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CEM Begins at home
Its all about employee engagement
Cathy McKnight, Partner & Principal Analyst
May 2014 – J. Boye Philadelphia
@cathymcknight	
  	
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2	
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DCG helps business leaders
navigate the digital
transformation and create
competitive advantage
from disruption. 
@cathymcknight	
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About Digital Clarity Group
Outside looking in
@cathymcknight	
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Employee Engagement & CEM
“What everyone in a company
does can be reduced to one of
two functions: to serve the
customer or serve someone who
does” Dr. W. Edward Deming
@cathymcknight	
  	
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CEM
@cathymcknight	
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Employee Engagement & CEM
“We (JetBlue) believe that only 10%
of customers’ perception of our brand
is visible through customer
interactions. The other 90% is
impacted by people management,
processes, policies, and organization.”
Harvard Business School
Impact of employee engagement
@cathymcknight	
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@cathymcknight	
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Employee Engagement & CEM
Much of employee engagement is
about relationships. The relationship
an employee has with their job, their
colleagues, their customers and their
organisation. And, relationships are
all art and very little science.
Adrian Swinscoe
@cathymcknight	
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Harvard Business School
Impact of employee engagement
@cathymcknight	
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Aon Hewitt – 2014
Trends in Global
Employee
Engagement
15	
  
Engaged & empowered employees . . .
§  Companies	
  in	
  the	
  top	
  quar0le	
  of	
  
engagement	
  had	
  50%	
  higher	
  
total	
  shareholder	
  return.	
   §  Companies with engaged
employees financially
outperform lower
engagement workplaces,
with 5.75% higher
operating margin and
3.44% higher net profit
margin.
§  Each incremental
% of employees
who become
engaged predicts
incremental 0.6%
growth in sales.
(Aon Hewitt)
CEM has emerged as a critical strategy
for businesses today – 86% of
consumers quit doing business with a
company because of a bad experience –
up from 59% four years ago.
Impact of CEM
A March report by Harris Interactive
@cathymcknight	
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There are many other CEM technologies out
there—Web analytics tools and survey and
feedback software—and all promise to deliver
the potential for higher profit. Companies use
the technologies to glean information from
customers and leverage it to provide better
experiences.
CEM & Technology
@cathymcknight	
  |@just_clarity	
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   17	
  
Blend Old School + New
@cathymcknight	
  |@just_clarity	
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@cathymcknight	
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19	
  
“Extinction is the rule.
Survival is the exception.”
-- Carl Sagan@cathymcknight	
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@cathymcknight	
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@cathymcknight	
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@cathymcknight	
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Clarity around WIIFM
@cathymcknight	
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  #JBoye14	
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@cathymcknight	
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Internal CEM Strategy
1.  Purposeful leadership
2.  Consistent and vivid image of the
customer – company wide
3.  EVP and inclusive culture
4.  Customer-focused decision making
5.  Compelling brand values
6.  Employee engagement
7.  Recognition
@cathymcknight	
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  #JBoye14	
   27	
  
@cathymcknight	
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   28	
  
For CEM⌃
@cathymcknight	
  |@just_clarity	
  |	
  #JBoye14	
   29	
  
30	
  
Cathy McKnight – Partner & Principal Analyst
cmcknight@digitalclaritygroup.com
@cathymcknight | @just_clarity

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J boye 2014 Customer Experience Management & Employee Engagement

  • 1. CEM Begins at home Its all about employee engagement Cathy McKnight, Partner & Principal Analyst May 2014 – J. Boye Philadelphia @cathymcknight    |  @just_clarity  |  #JBoye14  
  • 2. 2  @cathymcknight    |  @just_clarity  |  #JBoye14  
  • 3. DCG helps business leaders navigate the digital transformation and create competitive advantage from disruption.  @cathymcknight  |  @just_clarity  |  #JBoye14   3   About Digital Clarity Group
  • 5. @cathymcknight  |@just_clarity  |  #JBoye14   5   Employee Engagement & CEM “What everyone in a company does can be reduced to one of two functions: to serve the customer or serve someone who does” Dr. W. Edward Deming
  • 6. @cathymcknight    |  @just_clarity  |  #JBoye14   CEM
  • 7. @cathymcknight  |@just_clarity  |  #JBoye14   7   Employee Engagement & CEM “We (JetBlue) believe that only 10% of customers’ perception of our brand is visible through customer interactions. The other 90% is impacted by people management, processes, policies, and organization.”
  • 8. Harvard Business School Impact of employee engagement @cathymcknight  |@just_clarity  |  #JBoye14   8  
  • 9. @cathymcknight  |@just_clarity  |  #JBoye14   9   Employee Engagement & CEM Much of employee engagement is about relationships. The relationship an employee has with their job, their colleagues, their customers and their organisation. And, relationships are all art and very little science. Adrian Swinscoe
  • 10. @cathymcknight  |@just_clarity  |  #JBoye14   10   Harvard Business School Impact of employee engagement
  • 11.
  • 12.
  • 13. @cathymcknight  |@just_clarity  |  #JBoye14   13   Aon Hewitt – 2014 Trends in Global Employee Engagement
  • 14.
  • 15. 15   Engaged & empowered employees . . . §  Companies  in  the  top  quar0le  of   engagement  had  50%  higher   total  shareholder  return.   §  Companies with engaged employees financially outperform lower engagement workplaces, with 5.75% higher operating margin and 3.44% higher net profit margin. §  Each incremental % of employees who become engaged predicts incremental 0.6% growth in sales. (Aon Hewitt)
  • 16. CEM has emerged as a critical strategy for businesses today – 86% of consumers quit doing business with a company because of a bad experience – up from 59% four years ago. Impact of CEM A March report by Harris Interactive @cathymcknight  |@just_clarity  |  #JBoye14   16  
  • 17. There are many other CEM technologies out there—Web analytics tools and survey and feedback software—and all promise to deliver the potential for higher profit. Companies use the technologies to glean information from customers and leverage it to provide better experiences. CEM & Technology @cathymcknight  |@just_clarity  |  #JBoye14   17  
  • 18. Blend Old School + New @cathymcknight  |@just_clarity  |  #JBoye14   18  
  • 19. @cathymcknight  |@just_clarity  |   #JBoye14   19  
  • 20.
  • 21. “Extinction is the rule. Survival is the exception.” -- Carl Sagan@cathymcknight  |@just_clarity  |  #JBoye14   21  
  • 22. @cathymcknight  |@just_clarity  |  #JBoye14   22  
  • 23. @cathymcknight  |@just_clarity  |  #JBoye14   23  
  • 24. @cathymcknight  |@just_clarity  |  #JBoye14   24  
  • 25. Clarity around WIIFM @cathymcknight  |@just_clarity  |  #JBoye14   25  
  • 26. @cathymcknight  |@just_clarity  |  #JBoye14   26  
  • 27. Internal CEM Strategy 1.  Purposeful leadership 2.  Consistent and vivid image of the customer – company wide 3.  EVP and inclusive culture 4.  Customer-focused decision making 5.  Compelling brand values 6.  Employee engagement 7.  Recognition @cathymcknight  |@just_clarity  |  #JBoye14   27  
  • 28. @cathymcknight  |@just_clarity  |  #JBoye14   28   For CEM⌃
  • 29. @cathymcknight  |@just_clarity  |  #JBoye14   29  
  • 30. 30   Cathy McKnight – Partner & Principal Analyst cmcknight@digitalclaritygroup.com @cathymcknight | @just_clarity