maximize how you individualize: because the journey and outcome matter
DESCRIPTION
According to research from the Corporate Executive Board, 57% of the buying process is being completed before the first interaction with a sales person. In recent years, a fundamental sea change has been occurring between buyers and sellers, with the former now ceasing control of the buying process. This paradigm shift has been digitally powered with todays buyers only one touch away from connecting with content or peers that can help guide them on their purchasing journey. This presentation will explore the challenges that not only lay ahead for todays marketers, but also explore some of the ways in which innovative brands are adapting to this 'New Reality’.TRANSCRIPT
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Maximize How You Individualize Because the Journey and Outcome Matter
The CMO Council Roundtable India, 09-10 October 2014 Nicholas Kontopoulos Global Head of Strategic Marketing Programs, SAP Customer Engagement Solutions
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2 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Get in touch with me @nicholask71
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© 2011 SAP AG. All rights reserved. 3 Public
OP + NT = EOP
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The Good Old Days
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Mobility Rich Content Social Always On
WE LIVE IN A WORLD OF DIGITAL IMMERSION
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This is the dawn of Generation C. Where "C" represents a connected society based on interests and behavior. Gen C is not an age group -- ITS A WAY OF LIFE.
- Brian Solis, author and digital analyst
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COMPANIES ARE STRUGGLING TO BREAKTHROUGH AND
ENGAGE THEIR CUSTOMERS
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- Brian Solis, author and digital analyst
DIGITAL DARWINISM: When technology and society evolve faster than the ability for companies to adapt.
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OP + NT = EOP
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DUDE, IT’S NOT ALL ABOUT THE TECHNOLOGY…
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THERE IS NO SINGLE SILVER BULLET SOLUTION
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21ST CENTURY CUSTOMERS REQUIRE A 21st CENTURY MANAGEMENT RESPONSE
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HISTORY LESSON ON MANAGEMENT 1.0
1890:
90% of the then developed world worked in agriculture & the average manufacturing firm employed 4 employees.
1915: Ford was making a ½ million cars and US Steel was the first company in history to urnover $1b a year.
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1920: By this time most of the tools for modern management have been created:
Pay for Performance
Since then the way we manage has hardly changed.
Capital Budgeting
Task Design
Divisionalization Brand Management
HISTORY LESSON ON MANAGEMENT 1.0
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19TH CENTURY ENGAGEMENT
Sales & Marketing Funnel
Awareness
Interest
Desire
Action
Created in 1898 by Elmo Lewis
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Awareness
Interest
This is no longer our customer’s journey.
Desire
Action
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17 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
REFER FRIENDS
POST REVIEW
JOIN GROUPS
TRACK ORDER
RECEIVE PACKAGE
MISSING ITEM
SETUP PHONE
BILLING ISSUE
MAKE PAYMENT
PHONE DAMAGE
TERMINATE SERVICE
NETWORK ISSUE
CHANGE ADDRESS
RECEIVE OFFER
DISCOVER NEED
RESEARCH
RECEIVE OFFER
TRACK ORDER
RESTART SERVICE
SHOP & BUY
SHOP & BUY
RECEIVE PACKAGE
MISSING ITEM
POST REVIEW
SETUP PHONE
BILLING ISSUE
MAKE PAYMENT
PHONE DAMAGE
TERMINATE SERVICE
JOIN GROUPS
NETWORK ISSUE
CHANGE ADDRESS
RESTART SERVICE
RECEIVE OFFER
REFER FRIENDS
WEB
DIGITAL ADS
WORD OF MOUTH
SOCIAL
TV
RETAIL STORE
WEB SHOP
REVIEWS
SEARCH KW/ADS
CONTACT CENTER
WEB SHOP
SOCIAL
RETAIL STORE
WEB SHOP
CONTACT CENTER
CONTACT CENTER
RETAIL STORE
CONTACT CENTER
CONTACT CENTER SOCIAL
WORD OF MOUTH
SOCIAL
SUPPORT PORTAL
?
SUPPORT PORTAL
?
BRANDED COMMUNITY
?
AWARENESS
INTEREST
Desire
ACTION
USE
ACTION
ADVOCACY
ADVOCACY
Desire
USE
Each customer chooses their own adventure.
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18 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Every journey is unique. Every journey matters.
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OP + NT = EOP
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20 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Why does it matter?
Customers are In Control The Rules are Changing The Customer Journey is Complex
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© 2014 SAP SE or an SAP affiliate company. All rights reserved. 21 Confidential
Measurable Business Impact
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Better Informed
59% of customers are willing to try a new brand to get better customer service.
Digitally Connected
79% of customers spend at least 50% of total shopping time researching products online.
Socially Networked
53% of customers abandoned an in-store purchase due to negative online sentiment.
Empowered Customers
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They are individuals with specific needs.
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2.4 BILLION brand-related conversions happen online every day. SOURCE – KELLER FAY GROUP
57% of the buying process is completed before a first interaction with sales. SOURCE – CUSTOMER EXECUTIVE BOARD
86% of customers are willing to pay more for a better customer experience SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER
The Rules are Changing
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© 2014 SAP SE or an SAP affiliate company. All rights reserved. 25 Confidential
OP + NT = EOP
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- W L Bateman
If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got.
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HOW DO YOU ENGAGE THE INDIVIDUAL?
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© 2014 SAP SE or an SAP affiliate company. All rights reserved. 28 Confidential
WE NEED TO RETHINK OUR MARKETING & SALES STRATEGIES.
LET’S START WITH BINNING THE CONCEPT OF…
A GO-TO-CUSTOMER STRATEGY
a go-to-market strategy
and replace it with
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It’s time to reimagine Customer Engagement
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But what is Customer Engagement?
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End-to-End Business Process Execution
Harmonized Digital and Physical Experiences
Growth in Profitable Customers
Real-time Customer Insight
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OP + NT = EOP
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An Indian CEM market maturity overview.
of tech. decesion markers in India cited addressing Customer Experience &
driving customer satisfaction as a top
business priority in 2014
of the organisations surveyed indicated that CX
is a strategic priority for 2014, with about ¾
claiming its their number 1 priority
CX is a top strategic priority in India
87% 93%
(Source: Forrester)
want to differntiate themselves from the
leadersin in their industry through CX
88%
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An Indian CEM market maturity overview.
Of Indian enterprises claim to have a centralized CX
team in place.
Of these CX teams actually report to the CEO
But CX maturity scores low
71% 24%
(Source: Forrester)
With reporting into customer service
departments.
22%
Ambiguity in the reporting structure leads to a lack of business responsibility and ownership.
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Use this title slide only with an image The measurement of the CX framework is fragmented
Of those surveyed regular compare metrics across the enterprise 46%
CX-related communications do not run deep.
Sharing inputs and maintaining regular communications with all entities in the eco-system is critical
Poor CX communication across the enterprise
(Source: Forrester)
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WHERE DO YOU START?
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YOU NEED A STRATEGY
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Need to follow key CX best Practices
Gauge your CX maturity: need to first ascertain the current maturity level of their CX practice and identify areas for improvement
Define a CX strategy and focus on implementation: Companies must take another look at their activities and investments with the goal of enhancing the customer experience.
Evaluate the impact of CX initiatives on business goals: must systematically evaluate the influence of their CX efforts on driving desired business outcomes.
in a structured manner
(Source: Forrester)
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SUCCESS FACTORS: STRATEGY, PROCESS, TECHNOLOGY, AND PEOPLE
Strategy Business goals and
objectives
People Organizational
structure, skills, and incentives
Process Procedures and business rules
Technology Apps and
infrastructure
Source: Forrester “Navigate the Future of CRM” (February 2012)
Develop process flows to achieve the selected strategy.
Condition the organization to adopt new processes.
Get target users to successfully utilize
the applications
Deploy new technology that supports required
process flows.
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1st Generation
CUSTOMER RECORD
Departmental / Channel Silos
SERVICE
SALES
MARKETING
COMMERCE
2nd Generation
‘Multi’-channel CRM Suites
CU
STOM
ER R
ECO
RD
SALES & MARKETING
SERVICE
COMMERCE
3rd Generation
Omni-channel Engagement Platform
CONTEXTUAL MARKETING & SERVICE
SALES & COMMERCE
CUSTOMER INTELLIGENCE
PHYSICAL & DIGITAL EXPERIENCE
Evolution from CRM to Engagement
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PROCESS & ORDER COORDINATION
INSIGHT CREATION EXPERIENCE MANAGEMENT
Engagement requires orchestration.
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AVOID BECOMING ONE OF THESE STATISTICS BY RETHINKING YOUR CRM STRATEGY
25% of firms reported that poorly defined business requirements had a negative impact on projects.
48% surveyed admitted they suffered technical/integration difficulties.
31% of firms reported that poor business process design accounted for project failures.
21% of businesses stated the need to customize CRM.
Source: ComputerWeekly.com – Forrester; Rethink Your CRM Strategy
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© 2014 SAP SE or an SAP affiliate company. All rights reserved. 46 Confidential
OP + NT = EOP
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Show me the Money
Show me the money!
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CUSTOMER EXPERIENCE LEADERS OUT PERFORM THE LAGGARDS
Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance.
SOURCE: FORRESTER RESEARCH 2012
+22% - 46%
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of marketers surveyed in APJ have calculated the
impact of Customer Expereicne on their
business
say their revenue has increaded based on
Customer Experience optimization.
of marketers reported that improvements in CX had
resulted in their enterprise increacing revenue between
5% and 10%
23% 42% 16%
(Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)
CUSTOMER EXPERIENCE MATTERS Because Revenue in on the line
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CASE STUDY
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AT&T AND T-MOBILE SLUG IT OUT OVER A CUSTOMER ON TWITTER
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Krissy Espindola Director, Knowledge Management & Social Customer Support
Looking at our results with social engagement, the ROI is tremendous. We are getting a 94% resolution rate as compared to our usual 11-12%. We are seeing tremendous ROI servicing our customers on social using these tools.
“
”
Objective Take on larger rivals by providing a delightful social media experience
Solution SAP Cloud for Social Engagement
Benefits Meet increasing demand for social media interaction without scaling team. Reduced churn. More cost-effective customer acquisition with marketing messages based on social buzz.
AT A GLANCE
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© 2011 SAP AG. All rights reserved. 53 Public
LISTEN SAP Social Media Analytics by NetBase
UNDERSTAND Fan Appz, an SAP Cloud Partner
ENGAGE SAP Cloud for Social Engagement
THE FULL SOCIAL WEB
PERSON TO PERSON
YOUR TARGET AUDIENCE
USING SOCIAL DATA TO LISTEN, UNDERSTAND, AND ENGAGE
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OMNI CHANNEL BUILDING A CONNECTED ENGAGEMENT PLATFORM
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YOUR CUSTOMERS DON’T CLOCK OFF AT 5PM
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TODAY’S CUSTOMERS WANT INSTANT GRATIFICATION
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57 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
KEY TAKEAWAYS
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Engage at the point of awareness
Stop telling, start listening predict & influence behavior. Respond quickly.
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Guide customers through their journey
Understand their needs & desires. Earn advisor status. Help them.
Guide customers through their journey
Understand their needs & desires. Earn advisor status. Help them.
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© 2011 SAP AG. All rights reserved. 60
Empower your customers
Make their life easier with all the information they need – anywhere, anytime – so they can better engage with your company.
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Create loyal brand advocates
Make every conversation count. Create amazing experiences. Deliver relevant & timely offers.
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Experience Management
Commerce Marketing Service Sales
MDM for Customer Engagement & Commerce (product, customer, order)
Infrastructure, Platform, Integration
WEB MOBILE IN STORE/ BRANCH
CONTACT CENTER
DIGITAL GOODS
MARKETPLACE INTERNET OF THINGS
SOCIAL SMS/ NOTIFICATNS
SEARCH KW/ADS
DIGITAL ADS EMAIL PRINT AGENT TOOLS
SAP Customer Engagement & Commerce
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You’ve got to start with the CUSTOMER EXPERIENCE and work back toward the technology.
- Steve Jobs
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64 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Make it simple to engage customers like never before.
Customer Engagement Solutions for Marketing, Sales, Commerce, Service, and Social.
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© 2011 SAP AG. All rights reserved. 65 Public
OP + NT = EOP
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© 2011 SAP AG. All rights reserved. 66 Public
?
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Old Process + New Technology =
Expensive Old Process
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www.custedge.com
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