What s the Payoff on a Successful CEM Strategy?
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1 W E B C A S T S E R I E S What s the Payoff on a Successful CEM Strategy? May 14, pm to 3pm EDT
2 Featured Speakers Marco Bill-Peter VP, Customer Experience & Engagement Red Hat Mark Hessinger SVP, Global Customer Advocacy Flash Global Logistics Greg Johnson Managing Director of Worldwide Support Pitney Bowes, Inc.
3 Measuring the ROI of CEM Bill Bradley VP, Marketing & Business Development
4 A Successful CEM Strategy Must Focus on the Big 4 Acquisition Retention WinBack Growth Omega Management Group Corp. All Rights Reserved
5 CEMDNA Playbook Strategy
6 Measuring the Customer Experience at Red Hat Marco Bill-Peter VP, Customer Experience & Engagement Red Hat
7 Red Hat: What we do We offer a range of mission-critical software and award-winning support, training, and consulting services covering: CLOUD MIDDLEWARE OPERATING SYSTEM VIRTUALIZATION STORAGE How we do it. We develop everything via community-powered innovation. Shared development reduces costs & accelerates innovation. Open collaboration offers products that genuinely meet customers' requirements. The benefits. Flexibility Faster technology innovation Better quality Better price/performance Alignment to your needs 7 Marco Bill-Peter
8 The Economist Take-aways from the December 2013 report: A large majority of companies are fundamentally rethinking their strategies for engaging individual customers The benefit of connecting customers, employees, partners and products is ultimately customers who are more satisfied We will strive for 100% customer engagement and to continually innovate and improve the overall customer experience 8 Marco Bill-Peter
9 9 Marco Bill-Peter
10 Creating connections with our customers Case-driven support Engagement Case-driven: Access to support as needed to fix technical issues Key characteristics Reactive engagement Break/fix interactions with customers Knowledge shared with customers for critical issues and updates Strategic engagement Engagement Strategic: Personalized access to support personnel and resources Key characteristics High-touch engagement TAMs & SRMs build consultative relationship with customers Knowledge pushed to customer based on needs Digital engagement Engagement Content-driven: Digital access to support resources Key characteristics Scalable engagement Limited customer lifecycle knowledge Knowledge pulled by customer as desired Knowledge pushed to customer based on situations 10 Marco Bill-Peter
11 Red Hat growth Red Hat Addressable Market 2005 $8.0 Billion Red Hat Addressable Market 2016 $53.5 Billion 450 COMPANY REVENUE FY2003 FY2014 (in millions) FY04 FY06 FY08 FY10 FY12 FY14 11 S BY CHANNEL FY2013 Marco Bill-Peter
12 Customer data analytics Using data analytics to connect with the right user, at the right time, through the right channel, and with the right message for value and growth 12 Marco Bill-Peter
13 Content driven customer engagement Delivering a personalized user experience from purchase point to renewal Proactive, personalized customer communications Align to customer needs Enable customers to be productive with their Red Hat enterprise products Create proactive and personalized customer interactions 13 Marco Bill-Peter
14 Red Hat Access Labs A way for customers to access tools that can help improve performance, quickly troubleshoot issues, identify security problems, or any other issue we see our customers experiencing in their IT environment 14 Marco Bill-Peter
15 Summary Strategic Measurements Renewal rates Annual growth rates Customer engagement 100% Vision Customer usage & consumption / life of subscription VoC efforts with Csat and NPS metrics Agility Invest in high ROI efforts Kill low ROI efforts Don t wait for the perfect data 15 Marco Bill-Peter
16 Benefits of a CEM Strategy Mark Hessinger SVP, Global Customer Advocacy Flash Global Logistics
17 Flash Global Logistics A strong partner for mission critical spare parts solutions. Flash manages mission critical spare parts for same day (2 hour), next day, next flight out, and scheduled deliveries. Flash offers a full suite of flexible and innovative logistics solutions for complex, critical-parts supply chain challenges. MISSION: Deliver quality services and support to our clients, as expected, anytime, anywhere with flawless and efficient execution that enables client confidence, growth opportunity and 100% reference-ability. 17
18 Flash Building Blocks Best in class execution Build client confidence Breathe client intimacy
19 FGL s Focus Differentiated Value to the Client Base Proactive Program In-Region Presence Account Mgmt Local Expertise Trade Mgmt Flexible Design Best-in-Class Solution Optimization Each of these focus areas have a large impact on the Customer Experience.
20 Customer Experience Flash Provides: Performance consistency KPIs green Easy to do business with Accessible Proactive communications Account Management maximize the long-term value of customers Leverage feedback to drive improvements Customer has: Performance to end customers being serviced Peace of mind 24x7 Call Centers, Online tools Account Manager, Reporting Focal point Partner for the long-term Strategy alignment Customer Advocacy inwards and outwards Account Management is about increasing Loyalty and Profits. 20
21 Continual Feedback/Improvement System Performance Daily Flash Business Plan corrective or People, innovative adjustment Process, Technology Business Owners Adjust plans, policies, processes or service Measure Customer Opinion Combine Measures from all sources Customer Visits Quarterly Surveys NPS Account Manager Activity Analyze and interpret the information Team Discussion
22 GOAL: 100% Reference Customers Incorporated NPS question in customer survey Account Manager reviews NPS, Customer survey, Operational KPIs and defines action plans Top themes identified for Kaizen activity FEEDBACK: Keep on doing what you are doing. Innovation is engrained in your culture.
23 Compared to CEMDNA Playbook CEMDNA Playbook Strategy* Measure, Analyze, Act, Assess Strong Account Management Focus KPIs, Surveys, NPS, QBRs, in-person meetings Internal communications, Kaizen events, leadership alignment Results, Review, Revise * source: Omega Management Group 23
24 Client Development Year Period +80% number of clients +110% services revenues 80% overall client growth After CEM 6% of attrition controllable. 4X Improvement in retention. Before CEM, 23% of attrition was controllable 24
25 A Successful CEM Strategy Pays Off 2014: 25% growth rates fed 75% from existing clients Continual feedback from clients that the Account Management is a differentiator All accounts with a dedicated Account Manager are available as a reference account (unless company policy prohibits references) 2 key accounts with detractors in 2013 have now shifted to no detractors in 2014 (key accounts with a dedicated Account Manager) High percentage of new business pipeline comes from referrals and/or uses a reference to help close the deal 25
26 ROI of Customer Experience Management at Pitney Bowes Greg Johnson Managing Director of Worldwide Support Pitney Bowes, Inc.
27 About Pitney Bowes Inc. Helps companies connect with their customers through communication technologies 94 year history of client-focused innovative technologies 27,000 employees globally 2 million clients Our offerings include: location intelligence software geocoding and reverse geocoding software data quality and integration software customer communications management software document composition and output software high-speed color printing systems for transactional documents traditional mailing solutions (postage meters, inserters, scales and sorters) 27
28 Customer Experience Management Continuous Improvement Outside In Thinking Part of our Day to Day Operations Client Journey Map Established Listening Posts Dedicated Analysts Client-centric Employee Goals Cross-functional Collaboration Regular Communications with Clients 28
29 Customer Experience Management Examples of CEM driven initiatives: Responsiveness & Accountability Defect Backlog Grooming Domain Training Knowledge Centered Support Managed Service Offerings Broader 24x7 Access Software Licensing & Backend Systems Improvements 29
30 Customer Experience Management Examples of how we are measuring success: Customer Loyalty/Satisfaction Relationship Surveys annually Transactional Surveys across Post-Purchase, Renewal, Technical Support, Training, Professional Services Employee Engagement Maintenance Renewal Rate Maintenance Revenue Relationship Recovery/Escalation Impact Winback Rate and Associated Revenue 30
31 Customer Experience Management Return on Investment High Correlation but Very Difficult to Prove Causation Maintenance Revenue Up Customer Satisfaction Up NorthFace ScoreBoard Award Recipient Our Very Satisfied Clients are 20% more likely to purchase additional services and products What Next? Additional Managed Services Increased Service Value Hyper-Personalization Proactive Services Remote Diagnostics 31
32 Thanks for Your Participation Marco Bill-Peter VP, Customer Experience & Engagement Red Hat Phone: 978/ Mark Hessinger SVP, Global Customer Advocacy Flash Global Logistics Phone: 860/ Greg Johnson Managing Director of Worldwide Support Pitney Bowes, Inc. Phone: 518/
33 Requests for Information Bill Bradley VP, Marketing & Business Development Omega Management Group Corp. Tel. 978/ Check for upcoming webcasts at
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