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www.ovum.com © Copyright Ovum. All rights reserved. Ovum is part of Informa Group. Developing a World Class Omnichannel Engagement Capability Jeremy Cox, Principal Analyst Customer Engagement Practice [email protected] @JeremyCoxCAE

Developing a world class omnichannel customer experience

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Page 1: Developing a world class omnichannel customer experience

www.ovum.com

© Copyright Ovum. All rights reserved. Ovum is part of Informa Group.

Developing a World Class Omnichannel Engagement Capability

Jeremy Cox, Principal Analyst Customer Engagement Practice

[email protected] @JeremyCoxCAE

Page 2: Developing a world class omnichannel customer experience

2© Copyright Ovum. All rights reserved. Ovum is part of Informa Group.

agenda

How did we get to

omnichannel - what is it and

why now?

The omnichannel

landscape

A maturity view – where are you now?

Which way is best?

Page 3: Developing a world class omnichannel customer experience

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First there was CRM which promised much….

What was promised What we got

Page 4: Developing a world class omnichannel customer experience

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Then tired of CRM we got CEM which promised to fulfil the promise of CRM

Channel bolted on

Page 5: Developing a world class omnichannel customer experience

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Now we have omnichannel which promises more….

Page 6: Developing a world class omnichannel customer experience

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Now we have omnichannel which promises more….

• Engage with customers across any channel of interaction, physical and digital

• Deliver relevant experience to match behaviours, needs and increasing expectations

• Within the context of the individual customer’s journey

• Seamless, orchestrated and personalised

Simplified example of customer journey

Page 7: Developing a world class omnichannel customer experience

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As an aspiration it has been around for a long time but hidden from view

Source: Adrian Payne and Pennie Frow 2005

Page 8: Developing a world class omnichannel customer experience

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And arguably goes back even further……

Source: Francis Buttle: Relationship Marketing Theory & Practice 1996

Page 9: Developing a world class omnichannel customer experience

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So what’s really changed?

Page 10: Developing a world class omnichannel customer experience

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Global competition + increasingly powerful, well informed customers have triggered the omnichannel race

Competitor disruption

Changing customer behaviours

Channel disruption

46% 48% 50% 52% 54% 56% 58% 60% 62%

PwC CEO Survey 2014

= empowered customer

Page 11: Developing a world class omnichannel customer experience

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Ovum research indicates enterprises have recognised this customer imperative

1

2

3

4

5

Customer Satisfaction

Align IT to Goals

Security/compliance

Supplier relationships

Major transformation

Page 12: Developing a world class omnichannel customer experience

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Channel and interaction choices have proliferated

Page 13: Developing a world class omnichannel customer experience

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And there is an innovation arms race in engagement technologies which creates dilemmas

• Best of Breed or Suite?

• When?

• How do we prioritise?

Page 14: Developing a world class omnichannel customer experience

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How did we get to

omnichannel - what is it and

why now?

The omnichannel landscape

A maturity view – where are you now?

Which way is best?

Page 15: Developing a world class omnichannel customer experience

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Omnichannel is more than a front office concern

“To succeed in omnichannel you must have a really good front end, but unless you have re-engineered the back end and are ready to cope with peaks in traffic you’ll have real issues. There’s no point doing one without the other.”

Paul Coby CIO John Lewis Partnership

Page 16: Developing a world class omnichannel customer experience

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The enterprise must operate as a coherent value creation and delivery system

Customer-adaptive enterprise intelligence layer – the enterprise nervous system

Page 17: Developing a world class omnichannel customer experience

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How did we get to

omnichannel - what is it and

why now?

The omnichannel

landscape

A maturity view – where are you now?

Which way is best?

Start by acknowledging your current state

Page 18: Developing a world class omnichannel customer experience

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Understand your current state and aim for the next level of maturity

Customer-Adaptive

CEO, board level sponsorship, enterprise-wide commitment Focused on:

• New business models

• Continuous innovation

• Anticipating the future

• Disruptive force

Cus

tom

er E

xper

ienc

e

Coherence as an organisation

Omnichannel CX

CEO, board level sponsorship, enterprise-wide commitment

• Customer journey’s mapped

• Integrated channels

• Context 360

MultichannelBasic integration between systems but siloed mentality and product/cost driven

Departmental

Departmental silos, Fragmented CX

Class leading

PoorAbsent Pervasive

Page 19: Developing a world class omnichannel customer experience

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A self-assessment helped global logistics company assess its customer orientation & priorities

Visionary Leadership

Vision Values & Brand

Customer CentricityEmployee Engagement

Tools & Processes

0.0

5.0

Assessment by leadership team of Global Logistics company

Where we are now Where we want to be

Drill down Next phase

Phase 1 April 2015

Page 20: Developing a world class omnichannel customer experience

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How did we get to

omnichannel - what is it and

why now?

The omnichannel

landscape

A maturity view – where are you now?

Which way is best?

Page 21: Developing a world class omnichannel customer experience

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Design from the customer back – the antidote to siloes

VoC

1. Map

2. Design

3. Validate

4. Refine

5. Sense

6. Respond

7. Adapt

Page 22: Developing a world class omnichannel customer experience

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2

•Determine omnichannel vision•Map to customer journeys and focus on retention first•Create a customer-centric orientation – culture, structure, KPIs•Implement new processes and supporting technologies

Multichannel

3

•Focus on IoT and business model innovation•Develop innovation competence•Develop roadmap to customer-adaptive

Omnichannel CX

4

•Extend IoT•Increase pace of innovation and new business models•Create new and valued omnichannel experiences

Customer-Adaptive

1

•Determine long term vision•Integrate enterprise value chain•Build the foundation •Focus on retention

Departmental

Evolve your omnichannel capabilities

Page 23: Developing a world class omnichannel customer experience

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Further reading

How to Develop an Omnichannel Customer Engagement Capability -Landscape and strategies for B2B, B2C, and B2B2C

The Customer-Adaptive Imperative - Creating purpose for digital transformation

Framework: Innovation Management for Continued Customer Relevance and Growth

Framework: Customer-Adaptive Enterprise Maturity Model

Page 24: Developing a world class omnichannel customer experience

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For more information on joining the research program which will be open in mid June 2015 for mid-sized and large enterprises, please contact me:

Jeremy Cox – [email protected]

Or follow on twitter @jeremycoxcae