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THE NEW WHO AND THE MYTH OF CUSTOMER EMPOWERMENT NAUMI HAQUE & JEFF DECHAMBEAU

The New Who and the Myth of Customer Empowerment

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In order to engi­neer the cus­tomer expe­ri­ences of tomor­row, the firm needs to think of their cus­tomer from a rich data point of view, one that takes into account each cus­tomers unique iden­tity, as expressed through their behav­iors, their rela­tion­ships, and their emotions.

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Page 1: The New Who and the Myth of Customer Empowerment

THE NEW WHO AND THE MYTH OF CUSTOMER EMPOWERMENT

NAUMI HAQUE & JEFF DECHAMBEAU

Page 2: The New Who and the Myth of Customer Empowerment

2 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Armed with information from the Web and

mobilized through social channels,

customers are sweeping aside the

‘Mad Men’ [...] Instead of customers

serving the companies, the companies are

now being forced to serve them.

- Senior Contributing Editor TMCnet

THE CUSTOMER IS IN CONTROL

Page 3: The New Who and the Myth of Customer Empowerment

DATA RICH CON

SU

MER

LI

FESTY

LE

3 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 4: The New Who and the Myth of Customer Empowerment

4 | © 2010 MOXIE Corp. All Rights Reserved. WWDDD?

Page 5: The New Who and the Myth of Customer Empowerment

5 | © 2010 MOXIE Corp. All Rights Reserved.

DANCE PUPPETS

DANCE

Page 6: The New Who and the Myth of Customer Empowerment

6 | © 2010 MOXIE Corp. All Rights Reserved.

ADD VALUE

Page 7: The New Who and the Myth of Customer Empowerment

THE POOR ANALOG SELF

7 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 8: The New Who and the Myth of Customer Empowerment

8 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

CRUDE SEGMENTATION

Source: Eric Fischer, Flickr; based on U.S. Census Data, 2000

Page 9: The New Who and the Myth of Customer Empowerment

12% 16% 27% 21% 13% 12% Quality of customer data

0% 20% 40% 60% 80% 100%

Excellent Good Average Below Average Very Poor Not Applicable

THE POVERTY OF WHO

9 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Naumi Haque, Survey Results: Leading in the Age of Unbounded Data, Moxie Insight, 2010.

Page 10: The New Who and the Myth of Customer Empowerment

WHO THEY ARE (IDENTIFIERS)

WHAT THEY DO (BEHAVIORS)

WHO THEY KNOW (RELATIONSHIPS)

WHAT THEY THINK / FEEL (EMOTIONS)

THE NEW WHO: THE RICH DIGITAL SELF

10 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Jeff DeChambeau, The New Who and the Myth of Customer Empowerment,

Moxie Insight, 2011.

Page 11: The New Who and the Myth of Customer Empowerment

“WHO” IS MY CUSTOMER?

11 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 12: The New Who and the Myth of Customer Empowerment

WHAT THEY DO (BEHAVIORS)

WHO THEY KNOW (RELATIONSHIPS)

WHAT THEY THINK / FEEL (EMOTIONS)

EXAMPLES OF NEW DATA TYPES

12 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 13: The New Who and the Myth of Customer Empowerment

What they do BEHAVIORS: AMAZON & GOOGLE

13 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 14: The New Who and the Myth of Customer Empowerment

Who they know RELATIONSHIPS: FACEBOOK & TWITTER

14 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

“Facebook has the potential to be worth more than Google” - Paul Buchheit, creator of Gmail

Page 15: The New Who and the Myth of Customer Empowerment

EMOTIONS: AI & KINECT

15 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 16: The New Who and the Myth of Customer Empowerment

IDENTITY

DATA

16 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

TH

E FOCAL POINT FO

R MOBILITY

Page 17: The New Who and the Myth of Customer Empowerment

IDENTITY GOES MOBILE

17 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 18: The New Who and the Myth of Customer Empowerment

18 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

IMPLICIT SOCIAL NETWORKS

Source: Jeff DeChambeau, The New Who and the Myth of Customer Empowerment, Moxie Insight, 2011.

Page 19: The New Who and the Myth of Customer Empowerment

Jeff’s social gaming slide LIFE IMITATES ART

19 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 20: The New Who and the Myth of Customer Empowerment

INTIMATE DATA ABOUT THE DIGITAL SELF

Which would you rather lose?

283,859 people have answered

Age of population

Is contraception morally wrong? Should burning your nation’s flag be illegal?

How economic and social beliefs change with age

We do math to get you

dates.

20 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 21: The New Who and the Myth of Customer Empowerment

ASSISTED SERENDIPITY

21 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 22: The New Who and the Myth of Customer Empowerment

MOVEMENT AS DATA

22 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 23: The New Who and the Myth of Customer Empowerment

WHO HAS THE BEST CUSTOMER DATA? FACEBOOK DOES

23 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 24: The New Who and the Myth of Customer Empowerment

What if Facebook becomes a bank? WHAT IF FACEBOOK BECOMES A BANK?

24 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 25: The New Who and the Myth of Customer Empowerment

CAN YOU QUANTIFY CONVERSATIONS?

Modifier Dimension Dollar value

Wonderful experience $5.86 Outstanding seller $5.76 Excellent service $5.27

Lightning delivery $4.84

Highly recommended $4.15 Best seller $3.80

Perfectly packaged $3.74 Excellent condition $3.53 Excellent purchase $3.22

Excellent communication $2.38 Perfect item $1.92

Terrific condition $1.87 Top quality $1.67

Awesome service $1.05 A+++ seller $1.03

Modifier Dimension Dollar value Never buy -$1.48

Wrong address -$1.54 Still waiting -$2.25

Not yet received -$2.35 Wrong item -$2.50

Late shipping -$2.89 Poor packaging -$2.92

Not as advertised -$3.93 Wrong product -$4.87 Cancelled order -$5.01 Bad experience -$5.26

Never sent -$6.69 Horrible experience -$6.79 Defective product -$6.82

Never received -$7.56

25 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Dr. Anindya Ghose, Leonard N. Stern School of Business

Page 26: The New Who and the Myth of Customer Empowerment

Facebook places: tying it all together ADDING IT ALL UP: TOMORROW

26 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 27: The New Who and the Myth of Customer Empowerment

KNOW? WHAT DO I NEED TO

27 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 28: The New Who and the Myth of Customer Empowerment

Your brand is now the sum of the conversations that

people are having about you.

– Marcel Lebrun, CEO of Radian6

PERCEPTION VS. REALITY

28 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 29: The New Who and the Myth of Customer Empowerment

29 | © 2010 MOXIE CORP. ALL RIGHTS RESERVED.

LEARN TO LISTEN

Source: Naumi Haque & Catherine Thorn, Mining Your Own Business: What are they saying about you, Moxie Insight, 2009.

Page 30: The New Who and the Myth of Customer Empowerment

UX VS. ORG TOUCHPOINTS

30 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Resolution Fulfillment Decision Learning Awareness

Considering Needs

Initial Use Experiences

Initiating Situation

Identifying Alternatives

Learning and Familiarization

Initial Assessment

Evaluating Alternatives

Additional Information

Evaluation Decision Process

“Below the Surface”

(non-touchpoints)

Most opportunities to innovate the experience occur “below the surface”… in the areas of experience that are

invisible to most companies!

Fulfillment Activities

Sales Contacts

Problem Resolution

Ordering Activities

“Above the Surface”

(touchpoints)

Source: Moxie Insight and Customer Innovations

Page 31: The New Who and the Myth of Customer Empowerment

INITIATING

CONSIDERING

NEEDS

IDENTIFYING

ALTERNATIVES

EVALUATING

ALTERNATIVES

SALES

CONTACTINITIAL

ASSESSMENT

ADDITIONAL

INFORMATION

ORDER

ACTIVITIES

DECISION

PROCESS

FULFILLMENT

INITIAL USE

EXPERIENCES

LEARNING &

FAMILIARIZATION

PROBLEM

RESOLUTION EVALUATION

BLOGS

BRANDED

COMMUNITIES

THIRD-PARTY

SITES

iPHONE

FACEBOOK

YOUTUBE

TWITTER

CALL

CENTER

GOOGLE

COMPANY

WEBSITE

RETAIL

LOCATION

THE CUSTOMER EXPERIENCE IS FRAGMENTED

31 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Naumi Haque, Envisioning an Integrated Customer Experience Platform, Moxie Insight, 2010.

Page 32: The New Who and the Myth of Customer Empowerment

INITIATING

CONSIDERING

NEEDS

IDENTIFYING

ALTERNATIVES

EVALUATING

ALTERNATIVES

SALES

CONTACTINITIAL

ASSESSMENT

ADDITIONAL

INFORMATION

ORDER

ACTIVITIES

DECISION

PROCESS

FULFILLMENT

INITIAL USE

EXPERIENCES

LEARNING &

FAMILIARIZATION

PROBLEM

RESOLUTION EVALUATION

BLOGS

BRANDED

COMMUNITIES

THIRD-PARTY

SITES

iPHONE

FACEBOOK

YOUTUBE

TWITTER

CALL

CENTER

GOOGLE

COMPANY

WEBSITE

RETAIL

LOCATION

MARKETING

SALES & SUPPORT

PRODUCT DEVELOPMENT

CUSTOMER ECOSYSTEM

DELIVERY & FULFILLMENT

EVERYONE HAS A PIECE

32 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Naumi Haque, Envisioning an Integrated Customer Experience Platform, Moxie Insight, 2010.

Page 33: The New Who and the Myth of Customer Empowerment

33 | © 2010 MOXIE CORP. ALL RIGHTS RESERVED.

What statement most accurately reflects the situation in your organization?

8%

44%

27%

5%

16%

0% 10% 20% 30% 40% 50%

Nobody knows anything

Data tends to be siloed by department

Data is shared but is often inconsistent

There is a single version of the truth accessible to all departments

Data is available for simulation and modeling across the enterprise

DATA IS SILOED

Source: Naumi Haque, Survey Results: Leading in the Age of Unbounded Data, Moxie Insight, 2010.

Page 34: The New Who and the Myth of Customer Empowerment

Traditional Customer Record New Customer* Record • Account data

• Order data

• Billing information

• Credit information

• Customer cost-allocation data

• Interaction data (e.g. emails, phone calls, online behaviour at company website)

• Service data (e.g. open tickets, service requests, standard inquiries)

• Marketing data (e.g. campaign responses, promotions offered, successes/failures)

• Segmentation and demographic data

• Records of unstructured conversations found via social-media monitoring and text analysis (e.g. comments, discussions, blogposts, Tweets)

• Profile information gleaned from Facebook, LinkedIn, Twitter, and other online communities

• Records of content created by the individual

• Third-party information associated with an account (e.g. competitive intelligence, contemporary news, data aggregators)

• Individual’s influence and social graph or role as a decision-maker (in B2B transactions)

• Location data and behaviour as captured by mobile applications and check-in services

* Includes customers, prospects, and influencers

Source: Adapted from Paul Greenberg, Destination CRM

THE CHALLENGE OF DATA INTEGRATION

34 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Page 35: The New Who and the Myth of Customer Empowerment

Integrated customer experience platform CALiBER

35 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Collaborate – leverage what you know

Analyze – turn data into actionable insight

Listen – gather more and better data

INTERNAL ACTIVITIES

Broadcast – reduce marcom expense

Engage – challenge corporate boundaries

Respond – empower the contact center

EXTERNAL ACTIVITIES

integrated

CustomerPlatform

Source: Naumi Haque, Envisioning an Integrated Customer Experience Platform, Moxie Insight, 2010.

Page 36: The New Who and the Myth of Customer Empowerment

Controlodometer

Company Customers

VRM Digital facades

Privacy advocacy Web anonymity

Self-destructing data Social media proliferation

Government legislation

SCRM Data mining Data sharing Web analytics Data integration Social media monitoring Proprietary advantage

TAKING CONTROL

36 | © 2010 MOXIE INSIGHT. ALL RIGHTS RESERVED.

Source: Naumi Haque, Envisioning an Integrated Customer Experience Platform, Moxie Insight, 2010.

Page 37: The New Who and the Myth of Customer Empowerment

Naumi Haque [email protected]

416.863.8840

www.MoxieInsight.com

Jeff DeChambeau [email protected]

416.863.8880

www.MoxieInsight.com