customer worthy how complicated can digital click be chptr 5
TRANSCRIPT
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
1/19
0
Chapter 5
hw Cmplicated Can one Click fa Muse Be?
Aligning customer processes with company processes
In the previous chapters, we examined one customers series o contacts
across channels and media by stages in the consumer cycle. In this chapter,
we walk through a customer experience, digging deeper into the companys
contact management view, using the Matrix to connect the customers
journey to internal operations, systems, and department owners.
Again, we will start with the same lawn mower story rom the customers
perspective and add detail using the CxC Matrix building blocks. This Matrix
reduces the 15 stages o the consumer cycle to seven in order to make the
example easier to ollow.
Figure 5.1
CxC stage
Need Shop Buy Use
Awareness
Information
Selection
Negotiation
Contract
Logistics
Support
Customer
view
receive
email oer
search
research
standard
or deluxe
ree or
90 days
terms &
conditions
receive
product
product
query
Note: The CxC Matrix, which consists o 15 Customer Stages, is reduced
here to seven to make the example easier to ollow.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
2/19
:HowComplicatedCanOneClickoftheMouseBe?
Consumer cycle and CxC Matrix stages combined
The Customer View
CxC Matrix Stage 1 Awareness
Customer awareness or need new lawn mower generated by email.
By opening the email and clicking on the mower oer, the customer
moves rom the Awareness Stage to the Inormation Stage. Mar-
keting, advertising, and sales successully persuaded the customer to
gather inormation about ullling his need.
CxC Matrix Stage 2 Inormation
Customer opens promotional email, selects product, and is connected
to promotion-specic lawn mower web page. Customer reads inor-
mation, and clicks on links or more mower research. Additionally,
the customer enters the product name, model number, and the word
reviews into a Google search panel and begins reading review pages,
expert comments, and user comments. The customer also contacts
riends and neighbors about their lawn mower experiences.
CxC Matrix Stage 4 Selection
Customer renes mower needs and the eatures he wants based on
inormation, value considerations, and his own circumstances in
Matrix Stage 3, Identifcation (not shown). The customer then selects
his preerred mower type, brand, and a set o potential vendors. He
returns to the Acme Hardware Store website three more times in two
days and visits the manuacturers website our more times beoreconrming his selection.
CxC Matrix Stage 5 Negotiation
The customer clicks on the add to cart button on the website and
lls in his inormation. He experiments by adding and removing mower
add-on eatures and goes back and orth between model options. He
looks or ree shipping as he has seen rom other online vendors, and
he actors in assembly cost and time across each o his options. The
customer abandons the Acme Hardware Store online shopping cart
and heads to his local Acme Hardware Store with his email printed out
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
3/19
customerworthy
and his web order page in hand. He also prints out competing oers
rom other vendors.
CxC Matrix Stage 6 Contract
The customer is greeted by a store salesman who takes him to the lawn
mower section. The customer agrees to the price and the special oer
to deliver the mower to his house and exchange his current mower. He
pays by credit card at the register and receives a receipt that explains
the stores return policy. It also oers extended warranty protection
or purchases over $50.
CxC Matrix Stage 7 Logistics
The customer arranges or the mower to be delivered between 3:00
and 5:00 p.m. and agrees to have his current mower near his driveway
or removal.
CxC Matrix Stage 12 Support
The customer mows his lawn or two weeks and notices a unny
sound when the mower is shutting o. He both calls support and goes
online to research his problem.
The CxC Matrix exposes some o the underpinnings o the companys
success in selling the mower by exposing each contact rom the companys
perspective.
Figure 5.2 Think Like a Customer (TLC) Stage
CxC stage Need Shop Buy Use
Awareness
Information
Selection
Negotiation
Contract
Logistics
Support
Customer
view
receiveemail oer
searchresearch
standardor deluxe
ree or90 days
terms &conditions
receiveproduct
productquery
Depart-
ment
akting &coc
aktingwb
PPC agncy
podctanagnt
patns
podctanagnt
coc
opations
distibtion
podctanagnt
sals
financ
sals
lgal
financ
opations
distibtion
shipping
patn
csto ca
opations
taining
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
4/19
:HowComplicatedCanOneClickoftheMouseBe?
The Department View
What appears to the customer as simply clicking on an email, selecting a
couple o products, and hitting a buy button is a complex series o busi-ness rules, business arrangements, inter-company hand-os, and inorma-
tion exchanges connecting a minimum o 8 departments and as many as
14 systems.
Figure 5.3 Department Responsibility And Accountability Metrics & KPIs
1.Awarene
ss
2.Information
3.Identifica
tion
4.Selection
5.Negotiation
6.Contract
7.Logistics
8.Delivery
9.Acceptan
ce
10.$Collec
tion
11.Use
12.Care/Su
pport
13.Repair
14.Disposa
l
15.Commu
nity
Geography
Digital
Location
Third party
One-on-one
Community
akting
advtising pootion
conications
financ
podctanagnt
tail opations
-sllanagnt
sals
csto
sppot opations
sals
podctanagnt
distibtion
opations
sals
opations
dlivy
tail
distibtion
biz
conications
sals
thid patis
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
5/19
customerworthy
This example shows a bit o the complexity that occurs on the company
side o this simple experience. The Department View oten stirs discussions
among department heads, line managers, and ront-line personnel who
relate vivid incidents o when the simple process went wrong.
Ater the nger-pointing and customer stories subside, individuals
quickly begin to identiy improvements, innovations, and alternative product
and service congurations that can be deployed at little or no expense.
Employees are requently surprised by how the Matrix connects depart-
ments and individuals across unctions. The customer perspective connects
the downstream and upstream impacts o each departments activities and
decisions, expanding the employees understanding o their roles in the
customer process, while educating them about the rest o the companys
operations.
This horizontal and departmental customer experience view is highly
summarized and easy to create or your own business. I recommend walk-
ing through this exercise with representatives rom these departments to
provoke customer-centric discussions.
Department-to-Department Hand-ofs
To ensure customer success, companies must capture and convey customer,
oer, service, and message component inormation rom department to
department. The Department View exposes the departments and individu-
als responsible or each element o each contact; or creating messages;
or delivering the messages; and all other activities related to ensuring the
contacts success. As contacts and messages become more tailored to spe-
cic customers, refecting the individual customers preerences and context,
the probability or errors grows, as does the cost o recovery. The probability
o errors also increases as products, services, delivery, payments, and ulll-
ment grow more fexible.
Orchestrating the best outcome rom stage-to-stage and department-to-
department is critical, not only to satisy customer needs, but also to realize
the optimum yield per customer, per contact, and per message slot.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
6/19
:HowComplicatedCanOneClickoftheMouseBe?
Figure 5.4 Departments-Customer Contacts
The Systems and Processes View
Cant Find My OrderOur Systems are Down View
The CxC Matrix Systems View (Figure 5.5) provides a summarized diagram
depicting the resources and capabilities required to meet each customers
expectations. Even this summarized customer story lists 18 dierent systems
managed by a mix o 17 departments and partners.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
7/19
customerworthy
This level o System View explains the inter-company operations required
to meet a customers needs. The view should be easily understandable by
everyone in the company without requiring them to have inormation tech-
nology, sotware, domain, or vendor knowledge.
The Systems View can be expanded to a much greater level o detail to
expose each specic system and the systems unctionality. System contact
expansions can expose individual transactions, processes, elds, eld values,
business rules, and treatments. This level o inormation is not necessary
across every system or every contact, but should be used when evaluating
alternative system solutions, upgrading or replacing a system, outsourcing a
system or unction, or critiquing the companys capabilities and perormance
or a set o contacts.
Figure 5.5 Customer Process
CxC stage Need Shop Buy Use
Aw
areness
Info
rmation
Se
lection
Neg
otiation
Co
ntract
Lo
gistics
Su
pport
Customer
view
receiveemail oer
searchresearch
standardor deluxe
ree or90 days
terms &conditions
receiveproduct
productquery
Depart-ment
akting &coc
aktingwb
PPC agncy
podctanagnt
patns
podctanagnt
coc
opations
distibtion
podctanagnt
sals
financ
sals
lgal
financ
opations
distibtion
shipping
patn
csto ca
opations
taining
System capaignanagnt
databas
ail
contntanagnt
wbsitanagnt
socialntwoking
coc erP
invntoy
anagnt
contactanagnt
bsinsspocssanagnt
ls ngin
contactanagnt
coc
odanagnt
invntoyanagnt
vndoanagnt
odanagnt
ail
cstolationshipanagnt
intlligntot
socanagnt
VOIP
The graphic below (Figure 5.6) provides a conceptual view o one com-
panys customer architecture and includes all o the systems responsibleor delivering customer contacts. This high level customer architecture view
is oten used by department managers, inormation technology managers,
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
8/19
:HowComplicatedCanOneClickoftheMouseBe?
and vendors to initiate discussions about inter-operability, system and data
integration, system and unction outsourcing and new technologies, and
vendor sotware, service, and outsourcing possibilities.
Figure 5.6 Customer Architecture View
Inusing each contact with corporate objectives
This is where technology departments, operations, and business managers
unite their resources, talents, and innovations to execute each contact and
transaction with purpose and with specic and measurable revenue objec-
tives.
The previous CxC Matrix levels depict the state o a companys customer
experience as is. But the CxC Matrix challenges businesses to manage and
grow the value in each consumer stage by setting objectives, identiying therequirements or meeting specied objectives, and quantiying and measur-
ing the value o each stage and contact.
1.Awareness
2.Information
3.Identification
4.Selection
5.Negotiation
6.Contract
7.Logistics
8.Delivery
9.Acceptance
10.$Collection
11.Use
12.Care/Support
13.Repair
14.Disposal
15.Community
dict ail wb
otbondtlakting
ail
bann ads
potals
wb copon
CCm
Vru
dict TV
agggatos
CCm wb
chat
svic ato
collaboatos
flfillnt wb
logistics
collction lock box
billing
CCm
CCm logistics
tnpocssing
flfillnt
wb
CCm
patns
wb
contacts
sagtacking
wb
dict ail CCm
Vru
dict TV
3G
psonalization
ail
wb
psonalization dict sals
CCm
loyalty
continity
atoatd svic
ail
svic atoation
flfillnt fo shaing
wb
CCm
chat
VOLP
flfillnt
logistics ail
svic alts
CCm
CCm
ail slf hlp
knowldgbas
chat
dict ail
continity nwsltt
wb
CCm
Crm
potal
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
9/19
customerworthy
Figure 5.7 Business Objectives
CxC stage Need Shop Buy Use
Awarenes
s
Informatio
n
Selection
Negotiatio
n
Contract
Logistics
Support
Customer
view
receiveemail oer
searchresearch
standardor deluxe
ree or90 days
terms &conditions
receiveproduct
productquery
Depart-ment
akting &coc
aktingwb
ppc agncy
podct
anagnt patns
podctanagnt
coc
opations
distibtion
podctanagnt
sals
financ
sals
lgal
financ
opations
distibtion
shipping
patn
csto ca
opations
taining
System capaignanagnt
databasail
contntanagnt
wbsit
anagnt
socialntwoking
coc
p
invntoy
anagnt
contactanagnt
bsinsspocss
anagnt
ls ngin
contactanagnt
coc
odanagnt
invntoyanagnt
vndoanagnt
odanagnt
ail
cstolationshipanagnt
intlligntot
socanagnt
VOIP
Objective a. poot
sto visitb. by
idiatly
p-sll
pootband, svic
p-sll
poot stovisit
p-sll
coss-sll svic
agnt
xtnd
waanty loyalty
nollnt
fficincy
coss-sll fal
fficincy
coss-sll fal
loyaltynollnt
Require-
ment
offanagnt
ail list
contnt
psonalizd
wb
in-stovisibility
localization
wb cooki
sit sach
ail cooki
off visibility
cstopofil
od/offanagntsyst
cdit sco
csto id
dynaicodanagnt
pocss
taining
nollnt
accss
socvisibility
taining
incntivpoga
falcapt
intlligntcall oting
taining
incntivs
off popts
Value pootion
cost potntialval
sachanagntcost
contnt cost
affiliat cost
affiliat/patn gainsha
pootioncost
pojctdcoss-sllvn
affiliatvn
15% incasclos sccss
add-onvn
fs
vn
nty costs
affiliat fs
dlivy cost
svic fs
fal bons
cost pint
off cost
incntiv cost
pojctdvn
By exposing the systems, departments, and parties accountable or each
contact, executives can clearly mandate objectives to the specic managers
responsible or accomplishing them at each contact.
Business objectives may start out simply as reduce cost or introduce
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
10/19
:HowComplicatedCanOneClickoftheMouseBe?
service. These objectives may be dynamically modied by business, environ-
ment, and market circumstances.
Measuring perormance contact-by-contact
customer contact fow depicts company success
The Matrix delivers a quick view o customer fow and the success o each
customer stage and contact channel. We do this in order to identiy where
we have specic contact opportunities to grow revenue and reduce cost.
In this way, the entire company can gather around and ask simple ques-
tions like, How many customers in Stage One (Awareness) move to StageTwo (Inormation)? Nothing is simpler.
Figure 5.8 Customer Conversion Rate
The percentages show the survivor rate rom stage to stage as described
abovethey are at the bottom to show the overall survivor rate versus the
survivor rate in each cell.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
11/19
0 customerworthy
The potential value o each contact is explicitly measured by the number o
customers who pass through the contact and the downstream revenue, mar-
gin, and cost associated with each customer who experienced that contact.
Harness the power o your customer
Core to the CxC Matrix is monetizing each contact. Beyond simply track-
ing the sequence o contacts, the CxC Matrix calculates each contacts net
nancial impact. This is called monetization.
Each contact is monetized by looking at its cost and breaking it into
both cost and revenue components. Remember:
Each contact bears a cost.
Each contact has potential revenue, which is related to the
customers potential value.
The contact cost includes the cost o the channel/medium, the resources
required or crating and delivering the message, and all o the xed and
variable costs associated with contact handling.
You should assign costs to each contact in order to understand and
quantiy the impact o changes in customer fow, changes in transactional
or per item costs, and alternative resource and processes options.
A CxC Matrix completed with costs-per-contact lled in clearly shows thecost advantage o Internet and sel-service channels, as well as other lower-
cost contact congurations. However, when customer fow is overlaid onto
the cost Matrix, you can see when customers gravitate to lower-cost chan-
nels and when they preer higher-cost options. The Matrix provides a realistic
view that usually shows that rst time customers initially conduct business
through one combination o contacts, while repeat customers adopt another
combination o contacts across the stages o their consumer cycle.
The CxC Cost Matrix provides a set o tools to depict hypothetical contact
sequence scenarios using estimated customer fow and contact counts. It
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
12/19
:HowComplicatedCanOneClickoftheMouseBe?
also provides a means or testing and observing service and contact con-
guration alternatives.
Figure 5.9 Estimated Costs for Contacts
Cost per purchased name $ 0.10 $150.00
In-person sales call $40.00 $500.00
Group presentation $350.00 $3,000.00
Sel-service interaction $0.01 $0.40
At-home sales call $25.00 $150.00
Outbound telemarketing $8.00 $35.00
Fax/mail $3.00 $5.00
Inside sales call $20.00 $100.00
Inbound telephone support $4.00 $75.00
Direct mail $0.25 $12.00
Email $0.03 $0.60
Inbound reerral $20.00 $500.00
Trade show $100.00 $6,000.00
Internal website $0.15 $12.00
Third-party web $0.05 $200.00
Partner sale $1.00 $100,000.00
The Matrix provides a means to quantiy each contacts contribution
to a customers propensity to purchase, as well as projections or probable
expense and contacts post-sale.
The CxC Matrix requires that every customer contact be inventoried,
monetized, analyzed, and prioritized.
The Simplest Measure
One o the reasons that the CxC Matrix is so powerul is that it stems
rom one key measure: did the customer buy something? In the case o the
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
13/19
customerworthy
Matrix, this means that success is measured by getting customers to CxC
Matrix Stage Six: Contract. Every other contact has an explicit cost and only
potential revenue.
Stage Six, Contract, is the pivotal moment by which we can measure the
success o all prior stages. For this reason, we measure the success o each
stage rom one through fve by the percentage o customers who pass rom
stage to stage.
The Company Viewmonetization and the mower
Examining the mower program rom the companys perspective uncovers an
enormous number o contacts and the successul and unsuccessul contact
attempts made by the company and the targeted customers.
Employees who are not in marketing or sales can better understand
their customers mindset when they become aware o all o the messages
the company directs at customers to generate sales.
The mower campaign targeted 20,000 customers, o which 180 or 0.9
percent actually bought a targeted item (mower, hedge clippers, or barbecue
grill). An additional 230 targeted customers bought something during the
promotion period, but their purchases were not directly attributable to this
campaign.
For the 180 customers who made the target purchase, there were 4,000
customers who did not receive the email; 6,300 received the email but did
not open it. Another 8,900 customers opened the email but did not click on
the highlighted section that would have taken them to the company website.
Eight hundred customers clicked the link, and 270 o them spent more than
three minutes on the site viewing individual product pages. Thirty o the
website visitors bought the targeted product directly rom the website. Four
customers went through the entire purchasing process on the website up tothe point in the checkout process when the system requested their credit
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
14/19
:HowComplicatedCanOneClickoftheMouseBe?
card number. Then they abandoned the purchase. Thirty-two customers went
directly to Google rom the web page and searched or the eatured item.
Figure 5.10 Surviving Customers/Leftover Potential
Awareness
Stage 1
800
270
Identiication
Stage 3
270
34
Contract
Stage 6
34
30
Collect $
Stage 9
30
530
236
4
30
What oer/
channel next?
What oer/
channel next?
What oer/
channel next?
What oer/
channel next?
$79,000
potential
What %?
$35,400
potential
What %?
$600
potential
What %?
$600
potential
What %?
Potential assumes $150 per customer; What %? calculates next ofer success rate.
The Matrix provides a means to quantiy each contacts contribution to a
customers propensity to purchase, as well as projections or probable ex-
pense and contacts post-sale.
The rear view window How did we get here?
The Matrix also correlates service, delivery, repair, and support costs and
activities with earlier customer contacts. So, in addition to calculating the
cost o each incident and the cumulative cost o customer acquisition
Matrix stages one through sixthe Matrix provides insight into which chan-
nels and contacts drive up post-sales expenses. The more detailed Matrix
views and models provide all o the components o the customer experience,
delivering even more inormation about potential causes and eects o each
prior customer contact.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
15/19
customerworthy
Figure 5.11 Customer Flow, SCP
1. Awareness
2. Inormation
3. Identiication
4. Selection
5. Negotiation
6. Contract
7. Logistics
8. Delivery
9. Acceptance
10. $ Collection
11. Use
12. Care/Support
13. Repair
14. Dispose
15. Community
Geography
1,4
00
1,0
00
900
600
250
145
145
138
130
145
130
40
21
9
130
Digital
400
145
95
7
0
62
58
50
47
47
50
45
12
4
4
80
Location
300
250
180
3
5
10
4
4
2
2
4
4
0
0
1
28
Thirdparty
150
62
49
4
4
40
28
28
20
19
28
19
7
2
1
41
One-on-one
800
650
420
350
60
0
11
21
21
27
390
580
210
41
3,4
00
Community
3,0
50
2,1
17
1644
1,0
99
422
235
238
228
219
254
588
638
237
56
3,6
79
Totalcustomers
perstage
6,1
00
933
473
545
677
187
-3
10
9
-35
-334
-51
402
181
C
ustomer
fow
30.5
9%
22.3
4%
33.15%
61.6
0%
44.3
1%
-1.2
8%
4.2
0%
3.9
5%
-15.9
8%
-131.50%
-8.6
7%
62.9
1%
76.3
7%
SCP$
$156,6
00
$48,6
00
$95
,000
$77,4
00
$25,4
00
$1,6
00
$4,0
00
$1,8
00
-$5,8
00
$5,80
0
$27,8
00
$6,4
00
$2,4
00
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
16/19
:HowComplicatedCanOneClickoftheMouseBe?
In the more detailed case on the prior page (Figure 5.10), the company
estimates that each customer is worth $200 in prots. This number is used
to quickly observe the opportunity available rom stage to stage: SCP (Stage
Channel Potential) = the potential additional revenue available per CxC Matrix
stage. SCP actors customer value times the customer's propensity to buy
based on similar customers perormance.
Note: Total Customers counts the identiable customers excluding
anonymous shoppers/visitors and de-duplicating customers appear-
ing in multiple channels within the same customer stage.
These numbers represent a subset o customers that entered the CxC
Matrix on the same day then ollows the group or 126 days, the company's
calculated customer lietime. All values are based on individual company
benchmarks.
The opportunity can be urther drilled down to channel, medium, system,
oer, and so orth.
This simple, customer-count-populated Matrix (Figure 5.11) shows therate at which customers move rom stage to stage, and it represents the
companys success in closing sales rom the customers in stages one through
ve. It also shows the customers who ail to move to a subsequent stage,
while also quantiying the total oreited value lost at each stage.
While no company converts 100 percent o its customers rom stage to
stage, this Matrix view quickly monetizes the potential value resident in each
cellstage and channel combinationand provides an estimate o the total
amount o prot to be gained by creating incremental improvements at each
customer stage and contact. The detailed contact view shows the potential
prot resident in each cell, which managers can use to make investment
decisions regarding the tactics best suited to grow perormance. The same
Matrix view then provides ongoing monitoring o tactical success.
Monetization is a primary benet o the CxC Matrix because it links
specic business decisions, that is, which messages to present and
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
17/19
customerworthy
what their content should be, to long-term customer value.
The monetization of contactsthe core concept of the CxC Matrixis
implemented through the monetization of slots.
Companies generally assess the cost o an employees completion o a
task such as the per-item cost o billing, ordering, inventory, delivery,
shel space, and so orth. Some companies go so ar as to calculate
expenses associated with assessing customer tness or worthiness
through customer verications, credit checks, demographics and seg-
mentations, and customer le assessments, but ew try to assess a
customers uture value by estimating the amount o revenue thecustomer will generate over a lietime.
The Matrix highlights where your customer ceases to have contacts,
providing a date stamp and all o the earlier contact activities. The
stages where most customers are lost should be examined or correc-
tive action and treatments that grow revenue. Using customer lietime
value as a metric, you can calculate the benets o improving indi-
vidual Matrix cell perormance by estimating the increase in customers
who move through to the contract stage.
Recommended CxC Matrix monetization applications
Strategy
Value calculations can help make major investment decisions such as
whether to expand plant capacity, launch a new product line, or change
service levels. Managers construct a scenario or each option and compare
the expected values. Unlike scenarios built using conventional techniques,
scenarios based on the CxC Matrix ensure that all implications o a given
choice are considered. For example, a model or adding a new product linewould include the expected change in customer service volume. This helps
to avoid unanticipated results that can reduce or even reverse the benets
o a supercially attractive option.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
18/19
:HowComplicatedCanOneClickoftheMouseBe?
Revenue Enhancement
Every customer contact is an opportunity to increase customer value. By
assigning an explicit value to the contact, monetization encourages moreecient use o contacts that may be executed with little thought or ignored
altogether. For example, many rms never think to include advertisements
in packages they ship to customers. Others throw in a copy o their catalog
but dont measure the resulting sales. Only a handul o companies are
thorough enough to measure the value o sales rom their own catalog
and compare it with revenue they would generate i a third party paid to
insert its materials instead. A comprehensive inventory o customer contactsuncovers more opportunities than most businesses realize, rom Google ad
placement on a website, to messages embedded in call-on-hold scripts, to
cross-sell oers made at the close o a customer service inquiry to simply
asking your customers whether they know the name o someone else that
could benet rom your products and services.
Operations
Because monetization calculates the change in long-term value resulting
rom each contact, it gives operational managers a way to measure their
groups contribution to the entire organization. This avoids the departmental
myopia that can lead to decisions that are good or one area but harmul to
the larger organization. For example, a purchasing organization might nd
it can save money by using a lower quality supplier, even ater allowing or
direct impacts such as increased service costs, higher returns, and larger
warranty expenses. But a comprehensive customer value analysis would
include impacts on other departments, such as lower revenues rom loss o
repeat business, ewer sales o other company products, and ewer reerrals
by enthusiastic customers. This might result in a dierent decision that is
ultimately better or the company as a whole.
Forecasting
Exposing the impact o each customer contact creates a company-wide
network o risks and opportunity sensors that enable execution nimbleness.
-
8/2/2019 Customer Worthy How Complicated Can Digital Click Be Chptr 5
19/19
customerworthy
The nancial measures underlying monetization are based on projections o
non-nancial measures such as advertising impressions, sales calls, contact
center call volumes, website visits, opened emails, metered product and
service usage, and purchase quantities. These can be used to build budgets
and orecasts. Because the budgets are based on projections or specic
inputs, nancial variances can also be traced to specic sources.
Improved Predictive Model Performance
Traditional orecasts are oten based on statistical models that predict results
without describing the underlying business activities that cause them. This
makes it much harder to analyze the causes o any deviations. Similarly,
because the CxC Matrix projects customer activities over time, any revised
projections automatically include the uture impact o past variances. Thus,
a shortall in sales this quarter will automatically result in lower projections
or service calls in the uture, making it easier or companies to understand
the true implications o their current results.