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One Customer. One Experience. One Enterprise
Customer Experience Management
SAP 360 Customer Forum
Nicholas Kontopoulos | Senior Global Marketing Director
8th of March, 2013 | Hong Kong
A little bit more about me…




                              @Nicholask71
and what makes me tick.




                          @Nicholask71
@Nicholask71
@Nicholask71
@Nicholask71
Passionate about my customers
My objective today is to…
One Customer, One Experience, One Enterprise
Fire-up your
brain juices
The   Impact that the


Digital Customerlook	
  at	
  the	
  imapct	
  that	
  the	
  age	
  
    By	
  taking	
  a	
  
    of	
  the	
  “Digital	
  Customer”	
  is	
  having	
  on n	
  your	
  
                                                  is having o the
                              businesses   	
  
                                                      Enterprise
One Customer, One Experience, One Enterprise
OP + NT = EOP
One Customer, One Experience, One Enterprise
"If you keep on doing what you've always done,
you'll keep on getting what you've always got.”  




                                       Who said it?: W L Bateman
One Customer, One Experience, One Enterprise
One Customer, One Experience, One Enterprise
Inefficiencies

  Bureaucracy

Lack of innovation
“40%   of the companies that were at the
       top of the Fortune 500 in 2000
       were no longer there in 2010”
Who
is	
  the	
  21st-­‐century	
  customer?	
  
The Good Old Days
The 20th century was all about telling
customers what they wanted…
There has been a
Revolution
Customers No Longer Passive




  The are Now Armed to the teeth
The	
  Digital	
  Revolu9on	
  
is	
  changing	
  the	
  future	
  
of	
  business,	
  media	
  and	
  
culture.	
  
Your customers are becoming

Digital Natives
Technology is helping spread the
word and thus giving a voice
to the customer.
Digital Darwinism
when	
  technology	
  and	
  society	
  evolve	
  faster	
  
than	
  the	
  ability	
  for	
  companies	
  to	
  adapt	
  




                                                                Who said it?: Brian Solis
The customer is
now driving the
conversation
       	
  
One Customer, One Experience, One Enterprise
One Customer, One Experience, One Enterprise
OP + NT = EOP
Dude, its not all about the technology…
21 st-century
customers require

        a


21st-century
management response
One Customer, One Experience, One Enterprise
History Lesson on Management 1.0
1890:
90% of the then developed world worked
in agriculture & the average manufacturing
firm employed 4   employees.
1915:
Ford was making a ½ million cars and
US Steel was the first company in history to
Turnover $1b a year.
History Lesson on Management 1.0
1920:
By this time most of the tools for modern
management have been created:

 Pay for Performance
 Capital Budgeting
 Task Design
 Divisionalization
 Brand Management
Since then the way we manage has hardly
changed.
Old Engagement Model
        Sales Funnel




                       Source: St. Elmo Lewis 1898
New Engagement Model
Time for a Enterprise Reboot
We need to rethink our marketing and sales
strategies. Lets start with binning the concept of..



             a go-to-market strategy


  and replace it with…


                 a go-to-customer strategy.
Customer Experience Management
Just	
  because	
  you	
  have	
  customers	
  doesn't	
  mean	
  you're	
  


Customer Centric
The “value added” for most any
company, tiny or enormous,
comes from the quality of the
experience provided.”


                          – Tom Peters
Customer-Intimacy: Key CEO Focus
Top focus areas in next five years




      Source: 2010 IBM Global CEO Study: Capitalizing on Complexity
Customer Experience: "The	
  customer's	
  
percepCons	
  and	
  related	
  feelings	
  caused	
  by	
  the	
  one-­‐off	
  
and	
  cumulaCve	
  effect	
  of	
  interacCons	
  with	
  a	
  supplier's	
  
employees,	
  systems,	
  channels	
  or	
  products.“	
  




                                                                                  Source:	
  Gartner	
  	
  
“Or,	
  the	
  aggregated memories of	
  every	
  
touch	
  a	
  customer	
  has	
  with	
  your	
  company”	
  
Customer Experience Management:
“The	
  pracCce	
  of	
  designing	
  and	
  reacCng	
  to	
  customer	
  
interacCons	
  to	
  meet	
  or	
  exceed	
  customer	
  expectaCons	
  to	
  
increase	
  customer	
  	
  saCsfacCon,	
  loyalty	
  and	
  advocacy”	
  




                                                                          Source: Gartner
“Or,	
  delivering	
  a	
  consistent customer
experience across	
  the	
  enCre	
  enterprise”	
  
PM + PK = T
One Customer, One Experience, One Enterprise
Promises made + Promises kept =
Every sales has five basic
obstacles: no need, no money,
no hurry, no desire, and

no trust.”
                          – Zig Ziglar
the	
  reality	
  is	
  customers	
  have	
  never	
  had	
  a	
  greater	
  
choice	
  of	
  vendors	
  to	
  select	
  from.
“Its now your
obligation to
           study how, where & why
           customers are connecting
                        and how they’re making and
                        influencing decisions”


                                        Who said it?: Brian Solis
“It takes a mere 5% of
“Informed individuals” to
influence the direction of a
crowd of up to two hundred
people.”
Professor Jens Krause, Leeds University
“Respondents time after
time end up concluding that
they lead the group – even
though they were lead by
others”
Professor Jens Krause, Leeds University
People make   decisions based…




                                 on the shared experiences of others.
Ok,	
  but	
  where	
  do	
  we	
  start	
  then?	
  
You need a strategy
“Everybody has a plan
until they get punched in
the face" Mike Tyson
Get back to basics
Quick-fire questions to
consider.


                                                                          ?
	
  Who	
  are	
  we	
  and	
  who	
  do	
  we	
  want	
  to	
  be?	
  
	
  How	
  do	
  our	
  customers	
  perceive	
  us	
  
	
  
  today	
  and	
  how	
  do	
  we	
  want	
  them	
  
  to	
  view	
  us	
  tomorrow?	
  

  What	
  are	
  the	
  most	
  influenCal	
  
  drivers	
  of	
  the	
  sales	
  experience?	
  
Quick-fire questions to
consider.


                                                             ?
Do	
  we	
  know	
  who	
  our	
  most	
  valuable	
  	
  
customers	
  are?	
  	
  
Are	
  we	
  able	
  to	
  spot	
  changes	
  in	
  
purchasing	
  behaviour?	
  

What	
  acCons	
  are	
  your	
  sellers	
  doing	
  
which	
  may	
  result	
  in	
  a	
  negaCve	
  sales	
  
impact?	
  
7	
  Steps	
  to	
  get started with	
  CEM	
  


§    Build	
  a	
  cross-­‐funcConal	
  work	
  team	
  
                             Where to start?
§    Define	
  key	
  elements	
  of	
  a	
  strategy	
  
§    Map	
  the	
  customer	
  journey	
  
§    Consolidate	
  customer	
  data	
  collecCon/VoC	
  
§    Create	
  a	
  governance	
  mechanism	
  
§    Map	
  the	
  customer	
  experience	
  ecosystem	
  
§    Select	
  Projects	
  that	
  build	
  momentum

                                                Source: 1to1 Media 7 Steps to Get Started With Customer Experience
OP + NT = EOP
Ok,	
  but	
  how	
  does	
  Enterprise CRM fit	
  into	
  
Customer	
  Experience	
  Management	
  then?	
  
CRM
We	
  can	
  design	
  &	
  deliver	
  you	
  a	
  world	
  class	
  	
  

CRM strategy
no	
  problems…	
  
Complexity   	
  
             	
  
One Customer, One Experience, One Enterprise
Excess baggage
CRM is	
  not	
  about	
  
           	
  

soZware…	
  




                             …it	
  is	
  an	
     ideology
connecting	
  people…	
  
It	
  is	
  about	
  




                  employees                     customers
it	
  is	
  about	
  

delighting              your
customers	
  
and	
  seeing	
  them	
  as	
  more	
  than	
  just	
  a	
  number…	
  

                                                   Account number: 23058399	
  


                                                Transaction number:	
  00092374	
  


                                                  Complaint number: CP09938	
  


                                                     Revenue number:	
  €	
  	
  	
  	
  $	
  	
  	
  £	
  
…and as companies most

Valuable asset
Avoid	
  becoming	
  one	
  of	
  these	
  staCsCcs	
  
 by	
  rethinking	
  your	
  CRM	
  strategy	
  	
  

 §  25%	
  of	
  firms	
  reported	
  that	
  poorly	
  defined	
  business	
  
      requirements	
  having	
  a	
  negaCve	
  impact	
  on	
  projects	
  
 §  48%	
  surveyed	
  admiged	
  they	
  suffered	
  technical/integraCon	
  
      difficulCes	
  
 §  31%	
  of	
  firms	
  reported	
  that	
  poor	
  business	
  process	
  design	
  
      accounted	
  for	
  project	
  failures	
  
 §  21%	
  of	
  businesses	
  stated	
  the	
  need	
  to	
  customise	
  CRM

Source: Computer Weekly.com – Forrester: rethink your CRM strategy
CRM Success Factors:
Strategy,	
  Process,	
  Technology,	
  And	
  People	
  




February 2012 “Navigate The Future Of CRM”
Traditional                              True 360° Customer
Siloed Front-Office CRM                      Engagement Beyond CRM

              Service
                         Marketing


    Billing/
    Accounts                        Sales
    Receivable

    Ship/                         Select
    Ensure                        Product/
    Fulfillment                   Quote
                         Order/
              Procure/   Credit
              Build
                         Check




      Internal-focused KPIs
                                                   Customer-focused KPIs
•  Average call handling time
                                              •  First contact resolution rate
•  Number of cold calls per hour
                                              •  Customer referral rate
•  Number of leads generated
                                              •  Unsolicited customer inquiries
Its	
  about	
  inviCng	
  and	
  integraCng	
  the	
  customer	
  	
  
into	
  your	
  enterprise,	
  this	
  is	
  the	
  definiCon	
  of	
  

customer centricity
CEM + CRM =
Customer Intimacy
One customer, one enterprise,
One experience.
OP + NT = EOP
IT ALL STARTS WITH EMPOWERING PEOPLE

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One Customer, One Experience, One Enterprise

  • 1. One Customer. One Experience. One Enterprise Customer Experience Management SAP 360 Customer Forum Nicholas Kontopoulos | Senior Global Marketing Director 8th of March, 2013 | Hong Kong
  • 2. A little bit more about me… @Nicholask71
  • 3. and what makes me tick. @Nicholask71
  • 11. The Impact that the Digital Customerlook  at  the  imapct  that  the  age   By  taking  a   of  the  “Digital  Customer”  is  having  on n  your   is having o the businesses   Enterprise
  • 13. OP + NT = EOP
  • 15. "If you keep on doing what you've always done, you'll keep on getting what you've always got.”   Who said it?: W L Bateman
  • 19. “40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010”
  • 21. The Good Old Days
  • 22. The 20th century was all about telling customers what they wanted…
  • 23. There has been a Revolution
  • 24. Customers No Longer Passive The are Now Armed to the teeth
  • 25. The  Digital  Revolu9on   is  changing  the  future   of  business,  media  and   culture.  
  • 26. Your customers are becoming Digital Natives
  • 27. Technology is helping spread the word and thus giving a voice to the customer.
  • 28. Digital Darwinism when  technology  and  society  evolve  faster   than  the  ability  for  companies  to  adapt   Who said it?: Brian Solis
  • 29. The customer is now driving the conversation  
  • 32. OP + NT = EOP
  • 33. Dude, its not all about the technology…
  • 34. 21 st-century customers require a 21st-century management response
  • 36. History Lesson on Management 1.0 1890: 90% of the then developed world worked in agriculture & the average manufacturing firm employed 4 employees. 1915: Ford was making a ½ million cars and US Steel was the first company in history to Turnover $1b a year.
  • 37. History Lesson on Management 1.0 1920: By this time most of the tools for modern management have been created: Pay for Performance Capital Budgeting Task Design Divisionalization Brand Management Since then the way we manage has hardly changed.
  • 38. Old Engagement Model Sales Funnel Source: St. Elmo Lewis 1898
  • 40. Time for a Enterprise Reboot
  • 41. We need to rethink our marketing and sales strategies. Lets start with binning the concept of.. a go-to-market strategy and replace it with… a go-to-customer strategy.
  • 43. Just  because  you  have  customers  doesn't  mean  you're   Customer Centric
  • 44. The “value added” for most any company, tiny or enormous, comes from the quality of the experience provided.” – Tom Peters
  • 45. Customer-Intimacy: Key CEO Focus Top focus areas in next five years Source: 2010 IBM Global CEO Study: Capitalizing on Complexity
  • 46. Customer Experience: "The  customer's   percepCons  and  related  feelings  caused  by  the  one-­‐off   and  cumulaCve  effect  of  interacCons  with  a  supplier's   employees,  systems,  channels  or  products.“   Source:  Gartner    
  • 47. “Or,  the  aggregated memories of  every   touch  a  customer  has  with  your  company”  
  • 48. Customer Experience Management: “The  pracCce  of  designing  and  reacCng  to  customer   interacCons  to  meet  or  exceed  customer  expectaCons  to   increase  customer    saCsfacCon,  loyalty  and  advocacy”   Source: Gartner
  • 49. “Or,  delivering  a  consistent customer experience across  the  enCre  enterprise”  
  • 50. PM + PK = T
  • 52. Promises made + Promises kept =
  • 53. Every sales has five basic obstacles: no need, no money, no hurry, no desire, and no trust.” – Zig Ziglar
  • 54. the  reality  is  customers  have  never  had  a  greater   choice  of  vendors  to  select  from.
  • 55. “Its now your obligation to study how, where & why customers are connecting and how they’re making and influencing decisions” Who said it?: Brian Solis
  • 56. “It takes a mere 5% of “Informed individuals” to influence the direction of a crowd of up to two hundred people.” Professor Jens Krause, Leeds University
  • 57. “Respondents time after time end up concluding that they lead the group – even though they were lead by others” Professor Jens Krause, Leeds University
  • 58. People make decisions based… on the shared experiences of others.
  • 59. Ok,  but  where  do  we  start  then?  
  • 60. You need a strategy
  • 61. “Everybody has a plan until they get punched in the face" Mike Tyson
  • 62. Get back to basics
  • 63. Quick-fire questions to consider. ?  Who  are  we  and  who  do  we  want  to  be?    How  do  our  customers  perceive  us     today  and  how  do  we  want  them   to  view  us  tomorrow?   What  are  the  most  influenCal   drivers  of  the  sales  experience?  
  • 64. Quick-fire questions to consider. ? Do  we  know  who  our  most  valuable     customers  are?     Are  we  able  to  spot  changes  in   purchasing  behaviour?   What  acCons  are  your  sellers  doing   which  may  result  in  a  negaCve  sales   impact?  
  • 65. 7  Steps  to  get started with  CEM   §  Build  a  cross-­‐funcConal  work  team   Where to start? §  Define  key  elements  of  a  strategy   §  Map  the  customer  journey   §  Consolidate  customer  data  collecCon/VoC   §  Create  a  governance  mechanism   §  Map  the  customer  experience  ecosystem   §  Select  Projects  that  build  momentum Source: 1to1 Media 7 Steps to Get Started With Customer Experience
  • 66. OP + NT = EOP
  • 67. Ok,  but  how  does  Enterprise CRM fit  into   Customer  Experience  Management  then?  
  • 68. CRM
  • 69. We  can  design  &  deliver  you  a  world  class     CRM strategy no  problems…  
  • 70. Complexity    
  • 73. CRM is  not  about     soZware…   …it  is  an   ideology
  • 74. connecting  people…   It  is  about   employees customers
  • 75. it  is  about   delighting your customers  
  • 76. and  seeing  them  as  more  than  just  a  number…   Account number: 23058399   Transaction number:  00092374   Complaint number: CP09938   Revenue number:  €        $      £  
  • 77. …and as companies most Valuable asset
  • 78. Avoid  becoming  one  of  these  staCsCcs   by  rethinking  your  CRM  strategy     §  25%  of  firms  reported  that  poorly  defined  business   requirements  having  a  negaCve  impact  on  projects   §  48%  surveyed  admiged  they  suffered  technical/integraCon   difficulCes   §  31%  of  firms  reported  that  poor  business  process  design   accounted  for  project  failures   §  21%  of  businesses  stated  the  need  to  customise  CRM Source: Computer Weekly.com – Forrester: rethink your CRM strategy
  • 79. CRM Success Factors: Strategy,  Process,  Technology,  And  People   February 2012 “Navigate The Future Of CRM”
  • 80. Traditional True 360° Customer Siloed Front-Office CRM Engagement Beyond CRM Service Marketing Billing/ Accounts Sales Receivable Ship/ Select Ensure Product/ Fulfillment Quote Order/ Procure/ Credit Build Check Internal-focused KPIs Customer-focused KPIs •  Average call handling time •  First contact resolution rate •  Number of cold calls per hour •  Customer referral rate •  Number of leads generated •  Unsolicited customer inquiries
  • 81. Its  about  inviCng  and  integraCng  the  customer     into  your  enterprise,  this  is  the  definiCon  of   customer centricity
  • 82. CEM + CRM = Customer Intimacy
  • 83. One customer, one enterprise, One experience.
  • 84. OP + NT = EOP
  • 85. IT ALL STARTS WITH EMPOWERING PEOPLE
  • 91. Can Marketing Lift Stock Prices? Used analytics to determine “Customer lifetime value” 5 years of data was crunched for two Fortune 1,000 companies (B2B & B2C). 9 month field experiment using specific marketing strategies based on the “customer lifetime value” of each customer or customer segment. 90% of both companies profits were being generated by 20% of their clients.
  • 92. Can Marketing Lift Stock Prices? B2B company stock increased 33% nine months after experiment. Top 3 competitors stock increased 12%. B2C company stock increased 58% nine months after experiment. The top 3 competitors stock increased 15%.
  • 93. Unleash Customer Value Intelligence
  • 95. Facebook More than 1 billion active users Twitter More than 200 million active users Average user has 130 friends Search queries per day 800,000 700 billion minutes spent per month 65 million tweets a day Youtube More than 2 billion views per day 24 hours of video uploaded every minute Each user spends 15 minutes per day What Organizations think of Social Media? Social Media is Real but Overwhelming!
  • 96. Few Businesses Have Adjusted Their Social Media Strategy Businesses either don’t or cannot respond to customers in a timely manner
  • 97. Social Data at your finger tips
  • 98. 90% of  word-­‐of-­‐mouth  conversaCons   about  brands  take  place  offline…   primarily face-­‐to-­‐face,  in   people’s  homes  and  offices,  in  restaurants   and  stores,  really…   anywhere people   congregate.   Source: KellerFayGroup
  • 100. Did you know   ?     87% firms say that 3 or more people are needed to be engaged for each sales effort Source: CSO Insights
  • 101. One Team = Collaboration “You lose” “We win” (LESS) (MORE)
  • 102. Be informed with less effort
  • 105. 2012: 327M U.S. mobile phones 2015: mobile phones primary computing device 2013: mobile phones have taken over PC as preferred device to access the internet We are now living in an always on, connected world
  • 106. The Future: Internet of Things
  • 107. The number of mobile workers isgrowing faster than the overall workforce.” User Survey Analysis: Remote Worker Communications Applications and Services, Worldwide
  • 108. Omni Channel Building a connected engagement platform
  • 109. Your Customers don’t clock off at 5pm 24/7 brands
  • 110. Todays Customer Wants Instant Gratification
  • 111. 1.5 Billion Millennials globally Coming of age: In 2011 the youngest hit their mid-teens & the oldest entered their 30’s Youth Quake Gen Y impact
  • 112. Nicholas, sounds great in theory, but who’s transformed their go-to-customer strategy successfully?
  • 113. CEMEX CEM strategy delivered real tangible results to its customers and shareholders: n  99.9% accuracy on order-entry transactions n  99% cement delivery record with no service issues n  30% ROI based on efficiency improvements and incremental sales n  29% more volume with the same headcount in customer care center – Reduced Operating Costs n  Increased customer satisfaction Ven Bontha, n  Increase revenues - delivering sustained growth for Director – Customer Experience, shareholders   CEMEX USA
  • 115. OP + NT = EOP
  • 116. Change is the biggest obstacle But, change has now changed, it is now… Ever surprising Unrelenting Unforgiving Only going to get faster & faster & faster…
  • 117. “Adapt or Die”
  • 118. There is no single silver bullet solution
  • 119. Avoid diet pill approach Short Term Gains
  • 120. Beware of island solutions
  • 121. BUILD A CONNECTED ENTERPRISE BY BRINGING TOGETHER PEOPLE + PROCESS + TECHNOLOGY
  • 123. Traditional True 360° Customer Siloed Front-Office CRM Engagement Beyond CRM Service Marketing Billing/ Accounts Sales Receivable Ship/ Select Ensure Product/ Fulfillment Quote Order/ Procure/ Credit Build Check Internal-focused KPIs Customer-focused KPIs •  Average call handling time •  First contact resolution rate •  Number of cold calls per hour •  Customer referral rate •  Number of leads generated •  Unsolicited customer inquiries
  • 125. Customer Intimacy Everything begins & ends with your customer. 1 It all starts with passion & purpose 2 It’s now the age of the Digital Customer 3 Time for a new Strategy 4 Avoid making the same mistakes 5 Innovate at the cold face
  • 126. Choosing to Ignore Your Customers is Not a Solution Customers  have  Virtual  Megaphones  to  Broadcast  Their  Dissa9sfac9on   “The company’s attempt at recovery should be swift and its apology perceived as sincere, [but] Timing is everything!” † MIT SMR “When Unhappy Customers Strike Back on the Internet” Jan 2011
  • 127. Vision Customer Journey Core team Platforms Intimacy
  • 131. Value gets created between the employee and the customer, and management’s job is to Enable innovation at that interface.” – Vineet Nayar, HCL
  • 132. Excellent books to get your brain juices fired up
  • 133. Some cool CEM assets worth reading…
  • 134. I have the power to drive transformational change
  • 135. OP + NT = EOP
  • 136. ?
  • 137. Old Process + New Technology = Expensive Old Process
  • 138. Thank You! Feel free in connecting with me @ Nicholas.kontopoulos@sap.com #nicholask71 http://cn.linkedin.com/in/nicholaskontopoulos ©  2011 SAP AG. All rights reserved. Public 138
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