SAP 360 Customer Forum Nicholas Kontopoulos | Senior Global Marketing Director 8th of March, 2013 | Hong Kong

One Customer. One Experience. One Enterprise

Customer Experience Management

A little bit more about me…

@Nicholask71

and what makes me tick.

@Nicholask71

@Nicholask71

@Nicholask71

@Nicholask71

Passionate about my customers

My objective today is to…

Fire-up your brain juices

By  taking  a  look  at  the  imapct  that  the  age  of  the  “Digital  Customer”  is  having  on  your  

businesses  

The Impact that the

Digital Customer

Enterprise is having on the

OP + NT = EOP

"If you keep on doing what you've always done, you'll keep on getting what you've always got.”  

Who said it?: W L Bateman

Inefficiencies

Bureaucracy

Lack of innovation

40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010”

“

Who is  the  21st-­‐century  customer?  

The Good Old Days

The 20th century was all about telling customers what they wanted…

There has been a

Revolution

Customers No Longer Passive

The are Now Armed to the teeth

The  Digital  Revolu9on  is  changing  the  future  of  business,  media  and  culture.  

Your customers are becoming

Digital Natives

Technology is helping spread the

word and thus giving a voice to the customer.

Digital Darwinism when  technology  and  society  evolve  faster  than  the  ability  for  companies  to  adapt  

Who said it?: Brian Solis

The customer is now driving the conversation

 

OP + NT = EOP

Dude, its not all about the technology…

21st-century customers require

21st-century management response

a

History Lesson on Management 1.0

1890:

90% of the then developed world worked in agriculture & the average manufacturing

firm employed 4 employees. 1915:

Ford was making a ½ million cars and US Steel was the first company in history to

Turnover $1b a year.

History Lesson on Management 1.0

1920:

By this time most of the tools for modern management have been created:

Pay for Performance Capital Budgeting Task Design Divisionalization Brand Management

Since then the way we manage has hardly changed.

Old Engagement Model Sales Funnel

Source: St. Elmo Lewis 1898

New Engagement Model

Time for a Enterprise Reboot

We need to rethink our marketing and sales strategies. Lets start with binning the concept of..

a go-to-customer strategy.

a go-to-market strategy

and replace it with…

Customer Experience Management

Just  because  you  have  customers  doesn't  mean  you're  

Customer Centric

The “value added” for most any company, tiny or enormous, comes from the quality of the

– Tom Peters

experience provided.”

Source: 2010 IBM Global CEO Study: Capitalizing on Complexity

Customer-Intimacy: Key CEO Focus Top focus areas in next five years

Customer Experience: "The  customer's  percepCons  and  related  feelings  caused  by  the  one-­‐off  and  cumulaCve  effect  of  interacCons  with  a  supplier's  employees,  systems,  channels  or  products.“  

Source:  Gartner    

“Or,  the  aggregated memories of  every  touch  a  customer  has  with  your  company”  

Customer Experience Management: “The  pracCce  of  designing  and  reacCng  to  customer  interacCons  to  meet  or  exceed  customer  expectaCons  to  increase  customer    saCsfacCon,  loyalty  and  advocacy”  

Source: Gartner

“Or,  delivering  a  consistent customer experience across  the  enCre  enterprise”  

PM + PK = T

Promises made + Promises kept =

Every sales has five basic obstacles: no need, no money, no hurry, no desire, and

– Zig Ziglar

no trust.”

the  reality  is  customers  have  never  had  a  greater  choice  of  vendors  to  select  from.

“Its now your obligation to

study how, where & why

customers are connecting

and how they’re making and

influencing decisions”

Who said it?: Brian Solis

“It takes a mere 5% of “Informed individuals” to influence the direction of a crowd of up to two hundred people.”

Professor Jens Krause, Leeds University

“Respondents time after time end up concluding that they lead the group – even though they were lead by others”

Professor Jens Krause, Leeds University

on the shared experiences of others.

People make decisions based…

Ok,  but  where  do  we  start  then?  

You need a strategy

“Everybody has a plan until they get punched in the face" Mike Tyson

Get back to basics

Quick-fire questions to consider.       ? Who  are  we  and  who  do  we  want  to  be?  

How  do  our  customers  perceive  us  today  and  how  do  we  want  them  to  view  us  tomorrow?  

What  are  the  most  influenCal  drivers  of  the  sales  experience?  

Quick-fire questions to consider. ? Do  we  know  who  our  most  valuable    customers  are?    

Are  we  able  to  spot  changes  in  purchasing  behaviour?  

What  acCons  are  your  sellers  doing  which  may  result  in  a  negaCve  sales  impact?  

Where to start?

7  Steps  to  get started with  CEM  

Source: 1to1 Media 7 Steps to Get Started With Customer Experience

§  Build  a  cross-­‐funcConal  work  team  §  Define  key  elements  of  a  strategy  §  Map  the  customer  journey  §  Consolidate  customer  data  collecCon/VoC  §  Create  a  governance  mechanism  §  Map  the  customer  experience  ecosystem  §  Select  Projects  that  build  momentum

OP + NT = EOP

Ok,  but  how  does  Enterprise CRM fit  into  Customer  Experience  Management  then?  

CRM

We  can  design  &  deliver  you  a  world  class    

CRM strategy no  problems…  

Complexity    

Excess baggage

CRM  is  not  about  soZware…  

…it  is  an  ideology

It  is  about  connecting  people…  

employees customers

it  is  about  

delighting your customers  

Account number: 23058399  

Transaction number:  00092374  

Complaint number: CP09938  

and  seeing  them  as  more  than  just  a  number…  

Revenue number:  €        $      £  

…and as companies most

Valuable asset

§  25%  of  firms  reported  that  poorly  defined  business  requirements  having  a  negaCve  impact  on  projects  

§  48%  surveyed  admiged  they  suffered  technical/integraCon  difficulCes  

§  31%  of  firms  reported  that  poor  business  process  design  accounted  for  project  failures  

§  21%  of  businesses  stated  the  need  to  customise  CRM

Avoid  becoming  one  of  these  staCsCcs  by  rethinking  your  CRM  strategy    

Source: Computer Weekly.com – Forrester: rethink your CRM strategy

CRM Success Factors: Strategy,  Process,  Technology,  And  People  

February 2012 “Navigate The Future Of CRM”

Service Marketing

Sales

Select Product/ Quote

Order/ Credit Check

Procure/ Build

Ship/ Ensure Fulfillment

Billing/ Accounts Receivable

Traditional Siloed Front-Office CRM

True 360° Customer Engagement Beyond CRM

•  First contact resolution rate •  Customer referral rate •  Unsolicited customer inquiries

Customer-focused KPIs •  Average call handling time •  Number of cold calls per hour •  Number of leads generated

Internal-focused KPIs

Its  about  inviCng  and  integraCng  the  customer    into  your  enterprise,  this  is  the  definiCon  of  

customer centricity

CEM + CRM = Customer Intimacy

One customer, one enterprise,

One experience.

OP + NT = EOP

IT ALL STARTS WITH EMPOWERING PEOPLE

Insight Make Better Decisions

white noise

Big data

Can Marketing Lift Stock Prices?

5 years of data was crunched for two Fortune 1,000 companies (B2B & B2C).

9 month field experiment using specific marketing strategies based on the “customer lifetime value” of each customer or customer segment.

90% of both companies profits were being generated by 20% of their clients.

Used analytics to determine “Customer lifetime value”

Can Marketing Lift Stock Prices?

B2B company stock increased 33% nine months after experiment. Top 3 competitors stock increased 12%.

B2C company stock increased 58% nine months after experiment. The top 3 competitors stock increased 15%.

Unleash Customer Value Intelligence

Data Driven Sales Motion

Facebook

More than 1 billion active users

Average user has 130 friends 700 billion minutes spent per month

Twitter More than 200 million active users

Search queries per day 800,000 65 million tweets a day

Youtube More than 2 billion views per day

24 hours of video uploaded every minute

Each user spends 15 minutes per day

What Organizations think of Social Media? Social Media is Real but Overwhelming!

Few Businesses Have Adjusted Their Social Media Strategy Businesses either don’t or cannot respond to customers in a timely manner

Social Data at your finger tips

anywhere people  congregate.  

90% of  word-­‐of-­‐mouth  conversaCons  about  brands  take  place  offline…  

primarily face-­‐to-­‐face,  in  people’s  homes  and  offices,  in  restaurants  and  stores,  really…  

Source: KellerFayGroup

Collaboration Harness the collective wisdom of the crowd

Did you know       87% firms say that 3 or more people are needed to be engaged for each sales effort

? Source: CSO Insights

One Team = Collaboration

(MORE) (LESS)

“We win”

“You lose”

Be informed with less effort

Agility Information on the move

We are now living in an always on, connected world

2012: 327M U.S. mobile phones

2013: mobile phones have taken over PC as preferred device to access the internet

2015: mobile phones primary computing device

The Future: Internet of Things

The number of mobile workers

User Survey Analysis: Remote Worker Communications Applications and Services, Worldwide

is growing faster than the overall workforce.”

Omni Channel Building a connected engagement platform

24/7 brands

Your Customers don’t clock off at 5pm

Todays Customer Wants Instant Gratification

Youth Quake Gen Y impact

1.5 Billion Millennials globally

Coming of age: In 2011 the youngest hit their mid-teens & the oldest entered their 30’s

Nicholas, sounds great in theory, but who’s transformed their go-to-customer strategy successfully?

CEMEX CEM strategy delivered real tangible results to its customers and shareholders:

n  99.9% accuracy on order-entry transactions

n  99% cement delivery record with no service issues

n  30% ROI based on efficiency improvements and incremental sales

n  29% more volume with the same headcount in customer care center – Reduced Operating Costs

n  Increased customer satisfaction

n  Increase revenues - delivering sustained growth for shareholders  

Ven Bontha, Director – Customer Experience, CEMEX USA

OP + NT = EOP

Change is the biggest obstacle

But, change has now changed, it is now…

Ever surprising Unrelenting Unforgiving Only going to get faster & faster & faster…

Adapt or

Die”

“

There is no single silver bullet solution

Avoid diet pill approach Short Term Gains

Beware of island solutions

PEOPLE + PROCESS + TECHNOLOGY

BUILD A CONNECTED ENTERPRISE

BY BRINGING TOGETHER

Competitive Advantage Requires Hard Work

Service Marketing

Sales

Select Product/ Quote

Order/ Credit Check

Procure/ Build

Ship/ Ensure Fulfillment

Billing/ Accounts Receivable

Traditional Siloed Front-Office CRM

True 360° Customer Engagement Beyond CRM

•  First contact resolution rate •  Customer referral rate •  Unsolicited customer inquiries

Customer-focused KPIs •  Average call handling time •  Number of cold calls per hour •  Number of leads generated

Internal-focused KPIs

Key Takeaways

Customer Intimacy 1 It all starts with passion & purpose

2 It’s now the age of the Digital Customer

3 Time for a new Strategy

Everything begins & ends with your customer.

4 Avoid making the same mistakes

5 Innovate at the cold face

Choosing to Ignore Your Customers is Not a Solution Customers  have  Virtual  Megaphones  to  Broadcast  Their  Dissa9sfac9on  

MIT SMR “When Unhappy Customers Strike Back on the Internet” Jan 2011

“The company’s attempt at recovery should be swift and its apology perceived as sincere, [but] Timing is everything!” †

Customer Journey

Vision

Core team

Platforms Intimacy

Think BIG

Start Small &

Different perspective

Delivered simply & conveniently

– Vineet Nayar, HCL

Enable innovation at that interface.”

Value gets created between the employee and the customer, and management’s job is to

Excellent books to get your brain juices fired up

Some cool CEM assets worth reading…

I have the power to drive

transformational change

OP + NT = EOP

?

Old Process + New Technology =

Expensive Old Process

©  2011 SAP AG. All rights reserved. 138 Public

Feel free in connecting with me @

#nicholask71

Nicholas.kontopoulos@sap.com

http://cn.linkedin.com/in/nicholaskontopoulos

Thank You!

©  2011 SAP AG. All rights reserved. 139 Public

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