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The better the question. The better the answer.
The better the world works.
Winning in the Age of Customers –
Why Customer Experience Matters
26 July 2017
Joan Tan, Director, Ernst  Young Advisory
Page 2
We've had three big ideas at Amazon that we've
stuck with for 18 years, and they're the reason
we're successful: Put the customer first. Invent.
And be patient.
– Jeff Bezos, CEO
“1-Click” purchases
World’s Largest online retailer
Free two-day shipping and
same-day delivery for
members (US only)
3
What comes to mind?
Source: https://www.washingtonpost.com/lifestyle/style/jeffrey-bezos-washington-posts-next-owner-aims-for-a-new-golden-era-at-the-
newspaper/2013/09/02/30c00b60-13f6-11e3-b182-1b3bb2eb474c_story.html
Page 3
McDonald’s vision is to be the world’s best quick service
restaurant experience. Being the best means providing
consistent quality, service, cleanliness, and value so
that we make every customer in every restaurant smile
What comes to mind?
Fast food
Happy meals
Seamless drive-through
experience
Source: OM 5 by David A Collier, James R. Evans, 2015, Cengage Learning
Page 4
”A great way to fly”
Going the extra mile
Youngest fleet in the
industry
What comes to mind?
Singapore Airlines is not only about attention
to detail…but actively engaging our customers
and delivering a consistently high standard of
service on all of our flights.
– Mr Goh Choon Phong, CEO
Source: http://airlines.iata.org/ceo-interviews/ceo-interview-building-on-strong
Page 5
Working on including
some tips and examples
that are sanitized for
public sharing
Megatrends
Drivers of disruption
Source: http://www.ey.com/gl/en/issues/business-environment/ey-megatrends-the-upside-of-disruption
Page 6
Megatrends
Empowered customers
Today’s customers co-create…
..speeding time to market, improving quality and
reducing false starts
Customers are willing to pay for
what they value
..but need to be appealed to in
their full complexity
Changing how companies create, deliver
and measure value
Experience is becoming more
important than product
Today’s customers
understand their
commercial value
..but they can ignore you if they
are disinterested or displeased.
Customers build brands…
Companies must effectively manage a mix of
channels…
…putting a premium on data collection and
analysis
In this culture of niche, everything must be
personalized
Source: http://www.ey.com/gl/en/issues/business-environment/ey-megatrends-empowered-customer
Page 7
Giving me choice
Making me feel
unique
Making re-ordering
easy for me
Inspiring and
enabling me to get
the latest trend
Giving me new
experiences
Reassuring me Surprising me with
value
Saving me time
Giving me what I
want, when I want it
Giving me control
Giving me relevant
offers
Making sure I
never run out
Changing Customer Behaviours and Emerging Trends
Disrupters are taking share as they redefine customer experience
Source: EY
Page 8
Changing Customer Behaviours and Emerging Trends
Singapore - Digital snapshot
► 1000 digitally active respondents
► Aged between 18-69 years
► Reside in Singapore
► Identify consumer digital
attitudes, experiences and
expenditures
► What matters for digital
experiences
► Implications for Singapore
businesses
► Gender and age differences in
digital attitudes and behaviours
Who? What? How?
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 9
Changing Customer Behaviours and Emerging Trends
Singapore - Digital snapshot
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 10
Changing Customer Behaviours and Emerging Trends
Singapore – Attitudes to digital shopping
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 11
Changing Customer Behaviours and Emerging Trends
Singapore – Goods and services consumption
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 12
Changing Customer Behaviours and Emerging Trends
Singapore – Important factors for a high quality digital experience
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 13
Changing Customer Behaviours and Emerging Trends
Singapore – Important factors for a high quality digital experience
Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
Page 14
Creating Experiences to Satisfy Empowered Customers
“Outside-in and Inside-Out approach
Brand
experience
Purchase
experience
Service
experience
Departure
experience
Personalization
Interactions / transactions
No match =
value leakage
Match =
improved
experience
Interactions
Company capabilities
Innovation =
surprise and
delight
Experience Led Transformation: driven by voice of the customer (outside-in)
Marketing Sales
Service and
operations
Tools and
technology
Analytics
and insight
Capabilities design: company capabilities to deliver experience design (inside-out)
Business
outcomes
and results
Customer, employee and partner experiences
Align customer experiences to a company’s capabilities
Source: EY
Page 15
Creating Experiences to Satisfy Empowered Customers
The retail experience
Pre-arrival
ê Research via
online/social
channels and
mobile
devices
ê Store/mall
recommendat
ions from
family and
friends’
reviews
Arrival
ê GPS wayfindng
on mobile
devices
ê Location based
alerts
ê Chatbots for
instant help
In the store/ mall
ê Personalised/ lifestyle/
experiential
ê Flagship/ exclusive in-store
assortment
ê Popup online stores
ê Integrate store with e-
commerce/ m-commerce
through tools including:
ê Online/ mobile shopping
lists
ê Scan  Go and eReceipts
ê Savings Catcher
ê Purchase decisions influenced
by family and friends reviews
ê Click and collect
Departure
ê Eliminate need to
carry shopping
bags:
ê Delivers your
shopping to your
home or hotel
ê Multiple drop off
points
Post Departure
ê Transparent,
responsive,
engaging,
consistent
messaging (on
and offline)
ê Personalised
rewards and
redemptions
anytime
Source: EY
Page 16
Creating Experiences to Satisfy Empowered Customers
The hotel guest experience
ê Greater control over
experience through
self serve options
ê Immersive experience
in line with hotel
brand identity
ê Room service robot
ê Track the progress of
their room service as
it is brought into the
elevator and down the
corridor to their hotel
room.
Stay
ê Make
customisation
requests - select
the exact room
they want, order
meals, etc. ahead
of time from
anywhere
ê Mobile check-in
and ‘room ready’
alerts
Pre-arrival
ê Check in, unlock
room and
elevators using a
digital key
ê Recommendations
on places to eat
and drink based
on real-time
information
ê Seamless
vendor/partner
experience
Arrival
ê Check out,
unlock room
and elevators
using a digital
key
ê Seamless
vendor/partner
experience
Departure
ê Communicate with
hotel staff before,
during, and after
their stay from
anywhere
ê Transparent,
responsive,
engaging,
consistent
messaging (on and
offline)
Post Departure
Source: EY
Page 17
Creating Experiences to Satisfy Empowered Customers
The dining experience
Dining Departure Post DeparturePre-arrival
ê Research, make
reservations and
food orders ahead
of time via
multiple channels
ê Dining
recommendations
from family and
friends’ reviews
ê Tech driven food
delivery
Arrival
ê Ability to identify
returning customers
and make
recommendations
based on previous
visits
ê Tabletop tablet
menus that take
orders and send
them direct to the
kitchen
ê High-quality,
innovative foods
concepts in fast-
casual environments
ê Create your taste
dining
options/experience
ê Manpower lean,
efficient, self serve
model
ê Visually appealing
food for social
media
ê Pay when ready
ê Tabletop tablet,
online, mobile
feedback
ê Transparent,
responsive,
engaging,
consistent
messaging (on and
offline)
ê Personalised
rewards and
promotions based
on dinning
frequency and
preferences
Source: EY
Page 18
Customer Experience (CX)
The difference for high-growth entrepreneurs
Customer
Focus their
business on
providing a
differentiated
customer
experience by
predicting
customers’
needs and
delivering
personalized
value
Digital,
Technology,
Analytics
Digital is the
primary driver
of customer
value and
business
strategy and
has redefined
the business
model
The EY 7 Drivers of Growth
Market Leadership
Source: https://betterworkingworld.ey.com/growth/is-customer-obsession-an-ideal-or-the-imperative-for-growth
Page 19
Customer Experience (CX)
Where you are today and your aspiration
Source: EY
Page 20
Leadership
 Strategy
Customer Experience (CX)
Where to start
What attributes of customer experience are important to your customers?
Where can the biggest difference be made?
What is the likely impact in terms of revenue and costs?
What needs to be done and when?
Source: EY
Page 21
Customer Experience (CX)
Where to start
1. Understand your customers in terms of:
► Their needs and value
► The rational and emotional drivers of your customer’s behavior
► Stages and touch-points where you have the opportunity to “delight” your customers
1
2. Evaluate current capabilities and delivery performance:
► Across key customer journeys and touch-points evaluate:
► Your customers’ perceptions of their experience with you
► The maturity of your current capabilities and the impact on the experience delivered
2
3. Define vision of future state:
► Create a compelling vision for exceptional customer experience
► Define the capabilities required to deliver desired level of experience
► Prioritize capabilities and high impact stages/touch-points for change
► Identify “quick wins”
► Commit to a clear course of action
3
4. Measure results and link rewards and recognition to excellent customer experience
► Deliver with regular tracking and monitoring
► Use results to reward, recognize and refine your approach
4
Source: EY
Page 22
About EY
At EY, our purpose is to build a better working world for our clients, our people and our communities. We strive to help create a legacy of improved business performance, confidence and trust.
At the heart of our approach is helping you create a differentiated customer experience. We work with you to engineer better experiences directly with customers to generate more loyalty and engagement.
Customer Offerings
Experience-led transformation
We design cutting-edge customer experiences with an “outside in” customer centric perspective.
Customer technology transformation
We apply key technology trends to develop an effective roadmap aligned to business priorities.
Customer strategy and operating model design
We create executable strategies to initiate, grow and sustain profitable relationships with consumer and business customers.
Customer insight and analytics
We can capture insights and create strategies for attracting, engaging and retaining profitable customers.
Pricing strategy and profit optimization
We can assist you to optimize your profitability by building, implementing, and sustaining advanced capabilities in pricing strategy, analytics, and price-setting.
Omni-channel strategy
We synchronize customer channels with the intent of presenting a consistent experience reflective of your brand, along with one consistent way of doing business.
For more information, please contact:
Joan Tan
joan.tan@sg.ey.com
© 2017 Ernst  Young Advisory Pte. Ltd.
All Rights Reserved.
UEN 198905395E
www.ey.com
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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EY - Winning in the Age of Customers

  • 1. The better the question. The better the answer. The better the world works. Winning in the Age of Customers – Why Customer Experience Matters 26 July 2017 Joan Tan, Director, Ernst Young Advisory
  • 2. Page 2 We've had three big ideas at Amazon that we've stuck with for 18 years, and they're the reason we're successful: Put the customer first. Invent. And be patient. – Jeff Bezos, CEO “1-Click” purchases World’s Largest online retailer Free two-day shipping and same-day delivery for members (US only) 3 What comes to mind? Source: https://www.washingtonpost.com/lifestyle/style/jeffrey-bezos-washington-posts-next-owner-aims-for-a-new-golden-era-at-the- newspaper/2013/09/02/30c00b60-13f6-11e3-b182-1b3bb2eb474c_story.html
  • 3. Page 3 McDonald’s vision is to be the world’s best quick service restaurant experience. Being the best means providing consistent quality, service, cleanliness, and value so that we make every customer in every restaurant smile What comes to mind? Fast food Happy meals Seamless drive-through experience Source: OM 5 by David A Collier, James R. Evans, 2015, Cengage Learning
  • 4. Page 4 ”A great way to fly” Going the extra mile Youngest fleet in the industry What comes to mind? Singapore Airlines is not only about attention to detail…but actively engaging our customers and delivering a consistently high standard of service on all of our flights. – Mr Goh Choon Phong, CEO Source: http://airlines.iata.org/ceo-interviews/ceo-interview-building-on-strong
  • 5. Page 5 Working on including some tips and examples that are sanitized for public sharing Megatrends Drivers of disruption Source: http://www.ey.com/gl/en/issues/business-environment/ey-megatrends-the-upside-of-disruption
  • 6. Page 6 Megatrends Empowered customers Today’s customers co-create… ..speeding time to market, improving quality and reducing false starts Customers are willing to pay for what they value ..but need to be appealed to in their full complexity Changing how companies create, deliver and measure value Experience is becoming more important than product Today’s customers understand their commercial value ..but they can ignore you if they are disinterested or displeased. Customers build brands… Companies must effectively manage a mix of channels… …putting a premium on data collection and analysis In this culture of niche, everything must be personalized Source: http://www.ey.com/gl/en/issues/business-environment/ey-megatrends-empowered-customer
  • 7. Page 7 Giving me choice Making me feel unique Making re-ordering easy for me Inspiring and enabling me to get the latest trend Giving me new experiences Reassuring me Surprising me with value Saving me time Giving me what I want, when I want it Giving me control Giving me relevant offers Making sure I never run out Changing Customer Behaviours and Emerging Trends Disrupters are taking share as they redefine customer experience Source: EY
  • 8. Page 8 Changing Customer Behaviours and Emerging Trends Singapore - Digital snapshot ► 1000 digitally active respondents ► Aged between 18-69 years ► Reside in Singapore ► Identify consumer digital attitudes, experiences and expenditures ► What matters for digital experiences ► Implications for Singapore businesses ► Gender and age differences in digital attitudes and behaviours Who? What? How? Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 9. Page 9 Changing Customer Behaviours and Emerging Trends Singapore - Digital snapshot Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 10. Page 10 Changing Customer Behaviours and Emerging Trends Singapore – Attitudes to digital shopping Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 11. Page 11 Changing Customer Behaviours and Emerging Trends Singapore – Goods and services consumption Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 12. Page 12 Changing Customer Behaviours and Emerging Trends Singapore – Important factors for a high quality digital experience Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 13. Page 13 Changing Customer Behaviours and Emerging Trends Singapore – Important factors for a high quality digital experience Source: http://www.ey.com/sg/en/services/advisory/ey-savvy-singapore-decoding-a-digital-nation
  • 14. Page 14 Creating Experiences to Satisfy Empowered Customers “Outside-in and Inside-Out approach Brand experience Purchase experience Service experience Departure experience Personalization Interactions / transactions No match = value leakage Match = improved experience Interactions Company capabilities Innovation = surprise and delight Experience Led Transformation: driven by voice of the customer (outside-in) Marketing Sales Service and operations Tools and technology Analytics and insight Capabilities design: company capabilities to deliver experience design (inside-out) Business outcomes and results Customer, employee and partner experiences Align customer experiences to a company’s capabilities Source: EY
  • 15. Page 15 Creating Experiences to Satisfy Empowered Customers The retail experience Pre-arrival ê Research via online/social channels and mobile devices ê Store/mall recommendat ions from family and friends’ reviews Arrival ê GPS wayfindng on mobile devices ê Location based alerts ê Chatbots for instant help In the store/ mall ê Personalised/ lifestyle/ experiential ê Flagship/ exclusive in-store assortment ê Popup online stores ê Integrate store with e- commerce/ m-commerce through tools including: ê Online/ mobile shopping lists ê Scan Go and eReceipts ê Savings Catcher ê Purchase decisions influenced by family and friends reviews ê Click and collect Departure ê Eliminate need to carry shopping bags: ê Delivers your shopping to your home or hotel ê Multiple drop off points Post Departure ê Transparent, responsive, engaging, consistent messaging (on and offline) ê Personalised rewards and redemptions anytime Source: EY
  • 16. Page 16 Creating Experiences to Satisfy Empowered Customers The hotel guest experience ê Greater control over experience through self serve options ê Immersive experience in line with hotel brand identity ê Room service robot ê Track the progress of their room service as it is brought into the elevator and down the corridor to their hotel room. Stay ê Make customisation requests - select the exact room they want, order meals, etc. ahead of time from anywhere ê Mobile check-in and ‘room ready’ alerts Pre-arrival ê Check in, unlock room and elevators using a digital key ê Recommendations on places to eat and drink based on real-time information ê Seamless vendor/partner experience Arrival ê Check out, unlock room and elevators using a digital key ê Seamless vendor/partner experience Departure ê Communicate with hotel staff before, during, and after their stay from anywhere ê Transparent, responsive, engaging, consistent messaging (on and offline) Post Departure Source: EY
  • 17. Page 17 Creating Experiences to Satisfy Empowered Customers The dining experience Dining Departure Post DeparturePre-arrival ê Research, make reservations and food orders ahead of time via multiple channels ê Dining recommendations from family and friends’ reviews ê Tech driven food delivery Arrival ê Ability to identify returning customers and make recommendations based on previous visits ê Tabletop tablet menus that take orders and send them direct to the kitchen ê High-quality, innovative foods concepts in fast- casual environments ê Create your taste dining options/experience ê Manpower lean, efficient, self serve model ê Visually appealing food for social media ê Pay when ready ê Tabletop tablet, online, mobile feedback ê Transparent, responsive, engaging, consistent messaging (on and offline) ê Personalised rewards and promotions based on dinning frequency and preferences Source: EY
  • 18. Page 18 Customer Experience (CX) The difference for high-growth entrepreneurs Customer Focus their business on providing a differentiated customer experience by predicting customers’ needs and delivering personalized value Digital, Technology, Analytics Digital is the primary driver of customer value and business strategy and has redefined the business model The EY 7 Drivers of Growth Market Leadership Source: https://betterworkingworld.ey.com/growth/is-customer-obsession-an-ideal-or-the-imperative-for-growth
  • 19. Page 19 Customer Experience (CX) Where you are today and your aspiration Source: EY
  • 20. Page 20 Leadership Strategy Customer Experience (CX) Where to start What attributes of customer experience are important to your customers? Where can the biggest difference be made? What is the likely impact in terms of revenue and costs? What needs to be done and when? Source: EY
  • 21. Page 21 Customer Experience (CX) Where to start 1. Understand your customers in terms of: ► Their needs and value ► The rational and emotional drivers of your customer’s behavior ► Stages and touch-points where you have the opportunity to “delight” your customers 1 2. Evaluate current capabilities and delivery performance: ► Across key customer journeys and touch-points evaluate: ► Your customers’ perceptions of their experience with you ► The maturity of your current capabilities and the impact on the experience delivered 2 3. Define vision of future state: ► Create a compelling vision for exceptional customer experience ► Define the capabilities required to deliver desired level of experience ► Prioritize capabilities and high impact stages/touch-points for change ► Identify “quick wins” ► Commit to a clear course of action 3 4. Measure results and link rewards and recognition to excellent customer experience ► Deliver with regular tracking and monitoring ► Use results to reward, recognize and refine your approach 4 Source: EY
  • 22. Page 22 About EY At EY, our purpose is to build a better working world for our clients, our people and our communities. We strive to help create a legacy of improved business performance, confidence and trust. At the heart of our approach is helping you create a differentiated customer experience. We work with you to engineer better experiences directly with customers to generate more loyalty and engagement. Customer Offerings Experience-led transformation We design cutting-edge customer experiences with an “outside in” customer centric perspective. Customer technology transformation We apply key technology trends to develop an effective roadmap aligned to business priorities. Customer strategy and operating model design We create executable strategies to initiate, grow and sustain profitable relationships with consumer and business customers. Customer insight and analytics We can capture insights and create strategies for attracting, engaging and retaining profitable customers. Pricing strategy and profit optimization We can assist you to optimize your profitability by building, implementing, and sustaining advanced capabilities in pricing strategy, analytics, and price-setting. Omni-channel strategy We synchronize customer channels with the intent of presenting a consistent experience reflective of your brand, along with one consistent way of doing business. For more information, please contact: Joan Tan joan.tan@sg.ey.com © 2017 Ernst Young Advisory Pte. Ltd. All Rights Reserved. UEN 198905395E www.ey.com This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

Editor's Notes

  1. https://www.washingtonpost.com/lifestyle/style/jeffrey-bezos-washington-posts-next-owner-aims-for-a-new-golden-era-at-the-newspaper/2013/09/02/30c00b60-13f6-11e3-b182-1b3bb2eb474c_story.html