Listening to the customer - 7 key customer experience trends

Listening to the Customer7 N e w R e s e a r c h F i n d i n g s

Stefan Tornquist, VP Research,

Econsultancy

Elizabeth Magill, Program Leader,

Customer Analytics Marketing, IBM

Econsultancy

Stefan Tornquist

VP research, NA

@SKTornquist

Elizabeth Magill

Program Leader,

Customer Analytics Marketing,

IBM

@emagill

The studies and some context

A look at the marketer and consumer studies behind this talk

Findings

Top findings on current trends and eternal truths in customer experience design and

management

Conclusion

Mind the gap between self-perception and reality

Q&A

Today

Study 1: Marketers

276 Brands

Revenues $200 million+

Director+ (VP/C-suite/Board 42%)

Broad range of B2C industries

Online/offline/call centers 1

Study 2: Consumers

1,136 Consumers

50/50 gender

18+ nationally representative

40% HH above $100K

At least one multi-channel relationship

276 Brands

Revenues $200 million+

Director+ (VP/C-suite/Board 42%)

Broad range of B2C industries

Online/offline/call centers

2

Marketers

37% 35%28%

38%34%

29%

19%

20%

24%

6%9%

14%

1% 2% 5%

0%

20%

40%

60%

80%

100%

We deliver a superior OFFLINEcustomer experience compared to

competitors

We deliver a superior ONLINEcustomer experience compared to

competitors

We deliver a superior MOBILEcustomer experience compared to

competitors

Strongly agree

Somewhat agree

Neutral

Somewhat disagree

Strongly disagree

Question: Do you agree or disagree with the following statements? N = 265

75% believe they deliver a superior

offline experience

Marketers

37% 35%28%

38%34%

29%

19%

20%

24%

6%9%

14%

1% 2% 5%

0%

20%

40%

60%

80%

100%


competitors


competitors


competitors

Strongly agree

Somewhat agree

Neutral

Somewhat disagree

Strongly disagree


69% believe they deliver a

superior online experience

Marketers

37% 35%28%

38%34%

29%

19%

20%

24%

6%9%

14%

1% 2% 5%

0%

20%

40%

60%

80%

100%


competitors


competitors


competitors

Strongly agree

Somewhat agree

Neutral

Somewhat disagree

Strongly disagree


57% believe they deliver a superior

mobile experience

What’s the upside of understanding your customers?

/01

Why they leave…

Banks

Cable/Satellite

Internet

Mobile service

Why they leave…

Banks

Cable/Satellite

Internet

Mobile service

49%…switched in 2014

Question: In the last year have you changed providers in any of the following areas? N = 1,010

Why they left…

Banks

Cable/Satellite

Internet

Mobile service

30%…because their old company failed

Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473

Why they left…

Banks

Cable/Satellite

Internet

Mobile service 59%…new company offered something

better

30%…old company failed

Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473

Why they left…


51%

20%

20%

9%

Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473

Why they left…


51%

20%

20%

9%

Experience


Why they left…


51%

20%

20%

9%

Experience

Product


Why they left…


51%

20%

20%

9%

Experience

Product

Pricing

Other Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473

Why they left…

59%…new company offered more

29%42%

24%

6%

Question: What did your new [vendor type chosen] offer that led you to switch? N = 473

Why they left…

29%42%

24%

6%

Experience

Product

59%…new company offered more


Why they left…

29%42%

24%

6%

Experience

Product

Pricing Other 59%

…new company offered more


/One

Most customers are lost for reasons we can control.

A holistic view?

/02

Multi-channel consumers

Average

Research products Buy products Not applicable

Store 50% 78% 15%

Website 81% 82% 3%

Mobile app 51% 35% 42%

Catalog 34% 28% 52%

18-34 years old


Store 51% 75% 13%

Website 80% 82% 2%


Catalog 41% 29% 43%

Affluent ($100k+)


Store 54% 82% 15%

Website 93% 84% 1%


Catalog 36% 23% 52%

Women


Store 51% 75% 13%

Website 81% 82% 2%


Catalog 37% 29% 50%Question: What are the different ways you shop with your favorite retailer? N = 587

Marketers

81% of consumer marketers

say they have a holistic view of

their customers…

Question: Do you feel like your organization has a holistic view of your customers…do you have a view of individuals and segments across interactions and channels?

Responses: Yes, we have a holistic view / We have a good view of our customers, and are close to a holistic one. N = 265

A holistic view?

37% of consumers say their

favorite retailer understands

them…

Question: Still thinking about your favorite retailer – do you feel that they personalize the shopping experience (products, deals and other information) for you as an individual? N = 587

A holistic view?

22% of consumers say

average retailers understand

them…

Question: In general, do the companies you do business with personalize the experience (deals and other information) for you as an individual? N = 1,020

/Two


Our approach to the customer is obsolete.

Average isn’t nearly good enough

/03

Marketers

37% 35%28%

38%34%

29%

19%

20%

24%

6%9%

14%

1% 2% 5%

0%

20%

40%

60%

80%

100%


competitors


competitors


competitors

Strongly agree

Somewhat agree

Neutral

Somewhat disagree

Strongly disagree


Marketers believe they deliver a

superior experience

Consumers

35% say “usually relevant” about their favorite

companies

How often are communications relevant?

Question: In general, how relevant are the marketing messages you receive from your favorite [retailer or travel/hospitality]? N = 1,004

Consumers

21% say “usually relevant” about average

companies

How often are communications relevant?

Question: In general, how relevant are the marketing messages you receive from most [retailer or travel/hospitality]? N = 1,004

/Three



Businesses think they deliver a superior customer experience.

They don’t.

Trust is earned through experience

/04

When consumers say “trust”…

251

276

348

439

441

642

831

Products that are customized for me

Very respectful of my privacy

Lowest prices

Easiest to shop with, save me the most time

Best service when I have an issue

Treat me well as a loyal customer

Very trustworthy with my data/information

Question: If you were building the perfect company to serve you, what would be most important? N = 618

Yes, I’ll share my information…

37%

38%

67%

73%

79%

80%

61%

72%

84%

90%

0% 25% 50% 75% 100%

Who I am specifically – my personally identifiable information

Where I am – location and time data

Who I am in general – my age range, gender, town, etc.

How I feel about their brand – from comments, past issues, loyalty info, etc

My history with the company – my past purchases, returns, issues, etc.

What I want – kinds of products I like, what I’m looking for

All companies Trusted companies

Question: How do you feel about companies having the following information? N = 618

Yes, I’ll share my information…

37%

38%

67%

73%

79%

80%

61%

72%

84%

90%

88%

89%

0% 25% 50% 75% 100%








Question: How do you feel about your favorite [retailer or travel/hospitality] company having the following information? N = 843

Marketers

37%

38%

67%

73%

79%

80%

61%

72%

84%

90%

88%

89%

0% 25% 50% 75% 100%








1st

Consumer Question: How do you feel about companies having the following information? N = 618

Marketer Question: Which of the following types of information are most important for your customer experience management? N=263

3rd

2nd

/Four




They don’t.

To deliver value we need information.

Our most coveted customers

/05

Marketers

64%

27%

6%

2%0%

0%

10%

20%

30%

40%

50%

60%

70%

Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree

“Identifying high value customers is vital to our growth”

Question: Do you agree or disagree with the following statements? N=257

Marketers

64%

27%

6%2% 0%

0%

10%

20%

30%

40%

50%

60%

70%

Strongly agree Somewhatagree

Neutral Somewhatdisagree

Stronglydisagree

“Identifying high value customers is vital to our growth”

P a r e n t s

M e n

W o m e n

S i n g l e

M e d i a n H H

Mid-career

Marr ied

Affluent

MillenialsQuestion: Do you agree or disagree with the following statements? N=257

Youth (18-34)

• 24% more likely to download store/service apps

• 20% less likely to have bought from an email in last 12 months

• More comfortable sharing their data

• More demanding for benefits in sharing it

• More multi-channel in general

• Even more multi-channel with preferred brands

Affluent HH ($100k+)

• 49% more likely than Millennials to have bought from an email

• 25% more likely than the average to buy from a mobile device

• More demanding of service

• More controlling of their information

• More likely to leave because of a mistake

• Less likely to jump for a better price

/Five




They don’t.


Our most desirable audiences will demand the most of us.

As strong as its lowest point

/06

Conflict happens

42% of consumers have had a conflict with

a trusted company in the last year.

Question: In the last year, have you had a conflict with a company you do business with? For example, couldn’t return or exchange something, charged for something you didn’t buy, had a service

request they couldn’t handle, etc.? N = 1,004

Marketers

37%

52%

8%3%0%

How satisfied are you with your ability to resolve customer conflicts?

Very satisfied

Somewhat satisfied

Neutral

Somewhatunsatisfied

Very unsatisfied

89% of brands are

satisfied with their

ability to resolve

conflicts…

Question: How satisfied are you with the organizations ability to resolve customer conflicts? N=252

But…

28% of consumers

said that the company

resolved the conflict

very effectively

28%

31%

17%

24%

How effectively did [that company] deal with your issue?

Very effectively

Somewhateffectively

Somewhatineffectively

Veryineffectively

Question: How effectively did [company type chosen] deal with your issue? N=424

And it matters…

24%

Very ineffective

46% are still customers

13% shop/use at same levels

98% shared their story


And it matters…

28%

Very effective

71% are still customers

46% shop at the same levels

89% shared their story


/Six




They don’t.



We must understand the perilous parts of the customer journey.

Mind the gap

/07

Marketers

48%

40%

8%3%1%

Our growth depends on personalizing the customer’s experience

Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree

88% agree that their

growth depends on

personalizing the

customer’s experience


Marketers

Most organizations lack the

essential capabilities or tools

to fulfill on that promise… 34% 37% 37%

0%

15%

30%

45%

60%

75%

We do a good job oflinking our online and

offline customerexperiences

We have the tools weneed to provide

exceptional customerservice andexperiences

We are able to tiecustomer experienceactivities to revenueand/or cost savings


/Seven




They don’t.



We must understand the perilous parts of the customer journey.

The intent is there. The tools are available. The gap is execution.

http://ibm.com/experienceone

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http://twitter.com/IBMExpOne

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Stefan Tornquist

VP research, NA

Econsultancy

@SKTornquist

Questions and Answers

Elizabeth Magill

Program Leader,


IBM

@emagill

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May 11-13 | San Diego Convention Center #ibmamplify

Stefan Tornquist

VP research, NA

Econsultancy

@SKTornquist

Questions and Answers

Elizabeth Magill

Program Leader,


IBM

@emagill