Voice of the customer - delivering customer centricity

Voice of the customerAndy Wilkins, Transform Associate

ICEM 2014, Barcelona

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Cross sector experience and expertise

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Agenda

1. CX is a strategic necessity but is our business logic blocking our progress?

2. 4 levels of context that drive holistic CEM

3. Digital drives new customer experience possibilities but omnichannel is the new table stakes

4. Customer centricity requires a completely new orientation

5. VOC needs to incorporate a broader range of inputs

6. Examples of leading edge CE approaches in retail and banking

7. Bringing it all together and setting the ambition

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The waves of commoditisation are crashing onto the shores of most industry sectors

1. Competition is becoming more intense

2. Sustainable competitive advantage is hard to maintain

3. Old marketing levers don’t work

4. Customers are more demanding and less loyal

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Enhancing relationships through customer experience is the new competitive advantage





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Despite significant investment in CX, loyalty levels remain poor

• Most CX activity is focused trying to fix problems and not on innovating differentiating experiences

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Industrial age business logic doesn’t work in a relationship economy 1. Industrial age logic –

transaction and product focused2. Relationship age logic – service

and relationship focused

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How real is the commitment to CX? Are you putting lipstick on the pig?

Customers The Company Shareholders

We thought you said you loved

us?

We thought you said you loved

us?

Yea, whatever. Business is business.

Yea, whatever. Business is business.

Who’s your Daddy?

Who’s your Daddy?

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Targets or customers?

IMAGE SOURCE: DILBERT.COM

If there is a choice between meeting a target or doing what’s right for the customer .. how is that decision made in your company?

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Value proposition or marketing?

IMAGE SOURCE: DILBERT.COM

If you are losing customers do you improve the value proposition or do you try to fix the problem with more marketing?

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Understanding which customer experiences to create isn’t easy





What?

Who? When?

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A transformative CX strategy needs to take in a wider perspective

1. Overall societal and political beliefs

2. Overall attitude to Company 3. Attitude to

Company products/ solutions

4. Attitude to service experience

Existing and

potential customers

To design a compelling CE requires data and analysis that goes much wider than service interactions…..

Customer’s Experience

lens

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Societal level trends shape a customer’s overall views and attitudes

Questioning of market behaviours

• Banking crisis & mis-selling scandals

• Morality of neo liberal free markets

• Greed, exploitation & rising inequalityFear of technology & the future

• Abuse of privacy & private data• Fears about use of science & technology

• Vulnerability & fear of the future

The empowered customer• Decline in deference to authority• Rise in individualism & life on my terms

• Rise in awareness & access to information

• Rise of activism & mobilisation of outrage


Existing and potential customers




Customers are increasingly vocal and critical of market related behaviours

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A company’s brand values and reputation are more important than everCustomers are increasingly judging companies on their wider actions within society…

Is this Company a good moral citizen?

• Sustainability and green credentials

• Sustainable sourcing• Involvement in local and national causes

What kind of Company is this?

• Fiduciary and tax avoidance strategies• Brand reputation and quality of its solutions

• Approach to new and existing customers• Approaches to market & competitors• Treatment and support for staff






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Maximising value from using a company’s product is key to a good CXThe quality of a company’s solutions depend on its ability to consistently meet customer needs

Experiential based design

• Design & aesthetics• Usage contexts & segmentation• Gaming & creation of new experiences

Innovation new solutions

• “Jobs to be done” based needs analysis

• Functional & emotional desired outcomes

• Customer co-creation of value• Ecosystem development






Incremental Product development

• Existing product usage data & profiling• Customer feedback & analysis• Feature enhancement – extend/ simplify

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The service CX is the true test of the ongoing customer relationship The service experience needs to be designed around the needs of customers





Existing & potential customers

Service experience design

• Existing service usage data and analysis• Customer journey requirements mapping• Segmentation and personalisation• Omnichannel mix and preferences• Co-creation + sense & respond testing

A coherent CE needs to exist across all touch points

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Context drives a growing set of device choices for digital access

SOURCE: GOOGLE

Today consumers own multiple devices and move seamlessly between them throughout the day

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Smartphones are the most common place for starting online activities

SOURCE: GOOGLE

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Retailers are moving from a single, to a multi, to an omnichannel CX

Promote Research Select Sell Service End of Life / Retain

Online

Store

Contact Centre

Kiosk

Mobile

IPTV

True customer centricity requires an 180 degree inversion to orchestrate resources & KPIs around the customer….

The customer solar system

•Traditional power structures are pointing in the opposite direction to the customer

•Frontline staff and channels are often left caught between the demands of customers and the performance metrics of the organisation

•Customers are often left in the cold outer regions of the solar system

Customers Shareholders

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A transformative CX strategy requires more than traditional VOC

Traditional measures like NPS and CSAT are not enough

•NPS provides a simple and useful metric to help compare relative performance

•On their own they have some value in helping to identify and sort out clear experience problems

•They provide little or no insight into the wider unmet needs of customers and offer little in guidance on how to deliver a differentiated CE

A more comprehensive VOC approach is required

•Understanding what drives value for the customer is key

•New measures are required that blend quant, qual, frontline feedback and insight

•Emerging big data streams will provide more comprehensive & predictive understanding of CE drivers

We are on the start of a bigger journey to better understand how customers think and decide!

What are some of the CX pioneers doing differently?

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Technology as an enabler, not a solution - Apple

“You‘ve got to start with the customer experience and work back toward the technology - not the other

way around.”

Steve Jobs

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A CX culture needs new ways of thinking

Zappos

•Delegating responsibility & ownership through principles not instructions

•Values understood, lived, owned and rewarded

•Recruitment for “cultural fit” not for skills

Barclays, Aviva & GSK

•Trust needs to be earned not demanded

•All sales targets have been removed & replaced with service metrics

•Recognition that staff need to be incentivised to work in customers’ best interests

•Remunerating in-line with the behaviours you seek!

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Burberry – in store digital experiences

• Augmented reality mirror offers extended product information and inspirational content

• Garments fitted with RFID tags – customers can flash them in front of digital screen to see content on fabric details

• Store hosts digital events including streaming of fashion shows - venue

• Store designed to be a physical manifestation of the website – not the other way around

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Spaaza and C&A Brazil – social network integrationC&A

•Integration with online (Facebook “Likes”) and in-store experience

•Hanger displays number of Facebook likes registered against a product online

Spaaza

•Scan QR code on item and given a price depending on your level of influence and brand advocacy on social networking sites

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Disney – magic mirror fantasies

• Virtual dressing room - mirrors deployed to enable children to see themselves as their favourite character

• Story enhancement – children take a product and wave it in front of the magical mirror and then they get to see a fairy tale related to it in the mirror

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Bringing it all together – using CX to drive innovation and transformation

1. New base line• Integrated end to end customer journeys

• Omni channel delivery• Customer centric orientation

2. Exploit experiential opportunities

• Enhanced in-store experiences

• Enhanced digital experiences

3. Cultivate relational opportunities

• Exploit social media engagement

• Anticipate life stage & contextual needs

• Extend membership experiences

4. Look for transformational opportunities

• Enable customers to realise their goals & dreams

Customer experience strategies need to extend beyond transactional excellence to cultivate emotional connection with customers as a competitive differentiator

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Thank you….

Andy Wilkins

+44 (0) 7713 [email protected]

Or: [email protected]