Customer Experience 101: Building CX Capabilities to Drive Differentiation and Business Success

© 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)
A BBC 2017 Presentation: Building Business Capabilities,
and the International Institute of Business Analysts (IIBA)

Yourpresenter: MichaelHinshaw
 President and Founder, McorpCX – leading
customer experience strategy, innovation and
design firm
 Currently on 5 “2017 Top CX leader" lists
 Top CMO.com and CustomerThink author (#6
Overall, #3 Customer Experience)
 Former CEO, $300 Million B2B Ecommerce
company built with (and on) CX principles
 Teaching Fellow at UC Berkeley’s Lester Center
for Entrepreneurship and Innovation at The
Haas School of Business
+1-415-526-2651
mhinshaw@mcorp.cx
www.mcorp.cx

IntroducingMcorpCX:DrivingbetterCXforleadingbrands

HowMcorpCXstacksupagainstthebest…
“[Their] narrow
but deep market
position enables
McorpCX to
effectively serve
both the SME
market and the
largest global
corporations”1
-- ALM Intelligence:
The Kennedy Vanguard
1) The Kennedy Vanguard – Digital Customer Strategy & Experience Consulting Providers

Today, we’re going to discuss:
What customer experience is, and
why it matters; Implications for
your business, and How to enable
customer experience in your
organization.

Whatpercentageofexecutivesthinktheexperiences
theyprovidetheircustomersis“excellent”?
80%

Whatpercentageoftheircustomersthink(overall)
thattheexperiencetheyreceiveis“excellent”?
8%8% vs 80%
is a 72 point
Perception Gap

Why?Simple:Yourcustomershaveclearexpectations
oftheexperiencetheywishtoreceive.
Ifthoseexpectations are
notmet,there’sagap.
experience

Customerexperienceoccurseverytimea
customerinteracts withyour people,products,
servicesordevices.
The challenge?
Customer experience
lives in the minds of
your customers: It is
whatever they think it is.

Whenexpectations aren’tmet,brandsgetdumped
Given a choice, both consumers
and business buyers will switch
after a single bad experience
Source: ZenDesk, Oracle, and Harris Interactive Customer Experience Impact Reports

Thentheytellothersexactlyhowtheyfeel...
Source: ZenDesk, Oracle, and Harris Interactive Customer Experience Impact Reports
Dissatisfied customers actively
share complaints with others.

Andmanycustomersjustgrabtheirsmartphones...
Source: Forbes Insights,
Would rather make a business purchase
over the mobile Web than the phone
Have started transactions worth over
$100,000 on their smartphones
Look up business products and
services on first hearing about them
THEN NOW

Problem:Today,customers
arehardertoget,andkeep.
Page 5© 2017 McorpCX, Inc., All Rights Reserved (Do Not Distribute or Reproduce Without Prior, Written Permission)

Solution:Afocusoncustomerexperiencecansolvethis
1) HBR, August 2014: The Value of Customer Experience, Quantified
2) Forbes, March 2014: 'Customer Experience' Is Today's Business Benchmark

High-levelbenefitsforcustomerexperienceleaders:
1.
Greater top-
and bottom-line
revenue growth
2.
Ability to
adapt to
fast-changing
customer needs
3.
Proven
protection from
commoditization
4.
Greater customer
(partner and
employee) loyalty
and engagement

Inaworldofradicallychangingcustomerexpectations,
thereisonlyonesustainablecompetitiveadvantage:
Deliver a better customer (and employee, and partner)
experience, across all channels and interactions

Integrated, operating
model-driven:
Andthe‘disciplineofcustomerexperience’isevolving
More tactical,
issue-driven:
Tools like Journey
Mapping and
Persona;
Metrics like
CSAT and NPS
More holistic,
capability-driven:
CX strategy and
management
capabilities;
Customer
understanding, CX
design capabilities
Business
Operating
Model
CX Capability,
Metrics &
Measures
CX Vision

TodaysleadersfocusondeliveringCXtransformation
Business
Operating
Model
CX Capability,
Metrics and
Measures
Customer
Experience
Vision
CX Vision
The desired customer experience (“CX Vision”) as seen through the eyes
of the customer - balanced with the needs of the business.
Grounded in Persona Models and Journey Maps
Business Operating Model
How the organization delivers the desired CX vision, and how that relates
to driving business value through products and services offered
Grounded in People, Processes, Information and Technology
CX Capability, Metrics and Measures
How the organization continuously and systematically manages, measures
and optimizes the CX Vision and the Business Operating Model
Grounded in the 8 “Best Practice Capabilities” of CX Leaders (Top 20%)

Mcorp’sCustomer ExperienceOperatingModel(CXOM)
Goals
Expectations
Needs
Metrics &
Measures
Brand/
Ethics
Legal/
RegulatoryFinancial
Organi-
zation
Business Operating ModelCustomer Persona Business Case
Preferences
Easy|Enjoyable|Useful
Channels
Compe-
tition
Products
&
Services
Customer Journeys
CX Strategy
Customer
Understanding
Design and
Innovation Governance Culture Measurement Technology Processes

Goals
Expectations
Needs
Metrics &
Measures
Brand/
Ethics
Legal/
RegulatoryFinancial
Organi-
zation
Customer Persona Business Case
Preferences
Channels
Compe-
tition
Products
&
Services
CXOM:Business ValueRealization (The“why”)
Customer Journeys
CX Strategy
Customer
Understanding
Design and
Business Value Realization:
Systematically linking Customer
Experience efforts to the delivery
of measurable business value –
as defined by your business

Goals
Expectations
Needs
Metrics &
Measures
Brand/
Ethics
Legal/
RegulatoryFinancial
Organi-
zation
Preferences
Channels
Compe-
tition
Products
&
Services
CXOM:Customer Experience Vision(The“who”)
Customer Journeys
Business
Operating
Model
CX Capability,
Metrics &
Measures
CX Vision
Customer Experience Vision:
Driven by a deep understanding of who
customers are and what they desire, the
experiences they have today, and the ideal
experiences that – if delivered – will ensure
they drive business value.
CX Strategy
Customer
Understanding
Design and

Goals
Expectations
Needs
Metrics &
Measures
Brand/
Ethics
Legal/
RegulatoryFinancial
Organi-
zation
Preferences
Channels
Compe-
tition
Products
&
Services
CXOM:BusinessOperating Model(The“how”)
Customer Journeys
Business
Operating
Model
CX Capability,
Metrics &
Measures
CX Vision
CX Strategy
Customer
Understanding
Design and
Business
Operating Model:
Understanding how
an organization
operates today, and how it could operate
tomorrow to deliver the experiences customers
desire, and the business value you require.

Goals
Expectations
Needs
Metrics &
Measures
Brand/
Ethics
Legal/
RegulatoryFinancial
Organi-
zation
Preferences
Channels
Compe-
tition
Products
&
Services
CXOM:Customer ExperienceManagement Capabilities
Customer Journeys Business Operating Model
CX Strategy
Customer
Understanding
Design and
Customer Experience Management (CXM) Capabilities:
How an organization systematically and continuously
manages and optimizes customer experience… to
deliver on the CX Vision, activate the Business
Operating Model and drive measurable Business Value
Business
Operating
Model
CX Capability,
Metrics &
Measures
CX Vision

Marketing return
on investment
Positive social
media mentions
Revenue from
customer referrals
Greater customer
“win-back” rates
Faster average
sales cycle
More cross- and
up-sell revenue
+1,767%
24.9%: With Customer Journey Management, 16.2%: Without
+54%
+1,325%
+24%
+56%
+251%
1) Source: Aberdeen Group – The CMO Dilemma: Bridging the Gap Between Love and Money, May 2015 Page 7
Thepayoffforthisshift?MassiveROI...ifyouactively
managecustomerexperience,personaandjourneys1

Greatcustomerexperiencedoesn’t“justhappen.”
It’splanned,andmanaged.
Breaking down and
working across
organizational silos
Integrating customer
needs and business
requirements

Itstarts byconsistentlyputtingyourcustomersand
theirneedsatthecenterofyourbusiness
Refine
Your operating model
to enable customer
experience
Align
Technologies and Processes
to support and drive
customer engagement
Engage
Executives, leadership and
staff in making customer
intimacy real
Map
and improve
customer journeys
Listen
to your customers
across all aspects of
their experience
Measure
and improve
performance using key
CX metrics
Transform
your culture and reward
systems Incorporate
customer feedback into
experience design

Interested
Invested
Committed
Engaged
Optimized
Stage 1:
Undeveloped
Stage 2:
Ad-Hoc
Stage 3:
Repeatable
Stage 4:
Systematic
Stage 5:
Embedded
CustomerValue
Customer
Experience (CX)
may be important,
but there is no
formal approach
CX is important, and
some formal
programs emerge,
though customer
experience
management
is ad hoc
CX is very important;
customer experience
management
practices
implemented
regularly, but not yet
systematic
or scalable
CX is ingrained in
culture or “DNA”
of the company,
customer experience
management
practices are
performed regularly
and systematically,
and systems are in
place to drive
ongoing
improvement
CX is a core piece of
the company’s
strategy, and
customer experience
management
practices are
performed regularly
and systematically,
Todososystematically,youmustcommittoimproving
yourcustomerexperiencematurity.
Organizational Adoption and Maturity

Embracingtheseeightkeycapabilities, modeledon
thebestpracticesofcustomer-centricleaders
Customer Experience
Strategy
Customer
Understanding
Design and
Innovation
Governance Culture Technology
Developing better customer experiences requires:
Delivering better customer experiences requires:
Measurement Processes

Interested
Invested
Committed
Engaged
Optimized
Stage 1:
Undeveloped
Stage 2:
Ad-Hoc
Stage 3:
Repeatable
Stage 4:
Systematic
Stage 5:
Embedded
Core Capabilities
for Delivering
Better Experiences
Core Capabilities
for Designing
Better Experiences
Buildingonyourexistingcapabilitiestosupport
“customer-centric” transformation
CX strategy
Customer understanding
CX design and innovation
Governance
Culture
Experience measurement
Technology
Processes

Major
Objectives
A multi-phase,
end-to-end
engagement
Design a seamless, end-to end certification experience across platforms
Ensure that changes can be understood and leveraged by MSL and IT
Develop an internal CX capability in Microsoft IT
Research insights and experience design for 3 key, global customer segments
Overarching customer experience strategy for all MSL audiences
Current and ideal state journey maps
Identify and prioritize gaps, improvements, and omni-channel initiatives
AnexampleCXcasestudy:Transforming certification
for5M+globalusersacross 10,000+institutions

Astraightforward approach that enabled IT to more
efficiently build business-aligned technology solutions
Insights Strategy Design Implement Improve
Understand
customer
perceptions
Align on a
strategy to drive
improvements
Design the
experiences
customers need
Build, iterate
and improve –
then roll out
Monitor and
measure, and
improve over time

Linkingan‘outside-in’viewofthejourneyscustomers
takeandthemetricsthatdrivecustomersuccess…
TryLearn Buy Use Support
To understand what customers are doing and how they are
feeling – and where interactions are powerful, painful or
broken, from the customers perspective
Capturing the overall
expectations
Functional and emotional
aspects of the experience
The overall journey, and
individual stages for each
Performance of channels
and interactions
Overall Journey AttributesTouchpoints

People Process Information Technology
How client centric is
your organization?
Do you have and support
the right technologies?
How much do you know
about your clients?
Are your processes simple
& easy to navigate?
To find and prioritize systems issues and gaps,
to drive improvements to the experiences
customers expect to receive
TryLearn Buy Use Support
Toaninside-outviewofthesystems(people,processes,
data,andtechnologies) thatdeliverthesejourneys

Whatdidweaccomplish?Somebusiness results…
User Experience
Substantially Better
Time to Market
Radically Reduced
Significant
Cost Savings
10 Percent Topline
Revenue Increase
Satisfaction
Doubled
100
125
183
200
130
64
90
7
$6.1
$5.1
$25.8
$17.2
$8.6
Improved experiences
drive substantial top-line
revenue increases
Decreased
Certification Annual
Operating Costs
Decreased Certification
Exam Time-to-Market
from 90 days to 7 days
Increased User Satisfaction
with Experience, up 64
points to 130
Increased Business
Partner Satisfaction, up
100 points to 200

“Ifyoudon’tlikechange,
you’regoingtolike
irrelevanceevenless.”
General Eric Shinseki,
Retired Chief of Staff,
U.S. Army
Soaskyourself:Whatmight–
whatmust–YOUaccomplish?

In closing, just a couple things…

Customers andindustries arechanging.Youmust,too.
(Formany,changehappensslowly–thenallatonce).
Customers
need to be at
the center of
your business
The status
quo in your
industry
is changing
Customer
Experience
is the only
sustainable
advantage
Your ability
to manage
processes,
data and
technology
drives success
Your operating
model will
accelerate (or
block) progress

Anyquestions? Let’stalk…

Michael Hinshaw
Direct: +1-415-526-2651
mhinshaw@mcorp.cx
www.mcorp.cx

Customer Experience 101: Building CX Capabilities to Drive Differentiation and Business Success

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