DELIVER A PERSONALIZED DIGITAL EXPERIENCEWITH CUSTOMER DATA

Customers engage with companies in a multitude of ways – directly, through websites and brick-and-mortar stores, and indirectly, through social media and other digital outlets. Numerous touchpoints across these channels provide a flood of data that inform companies and enable them to improve the customer experience. These touchpoints form the foundation of today’s digital ecosystem.

Successful companies understand that digital transformation is a business imperative required to thrive in this ecosystem. They invest in new technologies, new strategies, and new psychologies to make optimal use of data in creating personalized digital experiences for their customers. They realize that leveraging customer data through comprehensive analysis – a systematic application of statistics and logic to evaluate data – can reveal the reason, rationale and purpose behind customer behavior to create these unique experiences.

Customers make many stops along their digital journeys through the marketplace. Each journey is prompted by a specific want or need. The sum of all of these interactions is customer experience, and the measure of that experience depends on how well companies master the complex enabling factors propelling that journey. The research and analysis firm Gartner found that organizations who adopt these digital trends and focus on creating better customer experiences reap significant benefits.

COMPANIES THAT PRIORITIZE CUSTOMER EXPERIENCE GENERATE 60% HIGHER PROFITS THAN COMPETITORS

CUSTOMER ENGAGEMENT ENABLING FACTORS

THE COMPLEXITY OF THE NEW DIGITAL ENVIRONMENT

DIGITALCUSTOMERJOURNEY

DEVELOPNEED

PURCHASESHARE, CO-CREATERESEARCH LEARNSELECT FIX RECOMMEND

OMNI-CHANNEL DIGITAL

TOUCHPOINTS

DIGITALBUSINESS

FOUNDATION

DIGITALBUSINESS SUPPORT

DIGITAL & SOCIAL MARKETING COMMS

SEARCH CORPORATE SITE MOBILE APPLICATIONS

CUSTOMER COMMUNITIES

OPEN APIs

E-COMMERCE

DIGITAL BUSINESSLEADERSHIP

DIGITAL BUSINESSARCHITECTURE, SECURITY,

GOVERNANCE

BRANDING ANDCONTENT

CHANGE CHAMPIONS

COMMUNITY MANAGEMENT

BIG DATAANALYTICS

EMPLOYEE COLLABORATIONPLATFORMS

COLLABORATIVEECONOMY SERVICES

CUSTOMER EXPERIENCEMANAGEMENT

DEVELOPER NETWORK,API OPERATIONS, BILLING

While complex, the new digital environment provides a number of enabling factors that can be leveraged to improve customer engagement. Chief experience officers (CXOs) who study and realize the potential in each of these enabling factors understand what it takes for their companies to remain competitive in their market space. These companies must:

Improve processes that expedite changes to digital properties, such as website updates and new mobile or social platforms

Transform website and e-commerce programs to make them mobile-ready

Integrate social, mobile, web, e-commerce, service efforts, and investments to deliver an integrated and frictionless customer experience

Update customer-facing technology systems

Conduct deeper research into customer digital touchpoints

Overhaul customer service to meet the expectations of digital customers

>50% OF ALL CUSTOMER INTERACTIONS OCCUR DURING A MULTI-EVENT, MULTI-CHANNEL JOURNEY.

AND THE NUMBER OFDIGITAL TOUCH POINTS IS GROWING 20% ANNUALLY

SOURCE: McKinsey & Company

BUT EACH INITIATIVE ALSO RAISES MORE QUESTIONS, SUCH AS:

Improving processes that expedite changes to digital properties, such as website updates and new mobile or social platforms

Transforming website and e-commerce programs to make them mobile-ready

Integrating social, mobile, web, e-commerce, service efforts, and investments to deliver an integrated and frictionless customer experience

Updating customer-facing technology systems

Deeper research into customer digital touchpoints

Overhauling customer service to meet the expectations of digital customers

Which processes?How do I improve them?

Which programs do our customers desire to have on their mobile devices?

How should I approach integration?Which programs should we use?

What systems should I prioritize first?

How effective are our touchpoints?Do we need more of them?

What are my customers’ perceptions of their interactions with my company?

Enterprise-level digital transformation is about changing business from the outside in. Digital transformation, as defined by trends analyst Altimeter, is “the realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touch point in the customer experience lifecycle.”

Businesses must understand their customers and use insights to generate new ideas, as well as encourage their teams to be more empathetic to customer situations. As this illustration shows, touchpoints, customer journeys and brand perceptions existing outside the organization are great for driving and generating insight. Leading organizations use that insight to create smarter and more informed teams, better processes, and better systems that generate improved customer experiences.

By using insight to create better experiences, businesses achieve customer experience maturity – how an organization uses customer insights to create, deliver and sustain differentiating experiences.

Comprehensive analysis of customer-generated data improves understanding of customer behavior and informs transformative thinking. This empowers companies to:

• Prioritize digital transformation activities

• Predict customer actions

• Optimize customer experiences

• Automate analytical decision-making

Market researchers created a scale for estimating how much analytics capability a company needs to advance its digital transformation initiative. Gartner’s “analytics value escalator” shows the importance of a broad-based analytics capability in optimizing customer experiences:

At every step along the digital customer journey, analytics – whether descriptive, diagnostic, predictive or prescriptive – are essential. Companies with high “data maturity” make smart use of their vast data assets by applying collaborative approaches to managing those assets.

Automate optimaldecision-making

Prioritize DT activities

Predict customer actions

Optimize your customer experience

Understand your customers

ANALYTIC VALUE ESCALATOR

DIFFICULTY

What happened?

DescriptiveAnalytics

Why did it happen?

DiagnosticAnalytics

What will happen?

PredictiveAnalytics

How can we make it happen?

PrescriptiveAnalytics

VALU

E

INFORMATION

Hindsight

Insight

ForesightOPTIMIZATION

20%

JOURNEY-LED TRANSFORMATIONSIMPROVE CUSTOMER SATISFACTION

SOURCE: Gartner

SOURCE: McKinsey & Company

Success Story:

HEALTH INSURANCE COMPANYA health insurance company with more than 13 million members in the United States, wanted a single, consumer-centric online experience for all of its portals. Perficient’s solution resulted in an integrated, aligned experience for its core sites and a variety of products and sub-brands. The consolidation reduced time to market and improved the overall brand. The client expects its cost savings to increase substantially.

Success Story:

ENERGY COMPANYA leader in designing and implementing customized electric and natural gas energy efficiency programs for utility companies wanted to streamline its energy-rebate process with a portal capable of connecting customers to approved contractors. Perficient created a proprietary online portal that allows easy access to efficiency programs and lets customers submit applications, find contractors, and check a project’s status, all with fewer errors.

Success Story:

RETAILERA leading Canadian retailer suffered from declining business due to a changing marketplace and aging e-commerce platform. Perficient’s solution, a high-performance omni-channel platform, provides customers with an integrated shopping experience, sophisticated search, and targeted microsites for focused shopping experiences. Customers also benefit from an integrated supply chain that provides timely inventory visibility across the entire distribution network.

THE FOUR LEVELS OF DATA MATURITY EXPLAINED

1UNCOMMITTED These companies have not prioritized investment or discussed the benefits of a data-driven transformation. They may not even know where to start.

2ENGAGED These companies have started implementing data management and analytics solutions but reside in the early stages.

3DYNAMIC These companies are purposeful in how they address data management and analytics. They may not have everything working, but these strategies are aligned to business goals and implemented throughout the organization.

4DIFFERENTIATED These companies, such as Amazon and Zappos, leverage data-driven transformation to achieve significant competitive advantages.

In our guide, Align Business Data and Analytics for Digital Transformation, we showed how companies can assess their data maturity and improve their thinking about data in ways that enhance customer experiences and grow business. Within each of the four levels of data maturity defined by Perficient, there lies a specific alignment of people, processes, and technology:

CREATING AN ANALYTICS ‘CENTER OF EXCELLENCE’

Essential to that alignment is an analytics “center of excellence,” or CoE, that can drive analytics into crucial business processes and increase business enablement. The roles responsible for advancing those capabilities, however, are spread throughout the company:

A CoE “organization” incorporating multiple departments, roles, and business processes ensures that business-focused analytics become pervasive within a company. Through this organization, many voices and views are heard, specific analytical skills are highlighted, and managers become knowledgeable about analytics and understand best practices regarding their use.

The organization is evolutionary. Skills and talents are realized, and the people who have them – represented in this chart by dots – are redirected over time or they are acquired. An internal steering committee can assess talents and resources company-wide and move them to where they achieve maximum benefit.

BUSINESS TEAMS ROLE EXAMPLE ACTIVITIES

INFORMATIONTECHNOLOGY TEAMS

Drive utilization within business processess

• Analytical skill development

• Business analytical best practices

• Model management

• Enable users to more easily find and access data

• Create analytical workbenches

• Automate model management

Increase BusinessEnablement

CoE CoE CoE CoE

Steering Committee

Steering Committee

Standards and Best Practices

CoE

Dispersed andUn-Coordinated

Centralized Steering& Virtual CoE

Centralized Steering& Decentralized CoE

Centralized Steering& CoE

Steering Committee

Standards and Best Practices

CoE

HOW TO GET STARTED

Develop actionable insights that frame current and needed

capabilities

Conduct stakeholder interviews

Conduct primary research

Find important customer journeys to create

perspective

Conduct maturity and opportunity assessments

Identify and align needed capabilities to

primary initiatives

Define and scope core initiatives

Assess long-term use of analytics

Build governance and identity frameworks

Draft and codify a CoE charter

Prioritize initiatives based on effort and

impact to guide implementation

Draw up a road map and rollout strategy

Identify quick wins versus long-term

initiatives

Perform investment and resource analysis

Formulate work stream planning

Formulate change management planning

CONTEXT AND CAPABILITY INSIGHT

FUTURE-STATEFORMULATION

ROAD MAP AND ROLLOUT PLANNING

01 02 03

An honest self-assessment of data analytics capabilities is important before any company can effectively leverage customer data. These steps, in this order, can send a company down the right path:

WHAT

HOW

Let Perficient help you on your digital transformation journey:

DOWNLOAD GUIDES AND ADDITIONAL DIGITAL TRANSFORMATION RESOURCES AT:perficient.com/digital-transformation

Perficient is a leading technology and management consulting firm serving Global 2000 and enterprise customers throughout North America. We partner with the world’s leading technology

platform providers to deliver digital experience, business optimization, and industry solutions that enable clients to improve productivity and competitiveness; strengthen relationships with

customers, suppliers and partners; and reduce costs.

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ABOUT PERFICIENT Perficient is the leading digital transformation consulting firm serving Global 2000® and enterprise customers throughout North America. With unparalleled information technology, management consulting and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution and value with outstanding digital experience, business optimization and industry solutions.

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