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Big-Data-The-Case-for-Customer-Experience
Big-Data-The-Case-for-Customer-Experience
Big-Data-The-Case-for-Customer-Experience
Big-Data-The-Case-for-Customer-Experience
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Big-Data-The-Case-for-Customer-Experience
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Big-Data-The-Case-for-Customer-Experience

  1. EXeCUtiVe SUMMaRY Big Data is back on the corporate agenda. I say ‘back’, it never went away for the CIO, it’s just moving with the times, bumped along by changes in operating systems, user technologies and digital transformation. Big Data 1.0 was Data Warehousing, which came to the fore in the 1990s, when the need was to extract, transform and load (ETL) data from one-to-many disparate systems. Many of these back-office, infrastructure systems were proprietary legacy systems and, with Microsoft starting to proliferate IT operations and the desktop, so the need to consolidate corporate data became a critical business need. Data Warehousing was the response for the need to parse large amounts of data, normalised, so employees had access to connected intelligence, using Microsoft Excel, OLAP tools such as Business Objects and data or report mining software, like Datawatch Monarch. All in pursuit of greater, actionable, decision support to aid business results. Data Warehousing broke down data demarcation, from operationally siloed systems to deliver single layers (or cubes) of data for deeper analysis, regardless of its pro- venance and source. As data got bigger, so Data Marts logically segmented datasets to meet line-of-business needs and scalability. Job done! Fast forward and Data Warehousing has morphed into Big Data, today’s response to SaaS, the Internet of Things (IoT), multi-channel data collection and the need to push information-rich interfaces to anything from desktop PCs, tablets and mobile devices. BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE It is Big Data for good reason. In 2013 IBM reported over 2.5 exabytes of data were created every day; by 2014 this was 2.3 zettabytes. Data is being offered up through digital portals and interactions more than ever before, so achieving true support for Big Data is huge. According to a study entitled “How Organisations can Unlock Value and Insight from the Information They Hold¹”, Pricewater- houseCoopers (PwC) state that 43% of companies surveyed “obtain little tangible benefit from their information” while 23% “derive no benefit whatsoever”. Such statements are indicative of the chasm that exists between the collection of corporate date and the presentation of monetised business insights. To understand why Big Data struggles to get corporate tenure, Gartner research director Svetlana Sicular² recently opined, “To succeed, you must develop a viable strategy to deliver business value from a big data initiative. Then map out and acquire or develop the missing and specialised skills that are needed. Once strategy and skill priorities are addressed, then you can move on to big data analytics”. This document aims to substantiate a justification for Big Data, when customer retention and growth is the business value that is derived. That value can be used to deliver a positive ROI calculation when pursuing a Customer Experience (CX)-backed corporate initiative. ¹ PwC Report published Autumn 2015, commissioned by Iron Mountain ² POV the 2015 Gartner Business Intelligence, Analytics and Information Management Summit
  2. The State of Big Data The concerning aspect of Big Data is not how much data is being collected, its vast and increasing, but the fact there is a motherlode of data never mined or analysed because organisations fail to invest and commit to technologies, beyond storage, that truly leverage this data for business change and customer-centricity. Yet the same challenges that existed for Data Warehousing remain for Big Data, decision support and intelligence should contribute to operational efficiencies, revenue and growth. Forbes³ recently stated that in Europe less than a quarter of enterprises have a clearly defined strategy for Big Data (in North America this drops to under 20%), although 76% of all global organisations surveyed at least have a plan to increase or maintain investments in big data over the next 2-3 years. Significantly for the development of CX in Europe over 30% of respondents said Big Data was necessary in order to implement and/or integrate new technologies and methods. Investment in Big Data will increase as organisations seek to manage massive volumes of disparate data and introduce new technologies to analyse additional data capture in areas such as location (e.g. telemetry in cars) and free-form text (Feedback, Reviews and Social Media). All of which substantiate strategies to better manage customer experiences and outcomes. Organisations will have multiple goals for Big Data initiatives but it is the complexity of any project that often slows or stalls completion. Connecting data and processes to single business functions can be incredibly onerous and one that can involve high consulting costs and resourcing. Additionally as data breaches continue to cause boardroom concern, Big Data projects can become defocused and many projects, up to 23%, depending on the region⁴, saw the need for enhanced security capabilities grab funding. Funding is the ongoing issue for many Big Data projects that drives fear of negative ROI: • Legacy System Management – Big Data can extend use, rather than sunset, a proprietary system and this can introduce increased maintenance costs as services switch from turnkey to bespoke • Skills – Big Data can increase the need (and cost) for contracted DevOps capabilities in order to build the connectors and apps to present data to staff and customers in ‘consumerised’ interfaces • Governance – the collection and management of confidential data has a cost to ensure processes and protocols are compliant to privacy, confidentiality laws and policies BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE Therefore it is imperative that gains in growth and revenu- es from existing and prospective customers can quickly offset the costs that could negate ROI. Customer Experience – Big Data Success Getting singular focus within a cross-functional project such as Big Data may appear to be difficult but successful organisations are doing just that by focusing on a culture of customer-centricity. In short if an organisation can put a value on a customer, the data held can be used to shape experiences and advocacy so loyalty, retention and growth can be predicted. Variances will exist between B2C (transactional volume) and B2B (transactional value) organisations but tangible values should be there so an ROI goal can be set against a greater share of wallet or budget – very quickly in B2B where customers are known and data is available from many channels. However, in B2C the impact may take longer to realise as the customer may first be anonymous even though ‘behaviours’, such as web browsing and abandoned shopping carts, can be tracked. No surprise, therefore, that 64% organisations see CX as the primary ROI goal for Big Data. Of greater interest, and also reported by Gartner in 2015, nearly a third of Big Data projects were initiated by line-of-business heads (drawing level with CIOs) with a vested interest in the customer. Data strategy ownership is changing as companies shift to a value and velocity model allowing Big Data to support CX; monetise customer insights and drive business change. The maturity of any Big Data management strategy, in terms of its integration into connected business functions and insights, could also use CX maturity models, such as CXEvolution⁵, to assess its value to staff, Line-of-Business (LOB) functions and customer engagement and NPS and C-SAT scores. ³ http://www.forbes.com/sites/louiscolumbus/2016/05/22/51-of-enterprises-intend-to-invest-more-in-big-data/#2ba875553ad0 ⁴ Gartner Survey Analysis: Practical Challenges Mount as Big Data Moves to Mainstream ⁵ More information: www.maritzcx.co.uk/cxevolution/
  3. USiNg CX to MatURe Big Data MaNageMeNt So what six things should the ‘Big Data Collective’ consi- der from the outset of their corporate CX initiative: #1 Big Data Success Factor - Enculturate Assemble a cross-functional team to lead a Big Data project with a singular focus and goal; customer value – compelling for stakeholder and shareholder value. By democratising interests, the assessment of customer value from the cross-functional project team brings operational datasets into a federated state of One, enhanced by social media postings, survey responses and web reviews. Structured storage and collection ensures Big Data has the facets to parse the datasets needed to commence enhancing decision making and frontline service effectiveness. #2 Big Data Success Factor - Integrate Focus on a desired customer experience outcome that a value can be calculated, such as reversing a 10% year-on-year reduction in lapsed maintenance contracts. Let these calculations become the desired Big Data objective, it will become an ROI statement. Many Big Data projects stall or fail simply because they start without clear business objectives. The feedback and connected analysis of customers’ interactions and experiences will allow the B2B organisation to use the federated Big Data dataset to assess the points of failure. Typical integration may include: • Surveys and feedback may provide the qualitative response to the overall value of the human relationship (account managers, service engineers and the perceived company culture) • CRM will provide the quantitative assessment of engagement and buying behaviour BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE • Service Management will overlay the reliability, or otherwise, of the products and services provided Combined the organisation can begin to assess overall satisfaction and the likelihood of a customer to detract and why. The analysis begins the process of rectifying the fault lines within the customer experience, using case management and action planning to revise and adjust sales and service processes. Combined businesses will move to a more predictive state of customer insights. For many sectors survey responses are falling and metrics, such as NPS and C-SAT, are becoming static moments in time and by bringing in other available operational data that can be used to trend against different customer events and demographics to predict the true state of a customer – loyal or detractor. Zero Moment of Truth, A Single Pane of Customer Truth Gartner and Forrester have both publicly reported that more than 85% of organisations will look to compete on customer experience from 2016 but compete means ensuring that every customer facing/interacting employee or representative has simple access to all relevant information and feedback, presented in quick and easy dashboard and report formats. Because what happens next is often that zero moment of truth for a customer when frontline staff either succeed in delighting or leave the client despairing about their relati- onship with a company or brand. Having reversed negative trends, such as customer churn, the next phase is to become more proactive, listening to the voice of the customer every time they engage, online, in-store or on the telephone and ensure that every event and experience is visible to act upon. USiNg CX to MatURe Big Data MaNageMeNt BIG   DATA   S   M S   SILOED  LOB  REQUESTS   Legacy  Systems     Proprietary  Applica>ons     Enterprise  Solu>ons   (CRM,  ERP,  Service  Desk,  Finance  etc.)     Custom  Databases   (Access,  MySQL  etc.)     Feedback  Systems     Other   S   SALES   &   MKTG   BUSINESS  MONITORING   Feedback   Customer   Experience   Survey   Score   System s   Onlin e   On-­‐ Mobi le   In-­‐ Store   Single   Pane  of   Customer   Truth   Channel   BUSINESS  CHANGE   ADAPTIVE  CUSTOMER  CENTRICITY   BUSINESS  INSIGHTS     Mone>sed     Insights   £  $  €   Retain  &  Grow   Mone>sed     Insights   Data   Syste ms   Proces ses   BUSINESS  OPTIMISATION   INTEGRATION     CX  CHANGE  PROCESS   CXEvolu>on™   BIG  DATA  MODEL  =  CX  MATURITY  
  4. BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE #3 Big Data Success Factor - Federate Assemble your datasource inventory and begin the connection of data, processes and feedback with opera- tional systems, such as Salesforce, to build frontline views and dashboards. Although this white paper is non-technical, Hadoop and services such as the AWS S3 platform speed the norma- lisation of data through the use of lightweight, agile and adaptive processing frameworks. These allow the con- solidation of both structured and unstructured data into enterprise-class Big Data storage and out into consumeri- sed apps and interfaces. CX technologies can easily leverage these to commence the presentation of these datasources for focused customer outcomes, enhancing data further with survey and feedback intelligence as sentiment is collected to complete the analysis of system generated data like service tickets and product returns. #4 Big Data Success Factor - Propagate Nearly there! Creating a dashboard so frontline staff can better interact with customers does not start by evalua- ting what data exists, it commences with understanding a customer’s typical journey. Journey mapping will highlight the opportunities and times when data can be captured and/or recorded, it can even draw in feedback that had previously been missed. That single pane of CX truth will drive more and different decision points, both push and pull. Mapping the customer journey in absolute detail will allow the company to start shaping the overall experience. Knowing when to offer advice at investigation stages or when a customer aborts an online transaction can increase new business revenues. For example, in-store frontline operatives can start to present relevant choices and alter- natives to consumers driving a greater share of wallet. Equally knowing when a customer is detracting by using well-placed feedback channels will mitigate against churn as case management ensures closed loop analysis of the fault lines with customer management processes. Big Data makes this possible as behind every stage of the journey will be different systems, portals or feedback mechanisms. #5 Big Data Success Factor - Celebrate Publicise success! It doesn’t matter how strategic your Big Data initiative is, Customer Experience will give focus on outcomes that will positively impact ROI. Understanding and acting upon Customer Experience insight and analysis creates a better company to do business with. Consequently the outcomes should be fourfold: 1. Increased Retention 2. Greater Share of Wallet/Budget 3. Company/Brand Reputation Management 4. Higher Levels of Customer and Social Media Advocacy Customer Experience technologies come with compre- hensive reporting and highly visual dashboards. Use these internally to communicate success. Grow. Retain. Repeat. #6 Big Data Success Factor - Incorporate Do not get side-tracked by UX and DX! For many industries, like Financial Services, Digital Trans- formation is a constant strategic objective. The need to re- duce traditional costs, like branch services, with the need to introduce new channels for younger, mobile customers. ‘Apple-ising’ apps and adapting web services for mobile are important for improving brand identity but it does not guarantee customers for a lifetime. Improving access and use through sharp HTML5 mobile apps helps but ultimately it is not how a customer rates experience. If CX is the cake of the customer, UX and DX is the deco- ration. For Big Data is only as good as the data held, then apps and interfaces only become applicable for use based upon the content they present. In CX content is data, the actionable insights that turn into real-time decision support for frontline and customers.
  5. BIG DATA – THE CASE FOR CUSTOMER EXPERIENCE To demo a product or to contact MaritzCX call UK & Eire +44 (0)1494 590 600 I Germany +49 (0)40 369 833 0 I North America +1 385.695.2800 I Asia Pacific 1800 271 670 maritzcx.commaritzcx.commaritzcx.demaritzcx.co.uk MaritzCX believes organisations should be able to see, sense and act on the experiences and desires of every customer, at every touch point, as it happens. We help organisations increase customer retention, conversion and lifetime value by ingraining customer experience intelligence and action systems into the DNA of business operations. For more information, visit www.maritzcx.co.uk Big Data, Big Opportunity - Generate In conclusion, customer experience can be defined as the analysis of every customer record, interactions, behaviour, transactions and delivery, support services and the many channels of feedback (social media included) in order to determine the likelihood of new and repeat business. Big Data and CX is the perfect marriage to generate growth through retention, increased share of wallet and reputation management. Yet, in CX terms, only 3%⁶ of organisations have attained that level of operational maturity that ensure data is being used to proactively manage all customer experiences in real-time. MaritzCX combines research expertise, data and techno- logy to make sure the right people in these organisations can understand and respond to every customer experience in real-time. “Becoming customer-adaptive means having the ability to sense change, understand what motivates customers at a deeper level, and adapt at the right speed to ensure persistent relevance. The customer must be at the centre of any adaptation. Ovum’s research shows that 97% of enterprises are at risk.” Jeremy Cox, Principal Analyst, Ovum⁷ Notes: 1. All sources are in the public domain 2. Any source stated is purely for the purposes of this document and are void of any endorsement of MaritzCX 3. All trade names and marks belong to their respective owners ⁶ The MaritzCX Global CX Assessment Report ⁷ Ovum Analyst Opinion: If you are not customer-adaptive your survival is at risk. February 2016
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