Multichannel Customer Experience

Multichannel Customer Experience Auke Douwe Veenstra, Principal Analyst April 4, 2013 2013 Forrester Research, Inc. Reproduction Prohibited

We help you make better decisions in a world where technology is radically changing your customers 2012 Forrester Research, Inc. Reproduction Prohibited 2

Insights into global consumers FORRESTER CONSUMER TECHNOGRAPHICS Argentina Australia Brazil Canada China France Germany India Italy Japan Mexico Poland The Netherlands Russia South Korea Spain Sweden United Kingdom United States + Longest-running digital consumer study (since 1997) + 330,000+ completed surveys + 1,400 brands + 300 attitudes captured + 6 proprietary profiles = Deep, customizable, trended consumer insights How technology affects consumers' attitudes, behaviors, and motivations 2012 Forrester Research, Inc. Reproduction Prohibited 3

We provide our clients with: 2012 Forrester Research, Inc. Reproduction Prohibited 4

Agenda The State of Digital Why customer experience matters Three key disciplines for creating great multi-channel experiences 2013 Forrester Research, Inc. Reproduction Prohibited 5

Product-centric(push) to Customer-centric (pull).. Security Drivers Empowered Customers Are In Control

The Catalysts. HARDWARE SOFTWARE Devices Platforms Experiences Components Digital Media Digital Wallets Smart Home Financial services Verticals

Tablet Ownership Doubled In Western Europe In 2012 2013, Forrester Research, Inc. Reproduction Prohibited

Customer journeys cross touchpoints and highly digital

Customers Love Digital Touchpoints 10 2012 Forrester Research, Inc. Reproduction Prohibited

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We have entered the Age of the Customer Sources of dominance Age of Manufacturing Mass manufacturing makes industrial powerhouses successful. Age of Information Connected PCs and supply chains mean firms that control information flows dominate. Age of Distribution Global connections and transport systems make distribution key. Daimler-Benz, Ford, EMI, GE, Siemens, Lever Toyota, Walmart, Carrefour, VW Age of the Customer Empowered buyers demand a new level of customer obsession. Amazon.com, Google, MBNA, Microsoft, Tesco Contenders include Apple, Facebook, IBM Successful companies Source: Forrester Research 12 2012 Forrester Research, Inc. Reproduction Prohibited 2012 Forrester Research, Inc. Reproduction Prohibited

A customer obsessed company.. From 1. Traditional market research 2. Customer service as a cost center 3. Inefficient channel sales 4. Push advertising To 1. Real-time customer insights 2. Customer experience as a differentiator 3. Agile commerce 4. Interactive content and marketing 2012 Forrester Research, Inc. Reproduction Prohibited 13

It s time to obsess about customer experience, because Customer experience leads to profits if you treat it as a business discipline 2013 Forrester Research, Inc. Reproduction Prohibited 14

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How customers perceive their interactions with your company 2013 Forrester Research, Inc. Reproduction Prohibited

Three Questions Drive Forrester s CXi 2012, Forrester Research, Inc. Reproduction Prohibited

January 2012 The Customer Experience Index, 2012

Customer experience correlates to loyalty Willingness to consider for another purchase Likelihood to recommend to a friend Likelihood to switch business to a competitor 2013 Forrester Research, Inc. Reproduction Prohibited

Customers who had a good experience invested 4.5x more money with Fidelity Their investments added up to billions of incremental dollars per year 2013 Forrester Research, Inc. Reproduction Prohibited 2013 Forrester Research, Inc. Reproduction Prohibited

European call centre costs went down 10% to 15%. Saves tens of millions of euros per year. 2012 Forrester Research, Inc. Reproduction Prohibited

Two stock portfolios Top 10 publicly traded companies in the Customer Experience Index CX Leaders Bottom 10 publicly traded companies in the Customer Experience Index CX Laggards 2013 Forrester Research, Inc. Reproduction Prohibited 23

5-year stock performance (2007-2011) 30% 20% CXi Leaders 22.5% Cumulative total return 10% 0% -10% -20% -30% S&P 500 Index, -1.3-40% -50% 2013 Forrester Research, Inc. Reproduction Prohibited Source: Watermark Consulting CXi Laggards -46.3%

Agenda The State of Digital Why customer experience matters Three key disciplines for creating great multi-channel experiences 2013 Forrester Research, Inc. Reproduction Prohibited 25

Inside-Out Outside-In Company perceptions Customer perceptions Company moments that matter Customer moments that matter Company value Customer Value

Take Control: The six Disciplines of Customer Experience Strategy Customer Understanding Design Measurement Governance Culture Forrester report: Customer Experience Maturity Defined

Strategy Customer Understanding Design 2013 Forrester Research, Inc. Reproduction Prohibited

1. BBVA s customer experience strategy aligns plans for next generation banking 29

Our ways of banking and our customer experience represent the ideal solution for the bank based on how we ve worked internally for decades. What we want to do is develop a system that represents the ideal future solution for customers and then find a way to make that system work for the bank. Lara Bartolomé Chief Innovation Officer BBVA 2013 Forrester Research, Inc. Reproduction Prohibited 30

2. Virgin Atlantic Mapped customer journeys to get a better customer understanding 2013 Forrester Research, Inc. Reproduction Prohibited 32

Look Book Travel Tell 2012 Forrester Research, Inc. Reproduction Prohibited 33

3. USAA designed tools and channels around the needs of its clients 34

USAA Designed Auto Circle To Serve Customers Through The Entire Process Of Finding, Buying, Insuring, Selling USAA s Auto Circle meets customers needs beyond loans and insurance 2013 Forrester Research, Inc. Reproduction Prohibited November 2010 USAA s Auto Circle Makes Carbuying Customized, Aggregated, Relevant, And Social

USAA s Auto Circle helps customers to choose and buy a car In addition to reading reviews, users can ask their family and facebook friends for opinions. 2013 Forrester Research, Inc. Reproduction Prohibited November 2010 USAA s Auto Circle Makes Carbuying Customized, Aggregated, Relevant, And Social

The mobile app is contextually relevant The mobile app. provides pricing info. from USAA s certified dealers 2013 Forrester Research, Inc. Reproduction Prohibited November 2010 USAA s Auto Circle Makes Carbuying Customized, Aggregated, Relevant, And Social

Curb the enthusiasm! Pilot rollouts are the key to finding what really resonates with customers 38 2012 Forrester Research, Inc. Reproduction Prohibited

Remember the three rules #1 #2 #3 Don t try to please everyone Optimize the journey, not the touchpoint Manage the transitions Identify 2-3 high value customer journeys Map the journeys from end to end Help customers switch touchpoints 2012 Forrester Research, Inc. Reproduction Prohibited 39

Let s Speak Next Week: www.booknow.so/forrester 2012 Forrester Research, Inc. Reproduction Prohibited 42

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