The document outlines a study emphasizing the importance of the digital customer experience in enhancing engagement and monetization. It discusses the evolving expectations driven by digital interactions and the need for companies to leverage customer data for personalization. Recommendations for success include prioritizing experiences, journeys, and suggestions over traditional transactions.

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“PUTTING THE EXPERIENCE IN
DIGITAL CUSTOMER EXPERIENCE”
HIGHLIGHTS OF A MAJOR NEW STUDY
Ben Pring
Cognizant’s Center
for the Future of Work

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THE DIGITAL CUSTOMER
EXPERIENCE IS
THE KEY TO DELIGHT, ENGAGE, AND
MONETIZE CUSTOMERS IN THE
MODERN WORLD.

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OUR EXPECTATIONS ARE BEING
CHANGED BY CODE HALO
EXPERIENCES …

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WE’RE BEGINNING
TO EXPECT
(AND DIFFERENTIATE)
ON THE SUBLIME …

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AND FIND THE
RIDICULOUS,
RIDICULOUS
“Press 1 for English”

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CODE
HALO
S?

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transaction
updateCODE HALOS ARE CREATED BY
EVERY
7
brows
e
swip
e
comme
nt
scrolllike
pos
t
moveme
ntclick
input

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transaction
brows
e
swip
e
comme
nt
scrolllike
pos
t
moveme
ntclick
input
update… EVERY DIGITAL INTERACTION ANY BODY AND/OR ANY
THING HAS

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AND YET…
Poor Fair Moderate Good Excellent
3%
24%
45%
25%
3%
0%
1%
31%
14%
How would you rate the overall quality of your customers' experience and engagement with your
company today and in three years? ["Good" and "Excellent" responses shown]
54%

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“HOUSTON,
WE HAVE A PROBLEM …”

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GREAT EXPECTATIONS … TINY STEPS
What type of customer information do you collect? Select all that apply.
Browsing
history
Spending
history
Demographic
information
Likes/Inter
ests
Social
graph
Product
registrations
API
traffic
Service
enrollments
None of the
above
41% 40% 39% 38% 37%
21% 18% 12%
10%

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THE METADATA WARS ARE HEATING
UP…How effective is your company at… Today? In three years?
…analyzing
customer
metadata?
…collecting
customer
data?
…integrating
customer data with
other business
information?
…analyzing
customer data?
…collecting
customer
metadata?
TODAY
26%
TODAY
16%
IN 3 YEARS
52%
TODAY
44%
IN 3 YEARS
68%
TODAY
19%
IN 3 YEARS
39%
TODAY
29%
IN 3 YEARS
56%
IN 3 YEARS
52%

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Say customer data and analysisis a key
element
of their company’s innovation efforts.
Say digitizing the customer experience
to deliver mass personalization is a core strategic
goal.
58% 47%
DO YOU KNOW THE “MARKET OF ME”?
To what extent do you agree with the following statements about your company’s approach to
attracting and retaining customers and personalizing their experience?
[“Agree” and “Strongly agree” responses shown]

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To what extent does your company focus on the following customer experience issues today?
[“Relatively high focus” and “key focus” responses shown]
MASS PERSONALIZATION PUTS CUSTOMERS AT THE
CORE …
54%
53%
51%
48%
45%
44%
42%
40%
40%
Co-creating with customers
Creating personalized products, services and
experiences
Improving communication with customers
Building customer loyalty
Addressing shifting customer demands
Creating a customer-centric organization
Analyzing customer data
Reaching new customer markets
Collecting customer data
0% 10% 20% 30% 40% 50% 60%

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LEADERS EXPECT BOTTOM LINE
IMPACTS…What value do you expect to gain from improved customer experience and engagement based
on your use of digital profiles? [“Good benefit” and “Substantial benefit” responses shown]
Increased
profitability
Improved
customer
retention
Increased
market
share
Increased
revenue
Improved ability
to develop
new products
& services
Expansion
into new
lines
of
business
Attracting
next
generation
of customers
45%
38%
30%
37%
28%
14%
17%
0
10
20
30
40
50

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BETTER CUSTOMER UNDERSTANDING HAS A
CLEAR ROIPlease rate the level of measurable ROI your company has seen from its data-mining efforts.
No
quantifiable return
Slight
quantifiable return
Moderate
quantifiable return
Good
quantifiable return
Significant
quantifiable return
DATA MINING
1% 11% 29% 46% 12%

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“IF IT WERE EASY,
WE’D HIRE
HAIRDRESSERS …”
23%
Data security
8%
19%
Customer privacy
concerns
30%
Data
access
30%
Disseminating
insights internally
26%
Data security
29%
Forming partnerships
with third-party
vendors
42%
Adequate tools
to analyze data
42%
Adequate internal
skill sets to analyze data

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WE ARE INCREDIBLY LUCKY

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“By 2025 the Second
Economy will be as large as
the 1995 physical economy”
WE HAVE THE OPPORTUNITY TO BUILD
(AND MANAGE) THE “VAST, SILENT,
UNSEEN SECOND ECONOMY”
SOURCE: W. Brian Arthur, Santa Fe Institute – McKinsey Quarterly, Oct 2011; http://www.mckinsey.com/insights/strategy/the_second_economy

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BECAUSE WE’RE INCREASINGLY
CARRYING OUR VIRTUAL LIVES WITH
US IN THE PHYSICAL WORLD (AND VICE
VERSA) …

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… WE CAN PUT ALGORITHMS
AROUND “ANYTHING” – EVERYTHING
CAN HAVE A CODE HALO

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INDUSTRIAL
DATA SYSTEM
BIG DATA
ANALYTICS
REMOTE AND
CENTRALIZED
DATA
VISUALIZATION
PHYSICAL
HUMAN
NETWORKS
INSTRUMENTED
INDUSTRIAL
MACHINE
Data sharing
with the right
people and
machines
Extraction and
storage of proprietary
machine data stream
Intelligence flows
back into
machines
Machine-based
algorithms and
data analysis
SECURE
CLOUD-BASED
NETWORK

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EVERYTHING IS UP
FOR GRABS (AGAIN) .…
“We are in era where we are re-imagining
nearly everything … powered by new
devices, plus connectivity, plus new user
interfaces, plus beauty….”
—Mary Meeker - Kleiner Perkins Caufield & Byers

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WHICH IS GREAT …
AND TERRIFYNG

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“GET DILBERT ON LINE 1”

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YOUR NEW MISSION …
(You should choose to accept it …)

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REIMAGINE CODE

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REIMAGINE COMMERCE

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FOUR RECOMMENDATIONS FOR SUCCESS IN THE CODE HALO ERA
…

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EXPERIENCES
OVER TRANSACTIONS

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JOURNEYS OVER MOMENTS

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SUGGESTING
OVER CLOSING

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ANNUITIES OVER PURCHASE ORDERS

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WE ARE INCREDIBLY LUCKY

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“ACTION THIS DAY!”

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DOWNLOAD THE FULL REPORT AT
http://cogniz.at/1ESjAip
benjamin.pring@cognizant.co
m
Cognizant’s Center for the Future of Work community site
www.futureofwork.com