Post on 15-Jan-2017
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Beyond CRM: Omnichannel Commerce and
the Customer Experience
16 March 2016
Singapore
@DonPeppers
2
New technologies rapidly undermine old ones
What do Coca-Cola and J.P. Morgan Chase have
in common?
Voice-mail is so…
20th Century!
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Disruptive innovations are hazardous to every existing company’s health
Rob Nail CEO and Co-Founder
Six Qualities Required Of a Digital CEO Leading a Disruptive Start-up:
1. Visionary customer advocate
2. Data-driven experimentalist
3. Optimistic realist
4. Extremely adaptable
5. Radically open
6. Hyper-confident
Source: Exponential Organizations (2014), Salim Ismail, et. al.
1. Visionary customer advocate
Now think about what this actually means for today’s business environment
It means that customers are the biggest disruptors of all!
The largest hotelier in the world today is…
Source: Exponential Organizations, Ismail, Malone & van Geest, 2015
More than 1.5 m listings in 34,000+ cities in 190 countries
$25b valuation today, 5X bigger than Hyatt’s
1500 employees (97% fewer than Hyatt)
Airbnb’s only real asset: CUSTOMERS
Customers now create more value, more quickly, than any other single kind of business asset
By 2010 less than 50% was tangible. >30% was in customers.
Tangible Intangible
In 1980 nearly 100% of the S&P 500 market cap was tangible assets.
Tangible
Intangible
Source: Grow (2011), by Jim Stengel
Strategy. Execution. Results.
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The Culprit: Moore’s Law
Uganda has more mobile phones than lightbulbs, and more Indians have access to a mobile phone than to a private a toilet
British scientists are developing an “appetite app” – a Bluetooth-enabled microchip implanted near the vagus nerve
Every 20 years, computers get a thousand times more powerful
In 1999 it cost $15m+ to do an online company start-up in Silicon Valley. Today it costs ~$150K
Strategy. Execution. Results.
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Consumers are completely informed, all by themselves
Customers
demand real-time
interaction with
the companies
they buy from Sales, service and marketing have been smashed together into the
“customer experience”
The Culprit: Moore’s Law
Strategy. Execution. Results.
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Technology changes the dimension of business competition
Product Centricity Market share
Customer Needs
Satisfied
Customers Reached
Share of customer
Cu
sto
me
r Ce
ntr
icity
Treating different customers differently
Relationships are required
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“Executing true 1-to-1 marketing at scale has been shown to lift overall revenues by more than 5%.”
- SAP Voice, September 2015
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1-to-1 marketing ≠ Random acts of service
Moral of the story: If you don’t remember your customers, then even the
most well-intended service can be worse than nothing!
What one business hotel taught me with their “VIP Guest” program
Strategy. Execution. Results.
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Technology changes the dimension of business competition
Product Centricity Market share
Customer Needs
Satisfied
Customers Reached
Share of customer
Cu
sto
me
r Ce
ntr
icity
Managing each customer’s experience
Managing the public’s perception
Strategy. Execution. Results.
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How a different hotel managed my customer experience…
“Customer experience is the greatest untapped source of both decreased costs and increased revenue in most industries.”
- Harley Manning, Forrester analyst
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So what is a “good” experience?
In a word:
Frictionless
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Satisfaction and loyalty are not highly correlated
Source: The Effortless Customer Experience, 2013
However, customer dis-loyalty is highly correlated with a poor customer experience!
The secret to customer loyalty is a frictionless experience that removes obstacles
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The secret to customer loyalty is a frictionless experience that removes obstacles
Strategy. Execution. Results.
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Forrester’s Customer Experience Pyramid
Meets need
Easy
Enjoyable
Source: Outside In, 2012
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The upside and downside of CX
Source: The Effortless Customer Experience, 2013
Product experience
Likelihood of telling a friend
Customer service experience
Likelihood of telling a friend
Eliminate the friction in your customer service
Delight the customer with your product
Strategy. Execution. Results.
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Meets need
Enjoyable
Easy
The upside and downside of CX
This is where you want to be
But this is where you have to start
Eliminate the friction in your customer service
Delight the customer with your product
Like electricity and water, customers will always seek the path of least resistance
Reliable
Valuable
Relevant
Trustable
Four qualities in a truly frictionless customer experience:
Strategy. Execution. Results.
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Competence
Of course, it’s always been important to have
your customer’s trust
Good Intentions
Doing things right
Doing the right thing
Strategy. Execution. Results.
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But Moore’s Law has a corollary…
Every 20 years, computers get a thousand times more powerful
Strategy. Execution. Results.
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Every 20 years, we interact a thousand times more with others!
…Zuckerberg’s Law
Strategy. Execution. Results.
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The average American teenager sends 180 text messages every day
Strategy. Execution. Results.
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The more we interact, the more trust we demand
Trust makes interactions efficient
Interactions generate transparency
Strategy. Execution. Results.
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A new standard: Extreme Trust
Proactive trustworthiness
It’s no longer enough simply to refrain from cheating or deceiving customers
“Trustability”
Strategy. Execution. Results.
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Competence
Good Intentions
Doing things right
Doing the right thing
Proactively
Extreme Trust
“Trustability”
Strategy. Execution. Results.
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Extreme Trust characterizes the most successful digital commerce companies…
Strategy. Execution. Results.
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What set of tasks does a business have to undertake to be successful?
Product Centricity Market share
Customer Needs
Satisfied
Customers Reached
Share of customer
Cu
sto
me
r Ce
ntr
icity
Managing each customer’s experience
Managing the public’s perception
Strategy. Execution. Results.
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Product Centricity
Customer Needs
Satisfied
Customers Reached
Managing the public’s perception
Strategy. Execution. Results.
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Customer Needs
Satisfied
Customers Reached
Cu
sto
me
r Ce
ntr
icity
Managing each customer’s experience
Omnichannel technologies
Data management and analytics
Customer service and CRM
Product content management
Order management
Supply chain integration
Enterprise resource planning
Strategy. Execution. Results.
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Customer Needs
Satisfied
Customers Reached
Cu
sto
me
r Ce
ntr
icity
Omnichannel technologies
Data management and analytics
Customer service and CRM
Product content management
Order management
Supply chain integration
Enterprise resource planning
Front-end processes
Back-end processes
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Delivering a frictionless CX is hard!
Information integration and accessibility
Configuration of organization, including structure, incentives, and accountabilities
Orientation: attitude and culture
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Actions to deal with these obstacles:
Capabilities Obstacle
Technology upgrade and integration, omnichannel interaction, customer analytics, knowledge management, lead generation and conversion process improvement…
Assessment, roadmap, customer journey mapping, workforce management, metrics, incentives…
Change management, executive coaching and training, corporate culture transformation, social collaboration tools…
Alignment Obstacle
Mind-set Obstacle
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“Omnichannel” can refer to several issues:
“Omnichannel” Capabilities Obstacle
ü Technologies that work well with each other, so that customer interactions are more frictionless
ü Interactions from a company’s marketing, sales, and service channels, fully coordinated with each other
ü Best definition: Seamless interaction from the customer’s perspective, across whatever channels the customer chooses
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In most businesses today, the vast majority of inbound customer calls are preceded by a web site session!
“Omnichannel” Capabilities Obstacle
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Four ways to integrate the online CX with the contact center or retail CX
Proactive chat
“Call Me” button
Temporal number
Click to call
Capabilities Obstacle
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…at a telecom client
Managers were tasked with delivering higher NPS numbers
But when financial results fell off during one quarter, threatening profit margins…
…the finance department unilaterally decided to eliminate nearly all refunds to customers!
Alignment Obstacle
Problem: How to align non-financial customer metrics with corporate financial metrics
Strategy. Execution. Results.
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Computers will never do everything
Mind-set Obstacle
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Routine and non-routine customer experiences
High Low
Consumer Engagement
Process Standardization
High
Low Business as usual
Predictable customer
lifecycle events Surprises, trials and tribulations
Threats to cost efficiency
Employees making non-routine decisions
Effective decisions require employees to be:
v Engaged v Enabled
High
High
Low
Low
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The real secret to a successful digital business…
The “Mechanical Turk”
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There has to be a person in there
What you want: Self-organization
Your employees need to be
Engaged in their work and
Enabled to accomplish their mission
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What one Australian company told me
When a customer problem is encountered for which there is no good policy or solution…
What you want: Self-organization
…a customer service rep can devise their own solution and get agreement from any other rep!
Strategy. Execution. Results.
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“Culture eats strategy for breakfast” - Peter Drucker (1909 – 2005)
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At Toyota, culture is a deliberate act
Every worker, no matter how far down, is a “knowledge worker”
Everyone is asked to think creatively about improving his job
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The “Toyota Way” Kaizen. Continuous improvement
Challenge. Don’t view problems negatively, but as a way to improve performance
Teamwork. Company's interests first
Genchi genbutsu (GG). “Go to the source”
Respect for others. Express differences, respectfully
“If two employees always agree, then one of them is redundant”
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The “Toyota Way” depends on trust
Management trusts employees, and employees trust management and each other
Suppliers trust Toyota to “do the right thing”
A 1997 fire at a Tier One supplier threatened to shut down Toyota’s production
But then a network of suppliers fixed the problem themselves, with little or no direction from Toyota!
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Strong cultures inspire workers to want to provide a better customer experience
What I heard from a marketing exec at one hotel chain…
And motivated workers themselves can often overcome alignment and capabilities obstacles
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Peppers & Rogers Group Customer strategy consultants with offices around the world
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