Bus r04 beyond digital experiences - driving your customers and employees from engagement to commitment

Drive your customers and employeesFrom engagement…To commitment

Peter Funke, Executive Consultant

#IBMDX15

BUS R04

Beyond exceptional experiences…

© 2015 IBM Corporation

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Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

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Agenda

• Evolution of systems of engagement• ROI of engagement• Demos of “The Goal” – Commitment!

– Example 1 – A “most essential” use case– Example 2 – Customer in typical business

• Next steps

© 2015 IBM Corporation 3


Web Experience Evolution

Standard UX

Single Sign-On

Single Taxonomy/. & Navigation

Common UI

Social Integration

Personalization

Personalized Full-Journey Composite

Mobile Everywhere

Container Evolution

Forms

Content EvolutionCorp. Web Pages

“About” your HR

“About” everything

Integration with“systems of record”

Integration with “systems of Engagement”

Analytics and Heuristics, Journeys

90s 2015


90s 2015

“Human Artifact” Evolution

Pre-HumanErgo-Human

Socio-Human

Psycho-MetricallySocial Human

– Identical factors drive intrinsic (sustainable) satisfaction:

– Net Promoter Score applies equally to both


Employee engagement and customer engagement are similar:

Ryan/Deci, American Psychlogist, Jan. 2000

Enablement

Autonomy

Relatedness

What are we connecting these ubiquitous screens to? Human needs cover a wide spectrum. Aspire high!

© 2015 IBM Corporation 7HR Zone, April 2014

What is the difference? What is the gap? What if we closed the gap?

© 2015 IBM Corporation 8HR Zone, April 2014

Employees Customers

Engagement

Commitment to be a Server to others!

Customer & Employee Management Systems


20+ Years to evolve to the same conclusion!“People are People”

CUSTOMER ENGAGEMENT EMPLOYEE ENGAGEMENT

Customer Satisfaction Index Employee Satisfaction

CES

Employee Engagement

MOTS

1995

2015

Employee Commitment

Personnel/HROwned

BusinessOwnedNPS

OF CUSTOMERNPS

OF EMPLOYEE

® ®

®NPS Net Promoter Score is a trademark of Bain and Company


Net Promoter Score is a trademark of Bain and Company

A single question foretells the future, but how do you manage and make it sustainable?


Millennials demonstrate higher altruism.

“Wealth is…

“A means to help my Community”

“A means to help futuregenerations.”

“A means to pursue what is most important”

BusinessInsider Oct, 2014

AMD asked their sales team how they think they learn best…

Source: Kenexa - Brandon Hall Webinar Why We Needed a Social LMS: The AMD StorySource: Kenexa - Brandon Hall Webinar Why We Needed a Social LMS: The AMD Story

If learning moves us up the pyramid, how do we learn faster?

And so spend on collaborative social portals will increase.

Hypotheses• We are now in age of human-centered systems • Value driven fastest by addressing human needs• Increasingly these are altruistic• Altruism requires easy (but trusted) connection• Firms that most enable altruism will prosper• It will be “expensive”

• e.g . Google 2004 “Do no evil”


Google 2014 “invest in healthcare”

Agenda


– Example 1 – An “essential” use case– Example 2 – Customer in typical business

• Next steps


When Employees Connect/Collaborate The Value Is Multiplied!



Customer Experience & ProfitsCXO’s know Engagement thru increased Connectedness/Collaboration With Customers drives profits!

Outperformers collaborate We need to do it more!

CxO’s Get It! Investments Are Shifting to the Front LineFirst To The Customer, Then To The Employees Who Support Them


Socially active customers are more engaged


66% of consumers left in past year from poor service

costing $5.9TAccenture

Socially-engaged interactions drive 15% more revenueMcKinsey

68% more profit

from a 5% decrease in defectionsBain

Employee Engagement Also Has Big Payback! …the rich get richer!


9% Less

2½ X More

Market leaders in digital enterprise are seeing strong gains in market-share and profits.

Cemex – A first mover in construction logistics:•Reduced time to market on new product by >65% •Accelerated deployment of $113M alternative fuels idea

Omron – Converged disparate sales into one via consolidated “social portal”•Increased responsiveness to leading edge engineering firms•Rich visual sales methods enhanced with easy access to experts •Engaging and compelling training materials for sales team

Asian Paints – Deployed portal + Connections to B2B distributors and dealers•Sensing requirements of diverse consumers as they shift•Foundation for new mobile customer apps


Increased engagement by employees yields impressive financial impact, saving costs while increasing margins and revenues .

Caterpillar: Decreased grievances by 80% and saved $8.8 M/yr in one plant (from absenteeism and overtime)

$2M increase in profit with 34% increase in highly satisfied customers (1 plant)

Molson: Average safety cost per employee was $63 for engaged versus $392 for non-engaged employees.

Increased profit from higher engaged sales teams $2.1M

Intuit: Disengaged employees 5X more likely to leave

IBM: Demonstrated 25% less turnover in A/B test of first year turnover from social portal.


Connections matter most.

60%

80%

100%

120%

140%

"A" Managers "C" Managers

81%

137%Tu

rnov

er P

erce

ntag

e

Kenexa Assessment Classification

Hourly Turnover Percentage

Total Sales per Employee (as % of budget)

8.31

8.358.4

8.6

8

8.2

8.4

8.6

8.8

9

Ove

rall

Sat

isfa

ctio

n

Lowest Low High Highest

Employee Engagement and Guest Satisfaction

14%

19%20%

21%

10%

12%

14%

16%

18%

20%

22%

1st Quartile 2nd Quartile 3rd Quartile 4th Quartile

Engagement and Profit

1.70

11.00

18.07

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Actual Theft Rate per 1000 Hires

Teams run by managers who most closely aligned with the “fit” strategy saw:

•Employee engagement scores increase 6.2%•Turnover rates dropped 43%•Profit per customer increased by 1.2%

Which translated into millions of increased net income!!!

Just one slice of the “optimized employee engagement” will pay the freight for the entire “engagement cake”.


Exceptional Customer Journey(s)

Exceptional Employee Journey(s)

YES!! Therefore:

Total Employees 50000Turnover (ind. Ave) 0.15Recruited/landed 7500Cost per recruit 10700 *

Total cost of recruiting $80,250,000 M 1st year turnover 66%*

Reduction 25%**Total 1st year Savings!! $13,241,250 M * Allied Index survey 2012** Based on IBM A/B test Engaged Employees study

Agenda


– Example 1 - Employee – Example 2 - Customer

• Next steps


Can this we develop a digital model for learning this faster?


Engagement CampaignTemplates (projects)

Deploy Engagement Campaigns

Analyze and measureResults. Promote Winning (outlier) campaigns

Redeploy to other segments

Experiment A/B Testing


Start with the end in mind… the most essential use case.

Can we do even better? How do we persuade employee and customer to consistently raise NPS?


• Commitment/Consistency*

• Social Proof (Vicarious commitment*)

• Authority

• Liking

• Scarcity

• ReciprocityR. Cialdini, Psychology of Persuasion, 1984

Can we do even better? How do we persuade employee and customer to raise NPS?


Cooper and Axel, 1983, Journal of Experimental Social Psychology

Demos

“what might that look like?….”



HealthBest works to continuously improve the health of its members. Here we see Dina, a marketing manager, harvesting a winning campaign and cascading it to heart attack victims.


Analytics make obvious where the successful campaigns are. She harvests from the top/right team.


Konrad has had an enlightening session with his heart recently. He is on the mend.


In the e-Consult with his physician, he sees a very rich “gamified” (almost) view of his diseased heart.


He is asked to step thru commitments at then end of the session.

Here we view these principles applied in a banking environ. The seller is presented leads (from system of record) in context of his virtual team.

The opportunity is surrounded by the people, process, and tools that enable the seller to engage.

But first, train up!

In the most compelling way… rich media with team connected.

Key Learning’s and Conclusions

7 steps to become a

digital enterpris

e

1. Deploy “digital enterprise” governance team

2. Know starting point, then “aim high”. Build an explicit vision that articulates customer and employee journeys (include social in all cases)

3. Rank investment options with common risk/benefit methods

4. Deploy social interaction, “listening” and response (analytics + micro campaign) systems across the entire customer journey

5. Deploy best practice (low risk and scalable) architecture

6. Define and deploy social and analytics policies

7. Attract and retain/engage the best and brightest

Recommendations/Next steps:

Peter FunkeExecutive ConsultantIBM Software [email protected]: +1 919-749-6070


For Additional Information IBM Digital Experience Solutions

http://www-01.ibm.com/software/collaboration/digitalexperience

WebSphere Portal and IBM Web Content Manager Information Center Wikihttp://www-10.lotus.com/ldd/portalwiki.nsf/

IBM Digital Experience Demonstrations: http://www.youtube.com/user/IBMXWebX

• IBM Digital Experience Developerhttp://developer.ibm.com/digexp

IBM Software Business Solutions Cataloghttps://greenhouse.lotus.com/catalog/

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Bus r04 beyond digital experiences - driving your customers and employees from engagement to commitment