Enterprise customer use case Michael R Hoffman Customer Worthy

© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy@ Amazon.com

“Client X” Customer Value OptimizationAgenda

• Enterprise Transformation• Interview Recap• Observations and Findings• Value Opportunities• Customer Value Optimization Framework• Recommendation


Interview Recap

• 34 People Interviewed over 9 days• Each LOB & Operations• Everyone Interviewed generally open and frank (good)• Cross pollination of ideas is good but at risk • LOB’s in search of standards and guidelines below

exec mngr level (designing processes through evolution)

• Customer Knowledge absent across the board• Healthy competition referenced often• Best reports come from inside LOB’s

The Customer Experience Next Steps Monetize each interaction – Create objective (currently too much

waste) Organize metrics and operations around customer Lifecycle

(emphasize first 30 days, renewal time frame, win-back, referrals) Evaluate IT/CRM/Other Investments in context of impact per

customer (Offer management + Content management) Capture value in first 30 days of purchase Enterprise Marketing Communication Planning – multi-stage,

multi-domain – Gauntlet and Specials Plan by Customer Segments (zip code, tenure, dollar value, more)

Calculate Customer value per Customer – Have Plan per Customer, Per Type

Layout Role of Businesses – “generate new to Client X”, Increase revenue X, manage to potential

Enterprise-wide customer visibility – include in reporting, churn factor

Customer value and behavior transparency – i.e. Email, Web Open rates, Call Center, Returns, “Payment Games”


Recommend Customer Valuation and Experience Map

• Quantify opportunities and actions by LOB and interaction point

• Leverage customer value opportunities through offer management technology and tactics

• Improve customer experience and brand• Protect email overload and deliverability issues• Increase return per message


Sample Customer Interactions



Customer Interactions Ordered by Role to Customer



Each element of each contact monetized


© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy@ Amazon.com 11

ShopNeed

Awareness Information LogisticsContractNegotiationSelection

Use

SupportCxC stage

Buy

Customer View

receive email offer

search research

standard or deluxe

free for 90 days

terms & conditions

receive product

product question

Interaction CostActual RevenuePotential Revenue


Innovation Scenario – Infused with Customer Value Visibility

Pareto 80/20 Changes Sales & Service Design

1000 Customer Scenario

Budget Standard Allocation

Customer Value Aware

Marketing Budget

$1,000,000 $1000 per lead $4,000 per top; $250 per avg

Sales Budget $100,000 $100 per suspect

400 per top; $25 per avg

Service Budget $10,000 $10 per customer

$40 per top; $2.5 per avg


CxC MATRIX

Interaction CostActual RevenuePotential Revenue



Transparency enables continuously testing and improving scripts, procedures, messages, offers


1,000 customers

Marketing budget: $1,000,000

Sales budget: $100,000

Service budget: 10,000

Innovation Scenario





Customer Algorithm



Customer Worthy: Next Generation of Customer Insights & Analytics:• Leadership• Methods• Metrics• Technology• Innovation

Michael R Hoffman- 12 years customer experience research- Customer, Marketing Service, BI Tech

expert - Executive @ Sitel, Google/DoubleClick,

Experian, - Founder Client x Client – helping

companies realize the value resident in their customer experiences

- World Vision, Chase, Kraft, Citi, Northwestern Mutual, Readers Digest, Patagonia, Palm, Microsoft, Dell,

Get Customer Worthy@ Amazon.com

•

#1 Customer Strategy Executive Michael R Hoffman

Mobile: 908.542.1134 [email protected]

http://www.linkedin.com/in/mrhoffman

http://it.toolbox.com/blogs/think-like-a-customer/

[email protected]

http://www.amazon.com/Michael-R.-Hoffman/e/B003C0M7JM/ref=ntt_athr_dp_pel_1

http://twitter.com/mrhoffman

mailto:[email protected]

http://www.linkedin.com/in/mrhoffman

http://it.toolbox.com/blogs/think-like-a-customer/

mailto:[email protected]

http://www.amazon.com/Michael-R.-Hoffman/e/B003C0M7JM/ref=ntt_athr_dp_pel_1

http://twitter.com/mrhoffman