1. Trends and Opportunities in Customer Experience Management EPiServer Benelux | 26 June 2014 Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com

2. DCG helps business leaders navigate the digital transformation and create competitive advantage from disruption. 2 About Digital Clarity Group @$m_walters@just_clarity 3. 3 @$m_walters 4. 4 Yearning to kill the messenger 5. June 28, 2007 5 6. 6 7. 7 8. 8 The compression of time and space 9. 9 10. 10 11. 11 12. Accelerated flow of information Democratized production of information Dissolved monopoly over information As the industrial revolution was defined by radical efficiency in production, the digital revolution is defined by radical efficiency in information transmission -- Mike Aruz (e.g., Uber, Airbnb) 12 The deformation of information 13. 13 What do consumers think of us? @$m_walters 14. Twitter trumps condiments 14 Source:h@p://www.newmediaandmarke$ng.com/brands-have-to-master-complaint-management/customer-complaints-561 15. Only 15 1% feeltheir expecta$ons forgood customer serviceare alwaysmet Source:HaarisInterac$vesurveyofNorthAmericanconsumers,2011.CommissionedbyRightNow. @$m_walters 16. 16 Say they have switched business to a competitor due to poor customer experience Source:HaarisInterac$vesurveyofNorthAmericanconsumers,2011.CommissionedbyRightNow. @$m_walters 17. 17 Say they will pay a premium for great customer experience Source:HaarisInterac$vesurveyofNorthAmericanconsumers,2011.CommissionedbyRightNow. @$m_walters 18. 18 Source:Okeee&Companysurveyof1,342seniorexecu$ves,2012.CommissionedbyOracle. Global executives say the cost of not providing positive, consistent, and brand relevant experiences is 20% of total revenue @$m_walters 19. 19 $1.25million peryear @$m_walters Source:h@p://www.weirdworldfacts.com/smart-dogs-with-amazing-jobs/ 20. How much is at stake? $5,900,000,000,000 ($5.9 trillion) 20Source:Accenture,2013GlobalConsumerPulseResearch.Photo:h@p://www.t-na$on.com/free_online_ar$cle/most_recent/ train_like_a_man_5_the_real_paleo_exercise 21. #CEM isnt the Next Big Thing. It is the Next Only Thing. #provocation 21 22. 22 What do consumers want from us? @$m_walters 23. 79% Companiesaskingsameques$onsor marke$ngsameoeracrosschannels Sources of consumer frustration 65% Inconsistentoersorcontent 79% Companiesse^ngfalsepromises Source:AccentureGlobalConsumerPulseReport,2014. @$m_walters 24. of consumers are frustrated by site content that has nothing to do with their interests 24 Source:HarrisInterac$vesurveyof2,091U.S.consumers,2013. @$m_walters 25. of consumers say that personalization influences what they purchase 25% say the influence is significant 25 Source:VansonBournesurveyofUSconsumers,2013. @$m_walters 26. 26 Consumers expect insight Source:DynamicMarketsstudyforExperian,January2012. Understanding means, e.g., taking account of preferences, purchase history, and other provided information. 84% said they would no longer buy from a company that failed to understand. @$m_walters 27. We are anxious about privacy . . . but we want companies to offer relevant experiences based on our wants, needs, and tasks. 27 Source:h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-CRM-to-the-Customer-Managed-Rela$onship 28. #CEM means: Embracing the shift from #CRM to #CMR customer managed relationshps. (Thanks to @collsdad) 28 Source:h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-CRM-to-the-Customer-Managed-Rela$onship 29. 29 A strategic inection point Source:BasedonAndyGrove,OnlytheParanoidSurvive,1996 @$m_walters 30. Strategic inflections can come from anywhere: new technologies, new competition, new regulations, new customer values and habits, etc. anything that has a significant impact on the business itself or the industry as a whole. Andy Grove 30 31. 31 CEM is todays fundamental SI Business success STATUSQUO Business failure Digital disruptions Era of empowered consumers Basic shift in the business environment Impacts every firm, regardless of industry Impact:Failuretoprovide superiorcustomerexperiences leadstoirrelevanceandbusiness decline @$m_walters 32. 32 33. In Forresters 2014 CX Index, 11% of companies received a top grade Accenture surveyed over 13,000 consumers in 33 countries about 10 industries Despite investments and initiatives, no CX metric has improved consistently in the past five years. All metrics lost ground in 2013 Companies have been playing not to lose 33 Answer: You suck Source:AccentureGlobalConsumerPulseReport,2014.h@p://blogs.hbr.org/2013/06/new-research-youre-doing-custo/ 34. 34 The dissonance gap STATUS QUO Marks the divergence between business as usual and what you should be doing to accommodate and leverage the new paradigm. @$m_walters 35. 35 The dissonance gap trap The business challenge is to correct course before the gap becomes too large to cross. 36. #CEM means: Navigating the dissonance gap. Time is running out.. 36 37. 37 You cant do it alone. Source:h@p://silence-without.blogspot.de/2010_12_01_archive.html 38. CEM is so new, hard, and complex that nearly all organizations must draw on third-party service providers to provide or supplement skills in research, strategy, design, technology, operations, and much more. In short, service provider partners increasingly provide an indispensable ingredient in any CEM endeavor. 38 @$m_walters 39. Its more than implementation The Three Is turn software into a solution Implementation Integration Incorporation into ongoing CEM processes 40. Supporting #CEM means: the more software you need, the less important it becomes to your overall success. 40 41. 41 42. The #CEM Imperative: Accepting that business reality has changed. (And acting like it.) 42 fundamentally > forever > 43. What it means Firms must act now: Consumers expect rich experiences today, and they are growing ever less tolerant of deficient engagement and of disengaged brands. Resistance is futile but pervasive . . . and fatal: If you wait for best practice to emerge, you wont need them. New ways of working among clients, vendors, and other service providers are unavoidable and advantageous. CEM is not design-build-deliver. Consumer expectations are insatiable. Change is the only constant. Unpredictability is the only reliable forecast. Adaptability is the only sensible five year plan. 43 @$m_walters 44. 44 You may hate gravity, but gravity does not care. -- Clayton Christensen 45. Tim Walters | Partner, Principal Analyst @tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com