24
CUSTOMER- DRIVEN CAPABILITIES MATURITY MARKET- DRIVEN RELATIONSHIP- DRIVEN EXPERIENCE- DRIVEN THE DIFFERENCE IS THE EXPERIENCE The journey to become a truly customer experience-driven company PA Consulting Group’s Customer Experience Management Report 2016

The journey to become a truly customer experience-driven company

Embed Size (px)

Citation preview

Page 1: The journey to become a truly customer experience-driven company

CUSTOMER-

DRIVEN

CA

PA

BIL

ITIE

S

MATURITY

MARKET-

DRIVEN

RELATIONSHIP-

DRIVEN

EXPERIENCE-

DRIVEN

THE DIFFERENCE

IS THE EXPERIENCE

The journey to become a truly customer experience-driven company

PA Consulting Group’s Customer Experience Management Report 2016

Page 2: The journey to become a truly customer experience-driven company

ABOUT

PA is a consulting, technology and

innovation firm. We define success as

achieving exceptional results that have a

lasting impact on businesses, communities

and individuals worldwide.

This principle has remained the cornerstone

of our ethos since 1943 – and it continues to

underpin everything we do.

Our clients choose us because we challenge

convention to find the solutions that really work

– in practice, not just on paper. Then we roll up

our sleeves and get the job done.

At PA we don’t just believe in making a

difference. We believe in making the difference.

PA CONSULTING GROUP

2

Page 3: The journey to become a truly customer experience-driven company

FOREWORD

Great customer experiences are not built overnight.

Organisations know strong customer experience management

is essential for long-term success, but often stumble when

deciding which resources and initiatives to prioritise

Troels Gregersen

Nordic head of Business Design

Claus Høyer Madsen

Nordic head of Digital

In our research, we surveyed 95 international

senior professionals across a range of sectors and

we have defined eight customer experience

dimensions that form the foundation of any

customer experience strategy – understand your

customers, be driven by insight, innovate as usual,

balance the approach, differentiate value

propositions, design the journey, provide channel

choice, personalise the experience.

And we did not stop there. We then went on to

define how these dimensions are correlated with

best practice to develop our Customer Experience

Management Maturity Model. The model sets out

where organisations should be starting their

customer experience management journey and in

what order they should be implementing initiatives.

Our research reveals that the value of this

prioritisation should not be underestimated.

In fact, an organisation that increases its customer

experience management score by 10% can expect

to see a boost in its customers’ satisfaction by 5%.

In turn, a 10% increase in customer satisfaction is

seen to improve financial results by around 5% –

enabled by an increase in revenue and growth of

market share.

We also found that most of the organisations

we surveyed are placed at the bottom end of

our maturity model – with very few achieving

the highest maturity level of customer

experience management.

We urge these companies to up their game,

consider the right customer experience

management ambition for them and adopt the

appropriate mindset to compete and thrive.

A number of leading organisations, detailed

throughout our report, demonstrate that by

rethinking their approach to customer experience

management and by prioritising initiatives

correctly, great opportunities can be seized.

3

Page 4: The journey to become a truly customer experience-driven company

WE MAKE THE

DIFFERENCE

THE

4

Page 5: The journey to become a truly customer experience-driven company

ABOUT OUR

RESEARCH

We surveyed 95 international senior professionals

from a range of sectors to identify a best practice

approach to customer experience management that

drives greater market performance and financial

results.

The respondents came from a variety of sectors

including energy, financial services and public sector;

organisations with a national, international and global

reach; and those with revenues ranging from millions

to multi-billion dollars.

From this research we developed our Customer

Experience Management Maturity Model. The eight

dimensions that make up our model, which we explore in

more detail on page 9, were ranked on each maturity

level – depending on the number of best practices

associated with them and their importance to that level.

The most important best practices for each maturity level

were then mapped against the eight dimensions to create

a priority list for what best practices should be focused on

to improve your score for the dimension in question.

Our research revealed that the most important

capabilities to the lower levels of maturity were also

important to the higher maturity levels – indicating

that as organisations improve their customer

experience management maturity, they need to be

building on foundational ‘basics’.

This methodology allows organisations to clearly see

what dimensions, and associated best practices, require

prioritisation to move up along our maturity model to

achieve the level of ambition appropriate for each.

DEVELOPING OUR CUSTOMER EXPERIENCE MATURITY MODEL

5

Page 6: The journey to become a truly customer experience-driven company

Our survey results reveal that improving your organisation’s

customer experience management score by 10%, and taking

your organisation through each stage in our Customer

Experience Management Maturity Model, can boost your

customers’ satisfaction score by 5%.

To put this into context, organisations that have improved

their customer experience management score by 10%,

e.g. from 6 to 6.6, have seen a 5% positive impact on how

satisfied their customers are. Your customer satisfaction can

be measured by how successful you are in providing value

to customers, your ability to retain customers and attract new

customers, and your ability to bring new products and

services to the market.

THE IMPACT OF GOOD

CUSTOMER EXPERIENCE MANAGEMENT

increase in your

customer experience

management score10%

5%will often

raise customer

satisfaction by

The survey results also prove that a similar effect is true for

converting satisfied customers into strong financial results

– a 10% increase in the former is proven to lead to around 5%

increase in the latter compared to competitors.

This means that a 10% improvement of your customer

experience management score is likely to improve your

financial results by 2.5%.

It is clear that the importance of keeping customers satisfied is

hitting home, with 80% of CEOs stating that customer

experience is the main area they are competing on – up from

30% compared to a few years ago*.

*Finding from PA’s 2014 customer experience survey

10%

5%will often

improve financial

results by around

increase in your

customer

satisfaction

6

Page 7: The journey to become a truly customer experience-driven company

Improves customer

satisfaction compared

to competitors by

5%

Improving customer

experience

management by

10%

Improves financial

results compared to

competitors by

5%

Improving

customers’

satisfaction by

10%

CUSTOMER

EXPERIENCE

MANAGEMENT

HAPPY

CUSTOMERS FINANCIAL

RESULTS

7

Page 8: The journey to become a truly customer experience-driven company

8 CUSTOMER EXPERIENCE

MANAGEMENT DIMENSIONS

We have identified eight capabilities, outlined on the right, that organisations can evolve and improve to

achieve customer experience management maturity. Based on our extensive experience, and drawing on

best practice, these dimensions formed the foundation of our survey. We asked respondents to rate their own

ability to execute on each of these dimensions and the respondent’s average score of these dimensions

constitutes their customer experience management score.

In figure 1 we have highlighted the average score of all companies in relation to each dimension.

UNDERSTAND YOUR CUSTOMERS

Of the eight customer experience management dimensions,

organisations rated ‘understand your customers’ as what they are

best at managing. Given that customer segmentation has been a

well-recognised, well-integrated business discipline for many years,

companies have built up strong capabilities within this dimension.

PA customer experience expert, Jacob Klit, comments:

“In general, all companies have segmented their customers. However,

this segmentation is often ‘inside-out’-driven based on industry codes,

sales volume or cost-to-serve parameter from an operation point of view.

These companies are therefore missing out on the full potential of driving

top line growth and customer centricity. Building effective and relevant

customer relationships to grow B2B accounts or share of wallets among

consumers requires implementation of need-based segmentation.

Need-based segmentation, based on for example psychographic

and behavioural characteristics, is used by best practice B2C and B2B

companies – but is not that difficult to implement. It can actually be

completed in around 12 to15 weeks”.

KEY HIGHLIGHTS

We have highlighted

the overall highest

and lowest scoring

dimensions in our

survey.

PERSONALISE THE EXPERIENCE

At the other end of the spectrum is

personalisation. This is a relatively new

discipline that requires a whole new set of

skills and it is the dimension we see

organisations struggling to master.

As Dave Peters, CEO and founder of Emagine,

warns: “Getting personalisation right requires an

all-or-nothing approach. The aim of

personalisation is to foster a better customer

relationship that is rooted in value and relevance

for the individual; marketing to one, not many.

It’s about understanding a customer’s needs

and preferences and connecting with them in

a manner that suits them in order to extract

maximum customer value and protect the

relationship”*.

7.4 /10 5.5 /10

8

*http://www.mycustomer.com/marketing/strategy/personalisation-how-to-build-a-successful-strategy

Page 9: The journey to become a truly customer experience-driven company

5.5 /10

6.1 /10

6.1 /10

6.2 /10 6.5 /10

6.7 /10

6.9 /10

7.4 /10

UNDERSTAND YOUR CUSTOMERS

Your organisation identifies customer needs and this

helps you to allocate resources to product development,

marketing, service and delivery programmes.

You track your customer experience quality for each of

the segments using the customer segment perceptions

as the ultimate test of what is ‘good’.

CUSTOMER

EXPERIENCE

MANAGEMENT

FIGURE 1: HOW ORGANISATIONS RANK THEMSELVES ON THE EIGHT KEY DIMENSIONS

BE DRIVEN BY INSIGHT

Your organisation has an accurate, consistent and

shared understanding of who your customers are,

what they want and how they perceive the interactions

they are having with your company today.

INNOVATE AS USUAL

Your organisation constantly experiments,

measures, learns with your customer and

adjusts to develop the optimal experience

across all channels.

BALANCE THE APPROACH

Your organisation optimises the balance between the

rational and emotional interactions, i.e. the functionality

and the feelings that your product or service ignites.

DIFFERENTIATE VALUE PROPOSITIONS

Your organisation has clear and unique value propositions

for each of your customer segments based on specifically

defined customer needs.

DESIGN THE JOURNEY

Your organisation clearly maps customer

touchpoints and interactions, defining how to

interact with the customers in these touchpoints.

This means knowing where the ‘magic moments’

and ‘pain points’ are, and how to build new

experiences that resonate with your customers.

PROVIDE CHANNEL CHOICE

Your organisation formulates and executes

a clear channel strategy to engage all

customers and allows them to seamlessly

move between the channels they choose

to interact in.

PERSONALISE THE EXPERIENCE

Your organisation creates a personalised experience

based on the customer’s interests, previous

experiences, their purchase and

behavioural history.

9

Page 10: The journey to become a truly customer experience-driven company

PA’S CUSTOMER EXPERIENCE

MANAGEMENT MATURITY MODEL

From our research it became clear that there is a clear

sequence in the way best practice companies build up

their customer experience management capability. The

unique maturity model that we have developed, based

on their responses to more than 50 questions related to

customer experience management, clarifies the customer

experience priorities of any organisation – dependent on

the customer maturity they have already achieved.

Our Customer Experience Management Maturity Model,

outlined in figure 2, displays which capabilities need to

be developed to meet each of the four levels within the

model – ‘market-driven’, ‘customer-driven’, ‘relationship-

driven’ and ‘experience-driven’ – together with the best

practices required to build the capabilities.

It is important to note that while it is possible to start

working towards the more advanced capabilities required

in the later stages of maturity, it is essential for

organisations to master the more basic capabilities

to ensure long-term success.

It is also vital for organisations to not lose focus on the

lower level capabilities as they advance further up the

maturity model – the basics must always be maintained

to enable your high-level capabilities. Your organisation

will, for instance, need to implement customer

segmentation well to enable personalisation.

We found that the vast majority of organisations

we surveyed are still placed at the bottom at

‘market-driven’ and very few have made it

to the ‘experience-driven’ level.

Many organisations rate themselves well on certain

dimensions such as ‘understand your customers’ and

‘be driven by insight’, but there was no consistency

through the dimensions that make up the required steps

taking them up the model’s levels. This can be a cause

for concern since improving customer experience

management enables companies to outperform their

competitors through improved customer satisfaction.

10

Page 11: The journey to become a truly customer experience-driven company

MARKET-DRIVEN

• Fix the basics of your

go-to-market strategy

• Understand your customers

• Understand the value you

provide to them

• Use analytics to create

overview of product portfolio,

sales and earnings.

UNDERSTAND

YOUR

CUSTOMERS

DIFFERENTIATE

VALUE

PROPOSITIONS

CUSTOMER-DRIVEN

DESIGN

THE

JOURNEY

BALANCE

THE

APPROACH

RELATIONSHIP-DRIVEN

• Build and attract digital skills

• Enable personalisation

through digitisation

• Build relationships and

include customers in

structured co-creation

• Build organisational capacity

to quickly act and react to

market changes.

BE

DRIVEN

BY INSIGHT

PERSONALISE

THE

EXPERIENCE

EXPERIENCE-DRIVEN

• Explore and optimise channel

options

• Create new ways to engage

the customer and revisit and

redesign service ecosystems

• Remain curious and agile

• Leverage the full potential of

digital.

PROVIDE

CHANNEL

CHOICE

INNOVATE

AS

USUAL

• Make top management

accountable

• Enforce customer-centric

mindset – and focus on it daily

• Design customer journeys to

deliver ‘magic moments’

• Understand what drives

customer demand and

behaviour – and build

capability to predict it

• Actively use customer

analytics to drive development

of new offerings.

Improving

the basics

good to great

great to excellent

excellent to world-class

11

FIGURE 2: PA’S CUSTOMER EXPERIENCE MANAGEMENT MATURITY MODEL

Page 12: The journey to become a truly customer experience-driven company

CASE STUDY

IMPROVING THE BASICS

This international airline was looking to target its customers

on a more personal level using strong, evidence-based

insight.

The carrier had various sources of data at its disposal,

including frequent flier information, customer satisfaction

surveys, transaction and booking data, and customer

complaints. However, these were all analysed in silos

– preventing the airline from creating integrated insights.

PA took an approach deeply rooted in analytics to create

a number of ‘myth busters’ about the preconceptions the

airline had about its customers. We identified six clear

customer segments and a profile was created for each

segment to understand what truly mattered to them.

We also found that many customers were not booking with

the airline directly – a key area where the organisation was

losing money. Therefore, converting them to book with the

carrier, and not through an agent, became a main priority

for the organisation.

As a result of this analysis, we were able to identify £35

million of incremental revenue opportunities.

During their engagement with

us, PA provided some really

excellent insights into our

consumer needs and

expectations – including their

service and technology

requirements. The level of

insight gained through PA’s

customer modelling expertise

went well beyond what we

believed was possible using

core analytical techniques alone.

Marketing Director

Identifying a

£35 million

opportunity

for an

international

airline

12

Page 13: The journey to become a truly customer experience-driven company

13

Employees understand

the needs of your

customers

A single view

of go-to-market

Implement

product portfolio

management

Systematic sales

planning and

budgeting

Near-real time

monitoring of

profitability

Ensure your employees

understand their own role in

meeting the customers’

needs.

Develop a strategic

management framework that

outlines your organisation’s

policy on a single view of

brand, product and/or service,

customer and channel.

Your company should have

a clear overview of your

product/service portfolio,

including profitability and

lifecycle of individual items.

Ensure you share this

knowledge with the

employees who are

responsible for sales and

service.

Your sales planning and

budgeting should be based

on history and projections,

and you should implement

rigorous sales performance

management.

Is your company able to

monitor profitability per

region, market,

customer channel,

product/service category and

item based on near-real time

data? If the answer is no, this

should be made a priority.

MARKET-DRIVEN

OVERVIEW

13

Two customer experience management dimensions are especially important when fixing the basics of your organisation’s

customer experience: knowing your customers and segmenting your customers’ needs.

Through our research, we identified the five most important capabilities that will improve your ability to execute on these two

dimensions. In essence, it is these capabilities that are the foundation for performing well at the market-driven level.

Page 14: The journey to become a truly customer experience-driven company

With up to 70,000 passengers passing through the doors of the

airport each day, it is safe to say the airport’s employees have

their work cut out for them.

With high aims for passenger growth and own place in the

transportation landscape, the airport identified service

excellence as one of the key ‘breakthrough’ areas that would

take its customer experience from ‘good’ to ‘great’.

Having already won the industry award for great service five

times in the last ten years, the airport engaged PA to help define

service excellence and develop the service value proposition for

each of the five customer groups. Working with the leadership

team, we defined customer personas, customer journeys and

the desired experience for each customer, together with

initiatives to improve the service delivery.

PA also supported the development of five ‘playbooks’ for each

customer group that outlined service standards, guidelines and

key performance indicators. Furthermore, we put together over

200 initiatives for how airport staff could interact with customers

within each touchpoint, defined the governance model, created

a roll-out plan and initiated the development of their training

programme.

International

airport: Taking

customer

experience

from good to

great

CASE STUDY

GOING FROM GOOD TO GREAT

As a result of PA’s work,

the airport now has a clear

view on how to continuously

improve its customers’

experiences in the next three

years and is in a good state

to start embedding the new

service excellence concept

across the entire organisation.

14

Page 15: The journey to become a truly customer experience-driven company

15

CUSTOMER-DRIVEN

OVERVIEW

Customer-centric

leadership

Top management is

accountable for customer

experience results

Overview of

customer journey

Employee

commitment to

brand and values

Data-driven and timely

analysis of customer

demands

Most leaders understand the

importance of having a

customer-centric mindset,

but not all leaders take active

steps to develop one.

Clear communication and role

modelling is key here.

Customer-driven companies

assign clear responsibility and

accountability in the top

management for the

Customer experience related

financial results.

A prerequisite is that you can

measure the customer

experience management

related financial results in

clearly defined key

performance indicators.

You must develop a clear

overview of all customer

journeys linked to the touch-

points in which value is

created.

Ensure your employees

understand and embody your

products or services but also

your brand, heritage, story

and company values.

Your customer analytics must

be data-driven and timely

– and provided at multiple

times throughout the year,

so you can monitor changing

customer demands.

You should also be capable

of responding to these

changing demands.

15

When you have developed the capabilities that enable you to perform at a market-driven level, you are in a position to start

working towards the next level in the maturity model.

Organisations that are customer-driven manage clear customer segments and segmented value propositions, but also identify

where ‘magic moments’ occur and find a fine balance between the rational and the emotional interactions with their customers.

Below are the capabilities required for your organisation to reach the customer-driven level.

Page 16: The journey to become a truly customer experience-driven company

To meet increasing customer demands, and deliver a seamless

experience across all channels, a large retail bank wanted to

harness the power of digital and transform its business model.

The bank quickly realised it had a wealth of transaction data

from different applications available which it could use to create

insights into its customers to help it improve service and develop

new products.

Working shoulder-to-shoulder with the bank, we designed

an advanced data analytics platform and ran several insight

projects, delivered within 6-8 weeks which identified all customer

journeys, predicted how customers were going to behave in

those journeys and identified any areas within those journeys

where bottlenecks would occur.

Using this data-driven approach, the bank was able to

significantly improve its level of customer service. Within 1 year

alone, we were able to remove 400,000 unnecessary and costly

interactions with customers. Not only did this lead to a potential

€4 million reduction in costs, but customers also received more

efficient responses to their queries.

CASE STUDY

GOING FROM GREAT TO EXCELLENT

Unlocking

the digital

potential for

a leading

retail bank

As a result of our work, the bank

now has a well-trained customer

service team that successfully

generates and completes insight

projects, innovates new

methods for analysing data and

is able to capitalise upon

business benefits. This has

already led to new business and

improved conversion rates for

the number of people visiting the

website, making appointments

and buying products.

16

Page 17: The journey to become a truly customer experience-driven company

17

RELATIONSHIP-DRIVEN

OVERVIEW

Clear roles and

responsibilities for

customer interaction

Predictive

analysis

of demand

Systematic

tracking of

customer behaviour

Employees

with competitive

digital skills

Structured

co-creation with

customers

Your company must have

clearly assigned roles and

responsibilities when it comes

to interacting with the

customers.

Collect real time demand

forecasts that are

consolidated and presented

electronically through

predictive analytics.

Do you know what your

customers do and not just

what they say?

Your organisation should be

capable of using systematic

tracking of target customer

segments when it comes to

behaviour, preferences and

behavioural drivers.

The digital age has brought

about new ways to engage

and serve the customers, and

being digital requires a new

culture, mindset and different

ways of operating.

Your organisation needs

strong in-house digital skills,

with employees across the

value chain who understand

the online, digital world and

can take advantage of the

opportunities.

Your customers’ resources

and skills should be applied

creatively in a continuous and

structured process to shape

the future product and service

offerings.

This way, boundaries of

innovation and product

development are extended

well beyond your company to

include your customers, their

cultural resources and skills.

17

*Avaya.com, www.avaya.com/usa/faqs/articles/8-best-practices-for-customer-experience-management-today/

**Apple.com, www.apple.com/pr/library/2015/10/27Apple-Reports-Record-Fourth-Quarter-Results.html

Moving from customer-driven to relationship-driven requires a new set of capabilities. At this stage, companies typically have most

of their service excellence related capabilities in place.

Companies at this level develop capabilities that enable them to understand individual customers as they strive to appreciate what

their product or service really means to their customers, and to develop a personalised experience based on their purchase and

behavioural history.

Apple is a prime example of an organisation that focuses on building a relationship with its customers. At its stores, Apple

employees will actually try to ‘down-sell’ customers on what they are looking to buy in an attempt to save them money. Apple’s

approach reportedly results in fewer products being returned, higher sales rates on add-on services, fewer technical issues and

minimal employee attrition*. The company’s 40% gross margin also speaks volumes**.

If you are aiming to reach the relationship-driven stage, focus on the following key capabilities.

Page 18: The journey to become a truly customer experience-driven company

CASE STUDY

GOING FROM EXCELLENT TO WORLD-CLASS

Innovating

mobile

banking at a

large Nordic

bank

As a result of our work, the

organisation now has a clear

view on what technologies can

improve its customer

experience.

To help this financial services firm boost its customer experience and

stay a step ahead of the competition, we worked with the bank to design

an innovation unit devoted to trialling new mobile banking features.

We helped them launch an experimental banking application in two

countries, using agile principles, and tested 13 experimental features in

nine months.

Reaching around 2,000 customers, we collaborated with the bank to

track the impact the new features were having on its customer

experience. These features ranged from using fingerprint ID to log into

mobile banking, to novel money-saving ideas and graphical illustrations

of transaction data.

For each trial, we monitored whether the new feature appealed to its

customers. For instance, did customers continue to use the feature or

switch it off after trying it out? And what comments did they have about

the feature’s impact on their own user experience?

This approach, based on prototyping tests and which saw us releasing

incomplete features to customers, is unconventional in the financial

services sector, but allowed us to quickly test new ideas and

continuously evolve the features based on behavioural data and

feedback.

We went on to recommend the features that proved to be popular with

customers and should be implemented – with the bank rolling out the

fingerprint touch ID function across iPhone users with much success.

18

Page 19: The journey to become a truly customer experience-driven company

19

EXPERIENCE-DRIVEN

OVERVIEW

To advance to the highest level in our maturity model, two customer experience management dimensions are vital. Firstly, your

company needs a clear channel strategy to engage all customers, and customers must be able to seamlessly move between

different channels. The other dimension relates to your organisation’s ability to constantly innovate, measure and learn with your

customers.

We have identified the five most important capabilities that will improve your organisation’s ability to execute on these two

dimensions.

19

Customer experience

is a focus in daily

business

New offerings driven by

systematic customer

analytics

Living and

breathing the

‘digital world’

Quickly acting and

reacting to market

changes

External

resources

for inspiration

Your company must run

customer experience

improvements as part of

normal operations –

as opposed to projects that

need to be prioritised, initiated

and closed down.

The development of new

products and services should

be driven by systematic

customer analytics of

behaviour, preferences and

trends.

Digital skills are not enough.

Your entire organisation must

understand the drivers of

success and actively explore

the opportunities in the ‘digital

world’.

Is your company able to act

and react to changes in the

market quickly?

Market changes relate to new

product or service offerings,

adjusting to fluctuations in

demand and innovating in

marketing.

Our research suggests that

companies at this level utilise

external resources to get the

right competencies and

inspiration when necessary.

Page 20: The journey to become a truly customer experience-driven company

SECTOR HIGHLIGHTS

Many companies in the consumer and manufacturing sector

come from a very traditional background that is focused on

the ‘product push’ – meaning they are in the early stages of

our maturity model. A particular area they need to improve

on is omni-channel. In the financial services sector, for

example, it is easier for organisations to achieve a

seamless customer experience because they do not have a

physical product to sell. For organisations that do, it is much

more difficult to achieve – and many are struggling.

For companies to succeed with customer experience,

they must turn their focus away from a manufacturing,

‘product push’ approach to one that is market-facing

and innovation-driven, with strong sales and

operations planning.

Burberry is one of the most cited examples of great

customer experience. This is because the retailer

customises its products to meet consumer needs and uses

digital to great effect to build immersive and engaging

experiences for its customers.

CONSUMER AND MANUFACTURING

Troels GregersenConsumer and manufacturing expert

Drawing on our experts’ insights, we outline how four example sectors – consumer and manufacturing, government,

financial services, and transportation and logistics – stack up when it comes to customer experience management.

There is a lot of room for organisations in this

sector to improve. Train companies, for instance,

are rather poorly regarded in the sphere of customer

experience because of frequent disruptions to

services, cancellations and high ticket prices.

However, it is not all bad news. Airlines have a

more advanced ticket pricing structure, loyalty

programmes to reward customers and clearer

defined customer segments.

Looking to the future, the sharing economy is an

area that I think will really be taking off. Companies

such as BlaBlaCar, which helps people travelling

between cities to split the cost of a car journey, have

grown in popularity. However, we are now seeing

consumers taking more power into their own hands

to find opportunities to share travel within their own

personal network.

For organisations to stay competitive they need

to focus on addressing their customers’

problems, digitising and optimising the efficiency

of their services.

20

TRANSPORT AND LOGISTICS

Frank MadsenTransport and logistics expert

Page 21: The journey to become a truly customer experience-driven company

If you ask financial services firms today what their

number one priority is, many would say it is customer

experience. However, many well-established companies

are failing to turn this ambition into a reality.

We are seeing disruptive players entering the market.

Friendsurance, for instance, offers peer-to-peer

insurance that rewards small groups of users with a

cash-back bonus at the end of each year if they do not

make a claim. It is this type of organisation – one that is

designed to focus on the customer and draws on the

sharing economy – that is revolutionising the sector.

With more of these innovative and customer-centric

options coming into the market, the incumbents

must improve their customer experience or risk

becoming irrelevant.

FINANCIAL SECTOR

Martin TillischFinancial services expert

When we look at the public sector, regulation and

legacy systems are hindering organisations from using

their citizens’ or customers’ data to the best effect.

The siloed way in which they are organised is also

making it tricky for various government departments

and agencies to connect their insights and data.

Organisations must invest the time to create a new

culture that puts their customers at the centre

– a very different mindset than most are used to.

However, there are some standout organisations that

excel in this area. In Denmark, the Danish Business

Authority has an online portal that offers digital

solutions and cross-channel support for its customers

(companies). This has led to quicker and more

effective query handling, higher customer satisfaction

scores and better employee engagement.

What sets these leading organisations apart is that

their top management really champions great

customer experience and takes their employees on

the customer experience journey with them.

21

PUBLIC SECTOR

Stinne HenriksenPublic sector expert

Page 22: The journey to become a truly customer experience-driven company

22

IS YOUR ORGANISATION A LEADER IN

CUSTOMER EXPERIENCE MANAGEMENT?

To find out if your organisation is a customer experience management

leader, complete the following self-assessment.

Consider the extent to which you agree or disagree with the following statements.

Understand

your

customers

My organisation identifies customer needs and this helps us to allocate

resources internally. We track customer experience quality for each

segment to perform the ultimate test of what is ‘good’.

Differentiate

value

propositions

My organisation has clear and unique value propositions for each of

our customer segments based on clearly defined customer needs.

Design

the

journey

My organisation has clearly mapped the customer touchpoints and

defined how to interact with the customers in these touchpoints,

knowing where the ‘magic moments’ and ‘pain points’ are.

Balance

the

approach

My organisation optimises the balance between the rational and

emotional interactions (i.e. feelings that we should ignite).

Be

driven by

insight

My organisation has a good understanding of who our customers are,

what they want and how they perceive their interactions with our

company.

Personalise

the

experience

My organisation provides the customer with a personalised experience

based on purchase and behavioural history.

Provide

channel

choice

My organisation has a clear channel strategy to engage all customers

and the customer can seamlessly move between the different

channels.

Innovate

as

usual

My organisation constantly experiments, measures, learns with our

customer and adjusts to develop the optimal experience across all

channels.

I can do this! I’m getting there I need help!

22

Page 23: The journey to become a truly customer experience-driven company

or visit

paconsulting.com

To speak to one of our experts about developing your

Organisation’s Customer Experience Management Capabilities,

please contact:

23

Claus Høyer Madsen

[email protected]

Troels Gregersen

[email protected]

The four steps outlined in our Customer Experience

Management Maturity Model are the foundation for success

if organisations are to succeed at customer experience

management.

These are not short-term fixes, but areas that need

to be developed and nurtured over time. As the thriving

organisations cited throughout this report demonstrate,

success is achievable – but only through challenging your

organisation's convention.

GETTING STARTED

Page 24: The journey to become a truly customer experience-driven company

Corporate headquarters

123 Buckingham Palace Road

London SW1W 9SR

United Kingdom

Tel: +44 20 7730 9000

paconsulting.com

This document has been prepared by PA.

The contents of this document do not constitute

any form of commitment or recommendation

on the part of PA and speak as at the date of

their preparation.

© PA Knowledge Limited 2016.

All rights reserved.

No part of this documentation may be

reproduced, stored in a retrieval system,

or transmitted in any form or by any means,

electronic, mechanical, photocopying or

otherwise without the written permission

of PA Consulting Group.

We Make the Difference

An independent firm of over 2,600 people, we operate

globally from offices across the Americas, Europe, the

Nordics, the Gulf and Asia Pacific.

We are experts in consumer and manufacturing, defence

and security, energy and utilities, financial services,

government, healthcare, life sciences, and transport,

travel and logistics.

Our deep industry knowledge together with skills in

management consulting, technology and innovation

allows us to challenge conventional thinking and deliver

exceptional results that have a lasting impact on

businesses, governments and communities worldwide.

Our clients choose us because we don’t just believe in

making a difference. We believe in making the difference.