This presentation explores the role of the CMO in delivering Customer Experience (CX). In particular we look at emerging digital business models and how these affect the role and responsibilities of the CMO. The presentation reveals the operational challenges of implementing CX, best practices, and the key actions that CMOs can take to measure and manage CX effectively.

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What is the role of the CMO in
delivering CX?
Presenter: Gerry Brown, Senior Analyst, Connected Customer &
Marketing Technology, Ovum
Gerry.brown@ovum.com
October 8, 2013

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Key agenda items
1.
• CX, business models and
responsibilities
2.
• CMO strategies and action
items
3.
• Measurement and Critical
Success Factors

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A customer’s view of CX . . .

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The ‘Whole Product’ Concept

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CX: complete the customer journey AND new innovation
+

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A wider definition of CX
“The orchestration and integration of
all touch-points and activities
performed for the customer”
What CEM advocates believe:
 Customer acquisition is expensive, and profitability comes from longer term
Life Time Value (LTV)
 Delight the customer with product and service experiences beyond their
expectations and be rewarded with customer retention, loyalty and advocacy
 A satisfied customer is the most profitable customer. High value customer
churn must be avoided at all costs

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Dixon’s ‘Customer Plan’

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A traditional sequential business model
Marketing Sales Service
Targeting
Campaigns
Lead Generation
Proposals
Closing
Contracts
Install
Maintenance & Repair
Guarantees

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A modern ‘fluid’ business model
Brand
Content & Communications
CRM & Compliance Care & Continuity

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Q. So who should ultimately be responsible for CX?
The CMO?
The CSO / CRO?
Director of Service?
General Manager / COO?

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A. They are all stakeholders – led by the CEO
. . . but the CMO has a special leadership role as the brand custodian
and aims “to build the brand through positive customer experiences”

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‘Living the Brand’ CX challenges for the CMO
• 69% of firms: don’t empower employees to build and
protect the brand
• 75%: employees don’t act in ways that embody the brand
promise
• 78%: employees don’t deliver the required branded
customer experience
• 66%: no customer measures of success
• 81%: no strong belief in link of brand experience to
business value
CIM 2012 Branded Customer Experience Benchmark

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What does the CMOs universe look like?
Campaigns
Staff &
Agencies
Channels
Social
Web Site
ROI
Sales
enablement

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Who does CX well?

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So what do CX Champions do differently?
1. Recruit and train to deliver the brand promise
2. Differentiate through service and personalisation
3. Promote from within and reward staff well
4. Innovate as a result of listening
5. Under-promise and over-deliver
6. Data-driven – measure everything

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ING on Customer Intelligence
Kim Verhaaf, Director, Customer Intelligence, ING
“Our goal is to detect life events of our
customers and influence their buying
cycle with relevant products and services.
First we have to build a relationship of
trust, which enables us to offer better
service to that customer”

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First impressions – seconds count
5 seconds:
30% leave website
37% won't return
27% go to competitor
10 seconds:
Communicate your value
proposition or lose customer
30 seconds:
More likely to stay 2+ minutes

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Be clear on what you want to measure – and how?
3. Advocate
2. Loyalty4. Retention
1. Like

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Most important attributes for delivering CX
Foviance (2012)

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The take-aways
 Remember CX involves the customer journey AND a ‘whole product’ experience
 CX requires a more flexible and fluid business model
 The CEO is responsible for CX – but the CMO is a key stakeholder
 Retailers, FMCG and Service companies have to consider CX
 Pro-activity and speed of response are key
 Measurement has challenges for the ‘soft science’ of CX
 Your CEO and the Board need to be ‘sold’ . . .

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Q & A?