In this presentation, we discuss how to compete for customer loyalty in a world where businesses face intense global competition and consumers have information at their fingertips 24/7, which leads to commoditization and downward pricing pressure.
In this slide we cover 3 topics:
1) Fall of Product-Centric Differentiation and Rise of Customer Experience Differentiation
2) How to optimize the Customer Experience with examples from Walgreens, Mattel, and SeatGeek
3) A deep dive into Oscar Health Insurance, an industry that has seen some of the least customer experience innovation
3. MaestroIQ
AGENDA
Fall of Product-Centric Innovation and Rise of
Customer Experience Innovation
How to optimize the Customer Journey
Insurance Case Study
Q&A
4. MaestroIQ
TRADITIONAL PRODUCT-CENTRIC
INNOVATION DOES NOT CREATE A
LASTING COMPETITIVE DIFFERENTIATION.
Competitors all over the world copy product features
more quickly in a hyper connected world
Consumers can’t differentiate products across
competitors and have more information and options
at their fingertips to switch brands easily
Product R&D Rose 6% but Revenue rose <1%
based on a study conducted by Oliver Wyman
Consultancy
8. MaestroIQ
EACH INTERACTION WITH MARKETING IS A
CUSTOMER EXPERIENCE OPPORTUNITY
TO GENERATE REVENUE.
Marketing
Customer
Support
Sales
In a Product-centric organization,
marketing is a cost center.
9. MaestroIQ
EACH INTERACTION WITH SUPPORT IS A
CUSTOMER EXPERIENCE OPPORTUNITY
TO GENERATE REVENUE.
Marketing
Customer
Support
Sales In a Product-centric organization,
support is a cost center.
10. MaestroIQ
EACH INTERACTION WITH SALES IS A
CUSTOMER EXPERIENCE OPPORTUNITY
TO GENERATE REVENUE.
Marketing
Customer
Support
Sales In a Product-centric organization,
sales is a revenue driver.
However, sales are transactional
versus solutions.
11. MaestroIQ
THE GOAL IS TO OPTIMIZE THE
CUSTOMER JOURNEY, WHICH IS THE FULL
SET OF CUSTOMER EXPERIENCES.
Every Customer
Experience
Customer
Lifetime Value
For each customer:
Customer
Journey
12. MaestroIQ
AGENDA
Fall of Product-Centric Innovation and Rise of Customer
Experience Innovation
How to optimize the Customer Journey
Insurance Case Study
Q&A
13. MaestroIQ
THIS IS A SYSTEMATIC FRAMEWORK TO
APPROACH OPTIMIZING THE CUSTOMER
JOURNEY.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
15. MaestroIQ
THE FIRST TWO STEPS ARE SKIPPED THE
MOST FREQUENTLY.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
23. MaestroIQ
WALGREENS NEEDED TO CREATE A NEW
CUSTOMER EXPERIENCE TO ADDRESS
THIS NEED.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
25. MaestroIQ
PEOPLE INSTALLED THE APP FOR THE RX
SERVICE SO WALGREENS ALREADY
IDENTIFIED THEIR CUSTOMERS.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
26. MaestroIQ
EACH MARKETING, SALES, & SUPPORT
INTERACTION IS NOW AN OPPORTUNITY
TO BUILD A RELATIONSHIP.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
27. MaestroIQ
WALGREENS COMMUNICATES THE
SHOPPING LIST EXPERIENCE WHEN
RELEVANT TO THE CUSTOMER’S NEEDS.
Trigger:
Medication
low
Scan RX
via mobile
app
Browse
products
Browse
Products
Browse
Products
Pick up RX
In-store
purchases
Make
Shopping
List
Pick up RX
In-store
purchases
30. MaestroIQ
FIRST, THEY MAPPED THE CURRENT
CUSTOMER EXPERIENCE.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
31. MaestroIQ
EVEN THOUGH SOMEONE BUYS A MATELL
TOY, MATELL DOES NOT HAVE ANY
RELATIONSHIP WITH THAT CUSTOMER.
Trigger: Visit Toys-
R-Us
Purchase Mattel Hot
Wheels
Trigger: Visit Toys-
R-Us
Purchase Toy
32. MaestroIQ
SO MATTEL NEEDED TO CREATE A DIGITAL
EXPERIENCE.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
34. MaestroIQ
MATELL CAN CHANGE THE ENTIRE
COURSE OF THE RELATIONSHIP WITH
THIS 1:1 CONNECTION.
Trigger: Visit Toys-
R-Us
Purchase Mattel Hot
Wheels
Trigger: Visit Toys-
R-Us
Purchase Toy
Download Hot
Wheels app and
play game
Purchases Hot
Wheels online from
Mattel directly
35. MaestroIQ
MATELL SUCCESSFULLY IDENTIFIED WHO
BOUGHT THEIR HOTWHEEL SET.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
36. MaestroIQ
EACH MARKETING, SALES, & SUPPORT
INTERACTION IS AN OPPORTUNITY TO
BUILD A RELATIONSHIP.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
37. MaestroIQ
THEY CAN COMMUNICATE WITH EACH
INDIVIDUAL CUSTOMER TO GROW THE
RELATIONSHIP OVER TIME.
Trigger: Visit
Toys-R-Us
Purchase
Mattel Hot
Wheels
Trigger: Visit
Toys-R-Us
Purchase Toy
Download Hot
Wheels app
and play game
Purchases Hot
Wheels online
from Mattel
directly
39. MaestroIQ
SO, THEY MAP THE CUSTOMER JOURNEY
TO UNDERSTAND THEIR CURRENT
CUSTOMER EXPERIENCE.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
41. MaestroIQ
SEATGEEK LOSES A LOT OF CUSTOMERS
AFTER THEY CHECK OUT TICKET PRICES
AND DON’T PURCHASE.
View Ticket Prices View Ticket Prices View Ticket Prices Purchase Ticket
42. MaestroIQ
SEATGEEK PRO-ACTIVELY PUSHED TO
IMPROVE THIS EXPERIENCE.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
44. MaestroIQ
SEATGEEK CAN IDENTIFY CUSTOMERS
WHO DOWNLOADED THEIR MOBILE APP.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
45. MaestroIQ
SEATGEEK REALIZES DEAL SCORE ISN’T
ALWAYS USEFUL FOR CUSTOMERS.
Map Customer
Journey
Identify areas for
improvement in
Customer Journey
Create innovative
customer experiences
to address gaps
Transform
anonymous browsers
into identified
customers
Communicate
relevant experiences
to the identified
customer
46. MaestroIQ
SEATGEEK IDENTIFIED WHEN TO
COMMUNICATE THE DEAL SCORE
EXPERIENCE.
View Ticket Prices Browse Concerts Browse Concerts Purchase Ticket
Purchase Ticket
47. MaestroIQ
AGENDA
Fall of Product-Centric Innovation and Rise of Customer
Experience Innovation
How to optimize the Customer Journey
Insurance Case Study
Q&A
59. MaestroIQ
OSCAR EXTENDS THEIR SERVICE BEYOND
THE PURCHASE WITH NEW VALUE-ADD
DIGITAL EXPERIENCES.
Oscar Experience Video
60. MaestroIQ
EXTEND THE PHYSICAL DOCTOR VISIT
INTO A DIGITAL EXPERIENCE.
Trigger: Getting Sick Find Doctor on Oscar Book Doctor Visit Visit Doctor
61. MaestroIQ
EXTEND THE OSCAR EXPERIENCE FROM
HELPING WHEN YOU’RE SICK TO
PROMOTING STAYING HEALTHY.
Live healthy life Trigger: Getting Sick Use Oscar Visit Doctor
63. MaestroIQ
CHALLENGE IS BUSINESSES DON’T KNOW
HOW TO CREATE AND COMMUNICATE AN
INNOVATIVE CUSTOMER EXPERIENCE.
According to the Forrester Study, 85% of
firms do not have a systematic approach to
create a differentiated customer experience.
64. MaestroIQ
THERE IS A BIG SHIFT OCCURRING AND
THOSE THAT DON’T TRANSITION WILL BE
EATING DUST.
Notes de l'éditeur
Intro
Thank Wharton
DK to NBC Answer the Question – how do we compete in this world
Sunday Story of Marlows and Sons and then wine store.
Conclude:
It’s the emotional connection from these experiences that keeps me loyal and coming back versus the Whole Foods down the line.
The challenge for businesses at your scale though is how to replicate that intimate experience at scale – but it's also your opportunity to crush competitors and jump start rapid growth
SAY SPECIFICALLY THE FALL OF PRODCUT AND WHY CX IS CRITICAL
I’ll first provide some context around why customer experience is more important than ever
Then talk about how businesses are operationally this movement
Then conclude w/ two specific case studies – one from Insurance and the other from Financial Services
Mention Oliver Wyman as a top consultancy
In recent history, businesses would compete on product innovation and then marketing the bejeezus out of the product – it was about the price of the product, features,
Run through bullet points.
In conclusion, this product-centric approach to innovation, differentiation, and marketing is not going to drive meaningful growth going forward.
Be more concise , structure , and clear with the points. It’s to rantish/stories.
-----------------------------------------------------------------------------------
Prodcut Centric:
Transactional
Maximize # of cars sold per month
Try to offer discounts to create urgency
DOESN’T WORK b/c customers have options and are more informed
Become trusted advisor
In a product-centric approach, the support rep does not have a motivation to provide the best support. Support is considered a cost that cuts into the product’s margins and so Support is incentivized to minimize time w/ the customer, to minimize costs, and maximize product margins. IF the customer was angry, she could scream at the phone and to her 5 friends but she didn’t have a big enough voice to make damage the brand’s reputation and future sales from other potential customers who hear about this.
However, now the customer is empowered now to have a voice that gets amplified on social media. And the customer can easily switch to pizza hut. So, support is not only forced to tend to the customer’s needs but figure out how to turn a frustrated customer into a delighted one.
This example above is someone complaining about their dominoes pizza order on Twitter – Read tweet
Dominoes responds – read tweet.
Dominoes understands that creating an amazing customer experience via support is critical.
Marketing, Sales, and Customer Support are customer-facing departments that encompass the customer experience. A website is part of marketing.
Each Marketing interaction a customer experience that can delight a user and build loyalty, and drive growth.
So marketing is a revenue generator.
It’s a big and difficult transition to go from retrain your marketing team to think like a revenue generator than a cost center.
Instead of minimizing acquisition cost, they need to maximize lifetime value. So changes incentive structures and re-trains skill set
Same w/ support – retrain support to think like a revenue generator instead of minimizing costs. Re-incentivize
Sales has always been viewed as a department that drove top-line growth.
However, the product-centric mindset in sales is changing from being transactional and optimizing the # of products sold per sales rep to how do I maximize the lifetime value of each customer.
This means re-training a sales staff on sales practices and re-structuring sales incentive packages. It’s a big deal!
The customer journey encompasses every customer experience generated by either sales, marketing, or support and as the name ‘journey’ implies, these experiences happen over time – could be weeks to years depending on what business we are talking about.
Ultimately, you want to optimize every single customer experience and if you do that, you optimize the customer journey, you will create an emotional connection w/ your customer that leads to further long term business and loyalty.
Now, lets talk about how some brands are actually OPTIMIZING THE CUSTOMER JOURNEY it and what technology partners they use to help transition to this new world.
The first step is:
0) Map the current Customer Journey b/c if you don’t know your current experience, how do you know where to improve
Identify where negative customer experiences, positive customer experiences, and where you’re not even having an experience with the customer and even leverage customer feedback to get a better understanding
2) Create Innovative Customer Experiences, which we’ll talk about w/ examples
3) Leverage these innovative experiences to transform anonymous browsers into known shoppers
4) Finally, Communicate via Marketing, Sales, Support with helpful information to these identified shoppers
We are going to walkthrough the framework with Walgreens as an example first. They are doing very innovative things around the CX.
Walgreen has a huge pharmacy business. They realized that they were only building relationships with customers in the store when they wanted to re-fill a prescription. They wanted to extend where they could build a relationship with this customer to anywhere outside of the store.
So their mobile app lets you scan your prescription from anywhere and than pick it up in the store. They also added features where you can pick up photo prints, browse and shop products, redeem coupons. Lets see how we can improve the mobile app experience.
The first two steps are skipped the most often.
Before you can improve our customer experience, what do you need to know first?
You’re CURRENT CX and Mapping the important customer journeys enables you to do that.
When you ask people if they know their current customer journeys, they answer is NO.
Worse, they will say they have a ‘Funnel Optimization’ team – a funnel is the EXACT opposite of your customer experiences.
The Funnel represents your internal process of how a customer should move through your system and the Customer Journey represents how the customer is ACTUALLY moving through your system.
So there is a major re-education component involved when talking to brands about this concept.
They observe this prominent customer journey by analyzing their behavioral data
Once you create the map, you can use analytics about the customer journeys to identify:
1) What experiences are positive so you can communicate those to other customers and in what context they are helpful, so you know when to communicate them
2) What experiences are negatives so you can improve upon those
3) And where you don’t have any relationship with a customer, so you can identify where you need to build one.
As I mentioned, Surveys about particular experiences provide great qualitative feedback to better get into the shoes of a customer.
Explicit Survey Data and Implicit Behavioral Data should be looked at together and these are two phenomenal partners that can help generate customer feedback at scale.
With the Mobile App
These partners will help you map your journeys.
It is primarily qualitative and intuition-based though. This isn’t the medium to go into these in detail but happy to speak more about them another time.
We help you map the journey too.
It is primarily quantitative based on analyzing your customer behavioral data and again, this isn’t the medium to go into these in detail but happy to speak more about them another time.
Once you’ve identified where to improve, we need to create digital experiences to address those areas.
And these innovations are unique to each brand. I’ll walk through some examples:
Once you’ve identified where to improve, we need to create digital experiences to address those areas.
And these innovations are unique to each brand. I’ll walk through some examples:
Creating these Digital Experiences not only improve the customer experience in various points along the journey, it ALSO helps you enables you to transform an anonymous customer into an identified customer.
And this is critical because you need to identify your customer in order to keep building a relationship with that customer going forward.
When someone downloads and uses the McDonalds Mobile App, McDonalds now has a 1:1 connections with that customer whereas before, McDonalds had no idea who bought a burger that day. They just knew the # of burgers sold per day.
The same goes with Mattel – they didn’t know who bought their toys in Toys-R-Us but they developed an innovative customer experience that lets them re-connect with the customer to keep building that relationship in the future.
Now you’ve identified who your customers are and you have the capabilities to communicate them.
To do communicate effectively, you need to take your understanding of where is your customer in their journey with your brand and what are their needs at that moment in time.
Based on those needs you need to communicate a customer experience that helps solve those needs.
Once you’ve identified where to improve, we need to create digital experiences to address those areas.
And these innovations are unique to each brand. I’ll walk through some examples:
Zendesk helps automate customer support workflows
Talk desk helps automate call center workflows
ExactTarget and Adobe help automate certain marketing workflows
Mattel’s products range from Barbie to Hot Wheels and these products are often sold through non-Mattel stores like Toys-R-Us.
In those cases, Mattel doesn’t have any direct relationship with the customer.
So Mattel was trying to figure out how it could build a relationship with their customers.
The first two steps are skipped the most often.
Once you’ve identified where to improve, we need to create digital experiences to address those areas.
And these innovations are unique to each brand. I’ll walk through some examples:
When someone buys a Hot Wheel, they can now scan a QR code on the back of the box to download a mobile app that lets a kid play a digital racing game with the car they bought.
This mobile app experience creates a 1:1 customer experience post-purchase that will serve as a foundation to continue to build a relationship w/ that customer going forward.
Now you’ve identified who your customers are and you have the capabilities to communicate them.
To do communicate effectively, you need to take your understanding of where is your customer in their journey with your brand and what are their needs at that moment in time.
Based on those needs you need to communicate a customer experience that helps solve those needs.
The first two steps are skipped the most often.
They lost vast majority of losers at this first step – SG learned from comparison shopping.
Once you’ve identified where to improve, we need to create digital experiences to address those areas.
And these innovations are unique to each brand. I’ll walk through some examples:
SeatGeek is a ticketing experience like StubHub.
SeatGeek knows that consumers comparison shop to find the best deal before buying a ticket so SeatGeek wanted to proactively help customers with that experience.
They created DealScore which uses sophisticated algorithms to determine if a ticket is a good or bad deal for the consumer.
SeatGeek marketers understands that Deal Score is most relevant when someone is actually starting to comparison shop so they must communicate this Deal Score innovation at that moment. This is customer experience improvement is pre-purchase.
Now you’ve identified who your customers are and you have the capabilities to communicate them.
To do communicate effectively, you need to take your understanding of where is your customer in their journey with your brand and what are their needs at that moment in time.
Based on those needs you need to communicate a customer experience that helps solve those needs.
They lost vast majority of losers at this first step – SG learned from comparison shopping.
What I’ve talked about up to this point isn’t unique to retail and e-commerce.
I’m going to show you how this applies to the world of Insurance.
Play Video:
What is the core product Oscar offers customers? Insurance Plans
What do they talk about last in this entire video? Insurance Plans
90% of the video is about Oscar’s various customer experience innovations surrounding their core product – the insurance plan.
We’ll walk through this in more detail but Oscar really embraces the future of customer experience as a differentiator but I’ll share an area they can improve, as well.
Oscar’s first goal is to get customers who hit the Oscar website to eventually set up a 10-minute phone call where they fill out the final paperwork to set them up w/ an Insurance Plan.
As you can imagine, each consumer goes through a unique customer journey before setting up that phone call.
Oscar knows that consumers want to know how accessible doctors, drugs, and hospitals are in their local area or the areas they might visit when deciding on an health insurance provider.
So they created an accessible, easy-to-use, visual, and highly informative tools to collect that information called ‘Doctor Finder’.
By mapping the Customer Journey, Oscar can understand at what points in the journey people use the Doctor Finder and find it most helpful. Then, they can take that insight and create a strategy to properly communicate the value prop of the doctor finder to prospective customers so they can enjoy the positive customer experience.
However, Oscar does not have a good way of integrating this Doctor Finder customer experience into a way of identifying the customer – which is a gap because they can’t address future needs for this anonymous customer.
Oscar puts zero barriers to create a customer account – they don’t force a customer to commit to anything.
This is brilliant in its simplicity b/c now Oscar can identify that customer by their account, understand that customer’s journey, and then create a highly personalized marketing and sales experience.
Oscar knows that consumers want to know pricing information when deciding on a health insurance provider.
So they created an accessible, easy-to-use, and PERSONALIZED pricing calculator that lets a customer get a quote on different insurance plans.
By mapping the Customer Journey, Oscar can understand at what points in the journey people care about finding Quotes. Then, they can take that insight and create a strategy to properly communicate this customer experience to prospective customers so they can enjoy the positive customer experience.
Again, Oscar does not have a good way of integrating this Quote Calculator customer experience into a way of identifying the customer.
A suggestion for Oscar is, If we see users using this customer experience multiple times, let customer save their different quotes to an account.
tion
And what do you know?
eSurance does this! See where it says “View or Modify your Saved Quote”.
There are no digital experiences for this part of the process, probably b/c they assume it’s a near 100% completion rate.
When traditional insurance companies would have stopped pro-actively supporting the customer after the sale, Oscar bucks the trend to ensure each customer stays a customer for life.
This will remind of you the Mattel example from earlier.
When a customer is feeling under the weather, it will trigger an engagement with Oscar, which helps you find a doctor. Once you book a doctor visit, Oscar does not control the doctor visit experience.
Oscar pro-actively tried to figure out how it could improve the post-booking doctor experience though. For cases when actually visiting a doctor is overkill, Oscar enables an innovative customer experience to communicate with the doctor through its mobile app. It’s light weight experience that saves the customer time traveling to the doctor and the hassle of waiting in waiting room.
Oscar needs to communicate this customer experience where it makes most sense in its customers’ journeys.
In the previous example, the Oscar experience is triggered when a customer feels ill. For the majority of people, people are ill a small percentage of their overall life. (knock on wood) That’s a huge gap in their current customer experience.
So Oscar is pro-actively trying to extend it’s customer experience into the healthy parts of our lives. Their app tracks your activity and rewards you for healthy decisions.
In a Product Centric World – all marketing and online experiences would be pushing plans, benefits of plans, and pricing of plans.
Oscar understands there are customer journeys between each of these lifecycle phases and it needs to create innovative customer experience across the entire spectrum that continue to help the customer with their needs.
They are areas for improvement that we mentioned and they need to not only create these customer experiences focus on communicating them the right way.
We talked about Oscar and even Oscar has many ways to improve. Most businesses aren’t even this far and the reason is b/c it’s incredibly challenging to innovate on the customer experience. Why?
Most business leaders don’t have as systematic framework and the software solutions w/I that framework to innovate the customer experience.
The transition from product innovation and product marketing and product support TO Customer experience innovation, marketing, and support
IS VERY REAL AND VERY BIG. Those that make the transition swiftly will thrive and those that don’t will be left behind.