2013 - CSC Customer Intimacy Barometer - Convergence between on and off-line (English)

ConvergenCe in Customer intimaCy at the Crossroads of online and offlineCustomer IntImaCy Barometer 2013

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Opinions expressed by contributors are their own. Reproduction in whole or in

part without written permission is strictly prohibited.

© Copyright CSC 2013. All rights reserved.

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CsC in touCh With Current trends

Within the framework of its I.D.E.A.S program (Inspiration, Debate, Executive, Annual Surveys). CSC carries out a number of “barometers” every year to analyze trends and perspectives from key roles within the boardroom (human resources, finance, IT, procurement…) at the European or global level. Each of these studies, carried out with the assistance of independent survey institutions (IFOP and TNS Sofres), involve the participation of hundreds of managers from large businesses and public administrations. The results of these studies are revealed during high level events, organized in different cities (Paris, Madrid, Barcelona, Milan, Brussels, Lisbon, Washington D.C. , etc.), and are also relayed by partners from the media and from academia (universities and elite business schools).

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Customer IntImaCy Barometer 2013ConvergenCe in Customer intimaCy at the Crossroads of online and offline

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taBLe oF Contents

summary11 PAgE 9

PAgE 23

testimonials

analysis

Customer intimaCy as a differentiation strategy

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PAgE 37

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results 12

38. LAuRENT DEChAux. Vice President - Oracle Applications40. OLIVIER DERRIEN. Vice President Southern Europe - Salesforce.com42. ARNAuD DESChAMPS. Managing Director - Nespresso France44. CyRILLE gIRAuDAT. Marketing Director - PMU46. FRANCk hEIMBuRgER. Distribution Director, Employee Network - AXA48. STéPhANE JEANJEAN. Distribution Director - CA Services. Groupe Crédit Agricole50. WILLIAM kOEBERLé. CEO - Groupe Marionnaud52. xAVIER QuéRAT-héMENT. Quality Director - Groupe La Poste54. MOhAMED SOLTANI. Corporate Marketing Strategy Director EMEA - Schneider Electric56. FRANCk SuhIT. Marketing Director - Lyreco58. guyLèNE TARRAzI-PRAuLT. Customer Relationship & Satisfaction Director - Microsoft France60. NICOLAS TERRASSE. Business Solution Manager - SAS62. RAPhAëL WEILER. Customer Relationship Manager - UPSA64. DIDIER zOuBEïDI. Marketing Director - Edenred France

68. ChRISTOPhE AMOuROux. Senior Partner, CRM and Customer Intimacy - CSC70. PIERRE kALFON. Partner, CRM and Customer Intimacy - CSC

Customer IntImaCy Barometer 2013

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the Customer intimaCy Barometer is a survey Carried out for the third ConseCutive year By CsC, in partnership With tns sofres. it is Based on a quantitative analysis of the trends and outlook for marketing, sales, distriBution and Customer relationship management departments in a sample of major european Corporations.

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Customer imtimaCy BarometerA EuropEAn study

APPrOACh ANd MEthOdOLOGy

The third edition of the Customer Intimacy Barometer is based on a partnership with the TNS Sofres market research institute, and a survey carried out among a sample of marketing, sales, distribution and customer relationship management directors within European corporations employing over 500 people. These directors were polled regarding the position, concerns, performance and outlook for the marketing, sales, distribution and customer relationship management functions.

INtErvIEw MEthOd

The questionnaire was designed by the TNS Sofres market research institute according to the CAWI (Computer-Assisted Web Interviewing) method, in December 2012.

tArGEt ANd SAMPLE

Private and semi-public enterprises: - employing a minimum of 500 people, - located in Belgium, France, germany, Italy, Spain and the

united kingdom.

102 managers were interviewed (without detailed objectives in terms of activity sector).They represent the following target groups: - marketing, sales, distribution or customer relationship

manager or director.

ultimately, the sample was corrected to ensure its representativeness compared to the population of European corporations in the activity sectors targeted.

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summary1 CuSTOMER INTIMACy BAROMETER 2013

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CUStOMEr bEhAvIOUr IS OFtEN AhEAd OF thE SyStEMS FOr INtErACtION OFFErEd by OrGANISAtIONS

In a financial, economic and social environment which has further deteriorated in 2012, businesses are facing a new set of challenges. Their objectives: maintain their margins, retain their customers and differentiate themselves from their competitors. Innovation in terms of products and services is no longer sufficient at a time when growth is stagnant and optimisation programmes continue to be set in motion with an increasingly short-term perspective. The time horizon is being reduced, both in terms of the expectations of financial markets (looking for profitability) and the winning of orders (the lengthening of sales cycles and the difficulty of generating procurement flows that are smooth over time).

Customers, whether private or professional, are experiencing an erosion of their purchasing power on the one hand, and a drop in their investment capability on the other. More than ever before, they integrate the price on the label into their purchase decisions, thus pulling the whole economy down in a vicious cycle. In addition to these developments in buyer behaviour, we also observe that customers are subject to various types of exogenous phenomena which shape their behaviour and consumption habits in a lasting manner:

• a major increase in the number of products and services on offer, the scope, pricing policy and terms and conditions of use of which are often difficult to interpret. Confronted with low cost offerings (initially in segments such as transport and distribution), loyalty or win-back offers, offers reserved for specific segments, private sales, etc., customers

are finding it harder to make sense of it all. Brands then become the victims of their own traps: marketing techniques designed to propagate demand transform into a social phenomenon of unbridled consumption;• a great hunger for new means to create relationships with brands. This is the direct consequence of the multichannel strategies in which the brands have invested heavily in the course of the past few years. As a result, the greater integration and increased fluidity of movement between channels (mainly physical networks, call centres and the internet) has led to an over-consumption of interaction, often costly and not always profitable or efficient, combined with a lack of mastery of those same channels on behalf of businesses;• the consequences of recent technological advances (the growing penetration and usage rates of smartphones and tablets, the digitalisation of communication, etc.), and the development of less predictable

summAry

2013 Customer intimaCy Barometer ChAnnEls, mobility, nEw dEviCEs: how to AdApt thE CustomEr intimACy strAtEgy to thEsE nEw trEnds And ConsumEr bEhAviours?

ConvergenCe in Customer intimaCy at the Crossroads of online and offline

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thE 2013 CUStOMEr INtIMACy bArOMEtEr, PrOdUCEd by CSC IN COOPErAtION wIth tNS SOFrES, hIGhLIGhtS thE NEEd tO ENSUrE thE CONvErGENCE OF OFFLINE AN ONLINE tO thE bENEFIt OF AN OvErALL CUStOMEr EXPErIENCE thAt IS GENUINELy dIFFErENtIAtING. thIS NEw trENd IS FOrCING LEAdErS tO rEthINk thE rOLE thAt EvEry ChANNEL CAN – ANd MUSt – PLAy IN thE MIX OF INtErACtIONS.

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omni-channel behaviours are all having a major impact on the often too linear approach businesses take to the customer experience. Indeed, new devices favour mobility by making it accessible to the greatest number of people at ever lower cost, while generating great expectations in terms of instantaneity and immediacy. When looking for information, getting answers to specific questions or concluding transactions, customers – both private and professional – no longer have time to wait. According to CSC, this has two consequences:

- These trends, driven by the providers of mobile technologies and telecom operators, are continuously improving the usability and smoothness of the navigation offered by these devices. The use thereof becomes increasingly simple, and correspondingly creates greater expectations in terms of receiving an instant response from brands. That in turn causes disruption within customer-centric organisations, particularly in terms of the availability and interoperability of channels for interaction;

- This increased fluidity and simplicity make the closing of a sale more complex, whether on a website, in a store or on a customer site. They offer potential buyers myriad possibilities to look for better and cheaper offers elsewhere – without necessarily resulting in a sale. Paradoxically, simplicity can be a cause of constant frantic zapping, which can be counterproductive in terms of sales.

In 2013, a breaking away from traditional behaviours related to information seeking and purchasing behaviour has also been observed. The mobility situation no longer acts as a brake on consumption, but rather favours multitasking. According to CSC, this is the end of the unity of time, place and action for consumers who are able to simultaneously seek information and buy, wherever they are, at any time. This heralds the end of classical scenario planning of consumer behaviour in the deterministic sense.

Finally, a last observation regarding these developments in consumer behaviour: greater "intelligence" on behalf of consumers in their relationships with brands, even if their enthusiasm for the social media seems to set the pace (stabilisation of the hype cycleTM). The upshot: buyers that are better informed (whether professional or private), who

Main lesson from the 2013

Customer Intimacy

barometer: the need to consider the role of each

channel in the relationship

between customer

behaviour and choice of

offerings.

expect greater responsibility and respect from brands (without necessarily knowing what to do with it at the end of the day), and who expect the information they provide to be put to better use, so they are treated in a personalised manner but not exposed to a deluge of communication.

To summarise, an explosion of offerings, multichannel strategies that offer too many non-commercial alternatives to customers, increasingly mobile customers who are better informed but less inclined to spend, and for whom the boundary between professional and private life has become narrower. given that these new channels are not substitutes for the traditional ones but rather complementary to them in a manner different from any that businesses were previously familiar with, it’s important to give enough consideration to the role of each channel in the relationship between customer behaviour and choice of offerings, which has been totally disrupted. This is necessary in order to ensure the convergence of cost control, excellence of the customer experience, limiting of “exit routes” for customers and identification with the model and values of the brand.

three evoLutIons For organIsatIons to take Into aCCount: an expLosIon In the numBer oF produCt and servICe oFFerIngs, a strong desIre For new ways to Create reLatIonshIps, and new devICes that Favour moBILIty

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OFtEN OvErLy LINEAr MOdELLING OF SEGMENtS (b-tO-b) ANd CUStOMEr EXPErIENCES (b-tO-C)]

In a B-to-C or B-to-B environment, organisations have invested heavily in recent years to put in place multichannel systems meant to meet the expectations of their customers, in particular in terms of their need for autonomy, coherence and immediacy.

Initially, multichannel approaches taken by businesses aimed to make available to customers and prospects a series of tools for interaction that would enable them to progress through the steps of the purchase experience together, according to their needs. This period corresponded to that of the development of the internet in the 2000s.

The result was a mixture of systems, often insufficiently coherent among themselves. First among these was the internet silo, traditionally built up alongside existing channels such as a sales force, physical networks or customer relationship management centres (with the exception of the pure internet players).

Figure 1: simplified multichannel approach (from the 2000s). Channels built up in silos, often independent

In responding only partially to the needs of customers, these systems soon revealed their limits in terms of the coherence of the information provided, and their level of interoperability and ability to manage interruptible sales processes. For example, it not being possible for a customer to apply for a loan online and to complete the application in a bank branch.

After 2010 came the emergence of vast transformation programmes designed to enable the existing multichannel systems to become cross-channel. These investments

were considered to be a priority over the course of the past two years by 28 percent of the organisations surveyed (compared to 19 percent in 2012), and these systems were characterised by:

• a decoupling of front and mid/back office systems to ensure greater fluidity of interaction, independent of the way in which offerings are effectively produced and delivered;• an interoperability of customer processes which makes it possible to ensure the fluidity of all interactions, regardless of

the channel (knowing that 55 percent of those polled feel major investments are still needed in this area);• the capability to interrupt an interaction (for example, the creation of a cost estimate) and to restart it in the same channel or in another one, while still recovering all the information already provided;• a tendency to make better use of information collected in real time in order to adapt every element of the mix in function of the data collected about every customer, to better manage the distribution thereof.

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Figure 2 : simplified cross-channel approach (after 2010). Interoperable channels, interruptible processes supporting highly linear customer experiences

These programmes have had a major impact in enabling greater coherence in the operating of the so-called traditional channels. More recent behavioural developments on the one hand, and the crisis on the other, can lead to the risk that the reach of these investments is limited. Indeed, these systems were often designed based on the assumption that customer experiences (in b-to-C) and the expectations of each customer segment (in b-to-b) were linear and homogeneous. As a result, at every step in the customer experience, or in every customer segment, a single and rational experience – and thus major channel – was dedicated to a precise task.

however, the social and mobile revolutions, the possibilities for interaction offered anytime and everywhere, and the smoothness of these customer interfaces have increased the risk for businesses that customer interactions are not ultimately converted into a transaction or a purchase proportional to the sums invested, and do not respond favourably to the questions: will I get a "bargain"? Is the offering proposed the one which is best suited to my real need?Will another website offer me the product

at a cheaper price? Did the salesperson understand my needs correctly? If I need after-sales service, will I be treated in the way which I expect?

Faced with these evolutions in behaviour and habits, it is up to brands to identify and interpret them, and to provide a valid response. As the 2013 Customer Intimacy Barometer illustrates, even if 34 percent of the organisations polled (-7 points compared to 2012) consider customer intimacy to be a major strategic aspect of differentiation, 46 percent (+13 points compared to 2012) consider operational excellence a priority. unlike in 2012, it is no longer so much the quality of the offering that is important, but rather the ability to excel in terms of customer interaction. That makes it possible to make the customer experience special again by ensuring the coherence between operational and relationship aspects across all of the channels for contact, throughout all the steps of the customer experience, thus favouring increased profitability of a perhaps smaller number of loyal customers (true for 35 percent of those interviewed, +12 points compared to 2012).

CUStOMEr EXPErIENCES (IN b-tO-C) ANd EXPECtAtIONS FrOM EvEry CUStOMEr SEGMENt (IN b-tO-b) whICh ArE NO LONGEr LINEAr NOr hOMOGENEOUS.

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Customers are now at the centre of a triptych: channel,

device and location

thE hOLy GrAIL OF CONvErGENCE OF thE CUStOMEr EXPErIENCE

The majority of businesses have applied traditional modes of thinking to innovative technologies and channels. however, these new devices have not only introduced new ways of interacting during certain steps of well-defined processes: they have profoundly modified the processes

themselves. The new customer, at the convergence of a place, a device and a channel, manifests a behaviour in which the potential for disruption is very high and in which interaction with and beyond the business has greatly increased.

Figure 3: the customer at the centre of convergence (channel / device / location)

HA

BIT

HABITHABIT

deviCe

ChannelloCation

•PC•Smartphones / NFC•Interactive terminal•Tablet•Payment card•TV•Etc.

•Public place•Private domain (home, friends)•Professional domain (office)•In motion•Point of sale•Customer site•Etc.

•Sales forces•Physical network•Website •Call centre•Email, chat, video•Social media•Etc.

Customer

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lia’s Customer experienCe

CONSUMEr bEhAvIOUr IMPOSEd UPON thE bUSINESS

CONSUMEr bEhAvIOUr StEErEd by thE bUSINESS

Lia, fashion enthusiast, is looking for a new pair of shoes on the internet, during the sales.

Lia first searches the internet, but the brand she’s crazy about isn’t available in a size 38, or only on an internet site she doesn’t know and doesn’t really trust

the adorable pair of shoes – undiscounted – is still in the store. Lia sees a 2d barcode close to the display, scans it and gets access to the opinions of the buyers of the brand via Facebook: all very positive with in addition some fashion tips! she signs up for the Facebook application available on the “top tips” page.

Impressed, she asks the sales girl to try them on.

Lia notices that in this brand a size 38 is too large for her. and there’s no size 37 in stock. too bad!

the sales girl suggests that she orders a size 37 via the brand’s website and have it delivered. Lia finds it tempting, but finds this pair a bit expensive. she says she’ll think about it. the sales girl, equipped with a tablet, asks for her email address and her preferences so she can send her suggestions and promotional offers (Lia says that as well as being a fashionista she also loves dubstep).

once at home, Lia goes online and finds an email from the Facebook application she signed up for.

she reads her email and notices that it contains a coupon for a eur 15 discount with a direct link to the website of the brand.

Lia decides to order. when the time comes to pay, the website proposes to deliver the shoes to her or to the store (free of charge). Lia accepts to go to the store (it will still save her eur 5).

two days later, the day before the party, Lia goes to the store, opens the box to try on the shoes and – surprise! – inside she finds a coupon for a partner offer from a major online music website

as she leaves the store, she posts the following message on Facebook: "It’s done, I bought my shoes at shoesclicksandmortar.com, that shop’s the best!"

Lia first searches the internet, but the brand she’s crazy about isn’t available in a size 38, or only on an internet site she doesn’t know and doesn’t really trust.

while walking in town, Lia comes across an adorable pair of shoes (albeit different from the ones she had in mind). obviously, this model is not on sale. Lia goes into the store, takes a picture of the object of her desire with her smartphone and posts it on Facebook, accompanied by the message: "they’re great, but at eur 120 I think they’re a bit expensive. kissss."

Lia still asks the sales girl to try them on.

while she’s been looking in the mirror, three of her friends have sent her comments. one of them catches her attention: "Check out fabshoes.com, they’re on sale."

Lia notices that in this brand her size is a 37. she thanks the sales girl, tells her she’ll think about it, and leaves the store.

once back home, Lia goes online, determined to find her pair of shoes on fabshoes.com. the homepage of her browser displays an ad that catches her attention, for cheapshoes.com. she clicks and notices that the brand she’s crazy about is available, in a size 38, and on sale.

at the moment she wants to check out with her basket, the estimated time for delivery is three weeks. a bit long when vanessa’s party is on saturday! Fortunately, the site offers a toll-free number for customer service. Lia calls and after five minutes ("all our advisers are busy, the estimated waiting time is two minutes"), an operator answers and confirms that "yes, the delivery time is usually three weeks". when Lia asks if it’s possible to have them sooner, even undiscounted, the adviser answers "no, the model isn’t in stock”.

discouraged, Lia hangs up and decides to take her shoes from last season to the shoe repair shop.

a-do-ra-ble

illustration of a B-to-C purChase

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A simple example (see opposite page) of these new consumer behaviours helps us become aware of these transformations, in which "exits" and opportunities to purchase elsewhere are numerous, and can be the cause of costs that are not converted into sales for businesses. It illustrates that solutions exist to make sure this customer experience has a happy ending.

Which lessons should be learned from these from these two different customer experiences that illustrate these new consumer habits?

1. buyer behaviour is no longer linear. Customers no longer follow the classic scenario: information - choice – purchase – payment – after-sales. In reality, these steps are intertwined, and customers can start again from scratch or leave the process entirely given the abundance of choice on offer, and faced with the fear of “doing a bad deal”;

2. Channels are no longer dedicated to a single step. Traditionally, at least for bricks-and-mortar businesses, customers gathered information via digital channels and carried out transactions in the store. In reality, this traditional model is often inversed, or at least mixed: customers gather information in the store (the phenomenon known as showrooming) and then carry out the transaction online, looking for the best price;

Online and offline convergence is a fact, both in consumer behaviour and in the investment plans of 85 percent of those interviewed. however, although 48 percent have launched initiatives in this area, 37 percent are still in an embryonic stage. however, it is better to define this convergence than to have it imposed upon you. As the example of Léa illustrates, consumers armed with smartphones and flat rate subscriptions surf, chat, post and tweet, while at the point of sale.

In fact, they themselves have already made online and offline convergence a reality (looking up product prices on the websites of discounters, viewing product reviews on specialised blogs, asking advice from friends, etc.). however, businesses can still pre-empt this by allowing their customers to use all technological resources to improve their experience and to maintain customers’ intention to buy. Three aspects are worth considering:

3. All channels are important. In the complex world of continuous interaction between device, location and channel, it is pointless to sacrifice one channel in order to reduce costs. Even call centres are becoming critical again as consumers turn to them in case of problems or serious questions, and thus they still have high expectations from this channel. Basically, all channels contribute to the customer experience and if one of them is disappointing, the entire customer experience – and thus also the business – suffers the consequences.

But how best to convert – and make loyal – these new customers who are increasingly omniscient and using ever more devices? We think it is futile to try to resist the fundamental trends that are shaping consumer behaviour today, however unpleasant this conclusion may seem:

• yes, consumers are changeable, fickle and disloyal;• yes, they abandon purchase processes already extensively set in motion, which have already mobilised major resources, both in terms of machine time and man-hours in the sales force;• yes, the worst among them are able and willing to do their showrooming in our costly stores and then knowingly make their purchase online via a third party ecommerce site to save EuR 10.

• how to introduce technology for consumers at the point of sale, in order to improve their customer experience?• how to improve the efficiency of salespeople thanks to new devices, typically tablets? Indeed, tablets are more than just gadgets: they profoundly modify the sales or advice process by creating a new attitude. This new attitude allows salespeople to make their sales talk more relevant (for example by accessing customer information), and to share information with the customer (by giving a demonstration in which the customer participates) while benefiting from the power of the interface (a tactile multi-touch screen, for example);• And inversely, how to re-inject the human element into remote or digital channels, by increasing the number of chat experiences, community spaces, web call-backs or in-store appointments made via the website?

three observations:

buyer behaviour

is no longer linear,

channels are no longer

dedicated to a single step in the purchase process, and all channels

remain important.

ENSUrING ONLINE ANd OFFLINE CONvErGENCE

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used to create flows towards the physical stores. France does this rather well for instance with drive-in pickups, whereby the customer comes to collect goods ordered online. It’s also necessary to move beyond this shared logistics flow by cross-selling offerings to customers when they come to collect their packages (for example, coupons for trying new products), or capitalising on the opportunity created by customers’ waiting time to propose trial offers for new products to them;• To achieve this, it is indispensable to simultaneously create bridges between channels, but also to reinforce the transmission and use of data in real time, sometimes even between partners (for example, between a brand and a distributor). Thus the interoperability of experiences becomes less important, in favour of the interoperability of knowledge of the customer the offerings.

ENSUrING thE CrOSS-FErtILISAtION OF ChANNELS

The era of multichannel is past: long live cross-fertilisation! Channels need to be more than merely interoperable (even if this remains a priority for the years ahead for 23 percent of those surveyed compared to only 10 percent in 2012). They also have to feed each other, so as to recover customers tempted by an “exit” by finding a way to lure them back, or to capture them as they arrive from elsewhere. The following examples help make this concept more concrete:

• The physical store cannot be only a place for showcasing and selling. It also has to be a place where customers’ tastes, identity and characteristics are recorded and used by all channels and even partners;• Inversely, the website needs to be

MOrE thAN thE INtErOPErAbILIty OF CUStOMEr EXPErIENCES, LEAdErS ArE EMPhASISING thE INtErOPErAbILIty OF kNOwLEdGE OF thE CUStOMEr ANd OFFErINGS, ANd thE CrOSS-FErtIISAtION OF ChANNELS.

ConvergenCe Between onLIne and

oFFLIne ChanneLs Is

ConsIdered to Be a

prIorIty For

85% oF exeCutIves

poLLed.

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rEthINkING thE rOLE OF EvEry ChANNEL

Lastly, it’s necessary to profoundly rethink the role of every channel. Today channels are locked into traditional roles (buy in the store, get information from the call centre), or operated according to a financially driven logic (pushing customers into self-service via the internet). The time has come to leave this model behind to reposition the dominant role of every channel:

• The physical network has to be what customers want it to be, a showroom, a space for advice where customers come seeking expertise. The heart of the matter is then to find a way to make these investments profitable. For strong brands or paradoxically for pure internet players, the physical presence enables them to reinforce the anchoring of their business in the minds of consumers, and may even reinforce trust. The physical site (which we no longer dare call store, boutique or branch) has become a publicity investment. For the others, the logic of partnership, which makes it possible to extend the offering and to take advantage of knowledge of customers acquired during interactions with them, is a credible route to follow. The physical site is thus becoming a relationship service for other players: delivery of goods ordered online, a platform for leveraging customer knowledge, a location for providing after-sales service, a place to demonstrate new products. The traditional store is becoming a little bit of all of these things, and the distributors of tomorrow will be able to create an ecosystem by partnering with brands;• The website is once again the all-purpose channel, with the exception obviously of physical contact, or when seeking advice or information that is urgent or very specific. Websites have been adapted and enriched, but the customer experience has become more complex. It is thus necessary to build up the site not around sections but rather around customer experiences, which bring together all information regarding a question rather than according to topics. Take the example of arriving on a banking website after clicking on a sponsored savings account link. The visitor needs to receive all the information (commercial information, but also way of working and after-sales service) related to this product, rather than be confronted with a traditionally organised website: presentation of all products, registration, after-sales service, etc.;

• The case for call centres is specific. Long considered a cost centre, businesses are beginning to rediscover this channel, driven by several phenomena. On the one hand, consumers only call when it’s important, after having used all other means at their disposal, via self-service or social networks. On the other hand, the desire to control costs has led businesses to allow the quality of this channel to degrade, which has a negative impact on the entire customer experience. The call centre thus has to reinforce the relationship by becoming what it should always have been: a channel for resolving the most complex problems of customers, whose purpose is to help them. The goal: to generate attachment and satisfaction, without being obsessively fixated on average call handling time;

All channels remain important, even if they are increasing in number, because they all contribute to the customer experience: physical network, internet, call centre, mobiles, tablet, etc.

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• Mobiles and tablets are a priority for 31 percent of people interviewed compared to 21 percent in 2012. Businesses need to leverage the possibilities offered by these new terminals: they offer a way to interact with the environment anywhere (including at the point of sale) and anytime. In CSC’s opinion, businesses need to capitalise upon consumers’ hunger for mobility by:

- Renewing customer interest in the point of sale by offering them means to interact (2D barcodes and soon NFC) to gather more information;

- Capturing customers by way of promotional offers on the product they are discovering in a rival store (this is the "delivered to you tomorrow" service offered by an e-commerce leader that enables customers to scan the barcode of a product in a rival store run by a competitor);

- using geolocation to send customers promotional or test offers when they are nearby;

- Smoothing interaction in the context of an enriched sales dialogue between the salesperson and customer, wherever the latter may be.

Thus these new mobile or nomadic terminals can become a way of enriching the customer experience at the point of sale or on site with the customer, and are a new type of "last chance marketing" when they are elsewhere.

All channels remain important: even if they are increasing in number, they all contribute to the customer experience. In this respect, it is worth noting that consumers compare all the experiences they have had, regardless of sector. When Léa changes telecom operator or bank, she will benchmark them against shoesclicksandmortar.com.

The people surveyed agree with this conclusion: they consider all channels to be (very) important, ranging from 63 percent (social networks) to 80 percent (call centres), in both B-to-B and B-to-C segments.

businesses need to leverage the functionalities behind the essence of what these new terminals are: a means to interact with the environment anywhere and anytime.

If businesses want to respond to these new challenges, they need to stop hankering for a return to a pre-convergence world. They may deplore certain recent developments in consumer behaviour, but it is far better to understand them in order to make the most of them. CSC feels that businesses need to:

•Launch projects that will make it possible to understand the fundamental expectations of customers vis-à-vis each channel, without limits. By way of an extreme example, imagine a store in which no purchases are made, but which would serve for all other steps of the purchase process (the flagship concept). That will enable a genuine reversal of the traditional roles of the main channels;•Approach the customer experience in its entirety to create a coherent whole, including all channels that can potentially be used as well as all partners and service providers;• Model the purchase process not as a linear process but rather as a group of related steps with multiple “entrances” and “exits”. The issue is thus not so much to create a single coherent purchase process, but rather to bring together all customer processes to capture, process and retain customers in a coherent manner with partners and service providers associated with every step (delivery, after-sales service, etc.);• design and implement relevant partnerships that will make it possible to better steer all purchase processes and take advantage of shared knowledge of the customer. We recommend exploring partnerships between brands and distributors, but also between ecommerce sites and bricks & mortar retail chains, or between parties offering very similar consumption environments in terms of targets. It’s worth noting that this matter is considered crucial by those surveyed, given that 32 percent consider integration of partners as the main obstacle to the further development of customer intimacy (item listed number 1);• Equip themselves with the capability to collect and use in real time all information gathered about customers, and make it available to all channels and partners. Fortunately the technologies available today enable this to be accomplished rapidly, without major

investments, and can be adapted to the needs of every business:

- Cloud computing makes it possible to adapt the capacity required exactly to the specific needs, instantaneously;

- big data enables any business to have access to processing power and fine analysis, even of unstructured data, the likes of which were unimaginable only two years ago. Furthermore, 53 percent of those interviewed reported having a project in this area;

- Offer management in real time makes it possible to identify the most suitable sales strategies in function of the context and customer profile. The matter of processing and using data in real time is one that is perceived as key by those interviewed: 60 percent of them list real time processing (for purposes of marketing or to correct process errors) as one of the main uses for customer data.

As a result businesses need to transform their operating model. Marketing, sales and distribution processes, information systems, organisation, corporate culture and management control systems all need to converge to embrace these new consumer behaviours, to ensure the satisfaction of these new customers, both in the B-to-C and B-to-B segments.

thE CONvErGENCE OF CUStOMEr INtIMACy, A NECESSAry trANSFOrMAtION FOr OrGANISAtIONS

32%

OF RESPONDENTS CONSIDER ThE

integration of partners as the

main oBstaCle to the further development OF CuSTOMER INTIMACy

21

thE CONvErGENCE IN CUStOMEr INtIMACy IS FOrCING OrGANISAtIONS tO rEthINk thEIr OPErAtIONAL MOdEL tO FAvOUr CUStOMEr SAtISFACtION, IN bOth b-tO-C ANd b-tO-b.

22

23

results2 CuSTOMER INTIMACy BAROMETER 2013

24

19 %

8 %

11 %

10 % 15 %

37 %

Industrie

Commerce, Distributionet PGC

Finance et Assurance

Transport

Secteur Public

Autres secteurs

50 %

20 %

19 %

9 %

3 %

500 à 999 salariés

1 000 à 2 999 salariés



> 10 000 salariés

91 %

9 %

Non

Oui

18 %66 %

17 %

Clients particuliers (B to C)

Clients entreprises et organismes publics (B to B)

Tous types de clientèle (B to C, B to B ou B to B to C)

Activity sector

Size of organisation

Presence of a physicaldistribution network

Geographic origin

type of customers

BreakdoWn of responses

The 102 interviews were carried out in six European countries: France, Italy, the united kingdom, germany, Spain and Belgium. The panel of respondents was drawn exclusively from organisations employing over 500 people. The majority of the organisations polled have between 500 and 2,999 permanent employees. The breakdown of interviews by activity sector reveals that the majority of the organisations polled are in the industrial and financial services sectors. Two thirds of the interviews were carried out among organisations selling to both private individuals (B-to-C) and businesses or the public sector (B-to-B). Only one third of the organisations polled sell specifically to only B-to-C or B-to-B (an equal proportion of both).

102 interviews carried out in six European countries (germany, Belgium, Spain, France, Italy and the united kingdom).

Targets: Directors and Managers from the Marketing, Sales, Distribution and Customer Relationship Management / Customer Service departments. 19 questions were asked regarding five main topics:• Strategic alignment;• Customer processes and organisation;• Cross-channel;• use of customer information;• Summary and obstacles/difficulties encountered in the development of a customer intimacy policy.

COvErAGE OF thE SUrvEy

24 %

17 %

22 %

17 %

17 %

5 %

Italie

France

Espagne

Royaume-Uni

Allemagne

Belgique

Industry

Commerce, distribution and FMCg

Transport

Finance and insurance

Public sector

Other sectors

All types of customer(B-to-C, B-to-B or B-to-B-to-C)

Private individuals (B-to-C)

Businesses and public sector (B-to-B)

500 to 999 employees

1,000 to 2,999 employees



> 10,000 employees

No

yes

Italy

France

uk

Spain

germany

Belgium

25

1- strategiC alignment

Contrary to last year, customer intimacy is only ranked as the 2nd most important element of strategic differentiation, mentioned by 34 percent of respondents. Strategies prioritising operational excellence are the leaders this year, with almost half of respondents listing this as a priority. Where these two elements meet, organisations are focusing on the excellence of the customer relationship (quality of interaction, relevance and interoperability of channels offered, etc.). As much as 2012 saw an emphasis on investing in the offering (simplicity, legibility and involvement of customers in the design / creation of new products and services), 2013 is seeing the rise of strategies that put the excellence of the customer experience back at the heart of respondents’ concerns.

For more details on the CSC value disciplines model, please see section 5 of this document .

B-to-C (or B-to-B-to-C) organisations seem indecisive, no item stands out clearly among the responses on behalf of organisations to the fickle behaviour of individual consumers. however, two points seem important:

•In2013,thefocusseemstobeonincreasingloyaltyratherthanjustacquiringclients;

•Thequalityofthecustomerexperience,andtheabilitytorespondadequatelytoallqueriesandallinteractions,appeartobepriorities.

It is worth noting that even if the convergence between online and offline is a major theme to be addressed in 2013, it has not yet been totally integrated into organisations’ strategies.

MAjOr ELEMENt OF StrAtEGIC dIFFErENtIAtION

rESPONSE tO thE IMPACt ON thE CUStOMEr rELAtIONShIP OF thE drOP IN PUrChASING POwEr OF hOUSEhOLdS (bASE: 84 rESPONdENtS, b-tO-C Or b-tO-b-tO-C)

34 %

46 %

20 % Intimité Client

Excellence Opérationnelle

Supériorité Produit

41 %

26 %

33 %

Convergence des canaux on et o�-line, intégration croissante du rôle du mobile (smartphones, tablettes…)

et création d'une expérience très fluide cross-canal

Personnalisation de masse afin de répondre à chaque client de manière spécifique, en s'adressant à un large marché

Lancement de nouvelles o�res plus simples, plus lisibles, afin de maîtriser les prix de vente

Fidélisation des meilleurs clients, quitte à perdre des parts de marché sur les segments les moins contributifs

Création d'une expérience unique d'amont en aval du parcours client

3,2

54 %

3,1

3

3

41 %

2,8

Classement sur une échelle de priorité de 1 à 5, 1 étant le moins prioritaire, 5 le plus prioritaire Results 2012 Barometer

CuSTOMER INTIMACy BAROMETER 2013

Classification according to an order of priority from 1 to 5, 1 having the lowest priority, 5 the highest

Creation of a single customer experience from upstream to downstream in the purchase process

Increasing the loyalty of the best customers, or lose market share in segments which contribute the least

Launch new offers, simpler, more legible, in order to control sales prices

Mass personalisation in order to respond to every customer in a specific manner, by addressing a broad market

Convergence of online and offline channels, increasing integration of the role of mobility (smartphones, tablets, etc.)

and creation of a very fluid cross-channel experience

Customer intimacy

Operational excellence

Product superiority

26

Organisations serving the B-to-B and B-to-B-to-C (in this case business customers) responded to the crisis by increasing the number of "physical" interactions with their customers: a stronger presence of salespeople “in the field”. In addition, the equipment available to support the nomadic activity of salespeople was reinforced, both to improve commercial efficiency (productivity) and to increase the impact of the sales dialogue with customers. On the other hand, the development of digital channels seems to be slowing, as the role of the human element is gaining in importance.

In the same line as in 2012, the ongoing integration of customers as genuine partners of the organisation has been confirmed. Almost 30 percent of respondents (compared to 18 percent in 2012) consider it important to involve customers in the main operational processes for the design and development of offerings, as well as in the process of distribution / commercialisation. This approach offers a means to better understand their purchasing behaviour, and to adapt systems correspondingly to increase conversion rates in an environment in which versatility and volatility are key aspects of buyer behaviour.

rESPONSE tO thE IMPACt ON thE CUStOMEr rELAtIONShIP OF thE drOP IN bUSINESS bUdGEtS (bASE: 85 rESPONdENtS, b-tO-C Or b-tO-b-tO-C)

CUrrENt LEvEL OF MAtUrIty OF OrGANISAtIONS

Développement du rôle des canaux dématérialisés afin de mieux maîtriser les frais commerciaux et de distribution

Equipement massif des forces de vente en outils de mobilité (tablettes…) : améliorer l'impact sur le discours commercial

Equipement massif des forces de vente en outils de mobilité (tablettes…) : améliorer la productivité, mieux cibler les investissements en temps,

en fonction des différentes catégories de clients

Investissements dans le réseau de distribution afin de bien traiter toutes les interactions avec les clients

Echanges plus fréguents avec les clients : bien comprendre besoins et contraintes (notamment financières), adapter les offres en conséquence

3,6

54 %

3,1

2,9

2,7

41 %

2,6

Classement sur une échelle de priorité de 1 à 5, 1 étant le moins prioritaire, 5 le plus prioritaire

28 %

25 %

29 %

6 %

11 % Clients peu / mal connus, raisonnement en termes de produits / services offerts etde transactions réalisées

Clients identifiés, reconnus à chaque contact

Mise en place de dispositifs d’écoute des clientsafin d’améliorer l’offre et de mieux les servir

Anticipation des besoins des clients via une écoutesystématique, intégrant leurs attentes d’évolution

Clients = partenaires, associés aux principauxprocessus de l’organisation (conception d’offres, commercialisation, après-vente…)

7 %

14 %

34 %

18 %

27 %

1 – strategiC alignment

More frequent interaction with customers: understand needs and constraints (in particular financial) well, adapt offerings accordingly

Investments in the distribution network in order to handle

all interactions with customers well

Large-scale deployment among the sales force of mobility tools (tablets, etc.): improve productivity, better target investments over time, in function of the various

categories of customers

Large-scale deployment among the sales force of mobility tools (tablets, etc.):improve the impact of the sales dialogue

Development of the role of digital channels in order to better control sales and distribution costs

Customers little / poorly understood, reasoning in terms of products / services offered and transactions concluded

Customers identified, recognised at every contact Implementation of systems to listen to customers in order to improve the offering and serve them better

Anticipation of customer needs via systematic listening, integrating their expectations for evolution

Customers = partners, involved in the main organisational processes (design of the offering, commercialisation, after-sales service)


27

The main challenge linked to the further development of customer intimacy this year again remains the simplification of the customer experience and the improvement of the quality of the interactions between the organisation and its customers, across all commercial and interaction channels. But here again organisations are very divided, breaking down equally between the quest for profitability (focusing on loyal, often more profitable, customers), volume (increased revenues, sometimes to the detriment of margins and long-term profitability), and personalisation of the offering with a view to increase conversion rates. Is 2013 thus a year of indecisiveness?

MAIN ObjECtIvE FOr FOLLOw-UP IN thE FUrthEr dEvELOPMENt OF CUStOMEr INtIMACy

MAIN ACtIONS tAkEN IN thE PASt twO yEArS tO FUrthEr dEvELOP CUStOMEr INtIMACy

Equipement des forces de vente en tablettespour améliorer l'efficacité commerciale

Utilisation des médias sociaux avec un objectif commercial

Prise de parole sur les médias sociaux (intégrant l’e-réputation)

Développement de la politique marketing / commerciale surles canaux mobiles (smartphones, tablettes…)

Unification et enrichissement de la base clients

Fluidification et interopérabilité des canaux de distribution (multicanal)

Rapprochement des organisations marketing, commerciales etservices pour assurer la cohérence des actions

Personnalisation de la relation client sur l'ensemble des canaux

Personnalisation de l'offre pour répondre au mieux aux attentes client

Développement de la rétention via des actions de fidélisation 35 %

33 %

33 %

33 %

28 %

22 %

22 %

21 %

19 %

17 %

23 %

60 %

32 %

34 %

19 %

25 %

23 %

12 %

25 %

26 %29 %

20 %25 %

Développer le CA en favorisant la fidélisation,les ventes récurrentes : logique de volumes

Adapter l’offre pour gagner de nouveaux clientsen répondant mieux à leurs besoins

Simplifier l’expérience client et améliorer la qualitédes interactions pour réduire les coûts en augmentantle taux de satisfaction

Améliorer la rentabilité unitaire de chaque client,en restant sélectif

22 %

31 %

9 %

38 %

In 2013, organisations feel that many tactical elements are important. unlike in 2012 when personalisation of the offering was mentioned by 60 percent of those interviewed, this item has weakened in favour of strategies for increasing customer loyalty and retention. Organisations, often inward looking, are focusing primarily on their “installed base” of customers, and thanks to bringing the marketing, sales and distribution departments closer together, have reinforced the personalised aspect of the relationships they maintain with their customers. It is worth noting that in the course of the past two years – as illustrated by the summary of the Customer Intimacy Barometer (see section 1) – almost 30 percent of the organisations surveyed have invested in the fluidity and interoperability of the channels for interaction offered to their customers (compared to only 19 percent in 2012).

Further development of retention via actions to boost loyalty

Personalisation of the offering to better respond to customer needs

Personalisation of the customer relationship across all channels

Bringing the marketing, sales and services organisations closer together to ensure the coherence of actions

Increase fluidity and interoperability of distribution channels (multichannel)

unification and enrichment of the customer base

Development of the marketing / sales policy for mobile channels (smartphones, tablets, etc.)

Communication via social networks (integration of e-reputation management)

use of social media with a commercial objective

Equip sales force with tablets to improve sales efficiency

Increase revenue by favouring loyalty and recurrent sales: volume-driven logic

Adapt the offering to attract new customers by better responding to their needs

Simplify the customer experience and improve the quality of interactions to reduce costs by increasing the level of satisfaction

Improve the individual profitability of each customer, by remaining selective


Results 2012 Barometer

28

The priorities for the coming two years are the personalisation of the offering, improving the responsiveness and the quality of interactions, and reinforcing the interoperability of channels. It is worth noting that this last item has become a high priority compared to the previous year (when it was mentioned by only 10 percent of those interviewed, compared to 23 percent this year), whereas the two other items have remained relatively stable at 27-30 percent each. This interoperability of channels is accompanied by the development and leveraging of the knowledge of the customer, which explains the priority given to big data projects, ranked 4th with 22 percent of respondents (compared to only 12 percent in 2012, ranked in 9th position out of 10).

PrIOrIty PrOjECtS tO bE CArrIEd OUt IN thE COMING twO yEArS tO FUrthEr dEvELOP CUStOMEr INtIMACy

Equipement des équipes commerciales etservices avec des terminaux mobiles

Mise en place de programmes d'animation relationnelle

Analyse multidimensionnelle, prédictive, scoring…

Renforcement de la présence sur les médias sociaux

Renforcement des canaux permettant d'atteindre nos clientsen situation de mobilité (smartphones, tablettes…)

Amélioration des relations entre le marketing,les ventes et le service client

Projet de Big Data afin d'enrichir le recueil, la structurationet l'exploitation de nos informations client

Renforcement de l'interopérabilité des canauxde distribution / d'interaction client

Amélioration de la réactivité et dela qualité des interactions client

Personnalisation de l'offre pour répondreau mieux aux attentes client

30 %

27 %

23 %

22 %

22 %

18 %

15 %

11 %

11 %

10 %

35 %

22 %

10 %

12 %

17 %

15 %

23 %

23 %

14 %

4 %

1 – strategiC alignment

Personalisation of the offering to better respond to customer expectations

Improve the responsiveness and quality of customer interaction

Reinforce the interoperability of channels for distribution / customer interaction

Big data project in order to enrich collecting, structuring and processing of customer information

Improvement of relationship between marketing, sales and customer service

Reinforce channels that enable interaction with customers when mobile (via smartphones, tablets, etc.)

Reinforcing presence in the social media

Multi-dimensional and predictive analysis, scoring, etc.

Implementation of programmes designed to bring the customer relationship to life

Equip sales force and customer service teams with mobile terminals

29

2- Customer proCesses and organisation

In 2013, the departments addressing issues linked to customers (marketing, sales and customer service) seem better integrated, even if a majority of the organisations structure them in an independent manner. This is one of the conditions for the successful implementation of strategies that enable the convergence of online and offline.

StrUCtUrING thE OrGANISAtION tO MANAGE CUStOMEr INtIMACy

54 %

35 %

11 %

Clients gérés par plusieurs directions interagissantselon leurs propres objectifs

Relation client gérée au sein de plusieurs directionstrès fortement intégrées bien qu’indépendantes

Fonctions commerciale, marketing et service clientunifiées sous une seule direction

15 %

45 %

40 %

Customers managed by several departments which interact according to their own objectives

Customer relationship managed within several highly integrated (but independent) departments

Sales, marketing and customer service brought together in a single department



30

3- Cross-Channel

In 2013, all channels seem to be important and the answers given by those surveyed are much less clearly divided than in 2012. In this period of convergence between online and offline, these answers tend to show that all channels have a role to play in the ability of organisations to build deep and lasting relationships with their customers. In addition to the social media (which have grown into fully-fledged media in 2013 and seem to be integrated to the same extent as more traditional media), all other channels have regained a position they seemed to have somewhat lost in 2012. It is worth noting that call centres (which are increasingly making a qualitative contribution to closing sales) are once again becoming a channel judged to be key by 80 percent of those interviewed. The same holds true for new terminals (mobiles, smartphones, tablets, etc.), which are securing a privileged place in the mix of channels, as a result of an environment in which customers interact without regard for time or place.

IMPOrtANCE OF thE ChANNELS USEd tO INtErACt wIth CUStOMErS

Top 2 (A+B)

A- Très important

B- Important

C- Moyennement important

D- Peu important

E- Pas du tout important

Ne s’applique pas à mon organisation

Médias sociaux

Réseau physique (magasin, boutique, agence…)

Courrier papier, mail

Commerciaux “terrain”

Site Internet (et Extranet en B to B), y compris self-care

Nouveaux terminaux (mobiles, smartphones, tablettes…)

Centres d'appels (réception et émission d'appels)

80 %

76 %

76 %

75 %

74 %

73 %

63 %

39 %

30 %

71 %

44 %

52 %

42 %

36 %

Call centres (inbound and outbound calls)

New terminals (mobiles, smartphones, tablets, etc.)

Internet site (and extranets for B-to-B), including self-service

Salespeople “in the field”

Post, email

Physical network (store, boutique, branch, etc.)

Social media

Top 2 (A+B)

A- Very important

B- Important

C- Moderately important

D- Not very important

E- Not at all important

Not applicable to my organisation

31

Organisations selling to private individuals do not consider any one channel to be more important than another. The highly heterogeneous responses observed tend to illustrate strategies in which customers are treated well everywhere and in all the channels made available to them. Those interviewed seem to recognise the need to no longer consider the purchase process as linear, and will in future adapt by bringing together all the various purchase processes to attract, handle and retain their customers, in a coherent manner, involving partners and service providers associated with each step (delivery, after-sales support, etc.).

In 2013, digital channels remain a development priority for organisations: the internet, extranets and the social media. More interestingly, other channels are also becoming priorities, whether new terminals, the physical network or salespeople “in the field”. Organisations have understood that their ability to ensure interoperability among all their channels, to reduce the likelihood that customers “escape” after an interaction, is a key challenge. The result is a cross-channel investment strategy that extends beyond just the digital channels.

CONSEqUENCES FOr OrGANISAtIONS OF thE EvOLUtION OF thE INtErACtION wIth CUStOMErS/CONSUMErS AS A rESULt OF NEw COMMUNICAtION dEvICES (bASE: 84 rESPONdENtS, b-tO-C Or b-tO-b-tO-C)

ChANNELS tO bE GIvEN A hIGh PrIOrIty FOr dEvELOPMENt IN thE NEXt twO yEArS

Offrir la possibilité aux clients qui viennent en point de vente physiquede se renseigner directement depuis leurs mobiles sur le lieu de vente

Faire converger tous les dispositifs on et off-line afin de les rendretrès complémentaires et d'offrir une expérience d'achat la plus fluide possible

S'adapter à des clients de plus en plus mobiles, en leur offrantla possibilité d'interagir à tout moment avec nous

2,1

2

1,9


Courrier papier, mail

Centres d'appels (réception et émission d'appels)

Commerciaux “terrain”

Réseau physique (magasin, boutique, agence…)

Nouveaux terminaux pour adresser les clients en situationde mobilité (mobile, smartphones, tablettes…)

Médias sociaux

Site Internet (et Extranet en B to B), y compris self-care 42 %

36 %

31 %

25 %

21 %

18 %

12 %

60 %

38 %

21 %

17 %

26 %

17 %

8 %

Internet site (and extranets in B to B), including self-service

Social media

New terminals to address customers on the move (mobiles, smartphones, tablets, etc.)

Physical networks (store, boutique, branch, etc.)

Salespeople “in the field”

Call centres (inbound and outbound calls)

Post, email

Adapt to increasingly mobile customers by offering the possibility to interact at any time

Ensure the convergence of online and offline systems in order to make them highly complementary and to offer a customer experience which is

as smooth as possible

Offer customers that visit the physical point of sale the possibility to gather information directly via their mobile devices at the point of sale




32

Similarly to the private market, organisations addressing professional customers (B-to-B and B-to-B-to-C via distribution intermediaries) are seeking both to respond to customers’ expectations of autonomy (by making digital channels available to them), while reinforcing their presence directly beside them, by way of sales forces “in the field” that are better equipped with mobile terminals (for reasons of improved productivity and sales efficiency when in nomadic situations).

Confirming the trend already observed in 2012, the 2013 results illustrate the complementary nature of virtual and physical interaction in the channel mix. After a year in which the (re)investment in the human relationship was significant, the rate should slow in 2013 with a suitable balance between human and virtual interaction (almost half of those interviewed think that the role of the human element will stabilise in 2013).

CONSEqUENCES OF thE USE OF NEw dEvICES IN tErMS OF IMPrOvEMENt OF thE PrOdUCtIvIty ANd EFFICIENCy OF thE SALES FOrCE whEN dEALING wIth PrOFESSIONAL CUStOMErS (bASE: 85 rESPONdENtS, b-tO-C Or b-tO-b-tO-C)

PrEdICtEd EvOLUtION OF thE rOLE OF thE hUMAN ELEMENt – ANd thUS PhySICAL ChANNELS – COMPArEd tO dIGItAL ChANNELS

Equiper l'ensemble des forces de vente de terminauxmobiles afin d'améliorer l'impact de leur discours commercial

Développer des canaux dématérialisés (sites Internet, sites pour mobiles…)afin de répondre aux attentes clients en matière d'autonomie

Equiper l'ensemble des forces de vente de terminauxmobiles afin de rendre leurs interactions plus rapides et/ou plus productives

2

2

1,9


22 %

27 %

6 %

45 %

Stabilité par rapport à aujourd’hui

Fort développement du rôle de l’humain

Hétérogénéité (mix entre contact réelet dématérialisé selon les étapes du parcours client)

Disparition progressive du rôle de l’humainau profit du développement de relationsdématérialisées

29 %

6 %

38 %

27 %

3- Cross-Channel

Equip the entire sales force with mobile terminals to make their interactions more rapid and/or productive

Further develop digital channels (websites, sites for mobiles, etc.) in response to customer expectations in terms of autonomy

Equip the entire sales force with mobile terminals to increase the impact

of their sales dialogue


Stable compared to today

Strong development in the role of the human element

heterogeneity (mix of real and virtual contact according to the steps of the purchase process)

gradual disappearance of the human element in favour of the further development of virtual relationships

33

In 2013, organisations seem to have become aware that the interoperability of channels is not something to be taken for granted. unlike in 2012 when many respondents felt that they were able to treat their customers well and in a coherent manner across the entire mix of channels, in 2013 55 percent of respondents recognise that their systems are not optimal:

• 27 percent of respondents offer several channels for interaction, but without genuine interoperability;

• 28 percent of respondents are still primarily mono-channel, even though their customers have multichannel expectations.

The evolution in consumer behaviour and habits has raised doubts in organisations about their positioning, and is forcing them to reconsider the relevance of their systems.

A striking result from the 2013 Barometer: 85 percent of those polled consider the convergence between online and offline systems to be a priority. Their organisations have already invested in projects within their physical network (48 percent of respondents), or they are in the initial stages of planning in this context (37 percent of respondents). These results illustrate the need for many organisations to focus their efforts in 2013 on rethinking their approach to the customer experience in terms of this convergence.

POSItIONING OF thE OrGANISAtION IN tErMS OF CrOSS-ChANNEL MANAGEMENt

CONvErGENCE bEtwEEN ONLINE ANd OFFLINE (bASE: 93 rESPONdENtS, PrESENCE OF A PhySICAL dIStrIbUtION NEtwOrk)

27 %

28 %

15 %

29 %

Propose aux clients plusieurs canauxd’interaction réellement interopérables

Est majoritairement monocanal : bien queles clients aient de réelles attentes en matièrede multicanal

Propose aux clients plusieurs canaux d’interactionspas réellement interopérables

Est majoritairement monocanal : cela correspondaux attentes client

39 %

23 %

21 %

17 %

12 %

37 %

3 %

48 %

Nous travaillons déjà sur la convergence on etoff-line via l’usage des technologies Internet au seindes points de vente

Notre réflexion est embryonnaire

Nous n’avons pas de projet car nous considéronsque cette convergence ne sera pas un enjeu clé en 2013

Nous ne sommes pas concernés du fait de nosstructures de distribution ou des attentes limitéesde nos clients

Offer customers several genuinely interoperable channels for interaction

Primarily mono-channel even though customers have real multichannel expectations

Offer customers several channels for interaction that are not genuinely interoperable

Primarily mono-channel which corresponds to customer expectations

We are already working on convergence of online and offline by using

internet technologies in our points of sale

Our thinking is still in its initial stages

We do not have a project in this area because we do not think this

convergence will be a key challenge in 2013

This is not applicable to us thanks to our distribution structure or the

expectations of our customers



34

4- use of information

75 percent of the organisations interviewed feel that Big Data is relevant for them (or at least better gathering and use of information about customers collected during each interaction). More than half of them have launched or plan to launch projects in this regard. At a time when customer behaviour is evolving rapidly, organisations have clearly understood that the best way to convert them or increase their loyalty is to know and recognise them at every interaction.

USAGE OF NEw MEANS OF GAthErING ANd USING INFOrMAtION AbOUt CUStOMErS (“bIG dAtA”)

Projet trop complexe à mettre en œuvre / peu adapté à notre organisation

Technologies utilisées pour mieux comprendreles clients et analyser leurs comportements (mode réactif et prédictif)

Lancement (effectif ou prévu) de projet de type “Big Data”afin de mieux exploiter la masse d'informations accumulées sur les clients

53 %

36 %

25 %

Très faible utilisation des informations (collecte “au cas où”)

Utilisation des informations de manière très réactive pourcorriger des problèmes d'organisation ou de processus

Utilisation des informations de manièreréactive pour améliorer l'o�re

Partage de l'information collectée avec les autres départements,utilisation pour améliorer globalement la qualité des interactions

Utilisation des informations collectées à des fins principalement marketing

Intégration systématique des informations dans lesphases amont de conception de nouveaux produits

34 %

34 %

32 %

31 %

26 %

14 %

22 %

12 %

45 %

38 %

37 %

10 %

MAIN USES OF CUStOMEr INFOrMAtION GAthErEd

In addition to using information to improve the quality of interaction (which is often a matter for the channels themselves), organisations are focusing on two key matters:

•Theuseofinformationgatheredtoimprovethedesignofofferingsproposedtocustomers(foronethirdofrespondents);

•Theuseofthisinformationforprimarilymarketingpurposes(namelyscoringandpushingofferingsinrealtime,providingmorefine-tuned responses to enquiries, relationship marketing, etc.).

It is worth noting that the use of information to improve organisational processes or shortcomings seems less of a priority than the previous year, the challenge being more in the use of data in real time (in terms of “what should be done with the information just received in order to close the sale?”).

Launch (effective or planned) of a “big data” projectin order to make better use of the mass of information gathered about

customers

Technologies used to better understand customers and analyse their

behaviour (reactive and predictive mode)

Project too complex to be implemented or little suited to our

organisation

Systematic integration of information in the upstream phases of new product design

use of information gathered mainly for marketing purposes

Sharing information collected with other departments, and using it to improve the overall quality of interaction

use of information in a responsive manner to improve the offering

use of information in a highly responsive manner to correct organisational processes or problems

Very limited use of information (gathered “just in case”)

35

A key lesson from the 2013 Customer Intimacy Barometer: organisations seem to have carried out a major realignment to facilitate the implementation of a customer intimacy strategy. Between 75 and 80 percent of those surveyed feel their positioning is coherent on the various items that make it possible to evaluate this alignment. The further development of a multichannel approach seems to be a priority, as does the coherence of processes and the organisation, as well as the ability to propose services that support the primary offering.

In terms of alignment of the elements of the operational model on a strategy of customer intimacy (processes, organisation, information systems, culture and management control systems), organisations feel that the main obstacle (for 32 percent of respondents) is their ability to ensure the effective coherence of various partners and stakeholders (internal and external). This item is even more important given that, in an environment in which customers are addressed from all sides, organisations cannot on their own meet all the needs expressed and must thus develop strategic partnerships. These can be between brands and distributors, between ecommerce sites and bricks and mortar store chains, or between businesses offering similar consumption environments in terms of target customer. These partnerships need to be implemented with operators who share not only interests in terms of the targets to be addressed, but also in terms of values at a commercial level and the way the customer intimacy and customer relationships are managed.

5- summary and oBstaCles/diffiCulties enCountered in developing Customer intimaCy

COhErENCE OF thE POSItIONING OF thE OrGANISAtION IN tErMS OF CUStOMEr INtIMACy

MAIN ObStACLES/dIFFICULtIES ENCOUNtErEd IN thE dEvELOPMENt OF CUStOMEr INtIMACy

Top 2 (A+B)

A- Tout à fait d’accord

B- D’accord

C- Ni en désaccord, ni en accord

D- Pas d’accord

E- Pas du tout d’accordExploitation de l'information collectée et

partage au sein de l'organisation

Di�érenciation des concurrents viaune politique de services innovante

Cohérence des processus et del'organisation, orientés vers le client

Alignement de la stratégie surle concept d'Intimité Client

Développement e�ectifd'une approche multicanal

79 %

76 %

76 %

75 %

75 %

51 %

60 %

71 %

45 %

43 %

Attentes clients basiques, rendant di�cile unedi�érenciation par la personnalisation de l'o�re

Systèmes de pilotage axés sur la rentabilité produitplus que client, vision trop court termiste

Réseaux de vente on et o�-line insu�samment convergents,ne se nourrissant pas su�samment l'un l'autre

Sous-investissement en termesde systèmes d'information

Organisation très compartimentée, di�culté à définirune politique et des objectifs communs autour du client

Culture tournée vers l'Excellence Opérationnelle ou la Supériorité Produit

Grand nombre de partenaires dans la production de l'o�re, objectifs insu�samment alignés sur le client 32 %

30 %

29 %

25 %

24 %

23 %

12 %

28 %

15 %

15 %

10 %

19 % 20 %

Effective development of a multichannel approach

Strategic alignment on the concept of customer intimacy

Coherence of processes and the organisation, focused on the customer

Differentiation from competitors by way of a policy of innovative services

use of the information gathered and sharing thereof within the organisation

Large number of partners involved in producing the offering,objectives insufficiently aligned on the customer

Culture focused on operational excellence or product superiority

highly compartmentalised organisation, difficulty in defining a common policy and objectives focused on the customer

under-investment in terms of information systems

Insufficient convergence between online and offline sales network, do not feed each other enough

Management systems focused on product profitability rather

than customer, overly short-term vision Basic customer expectations, making it difficult to differentiate on

the basis of personalisation of the offering

Top 2 (A+B)

A- Completely agree

B- Agree

C- Neither agree nor disagree

D- Disagree

E- Disagree completely



36

37

testimonials3 CuSTOMER INTIMACy BAROMETER 2013

38

laurent deChaux VICE PRESIDENT. OrACLE APPLICAtIONS

"businEssEs thAt ArE not foCusing on thE CustomEr ExpEriEnCE risk Choosing And implEmEnting unsuitAblE tools."

39

tEStIMONIAL

thanks to the neW Cloud deployment mode, Businesses Can gradually adapt solutions that smooth the Customer relationship aCross all Channels. hoWever, it’s important to Be aWare of the limitations of the first generation of Cloud solutions, WhiCh do not faCilitate integration With legaCy information systems and risk Creating silos again.

whAt EvOLUtION IN CONSUMEr bEhAvIOUr ArE yOU ObSErvING?

Studies show that 86% of consumers are willing to spend more in exchange for better service or a better product. They’re more volatile, more impatient and demand recognition, regardless of the communication channel. Today there are many of these channels, and consumers blithely hop from one to another, looking for information, interacting, and making concrete purchases. The rise of social networks and the internet has given consumers a means to exert pressure on service quality to a previously unseen extent.

hOw ArE yOUr CUStOMErS rESPONdING tO thIS EvOLUtION?

Our customers reacted to this new state of affairs by first carrying out an in-depth analysis of the customer experience of their brand, in order to adapt both their information systems (IS) and their sales processes. They were in particular able to adopt our solutions for smoothing the purchase process and improving the experience of their customers in every channel: social networks, ecommerce, call centres, etc. They also drew on the capabilities of their people, who play a key role in improving the customer experience; studies demonstrated people were highly motivated to participate in these initiatives.

possible. We also offer tools that enable our customers to relocate these solutions within their own Information Systems in case of need.

whAt ArE thE LIMItAtIONS OF thESE SAAS SOLUtIONS?

The first limitation is at the customer side, where people still hesitate to move their data into the cloud despite the guarantees of security and separation that these technologies offer today. Another limitation can be the level of integration needed between the solution and the Information Systems already in place. For example, the adoption of ecommerce solutions in the cloud is not very well developed taking into account the impact on the supply chain, inventory, etc. But here again, the solutions are improving and we’re continuously working on making the integration of processes easier, making the Information Systems more flexible and reducing the cost of ownership.

hOw dO yOU SUPPOrt thEM?

The method they adopt – and which we recommend – is to prioritise quick wins in a given area or channel, check the performance of the solution put in place and then gradually extend it to other channels. We help them to further develop their IS so it’s able to respond to these new consumer behaviours, and to improve the capability of the brand to react more quickly. This is achieved in particular through the use of SaaS solutions, thanks to which today it is possible to deploy a complete tool in less than three months, across all channels (internet, mobile, ecommerce, social networks, etc.), while guaranteeing the integration of these channels and the Information Systems already in place. The key outcome: a far better customer experience than was previously the case!

dOES thIS tyPE OF SOLUtION hAvE ANy drAwbACkS?

Fewer and fewer, because the solutions are improving. Whereas the first generation of CRM tools in SaaS mode could recreate silos by isolating customer relationship management or the sales force from the rest of the Information Systems, that’s no longer the case with the current generation. however, even though it has become easier to implement a SaaS solution from a functional point of view, the integration part should not be underestimated. From our side, we make sure that our technological solutions are as standardised as possible to enable the solutions to be integrated as simply, quickly and non-intrusively as

40

olivier derrien VICE PRESIDENT SOuThERN EuROPE. SALESFOrCE.COM

"to CApitAlisE on All thE opportunitiEs for pErformAnCE improvEmEnt offErEd by soCiAl mEdiA, businEssEs nEEd to trAnsform thEmsElvEs."

41

Confronted With the explosion of soCial netWorks, Businesses are adapting the manner in WhiCh they CommuniCate Both externally and internally. But they still have to transform in order to take advantage of the sourCes of groWth to Be exploited By plaCing the Customer at the Centre.

whAt EvOLUtION ArE yOU ObSErvING IN CUStOMEr rELAtIONShIP MANAGEMENt?

The relationship between customers and brands has changed greatly. Cloud computing, mobility, geolocation and social networks have triggered a revolution in consumer behaviour. The convergence of these transformations offers new possibilities for business applications that reinforce the proximity that a brand can have with every customer. Following in the footsteps of clients of ours such as Coca-Cola or Burberry, businesses need to unify the experience at the point of sale and on the internet in order to arrive at a coherent customer experience, image and communication.

whErE ArE bUSINESSES FINdING thE MAIN OPPOrtUNItIES FOr GrOwth?

The rise of social networks is profoundly changing the way in which businesses can improve their performance. These media are a new channel for interaction and an undeniable opportunity to reach new customers. Today, there are cumulatively 4.5 billion social media users worldwide. According to gartner, by 2017, the budgets available for marketing departments to spend in this channel will exceed those of IT departments.

hOw CAN yOU hELP bUSINESSES?

The “social front office” responds perfectly to this need. Salesforce Marketing Cloud enables marketing departments to understand what is being said about the brand on social networks, and to listen and even to engage in conversation with influencers, in order to learn concrete lessons for the evolution of production, or to launch marketing campaigns. Our enterprise social media tool “Chatter” enables teams to collaborate on matters that interest them, internally as well as externally, with partners and suppliers: a commercial opportunity, a complaint, a call… In this way, by improving the communication between the various stakeholders in the business, they contribute to reducing work in functional silos which is an obstacle to increasing the flexibility of the customer experience.

ArE bUSINESSES AwArE OF thIS?

They have at least understood that they need to integrate these tools, even if only to attract and retain employees. 70 percent of companies are adopting social networks. They have also identified the need to modernise and transform themselves – albeit at various speeds and levels of depth – but they have not necessarily defined the way in which their business model will have to evolve to make use of these sources of performance improvement, in order to centre their operations even more on the customer.

whAt IS yOUr AdvICE tO thEM?

When managing the customer relationship, businesses should put in place tools that work in the same way and have the same interface, and structure their communication accordingly. knowing what to say and when to say it on a Facebook page isn’t necessarily obvious. In the social media, the rhythm and impact of communication are fundamentally different. To adapt to this, you must first be capable of listening to and understanding what is being said about the brand.

tEStIMONIAL

42

arnaud desChamps MANAgINg DIRECTOR. NESPrESSO FrANCE

"CompEtition is not only About thE produCt – it’s Also About thE CustomEr ExpEriEnCE."

43

along With Coffee and the maChines for making it, the Customer relationship is one of the three fundamental pillars of nespresso’s identity. from the Beginning the Company has put Customer intimaCy at the heart of its development. and this long-term investment has paid off, in partiCular in times of Crisis.

whAt EvOLUtION IN CUStOMEr bEhAvIOUr ArE yOU ObSErvING?

We’re dealing with expert customers – in ecommerce, services, new technologies – and they expect to be able to do everything (compare, order and interact) across all channels, simultaneously if possible. In addition, the internet has accustomed them to getting rapid responses in real time. And with web 2.0, this has expanded to include being able to express their opinion, in particular if their ethical values are not respected by the company.

hOw dO yOU rESPONd tO thIS?

We have to at least offer them the same flexibility of experience that they expect. A customer can initiate an order on the internet, come to the store to finalise the transaction, and then decide to have the order delivered at home. But we also try to delight the customer by offering an unprecedented level of service, for example by offering delivery seven days a week, within two-hour time slots. To serve customers that may not want to talk, we’ve also put in place a self-service system in our stores, and have equipped the packaging with RFID chips that are automatically detected when they go over the counter at the checkout. In some stores they can even pick up their purchases directly without getting out of the car…

whICh rULES dId yOU FOLLOw IN OrdEr tO SUCCEEd?

Since the beginning, we’ve been determined to be coherent and convergent. This intent is shared by every employee, who also has to trust all the others. If only one of them does not share this state of mind, or doesn’t have the information necessary to advise a customer, the efforts made by everyone to create customer intimacy can quickly be destroyed. It’s thus important to correctly understand the hR challenges involved (training, recruitment, internal promotion, etc.), but also those related to communication and governance

whAt ChALLENGES dOES thIS CrEAtE IN tErMS OF OrGANISAtION?

Being able to offer this flexibility in the customer experience creates an incredible level of complexity which must however be transparent for the customer. That’s the price of trust, because customers would not understand if we said different things depending on the channel, or that an action is possible on one channel but not another. Businesses need to become aware that customers don’t only compare products but also purchase experiences. So companies aren’t only in competition with other businesses in the same sector, but with all of them.

ANd hOw dO yOU CrEAtE SUCh FLEXIbILIty?

It’s not simple, because most companies start from a point of technological lag, compared to consumers. The majority of them are strong in one channel, but finding businesses that are strong in all of them, online and off, is rare. In addition, customer intimacy shouldn’t be considered a commercial strategy but rather a genuine corporate culture. The conviction of its worth must be shared at all levels if it is to create value. Clearly, that’s less easy when businesses operate in silos and when, for example, commercial objectives can damage the flexibility of the relationship.

tEStIMONIAL

44

Cyrille giraudat MARkETINg DIRECTOR. PMU

"soCiAl mEdiA EnAblE us to rEACh nEw tArgEts, on Condition thAt wE undErstAnd thEm And Adopt thEir ConvEntions."

45

the leading pari-mutuel horseraCe Betting provider in europe and seCond WorldWide, pmu is using its expertise in eCommerCe and the online Customer experienCe to drive aCtivity in its physiCal netWork and rejuvenate its Clientele.

whAt EvOLUtION ArE yOU ObSErvING IN yOUr CUStOMErS’ bEhAvIOUr?

We’re observing a slight fall in bets in our physical points of sale (-2 percent), which is more than compensated for by the annual growth in our online activity, which is 22.8 percent. PMu.fr is one of the leading French ecommerce sites with revenue of EuR 1.65 billion. The most striking evolution is the strong increase in the nomadic share of business, which represents 20 percent of this activity today, and which is expected to reach 30 percent by the end of the year.

hOw dOES thIS brEAk dOwN ACrOSS yOUr vArIOUS MArkEtS?

Online, horserace betting amounts to a total of EuR 972.1 million, an increase of 11.1 percent. It’s our growth in sports betting (+62 percent) and online poker (+39 percent) which is enabling us to acquire many new customers, in particular younger profiles. Our objective is to migrate the latter towards online horserace betting – 40 percent of these customers have already tried betting on horseraces – but also towards the physical network.

hOw dO yOU INtEGrAtE SOCIAL NEtwOrkS IN yOU CUStOMEr rELAtIONShIP MANAGEMENt?

ultimately social networks are only a transposition of the proximity that has always existed in pari-mutuel betting. It’s an essentially community-based activity: you go there, often after having been initiated by an acquaintance. Social media enable us to reach new targets, on condition that we understand and adopt their habits and conventions. On Facebook, we organised a casting session for the punters in the film "Turf" and co-organised the first poker championship of the French grandes écoles. That has of course allowed us to rejuvenate our customer base.

whAt dO yOU dO tO drIvE ACtIvIty IN yOUr NEtwOrk OF POINtS OF SALE?

The development of the network of points of sale has been accentuated in order to optimise the coverage of the French territory. There was an average of three openings a day in 2012, accompanied in particular by a new store concept dedicated to taking PMu bets and broadcasting races: PMu City. Open seven days a week, open until late or all night, the PMu City stores offer the highest quality of service with staff who listen to customers, and betting via terminals and bollards equipped with top quality audio-visual gear.

hOw ArE yOU OrGANISING thE CONvErGENCE bEtwEEN thE twO wOrLdS?

We’re using our digital know-how to stimulate growth offline. For example, by re-launching the PMu card, we’re modernising the customer experience in the physical network, since every customer can bet via the interactive bollards installed in 4,000 points of sale. The advantage for us is that the customer is no longer anonymous. We can have a direct relationship with everyone, as we do online, and thus build up knowledge of the customer.

tEStIMONIAL

46

franCk heimBurger DISTRIBuTION DIRECTOR, EMPLOyEE NETWORk. AXA

"trAnspArEnCy doEsn’t sCArE us, it CAn CrEAtE vAluE."

47

as the leading employee netWork in the insuranCe seCtor in franCe, axa has just equipped its 3,000 advisers With touCh sensitive taBlets loaded With all the neCessary sales support tools. this teChniCal evolution hides an underlying Cultural revolution in the approaCh to the Client relationship.

whAt hAS thE IMPACt OF thE CrISIS bEEN ON thE CLIENt rELAtIONShIP?

In our business, providing advice on savings and prevention to 1.4 million clients, we’ve noted strong demand for transparency. People now want to understand what they’re buying and thus demand simple and clear offerings. With the exception of certain specific segments, this evolution is the end of the era of the Expert, who knows and selects almost in the client’s place.

hOw hAvE yOU rEACtEd tO thIS?

We’re convinced that what creates value for clients resides in our ability on the one hand to help them understand the environment in which they are evolving, and on the other hand, to make choices adapted to their objectives and profile. And we think clients are prepared to pay for this guidance. Our response was thus to create, around our clients, an environment that enables them to have a clear vision of what they’re buying and gives them access to all the information they need. In addition to the transparency expected, it’s important to give clients greater control over their choices, by putting them at the centre of the system.

whAt ChALLENGES dId yOU hAvE tO FACE tO LAUNCh thIS SOLUtION?

A great deal of work was needed to integrate the tool into the information system, since clients sign contracts on the tablet and everything is then directly injected into our management system. With iNov, our ambition is to combine the best of the physical presence of an adviser at a client’s home with an administrative relationship which is digitalised to the greatest extent possible. Clients receive their documents by email and can find all their statements in their personal space on axa.fr. We also had to invest in the development of a dozen applications (network, life insurance, savings, diversification, etc.). Not to mention the support provided to our advisers, for whom iNov represents both a technical and cultural revolution…

hOw IS thIS MOrE EdUCAtIONAL AdvICE trANSLAtEd IN CONCrEtE tErMS?

We have further developed our advisory tools and processes by transforming the workstations into something more commercial and lighter, genuinely oriented towards the client. Concretely, we’ve equipped our advisers with iPads loaded with all the necessary sales support tools (CRM software, product simulation tools, digital media library, etc.). This tool will also enable us to help our advisers’ attitude develop further, shifting from face-to-face sales to collaborative sales.

hOw IS thIS EvOLUtION INtErEStING IN tErMS OF CUStOMEr INtIMACy?

The goal for the adviser is to guide every client through their own needs analysis, the definition of their goals and the identification of an appropriate response. Clients can access useful information themselves, and observe visually how diversification of their assets may or may not help them attain their wealth maximisation goals. By using our apps, clients can “follow training” about our products, and learn about other aspects, all in very accessible language. Our relationships are thus stronger over the long term, because by educating clients so that they are better able to make their own choices, we’re able to go through periods of strong turbulence in the market with less disruption.

tEStIMONIAL

48

stéphane jeanjean DISTRIBuTION DIRECTOR. CA SErvICES. GrOUPE CrédIt AGrICOLE

"wE put An intEgrAtEd multiChAnnEl ApproACh At thE hEArt of thE CliEnt rElAtionship."

49

stéphane jeanjean DISTRIBuTION DIRECTOR. CA SErvICES. GrOUPE CrédIt AGrICOLE

With its 39 regional Cooperative retail Banks and 7,200 BranChes, Crédit agriCole is in faCt a Business Close to its Clients. to ensure the Bank’s relationship With its Clients BeComes inCreasingly intimate, the Ca serviCes teams use the group’s information systems to integrate its Commitments to its Clients in a 2.0 Client relationship.

hOw ArE CLIENtS’ EXPECtAtIONS EvOLvING?

They want a bank that is simpler, more transparent, and they want to be able to take advantage of the autonomy granted by new technologies, while continuing to enjoy the benefits of a traditional bank: a bank that’s physically close by, characterised by a human relationship. They also expect greater responsiveness and proactivity, and more relevant advice. The internet has led to clients being better informed and that repositions the role of the adviser, focusing it on the added value of the advice given and the simplicity with which it is delivered.

hOw ArE yOU rESPONdING tO thIS?

At group level, this interactive and proactive relationship is the focus of a plan ("Client Relationship 2.0") which is centred on the values of building up relationships with clients: listening, providing loyal advice, delivering personalised solutions. These are the commitments that we’re integrating into an information systems transformation programme, which is at the same time part of a convergence project that will result in the progressive migration of all the regional cooperative banks to this shared platform by the end of 2013.

whAt hAvE yOU dONE IN CONCrEtE tErMS?

We’re putting in place a CRM solution coupled to a new data warehouse which will enable us to meet the challenge of understanding our clients, to communicate with them on

judicious manner. The portal will also be accessible by tablet, which will facilitate the mobility of advisers within and outside of the branch, and will modify the attitude and behaviour required when interacting with the client.

IN AddItION tO INFOrMAtION tEChNOLOGy, whAt OthEr ChALLENGES dOES ONE FACE whEN IMPLEMENtING rELAtIONShIP MANAGEMENt IN thIS MANNEr?

The job of the advisers will change, because they won’t necessarily work face-to-face with clients, but increasingly side-by-side or remotely. That could lead the bank to rethink the way certain spaces are designed. It will also result in managerial evolution which will have to be supported with new tools, but also with training since managers will have to run multichannel points of sale. To do this means having to integrate different client experiences, and no longer considering channels as cannibalistic but rather complementary, working for the benefit of the client relationship.

all channels and to personalise the client relationship. The objective is to put in place genuine cross-channel relationship marketing that responds to our clients’ expectations in terms of responsiveness and proactivity. knowing that in parallel we’re continuing to develop our tools and processes for each channel. With this in mind, the smartphone application "My Budget", available in the stores and used daily by 500,000 clients to access their accounts, was adapted for the various OS1 for use on tablets. We’re also taking the opportunity to smooth our processes and promote digitalisation, with a pilot project in our branches for electronic signatures using touch sensitive tablets. Initially this will only be applicable to transactions involving the till, and will over time be extended to include contracts as well.

whAt ArE yOU dOING tO ENSUrE thE CONvErGENCE OF ONLINE ANd OFFLINE?

We’re going to harmonise the client and adviser workstations within a natively multichannel and multi-device portal, whose underlying principles are based on the evolution of internet practices (search engines, ergonomics, etc.). That will promote dialogue between the adviser and the client, who will have access to the same interface and applications. The multichannel processes will be interoperable, digital and interruptible. The convergence between online and offline will thus be reinforced, since a process initiated on one channel can be interrupted and re-started at any time on another channel. The adviser will be informed of the progress made and will be able to take action in a 1 - OS : operating system

tEStIMONIAL

50

William koeBerlé CEO. GrOUPE MArIONNAUd

"improving thE quAlity of our CustomEr rElAtionship by AdApting our ContACt strAtEgy to EACh profilE in ordEr to inCrEAsE pErformAnCE."

51

for marionnaud, one of europe's leading retail perfume and CosmetiCs speCialists, the Customer relationship is in essenCe intimate, and has to Constantly eCho the values of the Brand: proximity, professionalism and pleasure. these "three ps" reCently inspired the evolution of the CommuniCation platform, the renovation of the stores and the online development around a promise: "everyday Beautiful".

whAt ChANGES IN bEhAvIOUr ArE yOU ObSErvING AMONG yOUr CUStOMErS?

In general they’re more volatile than previously. In parallel, the shopping experience has become more complex. In terms of buyer behaviour, 66 percent have visited the website – to find information, compare and reassure themselves about the price – before coming into the store. And lastly, all their actions have also been changing since the arrival of smartphones and tablets.

hOw dOES thIS ChANGE thE NAtUrE OF yOUr rESPONSE?

We continuously increase segmentation to drive greater proximity in the relationship. With more nomadic lifestyles that combine the virtual and the real, we have to adapt our offering of advice to every situation while ensuring that we remain coherent in terms of service, values and price. For example, we designed a loyalty programme in response to the expectation of recognition from customers who buy for themselves and want a personalised relationship. With our VIP Prestige card, they benefit from exclusive advantages (free delivery for all orders via the internet, invitations to private evenings in the store, free beauty diagnostics, birthday presents, a magazine “M and you” full of expert advice and beauty tips, etc.).

ANd ONLINE?

We have reworked our internet site: it’s simpler, faster, has all the useful information on the home page, offers the possibility for contact (via an expert interactive blog, M The Beauty Blog) and video advice (the Blush web series). It’s a way to share our know-how and expertise in an interactive, accessible and fun way, but also respond to the expectations of customers who may, at certain moments, prefer to be advised in that way rather than via a discussion in the store. On Facebook we also run a community of 160,000 members whose engagement level is among the highest in the sector.

hOw dO yOU rEINFOrCE yOUr kNOwLEdGE OF thE CUStOMEr?

We were pioneers in this area, and launched our loyalty programme in 1990. We’re thus fortunate to have a database of 14 million European cosmetics users. In 2012, in order to become more responsive, learn more quickly and compare and harmonise information at a European level, we internalised the management of this database and built up internal teams (CRM data minders ) to work with it and successfully steer our marketing operations in a more responsive and personalised manner, according to purchasing profiles. Reinforcing customer knowledge is a determining factor in order to offer without imposing, to seduce and to convince. For Marionnaud, improving the customer relationship is not only judiciously proposing products, it’s also about fostering an enduring proximity between the brand and the customer.

hOw hAvE yOU rEALISEd thIS AMbItION tO bE COhErENt IN CONCrEtE tErMS?

We launched an enormous renovation project for our stores in order to be coherent with our positioning and the expression of our values. Customer intimacy is promoted via the "advice bar"; the central location of the checkout in the store favours proximity; lastly, at the back of the store there is a space for beauty care that requires a calmer environment. Focusing on the notion of pleasure, the customer experience was rethought so it makes it possible to get your bearings, and to easily find the universe of your preferred brand, or that of a new temptation…

Professionalism is made concrete by the welcome given in terms of services such as the personalised beauty care diagnostic of IOMA1. It’s also embodied in a more anecdotal way (but in a manner very characteristic of our approach that responds to evolution in customer behaviour) by a small quick test on an iPad or touch screen on the wall, which helps you to find the perfume universe that resembles you and to select the perfume that’s right for you from among the multitude of products available.

1 - IOMA is a French cosmetics brand dedicated to skincare.

tEStIMONIAL

52

xavier quérat-hément QuALITy DIRECTOR. LA POStE GrOUP

"thE CAusE of ComplAints, muCh likE thE rEAsons for dropping A suppliEr, hAs morE to do with sErviCE And thE rElAtionship thAn with thE produCt itsElf."

53

xavier quérat-hément QuALITy DIRECTOR. LA POStE GrOUP

la poste group is improving the Customer experienCe By evolving the Way in WhiCh everyone makes use of its offiCes, and By putting in plaCe a multiChannel Customer serviCe operation. By getting Closer to their expeCtations, la poste knoWs it is Building trust among its Customers.

IN yOUr OPINION, hOw IMPOrtANt IS CUStOMEr SErvICE tOdAy?

It’s primordial. Customers compare their experiences every day. That experience depends on the service and the efficiency of processes, but also and above all on the attitude with which the service is provided. And if they’re not satisfied, they can tell hundreds – or even thousands – of people about it in record time, using social networks. The cause of complaints, much like the reasons for dropping a supplier, are nowadays related more to the service, and thus the relationship between the company and customer, than to the product itself.

hOw dO yOU MANAGE thIS qUALIty OF SErvICE?

By taking into account the complexity of new customer habits and all the dimensions of the customer experience. I’m convinced that the barrier between what happens inside and outside of the company is porous, and that consequently internal organisation should be coherent with this in mind. If you want to be seen and recognised as being genuinely aligned with the evolution in consumer habits and customer demands, you need to adopt a listening attitude and be responsive.

ACCOrdING tO yOU, hOw IMPOrtANt IS thE rOLE OF NEw tEChNOLOGIES IN IMPrOvING CUStOMEr INtIMACy?

Customer intimacy raises the question of the role of technology and people respectively in developing, and getting the most out of, a precise understanding of the customer. Soon we’re going to equip our postmen with smartphones to enable them to escalate in real time all the service needs of our customers: IT installation, delivery of medication, etc. That’s a concrete example of our "Spirit of Service” initiative, which is based on trust and proximity. Turning postmen into “need capturers” will improve our responsiveness, and illustrates well – as does the installation of machines in our service areas where customers can be helped by a postal worker – that the foundation of service innovation is the development of a strong relationship that brings together both human and technological elements in an optimal manner

ANd whAt IMPLICAtIONS dOES thIS hAvE IN tErMS OF OrGANISAtION?

Internally, it forces you to break down vertical barriers and stop working in silos, which is costly and unresponsive. Co-development of services is a good way to achieve that. For the transformation of the post offices, we brought together customers, consumer associations and postal workers to look for innovative customer relationship solutions. This renovation also made it possible to focus on the value of employees’ work and to envisage new offerings – such as mobile telephony – likely to attract younger consumers, and more generally, to change the image of the post office.

hOw dO yOU MANAGE thE rELAtIONShIP ACrOSS thE vArIOUS ChANNELS?

The coherence of information across different channels, much like the personalisation of messages, remains a considerable challenge for a business which handles flows as large as those at La Poste. Nonetheless, our “Ambition of Service” project has led us to put in place a multichannel customer service which provides simplified access to the entirety of our services. This department handles almost 800,000 calls per month on the 3631 helpline, the majority of which are requests for information. And the customer service is also accessible via the internet or social media, in line with the principle of ease of access and simplification of the relationship.

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mohamed soltani CORPORATE MARkETINg STRATEgy DIRECTOR EMEA. SChNEIdEr ELECtrIC

"wE’rE rEorgAnising And struCturing oursElvEs so wE CAn rApidly shArE rElEvAnt And usEful informAtion with our pArtnErs And CustomErs."

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mohamed soltani CORPORATE MARkETINg STRATEgy DIRECTOR EMEA. SChNEIdEr ELECtrIC

sChneider eleCtriC is adapting to evolution in its markets, and also to the development of neW Behaviours, By trying to get the most out of the latest teChnologies availaBle – for Both its direCt Customers as Well as its system integrator partners and distriButors.

hOw ArE yOUr CUStOMErS’ EXPECtAtIONS EvOLvING, ANd hOw ArE yOU AdAPtING tO thEM?

More and more of the customers of our system integrator/installer partners and distributors want a more direct and integrated relationship with us. We respond to that demand by providing a product offering, but also with solutions ranging from supervision to execution.

hOw hAvE yOU bEEN MANAGING thE rISkS LINkEd tO thIS “dOUbLE rELAtIONShIP”?

We’ve been extremely careful to not cut our partners out of the loop. We provide them with additional and complementary support, to make sure that the development of this parallel relationship is accompanied by increased attractiveness to customers and prospects for them. We improve our interaction with them by enabling distributors to access an increasing amount of information on our products: availability obviously, but also technical information, environmental reporting, etc. And as regards systems integrators, we enable them to configure an offer online.

hOw ArE yOU rEINFOrCING CUStOMEr INtIMACy?

We use innovative CRM approaches to monitor the interests and expectations of customers and prospects in function of the information they are willing to share, by way of various points of contact and throughout the entire lifecycle of our relationship. For example, in the initial stages of the relationship, customers don’t need to be in contact with a salesperson. That can be counterproductive, both for them and for us. That’s why we’ve put in place a dedicated team of knowledge consultants, not for the purpose of selling, but rather to help customers and prospects in their research on common subjects.

IN whAt wAyS ArE NEw ChANNELS ChANGING thE EXPECtAtIONS IN thE CUStOMEr rELAtIONShIP?

Many of our current customers continue to like traditional means of interaction: access to information from us via seminars, multimedia presentations, trade fairs, magazines, etc. But a significant proportion of new customers are acquired thanks to the use of social media. These are customers that are driving the growth in new activities and businesses in the emerging economies (Brazil, Russia, India, China, South Africa, etc.), and who need information that can be used quickly and easily.


We’re reorganising and restructuring our activities so that we’ll be in a much better position to rapidly share relevant information which is useful for our partners and customers. In particular, we have redesigned our marketing campaigns so that they integrate and respond to the needs of users of social networks, tablets and other nomadic tools. For example, within each of our operational units we’ve put in place a team dedicated to “content and communities” which acts as a clearing house for marketing content. In this way, the best elements of our ideas are aggregated, combined and converted into “transverse” content.

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franCk suhit MARkETINg DIRECTOR. LyrECO

"wE nEEd tools thAt EnAblE us to optimisE thE timE spEnt on fACE-to-fACE prEsEnCE."

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the frenCh leader in offiCe supplies and solutions, lyreCo is also present in 44 Countries, via a very dense sales forCe WhiCh alloWs it to stay very Close to Companies’ needs. this Way of Working is today Capitalising on the Benefits offered By the latest teChnologies.

whAt ArE thE PArtICULArItIES OF yOUr MArkEt?

Office supplies represent only a tiny part of businesses’ non-strategic purchasing (1 percent). It’s also a visible sector which is often targeted by procurement for experimentation (e.g. with e-procurement), and which suffers from the crisis due to the fact it is strongly linked to employment. So, the economic climate is poor, and new technologies have a tendency to structurally reduce our activity, as a result of digitisation.

hOw dO yOU SUCCEEd IN GrOwING?

you have to gain additional market share, and to do that you have to get bigger. We also have to deliver added value to our customers. In the form of new products, of course, but also increasingly the global solutions they expect and which associate our products with new services (logistics, storage, sourcing, etc.). We’re shifting from the distribution of supplies to providing enterprise solutions.

hOw ArE yOU USING NEw tEChNOLOGIES tO SUPPOrt thE PErFOrMANCE OF yOUr NEtwOrk?

By way of our SFM (Sales Force Mobility) programme which gives access to all commercial information and site visit reports via mobile devices. The tablet is proving particularly valuable for us. Buyers have very little time to spend with us, and appointments often take place “in the hallway”. That requires a very short connection time and the ability to work standing up. It’s all about reducing face-to-face time in order to optimise the time of presence. This is a major challenge, because even though 60 percent of our orders are placed via the internet – which customers like thanks to the speed and personalisation options it offers – we won’t be able to grow without having a highly efficient sales force in the field.

hOw dO yOU tAkE CUStOMEr EXPECtAtIONS INtO ACCOUNt?

We’ve organised ourselves to be as close to them as possible. We have segmented our commercial approach to our key accounts, as they don’t all have the same procurement processes. In addition, we have a sales force capable of responding globally to the wishes of the procurement department, and thanks to our sales representatives who visit all sites and departments, we make sure we respond to the needs of users. In France, 800 of our 2,000 employees are in sales, and worldwide commercial people make up 4,000 of our 10,000 employees.

hOw ArE yOU rEINFOrCING CUStOMEr INtIMACy wIth thESE StAkEhOLdErS?

We’re developing our relationship marketing. For example, we run satisfaction surveys via the internet that enable us to channel information on user satisfaction directly back to procurement departments, in a completely neutral manner. A similar programme, Platinum, puts our main strategic suppliers in contact with our customers to help them prepare their requests for proposals. These initiatives enable us in particular to reinforce our credibility.

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guylène tarrazi-prault CuSTOMER RELATIONShIP & SATISFACTION DIRECTOR. MICrOSOFt FrANCE

"thE Continuity thAt ConsumErs ExpECt in thEir CustomEr ExpEriEnCE AssumEs An EvEn grEAtEr sophistiCAtion in thE undErlying tools."

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possiBly more so than any other Business, miCrosoft adapts to the evolution in the haBits and expeCtations of its Customers. its leadership position in the seCtor of mass market information teChnology is leading it to integrate soCial netWorks inCreasingly deeply into its Customer relationship management.

whAt EvOLUtION ArE yOU ObSErvING IN CONSUMEr bEhAvIOUr?

Consumers have an increasing amount of choice among sophisticated technologies and devices that communicate between themselves, including when they are mobile. Currently they use an average of four every day! In their customer experiences they expect a continuity which assumes, in addition to the quality of the network, great sophistication of the underlying systems and tools. With the cloud, documents also have to be accessible all the time, and the evolution of the man-machine relationship, in particular with the rise of more intuitive interfaces, has today made the unavailability of tools unbearable.

hOw ArE yOU rESPONdING tO thESE NEw EXPECtAtIONS?

As a software producer, we have to respond to these multichannel expectations by giving users the option to change their mode of contact whenever they want, while still being able to find the same message regardless of the media. And of course this has to be instantaneous, because 20 percent of online shoppers expect a response within the hour.

yOUr PrOdUCtS thEMSELvES hAvE tO EvOLvE…

Indeed. Windows 8 enables everyone to personalise their interface and thus to be the co-designer of the offering. It also responds to the trend for convergence between professional and private worlds, and ByOD1, We have also launched

whAt IS thE INFLUENCE OF NEw MEdIA ON yOUr MArkEtING ACtIONS?

New media, which can today be considered fully-fledged media given the associated usage levels, are at the heart of our marketing approach. For example, for the launch of Windows 8 and Windows Phone 8, we put in place a monitoring system for social networks that was as complete as possible, linked to full-time social media managers. A more original element of our approach was that in advance of these launches we worked with passionate influencers from all domains (art, fashion, etc.), outside of the field of technology, so they would gain a sense of ownership of the interface and integrate it into their daily lives. That enabled us to boost our audience in media beyond our usual press reach, but also to identify the causes of obstacles for the public at large. For example, the problems that could be caused by the level of security required for password selection, or the disappearance of the “start” button. We learned a great deal!

Windows Phone 8, and our OEM partners have launched new hybrid PCs running Windows 8, to respond to the expectations related to mobility and the evolution of the man-machine relationship.

hOw dO yOU MANAGE yOUr CUStOMEr rELAtIONShIPS?

Primarily via our internet site, which is the number one corporate site in France, with just over 20 million unique visitors per month. It’s the main space for communication and interaction if you compare it to the 30,000 interactions registered every month in our various call centres. We also try, with the help of experts from Microsoft communities (called MVPs), to answer the questions posted on forums, and we’re increasingly active on the social networks on which we currently have 2 million fans and followers. The expectations towards Microsoft have always been high. These expectations have grown, taking into account the constant growth in hardware linked to Microsoft technologies: PCs, tablets, smartphones and gaming consoles. For businesses today, the ability to create a close and personalised relationship is a key driver of loyalty and satisfaction. In this sense, social networks are transforming and accelerating expectations. For Microsoft, social networks represent a fantastic opportunity to reinforce proximity with our customers and to continue to respond to their demands increasingly rapidly.

1 - BYOD : Bring Your Own Device, a practice whereby personal equipment (telephone, laptop computer, tablet PC, etc.) is used in a professional environment.

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niColas terrasse BuSINESS SOLuTION MANAgER. SAS

"inCrEAsing thE ConvErsion rAtE dEpEnds on intElligEnt intErACtion projECts."

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even though Businesses are undeniaBly more at ease in digital Channels today than they Were previously, they have not yet fully understood the organisational ConsequenCes of a Customer intimaCy strategy and still have diffiCulty prioritising the aCtions to take.

whAt EvOLUtION ArE yOU ObSErvING IN CONSUMEr bEhAvIOUr?

Primarily a confirmation of the trends already underway for several years. In addition to that, acceleration: the “on demand” phenomenon, permanent connectivity and interaction made possible by new technologies. The direct consequence thereof is the expectation of an immediate response, in real time, and unfettered thanks to mobile technologies. An increasing need for synchronisation of the interactions experienced in different channels. Also worth mentioning is the increasing prevalence of recommendations, to the detriment of the influence of mass medias, and the rise of social networks as a communication tool for businesses.

whAt ChALLENGES dOES thIS EvOLUtION POSE FOr bUSINESSES?

The problems are organisational rather than technical. Companies that work in silos are unable to respond to all these expectations. Many companies are aware of this and are considering reorganising themselves over the short or medium term. On the other hand, as regards technology many don’t have a clear idea of where to start. Should they focus on social networks, the real time aspect, or understanding the customer? All this while realising that if taken on frontally, these three elements represent a work of colossal scope.

IN CONCrEtE tErMS, INtO whICh PrOjECtS ShOULd thIS PrIOrIty bE trANSLAtEd?

Today you need to have an industrial capability to process the large volumes of data available. Not only data from the business, but also all exogenous data, data from the social networks – which is even more important as recommendation is becoming critical – and unstructured data derived from all digital interaction. Everyone needs to understand that Big Data is no longer an alternative: it is necessary to be able to process large amounts of heterogeneous data in real time to have any hope of giving a relevant response, creating value and driving loyalty. you then have to be capable of synchronising the data and personalising the message, regardless of the channel. Lastly, in the context of shrinking marketing budgets, the question of performance management and measurement also needs to be addressed in order to determine which tools create the most value.

hAvEN’t yOU ObSErvEd A CErtAIN AMOUNt OF PrOGrESS?

Businesses are increasingly at ease in digital channels, but they don’t always extract the greatest value from them, often being content with the cost advantage offered by this channel compared to offline. This is of course suboptimal if you consider the spectacular collapse in conversion rates attributable to email. Companies that are happy to limit their activities to those customers that react to their messages, and that are unable to respond to incoming requests, will miss significant opportunities.

whErE ShOULd COMPANIES StArt, IN yOUr OPINION?

I’m convinced that the social network element is not the highest priority if you want to increase your conversion rate and move beyond an informal and entertaining knowledge of the brand. The number one priority is to be capable of interaction and to be able to receive enquiries from customers. you then need to be capable of responding within a given time. Finally, for this response to have value, it must be relevant. This in turn presupposes an understanding of the customer which is as thorough as possible.

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raphaël Weiler CuSTOMER RELATIONShIP MANAgER. UPSA

"rEinforCing CustomEr intimACy: nEw ConstrAints And building up ExpErtisE."

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the pharmaCeutiCal industry also has to respond to its Clients’ expeCtations in terms of flexiBility and responsiveness. from the online portal to moBile appliCations, upsa – the pain and otC1 division of Bristol-myers squiBB – is inCreasing the numBer of serviCes it provides to make pharmaCists’ lives easier, By foCusing on autonomy and simpliCity.

whAt ChANGES hAvE yOU ObSErvEd AMONG yOUr CUStOMErS?

Pharmacies today work with almost one hundred wholesalers and direct suppliers! That in turn requires an effective and efficient organisation. They organise their “procurement” function mainly by being more selective in their range of products or by grouping together when buying. 70 percent of pharmacists are members of such a purchasing collective. We’re also starting to see that some of them would like to order small quantities more often. Lastly, more generally, we’re finding the same expectations of agility and immediacy as in B-to-C markets.


If we want to keep working with as many of them as possible, it’s imperative that we develop a commercial approach that matches their expectations in terms of product quality, but also in terms of services. When it comes to purchasing, our customers can choose between our network of pharmaceutical representatives or our sales department. Even though we’ve always stood by them – in particular to help put in place new products – we now increasingly need to support them in their advisory role, and in the new tasks imposed upon them by the hPST2 bill. This commitment is at the heart of our mission.

ANd whAt ChALLENGES NEEd tO bE FACEd tO rEINFOrCE CUStOMEr INtIMACy?

Providing greater autonomy, speed, agility and simplicity creates new constraints for the organisation – so expertise needs to be built up in these new areas. In June 2012 we set up a governance committee bringing together everyone involved with customers in order to harmonise our communication, anticipate the risk of marketing pressure, share experiences and optimise costs. We’ve also put in place an NPS (Net Promoter Score) indicator to measure the quality delivered and to make sure it’s meeting expectations. Lastly, putting in place new tools also means ensuring our customer contact is coherent. We need to further develop our CRM into an intelligent tool that will enable us to respond to – or even anticipate – the needs of pharmacists.

whAt hAvE yOU PUt IN PLACE, IN CONCrEtE tErMS?

We’ve put in place a tool that enables our customers to order via the internet in a fully autonomous manner. And orders have increased tenfold in two years’ time! We’re also responding to the evolution in behaviour among the purchasing collectives to enable pharmacists to better manage their needs (on either an ad hoc or weekly basis). In addition to delivering directly and to wholesalers, we also supply the platforms of certain purchasing collectives.

hOw ArE yOU rEINFOrCING CUStOMEr INtIMACy wIth PhArMACIStS?

We try to the greatest extent possible to go beyond the purely transactional aspect by launching mobile applications that enable us to support our customers in their daily operations and which respond in real time to their needs. Some are already available (such as GéoMédica which makes it possible to easily locate healthcare services throughout metropolitan France) and we’re currently thinking about a genuine customer service application (for monitoring deliveries, initiating complaints and providing click-to-call functionality).

1 - OTC : Over The Counter (or self-medication), medicines which are available in pharmacies without requiring a prescription.

2 - HPST bill: the Hospital, Patients, Health, Territories bill (HPST: Hôpital, Patients, Santé et Territoire) bill passed in France on 22 July 2009 which aims over the long term to put in place a system of quality healthcare services accessible to everyone, which will meet the entirety of healthcare needs.

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didier zouBeïdi MARkETINg DIRECTOR. EdENrEd FrANCE

"wE rEinforCE intimACy with our CliEnts, thEir bEnEfiCiAriEs And our AffiliAtEs."

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speCialised in prepaid Corporate serviCes, edenred (formerly aCCor serviCes) is at the heart of a tripartite Customer relationship BetWeen Companies, BenefiCiaries and affiliates. in addition, edenred has to manage its oWn Client relationships, and Come up With intelligent solutions to Bring to life the relationship BetWeen all of its Customers in the Broader sense.

whAt EvOLUtION hAvE yOU ObSErvEd IN thE EXPECtAtIONS OF yOUr CLIENtS?

We have relationships with various customers in the broad sense: the businesses who are our clients, their employees (the beneficiaries), and also all the partners in the network of product and service providers that accept our vouchers (affiliates). Our de facto clients, the companies with which we have a direct commercial relationship, want to spend less time ordering and are more demanding in terms of delivery lead times or the information available regarding the status of their order.

hOw hAvE yOU AdAPtEd tO thESE EXPECtAtIONS?

We increasingly manage our client relationships via an extranet whose functionality we continuously enrich in terms of order entry and providing information of interest to our clients in our various markets: employee benefits (hR), motivation and reward (marketing and sales departments), professional cost management (buyers and general services managers) and public social programmes (territorial collectives, state, etc.). In addition, the frequency with which we interface directly with clients’ management system is increasing, enabling them to save time.

dO yOU MAkE USE OF MObILE tEChNOLOGIES tO IMPrOvE thE PErFOrMANCE OF yOUr COMMErCIAL NEtwOrk?

We’ve put in place a pilot mobile CRM application for a dozen of our sales team with BlackBerries. It offers them intuitive access to contracts, product news, ongoing complaints and an overview of the latest interaction with each client. Basically, having access to this key information allows us to increase the value of every client contact, and enables us to be more responsive and relevant when preparing for an appointment.

IS thAt ENOUGh tO FOrM thE bASIS FOr COMMErCIAL dIFFErENtIAtION?

To add more value as an intermediary and to set ourselves apart from the rest, we need to go further. By way of our ABC strategy (Affiliates - Beneficiaries - Clients), we’re trying to create intelligent means of reinforcing the intimacy among all our customers in the broader sense. A recent example is the website "Vous Avez Choisi" (you have Chosen) which enables employees of a company to benefit from targeted offers from a restaurant. The key aspects are increased purchasing power for beneficiaries, incremental business for the affiliate and improved quality of service for the client company.

hOw ArE yOU rEINFOrCING INtIMACy wIth yOUr CLIENtS?

In addition to this “one-to-one” relationship put in place with our customers in the broader sense, we’re also going beyond the merely transactional by publishing a yearly survey, the Edenred Ipsos Barometer on well-being at work and employee motivation, which allows us to measure the expectations of beneficiaries. In addition to generating input for our R&D operations, this survey enables us to deepen our interaction with our clients and prospects. We’ve also equipped ourselves with powerful multiproduct CRM tools in order to manage all our clients and affiliates. We’ll deploy the same tool for our beneficiaries as soon as our Ticket RestaurantTM meal vouchers have been shifted into electronic format, thus creating a direct relationship between our beneficiaries and us.

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analysis4 CuSTOMER INTIMACy BAROMETER 2013

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Christophe amouroux SENIOR PARTNER, CRM AND CuSTOMER INTIMACy. CSC

"thE CustomEr ExpEriEnCE is no longEr linEAr: todAy it is Continuously bEing rEthought."

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Christophe amouroux SENIOR PARTNER, CRM AND CuSTOMER INTIMACy. CSC

ANALySIS

aCCording to this expert on Customer intimaCy, Businesses have to Capitalise on the opportunities offered By neW moBile terminals and ensure the intelligent ConvergenCe of online and offline Channels.

whAt EvOLUtION ArE yOU ObSErvING IN CUStOMEr PUrChASING bEhAvIOUr?

To compensate for reduced purchasing power, we’re seeing a strong increase in the offering of products and services. The emergence of new devices (smartphones and tablets) has led businesses to launch a plethora of offerings for these new media. In this universe shaped by mobile technologies, consumers are seeking instantaneity, so they can complete a purchase on just a few clicks, quickly and simply.

whAt IS thE bESt wAy tO rESPONd tO thESE NEw bUyEr bEhAvIOUrS?

Confronted with this digitisation of the customer experience, the web has become a favoured – and inexpensive – channel for businesses, to the detriment of more traditional channels. It thus also has a key position in the customer relationship. The continuous quest for mobility and instantaneity translates into an increasingly important need: for businesses to be able to provide an adequate offering, in the right place, at the right time, by way of new terminals and geolocation tools. In this market, characterised by a multiplicity of offerings and limited product differentiation, the customer relationship needs to be injected with a new dose of dynamism. The customer experience is no longer linear; it has to be continuously rethought, in function of the distribution channels preferred by consumers. Only in this way will businesses be able to maintain their power to influence their customers.

characterises these applications on PCs is not reproduced on tablets. The tablet also gives the business a modern image. A company may choose to equip its sales force with tablets to improve commercial performance, but also to portray the image of an innovative business. But technology without strategy cannot achieve everything. The current climate is forcing businesses to be agile and responsive when faced with increasing volatile customers. We see it among our clients: it is their ability to differentiate themselves not on the basis of the product, but rather on the basis of how it is offered, which is a real driver of differentiation. Achieving this depends in turn on a coherent strategy of customer intimacy, which reinforces attachment to the brand, by way of interaction and the complementary nature of the various channels.

IN thAt CONtEXt, whAt IS thE bESt wAy tO ENSUrE COhErENCE ACrOSS thE vArIOUS dIStrIbUtION ChANNELS?

The complementary aspects of online and offline have to be at the centre of companies’ thinking. The challenge is to ensure the intelligent convergence of channels for interaction, in order to make the intention to purchase concrete. For businesses that have made call centres the mainstay of their commercial strategies, putting in place a strategy that is 100% digital can prove to be complex, because the human relationship is at the heart of their strategy. So the customer experience cannot be embodied only via electronic means. For example, an up-selling operation for consumer credit being run by a cell centre will be more difficult to carry out if the sales process is channelled via the web only.

tO whAt EXtENt ArE MObILE tEChNOLOGIES rEINFOrCING thE PErFOrMANCE OF SALES NEtwOrkS?

The success of smartphones and tablets has transformed behaviours. The new generation of tablets are decision support tools: easy to carry, they are not intrusive in the commercial relationship (as can be the case for a traditional PC). The equipment used by salespeople improves sales efficiency and productivity, as the sales process can be entirely dematerialised thanks to a tablet (as a medium which supports the sales pitch, product presentation and electronic signature of the contract). In addition, the usability of these new terminals favours the use of management software by the greatest number of people (across all hierarchies and generations), on condition that the complexity that

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pierre kalfon PARTNER, CRM AND CuSTOMER INTIMACy. CSC

"A strAtEgy of CustomEr intimACy is AbovE All About knowing how to EnsurE thE ConvErgEnCE of All rElAtionship mAnAgEmEnt systEms And CustomEr intErACtions in A fluid, CohErEnt mAnnEr in rEAl timE."

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ANALySIS

the Context is one of reCurrent and lasting Crisis, reduCed purChasing poWer and investment CapaBility, evolution in Consumer Behaviour and neW haBits (namely moBile) – all faCtors that are forCing organisations to rethink their strategies for Customer intimaCy. Based on the results of an annual survey Carried out in Cooperation With tns sofres, CsC analysed the trends that Will shape 2013.

whICh EvOLUtION ArE yOU ObSErvING IN CUStOMEr bEhAvIOUr?

In addition to purchasing behaviour that favours the best price, we’ve also noted that B-to-C customers interact with businesses all the time and everywhere. Equipped with new devices with excellent usability, they surf, chat, tweet and zap frenetically. For businesses, these new habits are problematic for their modelling strategies, which are often based on overly linear customer experiences. Even customers themselves don’t always know what they’re going to do during the purchasing process!

In B-to-B, we’re observing strong expectations of immediacy in the responses that organisations have to provide buyers. And organisations are beginning to equip themselves correspondingly, with increasing numbers of tablets and other devices. In addition to improving the productivity of sales people, they make it possible to reinforce their efficiency. Thanks to their greater interactivity and involvement, these devices often place them in a position that is more one of exchange and sharing rather than one of strict negotiation. ArE bUSINESSES AbLE tO COPE wIth thESE dEvELOPMENtS?

Organisations vary greatly, even if most of them have invested heavily in developing their multichannel systems. In addition to making several channels for interaction available, it’s important to

humanity into digital channels. Introduce intelligent and useful technology at the point of sale. And take advantage of the enthusiasm for these new devices to use them as a means to close off the exits that can be taken at every step by flighty and versatile customers!

ANd LAStLy, whAt IMPACt dOES thIS hAvE ON thE OPErAtING MOdEL OF OrGANISAtIONS?

They need to profoundly transform themselves in order to (once again) be competitive, and ensure this cross-fertilisation between channels takes place. It’s important for businesses to break down the barriers in their customer organisation in order to guarantee a homogeneous approach and treatment across all channels, for every interaction. Businesses need to disentangle their information systems to be able to offer front ends that are unified and coherent from a customer point of view. They need to build partnerships that allow them to offer the services customers want, regardless of whether the services are produced by them or by third parties. Organisations need to ensure that every employee is conscious of the importance of their role in the customer value chain, to guarantee in-depth and uninterrupted coverage of that chain.

This transformation of the operating model is a condition sine qua non for the success of all customer intimacy strategies, and this is even truer in a hyper-competitive environment which favours interaction anywhere, anytime, across all channels!

ensure interoperability between them. And to guarantee that customer processes can be interrupted and restarted, in the same channel or another, at the same point at which they were stopped. This in turn requires a high degree of coherence of the information provided, as well as the capturing in real time of data at every step of the process, to the benefit of the next step in the customer experience. This can be a real challenge for many businesses that have built their cross-channel systems in successive layers, according to a silo-based approach which the development of the internet only served to reinforce.

IN thESE CONdItIONS, whAt CAN bE dONE tO IMPrOvE thE CUStOMEr EXPErIENCE?

Firstly, moving away from an overly theoretical approach to buyer behaviour. Even though segmentation is still worthwhile, customer intimacy cannot be limited by the application of relationship models to segments or customer experiences that have been the object of too many stereotypes. It’s necessary to adapt and rethink the role of each channel. After that, it’s less important to ensure the interoperability of channels among themselves than the interoperability of the knowledge of customers and offerings: capture the information in-store, via a tablet; make use of all information collected in real time to adapt the offering, and to better put the interaction in context; rethink digital media in function of customer habits, rather than in function of the enterprise.Lastly, support the convergence between the two worlds, online and offline. Re-inject

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Customer intimaCy as a differentiation strategy

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Choosing a transformation strategy

bEttING ON ChANGE: A MUSt

In the first few months of the crisis, there was one question on everyone's lips: how do we to react? Many companies were tempted to adopt the cost killing approach. Caution is in order, however: although cost management is more crucial than ever, blindly slashing costs can cripple the company later when business picks up again, or cause it irreparable damage. In other words: companies must reef the sails to survive the storm, but must also prepare the ship to move forward again when calmer seas return. They must make the necessary savings in the short term, but guard against sacrificing investments that are essential for the medium term.

Preparing for the post-crisis period is without a doubt the greatest challenge companies are facing in 2010. “The companies that adapt today will be the first to bounce back and will be well ahead of their competitors in the new economic environment," says Claude Czechowski. The other major challenge lies in managing change in times of economic slowdown. Failing to act is not an option. It is therefore important to have created a process for instigating change – preferably before the crisis hit. Setting a new course and bringing new impetus during the

ALL TRANSFORMATION NECESSARILy ENTAILS A BREAkAWAy OR A RADICAL REFORM. FOR ThOSE AT ThE hELM, ThE BIggEST ChALLENgE IN PERIODS OF TRANSFORMATION LIES IN CLEVER hANDLINg OF BOTh ThE MAgNIFyINg gLASS (TO SAVE MONEy AND IMMEDIATELy FIND ROOM TO MANOEuVRE) AND ThE TELESCOPE (FOR STRATEgIC LONg-TERM VISION). ThIS IS A DIFFICuLT BuT CRuCIAL ExERCISE. PROVIDED, OF COuRSE, ThAT ThE TELESCOPE IS PROPERLy FOCuSED ON ThE CLIENT AND ThAT ThE DIFFERENTIATION STRATEgy IS FOuND, SINCE FROM ThIS WILL STEM ALL ThE MAJOR DECISIONS ThAT FOLLOW.

Different customers seek different kinds of value. Because a company can't be the best at everything, it must choose its customers, properly identify the value offered to them, and constantly increase this value by choosing a business model that is uniquely linked to it.

According to Michael treacy & Fred wiersema, in their the book the discipline of Market Leaders*, by refusing to choose, companies adopt a hybrid business model that does a little of everything at once and is a source of confusion, stress and misspent energy. this equates to steering a ship without a rudder, with no clear way to resolve conflicts or set priorities. Looking out for the company first, instead of the customers, complicates management and wastes time. this is how a business can find itself adrift on the stormy seas of new competition.

thE NEw rULES OF COMPEtItION

crisis without any prior preparation is extremely dangerous and in all likelihood even impossible. If teams have already begun a process of change before the economic downturn, it will be easier to speed up or slow down the rate of change according to the company's situation. And it will be even easier to choose a transformation strategy, starting with a clear differentiation strategy.

dECIdING ON A dIFFErENtIAtION StrAtEGy

When faced with shifts in the environment, companies must prepare their own strategic change. This doesn’t mean changing everything, of course, but rather clearly defining the company’s products and services in order to stand out from competitors and maximise performance. To do this, a clear differentiation strategy must be developed along one of the three following lines:

Operational excellence (cost): products positioned in line with the market average, at the best price, with a minimum of hassle. The operational excellence product range is above all simple. The hard-discount sector or IkEA, for example, have led the way in this area: it can be profitable to reduce service levels if the price/quality ratio of the products remains attractive, if purchasing is made easy and if the system is infallible.

Product leadership (creativity): putting technology to new uses, inventing new services, focusing on user-friendliness or the environment – rational (but genuine) innovation makes all the difference as long as the company always stays one step ahead. For instance, Apple competes on performance, not on price.

Intimacy (customer): it is vital for every company to know its customers and their needs. Some make this a true asset – with appropriate targeting, efficient management of customer relationships, tailored offers or new distribution networks. Companies that cultivate intimacy with their customers, such as the Accor hotel chain with its exclusive A-Club programme, are not interested in one-off transactions. They build relationships. *Michael Treacy & Fred Wiersema, The Discipline of Market Leaders,

1997, Addison-Wesley Pub. Co

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AN ESSENtIAL ChOICE

Of course, while reading this, some are already thinking that their company would be better off betting on all fronts (on the basis that to choose means to also to exclude). The Leading Edge Forum, CSC’s strategic planning and research centre, has shown that companies that are unable to choose are unable to reach a level of excellence in any domain. Their efforts are dispersed and their position is threatened from all sides by competitors or newcomers with a clear differentiation strategy.

Furthermore, customers know how to identify the three types of value and generally don’t expect to get them all at once from a single supplier. According to the researchers, “the choice is difficult, because it means concentrating all efforts on what is essential. But the lesson drawn from market leaders is clear: they create a genuine difference in one value discipline while remaining competitive in the two others.”

bUILdING A NEw bUSINESS MOdEL ANd AdAPtING thE PrOCESSES

Choosing a differentiation strategy (or value proposition) naturally leads to business models that are very different in terms of organisation, production processes, customer relationships, management, and of course information systems.

Of course, different value propositions require different business processes. Take distribution policy, for example. The operational excellence scenario (differentiation through cost) requires a single procurement department and standardised retail outlets that are usually self-service. The customer intimacy scenario, on the other hand, requires a more flexible organisation in which the decision making power lies much closer to the end client and where orders are taken by salespeople who have some room to negotiate.

These arguments are valid for all activities in the company – with one leitmotiv: once the model is chosen, it must be adhered to. That is the challenge of the value discipline.

COSt, CUStOMEr Or CrEAtIvIty: thESE thrEE CS dEtErMINE thE OPtIONS AvAILAbLE tO bUSINESSES FOr wIthStANdING thE CrISIS, ANd bEyONd thAt FOr OvErhAULING thEIr bUSINESS MOdEL. thESE ChOICES MUSt bE MAdE NOw. LAtEr ON thEy wILL dEtErMINE whO wILL bE AhEAd OF thE GAME ONCE thE ECONOMIC CLIMAtE ALLOwS FOr IMPrOvEd vISIbILIty.

4 rules FOr trUE MArkEt LEAdErS rULE N°1: OFFEr thE bESt PrOdUCt rANGE ON thE MArkEt by EXCELLING IN ONE OF thE vALUE dISCIPLINESMarket leaders start by creating a value proposition that is appealing and unmatched. Only then do they seek to achieve efficiency in the other two areas.

rULE N°2: MAINtAIN A dEGrEE OF COMPEtItIvENESS IN thE OthEr vALUE dISCIPLINESthere is no need to strive to be the best in all areas – it is wiser instead to ensure that any drop in performance in a secondary value does not damage the primary customer value.

rULE N°3: dOMINAtE yOUr MArkEt by IMPrOvING yOUr vALUE FrOM yEAr tO yEAr Market leaders are threatened by both the companies that try to copy their models and those that increase expectations related to the other types of value. the solution? Constantly maintain efforts and raise customer expectations while raising the value standards. to remain a market leader, it is not enough for a company to offer the best product, the best price, or the best overall solution on the market today: it must be able to offer them today, tomorrow and the day after.

rULE N°4: bUILd A bUSINESS MOdEL thAt IS dEdICAtEd tO CrEAtING UNbEAtAbLE vALUE Continuous improvement of the business model can make the product range offered by competitors much less appealing – or even ruin it by making it obsolete. the business model is the ultimate weapon of the leading company that wants to dominate its market.

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adhering to a value disCipline ChOOSINg A VALuE PROPOSITION IS AN ACT OF RENEWAL. IT IS NOT MERELy A NEW COMMuNICATION STRATEgy, BuT A gENuINE MOVEMENT ThAT MuST DRIVE ThE WhOLE COMPANy. ThE VALuE PROPOSITION gIVES MEANINg TO ThE COMPANy’S STRATEgIC ORIENTATION AND TO ALL SuBSEQuENT DECISIONS, By IMPOSINg A ROAD MAP OR DISCIPLINE ON ALL AREAS OF ThE BuSINESS. ThIS “VALuE DISCIPLINE” PERVADES ThE ENTIRE COMPANy, FROM ITS SkILLS TO ITS CuLTuRE. IT DEFINES WhAT ThE COMPANy DOES, AND ThEREFORE WhAT ThE COMPANy IS.

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integration, where companies and their suppliers pool their resources (and integrate their information systems) to eliminate superfluous processes and improve the logistics flow from order through to delivery. Purchase approvals, orders and stock replenishing are replaced by new continuous resupply processes. Bills of lading and confirmations of receipt have already disappeared.

INFORMATION TEChNOLOgIES uSED TO ThEIR FuLL CAPABILITy

The new rules of competition make operational excellence necessary for many companies. It is made possible by information systems, which are both the nervous system and the backbone of the company. Decision making tools have become widespread within companies that have chosen this value discipline. Today they are integrating mobile technologies before their competitors, in order to both extend their control and improve their customer service.

CuSTOMER SERVICE: ThE ExCELLENCE OF SIMPLICITy

Because poor service can increase the total perceived cost for the customer, companies aiming for operational excellence have shifted their attention to this new area, focusing on three rules: the service must be accessible, flawless and immediate. If we think back on all the minor hassles that hiring a car once involved (a task that is now extremely simple), we can truly measure the progress made in just a few years.

A word of caution, however: here again, diversity is the enemy of efficiency. The right strategy is thus not to offer the best service, but rather to uphold simple practices. And if necessary have customers adapt themselves to the company: after all, haven’t fast food restaurants managed to have their teenage customers clear their tables even though they refuse to do so at home? Similarly, low cost airline customers have gotten into the habit of eating before or after flights rather than during.

thE OPErAtIONAL EXCELLENCE dISCIPLINE

Operational excellence has an historical model: henry Ford. Shaking up the pre-existing standards of cost and performance, this famous manufacturer built his industrial empire on a simple idea that he instilled throughout his company: production must be efficient. Of course, nowadays Ford has been surpassed in many areas. But the core of his model remains the key to success: simplicity, collective discipline, and of course the ability to break away from established rules to accomplish what many (and sometimes even the customers) thought was impossible.

CuSTOMER VALuE: PRICE, RELIABILITy, SPEED

Operational excellence is based on cost reduction. But it cannot be reduced to this aspect only. First, today’s (and tomorrow's) companies consider the total cost of their product: in addition to reducing production cost, they aim to reduce cost of usage by also fine tuning the reliability of the product or the speed of service. Their goal: eliminate the material and psychological (inconvenience, annoyance, etc.) costs linked to the purchase.

ThE BASIS OF ThE MODEL: STANDARDISATION

Companies aiming for operational excellence organise themselves around standardised means and highly efficient procedures. It is no coincidence that all Wal-Mart and IkEA stores look alike. But that is not enough. Companies also have to stay focused on the discipline chosen and resist the urge to diversify or upgrade their product range. Tempted to meet the requirements of other customers, undisciplined companies often allow their products and services to proliferate by creating variations for myriad customer segments, and gradually they lose the efficiency that made them unique. On the other hand, disciplined companies know that diversity comes at a cost. And controlling costs is a cardinal virtue of any operational excellence discipline.

hR MANAgEMENT: A FOCuS ON TEAMWORk

“It’s the team that counts.” These companies reward the teams that contribute to keeping the company’s promise. At McDonald’s, the employee of the year is named “best crew member” and, though wages are low, the company knows how to recognise those with potential for the future and helps them progress gradually through a clearly established hierarchy.

TRANSACTION EFFECTIVENESS

Solutions must constantly be found to improve the model. Today, vertical integration is being replaced by virtual

dIvErSIty IS thE ENEMy OF EFFICIENCy. thE rIGht StrAtEGy IS thUS NOt tO OFFEr thE bESt SErvICE, bUt rAthEr tO StICk tO SIMPLE PrACtICES.

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FLExIBLE STRuCTuRES, ROBuST PROCESSES

By trying to box in creativity too much, eventually it runs dry. Innovative companies must therefore adopt flexible structures. Teams must be multidisciplinary in order to plan all aspects of the product as early on as the development phase (production, marketing, after-sales service, etc.).

hR AS AN ESSENTIAL RESOuRCE

Product leadership companies never forget that it is individuals who create innovation. They look for engineers who are creative and capable of easily moving from one project to another. They know how to increase the potential of their staff members by presenting them with ambitious challenges, while providing them with material comforts that stimulate imagination – as illustrated by the google offices, for example.

LIFE CyCLES TO MANAgE

Brilliant engineers on the one hand and experts in launching products on the other: this is the winning combination for product leadership. It is the combination that allows a brand to sell a product that truly promises to bring value to customers. But innovation always ends up being matched. gradually its value decreases, and its price with it. Market leaders don’t hesitate to prolong the life of an innovation by launching extensions and other variations. At the same time, however, they know how to keep one step ahead by quietly preparing the next product that will make the previous one obsolete as soon as it is copied by the competition.

CuSTOMER VALuE: (gENuINE) INNOVATION!

how many of the “new” products presented each day can really be considered innovations? From new formats to new look packaging and products, through to chocolate-guava perfumes… customers quickly tire of superfluous variations and embellishments without value. To achieve product leadership, a company must be capable of creating a regular flow of genuine innovations, of the type that people wait for with bated breath and that forge lifestyles; innovations that offer a product experience combining pleasure, performance and identification.

AT ThE hEART OF ThE MODEL: VISION AND TALENT

Before starting to develop a new product, Edison would begin by providing an inspiring vision of it. he wasn’t the first to invent a light-emitting device, but he saw further ahead than his contemporaries: he wasn’t looking to invent the light bulb; he wanted to be able to light up an entire city.

Furthermore, Edison had surrounded himself with associates who were naturally curious and motivated by the pursuit of virtually impossible goals. Nowadays, all product leadership companies know that it is crucial to have talented employees with ambitious and visionary ideas; employees who are often driven by a common goal expressed very simply.

BEINg A STEP AhEAD – AND PREPARINg ThE MARkET

Product leadership companies must prepare markets so that they will accept radical innovations. And yet these companies know that history is littered with the debts of inventors whose only mistake was to be right too soon. Their challenge is to both invent and accelerate the rate at which an invention is taken up. They look beyond the market, but without ever losing sight of it.

thE dISCIPLINE OF INNOvAtION

At the end of the 19th century, Thomas Edison invented the first real product development process – a way to create one invention after another and then transform these into useful and marketable objects. his Menlo Park laboratory has been used as a model by the R&D departments of companies focused on product leadership such as Apple and BMW. They have revised and perfected the model, keeping in mind Edison’s great principle: “genius is 1% inspiration and 99% perspiration.”

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thE CUStOMEr INtIMACy dISCIPLINE

We could trace customer intimacy back to the early days of trading or to the development of tailored services – or to the bellboy of a major hotel, who is willing to go to any lengths to anticipate the requirements of regular customers. But what exactly does this intimacy mean in a time of massive shifts?

ThE CuSTOMER VALuE: ThE SOLuTION TO yOuR NEEDS

The lowest price or the best product is not a guarantee of value for customers if it only addresses part of their requirements: if the low cost flight takes them to an airport that is too far from their destination, if a software application doesn’t allow them to reorganise their management processes, or if they do not have the necessary skills to use the product. Companies focused on customer intimacy know how to remedy these deficiencies better than their competitors. Their main characteristic: an exclusive range of high quality services that allow their customers to use their products in the best possible conditions. This discipline involves optimising the customer experience and, in addition, offering each customer the solution that matches their current needs.

ThE BASIS OF ThE MODEL: kNOWINg ThE CuSTOMER

Customer intimacy has acquired new meaning over the last few years with database development, behavioural segmentation, and all the possibilities for customising products. One-to-one marketing and product co-creation are the new standards of a customer intimacy that still only in an embryonic phase.

A DECENTRALISED ORgANISATION

It’s a tautology: decentralised businesses are closer to their customers. This proximity is also evident in the autonomy given to staff members who are in direct or virtual contact with the customer. It is also the model for any store that focuses primarily on service and where a skilled sales force is therefore essential. Furthermore, a store might welcome its customers royally, but be unable to deliver on time. Where is the value for the customer then? In B2B, just as in B2C, customer intimacy is not only a matter of contact; it is a relationship that involves the whole company.

BALANCED TALENT MANAgEMENT

The key challenge for companies focused on customer intimacy is to gather, coordinate and keep talented staff members at their customers’ service. This challenge is particularly great in the consulting field, for example, where the most sought-after personalities are those who know how to materialise change within the client company. Customer intimate companies prefer to hire versatile candidates who are capable of adapting themselves to each customer and are not afraid (rather the opposite) to stray from their job description.

PRODuCTION SySTEMS ThAT ARE OFTEN VIRTuAL

Value discipline leaders rarely inherently possess the capabilities they put at their customers' disposal. Their strength lies first and foremost in their expertise and their ability to coordinate skills to offer solutions. In a way, their means of production are virtual and therefore potentially infinite. This formula enables these companies to turn to partners on behalf of their customers.

STRONg RELATIONShIPS WITh SELECT CuSTOMERS

Customer intimate companies calculate the value of a customer over the long term. They avoid occasional customers and concentrate their efforts (and therefore their value) on a regular and almost select customer base. When it comes to B2B services, naturally the aim is to strengthen relationships to develop existing accounts. In retail, the key is to foster customer loyalty. Without losing sight of the fact that a satisfied customer is not always loyal: a strong and long-lasting relationship must be built up and a company must sell the relationship as well as the goods.

thE PrICE OF INEqUALIty

“COMPANIES ThAT TRuLy WANT TO AChIEVE INTIMACy WITh ThEIR CuSTOMERS MuST FOCuS ALL ThEIR RESOuRCES ON ONE ChOICE: RAThER ThAN A SuPERFLuOuS SERVICE ‘WITh ADDED VALuE’, ThEy MuST OFFER ThEIR CLIENTS PERFORMANCE ThAT IS ThE RESuLT OF gENuINE ExPERTISE, A WILLINgNESS TO ShARE IN ThEIR RISkS, AND TRuE TAILORINg OF PRODuCTS AND SERVICES. ThEy MuST BE CONFIDENT ENOugh TO SELL ThESE AT A hIghER PRICE, kNOWINg ThAT ThE BILL IS JuSTIFIED DOWN TO ThE VERy LAST CENT.”

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Designed and produced by CSC’s South and West Region Marketing & Communications department.© 2013 CSC. All rights reserved.

About CSC

The mission of CSC is to be a global leader in providing technology-enabled business solutions and services.With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients and improve operations CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor independent, delivering solutions that best meet each client’s unique requirements.

For 50 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integration and consulting needs.

The company trades on the New york Stock Exchange under the symbol “CSC.”

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