customer centricity

www.sequentisconsulting.com

Customer Centricity

Copyright Sequentis Consulting 2 Proprietary & Confidential

Copyright Sequentis Consulting

Outcome : Deliver Mutual Value

3 Proprietary & Confidential

Loyalty - Priceless

All Other Brands High Loyalty Brands

Source: Corporate Executive Board,2009

Impact on Business Drivers

Share of Wallet

Intent to Repurchase

Pay Premium

Impact on moving from the 25th to the 75th percentile on loyalty Source: Corporate Executive Board,2009

Copyright Sequentis Consulting 6

Brands strive for true Loyalty

What is True Loyalty ?

True loyalty is not only about getting

a customer to consistently choose our

brand over another—it’s for that same

customer to always believe (and tell

the world) that our brand has no

equal!

Copyright Sequentis Consulting 8 www.cultbranding.com

Copyright Sequentis Consulting 9 www.cultbranding.com

Key Enablers of Customer Centricity

Customer Centricity

Clarity & Single Minded

Purpose

Recognizing Emotions

Leveraging Data &

Technology

Customer Outcomes vs

Functional Departments

When dealing with people,

remember you are not dealing

with creatures of logic but with

creatures of emotion

- Dale Carnegie,(1888-1955)

You are buying a nice pen. At the first store you visit, the pen costs $25. But you find out that the same pen is on sale for $18 at a store 15 minutes away. Do you make the trip?

Most people will.

Study by Amos Tversky and Daniel Kahneman

You are buying a nice suit. At the first store you visit, the suit costs $425. But you find out that the same suit is on sale for $418 at a store 15 minutes away. Do you make the trip?

Most people will not.

Economist Subscription

Print only subscription for $59

Web Only subscription for 125$

Web and Print Subscription for 125$

Source: Predictably Irrational by Dan Ariely

Economist Subscription

Print only subscription for $59

Web and Print Subscription for 125$

Source: Predictably Irrational by Dan Ariely

Copyright Sequentis Consulting 19 Source: Dan Ariely

Antonio Damasio – Descartes Error

Experience vs Memory of Experience

25 Redelmeier & Kahneman, 1996

People see the world in the way

they want to see it rather than

the way it is

Memory of the experience is more

important than the experience

itself

People decide emotionally and

then explain it rationally

Win hearts to win over wallets

Emotional

differentiation

Functional

differentiation

Consumer

routine

Loyalty programs

% Impact on loyalty

Source: Marketing Leadership Council, 2009

Copyright Sequentis Consulting 31 Simple Truths of Service: Inspired By Johnny the Bagger by Ken Blanchard and Barbara Glanz

How do we create the tribe?

So, How do we create the

emotional connection ?

Shared Value

Emotional

Relevant

Higher Order

Credible

Shared value is a belief that both our brand and our consumers have about a higher purpose, passion or philosophy that has meaning in our lives beyond a specific category or industry.

Shared value is a critical driver of

loyalty

Average Brands High Loyalty Brands

Ownership of Shared Values

Average Brands High Loyalty Brands

Connect with & Protect Nature

For us at Patagonia, a love

of wild and beautiful places

demands participation in

the fight to save them, and

to help reverse the steep

decline in the overall

environmental health of our

planet.

Inspiring Creativity

Crayola is passionate about helping parents and educators raise creatively alive children who we believe will grow to be inspired, original adults.

Broadly 5 underlying human

motivations…

Eliciting Joy: • Activating experiences of happiness, wonder, and

limitless possibility

Enabling Connection

• Enhancing the ability of people to connect with each other and the world in meaningful ways

Inspiring Exploration:

• Helping people explore new horizons and new experiences

Evoking Pride: • Giving people increased confidence, strength,

security, and vitality

Impacting Society:

• Affecting society broadly, from challenging the status quo to redefining categories

Culture DNA

Shared

Artifacts, Symbols

Rituals, Ceremoni

Stories, Myths

Heroes

Norms, Rules

Framework

Shared Value

Symbols Stories Heroes Norms Rituals

Where - Space

When - Time

What - Offer

This model applies to staff, partners, customers and community

Example

Connecting people to what is important in their lives

By providing friendly, reliable and low cost air travel

Embedded in the Product…

Embedded in Stories…

Herb Kelleher vs Kurt Herwald

Just Plane Smart

Signs that your Shared Value is working

Internal

• It’s easy for members of the brand team (and even others in the company) to recount things the brand would never do.

• Job applicants reference the shared value you represent as a reason they’re attracted to your company.

• Employees (and customers) come to you with new growth ideas because your brand’s applicability beyond your current category/industry position is clear.

• Visitors to your office space can pick up on clues to the value in employee personal space.

Consumers

• Consumer chatter (social media, press etc) debates whether your brand’s new product launches, communications, etc are in line with your brand values.

• The percentage of “attitudinal but not behavioral” loyalists declines

• The feedback you receive from people who like your brand increases but also feedback from people who are turned off by the brand increases, but these individuals are outside your target.

Market

• Your brand takes on meaning in the culture as an analog for a principle: “Well, I suppose that would be the Ritz way to resolve it.”

• At parties, people approach your ‘company staff” with stories of how your shared values in action

• There’s a surge in partners approaching you for partnerships or “pull”product placement because your brand’s meaning is clear and resonant.

Bentley Inspirator

“world’s largest

emotion data

repository.” It

includes 3.4

million faces

analyzed in 75

countries,

adding up to

more than 12

billion

“emotional

data points.”

At Volkswagen we engineer safe cars; What if we can engineer safer drivers

Turning Impulse into Good

Flight 139, January 19, 2011

Mr. and Mrs. Misner,

It’s great to have you both with us

today – Welcome! I hope you have a

great visit to New Orleans – we really

appreciate your business!

Sincerely,

Pat Fletcher

From selling shoes to delivering

happiness

I AM BLIND PLEASE HELP

Key Enablers of Customer Centricity

Customer Centricity

Clarity & Single Minded

Purpose

Recognizing Emotions

Leveraging Data &

Technology

Customer Outcomes vs

Functional Departments

Big Data

Everyone talks about it,

nobody really knows how to do it,

everyone thinks everyone else is doing it,

so everyone claims they are doing it.

What is the

top priority

for using Big

What are the

top challenges

with Big Data?

The evolution of consumer demand

Be There (visible presence + physical distribution)

Be Different (cheaper, better, different, faster)

Be Relevant (relevant and differentiated)

Care about what I care about and be ethical (advent of CSR)

Be Transparent and Authentic

•Be There

2008 Inflection Point

Financial Crisis

+ Ascendency of

the Social Era

Proprietary & Confidential

2008 Inflection Point

The Tipping Point of Social Media + Leap in Social Technologies

The evolution of consumer demand

Be There (physical distribution)

Be Different (cheaper, better, different, faster)

Be Relevant (relevant and differentiated)

Care about what I care about and be ethical (advent of CSR)

Be Transparent and Authentic

Be There

Inflection Point (2008) 2008

“Be There” It’s much more complicated these days!

What “be there” means to consumers today

Physically present

Relevant and Differentiated

Caring and Ethical

Authentic and Transparent

Always on, cross channel, bi-directional, emotionally relevant, real

time conversations everywhere I am

Oh yes, and treat me right or I’ll tell all my friends!

Multiple views of each customer

Web behavior social behavior geo-location etc.

data mart

third-party data

operational systems TRADITIONAL

email bounces, opens, clicks

social media IDs

promotion history

EXPLOSION OF DATA

EXPANDED

BIG DATA

What makes customer engagement

difficult today?

INBOUND OUTBOUND

transpromo

call center

POS store/

branch

mobile

message social

mobile

app/web

PROLIFERATION OF CHANNELS

Multiple interactions with each customer

Customer

But each customer

is only ONE person

Multiple views of each customer

Web behavior social behavior geo-location etc.

data mart

third-party data

operational systems TRADITIONAL

email bounces, opens, clicks

social media IDs

promotion history

EXPLOSION OF DATA

EXPANDED

BIG DATA

INBOUND OUTBOUND

transpromo

call center

POS store/

branch

mobile

message social

mobile

app/web

PROLIFERATION OF CHANNELS

Multiple interactions with each customer

Customer

But each customer

is only ONE person

How this is managed makes all the difference

What makes customer engagement

difficult today?

Example: A simple service airlines would like

to offer

• “We see you have reached

Dubai and your final

destination is Al Barsha. There

is a special shuttle service to

MoE from Dubai airport and

the next one leaves in 35

minutes from Exit 2A”

• (Or long layover - metro to

Dubai mall to see the Burj

Khalifa.)

• (Or short layover – “did you

know DXB has a spa? There

are two openings at the

moment.”)

Information Required • Flight Arrival • Knowledge of customer’s

home destination • Shuttle Service Schedule

• Destinations • Pick up times • Pick up locations

Where it sits

Airline

Loyalty

Program

Airline

Reservation

System

Shuttle Service

Provider

Airport

Control

System

Why This is Hard

Schedule

Spa Booking

System

Example (more complicated)

• You just settled into your seat

after take off. You’re a bit

sad because it’s your birthday

and you’re on the road.

Suddenly a message appears

on the screen in front of you

from your daughter. “Happy

Birthday Mommy! Please pick

up the phone so I can talk to

you!”

Information & Capability Required

• Flight Information • Seating information • Your birthdate • Your daughter’s contact details • Your daughter’s time zone • Automated, multichannel

messaging system

Inflight

Entertainment

Where it sits

Airline

Why This is Hard

Translate insights into effective campaigns

Develop “predictors of behaviour”

(Move from “what” to “why”)

Build a 360 “Complete View”

• Combine traditional

data, unstructured, Big Data –

all data

• Old, new and ever-changing

sources

• Clean, integrated, actionable

profiles

• Not just behavior, but motivation

• Robust and pragmatic analytical

methodologies and models

• Practical vs. Academic

The “Virtuous Circle” for Enhanced

Customer Engagement

• Create “moments of engagement”

• Personalized, dialogue-driven, in sync

with consumer and their cadence

• Outbound, inbound, multi-channel

Insight

Action

Reservation Data

Distribution Systems Data

Access Systems Data

Partnership data

Bring together all customer data into a 360 degree view

Enriching customer profile data Better knowledge leads to better engagement

Loyalty

The platform quickly and

easily brings disparate

data sources together in

a cost effective manner

Data you are collecting and using

Data you are not using

“Dark data”

Dark Data: Operational data that is not being used

• Some examples of data that is often left dark include

– Server log files that can give clues to website visitor behavior

– Customer call detail records that can indicate consumer sentiment

– Mobile geolocation data that can reveal traffic patterns to aid in

business planning

• Why is it disregarded? Traditionally seen in the context of value

for money – i.e., too expensive to keep in a data warehouse, mostly because of volume

• But in today’s world, this is no longer true!

“Information assets that

organizations collect, process

and store in the course of their

regular business activity, but

generally fail to use for other

purposes.”

Gartner

Connect Internal data with Social data

Internal Client data

Social Media Data

Reservation Data

Distribution Systems

Data (GDS)

Access Systems

Partnership data

Loyalty

A marketing program is

designed to link internal

data with social data

• The gaming achievements for the user.

• The activities listed on the user's profile.

• The photo albums this user has created.

• The user's outstanding requests from an app.

• The books listed on the user's profile.

• The places that the user has checked-into.

• The events this user is attending.

• The user's family relationships

• The user's wall.

• The user's friend lists.

• The user's incoming friend requests.

• The user's friends.

• Games the user has added to the Arts and

Entertainment section of their profile.

• The Groups that the user belongs to.

• The user's news feed.

• The Threads in this user's inbox.

• The interests listed on the user's profile.

• All the pages this user has liked.

• The user's posted links.

• The movies listed on the user's profile.

• The music listed on the user's profile.

• The mutual friends between two users.

• The user's notes.

• The notifications for the user.

• The messages in this user's outbox.

• The Facebook Credits orders the user placed with an

application.

• The permissions that user has granted the application.

• Photos the user (or friend) is tagged in.

• The user's profile picture.

• The user's pokes.

• The user's own posts.

• The user's questions.

• The current scores for the user in games.

• The user's status updates.

• Posts the user is tagged in.

• The television listed on the user's profile.

• The updates in this user's inbox.

• The videos this user has been tagged in.

Because,

given user

permission,

we can

obtain

profile data

about….

Proprietary & Confidential 79

Making use of Social Data Facebook

Connect Internal data with Social data

Enriched customer profile and behavior data

Internal Client data

Social Media Data

Reservation Data

Distribution Systems

Data (GDS)

Access Systems

Partnership data

Social Profile + Interests+ Events+ Behavior

(Internal & External)

Loyalty

A marketing program is

designed to link internal

data with social data

Comprehensive and rich

customer data is now

available for analysis and

activation

A robust,

predictive

picture of

repurchase

and loyalty

Automatic

activation

in real time

Analytics to lead to Personalization

Dark Data

•“We see that we temporarily lost your bag on your last trip with us. Guess what? We just found an empty seat in business class. Can we invite you to join us there?”

Social Media Data

•“It is always sad to miss a loved one’s special day. We see you are travelling on your wife’s birthday. We can cheer you up a little by giving you a free inflight call to your wife …”

Customer behavior

•“We see you’ve had a very hectic travel schedule this month. The least we can do for you is to give you a good night’s rest by upgrading your flight tonight …”

Service /Customer Experience Data

•“Welcome to Dubai. You made the journey a happy one for your co passengers by giving up your aisle seat to accommodate a mother and her child. We’d like to thank you for that gesture by giving you a free limo transfer from the airport to your home. Please refer this code to the Concierge counter ….”

Examples of Data Driven

Personalization

Acquiring Prospects efficiently

Converting leads to sales more effectively

Improved Customer Experience, better cross sell/upsell

Generating new revenue streams

by monetizing data

Journey to

Choose Journey to

Journey to

Application across the business spectrum

Meet your Customer

83 Confidential

35 years old

3 year old

daughter

Married

Accountant

at a large

Ice Cream

Company

Banks with

your bank

for 10 years

Working in

the same

company for

10 years

Finally! Exciting reward for all his hard

84 Confidential

Congratulations!

You are our new

Finance

Manager

The promotion means a lot to

him .. A major turning point in

his life

85 Confidential

Also, for the first time his

income is significantly higher

than his expenses

This sets in motion a series of events . . .

86 Confidential

Congratulations pour in on

social media from his

friends/family

One of his friends, tells him “this is a great time to

start doing something about your daughter’s future” ..

87 Confidential

This really gets his

attention

While he is on Facebook he wonders

if his bank has a Facebook page and can help him …

88 Confidential

Not very helpful. He gets a

generic “contact the bank

message”.

He feels that it is an

automated response

Copyright Sequentis Consulting 89 Confidential

Not very helpful again.

There is a lot of product

information but he

needs specific

help/advice on what is

appropriate for his

situation.

Also wonders why there

is no live chat?

What about the bank website, does that

give the information he wants

His journey continues, he calls the bank

call center

90 Confidential

Sorry sir. You need to

visit our branch for

wealth management

advice

For the first time he is now a little upset

with his bank, but decides to visit the branch later

91 Confidential

He takes his closest friends

to dinner that night at an

expensive restaurant (he

normally does not go there)

He narrates his story about the

bank and his friends suggest

that he should try out

another bank

The next day, as he drives to work he

notices a billboard advertisement

92 Confidential

He never really pays

attention to ads.

But this ad from a

competitor bank caught his

attention and he noted the

number to call.

Call 800 2323 Today

In his office, he gets an email from his

bank. Eagerly, he opens the email…

93 Confidential

Disappointed!

The bank has sent him a

mail offering a special

rate on a loan.

He deletes the mail.

He has a busy morning, finally as he is

heading out for lunch, there is a visitor to

see him at his office…

94 Confidential

Wow! He is excited. The bank has sent a

sales representative to see him.

Alas! Excitement is short-lived. This sales

rep is here because he is the sales person

for his company and came to check if he

will open an account with the bank!

He informs him that he has an account

with the bank for the past 10 years and

asks if he can help him with his daughter’s

education savings plan

“Sorry sir. You need to go to the branch to

meet the wealth advisor “ is the answer

While he is out for lunch, he decides to

stop by at his nearest bank branch…

95 Confidential

He repeats his requirement for the third

time now.

The staff incentive details for the month

had just come this morning. One of the

new products – a lump sum education

plan - was high on the incentive list

The customer turns it down saying he

needs a product where he can save in

small amounts over a long term.

A recurring deposit is suggested.

By now he is getting late to work and

also feels, based on his experience, that

he should check out the other banks

Just to recap this story ….

96 Confidential

Promotion

Announced

Sees a

Competitor

Direct Sales

person visits

office to

Company

Employee

Package

Visits the

Branch &

meets Wealth

Advisor

Personal

Facebook

Conversations

Calls Bank

Call Centre

Visits Bank

Website

Interaction on

Bank FB page

Dinner with

Friends

Receives an

email from

his bank with

a Special

offer on

After 6 interactions with the bank, a loyal customer is now

looking at other banks to meet his needs

1 2 3 5 4 6

We like happy stories and

happy endings, so let’s

rewrite this story…

Let us rewind the story to this point …

98 Confidential

Congratulations pour in on

social media from his

friends and family

One of his friends, tells him “this is a great time to

start doing something about your daughter’s future” ..

99 Confidential

This really gets his

attention

While he is on Facebook he wonders

if his bank has a Facebook page and can help him …

100 Confidential

He gets a quick response

asking him to check out an

interactive game and some

videos created by the bank to

educate customers on

education plans

He is also given the link to the

specific page on the bank

website that gives him the

relevant information

Having learnt a lot from the game & videos, he now

checks the website…

101 Confidential

The link takes him to the

relevant page

The banner on this page talks

about children’s education

The site asks him to enter

information on a set of

questions and then offers him

a range of education plan

options

He also has an option to

“Chat Live” with an agent

As he was browsing the bank website, he now gets an

SMS …

102 Confidential

“ Thank you for your interest

in our children’s education plans.

My name is Mr. Omar, I will be very

happy to meet you and help you in

deciding the right plan for your child.

My number is 800-2323. Please

suggest a date & time convenient to

you. I can meet you at the branch or

at your office.

By the way, since you work for Ice

Cream Co., you will also get special

rates on the education Plans”

Knowing a little bit about the

education plans and impressed with his

bank’s response, he decides to visit the

branch later

103 Confidential

He takes his closest

friends to dinner that

night at an expensive

restaurant (he normally

does not go there)

He narrates his story

about the bank and

suggests that his friends

should try out his bank as

The next day, he drives to work and on

the way he sees a display advertisement

104 Confidential

He never really pays

attention to ads.

But this ad from a

competitor bank caught his

attention and he reminds

himself to visit his bank

Call 800 2323 Today

He has a busy morning, finally as he was

heading out for lunch, there is a visitor to

see him at his office…

105 Confidential

There is a sales rep from his bank. But this

person is not the one who communicated

to him on the SMS.

This sales rep is the sales person for his

Company. The sales person knows all about his

education plan needs and came to remind him

that his bank colleague is awaiting his response.

He also wanted to discuss if he has any other

requirements.

Now that he was asked, he informed the bank rep

of his promotion and that he may want to move to

a bigger house and upgrade his car and wanted to

know if the bank had any special offers for him…

He calls and confirms his meeting with

the advisor and visits his nearest bank

branch…

106 Confidential

Congratulations on your Promotion! That is

how the meeting started and the advisor

had reviewed all the conversations and

customer’s data.

He was very impressed with the set of

personalized education plan options

presented to him. He asked the advisor a

few questions and before long was asking

“where should I sign?”

As he was about to leave, the advisor told

him “please bring along your daughter as

well when you come next time”

Just to recap this story ….

107 Confidential

After 4 interactions with the bank, a loyal customer of the bank is now

delighted and recommending other friends to his bank

Promotion

Announced

Sees a

Competitor

Direct Sales

person visits

office to

discuss any

other needs

Visits the

Branch &

meets Wealth

Advisor

Personal

Facebook

Conversations

Visits Bank

Website

receives

an SMS

Interaction on

Bank FB page

Dinner with

Friends

1 2 3 4

What is the difference between these two

stories ….

108 Confidential

Promotion

Announced

Sees a

Competitor

Direct Sales

person visits

office to

Company

Employee

Package

Visits the

Branch &

meets Wealth

Advisor

Personal

Facebook

Conversations

Calls Bank

Call Centre

Visits Bank

Website

Interaction on

Bank FB page

Dinner with

Friends

Receives an

email from

his bank with

a Special

offer on

1 2 3 5 4 6

Promotion

Announced

Sees a

Competitor

Direct Sales

person visits

office to

discuss any

other needs

Visits the

Branch &

meets Wealth

Advisor

Personal

Facebook

Conversations

Visits Bank

Website

Interaction on

Bank FB page

Dinner with

Friends

1 2 3 4

What is the difference between these two

stories …

109 Confidential

Removed engagement that is detrimental to the relationship

Knowledge of previous engagement aids the choice of next channel of engagement

Knowledge of previous engagements aids the preparation and content of the next engagement

The bank could do these because

it had the following capabilities…

110 Confidential

Organisation structure & resources aligned for customer centricity

Front end enabled to

receive integrated

Data from varied sources

integrated

Thank You

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