Customer centricity is not just a matter of making vague commitments to “put the customer first.” It’s about literally building your customer relationships, conversations and service around the needs, preferences and actions of your individual customers on an ongoing basis. To do this, you must truly understand each customer at the individual level – and quickly take action on those insights.
Cindy Vandecasteele, NGDATA’s VP of Product Strategy, discusses what every business needs to do to fully embrace customer centricity.
Key topics include:
The time is now to make the shift from business-to-consumer (B2C) to consumer-to-business (C2B)
The need to get your entire organization aligned around customer centricity
Tips on how to achieve customer centricity
The importance of your customer data and how to use it effectively
How to start to implement a powerful customer experience with right technology
Stop Talking Customer-Centric, Start Being Customer-Centric
1. Stop Talking Customer-Centric, Start Being Customer-Centric
What Every Business Needs to Know to Achieve Customer Centricity
WEBINAR
Cindy Vandecasteele
VP, Product Strategy
NGDATA
2. 2 Copyright 2017 NGDATA
®, Inc.
Customers are in the Driver’s Seat
Your customers are now in
the driver’s seat.
3. 3 Copyright 2017 NGDATA
®, Inc.
The need to meet and exceed increasing customer expectations
Simple &
Intuitive
Dynamic
Customization
Easy for Any
Device
Customer
Empowerment
Data-
Driven
Digital Innovators are constantly raising
the bar for customer experience and
channel preference
Simple and
Streamlined
Empowering
Opportunities
to Connect
Anytime,
Anywhere
Continuously
Improving
Adding
Value
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• It’s easy for customers to switch providers
• Customer loyalty has decreased
• Customer trust is a an all time low
“If Google, Amazon, Facebook or PayPal offered banking services, 40% of 18-34 year
olds would be likely to bank with them.”
- Accenture
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BUSINESS to CONSUMER CONSUMER to BUSINESS
• Product-centric
• Few channels, one-way
communication
• Mass-segmentation
• Limited customer feedback
• Decisions based on experience
• Reactively respond to customer
needs
• Customer-centric, driving
customer advocacy
• Bi-directional communication via
customer channel of choice
• Segment-of-one
• Rich, real-time customer learning
• Decisions based on data
• Proactively respond to anticipate
customer needs
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Imagine a world where businesses could identify opportunities and concerns
associated with each of their customers before they happen—and then take action by
delivering relevant, valued messages and offers to them in real-time.
That’s the promise of customer centricity.
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“Empowered customers are shaping business
strategy. Simply put, customers expect
consistent and high-value in-person and digital
experiences. They don’t care if building these
experiences is hard or requires a complex,
multifunction approach from across your
business. They want immediate value and will
go elsewhere if you can’t provide it.”
- Forrester Research
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9 Tips to Achieve Customer Centricity
OFFER
THE RIGHT
PERSON
THE RIGHT TIME
THE RIGHT
CHANNEL
THE RIGHT
LOCATION
THE RIGHT
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• Vision and leadership are keys for success
• Customer centricity requires that everyone be on board
• “Movers & shakers” can start building “islands of customer centricity”
• Departments are dependent on others to provide an exceptional customer experience
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It’s a Value and a Mindset -
Ensure Employee Buy-In
TIP #2
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Customer experience:
“The customer's perceptions and related
feelings caused by the one-off and cumulative
effect of interactions with a business'
employees, channels, systems or products."
Customer experience management:
“The practice of designing and reacting to
customer interactions in order to meet or
exceed customer expectations and to increase
customer satisfaction, loyalty and advocacy.”
- Gartner
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• All employees are part of a larger system: the organization
• Achieving customer centricity requires the right system and removal of barriers
• Remuneration
• Information
• Empowerment
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Customer-Centric by Design
NGDATA’s Lily Enterprise:
One Solution Powering a Smarter Customer Experience
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Don’t Forget the Wider Eco-System
TIP #4
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Make your suppliers your partners:
• Let them in on your customer-centric vision
• Have your customer KPIs translated into their contracts
• Empower and reward them to improve the customer experience
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Fortune 50 US Retail Bank
Merchant Funded Offers
• Client Objective:
o Increase credit card transactions, targeting 10M mobile users
o Enhance relationship with bank merchants, hoping to increase uptake on
offers from more than 10K merchant ecosystem
• NGDATA Solution:
o Used Lily Enterprise to make offers based on preferences, propensities,
behavior and location
Knowledge of customer preferences based on internal (card transactions,
merchant information, mobile device logs (location)), and a variety of external
sources, including social data
Recommendations made were relevant to the individual, at the right time and
location
Realized LIFT between
50% - 100%
Significantly increased
redemption rates
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TIP #5
Collaborate Cross-Functionally -
Organize Around the Customer
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“By 2020 you won’t call your bank accounts “checking” accounts. By
2022 banks won’t have a head of cards or a cards division. You won’t
differentiate between small business bank accounts and retail
banking — customer behavior is what will differentiate the use of a
value store. A mortgage will be part of a home buying experience,
not a separate experience. If you choose to own a car, you’ll order a
car with or without financing, but you won’t ever sign a piece of
paper — the only thing you’ll need to do is nominate how much you
want to pay each month and where the money for those payments
will come from.
This is going to take a complete, from the ground up, rethink of every
product in the business as we re-task it for real-time engagement,
and it has already started. 2017 is the year where bankers start to
have to deal with it in earnest.
This is what disruption in banking really looks like…”
- Brett King, “Bank Products Are Dead. Long Live Experiences!”
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CMO/CXO, CIO and CDO All Benefit From Lily Enterprise
Lily Enterprise Enables the C-Suite in Today’s Perfect Storm
CMO/CXO CDO
CIO
Maximize Value
From the Customer
Relationship
Maximize Value
From Data &
Analytics
Realize Value From Big Data Lake
Investments
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TIP #6
Make Every Interaction
a Connection
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The customer journey is no longer a linear process, but rather a more complex and convoluted
experience with multiple channels and devices involved.
Every interaction with a customer should be seen as a “moment of truth.”
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Value Delivered from Customer Lifecycle Optimization
Lily Enterprise: Delivering Value Throughout the Entire Journey
Customer Loyalty
Churn reduction 16%
Overall Journey
Satisfaction
NPS +15 pts
Margin +4-5%
Advisor Support
Customer Satisfaction +30%
Support Cost -30%
Ad Targeting/Personalized Ads
Precision +65%
Ad waste -58%
NBO/NBA
Conversions x4-5
Experience
Support, Service
BUY
Market, Sell, Renew
Driver = Revenue
Driver = C-Sat/Advocacy,
Efficiency
Personalization/Communication
Upsell +25%
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TIP #7
Provide Opti-Channel
Engagement
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Truly customer-centric organizations are opti-channel – they offer their
customers a “beyond channel” customer experience: consistent, integrated
and seamless, no matter which channel your customers choose to use along
their journeys.
That’s opti-channel. That’s customer-centric.
Lily Enterprise’s Living Customer DNA:
Real-Time, Atomic Customer Profiles
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TIP #8
Use Your Data to Build
Living Customer Profiles
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Data Silos
The Big Enterprise Challenge
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Lily Enterprise’s Living Customer DNA
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…Available for ALL of Your Customers
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Resulting in More Efficient & Effective Data-Driven Marketing Actions
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TIP #9
Learn From Customer Feedback
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Plan-Do-Check-Act
Aim for continuous learning,
continuous improvement
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Interactions Decisions
Feedback
Alerts
Lily Enterprise: Closed Feedback Loop
Continuous
Monitoring
Customer DNA
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Ready to Start Your
Journey to Data-
Driven Customer
Centricity?
38. 38 Copyright 2017 NGDATA
®, Inc.
Build Your Roadmap to Customer Centricity with NGDATA
The Use Case Roadmap
is Underpinned by an Evolution
Use Case 1:
ACQUISITION &
CROSS-SELL
“Personalized Banners”
Web
Inbound Targeting
Use Case 2:
CROSS-SELL &
SERVICING
“Personalized
Communication”
Online/Mobile Banking
Inbound Targeting
Use Case 3:
RETENTION
“At Risk Customer
Calling”
Web
Inbound Targeting
Use Case 4:
UP-SELL
“Personalized Offering
Video”
Email
Outbound Targeting
Determine “Impact” vs. “Effort”
Start with ”Quick Win”
Gradually Bring in Complexity
USE CASE
PRIORITIZATION:
1
2
3
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Become Truly Customer-Centric
Marketer View (ROI & Customers) Through Lily Enterprise
Get Single View of the Customer with Living Customer DNA
Get Insights to Trust with Smart Messaging
Get Dynamic, Actionable Segments with Real-Time Data
Get Precision-Targeting with Sets
Get Opti-Channel Customer Experience with Alerts & Triggers
Get Customer Journey Optimization with Multi-Channel Integration
Get Personalization with Multiple Use Cases
41. 41 Copyright 2017 NGDATA
®, Inc.
Thank you. Any questions?
NGDATA’s customer experience operating
system (CX-OS), Lily Enterprise, is the
central nervous system of the customer-
centric organization, and a single solution
to power your customer experience.
Connect With Us.
cindyv@NGDATA.com
www.NGDATA.com
Editor's Notes
Customer is in the driver’s seat
User Reviews
Likes/Shares/Tweets
-> The power in the relationship has shifted to the customer.
Nowadays, thanks to the internet (customer reviews) and social media (likes, shares, tweets), customers are networked and connected, and their influence is continuously increasing. A “bad customer experience” can quickly go viral on Twitter or Facebook and can cause the bank a lot of damage (brand, reputation).
Exceptional customer experiences
Relevant offers and consistent messaging
High quality customer service
Personalized omni-channel experience
Needs anticipated and exceeded
Google, Facebook etc…
Key Messages:
Customer Expectations are increasing rapidly
The bar on Customer Expectations is being raised by Digital Technology Companies
Companies can no longer just compete within their sector, but need to meet and exceed increasing customer expectations or risk disruption
GAFA: why!
Without Lily.
Switching banks is becoming easier, while trust and loyalty are at an all-time low. At the same time, customers are expecting banks to deliver experiences in line with Google, Apple, Facebook and Amazon. Banks have a lot of data from customers, which customers quite willingly provide as banking is traditionally viewed as a “safe” and “trustworthy” industry. In return, customers expect their bank to “know” them. These evolutions have seen the “power” in the relationship between banks and their customers shift from B2C to C2B.
Shift from B2C to C2B
C2B (or Consumer-to-Business), is a business model in which consumers create value (provide customer data, being advocates that influence their network) and businesses consume that value.
The implication for banks as C2B companies is that they need to intimately know their customers as a “segment-of-one”. They need to be able to communicate with the customer via the customer’s channel of choice, and communication is more likely to be bi-directional. It means (insight) processes need to be real-time, connected and automated so that decisions are data-driven and the bank can proactively respond to and anticipate customers’ needs. Customer satisfaction needs to be as important as revenue and cost. Driving customer advocacy needs to galvanize the bank’s actions. Banks need to BE customer-cent
ric.
Customer-centric: talking for a long time. Not really made a lot of progress. Why is that?
Not easy. If not all organizations would be customer-centric.
What prevents organizations from getting there?
ROADBLOCKS: disconnected analytics, persistent silos everywhere, not optimized for innovation and collaboration, incumbent vendor protectionism, capability gaps in technology and data science.
Today we will be discussing a number of things organizations can do overcome them and become truly customer-centric.
Customer-centricity has been around for a while. First popular in the age of CRM systems. Now back again with a vengeance.
We say we are customer-centric. But really, we aren’t
we might know what they are doing on digital channels. but not holistically
teams and tools are in it for themselves!
Most companies use 20+ vendors: how are they synching/working together?
But our organizations haven’t overcome the silos that prevent true customer-centricity!
Customer-centricity is not just a matter of making vague commitments to “put the customer first.” It’s about literally building your customer relationships, conversations and service around the needs, preferences and actions of your individual customers on an ongoing basis.
This can include:
Interacting with customers via the channels they prefer, when they prefer it
Tailoring product and service offerings to each customer according to individual needs and preferences
Anticipating—and fulfilling—customer needs at the right time and place
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers. - Forrester
Tip 1: It starts from the top (the vision, the leadership)
Every organization that wants to be truly customer-centric needs commitment to customer-centricity from its executive team. A customer-centric vision and leadership are required to succeed in what for most companies will be a cultural transformation.
Why? Customer-centricity requires everyone to be on board, not just customer-facing teams.
That being said, movers & shakers can start “islands of customer-centricity” and demonstrate the benefits (sometimes in call centers, even more unlikely places like fraud department or collections).
Link with NGDATA? TBD
Customer Experience = Gartner defines customer experience as "the customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier's employees, channels, systems or products." And we further define customer experience management as "the practice of designing and reacting to customer interactions in order to meet or exceed customer expectations and to increase customer satisfaction, loyalty and advocacy."
This means that every interaction with your brand counts. Call, Letter, Availability of IT system, Consistency of Brand Marketing, etc.
To get there every employee needs to have a customer-centric mind-set, “customer-centricity” as a value.
Design systems, policies, risk management, etc. from customer POV
Most employees want to do the right thing for the customer. Especially those in Customer-facing roles. They know when they are offering a bad or a mediocre experience. They are the face or the voice of the company. When delivering a bad experience (outside of their control), they have to bear the frustration and anger of a customer. Opposite: great experience fulfils them with a lot of satisfaction.
Non-customer facing departments, also want to do the right thing for the customers. Often not sure how their actions impact because of the siloed nature of how large organizations operate.
Employees are part of a larger system, the organization.
Ensure to remove barriers that are in the way of employees “doing the right thing” for the customers, and acing on the customer value or mindset.
Incentives: You want me to be customer-centric, but you’ll pay my bonus based on sales number or productivity target?
Information: You want me to be customer-centric, but I have no idee how my actions impact the customer. (Share customer-feedback, make connections between different departments along the value chain, invite a customer. Customer Immersion Programs).
Empowerment: Many rules and procedures prevent employees from doing the right thing for customers. e.g. Risk Management.
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers. - Forrester
Customer-Centricity will only be achieved if customer-metrics are part of the company’s key KPIs. Without those metrics, financial or risk trade-offs will always trump customer-impact. And then every department or cross-departmental committee will start using customer KPI’s too
Example: Investment Committee: Business Case KPI Impact expanded
from Financial & Risk to include Customer.
Which measure is not necessarily that important. Start measuring, refine along the way if required. It’s the delta improvement (or not) that counts.
It is also very important that there is a single metric across the company.
>>> NGDATA Metrics available for every individual customer, for every dynamic group of customers or for all customers. Lily Enterprise core Customer Data Platform and used by multiple departments. Can easily used for building Customer Dashboard. Key KPI’s (lag) and their lead KPIs.
>>> NGDATA Metrics available for every individual customer, for every dynamic group of customers or for all customers. Lily Enterprise core Customer Data Platform and used by multiple departments. Can easily used for building Customer Dashboard. Key KPI’s (lag) and their lead KPIs.
Map customer experience from the customer’s POV, from the outside in. There are others in your eco-system: you might have outsourced part of the process for efficiency reasons (which has created extra hand-overs, always a chance for it to go wrong), you might be working with technology vendors who can impact your customer experience and damage your reputation if something goes wrong.
Make BPO Providers and Technology Vendors your partners. Make sure they understand your customer-centric vision, your KPIs, etc.
Empower them and reward them to improve the customer experience and the experience will become exponentially better.
This becomes increasingly more important as companies’ eco-system complexity rises.
The customer doesn’t care how you are organized, they see your organization as one, and don’t want to hear about how hard it may be to work across departments.
Cross-functional collaboration becomes a must.
No longer the era of pushing products to customers, but fulfilling their needs, ensuring a friction-less customer experience.
Organize around the Customer
No longer the era of pushing products to customers, but fulfilling their needs, ensuring a friction-less customer experience.
“Uberization” of almost every industry > not product, but Experience/Relationship
Example Retail Banking.
Brett King: Banking Products are dead, long live experiences.
By 2020 you won’t call your bank accounts ‘checking’ accounts. By 2022 banks won’t have a head of cards or a cards division. You won’t differentiate between small business bank accounts and retail banking — customer behavior is what will differentiate the use of a value store. A mortgage will be part of a home buying experience, not a separate experience. If you choose to own a car, you’ll order a car with or without financing, but you won’t ever sign a piece of paper — the only thing you’ll need to do is nominate how much you want to pay each month and where the money for those payments will come from.
This is going to take a complete, from the ground up, rethink of every product in the business as we re-task it for real-time engagement, and it has already started. 2017 is the year where bankers start to have to deal with it in earnest.
This is what disruption in banking really looks like…
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers. - Forrester
CMO/CXO Benefits:
Campaign ROI x 10
Real-Time Marketing
Agile Marketing
Integrated Marketing
Customer-Centric Marketing
Campaign Efficiency
Brand Reputation
Brand Advocacy
CDO Benefits:
‘Action & Value’ vs. ’Insight’
Model Effectiveness +75%
Model Efficiency +60%
Capacity for Value Add Activity: Sophisticated Modelling
Respecting Data Privacy
CIO Benefits:
Integration, no Replacement
Low Upfront Investment
Sustainable Reduction of Architectural Complexity
Open Eco-System
Future-proof solution: metrics, not rules
Respecting Security
Customer Journey is no longer a linear process, but rather a convoluted non-linear experience (Quote from McKinsey Article).
This means that the lines between marketing, sales and servicing are being diluted.
This also means that every interaction with a customer is a moment of truth, and has to be as relevant and personalized as possible to maximize CLV, NPS. Also during the servicing experience (= the next sales).
>>> Lily Enterprise supports your CX along the entire customer journey. Most of our clients start their journey to customer-centricity with a single Use Case, but can be expanded very quickly. All based on same central Customer DNA>
We went from one channels to a few channels to multi-channel to omni-channel. But it’s one thing to offer a lot of channels. That doesn’t guarantee anything. What you need to be is “opti-channel”: offer the channels your customer want, and expect them to want to continue their customer journey by jumping from one channel to another. The experience needs to be consistent, integrated and seamless.
Amount of data can be overwhelming.
First, Second, Third Party Data
Algorithms/Data Science rare & expensive.
Data-driven customer-centricity. Start with small steps and expand.
Start with first-party data. Connect across traditional silos. >>> Insights come from the amount of data. Get to know your data across silos.
Start with CX & Marketing… slowly expand.
You will be amazed how much you know about your customers.
connect the dots and the data of what our customer are and need
Data is the language of customer relationships.
Your customer is so much more than their socio-demographic. Preferences, behaviors, … You want your next interaction be a connection >relevancy!
And it’s dynamic.
The same goes for “traditional segments”. Once you move beyond socio-demographic data.
>>> NGDATA: ingest data from all sources (then insight>action>value). Data Sources can be added with new Use Cases. E.g. Digital Channels, then Call Centre. Living Customer DNA, updated with every interaction. Dynamic segments (Sets).
Gather customer feedback, make it available to employees, and act upon it.
PDCA (plan-do-check-act, sometimes seen as plan-do-check-adjust) is a repetitive four-stage model for continuous improvement (CI) in business process management.
when designing marketing campaigns, when designing systems, experiences.
The aim is “continuous learning”, continuous improvement.
>>> NGDATA Lily Closed-Feedback Loop, Deep Learning from Big Data, even the simplest model will teach you lots
Defining the priority weight:
Simple approach
Priority weight for rule is max(probOfferA, probOfferB, probOfferC, …)
Smarter approach
Combine probability to accept offer with expected customer KPI performance progress
A Single View of the Customer : Customer DNA (vs. many partial views)
Insight I can trust/use today : DNA is continuously updated (vs. “always out-of-date”)
Dynamic, actionable customer segments : Sets (vs. static socio-demographic segments)
Precision-targeting: Alerts/Triggers (vs. spray & pray)
Opti-channel customer experience: multi-channel integration (vs One Size Fits All - Channel)
Optimize entire customer journey: multi-use case (vs One Size Fits all – Journey Stage)
Personalized messaging: smart message content (vs. One Size Fits All – Message)
Campaign ROI: Ability to drive more, smaller, and more targeted campaigns based on data (vs. “gut feel”) leading to (1) Increased Campaign Efficiency and (2) Increased Campaign Success rate.