Say you work for a company that makes wool clothing. For a few years, you've been in charge of herding the sheep: making sure that they are fed and cared for, hang out in the right pastures, and show up on time for their shaves. That's content management. One day, you get a new assignment. Now you're in charge of customer satisfaction. You have to stop thinking (so much) about sheep (which are, finally, pretty much all the same) and start thinking about humans, with their quirks and differences and crazy idiosyncrasies. What do they want? Just a warm sweater, or a fashion statement? What devices do they use to research a purchase? Do they seek their friends' advice, and where? Given all of that, how do you get them the wool (remember the sheep?) that they want, in the form they want it, when they want it? Tim Walters, Digital Clarity Group welcome's you to the world of Digital marketing and Customer Experience Management in this presentation.

1. The Transition From WCM to CEM
Magnolia Conference 2014 Basel | 25 June 2014
Tim Walters, Ph.D. | Partner, Principal Analyst
twitter: tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com

2. The Transition From WCM to CEM
Magnolia Conference 2014 Basel | 25 June 2014
Tim Walters, Ph.D. | Partner, Principal Analyst
twitter: tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com
>
but inescapable, irresistible
and utterly imperative
>

3. DCG helps business leaders
navigate the digital
transformation and create
competitive advantage from
disruption.
3
About Digital Clarity Group
@$m_walters
@just_clarity

4. 4
@$m_walters

5. 5
Yearning to kill the messenger

6. June 28, 2007
6

7. 7

8. 8

9. 9
The compression of time and space

10. 10

11. 11

12. 12

13. § Accelerated flow of information
§ Democratized production of information
§ Dissolved monopoly over information
“As the industrial revolution was defined by radical efficiency in
production, the digital revolution is defined by radical efficiency
in information transmission”
-- Mike Aruz
(e.g., Uber, Airbnb)
13
The deformation of information

14. 14
What do consumers think of us?
@$m_walters

15. Twitter trumps condiments
15
Source:
h@p://www.newmediaandmarke$ng.com/brands-­‐have-­‐to-­‐master-­‐complaint-­‐management/customer-­‐complaints-­‐561

16. Only
16
1%
feel
their
expecta$ons
for
good
customer
service
are
always
met
Source:
Haaris
Interac$ve
survey
of
North
American
consumers,
2011.
Commissioned
by
RightNow.
@$m_walters

17. 17
Say they have switched business
to a competitor due to poor
customer experience
Source:
Haaris
Interac$ve
survey
of
North
American
consumers,
2011.
Commissioned
by
RightNow.
@$m_walters

18. 18
Say they will pay a premium for
great customer experience
Source:
Haaris
Interac$ve
survey
of
North
American
consumers,
2011.
Commissioned
by
RightNow.
@$m_walters

19. 19
Source:
Okeeffe
&
Company
survey
of
1,342
senior
execu$ves,
2012.
Commissioned
by
Oracle.
Global executives say the cost of
not providing “positive, consistent,
and brand relevant experiences” is
20% of total revenue@$m_walters

20. 20
$1.25
million
per
year
@$m_walters
Source:
h@p://www.weirdworldfacts.com/smart-­‐dogs-­‐with-­‐amazing-­‐jobs/

21. $89 billion“is lost by US retailers each year because of customer
defection or abandoned purchases due to poor
experiences”
21
IBM says . . .
Source:
www.mycustomer.com/feature/experience/jim-­‐glazer-­‐ibm-­‐store-­‐s$ll-­‐pivotal-­‐customer-­‐experience/165159

22. How much is at stake?
$5,900,000,000,000
($5.9 trillion)
22
Source:
Accenture,
2013
Global
Consumer
Pulse
Research.
Photo:
h@p://www.t-­‐na$on.com/free_online_ar$cle/most_recent/
train_like_a_man_5_the_real_paleo_exercise

23. #CEM isn’t the Next Big
Thing. It is the Next Only
Thing. #provocation
23

24. 24
What do consumers want from us?
@$m_walters

25. of consumers are frustrated by site content
that has nothing to do with their interests
25
Source:
Harris
Interac$ve
survey
of
2,091
U.S.
consumers,
2013.
@$m_walters

26. 79% Companies
“asking
same
ques$ons
or
marke$ng
same
offer”
across
channels
Sources of consumer frustration
65% Inconsistent
offers
or
content
79% Companies
“se_ng
false
promises”
Source:
Accenture
Global
Consumer
Pulse
Report,
2014.
@$m_walters

27. of consumers say that personalization
influences what they purchase – 25% say
the influence is “significant”
27
Source:
Vanson
Bourne
survey
of
US
consumers,
2013.
@$m_walters

28. 28
Consumers expect insight
Source:
Dynamic
Markets
study
for
Experian,
January
2012.
“Understanding”
means, e.g.,
“taking account of
preferences,
purchase history,
and other provided
information.”
84% said they
would no longer
buy from a
company that
failed to
“understand.”
@$m_walters

29. We are anxious about
privacy . . . but we want
companies to offer relevant
experiences based on our
wants, needs, and tasks.
29
Source:
h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-­‐CRM-­‐to-­‐the-­‐Customer-­‐Managed-­‐Rela$onship

30. #CEM means: Embracing
the shift from #CRM to
#CMR – customer managed
relationshps. (Thanks to
@collsdad)
30
Source:
h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-­‐CRM-­‐to-­‐the-­‐Customer-­‐Managed-­‐Rela$onship

31. 31
A strategic inflection point
Source:
Based
on
Andy
Grove,
Only
the
Paranoid
Survive,
1996
@$m_walters

32. “Strategic inflections can come from
anywhere: new technologies, new
competition, new regulations, new
customer values and habits, etc. – anything
that has a significant impact on the
business itself or the industry as a whole.”
– Andy Grove
32

33. 33
CEM is today’s “fundamental” SI
Business
success
STATUS
QUO
Business
failure
§ Digital disruptions
§ Era of empowered consumers
§ Basic shift in the business environment
§ Impacts every firm, regardless of industry
Impact:
Failure
to
provide
superior
customer
experiences
leads
to
irrelevance
and
business
decline
@$m_walters

34. 34
Source:
Forrester’s
Website
User
Experience
Reviews,
November
1999
through
January
2012
WCM was hard

35. 35
Source:
Forrester’s
Website
User
Experience
Reviews,
November
1999
through
January
2012

36. #CEM is not just
somewhat harder WCM.
36

37. 37
WCM is old paradigm
Source:
Based
on
Andy
Grove,
Only
the
Paranoid
Survive,
1996
@$m_walters
§ Web-centric
§ Page/publishing mentality
§ Insufficient tagging
§ Not “minimal” enough

38. 38
COPE = Create Once Publish Everywhere
Content
Web
Print
Social
App
RSS
Video
Thanks
to
Deane
Barker.
See:
h@p://www.slideshare.net/blendinterac$ve/copeing-­‐mechanism-­‐the-­‐peril-­‐and-­‐promise-­‐of-­‐create-­‐once-­‐
publish-­‐everywhere
Deane
Barker,
Blend
Interac$ve
Karen
McGrane,
karenmcgrane
.com

39. 39
CEM is COPE-IER = COPE for segments, in
journey stages
Content
Social
Video
Print
Web
App
RSS
Thanks
to
Deane
Barker.
See:
h@p://www.slideshare.net/blendinterac$ve/copeing-­‐mechanism-­‐the-­‐peril-­‐and-­‐promise-­‐of-­‐create-­‐once-­‐
publish-­‐everywhere
A
B
C
D
B
C
B
C

40. “We can’t afford to be thinking about creating
content for any one platform. We can’t be thinking
about crafting a website. Instead, we have to think
about how are we going to put more effort into
crafting the description of our content, how are we
going to put more effort into explaining all the
different bits of our assets. And what that’s going to
allow us to do is reuse our content more effectively
and get more value out of it.” – Nic Newman, BBC
40
It’s all about Adaptive Content
Thanks
to
Karen
McGrane
See:
h@p://karenmcgrane.com/2012/09/04/adap$ng-­‐ourselves-­‐to-­‐adap$ve-­‐content-­‐video-­‐slides-­‐and-­‐
transcript-­‐oh-­‐my/once-­‐publish-­‐everywhere

41. § Structure
§ Purity
§ Intelligence
41
Omnichannel CEM needs content
with:

42. STRUCTURE
§ MRU (“minimum reasonable
unit,” re Deane Barker)
§ Discrete, flexible, agile, freely
combinable, reusable experience
assets
42

43. PURITY
§ WYSIWYG? Seriously?
§ Create messages, narrative
elements, “engagement
legos” – not pages, print, or
any other format
43

44. 44
Thanks
to
Deane
Barker.
See:
h@p://www.slideshare.net/blendinterac$ve/copeing-­‐mechanism-­‐the-­‐peril-­‐and-­‐promise-­‐of-­‐create-­‐once-­‐
publish-­‐everywhere

45. INTELLIGENCE
§ Experience architecture(s)
§ Taxonomy, metadata, tagging
§ Governance
§ Describe/track/verify how, when,
where, why assets have been
combined/deployed, and to what effect
45

46. 46

47. § Accenture surveyed over 13,000 consumers
in 33 countries about 10 industries and
determined:
– Despite investments and initiatives, no CX metric
“has improved consistently in the past five
years.”
– All metrics “lost ground in 2013”
– Companies “have been playing not to lose”
47
Answer: You suck
Source:
Accenture
Global
Consumer
Pulse
Report,
2014.
@$m_walters

48. 48
Can “CX” be “M”d?
Source:
h@p://www.bedeckhome.com/sloane-­‐towels-­‐2-­‐colours.html

49. § Customer experience (CX) is how customers perceive the totality of a their interactions
with a company or brand. Note that in this definition, "customer" refers equally to
prospects – those who have not yet conducted a transaction with the company – and that
the “totality” of interactions includes all channels and touch points over the entire life of
the relationship.
§ As a business discipline, customer experience management (CEM) refers to the strategies,
processes, skills, technologies, and commitments that aim to ensure positive and
competitively outstanding customer experiences.
§ With reference to technology, CEM includes the array of software tools that organizations
use to create, store, deploy, analyze, and optimize the aggregations of digital assets that
make up the user experiences on digital channels.
49
Unpacking CX and CEM
@$m_walters

50. #CEM means: Judging
CEM tech and practices
from the customer’s
(ad)vantage point.
50

51. 51
Johanna Maria Christina Snel
Three vectors of experience
§ Environment – The thing/product
experienced
§ Encounter – The interaction
between the product and person
§ Effect – A person’s response
to the encounter
Source:
h@p://books.google.com/books/about/For_the_Love_of_Experience.html?id=u98ZkgEACAAJ

52. You create experiences
(environments) that are
experienced (interaction)
and form an experience
(subjective perception).
52
In short:

53. We say that #CEM is about the
effect (perception), but we
should realize that it is about the
environment (product).
(Because the things we offer to be experienced
can be managed, but the reaction cannot be.)
53

54. Customer insight + brand story
= experience assets
Experience assets + interaction
= customer perception = CX
54

55. #CEM means: Managing
the delta between your
intent and the customer’s
perception.
55

56. 56
You can’t do it alone.
Source:
h@p://silence-­‐without.blogspot.de/2010_12_01_archive.html

57. “CEM is so new, hard, and
complex that nearly all
organizations must draw on
third-party service providers to
provide or supplement skills in
research, strategy, design,
technology, operations, and
much more. In short, service
provider partners increasingly
provide an indispensable
ingredient in any CEM
endeavor.”
57

58. § Touchpoints (web site, app, call center) are too specific
§ Customer lifecycle is too unpredictable
§ Customer journey is just right – it combines end-to-end
experience with clear outcomes and team
responsibilities
58
Where to start?
@$m_walters

59. 59
Selected journeys (McKinsey)

60. § Identify customer goals/needs
§ Map the journey
§ Determine/assign responsibilities
§ Measure current effectiveness/satisfaction
§ Identify flows and gaps for social support
§ Organize and/or network team(s) for complete
journey
§ Refine and optimize
§ Learn, repeat, expand
60
The road to CEM reality begins
tomorrow (or anyway, after the party)
@$m_walters

61. 61
“You may hate gravity, but
gravity does not care.”
-- Clayton Christensen

62. Tim Walters | Partner, Principal Analyst
@tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com