This presentation was made in April 2012 at the Text Analytics Summit in London. The presentation outlines Customer Experience Management (CEM) best practices and their value to both the customer and the vendor. In addition we look at the technical, operational and measurement challenges of CEM, and the customer decision journey.
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1. Text Analytics to Optimise Customer ExperienceManagement
(CEM) for increased Customer Retention and Shareholder ValueGerry
BrownDirector MIS AssociatesFor: Text Analytics Summit Europe Date:
Tuesday 24th April 2012Location: Royal Gardens Hotel, London
W8
2. What does Gerry do? Strategy advisor Technology industry
analyst Marketing lecturer2Text Analytics Summit Europe 24th April
2012 3. Agenda1. CEM: best practices, customer value and
profitability2. Technical, operational and measurement challenges3.
Conclusions3 Text Analytics Summit Europe 24th April 2012 4. Who
does CEM well?4Text Analytics Summit Europe 24th April 2012 5. 6
Behaviours of CEM Champions1. Recruit and train to deliver the
brand promise2. Differentiate through service and personalisation3.
Promote from within and reward staff well4. Innovate as a result of
listening5. Under-promise and over-deliver6. Data-driven measure
everything5Text Analytics Summit Europe 24th April 2012 6. Most
important attributes for delivering customer experienceFoviance
(2012)6Text Analytics Summit Europe 24th April 2012 7. Loyalty /
Retention Strategies1. Create targeted and unique interactions with
high value customers based on a 360 degree view2. Recognize and
reward customers in real time across multiple channels3. Integrate
partners into loyalty programmes4. Develop online communities using
social media7Text Analytics Summit Europe 24th April 2012 8. How
Loyalty & Retention Contribute to Shareholder Value 7 6 5
Acquisition Cost Year 4 Base Profit Revenue Growth 3 Reduced
cost-to-serve 2 Referrals value 1 Price Premium -200 204060Customer
Profitability ($)Fred Reichheld (1996)8Text Analytics Summit Europe
24th April 2012 9. Management Gurus Agree . . . Reichheld: a 5%
reduction in customer defection increases profits by 25% to 80%
McKinsey: retaining customers is 3 to 10 times cheaper than
acquiring newHowever customer leakage is occurring . . . Bain: 80%
of organizations surveyed felt they did a great job in delivering
customerexperiences. Only 8% of their customers agreed McKinsey:
7/10 customers switch to a competitor because of poor service
University of Pennsylvania: 96% of dissatisfied customers leave
quietly, 68% of whichnever reveal their dissatisfaction because of
perceived indifference9 Text Analytics Summit Europe24th April 2012
10. What is CEM & Key ConceptsThe orchestration and integration
ofall touch-points and activitiesperformed for the customer What
CEM advocates believe: Customer acquisition is expensive, and
profitability comes from longer term Life Time Value (LTV) Delight
the customer with product and service experiences beyond their
expectations and be rewarded with customer retention, loyalty and
advocacy A satisfied customer is the most profitable customer. High
value customer churn must be avoided at all costs10 Text Analytics
Summit Europe24th April 2012 11. What text analytics does for CEM
Integrates raw unstructured data on customer experience from
Integrates multiple enterprise applications and social media
sources Reveals customer sentiments, concerns, intentions, and
issuesReveals Refines data into categories, themes, sentiments,
emerging issuesRefines and root causes for analysis and reporting
Provides real time actionable insightsInsight11Text Analytics
Summit Europe 24th April 2012 12. What are the text sources?12Text
Analytics Summit Europe 24th April 2012 13. Barriers preventing
multichannel customer experience Foviance (2012)13Text Analytics
Summit Europe 24th April 2012 14. The Traditional Linear AIDA Model
Awareness Marketing InterestDesireSalesAction Services14 Text
Analytics Summit Europe 24th April 2012 15. McKinseys Consumer
Decision Journey Active Evaluation Loyalty LoopInitial Moment of
Consideration Purchase Trigger Post-purchase experience15 Text
Analytics Summit Europe 24th April 2012 16. Measuring CEM Important
data sourcesKey measurement metrics Web site analytics (77%) Sales
/ revenue (66%) Customer satisfaction Customer retention / loyalty
surveys (72%) (65%) Social media (50%) Customer satisfaction / net
Call centre (49%) promoter score (57%) CRM (39%) Call centre (36%)
Ad campaigns (36%) Social media (36%) Profitability
(34%)eConsultancy (2012)16Text Analytics Summit Europe24th April
2012 17. Conclusions CEM is a core organisational strategy it best
suits high service organisations e.g. travel, hotels, retail Text
analytics on the desktop enables service encounter personalisation
by providing a 360 degree single customer view via multiple online
feeds Text analytics identifies issues and root causes for
management corrective action and service continuity A few
organisations are advanced in CEM, most are early stage culture and
complexity are key challenges17 Text Analytics Summit Europe 24th
April 2012 18. Thank you 19. Questions?Gerry BrownDirectorMIS
Associates Limited5 Kew Road, Richmond TW9 2PRMobile: +44 (0)7855
525598Email: [email protected]:
www.misassocs.comTwitter: @gerrybrown. . . optimise your marketing
strategies
