Cx and the cmo conf pres

© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.1

What is the role of the CMO in delivering CX?

Presenter: Gerry Brown, Senior Analyst, Connected Customer & Marketing Technology, Ovum

[email protected]

October 8, 2013

mailto:[email protected]

© Copyright Ovum. All rights reserved. Ovum is an Informa business.2

Key agenda items

1.• CX, business models and

responsibilities

2.• CMO strategies and action

items

3.• Measurement and Critical

Success Factors


A customer’s view of CX . . .


The ‘Whole Product’ Concept


CX: complete the customer journey AND new innovation

+


A wider definition of CX

“The orchestration and integration of all touch-points and activities performed

for the customer”What CEM advocates believe:

Customer acquisition is expensive, and profitability comes from longer term Life Time Value (LTV)

Delight the customer with product and service experiences beyond their expectations and be rewarded with customer retention, loyalty and advocacy

A satisfied customer is the most profitable customer. High value customer churn must be avoided at all costs


Dixon’s ‘Customer Plan’


A traditional sequential business model

Marketing Sales Service

TargetingCampaigns

Lead Generation

ProposalsClosing

Contracts

InstallMaintenance & Repair

Guarantees


A modern ‘fluid’ business modelB

randMarketin

g

ServiceSales

Content & Communications

CRM & Compliance Care & Continuity


Q. So who should ultimately be responsible for CX?

The CMO?

The CSO / CRO?Director of Service?

General Manager / COO?


A. They are all stakeholders – led by the CEO

. . . but the CMO has a special leadership role as the brand custodian and aims “to build the brand through positive customer experiences”


‘Living the Brand’ CX challenges for the CMO

• 69% of firms: don’t empower employees to build and protect the brand

• 75%: employees don’t act in ways that embody the brand promise

• 78%: employees don’t deliver the required branded customer experience

• 66%: no customer measures of success

• 81%: no strong belief in link of brand experience to business value

CIM 2012 Branded Customer Experience Benchmark


What does the CMOs universe look like?

Campaigns

Staff & Agencies

ChannelsSocial

Web Site

RO

I

Sales enablement


Who does CX well?


So what do CX Champions do differently?

1. Recruit and train to deliver the brand promise

2. Differentiate through service and personalisation

3. Promote from within and reward staff well

4. Innovate as a result of listening

5. Under-promise and over-deliver

6. Data-driven – measure everything



ING on Customer Intelligence

Kim Verhaaf, Director, Customer Intelligence, ING

“Our goal is to detect life events of our customers and influence their buying

cycle with relevant products and services. First we have to build a relationship of trust, which enables us to offer better

service to that customer”


First impressions – seconds count

5 seconds: 30% leave website37% won't return

27% go to competitor

10 seconds:Communicate your value

proposition or lose customer

30 seconds:More likely to stay 2+ minutes


Be clear on what you want to measure – and how?

3. Advocate

2. Loyalty4. Retention

1. Like


Most important attributes for delivering CX

Foviance (2012)


The take-aways

Remember CX involves the customer journey AND a ‘whole product’ experience

CX requires a more flexible and fluid business model

The CEO is responsible for CX – but the CMO is a key stakeholder

Retailers, FMCG and Service companies have to consider CX

Pro-activity and speed of response are key

Measurement has challenges for the ‘soft science’ of CX

Your CEO and the Board need to be ‘sold’ . . .


Q & A?

Business

Cx and the cmo conf pres