THE CUSTOMER GAP

VIDEO LINK: http://youtu.be/xSSDeesUUsU

WHAT IS THE CHANGE?
QUESTION

2min
QUESTION:
EVERYBODY IS TALKING ABOUT CHANGE,
BUT WHAT IS CHANGING?

THE CUSTOMER GAP

According to a recent global study of 1,500 CEOs conducted by IBM, the biggest
challenge those CEOs face is the so called complexity gap. Eight out of 10 expect
the business environment to grow in complexity, but fewer than half feel prepared
for the change. The research also reveals that CEOs see a lack of customer insight
as their biggest deficit in managing complexity. They prioritize gaining customer
insight far above other decision-related tasks and rank “customer obsession” as
the most critical leadership trait.
!
SOURCE: An Anthropologist walks into a bar...
Christian Madsbjerg and Mikkel B. Rasmussen
HBR March 2014

EXAMPLES
CUSTOMER GAPS

2min
QUESTION:
WHAT IS THE GAP BETWEEN YOUR
ORGANIZATION AND YOUR CUSTOMERS?

THESE PEOPLE AREN'T EVEN TRYING TO DISRUPT YOUR
BUSINESS MODEL, YOU ARE JUST COLLATERAL DAMAGE
!
- EDDIE JOON, BIG BANG DISRUPTION, HARVARD BUSINESS REVIEW -

2min
QUESTION:
WHAT IS THE MOST DANGEROUS THING (IN TERMS OF
COMPETITION) SOMEONE OUTSIDE YOUR INDUSTRY IS
DOING RIGHT NOW - IN TERMS OF POTENTIALLY
DISRUPTING YOUR MARKET?

THE THREAT:
INNOVATION IS
SLOW EXPENSIVE
UNCERTAIN
“innovation is a disease”

5 YEARS - TO GET A NEW BUTTON IN MICROSOFT WORD
6 MONTHS TO GET A NEW COFFEE MACHINE IN THE OFFICE (URBAN MYTH)
20 YEARS TO BUILD A HIGH VOLTAGE ELECTRICAL POWER LINE
8 MILLION EUR TO LAUNCH A SALMON HOTDOG

MARKET VALIDATION COST= $1150

KILL IDEAS
IN A WORLD WHERE THE MARKET COST OF TESTING NEW IDEAS ARE CLOSE TO ZERO.
YOUR NUMBER ONE JOB BECOMES TO HARVEST
ALL IDEAS AND THEN KILL AS MANY OF THEM AS
CHEAPLY AND QUICKLY AS POSSIBLE

MANAGEMENT
STRATEGY
DECISIONS
CUSTOMERS
making decisions is places as far away as possible from where decisions need to be made

2min
QUESTION:
WHAT ARE THE SPEED BUMPS
HINDERING US FROM RAPID
INNOVATION?

input / output
innovation is the output - learning is the input

PART 2

MACHINES ARE LEARNING
FASTER AND FASTER.
WHY AREN’T WE?

STRUCTURED
STRUCTURED
DATA
EMPLOYEES
UNSTRUCTURED
DATA
SENSEMAKING
CREATING A CULTURE WHERE EMPLOYEES
CONTINUOUSLY FUEL THE ORGANIZATION
WITH IDEAS AND INSIGHTS
DATA
INVITING AND INVOLVING
CUSTOMERS IN THE CO-CREATION
OF OFFERINGS
EXISTING AND ACCESSIBLE OWNED DATA
FROM SPREADSHEETS OR DATABASES
UNORGANIZED DATA. EXTERNAL SOURCES.
OFTEN OUTSIDE OF THE TRADITIONAL FIELD
OF VIEW OF RESEARCH.
THE HUMAN SCIENCE APPROACH TO
UNDERSTANDING CUSTOMERS. OBSERVING
WITHOUT HYPOTHESIS. A SITUATIONAL APPROACH
CUSTOMER
CENTRICITY
RAPID
EVALUATION
LAUNCHING AND LEARNING FROM IDEAS LIVE IN
THE MARKETPLACE TESTING THEM ON CONSUMERS
AS REAL IDEAS/OFFERINGS
CO-CREATION
UNSTRUCTURED
DATA
CUSTOMERS
CO-CREATION
SERVICES
AND TOOLS
DESIGNING SERVICES IN ORDER
TO COLLECT BRAND NEW TYPES
OF DATA
SOURCES OF
LEARNING:

2min
QUESTION:
WHAT DATA WOULD BE MOST VALUABLE
TO US, AND WHY?

VIDEO LINK: http://youtu.be/a6cNdhOKwi0
THIS IS THE FUTURE OF THE INTERNET, IT'S ALL ABOUT PERSONAL COMMUNICATION.
THERE ISN'T ONE PORTAL OR ONE-SIZE-FITS-ALL WEBSITE, NO COMPANY WEBSITE...

INDIVIDUAL PATHS TO PURCHASE:
In 2012, Google and Shopper Sciences did a study of the purchase
journey of 3,000 different customers in tech, CPG, automotive, and
finance, and literally found 3,000 different paths to purchase.
!
However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that
consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each
point along the way in the order and time that made the most sense to them.
!
In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential
vendor.
!
http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html

THE REASON WE HAVE MASS IS THAT THE COST OF COMMUNICATING TO EACH
CUSTOMER INDIVIDUALLY WAS TO GREAT.
THE BARRIER WAS THE COST OF TECHNOLOGY.
TODAY TECHNOLOGY HAS BECOME SO CHEAP
THAT THERE ISN'T A BARRIER ANYMORE.
TESCO SENDS OUT 5 MILLION INDIVIDUAL CUSTOMER LETTERS EACH YEAR. MASS
IS QUICKLY BECOMING THE GO-TO STRATEGY OF THE PAST.

4,- 4,-

NIKE ID APPLE

TRADITIONAL
CAR INSURANCE

INDIVIDUAL
CAR INSURANCE

2min
QUESTION:
WHAT WOULD THE CUSTOMER GAIN
FROM INDIVIDUAL TAILORING?

The long-term consequence
we need to get back to the drawing board
WWW

"THE BUSINESS CULTURE IS
USING THE WRONG MODEL
OF HUMAN BEHAVIOR. IT IS
GETTING PEOPLE WRONG."
!
"ONCE YOU START TRULY UNDERSTANDING PEOPLE'S
BEHAVIOR, YOU WILL BEGIN TO SEE YOUR BUSINESS
LANDSCAPE WITH A NEW CLARITY. YOU WILL RECOGNIZE
NEW OPPORTUNITIES AND IDENTIFY
THE SOURCES OF OLDER, SEEMINGLY INTRACTABLE
CHALLENGES."
!
- THE MOMENT OF CLARITY -
CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN

"THINK ABOUT CUSTOMER
SERVICES BEFORE YOU THINK
ABOUT THE PRODUCT. SERVICE
PROVIDES A CONTINUOUS SOURCE
OF INCOME. THE PRODUCT IS
WORTHLESS WITHOUT CUSTOMER
EXPERIENCE."
!
- Professor Solomon Darwin, Berkeley

2min
QUESTION:
WHO ARE YOUR CUSTOMERS?

THE JOB-TO-BE-DONE

VIDEO LINK: HTTP://YOUTU.BE/F84LYMES67Y

2min
QUESTION:
WHAT PEOPLE ARE DOING BECOMES MORE
IMPORTANT THAN WHO THEY ARE.
WHAT JOB IS HAPPENING IN PEOPLES
LIVES THAT CAUSES THEM TO HIRE YOUR
PRODUCT?
- HOW DO YOU IMPROVE THE PRODUCT?

COMPANIES ROUTINELY INVEST IN TECHNOLOGY, AND TOO
OFTEN FEEL THEY GET ROUTINE RESULTS. TECHNOLOGY’S
PROMISE IS NOT SIMPLY TO AUTOMATE PROCESSES, BUT TO
OPEN ROUTES TO NEW WAYS OF DOING BUSINESS.
!
78% of respondents, achieving digital transformation will become critical to their organizations within the next two years.
However, 63% said the pace of technology change in their organization is too slow.
The most frequently cited obstacle to digital transformation was “lack of urgency.”
!
MIT Sloan Management Review
http://sloanreview.mit.edu/projects/embracing-digital-technology/

EXISTING KPI's [impossible to measure accurately and difficult to se the relevant value from]
45% 25% 15% LEADS
45% should be more
positive to the brand
50% 70%
25% should be more
interested in booking a new
trip
(revenue and redemption)
15% shall have knowledge
about the advantages of
the bonus program incl.
Partnerships.
Create new leads/members
to bonus program
50% of the target group
should have read the
magazine/content
70% have a high liking
SUGGESTED ADDITIONAL DIGITAL KPI's
CLV SHARE
OF FLIGHTS
(LOYALTY)
FLIGHTS
BONUS
PROGRAM
USAGE
Increased Customer Life
Time Value (membership)
NEW
BUSINESS
MODELS
SALES
Increased loyalty (of the times
you fly, how often do you fly with us)
Increased number of flights
(travels) pr. customer
(proactivity)
Increased usage of bonus
points and partners
Revenue from new digital
business models and
number of partnerships
Sales / growth
LEADS
Create new leads/members
to bonus program