FRICTIONLESS CUSTOMER

1© BA Convention 2017

FRICTIONLESS

CUSTOMER

EXPERIENCE

A Capgemini perspective


How many of you have faced this?

2

1st video - 0:10-1:143rd video - 1:07-2:03


Pre-purchase interactions

HOW COMPANIES VIEW SERVICING THEIR

CUSTOMERS

Customer Experience

Purchase journey

After Sales

3


Friction in customer experience

4

What does it mean in a business context?

“Anything that negatively impacts the customer’s interaction with your products and services

can be termed as Friction”

What is friction?

Resistance

Against

Clash

Animosity


What causes Friction in Customer Service and/or Customer Experience

5

Uncooperative Service

Unreliable product / service

No value for time

Too much customer

information

No value for money

Source : Capgemini Consulting Analysis


Digital Shopaholic Occasional Online Rational OnlineSocial Digital Shoppers Techno-Shy

Occasional Online

Value Seekers

Rational Online

Digital Shopaholic

Social Digital Shoppers

Techno-Shy Value Seekers

Today’s customer is more tech savvy seamlessly transitioning from one channel to the other

6

Source : “Digital Shopper Relevancy”, Capgemini Consulting


Shop

User journey #1 – Only Physical Stores

7

Awareness Choosing Transaction Delivery After Sales

Sees a Poster on the billboard

Checks display in the shop

Tries out various options

Ask opinions to friends and family

Pays cash at the counter

Carries goods home

Takes goods to service center in case of problem


Mobile / Web

User journey #2 – Only Digital

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Sees an AD pushed by SEO /

Browses through mobile app/

website

Compare options / price

Read user reviews/ Conduct

own research/ Reach out to

social network

Pays online Goods delivered

home

Lodges complaint over the app / site/

tweets about it



Mobile / Web

User journey #3 : ROBO (Research Online – Buy Offline)

9

Sees an AD pushed by SEO

Compareoptions / price

Tries the product at the store


tweets about it

Store

Compares with other products

Pays via cash/card

Self delivery



Mobile / Web

User journey #4 – Click and Collect

10

Sees an ADpushed by SEO

Compareoptions / price

Tries the productat the store


tweets about it

Pays online

Collect goods at the

nearest store

Store



Mobile

This makes creating a frictionless customer service all the more difficult

11

At Home

Store



Friction can be present at any stage of a customer journey

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1st video - 0:10-1:143rd video - 1:07-2:03


Consumers are willing to spend more for receiving a better experience

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A majority of consumers, across sectors and geographies, are willing to increase spend for a better experience

Consumers willing to spend more for receiving a better experience - by sector

Consumers willing to spend more for receiving a better experience - by sector


73%

79%

81%

86%

87%

81%

Utilities

Retail Banking

Consumer…

Retail

Internet-…

Overall

Percentage of customers willing to spend more for…

61%

72%

75%

82%

82%

85%

95%

98%

81%

Germany

Netherlands

France

UK

US

Australia

China

India

Overall

Percentage of customers willing to spend more for…


Our analysis reveals positive relationship between DCX index and customers’ willingness to increase spending

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N=3372 consumers. Percentages may not total to 100 due to rounding.

Source: Capgemini Digital Transformation Institute analysis; Capgemini digital customer experience executive survey February-March 2017, and consumer survey March 2017

0.64

1.29

1.93

2.57

3.22

3.86

0

1

2

3

4

5

1 2 3 4 5 6

Extr

a am

ou

nt

that

cu

sto

me

rs

wo

uld

be

will

ing

to s

pe

nd

fo

r re

ceiv

ing

a b

ette

r ex

pe

rie

nce

(p

erc

en

tage

po

ints

)

Increase in DCX Index (points)

Relationship between increase in DCX Index and consumers' willingness to spend


DCX Index has a high correlation with the NPS of organisations

15

Correlation between Net Promoter Score (NPS®) and DCX Index

N=122 companies. Each dot represents the DCX Index and NPS® of a company

Source: Capgemini Digital Transformation Institute analysis;

Net

Pro

mo

ter

Sco

re (

NP

S®)

DCX Index

Correlation Coefficient =


Companies that closely tie business operations with customer experience enjoy greater benefits

16

Organisations with business operations linked with NPS observe better NPS performance

N=125 companies and their 3372 consumers.


Consumers more favorably rank organisationswith business operations linked with NPS

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2

7

0

6

Advantage in NPS over companieswith no linkage between business

operations and NPS

Average increase in NPS in the last 3years

Companies with business operations closely linked with NPS

Companies with business operations loosely linked with NPS

Companies with business operations not linked with NPS

55%49%46% 41%46% 42%

Consumers who believe that thecompany provides better experience

than most of its competitors

Consumers who believe that thecompany listens to their feedback and

acts on it

Companies with business operations closely linked with NPS

Companies with business operations loosely linked with NPS

Companies with business operations not linked with NPS


However, a major gap exists between consumers’ and companies’ perception of customer-centricity

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While 75% of organisations believe themselves to be customer-centric, only 30% of consumers believe this to be the case


Low

Low

High

High

Co

mp

any

Per

cep

tio

n o

f C

ust

om

er-C

entr

icit

y

Consumer Perception of customer centricity

19%

11%

56%

15%


The perception gap on customer centricity spans across sectors

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Consumer and company perception of customer centricity – By Industry

N=125 companies and their 3372 consumers. Source: Capgemini Digital Transformation Institute analysis; Capgemini digital customer experience executive survey February-March 2017, and consumer survey March 2017

7%14%

32%42%

56%

30%

78% 81% 79%67% 68% 74%

Utility ConsumerProducts

Retail Retail Banking Internet BasedServices

Overall

Percentage of companies whose consumers believe they…Percentage of companies who perceive themselves to be…


To identify customer pain points, organisationsmust adopt a more customer centric approach

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“You have to manage for results, do the right thing rightand make serving the customer the centre of everything”

Peter F Drucker


The key to frictionless customer delight

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Who is a DCX leader?

Redefines Digital Customer Experience▪ Focuses on real-time and mobile-first interactions▪ Changes relationships form transactional to

personalised▪ Emphasizes consumer community and social media-

based engagement

Builds a Digital DNA▪ Creates a digital culture▪ Builds a digital organisation:

Community customer service, digital sales, digital marketing, digital IT & network operations

▪ Business and technology groups seamlessly collaborate

Simplifies Operating Model▪ Simplifies value proposition▪ Simplifies customer

relationship▪ Simplifies the experience and

the processes

Source: Capgemini Consulting Analysis


Creating a Digital Customer Experience

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Creating a digital customer experience


Focus on impact rather than size of digital investment

Using big data analytics to enhance understanding of customer behavior,

preferences and motivations

Amplifying the physical experience with digital

technologies

Forensic understanding of customer interactions and pain points across all touch points

An outside-in approach

Smart investments in digital channels

Data driven insights

Seamless meshing of

physical and digital

experiences


Business goals tied to customer “moments-of-truth” at key points leads to a differentiated customer experience

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Marketing & selling

Service & Support

Retain the customer

6

Reward customer loyalty

7

Fulfill the order`

5

Promote customer advocacy

8

Influence the customer

1

Sell to the customer

4

Inform the customer

2

Attract the customer

3

Company Business Goals Customer Moments of Truth

▪ The key to a differentiated customer experience is about mapping and connecting the goals of the consumer and the brand at key points in the relationship lifecycle

▪ Alignment of the customers’ moment of truth to the business goals leads to customers’ transition from awareness to advocacy

Source: Capgemini Digital Transformation Institute analysis

Customer considers a purchase Customer makes a purchase Customer recommends the product Product or service requires

maintenance

Customer builds awareness of market offerings

Customer conducts researchCustomer experiences product or

serviceCustomer receives product or

service


Aligning internal and external connections helps firms lay a strong foundation for an all-round frictionless customer experience

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01CustomersWhat experience do the customers want?What do they value and they care about?

02 BrandsWhat experiences do your brands enable for your consumers?

03TouchpointsHow do you manage interactions at customer touchpoints?

04 DataHow does the data from the touchpoints flow through your organisation?

05 Technology PlatformsHow does customer data connect to the technology that enables that flow?

06 ProcessesReimagined business processes that underpin and maximise the data and technology platforms

07OrganisationHow is your organisation structured to manage and meet the expectations, desires and needs of your customers?

External Connections

Internal Connections


However, there are key challenges that can derail the formulation and execution of customer experience strategy

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N = 150 companies. Percentages indicate share of organisations that rank an option as one of its top three challenges. Percentages do not total to 100 due to multiple choice selection. Source: Capgemini Digital Transformation Institute analysis; Capgemini digital customer experience executive survey February-March 2017, and consumer survey March 2017

More than half of executives cite rapidly evolving technical landscape and consumers’ tech expectations as major technical

challenges

Lack of budgets and lack of co-ordination emerge as the two biggest organisational and people related challenges

41%36% 36% 35% 34%

Lack of budgetsdedicated for

digital customerexperienceinitiatives

Lack of co-ordination

between IT andbusiness

Lack of trainingfor an omni-

channel customerfacing service

Lack ofownership of

customerexperience

responsibility

Lack of effectivegovernance

models for digitalinitiatives

Top organisational challenges in formulating and executing customer experience strategy

57% 56% 54%

38%32%

Inability to keeppace with

customers' techexpectations

Rapidly evolvingtechnological

landscape

Inability tointegrate newtechnologies

Disparate digitalplatforms

A sub-standarddigital UI/UX

Top technological challenges in formulating and executing customer experience strategy


Case of DominosYear 2008

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Sales Stock Prices Brand Image

Down Down Down


How Dominos identified friction and turned its strategy around

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Domino’s customer experience journey started in 2009…

84% 9900% 128%

Growth in customer interaction

Rise in stock price in 9 years

Digital Orders

Successful social media campaign

Omni-channel presence

Seamless experience

Focus on consumer convenience

Source : https://www.youtube.com/watch?v=AH5R56jILag&t=6s, Capgemini Consulting Analysis

https://www.youtube.com/watch?v=AH5R56jILag&t=6s


What does the future look like?

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1st video - 0:10-1:143rd video - 1:07-2:03


Thank You

Documents

FRICTIONLESS CUSTOMER