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DIGITAL TRANSFORMATION IN 2015 How Customer Experience Drives Digital Transformation
#PerficientDigital
facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient
2#PerficientDigital
Perficient is a leading information
technology consulting firm serving clients
throughout North America.
We help clients implement business-driven
technology solutions that integrate business
processes, improve worker productivity, increase
customer loyalty and create a more agile enterprise
to better respond to new business opportunities.
ABOUT PERFICIENT
#PerficientDigital 3
PERFICIENT PROFILEFounded in 1997
Public, NASDAQ: PRFT
2014 projected revenue ~$454 million
Major market locations:
Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto
Global delivery centers in China and India
>2,600 colleagues
Dedicated solution practices
~90% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards
4#PerficientDigital
INDUSTRIES Healthcare
Financial Services
Life Sciences
Retail & Consumer Goods
Automotive & Transportation
High Tech
Telecom
Energy & Utilities
Manufacturing
Media & Entertainment
PORTALPortal Frameworks
SearchSecurityWeb AnalyticsWeb Content Management
Social & CollaborationMobilityExperience Design
INTEGRATIONIntegration Frameworks
Cloud ArchitectureReference Architecture
Application IntegrationEnterprise Application IntegrationService Oriented Architecture
Process & Content IntegrationBusiness Process ManagementComplex Event ProcessingRules Engines
DATA & CONTENTBusiness Analytics
Business IntelligencePredictive AnalyticsReporting
Structured Data ManagementData Integration, Quality & GovernanceEnterprise Data WarehouseMaster Data ManagementProduct & Information Management
Unstructured Data ManagementBig DataContent IntelligenceContent Management
Enterprise Search
CUSTOMER EXPERIENCECustomer 360
Multi Channel EnablementRelationship ManagementSocial Engagement
CommerceMarketing Strategy ImplementationOrder ManagementSupply Chain ManagementService & SupportManaged Hosting
Sales & Service SupportCustomer Service, Sales Force Automation
Experience DesignStrategic Roadmaps & Envision Workshops User Research & Metrics AnalysisCreative & Interaction DesignCustom & Responsive UI Development
Digital MarketingSearch Engine MarketingOnline AdvertisingContent StrategyConversion Optimization
Management Consulting
BUSINESS OPERATIONSCorporate Performance Management
Budgeting, Forecasting & PlanningBusiness Analysis & Predictive Analytics
Enterprise Business SolutionsOracle EBSVertex Tax Solutions
Human Resource SolutionsEmployee Portals Human Resource ManagementTalent Management
Enterprise Social PlatformsSocial StrategyLync Unified CommunicationsOffice 365
Management Consulting
OUR SOLUTIONS PORTFOLIO
5#PerficientDigital
Perficient XD is a digital agency within Perficient. We’re the CX and creative
engine that powers the IT consulting locomotive. We envision, design and
build intuitive customer experience solutions that are results-focused, digital
ready and grounded in social science insight.
6#PerficientDigital
PRESENTERS
Michael Porter, PerficientManaging Principal
Strategic Advisors Team
Twitter: @porteronportals
David Stallsmith, Perficient XD
Digital Strategy and Ideation
Practice Lead
7#PerficientDigital
How Customer Experience Drives
Digital Transformation• Customer Experience
Impact
• Role of Customer
Experience in Digital
Transformation
• Industry Examples
• 3 Starting Points for
Digital Transformation
10#PerficientDigital
CX = SUM OF ALL INTERACTIONS WITH A BRAND
PRODUCTS
BROADCAST
PUBLICATIONS SOCIAL
EVENTS
DIRECT MAIL
IN STORE
WEB
MOBILE
BRANCH
GAMING
11#PerficientDigital
More than any other factor, customer
experiences determine whether companies
thrive and profit, or struggle and fade.
— Josh Bernoff, Forrester Research
“”
12#PerficientDigital
Rising Customer
Expectations
Amazon, Zappos, Facebook,
Apple, et al are redefining
service, speed and ease-of-use
Continual
Connectedness
Adoption of digital channels is
driving demand for choice and
connectedness
Organizational
Velocity
Tech lowers barriers to entry
and increases speed; slow
response invites disruption
Abundance of Customer
Data
Requires competency in turning
complex data into business
insight
CX TRENDS ARE DRIVING MASSIVE CHANGE
13#PerficientDigital
Source: Temkin Group Insight Report, State of CX Management 2014
Only 10% of large companies
have achieved top levels of
customer experience maturity
...BUT MOST COMPANIES HAVE NOT ADAPTED
10LEVEL 5+
%
31LEVEL 1
%
13LEVEL 4
%
19LEVEL 3
%
27LEVEL 2
%
14#PerficientDigital
Only 10% of large companies
have achieved top levels of
customer experience maturity
...BUT MOST COMPANIES HAVE NOT ADAPTED
10LEVEL 5+
%
31LEVEL 1
%
13LEVEL 4
%
19LEVEL 3
%
27LEVEL 2
%
15#PerficientDigital
60Companies that prioritize
customer experience generate
60% higher profits than
competitors
CX ADAPTERS REAP BENEFITS
Source: Gartner Research, “Leading on the Edge of Chaos”, 2013, Emmet Murphy and Mark Murphy)
16#PerficientDigital
CX ADAPTERS REAP BENEFITS
Increase in
Company
Value
= 30%Increase in
Customer
Retention
10%
Source: Bain & Company Study
17#PerficientDigital
Source: McKinsey & Co. studies, 2013 and 2015
CX ADAPTERS REAP BENEFITS
multi-channel journey. occur during a multi-event,
of all customer interactions
Morethan 50%
18#PerficientDigital
CX ADAPTERS REAP BENEFITS
multi-channel journey. occur during a multi-event,
of all customer interactions
Morethan 50%
And the number of digital touch points is
growing 20% annually...
Source: McKinsey & Co. studies, 2013 and 2015
19#PerficientDigital
CX ADAPTERS REAP BENEFITS
65
Percent of consumers who get frustrated
when presented with an inconsistent
experience across channels.Source: Accenture Global Consumer Pulse, 2013
20#PerficientDigital
CX LEADERS OUTPERFORM THE MARKET
6-year stock performance of customer
experience leaders vs. S&P 500 vs. laggards
23#PerficientDigital
The realignment of, or new investment in,
technology and business models to more
effectively engage digital customers at every
point in the customer experience lifecycle.
— Altimeter
“”
DIGITAL TRANSFORMATION
26#PerficientDigital
ENTERPRISE TRANSFORMATION
Insights
Experiences
Taking an “outside-in”
view of the organization
Encouraging customer
empathy among teams
27#PerficientDigital
ENTERPRISE TRANSFORMATION
TOUCH POINTS
JOURNEYS
BRAND PERCEPTIONS
TEAMS
PROCESSES
SYSTEMSInsights
Experiences
28#PerficientDigital
ENTERPRISE TRANSFORMATION
TOUCH POINTS
JOURNEYS
BRAND PERCEPTIONS
TEAMS
PROCESSES
SYSTEMS
Customer Experience Maturity:
How effective you are at using customer
insights to create, deliver and sustain
differentiating experiences
Insights
Experiences
31#PerficientDigital
4 LEVELS OF CX MATURITY
Level 4: Differentiated
Level 3: Dynamic
Level 2: Engaged
Level 1: Uncommitted
32#PerficientDigital
FOCUS ON CUSTOMER EXPERIENCE MATURITY
Transformation is the result of advancing
to the next level of customer experience maturity.
34#PerficientDigital
CXIQ MATURITY MODEL
1Customer
Insight
2Strategy
3Design
Processes CREATEcustomer experiences
35#PerficientDigital
CXIQ MATURITY MODEL
1Customer
Insight
2Strategy
3Design
Processes
6Operations
4Enabling
Technology5
Measurement
CREATE, DELIVERcustomer experiences
36#PerficientDigital
CXIQ MATURITY MODEL
1Customer
Insight
2Strategy
3Design
Processes
6Operations
4Enabling
Technology5
Measurement
CREATE, DELIVER & SUSTAINcustomer experiences
7Culture
37#PerficientDigital
CXIQ MATURITY MODEL
1Customer
Insight
2Strategy
3Design
Processes
6Operations
4Enabling
Technology5
Measurement
7Culture
Level 1: Uncommitted
Level 2: Engaged
Level 3: Dynamic
Level 4: Differentiated
38#PerficientDigital
CXIQ IN PRACTICE
1Customer
Insight
2Strategy
3Design
Processes
6Operations
4Enabling
Technology5
Measurement
7Culture
• Mid-sized manufacturer, founded 1970
• Goal: grow customer lifetime value
• Strong in strategy; gaps in customer insight, measurement and technology
• Recommendation:
– Create customer personas
– Plan process workflow improvements
– Evaluate customer management app solutions
Score: Level 3 / Dynamic
39#PerficientDigital
CUSTOMER EXPERIENCE TRANSFORMATION
The process of making systemic, lasting changes to a
business to improve its interactions with customers and to
better align those interactions with its brand.
1. Determine customer experience maturity
2. Address 7 dimensions of customer experience
3. Transform your business by reaching the next level of maturity
42#PerficientDigital
Leviev
Part of a competitive jewelry / boutique space
• Many competitors in both mid- and high-end
• Opened London store in 2006
Upscale customers demand a relationship
• Treat them like you know them
• Understand their history and their likes
• Have to compete against a variety of others who
already get this
External factors can influence sales
• Blood diamonds
• Environmental issues
• Reputation is king for gems and diamonds
SITUATION
43#PerficientDigital
Leviev
Solve reputation challenge
• Own the mines for their diamonds
• Become a large diamond manufacturer
• Gain exclusive access to key gemstones
Use technology to enhance the relationship
• Customer jewelry box to show details of all
previous sales and current pieces
• Shareable sketches between Leviev designers
and customers
• Track customer birthdays, anniversaries, travel
preferences, and jewelry preferences
• Show inventory of finished pieces or diamonds
– From any store
– Catalog available on tablet for sales associates in
any other location
The Premier Customer Experience
SOLUTIONS
44#PerficientDigital
Leviev IMPLICATIONS
Reputation
Impacts: • Solved the reputation problem first
• Created key industry relationships
Function: Know my customer
Impacts: • CRM to track preferences
• Integration to sales or billing system
• Social tool to share information real time
• CRM tool for proactive communication
Function: Jewelry Box and Shared Design
Impacts: • Tool to store high resolution photos
• Mobile and web interface for Leviev
• Client interface and access outside store
Function: Catalog
Impacts: • Mobile/web interface integration
to image repository
45
A Fashion Retailer
“Our web site is old. It’s disjointed.
We don’t track well across channels.”
• Let’s recreate their entire customer
experience
• Let’s create the same experience in
mobile and web
• We have to show the same experience
regardless of where they come from
• Let’s give them a personalized
experience
SITUATION
#PerficientDigital
46
A Fashion Retailer
#PerficientDigital
IMPLICATIONS
A Seamless Customer Experience
CX involves many moving parts
• Commerce tools
• Embedded commerce in personalized web content
• Integrated CRM for lead tracking and generation
• Marketing management tool to push messages and
track success
• Better analytics to understand failure and success
Cuts across different parts of the business
• Marketing
– Must manage the site everyday across multiple tools
– Involved in traffic across multiple brands
– Lead generation and lead tracking
• IT
– Smaller team but with a global footprint
– Brand consistency
49#PerficientDigital
3 WAYS TO START
Conduct a customer experience maturity
assessment
Map one or two of your most important
customer journeys
Estimate potential impact on investments
and results
A CB
50#PerficientDigital
3 WAYS TO START
A CB
Conduct a customer experience maturity
assessment
Map one or two of your most important
customer journeys
Estimate potential impact on investments
and results
A CBA
51#PerficientDigital
CXIQ MATURITY ASSESSMENT
1Customer
Insight
2Strategy
3Design
Processes
6Operations
4Enabling
Technology5
Measurement
7Culture
• Evaluation of strengths and gaps in
7 areas of CX capability
• Starting point for customer
experience transformation
A CBA
52#PerficientDigital
CXIQ ANSWERS 3 KEY QUESTIONS
1. How effective are experiences we offer customers?
2. How mature are the capabilities we use to deliver experiences?
3. How do experiences compare to those of our competitors?
A CBA
53#PerficientDigital
USE CXIQ TO PLAN AN APPROACH
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
Uncommitted / Level 1
Focus first on:
• Customer insight
• Experience strategy
• Goal-setting
A CBA
54#PerficientDigital
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
USE CXIQ TO PLAN AN APPROACH
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
Uncommitted / Level 1
Focus first on:
• Customer insight
• Experience strategy
• Goal-setting
A CBA
Engaged / Level 2
Focus first on:
• Design processes
• Technology
• Operations
55#PerficientDigital
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
USE CXIQ TO PLAN AN APPROACH
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
Uncommitted / Level 1
Focus first on:
• Customer insight
• Experience strategy
• Goal-setting
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
A CBA
Engaged / Level 2
Focus first on:
• Design processes
• Technology
• Operations
Dynamic / Level 3
Focus first on:
• Customer-centric culture
• Measurement / results
56#PerficientDigital
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
USE CXIQ TO PLAN AN APPROACH
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
Uncommitted / Level 1
Focus first on:
• Customer insight
• Experience strategy
• Goal-setting
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
1Strate
gy7
Operations
& Governance
4Enabli
ng Technologie
s
2Customer
Insight
3Desig
n Proce
ss
6Cultur
e5Measureme
nt
S
C
M
DP
ET
CI
O
A CBA
Engaged / Level 2
Focus first on:
• Design processes
• Technology
• Operations
Dynamic / Level 3
Focus first on:
• Customer-centric culture
• Measurement / results
Differentiated / Level 4
Focus first on:
• Strategy & innovation
• Customer insight
• Breakthrough technologies
57#PerficientDigital
4 TIPS FOR ASSESSING CX MATURITY
1. Ensure assessment team has access they need
2. Explore full context in which customer experiences exist
3. Benchmark against reality
4. Use CX maturity scores to evaluate and prioritize proposed initiatives
A CBA
58#PerficientDigital
3 WAYS TO START
A CB
Conduct a customer experience maturity
assessment
Map one or two of your most important
customer journeys
Estimate potential impact on investments
and results
A CBA
59#PerficientDigital
MAP KEY CUSTOMER JOURNEYS
Journey Type Customer Objectives Company Objectives
Product Discovery • Explore features, benefits and pricing to
help me become informed and create a budget
• Drive awareness, consideration and engagement
A CBA
60#PerficientDigital
MAP KEY CUSTOMER JOURNEYS
Problem Resolution
Journey Type Customer Objectives Company Objectives
Product Discovery
Purchase
On-boarding
• Explore features, benefits and pricing to help me become informed and create a budget
• Drive awareness, consideration and engagement
• Transact effortlessly, confidently
• Develop and maintain trust• Collect payment accurately
• Drive revenue goals
• Take the first step, learning as I go at my own pace
• Acquire the right customer
• Engage them and expose them to product options
• Accomplish a task on my own
• Troubleshoot a problem and resolve it quickly and easily
• Reduce service costs
• Teach self-help over time
A CBA
61#PerficientDigital
ORG DESIGN ONCE FAVORED SILOS...
In-storeOnlineProduct SupportMarketing
Stand-alone touch points
offer efficiency at the
expense of customer
experience
A CBA
62#PerficientDigital
...BUT TODAY, SILOS INHIBIT JOURNEYS
In-storeOnlineProduct SupportMarketing
Silos become barriers as
technology enables customer
transactions across the
enterprise
A CBA
63#PerficientDigital
JOURNEY MAPPING IMPROVES EXPERIENCES
On-boarding
Problem Resolution
Product Discovery
Purchase
In-storeOnlineProduct SupportMarketing
ORGANIZATIONAL SILOS
TYPES OF JOURNEYS
A CBA
64#PerficientDigital
JOURNEY-LED TRANSFORMATIONS...
15
Improve Customer Satisfaction Fuel Revenue GrowthUpsell & acquisition
Lower Costs to Serve Engage Employees
to
%
UPUP
DOWN 20%
20%
20%
to30%
UP
Source: McKinsey & Co., 2014
A CBA
15 to
%
20%
65#PerficientDigital
5 TIPS FOR JOURNEY MAPPING
1. Start with your most important customers or those you can help the most
2. Be clear on objectives
3. Follow an ethnographic approach
4. Seek out customer-facing employees for their input
5. Visual mapping encourages sharing and communication
A CBA
66#PerficientDigital
3 WAYS TO STARTA CBA
A CB
Conduct a customer experience maturity
assessment
Map one or two of your most important
customer journeys
Estimate potential impact on investments
and outcomes
67#PerficientDigital
ESTIMATE CX INVESTMENT & OUTCOMES
To drive these results... support these needs... and target these metrics.
Increased Revenue
• Simplified transactions and processes
• Personalized recommendations
• Device-optimized UI
• Transparent pricing
• Site visits
• Page views
• Number of leads
• Conversion rate
Reduced Support Costs
• Self-guided on boarding
• Robust self-service options
• Situation-optimized UI
• Transparent, easy-to-understand policies
• Clear language and instructions
• Service calls
• Interactive chat resolution rate
• Number of contact center emails
• Online self-service resolution rate
• IVR self-service resolution rate
Increased Engagement
• Personalized content and features
• Social media integration
• Relevant and inviting content
• Device-optimized content
• Session length
• Frequency of visits
• Registration rate
• Click-through rate
Increased Satisfaction
• Exceed expectations
• Optimize for RTS (return on time spent)
• NPS, C-Sat scores
• Number of customer complaints
• Social listening measures
A CBA
Source: Forrester Research, 2014
68#PerficientDigital
ALIGN CORP STRATEGY WITH CX STRATEGY
Segmentation
Differentiation
Cost leadership
Company Strategy
A CBA
69#PerficientDigital
ALIGN CORP STRATEGY WITH CX STRATEGY
Segmentation
Differentiation
Cost leadership Low prices
Innovation
Fit
Company Strategy Brand Promise
A CBA
70#PerficientDigital
ALIGN CORP STRATEGY WITH CX STRATEGY
Segmentation
Differentiation
Cost leadership Low prices
Innovation
Fit
• Self-help optimization
• Ultra-simplification
• Crowd-powered
• Proactive guidance
• Data-amplified success
• Product as platform
• Tailored intimacy
• Micro-niche
• Mass customization
Company Strategy Brand Promise Customer Experience Strategy
A CBA
Source: Forrester Research, 2014
71#PerficientDigital
5 TIPS FOR ESTIMATING CX IMPACT
1. Assemble a multi-disciplinary team
2. Facilitate the discussions, drive to consensus
3. Distinguish one-time costs from recurring costs
4. Map business value to customer value
5. Look to your attribution programs for more proof
A CBA
72#PerficientDigital
RECAP: 3 WAYS TO START
Conduct a customer experience maturity
assessment
Map one or two of your most important
customer journeys
Estimate potential impact on investments
and results
A CB
#PerficientDigital 74
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Next up: Build a Mobile Foundation to Drive Digital Transformation InitiativesMarch 19 | 1:00 PM CTbit.ly/DTSeries3