customer experience transformation: 5 research findings and 12 action items
TRANSCRIPT
Customer Experience Transforma3on: 5 Research Findings and
12 Ac3on Items
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Panelists
Debbie Hauss Editor-in-Chief
Retail TouchPoints
MODERATOR
Rick Ludolph Consultant – CGS
Founder and President
Productive Solutions LLC
Ernan Roman President
Ernan Roman Direct Marketing Corp. (ERDM)
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Customer Experience Transformation:
5 Important Research Findings and
12 Action Items
Ernan Roman President
Ernan Roman Direct Marketing Corp. 12/9/13
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Ernan Roman President Ernan Roman Direct Marketing Corp. (ERDM) Recognized as a marketing thought leader. Inducted into the Marketing Hall of Fame for creating three transformational methodologies: Voice of Customer (VoC) Relationship Research, Opt-in Marketing and Integrated Direct Marketing. Named by Crain’s BtoB magazine as one of the “100 most influential people in Business Marketing”. ERDM specializes in conducting Voice of Customer Relationship Research to identify customer experience strategies that generate significant increases in revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft and Norton AntiVirus. Ernan’s latest book on marketing best practices is titled, “Voice of the Customer Marketing”. He writes the widely read, Huffington Post published blog, “Ernan’s Insights on Marketing Best Practices”. Authored the landmark books “Opt-in Marketing” and “Integrated Direct Marketing”.
Ernan Roman President,
Ernan Roman Direct Marketing Corp.
(ERDM) [email protected] www.erdm.com
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Agenda
� Provide 5 strategies for transforming your retail customer experience across the multichannel mix.
� Insights are based on new findings from VoC Research conducted for thought leaders such as IBM, QVC, NBC Universal, MassMutual and Norton AntiVirus.
� 12 Action Items to transform your retail multichannel customer experience.
Voice of Customer (VoC) Relationship Research Findings
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Learnings from 10,000+ hours of VoC Interviews:
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Customer Experience Requirement #1
Understand how Consumers define “Customer Experiences”.
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How Consumers Define “Customer xperiences”*
1. Improve the customer experience across every point of contact with your organiza3on.
2. Applies to all elements of the media mix and all departments in your organiza3on.
3. High quality experiences must be maintained throughout the rela5onship “not just when you are selling or renewing”.
*Defini'on is based on 10,000 + hours of VoC research conducted by Ernan Roman Direct Marke'ng, 5-‐26-‐13
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How Consumers Define “Customer Experiences”*
5. Preferences must drive high quality personaliza5on of communica5ons and experiences. Privacy of preference informa3on is essen3al.
4. Customer experiences must be driven by my individual preferences regarding: message, 3ming, frequency, and media mix.
*Defini'on is based on 10,000 + hours of VoC research conducted by Ernan Roman Direct Marke'ng, 5-‐26-‐13
Customer Experience Requirement #2
Satisfaction has become a given. Engagement is now the critical competitive differentiator consumers are searching for.
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Per VoC Research Findings:
Across the last 12 months, a consistent trend: Consumers expect companies to use
their preferences to deliver increasingly personalized offers,
communications, and experiences.
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Satisfaction is a Given… Engagement is What Counts:
“When we analyze the US hotel category, we found less than 1 social advocacy men5on per 100 stays. With some hotels repor3ng guest sa3sfac3on scores of 80% or more, there’s clearly a large social advocacy gap: the vast majority of people sa3sfied with their experience aren’t talking about it online.”
1to1 Media, Social@Ogilvy research, “How to Build a Global Passion Brand”, 8-‐29-‐13
Customer Experience Requirement #3
Opportunity to completely rethink how you engage with customers; Reciprocity of Value Equation.
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Powerful VoC Finding:
Cited so frequently and clearly that we
call this: Reciprocity of
Value Equation
Voiced by B2B and B2C
customers and prospects
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Reciprocity of Value Equa3on:
Recognition by consumers that to receive or access increasingly relevant information, they must provide information regarding their preferences. Applies to B2B and B2C.
If they trust the brand and receive a useful value proposition, consumers will opt-in to sharing increasingly detailed preference information in exchange for the marketer’s promise to deliver relevant information and offers.
This reframes data privacy concerns! Reciprocity seen as a valuable exchange of information which improves the customer experience. This information will constantly change, grow, and be enriched, through ongoing interactions with consumers.
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Reciprocity of Value Equa3on:
As a result of these preference-based interactions, consumers are more willing to respond to communications and offers.
This customer-driven information exchange results in uniquely accurate databases which consistently drive 25% to 50% increases in revenue.
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Double-digit Results from Microsoft’s VoC-driven Customer Engagement Programs:
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MassMutual’s Smart View
Webisode Email Pilot
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• Mock talk show with a cast of 3 discussing personal financial issues
• More humorous than serious
• Provided actionable takeaways
• Season 1: 9 episodes over 18 weeks
• Season 2: Launched September 2013
Double-digit Results from MassMutual’s VoC-driven Customer Engagement Programs:
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By opting-in, participants receive proactive communication when
new episodes are ready.
Results: Opt-in vs. Control Group
94% Higher open
rate
1,062% Higher video
views
Zero Unsubscribes
100% Deliverability
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Double-digit Results from MassMutual’s VoC-driven Customer Engagement Programs:
Customer Experience Requirement #4
Differentiate your company by providing truly personalized experiences, communications, and offers.
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True Personalization is Critical:
Per VoC findings, customers and prospects view personalization as
the next step in a company’s commitment to service excellence.
Personalization is viewed as a service and benefit, not just a sales tool.
They also look to personalized follow-up emails as value-added triggers to go online and
evaluate relevant products.
Online shoppers view
personalization as a critical
requirement for engagement.
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“Transaction-based” is Inadequate: Consumers are very clear in defining personalization
as much more than “those old-fashioned” transaction-based communications.
Representative VoC research quotes:
“I want more than just buying history-based
emails”.
“With today’s technology, I expect the experiences and
emails to reflect my preferences”.
Customer Experience Requirement #5
Deliver on the expectations of improved customer experiences across every channel and point of contact with your organization.
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Multichannel Engagement:
Today’s shopper is multi-dimensional; multi-channel and
multi-purpose.
Many report using multiple media, often at the same time.
"I take pride in being a smart shopper. I might see something on TV, or hear an ad on the radio.
I’ll text some of my fellow FrugalMom$ friends to check it out. Then I’ll browse the website. If the item interests me, I’ll put it in
my cart. When I’m finished browsing, I’ll print out the cart. Then, I call Customer Service to have them answer
my questions, and place the order."
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QVC Priority; Deliver Competitively Differentiating Multichannel Customer Experiences:
Do Multiple Channels Enhance or Cannibalize Sales? Best Customers Engage on All Screens
Web Only
Phone Only
Mobile + Phone or Web
Phone, Web
Phone, Web
& Mobile
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Sephora Delivers High Quality Multichannel Customer Experiences:
Sephora revamped website and mobile apps to deliver personalized, and integrated in-store and online experiences. Online searches and purchases are saved to a customer’s profile if they are a member of Sephora’s loyalty program, Beauty Insider.
“It’s an opt-in service, because Sephora recognizes that not all consumers want to be tracked. Currently, 20 Sephora stores will have iPads from which store associates
will be able to pull customer data to help them with purchases…”
“Customers can search across 25 criteria including age group, SPF, skin type and more. We have all the expertise of Sephora’s staff built into a web interface.”
Bridget Dolan, VP Interactive Media. DM News 4/19/12
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Personalization Email
• 2,500+ versions of personalized emails on a daily basis • Key drivers: shopping behavior,
self stated profiling, and collabora3ve filtering
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Website
The store with the highest affinity sits at the top
Sales within this sec3on are based on what the member has shopped or
favored in the past
All other stores are ranked according relevance based on shopping behavior
Collabora3ve filtering is also used to suggest
specific sales
Personalization
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Personaliza3on drives engagement by increasing order conversion rates and decreasing unsubscribe rates
Long-‐term A/B test for email personalizaOon
Personalization
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12 Actions for Retail Multichannel Success Be humble. Acknowledge what you don’t know about how your customers define engagement. Listen to your customers. Understand how customers define the Reciprocity of Value Equation with your company. Create opt-in preference databases to drive true personalization of communications and offers. Achieve frictionless, high-value, engagement across every medium in the multichannel mix.
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12 Actions for Retail Multichannel Success
Customers engage with your messages across multiple media. Ensure message and brand consistency across all your media.
Communications should reflect the “personalities” of the individual media used by customers to engage with your brand.
Each medium should reinforce the other, i.e., Retail reinforcing Social, Mobile reinforcing Web, etc.
Be where your customers are, i.e., push mobile during commuting hours, holidays, etc.
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12 Actions for Retail Multichannel Success
Select channels that serve the customer: texting an offer is intrusive. Using it as a reminder for something they want is a value.
Avoid turf and silos; ideally one team should manage all customer touch points. Make customer listening a part of every functional area, not just Marketing. Deliver high quality customer service in every channel. Marketing has to take responsibility!
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Additional Information for You: � PowerPoint Presentation
� 14 Step Checklist For Breakthrough Multichannel Marketing
� 7 Marketing Mistakes You Need to Avoid
� Case Studies
� Blog; Ernan’s Insights on Marketing Best Practices
� To receive this information, send your request to [email protected]
Leveraging Technology To Drive Omnichannel Success
Rick Ludolph Founder & President
• Today’s shoppers expect more from their retail experience
• Loyalty is now earned through an experience across all channels rather than a single one
• The retail experience has expanded to include stores, websites, call centers, marketplaces, and social networks
• Consumers expect a seamless all-channel experience
• Retailers need to be more connected, more empowered, and more proactive than ever before
• Shift from supply/push approach to demand/pull approach
• Connecting with customers o Individual, personal & relevant dialog
• Merchandise planning & execution o Optimizing a plan for each channel
• Supply chain & order fulfillment o Increasing supply chain and inventory management complexity
• Operations & performance management o Real-time, actionable information
• Empowering employees o Advanced POS tools & customer service skillset
• Content & data management o Single view of data across all channels & touchpoints
• Engage customers across all channels/devices • Leverage customer data and trends to offer
what they want, where and when they want it • Create new opportunities for customer
interaction through online/store integration • Maintain a history of customer interactions • Ensure consistent, convenient customer responses • Improve service and increase customer satisfaction
Supporting Technologies/Services: Customer Relationship Management (CRM), Contact/Call Center, Training
• Compelling, on-trend, and smartly-priced merchandise can define success or failure
• Plan relevant/profitable assortments for each channel based on customer demand
• Integrate sales history and POS data into merchandise planning and development
• Synchronized view of demand across channels • Roll up individual plans to a single, omnichannel plan
Supporting Technologies/Services: Merchandise Planning, Product Lifecycle Management (PLM),
Retail Enterprise Resource Planning (ERP)
• Accept, fulfill and track standard and special orders with a 360-degree business view
• Pull inventory from any channel or location • Check inventory and manage reservations • Seamlessly replenish across any channel • Manage purchasing, requisition, and
replenishment • Production order and automated shipment management
Supporting Technologies/Services:
Supply Chain Management (SCM), Warehouse Management System (WMS), Retail Enterprise Resource Planning (ERP)
• Create orders without leaving the customer’s side with advanced service capabilities
• Transaction processing, loyalty capture, customer detail capture, and more at POS
• Centralized POS terminal management • Consistent store/ERP data model and business rules
facilitate accurate, timely data • Configurable, flexible inventory and financial updates • Manage store, regional, and global staff
Supporting Technologies/Services: Retail Enterprise Resource Planning (ERP), HR, POS
• Bringing together product information from multiple channels/sources in POS
• Clienteling to cross/up sell and improve customer service
• Advanced POS solutions enhance customer service and reduce training time
• Instructor-led training, e-learning, and blended training programs
Supporting Technologies/Services:
POS, Retail Enterprise Resource Planning (ERP), Training Services
• Synchronized view across all channels • Integrated online storefront • Consistent content across all channels • Robust catalog management • Single view of data across the enterprise • Real-time analytics and performance reporting • Customer history drives personal and relevant content
Supporting Technologies/Services:
POS, Retail Enterprise Resource Planning (ERP), Training Services
• Consistent customer interaction and care • Integrated online storefront and content • Integrated assortment and category
planning/management across channels • Visibility and control across stores, ecommerce
sites, mobile, social commerce, and more • Centralized store (POS) and e-commerce management • End-to-end solution with real-time analytics
• Rethink Current Business Models o Tactical approach is not sufficient
• Modern, unified technology platform o Microsoft Dynamics AX
• Experienced solutions and services partner o Computer Generated Solutions (CGS)
• Integrated business solutions o Microsoft Dynamics AX for Retail o Microsoft Dynamics AX POS o CGS BlueCherry (Merchandise Planning, PLM, SCM, WMS) o CGS BPO/Contact Center o CGS Training Services o CGS Technology & Infrastructure Services
Leveraging Technology To Drive Omnichannel Success
Rick Ludolph [email protected]
www.productivesol.com
© 2013 Computer Generated SoluOons, Inc. All rights reserved. ConfidenOal and proprietary to CGS. Page 54
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Q & A // Panelists
Ernan Roman President
Ernan Roman Direct Marketing Corp. (ERDM)
Rick Ludolph Consultant – CGS
Founder and President
Productive Solutions LLC
Debbie Hauss Editor-in-Chief
Retail TouchPoints
MODERATOR
#RetailCCS
Xbox One Giveaway
Enter to win an Xbox One by attending at least two sessions from this week’s webinar series!
*Visit the contest rules page for more information.
#CCSeries13
Thank You For Joining Us
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The ABC's Of Delivering A Superior Customer Experience Tomorrow, 12 PM ET / 9 AM PT
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