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Voice of the customer
Andy Wilkins, Transform Associate
ICEM 2014, Barcelona
2
ENGINE. Best in class under one roof with more than 700 professionals
Brand Consulting
Strategic &
Digital Consultancy
A...
3
Cross sector experience and expertise
4
Agenda
1. CX is a strategic necessity but is our business logic blocking our progress?
2. 4 levels of context that drive...
5
The waves of commoditisation are crashing onto the
shores of most industry sectors
1. Competition is becoming more
inten...
6
Enhancing relationships through customer experience is the
new competitive advantage
1. Competition is becoming more
int...
7
Despite significant investment in CX, loyalty levels remain
poor
• Most CX activity is
focused trying to fix
problems an...
8
Industrial age business logic doesn’t work in a relationship
economy
Industrial age logic Relationship age logic
Primary...
9
How real is the commitment to CX? Are you putting lipstick
on the pig?
Customers The Company Shareholders
We thought you...
10
Targets or customers?
IMAGE SOURCE: DILBERT.COM
If there is a choice between meeting a target or doing what’s right for...
11
Value proposition or marketing?
IMAGE SOURCE: DILBERT.COM
If you are losing customers do you improve the value proposit...
12
Understanding which customer experiences to create isn’t
easy
1. Competition is becoming more
intense
2. Sustainable co...
13
A transformative CX strategy needs to take in a wider
perspective
1. Overall societal and political
beliefs
2. Overall ...
14
Societal level trends shape a customer’s overall views and
attitudes
Questioning of market behaviours
• Banking crisis ...
15
A company’s brand values and reputation are more important
than ever
Customers are increasingly judging companies on th...
16
Maximising value from using a company’s product is key to a
good CX
The quality of a company’s solutions depend on its ...
17
The service CX is the true test of the ongoing customer
relationship
The service experience needs to be designed around...
18
Context drives a growing set of device choices for digital
access
SOURCE: GOOGLE
Today consumers own multiple devices a...
19
Smartphones are the most common place for starting online
activities
SOURCE: GOOGLE
20
Retailers are moving from a single, to a multi, to an
omnichannel CX
Promote Research Select Sell Service End of Life /...
True customer centricity requires an 180 degree inversion to
orchestrate resources & KPIs around the customer….
The custom...
22
A transformative CX strategy requires more than traditional
VOC
Traditional measures like NPS and CSAT are not enough
•...
What are some of the CX pioneers doing differently?
24
Technology as an enabler, not a solution - Apple
“You„ve got to start with the
customer experience and work
back toward...
25
A CX culture needs new ways of thinking
Zappos
•Delegating responsibility & ownership through principles not
instructio...
26
Burberry – in store digital experiences
• Augmented reality mirror offers
extended product information and
inspirationa...
27
Spaaza and C&A Brazil – social network integration
C&A
•Integration with online (Facebook “Likes”)
and in-store experie...
28
Disney – magic mirror fantasies
• Virtual dressing room - mirrors deployed
to enable children to see themselves as
thei...
29
Bringing it all together – using CX to drive innovation and
transformation
1. New base line
• Integrated end to end cus...
30
Thank you….
Andy Wilkins
+44 (0) 7713 266626
andy.wilkins@transformuk.com
Or: andrew.wilkins@btinternet.com
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Voice of the customer - delivering customer centricity

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.

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Voice of the customer - delivering customer centricity

  1. 1. Voice of the customer Andy Wilkins, Transform Associate ICEM 2014, Barcelona
  2. 2. 2 ENGINE. Best in class under one roof with more than 700 professionals Brand Consulting Strategic & Digital Consultancy Advertising Full Service Digital Sponsorship Consulting & Activation Direct Digital Marketing Consumer PR PR & Public Affairs Social Media Experiential Data Strategies Digital Design
  3. 3. 3 Cross sector experience and expertise
  4. 4. 4 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
  5. 5. 5 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
  6. 6. 6 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
  7. 7. 7 Despite significant investment in CX, loyalty levels remain poor • Most CX activity is focused trying to fix problems and not on innovating differentiating experiences
  8. 8. 8 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
  9. 9. 9 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?
  10. 10. 10 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?
  11. 11. 11 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?
  12. 12. 12 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?
  13. 13. 13 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
  14. 14. 14 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
  15. 15. 15 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
  16. 16. 16 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
  17. 17. 17 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
  18. 18. 18 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
  19. 19. 19 Smartphones are the most common place for starting online activities SOURCE: GOOGLE
  20. 20. 20 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. 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
  22. 22. 22 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. 23. What are some of the CX pioneers doing differently?
  24. 24. 24 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
  25. 25. 25 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!
  26. 26. 26 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
  27. 27. 27 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
  28. 28. 28 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
  29. 29. 29 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
  30. 30. 30 Thank you…. Andy Wilkins +44 (0) 7713 266626 andy.wilkins@transformuk.com Or: andrew.wilkins@btinternet.com

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