How CAVII™ powered by IBM WATSON™ is driving a Retailer’s Customer Experience Transformation?

Innovations Insights Exchange Conference,

Amsterdam, Feb 20-21 2017

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The world according to Gartner…

In 2014, 89% of marketing leaders expected to compete primarily on the basis of CX by 2016, compared with 36% four years earlier, but …

81% of organizations have seen their CX initiatives fail in the last three years.

Source: Gartner

SO, WHAT IS CUSTOMER EXPERIENCE (CX)?

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What Is Customer Experience (CX)?

• Customer Experience Management is the ability to track manage and optimize a customer’s journey across the following stages of a product or service transaction

Look Into the Shopper’s Mind …

For the Desired Future Outcomes

AWARENESS

ADVOCACY FAMILIARITY

LOYALTY CONSIDERATION

TRUST PURCHASE INTENT

SHARE

RATE

PURCHASE

USE

LIKE

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Customer Experience Analytics for a National RetailerOBJECTIVES

• CLIENT: A national service provider with 2000 stores

• SITUATION: Client was experiencing decline in per store revenue year over year; They had identified customer retention as a major contributing issue

• Many technology vendors were already serving them but they specifically wanted behavioral science expertise as well

• OSG won: OSG was engaged to develop and help identify key drivers of customer satisfaction, implement a program across all their stores and to measure KPIs.

• Key objectives were to:

q Identify & understand key drivers of customer satisfaction?

q Quantify the relative importance and how would they drive customer loyalty?

q Design & implement a monitoring & tracking system to effectively manage performance

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THE APPROACH

CX PROGRAM DEFINITION•Key elements include drivers of customer satisfaction and loyalty

•Customer segmentation and KPIs

•Develop hypothesis & design specs for tracking system and data dashboards, real-time alerts, regular reports, etc.

PILOT DEPLOYMENT•Pilot in 240 stores from 15 franchises

•Tracking system and data dashboard implementation with email alerts and weekly/monthly reports on top KPIs

•Quantify the importance of drivers using ASEMAP™ and IBM WATSON™ based Machine Learning Algorithms

ACTIVATION•Finalize recommendations from pilot program

•Work with customer team to implement training programs to improve on customer satisfaction and loyalty

•Refine survey & KPI implementation

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CAVII-R™ started with Retention Analytics

Why is willingness to return lower for brakes, transmission, tires ?

What is a 1% improvement in CX worth to the retailer?

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CAVII-R™ Offers At-A-Glance Drill down Capabilities

Drill down Franchisee Hierarchy

Analytical Widgets: Insights at a glance that drive actions• Do we need training?• Are we overselling?• Is quality flagging?• Predictive indicators that fall before revenues trend lower?

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OSG’s ASEMAP™ Engine at Work

Unpacking Customer Experience using the world’s best behavioral Engine- ASEMAP™

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IBM Watson NLC in action…Retention AnalyticsTraining IBM WATSON and putting Machine

Learning Expertise to work

IBM WATSON Natural Language Classifier uses confidence score to show its machine learning accuracy

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Analyzing real-time business vitality

Analytical Widgets:How are my revenue trends at

each level?

Analytical Widgets:How is my customer experience trending?

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EARLY INSIGHTS

•Top considerations for choice of service are • Quality• Trust• Convenient location• Value for money• Fast service

•Ratings were similar across gender, but disparity across age groups was significant

•Millennials ranked them the lowest• Baby Boomers the highest• Issues around trust and quality of service driving loyalty and returns

• IBM WATSON™ Training Experience•Machine-learning algorithm accuracy >95% consistently...trained NLC algorithm on 40 concepts•Happy customers use few words•The unhappy ones can be verbose giving us many learning opportunities

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Summary of what CAVII™ does for Retailer?1. Real time shopper experience measurement

2. Starts with understanding each shopper expectation

3. Individualized and personalized interventions for each shopper

4. Ability to capture and analyze verbal and text inputs from shoppers

5. Reports and Alerts provided at the store, franchise, region or national levels

6. Rapid interventions by store managers allowing for improved training and efficient store operations

7. Guaranteed outcomes for clients of OSG