Overcoming Changing Communications Behavior

Overcoming Changing Communications BehaviorHow businesses should respond in an age of rapid transformation

June 2017

CCM/CX KEYNOTE

Kaspar Roos, Founder & CEO

About Kaspar RoosConsultant / analyst in CCM/CX

2© Aspire, 2017

linkedin.com/in/kasparroos

@kasparroos

[email protected]

+44 79 619 30 752

2008• Director at InfoTrends• Managing worldwide CCM Advisory

Service

2015• Founder of Aspire• London-based CCM strategy firm

We help companies succeed in the fast-changing world of customer communications

Key Trends

3

Technology Continues to Accelerate

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Forcing companies to change fast

0

200

400

600

800

1000

1200

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110

Number of Years To Reach 1 Billion Users

Smart Phones Internet Mobile Phones Television Telephone

1 BilllionUsers

1104922148

“Digital is the main

reason just over half of

the companies on the

Fortune 500 have

disappeared since the

year 2000”Pierre Nanterme – Accenture CEO

“Disruption happens gradually and then suddenly”

© Aspire, 2017

Hemingway (on bankruptcy)

Mobile + Voice + ChatBots

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Voice will be the platform of the future

As speech recognition accuracy goes from say 95% to 99%, all of us in the room will go from barely using it today to using it all the time. Most people underestimate the difference between 95% and 99% accuracy –99% is a game changer... ANDREW NG, CHIEF SCIENTIST AT BAIDU

Source: Mary Meeker, 2016

Broad Range of Applications

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Home automation, e-commerce, customer service

Pitney Bowes demoing its conversational UI technology, San Francisco, Feb. 2017

8

Messaging Networks Well Positioned for ImpactMessaging Networks now processing more than 60Bn messages a day

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Leading CCM vendors starting to offer integration with Messaging Networks

Most popular Messaging App by Country (2016)

Source: SimilarWeb, 2016Forbes Article

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ChatBots – Driven by AI & Mobile Messaging

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Rapid increase in natural language processing (either typed or spoken)

• European Telecom Company

• Chat Bot for services optimization

• 82% of interactions could be automated

• Good conversions on new sales & upsell

Source: Accenture, 2017

Mobile Pay Is Coming… In the U.S. too

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Mobile Pay set for good growth

• UK has high adoption of contactless terminals – plus highly concentrated banking & retail sector

• All major mobile phone suppliers supporting NFC-type payments (ApplePay, SamsungPay, AndroidPay)

• Apple Pay has higher spending limit than contactless credit cards

• Tokenized transactions combined with geo-location insights allow payment services providers to create sophisticated security layers

2.2% of all UK card spend is now contactless

Wearables

12

Connecting Wearables with Payment Services

Source: kerv.com Source: bPay, Barclaycard

Ring Fob Wristband Sticker

Technology Acceleration Leads To Fragmentation

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Technology reduces entry barriers, increases competition, forces pricing down

Retail Energy Financial Services Insurance

• Rapid rise in fintech start-ups

o Peer-to-peer lending

o Peer-to-peer currency exchange

o Low-cost payment services

• Differentiation in channel and alignment with customer values (i.e. clean energy, SmartMetertechnology)

• Solar/off-grid generation

• New entrants

• New insurancetechentrants will shake up industry

o Peer-to-peer insurance

o AI-based underwriting

• Rise of online marketplaces leads to increase in product proliferation

• Declining store visits and spent time in shop leads to price pressure

InsuranceTech Is Coming…

14© Aspire, 2017

High Growth In InsuranceTech Start-Ups

Trov – mobile-based property & casualty insurance

Trov – How It Works (1/5)

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“Now, faced with a combination of

increased complexity and hyper-

specialization, we are at a point

where the desire for purposeful

engagement is becoming a major

issue.”

Klaus Schwab – founder & CEO of World Economic Forum

© Aspire, 2017

Communications Are Becoming Integrated

Customer journey: pre-purchase process Customer journey: post-purchase process Business objectives

Data-driven, personalised, multi-channel communications

Source: InfoTrends, 2015

Evaluate

Acquire Engage

Advocate

Find

Learn

Buy/Subscribe

Engage

Consume

Retain

© Aspire, 2017

Omni-Channel Requires Overarching StrategyEvery touch needs to add value

© Aspire, 2017

Customer Lifetime Value

Time

Lead Generation

Lead Nurturing

Conversion Offer

Welcome Kits

ProspectInactive

CustomerActive Customer Lost Customer

Customer Communications Interactions

Onboarding

Statements

Newsletter / Emails

Upsell / Cross Sell

Loyalty Offers

Reminders / Notifications

Renewal Offers

Lost Customer

Returned Customer

Contact CenterCalls

23

Marketers Are Getting More And More Interested In CCMBoth visible in Europe and the United States

© Aspire, 2017

“A few years ago I would only talk to the purchasing people, maybe 5 people max. I saw them again a few weeks ago, now they had 25 people in the room. Different departments, different needs. It’s customer service, marketing; purchasing is still there but not leading. They realize they need to find new ways of communicating.”(Sweden)

“Talking about CCM and CX creates a lot of pull from CXOs and CMOs. “(United States)

What Services Providers Are Saying….

“If you’d asked me 5 years ago, I would have said that CCM is very low on the priority list of a CMO. Now, we’re seeing a clear shift. If you talk today with a CMO about customer journey mapping, using the whole journey to build better conversations with your customers, you will definitely get their attention”(U.K.)

How to Respond

Counter The Threat…QuickenLoans pioneering instant mortgage approval forcing incumbents to respond

25© Aspire, 2017

Communicate According to Channels of ChoiceWay of least resistance; expect older generations to shift to Mobile, Social too

26© Aspire, 2017 Source: Mary Meeker, 2016

Turn New Legislation Into Business OpportunitiesGDPR is impacting privacy laws in Europe; will apply to U.S. multi-nationals too

27© Aspire, 2017

Source: IBM

Consent forms will (likely) change in 2018 Why not applying same concept to channel preferences?

Improve Customer Experience

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CX needs to be defined in terms of ease, effectiveness, and emotions

Ease Effectiveness Emotions

Easy to use interactions

Relevant & efficient interactions

Empathy in interactions

Based on Forrester’s 3E’s of Customer Engagement

Personalized Videos Great Tool For Better CXGreat case study from Geoffrey Insurance – mid-size UK insurance company

29Empathy Ease Effectiveness

Recommendations

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How to be prepared for new technologies and change?

1. Modernize your CCM

2. Enable People; Put customers AND employees in control

3. Get Visibility into the overall Customer Journey

Characteristics of a Modern CCM system

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Modern systems are data, logic, format, and channel agnostic

Data Agnostic

• Support any data format

Logic Agnostic

• Business logic separated from design• Content pulled from central location

Presentation Agnostic

• Define output by function: message, document, webpage

Channel Agnostic

• Optimize output by channel, i.e. phone, tablet, e-mail, etc.

Whatever new channel or technology emerges, modern systems allow you to adapt quickly and without disruption to the business

Become Digital First

32© Aspire, 2017

Digital-first has become an essential capability

By 2019 demand for digital-related services will account for more than 70% of all external services growth - IDC

Fast,easyHTML5manipulationforexperienceenrichment

DesignInterface

DesignStudio:ICP

EngageOne Digital Designer

Enabling Business Users to Own CommunicationsBusiness user enablement crucial in reducing cycle time and improving CX

33© Aspire, 2017

• Setup easy approval workflow processes, including mobile-based approving

• Ensure that business users are in control of content changes

• Drive simple content changes through online editors

• Integrate natively with salesforce or business core systems

EngageOne Interactive

Enabling Customers to Access Communications 24/7Customers want to be in control

34© Aspire, 2017

• Use self-service solutions to turn customers into long-lasting, profitable relationships

• Allow customers to access all of their customer communications

• Use interactive communications –either through personalized, interactive videos or by sending dynamic content

EngageOne Digital Self Service

Linking Communications With Customer JourneyCreating performance measures, data analytics, visualizations

35© Aspire, 2017

Pitney Bowes - Transforming for a Successful FuturePlease read my article on LinkedIn; PB is a safe bet for the future

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• Change in top management

• More streamlined software development process

• Betting on the right trends for the future

o CCM / CXo Data Analyticso Location Intelligenceo Identification Softwareo Retail / shipping softwareo Payment services

https://www.linkedin.com/pulse/latest-pitney-bowes-transformation-data-driven-future-kaspar-roos

https://www.linkedin.com/pulse/latest-pitney-bowes-transformation-data-driven-future-kaspar-roos

Questions

Any Questions?

Thank You!

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