SlideShare a Scribd company logo
Understanding the Financial
Value of Customer Experience:
From Regulatory Pressure to
ROI
Prof. Dr. Phil Klaus
www.profdrphilklaus.com
@profdrphilklaus
profdrphilklaus@gmail.com
Customer Experience Transformation: Utilities
Birmingham June 25th, 2014
©® All Rights Reserved – www.profdrphilklaus.com – ProfDrPhilKlaus@gmail.com
Agenda
•  Your most burning questions.
•  Numbers and Sense.
•  How to manage the most profitable CX program.
•  Technology enhances CX.
•  Summary.
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
CX – what is it?
•  491,000,000 hits in 0.49 seconds
•  1,400,000 associated members @
•  Great customer experiences?
•  CEOs 80%
•  Their customers 8%
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
Defining CX
BLOGS
44 Customer Experience Blogs
You Should Be Reading
The 10 Best CX Blogs
193,000,000 hits
SOLUTION
PROVIDERS
EXPERTS ?
56,700,000
C2C
EVERYTHING?!
= NOTHING?!
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
What do you think…?
•  CX lacks strategic impact.
•  No one knows what exactly CX is.
•  CX is a tactical rather than a strategic objective.
•  Technology is the main driver for CX.
•  CX is the next competitive battleground.
•  CX is nothing more that the Emperor's new clothes.
•  Academic CX research is relevant
Your most burning
questions…
•  Linking CX to profitability
•  Best and next practice examples
•  Latest trends
•  Successful management
Linking CX to profitability
•  Linking CX practices and strategies to profitability.
•  311 companies worldwide.
•  5 dimensions of practice Definition; Governance;
Management; Policies; Measurements; Expectations;
Challenges
•  3 types of CX practice: Preservers, Transformers and
Vanguards differ across all 5 dimensions
•  How do they differ in practice?
•  Which is the most profitable one?
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
CX Management Practices
Linking CX to profitability
Ranking Type Most compelling reason Performance
1.
2.
3. 100%
Linking CX to profitability
Ranking Type Most compelling reason Performance
1. Vanguards Holistic Strategy Execution 600%
2. Transformers Caught in the middle 250%
3. Preservers Lack of measurement 100%
•  Generalizability across sectors, countries, industries, firm size.
•  How to become a vanguard?
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
How to become a vanguard…
•  Top three based upon influence on profitability
•  Measuring CX – Using EXQ
•  CX from the customers’ viewpoint
•  CX delivery – the crucial role of employees
•  EXQ as ‘Troyan Horse’
The influence of technology
•  Technology as enabler, not the focus of activities.
•  Successful Online and Multichannel CX
management
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
The future is here…
•  Mass 1 to 1
•  Gender, age, time, location recognition
•  Future: Interest sensing via mobile – included in
hardware
•  Geo-Fencing text advertising based upon profile
•  Recognizing the customer’s “state of mind”
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
Your most burning
questions…
•  Linking CX to profitability
•  Best and next practice examples
•  Latest trends
•  Successful management
More free resources available
to you…
•  Gain free access to cutting edge CX research from the
worldwide leading researchers by joining our Linkedin
group
•  http://tinyurl.com/marketingscholarsonLinkedIn
•  https://www.youtube.com/watch?v=6eshTkeFZGs
•  Get the book
•  http://tinyurl.com/MeasuringCX
Conclusions
•  CX – the next competitive battleground.
•  The business case for CX. ROI versus Dynamic
Capabilities.
•  How to become a vanguard!
•  More than hope, there is evidence, the future is
bright and exciting.
•  Let’s talk – ProfDrPhilKlaus@gmail.com
©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com

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Customer experience transformation utilities june 25th 2014 copy

  • 1. Understanding the Financial Value of Customer Experience: From Regulatory Pressure to ROI Prof. Dr. Phil Klaus www.profdrphilklaus.com @profdrphilklaus profdrphilklaus@gmail.com Customer Experience Transformation: Utilities Birmingham June 25th, 2014 ©® All Rights Reserved – www.profdrphilklaus.com – ProfDrPhilKlaus@gmail.com
  • 2. Agenda •  Your most burning questions. •  Numbers and Sense. •  How to manage the most profitable CX program. •  Technology enhances CX. •  Summary. ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 3. CX – what is it? •  491,000,000 hits in 0.49 seconds •  1,400,000 associated members @ •  Great customer experiences? •  CEOs 80% •  Their customers 8% ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 4. Defining CX BLOGS 44 Customer Experience Blogs You Should Be Reading The 10 Best CX Blogs 193,000,000 hits SOLUTION PROVIDERS EXPERTS ? 56,700,000 C2C EVERYTHING?! = NOTHING?! ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 5. What do you think…? •  CX lacks strategic impact. •  No one knows what exactly CX is. •  CX is a tactical rather than a strategic objective. •  Technology is the main driver for CX. •  CX is the next competitive battleground. •  CX is nothing more that the Emperor's new clothes. •  Academic CX research is relevant
  • 6. Your most burning questions… •  Linking CX to profitability •  Best and next practice examples •  Latest trends •  Successful management
  • 7. Linking CX to profitability •  Linking CX practices and strategies to profitability. •  311 companies worldwide. •  5 dimensions of practice Definition; Governance; Management; Policies; Measurements; Expectations; Challenges •  3 types of CX practice: Preservers, Transformers and Vanguards differ across all 5 dimensions •  How do they differ in practice? •  Which is the most profitable one? ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 9. Linking CX to profitability Ranking Type Most compelling reason Performance 1. 2. 3. 100%
  • 10. Linking CX to profitability Ranking Type Most compelling reason Performance 1. Vanguards Holistic Strategy Execution 600% 2. Transformers Caught in the middle 250% 3. Preservers Lack of measurement 100% •  Generalizability across sectors, countries, industries, firm size. •  How to become a vanguard? ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 11. How to become a vanguard… •  Top three based upon influence on profitability •  Measuring CX – Using EXQ •  CX from the customers’ viewpoint •  CX delivery – the crucial role of employees •  EXQ as ‘Troyan Horse’
  • 12. The influence of technology •  Technology as enabler, not the focus of activities. •  Successful Online and Multichannel CX management ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 13. The future is here… •  Mass 1 to 1 •  Gender, age, time, location recognition •  Future: Interest sensing via mobile – included in hardware •  Geo-Fencing text advertising based upon profile •  Recognizing the customer’s “state of mind” ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com
  • 14. Your most burning questions… •  Linking CX to profitability •  Best and next practice examples •  Latest trends •  Successful management
  • 15. More free resources available to you… •  Gain free access to cutting edge CX research from the worldwide leading researchers by joining our Linkedin group •  http://tinyurl.com/marketingscholarsonLinkedIn •  https://www.youtube.com/watch?v=6eshTkeFZGs •  Get the book •  http://tinyurl.com/MeasuringCX
  • 16. Conclusions •  CX – the next competitive battleground. •  The business case for CX. ROI versus Dynamic Capabilities. •  How to become a vanguard! •  More than hope, there is evidence, the future is bright and exciting. •  Let’s talk – ProfDrPhilKlaus@gmail.com ©® All Rights Reserved – www.profdrphilklaus.com - ProfDrPhilKlaus@gmail.com