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

1. Changing Channels & Millennial Consumers
Mark Hillary – Carnaby - @markhillary
ACDECC Customer Experience Summit 2016
Bogotá, Colombia : April 20, 2016

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. • 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. Pew Research Center http://j.mp/acdecc6
Why do they matter?

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. • 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. • 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. 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. • 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. • 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. • 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. • 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. The “classic” customer journey looks like:
• Awareness
• Interest
• Consideration
• Purchase
• Retention --- Service interactions here
• Advocacy
The Customer Journey

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. • 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. 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. 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. 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. 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. 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. 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. 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. 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. • 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. • 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. • 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. • 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. • 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. • 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. Carnaby Content – São Paulo
mail@markhillary.com
@markhillary
markhillary.com
Thank you
Gracias
Obrigado
Get in touch!