Today, we’re told, customer experience management (CEM) is an inescapable imperative, the primary determinant of organizational success or failure, and the sole means of sustainable competitive advantage. The experience, moreover, concerns the entire customer lifecycle, from the first inkling of a desire until (hopefully) ongoing loyalty. And since “you’re only as good as your last interaction,” no exchange can be neglected, no matter how trivial.
There’s only one minor problem: Based on how it is normally defined and described, customer experience management is impossible. Because it is impossible, many if not most of the current efforts to achieve it are futile and, worse, dangerous and wasteful distractions. In this presentation we’ll look at why it’s crucial to understand what CEM is and is not (and cannot be); where the imperative for CEM comes from, why this can and should inform your CEM strategy, and how your early, relatively simple steps can already be a huge advance in the journey to CEM excellence.
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
The total impossibility of customer experience management
1. The Total Impossibility of Customer
Experience Management
JBoye15| 4 November 2015
Tim
Walters
|
Co-‐Founder
twi5er:
7m_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com
2. About Digital Clarity Group
We work with:
§ Digital leaders
§ Technology vendors
§ Service providers
We offer:
§ Consultancy
§ Research
§ Thought Leadership
Digital Clarity Group helps business leaders navigate the digital
transformation and turn digital disruption into competitive advantage.
“Digital
Clarity
is
composed
of
smart,
free-‐thinking,
experienced
analysts
who
follow
their
gut
and
provide
tailored
guidance.”
15. The
iPhone
A8
chip
has
625x
more
transistors
than
a
1995
Pen7um
chip
Source:
Ben
Evans,
h5p://ben-‐evans.com/benedictevans/2014/10/28/presenta7on-‐mobile-‐is-‐ea7ng-‐the-‐world
@7m_walters
16. “Mobile [means] that you free people from
having to decide which device to use. If you
sit in your office, mobile means using your
laptop. If you sit at home, mobile means
using whatever device happens to be within
reach. If you sit on the bus, mobile means
using what’s in your hand.”
-- Thomas Baekdal
16
Source:
h5p://www.baekdal.com/insights/defining-‐a-‐market-‐in-‐the-‐connected-‐world-‐you-‐are-‐not-‐in-‐kansas-‐anymore
Mobile means ubiquity
17. FROM SCARCITY TO ADUNDANCE
Information access is immediate, because it is mobile.
It is limitless, because it is connected.
It is trustworthy, because it is social.
Information monopolies are destroyed.
18. 18
A cycle of ubiquitous content consumption
@7m_walters
19. “As
the
industrial
revolu7on
was
defined
by
radical
efficiency
in
produc7on,
the
digital
revolu7on
is
defined
by
radical
efficiency
in
informa7on
transmission.”
-‐
Mike
Arauz
Source:
h5p://www.slideshare.net/mikearauz/mikearauz-‐on-‐digitaltransforma7onmay2014prez
20. 20
Whereas
the
Chicxulub
impact
produced
darkness,
the
mobile
shie
produces
light,
and
enlightenment.
Whereas
the
impact
released
debris
that
blocked
out
the
sun,
mobility
(especially
combined
with
social)
releases
knowledge
that
parts
the
clouds.
Whereas
the
first
interrupted
and
effec7vely
destroyed
the
food
chain,
causing
the
interrelated
and
dependent
species
to
topple
like
one
domino
aeer
another,
the
second
enriches
and
extends
the
en7re
ecosystem,
due
largely
to
a
far
more
profound
dynamic
of
interdependence,
networking,
and
sharing.
Due
to
this
sudden
abundance
of
informa7on,
the
environment
we
occupy
has
been
fundamentally
transformed.
22. @7m_walters
§ Mobile Shift
§ Deep Impact
§ Ubiquitous Computing
§ Empowered Consumers
§ Customer Experience Management
To summarize:
23. 23
This and other DCG research
is available at no cost on
www.digitalclaritygroup.com
24. 24
What
is
na7ve
adver7sing?
Is CEM an extinction level event?
25. PART
TWO
in
which
We all need a stiff drink
@7m_walters
26. 26
Now
that’s
a
poten7ally
insul7ng
ques7on.
The
very
existence
of
this
conference
–
and
of
the
thousands
of
other
similar
but
less
impressive
conferences
is
proof
that
we
take
CEM
seriously.
“We”
–
analysts,
vendors,
service
providers,
so-‐called
end
users
–we
are
gathered
on
a
great
ba5lefield
of
the
war
to
improve
customer
experience,
and
we
are,
as
something
like
the
CEM
industry,
dedicated
to
the
proposi7on
that
experience
ma0ers
above
all
else.
There
is
a
lot
of
other
evidence
to
indicate
that
we’re
doing
what
it
takes
to
survive:
27. 27
Source:
Repor7ng
on
Accenture’s
Digital
Transforma7on
in
the
Age
of
the
Customer
report,
2015.
28. That
damn
Sco5
Brinker
exponen7al
marke7ng
technology
slide.
@7m_walters
Also,
we
know
that
spending
on
CEM-‐related
technologies
has
exploded.
(Or,
at
least
the
investments
by
VCs
in
companies
that
would
like
to
benefit
from
an
explosion
in
spending
on
CEM
has
exploded.)
29. Also
89%
of
N.A.
marketers
said
they
expect
to
compete
“mostly
on
the
basis
of
customer
experience”
by
2016.
(That’s
seven
weeks
from
now.)
Source:
Gartner,
2015
Marke7ng
Spending
Survey
@7m_walters
36. 81%
of
firms
in
global
survey
have
seen
CX
ini7a7ves
fail
in
the
last
three
years.
Source:
Avaya
global
survey
2014,
see
h5p://www.avaya.com/usa/about-‐avaya/newsroom/news-‐releases/2014/pr-‐140429/
37. 16,000 customers in 32 countries
§ CX index declines from 2013-2015
§ Gen Y most dissatisfied demographic
§ 8 out of 10 with high increases in
negative ratings in EU, 5 of these
increased more than 10%
§ WW increased likelihood to switch
37
CapGemini World Retail Banking
Report
Source:
h5ps://www.worldretailbankingreport.com/#report-‐highlights
38. 30,000+ consumers worldwide
§ 2013: “no CX metric has improved
consistently in the last five years”
§ Every metric declined 2012-13
§ 2015: in insurance sector, loyalty
declines, only 29% are “highly satisfied,”
15% are sure to buy from incumbent
provider, $470b in “switching economy”
38
Accenture Global Consumer Survey
Source:
Accenture:
Customer
2020:
Are
You
Future-‐Ready
or
Reliving
the
Past?
39. 39
Excellent
Good
OK (aka “mediocre”)
Poor
Very Poor
Consumers rate brands on effectiveness,
ease, and emotion
Forrester CX Index – How it Works
Source:
h5p://www.slideshare.net/JonathanBrowne/jb-‐iqpc-‐18feb2014
40. USA: 45,000+ consumers, 299 brands
§ From Q1 to Q3 2015 “good” rating
declines from 26% to 15%
§ In that period, 2.3% get better,
28.5% get worse
§ 1% of US brands rate “excellent”
40
Forrester CX Index, Q3 2015
Source:
h5p://blogs.forrester.com/michael_gazala/15-‐10-‐06-‐
forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;
h5p://blogs.forrester.com/
joana_van_den_brink_quintanilha/15-‐09-‐28-‐
which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe
41. FR, UK, DE: 14,000+ consumers, 203
brands
§ In UK, 87% are mediocre or worse
§ In DE 84% are mediocre or worse
§ In FR, 60% are poor or very poor
§ In FR, 0% are (even) “good”
41
Forrester CX Index, Q3 2015
Source:
h5p://blogs.forrester.com/michael_gazala/15-‐10-‐06-‐
forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;
h5p://blogs.forrester.com/
joana_van_den_brink_quintanilha/15-‐09-‐28-‐
which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe
42. 42
§ 1% (or less!) offer “excellent” CX
§ “Mediocre or worse”
– USA: 84%
– Germany: 84%
– UK: 87%
– France: 100%
Did I mention we suck?
Source:
h5p://blogs.forrester.com/michael_gazala/15-‐10-‐06-‐
forresters_customer_experience_index_q3_2015_its_hard_being_an_op7mist;
h5p://blogs.forrester.com/
joana_van_den_brink_quintanilha/15-‐09-‐28-‐
which_french_german_and_uk_brands_create_the_most_loyalty_with_their_customer_expe
45. 45
The Great Reluctance?
The Collective Ineptitude?
A Conspiracy of Failure?
La grande illusion?
Four possible reasons for . . . what
shall we call it?
46. 46
§ A “strategic priority” . . . but no
budget
§ Inadequate/insufficient skills
§ Self-delusion: 78% say “we try to
differentiate via CX”
1. We don’t do enough
Source:
(Econsultancy/Adobe
survey,
2015.
n=2363)
h5p://www.elas7cpath.com/resources/get-‐elas7c-‐blog/what%E2%80%99s-‐wrong-‐customer-‐experience-‐strategy
47. 47
§ CEM as “digitally supercharged
marketing”
§ Industrial legacy: More efficient
processing of prospects/customers
§ CX concepts bastardized
§ Unrealistic scenarios
§ F*#ked up incentives
2. We do too much – of the wrong
things
48. Source:
h5ps://www.worldretailbankingreport.com/#report-‐highlights.
“Six
lessons
you
can
learn
from
Amazon’s
killer
email
marke7ng
We think tracking a consumer across devices and
interrupting her evening with an email is the
height of personalized engagement.
In the name of customer experience
49. 49
We are incented to collect/acquire as
much data on consumers as possible.
In the name of customer experience
Source:
h5ps://www.visioncri7cal.de/big-‐data-‐collec7on-‐and-‐privacy-‐concerns/
50. 50
We are incented to display ads that
consumers ignore.
Average display ad CTR: 0.06%
Google Doubleclick, April 2015
In the name of customer experience
Source:
h5p://www.smar7nsights.com/internet-‐adver7sing/internet-‐adver7sing-‐analy7cs/display-‐adver7sing-‐clickthrough-‐rates/
51. 51
Ads that are hostile to the user
experience.
In the name of customer experience
Source:
h5p://betanews.com/2015/08/25/ad-‐blocker-‐crystal-‐massively-‐reduces-‐bandwidth-‐usage-‐and-‐page-‐load-‐7mes-‐in-‐ios-‐9/
52. 52
Ads which consumers are incented to
avoid.
In the name of customer experience
Source:
h5p://fortune.com/2015/09/21/apple-‐adblock-‐stats/
53. 53
In the name of customer experience
Source:
h5p://www.thewire.com/business/2011/06/you-‐are-‐more-‐likely-‐survive-‐plane-‐crash-‐click-‐banner-‐ad/39429/
You’re
more
likely
to:
• Get
a
full
house
playing
poker
• Give
birth
to
twins
• Summit
Mt.
Everest
• Get
admi5ed
into
MIT
• Become
a
Navy
SEAL
.
.
.
than
to
click
on
a
banner
ad
Ads which have become a joke.
54. 54
In the name of customer experience
Source:
h5ps://www.capgemini-‐consul7ng.com/resource-‐file-‐access/resource/pdf/privacy-‐vs-‐personaliza7on_0.pdf
Similar excesses and ineptitude
threaten a personalization backlash
55. 55
In the name of customer experience
Source:
h5p://marke7ngland.com/study-‐finds-‐both-‐widespread-‐programma7c-‐adop7on-‐and-‐lack-‐of-‐understanding-‐how-‐it-‐works-‐143723
In
other
words
.
.
.
56. 56
Half of the virgins we sacrifice don’t
help the crop.
Trouble is, we don’t know which half.
57. We
prac7ce
customer
experience
management
with
too
li5le
a5en7on
to
the
customer’s
experience
#apostrophesma5er
@7m_walters
In short . . .
58. PART
FOUR
in
which
The Professor speaks
@7m_walters
60. 60
In
episode
157
of
his
Cri7cal
Path
podcast,
Horace
Dediu
says
that
the
Apple/IBM
partnership
will
not
cause
either
company
to
change
their
priori6es,
processes,
or
culture.
Why?
Because,
he
argues,
it
is
virtually
impossible
for
any
company
to
ever
fundamentally
change
their
P,
P,
or
C.
I
asked
him
if
this
meant
that
most
organiza7ons
will
fail
to
adapt
to
and
thrive
in
the
radical
new
business
environment
created
by
consumer
empowerment.
His
complete
response:
61. 61
Dediu
isn’t
a
cynic
or
curmudgeon.
He’s
a
student
(and
now
colleague)
of
Clayton
Christensen,
and
he’s
drawing
on
this
2000
ar7cle
in
the
Harvard
Business
Review.
Here’s
a
way
to
understand
the
argument
by
(over
simplified)
analogy.
When
a
company
is
young,
it
is
like
pliable
po5ery
clay.
The
founders
create
a
shape,
find
it
inadequate,
squish
the
clay
together
and
start
over
again,
shaping
and
reshaping.
If
the
company
does
not
fail,
it
eventually
finds
the
“correct”
shape
–
i.e.
product/market
fit.
The
task
is
then
to
regularize
and
ins7tu7onalize
that
shape
–
e.g.
to
make
it
reliably
repeatable
in
a
efficient
manner.
Priori7es,
processes,
and
culture
develop
(purposefully
or
subconsciously)
to
enable,
ensure,
and
sustain
the
repeatable
execu7on
of
the
shape.
When
they
are
in
place,
trying
to
force
a
change
will
break
the
pot.
(Again:
My
analogy.
There
is
no
clay
in
Clay’s
argument.)
62. 62
Organiza7ons
are
hard
to
change
because
they
are
organized.
They
are
intended
to
express
and
execute
a
certain
form
or
(business)
model.
In short . . .
63. 63
Buy
a
different
pot:
• “Acquire
a
different
organiza7on
whose
processes
and
values
closely
match
the
requirements
of
the
new
task.”
Start
the
throwing
anew
• “Spin
out
an
independent
organiza7on
from
the
exis7ng
organiza7on
and
develop
within
it
the
new
processes
and
values
required
to
solve
the
new
problem.”
Create
a
new
pot
with
the
fragments
of
the
old
• “Create
new
organiza7onal
structures
within
corporate
boundaries
in
which
new
processes
can
be
developed.”
The (only) three ways to change
(an inadequate pot)
Source:
h5ps://hbr.org/2000/03/mee7ng-‐the-‐challenge-‐of-‐disrup7ve-‐change/ar/1
64. 64
A new structure from old fragments.
How would that work?
And is it a (or the only) way to
avoid CEM extinction?
65. PART
FOUR
in
which
The Journey Begins
@7m_walters
66. 66
“Understanding
a
problem
is
the
most
crucial
step
in
solving
it.”
Clayton
Christensen
&
Michael
Overdorf
4. We’re trying to solve the wrong
problem
Source:
h5ps://hbr.org/2000/03/mee7ng-‐the-‐challenge-‐of-‐disrup7ve-‐change/ar/1
67. We know what CX is:
“A
customer’s
percep7on
of
a
company
or
brand,
based
on
all
of
their
interac7ons
during
the
customer
lifecycle.”
@7m_walters
68. So CEM must be:
“Managing
a
customer’s
percep7on
of
a
company
or
brand,
based
on
all
of
their
interac7ons
during
the
customer
lifecycle.”
Right?
@7m_walters
71. So, all we need to so is manage . . .
1000s
of
individual
interac7ons
Over
decades
For
every
one
of
your
customers
(and
prospects!)
Across
n
number
of
segments,
languages,
locales
At
every
stage
of
the
en6re
customer
lifecycle
And,
oh
by
the
way,
make
that
not
only
mul7channel
but
transparently
omnichannel
@7m_walters
72. So, all we need to so is manage . . .
1000s
of
individual
interac7ons
Over
decades
For
every
one
of
your
customers
(and
prospects!)
Across
n
number
of
segments,
languages,
locales
At
every
stage
of
the
en6re
customer
lifecycle
And,
oh
by
the
way,
make
that
not
only
mul7channel
but
transparently
omnichannel
And
it
culminates
in
an
individual’s
percep7on,
i.e.,
a
mental
state.
@7m_walters
73. In
short,
the
commonly
accepted
defini7on
of
CEM
leads
to
an
inescapable
conclusion:
78. 78
High
value
journeys
“Indifference”
The
journeys
are
high
value
because
they
account
for
the
lion’s
share
of
revenue,
as
well
as
harboring
most
of
the
opportuni7es
to
influence
customer
experiences
(emo7ons,
memories)
and
build
loyalty.
A new (and better) visualization of CX
79. Cable on-boarding journey
• Customer
makes
decision,
completes
online
form.
(website)
• Receives
email
with
instruc7ons
for
installa7on
(email)
• Calls
to
make
appointment
(call
center)
• Equipment
installed
(field
team)
• Issues
with
set-‐up
(website,
call
center)
• Receives
and
pays
first
bill
(billing,
CRM)
79
80. Retail Banking Journeys
• New
account
onboarding
• Payments
and
transfers
• Statements
and
fees
• Loan
applica7on/approval/payback
• Managing
credit
cards
• Investment
advice/performance
80
81. Higher Education Journeys
• Researching
and
selec7ng
• Applica7on
(essays,
etc)
• Financial
aid
(parental
journey)
• Arrival/star7ng
studies
• Changing
major
• Study
abroad
• Transi7on
to
work
• Alumni
rela7on$
(advocacy)
(Orange
=
poten7ally
USA
specific)
81
82. 82
Manage the “hotspots”
Journeys
harbor
the
value
in
the
customer
lifecycle.
Hotspots
are
the
“moments
of
truth”
within
a
journey
that
most
influence
emo7on,
memory,
and
loyalty
“It’s
crucial
to
iden7fy
and
select
the
hotspots
that
really
affect
customers’
experience,
both
posi7vely
and
nega7vely.”
-‐-‐
Larvans
Løvlie,
Liveworks
Source:
h5p://liveworkstudio.com/the-‐customer-‐blah/the-‐changing-‐nature-‐of-‐service-‐experience-‐design/
Customer
Lifecycle
83. § Traditional isolated touchpoint
management is too small to have an
impact on CEM.
§ Totalized lifecyle management is too big.
(And pointless. And impossible.) And it
still relies on touchpoints!
§ Customer journey management is just
right.
(Too bad if you don’t know about
Goldilocks and the Three Bears.)83
@7m_walters
The right driver for CX improvements
84. § Bring together the resources, skills,
data, systems, workflows,
infrastructure, insights, strategy, etc.
to support, improve, and extend a CJ.
§ This is “Creating a new organizational
structures within corporate boundaries
in which new processes can be
developed.” A new pot from old
fragments.
84
@7m_walters
Change is possible
85. Benefits of CJM
§ Limited
in
number
§ Cross-‐func7onal
§ Measurable
business
impacts
§ Manageable
§ Provides
framework,
business
jus7fica7on,
and
requirements
that
have
been
desperately
needed
by
intranet,
enterprise
social,
and
managerial
change
ini7a7ves.
85
86. Benefits of CJM
§ Mapping
a
CJ
determines
where
personaliza7on
is
useful
and
what
kind
of
data
is
needed.
§ Data-‐for-‐relevance
transac7ons
are
well
defined
and
easier
to
demonstrate
to
consumers.
86
87. • Informa7on
revolu7on
empowers
consumers.
• Resul7ng
demand
for
improved
CX
an
ELE.
• Resistance
is
fu7le
(if
you
want
to
live)
–
but
so
is
a5emp7ng
to
manage
the
en7re
customer
lifecycle.
• CJ(HS)M
shies
a5en7on
to
the
interac7ons
that
ma5er
most
–
and
provide
the
missing
driver
for
organiza7onal
change.
• Focus
on
journeys
is
not
a
“start
small,”
“baby
steps”
strategy.
It
is
precisely
what
you
should
be
doing
–
and
you
can
do
it
today.
Summary
87