The wider implications of implementing customer centricity in 2014

A short introduction www.thenextten.org

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Customer Centricity Implementation Success

Yet – many of these companies are not delivering effective results

• 55% of companies have started customer centricity initiatives but less than 10% truly succeed (Temkin say 7%)

• 70% of Business Process Management deployments with customer theoretically at the centre are judged too slow, too costly and miss critical opportunity.(Variety of inputs) 

• Only 9% of organisations have the tools in place to react quickly to changes in customer behaviour! (NextTen)

By 2020 Customer Experience will overtake price and product as the key brand differentiator

The majority of companies who have started customer centricity initiatives (55% approx.) focus on:

• Customer understanding via survey based initiatives around Voice of Customer

• Using Customer feedback to implement change initiatives• Customer Journey Mapping to understand the interactions and to create

improvements in customer experience

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It is accepted that Customer Experience Leaders Outperform the Market….

Almost every company that dominates its market has customer experience as a differentiator.

MOST COMPANIES ARE SIMPLY NOT GOING FAR ENOUGH!!

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Traditional Practice Customer Centricity Leaders

Change Focus Symptom, defect, painFocus = “cheaper, faster, better”

Point of Failure.Cause of Work

Successful Customer Outcome

Processes Complex and output alignedInsufficient customer focus

Concept of customer internal & external

Appropriately SimpleEvery process aligned to external

customer outcome

Measures of Success Internal and related to problem Corporate and Outcome Success Measures

Customer specific KPIsCustomer/process/employee KPIs aligned

Change Methods Slow, complex, reductionist focus Imposed change fosters resistance

Rapid, domain of all, inclusiveMove to outcome not problem focus

People ControlledCore competency focussed

Empowered & MotivatedCustomer Outcome focus

Structure Hierarchy/Functional

“Command & control”

TeamInfluence over power

Systems PrescriptiveFeature/function/technology driven

AdaptiveProcess & Outcome driven

Measurement Activities Outcomes

Role of Customer End of chainSegmented, Outside Organisation

Inclusive i.e. domain of allIndividual, Outcome Focus

Preparing for the Future Extrapolating the past Extending the Customer Experience

Innovation Domain of the “gifted” few“Hit and Miss” and often no focus

Expanding the Customer ExperiencePotentially the domain of all

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The wider implementation of customer centricity is the “macro” level view of how an organisation should operate, summarised in the previous slide

Level 1 Customer Centricity:

a) They see CEM as the measurement of customer experience and the identification of initiatives to improve it. This is customer centricity at a micro level and just scratching the surface!b) They have created a CEM function in the organisation but not created the empowerment of that silo to make a significant difference

Level 4 Customer Centricity:

Customer Experience Management in 2014 firstly creates an understanding of the customer (preferences/wants/needs) that goes further than the customer themselves are aware of and secondly aligns everything an organisation does to deliver against that enhanced vision. This challenges many traditional business norms and shows how we move from “Best Practice” to “Next Practice”.

Customer Experience Management moving from microlevel to macro level vision………

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