understanding the customer experience ecosystem to succeed in the age of the customer

© 2015 Denodo

Craig LeClaire VP, Principal Analyst

Megan BurnsVP, Principal Analyst

Cory Munchbach Analyst

Holger Kisker, Ph.D.VP and Research Director

Session 1CIO’s Must Enable Business Agility via Modern Data Management in the Age of the Customer

Session 2 Understanding the Customer Experience Ecosystem to Succeed in the Age of the Customer

Session 3 Build a Contextual Marketing Engine and Fuel it with Data

Session 4 Business Agility Must Be Based on a New Flexible and Agile Data Approach

Data Virtualization for Business Intelligence andBusiness Agility in the Age of the Customer

Four sessions providing insights and best practices for the Age of the Customer

WEBINAR SERIES featuring FORRESTER RESEARCH

© 2015 Denodo

Data Virtualization for Business Intelligence and Business Agility in the Age of the Customer

Suresh Chandrasekaran

Senior VP, Denodo

© 2015 Denodo

Understanding the Customer Experience Ecosystem to Succeed in the Age of the Customer

Megan Burns

Vice President,

Principal Analyst

SESSION 2

© 2014 Forrester Research, Inc. Reproduction Prohibited 4

Making Leaders Successful

Every Day


Understanding the Customer

Experience Ecosystem to Succeed

in the Age of the Customer

Megan Burns, Vice President and Principal Analyst

Forrester Research Inc.


Agenda

› Why is customer experience important?

› What type of an experience improves customer loyalty?

› What do companies need to do to design, implement, and manage customer experiences?


Agenda





Customer Experience is…

How customers perceive

their interactions with a

company


CX drives three types of loyalty


A 20-year business

cycle in which the most

successful enterprises

will reinvent themselves

to systematically

understand and serve

increasingly powerful

customers.

The Age of the Customer


The Age of the Customer Power Flip


Firms are actively trying to improve CX


Base: 112 large North American brands scored in Forrester’s Customer Experience Index, 2007

Source: North American Technographics Customer Experience Online Survey, Q3 2007 (US)

Customer Experience Index Scores, 2007

12%

23%

40%

25%

Very Poor0 to 54

Poor55 to 64

Okay65 to 74

Good75 to 84

85+Excellent


Base: 112 large North American brands scored in Forrester’s Customer Experience Index, 2007

Source: North American Technographics Customer Experience Online Survey, Q3 2007 (US)

Customer Experience Index Scores, 2014

1%

10%

42%

37%

11%

Very Poor0 to 54

Poor55 to 64

Okay65 to 74

Good75 to 84

85+Excellent


Improving CX quality boosts top line growth

Wireless service providers $1.6 billion

Airlines $1.4 billion

Credit card providers $825 million

Hotels $729 million

Retailers $572 million

Health insurance plans $494 million

Insurance providers $328 million

Car rental providers $320 million

Banks $161 million

TV service providers $138 million

Consumer electronics manufacturers $102 million

Investment firms $85 million

Internet service providers $55 million

Total annual impact


Higher CXi scores boosted business metrics

AT&T U-verse • Revenue up by nearly 28% year over year

• More than 900,000 subscribers added

Citibank • Double-digit drop in customer attrition

• Increase in the average number of products

per household

Cablevision • Lowest levels of voluntary attrition in years

• Double digit declines in call volume

• 26% fewer repair visits to customer homes


Agenda





Three core dimensions of CX quality

Ease

Emotion

Customers get value from

the experience.

Customers get that value

without difficulty.

Customers feel good

about the experience.

Effectiveness


Loyalty dynamics vary by industry

Effectiveness

Ease

Emotion Effectiveness

Ease

Emotion


Emotion dominates in 11 of 17 industries

Airline

Automotive

Retail

Banking

Government

Car Rental

Insurance

Credit Cards

Internet Service

Investment Firms

Parcel Shipping


“People will forget what you said.

They’ll forget what you did.

But they will never forget how you made them feel.”


© Copyright phillip andrew carl taylor and licensed for reuse under this Creative Commons Licence

Strengthen

Erode

http://www.geograph.org.uk/profile/39890

http://creativecommons.org/licenses/by-sa/2.0/


What drives customer

experience and

loyalty?


Universal drivers of CX and loyalty

1. Make customers feel valued

2. Resolve customer problems or issues quickly

3. Talk to customers in plain language


Agenda





discipline


The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way.

Customer Experience Maturity


Consistently deliver and improve that experience.

Define the right experience.

The Six Disciplines of CX Maturity

StrategyCustomer

UnderstandingDesign

Measurement Governance Culture


Mature customer experience companies

› Value qualitative and quantitative insights


Customer

UnderstandingMeasurement

Call transcripts, emails,

social media posts, etc.

Customer interviews &

field observations

Employee input

Operations & process

data, metrics

Behavioral analytics e.g.

web, call center, mobile

Financial data

Goal: Understand who customers are and what they

want from their interactions with the company

Goal: Quantify CX quality and it’s relationship to

business health to guide management decisions.

Inherently qualitative Inherently quantitative

Structured questionsSurvey responses

VoC

Programs


Image: Wikipedia


February 2014 “You Are Here: Location Analytics And The Rebirth Of Customer Experience”

Location Data Drives Real-Time Customer Understanding And Modeling


Photo: Jacom Stephens




› Treat customer understanding as an ongoing

activity, not a project


Released

in 2007Released

in 2010


June 2014 “Business Agility Starts With Your People”

The Age Of The Customer Ushers In New, Digitally Based Events




› Treat customer understanding as an ongoing

activity, not a project

› Democratize data across the customer

experience ecosystem


Image: Wikimedia


The web of relations among all aspects of a company — including its customers, employees, partners, and operating environment — that determine the quality of the customer experience.

Customer Experience Ecosystem

© 2014 Forrester Research, Inc. Reproduction Prohibited 43© 2014 Forrester Research, Inc. Reproduction Prohibited

May 2014 “Want A Healthy Customer Experience Ecosystem? Free Your Workers”

Your Employees Need Three Freedoms To Successfully Support Your Customers


November 2013 “The CIO Mandate: Engaging Customers With Business Technology”

Systems Of Engagement Provide Your Business Boundary


Summary

› Customer experience is critical to loyalty

› Leaders are continually raising the bar

› Getting CX right can mean millions in revenue

› Success hinges on how well you make customers feel

valued, solve their issues quickly, and talk to them in

language they can understand

› Need a constant stream of quantitative and qualitative

data to maintain an accurate customer understanding

› Everyone in the ecosystem needs to know customers

equally well regardless of how far removed they seem


Thank you

Megan Burns

+1 617.613.6294

[email protected]

© 2015 Denodo

Age of Customer – Power shift

CX drives loyalty, sustained competitive advantage

Market dimensions show biggest gaps in age of customer

Need for Modern Customer Information Platform

Organization & Process Dimensions

Forrester Take Aways Denodo Enablers

Fast data access; Information-as-a-service; Agile integration

Organize canonical business entities used across dimensions

Single View of Customer; Data distribution across channels

Structured & unstructured; Internal & external; Real-time; Self-Service; Less replicated; Virtual

Unified data abstraction layer democratizes access to single source of truth across and beyond organization boundaries

Customer Experience (CX) – How Denodo drives it

© 2015 Denodo

Cory Munchbach Analyst

Session 3 Build a Contextual Marketing Engine and Fuel it with Data

Thank you!

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Data Virtualization for Business Intelligence and Business Agility in the Age of the Customer

Four sessions providing insights and best practices for the Age of the Customer

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