Creating Individualised Customer Experiences in the Digital Age

Crea&ngIndividualisedCustomerExperiencesInTheDigitalAgeWithhosts:Dr.SteveNu1all,HeadofCXResearchatFi=hQuadrant&KrisBMansfield,DirectorofCXandTransformaBonatOracle

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Copyright © 2016 Fi1h Quadrant www.Fi1hQuadrant.com.au

Dr.SteveNu1allHeadofCXResearch

Fi=hQuadrant

KrisBMansfield

DirectorofCXandTransformaBonOracle

Contents

1.  CustomersaredemandinghigherlevelsofpersonalisaBon2.  WhatisindividualisaBon?3.  Businessesthatgetitarewinning4.  IndividualisaBonisoneofthetopprioriBesforinvestmentfor2016-175.  HowtobecomecustomernaBveanddeliverindividualcustomer

experiences6.  WhydigitaltransformaBonisakeyenablerofindividualisaBon


1.CustomersaredemandinghigherlevelsofpersonalisaBon


MassProducBonMassCustomizaBonSegmentaBonPersonalizaBon IndividualizaBon

YourcustomersarenowinchargeFromGenZtotheGreatestGen

Millennialsarethenewcustomer!

Sources:E&Y,WealthFront,PewResearch,WorldBank,McCrindle,ABS

Borna=erOftheworldpopulaBon

Oftheglobalworkforceby2025

LivinginAustralia

Millennialhouseholdincome(avg.)

Averagenetworth

30%1980 60%5.15m $113k $268k

Theyareatthecentreoftheirowndigitalnetworks

…TheyAreAlwaysOn

8

Empoweredconsumersexpectmore

GivemeaposiBveexperienceandI’m3xmorelikelytobealoyalcustomer

Agreatexperiencemeansyoucouldincreasecross-sellingopportuni&esby5x

IexpectadvicebasedonmylocaBon(59%)

Iexpectreal-BmerecommendaBons(54%)

Source:WorldRetailBankingreport,Capgemini/EFMA,2014

9

Themoderncustomerexperience:fast,digitalandunstructured

60%Ofconsumerpurchasesare

impactedbydigitalinteracBons(Forrester)

12%OfmarketersbelievetheirmarkeBngisreal-Bme

enoughtodriveadequateresults(eConsultancy)

ForyourconsideraBon

DoesyourorganisaBonprovideeitherofthefollowing?

1.  Acompleteviewofeachcustomers’historyacrosschannels2.  TheabilitytocombineinformaBonfromdifferentinteracBonstoprovidea

seamlessserviceforcustomers

Typical customer pain points

Thecompanynotknowingyourhistoryacrossdifferentchannels

ThecompanynotbeingabletocombineinformaBoncollectedfromdifferentinteracBonstoprovideyouwithaseamlessservice

HavingtorepeatyourqueryeachBme

HavingtorepeatyouraccountandidenBficaBoninformaBoneachBme

2.WhatisindividualisaBon?

InspireEvaluate

ConfirmPurchase

Car Wait

Pick up

Info

Offers

Actions

Pre-Purchase Purchase Post-Purchase

PersonalizaBontoday

CustomerprofilingSegmenta?on

Contenttarge?ngSocialmedialistening

NextbestofferContentmarke?ng

Loca?onbasedmarke?ngCommerce

IndividualizaBontomorrow

…requiringyoutothinkcustomerin!

Knowme Wow

me

Empowerme

3.Businessesthatgetitarewinning


ForyourconsideraBon

AreyouseeingatrendtowardcustomerswanBnganindividualisedexperience?

YesNo

IndividualizaBonisachievedwhencustomerintenBonisanBcipated,understood&acBoned

84%ofbusinesseshaveexperiencedatrendtowardscustomerswan&nganindividualizedexperience

Only1in5saytheycaneffec&velyofferanindividualizedexperience

IndividualizaBonandagilityarekeytorevenuegrowth.BItools,CXsolu&ons,playavitalrole.

81%believecloud-basedsolu&onsareimportanttodeliveringindividualizedcustomerexperience

Source:OracleIndividualizaBonResearchstudy,April2016

BusinesseswhodeliverreapcompeBBveadvantage

$57–Lessperacquiredcustomer

23%Premiumintermsofshareofwallet,profitability

Awareness&Acquisi&on Reten&onConversion

$55millionto$1.6billion

annualimprovement

Sources:Forrester&Gallup

ManybusinessesandGovernmentorganisaBonsdon’thavetheluxuryof

starBngwithacleanslate;theymustbuildanarchitecturedesignedfortheCustomer-

led,digitalenterpriseonalegacyfoundaBon

4.IndividualisaBonisoneofthetopprioriBesforinvestmentfor2016-17

ForyourconsideraBon

Lookingahead,whichofthefollowingisyourorganisaBonpuongthehighestinvestmentpriorityonfor2017?1.  PersonalisaBon2.  Data&analyBcs3.  CustomerrelaBonshipmanagement(CRM)

OrganisaBonsareprioriBsingtechnologyinvestmentsondataandanalyBcstoenableimprovedchannelexperiencesandahigherlevelofpersonalisaBon.

Source:Fi=hQuadrant

CXInvestmentPriori&esfor2016

7%

17%

15%

27%

49%

36%

PersonalisaBon

Data&AnalyBcs

CustomerRelaBonshipManagement(CRM)

HighestPriorityforTechnologyInvestment TopPrioriBes

  HighinRetail

Base:Allrespondents2016(n=382)Q32.HowimportantispersonalisaBonaspartofyourorganisaBon’scustomerexperiencestrategy?

Importanceofpersonalisa&onincustomerexperiencestrategy

InretailoverahalfofbusinessesconsiderpersonalisaBontobeveryimportanttotheircustomerexperiencestrategy.

2% 13% 33% 52%

Notimportantatall Notveryimportant Quiteimportant Veryimportant

59%

44%

34%

31%

30%

29%

19%

12%

10%

CustomertransacBondata

Customerdemographics

Socialmediadata

Customerresearchdata

Loyaltyprogramdata

In-storecustomerbehaviourdata

Webbrowsingandsmartphoneappdata

Mobiledeviceusergenerateddata

None

Base:2016(n=347)Q35.Whatdatadoyouusetoenableyoutopersonalisecontent/products/services?

Datausedtopersonalisecontent,productsorservices

ThemoreinnovaBveretailersusecustomertransacBon,demographicsandsocialmediadatawhenpersonalisingcontent,productsorservicesforcustomers.

66%ofthosewithloyaltyprogramsuse

thedataforpersonalisaBon

•  Offermeaningfuldeals

•  Customiseproducts

•  Providecustomerswithcontrolofpersonaldata

•  Perceivedlackofcareinhandlingdata

•  Intrusiveloyaltyprograms

•  Lackofclarityondatapolicies

•  Irrelevantoffers

•  Spamming

•  Perceivedabuseofpersonaldata

•  Breakingcustomertrust

Source:CapGemini–PrivacyPlease:WhyRetailersNeedtoRethinkPersonalisaBon

TheLaggards

TheFavourites

TheAspirants

I’mlikelytospendmoreinastorewhenIfeellikeavaluedcustomer.

Ifeelvaluedwhenastoreremembersmyname/order/previouspurchases.

I’mmorelikelytoreturntoastorethatremembersmyname/order/previouspurchases.

Iwillstayloyaltoabusinessthatpersonalisesmyexperience.

82% 75% 68% 74%

Customersvalueanindividualisedretailcustomerexperience

Australianretailbusinessesshoulddomoretopersonalisemyshoppingexperience.

58%

…andaredemandingmorefromAustralianbusinesses

5.HowtobecomecustomernaBveanddeliverindividualcustomerexperiences

LinkdisparateIDstotherightcustomers

Targe&ngImprovemediaspendefficiencyandincreaseconversionrates

ConnectOnlineandOfflineTapintoofflinepurchaseinterac?ons

MaximizeExis&ngMarke&ngAssetsLeverageyourmarke?ngandCRMtoolstoexpandpoolofIDs

CookieIDs

SocialIDs

PurchaseIDs

MobileIDs

PostalIDs

EmailIDs

Adap&veOrchestrateexperiencesrapidlybasedonbehavior,preferenceora1ributes

AccurateUnderstandingthecustomeracrossall

touchpoints

IntelligentOpBmizecontentand

experiencesthatareself-learningandpredicBve

OpenIntegratesintotheCXenablingtechnologiesacrossthebusiness

Data-DrivenConnectfragmenteddata

sourcestodeliverpersonalizedexperiences

Thecomponentsforanindividualizedcustomerexperience

6.WhydigitaltransformaBonisakeyenablerofindividualisaBon

FourfactorsunderpinasuccessfulindividualisaBonprogram

Knowandunderstandthecustomerjourney&customerexperience

Crossfunc&onalsupport&collabora&on

Pillarsofsuccess

Leveragingbigdataandcloudtechnologytoenableindividualisa&on

CreateaSeamlessindividualandintegratedexperienceacrosschannels

Data-ledsmartexperiencetosegmentofone

SmartOffers&AcBons

Best-FitCandidates

Best-ValueFreight

CXCloud HCMCloud SCMCloud

Web-ScaleData

Outcomes

DecisionScience

OpBmizedPaymentTerms

ERPCloud

MachineLearning

A.I.–MachinelearningandtheevoluBonanddevelopmentofapplicaBons

Photo Credit: Rog01 – Flickr.com

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