Transform DMI 2014 launch event speaker presentations

Emma Robertson Transform

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About DMI 2014

•  Independent research agency to collect the views of over 100 business leaders from across multiple sectors including retail, media, health, financial services, telecoms and public sector organisations

•  Consumer opinion included to provide a contrast – online survey of over 200 consumers

•  Transform conducted in-depth, face-to-face interviews with the digital leadership of 40 organisations

•  Opinion pieces from five digital thought leaders

DMI over the years

From the coming of age of multi-channel back in 2010, DMI through the years has evolved in line with the customer trajectory and their adoption of technology and channels.

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DMI 2014 Key findings

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We’re all customer-centred now

•  Digital is at the heart of citizen and customer engagement

•  Also a strategic focus for channel shift and commercial growth

•  In DMI 2014 we’re seeing significant customer experience developments: –  50% of organisations reported using four or

more UX techniques

–  75% of organisations now have customer representation at board level

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Risk another silo

•  It’s not embedded in the end-to-end experience or more importantly, the psyche of the project, programme or organisation

•  Centres of excellence put customers on the critical path •  BUT…

DMI 2014 is about ecosystems

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The digital ecosystem

•  As digital becomes more integral to the underlying strategy, the component parts of digital maturity must be treated as an ecosystem, not a hierarchy.

•  Preventing outcomes such as:

–  Projects failing because of a focus on technology and channel without understanding business and customer requirements fully

–  Operationalised customer initiatives – communication of a digital initiative by laminated sheet as employees have to leave smartphones in lockers during working hours

•  When ‘digital strategy’ simply becomes ‘strategy’ interdependencies will be critical

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Technology

Channels

Customers

Strategy

Culture

DMI 2014 – headline stats

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Technology

•  We have seen a move towards agile delivery methodologies and open source development

•  There is a practical and attitudinal shift supporting innovation techniques as well as the build itself

•  In 2012, 87% of organisations had no formal process for innovation

•  This year 67% are reporting that they use hackathons, innovation labs or open APIs to drive digital innovation

Which of these innovation tools are used in your organisation?

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Channels

•  Omnichannel (multi-channel done properly) is ambitious

•  Many organisations aren’t set up strategically, structurally or culturally to deliver it effectively

•  Channel integration remains a priority: –  19% report full integration of channels

–  32% state they have front-end integration only

How effective are your channels in achieving the objectives you have for them?

Channels What are the key gains of of a stronger ability to deliver transactions and services online? •  We asked “What are the key gains of a stronger ability to

deliver transactions and services online?”

•  32% of organisations stated that they see digital transactions as a primary driver for cost savings

•  35% want digital services to drive an enhanced customer experience

•  There continues to be a tension around objectives •  Setting the correct KPIs and defining the role of individual

channels is critical to the success of digital

Customer

Which tools and techniques do you regularly use to understand your customers? •  A focus on the customer within digital and the

emergence of customer experience as a discipline is probably the most significant organisational shift since we began DMI

•  In 2011, 59% of private and 80% of public sector organisations reported little or no understanding of the end-to-end customer experience

•  In 2014, 66% report customer ownership at board level and there are a variety of tools and techniques being used regularly in organisations today

Customer

Which metrics do you use to measure customer experience within your organisation?

•  Another step change has been the move towards measuring more intangible benefits, alongside the commercial and transaction based KPIs that we know and love.

•  53% of respondents now measure customer happiness as a way of assessing how well digital channels are performing

•  66% use a customer satisfaction index •  Organisations are recognising the importance of

customer experience and customer lifetime value, rather than relying solely on transactional reporting

Strategy

Does your organisation have a digital vision and strategy?

How well is this shared and owned across your organisation?

The design and sharing of digital strategy… •  65% now have a digital strategy in place but with 35% responding either ‘no’ or ‘don’t know’ there are still a large number running from roadmaps rather than outcomes

•  Also only 8% reported that the strategy is ‘very well’ known about across the organisation

•  Digital must be under the umbrella of the wider organisation not stand alone

Culture

•  Culture is the glue that holds everything together but it’s often the hardest component to define

•  DMI 2014 has captured a range of developments around digital culture including:

–  Opening up code –  Empowering front line staff to own and

manage customer resolutions •  When it comes to decision making although 59%

of decisions are still set by senior management, when you back this up against 65% of organisations having a digital strategy, this seems less HiPPO in nature

•  Also test and learn innovation is on the rise but the ‘fail fast’ culture is yet to be fully embraced

Which of these describes your organisation’s digital decision making?

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What does digitally mature look like?

•  It’s an ecosystem rather than a hierarchy •  All components are interdependent

•  You can download the full report from our website: www.transformuk.com/dmi2014

•  Share your views on twitter (#DMI2014) and on LinkedIn (DMI 2014 group)

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Thank you

Transform UK

60 Great Portland Street

London

W1W 7RT

Tel: 020 3128 8300

Email: enquiries@transformuk.com

www.TransformUK.com

@TransformUK

Transform DMI 2014

Dr Nicola Millard BT

BT Contact. Relationships that grow

The Autonomous Customer: 5 Trends for the Future.

Dr Nicola J. Millard Head of Customer Insight & Futures BT nicola.millard@bt.com @DocNicola

BT Contact. Relationships that grow 22

Trend 1: Easy is the New Loyalty.

Copyright- BT Global Services, 2014

5% Felt they had got good value for money when they had a difficult experience

44% Say that loyalty to companies is a thing of the past (50% in the UK).

32% Of shoppers regard ‘easy’ as a top 5 factor when it comes to shopping.

BT Contact. Relationships that grow 23

“Net Easy” Does It. Making it Easy is the missing link between operational quality and loyalty:

Operational performance

Customer experience

Advocacy

Incremental value Churn

reduction

NPS

Net Easy

OCR & RFT

Why measure Easy? ü  True voice of the customer

ü  Drives advocacy, VFM & loyalty ü  Highly actionable feedback

ü  Applicable in all channels ü  Engages and resonates with staff ü  Low effort also = lower cost

Customers finding it easy are 40% less likely to churn

Copyright- BT Global Services, 2014

BT Contact. Relationships that grow 24

Trend 2: Omnichannel is the New Normal.

Copyright BT Global Services, 2014

say they constantly change the way they deal with organisations

say organisations make it easy to switch between different channels 1:2 17% only

BT Contact. Relationships that grow 25

Trend 3: Webchat is growing faster than Social Media.

88% Of advisors rated Webchat as good or very good

26% Of customers use webchat as a preferred contact channel currently

82% Of customers rated Webchat as good or very good

15% Increase in productivity compared to phone

9 in 10 consumers want support while online

68% Would like to have webchat offered whilst online

89% Want my queries answered by a person whilst shopping online

Copyright BT Global Services, 2014

BT Contact. Relationships that grow 26

Trend 4: Smartphones Fundamentally Change Behaviours

16-34 year olds driving smartphone commerce

Copyright BT Global Services, 2014

BT Contact. Relationships that grow 27

Trend 5: The Contact Centre Model Will Change.

Employees need help to deal with today’s consumer

Copyright BT Global Services, 2014

Primary function 2020

Agent skills 2020

BT Contact. Relationships that grow 28

Contact Centre or Relationship Hub?

Voice

Webchat

VoIP

SMS / MMS

E-mail

‘Call me’

Video

Social Media

Home Workers

Branch Offices

Remote Workers

Mobile Workers

Contact Centres

HQ

Copyright BT Global Services, 2014

BT Contact. Relationships that grow

Thank You! Dr Nicola J. Millard Head of Customer Insight & Futures BT nicola.millard@bt.com Twitter: @DocNicola BT Let’s Talk Blog: http://letstalk.globalservices.bt.com/en/ author/nicolamillard/

Copyright BT Global Services, 2014

Kathy Settle Government Digital Service

Kathy Settle Director, Digital Policy and Departmental EngagementGovernment Digital Service#

GDS#Kathy Settle#

Digital by Default - 2 Years On What has the programme delivered to date?What have we learnt? What’s next?#

GDS#Kathy Settle#

Transforming government services and information provision#

GDS#Kathy Settle#

www.gov.uk#

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https://www.gov.uk/performance/site-activity#

GDS#Kathy Settle#

GOV.UK Transition##By December 2014, 312 sites will have moved to GOV.UK##1,829 sites closed in total#

GDS#Kathy Settle#

Digital Transformation programme#

GDS#Kathy Settle#

Create digital services that are so good that all those who can use them will choose to do so#

GDS#Kathy Settle#

whilst those who can’t are not excluded#

GDS#Kathy Settle#

GDS#Kathy Settle#

Working with 8 departments – together they cover 95% of government transactions#

GDS#Kathy Settle#

Building capability to sustain and grow ‘digital by default’ services#

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www.gov.uk/lasting-power-of-attorney#

Transforming Services!!From this!

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www.gov.uk/lasting-power-of-attorney#

To this!

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www.gov.uk/carers-allowance#

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168 questions removed from the process (30% reduction)#

50 GDS#Kathy Settle#

GDS#Kathy Settle#

www.gov.uk/transformation#

GDS#Kathy Settle#

Transforming government services and information provision#

GDS#Kathy Settle#

Create digital services that are so good that all those who can use them will choose to do so#

GDS#Kathy Settle#

whilst those who can’t are not excluded#

GDS#Kathy Settle#

We want to ensure that take-up rates of government services reflects the number of adults who are online and able to use digital services….#

GDS#Kathy Settle#

…but we also need to support those who can’t use government services independently#

GDS#Kathy Settle#

Whether it’s over the phone…##

GDS#Kathy Settle#

or face by face##

GDS#Kathy Settle#

www.gov.uk/government/publications/government-approach-to-assisted-digital#

GDS#Kathy Settle#

87% (44.6m) adults have access to the internet##76% (34m adults) use the internet every day##11m adults do not have basic digital skills#

GDS#Kathy Settle#

We are collaborating with public, private and voluntary sector partners to help people and business go online#www.gov.uk/government/publications/government-digital-inclusion-strategy/uk-digital-inclusion-charter#

GDS#Kathy Settle#

We want to reduce the number of people who are offline by 25% (2.7m people) by 2016#

GDS#Kathy Settle#

And continue to do this every 2 years#

GDS#Kathy Settle#

So that, by 2020, everyone who can be digitally capable will be#

www.gov.uk/government/publications/government-digital-inclusion-strategy/government-digital-inclusion-strategy#

GDS#Kathy Settle#

What have we learnt?#

GDS#Kathy Settle#

Transforming organisations is critical…#

GDS#Kathy Settle#

Transforming organisations is critical…and difficult!#

GDS#Kathy Settle#

Get senior leadership and (political) backing in place at the outset#

GDS#Kathy Settle#

Ensure you have the right people with the right skills#

www.gov.uk/service-manual/the-team#

GDS#Kathy Settle#

Multi-disciplinary teams!

GDS#Kathy Settle#

Recruiting new people, retraining existing people#

GDS#Kathy Settle#

Recruitment hub#

GDS#Kathy Settle#

End to end transformation of government services#

GDS#Kathy Settle#

Agile#

GDS#Kathy Settle#

From an old way of doing things…#

GDS#Kathy Settle#

…to a new one#

GDS#Kathy Settle#

Help people do it right#

GDS#

www.gov.uk/service-manual#

GDS#Kathy Settle#

Check up front that people intend to do the right thing – spend controls#

GDS#Kathy Settle#

www.gov.uk/government/publications/cabinet-office-controls/cabinet-office-controls-guidance-version-32#

GDS#Kathy Settle#

And then check at regular intervals that they are still doing the right thing – service standard assessments#

GDS#

www.gov.uk/service-manual/digital-by-default#

GDS#Kathy Settle#

Look for opportunities to do things once….where it makes sense#

GDS#Kathy Settle#

New platforms#

GDS#Kathy Settle#

www.gov.uk#

GDS#Kathy Settle#

Identity Assurance#

GDS#Kathy Settle#

www.gov.uk/government/publications/introducing-govuk-verify#

GDS#Kathy Settle#

Sort procurement and get access to the right suppliers#

GDS#Kathy Settle#

New frameworks#

GDS#Kathy Settle#

New frameworks#www.gov.uk/digital-marketplace#

GDS#Kathy Settle#

Keep control of your data#

GDS#Kathy Settle#

www.gov.uk/performance#

GDS#Kathy Settle#

www.gov.uk/performance/renew-patent#

Renew a patent#

GDS#Kathy Settle#

Governance#

GDS#Kathy Settle#

Governance#

www.gov.uk/service-manual/governance/governance-principles#

GDS#Kathy Settle#

Focused on user needs

GDS#Kathy Settle#

User research lab!

GDS#Kathy Settle#

For more information about what we’ve done:##www.gov.uk/government/collections/government-digital-strategy-reports-and-research##www.gds.blog.gov.uk#

What’s next?#

GDS#Kathy Settle#

Kathy Settle Director, Digital Policy and Departmental EngagementGovernment Digital Service kathy.settle@digital.cabinet-office.gov.uk#

Professor Moira Clark Henley Business School

CX excellence: achieving and maintaining service excellence for

today’s consumers. Professor  Moira  Clark  

www.hccmsite.co.uk  Maximising  Value  through  Rela:onships  

CX  excellence:  achieving  and  maintaining  service  excellence  for  

today’s  consumers.                                    Professor  Moira  Clark  

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What makes a ‘perfect’ customer experience?

•  Experience orientated

Memories are the currency of customer experience

The Customer Experience Model

Emotional

Access

Application of Knowledge

Atmosphere

Caring – Attitude –

Caring – Procedures, Processes –

Communication

Sector Differences

Individual

Outcomes

Peer-to-Peer

Relationship

Reliability

Safety

Social Impact

Supplier Condition

Value for Money

Value for Time

Variety / Choice

Product Service Experience

*

* *

*

* Emphasis on attitude

Knowledge – From Brain to Heart

Two  types  

Articulate knowledge We can write it down

• BA (hons), MBAs • Accountant, Engineer

The Brain • Physical need

• Practical • Comfort • Sensible

• Common Sense • Rational

Tacit knowledge • Silent

• Implicit • Can’t write it down

Heart • Experience • Emotions

• Esteem • Aesthetics

• Impulse

Tacit knowledge - the next generation of competitive advantage Professor Moira Clark

Important CE Factors in B2B and B2C

1.  Extent of Personal Contact 2.  Flexibility 3.  Implicit Understanding of Customer

Needs 4.  Pro-activity in Eliciting Customer’s

Objectives 5.  Pro-activity in Checking that Everything

is OK 6.  Promise Fulfilment 7.  Knowledge

1.  Helpfulness 2.  Value for Time 3.  Customer Recognition 4.  Promise Fulfilment 5.  Problem Solving 6.  Personalisation 7.  Competence 8.  Accessibility

B2B B2C

Important CE Factors in B2B

1.   Extent  of  Personal  Contact    The  extent  to  which  the  company  deals  with  the  customer  through  personal  contact  methods  

2.   Flexibility      How  willing  and  able  are  the  company  to  modify  their  offering  in  response  to  the  customer’s  specific  needs  or  changing  requirements?  

3.   Implicit  Understanding  of  Customer  Needs    Does  the  company  understand  the  context  of  the  customer’s  order?  Do  they  use  their  prior  knowledge  of  the  customer  and  their  business  to  serve  them  beJer?  

Important CE Factors in B2C

1. Helpfulness Are they really prepared to help me – where nothing is too much trouble for their staff?

2.  Value for Time Do they respect and make efficient use of my time – by shortening queues and delivering what they provide efficiently?

3. Customer Recognition When I contact them do they recognise and acknowledge me as an individual?

1.  You  need  to  develop  good  customer  insight  

SemioCcs  Ethnography  

Customer insight Use the full toolbox…………

etc

•  Get  into  the  mind  of  the  customer!  •  Make  it  easy  to  be  a  customer  

The  Great  Recession  2008-­‐2009  

2009:  Hyundai  Assurance:  If  you  lose  your  job  or  income  within  a  year  of  buying  the  car,  you  can  return  it  with  no  penalty  to  your  credit  ra:ng.  Industry  sales  declined  37%  but  Hyundai    sales  nearly  doubled  and  sold  more  than  Chrysler  who  had  4X  more  dealerships  

Customer insight

Use  customer  feedback  from  customers  to  improve  the  customer  experience  

•  Surveys  and  monitoring  online  and  offline  behaviour  

Rant & Rave – Active - 66099

Real-time customer feedback

Customers send text messages

about their experience.

A picture paints a thousand words…

Customers may also choose to send you images that show you their experience.

2.  Put  the  user  first!    Design  around  the  needs  of  the  user  and  not  the  needs  of  the  company    Usability  beats  persuasion  every  :me  We  are  differen:a:ng  parity  products  STOP    making  parity  products  

3.  Keep  it  simples!  

Metro Bank Promise ü  Surprise  and  delight  every  customer  

ü  Deliver  unlimited  coverage  –  online  and  7  days  a  week  

ü  No  stupid  bank  rules  ü  Sa:sfac:on  guarantee  

Achieving customer centricity

4.  No  innova:on  un:l  everything  works  

Adding  more  bells  and  whistles  doesn’t  help!  

Achieving customer centricity 5.  Customer  centricity  must  be  part  of  your  company  values  

This  makes  a  differen:ated  customer  experience!  

       John  Lewis  Principles  

 •  The  Partnership’s  ul:mate  purpose  is  the  happiness  of  

all  its  members,  through  their  worthwhile  and  sa:sfying  employment  in  a  successful  business.  

•  The  Partnership  aims  to  deal  honestly  with  its  customers  and  secure  their  loyalty  and  trust  by  providing  outstanding  choice,  value  and  service.  

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Service culture for selling partners • Create  an  environment  in  which  people  can  be  themselves  

• Making  the  day  customer,  not  task,  focused  •  Intui:on  •  Taking  risks  •  Fun  for  customers  AND  Partners!    

Variety  is  NOT  the  spice  of  life    Consistency  creates  trust!  

Achieving customer centricity

6.  Be  Human  –  you  don’t  have  to  be  perfect!  

Warmth and support

“Train  people  well  enough  so  they  can  leave,  Treat  them  well  enough  so  they  don’t  want  to”  

           Richard  Branson  

For More Information

Professor Moira Clark Director of the Henley Centre for Customer Management Henley Business School moira.clark@henley.ac.uk Work: 01491 571454

Thank you