2015 - 2018CUSTOMER EXPERIENCE

WHAT IS THE STATE OF CUSTOMER EXPERIENCE TODAY HOW WILL IT CHANGE

“their online solution is so simple to use that I’m not going to change [brands] because fo that” - retiree

“it was to complex, I don’t want to spend my time administrating what I want” - mom with small children

VIDEO LINK: HTTP://BIT.LY/1BS5NSK

AND THE CUSTOMER IS FRONT AND CENTER WHEN IT COMES TO FINDING THE COMPANIES FUTURE INCOME

THE CUSTOMER IS DRIVING THE ORGANIZATION FORWARD, BUT HOW DO WE INTEGRATE WITH THE CUSTOMER?

DISCUSS

RANK THE FOLLOWING LIST ACCORDING TO THE STRATEGIC WEIGHT THEY WIELD. HOW IMPORTANT

ARE THE CUSTOMERS? KEY EXTERNAL BUSINESS PARTNERS

NON-EXECUTIVE SENIOR LEADERSHIP PARENT COMPANY

CORPORATE STRATEGY FUNCTION CUSTOMERS

BOARD OF DIRECTORS C-SUITE

1. HOW WILL WE WIN?

THE CUSTOMER EXPERIENCE IS DIRECTLY LINKED TO THE BUSINESS STRATEGY - IT’S NOT OPERATIONAL OR ONLY DIGITAL. IT’S DEFINING THE COMPANY’S ROLE AND HOW WE ARE GOING TO CREATE WHAT

VALUE FOR OUR CUSTOMERS IN ORDER TO WIN IN THE MARKET.

TESCO’S GOAL IS TO CREATE A COMPELLING OFFER FOR THEIR CUSTOMERS NOT MOVE GOODS OVER THE COUNTER. IN PUSHING THIS THEY SAW THAT THEY WOULD HAVE TO RETHINK AND REDESIGN THE CUSTOMER EXPERIENCE OF PHYSICALLY

PAYING FOR A PRODUCT. COULD YOU DO AWAY WITH THE ACTIVITY ITSELF? TESCO DOESN’T NEED CUSTOMERS PAYING - THEY ONLY NEED THEIR MONEY - HOW THEY GET IT IS OPEN FOR DESIGN.

“As banks recover from the downturn, non-banks are taking advantage by proceeding aggressively with digital innovations and capturing more and more of the banking value chain,” they recently wrote in Harvard Business Review.

THE SAME GOES FOR STARBUCKS. THEY’RE BUSINESS IS “TO INSPIRE AND NURTURE THE HUMAN SPIRIT – ONE PERSON, ONE CUP AND ONE NEIGHBORHOOD AT A TIME.” IN ORDER TO DO THIS THEY DESIGNED THEIR CUSTOMER EXPERIENCE, WHICH

INCLUDES A REWARDS CARD AND LOYALTY CARD, SO STRONG ACCENTURE ANTICIPATES STARBUCKS WILL HAVE 20% OF THE AMERICAN CONSUMER BANKING MARKET BY 2020.

THE COMPETITION AREN’T NECESSARILY THOSE WHO

LOOK AND FEEL IDENTICAL TO YOU - THE MOST LETHAL

COMPETITION COMES FROM THE OUTSIDE

IF YOU ASKED A CONVENIENCE STORE IN OSLO IN 2012 WHAT THE BIGGEST THREAT WOULD BE IN 2013 THEY WOULD POINT TO THE OTHER SIDE OF THE STREET AND SAY - ‘IF A COMPETING CONVENIENCE STORE OPENS OVER THERE’.

THE WORST THING THAT DID HAPPEN WAS THE MOBILEPHONE TICKET ORDERING APPLICATION FOR THE PUBLIC TRANSPORT COMPANY.

THE PROBLEM BEING THAT THE STORES ALL KNEW ABOUT THE APP, BUT NOBODY DID ANYTHING BECAUSE THE THREAT DIDN'T LOOK IDENTICAL TO THEMSELVES.

CUSTOMER’S EXPECTATIONS IS INFLUENCED BY EVERY INTERACTION THEY HAVE WITH ANY BRAND OR SERVICE. COMPANIES NEED TO COMPARE THEMSELVES AND KEEP AN EYE ON ANY EXPERIENCE OUTSIDE AND INSIDE THER INDUSTRY.

DISCUSS

HOW WILL WE WIN?

WHAT IS THE CUSTOMER EXPERIENCE? HOW DOES IT DIRECTLY DELIVER ON/INFLUENCE THE BUSINESS STRATEGY?

2. PRECISION AND RELATIONSHIPS

WHEN A CUSTOMER’S BUYING BEHAVIOR CHANGES THE TOOLS TO MOTIVATE THIS BEHAVIOR NEEDS TO ADAPT.

COMMUNICATION IS A TOOL DESIGNED TO FIT THE BEHAVIORS OF THE CUSTOMER. WHEN THESE BEHAVIORS CHANGE THE COMMUNICATION NEEDS TO ADAPT.

2009

ACTIVE EVALUATION

LOYALTY LOOP

POST PURCHASE EXPERIENCE

INFORMATION GATHERING, SHOPPING

After purchasing a product or service the consumer builds expectations based on

experience to inform the next decision journey

The consumer considers an initial set of brands, based on brand perceptions and exposure to

recent touch points

Consumers add or subtract brands as they evaluate what they want

Ultimately, the consumer selects a brand at the moment of purchase

MOMENT OF PURCHASE

INITIAL CONSIDERATION

SET

1.

2.

3.

4.

THE NEW SIRLOIN OF MARKETING

2009

TRADITIONALLY BRANDS ARE PRESENT IN THE GREEN DOTS. THESE ARE VERY EXPENSIVE PLACES TO BE. IN THE NEW AREAS (GREY BACKGROUND) COMPANIES CAN ACHIEVE GREAT THINGS BUT THIS REQUIRES A NEW TYPE OF MARKETING PRODUCT AND NEW FORMATS.

THE KNOWLEDGEABLE CUSTOMER PEOPLE AND

COMPANIES HAVE CHANGED HOW THEY SHOP - AND OUR TOOLS NEED TO

CHANGE WITH THEM

IN B2B CUSTOMERS HAVE ALREADY COMPLETED 60% OF THEIR CUSTOMER JOURNEY BEFORE TALKING TO SOME COMPANIES. SALES BECOMES LESS ABOUT PRESENTING PRODUCT INFORMATION AND MORE ABOUT HELPING CUSTOMERS CREATIVELY IMPROVE THEIR BUSINESS POTENTIAL WITH THE PRODUCTS.

NEW HABITS AND BEHAVIORS CHANGE THE IMPORTANCE OF

ESTABLISHED MECHANISMS

EVEN IF THE EMOTIONAL DRIVERS FOR BUYING A CAR ARE SIMILAR TODAY AS IT WAS IN THE 1980’S, THE LOYALTY TOWARDS CAR BRANDS HAVE FALLEN FROM 60% TO 20% IN THE PERIOD.

- THE REASON IS THE INTERNET. HOW PEOPLE ARE BUYING CARS ARE DIFFERENT, NOT WHY

TECHNOLOGY CHANGES PEOPLE’S BEHAVIORS AND HABITS. THIS HAS AS MUCH AN EFFECT ON THE CUSTOMERS CONVERSION AS ANYTHING.

0

COMMENT: INVESTMENTS ARE MOVING TOWARDS CHANNELS ENABLING THE NURTURING OF PERSONAL RELATIONSHIPS. TODAY THE CUSTOMERS ARE INDIVIDUALS, NOT MASSES. TECHNOLOGY TODAY ALLOWS FOR INDIVIDUALLY TAILORED COMMUNICATION TO MILLIONS OF CUSTOMERS AT THE SAME TIME. [HOW TO READ THE GRAPH: THE COLUMNS ON THE RIGHT HAND SIDE OF THE DOTTED LINE REPRESENTS THE NUMBERS FOR 2015, THE BLUE AND THE RED COLUMNS REPRESENT INCREASES (BLUE) AND DECREASES(RED) FROM 2012 TO 2015].

INDIVIDUAL PATHS TO PURCHASE:

In 2012, Google and Shopper Sciences did a study of the purchase journey of 3,000 different customers in tech, CPG, automotive, and finance, and literally found 3,000 different paths to purchase.

However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each point along the way in the order and time that made the most sense to them.

In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential vendor.

http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html

CUSTOMERS HAVE ALWAYS BEEN INDIVIDUALS, WE JUST HAVEN’T HAD THE DATA TO SEE IT / PROVE IT.

THIS IS THE FUTURE OF THE INTERNET, IT'S ALL ABOUT PERSONAL COMMUNICATION. THERE ISN'T ONE PORTAL OR ONE-SIZE-FITS-ALL WEBSITE, NO COMPANY WEBSITE OR MY-PAGE…

VIDEO LINK: http://youtu.be/a6cNdhOKwi0

THIS IS THE SAD STATE OF THE COMPANIES ONLINE CUSTOMER EXPERIENCE IN 2014. IT’S BC.

vs.

MAKE SURE YOU PICK THE PLATFORM THAT ENABLES WHAT YOU WANT TO ACHIEVE AND HOW YOU WANT TO GROW AND CULTIVATE YOUR CUSTOMER RELATIONSHIPS. IS THE WEB, MOBILE OR CARD (ETC.) THE RIGHT PLATFORM/ TECHNOLOGY FOR YOUR SPECIFIC NEEDS? HOW DOES THE ABILITIES OF

EACH PLATFORM ENABLE REACHING WHICH GOALS?

OMNI-CHANNEL INDIVIDUAL MODELLING FOR EACH CUSTOMERS INTERACTION

WITH OMNI-CHANNEL MARKETING THE CUSTOMER IS IN A KIND OF PASSIVE CONTROL. THE COMPANY NEEDS TO LIVE DESIGN AND TAILOR EVERY SINGLE CUSTOMER INTERACTION BASED ON WHAT WE KNOW ABOUT THE CUSTOMER AND WHERE WE WANT THEM TO GO / WHERE THEY WANT TO GO….

MARKETING GOES FROM PLATFORMS TO LEGO BRICKS.

CUSTOMERS AS SIGNALS..

MÅ BEGYNNE Å

UNDERSTANDING CUSTOMERS HAVE GONE FROM DEMOGRAPHICS TO PERSONAS AND THEN CUSTOMER JOURNEYS. TODAY WE SAY THAT CUSTOMERS ARE SIGNALS - WHAT DATA, ACTIVITY OR HISTORY DO WE NEED TO KNOW TO IDENTIFY THEM, UNDERSTAND THEM AND TAILOR THEIR NEXT EXPERIENCE WITH US?

DISCUSS

WHAT WOULD YOUR CUSTOMERS

GAIN FROM INDIVIDUAL TAILORING?

3. MOTIVATIONUNDERSTANDING THE ROLE OF DESIGN IN THE CUSTOMER

EXPERIENCE.

“IF YOU THINK ABOUT SPORTS TECHNOLOGY IN THE PAST, THE CHALLENGE AROUND THIS SPACE WAS THAT THE EXPERIENCE LOOKED A BIT LIKE THIS …

WITH THE EMOTIONAL APPEAL OF AN EKG WITH MICROSOFT EXCEL” - MICHAEL TCHAO, NIKE PLUS -

NIKE PLUS DIDN’T INTRODUCE ANYTHING NEW - BUT THEY DESIGNED IT IN A WAY THAT PEOPLE WHERE MOTIVATED TO TRY, LEARN AND USE.

AESTHETIC DESIGN MOTIVATES PEOPLE TO TRY, LEARN AND CONTINUE USING A PRODUCT. AESTHETICS IS NOT A FLUFFY EMOTIONAL CONCEPT - IT IS SYMMETRY, CLEAN, PLEASANT - BASICALLY WHAT MAKES STUFF SIMPLE FOR YOUR BRAIN TO PROCESS AND UNDERSTAND.

VIDEO LINK: HTTP://YOUTU.BE/XVT0MCUGB58

BAD DESIGN CAN DESTROY ANY GOOD CUSTOMER EXPERIENCE. JUST BECAUSE ITS BEEN TESTED AND PUT ONLINE DOESN’T MEAN THAT THE CUSTOMER IS POSITIVE OR NEGATIVE. IF THE DESIGN IS WRONG, NO MATTER HOW GOOD THE SERVICE - PEOPLE WON’T USE IT.

IF PEOPLE AREN’T BUYING YOUR PRODUCTS ON THEIR MOBILE, IT MIGHT AS WELL BE BAD DESIGN AND CUSTOMER EXPERIENCE HINDERING THEM FROM SHOPPING WHERE THEY WANT.

Radically different thinking: customer experience Dynamic solution, built to test every parameter and finally figure out the big question

DISCUSS

HOW IMPORTANT IS DESIGN FOR MOTIVATING CUSTOMERS?

AND CAN WRONG DESIGN DESTROY A VERY GOOD PRODUCT?

4. PROGRAMMED CUSTOMER

EXPERIENCECUSTOMER RELATIONSHIPS AND INTERACTIONS ARE BECOMING

PROGRAMMED. THIS INCREASES SCALABILITY, DATA GATHERING AND INDIVIDUALISATION.

IT CHANGES THE WAY WE VIEW OUR PURPOSE. HOW WE CREATE VALUE AND WHERE WE SHOULD OPERATE IN ORDER TO CREATE WHICH

VALUE FOR OUR CUSTOMERS.

UBER HAS PROGRAMMED MANY OF ITS CUSTOMER EXPERIENCES - TO GREAT SUCCESS.

PERSONAL FAST

PRECISE

TELENOR (TELECOM OPERATOR) PROVED THAT THE MACHINE (ANALYTICS) IS BETTER AT ANTICIPATING WHAT A CUSTOMER WANT THAN PEOPLE.

BETTER THAN PEOPLE AT

UNDERSTANDING PEOPLE

VIDEO LINK: http://youtu.be/whkFoVxRAGQ

WHAT YOU THINK IS THE PRODUCT ISN’T NECESSARILY WHAT

CUSTOMERS ARE PAYING FOR.

VIDEO LINK: http://youtu.be/8ZtG5DX5FR0

A PROGRAMMED CUSTOMER EXPERIENCE CAN HIDE UNWANTED FEATURES OR PROCESSES - BARRIERS OR FRICTION CUSTOMERS HAVE BECOME ACCUSTOMED TO. BUT WHEN REMOVED (HIDDEN) BECOMES AN OBVIOUS IMPROVEMENT TO THE SERVICE.

“IF THE COMPUTER IS SO SMART, WHY AM I DOING ALL THE WORK?” - SETH GODIN

THE CONCENTRATED

MODEL

WE TRY TO SOLVE PROBLEMS OR CREATE OPPORTUNITIES IN CONCENTRATED PLACES. AS AN EXAMPLE: MUCH OF RESTITUTION, OR PREVENTION WHEN IT COMES TO DISEASE HAPPENS OUTSIDE THE HOSPITAL. STILL A SIGNIFICANT MAJORITY OF INVESTMENTS

IS ALLOCATED INSIDE THE BUILDING. WITH PROGRAMMED CUSTOMER RELATIONSHIPS WE CAN OFFER VALUE WHERE IT CAN GENERATE THE BEST EFFECT - NO MATTER WHERE THAT IS.

VIDEO LINK: http://youtu.be/QbDVpnUqjVs

PROGRAMMED CUSTOMER RELATIONSHIPS GIVES ORGANIZATIONS THE OPPORTUNITY TO LEARN AND RE-LEARN EVERYTHING THEY KNOW ABOUT THEIR CUSTOMERS - TO SHIFT THE PERCEPTION OF WHAT THE PRODUCT IS DOING AND GIVE NEW IDEAS TO

WHAT IT SHOULD BE DOING.

LEARN / RE-LEARN

VIDEO LINK: http://youtu.be/uovijOpB7Jw

DISCUSS

HOW CAN PROGRAMMED

CUSTOMER EXPERIENCES CHANGE

OUR RELATIONSHIPS TO OUR CUSTOMERS AND

THE JOB WE ARE DOING - FOR THEM?

5. IoT AND CUSTOMER EXPERIENCES IN THE

FUTUREA NEW TYPE OF TECHNOLOGY IS SLOWLY MAKING ITS WAY INTO INDUSTRIES AND COMPANIES AND CHANGING THEM

FOR THE THIRD TIME.

Before the advent of modern information technology, products were mechanical and activities in the value

chain were performed using manual, paper processes and verbal communication. The first wave of IT, during the

1960s and 1970s, automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource

planning. (See “How Information Gives You Competitive Advantage,” by Michael Porter and Victor Millar, HBR,

July 1985.) The productivity of activities dramatically increased, in part because huge amounts of new data

could be captured and analyzed in each activity. This led to the standardization of processes across companies—

and raised a dilemma for companies about how to capture IT’s operational benefits while maintaining

distinctive strategies.

HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION

https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

The rise of the internet, with its inexpensive and ubiquitous connectivity, unleashed the second wave of IT-driven transformation, in the 1980s and 1990s (see

Michael Porter’s “Strategy and the Internet,” HBR, March 2001). This enabled coordination and integration

across individual activities; with outside suppliers, channels, and customers; and across geography. It

allowed firms, for example, to closely integrate globally distributed supply chains.

The first two waves gave rise to huge productivity gains and growth across the economy. While the value chain was transformed, however, products themselves were

largely unaffected.

HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION

https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

Now, in the third wave, IT is becoming an integral part of the product itself. Embedded sensors, processors, software, and connectivity in products (in effect,

computers are being put inside products), coupled with a product cloud in which product data is stored and

analyzed and some applications are run, are driving dramatic improvements in product functionality and

performance. Massive amounts of new product-usage data enable many of those improvements.

HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION

https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

I II III

WHAT MAKES SMART, CONNECTED PRODUCTS FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET,

BUT THE CHANGING NATURE OF THE “THINGS”.

HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

2.

ACTIVE OR PASSIVE

COMPANIES CAN DECIDE IF THEY WANT A PASSIVE (WE MOVE THINGS OVER THE COUNTER) OR ACTIVE (WE HELP

THE CUSTOMER SOLVE A JOB) RELATIONSHIP WITH THE CUSTOMER. THIS ENABLES TWO FUNDAMENTALLY

DIFFERENT APPROACHES TO WHAT THE PURPOSE OF THE BUSINESS AND ITS ROLE IS.

IN THE DIGITAL CUSTOMER ECONOMY COMPANIES GET TO CHOOSE WHAT KIND OF BUSINESS THEY ARE IN

…AND IT CAN BE THE DIFFERENCE BETWEEN IF CUSTOMER CARE OR NOT.

DISCUSS

WHAT IS THE DIFFERENCE

BETWEEN PASSIVE AND ACTIVE?

6. FROM CUSTOMER EXPERIENCE TO

CUSTOMER DELIGHTCUSTOMER EXPERIENCE IS A TIRED TERM DESIGNED TO FIT THE

PASSIVE ROLE OF COMPANIES IN THE SHARE HOLDER ECONOMY - IT’S A PAT ON THE BACK AND: “AT LEAST WE TRIED - CUSTOMERS ARE JUST

NOT INTERESTED”.

CUSTOMER DELIGHT IS A FUNDAMENTALLY DIFFERENT APPROACH AFFECTING BOTH CUSTOMERS AND MANAGEMENT.

THE CUSTOMER EXPERIENCE IS: The totality of a customer’s personal interactions with a brand, over time.

- DON PEPPERS -

https://www.linkedin.com/pulse/defining-customer-experience-don-peppers

DON PEPPERS IS TRYING HARD TO MAKE THE NEW WORLD FIT INSIDE THE OLD ONE. HE HAS DONE EXCEPTIONALLY IMPORTANT THINGS FOR THE UNDERSTANDING OF THE CUSTOMER EXPERIENCE - BUT THIS QUOTE DOESN’T MEAN / DO ANYTHING. IT’S JUST A CHECK BOX - “YES WE ARE DOING THAT”. THE ANSWER TO THE CHALLENGES PEOPLE ARE LOOKING FOR LIE MUCH DEEPER AND

REQUIRES A FUNDAMENTAL CHANGE NOT ONLY IN HOW WE THINK - BUT HOW WE ORGANIZE TO DELIVER ON THAT THINKING.

COMPANIES ARE NOT TRYING TO KEEP UP WITH CUSTOMERS - THEY ARE TRYING TO SLOW CUSTOMERS DOWN

THE CURRENT PRACTICE OF MANAGEMENT IS NOT ALIGNED TO A NEW WORLD WHERE CUSTOMERS SUDDENLY BECOME AN IMPORTANT

STRATEGIC ASSET. COMPANIES HAVE BEEN DESIGNED TO KEEP CUSTOMERS OUT. BRAND, DESIGN AND ADVERTISING ARE ALL TOOLS TO SAFELY KEEP CUSTOMERS ON THE OUTSIDE. BUT, IF COMPANIES ARE TO

REAP THE BENEFIT OF DELIGHTING CUSTOMERS - THEY NEED TO RETHINK / REDO THE WAY THEY MANAGE THEIR COMPANY.

HTTP://YOUTU.BE/GCPVNXUVTEA?T=4M32S

CUSTOMER INTERACTIONDESICIONS AND STRATEGIES

EFFICIENCY

AND STANDARDIZATION

THE CURRENT MODEL IS DESIGNED TO ALLOCATE DECISIONS AS FAR AWAY FROM WHERE THEY NEED TO BE MADE AS POSSIBLE. CREATING SLOW ORGANIZATIONS TAKEN HOSTAGE

BY TOP MANAGEMENT.

HTTP://YOUTU.BE/UYMCZFLU-EA?T=17M25S

DISCUSS

WHAT IS MY RESPONSIBILITY AS A MANAGER WHEN IT

COMES TO THE CUSTOMER

EXPERIENCE?

THANK YOU :)HELGE TENNØ

HELGETENNO.COM