8 12 November 2015 | Barcelona, Spain #GartnerSYMcrm16.mysuccess.bg/wp-content/uploads/sites/73/... · Gartner defines customer experience as: "The customer's perceptions and related

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8 – 12 November 2015 | Barcelona, Spain

#GartnerSYM

Creating Value Through the Customer Experience

Ed Thompson

#GartnerSYM

1 CONFIDENTIAL AND PROPRIETARY | © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or it's affiliates.

Those Most Often Seen as Having the BestCustomer Experience

Disney

Legoland

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Customer Satisfaction Correlates With Stock Prices:High Returns, Low Risk — Claes Fornell

Sources: Claes Fornell, www.theacsi.org, S&P

http://www.theacsi.org/

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Key Issues

1. What is customer experience management, and how should the

customer experience be measured?

2. What are the top 10 strategic technologies for improving the

customer experience, and how are organizations using

these technologies?

3. What makes the difference between success and failure?

4. Who is innovating most to deliver exceptional customer experiences?

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Key Issues





these technologies?



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Definitions

The dictionary defines experience as:

"The sum total of conscious events"

Gartner defines customer experience as:

"The customer's perceptions and related feelings caused by the

one-off and cumulative effect of interactions with a supplier's

employees, channels, systems or products"

Gartner defines customer experience management as: "The practice of

designing and reacting to customer interactions in order to meet or

exceed customer expectations and so increase customer satisfaction,

loyalty and advocacy"

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Seven Types of Customer Experience Projects

Design the Experience

Benchmark usability and empathy

Digital design cool

Recruit Differently

Profiling the personalities

Balance teams

Recruit to brand

Stripped Down Simplification

One size fits all

Standardization and scale

Encourage Participation

Review and comparison

Communities

Social networks

Multichannel Availability

Multichannel integration

Device-independent interaction

Adapt inReal Time

Real-time rerouting

Analytical-driven process decisions

Start a Conversation

Expectations setting

Capturing intent

Manage dialogue

Brand Execution

Values and promise

Reputation

Communication

Make Clear the Responsibility

Governance and policing

Responsibility

Compensation and contracts

Customize Offers

Bundling product/service

Personal pricing

Demonstrate Trust

Honor privacy

Share data

Use only what you need

Share Answers

Knowledge management

Skills inventory

Better search

Redesign Processes

Quality controls

Trading efficiency and experience

Analyze Opinion

Value analysis

Market research

Segmentation

Propensity modeling

Have a Strategy

Executive enlightening

Ideal and real experiences

Program and project plans

Empower Employees

Education and training

Cultural values

Ownership of the experience

Personalize Products

Configure to order

Mass customization

New product development

More Accessible

Self-service

Track for customer

Add channels

Achieve Consistent Experiences

Single view of customer

Recognition

Find Moments of Truth

Process modeling

Identify the weakest link

Automate and escalate

Collect Feedback

Multichannel collection

Real-time alerts and actions

DesignBetter

AlterAttitudes

Get PersonalOpen UpAct as OneFrom Out

to InListen,

Think, Do

WarmWarm Hot Hot Warm WarmCool

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Alter Your Approach Depending on Your Customer Experience Maturity Level

Fragmented Focus

Initial Developing Defined Managed Optimizing

Culture Change

Profit Parity

ExecutivesEngaged

VoC Validated45%

30%

20%

4%

1%

"Staying on Top""Getting Started" "Stealing Ideas"

1 2 3

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The Measurable Benefits of Customer Experience

Brand Advocates/Net Promoters

Customer Satisfaction Scores

Customer and Employee Referrals

First-Call Resolution Rates

Product Review Ratings

Number of Support Requests

Customer Attrition/Churn Rates

Deactivation/Reactivation Costs

Loyalty Program Enrolled/Participating

Price Sensitivity

Use of Multiple Channels

Social Network Participation, Likes

Trust Rating

No. of Product or Service Upgrades

Repeat, Frequency and Order Size

Delivery Timeliness

Product Return Rates

Accuracy of Inventory and Pricing

Reduced Cost of Defect and Error Rates

Lower Cost of Returns

Lower Replacement Costs

Metrics/KPIs Benefits

Lower Cost of Service

Lower Complaint Costs

Lower Compensation Costs

Lower Cost of Sales Acquisition

Reduced Upsell and Cross-Sell Costs

Lower Retention Costs

Lower New Product Development Costs

Reduced Lost Revenue

Reduced Marketing Costs

Lower Cost of Sales Acquisition

Increased Wallet Share

Network Effect of Recommendations

Higher Margins

Customer

Satisfaction

Loyalty

Retention

AdvocacyBrand

Reputation

Quality

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The Most Common Customer Experience Metrics Usedby Organizations

8%

6%

4%

7%

10%

12%

12%

15%

17%

19%

20%

24%

24%

33%

35%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Don't know

Other

Customer effort score

Mystery shopper scores

Loyalty program participation

Return rates

Sentiment scores

Product review ratings

Net promoter score

Churn rates

Customer lifetime value

Repeat orders

Brand tracking

First call resolution rates

Competitive benchmarks

Customer satisfaction scores

Q: To the best of your knowledge, how does your organization measure customer experience?

Multiple responses allowed

Average =3.3 metrics/15 metrics

N = 289

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How the Customer Measures You:Facets of Good Experience

32%

25%

11%

18%

13%

19%

13%

11%

15%

12%

10%

12%

4%

1%

34%

15%

24%

15%

19%

10%

14%

15%

6%

8%

8%

5%

13%

10%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Quality (of product/service)

Responsiveness (communication)

Value (cost, price, added benefits)

Support team (after-sales, service desk)

Timeliness of delivery

Relationship (proactiveness)

Attitude of staff

Resolution of issues

Listening to needs

Flexible/agile

Documentation/information/training

Met expectations/agreements

Consistency/ease of interaction

Online channel/email interaction

Percentage of Respondents

Business

Consumer


All others below 5%

Q: What did this company do specifically to provide outstanding customer experience? Coded from open-end responses.

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Key Issues





these technologies?



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A Great Customer Experience Takes Years to Build and Can Be Destroyed in a Moment

Every employee can build

or destroy the CX

All technologies can be

used to improve the CX

Technology is not always

needed to improve the CX

Each organization has a

unique mix of technologies

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A Top 50 Technologies Used to Help on CX Projects

DesignBetter

AlterAttitudes

Get PersonalOpen UpAct as OneFrom Out

to InListen,

Think, Do

Design the Experience

UXP

Web analytics

Portals

Web design

Content management

Recruit Differently

Recruitment

Induction

Community management

Talent Management

Stripped Down Simplification

One-click Order management

BPM modeling

Web design

E-commerce storefront

Encourage Participation

Review and rating technologies

Community management

Social networks

Multichannel Availability

Multichannel integration

Customer Journey Analytics

Adapt inReal Time

Business activity monitoring

Event-driven analysis

Start a Conversation

Campaign management

Customer communication management

Dialogue management

Brand Execution

MRM

Content Management

Community Management

DAM

D-Commerce

Make Clear the Responsibility

HCM

Incentive compensation

Employee contract management

QA monitoring

Customize Offers

Configure, price, quote tools

Content management

PIM, product catalog

Order management

Demonstrate Trust

Data privacy

Security tools

Open data

Partner management

Share Answers

Knowledge management

Search

Web self-service

Content management

Redesign Processes

Workflow

Process analysis

BPM modeling

Analyze Opinion

Customer value

Analytics

Data mining

Segmentation

Web analytics

Sentiment

Have a Strategy

Consultants

Advisors

Researchers

Designers

Brand Makers

Analysts

Empower Employees

Learning management

WFO

Sales, CSS,Web analytics

Enterprise social

Personalize Products

New product development

D-commerce storefront

Configure, price, quote tools

More Accessible

Self-service

APIs

Remote monitoring

Tracking

Field force optimization

Achieve Consistent Experiences

Customer engagement center

Master data management

BPM

Find Momentsof Truth

Data mining

Next best action

Business intelligence

WFO

Collect Feedback

QA monitoring

Event monitoring

Survey tools,enterprise feedback

Voice of customer

Social listening

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Vendors Approach CX From Where They Originate

Loyalty

Voice

VoC

Analytics

Cross-Channel

Self-Service SocialUX

Process

Content Personalization

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Top 10 Technology Types to Enhance the CX

CX Technology Frequency of use Impact Applicability

Voice of the customer High High "Buy" and "Own" phases

Business process management High High "Buy" and "Own" phases

Multichannel customer service High High "Own phases"

Customer analytics High Medium "Buy" and "Own" phases

Master data management Medium High "Buy" and "Own" phases

Content management High Medium "Buy" and "Own" phases

Personalization Medium Medium "Buy" and "Own" phases

UX design tools and platforms Medium Medium "Buy" and "Own" phases

Loyalty management High or Low Medium "Own" phases

Privacy management Medium Medium "Own" phases

Sales force automation High Low "Buy" phases

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No. 1 Voice of the Customer

Challenge:

GE Healthcare needed to create a great overall customer experience and improve

response time to negative customer experiences.

Approach:

Implemented Medallia's solution for a new

CEM program.

Taking action on a daily basis with real-time feedback.

Using closed-loop feedback and mobile reporting for insight and trend reviews.

Results:

Manual program managing hours decline from 3,000 hours to 400 hours per year.

NPS increased from 70 to 84.

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No. 2 Business Process Management

Challenge:

Alere Health provides point-of-care diagnostics and personal health support solutions. Alere's

priority is helping its members quickly identify and close gaps in healthcare adherence.

Approach:

CareAlert uses customer data to send timely, tailored messages to patients and caregivers via

mail, email, fax and IVR in order to remind 4 million members about taking medication, getting a

screening or test, or booking an immunization, particularly for managing chronic conditions.

Used Pegasystems as a business-focused rule engine and analytics engine to redesign the

processes from the outside looking in.

Results:

Drove 96% global member satisfaction with CareAlert.

CareAlert program demonstrated closure rates of 33% for overall gaps in care and 56% to 66%

for pharmacy-related care gaps in 12 months.

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No. 3 Multichannel Customer Service

Challenge:

Surveys illustrated that Sprint was struggling with their store, website,

IVR, routing, and contact center.

Approach:

Continuing to work toward a single hub vision.

Using a mix of proprietary databases and best-of-breed solutions

(e.g., Nice, ClickFox).

Results:

Improved services across 47 industries.

Improved first-call resolution by more than 1/3.

Reduced calls per subscriber by more than 1/3.

Reduced churn by 24%.

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No. 4 Customer Analytics

Challenge:

Inconsistencies in orange juice due to variations in orange crop, sourcing

and seasonality.

Approach:

"Black Book" model algorithm developed by Revenue Analytics crunches data from

up to 1 quintillion variables including satellite images, weather, expected crop

yields, cost pressures, regional preferences and detailed data about the 600 flavors

that compose an orange, plus variables such as acidity and sweetness.

Results:

Precise dynamic formula for how to blend orange juice for consistent taste,

including pulp content, for its $2 billion orange juice business.

After a hurricane or freeze, it can replan the business in 5 minutes to 10 minutes.

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No. 5 Master Data Management

Challenge:

Actively engaging a greater number of customer to ensure their satisfaction

and retention.

Approach:

Capturing and centralizing customer activity of 12 million customers,

including bank website browsing history, ATM usage, call center, etc.

Matching behavior versus dozens of offerings and potential acceptance

using SAS.

Results:

Launched "KnowMe" program to engage customers.

Grew customer engagement (offers presented) from less than 1% to 25%

of customers.

Recommends nearby Westpac ATMs to save money when customer

regularly uses another ATM.

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No. 6 Content Management

Challenge:

Produce entertainment content that optimizes interest, buzz, appeal,

membership and viewership.

Approach:

25 million users; 30 million plays/day (including rewinds, fast-forwards and

pauses); 1 billion hours of streaming video watched per month; 4 million

ratings/day; 3 million searches/day.

Geolocation, time and device information.

Integrated Nielsen and social media data from Facebook and Twitter.

Results:

Developed plot adaptation, scenes, colors and selected actors for its "House

of Cards" series.

Committed $100 million for two full seasons of the show.

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No. 7 Personalization

Challenge:

Urban Outfitters wanted effective upsell and cross-sell

recommendations to the delight of its customers.

Approach:

Implemented Baynote Dynamic Product

Recommendations to improve product recommendation

and customer experience.

Results:

700% growth in overall site sales linked to

product recommendations.

27% of shoppers clicking on Baynote

product recommendations.

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No. 8 UX Design Tools/Platforms

Challenge:

Interflora was losing money by not sufficiently catering to mobile users.

It wanted to create strong online presence on all platforms and increasesales on mobile.

Approach:

Launched a new m-site with easy shopping and check-out, consistent branding with the desktop.

Simplified shopping and three-step check-out experience to enableon-the-move buying.

Integrated Google Maps API to facilitate discovery of nearest Interflora stores.

Results:

Increased volume of orders by more than 250%.

Recurring visits up more than 20%.

Bounce rates down by over 25%.

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No. 9 Loyalty Management

Challenge:

Leading retailer of audio, books, CDs, computer software and hardware, DVDs, televisions and video games in France, Belgium, Spain and Portugal had an obsolete existing loyalty application, which was inflexible and costly to maintain.

Wanted to improve customer segmentation, create a single customer repository, treat customers in a targeted manner, increase the loyalty program membership and improve promotion flexibility while significantly reducing costs.

Approach:

Deployed Oracle's Siebel Loyalty Management application to 20 loyalty managers and 780 membership service managers integrated to 67 stores initially.

Results:

Has grown membership from 1.6 million to 5.6 million worldwide.

Members buy three times more often and 10 times more on averagethan nonmembers.

More effective, customized promotions, such as happy hour awards points.

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No. 10 Privacy Management

Challenges:

Ontario's Municipal Property Assessment Corporation is required by law to assessall Ontario-based property values and inform citizen owners of its findingsin a secure, private and cost-effective manner.

MPAC's challenge was to expand its trustworthy website reputation with a newarchitecture that embeds personal data protection.

Approach:

MPAC launched AboutMyProperty embodying the seven foundational principles of privacy by design — a framework from the Information and Privacy Commissioner of Ontario.

MPAC only manages personal information in memory, and assigns encryption to all datasets. The sitecaptures only what its users need and avoids unnecessary information hoarding. Privacy prioritizes how data will function.

Results:

Unique visitors to AboutMyProperty increased by 439% postlaunch.

Deeper trust of personal, Web-enabled information by Ontario citizens and commercial property owners.

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Key Issues





these technologies?



#GartnerSYM


How to Achieve CX Project Success

10%

1%

2%

3%

3%

6%

13%

15%

20%

27%

Don't know/NA

Improved bottom line (saved money/reduced crime etc.)

Improved product quality

Effective use of technology (incl. website design)

Effective marketing/sales support/branding

Good collaboration/coordination

Improved multichannel management

Improved business processes

Good leadership/execution

Improved customer feedback and engagement

Q. Based on your experience with these customer experience improvement initiatives during 2014, what one thing stands out that your organization did that led to success within the project? Coded from open-ends (summary).

N = 234

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Failure Points to Avoid in CX Projects

15%

1%

2%

5%

5%

6%

10%

10%

13%

33%

Don't know/NA

Ineffective marketing/sales support/branding

Failure to impact bottom line (saved money/reduced crime etc)

Too early to determine

Ineffective use of technology (incl. website design)

Poor multichannel management

Poor collaboration/coordination

Lack of customer centric approach

Business process issues

Poor leadership/execution

Q. What do you feel led to certain aspects of your organization's customer experience improvement initiatives not being completely successful? Coded from open-ends (summary)

N = 280

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It's Not Likely to Be Your Budget.Who Spends Most to Support or Improve the CX

1%

1%

2%

2%

4%

5%

5%

10%

11%

14%

15%

31%

Other

Human Resources or Human Capital

Customer Intelligence Department

Supply Chain Management

New Product Development or R&D

Strategy and Planning

IT

Operations

A Centralized Customer Experience Department

Sales

Customer Service

Marketing

Q07. Could you estimate which one department within your organization spends the most on specific initiatives to support or improve the customer experience?

N = 189

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It Might Not Be Your Call.IT Department Competitors

6%

39%

39%

37%

41%

40%

47%

46%

55%

6%

32%

34%

39%

41%

46%

47%

48%

52%

None

Digital transformation consultants

User experience firms

Boutique customer experience consultants

Research and/or advisory firms

Strategic business consultants

Digital marketing agencies

System and application integrators

Internal IT

Sought so far Will continue or add in 2015


Q09. Which of the following provider types has your organization sought to support improvements in the customer experience sofar and which will it continue to use or add in 2015?

N = 189

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Many IT Projects Have Already Been Approved— A CX Technology Matrix Customer Service Example

High

High

Low

Low Medium

Medium

SecretAgent

Desktop Productivity Tools

Interactive Kiosks

KM/Search

WFO

Field Service

Optimization

ACD

Predictive Analytics

IntelligentDevice

ManagementChatbots

Community

ManagementCase ManagementQM

WFME-ServiceE-Learning

CCPM Interaction/Behavior

Analytics

CTIIVRSpeech

Recognition

Feedback Management

Speech-

Enabled

Applications

IM/Chat

Collaboration

(Certain Situations)

IDM/Self-Healing

ERMS

Pro

du

cti

vit

y

Customer Experience

Moderate

Challenging

Easier

Achieving ROI:

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Key Issues





these technologies?



#GartnerSYM


Credit Agricole's CA Store Bounty-Based Creation

Credit Agricole

Unveiled its own application marketplace, giving developers access to an SDK with which to build their own mobile andWeb tools.

The bank is offering access to its new CA Store via an SDK based on APIs it used for building its own mobile PFM application,My Budget.

Apps will then be made availableto Credit Agricole customers through a dedicated store. The bank had 10 offerings at launch and 43 a year later.

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Breather: Short-Term Room Rental Disintermediation

Breather

Founded November 2012, Montreal.

Find and reserve quiet and calm spaces by using a mobile app.

Available in New York, San Francisco, Boston, Montreal, Ottawa.

Book and pay for rooms from 30 minutes, up to a day. You can also extend your stay if you need to. Rates vary by city and room.

To unlock the door check in with a tap on the app and receive a personalized PIN code for a reservation.

Rooms cleaned after each visit.

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Vail Resorts' RFID and Social Media SkiingInformational Upshifting

Vail Resorts

RFID on ski passes.

Poor skiier holiday photograph experience.

RFID card identifies subject of photo.

Camera sends low-resolution photosto Facebook.

Friends book for skiing vacation.

Skiiers pay for high-resolution photos.

Now also showing queues on phone.

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Baidu Smart Chopsticks Digitally Embedded Products

Baidu Kuai Shou

The device was born of an April Fools'video in 2014.

Baidu at the time had no intention of actually pursuing the idea. "But it generated a lot of excitement both internally and externally."

A litany of food scandals had turned Chinese diners' stomachs.

The chopsticks flash a red light when cooking oil has a higher than 25% level of total polar materials, an indicator of freshness.

The company says it can tell consumers whether their meal is safe to eat.

Source: Baidu

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Alfa Bank: Fitter Customers, Higher Interest Rates Lifetime Customer Value

Alfa Bank

Moscow, Russia.

Built by Alfa and 42 Agency, amarketing consultancy.

Using data from fitness trackers like the Fitbit and Jawbone UP, the new Activity platform monitors customers' movements and transfers small amounts of their money to a special savings account depending on how much they exercise. The only way to gain access to this account and its high interest rate is to get moving.

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mymuesliSubscription Products

mymuesli

Went online April 2007.

Based in Passau, Germany.

First company globally to offercustomized muesli.

"Muesli is an ideal customization product owing to its different ingredients and myriad combination options. None of the traditional muesli producers had used its potential yet. We thought that was surprising. After all, muesli fills shelf after shelf in supermarkets. And it's hard to find anyone who doesn'tlike muesli."

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Action Plan for Customer Experience Leaders

Monday Morning:

Find out what CX projects are already in place, who's running them and how they are measured.

Check the 10 technologies listed here to investigate where and how you are investing.

Next 90 Days:

Build your own Top 10 CX technologies list.

Get to know the head of CX well, if there is one.

Fix customer frustrations and get the basics right, then steal ideas from others before innovating.

Next 12 Months:

Make IT part of the CX leadership council.

Recruit skills in those technologies that have the biggest impact for your organization.

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Customer Experience What Are the Next Steps?

CONSCIOUS COMPETENCEUNCONSCIOUS COMPETENCE

Create Awareness and Appetite

Embed in Culture

Take a business model view of digital innovation for the greatest impact when reinventing processes.

Make IT part of the CX leadership council.

Deploy UX talent across application development teams.

Find out what CX projects are already in place, who's running them and how they measure it. If there is a head of CX, get to know them well.

Focus on fixing broken experiences first.

View every IT project's impact on the CX alongside its business caseand create a productivity/CX matrix for planned projects.

Fix customer frustrations and get the basics right, then steal ideas from others before innovating.

Focus on skilling up user experience as a core competency.

Architect your data and systemsfor broad consumption with APIsas the key.

Develop a multichannel, multidevice strategy.

Make CX a part of everybody's job.

Build Capabilities

UNCONSCIOUS INCOMPETENCE CONSCIOUS INCOMPETENCE

#GartnerSYM


Recommended Gartner Research

Customer Experience Is the New Competitive BattlefieldEd Thompson and Jake Sorofman (G00273269)

Gartner's Seven Types of Customer Experience ProjectsEd Thompson (G00277302)

Survey Analysis: The State of Customer Experience Innovation, 2015Nick Ingelbrecht, Olive Huang and Michael Dornan (G00272782)

Reanimate Your Content Strategy for the Best Next Customer ExperienceJim Murphy and Mick MacComascaigh (G00275873)

Technology Overview for Customer Journey AnalyticsJason Daigler, Gareth Herschel, Ed Thompson and Gene Alvarez (G00273471)

15 Voice-of-the-Customer Best Practices Linked to Organizational MaturityJim Davies (G00276714)

Powering Customer Experience With the Trusted 360-Degree ViewBill O'Kane and Saul Judah (G00272027)

For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/3069817?ref=QuickSearch&sthkw=G00273269&refval=154678057&qid=e4bb042edbdf69a6ff61e67f9f848ce3

http://www.gartner.com/document/3062420?ref=QuickSearch&sthkw=G00277302&refval=154678072&qid=de3b5c9cf673768d667953ff5ce5e06c

http://iapps.gartner.com/webdv/DocDisplayServlet?Doccode=272782





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Recommended Reading

1999

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2004

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For more information, stop by Gartner Research Zone.

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8 12 November 2015 | Barcelona, Spain #GartnerSYMcrm16.mysuccess.bg/wp-content/uploads/sites/73/... · Gartner defines customer experience as: "The customer's perceptions and related