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The Path to Customer Experience Maturity in The Age of the Customer Craig Menzies, Principal Analyst Serving Customer Experience Professionals Twitter: @craigmenzies, @forrester, #NASSCOM_ILF My CX blog: http://blogs.forrester.com/craig_menzies 12 th February, 2014

NILF 2014: The Path to Customer Experience Maturity: Craig Menzies, Principal Analyst, Forrester

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Page 1: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

The Path to Customer Experience Maturityin

The Age of the Customer

Craig Menzies, Principal Analyst

Serving Customer Experience Professionals

Twitter: @craigmenzies, @forrester, #NASSCOM_ILF

My CX blog: http://blogs.forrester.com/craig_menzies

12th February, 2014

Page 2: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

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Why should we care about customer experience?

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How customers perceive their interactions with your company

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Enjoyable

Easy

Meets Needs

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Willingness to consider

for another purchase

Likelihood to

recommend to a friend

Likelihood to switch

business to a competitor

Customer experience correlates to loyalty

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The playing field for businesses is changing before your eyes

Page 8: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

1900-1960

1960 - 1990

1990 - 2010

2010 +

Sources of competitive advantage change over time

Page 9: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

1900-1960

1960 - 1990

1990 - 2010

2010 +

Age of Manufacturing

Age of Distribution

Age of Information

Sources of competitive advantage change over time

Sources of Dominance

Page 10: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

1900-1960

1960 - 1990

1990 - 2010

2010 +

Ford, RCA, GE,

Boeing, P&G, Sony

Age of Manufacturing

Age of Distribution

Age of Information

Microsoft, Dell, Google, Capital One

Wal-Mart, Toyota,

UPS, CSXDominant Companies

Sources of competitive advantage change over time

Sources of Dominance

Page 11: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

1900-1960

1960 - 1990

1990 - 2010

2010 +

Ford, RCA, GE,

Boeing, P&G, Sony

Age of Manufacturing

Age of Distribution

Age of Information

Microsoft, Dell, Google, Capital One

Wal-Mart, Toyota,

UPS, CSXDominant Companies

Sources of competitive advantage change over time

Sources of Dominance ?Age of the Customer

Contenders include

Southwest Airlines, USAA,

Amazon, …

Page 12: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

A 20 year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.

The Age of the Customer

Page 13: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

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My Buying Criteria:

•My friend was selling it (proximity)•I could afford it (price)•I hadn’t heard anything bad about it (information)•It was on the cover of a magazine (media)

Page 14: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

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Fast forward 25 years!

Word of Mouth, Price, Expert opinion, Proximity

AND…

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Highly detailed specifications

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Competitive comparisons

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With even more detailed specs

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Reviews from other buyers

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Forums of opinionated owners

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• Detailed specs• Model comparisons• Trusted reviews• Best place to buy• Best price to pay• Special offers• Best insurance deals• Owner opinions• Maintenance history• Accessories• Upgrades• Social events• Where to ride• Etc, etc, etc, etc…

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In short…

The Customer has all the power

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Information

Price Location

Tech

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Information

Price LocationTech

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Information

Price LocationTech

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Information

Price Location

Tech

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So how does one “do” customer experience?

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2036210,000

Page 30: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Khumbu Icefall

Page 31: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Lhotse Face

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“clearly unused to even basic mountaineering equipment”

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Customer Experience

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47% Differentiate the company from leaders in their industry

13% Differentiate the company from leaders in ANY industry

› Base: 100 customer experience professionals (percentages may not total 100 because of rounding)Source: Q4 2012 Global Customer Experience Peer Research Panel Online Survey

Page 36: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Firms are not doing what it takes

Page 37: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

47%don’t measure customer

experience quality

Page 38: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

79% don’t train employees on how to deliver

the target customer experience

Page 39: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Not differentiating

Page 40: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Low customer experience maturity

Page 41: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Customer Experience Maturity

The extent to which an organization routinely performs the practices

Page 42: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience

Customer Experience Maturity

Page 43: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way.

Customer Experience Maturity

Page 44: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Low CX maturityPractices are missing or performed in an ad hoc way

High CX maturityPractices are performed

systematically

Page 45: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

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Get on the path to high customer experience maturity.

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Page 47: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

RepairElevate

Optimize

Differentiate

Page 48: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

RepairElevate

Optimize

Differentiate

Page 49: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

STOP the avalanche of bad customer experiences

Page 50: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Repair Phase Key Activities

› Identify bad experiences

› Prioritize fixes

› Coordinate implementation

› Measure results

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2008 CXi – Wireless Carriers

Page 54: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

$1.7 billion

Page 55: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Very Poor

OK

Base: US online consumers who have interacted with each firmSource: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010

(US), Q4 2011 (US), Q4 2012 (US)

Page 56: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Base: US online consumers who have interacted with each firmSource: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010

(US), Q4 2011 (US), Q4 2012 (US)

Page 57: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester
Page 58: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

RepairElevate

Optimize

Differentiate

Page 59: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Make good CX behaviour the norm

Page 60: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Elevate Phase Key Activities

› Define a customer experience strategy

› Share customer insights with all employees

› Create a consistent, companywide customer experience measurement framework

› Start following a human-centered design process

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Edward Jones CXi Score 2011 – 2013

OK

Good

Base: US online consumers who have interacted with Edward JonesSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)

Page 69: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

RepairElevate

Optimize

Differentiate

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A more sophisticated customer experience toolkit

Page 71: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Optimize Phase Key Activities

› Model the relationship between CX quality and business results

› Build strong experience design practices

› Sharpen employees’ CX related skills through targeted training

› Evaluate employee performance against role-specific CX metrics

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• Let personality shine

• Provide options

• Help guests feel comfortable in public spaces

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“Matt is chillin”

Page 79: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Systematic customer experience training

Six months before Pre-reno 11 days before3 months after re-

opening

Walk-throughImmersion

6 Webinars

Full Associate Training

2 – 3 Day Post-Visit

Page 80: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester
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Courtyard by Marriott CXi Score ‘10 – ‘13

Base: US online consumers who have interacted with Courtyard by MarriottSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)

Good

Page 82: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Courtyard by Marriott CXi Score ‘10 – ‘13

Base: US online consumers who have interacted with Courtyard by MarriottSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)

Good

Excellent

Page 83: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

RepairElevate

Optimize

Differentiate

Page 84: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Catapult you to the top

Page 85: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Differentiate Phase Key Activities

› Re-frame customer problems

› Reveal unmet customer needs

› Re-think the entire CX ecosystem

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Car loans

Mortgages

Insurance

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© 2013 Forrester Research, Inc. Reproduction Prohibited

USAA

Lead over next highest

brand

Banks 85 +7Credit Card Providers 82 +7Insurance Providers 83 +9

Page 93: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

How do you get started on the path to CX maturity?

Page 94: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

The Experience-Driven Organization PlaybookMay 2012 “Transform To An Experience-Driven Organization”

Assessment: Where Are You On The Path To Customer Experience Maturity?October 11, 2013 | Megan Burns

Overview: Transform To An Experience-Driven OrganizationMay 7, 2012 | Harley Manning

Gather best practices

Page 95: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Assess your maturity

Page 96: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

Understand your customer’s journey(s)

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Does your digital channel meet your customer’s needs?

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Thank youCraig Menzies

Principal Analyst, Forrester Research (Sydney, Australia)

[email protected]

+61 02 9006 3352, +61 43 555 1412

Twitter: @craigmenzies, @forrester, #NASSCOM_ILF

My CX blog: http://blogs.forrester.com/craig_menzies

Page 100: NILF 2014: The Path to Customer  Experience Maturity: Craig Menzies, Principal  Analyst, Forrester

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