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Customer centricity:
    still in its infancy?
    by Ramon Pardo, Managing Director InSites Consulting the Netherlands



New York I Timisoara I London I Rotterdam I Ghent




                                                                           www.insites-consulting.com
Customer Centricity
Status research in Service Industries

The main research objective?

Validating a Customer Centric framework across
industries and thus understanding the progress
organisations from different Service Industries have made
in becoming more Customer Centric.

What did we do?

• Qualitative in-depth online interviews with
  business people from each of the industries
• Online questionnaire via Social Media & SAS
  database

Download the full SAS whitepaper for more
information (Dutch version – English will be available
from February 18, 2013).
“If your eyes are facing your boss,
your back is facing your customer”
………………………………………….………..……………..…………………………………………


        And you?
Are you customer centric?
………………………………………….………..……………..…………………………………………
About 10% states:

We are NOT customer centric at all!




                  17
About 10% states:

We are VERY customer centric!




               18
The thruth is:
              you are stuck in the middle.

Lot’s of opportunities to become more customer centric.




                            19
Customer centricity is far from mature


                       50%




                       40%
                                                              43%
 Number of companies




                       30%



                                                 28%
                       20%




                                                                            15%
                       10%
                                                                                                4%
                                10%
                       0%    SELF-CENTRIC     AMBITIOUS      LEARNING       EXPERIENCED      MATURE
                                   0-2
                               (score: 0-2)       3-4
                                              (score: 3-4)       5-6
                                                             (score: 5-6)        7-8
                                                                             (score: 7-8)       9-10
                                                                                            (score: 9-10)   Level of Maturity




                                                                       20
Guiding customers through
         the customer relation.




Towards a great experience                                 Knowing and managing
in all touchpoints.                       the current & future value of customers.



                                     21
Let’s look at some facts & figures




                               22
Putting the
CUSTOMER
              customer
CENTRICITY     central




                           23
HAS A GOOD IDEA WHAT
          „CUSTOMER CENTRICITY‟ STANDS FOR.




88   %
               GOAL: IMPROVING SERVICE
     “A well-organized front-end    “Give the client value-for-
         and quick service”                  money”



                               24
Customer centricity is focused on existing customer base.

 Q: What are the 5 main benefits of becoming a truly customer-centric company?


          Increase loyalty among existing customers                    31%                                50%

     Increase satisfaction among existing customers                24%                              40%

                      Optimize product / service offer     8%                                 56%

                     Reaching out to new customers
                                                         6%                         47%

           Seeking active interaction with customers
                                                           10%                          43%

                      Communicate more effectively
                                                         4%                       42%
                                    Increase revenue
                                                           8%                     35%
                        Sell more products / services

        Optimize value-for-money of your marketing 4%                  21%
                                           investments
                                                         1%        22%
 Seeking active interaction with key influential (e.g. a
                     lot of influence via social media) 4%         15%

Coping with competitors who are becoming customer
                                           centric               19%

                                     Optimize pricing      8%

                                                Other


                                                         Strongest benefit
                                                         Strong benefit (2 - 5)
                                                         Weak benefit



                                                                                          25
Are we ‘somehow’ customer centric?




                 26
………………………………………….………..……………..…………………………………………


  Marketing is too important
  to leave it to the marketers
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………


            However,
   there is a positive feeling
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………


            66%
  “We are making progress”
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………



             4/10
“We are better than the market”
………………………………………….………..……………..…………………………………………
Putting the
CUSTOMER
              customer
CENTRICITY     central




                           31
“The customer as starting point of everything”



       “The customer                                   Only   LINKS THIS TO MARKETING /
       central”                                       10%     SALES ONLY


                  Putting the
CUSTOMER
CENTRICITY
                   customer
                    central
                                     BY      LISTENING!                     ≥   observing


                                                              “Acting customer-focused.
                                “Use own data to listen”      Listening to the customer, for
                                                              example via market research”

                                NEED FOR KNOWLEDGE
                                                 • Inzichten
                                                 • Interactie
                                                 • Improvement
                                          32
90%        44%




88%   69%        76%   46%




            33
34
About 1/3 companies invests
in personalization of products, communication, prices…
              to optimize the experience.




                                 35
36
Less than 25% has good
knowledge about potential
customer value




                        37
Social….What?
      38
………………………………………….………..……………..…………………………………………


“if you‟re not thinking in segments,
     you are not thinking at all‟
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………



                   54%
is not really thinking in segments…
………………………………………….………..……………..…………………………………………
41
Very limited focus on maximizing customer loyalty.


                                 42
Customer centricity is far from mature

                                                                                                                                                 CUSTOMER CENTRICITY
                         50%                                                                                                                    CUSTOMER EXPERIENCE
                                                                                                                                                  CUSTOMER LIFECYCLE
                                                                                                                                                     CUSTOMER VALUE

                         40%
   Number of companies




                         30%



                                                                   28%
                         20%




                         10%




                         0%      SELF-CENTRIC                AMBITIOUS                  LEARNING                EXPERIENCED                    MATURE
                                        0-2
                                    (score: 0-2)                   3-4
                                                               (score: 3-4)                  5-6
                                                                                         (score: 5-6)                   7-8
                                                                                                                    (score: 7-8)                 9-10
                                                                                                                                             (score: 9-10)          Level of Maturity

                                Limited to non-existent      Limited access to        Learning in applying      Extensive experience in     Customer Centricity
                               knowledge and absolutely   knowledge and tools and       customer centric        using customer centric       philosophy is fully
                                no ambition to become      ambitious while having     knowledge and using      tools and knowledge in a   integrated in the whole
                                   customer centric           few experience        tools, though experience         wide range of                company
                                                                                        limited to certain            departments
                                                                                           departments.




                                                                                             43
The thruth is:
              you are stuck in the middle.

Lot’s of opportunities to become more customer centric.




                            44
………………………………………….………..……………..…………………………………………


     How to get there:
   What are your priorities?
………………………………………….………..……………..…………………………………………
importance
                                                          Company culture


                               Research (QL & QT)
                                 Analytical CRM
                              Customer intelligence
                                    solutions
                              Social media analysis   Applying contact strategy
                                                       Multichannel solutions
                                                        Integration of offline
                                                              channels
               Hiring employees &                     Using business analytics
             consultants for customer
                centricity projects.


                                    Current performance

                                                46
…………………………………………..…


Customer
Centricity
The science of managing
expectations.
…………………………………………..…
Real time collection of customer behavior data
is seen as really important.



38% thinks collecting real time data is really important
4% is collecting all real time data sources in real time
39% to some extend



                            48
Real-time                    Real-time
                  difficult
data collection               data action




                       49
50
………………………………………….………..……………..…………………………………………


       How to get there?
………………………………………….………..……………..…………………………………………
Customer centricity is far from mature
Companies are learning are predominantly in a learning stage




Q: To what extent is your company involved in the following aspects related to the customer lifecycle?
Q: To what extent is your company involved in the following aspects related to the customer experience?                                         CUSTOMER CENTRICITY: mean = 5.0
Q: To what extent is your company involved in the following aspects related to the customer value?
N (Total) = 72        50%
Filter = None



                                      40%
                                                                                                       43%
                Number of companies




                                      30%



                                                                                28%
                                      20%




                                                                                                                             15%
    Become more customer centric…     10%
                                                                                                                                                               4%
                                                   10%
                                      0%      SELF-CENTRIC                AMBITIOUS                  LEARNING                EXPERIENCED                    MATURE
                                                     0-2
                                                 (score: 0-2)                   3-4
                                                                            (score: 3-4)                  5-6
                                                                                                      (score: 5-6)                   7-8
                                                                                                                                 (score: 7-8)                 9-10
                                                                                                                                                          (score: 9-10)          Level of Maturity

                                             Limited to non-existent      Limited access to        Learning in applying      Extensive experience in     Customer Centricity
                                            knowledge and absolutely   knowledge and tools and       customer centric        using customer centric       philosophy is fully
                                             no ambition to become      ambitious while having     knowledge and using      tools and knowledge in a   integrated in the whole
                                                customer centric           few experience        tools, though experience         wide range of                company
                                                                                                     limited to certain            departments
                                                                                                        departments.




                                                                                                        52
………………………………………….………..……………..…………………………………………

A true customer centric Company Culture
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………

A true customer centric Company Culture
………………………………………….………..……………..…………………………………………




           Push the culture to the next level
………………………………………….………..……………..…………………………………………

                 Create a fantastic
        Customer Experience
………………………………………….………..……………..…………………………………………




Avoid
Service
schizophrenia
Start every
meeting with
a story about
a customer.
Create a listening culture
by sharing customer stories.
………………………………………….………..……………..…………………………………………

A true customer centric Company Culture
………………………………………….………..……………..…………………………………………




           Push the culture to the next level

              Capture the customer data
59
“Data is the new oil”


                60
………………………………………….………..……………..…………………………………………

A true customer centric Company Culture
………………………………………….………..……………..…………………………………………




           Push the culture to the next level

              Capture the customer data

             Create real time applications
62
………………………………………….………..……………..…………………………………………


       And remember…
………………………………………….………..……………..…………………………………………
………………………………………….………..……………..…………………………………………

When your eyes are facing your boss,
   your back is facing the customer.
………………………………………….………..……………..…………………………………………
Customer Centricity
Status research in Service Industries

The main research objective?

Validating a Customer Centric framework across
industries and thus understanding the progress
organisations from different Service Industries have made
in becoming more Customer Centric.

What did we do?

• Qualitative in-depth online interviews with
  business people from each of the industries
• Online questionnaire via Social Media & SAS
  database

Download the full SAS whitepaper for more
information (Dutch version – English will be available
from February 18, 2013).
Thank you!
Ramon Pardo, Managing Director
InSites Consulting NL


          @pardochi

          http://nl.linkedin.com/in/ramonatinsites

          +31 10 742 10 31

          Ramon.pardo@insites-consulting.com


New York I Timisoara I London I Rotterdam I Ghent




                                                     www.insites-consulting.com
………………………………………….………..……………..…………………………………………


            Thank you!
………………………………………….………..……………..…………………………………………

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Customer centricity: still in its infancy?