The Rules of Omnichannel Customer Engagement

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1 Jacada Webinars The Rules of Omnichannel Customer Engagement Industry experts define Omnichannel and how to prepare your organization for omnichannel customer engagement Jeremy Cox, Informa/Ovum Principal Analyst Customer Engagement Team Tom Smith, Verizon Manager, CX Product Innovation Contact Center Innovation Team 2015 Jacada, Inc. All rights reserved.

2 Succeeding with omnichannel Jeremy Cox Principal Analyst Customer Engagement

3 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon s market experience 2

4 Omnichannel defined The means by which an enterprise enables two-way engagement with its customers across any channel or combination of channels, digital and physical, to deliver a contextually relevant and trust building experience - consistently and always respecting customers preferences and privacy Source: Ovum 3

5 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon case study 4

6 Customers are empowered and becoming less predictable 5

7 Customer's power of influence is increasing whilst marketing influence is declining 6

8 Customers expect simple, fast and seamless experiences wherever they happen to be I want to contact you from here don t make go there Be relevant based on what I am trying to get done (my context) Make it easy for me Don t make me repeat myself Show me you really care 7

9 And every industry is threatened by disruptors increasing the importance of service as a differentiator Xaomi Uber Airbnb Source: Opinions Liberes 8

10 Average company lifetime has decreased dramatically McKinsey reckon 75% of today s S&P 500 will be gone by Extrapolations based on S&P 500 9

11 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon case study 10

12 Thinking omnichannel is just a front-office concern raises expectations that cannot be fulfilled... To succeed in omnichannel you must have a really good front end, but unless you have reengineered the back end and are ready to cope with peaks in traffic you ll have real issues. There s no point doing one without the other. Paul Coby CIO John Lewis Partnership 11

13 Thinking it s just adding new channels. 12

14 Or worse an ability to stalk customers 13

15 Ignoring the need to get organised around customers Customers and siloes don t mix 14

16 Thinking journey mapping is enough Create map Evaluate Explore Brainstorm Design new experience We re done! 15

17 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon case study 16

18 To progress it helps to know where you are today Class leading Customer-Adaptive Customer Experience CEO, board level sponsorship, enterprise-wide commitment Omnichannel CX CEO, board level sponsorship, enterprise-wide commitment Multichannel Basic integration between systems but siloed product driven = frustrating for customers Departmental Departmental silos, Fragmented CX - Transactional 360 Customer journey s mapped Integrated channels Context 360 VoC 360 Focused on: RFTcx New business models Continuous innovation Anticipating the future Disruptive force Poor Absent Coherence as an organisation Pervasive 17

19 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon case study 18

20 Critical characteristics for omnichannel success Identify the customer Recognize Orchestrate Customer- Adaptive VoC Contextually Relevant interactions Adapt Integrated Value Chain or Network Customer s Choice Omnichannel Customer Engagement Minimize Customer Effort Any combination of channels Continuity of Experience Digital and physical Two-way 19

21 Fundamental principles should guide development Align round the customer Design from the customer back Sense context and intent act on it Make it seamless and frictionless Validate continuously and adapt 20

22 Evolve your omnichannel capabilities Departmental Multichannel 1 2 Determine long term vision aim for level 3 as a minimum Integrate enterprise value chain Build the foundation Focus on retention Determine omnichannel vision Map to customer journeys and focus on retention first Create a customer-centric orientation culture, structure, KPIs Implement new processes and supporting technologies Omnichannel CX 3 Focus on IoT and business model innovation Develop innovation competence Develop roadmap to customer-adaptive Customer- Adaptive 4 Extend IoT Increase pace of innovation and new business models Create new and valued omnichannel experiences 21

23 Agenda What is omnichannel? Why omnichannel customer engagement must be a top priority Persistent relevance is at the heart of the challenge Common misconceptions Omnichannel maturity model where are you? Recommendations Verizon s market experience 22

24 Customer Experience: Omnichannel & Mobility Tom Smith Manager, CX Innovation November 4, 2015 Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 1

25 The New Consumer is Empowered Customers increasingly expect experiences that are seamlessly integrated, smooth, and tailored to their unique needs. Personalized Take their unique preferences and habits into account. Consistent Integrated, regardless of the touch point e.g. mobile, web, and digital signage. Contextual Take into account everything from their location and time of day to where they are going. Consumers are demanding digital experiences. Expectations are being set by other companies and industries.

26 Customers Are Using More Channels Source: Dimension Data s 2015 Global Contact Centre Benchmarking Report Dimension Data years ago there was no web chat, smart phone apps, social media, and very little . Today, digital interactions account for over 35% of all interactions, and at the current rate will overtake voice in two years time.

27 Many customers switch channels during an interaction 84% of consumers sometimes or always use the Web to get information before calling a contact center Up to 60% of customer interactions involve multiple channels Source: Where Contact Centers are Missing the Mark with Customer Care, Aphrodite Brinsmead, Ovum, 2015 Source: 451 Research, Voice of the Connected User, Consumer Survey, Q2 2015

28 At Verizon, We See the Market Through Our Enterprise Customers Eyes And Our Own CMB Enterprise Wireless Verizon 90 Contact Centers 44 Contact Centers 58 Contact Centers 192 Contact Centers Over 60,000 Agents Over 800M Interactions per Year Verizon lives the same challenges every day. 5

29 Verizon CX Portfolio Evolution From Call Centers to Multi-Channel to Omnichannel Wide Proliferation of Toll Free Multimedia, Cloud Emerge Multimedia, Cloud, IP rule Emergence of IVR and ACD Transition to IP Starts Personalization Proactive, Mobility Verizon builds 5,000 customer base Verizon leads NA Hosted IVR market Verizon growth in Strategic CCS outpaces market Verizon leads market with 24% share Verizon fist to market IPTF 10X growth in IPTF in 3 years 1990 s Call Centers 2000 s Contact Centers Today CX Solutions OmniChannel Experience

30 Omnichannel Tenets Customer Engagement Model Customer Engagement Ethos Build workflow/interactions once. Share logic and workflows across channels and portfolios. Automatically render across channels. Support branding and multiple languages. Automate personalized, ongoing interactions. Harness cross-channel interaction history and predictive analytics. Interact on preferred customer channels. Create dynamic personalized interactions. Provide just-in-time accurate information. Deliver proactive customer service.

31 Omnichannel Maturity Model Universal Interactions Personalized Interactions Separate Back- End Systems Shared Access To Interaction History Cross-Channel and Multimodel Automatic Multiple Personalized Strategies Legacy Channel Aware Personalized Multichannel Interactions Personalized Strategies OMNI CHANNEL Multimodal Cross Channel Personalized Interactions Proactive Interactions Universal Queuing for Voice, , Chat Interactions Transition Between Channels Separate Silos/Channels Just-in-Time Information Delivered on Preferred Channel Reactive Proactive Enabled through integrated platform, customer journey mapping, analytics

32 Mobility is a Good Starting Point toward an Omnichannel Solution Consumer preference for mobile channels is increasing, while other channels are declining Percent Change in Preferences for Customer Interactions, Source: 451 Research, Voice of the Connected User, Consumer Survey, Q2 2015

33 The primary obstacle to implementing an omnichannel solution is organizational structure, not technology

34 Jacada Webinars The Rules of Omnichannel Customer Engagement Questions? Jeremy Cox, Informa/Ovum Principal Analyst Customer Engagement Team Tom Smith, Verizon Manager, CX Product Innovation Contact Center Innovation Team 2015 Jacada, Inc. All rights reserved.