best practices in experimenting with existing channels - omni digital

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Charlene Li, Principal Analyst, Altimeter@charleneliSeptember 10, 2015

Best Practices in Experimenting with Emerging Channels

Strategy is What You Do – And Don’t Do

It’s About Relationships

Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 5September 10, 2015

Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them.

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Customer Journeys Are Not Connected to Digital Transformation

Is your organization undergoing a digital transformation?

Source: Altimeter Group Digital Transformation Study, 2014.

88%

12%

Yes

No

42%

25%

12%

12%3%

The need to do so hasn’t come up or

been made a priority

We have not officially researched the digital customer

journey but we have updated

digital touch points with new social and mobile technologies

and investments

We’ve talked about the need to do so but no one has taken the

lead yet

We are researching customer behavior now and waiting for results to inform our

digital transformation strategy

We have completely mapped out the customer journey

within the last year and have a clear understanding of new

digital touch-points

Which best describes your company’s efforts around the customer journey/experience?


Traditional Journeys• Personas

• Linear

• Optimization focus

• Functional

• Episodic designed

• Static

• Survey & heuristic based

Next Gen Experiences• Individuals

• Unpredictable, shared

• Strategic focus

• Emotional

• Continuously designed

• Dynamic, real-time

• Data-based

Creating Next Generation Customer Experiences


Four Best Practices to Create Next Gen Customer Experiences

1. Customer Obsession

2. Practice Relentless Pragmatism

3. Build Brand Trust

4. Networked Mindset

1. Customer Obsession

How much do you really understand your customer?Case study: T-Mobile• Frustrated wireless

customers fed up with carriers

• Willing to look beyond coverage and services

• Rising need for transparency, flexibility, and fairness

T-Mobile re-positioned as the “Un-carrier” creating customer experiences and employee engagement around the theme


How to be Customer Obsessed


E M P A T H Y !

Understand Customers’ Offsite Behavior

• What your most “loyal” customers do?

• Where do they go?

Source: Jumpshot


Don’t Wait for “Complete” 360 View of Customer to Make Decisions

2. Practice Relentlessly Pragmatism


What The Most Successful Brands Do Well


Rigorously Define Success and Failure


Experimenting with Snapchat

3. Build Brand Trust


Build Trust with Engagement

Source: Edelman Trust Barometer, 2015


Consumers Don’t Understand How Data Is Used

Case Study: John Lewis

Online shopping = 33% of tradeFocus on “Click & Collect”, which accounted for 49% of online sales in 2014

Brand promise drives strategy

4. Networked Mindset


Rigid Organizations Dynamic Organizations

Digital Will Require New Ways of Working


Great Employee Relationships Support Great Customer Relationships

45% of organizations said that developing a plan for employee advocacy is a top prioritySource: Altimeter report, “The 2015 State of Social Business”

Case Study: Telstra’s “BBQ” App• Employees download an

app to their phone• Can log service request

for friend or family member

• Escalate issues• Closes the loop with both

employee and customer• Also provides updates on

strategy, news updates, etc.

• Almost half of employees have downloaded the app

It’s About Relationships

For more information please contact:

Charlene LiPrincipal Analyst

+1 [email protected]@charleneli

www.altimetergroup.comwww.charleneli.com