satisfaction, 17% costs reduction and
200% increase in customer-facing time International wireless telecoms
provider:
82% of Customer Interactions “better
than last time” helped by a 4% increase
in first ll
i fi t call resolution
l ti
Global PC manufacturer:
79% improvement in “Missing, Wrong &
Damaged” deliveries resulting in
reduced back office headcount Canadian Bank – Losing 26% of hi h value
C di B k i f high l
customers:
Saved 6% of high value Customers – value CDN $
85m
20

21. 03 The Naïve‐to‐Natural model
d

22. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Customer Experience | Service portfolio
p | p
Questions we answer
answer… Typical approaches we take…
take
How good/ bad is
Customer Experience Statement
your current CE?
Customer Mirror
What CE do you want to deliver? N2N Assessment
Emotional Signature
What needs to be done to create/
correct your CE programme?
Moment Mapping
CE Training
What will get your people to
deliver a deliberate CE?
Individual Action Planning
I di id l A i Pl i
22

23. The Naïve‐to‐Natural model
The Naïve to Natural model
assesses a company’s capabi ilities
to “consistently deliver
“ i l d li
a deliberate customer experience”
p

24. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | The N2
| 2N Model
high
Natural
perience
Sensory
stomer exp
Deliberately executed
Enlightened
Customer focus
Emotional
e
component of a cus
r
Physical
y Transactional
c ts
Product Naïve
low
Product Services Customer
C Customer
Features Relations Experience
Source of diffe
erentiation
n = 186
24

25. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | 9 orien
| ntation areas
25

26. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve Orientation
high
Natural
ponents of a custom experience
Sensory
An organisation that focuses on themselves to
ecuted
Enlightened
ocus
mer
Emotional the detriment of the customer.
the detriment of the customer.
Deliberately exe
Customer fo
They are “inside out” either through choice or
Transactional
Physical
because they don’t know what they should be
doing.
doing
comp
Product Naïve
low
Product Services Customer Customer
Features Relations Experience
Source of differentiation
Very product focused – price and features lead Customers asked to call on separate numbers for
Reactive to customer demands different parts of the organisation
Do not measure customer satisfaction Efficiency and productivity are the most important
KPIs – NOR customer KPIs
Deliver a very physically based Customer Experience
D li h i ll b d C t E i
People reward on sales productivity and efficiency
Employees are treated poorly and not given any
authority to recompense customers Organisation dictates which channel customers use
Product siloed organisation
26

27. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Transactional Orientation
high
Natural
An organization that focuses primarily on the
ponents of a custom experience
Sensory
physical aspects of the Customer Experience.
ecuted
Enlightened
ocus
mer
Emotional They have recognized the importance of the
They have recognized the importance of the
Deliberately exe
Customer fo
customer, however, their focus is rudimentary
Physical Transactional as many aspects of the Customer Experience
remain left to chance, are uncoordinated and
comp
“inside out”. They are typically reactive to
Product Naïve
low
customer demands.
Product Services Customer Customer
Features Relations Experience They say: "Hello you're through Alan in Customer Complaints my
Hello, you re Complaints,
Source of differentiation customer representative number is 43578632b, please state your
customer reference number and post code"
For example: British Gas
Have customer KPIs included but all physically based. Have no complete view of customer on systems.
Are functionally organized and have recognized the Have no defined Customer Experience.
need for Customer Service. Recruit people with the right attitude, rather than
Have contact with the customer via 0800, have
Have contact with the customer via 0800, have just skills.
just skills.
looked at coordination, and have extensive call Have training that takes place on how to deal with
menus that are used to screen calls. difficult customers.
Take into account Customer Physical expectation. Have employees that are given some limited
Have Senior Managers that spend limited amount
Have Senior Managers that spend limited amount authority.
authority
time with customers.
27

28. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Enlightened Orientation
g
high
Natural
ponents of a custom experience
Sensory
An organisation that has recognised the need
for a holistic, coordinated and deliberate
ecuted
Enlightened
ocus
mer
Emotional approach to the Customer Experience.
approach to the Customer Experience.
Deliberately exe
Customer fo
They are proactive in nature towards the
Transactional
Physical
Customer and orchestrate emotionally engaging
Customer experiences. They stimulate planned
Customer experiences They stimulate planned
comp
Product Naïve emotions.
low
Product Services Customer Customer
Features Relations Experience
Source of differentiation
They have defined their Customer Experience Look at the end to end Customer Experience
They focus on stimulating planned emotions and Have appointed a Customer Experience Director and
build these into the design of their Customer established a Customer Experience Council
Experience Customer involved in design of processes
Customer involved in design of processes
They have recognised customers have emotional Integrated system, “complete view of customer”
expectations and plan how to meet and exceed these achieved
Have started to align the employer experience and Customer Experience measures account for large
their Customer Experience
their Customer Experience part of bonus
t fb
Employ people with emotional capabilities
28

29. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Natural Orientation
high
Natural
ponents of a custom experience
Sensory
An organisation where focus on the customer is
total.
ecuted
Enlightened
ocus
mer
Emotional
Deliberately exe
Customer fo
They are very proactive and are naturally
focused on the Customer Experience. In order
Transactional
Physical
to produce memorable and captivating
Customer Experiences they use specific senses
Customer Experiences they use specific senses
comp
Product Naïve to evoke planned emotions..
low
Product Services Customer Customer
Features Relations Experience
Source of differentiation
They are completely focused on the customer They focus on depth of emotion
The customer is in their DNA They consciously use senses to provide a captivating
They have a deliberate Customer Experience and a experience
clearly defined Customer Experience statement
clearly defined Customer Experience statement They use theatre as a delivery method
They use theatre as a delivery method
Systems are built to improve the Customer They recruit people who are good at acting
Experience They have an integrated approach to the customer
The culture is designed, and aligned to the customer They have and experience map
Experience
E i
They understand customer sensory expectations
29

30. 04 Belgian Benchmark 2010

31. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Belgian Benchmark 2010 | Methodology
g | gy
Online survey – email invitation: Decembe
er 2009 – March 2010
In collaboration with HUBrussel: master d
dissertation of Ann‐Sofie Lamon
186 respondents of 89 companies with cu
ustomer‐facing activities in Belgium
18 multiple‐choice questions feeding into the N2N model
o
70 120 SOHO
59
60 98
100
50
40 36
80
29
30 24
20 15 14 60
9 B2B
10 34
19% 8% 31% 8% 16% 5% 13% 40 32
0 22
20
53% 18% 12% 17%
0
B2C ‐ individuals B2B ‐ self‐ B2B ‐ SME B2B ‐ large
employed companies
31

32. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | Belgian
| g n Benchmark Results
0% high
Natural
perience
Sensory
3
30%
stomer exp
executed
Enlightened
Customer focus
Emotional
Deliberately e
component of a cus
r
66%
Physical
y Transactional
ts
5%
c
Product Naïve
low
Product Services Customer
C Customer
Features Relations Experience
Source of diffe
erentiation
n = 186
32

33. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | Top pe
| p performers
B2B pharma 0% high
perience
Natural
Sensory
3
30%
B2B services
B2B telco
stomer exp
executed
B2C media
Customer focus
Emotional B2C utilities
Enlightened
g
Deliberately e
component of a cus
r
66%
Physical
y
ts
Transactional
5%
c
Product
Naïve low
Product Services Customer
C Customer
Features Relations Experience
Source of diffe
erentiation
n = 186
33

34. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | Bottom p
| m performers
0% high
perience
Natural
Sensory
3
30%
stomer exp
executed
Customer focus
Emotional
Enlightened
g
Deliberately e
component of a cus
r
66%
Physical
y g
B2C banking
ts
B2B pharma Transactional
5%
c
Product
B2C banking
Naïve low
B2B banking B2B utilities
Product Services Customer
C Customer
Features Relations Experience
Source of diffe
erentiation
n = 186
34

35. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | Industry
| ry breakdown
46
45
45
45
44
43 43
43
42
41 41 41
41
0,07 Industry
01 Telco
40 02 Utilities
0,06 03 Bank ing
04 Insurance
05 Pharma
39 0,05 06 Media
07 Other
Telco Utilities Banking Insurance Pharma Media r
Other
Mean StDev N
0,04
ensity
45,03 6,434 36
n= 36 15 59 14 29 9 24 43,13 8,601 15
De
41,37 7,867 59
stdev = 6,4 8,6 7,9 8,5 7,6 9,4 10,3 0,03
44,5 8,546 14
41,45 7,586 29
41,44 9,435 9
0,02
43,21 10,34 24
0,01
0,00
24 32 40 48 56 64
N2N
35

36. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | Banking
| ng variance
0% high
Natural
perience
Sensory
2
29%
stomer exp
executed
Enlightened
Customer focus
Emotional
Deliberately e
component of a cus
r
63% Top performer
Enlightened
Physical
y Transactional
ts
8%
c
Product Naïve
low
Bottom performer
Product Services Customer
C Customer
Features Relations Experience
Source of diffe
erentiation
n = 186
36

37. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Naïve to Natural ® | SOHO v
| vs. B2B
80%
70%
70%
60% 56%
Stdev 8,6
50% B2B = 45
average 41% SOHO
40% SOHO = 42
B2B
Stdev 7,8
30% 25%
20%
10% 5% 4%
0% 0%
0%
Naïve Transactional Enlightened Natural
SOHO = 132
B2B = 52
37

38. More info: www.4Cconsulting.com | +32 (0) 2 275 90 00 | geert.martens@4cconsulting.com
Key take aways
y y
Customer experience is an interaction betwee an organization and a customer
en
A blend of physical performance, senses stimula
ated and emotions evoked
Intuitively measured against customer expectations
The Naïve‐to‐Natural model assesses a compa
any’s capabilities to “consistently deliver a
deliberate customer experience”
It answers th
the question “C you d it?”
ti “Can do it?”
It does not say anything on the quality of the customer experience you deliver
N2N looks at the “machinery” not the output
Benchmark results:
Less than 1 in 3 companies are able to consisten deliver a deliberate customer experience
nly
1 in 3 companies are able to consisten a deliberate
(enlightened stage)
The majority of Belgian companies are still very much product‐oriented and think “inside‐out”
and Insurance slightly
Telco and Insurance slightly outperform other inndustries leaving banking, pharma and media behind:
ndustries leaving banking pharma and media behind:
but do they deliver in line with these declared capabilities?
Large variance within industries: some companies clearly take the lead
38

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