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The Total Impossibility of Customer
Experience Management
JBoye15| 4 November 2015
Tim	
  Walters	
  |	
  Co-­‐Founder	
  ...
About Digital Clarity Group
We work with:
§  Digital leaders
§  Technology vendors
§  Service providers
We offer:
§  C...
1.  Darkness
2.  Despair
3.  Guilt
4.  Theory
5.  Glimmer of Hope
3	
  
Agenda
PART	
  ONE	
  
in	
  which	
  
Shit happens
5	
  
65	
  Million	
  Years	
  Ago	
  
6	
  
7	
  
8	
  Years	
  Ago	
  
8	
  
9	
  
10	
   @7m_walters	
  
The	
  Four	
  Horsemen	
  of	
  Digital	
  Disrup7on	
  
Social,	
  Mobile,	
  Analy7cs,	
  Cloud	...
11	
  
44%	
  Of	
  the	
  global	
  Facebook	
  popula7on	
  
accesses	
  it	
  exclusively	
  via	
  mobile.	
  	
  
12	
  
335,000	
  
years	
  per	
  
month	
  
In	
  the	
  U.S.	
  ,	
  people	
  spend	
  	
  
on	
  Facebook	
  via	
  m...
13	
  
14	
  
The	
  iPhone	
  A8	
  chip	
  has	
  
625x	
  
more	
  transistors	
  than	
  
a	
  1995	
  Pen7um	
  chip	
  
Source:	
 ...
“Mobile [means] that you free people from
having to decide which device to use. If you
sit in your office, mobile means us...
FROM SCARCITY TO ADUNDANCE
Information access is immediate, because it is mobile.
It is limitless, because it is connected...
18	
  
A cycle of ubiquitous content consumption
@7m_walters	
  
“As	
  the	
  industrial	
  revolu7on	
  
was	
  defined	
  by	
  radical	
  
efficiency	
  in	
  produc7on,	
  the	
  
digit...
20	
  
Whereas	
  the	
  Chicxulub	
  impact	
  produced	
  darkness,	
  the	
  
mobile	
  shie	
  produces	
  light,	
  a...
21	
  
@7m_walters	
  
§  Mobile Shift
§  Deep Impact
§  Ubiquitous Computing
§  Empowered Consumers
§  Customer Experience ...
23	
  
This and other DCG research
is available at no cost on
www.digitalclaritygroup.com
24	
  
What	
  is	
  na7ve	
  
adver7sing?	
  	
  
Is CEM an extinction level event?
PART	
  TWO	
  
in	
  which	
  
We all need a stiff drink
@7m_walters	
  
26	
  
Now	
  that’s	
  a	
  poten7ally	
  insul7ng	
  ques7on.	
  The	
  very	
  
existence	
  of	
  this	
  conference	
...
27	
  
Source:	
  Repor7ng	
  on	
  Accenture’s	
  Digital	
  Transforma7on	
  in	
  the	
  Age	
  of	
  the	
  Customer	
...
That	
  damn	
  Sco5	
  Brinker	
  
exponen7al	
  marke7ng	
  
technology	
  slide.	
  
	
  	
  	
   	
   	
  	
   	
   	
...
Also	
  
89%	
  
of	
  N.A.	
  marketers	
  said	
  they	
  
expect	
  to	
  compete	
  “mostly	
  on	
  the	
  
basis	
  ...
30	
  
Source:	
  h5ps://experiencema5ers.wordpress.com/2007/11/27/forresters-­‐2007-­‐customer-­‐experience-­‐rankings/	
...
31	
  
So,	
  how	
  are	
  we	
  doing?	
  	
  
32	
  
33	
  
34	
  
35	
  
81%	
  
of	
  firms	
  in	
  global	
  survey	
  have	
  
seen	
  CX	
  ini7a7ves	
  fail	
  in	
  the	
  last	
  
three	
 ...
16,000 customers in 32 countries
§  CX index declines from 2013-2015
§  Gen Y most dissatisfied demographic
§  8 out of...
30,000+ consumers worldwide
§  2013: “no CX metric has improved
consistently in the last five years”
§  Every metric dec...
39	
  
Excellent
Good
OK (aka “mediocre”)
Poor
Very Poor
Consumers rate brands on effectiveness,
ease, and emotion
Forrest...
USA: 45,000+ consumers, 299 brands
§  From Q1 to Q3 2015 “good” rating
declines from 26% to 15%
§  In that period, 2.3% ...
FR, UK, DE: 14,000+ consumers, 203
brands
§  In UK, 87% are mediocre or worse
§  In DE 84% are mediocre or worse
§  In ...
42	
  
§  1% (or less!) offer “excellent” CX
§  “Mediocre or worse”
– USA: 84%
– Germany: 84%
– UK: 87%
– France: 100%
D...
43	
  
PART	
  THREE	
  
in	
  which	
  
There is ranting
@7m_walters	
  
45	
  
The Great Reluctance?
The Collective Ineptitude?
A Conspiracy of Failure?
La grande illusion?
Four possible reasons...
46	
  
§  A “strategic priority” . . . but no
budget
§  Inadequate/insufficient skills
§  Self-delusion: 78% say “we tr...
47	
  
§  CEM as “digitally supercharged
marketing”
§  Industrial legacy: More efficient
processing of prospects/custome...
Source:	
  h5ps://www.worldretailbankingreport.com/#report-­‐highlights.	
  “Six	
  lessons	
  you	
  can	
  learn	
  from...
49	
  
We are incented to collect/acquire as
much data on consumers as possible.
In the name of customer experience
Source...
50	
  
We are incented to display ads that
consumers ignore.
Average display ad CTR: 0.06%
Google Doubleclick, April 2015
...
51	
  
Ads that are hostile to the user
experience.
In the name of customer experience
Source:	
  h5p://betanews.com/2015/...
52	
  
Ads which consumers are incented to
avoid.
In the name of customer experience
Source:	
  h5p://fortune.com/2015/09/...
53	
  
In the name of customer experience
Source:	
  h5p://www.thewire.com/business/2011/06/you-­‐are-­‐more-­‐likely-­‐su...
54	
  
In the name of customer experience
Source:	
  h5ps://www.capgemini-­‐consul7ng.com/resource-­‐file-­‐access/resource...
55	
  
In the name of customer experience
Source:	
  h5p://marke7ngland.com/study-­‐finds-­‐both-­‐widespread-­‐programma7c...
56	
  
Half of the virgins we sacrifice don’t
help the crop.
Trouble is, we don’t know which half.
We	
  prac7ce	
  customer	
  
experience	
  management	
  with	
  
too	
  li5le	
  a5en7on	
  to	
  the	
  
customer’s	
  ...
PART	
  FOUR	
  
in	
  which	
  
The Professor speaks
@7m_walters	
  
59	
  
3. We can’t change
60	
  
In	
  episode	
  157	
  of	
  his	
  Cri7cal	
  Path	
  podcast,	
  Horace	
  Dediu	
  
says	
  that	
  the	
  Appl...
61	
  
Dediu	
  isn’t	
  a	
  cynic	
  or	
  curmudgeon.	
  He’s	
  a	
  
student	
  (and	
  now	
  colleague)	
  of	
  Cl...
62	
  
Organiza7ons	
  are	
  hard	
  to	
  
change	
  because	
  they	
  are	
  
organized.	
  They	
  are	
  
intended	
...
63	
  
Buy	
  a	
  different	
  pot:	
  	
  
•  “Acquire	
  a	
  different	
  organiza7on	
  whose	
  processes	
  and	
  
v...
64	
  
A new structure from old fragments.
How would that work?
And is it a (or the only) way to
avoid CEM extinction?
PART	
  FOUR	
  
in	
  which	
  
The Journey Begins
@7m_walters	
  
66	
  
“Understanding	
  a	
  problem	
  is	
  
the	
  most	
  crucial	
  step	
  in	
  
solving	
  it.”	
  	
  	
  
Clayt...
We know what CX is:
“A	
  customer’s	
  percep7on	
  of	
  a	
  
company	
  or	
  brand,	
  based	
  on	
  all	
  of	
  
t...
So CEM must be:
“Managing	
  a	
  customer’s	
  percep7on	
  
of	
  a	
  company	
  or	
  brand,	
  based	
  on	
  all	
  ...
Source:	
  h5ps://willscullypower.wordpress.com/2013/10/23/customer-­‐lifecycle-­‐channel-­‐touches/	
  
The comprehensive...
Source:	
  h5p://blog.evergegroup.com/?p=1177	
  
Infinity . . . and beyond!
So, all we need to so is manage . . .
1000s	
  of	
  individual	
  
interac7ons	
  
Over	
  decades	
  
For	
  every	
  on...
So, all we need to so is manage . . .
1000s	
  of	
  individual	
  
interac7ons	
  
Over	
  decades	
  
For	
  every	
  on...
In	
  short,	
  the	
  commonly	
  accepted	
  
defini7on	
  of	
  CEM	
  leads	
  to	
  an	
  
inescapable	
  conclusion:	...
CEM	
  is	
  	
  
IMPOSSIBLE	
  
@7m_walters	
  
There	
  is	
  a	
  	
  
be5er	
  way.	
  	
  
Instead	
  of	
  the	
  total	
  and	
  totalizing	
  
(and	
  poten7ally	
  totalitarian)	
  
customer	
  lifecycle,	
  l...
77	
  
Selected journeys (McKinsey)
Source:	
  h5p://www.slideshare.net/McK_CMSOForum/customer-­‐experience-­‐journey-­‐we...
78	
  
High	
  value	
  journeys	
  
“Indifference”	
  
The	
  journeys	
  are	
  high	
  value	
  because	
  they	
  accou...
Cable on-boarding journey
•  Customer	
  makes	
  decision,	
  completes	
  online	
  
form.	
  (website)	
  
•  Receives	...
Retail Banking Journeys
•  New	
  account	
  onboarding	
  
•  Payments	
  and	
  transfers	
  
•  Statements	
  and	
  fe...
Higher Education Journeys
•  Researching	
  and	
  selec7ng	
  
•  Applica7on	
  (essays,	
  etc)	
  
•  Financial	
  aid	...
82	
  
Manage the “hotspots”
Journeys	
  harbor	
  the	
  value	
  
in	
  the	
  customer	
  lifecycle.	
  
Hotspots	
  ar...
§  Traditional isolated touchpoint
management is too small to have an
impact on CEM.
§  Totalized lifecyle management is...
§  Bring together the resources, skills,
data, systems, workflows,
infrastructure, insights, strategy, etc.
to support, i...
Benefits of CJM
§  Limited	
  in	
  number	
  
§  Cross-­‐func7onal	
  
§  Measurable	
  business	
  impacts	
  
§  Man...
Benefits of CJM
§  Mapping	
  a	
  CJ	
  determines	
  where	
  
personaliza7on	
  is	
  useful	
  and	
  what	
  kind	
  ...
•  Informa7on	
  revolu7on	
  empowers	
  consumers.	
  
•  Resul7ng	
  demand	
  for	
  improved	
  CX	
  an	
  ELE.	
  
...
P.S. Look on the bright side of extinction
88	
  
Tim Walters, Ph.D.
twalters@digitalclaritygroup.com | @tim_walters
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The total impossibility of CEM

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"The Total Impossibility of Customer Experience Management." Abridged version of Tim Walters' 115 slide keynote presentation at the JBoye15 conference, 5 November 2015 in Aarhus, Denmark.

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The total impossibility of CEM

  1. 1. The Total Impossibility of Customer Experience Management JBoye15| 4 November 2015 Tim  Walters  |  Co-­‐Founder   twi5er:  7m_walters   twalters@digitalclaritygroup.com   www.digitalclaritygroup.com  
  2. 2. About Digital Clarity Group We work with: §  Digital leaders §  Technology vendors §  Service providers We offer: §  Consultancy §  Research §  Thought Leadership Digital Clarity Group helps business leaders navigate the digital transformation and turn digital disruption into competitive advantage.  “Digital  Clarity  is  composed  of   smart,  free-­‐thinking,  experienced   analysts  who  follow  their  gut  and   provide  tailored  guidance.”    
  3. 3. 1.  Darkness 2.  Despair 3.  Guilt 4.  Theory 5.  Glimmer of Hope 3   Agenda
  4. 4. PART  ONE   in  which   Shit happens
  5. 5. 5   65  Million  Years  Ago  
  6. 6. 6  
  7. 7. 7   8  Years  Ago  
  8. 8. 8  
  9. 9. 9  
  10. 10. 10   @7m_walters   The  Four  Horsemen  of  Digital  Disrup7on   Social,  Mobile,  Analy7cs,  Cloud    
  11. 11. 11   44%  Of  the  global  Facebook  popula7on   accesses  it  exclusively  via  mobile.    
  12. 12. 12   335,000   years  per   month   In  the  U.S.  ,  people  spend     on  Facebook  via  mobile.  
  13. 13. 13  
  14. 14. 14  
  15. 15. The  iPhone  A8  chip  has   625x   more  transistors  than   a  1995  Pen7um  chip   Source:  Ben  Evans,  h5p://ben-­‐evans.com/benedictevans/2014/10/28/presenta7on-­‐mobile-­‐is-­‐ea7ng-­‐the-­‐world   @7m_walters  
  16. 16. “Mobile [means] that you free people from having to decide which device to use. If you sit in your office, mobile means using your laptop. If you sit at home, mobile means using whatever device happens to be within reach. If you sit on the bus, mobile means using what’s in your hand.” -- Thomas Baekdal 16   Source:  h5p://www.baekdal.com/insights/defining-­‐a-­‐market-­‐in-­‐the-­‐connected-­‐world-­‐you-­‐are-­‐not-­‐in-­‐kansas-­‐anymore   Mobile means ubiquity
  17. 17. FROM SCARCITY TO ADUNDANCE Information access is immediate, because it is mobile. It is limitless, because it is connected. It is trustworthy, because it is social. Information monopolies are destroyed.
  18. 18. 18   A cycle of ubiquitous content consumption @7m_walters  
  19. 19. “As  the  industrial  revolu7on   was  defined  by  radical   efficiency  in  produc7on,  the   digital  revolu7on  is  defined   by  radical  efficiency  in   informa7on  transmission.”                                -­‐  Mike  Arauz       Source:  h5p://www.slideshare.net/mikearauz/mikearauz-­‐on-­‐digitaltransforma7onmay2014prez    
  20. 20. 20   Whereas  the  Chicxulub  impact  produced  darkness,  the   mobile  shie  produces  light,  and  enlightenment.  Whereas  the   impact  released  debris  that  blocked  out  the  sun,  mobility   (especially  combined  with  social)  releases  knowledge  that   parts  the  clouds.    Whereas  the  first  interrupted  and   effec7vely  destroyed  the  food  chain,  causing  the  interrelated   and  dependent  species  to  topple  like  one  domino  aeer   another,  the  second  enriches  and  extends  the  en7re   ecosystem,  due  largely  to  a  far  more  profound  dynamic  of   interdependence,  networking,  and  sharing.         Due  to  this  sudden  abundance  of  informa7on,  the   environment  we  occupy  has  been  fundamentally   transformed.    
  21. 21. 21  
  22. 22. @7m_walters   §  Mobile Shift §  Deep Impact §  Ubiquitous Computing §  Empowered Consumers §  Customer Experience Management To summarize:
  23. 23. 23   This and other DCG research is available at no cost on www.digitalclaritygroup.com
  24. 24. 24   What  is  na7ve   adver7sing?     Is CEM an extinction level event?
  25. 25. PART  TWO   in  which   We all need a stiff drink @7m_walters  
  26. 26. 26   Now  that’s  a  poten7ally  insul7ng  ques7on.  The  very   existence  of  this  conference  –  and  of  the  thousands  of   other  similar  but  less  impressive  conferences  is  proof   that  we  take  CEM  seriously.         “We”  –  analysts,  vendors,  service  providers,  so-­‐called   end  users  –we  are  gathered  on  a  great  ba5lefield  of  the   war  to  improve  customer  experience,  and  we  are,  as   something  like  the  CEM  industry,  dedicated  to  the   proposi7on  that  experience  ma0ers  above  all  else.         There  is  a  lot  of  other  evidence  to  indicate  that  we’re   doing  what  it  takes  to  survive:    
  27. 27. 27   Source:  Repor7ng  on  Accenture’s  Digital  Transforma7on  in  the  Age  of  the  Customer  report,  2015.    
  28. 28. That  damn  Sco5  Brinker   exponen7al  marke7ng   technology  slide.                                   @7m_walters   Also,  we  know  that  spending  on  CEM-­‐related   technologies  has  exploded.  (Or,  at  least  the   investments  by  VCs  in  companies  that  would  like  to   benefit  from  an  explosion  in  spending  on  CEM  has   exploded.)      
  29. 29. Also   89%   of  N.A.  marketers  said  they   expect  to  compete  “mostly  on  the   basis  of  customer  experience”  by   2016.     (That’s  seven  weeks  from  now.)                                   Source:  Gartner,  2015  Marke7ng  Spending  Survey   @7m_walters  
  30. 30. 30   Source:  h5ps://experiencema5ers.wordpress.com/2007/11/27/forresters-­‐2007-­‐customer-­‐experience-­‐rankings/   Also   We’ve  been  at  it  for  years.  
  31. 31. 31   So,  how  are  we  doing?    
  32. 32. 32  
  33. 33. 33  
  34. 34. 34  
  35. 35. 35  
  36. 36. 81%   of  firms  in  global  survey  have   seen  CX  ini7a7ves  fail  in  the  last   three  years.                                       Source:  Avaya  global  survey  2014,  see  h5p://www.avaya.com/usa/about-­‐avaya/newsroom/news-­‐releases/2014/pr-­‐140429/  
  37. 37. 16,000 customers in 32 countries §  CX index declines from 2013-2015 §  Gen Y most dissatisfied demographic §  8 out of 10 with high increases in negative ratings in EU, 5 of these increased more than 10% §  WW increased likelihood to switch 37   CapGemini World Retail Banking Report Source:  h5ps://www.worldretailbankingreport.com/#report-­‐highlights  
  38. 38. 30,000+ consumers worldwide §  2013: “no CX metric has improved consistently in the last five years” §  Every metric declined 2012-13 §  2015: in insurance sector, loyalty declines, only 29% are “highly satisfied,” 15% are sure to buy from incumbent provider, $470b in “switching economy” 38   Accenture Global Consumer Survey Source:  Accenture:  Customer  2020:  Are  You  Future-­‐Ready  or  Reliving  the  Past?  
  39. 39. 39   Excellent Good OK (aka “mediocre”) Poor Very Poor Consumers rate brands on effectiveness, ease, and emotion Forrester CX Index – How it Works Source:  h5p://www.slideshare.net/JonathanBrowne/jb-­‐iqpc-­‐18feb2014  
  40. 40. USA: 45,000+ consumers, 299 brands §  From Q1 to Q3 2015 “good” rating declines from 26% to 15% §  In that period, 2.3% get better, 28.5% get worse §  1% of US brands rate “excellent” 40   Forrester CX Index, Q3 2015 Source:  h5p://blogs.forrester.com/michael_gazala/15-­‐10-­‐06-­‐ forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;  h5p://blogs.forrester.com/ joana_van_den_brink_quintanilha/15-­‐09-­‐28-­‐ which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe    
  41. 41. FR, UK, DE: 14,000+ consumers, 203 brands §  In UK, 87% are mediocre or worse §  In DE 84% are mediocre or worse §  In FR, 60% are poor or very poor §  In FR, 0% are (even) “good” 41   Forrester CX Index, Q3 2015 Source:  h5p://blogs.forrester.com/michael_gazala/15-­‐10-­‐06-­‐ forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;  h5p://blogs.forrester.com/ joana_van_den_brink_quintanilha/15-­‐09-­‐28-­‐ which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe    
  42. 42. 42   §  1% (or less!) offer “excellent” CX §  “Mediocre or worse” – USA: 84% – Germany: 84% – UK: 87% – France: 100% Did I mention we suck? Source:  h5p://blogs.forrester.com/michael_gazala/15-­‐10-­‐06-­‐ forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;  h5p://blogs.forrester.com/ joana_van_den_brink_quintanilha/15-­‐09-­‐28-­‐ which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe    
  43. 43. 43  
  44. 44. PART  THREE   in  which   There is ranting @7m_walters  
  45. 45. 45   The Great Reluctance? The Collective Ineptitude? A Conspiracy of Failure? La grande illusion? Four possible reasons for . . . what shall we call it?
  46. 46. 46   §  A “strategic priority” . . . but no budget §  Inadequate/insufficient skills §  Self-delusion: 78% say “we try to differentiate via CX” 1. We don’t do enough Source:  (Econsultancy/Adobe  survey,  2015.  n=2363)   h5p://www.elas7cpath.com/resources/get-­‐elas7c-­‐blog/what%E2%80%99s-­‐wrong-­‐customer-­‐experience-­‐strategy  
  47. 47. 47   §  CEM as “digitally supercharged marketing” §  Industrial legacy: More efficient processing of prospects/customers §  CX concepts bastardized §  Unrealistic scenarios §  F*#ked up incentives 2. We do too much – of the wrong things
  48. 48. Source:  h5ps://www.worldretailbankingreport.com/#report-­‐highlights.  “Six  lessons  you  can  learn  from  Amazon’s  killer  email  marke7ng   We think tracking a consumer across devices and interrupting her evening with an email is the height of personalized engagement. In the name of customer experience
  49. 49. 49   We are incented to collect/acquire as much data on consumers as possible. In the name of customer experience Source:  h5ps://www.visioncri7cal.de/big-­‐data-­‐collec7on-­‐and-­‐privacy-­‐concerns/  
  50. 50. 50   We are incented to display ads that consumers ignore. Average display ad CTR: 0.06% Google Doubleclick, April 2015 In the name of customer experience Source:  h5p://www.smar7nsights.com/internet-­‐adver7sing/internet-­‐adver7sing-­‐analy7cs/display-­‐adver7sing-­‐clickthrough-­‐rates/  
  51. 51. 51   Ads that are hostile to the user experience. In the name of customer experience Source:  h5p://betanews.com/2015/08/25/ad-­‐blocker-­‐crystal-­‐massively-­‐reduces-­‐bandwidth-­‐usage-­‐and-­‐page-­‐load-­‐7mes-­‐in-­‐ios-­‐9/  
  52. 52. 52   Ads which consumers are incented to avoid. In the name of customer experience Source:  h5p://fortune.com/2015/09/21/apple-­‐adblock-­‐stats/  
  53. 53. 53   In the name of customer experience Source:  h5p://www.thewire.com/business/2011/06/you-­‐are-­‐more-­‐likely-­‐survive-­‐plane-­‐crash-­‐click-­‐banner-­‐ad/39429/   You’re  more  likely  to:     • Get  a  full  house  playing  poker   • Give  birth  to  twins   • Summit  Mt.  Everest   • Get  admi5ed  into  MIT   • Become  a  Navy  SEAL          .  .  .  than  to  click  on  a  banner  ad   Ads which have become a joke.
  54. 54. 54   In the name of customer experience Source:  h5ps://www.capgemini-­‐consul7ng.com/resource-­‐file-­‐access/resource/pdf/privacy-­‐vs-­‐personaliza7on_0.pdf   Similar excesses and ineptitude threaten a personalization backlash
  55. 55. 55   In the name of customer experience Source:  h5p://marke7ngland.com/study-­‐finds-­‐both-­‐widespread-­‐programma7c-­‐adop7on-­‐and-­‐lack-­‐of-­‐understanding-­‐how-­‐it-­‐works-­‐143723   In  other  words  .  .  .    
  56. 56. 56   Half of the virgins we sacrifice don’t help the crop. Trouble is, we don’t know which half.
  57. 57. We  prac7ce  customer   experience  management  with   too  li5le  a5en7on  to  the   customer’s  experience   #apostrophesma5er                                   @7m_walters   In short . . .
  58. 58. PART  FOUR   in  which   The Professor speaks @7m_walters  
  59. 59. 59   3. We can’t change
  60. 60. 60   In  episode  157  of  his  Cri7cal  Path  podcast,  Horace  Dediu   says  that  the  Apple/IBM  partnership  will  not  cause   either  company  to  change  their  priori6es,  processes,  or   culture.  Why?  Because,  he  argues,  it  is  virtually   impossible  for  any  company  to  ever  fundamentally   change  their  P,  P,  or  C.       I  asked  him  if  this  meant  that  most  organiza7ons  will  fail   to  adapt  to  and  thrive  in  the  radical  new  business   environment  created  by  consumer  empowerment.       His  complete  response:                                    
  61. 61. 61   Dediu  isn’t  a  cynic  or  curmudgeon.  He’s  a   student  (and  now  colleague)  of  Clayton   Christensen,  and  he’s  drawing  on  this  2000   ar7cle  in  the  Harvard  Business  Review.     Here’s  a  way  to  understand  the  argument  by  (over   simplified)  analogy.  When  a  company  is  young,  it  is  like   pliable  po5ery  clay.  The  founders  create  a  shape,  find  it   inadequate,  squish  the  clay  together  and  start  over  again,   shaping  and  reshaping.     If  the  company  does  not  fail,  it  eventually  finds  the   “correct”  shape  –  i.e.  product/market  fit.  The  task  is  then   to  regularize  and  ins7tu7onalize  that  shape  –  e.g.  to  make   it  reliably  repeatable  in  a  efficient  manner.     Priori7es,  processes,  and  culture  develop  (purposefully  or   subconsciously)  to  enable,  ensure,  and  sustain  the   repeatable  execu7on  of  the  shape.  When  they  are  in  place,   trying  to  force  a  change  will  break  the  pot.     (Again:  My  analogy.  There  is  no  clay  in  Clay’s  argument.)    
  62. 62. 62   Organiza7ons  are  hard  to   change  because  they  are   organized.  They  are   intended  to  express  and   execute  a  certain  form  or   (business)  model.   In short . . .
  63. 63. 63   Buy  a  different  pot:     •  “Acquire  a  different  organiza7on  whose  processes  and   values  closely  match  the  requirements  of  the  new  task.”     Start  the  throwing  anew   •  “Spin  out  an  independent  organiza7on  from  the  exis7ng   organiza7on  and  develop  within  it  the  new  processes  and   values  required  to  solve  the  new  problem.”   Create  a  new  pot  with  the  fragments  of  the  old   •  “Create  new  organiza7onal  structures  within  corporate   boundaries  in  which  new  processes  can  be  developed.”   The (only) three ways to change (an inadequate pot) Source:  h5ps://hbr.org/2000/03/mee7ng-­‐the-­‐challenge-­‐of-­‐disrup7ve-­‐change/ar/1    
  64. 64. 64   A new structure from old fragments. How would that work? And is it a (or the only) way to avoid CEM extinction?
  65. 65. PART  FOUR   in  which   The Journey Begins @7m_walters  
  66. 66. 66   “Understanding  a  problem  is   the  most  crucial  step  in   solving  it.”       Clayton  Christensen  &  Michael  Overdorf   4. We’re trying to solve the wrong problem Source:  h5ps://hbr.org/2000/03/mee7ng-­‐the-­‐challenge-­‐of-­‐disrup7ve-­‐change/ar/1    
  67. 67. We know what CX is: “A  customer’s  percep7on  of  a   company  or  brand,  based  on  all  of   their  interac7ons  during  the   customer  lifecycle.”     @7m_walters  
  68. 68. So CEM must be: “Managing  a  customer’s  percep7on   of  a  company  or  brand,  based  on  all   of  their  interac7ons  during  the   customer  lifecycle.”                                                                      Right?   @7m_walters  
  69. 69. Source:  h5ps://willscullypower.wordpress.com/2013/10/23/customer-­‐lifecycle-­‐channel-­‐touches/   The comprehensive “customer lifecycle”
  70. 70. Source:  h5p://blog.evergegroup.com/?p=1177   Infinity . . . and beyond!
  71. 71. So, all we need to so is manage . . . 1000s  of  individual   interac7ons   Over  decades   For  every  one  of  your   customers  (and  prospects!)   Across  n  number  of  segments,  languages,  locales   At  every  stage  of  the  en6re  customer  lifecycle   And,  oh  by  the  way,  make  that  not  only  mul7channel  but     transparently  omnichannel   @7m_walters  
  72. 72. So, all we need to so is manage . . . 1000s  of  individual   interac7ons   Over  decades   For  every  one  of  your   customers  (and  prospects!)   Across  n  number  of  segments,  languages,  locales   At  every  stage  of  the  en6re  customer  lifecycle   And,  oh  by  the  way,  make  that  not  only  mul7channel  but     transparently  omnichannel   And  it  culminates   in  an  individual’s   percep7on,  i.e.,   a  mental  state.       @7m_walters  
  73. 73. In  short,  the  commonly  accepted   defini7on  of  CEM  leads  to  an   inescapable  conclusion:    
  74. 74. CEM  is     IMPOSSIBLE   @7m_walters  
  75. 75. There  is  a     be5er  way.    
  76. 76. Instead  of  the  total  and  totalizing   (and  poten7ally  totalitarian)   customer  lifecycle,  look  at  discrete,   self-­‐contained  customer  journeys   76  
  77. 77. 77   Selected journeys (McKinsey) Source:  h5p://www.slideshare.net/McK_CMSOForum/customer-­‐experience-­‐journey-­‐webinar-­‐v10-­‐091713  
  78. 78. 78   High  value  journeys   “Indifference”   The  journeys  are  high  value  because  they  account   for  the  lion’s  share  of  revenue,  as  well  as   harboring  most  of  the  opportuni7es  to  influence   customer  experiences  (emo7ons,  memories)  and   build  loyalty.     A new (and better) visualization of CX
  79. 79. Cable on-boarding journey •  Customer  makes  decision,  completes  online   form.  (website)   •  Receives  email  with  instruc7ons  for   installa7on  (email)   •  Calls  to  make  appointment  (call  center)   •  Equipment  installed  (field  team)   •  Issues  with  set-­‐up  (website,  call  center)   •  Receives  and  pays  first  bill  (billing,  CRM)   79  
  80. 80. Retail Banking Journeys •  New  account  onboarding   •  Payments  and  transfers   •  Statements  and  fees   •  Loan  applica7on/approval/payback   •  Managing  credit  cards   •  Investment  advice/performance   80  
  81. 81. Higher Education Journeys •  Researching  and  selec7ng   •  Applica7on  (essays,  etc)   •  Financial  aid  (parental  journey)   •  Arrival/star7ng  studies   •  Changing  major   •  Study  abroad   •  Transi7on  to  work   •  Alumni  rela7on$  (advocacy)     (Orange  =  poten7ally  USA  specific)   81  
  82. 82. 82   Manage the “hotspots” Journeys  harbor  the  value   in  the  customer  lifecycle.   Hotspots  are  the   “moments  of  truth”   within  a  journey  that   most  influence  emo7on,   memory,  and  loyalty   “It’s  crucial  to  iden7fy  and  select  the  hotspots  that  really  affect  customers’   experience,  both  posi7vely  and  nega7vely.”    -­‐-­‐  Larvans  Løvlie,  Liveworks   Source:  h5p://liveworkstudio.com/the-­‐customer-­‐blah/the-­‐changing-­‐nature-­‐of-­‐service-­‐experience-­‐design/   Customer   Lifecycle  
  83. 83. §  Traditional isolated touchpoint management is too small to have an impact on CEM. §  Totalized lifecyle management is too big. (And pointless. And impossible.) And it still relies on touchpoints! §  Customer journey management is just right. (Too bad if you don’t know about Goldilocks and the Three Bears.)83   @7m_walters   The right driver for CX improvements
  84. 84. §  Bring together the resources, skills, data, systems, workflows, infrastructure, insights, strategy, etc. to support, improve, and extend a CJ. §  This is “Creating a new organizational structures within corporate boundaries in which new processes can be developed.” A new pot from old fragments. 84   @7m_walters   Change is possible
  85. 85. Benefits of CJM §  Limited  in  number   §  Cross-­‐func7onal   §  Measurable  business  impacts   §  Manageable     §  Provides  framework,  business  jus7fica7on,   and  requirements  that  have  been   desperately  needed  by  intranet,  enterprise   social,  and  managerial  change  ini7a7ves.   85  
  86. 86. Benefits of CJM §  Mapping  a  CJ  determines  where   personaliza7on  is  useful  and  what  kind  of   data  is  needed.   §  Data-­‐for-­‐relevance  transac7ons  are  well   defined  and  easier  to  demonstrate  to   consumers.   86  
  87. 87. •  Informa7on  revolu7on  empowers  consumers.   •  Resul7ng  demand  for  improved  CX  an  ELE.   •  Resistance  is  fu7le  (if  you  want  to  live)  –  but  so  is   a5emp7ng  to  manage  the  en7re  customer   lifecycle.   •  CJ(HS)M  shies  a5en7on  to  the  interac7ons  that   ma5er  most  –  and  provide  the  missing  driver  for   organiza7onal  change.     •  Focus  on  journeys  is  not  a  “start  small,”  “baby   steps”  strategy.  It  is  precisely  what  you  should  be   doing  –  and  you  can  do  it  today.   Summary 87  
  88. 88. P.S. Look on the bright side of extinction 88  
  89. 89. Tim Walters, Ph.D. twalters@digitalclaritygroup.com | @tim_walters

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