Customer Experience Management
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1 Customer Experience Management Finnish-Russian Chamber of Commerce Fredrik Bergström, Solution Manager Digital Commerce
2 About me As Solution Manager I am responsible for customer value, market understanding and thought leadership related to digital commerce solution area. I lead the ecommerce / Omnichannel business and owns the offering globally in Tieto. I am also a key member in Customer Experience Management business to define the future services for enjoyable customer experience. As a Solution Manager I lead and executes offering sales together with Tieto industry sales, solution experts like project managers and architects. The work includes promotion and go-to-market and project activities both externally and internally in Tieto. I also leads the offering development work through investments and development project portfolio focused on the retail industry. I participates actively in customer interface to gather insight for the offering development and collaborate together with leading ecommerce vendors such as Hybris, IBM, Microsoft, EPi Server and Oracle. Some of my clients, 2 Tieto Corporation
3 Operating countries #1 in IT services in Finland Tieto is the largest company in the Nordics that provides full lifecycle services in IT, as well as product development, for private and public organisations. Building on our Nordic heritage and values, we have global capabilities and a strong presence where our customers need it in the Nordics or via global delivery centres across the globe. Moscow in telecom R&D in Europe #2 in IT services in Sweden 3 Tieto Corporation #1
4 Presence since 1996 Offices in Moscow and St. Petersburg 100+ employees Tier 3 Data center in Moscow 150+ customers in Russia (in all regions of the country) Competence centers for Retail, Telecom, Finance, Forest, Oil&Gas T resources and access to large global resources Local consultancy, development, support T 4 Tieto Corporation Confidential Tieto Russia
5 Accelerating growth in focus Expand markets 2015 Accelerate growth portfolio 2014 Reorienting for growth 2012 Build the foundation Execute the structure and efficiency Tieto Corporation Expand proven growth bets beyond the Nordics New growth bets e.g. IPR Accelerate customer renewal through digitalization Scale growth businesses CEM, Industrial internet, MS cloud, IPR Accelerate modernization AM and Infra Modernizing customers infra and apps Expand customer base in the Nordics Launch new cloud services Improve customer experience and quality Continue simplification and efficiency
6 We work from vision to value for a seamless digitally empowered customer experience Vision Value The Digitally Empowered Customer Experience Define business objectives 6 Tieto Corporation ADVICE DESIGN BUILD RUN Shaping the Vision Creating the Experience Making it Happen Continuously Optimising Digital strategies New business models Transformation management Concept Service UX design Co-creation Channels Tools Engines and processes Cloud SaaS PaaS Define next generations goals
7 Definition of Customer Experience Management (CEM) Customer Experience is a sum of all interactions: how customers/ consumers experience the brand, product or service in multiple touch points or interactions. 7 Tieto Corporation
8 Definition of Customer Experience Management (CEM) Customer Experience is a sum of all interactions: how customers/ consumers experience the brand, product or service in multiple touch points or interactions. Customer Experience Management (CEM) is the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty and advocacy. 8 Tieto Corporation
9 CEM is the top priority Difficult to differentiate on product or price anymore Customer experience and insight provide sustainable differentiation and key competitive advantage More than 90% of business leaders say information is a strategic asset Source: Gartner 9 Tieto Corporation By 2016, 30% of businesses have begun monetizing their information assets
10 Major opportunity This new normal can be seen as a threat. But the companies that see the great potential in it will prosper, as these new technologies also bring groundbreaking opportunities. CEM enables you to translate these opportunities into better, more sustainable business. Companies investing in customer experience deliver 30% more cumulative returns compared to the S&P 500 average. Source: Forrester and Tieto Tieto Corporation
11 Let s look at a case to understand CEM in reality. 11 Tieto Corporation
12 12 1 Tieto Corporation
13 13 1 Tieto Corporation
14 14 Tieto Corporation
15 15 1 Tieto Corporation
16 16 1 Tieto Corporation
17 Five Learnings
18 1. OmniChannel experience 2. Personal customer engagement 3. New role for the Brick-And-Mortars store 4. New Logistic and Supply Chain 5. New Technology
19 Public OmniChannel E-Commerce supporting brick-and-mortar stores? Store customers Store 1 Store 2 Store X Omnichannel customers 19 Tieto Corporation Digital channels Omnichannel shoppers at John Lewis spend 250% more Tesco s omnichannel shoppers spend 200% more +250% +200%
20 Public 20 Tieto Corporation
21 Public OmniChannel impact in business process Source: HUI Research, 2014 Tieto Corporation
22 Public Tieto Corporation
23 Public The drastic change of shopping journey: The variety of journeys available to shoppers is growing expotentially Source: Cisco Consulting services 2015: Winning the New Digital Consumer with Hyper-Relevance 23 Tieto Corporation
24 Tieto Corporation Public 2. Personal customer engagement and marketing
25 Public 25 Tieto Corporation
26 Public 26 Tieto Corporation
27 Public Tieto Corporation
28 Tieto Corporation Public 3. New role for Brick-AndMortars
29 Public Stores now have to earn the right to stay open. Ronald Sargent, CEO Staples 29 Tieto Corporation
30 Public Tieto Corporation
31 Converse, New York 31 Tieto Corporation
32 32 Tieto Corporation
33 33 Tieto Corporation
34 9 of 10 is buying 34 Tieto Corporation
35 Social Fulfillment Centers Playground
36 Tieto Corporation Public 4. New Logistic and Supply Chain
37 Bite Beauty, New Yorks Tieto Corporation
38 38 Tieto Corporation
39 Home delivery or Pick up at store? % % Källa; The New Digital DivideRetailers, shoppers, and the digital influence factor
40 5. New Technology Tieto Corporation
41 Summary Find your Social playground 41 Tieto Corporation Go for BOPIS Engage the customers Use technology for omni measuring and KPI s SatsaPersonalisation på BOPIS is a winner Våga experimentera
42 Tieto Retail Experience For the future of retail
43 CUSTOMER PHENOMENA AND NEW OPPORTUNITIES DRIVING THE CHANGE 72% of Millenials research their options online before going to a store or the mall % greater customer engagement with personalized recommendations. (source TIG survey, 2014) 85% of U.S. consumers prefer to shop in physical stores. (source: Baynote) (source: TimeTrade survey, 2015) 45% of UK online consumers chose click-and-collect for Christmas shopping in % of consumers expect live chat to be available on mobile devices. (source: Econsultancy survey, n=1000) (source: Moxie survey, 2014) 40% of Nordic shoppers expect the product to be delivered within 3 days. (source: PostNord, 2014) Jown Lewis: Omnichannel shoppers spend 3.5 times more and are more loyal. Brands must help consumers become happier or better, say 72% of Millenials. (source: TIG survey 2014) (source: IDC Retail Insights, 2012) 43 Tieto Corporation
44 We approach customers through industry concepts, that represent our understanding of the CEM challenges in 2020 Example of Retail industry concept Complex customer journeys why is customer coming to store? More digitalisation to store? More digitalisation to service or sales situation? Gimmicks vs true benefits? Consumers are savvy, how could retailers level that? Understand consumers and changes in environment Collect and combine internal and external date - and act 44 Tieto Corporation Adaptive Store Savvy Retail Sell and Deliver Anywhere Me-tail Retailer should be able to sell always then customer wants to buy True onmichannel in sales and delivery Easiness in buying through recommendations How could retailers talk to individuals and be relevant Millenials vs others Content marketing, targeted, contextual, dialogue Changing role of the service centers
45 ADAPTIVE STORE keeps store relevant for all visitors Creating a seamless shopping experience that merges the online and in-store worlds leads to a united brand experience. The shopper feels it as a natural continuum rather than separate steps. KEY SOLUTIONS Assisted sales tool In-store mobile experience Digital Signage and Kiosk solutions Store analytics and dashboard Modern point-of-sales and mobile payment 45 Tieto Corporation
46 SELL N DELIVER ANYWHERE enables flexible shopping and delivery options 24/7 E-commerce has become omnichannel commerce. The customer journey becomes streamlined and flexible. Backed by complex and integrated retail systems, modern 24/7 digital shopping takes shape according to personal needs, from browsing and ordering to delivery or pick-up. KEY SOLUTIONS Omnichannel commerce suite B2C web shop B2B web shop Product information management Order management systems 46 Tieto Corporation SELL N DELIVER ANYWHERE
47 ME-TAILING makes marketing feel like a service Engaging consumers through personalization to trust and loyalty encourages them to share data that helps the retailer to deliver to the shopper s needs with increasing accuracy. The new era of customer loyalty means less of take your card out and more of Hey, we remember you. KEY SOLUTIONS Experience and content management Campaign management Engaging customer service Voice of Customer and feedback management Fully branded mobile app for shoppers Example offerings: Adobe Marketing cloud & Adobe tools 47 Tieto Corporation
48 SAVVY RETAILER understands what every customer wants Capturing, analyzing, and acting on re- al-time consumer data will allow retailers to create a more personal and accurate shopping experience by even predicting shoppers behavior. A customer whose needs are satisfied becomes a returning customer. And a returning customer means business. KEY SOLUTIONS Advanced customer analytics Big data platform and integration Digital analytics Personalization and recommendation Social Analytics 360 dashboards 48 Tieto Corporation
49
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