The Leading Edges of Customer Experience Management · 4/16/2014 · The Leading Edges of Customer Experience Management ... Which of the following best describes the MAIN industry

The Leading Edges of Customer Experience Management

Angelia Herrin – Editor of Special Projects and Research,

Harvard Business Review

Jason Miller – Customer Intelligence Solutions Architect, SAS

Preliminary Research Findings

Respondents’ Profiles

2%

2%

3%

3%

5%

5%

6%

6%

7%

8%

15%

17%

19%

Prof/bus services

Construction

Transportation/ Logistics

Other

Leisure/Media

Healthcare

Retail

Pharma/Med/Life Sciences

Energy/Utilities

Consulting services

Mftg

IT/Telecoms

Financial

0% 5% 10% 15% 20%

Which of the following best describes the MAIN industry in which you personally work? All n=403


How many individuals does your organization employ? Base: All answering n=308

What were the approximate gross annual sales or revenues for your entire company in 2012? Base: all answering n= 403

19%

11%

22%

40%

8%

$150m - $499m

$500m - $999m

$1bn - $4.99bn

$5bn or more

Not sure

Gross Annual SalesFY 2012

Average revenue = $3.9bn

11% 5%

1%

22%

10%

51%

Less than 500

500-749

750-999

1,000-4,999

5,000-9,999

10,000 or more

Company Size (employees)

Average no. staff = 8,602


46%

47%

7% Very involved

Somewhat involved

Not at all involved

Involvement in organization’s customer experience (CE) practices

How involved are you in your organization’s customer experience practices? Base: All n=403

Challenge for All Firms

10%

8%

4%

8%

49%

37%

38%

41%

24%

38%

34%

32%

10%

11%

19%

13%

8%

6%

4%

6%

Forward looking firms

Neutral firms

Non forward lookingfirms

All

Not difficult at all Somewhat difficult Very difficult

How difficult is it to tie customer experience investments to business outcomes? Base: All n=403

Tying CE investments to business outcomes

• About half say it is very or extremely challenging to tie CE investments to business outcomes.

• Forward looking firms are not immune; a third are in the same position.

How difficult is it to tie customer experience investments to business outcomes? Base: All n=403

CE Management is Challenging for All

8%

7%

3%

3%

3%

4%

1%

2%

4%

5%

26%

20%

18%

17%

16%

13%

17%

11%

11%

10%

33%

33%

37%

36%

36%

37%

32%

36%

33%

33%

33%

40%

42%

44%

45%

46%

50%

51%

51%

52%

Reducing customer churn

Multi-channel management

Identifying cross & upsell…

Understanding customer lifetime…

Integrating voice of the customer

Connecting customer experience…

Cultivating a customer focused…

Building new customer experiences

Achieving a 'single view' of customer

Maximizing customer experience…

NA/Don't know Not a challenge (1-4) Moderate challenge (5-7) Significant challenge (8-10)

Please rate the degree to which the following customer experience issues present challenges to your company on a scale of 1-10. Base: All n=403

• 66% find customer churn a challenge and this is the CE area of least concern.

• Forward looking firms are just as likely to face these challenges as their peers.

Extent of Customer Data Challenges

8%

7%

10%

8%

9%

8%

13%

8%

8%

8%

22%

21%

16%

17%

15%

18%

18%

19%

14%

15%

42%

42%

45%

43%

43%

39%

33%

37%

38%

33%

28%

30%

30%

32%

33%

34%

36%

36%

40%

43%

Reliability/believability

Tracking customer trends

Solutions costs

Skills availability

How actionable data is

Timeliness

Big data

Data quality

Forecasting customer behaviour/purchasing

Data integration/lack of standardization

NA/Don't know Not at all challenging (1-4) Moderately challenging (5-7) Extremely challenging (8-10)

How challenging are the following customer data challenges in your organization? All n=403

CE Management

17%

47%

36%Not forward looking(score 1-4)

Neutral (score 5-7)

Forward looking(score 8-10)

Forward looking firms are:

• Geographically evenly spread

• More likely to be in IT/Telecoms

sector (24%, index 141)

Non forward looking firm are more

likely to be:

• Firms of fewer than 500 staff

(20%, index 182)

• In the Manufacturing sector

(20%, index 133)

How forward-looking would you say your organization is in its approach to customer experience management? Base: All n=403

Corporate Performance

47% 46% 45% 44%

37%

60%

66%

60%

54% 54%

45%42%

44%42%

34%

35%

27% 28% 29%

20%

Profitability Quality Growth/revenue generation Market share Customer retention rate

All Forward looking Neutral Not forward looking

Please indicate how successful your company is in the following areas of corporate performance. Base: All n=403

Index 128

Index 132

Index 133

Index 143

Index 146

Top Box Scores (8-10)

CE and Competitive Advantage

7%

12%

23%

28%

25%

6%

3%

17%

31%

40%

5%

18%

23%

30%

20%13%

15%

31%

21%

14%

Strongly disagree Somewhatdisagree

Neither agree nordisagree

Somewhat agree Strongly agree

All Forward looking Neutral Not forward lookingIndex 160

• 71% of forward looking organizations agree that CE

provides a competitive advantage.

• Those who are not forward looking are much less

likely to recognize the competitive advantages of

CE; just one third agree that there is an advantage.

To what extent would you agree that your organization’s customer experience management provides a competitive advantage? All n=403

Use of CE Practices

19%

22%

27%

34%

36%

36%

39%

40%

40%

43%

44%

45%

45%

46%

48%

62%

69%

75%

None of these analytics used

Screen job candidates for customer centric values

Connect coprorate rewards to CE metrics

Map customer interactions within firm

Analyze all customer insights across organization

Share CE metrics with all staff

Create consistent, company wide CE standards

Compare CE quality across segments

Regularly review CE projects/metrics

Factor CE impacts in business decisions

Develop CE strategy to align with corporate…

Get feedback from customer data

Get staff feedback on CE

Train new and existing staff in CE skills

Collect CE operational metrics

Communicate CE's importance to all stakeholders

Respond to individual customers' feedback

Get feedback from customers

Feedback

Analysis

Implementation

• There is plenty of scope for

increased use of CE

practices, particularly in

the area of analysis

Which of the following practices does your organization routinely employ?

All responding Feedback section n=402, Analysis section n=399, Implementation section n=400

Forward-Looking Firms Use Analysis More

106

111

113

118

121

122

122

127

132

133

133

133

138

142

144

145

156

Respond to individual customers' feedback

Communicate CE's importance to all stakeholders

Get customer feedback

Get staff feedback on CE

Factor CE impacts in business decisions

Train new and existing staff in CE skills

Get feedback from customer data

Screen job candidates for customer centric values

Map customer interactions within firm

Regularly review CE projects/metrics

Connect corporate rewards to CE metrics

Collect CE operational metrics

Compare CE quality across segments

Share CE metrics with all staff

Create consistent, commpany wide CE standards

Develop CE strategy to align with corporate strategy

Analyze all customer insights across organization

Indices: Forward looking organizations’

answers indexed against all answers

for each CE practice. Over 120

indicates more likely to use a practice,

less than 80 indicates less likely to do

so.

Feedback

Analysis

Implementation

Which of the following practices does your organization routinely employ? Base: All forward looking organizations n=143

Indices

Rating of CE Practice: Feedback

38%

46%52%

59% 60%

17% 16%

35%39%

47%

10% 8%

22%16%

27%

Gather CE input fromstaff

Collect unsolicitedexperience data

Collect operationalmetrics

Solicit experiencefeedback from

customers

Respond to individualcustomers based on

feedback

Forward looking Neutral Not forward looking

Please rate the effectiveness of the practices your organization currently employs to manage the customer experience on a scale from 1 to 10,

with 1 meaning not at all effective and 10 meaning extremely effective. All responding n=402

Even forward looking firms have

plenty of room for improvement in

their CE practice

All respondents saying “extremely effective” (top Box Scores of 8-10)Base: all respondents who routinely employ the relevant CE practice.

Rating of CE Practice: Analysis

48%51% 49%

55%

34%

22%27%

35%

17%12%

0%

20%

Compare differences inexperience qualityamong segments

Analyze crossorganizational

customer insights

Map customerinteractions within

organization

Create organizationwide CE standards





Forward looking firms are way

ahead in their use of analytics,

but this is the area where there is

most scope for improvement

Rating of CE Practice: Implementation


60%63% 63% 65% 67% 68%

71% 73%

36%30%

26%

40% 41%

29%

42% 40%

22% 21%

29%26%

9%

28% 29%33%

Factor CEimpacts indecisions

Regular CEproject/metrics

reviews

Screenemployment

candidates forcustomercentrism

Develop CEstrategy that

aligns with firm'sstrategy

Provide staff CEtraining

Share CEmetrics with all

staff

Connectrewards to CE

metrics

CommunicateCE importance

to all




CE: Forward-Looking Firms are More Effective

132

139

143

144

148

154

155

161

194

Average revenue per customer

Customer retention

Use of Net Promoter Score

Customer satisfaction

Customer loyalty

Brand value management

Up-sell/Cross-sell rate

Customer engagement

Customer Effort Score

Indices

Forward looking firms are waking up to and

becoming increasingly proficient in the

newer CE tools like Customer Effort Score

Please rate your organization’s effectiveness in the following aspects of customer experience. Base: n=403

Importance of Multi Channel Management

20%

27%

38%

15%9%

22%

53%

15%

16%

36% 37%

11%

39%

21% 21%19%

Not at all important (1-4) Moderately important (5-7) Extremely important (8-10) Don't know


How important is multichannel management to your organization? All n=403

Index 139

Index 195

Forward Looking Firms Use More Channels

20%

34%

25%

21%

21%

25%

21%

33%

12%

45%

28%

15%

28%

33%

28%

11%

2 channels or fewer 3-4 channels 5-6 channels 7-10 channels


Index 157

Index 140

Which of the following means of customer engagement does your organization use today? Base All n=403

Extent of Customer Data Challenges

8%

7%

10%

8%

9%

8%

13%

8%

8%

8%

22%

21%

16%

17%

15%

18%

18%

19%

14%

15%

42%

42%

45%

43%

43%

39%

33%

37%

38%

33%

28%

30%

30%

32%

33%

34%

36%

36%

40%

43%

Reliability/believability

Tracking customer trends

Solutions costs

Skills availability

How actionable data is

Timeliness

Big data

Data quality

Forecasting customer behaviour/purchasing

Data integration/lack of standardization

NA/Don't know Not at all challenging (1-4) Moderately challenging (5-7) Extremely challenging (8-10)

How challenging are the following customer data challenges in your organization? All n=403

Success in Overcoming Data Challenges

29%

51%

13%

7%

7%

58%

29%

6%

29%

60%

5% 6%

58%

32%

2%

8%

Not at all successful (1-4) Moderately successful (5-7) Extremely successful (8-10) Don't know


Index 223

Index 200

Overall, how successful do you think your organization is in overcoming these data challenges? All n=403

Even ‘best in class’ have plenty of room for

improvement in overcoming data challenges.

Less than 1/3 say they are extremely successful

in this aspect

Data Sources Used to Enhance CE

16%

24%

24%

25%

33%

33%

33%

37%

52%

57%

70%

71%

Online chat

Online review data

Other 3rd party data

Partner data

Mobile interactions

Location-based services

Contact center 'phone transcripts

Transaction data

Social media

Sales/retail staff feedback

Surveys

Website

Over half of companies are drawing on

social media data sources, making it a clear

top four source.

But they do not yet know how to manage,

analyze or be highly effective in this

channel.

Which data sources does your organization draw upon to create better customer experiences? All n=403

Forward Looking Firms’ Preferred CE Data Sources

92

98

100

100

100

103

110

112

112

119

121

125

125

Location based services

Feedback from sales/retail staff

Transaction data

Focus groups

Other third-party data

Surveys

Website

Contact center phone transcripts

Partner data

Social media

Mobile interactions

Online review data

Online chat

Which data sources does your organization draw upon to create better customer experiences? Base: All n=403

Forward Looking Firms See Promise inEmerging Technologies

15%

16%

17%

23%

33%

43%

44%

53%

26%

22%

26%

35%

41%

56%

54%

61%

8%

12%

13%

14%

30%

31%

37%

49%

Speech analytics

Wearable computing

Augmented reality

Text analytics

Location basedapplications

Social media analytics

Real-time decisionmaking

CE/online behaviouranalytics

Not forward looking

Forward looking

All

In your opinion, how promising are the following emerging technologies to improving your organization’s ability to manage the customer experience?

Base All n=403

Thank you!

The Leading Edges of Customer Experience Management

Full Report Publication date: April 16, 2014

Angelia Herrin – Editor of Special Projects and Research, Harvard Business Review

Jason Miller – Customer Intelligence Solutions Architect, SAS

Documents

The Leading Edges of Customer Experience Management · 4/16/2014 · The Leading Edges of Customer Experience Management ... Which of the following best describes the MAIN industry