Driving Business Growth, Priorities and Engagement through Customer Experience

BACKGROUND

Forrester recently released a book ‘ Outside In : The Power of Putting Customers at the Center of Your Business’. The book highlights that customer experience is the greatest untapped source of cost savings and increased revenue today. Additionally customer experience strategies can drive differentiating activities and processes at top companies. Forrester also discuss how to design and measure enterprise-wide customer experience.

As mobile and social are quickly becoming new channels for customer acquisition, engagement and service, many brands are looking to social and digital channels as a means to better understand customer interactions with the brand across multiple channels and touch points.

Also as the use of mobile and social channels increases exponentially, it is becoming critical that brands are able to create a 360-degree customer view by aggregating data from each one of these interactive channels. Without drawing from all touch-points, brands fail to have a holistic understanding of the consumer and run the risk of presenting disjointed messaging to the consumer as they visit the brand from a diverse number of channels.

CHALLENGE

How can we help our customers service their customers? How can we increase customer engagement and loyalty with the brand?How do we ensure that we are solving the right problem?

SOLUTION

When is Customer Experience the Right Approach? If the answer to the questions below is ‘NO’ then customer experience is the right approach to drive business priorities – are you able to pinpoint the customer’s painpoints? Are you addressing the pain they feel? Does everyone in the organization have a clear picture of the processes customers go through when interacting with the organization?

Are we Solving the Right Problem?: A common vision and vocabulary within an organization of the customer’ and ‘customer interactions’, across all channels is key to solving the ‘right’ problem. It is worth noting that by overlaying the customer journey maps with specific business goals such as improving productivity and efficiency of the sales force or increasing customer engagement and loyalty, we can not only identify  ‘new’ problems but also define ‘new’ solutions to old problems.

 Have we Identified the Right Opportunities? : Identify the ‘right’ opportunities by mapping customer interactions across channels and touchpoints and identifying highlights and lowlights by focusing on complex interdependencies between people, process and tools.

Have we Prioritized the Opportunities? : Once the opportunities across all channels have been identified, shared and verified by internal business stakeholders, they need to be collaboratively prioritized based on factors such as business impact and risk weighed against cost and effort.

APPROACH

Customer Experience Approach

User Centered Design Approach

Key Considerations:

Ensure Executive Sponsorship: The stakeholders selected as part of the steering committee typically span lines of businesses (LOB).  Since journey maps visualize ‘end-to-end’ interactions, multiple departments and stakeholders get involved in the discovery process hence leadership commitment is crucial to drive decision making across LOBs and for the success of a customer experience engagement.

Select Key Customer Segments: To obtain a good cross-section of interviewees it is critical to identify customer variability across several dimensions. As an example, for the sales force variability could be based on region, tenure, role and the type of customer the sales person services. It is also important to create a 360 degree view of the customer by creating a touchpoint mapand interviewing all teams within the organization that the customer interacts with.

Create Discussion Guide: The discussion guide should be tailored to the audience and aligned with business objectives.

Conduct Interviews: drill-down to the root cause, discuss what-if scenarios, best practices and current initiatives within the organization.

Create Customer Journey Maps: : Identify people, process, tools and technologies that affect the customer journey

Create Prioritization Matrix: collaborate with stakeholders to get a common view of the business impact and prioritization of the initiatives

Create Business Case / Enable Experience: Visualize the experience for one or more key areas by creating process flow and conceptual wireframes

BENEFITS

Truly understanding customer behavior, interactions, positive and negative experiences can lead to the following benefits:

Identify New ‘Niche’ Customer Segments – Just because people share some similar characteristics such as age and gender (e.g. female in the age group 35 – 45) does not imply that they share the same passions and interests. Understanding customer behavior, motivators and interactions will help to deeply engage with them and identify needs of the ‘niche’ customer segments which can drive development of personalized experiences which motivate customers to change behaviors.

Deliver Targeted, Personalized Content and Advertising – Moving beyond ‘likes’ and ‘follows’ – integrating back-end data sources, structured and unstructured data to create a 360 degree of the customer  can provide a wealth of information for improving customer understanding and targeting them with personalized content.

Increase Customer Loyalty – Customer loyalty and satisfaction can be improved by creating a 360 degree view of the customer and gaining deeper insights into existing customer segments as well as discovering new customer segments by developing a multi-channel strategy and aggregating data across mobile, social and digital channels.

CONCLUSIONS

The key to building applications which drive business growth and improve customer engagement lies in identifying a new breed of business leaders who understand the importance of customer experience and evaluating organizational readiness to deal with the impact of digital innovation.

Companies can truly understand the ‘empowered’ customer and build applications which transform the business by creating a common view of the customer (customer segments) across the organization by mastering behavioral, business and emotional context. Behavioral context measures engagement and propensity to buy, business context identifies business drivers and how to generate customer value differentiation and finally emotional context measures sentiment, customer preference and perceived value.

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Convergence of Marketing and Technology

With the convergence of marketing and technology, companies are struggling to identify the rightful owner(s) within an organization responsible for prioritizing opportunities which will drive business growth and engage the empowered customer.

Additionally as the use of mobile, social and web increases, it has become critical for organizations to create a 360-degree view of the customer, highlighting both good and bad experiences, across channels and  touchpoints. In addition to focusing on business imperatives such as reduced cost, increased loyalty etc. to drive the customer experience, companies should also consider ‘engagement imperatives’ such as identifying customer pain-points, improving convenience and motivating customers to change behaviors which in turn will lead to increased ROI.

As organizations attempt to understand the customer better by creating customer journeys as well as creating a 360 degree view of the customer cross channels and touchpoints, they need to consider the ‘impact’ these innovative technologies will have on the enterprise. Some key considerations to keep in mind are listed below:

  • Identify Leaders: Identify leaders within the organization to drive the business model innovation required to incorporate new channels such as mobile, social and digital.
  • Create New Business Models: New business models will need to be developed which are nimble, agile and rapidly iterate.
  • Portfolio Optimization:  To achieve portfolio optimization organizations will need to drive alignment and synchronization of activities cross-brand, cross-channel and cross-stakeholder group (Decentralized approaches imply higher costs).
  • Update Business Processes: Current transaction-based processes may need to be updated to deliver personalized, targeted content tailored to the lifestyle of the customer.
  • Update Operational Governance and Management Processes : Operational governance and management processes will need to be built that tap into new market opportunities and customer needs.
  • Co-Create Value with the Customer: Organizational structure of the organization will be impacted by introducing customers into product development efforts.
  • Co-Create Value with Partners: Organizations will need to collaborate with players, such as information technology companies, design agencies, companies providing strategy / management etc. to deliver customer-centric products and services, as they may not have the resources and skill-set in-house to build relevant offerings.
  • Integration of Systems : Building a 360 degree view of the customer requires an understanding of data integration requirements between disparate data sources namely systems of record such as CRM as well as data from social networks like Twitter and Facebook. Data architects will now be required to build processes to connect structured as well as unstructured data