experience marketing

© PA Knowledge Limited 20141

PENTIA MORGENMØDE

Jesper Høi Jensen

December 2014


70 YEARS OF UNCONSTRAINED THINKING AND EXCEPTIONAL RESULTS

…AND WE ARE STILL AHEAD OF OUR TIME

2006

GULF

We helped source one of

the world’s first WIMAX

networks for Mena Telecom

EUROPE

We helped transform the

Republic of Georgia’s collapsed

electricity supply system

EUROPE

We boosted Nissan’s

production by 30% using

existing car-making facilities

2010

EUROPE

We helped deliver a new

biometric UK passport,

saving the taxpayer

£160 million

EUROPE

We helped Onzo develop

an innovative home ‘Smart

Energy Kit’

US

We developed new

‘fresh air’ technology that

protects against superbugs

EUROPE

We created a next-

generation heart

disease probe for

Thermocore Medical

NORDICS

We helped implement

a new air traffic

management system

for Naviair

2007

2008

EUROPE

We developed

test equipment

for the 4G mobile

networks

US

We helped the US

Navy define a cost

reduction strategy

to achieve savings

of $400 million

per submarine

1950s

EUROPE

We helped the

Bank of England

dramatically reduce

banknote forgery

EUROPE

We advised the European

Community on Japanese

trade and investment

EUROPE

We helped pioneer a

single-union agreement

for Nissan’s UK workforce

1980s

1990s

EUROPE

We established the UK’s

first competitive market

for electricity supply

US

We delivered a

baggage-handling

system for Denver

International Airport

US

We developed the

first breath-actuated

metred dose inhaler

ASIA PACIFIC

We planned Sydney’s hosting

of the highly acclaimed

2000 Olympic Games

US

We realised $125 million

on sale of medical venture

company Meridica

GLOBAL

We led Siemens VDO

Automotive’s global

relocation of six factories

EUROPE

We tripled sales with an

iconic bottle design for Evian

2000-05

EUROPE

We helped the

UNHCR transform

their IT department

to deliver greater

protection and shelter

for refugees

EUROPE

We launched an

online weather

community that

helped the UK Met

Office capture two

million readings in

just five weeks

2011

ASIA PACIFIC

We co-ordinated

completion of

the Sydney

Opera House

1960s

1970s

NORDICS

We developed the

first private digital

telephone exchange

EUROPE

We pioneered maintenance

of Shell’s first North Sea

oil platform

EUROPE

We created the video

disc’s forerunner

US

We computerised

30,000 miles of railroad

for Chessie Systems, Inc.

2012

US

We gave Hawaiian Electric a strategy

to reduce carbon emissions from their

generation business by 40%

EUROPE

We transformed Carnival UK’s

supply chain to deliver annual

savings of £2.5 million

EUROPE

We helped to protect troops’ lives

in Afghanistan with an innovative

explosive device detection system

US

We helped Pepco

secure US government

funding for their smart

grid projects

EUROPE

We developed the

world’s first pre-filled,

single use, disposable

injector

EUROPE

We helped JCDecaux

develop the UK’s first

real-time advertising

verification system

2009

EUROPE

We increased national

productivity at a time

of crisis for the UK

government

1943

US

We worked with Google

to launch a global real-time

music game

EUROPE

We supported the creation

of the PRA, helping transform

financial regulation in the UK

EUROPE

We developed and delivered

Ora, a revolutionary new

kitchen towel, from concept

to store within 12 months

2013

www.paconsulting.com/PA70

2014


MARKETING AND COMMUNICATION CONSTANT NEEDS TO ADAPT TO CHANGES

TO DELIVER BUSINESS RESULTS

Must be

Differentiators

Delighters

Today

Must be

Fulfilment

of needs

Delighters

Tomorrow

Features

becomes basic

Differentiators

Changes in the

mobile market means

that mobile optimized

websites or app’s are

basic features.

Personalized mails

becomes commodity

in digital marketing.

Develop new

experiences based on

insights.


AN EXCEPTIONAL CUSTOMER EXPERIENCE DRIVES STRONGER CUSTOMER

RELATIONSHIPS AND IMPROVED PROFIT

The customer experience is a pivotal part of building a

long-term relationship with the customer. This in turn is a

key driver of profitability as it increases the probability that

the customer will buy more.

The decision to buy is moved from the rational domain of

price and functionality to the emotional domain where price

usually plays a smaller role in the buying decision.

A strong customer experience is a differentiating factor

which can only be copied with great difficulty and cost.

More satisfied and loyal customers motivates and

energises the organisation. An exceptional customer

experience creates pride, team spirit and motivation in

most employees.

4

3

2

1

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

CXi leaders

43%

S&P 500

index

CXi

laggards

Customer Experience leaders outperform the

market (2007-2012)

6 year stock performance of Forrester’s Customer Experience

Index leaders vs. laggards vs. S&P 500


THE EXPERIENCE ECONOMIC IS THE NEXT EVOLUTIONARY STEP

Extract

Commodities

Make Goods

Deliver service

Stage experience

Customisation

Continuously follow the customer

Commoditisation

Competitors catching up

Differentiation

Undifferentiating

Relevant

Irrelevant

Customers

needs

Market position

PricingMarket price Premium

Source: “The Experience Economy”, James H. Gilmore & B. Joseph Pine II


NEXT WAVE OF MARKETING EXPERIENCE IS A PERSONALIZED AND EMOTIONAL

APPROCH TO CUSTOMER DIALOGUE

P

P

S

S

S

S

S

S

Building services to supplement products to increase cross sell

and customer retention (e.g. insurance, installation).

P/S

S

P

P

S

P

S

Products evolve into services – sometimes with

products as a part of or a supplement (e.g. alarm

service with sensors).

E

EE

P/S

S

P

P

S

P

S

Increased competition drives a need to

differentiate through customer experience –

often appearing sporadic and uncoordinated

(e.g. improving customer service, launching

loyalty programs).

E

P

P

SS

S P

The experience becomes the key value proposition. Products and services are

parts of the experience and/or as up-sale to it (e.g. sports-/concert events).

E

E

E E

E

E

P/S

S

P

P

S

P

S

Customers expects a uniform, integrated

and memorable experience across

touchpoints and product/services (e.g.

high-end hotels).


NEW PA SURVEY REVEALS THAT CUSTOMER EXPERIENCE IS CLOSER TO THE

TARGET POSITION WHERE IT’S DRIVEN BY THE CEO

Current position of company

Target position of company

When it comes to customer experience, there is a

significant gap between where Danish companies perceive

themselves to be today and where they want to be.

CX elements measured:

1. Giving employees the necessary prerequisites

and competences to deliver an exceptional CX

2. Applying and analyzing data

3. Designing and orchestrating exceptional CX

4. Delivering a CX that is consistent across

channels

5. Working with collaborators to create

exceptional CX

6. Differentiation CX across segments

7. Integrating a focus on exceptional CX in the

company culture.


COLLABORATION ACROSS DEPARTMENTS IS THE GREATEST BARRIER TO

DELIVER GREAT CUSTOMER EXPERIENCE

50% find it

difficult to set

clear

(quantitative)

measures for strong

customer

experiences

71% point to getting

the organisation to

collaborateacross departments

44% point to

establishing

customer centricity in

the back officefunctions

41% do not know

what the

customers

want

41% struggle to

use customer

data in a value-

creating way


HOW DO WE REDUCE THE GAP BETWEEN TODAYS AND TOMORROWS POSITION?

PREPARE THE ORGANISATION TO DELIVER GREAT EXPERIENCE

Prepare the organisation

Identifying moments of truth – what matters most to the customer - and

where personal interactions significantly can improve the experience.

Promote and nurture a customer centric culture.

Decentralise decision power - based on customer plan.

Improve responsiveness by creating a sense of urgency and a culture

of problem solving.

Build incentive structures that supports growing and maintaining long-

term customer relationships.

A

B

C

D

E


HOW DO WE REDUCE THE GAP BETWEEN TODAYS AND TOMORROWS POSITION?

START MAPPING THE CUSTOMER JOURNEY TO GAIN INSIGHT

Prepare the Customer Insight


THE RIGHT CUSTOMER EXPERIENCE COMES FROM AN INTELLIGENT

CONFIGURATION OF THE REQUIRED CAPABILITIES

Governance

&

Controls

Structure

&

Location

Culture

&

Leadership

Application

&

Technology

Information

People

&

Skills

Infrastructure

&

Facilities

Sourcing

&

Suppliers

Processes

Direction

Differentiation

Delivery


EXPERIENCED MARKETING IS BECOMING AN INTEGRATED PART OF THE

ENTERPRISE ECO SYSTEM

Sales Service MarketingProduct/service

DeliveryCustomer AnalyticsPartner Management

Idea to market Market to quote Quote to order Order to cashOrder to

delivery

Issue to

resolution

Installation to

service

Processes

Business domains

Information Applications & Technology

Touch points

Sourcing & SuppliersGovernance & ControlsCulture & Leadership

Infrastructure & Facilities

Structure & Location

Product

Management

CRM

People & Skills

Organising for

experience

Digital business

capabilities

Perceived

proximity

Industry

clustering

Customer-

centric mindset

Problem solving

mentality

Digital

mindset

Performance

culture

Agile & adaptive

organization

Customer data

Partner data

Transactional

data

Products

availability

Product

information

Social

intelligenceAnalytics skills

Networking and

storytelling skills

Partner mgmt

skills

Insight selling

skills

Digital

skills

Customer industry

expertise

Training & conf.

facilities

Distribution

centers

Production sites

IT architecture

Co-creation with

customers

Open networks

Marketing

agencies

Distribution

partners

E-commerce

portals

Centrally

controlled brand

Empowered

organisation

Aligned

incentives with

partners

Customer centric

KPIs

Financial

visibility

Web and mobile

applications

CRM system

Social media

Industry

applications

Supply chain

applications

ERP system


Jerry Fritz - Director of Management Institute

University of Wisconsin

“You'll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can't be copied.”

Ghost (signpost) – current chapter title...

PERSONALISERINGBegreber og principper

3 MYTER

MYTE #1

Jo mere personalisering,

jo bedre

MYTE #2

Personalisering = automatisering

MYTE #3

Vi skal vide hvem brugeren er

INDSATSOMRÅDER

Kommunikations-principper Indhold Værktøj+ +

Målgruppe

Personlig

Opgave

Omnirelevans

Personalisering er at tilpasse en løsning eller et budskab til den enkelte bruger på baggrund af data.

HVORFOR PERSONALISERING?

Pleasure of choice

vs.

Abundance of options

PERSONALISERINGS-STRATEGIER

Mikro- og makropersonalisering

Mikropersonalisering

Makropersonalisering

Eksempel på økosystem

Spotify

Spotify app

Spotify.com

Face-book

Triggers

Tillid

3 RÅD

Adskil indsatser i principper, indhold og værktøj

Start med grundløsningen

Sæt jeres data i spil

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