A tale of two brands

Title

• The tectonic shifts in global business and customer experience

management.

Abstract

• Three things are converging right now to completely change the way you

need to think about customers and are impacting your business today,

whether you know it or not. The three are demographic, social and

technological. These three converging themes have fundamentally shifted

the possibilities for global business. Put these together and the face of

business today is different than ever before. These are the amazing

tectonic shifts for your business in the next era. Are you ready?

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The tectonic shifts in global business and customer experience management

Gartner 360 Summit

David Ashton VP Consulting Services May 2, 2013

Misia Tramp VP of Insight and Innovation May 2, 2013

Title

• The tectonic shifts in global business and customer experience

management.

Abstract

• Three things are converging right now to completely change the way you

need to think about customers and are impacting your business today,

whether you know it or not. The three are demographic, social and

technological. These three converging themes have fundamentally shifted

the possibilities for global business. Put these together and the face of

business today is different than ever before. These are the amazing

tectonic shifts for your business in the next era. Are you ready?

A tale of two brands

Tectonic shift #1: Context

•While you were sleeping your customer moved to China…

• The “emerging economy” has emerged*. Sub-Saharan Africa has the largest growth in interconnectedness of any economic region worldwide.*

• Markets you have traditionally ignored are outgrowing everyone.

*Silverstein, Singhi, Laio and Michael 2012

** DHL Global Connectedness Index 2012

A tale of two brands

Tectonic shift #2 Convergent

• The iPhone didn’t start the current consumer technology wave. It wasn’t event the first smartphone.

• It may not have started it, but it did start the current wave of technology driven consumer power.

• Today consumers expect to be able to connect with you through THEIR choice of channel.

• Tomorrow they will demand an integrated sensory feast.

• And the brands that make a genuine one to one information connection to consumers will be the automatic winners.

Tectonic shift 3: Culture

• Musical performance wasn’t

the only candidate for this

mashup.

• The key to understanding the

customer of the future is in

understanding how much

society has shifted since we

were the new kids on the

block.

The customer of tomorrow

• To prepare for tomorrows opportunity we have to understand tomorrow’s customer and the world in which they live.

• While the fundamentals of “people” have not changed, the world they live in has.

• To win their business we must understand them. Always on

The customer of

tomorrow

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Context…. …it’s about human nature

The common mistakes brands make…

10

Business success

Suggest the

desired behavior

Give the customer what they

ask for

Everybody wins

They exhibit the desired

behavior

You get commitment from them

What actually happens….

11

Business success

Suggest the

desired behavior

Give the customer what they

ask for

Everybody wins

They exhibit the desired

behavior

You get commitment from them

60-80%

don’t do

what

they say

Expected targets

are missed

Nobody

is happy

Ensuring the fair exchange

12

Customer commitment

• Customers behave predictably

• Business is predictable

Give them what they

need

• Orchestrate and personalize this engagement with this customer

Insight

• What does this customer need to achieve the joint goals

Know your business

• Who are my customers?

• What are my goals?

This is customer experience management

Measure,

learn & Act

Creating a fair exchange

Meet both these objectives through a managed customer

experience

Customers expect

Companies expect

1. to engage with and be engaged by the brands that impact their life

2. to engage through all the communication media available - online, offline, social and digital

1. a measurable return on the investment in customer engagement activities

2. predictability of customer acquisition, retention and value

Experience is the new differentiator

14

• Slide here about why getting the customer experience right is so

important

• Invented new category because circus

animals were too expensive

• Theather-circus is all about experience

• As a result grew from 2 street performers

to estimated $1B business

• Very high profit margin for type of

business (25%)

Driving measurement from your business goals

Shops Advocates Shares

Your ideal customer is one who…..

There are international differences in motivations for sharing

Source: OTX

POWNAR Study 2010

ALTRUISTIC SHARING STATUS BROADCASTING

MY NETWORK’S & INDIVIDUAL FRIENDS’ INTERESTS

TO AMUSE MY NETWORK LAUGH

WORK RELATED

HEADLINE WILL GET ATTENTION

SHOW WHAT I’M INTERESTED IN

Reasons for sharing news content with friends/family

Global uplifts in brand driven by shared news

Aided

Ad

Recall

Correct

Branding

Consider

brand

Recommend

brand

Favour

brand SHARE

+16% +12% +12% +19% +27%

% uplifts are increases from« non recommended content » (control sample) to « recommended content » sample

Source: OTX

POWNAR Study

2010

Defining a global customer engagement strategy

Three pillars of a managed customer experience

Insights

Customer Journey

Personalization Orchestration

Customers

ConsiderResearch

Typical customer journey

Evaluate

Buy

Advocate

Usage

EngageLoyalty Loop

ConsiderResearch

Evaluate

Buy

Advocate

Usage

Engage

Customers

SMS

E-CommerceStores

Social

NetworksMobile Apps.com &

Campaign Sites

TV Ads

Print Ads

Email

In-store

Video

Web &

Search Ad’s

Review

Sites

Call Center

Documentation

Touchpoints

Customer Insights

Take data from all sources and create both a customer view AND a market segmented view.

Multimedia

video data

App Analytics

CRM DataGeographic &

Demographics data

Social

Coversations

Transactional

DataWeb

Analytics

Email and

SMS Analytics

Insights

Now you have what you need to define actions for each customer wherever they are in their journey.

Global

Orchestration

ComplianceProduct

Development

Corporate

Communications

Other system

IT

Localization &

Translations

SupportMarketing

Orchestration

Each customers digital experience is tailored to their needs, regardless of channel (traditional, digital or interactive).

Digital Experience

SMS

E-CommerceStores

Social

NetworksMobile Apps.com &

Campaign Sites

TV Ads

Print Ads

Email

In-store

Video

Web &

Search Ad’s

Review

Sites

Call Center

Documentation

Touchpoints

Customer Journey

Personalization

A managed customer experience

23

Customer Insights

Multimedia

video data

App Analytics

CRM DataGeographic &

Demographics data

Social

Coversations

Transactional

DataWeb

Analytics

Email and

SMS Analytics

Global

Orchestration

ComplianceProduct

Development

Corporate

Communications

Other system

IT

Localization &

Translations

SupportMarketing

Digital Experience

SMS

E-CommerceStores

Social

NetworksMobile Apps.com &

Campaign Sites

TV Ads

Print Ads

Email

In-store

Video

Web &

Search Ad’s

Review

Sites

Call Center

Documentation

Touchpoints

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What do you think?

How the IT community defines CXM

25

“While technology features/products are greatly expanding and the average Joe is able to afford to be active, I feel we are just seeing the tip of what is to come. Companies though have a greater challenge to get their departments to talk with each other so when products are delivered to the public, it appears as a cohesive plan rather than a mess, e.g. you've reached the wrong department concept. These are exciting times to work in technology!”

CXM isn’t just CRM with a new middle letter

With the technology that we have available today, there is no reason for such

a disjointed feel to interaction. It clearly is not a priority in many companies.

With so many companies trying to squeeze every dollar out of their existing IT

staff, this appears as though it has not floated to the top of the priority list and

what a shame it is.”

The customer experience should be

seamless, and in today’s environment

must exceed the customer’s

expectations.”

The sacred cows of CXM make great burgers

26

“IT professionals

don’t care about the customer”

“NPS is the only metric you need”

“CXM is just a new term for

better customer service”

“A centralized CRM

database provides a 360 view of

the customer”

“A managed customer

experience is only important when dealing

with consumers. In B2B it doesn’t

matter”

“I’m not on Twitter

therefore social media isn’t a valid marketing channel”

A tale of two brands

• Always focus on the fair exchange

• Being data driven doesn’t lead to a loss in creativity

• CXM is about they intersection between insight, orchestration and

customer journey personalization

Key takeaways

• Follow @ydris @misiatramp

• Book a SDL Innovation Discovery session. In return we help you

understand the fair exchange you should give to your customers.

Two things we’d like you to do on Monday