How Customer Experience Drives Digital Transformation
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Today, you have the ability to connect customer insights with digital technologies to transform the customer experience and deliver significant business value. The best customer experience is one that occurs across the entire lifecycle — from unknown prospects to existing and highly profitable customers. Customer experience spans all channels from mobile to social to in-store promotions, and when executed effectively unifies a brand’s touch points into a cohesive, differentiated experience. Our second session in Perficient’s Digital Transformation webinar series covered: -What customer experience is, and why it drives digital transformation -How to plan for customer experience within the context of your digital transformation initiatives -Highlights and case examples from industry leaders in customer experience -How to define maturity levels to help you assess your organization's customer experience – strengths, gaps and outline next steps
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How Customer Experience Drives Digital Transformation
- 1. DIGITAL TRANSFORMATION IN 2015 How Customer Experience Drives Digital Transformation #PerficientDigital facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient
- 2. 2#PerficientDigital Perficient is a leading information technology consulting firm serving clients throughout North America. We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities. ABOUT PERFICIENT
- 3. #PerficientDigital 3 PERFICIENT PROFILE Founded in 1997 Public, NASDAQ: PRFT 2014 projected revenue ~$454 million Major market locations: Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto Global delivery centers in China and India >2,600 colleagues Dedicated solution practices ~90% repeat business rate Alliance partnerships with major technology vendors Multiple vendor/industry technology and growth awards
- 4. 4#PerficientDigital INDUSTRIES Healthcare Financial Services Life Sciences Retail & Consumer Goods Automotive & Transportation High Tech Telecom Energy & Utilities Manufacturing Media & Entertainment PORTAL Portal Frameworks Search Security Web Analytics Web Content Management Social & Collaboration Mobility Experience Design INTEGRATION Integration Frameworks Cloud Architecture Reference Architecture Application Integration Enterprise Application Integration Service Oriented Architecture Process & Content Integration Business Process Management Complex Event Processing Rules Engines DATA & CONTENT Business Analytics Business Intelligence Predictive Analytics Reporting Structured Data Management Data Integration, Quality & Governance Enterprise Data Warehouse Master Data Management Product & Information Management Unstructured Data Management Big Data Content Intelligence Content Management Enterprise Search CUSTOMER EXPERIENCE Customer 360 Multi Channel Enablement Relationship Management Social Engagement Commerce Marketing Strategy Implementation Order Management Supply Chain Management Service & Support Managed Hosting Sales & Service Support Customer Service, Sales Force Automation Experience Design Strategic Roadmaps & Envision Workshops User Research & Metrics Analysis Creative & Interaction Design Custom & Responsive UI Development Digital Marketing Search Engine Marketing Online Advertising Content Strategy Conversion Optimization Management Consulting BUSINESS OPERATIONS Corporate Performance Management Budgeting, Forecasting & Planning Business Analysis & Predictive Analytics Enterprise Business Solutions Oracle EBS Vertex Tax Solutions Human Resource Solutions Employee Portals Human Resource Management Talent Management Enterprise Social Platforms Social Strategy Lync Unified Communications Office 365 Management Consulting OUR SOLUTIONS PORTFOLIO
- 5. 5#PerficientDigital Perficient XD is a digital agency within Perficient. We’re the CX and creative engine that powers the IT consulting locomotive. We envision, design and build intuitive customer experience solutions that are results-focused, digital ready and grounded in social science insight.
- 6. 6#PerficientDigital PRESENTERS Michael Porter, Perficient Managing Principal Strategic Advisors Team Twitter: @porteronportals David Stallsmith, Perficient XD Digital Strategy and Ideation Practice Lead david.stallsmith@perficient.com
- 7. 7#PerficientDigital How Customer Experience Drives Digital Transformation • Customer Experience Impact • Role of Customer Experience in Digital Transformation • Industry Examples • 3 Starting Points for Digital Transformation
- 9. 9#PerficientDigital CUSTOMER EXPERIENCE (CX) TRANSFORMATION CX MATURITY 3 KEY CONCEPTS
- 10. 10#PerficientDigital CX = SUM OF ALL INTERACTIONS WITH A BRAND PRODUCTS BROADCAST PUBLICATIONS SOCIAL EVENTS DIRECT MAIL IN STORE WEB MOBILE EMAIL BRANCH GAMING
- 11. 11#PerficientDigital More than any other factor, customer experiences determine whether companies thrive and profit, or struggle and fade. — Josh Bernoff, Forrester Research “ ”
- 12. 12#PerficientDigital Rising Customer Expectations Amazon, Zappos, Facebook, Apple, et al are redefining service, speed and ease-of-use Continual Connectedness Adoption of digital channels is driving demand for choice and connectedness Organizational Velocity Tech lowers barriers to entry and increases speed; slow response invites disruption Abundance of Customer Data Requires competency in turning complex data into business insight CX TRENDS ARE DRIVING MASSIVE CHANGE
- 13. 13#PerficientDigital Source: Temkin Group Insight Report, State of CX Management 2014 Only 10% of large companies have achieved top levels of customer experience maturity ...BUT MOST COMPANIES HAVE NOT ADAPTED 10LEVEL 5+ % 31LEVEL 1 % 13LEVEL 4 % 19LEVEL 3 % 27LEVEL 2 %
- 14. 14#PerficientDigital Only 10% of large companies have achieved top levels of customer experience maturity ...BUT MOST COMPANIES HAVE NOT ADAPTED 10LEVEL 5+ % 31LEVEL 1 % 13LEVEL 4 % 19LEVEL 3 % 27LEVEL 2 %
- 15. 15#PerficientDigital 60Companies that prioritize customer experience generate 60% higher profits than competitors CX ADAPTERS REAP BENEFITS Source: Gartner Research, “Leading on the Edge of Chaos”, 2013, Emmet Murphy and Mark Murphy)
- 16. 16#PerficientDigital CX ADAPTERS REAP BENEFITS Increase in Company Value = 30% Increase in Customer Retention 10% Source: Bain & Company Study
- 17. 17#PerficientDigital Source: McKinsey & Co. studies, 2013 and 2015 CX ADAPTERS REAP BENEFITS multi-channel journey.occur during a multi-event, of all customer interactions More than 50%
- 18. 18#PerficientDigital CX ADAPTERS REAP BENEFITS multi-channel journey.occur during a multi-event, of all customer interactions More than 50% And the number of digital touch points is growing 20% annually... Source: McKinsey & Co. studies, 2013 and 2015
- 19. 19#PerficientDigital CX ADAPTERS REAP BENEFITS 65 Percent of consumers who get frustrated when presented with an inconsistent experience across channels.Source: Accenture Global Consumer Pulse, 2013
- 20. 20#PerficientDigital CX LEADERS OUTPERFORM THE MARKET 6-year stock performance of customer experience leaders vs. S&P 500 vs. laggards
- 21. 21#PerficientDigital INDUSTRY TRANSFORMATION: INFLUENCE SHIFTS TO CUSTOMERS
- 22. 22#PerficientDigital INDUSTRY TRANSFORMATION: INFLUENCE SHIFTS TO CUSTOMERS
- 23. 23#PerficientDigital The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every point in the customer experience lifecycle. — Altimeter “ ” DIGITAL TRANSFORMATION
- 24. 24#PerficientDigital POLL #1 GOES HERE (NEED FOR DT AT YOUR COMPANY)
- 25. 25#PerficientDigital 2 ROLE OF CX IN DIGITAL TRANSFORMATION
- 26. 26#PerficientDigital ENTERPRISE TRANSFORMATION Insights Experiences Taking an “outside-in” view of the organization Encouraging customer empathy among teams
- 27. 27#PerficientDigital ENTERPRISE TRANSFORMATION TOUCH POINTS JOURNEYS BRAND PERCEPTIONS TEAMS PROCESSES SYSTEMS Insights Experiences
- 28. 28#PerficientDigital ENTERPRISE TRANSFORMATION TOUCH POINTS JOURNEYS BRAND PERCEPTIONS TEAMS PROCESSES SYSTEMS Customer Experience Maturity: How effective you are at using customer insights to create, deliver and sustain differentiating experiences Insights Experiences
- 29. 29#PerficientDigital HOW DO YOU GAUGE “TRANSFORMATION”
- 30. 30#PerficientDigital HOW DO YOU GAUGE “TRANSFORMATION” Focus on Customer Experience Maturity
- 31. 31#PerficientDigital 4 LEVELS OF CX MATURITY Level 4: Differentiated Level 3: Dynamic Level 2: Engaged Level 1: Uncommitted
- 32. 32#PerficientDigital FOCUS ON CUSTOMER EXPERIENCE MATURITY Transformation is the result of advancing to the next level of customer experience maturity.
- 34. 34#PerficientDigital CXIQ MATURITY MODEL 1 Customer Insight 2 Strategy 3 Design Processes CREATE customer experiences
- 35. 35#PerficientDigital CXIQ MATURITY MODEL 1 Customer Insight 2 Strategy 3 Design Processes 6 Operations 4 Enabling Technology 5 Measurement CREATE, DELIVER customer experiences
- 36. 36#PerficientDigital CXIQ MATURITY MODEL 1 Customer Insight 2 Strategy 3 Design Processes 6 Operations 4 Enabling Technology 5 Measurement CREATE, DELIVER & SUSTAIN customer experiences 7 Culture
- 37. 37#PerficientDigital CXIQ MATURITY MODEL 1 Customer Insight 2 Strategy 3 Design Processes 6 Operations 4 Enabling Technology 5 Measurement 7 Culture Level 1: Uncommitted Level 2: Engaged Level 3: Dynamic Level 4: Differentiated
- 38. 38#PerficientDigital CXIQ IN PRACTICE 1 Customer Insight 2 Strategy 3 Design Processes 6 Operations 4 Enabling Technology 5 Measurement 7 Culture • Mid-sized manufacturer, founded 1970 • Goal: grow customer lifetime value • Strong in strategy; gaps in customer insight, measurement and technology • Recommendation: – Create customer personas – Plan process workflow improvements – Evaluate customer management app solutions Score: Level 3 / Dynamic
- 39. 39#PerficientDigital CUSTOMER EXPERIENCE TRANSFORMATION The process of making systemic, lasting changes to a business to improve its interactions with customers and to better align those interactions with its brand. 1. Determine customer experience maturity 2. Address 7 dimensions of customer experience 3. Transform your business by reaching the next level of maturity
- 40. 40#PerficientDigital POLL #2 GOES HERE (HOW MATURE COMPARED TO COMPETITORS)
- 42. 42#PerficientDigital Leviev Part of a competitive jewelry / boutique space • Many competitors in both mid- and high-end • Opened London store in 2006 Upscale customers demand a relationship • Treat them like you know them • Understand their history and their likes • Have to compete against a variety of others who already get this External factors can influence sales • Blood diamonds • Environmental issues • Reputation is king for gems and diamonds SITUATION
- 43. 43#PerficientDigital Leviev Solve reputation challenge • Own the mines for their diamonds • Become a large diamond manufacturer • Gain exclusive access to key gemstones Use technology to enhance the relationship • Customer jewelry box to show details of all previous sales and current pieces • Shareable sketches between Leviev designers and customers • Track customer birthdays, anniversaries, travel preferences, and jewelry preferences • Show inventory of finished pieces or diamonds – From any store – Catalog available on tablet for sales associates in any other location The Premier Customer Experience SOLUTIONS
- 44. 44#PerficientDigital Leviev IMPLICATIONS Reputation Impacts: • Solved the reputation problem first • Created key industry relationships Function: Know my customer Impacts: • CRM to track preferences • Integration to sales or billing system • Social tool to share information real time • CRM tool for proactive communication Function: Jewelry Box and Shared Design Impacts: • Tool to store high resolution photos • Mobile and web interface for Leviev • Client interface and access outside store Function: Catalog Impacts: • Mobile/web interface integration to image repository
- 45. 45 A Fashion Retailer “Our web site is old. It’s disjointed. We don’t track well across channels.” • Let’s recreate their entire customer experience • Let’s create the same experience in mobile and web • We have to show the same experience regardless of where they come from • Let’s give them a personalized experience SITUATION #PerficientDigital
- 46. 46 A Fashion Retailer #PerficientDigital IMPLICATIONS A Seamless Customer Experience CX involves many moving parts • Commerce tools • Embedded commerce in personalized web content • Integrated CRM for lead tracking and generation • Marketing management tool to push messages and track success • Better analytics to understand failure and success Cuts across different parts of the business • Marketing – Must manage the site everyday across multiple tools – Involved in traffic across multiple brands – Lead generation and lead tracking • IT – Smaller team but with a global footprint – Brand consistency
- 48. 48#PerficientDigital POLL #3 GOES HERE (BIGGEST BARRIER TO INITIATING A TRANSFORMATION PROGRAM)
- 49. 49#PerficientDigital 3 WAYS TO START Conduct a customer experience maturity assessment Map one or two of your most important customer journeys Estimate potential impact on investments and results A CB
- 50. 50#PerficientDigital 3 WAYS TO START A CB Conduct a customer experience maturity assessment Map one or two of your most important customer journeys Estimate potential impact on investments and results A CBA
- 51. 51#PerficientDigital CXIQ MATURITY ASSESSMENT 1 Customer Insight 2 Strategy 3 Design Processes 6 Operations 4 Enabling Technology 5 Measurement 7 Culture • Evaluation of strengths and gaps in 7 areas of CX capability • Starting point for customer experience transformation A CBA
- 52. 52#PerficientDigital CXIQ ANSWERS 3 KEY QUESTIONS 1. How effective are experiences we offer customers? 2. How mature are the capabilities we use to deliver experiences? 3. How do experiences compare to those of our competitors? A CBA
- 53. 53#PerficientDigital USE CXIQ TO PLAN AN APPROACH 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O Uncommitted / Level 1 Focus first on: • Customer insight • Experience strategy • Goal-setting A CBA
- 54. 54#PerficientDigital 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O USE CXIQ TO PLAN AN APPROACH 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O Uncommitted / Level 1 Focus first on: • Customer insight • Experience strategy • Goal-setting A CBA Engaged / Level 2 Focus first on: • Design processes • Technology • Operations
- 55. 55#PerficientDigital 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O USE CXIQ TO PLAN AN APPROACH 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O Uncommitted / Level 1 Focus first on: • Customer insight • Experience strategy • Goal-setting 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O A CBA Engaged / Level 2 Focus first on: • Design processes • Technology • Operations Dynamic / Level 3 Focus first on: • Customer-centric culture • Measurement / results
- 56. 56#PerficientDigital 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O USE CXIQ TO PLAN AN APPROACH 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O Uncommitted / Level 1 Focus first on: • Customer insight • Experience strategy • Goal-setting 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O 1 Strate gy 7 Opera tions & Gover nance 4 Enabli ng Techn ologie s 2 Custo mer Insigh t 3 Desig n Proce ss 6 Cultur e5 Meas ureme nt S C M DP ET CI O A CBA Engaged / Level 2 Focus first on: • Design processes • Technology • Operations Dynamic / Level 3 Focus first on: • Customer-centric culture • Measurement / results Differentiated / Level 4 Focus first on: • Strategy & innovation • Customer insight • Breakthrough technologies
- 57. 57#PerficientDigital 4 TIPS FOR ASSESSING CX MATURITY 1. Ensure assessment team has access they need 2. Explore full context in which customer experiences exist 3. Benchmark against reality 4. Use CX maturity scores to evaluate and prioritize proposed initiatives A CBA
- 58. 58#PerficientDigital 3 WAYS TO START A CB Conduct a customer experience maturity assessment Map one or two of your most important customer journeys Estimate potential impact on investments and results A CBA
- 59. 59#PerficientDigital MAP KEY CUSTOMER JOURNEYS Journey Type Customer Objectives Company Objectives Product Discovery • Explore features, benefits and pricing to help me become informed and create a budget • Drive awareness, consideration and engagement A CBA
- 60. 60#PerficientDigital MAP KEY CUSTOMER JOURNEYS Problem Resolution Journey Type Customer Objectives Company Objectives Product Discovery Purchase On-boarding • Explore features, benefits and pricing to help me become informed and create a budget • Drive awareness, consideration and engagement • Transact effortlessly, confidently • Develop and maintain trust • Collect payment accurately • Drive revenue goals • Take the first step, learning as I go at my own pace • Acquire the right customer • Engage them and expose them to product options • Accomplish a task on my own • Troubleshoot a problem and resolve it quickly and easily • Reduce service costs • Teach self-help over time A CBA
- 61. 61#PerficientDigital ORG DESIGN ONCE FAVORED SILOS... In-storeOnlineProduct SupportMarketing Stand-alone touch points offer efficiency at the expense of customer experience A CBA
- 62. 62#PerficientDigital ...BUT TODAY, SILOS INHIBIT JOURNEYS In-storeOnlineProduct SupportMarketing Silos become barriers as technology enables customer transactions across the enterprise A CBA
- 63. 63#PerficientDigital JOURNEY MAPPING IMPROVES EXPERIENCES On-boarding Problem Resolution Product Discovery Purchase In-storeOnlineProduct SupportMarketing ORGANIZATIONAL SILOS TYPES OF JOURNEYS A CBA
- 64. 64#PerficientDigital JOURNEY-LED TRANSFORMATIONS... 15 Improve Customer Satisfaction Fuel Revenue Growth Upsell & acquisition Lower Costs to Serve Engage Employees to % UP UP DOWN 20 % 20% 20% to 30% UP Source: McKinsey & Co., 2014 A CBA 15 to % 20 %
- 65. 65#PerficientDigital 5 TIPS FOR JOURNEY MAPPING 1. Start with your most important customers or those you can help the most 2. Be clear on objectives 3. Follow an ethnographic approach 4. Seek out customer-facing employees for their input 5. Visual mapping encourages sharing and communication A CBA
- 66. 66#PerficientDigital 3 WAYS TO START A CBA A CB Conduct a customer experience maturity assessment Map one or two of your most important customer journeys Estimate potential impact on investments and outcomes
- 67. 67#PerficientDigital ESTIMATE CX INVESTMENT & OUTCOMES To drive these results... support these needs... and target these metrics. Increased Revenue • Simplified transactions and processes • Personalized recommendations • Device-optimized UI • Transparent pricing • Site visits • Page views • Number of leads • Conversion rate Reduced Support Costs • Self-guided on boarding • Robust self-service options • Situation-optimized UI • Transparent, easy-to-understand policies • Clear language and instructions • Service calls • Interactive chat resolution rate • Number of contact center emails • Online self-service resolution rate • IVR self-service resolution rate Increased Engagement • Personalized content and features • Social media integration • Relevant and inviting content • Device-optimized content • Session length • Frequency of visits • Registration rate • Click-through rate Increased Satisfaction • Exceed expectations • Optimize for RTS (return on time spent) • NPS, C-Sat scores • Number of customer complaints • Social listening measures A CBA Source: Forrester Research, 2014
- 68. 68#PerficientDigital ALIGN CORP STRATEGY WITH CX STRATEGY Segmentation Differentiation Cost leadership Company Strategy A CBA
- 69. 69#PerficientDigital ALIGN CORP STRATEGY WITH CX STRATEGY Segmentation Differentiation Cost leadership Low prices Innovation Fit Company Strategy Brand Promise A CBA
- 70. 70#PerficientDigital ALIGN CORP STRATEGY WITH CX STRATEGY Segmentation Differentiation Cost leadership Low prices Innovation Fit • Self-help optimization • Ultra-simplification • Crowd-powered • Proactive guidance • Data-amplified success • Product as platform • Tailored intimacy • Micro-niche • Mass customization Company Strategy Brand Promise Customer Experience Strategy A CBA Source: Forrester Research, 2014
- 71. 71#PerficientDigital 5 TIPS FOR ESTIMATING CX IMPACT 1. Assemble a multi-disciplinary team 2. Facilitate the discussions, drive to consensus 3. Distinguish one-time costs from recurring costs 4. Map business value to customer value 5. Look to your attribution programs for more proof A CBA
- 72. 72#PerficientDigital RECAP: 3 WAYS TO START Conduct a customer experience maturity assessment Map one or two of your most important customer journeys Estimate potential impact on investments and results A CB
- 73. #PerficientDigital 73 QUESTIONS? Please submit your questions in the chat box.
- 74. #PerficientDigital 74 FOLLOW US ONLINE • Perficient.com/SocialMedia • Facebook.com/Perficient • Twitter.com/Perficient • Blogs.perficient.com/digitaltransformation/ Next up: Build a Mobile Foundation to Drive Digital Transformation Initiatives March 19 | 1:00 PM CT bit.ly/DTSeries3
- 75. #PerficientDigital 75 Thank you for joining us today. Please fill out the survey at the close of this session.