How to keep customers long term customer-adaptive enterprise maturity research -10-13

What it takes to keep
customers coming back
Jeremy Cox
Jeremy.cox@ovum.com
@jeremycoxcrm
October 8th 2013

1

© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

Agenda




Answer the question



Pilot research findings – current maturity levels



2

What question should every organisation answer?

Recommendations

© Copyright Ovum. All rights reserved. Ovum is an Informa business.

What question should every
organisation answer?

3


Where will we be in 5 - 10 years time perhaps?
• 87% companies from1955
Fortune 500 list have
gone bankrupt.
Source: S.Denning Forbes Magazine

• Life expectancy of a firm
since then reduced from
75 to 15 years
Source: S.Denning Forbes Magazine

• CEO tenure has dropped
to 6.6 years from 8.1
years in 2003
Source: Booz & Co

4

Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013


The future of a commercial organisation is assured only
if it can maintain its relevance to its customers

5


We all have to answer the same question:

How can we remain persistently
relevant to our customers?

6


Today it’s even more challenging…..

7



What should we do?

8


Answer the question

9


What attributes do we need?
Visionary
leadership
Architected
Engaged

Collaborative

Connected

Insightful
Innovative

Positive
experience

10


Examples leading Organizations displaying customeradaptive attributes

+

+

=

+

+

=

+

=

+

60,000

All display the ability to continuously refresh the value they
deliver to customers and move at pace
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Pilot research findings

12


Organization & respondent segmentation
Organization Size US$ Millions

Sectors represented
11%

>500
30%

< 50
38%

>50 - 500
32%

< 50

>50 - 500

18%

71%

Public Sector

>500

Private Sector

Charities & Education

Respondent profiles
Senior Manager

Total number of
respondents 73

CIO, VP/IT Director

Other C-suite

CEO

0

13

5

10

15

20

25

30



The top 5% are doing well but the majority of
organisations are at risk
100
90

Breakthrough

80
70
60
50
40
30
20
10
0
Leadership

Workforce Collaboration
engagement

Sensing

Customer
Innovation Connected
experience management processes

Composite best = top performers (5%)
14

Enterprise
architecture

Average

Organizations are largely disconnected from their
customers, putting their futures at risk
Critical areas of weakness identified



Partially engaged workforce - 60%



Collaboration – Lack tools & encouragement



Weak sensing capabilities ‒ Fragmented
view



Fragmented/disjointed customer
experience ‒ could impact reputation and
retention



Innovation is haphazard ‒ No process



Poorly aligned or connected mission
critical processes ‒ Operational silos &
inefficient



15

Leadership ‒ Slow decision making

Lack an adaptive enterprise architecture ‒
No insight into how vision is to be delivered


Decision cycles are too slow
Leadership attributes
Customer Vision articulated
Use
continuous
planning

Provides
sense of
purpose

Positives:
Workforce
trusts
leadership

Clear values
guide
workforce
decision
making

Front line able to respond fast to customers

• Most have customer
visions
Negatives:
• Slow decision cycles
• Inability to redeploy
resources fast enough

See The Customer-Adaptive Future, and Agile and Lean Business Transformation, (February 2013)

16


Workforce engagement levels need attention
Workforce engagement
Engaged workforce

Personal
growth
encouraged

High
satisfaction

Positives:
• 60% engagement – could
be worse

Customer
1st dep’t 2nd

Empowered

Negatives:
• Silos
• Lack of contribution

Has right tools

• Impacts CX

See Supporting The Next Generation of Information Workers, IT007-000712 (August 2013)

17


More determined ESN adoption required
Collaboration

Enterprise-wide ESN

Ideas
encouraged

Customer
communities

Positives:
• Collaboration seen as
essential

Peer
recognition
fosters
collaboration

Knowledge
sharing

Readily identify expertise

Negatives:
• Lack of supporting tools
like ESN
• Missing out on customer
communities

See Checklist: Implementing Your Own Internal Social Network, IT018-001422 (July 2013)
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Majority of organizations are flying blind
Sensing capabilities

Monitor customer environment

Easy
access to
intelligence

Harvest
Insights from
social/web

Positives:
• Top 5% using analytics
extensively
Operational
BI

Predictive

Negatives:

• 95% are not
Aware of customer context

• Lack insight and
foresight = major risk

See Creating the Infrastructure for Big Data and Analytics, (July 2013)

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Organizations deliver fragmented experience
Customer experience (CX)

Mapped customer journeys

Analytics to
inform
interactions

Integrated
voice/chat/
self-service
and mobile

Positives:
• Top 5% offer seamless
CX

Negatives:
Closed-loop
VOC all
channels

CX metrics
vs. time
CSAT 90%+

• 95% provide fragmented
experience
• Retention and
reputations at risk

Positive NPS
See Redefining the Customer Experience (June 2012) Also see the October 2013 Ovum report on state-of-the-art VoC programs.

20


Organizations too reliant on luck
Innovation management

Collaborate with partners

Seen as
innovators

Workforce
contributes
to ideas

Positives:
• Only top 3% have CEO
led innovation
management process

Enterprisewide
Innovation
Mgt

New
innovations
contribute
high share
of revenue
Co-innovate with customers

Negatives:
• 97% take an ad hoc
approach

• Commoditisation &
eventual obsolescence

See Creating an Environment for Continuous Innovation (April 2013)

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Recommendations

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Integrated CRM provides a solid foundation for CX
which in turn provides the same for CAE

Point solution

Integrated
CRM

CX

CAE
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So consider where your organisation is today and
aim for the next stage

Transactional

Stage 2
integrated
with backoffice

Stage 1
Departmental
•

Single
department
focus e.g.
SFA,
campaigns,
service

Engaged

•

360 transactional
view of the
customer

Stage 3
all-channel
seamless and
relevant

24

CustomerAdaptive

•

Context aware
& personalized

•

Persistently
relevant

•

harvest external
data to generate
insights

•

Ability to adapt
at speed

•

Continuous
innovation

•

Customer centricity continuum

Stage 4

Multiple
integrated
applications


Then develop your roadmap to move forward towards
your customer-centric vision

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Recommendations from customer-adaptive maturity
research findings: 1
• Coordinate to
create a ‘nervous
system’
• Monitor inside
and outside
• Make analytics
accessible

• Vision – put customer at
the centre
• Adaptive planning
• Empower front line
decision making
• Orchestrate 8 attributes

• Deploy ESN
purposefully

• Foster adoption

• Monitor morale

• Encourage
expertise sharing
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• Involve workforce in
direction
• Identify and remove
inhibitors


Recommendations from customer-adaptive maturity
research findings: 2
• Create blueprint to
support vision

• C-level CX leader

• Ensure open to
future
technologies

• Embed enterprise wide
VOC & measurements

• Map value chain
to identify critical
processes

• Set agenda from top

• Assign process
owners
• Connect
27

• Map customer journey

• Encourage
experimentation
• Use innovation mgt
integrated with ESN
• Invest – set aside budget

You can draw on our analyst community for a deeper
exploration into areas of particular focus

28


''If you’re not
prepared for the
future today,
you're history
tomorrow''

Peter Hasler Chairman

THANK YOU
Jeremy.cox@ovum.com @jeremycoxcrm
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How to keep customers long term customer-adaptive enterprise maturity research -10-13

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How to keep customers long term customer-adaptive enterprise maturity research -10-13

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