Andy Wilkins at Transform was asked to deliver a keynote presentation at 2014 International Customer Experience Summit run by KP Morgan, to discuss the urgent need for a more ambitious and transformational approach to CX if maturing industries are to escape from the clutches of commoditisation and high customer churn. European executives from the retail banking and telecoms sectors came together to share their experiences, reflect on the CX journey so far and discuss future challenges and opportunities.

1. Voice of the customer
Andy Wilkins, Transform Associate
ICEM 2014, Barcelona

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Cross sector experience and expertise

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Agenda
1. CX is a strategic necessity but is our business logic blocking our progress?
2. 4 levels of context that drive holistic CEM
3. Digital drives new customer experience possibilities but omnichannel is
the new table stakes
4. Customer centricity requires a completely new orientation
5. VOC needs to incorporate a broader range of inputs
6. Examples of leading edge CE approaches in retail and banking
7. Bringing it all together and setting the ambition

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The waves of commoditisation are crashing onto the
shores of most industry sectors
1. Competition is becoming more
intense
2. Sustainable competitive
advantage is hard to maintain
3. Old marketing levers don’t
work
4. Customers are more demanding
and less loyal

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Enhancing relationships through customer experience is the
new competitive advantage
1. Competition is becoming more
intense
2. Sustainable competitive
advantage is hard to maintain
3. Old marketing levers don’t
work
4. Customers are more demanding
and less loyal

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Despite significant investment in CX, loyalty levels remain
poor
• Most CX activity is
focused trying to fix
problems and not on
innovating
differentiating
experiences

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Industrial age business logic doesn’t work in a relationship
economy
Industrial age logic Relationship age logic
Primary business logic Product centric Relationship & service centric
Most important entity Shareholders Customers
Principal value focus Maximising financial return for the company/
shareholders
Maximising value for customers
KPI focus Financial & transaction centric Service & customer needs centric
Customer orientation Persuasion to buy/ lock in Co-creating value & becoming a trusted partner
Customer insight focus Maximising ability to target company products Understanding needs to identify opportunities
for creating mutual value
Operational logic Standardise & automate to maximise efficiency Dynamic flexibility to meet individual customer
needs
Employee logic Resource to be managed to maximise commercial
return
Resource to be nurtured to maximise value of
customer relationships
1. Industrial age logic – transaction and
product focused
2. Relationship age logic – service and
relationship focused

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How real is the commitment to CX? Are you putting lipstick
on the pig?
Customers The Company Shareholders
We thought you
said you loved
us?
Yea, whatever.
Business is
business.
Who’s your
Daddy?

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Targets or customers?
IMAGE SOURCE: DILBERT.COM
If there is a choice between meeting a target or doing what’s right for the customer ..
how is that decision made in your company?

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Value proposition or marketing?
IMAGE SOURCE: DILBERT.COM
If you are losing customers do you improve the value proposition or do you try to fix the
problem with more marketing?

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Understanding which customer experiences to create isn’t
easy
1. Competition is becoming more
intense
2. Sustainable competitive
advantage is hard to maintain
3. Old marketing levers don’t
work
4. Customers are more demanding
and less loyal
What?
Who? When?

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A transformative CX strategy needs to take in a wider
perspective
1. Overall societal and political
beliefs
2. Overall attitude to
Company
3. Attitude to Company
products/ solutions
4. Attitude to service
experience
Existing and
potential
customers
To design a compelling CE requires data and analysis that goes much wider than service interactions…..
Customer’s
Experience lens

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Societal level trends shape a customer’s overall views and
attitudes
Questioning of market behaviours
• Banking crisis & mis-selling scandals
• Morality of neo liberal free markets
• Greed, exploitation & rising inequality
Fear of technology & the future
• Abuse of privacy & private data
• Fears about use of science & technology
• Vulnerability & fear of the future
The empowered customer
• Decline in deference to authority
• Rise in individualism & life on my terms
• Rise in awareness & access to information
• Rise of activism & mobilisation of outrage
1. Overall societal and
political beliefs
Existing and
potential
customers
2. Overall attitude
to Company
3. Attitude to Company
products/ solutions
4. Attitude to service
experience
Customers are increasingly vocal and critical of market related behaviours

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A company’s brand values and reputation are more important
than ever
Customers are increasingly judging companies on their wider actions within society…
Is this Company a good moral citizen?
• Sustainability and green credentials
• Sustainable sourcing
• Involvement in local and national causes
What kind of Company is this?
• Fiduciary and tax avoidance strategies
• Brand reputation and quality of its solutions
• Approach to new and existing customers
• Approaches to market & competitors
• Treatment and support for staff
1. Overall societal and political
beliefs
2. Overall attitude to
Company
3. Attitude to Company
products/ solutions
4. Attitude to service
experience
Existing and
potential
customers

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Maximising value from using a company’s product is key to a
good CX
The quality of a company’s solutions depend on its ability to consistently meet customer needs
Experiential based design
• Design & aesthetics
• Usage contexts & segmentation
• Gaming & creation of new experiences
Innovation new solutions
• “Jobs to be done” based needs analysis
• Functional & emotional desired outcomes
• Customer co-creation of value
• Ecosystem development
1. Overall societal and political
beliefs
2. Overall attitude to
Company
3. Attitude to Company
products/ solutions
4. Attitude to service
experience
Existing and
potential
customers
Incremental Product development
• Existing product usage data & profiling
• Customer feedback & analysis
• Feature enhancement – extend/ simplify

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The service CX is the true test of the ongoing customer
relationship
The service experience needs to be designed around the needs of customers
1. Overall societal and political
beliefs
2. Overall attitude to
Company
3. Attitude to Company
products/ solutions
4. Attitude to service
experience
Existing &
potential
customers
Service experience design
• Existing service usage data and analysis
• Customer journey requirements mapping
• Segmentation and personalisation
• Omnichannel mix and preferences
• Co-creation + sense & respond testing
A coherent CE needs to exist across all touch points

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Context drives a growing set of device choices for digital
access
SOURCE: GOOGLE
Today consumers own multiple devices and move seamlessly between them throughout the day

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Smartphones are the most common place for starting online
activities
SOURCE: GOOGLE

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Retailers are moving from a single, to a multi, to an
omnichannel CX
Promote Research Select Sell Service End of Life /
Retain
Online
Store
Contact
Centre
Kiosk
Mobile
IPTV

21. True customer centricity requires an 180 degree inversion to
orchestrate resources & KPIs around the customer….
The customer solar system
• Traditional power structures are pointing in the
opposite direction to the customer
• Frontline staff and channels are often left
caught between the demands of customers and
the performance metrics of the organisation
• Customers are often left in the cold outer
regions of the solar system
Customers Shareholders

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A transformative CX strategy requires more than traditional
VOC
Traditional measures like NPS and CSAT are not enough
• NPS provides a simple and useful metric to help compare
relative performance
• On their own they have some value in helping to identify and
sort out clear experience problems
• They provide little or no insight into the wider unmet needs of
customers and offer little in guidance on how to deliver a
differentiated CE
A more comprehensive VOC approach is required
• Understanding what drives value for the customer is key
• New measures are required that blend quant, qual, frontline
feedback and insight
• Emerging big data streams will provide more comprehensive &
predictive understanding of CE drivers
We are on the start of a bigger journey to better understand how customers think and decide!

23. What are some of the CX pioneers doing differently?

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Technology as an enabler, not a solution - Apple
“You„ve got to start with the
customer experience and work
back toward the technology - not
the other way around.”
Steve Jobs

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A CX culture needs new ways of thinking
Zappos
•Delegating responsibility & ownership through principles not
instructions
•Values understood, lived, owned and rewarded
•Recruitment for “cultural fit” not for skills
Barclays, Aviva & GSK
•Trust needs to be earned not demanded
•All sales targets have been removed & replaced with service
metrics
•Recognition that staff need to be incentivised to work in
customers’ best interests
•Remunerating in-line with the behaviours you seek!

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Burberry – in store digital experiences
• Augmented reality mirror offers
extended product information and
inspirational content
• Garments fitted with RFID tags –
customers can flash them in front of
digital screen to see content on fabric
details
• Store hosts digital events including
streaming of fashion shows - venue
• Store designed to be a physical
manifestation of the website – not the
other way around

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Spaaza and C&A Brazil – social network integration
C&A
•Integration with online (Facebook “Likes”)
and in-store experience
•Hanger displays number of Facebook likes
registered against a product online
Spaaza
•Scan QR code on item and given a price
depending on your level of influence and brand
advocacy on social networking sites

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Disney – magic mirror fantasies
• Virtual dressing room - mirrors deployed
to enable children to see themselves as
their favourite character
• Story enhancement – children take a
product and wave it in front of the
magical mirror and then they get to see
a fairy tale related to it in the mirror

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Bringing it all together – using CX to drive innovation and
transformation
1. New base line
• Integrated end to end customer
journeys
• Omni channel delivery
• Customer centric orientation
2. Exploit experiential
opportunities
• Enhanced in-store experiences
• Enhanced digital experiences
3. Cultivate relational opportunities
• Exploit social media engagement
• Anticipate life stage & contextual
needs
• Extend membership experiences
4. Look for transformational
opportunities
• Enable customers to realise their
goals & dreams
Customer experience strategies need to extend beyond transactional excellence to cultivate emotional
connection with customers as a competitive differentiator

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Thank you….
Andy Wilkins
+44 (0) 7713 266626
andy.wilkins@transformuk.com
Or: andrew.wilkins@btinternet.com