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in the end,
the best app
wins, no
matter who
makes it”- ACCENTURE
CUSTOMER EXPERIENCE
HELGE
TENNØ
V. 2.0
customer
experience
2004
WEBSITE
2011
MOBILE FIRST
2015
information
architecture
User
experience
Analytics
CloudIOT
Mobile
Collab.
tech
2017
outcome
economy
MANAGEMENT
CROSS-CHANNEL OMNI+DELIVERY+PRODUCT
ACTIVE COLLABORATION
PARTNERING WITH THE CUSTOMER EVERY DAY
TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1
PASSIVE OFFER
SALES & ZERO MOMENTS OF TRUTH
CHANNEL
2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE
link
RANK THE FOLLOWING
LIST ACCORDING TO
THE STRATEGIC
WEIGHT THEY WIELD.
1.KEY EXTERNAL BUSINESS PARTNERS
2.NON-EXECUTIVE SENIOR LEADERSHIP
3.PARENT COMPANY
4.CORPORATE STRATEGY FUNCTION
5.CUSTOMERS
6.BOARD OF DIRECTORS
7.C-SUITE
DISCUSS:
ANSWER:IN2003CUSTOMERSCAME6TH,IN2013CUSTOMERSCAME2ND
link
Consumers won’t accept anything besides a good customer experience
from start to finish, and marketers continue to cater to such demands. In a
January 2015 study by Econsultancy in association with Adobe, client-
side marketers worldwide ranked the customer experience as the single
most exciting opportunity in 2015, at 22%
In order to execute these efforts, companies need to beef up customer
experience teams. In a November 2014 study by the Economist
Intelligence Unit (EIU), sponsored by Marketo, 27% of marketing execs
worldwide said customer experience and engagement was a leading area
where their companies needed to develop skills.
http://www.emarketer.com/Article.aspx?R=1012015#sthash.J2KutBby.dpuf
EXECS WANT TO MAKE CUSTOMER EXPERIENCE
PERSONALIZED AND VALUABLE
link
Ed Thompson, an analyst at market research firm Gartner, says:
“Between 5% and 10% of companies truly have a customer culture at
their core, but the rest have been forced to care because all other
means of differentiation have been eroded over time. That’s why it is
currently a hot topic and has been very high on CEO agendas for the
last three years or so.”
In many consumer sectors, it has become increasingly difficult for
organisations to really stand out from the crowd in terms of pricing,
products or services.As a result, the last great bastion of
differentiation in recent years has become that of customer
experience – and that seems unlikely to change any time soon.
“the rest have been forced to care because
all other means of differentiation have
been eroded over time.”
HTTP://WWW.COMPUTERWEEKLY.COM/FEATURE/CUSTOMER-EXPERIENCE-MANAGEMENT-FIGURES-AS-WAY-TO-STAND-OUT
link
In the end, the best customer experience wins, no matter who makes it - v.2
1. HOW WILL
WE WIN?
THE CUSTOMER EXPERIENCE IS DIRECTLY LINKED TO THE
BUSINESS STRATEGY - IT’S NOT OPERATIONAL OR ONLY
DIGITAL. IT’S DEFINING THE COMPANY’S ROLE AND HOW
WE ARE GOING TO CREATE WHAT VALUE FOR OUR
CUSTOMERS IN ORDER TO WIN IN THE MARKET.
“They are generally at chief operating officer level as this gives customer experience a board-level focus.
HTTP://WWW.COMPUTERWEEKLY.COM/FEATURE/CUSTOMER-EXPERIENCE-MANAGEMENT-FIGURES-AS-WAY-TO-STAND-OUT
Amanda Whittaker, a senior manager in management consultancy Deloitte Digital’s customer advisory practice, says:
If the position is lower down, it tends to
get buried in operational requirements.”
link
“As banks recover from
the downturn, non-
banks are taking
advantage by proceeding
aggressively with digital
innovations and
capturing more and
more of the banking
value chain,”
- WIRED.com
How Starbucks could replace your bank
IMAGE: DAN R. KRAUSS/GETTY IMAGES
link
TESCO’S INVESTOR PRESENTATION MARCH 2014
PHOTO CREDIT: TESCO
Where, he says; the company shifted its direction to
Customer First and asked the question: How are we going
to serve the customers better? The result is a proven
success on all familiar business measurements, from
shareholder return, growth and market share, to employee
engagement and not least; customer value.
Apple, almost bankrupt in 1997 after years of 20th
century managerial approach to management was taken
over by Steve Jobs. Who was a tyrant on behalf of the
customers. Spending four years cleaning up the company
and throwing out employees who had no direct impact on
contributing to customer value. In 2001 Jobs had
changed the company and its culture and set it up for
large scale rapid innovation - and the story of its success is
widely known.
link
“As we confirmed in our “Next 30-Year Vision,” which we created in 2010,
our ultimate goal is to alleviate sadness and increase everyone's happiness
to the greatest extent possible through the Information Revolution.”
- Letter from the CEO, Masayoshi Son -
link
“Customer experience …
is a fundamental dimension
of how a company competes.”
- JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY -
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
link
“Too many companies see customer experience
as a slogan exercise. We realized that if we didn’t
build our strategy around how customers
experience our products, a start-up with that
focus could eventually overtake us.”
Philip Gerskovich, senior vice president, Zebra Technologies -
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
link
THE COMPETITION AREN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
IF YOU ASKED A CONVENIENCE STORE IN OSLO IN
2012 WHAT THE BIGGEST THREAT WOULD BE IN 2013
THEY WOULD POINT TO THE OTHER SIDE OF THE
STREET AND SAY - ‘IF A COMPETING CONVENIENCE
STORE OPENS OVER THERE’.
THE WORST THING THAT DID HAPPEN WAS THE
MOBILEPHONE TICKET ORDERING APPLICATION FOR
THE PUBLIC TRANSPORT COMPANY.
THE PROBLEM BEING THAT THE STORES ALL KNEW
ABOUT THE APP, BUT NOBODY DID ANYTHING
BECAUSE THE THREAT DIDN'T LOOK IDENTICAL TO
THEMSELVES.
CUSTOMER EXPERIENCE vs. core business
Ignoring the customer experience can produce great costs to core business.
“Successful innovators care about solving interesting and important problems —
innovation is merely a byproduct. If this distinction seems like hair-splitting, it
isn’t. The two focuses create vastly different realities.”
link
HOW WILL
WE WIN?
WHAT IS THE CUSTOMER EXPERIENCE? HOW DOES IT DIRECTLY
DELIVER ON/INFLUENCE THE BUSINESS STRATEGY?
DISCUSS
2. PRECISION AND
RELATIONSHIPS
WHEN A CUSTOMER’S BUYING BEHAVIOR CHANGES THE
TOOLS TO MOTIVATE THIS BEHAVIOR NEEDS TO ADAPT.
In the end, the best customer experience wins, no matter who makes it - v.2
COMMUNICATION IS A TOOL DESIGNED TO FIT THE BEHAVIORS OF THE CUSTOMER. WHEN
THESE BEHAVIORS CHANGE THE COMMUNICATION NEEDS TO ADAPT.
link
THE AMOUNT OF RESEARCH THE CUSTOMER
PERFORMS ONLINE INCREASES IF THE PRODUCT BEING
PURCHASED MEANS SOMETHING TO US PERSONALLY,
IF IT IS COMPLICATED OR IF IT IS EXPENSIVE.
TNS-GALLUP
http://www.tns-gallup.no/tns-innsikt/fra-somlos-multikanalhandel-til-totalhandel
link
2009
ACTIVE EVALUATION
LOYALTY LOOP
POST PURCHASE EXPERIENCE
INFORMATION GATHERING, SHOPPING
After purchasing a product or service the
consumer builds expectations based on
experience to inform the next decision journey
The consumer considers an initial set of brands,
based on brand perceptions and exposure to
recent touch points
Consumers add or subtract brands as they
evaluate what they want
Ultimately, the consumer selects a
brand at the moment of purchase
MOMENT OF
PURCHASE
INITIAL
CONSIDERATION
SET
1.
2.
3.
4.
THE NEW SIRLOIN OF MARKETING
2009
TRADITIONALLY BRANDS ARE PRESENT IN THE GREEN DOTS. THESE ARE VERY EXPENSIVE PLACES TO BE. IN THE NEW AREAS (GREY BACKGROUND)
COMPANIES CAN ACHIEVE GREAT THINGS BUT THIS REQUIRES A NEW TYPE OF MARKETING PRODUCT AND NEW FORMATS.
link
THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
IN B2B CUSTOMERS HAVE ALREADY COMPLETED 60% OF THEIR CUSTOMER JOURNEY BEFORE TALKING TO SOME COMPANIES. SALES BECOMES LESS ABOUT
PRESENTING PRODUCT INFORMATION AND MORE ABOUT HELPING CUSTOMERS CREATIVELY IMPROVE THEIR BUSINESS POTENTIAL WITH THE PRODUCTS. link
I asked Allen Nance, CEO of the email service provider Whatcounts, which area of sales
development is the most important and he was emphatic that, “Data analysis is number
one. I’ve had world-class sales development reps using bad data and it was unsuccessful.
I’ve had mediocre reps calling great data and they’re successful. If you don’t have the
right person to call, nothing else matters.”
Stephen J. Meyer
forbes.com
http://www.forbes.com/sites/stevemeyer/2015/01/30/the-biggest-trend-in-sales-today-this-thing-called-sales-development/2/
Sales Development III
link
NEW HABITS AND BEHAVIORS
CHANGE THE IMPORTANCE OF
ESTABLISHED MECHANISMS
EVEN IF THE EMOTIONAL DRIVERS FOR
BUYING A CAR ARE SIMILAR TODAY AS IT WAS
IN THE 1980’S, THE LOYALTY TOWARDS CAR
BRANDS HAVE FALLEN FROM 60% TO 20% IN
THE PERIOD.
- THE REASON IS THE INTERNET. HOW PEOPLE
ARE BUYING CARS ARE DIFFERENT, NOT WHY
0
COMMENT: INVESTMENTS ARE MOVING TOWARDS CHANNELS ENABLING THE NURTURING OF PERSONAL RELATIONSHIPS. TODAY THE CUSTOMERS
ARE INDIVIDUALS, NOT MASSES. TECHNOLOGY TODAY ALLOWS FOR INDIVIDUALLY TAILORED COMMUNICATION TO MILLIONS OF CUSTOMERS AT
THE SAME TIME. [HOW TO READ THE GRAPH: THE COLUMNS ON THE RIGHT HAND SIDE OF THE DOTTED LINE REPRESENTS THE NUMBERS FOR 2015, THE BLUE AND THE RED COLUMNS
REPRESENT INCREASES (BLUE) AND DECREASES(RED) FROM 2012 TO 2015].
INDIVIDUAL PATHS TO PURCHASE:
In 2012, Google and Shopper Sciences did a study of the purchase
journey of 3,000 different customers in tech, CPG, automotive, and
finance, and literally found 3,000 different paths to purchase.
However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that
consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each
point along the way in the order and time that made the most sense to them.
In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential
vendor.
http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html
CUSTOMERS HAVE ALWAYS BEEN INDIVIDUALS, WE JUST HAVEN’T HAD THE DATA TO SEE IT / PROVE IT. link
THIS IS THE FUTURE OF THE INTERNET, IT'S ALL ABOUT PERSONAL COMMUNICATION.
THERE ISN'T ONE PORTAL OR ONE-SIZE-FITS-ALL WEBSITE, NO COMPANY WEBSITE OR MY-PAGE…
VIDEO LINK: http://youtu.be/a6cNdhOKwi0
THIS IS THE SAD STATE OF THE COMPANIES ONLINE CUSTOMER EXPERIENCE IN 2014. IT’S BC.
vs.
MAKE SURE YOU PICK THE PLATFORM THAT ENABLES WHAT YOU WANT TO ACHIEVE AND HOW YOU WANT TO GROW AND CULTIVATE YOUR CUSTOMER
RELATIONSHIPS. IS THE WEB, MOBILE OR CARD (ETC.) THE RIGHT PLATFORM/ TECHNOLOGY FOR YOUR SPECIFIC NEEDS? HOW DOES THE ABILITIES OF
EACH PLATFORM ENABLE REACHING WHICH GOALS?
WHAT WOULD YOUR
CUSTOMERS GAIN FROM a
personal relationship?
DISCUSS:
3. THE CUSTOMER
AS A SIGNAL
DEMOGRAPHICS GEOGRAPHY
1662
THE ARGUMENT AGAINST DEMOGRAPHICS
For example, Progressive Insurance has always collected and analyzed a significant amount of data. But Snapshot, its
innovative auto insurance discount program, “has taken things to a whole new level,” says Voelker. An in-car wireless
device transmits driver data back to Progressive at one-second intervals. Customers can get their premiums reduced
based on their safe-driving patterns, with those earning a discount saving an average of 10 percent.
Progressive has collected more than 178 terabytes of data
via Snapshot—11 times the amount of all data stored by the
Library of Congress. It provides for a much more accurate
pricing method for Progressive than estimating a
customer’s potential for loss based on information like age,
gender, and type of car, says Voelker. What’s more, it has
enabled an entirely new and successful product category—
usage-based auto insurance.
“It’s revolutionary to us,”
says Voelker. “Every time
we find a more powerful
segmentation variable, it
drives more growth.”
CUSTOMER JOURNEY
INDIVIDUAL PATHS TO PURCHASE:
In 2012, Google and Shopper Sciences did a study of the purchase
journey of 3,000 different customers in tech, CPG, automotive, and
finance, and literally found 3,000 different paths to purchase.
However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that
consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each
point along the way in the order and time that made the most sense to them.
In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential
vendor.
http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html
link
In the end, the best customer experience wins, no matter who makes it - v.2
In the end, the best customer experience wins, no matter who makes it - v.2
4. CUSTOMER
DATA BECOMES
THE NEW OIL
Treårsprojeksjonen fra SAS Institute er tydelig; vi trenger kommunikasjonsprodukter som
ikke bare skaper omdømmeverdier, men som samtidig omsetter disse verdiene til andre
virksomhetsmål. Vi trenger en verktøykasse som ser på kommunikasjonen som personlig
og tilpasset. Vi trenger at kommunikasjon ikke bare handler om å distribuere innhold,
men også å generere innsikt som gir oss økt forståelse slik at vi kan designe en fruktbar
og langsiktig kunderelasjon. Og, vi trenger innsikt som gir oss en mulighet å ta
de vågale valgene som kan posisjonere virksomheten for fremtiden.
Helge Tennø, Ukeavisen Ledelse Nr. 2 2013
We need to use communication to generate insights and collect
relevant data - as much as connecting with customers
In the end, the best customer experience wins, no matter who makes it - v.2
HOSPITALITY IDENTIFIES
CUSTOMERS BASED ON
HOW THEY BUY THE
PRODUCT _ NOT HOW
THEY EXPERIENCE IT.
In the end, the best customer experience wins, no matter who makes it - v.2
In the end, the best customer experience wins, no matter who makes it - v.2
5. MOTIVATION
UNDERSTANDING THE ROLE OF DESIGN IN THE
CUSTOMER EXPERIENCE.
link
FORRESTER'S RESEARCH SHOWS
THAT GREAT CUSTOMER EXPERIENCE
CORRELATES TO LOYALTY METRICS
LIKE RETENTION, ENRICHMENT AND
ADVOCACY.
But it's difficult to build differentiated experiences based on what you think you know
about your customers. Loyalty insights, combined with other sources of customer
data, can help customer experience teams create and deliver personalized
experiences that inherently exceed expectations.
customer experience design
HTTP://ADAGE.COM/ARTICLE/DIGITALNEXT/LOYALTY-PROGRAM-CREATING-LOYAL-CUSTOMERS/297029/
link
“their online solution is so simple to use that I’m
not going to change [brands] because of that”
- retiree, 75 years old -
“it was to complex, I don’t want to spend my time
administrating what I want”
- mom with small children -
OPERATIONALIZING
TURNING an
EXPERIENCE
into TASKS
USER STORIES
In the end, the best customer experience wins, no matter who makes it - v.2
In the end, the best customer experience wins, no matter who makes it - v.2
VIDEO LINK: HTTP://YOUTU.BE/XVT0MCUGB58
WRONG design / no design - kills
No concept, no matter how brilliant, can withstand the impact of poor design.
IF PEOPLE AREN’T BUYING YOUR PRODUCTS ON THEIR MOBILE, IT MIGHT AS WELL BE
BAD DESIGN AND CUSTOMER EXPERIENCE HINDERING THEM FROM SHOPPING WHERE THEY WANT.
Before After
link
link
MOVE ON!
THE WEBSITE HAS BECOME INFRASTRUCTURE -
are we MOTIVATING
CUSTOMERS
WITH OUR CURRENT CUSTOMER EXPERIENCE?
DISCUSS
6. PROGRAMMED
CUSTOMER EXPERIENCE
CUSTOMER RELATIONSHIPS AND INTERACTIONS ARE BECOMING PROGRAMMED. THIS
INCREASES SCALABILITY, DATA GATHERING AND INDIVIDUALISATION.
IT CHANGES THE WAY WE VIEW OUR PURPOSE. HOW WE CREATE VALUE AND WHERE WE
SHOULD OPERATE IN ORDER TO CREATE WHICH VALUE FOR OUR CUSTOMERS.
link
PERSONAL &
SCALABLE
BETTER AT UNDERSTANDING
PEOPLE THAN PEOPLE
“Microsoft Research has just announced a
major milestone: Its software was able to
identify the contents of 100,000 test
images in ImageNet with a 4.94% error
rate, while humans have scored a 5.1%
error rate in the same test in the past. In
other words, Microsoft hasn’t just
beaten every competitor in
the industry; they’ve beaten
humans at their own game.”
IF THE COMPUTER IS SO SMART, WHY
DO I HAVE TO DO ALL THE WORK?
VIDEO LINK: http://youtu.be/8ZtG5DX5FR0
LEARN
AND
RE-LEARN
PROGRAMMED CUSTOMER RELATIONSHIPS GIVES ORGANIZATIONS THE OPPORTUNITY TO LEARN AND RE-LEARN EVERYTHING
THEY KNOW ABOUT THEIR CUSTOMERS - TO SHIFT THE PERCEPTION OF WHAT THE PRODUCT IS DOING AND GIVE NEW IDEAS TO
WHAT IT SHOULD BE DOING.
VIDEO LINK: http://youtu.be/uovijOpB7Jw
DEMOGRAPHICS GEOGRAPHY
1662
THE ARGUMENT AGAINST DEMOGRAPHICS
For example, Progressive Insurance has always collected and analyzed a significant amount of data. But Snapshot, its
innovative auto insurance discount program, “has taken things to a whole new level,” says Voelker. An in-car wireless
device transmits driver data back to Progressive at one-second intervals. Customers can get their premiums reduced
based on their safe-driving patterns, with those earning a discount saving an average of 10 percent.
Progressive has collected more than 178 terabytes of data
via Snapshot—11 times the amount of all data stored by the
Library of Congress. It provides for a much more accurate
pricing method for Progressive than estimating a
customer’s potential for loss based on information like age,
gender, and type of car, says Voelker. What’s more, it has
enabled an entirely new and successful product category—
usage-based auto insurance.
“It’s revolutionary to us,”
says Voelker. “Every time
we find a more powerful
segmentation variable, it
drives more growth.”
I asked Allen Nance, CEO of the email service provider Whatcounts, which area of sales
development is the most important and he was emphatic that, “Data analysis is number
one. I’ve had world-class sales development reps using bad data and it was unsuccessful.
I’ve had mediocre reps calling great data and they’re successful. If you don’t have the
right person to call, nothing else matters.”
Stephen J. Meyer
forbes.com
http://www.forbes.com/sites/stevemeyer/2015/01/30/the-biggest-trend-in-sales-today-this-thing-called-sales-development/2/
Sales Development III
THE
CONCENTRATED
MODEL
IMAGE BY SCARLETH MARIE ON FLICKR.COM
WE TRY TO SOLVE PROBLEMS OR CREATE OPPORTUNITIES IN CONCENTRATED PLACES. AS AN EXAMPLE: MUCH OF RESTITUTION,
OR PREVENTION WHEN IT COMES TO DISEASE HAPPENS OUTSIDE THE HOSPITAL. STILL A SIGNIFICANT MAJORITY OF INVESTMENTS
IS ALLOCATED INSIDE THE BUILDING. WITH PROGRAMMED CUSTOMER RELATIONSHIPS WE CAN OFFER VALUE WHERE IT CAN
GENERATE THE BEST EFFECT - NO MATTER WHERE THAT IS.
2.
IN THE DIGITAL
CUSTOMER
ECONOMY
COMPANIES GET
TO CHOOSE
WHAT KIND OF
BUSINESS THEY
ARE IN
ACTIVE
OR
PASSIVE
“The idea that customers benefit from engagement with their
insurance needs is part of Progressive’s philosophy. Encouraging
the use of products and services that foster active involvement,
we can improve the experience for everyone.”
Before the advent of modern information technology,
products were mechanical and activities in the value
chain were performed using manual, paper processes and
verbal communication. The first wave of IT, during the
1960s and 1970s, automated individual activities in the
value chain, from order processing and bill paying to
computer-aided design and manufacturing resource
planning. (See “How Information Gives You Competitive
Advantage,” by Michael Porter and Victor Millar, HBR,
July 1985.) The productivity of activities dramatically
increased, in part because huge amounts of new data
could be captured and analyzed in each activity. This led
to the standardization of processes across companies—
and raised a dilemma for companies about how to
capture IT’s operational benefits while maintaining
distinctive strategies.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
https://hbr.org/2014/11/how-smart-connected-products-are-
transforming-competition
The rise of the internet, with its inexpensive and
ubiquitous connectivity, unleashed the second wave of
IT-driven transformation, in the 1980s and 1990s (see
Michael Porter’s “Strategy and the Internet,” HBR,
March 2001). This enabled coordination and integration
across individual activities; with outside suppliers,
channels, and customers; and across geography. It
allowed firms, for example, to closely integrate globally
distributed supply chains.
The first two waves gave rise to huge productivity gains
and growth across the economy. While the value chain
was transformed, however, products themselves were
largely unaffected.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
https://hbr.org/2014/11/how-smart-connected-products-are-
transforming-competition
Now, in the third wave, IT is becoming an integral part of
the product itself. Embedded sensors, processors,
software, and connectivity in products (in effect,
computers are being put inside products), coupled with a
product cloud in which product data is stored and
analyzed and some applications are run, are driving
dramatic improvements in product functionality and
performance. Massive amounts of new product-usage
data enable many of those improvements.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
https://hbr.org/2014/11/how-smart-connected-products-are-
transforming-competition
I II III
WHAT MAKES SMART, CONNECTED PRODUCTS
FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET,
BUT THE CHANGING NATURE OF THE “THINGS”.
HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
active collaboration
HOW CAN PROGRAMMED
CUSTOMER EXPERIENCES
IMPROVE THE PRODUCT
AND THE JOB IT IS HELPING
THE CUSTOMER PERFORM?
PERSONAL & SCALABLE // UNBIASED // SMARTER // LEARNING //
FRAGMENTED AND PERIPHERAL // ACTIVE
DISCUSS
7. FROM CUSTOMER
EXPERIENCE TO THE
OUTCOME ECONOMY
CUSTOMER EXPERIENCE IS A TIRED TERM DESIGNED TO FIT THE PASSIVE ROLE OF
COMPANIES IN THE SHARE HOLDER ECONOMY - IT’S A PAT ON THE BACK AND: “AT LEAST WE
TRIED - CUSTOMERS ARE JUST NOT INTERESTED”.
IN THE OUTCOME ECONOMY THE GOAL OF AN ENTERPRISE IS THE MEASURABLE SUCCESS
OF ITS CUSTOMERS.
In the end, the best customer experience wins, no matter who makes it - v.2
THE CUSTOMER EXPERIENCE IS:
The totality of a customer’s personal
interactions with a brand, over time.
- DON PEPPERS -
https://www.linkedin.com/pulse/defining-customer-experience-don-peppers
WRONG?
“Customer experience … is a fundamental
dimension of how a company competes.”
- Joseph Pine -
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
“Too many companies see customer
experience as a slogan exercise. We
realized that if we didn’t build our
strategy around how customers
experience our products, a start-up
with that focus could eventually
overtake us.”
- Philip Gerskovich, senior vice president, Zebra Technologies -
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
In the end, the best customer experience wins, no matter who makes it - v.2
THE CURRENT PRACTICE OF MANAGEMENT IS NOT ALIGNED TO A NEW
WORLD WHERE CUSTOMERS SUDDENLY BECOME AN IMPORTANT
STRATEGIC ASSET. COMPANIES HAVE BEEN DESIGNED TO KEEP
CUSTOMERS OUT. BRAND, DESIGN AND ADVERTISING ARE ALL TOOLS TO
SAFELY KEEP CUSTOMERS ON THE OUTSIDE. BUT, IF COMPANIES ARE TO
REAP THE BENEFIT OF DELIGHTING CUSTOMERS - THEY NEED TO
RETHINK / REDO THE WAY THEY MANAGE THEIR COMPANY.
CUSTOMER INTERACTION
DESICIONS AND
STRATEGIES
EFFICIENCY
AND STANDARDIZATION
THE CURRENT MODEL IS DESIGNED TO ALLOCATE DECISIONS AS FAR AWAY FROM WHERE
THEY NEED TO BE MADE AS POSSIBLE. CREATING SLOW ORGANIZATIONS TAKEN HOSTAGE
BY TOP MANAGEMENT.
In the end, the best customer experience wins, no matter who makes it - v.2
HTTP://YOUTU.BE/GCPVNXUVTEA?T=4M32S
In the end, the best customer experience wins, no matter who makes it - v.2
Starting with the customer they asked “what is the most
important thing we can do for this customer”. And then
they put the most important employees on the task of
solving that most important problem. This was
implemented across the whole organization with
autonomous teams approaching different levels of
problems. The result was outstanding, Salesforce for the
fourth consecutive year, has been awarded the most
Innovative Company by Forbes.
Apple, almost bankrupt in 1997 after years of 20th
century managerial approach to management was taken
over by Steve Jobs. Who was a tyrant on behalf of the
customers. Spending four years cleaning up the company
and throwing out employees who had no direct impact on
contributing to customer value. In 2001 Jobs had
changed the company and its culture and set it up for
large scale rapid innovation - and the story of its success is
widely known.
Put the most important
people into teams working
autonomously on the
customers most important
problems.
“As we confirmed in our “Next 30-Year Vision,” which we created in 2010,
our ultimate goal is to alleviate sadness and increase everyone's happiness to
the greatest extent possible through the Information Revolution.”
- letter from the CEO Message -
Google project ARA
THREE people, in one autonomous team, given two years to
revolutionize the mobile phone industry
- no red tape -
IMAGE SOURCE AND CONCEPT DESIGN BY:
HTTP://BLOG.MYLAPKA.COM/LAPKA-X-PROJECT-ARA/
HTTP://YOUTU.BE/UYMCZFLU-EA?T=17M25S
who are our most
important customerS,
and what is the most
important thing we
can do for them?
DISCUSS
WHAT IS MY RESPONSIBILITY
WHEN IT COMES TO THE
CUSTOMER EXPERIENCE, AND
HOW AM I DIRECTLY
CONTRIBUTING TO THE
CUSTOMER EXPERIENCE?
DISCUSS
In the end, the best customer experience wins, no matter who makes it - v.2
THANK YOU!
JOIN MY KNOWLEDGE
NETWORK. CONNECT OR
FOLLOW ME ON
LINKEDIN. HELGE TENNØ

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In the end, the best customer experience wins, no matter who makes it - v.2

  • 1. in the end, the best app wins, no matter who makes it”- ACCENTURE CUSTOMER EXPERIENCE HELGE TENNØ V. 2.0
  • 2. customer experience 2004 WEBSITE 2011 MOBILE FIRST 2015 information architecture User experience Analytics CloudIOT Mobile Collab. tech 2017 outcome economy MANAGEMENT CROSS-CHANNEL OMNI+DELIVERY+PRODUCT ACTIVE COLLABORATION PARTNERING WITH THE CUSTOMER EVERY DAY TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1 PASSIVE OFFER SALES & ZERO MOMENTS OF TRUTH CHANNEL 2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE
  • 4. RANK THE FOLLOWING LIST ACCORDING TO THE STRATEGIC WEIGHT THEY WIELD. 1.KEY EXTERNAL BUSINESS PARTNERS 2.NON-EXECUTIVE SENIOR LEADERSHIP 3.PARENT COMPANY 4.CORPORATE STRATEGY FUNCTION 5.CUSTOMERS 6.BOARD OF DIRECTORS 7.C-SUITE DISCUSS: ANSWER:IN2003CUSTOMERSCAME6TH,IN2013CUSTOMERSCAME2ND
  • 6. Consumers won’t accept anything besides a good customer experience from start to finish, and marketers continue to cater to such demands. In a January 2015 study by Econsultancy in association with Adobe, client- side marketers worldwide ranked the customer experience as the single most exciting opportunity in 2015, at 22% In order to execute these efforts, companies need to beef up customer experience teams. In a November 2014 study by the Economist Intelligence Unit (EIU), sponsored by Marketo, 27% of marketing execs worldwide said customer experience and engagement was a leading area where their companies needed to develop skills. http://www.emarketer.com/Article.aspx?R=1012015#sthash.J2KutBby.dpuf EXECS WANT TO MAKE CUSTOMER EXPERIENCE PERSONALIZED AND VALUABLE link
  • 7. Ed Thompson, an analyst at market research firm Gartner, says: “Between 5% and 10% of companies truly have a customer culture at their core, but the rest have been forced to care because all other means of differentiation have been eroded over time. That’s why it is currently a hot topic and has been very high on CEO agendas for the last three years or so.” In many consumer sectors, it has become increasingly difficult for organisations to really stand out from the crowd in terms of pricing, products or services.As a result, the last great bastion of differentiation in recent years has become that of customer experience – and that seems unlikely to change any time soon. “the rest have been forced to care because all other means of differentiation have been eroded over time.” HTTP://WWW.COMPUTERWEEKLY.COM/FEATURE/CUSTOMER-EXPERIENCE-MANAGEMENT-FIGURES-AS-WAY-TO-STAND-OUT link
  • 9. 1. HOW WILL WE WIN? THE CUSTOMER EXPERIENCE IS DIRECTLY LINKED TO THE BUSINESS STRATEGY - IT’S NOT OPERATIONAL OR ONLY DIGITAL. IT’S DEFINING THE COMPANY’S ROLE AND HOW WE ARE GOING TO CREATE WHAT VALUE FOR OUR CUSTOMERS IN ORDER TO WIN IN THE MARKET.
  • 10. “They are generally at chief operating officer level as this gives customer experience a board-level focus. HTTP://WWW.COMPUTERWEEKLY.COM/FEATURE/CUSTOMER-EXPERIENCE-MANAGEMENT-FIGURES-AS-WAY-TO-STAND-OUT Amanda Whittaker, a senior manager in management consultancy Deloitte Digital’s customer advisory practice, says: If the position is lower down, it tends to get buried in operational requirements.” link
  • 11. “As banks recover from the downturn, non- banks are taking advantage by proceeding aggressively with digital innovations and capturing more and more of the banking value chain,” - WIRED.com How Starbucks could replace your bank IMAGE: DAN R. KRAUSS/GETTY IMAGES link
  • 12. TESCO’S INVESTOR PRESENTATION MARCH 2014 PHOTO CREDIT: TESCO
  • 13. Where, he says; the company shifted its direction to Customer First and asked the question: How are we going to serve the customers better? The result is a proven success on all familiar business measurements, from shareholder return, growth and market share, to employee engagement and not least; customer value. Apple, almost bankrupt in 1997 after years of 20th century managerial approach to management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers. Spending four years cleaning up the company and throwing out employees who had no direct impact on contributing to customer value. In 2001 Jobs had changed the company and its culture and set it up for large scale rapid innovation - and the story of its success is widely known. link
  • 14. “As we confirmed in our “Next 30-Year Vision,” which we created in 2010, our ultimate goal is to alleviate sadness and increase everyone's happiness to the greatest extent possible through the Information Revolution.” - Letter from the CEO, Masayoshi Son - link
  • 15. “Customer experience … is a fundamental dimension of how a company competes.” - JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY - HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE link
  • 16. “Too many companies see customer experience as a slogan exercise. We realized that if we didn’t build our strategy around how customers experience our products, a start-up with that focus could eventually overtake us.” Philip Gerskovich, senior vice president, Zebra Technologies - HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE link
  • 17. THE COMPETITION AREN’T NECESSARILY THOSE WHO LOOK AND FEEL IDENTICAL TO YOU - THE MOST LETHAL COMPETITION COMES FROM THE OUTSIDE IF YOU ASKED A CONVENIENCE STORE IN OSLO IN 2012 WHAT THE BIGGEST THREAT WOULD BE IN 2013 THEY WOULD POINT TO THE OTHER SIDE OF THE STREET AND SAY - ‘IF A COMPETING CONVENIENCE STORE OPENS OVER THERE’. THE WORST THING THAT DID HAPPEN WAS THE MOBILEPHONE TICKET ORDERING APPLICATION FOR THE PUBLIC TRANSPORT COMPANY. THE PROBLEM BEING THAT THE STORES ALL KNEW ABOUT THE APP, BUT NOBODY DID ANYTHING BECAUSE THE THREAT DIDN'T LOOK IDENTICAL TO THEMSELVES. CUSTOMER EXPERIENCE vs. core business Ignoring the customer experience can produce great costs to core business.
  • 18. “Successful innovators care about solving interesting and important problems — innovation is merely a byproduct. If this distinction seems like hair-splitting, it isn’t. The two focuses create vastly different realities.” link
  • 19. HOW WILL WE WIN? WHAT IS THE CUSTOMER EXPERIENCE? HOW DOES IT DIRECTLY DELIVER ON/INFLUENCE THE BUSINESS STRATEGY? DISCUSS
  • 20. 2. PRECISION AND RELATIONSHIPS WHEN A CUSTOMER’S BUYING BEHAVIOR CHANGES THE TOOLS TO MOTIVATE THIS BEHAVIOR NEEDS TO ADAPT.
  • 22. COMMUNICATION IS A TOOL DESIGNED TO FIT THE BEHAVIORS OF THE CUSTOMER. WHEN THESE BEHAVIORS CHANGE THE COMMUNICATION NEEDS TO ADAPT. link
  • 23. THE AMOUNT OF RESEARCH THE CUSTOMER PERFORMS ONLINE INCREASES IF THE PRODUCT BEING PURCHASED MEANS SOMETHING TO US PERSONALLY, IF IT IS COMPLICATED OR IF IT IS EXPENSIVE. TNS-GALLUP http://www.tns-gallup.no/tns-innsikt/fra-somlos-multikanalhandel-til-totalhandel link
  • 24. 2009
  • 25. ACTIVE EVALUATION LOYALTY LOOP POST PURCHASE EXPERIENCE INFORMATION GATHERING, SHOPPING After purchasing a product or service the consumer builds expectations based on experience to inform the next decision journey The consumer considers an initial set of brands, based on brand perceptions and exposure to recent touch points Consumers add or subtract brands as they evaluate what they want Ultimately, the consumer selects a brand at the moment of purchase MOMENT OF PURCHASE INITIAL CONSIDERATION SET 1. 2. 3. 4. THE NEW SIRLOIN OF MARKETING 2009 TRADITIONALLY BRANDS ARE PRESENT IN THE GREEN DOTS. THESE ARE VERY EXPENSIVE PLACES TO BE. IN THE NEW AREAS (GREY BACKGROUND) COMPANIES CAN ACHIEVE GREAT THINGS BUT THIS REQUIRES A NEW TYPE OF MARKETING PRODUCT AND NEW FORMATS. link
  • 26. THE KNOWLEDGEABLE CUSTOMER PEOPLE AND COMPANIES HAVE CHANGED HOW THEY SHOP - AND OUR TOOLS NEED TO CHANGE WITH THEM IN B2B CUSTOMERS HAVE ALREADY COMPLETED 60% OF THEIR CUSTOMER JOURNEY BEFORE TALKING TO SOME COMPANIES. SALES BECOMES LESS ABOUT PRESENTING PRODUCT INFORMATION AND MORE ABOUT HELPING CUSTOMERS CREATIVELY IMPROVE THEIR BUSINESS POTENTIAL WITH THE PRODUCTS. link
  • 27. I asked Allen Nance, CEO of the email service provider Whatcounts, which area of sales development is the most important and he was emphatic that, “Data analysis is number one. I’ve had world-class sales development reps using bad data and it was unsuccessful. I’ve had mediocre reps calling great data and they’re successful. If you don’t have the right person to call, nothing else matters.” Stephen J. Meyer forbes.com http://www.forbes.com/sites/stevemeyer/2015/01/30/the-biggest-trend-in-sales-today-this-thing-called-sales-development/2/ Sales Development III link
  • 28. NEW HABITS AND BEHAVIORS CHANGE THE IMPORTANCE OF ESTABLISHED MECHANISMS EVEN IF THE EMOTIONAL DRIVERS FOR BUYING A CAR ARE SIMILAR TODAY AS IT WAS IN THE 1980’S, THE LOYALTY TOWARDS CAR BRANDS HAVE FALLEN FROM 60% TO 20% IN THE PERIOD. - THE REASON IS THE INTERNET. HOW PEOPLE ARE BUYING CARS ARE DIFFERENT, NOT WHY
  • 29. 0 COMMENT: INVESTMENTS ARE MOVING TOWARDS CHANNELS ENABLING THE NURTURING OF PERSONAL RELATIONSHIPS. TODAY THE CUSTOMERS ARE INDIVIDUALS, NOT MASSES. TECHNOLOGY TODAY ALLOWS FOR INDIVIDUALLY TAILORED COMMUNICATION TO MILLIONS OF CUSTOMERS AT THE SAME TIME. [HOW TO READ THE GRAPH: THE COLUMNS ON THE RIGHT HAND SIDE OF THE DOTTED LINE REPRESENTS THE NUMBERS FOR 2015, THE BLUE AND THE RED COLUMNS REPRESENT INCREASES (BLUE) AND DECREASES(RED) FROM 2012 TO 2015].
  • 30. INDIVIDUAL PATHS TO PURCHASE: In 2012, Google and Shopper Sciences did a study of the purchase journey of 3,000 different customers in tech, CPG, automotive, and finance, and literally found 3,000 different paths to purchase. However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each point along the way in the order and time that made the most sense to them. In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential vendor. http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html CUSTOMERS HAVE ALWAYS BEEN INDIVIDUALS, WE JUST HAVEN’T HAD THE DATA TO SEE IT / PROVE IT. link
  • 31. THIS IS THE FUTURE OF THE INTERNET, IT'S ALL ABOUT PERSONAL COMMUNICATION. THERE ISN'T ONE PORTAL OR ONE-SIZE-FITS-ALL WEBSITE, NO COMPANY WEBSITE OR MY-PAGE… VIDEO LINK: http://youtu.be/a6cNdhOKwi0
  • 32. THIS IS THE SAD STATE OF THE COMPANIES ONLINE CUSTOMER EXPERIENCE IN 2014. IT’S BC.
  • 33. vs. MAKE SURE YOU PICK THE PLATFORM THAT ENABLES WHAT YOU WANT TO ACHIEVE AND HOW YOU WANT TO GROW AND CULTIVATE YOUR CUSTOMER RELATIONSHIPS. IS THE WEB, MOBILE OR CARD (ETC.) THE RIGHT PLATFORM/ TECHNOLOGY FOR YOUR SPECIFIC NEEDS? HOW DOES THE ABILITIES OF EACH PLATFORM ENABLE REACHING WHICH GOALS?
  • 34. WHAT WOULD YOUR CUSTOMERS GAIN FROM a personal relationship? DISCUSS:
  • 35. 3. THE CUSTOMER AS A SIGNAL
  • 37. THE ARGUMENT AGAINST DEMOGRAPHICS For example, Progressive Insurance has always collected and analyzed a significant amount of data. But Snapshot, its innovative auto insurance discount program, “has taken things to a whole new level,” says Voelker. An in-car wireless device transmits driver data back to Progressive at one-second intervals. Customers can get their premiums reduced based on their safe-driving patterns, with those earning a discount saving an average of 10 percent. Progressive has collected more than 178 terabytes of data via Snapshot—11 times the amount of all data stored by the Library of Congress. It provides for a much more accurate pricing method for Progressive than estimating a customer’s potential for loss based on information like age, gender, and type of car, says Voelker. What’s more, it has enabled an entirely new and successful product category— usage-based auto insurance. “It’s revolutionary to us,” says Voelker. “Every time we find a more powerful segmentation variable, it drives more growth.”
  • 39. INDIVIDUAL PATHS TO PURCHASE: In 2012, Google and Shopper Sciences did a study of the purchase journey of 3,000 different customers in tech, CPG, automotive, and finance, and literally found 3,000 different paths to purchase. However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each point along the way in the order and time that made the most sense to them. In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential vendor. http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html link
  • 43. Treårsprojeksjonen fra SAS Institute er tydelig; vi trenger kommunikasjonsprodukter som ikke bare skaper omdømmeverdier, men som samtidig omsetter disse verdiene til andre virksomhetsmål. Vi trenger en verktøykasse som ser på kommunikasjonen som personlig og tilpasset. Vi trenger at kommunikasjon ikke bare handler om å distribuere innhold, men også å generere innsikt som gir oss økt forståelse slik at vi kan designe en fruktbar og langsiktig kunderelasjon. Og, vi trenger innsikt som gir oss en mulighet å ta de vågale valgene som kan posisjonere virksomheten for fremtiden. Helge Tennø, Ukeavisen Ledelse Nr. 2 2013 We need to use communication to generate insights and collect relevant data - as much as connecting with customers
  • 45. HOSPITALITY IDENTIFIES CUSTOMERS BASED ON HOW THEY BUY THE PRODUCT _ NOT HOW THEY EXPERIENCE IT.
  • 48. 5. MOTIVATION UNDERSTANDING THE ROLE OF DESIGN IN THE CUSTOMER EXPERIENCE.
  • 49. link
  • 50. FORRESTER'S RESEARCH SHOWS THAT GREAT CUSTOMER EXPERIENCE CORRELATES TO LOYALTY METRICS LIKE RETENTION, ENRICHMENT AND ADVOCACY. But it's difficult to build differentiated experiences based on what you think you know about your customers. Loyalty insights, combined with other sources of customer data, can help customer experience teams create and deliver personalized experiences that inherently exceed expectations. customer experience design HTTP://ADAGE.COM/ARTICLE/DIGITALNEXT/LOYALTY-PROGRAM-CREATING-LOYAL-CUSTOMERS/297029/ link
  • 51. “their online solution is so simple to use that I’m not going to change [brands] because of that” - retiree, 75 years old - “it was to complex, I don’t want to spend my time administrating what I want” - mom with small children -
  • 55. VIDEO LINK: HTTP://YOUTU.BE/XVT0MCUGB58 WRONG design / no design - kills No concept, no matter how brilliant, can withstand the impact of poor design.
  • 56. IF PEOPLE AREN’T BUYING YOUR PRODUCTS ON THEIR MOBILE, IT MIGHT AS WELL BE BAD DESIGN AND CUSTOMER EXPERIENCE HINDERING THEM FROM SHOPPING WHERE THEY WANT. Before After
  • 57. link
  • 58. link
  • 59. MOVE ON! THE WEBSITE HAS BECOME INFRASTRUCTURE -
  • 60. are we MOTIVATING CUSTOMERS WITH OUR CURRENT CUSTOMER EXPERIENCE? DISCUSS
  • 61. 6. PROGRAMMED CUSTOMER EXPERIENCE CUSTOMER RELATIONSHIPS AND INTERACTIONS ARE BECOMING PROGRAMMED. THIS INCREASES SCALABILITY, DATA GATHERING AND INDIVIDUALISATION. IT CHANGES THE WAY WE VIEW OUR PURPOSE. HOW WE CREATE VALUE AND WHERE WE SHOULD OPERATE IN ORDER TO CREATE WHICH VALUE FOR OUR CUSTOMERS.
  • 62. link
  • 65. “Microsoft Research has just announced a major milestone: Its software was able to identify the contents of 100,000 test images in ImageNet with a 4.94% error rate, while humans have scored a 5.1% error rate in the same test in the past. In other words, Microsoft hasn’t just beaten every competitor in the industry; they’ve beaten humans at their own game.”
  • 66. IF THE COMPUTER IS SO SMART, WHY DO I HAVE TO DO ALL THE WORK? VIDEO LINK: http://youtu.be/8ZtG5DX5FR0
  • 67. LEARN AND RE-LEARN PROGRAMMED CUSTOMER RELATIONSHIPS GIVES ORGANIZATIONS THE OPPORTUNITY TO LEARN AND RE-LEARN EVERYTHING THEY KNOW ABOUT THEIR CUSTOMERS - TO SHIFT THE PERCEPTION OF WHAT THE PRODUCT IS DOING AND GIVE NEW IDEAS TO WHAT IT SHOULD BE DOING. VIDEO LINK: http://youtu.be/uovijOpB7Jw
  • 69. THE ARGUMENT AGAINST DEMOGRAPHICS For example, Progressive Insurance has always collected and analyzed a significant amount of data. But Snapshot, its innovative auto insurance discount program, “has taken things to a whole new level,” says Voelker. An in-car wireless device transmits driver data back to Progressive at one-second intervals. Customers can get their premiums reduced based on their safe-driving patterns, with those earning a discount saving an average of 10 percent. Progressive has collected more than 178 terabytes of data via Snapshot—11 times the amount of all data stored by the Library of Congress. It provides for a much more accurate pricing method for Progressive than estimating a customer’s potential for loss based on information like age, gender, and type of car, says Voelker. What’s more, it has enabled an entirely new and successful product category— usage-based auto insurance. “It’s revolutionary to us,” says Voelker. “Every time we find a more powerful segmentation variable, it drives more growth.”
  • 70. I asked Allen Nance, CEO of the email service provider Whatcounts, which area of sales development is the most important and he was emphatic that, “Data analysis is number one. I’ve had world-class sales development reps using bad data and it was unsuccessful. I’ve had mediocre reps calling great data and they’re successful. If you don’t have the right person to call, nothing else matters.” Stephen J. Meyer forbes.com http://www.forbes.com/sites/stevemeyer/2015/01/30/the-biggest-trend-in-sales-today-this-thing-called-sales-development/2/ Sales Development III
  • 71. THE CONCENTRATED MODEL IMAGE BY SCARLETH MARIE ON FLICKR.COM WE TRY TO SOLVE PROBLEMS OR CREATE OPPORTUNITIES IN CONCENTRATED PLACES. AS AN EXAMPLE: MUCH OF RESTITUTION, OR PREVENTION WHEN IT COMES TO DISEASE HAPPENS OUTSIDE THE HOSPITAL. STILL A SIGNIFICANT MAJORITY OF INVESTMENTS IS ALLOCATED INSIDE THE BUILDING. WITH PROGRAMMED CUSTOMER RELATIONSHIPS WE CAN OFFER VALUE WHERE IT CAN GENERATE THE BEST EFFECT - NO MATTER WHERE THAT IS.
  • 72. 2. IN THE DIGITAL CUSTOMER ECONOMY COMPANIES GET TO CHOOSE WHAT KIND OF BUSINESS THEY ARE IN ACTIVE OR PASSIVE
  • 73. “The idea that customers benefit from engagement with their insurance needs is part of Progressive’s philosophy. Encouraging the use of products and services that foster active involvement, we can improve the experience for everyone.”
  • 74. Before the advent of modern information technology, products were mechanical and activities in the value chain were performed using manual, paper processes and verbal communication. The first wave of IT, during the 1960s and 1970s, automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource planning. (See “How Information Gives You Competitive Advantage,” by Michael Porter and Victor Millar, HBR, July 1985.) The productivity of activities dramatically increased, in part because huge amounts of new data could be captured and analyzed in each activity. This led to the standardization of processes across companies— and raised a dilemma for companies about how to capture IT’s operational benefits while maintaining distinctive strategies. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION https://hbr.org/2014/11/how-smart-connected-products-are- transforming-competition The rise of the internet, with its inexpensive and ubiquitous connectivity, unleashed the second wave of IT-driven transformation, in the 1980s and 1990s (see Michael Porter’s “Strategy and the Internet,” HBR, March 2001). This enabled coordination and integration across individual activities; with outside suppliers, channels, and customers; and across geography. It allowed firms, for example, to closely integrate globally distributed supply chains. The first two waves gave rise to huge productivity gains and growth across the economy. While the value chain was transformed, however, products themselves were largely unaffected. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION https://hbr.org/2014/11/how-smart-connected-products-are- transforming-competition Now, in the third wave, IT is becoming an integral part of the product itself. Embedded sensors, processors, software, and connectivity in products (in effect, computers are being put inside products), coupled with a product cloud in which product data is stored and analyzed and some applications are run, are driving dramatic improvements in product functionality and performance. Massive amounts of new product-usage data enable many of those improvements. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION https://hbr.org/2014/11/how-smart-connected-products-are- transforming-competition I II III
  • 75. WHAT MAKES SMART, CONNECTED PRODUCTS FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET, BUT THE CHANGING NATURE OF THE “THINGS”. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
  • 77. HOW CAN PROGRAMMED CUSTOMER EXPERIENCES IMPROVE THE PRODUCT AND THE JOB IT IS HELPING THE CUSTOMER PERFORM? PERSONAL & SCALABLE // UNBIASED // SMARTER // LEARNING // FRAGMENTED AND PERIPHERAL // ACTIVE DISCUSS
  • 78. 7. FROM CUSTOMER EXPERIENCE TO THE OUTCOME ECONOMY CUSTOMER EXPERIENCE IS A TIRED TERM DESIGNED TO FIT THE PASSIVE ROLE OF COMPANIES IN THE SHARE HOLDER ECONOMY - IT’S A PAT ON THE BACK AND: “AT LEAST WE TRIED - CUSTOMERS ARE JUST NOT INTERESTED”. IN THE OUTCOME ECONOMY THE GOAL OF AN ENTERPRISE IS THE MEASURABLE SUCCESS OF ITS CUSTOMERS.
  • 80. THE CUSTOMER EXPERIENCE IS: The totality of a customer’s personal interactions with a brand, over time. - DON PEPPERS - https://www.linkedin.com/pulse/defining-customer-experience-don-peppers WRONG?
  • 81. “Customer experience … is a fundamental dimension of how a company competes.” - Joseph Pine - HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
  • 82. “Too many companies see customer experience as a slogan exercise. We realized that if we didn’t build our strategy around how customers experience our products, a start-up with that focus could eventually overtake us.” - Philip Gerskovich, senior vice president, Zebra Technologies - HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
  • 84. THE CURRENT PRACTICE OF MANAGEMENT IS NOT ALIGNED TO A NEW WORLD WHERE CUSTOMERS SUDDENLY BECOME AN IMPORTANT STRATEGIC ASSET. COMPANIES HAVE BEEN DESIGNED TO KEEP CUSTOMERS OUT. BRAND, DESIGN AND ADVERTISING ARE ALL TOOLS TO SAFELY KEEP CUSTOMERS ON THE OUTSIDE. BUT, IF COMPANIES ARE TO REAP THE BENEFIT OF DELIGHTING CUSTOMERS - THEY NEED TO RETHINK / REDO THE WAY THEY MANAGE THEIR COMPANY.
  • 85. CUSTOMER INTERACTION DESICIONS AND STRATEGIES EFFICIENCY AND STANDARDIZATION THE CURRENT MODEL IS DESIGNED TO ALLOCATE DECISIONS AS FAR AWAY FROM WHERE THEY NEED TO BE MADE AS POSSIBLE. CREATING SLOW ORGANIZATIONS TAKEN HOSTAGE BY TOP MANAGEMENT.
  • 89. Starting with the customer they asked “what is the most important thing we can do for this customer”. And then they put the most important employees on the task of solving that most important problem. This was implemented across the whole organization with autonomous teams approaching different levels of problems. The result was outstanding, Salesforce for the fourth consecutive year, has been awarded the most Innovative Company by Forbes. Apple, almost bankrupt in 1997 after years of 20th century managerial approach to management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers. Spending four years cleaning up the company and throwing out employees who had no direct impact on contributing to customer value. In 2001 Jobs had changed the company and its culture and set it up for large scale rapid innovation - and the story of its success is widely known.
  • 90. Put the most important people into teams working autonomously on the customers most important problems.
  • 91. “As we confirmed in our “Next 30-Year Vision,” which we created in 2010, our ultimate goal is to alleviate sadness and increase everyone's happiness to the greatest extent possible through the Information Revolution.” - letter from the CEO Message -
  • 92. Google project ARA THREE people, in one autonomous team, given two years to revolutionize the mobile phone industry - no red tape - IMAGE SOURCE AND CONCEPT DESIGN BY: HTTP://BLOG.MYLAPKA.COM/LAPKA-X-PROJECT-ARA/
  • 94. who are our most important customerS, and what is the most important thing we can do for them? DISCUSS
  • 95. WHAT IS MY RESPONSIBILITY WHEN IT COMES TO THE CUSTOMER EXPERIENCE, AND HOW AM I DIRECTLY CONTRIBUTING TO THE CUSTOMER EXPERIENCE? DISCUSS
  • 97. THANK YOU! JOIN MY KNOWLEDGE NETWORK. CONNECT OR FOLLOW ME ON LINKEDIN. HELGE TENNØ