This presentation on Customer Experience Management was delivered at The Social CRM Conference in Singapore on the 21/01/2014. The event was attended by Senior Marketing Executives from around the Asia Pacific and Japan region.
- 1.SOCIAL CUSTOMER EXPERIENCE MANAGEMENT Social CRM 2014 21st of January, 2014 | Sheraton Tower, SingaporeNicholas Kontopoulos Senior Director, Global Product Marketing SAP Solutions for Sales, Marketing and Customer Service
2. OP + NT = EOP 3. This is the dawn of Generation C. Where "C" represents a connected society based on interests and behavior. Gen C is not an age group -ITS A WAY OF LIFE.- Brian Solis, author and digital analyst 4. THERE HAS BEEN A 5. CUSTOMERS ARENO LONGER PASSIVEThey are now armed to the teeth. 6. EVANTUBE HD ENGAGING THE BUYERS OF TOMORROW 7. EMPOWERED CUSTOMERS ARE Digitally Connected79%of customers spend at least 50% of total shopping time researching products online.Socially Networked53%of customers abandoned an instore purchase due to negative online sentiment.Better Informed59%of customers are willing to try a new brand to get better customer service. 8. EVERY MINUTE OF EVERYDAYSOURCE: DOMO, INC.48 hrs3,125$272,0702173,600100,000347204,167,66747,0005712,000,00034,7222,083684,47861,141of YouTube uploadsnew mobile web usersWordpress blog postsnew websitesFoursquare check-insFlickr photosInstagram photosEmail messagesGoogle queriesFacebook sharesConsumers spendTwitter tweetsApple app downloadFacebook likeshours of music uploaded 9. THIS CHANGES THE RULES FOR MARKETERS2.4 BILLIONbrand-related conversions happen in America everyday. SOURCE KELLER FAY GROUP 10. THIS CHANGES THE RULE FOR MARKETERS.IN ASIA PACIFIC, 59% OF CONSUMERS COMMENT ABOUT BRANDS ONLINE. 11. AND IT RAISES THE STAKES FOR CUSTOMER SERVICE59%of customers are willing to try a new brand to get better customer service. SOURCE AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER 12. IT CREATES A NEW KIND OF THINKING AROUND SALES57%of the buying process is completed before a rst interaction with sales. SOURCE CUSTOMER EXECUTIVE BOARD 13. WHILE CUSTOMER EXPECTATIONS CONTINUE TO RISE71%of customers dont think companies are doing anything to keep their business. SOURCE AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER 14. DIGITAL DARWINISM: When technology and society evolve faster than the ability for companies to adapt. - Brian Solis 15. COMPANIES ARE STRUGGLING TO BREAKTHROUGH & ENGAGE THEIR CUSTOMERS. 16. OP + NT = EOP 17. DUDE, ITS NOT ALL ABOUT THETECHNOLOGY 18. THERE IS NO SINGLESILVER BULLET SOLUTION 19. 21ST CENTURY CUSTOMERS REQUIRE A 21ST CENTURYMANAGEMENT RESPONSE 20. REINVENTING MANAGEMENTFOR THE 21ST CENTURY REINVENTING History Lesson on Management 1.0 MANAGEMENT FOR THE 21ST CENTURY GARY HAMEL An excerpt from the University of Phoenix Distinguished Guest Video Lecture Series 21. HISTORY LESSON ONMANAGEMENT 1.0 1890:90% of the then developed world workedin agriculture & the average manufacturing rm employed 4 employees. 1915: Ford was making a million cars and US Steel was the rst company in history to urnover $1b a year. 22. HISTORY LESSON ONMANAGEMENT 1.0 1920: By this time most of the tools for modern management have been created:Pay for PerformanceCapital BudgetingTask DesignDivisionalizationSince then the way we manage has hardly changed.Brand Management 23. 19TH CENTURY ENGAGEMENT Sales & Marketing FunnelAwareness Interest Desire Action 24. CUSTOMERS REQUIRE A NEW 21ST CENTURY ENGAGEMENT MODEL DRIVEN BY SOCIAL SHARECOMPARETRIGGER EVENTRESEARCHSHOPPURCHASE 25. OP + NT = EOP 26. If you keep on doing what youve always done, youll keep on getting what youve always got. - W L Bateman 27. WE NEED TO RETHINK OUR MARKETING & SALES STRATEGIES. LETS START WITH BINNING THE CONCEPT OF ago-to-market strategyand replace it withA GO-TO-CUSTOMER STRATEGY 2011 SAP AG. All rights reserved.Public29 28. WHICH ACRONYM do I start with?SCRM CXSocialCEM CRM 29. Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workow, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually benecial value in a trusted and transparent business environment. Its the company's response to the customers' ownership of the conversation. - Paul Greenberg 30. CUSTOMER EXPERIENCE MANAGEMENT 2011 SAP AG. All rights reserved.32 31. CUSTOMER EXPERIENCE The customers perceptions and related feelings caused by the one-o & cumulative eect of interactions with a suppliers employees, systems, channels or products.Source: Gartner 32. Or, the aggregatedmemories of everytouch a customer has with your company 33. CUSTOMER EXPERIENCE MANAGEMENT The practice of designing and reacting to customer interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy.Source: Gartner 34. Or delivering the consistentcustomer experience across the entire enterprise 35. Every sale has ve basic obstacles: no need, no money, no hurry, no desire, and no trust.- Zig Ziglar 36. OP + NT = EOP 37. OK, BUT HOW DOESENTERPRISE CRMFIT INTO CUSTOMER EXPERIENCE MANAGEMENT THEN? 38. RM C 39. WE CAN DESIGN & DELIVER YOU A WORLD CLASSCRM STRATEGY NO PROBLEM! 40. COMPLEXITY 41. EXCESSBAGGAGE 42. CRM IS NOT ABOUT SOFTWAREIT IS AN IDEOLOGY 43. IT IS ABOUT CONNECTINGEMPLOYEES TO CUSTOMERS 44. IT IS ABOUTDELIGHTING YOUR CUSTOMERS 45. AND SEEING THEM AS MORE THAN JUST A NUMBER ACCOUNT NUMBER 23058399 TRANSACTION NUMBER 00092374 COMPLAINT NUMBER CP09938 REVENUE NUMBER $ 46. AND AS COMPANIES MOSTVALUABLE ASSET 47. OP + NT = EOP 48. Its now your obligation to study how, where & why customers are connecting and how they are making& inuencing decisions.Who said it? Brian Solis 49. It takes a mere 5% ofINFORMED INDIVIDUALSto inuence the direction of a crowd of up to two hundred people. - Professor Jens Krause, Leeds University 50. Respondents time after time end upconcludingthat they lead the group even thoughthey were lead by others. - Professor Jens Krause, Leeds University 51. PEOPLE MAKE DECISIONS BASED ON THESHARED EXPERIENCES OF OTHERS 52. WHERE DO YOU START? 53. YOU NEED ASTRATEGY 54. 077 STEPS TOGET STARTED06WITH CEM05 04 0302 01Build a cross-functional work teamMap the customer journeyConsolidate customer data collection/VoCCreate a governance mechanismMap the customer experience ecosystemSelect projects that build momentumDene key elements of a strategySource: 1to1 Media 7 Steps to Get Started With Customer Experience 55. CRM SUCCESS FACTORS: STRATEGY, PROCESS, TECHNOLOGY, AND PEOPLEDeploy new technology that supports required process flows.(February 2012)Business goals and objectivesDevelop process flows to achieve the selected strategy.TechnologyProcessApps and infrastructureProcedures and business rulesGet target users to successfully utilize the applicationsSource: Forrester Navigate the Future of CRMStrategyPeople Organizational structure, skills, and incentivesCondition the organization to adopt new processes. 56. AVOID BECOMING ONE OF THESE STATISTICS BY RETHINKING YOURCRM STRATEGY25% of rms reported that poorly31% of rms reported that poor48% surveyed admitted they suered21% of businesses stated the needdened business requirements had a negative impact on projects.technical/integration diculties.Source: ComputerWeekly.com Forrester; Rethink Your CRM Strategybusiness process design accounted for project failures.to customize CRM. 57. CUSTOMER EXPERIENCE LEADERS OUT PERFORM THE LAGGARDS+22%- 46%Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance. SOURCE: FORRESTER RESEARCH 2012 58. OP + NT = EOP 59. SAP CASE STUDIES 60. AT A GLANCE Objective Transform STMs one-to-one marketing strategy to drive loyalty and improve the customer experience through fare and route advice, and geo-localized partner rewards.Solution SAP CRMBenets Increased fare revenue from greater ride frequency and non-fare revenue from partner ecosystem At STM our marketing objectives are to generateadditional ridership and non-fare revenue. To do this we realised we needed to engage better with our existing customers and provide a better user experience, information, and value. PierreBourbonnire Head of Marketing 61. Loyalty IntegrationEnhance the Rider ExperiencePersonalized OffersRedemptionTransit Directions 62. AT A GLANCE Objective Take on larger rivals by providing a delightful social media experienceSolution SAP Social Media Analytics by NetBase SAP Cloud for Social EngagementBenets Meet increasing demand for social media interaction without scaling team. Reduced churn. More cost-effective customer acquisition with marketing messages based on social buzz.Looking at our results with social engagement, the ROI is tremendous. We are getting a 94% resolution rate as compared to our usual 11-12%. We are seeing tremendous ROI servicing our customers on social using these tools. Krissy Espindola Director, Knowledge Management & Social Customer Support 63. AT&T AND T-MOBILE SLUG IT OUT OVER A CUSTOMER ON TWITTER 64. USING SOCIAL TOLISTEN, UNDERSTAND, AND ENGAGE THE FULL SOCIAL WEBLISTEN SAP Social Media Analytics by NetBase YOUR TARGET AUDIENCEUNDERSTAND Fan Appz, an SAP Cloud Partner PERSON TO PERSONENGAGE SAP Cloud for Social Engagement 2011 SAP AG. All rights reserved.Public69 65. OMNI CHANNEL BUILDING A CONNECTED ENGAGEMENT PLATFORM 66. YOURCUSTOMERS DONT CLOCK OFF AT 5PM24/7 BRANDS 67. TODAYS CUSTOMERS WANTINSTANT GRATIFICATION 68. WATCH OUT FOR THECREEPY FACTOR 69. 90%of word-of-mouth conversations about brands take place oine. PRIMARILY Face-to-face, in peoples homes and oces, in restaurants and stores.ANYWHEREPEOPLE CONGREGATE.Source: KELLER FAY GROUP 70. 1.5 BILLION MILLENNIALS GLOBALLYCOMING OF AGE In 2011, the youngest hit their mid-teens & the oldest entered their 30sYOUTH QUAKE Gen Y Impact 71. OP + NT = EOP 72. It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. - Charles Darwin 73. CHANGEIS THE BIGGEST OBSTACLE But CHANGE has now changed. It is now Ever surprisingUnrelentingUnforgivingOnly going to get faster and faster and faster... 74. Adapt or Die 75. AVOID DIET PILL APPROACHSHORT TERM GAINS 76. BEWARE OF ISLAND SOLUTIONS 77. BUILD A CONNECTED ENTERPRISE BY BRINGING TOGETHERPEOPLE + PROCESS +TECHNOLOGY 78. COMPETITIVE ADVANTAGEREQUIRES HARD WORK 79. OP + NT = EOP 2011 SAP AG. All rights reserved.Public84 80. KEY TAKEAWAYS 81. OLD RECIPES NO LONGER WORKCRM MUST EVOLVE BEYOND THE FRONT OFFICETACTICALSTRATEGICTO BE IN THE GAMEINTERNAL FOCUSTO WIN THE GAMECUSTOMER FOCUSFront Oce Front Oce EFFICIENCYInside - OutFOCUS ON 1:1CUSTOMER ENGAGEMENTCustomer EXPERIENCEEFFECTIVENESSInside - OutTO CHANGE THE GAMEOutside - In 82. TO WIN TODAY YOU MUST ALIGN YOUR MARKETING AND SELLING MOTION TO YOUR BUYERS JOURNEY AWARENESSCUSTOMERSet CriteriaCommit to ChangeLoyal or a DetractorAssess RiskCompareBRAND ADVOCATEPurchaseBUYERS JOURNEY TargetDiscoverGuideWinSELLING MOTION Dierentiate & ValueShape VisionInuenceCloseBuild CondenceSupport 83. TURN INSIGHT INTO ACTION TO CREATE EXCEPTIONAL EXPERIENCES Understand customersIdentify opportunitiesPredict their needs & behaviorInteract with customers 1:1 in the moment when it matters across channels & touch pointsINSIGHTEXPERIENCE EXECUTIONDrive operational excellenceEmpower employees & partnersDeliver on your promises 84. Youve got to start with the CUSTOMER EXPERIENCE and work back toward the technology. - Steve Jobs 85. OP + NT = EOP 2011 SAP AG. All rights reserved.Public90 86. ? 2011 SAP AG. All rights reserved.Public91 87. Old Process + New Technology =Expensive Old Process 88. about.me/nicholask71 89. THANK YOU! Feel free to connect with me at : Nicholas.firstname.lastname@example.org #nicholask71 http://sg.linkedin.com/in/nicholaskontopoulos2013 SAP AG. All rights reserved.