How are you touching your customer? Most organizations can’t answer this question because they don’t know what the individual touchpoints are, which means assessing the sum total of their impact is impossible. This is because touchpoints with the customer happen across departmental silos, so their effect either goes unmapped (in total) or the data from each touchpoint is limited to department-level strategy. To create a complete customer touchpoint map you have to bridge departmental divides and share information, allowing you to optimize the customer experience by understanding the complete journey from the customer’s perspective. This Lecture Will: -TEACH THE BENEFITS OF MAPPING CUSTOMER TOUCHPOINTS. -SHOW A TOUCHPOINT MAP USING THE CUSTOMER JOURNEY. -EXPLAIN HOW TO START MAPPING YOUR CUSTOMER TOUCHPOINTS. You can watch this lecture here: https://youtu.be/nwDfvU-PKsM

1. Dawn of the Data Age Lecture Series
Interpreting Data Like a Pro

2. Hi. I’m Luciano Pesci, Phd …
Founder & CEO, EMPERITAS
● Team of economists and data scientists delivering bi-weekly Customer Lifetime Value
intelligence so our clients can beat their competitors for the best customers.
Founder & Director, Utah Community Research Group, Univ. of Utah
● Teach microeconomics, data science, applied research, & American economic history.
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3. Today’s Lecture Outline
● Teach the benefits of mapping customer touchpoints.
● Show a touchpoint map using the customer journey.
● Explain how to start mapping your customer touchpoints.
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4. 4Benefits of Touchpoint Mapping

5. Single Touchpoint Utopia
● Amazon Dash reduces the touchpoint for
buying to a single push of the button.
● Amazon’s patent on one-click buying just
expired but it won’t hurt their growth.
○ Always been a customer experience focused
company (one-click patent was filed in 1999).
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*Amazon’s One-Click Patent Expires: goo.gl/eDaQKw

6. Fluidity Warning
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● Terminology is imprecise - touchpoints,
journeys, lifecycle, channels, personas, profiles, ...
● Developed within different departmental silos:
■ Marketing
■ Product UX
■ Customer Experience

7. Defining Touchpoints
● “Before, during, and after a purchase.”*
○ Physical or digital, # of touchpoints increasing.
● Touchpoints should be discovered while
journeys are mapped (iterative process).
○ They are mostly microinteractions.
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*Survey Monkey’s Definition of touchpoints: goo.gl/8WcqQQ

8. Unsucking The Touchpoints*
● The most useful touchpoints, and the ones
you should examine first, are always:
○ Appropriate - “context + culture”
○ Relevant - “meeting needs/functional”
○ Meaningful - “importance/purpose”
○ Endearing - “subtle, playful, creating delight”
● Touchpoint data needs to flow freely.
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*Unsucking The Touchpoints: goo.gl/3eYcsv

9. Customer Journeys
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● It’s a framework for understanding stages of the
process from before they’re a customer till churn.
○ You can follow customers beyond churn, but don’t stalk.
● The journey’s level of precision depends on
how detailed your customer profiles are
and the customer data that’s available.*
*Creating Data-Driven Customer Profiles: goo.gl/o1v972

10. The Need To Know
● Today customers have more touchpoints than
ever with brands (there’s more data now too).
○ Partly result of rising volume of business.
○ Partly result of specialization within organization.
● A single bad experience can churn a customer.*
○ 9 out of 10 B2C from a bad experience.
○ 7 out of 10 B2B from a bad experience.
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*How Touchpoint Mapping Works: goo.gl/ynm9Yt

11. CX Depends On It
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● 1 in 26 voice a complaint about a bad experience.*
○ Most problems are avoidable with the right insight driven action.
● Customer satisfaction is still the main driver of
word-of-mouth growth & for reducing churn.
○ A 5% increase in retention can lead to a 75%
increase in profitability (not revenue, but PROFIT).*
*Evolution of Customer Service Metrics: goo.gl/MeciPw

12. Benefits Of Knowing Your Touchpoints
● It’s what innovative companies are doing
right now to beat their competitors.
● It reduces churn & increases lifetime value.
● It provides actionable insights for everyone
in your company by utilizing your data.
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13. Another Way To Look At It
● The bar is being set by all customer experiences,
not just those within your own industry.
● More details about this emerging pattern
are laid out in my recent article.*
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*Data-Differentiating Your CX Strategy: goo.gl/VHfAZx

14. 14Touchpoints & Journey Mapping

15. Customer’s Shoes
● The most important step in mapping
touchpoints across the customer journey is
understanding the customer’s perspective.
○ Internal audits are insufficient, but they are necessary.
● This should be your main focus and you should
learn: Goals, Needs, Barriers, & Expectations.
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16. Beyond Your Control
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● Some of the touchpoints you have with
customers are beyond your view or reach.
○ Word-of-mouth is one example - you can’t hear
every conversation involving your brand.*
● This means you should leverage as much of
the information you do have visibility of.
*Some Apps Were Listening To You: goo.gl/ndNY4z

17. Visually Un-Optional
● There are many touchpoints for all possible
journeys. This creates lots of permutations.
○ Use personas to group permutations.
○ Make order from the chaos with visualizations.
● Overwhelming majority of people are visual
learners, and it’s (probably) a much faster
way of sharing the journey & touchpoints.*
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*The 60,000 Fallacy: goo.gl/xFKA9Z

18. Touchpoint Map Example*
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*Touchpoint Matrix: brandtouchpointmatrix.com

19. Touchpoint Map Example*
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*Ecommerce Journey Map: goo.gl/M3vtou

20. Touchpoint Map Example*
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*Journey Decision Pathways: goo.gl/kUVVru

21. 21Start Mapping the Journey

22. Inventory 2-Step
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● Touchpoint Inventory - starts broad as a list
but ends with specific KPIs, a DRI and visuals.
● Includes a data audit & exploratory data
analysis (EDA) to identify KPIs worth tracking.
○ This is an internal process, and can’t be skipped.

23. DRIs & Biz Purpose
● You need to identify directly responsible
individuals (DRIs) for every touchpoint.
● You should also make a list of the purpose
for every touchpoint visible to your team.
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*What Is a Customer Touchpoint & Map: goo.gl/gfAV5V

24. Breaking Down Silos
● Your data needs a central environment
with clear governance & user management.
○ It can start with loose rules, but nothing will scale
until this environment works for all stakeholders.
● Typical Silos: Marketing, Sales/Finance,
Product/Ops, Customer Experience, IT, ...
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25. Relationship Status Matters
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● What stage are they in their customer journey?
○ Where are you in your product life cycle?*
● Requires different approaches because of the
varying data available over the entire journey.
*Product Lifecycle: hbr.org/1965/11/exploit-the-product-life-cycle

26. Identifying The Right KPIs
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● CSAT and NPS are not the whole picture.
○ Sentiment analysis requires unstructured data
but offers deeper insight than survey scales.
● You’ll have massive amounts of data for
each touchpoint, so you have to figure out
which metrics matter. EDA does this.

27. High-Level Leap Of Faith
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● This is a new problem for most companies,
but the benefits of having a better customer
experience than competitors are huge.
● Ease into it with high-level exercises.
○ Brand Touchpoint Matrix is a great place to start.*
*Brand Touchpoint Matrix: brandtouchpointmatrix.com

28. Ending In The Data Weeds
● Your customer journey map needs to get
more precise every day across touchpoints.
● Inventory of all touchpoints with DRIs,
business purpose, KPIs, and their trends
needs to be fully mapped & visualized.
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29. GOAL #1 = Reduce Friction
● Should be trying to minimize the total
number of touchpoints with customers.
● Amazon Dash is the perfect example.
○ Built on amazing data (so much data they started
selling their MARGINAL server space as AWS)*
■ $17.5BN in revenue in 2017.
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*History of AWS: goo.gl/gLU7kG

30. GOAL #2 = Personalize
● Personalization constantly ranks as a major
component of good customer experience.
● This requires a lot of data, good predictive
models & testing/validating.
○ Should be done before any personalization
program is released into the wild.
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31. GOAL #3 = Know CLV
● All touchpoints should be optimized for
providing a profitable product.
● Customer Lifetime Value (CLV) ensures
actions at all touchpoints are profitable.
○ Because it shows you how to provide real value.
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32. 32What We Covered Today

33. What We Covered Today...
● The benefits of mapping touchpoints.
● A touchpoint map and the customer journey.
● How to start mapping touchpoints.
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34. 34Required Reading

35. You Should Read - [Evolution of Customer Service Metrics]*
Authored by Brad Birnbaum, CEO of Kustomer.
Cliff Notes: methods of customer service are outdated and
need to evolve with the rapidly changing market. Data,
especially about lifetime value, is critical to success but
any information you get will be partial and requires very
careful interpretation following deep analytics (like NLP).
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*Evolution of Customer Service Metrics: goo.gl/MeciPw

36. 36At The Next Lecture...

37. Thursday May 24th, 2018
emperitas.com/lecture