Customer Experience as the next decade competitive battlefield - - PowerPoint PPT Presentation
Customer Experience as the next decade competitive battlefield Kaspar Roos Director of InfoTrends Customer Engagement Technology Advisory Service June, 2015 1 Agenda 1. Introduction 2. Customer Communications State of the Market 3.
Kaspar Roos Director of InfoTrends’ Customer Engagement Technology Advisory Service June, 2015
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Industry analyst firm focused on the document imaging and customer communications industries
Boston London Tokyo Shanghai Tel Aviv
Focused Credible Responsive Visionary
– Industry Analyst Firm headquartered in Boston, MA – Key offices in London and Tokyo – Client base include technology companies, enterprises, and
investment firms
– Customer Engagement Technologies – Digital Marketing & Publishing – Print Production Workflows
– Market Research, Sizing & Forecasting – Consulting & Speaking Engagements
@kasparroos kaspar.roos@infotrends.com linkedin.com/in/kasparroos
1990 1995 2000 2005 2010 2015 2020 2025
Manual Generation IT Automation Line of Business Self-Service Mobile, Cloud/SaaS Customer Engagement
FROM: Communications TO: Customer Engagement Printed Documents Structured & Outbound Regulated & Formal Interactive, multi-channel messages Real-time, high frequency, data-driven Supporting business growth
Less than 30% of documents originate from legacy systems Marketing/LOB initiate over half of CCM investments 35% of businesses have self-service Nearly 50% of businesses have mobile app
State of the Market
1% 9% 9% 17% 18% 19% 19% 19% 20% 22% 22% 31% 33% 38% 0% 10% 20% 30% 40% Other Compliance w/ changing regulatory or legal requirements Freedom/agility for business users to manage comms Reduce overall communications cost Reduce strain on IT Drive behavioral change in customers Reduce IT cost Reduce operational cost Reduce risk Increase upsell/cross-sell Reduce customer churn Improve customer experience Better understanding of customer behavior Increase customer loyalty
N = 400 Respondents Western European Enterprises Multiple Responses Permitted Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Q: What are the most important business objectives your company wants to achieve by investing in CCM?
Transactional Communications Promotional Communications Existing customer relationship Customer Retention Maximizing life time value Campaign-driven Customer Acquisition Maximizing conversion rates
Bills Statements Policies Renewals/Cancellations Claim correspondence Pension overviews Etc. E-mail newsletters Direct mail Onserts/inserts Welcome kits Mobile messages Etc. Direct mail Catalogues Brochures E-mail Posters, banners Etc.
~$15B ~$60B
Customer Communications Space
Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Source: CCM Implementation Challenges in Enterprises, InfoTrends, 2013
Customer Communications Life-Cycle
Content Composition Multi-channel Distribution Response Management Data Capture & Customer Analytics
Customer journey: pre-purchase process Customer journey: post-purchase process Business objectives Data-driven, personalized, multi-channel communications Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Evaluate
Engage Advocate Find Learn
Buy/Subscribe
Engage Consume
Customer Lifetime Value Time
Lead Generation Lead Nurturing Conversion Offer Welcome Kits Prospect Inactive Customer Active Customer Lost Customer
Customer Communications Interactions
Onboarding Statements Newsletter / Emails Upsell / Cross Sell Loyalty Offers Reminders / Notifications Renewal Offers Lost Customer Returned Customer Contact Center Calls Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Yes, CMO takes more
37.1% Yes, as advisor to CIO/COO, 33.8% Yes, as advisor to CXO/CDO, 9.7% No, 19.4%
Q: Who in your company is ultimately responsible for the creation, management and delivery of Customer Communications?
CIO, 26.5% CMO, 20.5% COO, 15.0% CCO, 10.8% CXO/CDO, 7.8% Other, 4.5% Don't know, 15.0%
Q: Do you expect the Chief Marketing Officer (CMO) to play a more important role in how the business engages with existing customers?
N = 340 Enterprises in Western Europe N = 400 Enterprises in Western Europe
Source: Customer Engagement State of the Market Study, InfoTrends, 2015
CCM Ownership Future Role of the CMO
France and Germany have somewhat lower share of CMO ownership but not dramatic
27% 34% 35% 31% 26% 16% 24% 21% 20% 16% 21% 18% 25% 23% 42% 36% 40% 35% 38% 46% 31% 11% 9% 9% 13% 19% 13% 23%
0% 20% 40% 60% 80% 100%
Western Europe United States Germany Great Britain France Italy Netherlands
Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Don’t know Other CMO CIO
400 320 80 80 80 80 80 N=
Source: Adapted from The Rise of the CMT, Harvard Business Review July-August 2014
CMO Marketing Coms & Legal Software & Services Providers CIO
Chief Marketing Technologist
Customer Interaction Customer Interaction Customer Interaction
Customer Experience is the perception that customers have of all of their (previous) interactions with an organization. Customer Engagement is how a business engages with its customers. By engaging, the business provides an experience and builds relationships. Relational Loyalty Advocacy Product Usage Lifetime Value
Multi-Channel Synchronization Ease of Use Transactional
Unacceptable Acceptable More than acceptable Dissatisfaction Satisfaction Delight Time
Source: Based on Zone of Tolerance, Robert Johnston & Graham Clark, 2008
Performance Level Customer Experience Level
= Zone of Tolerance = Customer Interaction
Unacceptable Acceptable More than acceptable Dissatisfaction Satisfaction Delight
CX = ENGAGEMENT CX = SERVICE
Shift
Acceptable More than acceptable Satisfaction Delight Time
Shift
Source: Based on Zone of Tolerance, Robert Johnston & Graham Clark, 2008
= Zone of Tolerance = Customer Interaction
Performance Level Customer Experience Level
5% 19% 20% 21% 23% 25% 26% 30% 40% 43% 43% 0% 10% 20% 30% 40% 50%
Access improvements for disabled customers, e.g., braille Better channel preference management Synchronizing CX across multiple touch points Proving customer-facing staff with real-time comms history More billing or payment options, e.g., mobile payments Offering digital mailboxes Offering or expanding mobile communications Better social media monitoring and responding Better data-driven personalization and relevant comms Better tailored offerings Offering or expanding digital self-service capabilities
N = 124 Western European Respondents who invest in CCM to improve customer experience
Multiple Responses Permitted
Q: How does your company plan to improve customer experience as it relates to customer communications?
Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Regional Bank, United States
“That is something that we’re starting to work on. If you call the call center today and would call them tomorrow with the same issue we do tracking on that. But it’s channel specific. You can go to a branch and then to the web, we’ll never know you went to the branch and then to the web. The contact center does not see that. We’re trying to get the look and feel the same. Retail is really driving this. From operations we’re trying to attach ourselves there; we want our inserts to match with what you see at the branch. That the mobile and the internet experience will match the branch experience and the paper experience… that’s two years away. But we’re doing the ground work now. There’s a plan for it. ”
Synchronized Customer Experience Interview quote:
Impacting customer experience & loyalty
cannot be honoured because
Contact Center Customer
Why (and how) do companies focus on optimizing the customer experience?
– Better targeted offerings (e.g. up-sell, cross-sell) – Personalization (if done well) enables more relevancy in communications
– Enabling digital self-service portals – Provide mobile platforms – Focus on providing (and honouring!) channel preference management
– Provide consistency in brand, style and messaging – Provide same experience for offline and online channels – Create customer loyalty by delivering excellence in customer communications
5% 6% 6% 8% 8% 11% 15% 15% 17% 19% 20% 21% 22% 0% 10% 20% 30%
Best next-action engagement (real time) Lead analytics and scoring Customer service analytics Predictive modeling Customer journey mapping Social media analytics Location intelligence Deeper/more sophisticated customer segmentation Behavioral analytics Better customer experience analytics Creation of a single customer view Better integration of siloed data Better capture of customer experience data Multiple Responses Permitted
Q: What of the following data analytic initiatives are you planning for 2015-2016?
N = 124 Western European Respondents who invest in CCM to improve customer experience Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Customer Communications Life-Cycle
Content Composition Multi-channel Distribution Response Management Data Capture & Customer Analytics
3% 5% 8% 8% 13% 15% 17% 17% 17% 17% 21% 24% 25% 33% 0% 10% 20% 30% 40% Kano model SERVQUAL/RATER Customer lifetime value (CLV) Print error/delivery fault rate Net Promoter Score (NPS) Online conversion rate (upsell/cross-sell) Sales cost per customer Email click-through-rate (CTR) Help desk traffic/volume Customer retention rate Average Order Value Number of web visits Response Rates Customer satisfaction index (CSI) Multiple Responses Permitted
N = 400 Western European Respondents
Q: What KPI's do you use to track customer engagement/experience?
Source: Customer Engagement State of the Market Study, InfoTrends, 2015
Size represents % of respondents
Descriptive Predictive Sentiment Performance
Kano Model: 3.0% Response Rate: 28.5% Customer Satisfaction Rate: 30.0% # Web Visits: 26.4% Avg Order Value: 20.8% Sales Cost / Customer:18.3% Helpdesk Traffic: 17.8% Online Conversion Rate: 16.9% Customer Retention Rate: 16.3% Net Promotor Score: 12.4% Print / Delivery Error Rate: 10.1%
Customer Lifetime Value: 9.4%
SERVQUAL/Rater: 8.0% N = 800 Respondents Source: Customer Engagement State of the Market Study, InfoTrends, 2015
$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00
0.65 0.7 0.75 0.8 0.85 0.9 0.95 1
Customer Retention Rate
0.99 Assumptions:
cancelation time
that the customer cancels in any other period
Future Financial Impact (CLV)
+60% +10% +200% +5% Simplified CLV Model
Source: Segmentation and Lifetime Value Models using SAS, Malthouse 2013
– Marketing communications and process communications
(critical business communications) are converging
– Marketing Getting More Influence
– Consumers dictate how business should communicate – Consumers have channels (e.g. social media) now to have
their voices heard
businesses
– CX becoming competitive differentiator – Risk of losing businesses when communications are
perceived to be under par
New metrics for a new model
The shift from marketing products to cultivating customers demands a shift in metrics as well
Customer profitability Customer lifetime value Customer equity Customer equity share PRODUCT PROFITABILITY CURRENT SALES BRAND EQUALITY MARKET SHARE
Old approach NEW approach
New Model Requires Alignment of People, Process and Technology
Excellence
PROCESS
Communications
Social
PEOPLE TECHNOLOGY
@kasparroos