How to keep customers long term customer-adaptive enterprise maturity research -10-131. What it takes to keep
customers coming back
Jeremy Cox
Jeremy.cox@ovum.com
@jeremycoxcrm
October 8th 2013
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2. Agenda
Answer the question
Pilot research findings – current maturity levels
2
What question should every organisation answer?
Recommendations
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3. What question should every
organisation answer?
3
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4. 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
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5. The future of a commercial organisation is assured only
if it can maintain its relevance to its customers
5
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6. We all have to answer the same question:
How can we remain persistently
relevant to our customers?
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7. Today it’s even more challenging…..
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Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013
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8. What should we do?
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10. What attributes do we need?
Visionary
leadership
Architected
Engaged
Collaborative
Connected
Insightful
Innovative
Positive
experience
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11. 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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13. 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
Source: Ovum Customer-Adaptive Enterprise preliminary research to September 2013
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14. 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
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15. 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
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16. 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)
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17. 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)
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18. 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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19. 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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20. 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.
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21. 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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23. 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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24. 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
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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
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25. Then develop your roadmap to move forward towards
your customer-centric vision
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26. 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
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27. 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
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• Map customer journey
• Encourage
experimentation
• Use innovation mgt
integrated with ESN
• Invest – set aside budget
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28. You can draw on our analyst community for a deeper
exploration into areas of particular focus
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29. ''If you’re not
prepared for the
future today,
you're history
tomorrow''
Peter Hasler Chairman
THANK YOU
Jeremy.cox@ovum.com @jeremycoxcrm
29
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Notes de l'éditeur It’s plain and simple the future is only guaranteed if we can grow the customer base, by nurturing existing customers and attracting new ones over time.This generates the cash flows nothing else, and shareholder value is the result – barring the odd speculative hiccup from the stock market.