How To Manage Customer Experience Management
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- Phebe Summers
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1 Putting the Customer at the Heart of our Companies HARNESSING INNOVATIVE TECHNOLOGY TO BUILD LONG-TERM CUSTOMER RELATIONSHIPS 25/06/2014 1
2 Customer Experience Management Building Sustained Growth and Profitability in an Era of Disruptive Technologies Dr Jim /06/2014 2
3 Questions If you have any questions, don t bother asking because I don t really care if you have any questions, what your opinion is or what you think. If you ask a question I will ignore you. 25/06/2014 3
4 Reality Check How many organisations treat their customers that way? How customer led is your organisation? How social is your organisation? Four out of five companies do not respond to customer comments on social channels 25/06/2014 4
5 A Conversation Lets have a conversation not a broadcast presentation 25/06/2014 5
6 Theme Customer Empowerment We live in an era of disruptive technologies that have shifted the balance of power from suppliers to customers In a world where customers are in control, the real source of sustained growth and profitability is: The quality of your customer base The strength of the relationship you have with quality customers Your ability to leverage that relationship ( Up and Cross sell)
7 Theme - CEM Delivering exceptional customer experiences across multi-channels and at all stages of the customer journey (especially at Key Moments of Truth) is now critical Customers remember experiences more than they remember products and services Customer Experience Management has become the new competitive advantage. Companies that manage this transition effectively, through the innovative use of new technology, will thrive and prosper; those that don t could become Digital Dinosaurs
8 Adapt or Die Brian Solis 25/06/2014 8
9 Digital Darwinism When technology and society evolve faster than our ability to adapt 25/06/2014 9
10 Digital Darwinism 25/06/
11 Agenda The Digital and Social Media Revolutions - Digital Darwinism Implications New mindsets required Customer Experience Management (CEM) Attract and Acquire Retain and Grow Actionable Insights from Customer Analytics Measuring CEM Performance Are You Customer Led Benchmark your own organisation against accepted best practice 25/06/
12 Lets Talk About Dinosaurs 25/06/
13 What do the following companies/ products have in common? 25/06/
14 In Common? 25/06/
15 What about these ones? 15
16 Digital Dinosaurs All have become (or could become) Digital Dinosaurs due to their failure to adapt to Disruptive Technologies 16
17 What Does HMV Stand For? 25/06/
18 (HMV) Hopelessly Misplaced Vision 18
19 Rearranging Deck Chairs 19
20 Who Will Be The Next Dinosaur? 20
21 Who Will Be Next? 21
22 MOOCs 22
23 The Future of Higher Education 23
24 Spot the Dinosaur Me 24
25 The Future of Higher Education? 25
26 So why now..? 26
27 Why Now? 27
28 Why Now? Social Media + Mobile + The Cloud + Big Data + Gen C = The End of Business as Usual 28
29 The Connected Customer 29
30 The Connected Employee The Connected Customer is also the Connected Employee Yet we expect our employees to work differently from the way they live 30
31 Social Media Revolution
32 #Socialnomics
33 Summary The rules of the game have changed The 5 key things to remember about Social Media 33
34 Summary It s a revolution It s social Power shift Declining effectiveness of traditional approaches to sales and marketing New business performance measures required 25/06/
35 Business Success Business success depends on the quality of your customer base; the strength of the relationship you have with quality customers; and your ability to leverage that relationship In a digital/social media era, business success depends on the Quality of your network Relationship strength Ability to leverage 25/06/
36 The End of Business as Usual Winners will be those organisations who fully utilise the interactive power of Digital/Social Media for engaging with and energising customer and network relationships 36
37 Implications and Response What are the implications of all of this and how can we best respond? 37
38 Implications and Response New mindsets required CEM - the key to sustained growth and profitability Using digital/social for new customer acquisition Retain and grown exisiting customers social customer service Deriving actionable insights from customer analytics Measuring CEM performance RUCL Are You Customer Led? 25/06/
39 New Mindsets are Required Think Digital/Think Social First 39
40 Digital Natives By 2025, Digital Natives will account for 70% of the global workforce and they will be shooting dinosaurs 40
41 Digital Natives (2005) 41
42 Reverse Mentoring 42
43 Customer Experience Management
44 Customer Experience Management The first challenge of the twenty-first century is to master the changes that come with customers being in control. Companies that manage this transition effectively will thrive; those that don t will fail Customer differentiation is the key to success in the twentyfirst century (Nykamp, and that was in 2001) 25/06/
45 CEM the proposition The real source of customer loyalty, retention and growth is the quality of the experience that each customers has in dealing with your organisation Every time a customer interacts with your organisation, they experience what it is like to deal with your people, systems, organisation and culture Customer experiences during these interactions, especially at key Moments of Truth (MOT), can have a major impact on future behaviour. Positive experiences will help to build customer loyalty. Negative experiences lead to customer defection
46 CEM- the proposition Customer experiences occur across multiple touch points and at different stages of the customer life cycle These touch points are becoming increasingly digital/increasingly social As companies cannot avoid providing experiences at each touch point, it is critical that these are proactively managed in ways that impact positively on future customer behaviour. Achieving consistency and quality across all touch points is critical
47 CEM the proposition Based on the above, CEM can be defined as the proactive management of the critical interactions that take place between an organisation and its customers in ways that deliver exceptional value to the customer and to the business. Managing positive customer experiences will generate loyalty, retention and growth. Negative experiences will lead to customer defection Proactive management of digital and social channels has become mission critical
48 CEM the benefits In terms of bottom line business benefits, effective CEM can deliver short, medium and longer term customer advantage immediate improvements in customer satisfaction and retention, sustained customer loyalty and competitive differentiation In a digital/social era, customer satisfaction is no longer enough. Brands should be striving for customer advocacy The Ultimate Moment of Truth..(Brian Solis)
49 The Ultimate Moment of Truth 25/06/
50 Customer Acquisition 25/06/
51 Inbound/Content Marketing As a consequence of the power shift to customers, a new approach to sales and marketing is required An approach built on the key principles and practices of Inbound/Content Marketing Its time to rethink marketing and PR 25/06/
52 Rethinking Marketing & PR Unlearn marketing New mindset required Stop telling people how good we are. Prove it. A shift from Outbound Marketing to Inbound/Content Based Marketing 52
53 Old Marketing (Outbound) Propaganda marketing this is how great our product/service is, now buy it Interruption marketing direct mail, advertising One way shouting AT customers Short term sales/campaign driven Channels Print Ads: TV/Radio Ads; Cold Calling; Blasts; Online Advertising; Web Sites that talk AT you 53
54 Reality Check Customers are no longer passive sheep 54
55 Inbound/Content Marketing Content is King! But content is only great if it adds value to the customer so. Customer is King! Adopt a customer led approach Produce great content that is Customer Led ; Authentic; Compelling; Entertaining; Surprising; Valuable; Interesting Establish your company as a thought leader a trusted resource Produce great content and your customer will come to you. Produce really great content and they will share it 55
56 Inbound/Content Marketing Overall objective is to ignite or elevate your business through great content Sell without selling Build a quality online network a quality customer base through high value content and engagement Great content drives conversation. Conversation drives engagement. Engagement drives sales Great, customer led content is a Competitive Advantage 56
57 The Elevation Principle Great Content + + Other People Marketing Messages = Growth 57
58 Great Content Ignites Your Business 58
59 Create Music Not Noise 59
60 A Great Example 60
61 Retain and Grow 25/06/
62 Social Customer Service 62
63 Retain and Grow Constantly connected customers (especially Digital Natives) require constantly connected Social Customer Service 25/06/
64 Social Customer Service In a Social Customer era, refusing to engage on social channels will be as harmful to brand reputation as ignoring s or telephone calls. Indeed, it will be even more harmful due to the power of the network Despite this, there is growing evidence of a major gap between rising customer expectations of service delivery through social channels and the actual customer experience 64
65 SCS: The Demand Inbound customer requests on Twitter have increased by 208% in the last year (Simply Measured) and by 85% on Facebook (Social Bakers) 72% of consumers posting a customer service question/complaint on Twitter expect a response within 1 hour (Lithium) 32% of social customers expect a response within 30 minutes; 42% expect a response within 60 minutes (Social Habit) 57% of consumers think brands response times on social media should be the same during weekends/weeknights as they are during business hours (Social Habit) 65
66 SCS: The Supply Only 32 of the top 100 global brands have a separate customer service handle on Twitter (Simply Measured) Only 29% of companies state that Social Customer Service is an important objective of their online activities; by contrast, 62% state that customer acquisitions via social media was very important (Social Bakers) Only 36% of consumers report having their social customer service enquiries solved quickly and effectively (NM Incite) Canned responses are common 23% of companies direct social customers to a company web site for help, 17% signpost to and call centre support (Simply Measured) 66
67 SCS: The Impact 71% of consumers who experience a quick and effective brand response on social media are likely to recommend that brand to others, compared to just 19% of customers who do not receive a response (NM Incite) Customers experiencing positive social care are 4x more likely to endorse your brand than others (Conversocial) One negative comment on social media can wipe out the effect of up to five positive comments (Conversocial) The average number of people a social customer will tell about a bad customer experience is 53 (American Express Global Customer Service Barometer) 67
68 Implications There needs to be total acceptance, at the highest level within an organisation, that Social Customer Service is an investment for the future, not just a cost A commitment to investing in relationships and improving the overall customer experience Radically changing how we engage with customers (now and in the future) - from fire fighting to two-way dialogue and cooperation Invest in social, people and technology Listen, resolve and learn 68
69 What Happens When Things Go Wrong 69
70 The WOW Factor When Done Right - ScotRail The scotrail website keeps crashing help I need to know my train Morning, where are you travelling from/to please and roughly what sort of time do you want to scoutstounhill to Glasgow central, some time between 10 and 11am today. Thank you! Morning, from Scotstounhill at 10:11 or 10:41 this morning. oh my gosh, thank you so much! Have a lovely morning x 70
71 Shut Up and Listen Develop Actionable Insight from Social Media Listening and Customer Analytics 71
72 Actionable Insight Social media is a conversation not a broadcast platform Conversations are taking place relevant to your brand are you listening? 72
73 Social Media Listening 73
74 Consider this. 25/06/
75 From Widgets to Digits In 2003, the collective market value of Amazon, Apple, Facebook, Google, Netflix and Pandora was $34.3bn By 2013, this had increased to $1,210.5bn By contrast, the collective market value of Borders, Nokia, My Space, Yahoo, HMV and Blockbuster had declined from $124.7bn to $67.8bn
76 Success Due to Code Halos
77 Measuring CEM Performance 25/06/
78 The End of Business as Usual Winners will be those organisations who fully utilise the interactive power of Social Media for engaging with and energising customer and network relationships
79 New Performance Measures Business success depends on the quality of your customer base; the strength of the relationship you have with quality customers; and your ability to leverage that relationship In a social media era, business success depends on the Quality of your network Relationship strength Ability to leverage The 6i s Approach
80 The 6i s Approach 25/06/
81 So how well are you performing in this area? Are You Customer Led - RUCL?
82 Are You Customer Led? - RUCL Initial benchmark evaluation of your approach to customer strategy and customer management Resulting Gap Analysis provides a strong foundation for future strategy development Give yourself a score out of 10 for each area in terms of how well you are currently doing Be honest!!!!!!!
83 The Ten Criteria Vision/Mission Customer Knowledge and Understanding Strategy The Customer Experience People Processes and Systems Digital/Social Organisation and Culture Performance Evaluation Planning
84 What road are we on? 84
85 Conclusion Effective customer management is critical to achieving sustained growth and profitability But most companies do not have a clear customer management vision or strategy Most organisations have heard the wake up-call. The hard part is moving away from the way that things are done around here because that s the way they have always been done
86 We ain t seen anything yet 50bn Connected Devices by
87 Let's Discuss
88 The true business of every company is to make and keep customers (Drucker, 1954)
89 The true business of every company is to make and keep quality customers (Hamill, 2010)
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