Customer Experience Matrix Mechanics and Geeky CRM Cx CEM

Copyright 2014 ClientXClient LLC. www.clientxclient.com. 908.542.1134 Share & Enhance & Share 1
The CxC Customer Experience Matrix Combines Customer & Business
Perspectives, Cost, Processes

Customer Experience MatrixTM:
Repair DisposeSelection SupportUsePurchaseAwareness
Customer Process
x
x
x
xxxx
x
x
x
x
x
xxxx
xxxxx
xxx
xx
x
xx xxxx
Business
Process

Community
Outdoor
Affiliate
TV
Radio
Newspaper
Direct Mail
Email
Web
Call Center
Signage
Events
Retail
Billboard
Customer Process
x
x
x
xxxx
x
x
x
x
x
xxxx
xxxxx
xxx
xx
x
xx xxxx
Channel
30% 90%25% 70% 20% 15%$ $ $ $ $ $ $=LTV

Community
Outdoor
Affiliate
TV
Radio
Newspaper
Direct Mail
Email
Web
Call Center
Field Sales
Events
Retail
Branch
Customer Process
x
x
x
xxxx
x
x
x
x
x
xxxx
xxxxx
xxx
xx
x
xx xxxx
Channel
30% 90%25% 70% 20% 15%$ $ $ $ $ $ $=LTV

Strategic Target Focus Areas
Web Visits
Gross
Enrolled
Net
Enrolled
Fall System
Client Counts
with
Projections
7,308,276 24,170117,637428,293 36,568
12,398
0.5003%1.6096%5.8603% 0.3307%
0.1696%
1. Increase “Attended” 8,500 (.XX%) via XX follow-up contacts (calls,
letters, email) to “Responded Select” growing net enrolled XXX (use
funnel formula)
2. Grow “Gross Enrolled” via XX follow-up contacts (calls, letters, email) to
“Responded Select” growing net enrolled XXX (use funnel formula)
3. Reduce Withdrawals XXX via XX follow-up contacts (calls, letters, email)
to “Gross Enrolled and Withdrew win back” growing net enrolled XXX
(use funnel formula)
4. Grow Net Enrolled via XX follow-up contacts to (calls, letters, email) to
“Attended” growing net enrolled XXX (use funnel formula)
42
3
1
3 Pg Action Registered
Cancelations
Immediate Term: Phase I Initiatives

Simple Customer Value Growth ROI Calculator
(Top Line Revenue)
No 1. Grow Response Rate 0.000%
Yes 2. Grow Registered Rate 1.000%
Yes 3. Grow Enrollment Rate 1.000%
Yes 4. Reduce Withdrawal Rate -1.000%
First Year Benefit $2,650,178.15
Based on annual projections this chart calculates ROI Benefits of
increased conversion performance at each stage of lead
conversion process
This is the first year return expected with
$400,000 investment. $10.3M three year
return includes list and mail efficiencies
realized in year 2 & 3.

1. How do you get businesses to recognize the value of customer
experience? How do you define customer experience?
2. How do you help businesses/your business create process and discipline
around developing excellent customer experiences?
3. How do you make the right choices around customer experience
design? How do you know you are doing the right thing?
1. Designing experiences that exceed expectations
2. Distinguish where the function of customer experience
contributes to process-sales, communications, research
3. Distinguish key touch points of the design
4. Avoid common mistakes
5. Designing with specific motives,
6. And objectives that can easily be adapted and changed
Questions Answered By CxC Customer Experience Matrix

Scenario Example:
Situation Description
• Business Context
– direct marketing
– 600 products with 50,000 promotions/year
– control issues

Situation Description
• Promotion Spending Decisions
– volume:
• high number of decisions
• quick response required
• many alternatives to consider
– complexity
• many types of promotions
• executed by separate groups
• impact multiple departments

Customer Process
x
x
x
xxxx
x
x
x
x
x
xxxx
xxxxx
xxx
xx
x
xx xxxx
Business
Process

LTV Calculation
• Data Available
– transaction records
• date
• customer ID
• product ID
• promotion ID
• revenue
• promotion cost
• product cost
Transaction Type:
First Order= earliest date
per Customer ID
Replacement Order =
other order where
(product ID = First Order
product ID)
Cross Sell Order = all
others

LTV CalculationTransactio
Cross Sell
Order
Replacement
Order
First Order
Product
Cost
Marketing
Cost
Revenue
Order
Count
Value Type
xxxxxxxxxxxx
xxxxxxxxxxxx
xxxxxxxxxxxx

Total LTV
First Order Promo Cost
Replacement + Cross LTV
Replacement Product Cost
Cross Sell LTV
Cross Sell Promo Cost
ROI Calculations
First Order ROI =
Replacement ROI
=
Cross Sell ROI=

Calculation Comments
• double counting is OK
• treats each ROI as independent of others
(is best guess unless know otherwise)
• particularly questionable for Replacement
ROI
• apply discount rate to account for risk
• still need to estimate incremental impacts
This is really,
really, really
Important!

Estimating Incremental Impact
Square Root Rule:
change in revenue =
square root of change in promotion cost
• captures diminishing returns
• replace with better info if available

Preparing the Analysis
• set program parameters:
– an increase / decrease test (e.g., 20%)
– minimum incremental ROI to consider
– minimum aggregate LTV to consider
– ranking metric: ROI or LTV?
– Do both and more – We have big data
capabilities – create more derived values
representing multiple strategies and scenarios

• calculate actual ROIs for each promotion
• calculate average ROIs across all
promotions
– promotions with below-average ROI are
candidates for reduced investment
– promotions with above-average ROI are
candidates for increased investment

• calculate estimated incremental results for
each candidate
• filter based on thresholds
• rank on selected metric and report

Analysis Results
• Ranked opportunities by 6 action types:
– acquisition increase
– acquisition decrease
– replacement (product cost) increase
– replacement (product cost) decrease
– cross sell increase
– cross sell decrease
• Estimated impact of each change

Community
Outdoor
Magazine
TV
Radio
Newspaper
Direct Mail
Email
Web
Call Center
Field Sales
Events
Retail
Dealer
Customer Process
x
x
x
xxxx
x
x
x
x
x
xxxx
xxxxx
xxx
xx
x
xx xxxx
Channel
30% 90%25% 70% 20% 15%$ $ $ $ $ $ $=LTV
+Invest
+Divest
+Invest+Invest +Invest
+Invest+Invest
+Invest
+Invest
+Invest
+Invest+Invest
+Invest
+Divest
+Divest
+Divest
+Divest
+Divest
+Invest+Invest

Sample Analysis - Summary

Sample Analysis - Drilldown

Actual Findings
• Estimated 10% increase in company LTV
vs. current base promotions
• Opportunities beyond current base would
produce additional benefits
• Rules and process transparency spawns
innovation

Next Steps
• move beyond promotion keys to specific
decisions e.g. keyword analysis
• more detailed LTV models, more precise
estimates of incremental results
• automated execution of recommendations
• more frequent data feeds
• analyze results of accepted
recommendations

Business Rule Perspective
Rules embedded in system:
1. increase or decrease investment in
programs with above or below average ROI
2. limit consideration to programs above
specified ROI and LTV thresholds
3. rank opportunities based on LTV or ROI
4. could also have rule to terminate programs
failing to meet specified goals
5. could consider calculations to be rules
OK, today
This is even
More
Important!

Rule Management Framework
• capabilities
– rule complexity
– scalability / response time
– integration across rules
– integration across systems
– Novice user tools, visualization, testing
• administration
– rule definition (processes, skills required, security)
– rule verification
– rule change management
• value measurement
– utilization reporting
– results reporting
– cost / benefit analysis
– Process:Rule Visualization
This is what
We should
Talk about
908.542.1134

Applications vs. Framework
• capabilities
– rule complexity: low
– scalability / response time: high
– integration across rules: high
– integration across systems: low
• administration
– rule definition: via programming
– rule verification: via programming
– rule change management: via programming
• value measurement
– utilization reporting: none
– results reporting: possible
– cost / benefit analysis: possible

Lessons Learned
• rule-based analysis can make business
intelligence actionable
• even simple rules can identify major
opportunities
• use pre-calculations to make complex decisions
with simple rules
• LTV is long-term measure; must also consider
immediate profits, cash flows
• framework enables continuous improvement
• framework provides transparency for greater
business participation

Thank You!
Michael R Hoffman
Client X Client
mrhoffman@clientxclient.com
www.clientxclient.com
908-542-1134

Usual Response to “We are already doing this” – (white space is opportunity)
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14.Community
8. $Collection
11. Use
3. Identification
Geography
Digital
Store
3rd
Party
Direct
Community
*Yes, Big IOT Opportunity with CxCFramework

Geography
Digital
Store
3rd
Party
Direct
Community
20
20
20
2020 20
20
20
20
20
20
20
20
20
20
2020
20
20
20
20
20
20
20
20
20 20
20
20
20
2020
20
20
20
20
20
20
20 20
20
20
20 20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20 20
20
20 20202020
20 20 20
20 20 20
20
20 20
20 20
20
20
20
20
20 20
20
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14.Community
8. $Collection
11. Use
3. Identification
Customer Optimization Wizard – Dashboard for Performance Management
Numbers in each cell represent: customers, potential revenue, costs (per
and aggregate), customers at risk, customers in process, forecast closed
sales, forecast lost customers, forecast referrals, simulation under market
conditions.

Geography
Digital
Store
3rd
Party
Direct
Community
20
.
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14.Community
8. $Collection
11. Use
3. Identification
Every Interaction Cell Measures Cost and Revenue Opportunities
Interaction Cost
Actual Revenue
Potential Revenue
(I used zoom out from one cell to represent some information contained
in each cell)

Geography
Digital
Store
3rd
Party
Direct
Community
20
20
20
2020 20
20
20
20
20
20
20
20
20
20
2020
20
20
20
20
20
20
20
20
20 20
20
20
20
2020
20
20
20
20
20
20
20 20
20
20
20 11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20 20
20
20 20202020
20 20 20
20 20 20
20
20 20
20 20
20
20
20
20
20 20
20
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14.Community
8. $Collection
11. Use
3. Identification
Alerts indicate opportunity, risks, activity that is outside of plan parameters. Alerts require
attention to exploit opportunity, avert risk, or amplify downstream resources, reduce upstream
flow, divert/adjust activities (inventory, staff, promotions, pricing). Alerts are delivered according
to manager responsibility and controls. The Customer Optimization Wizard may invoke corporate
standard policies and make recommendations based on probabilistic outcomes (upstream and
downstream scenarios)
ALERTS

Geography
Digital
Store
3rd
Party
Direct
Community
20
20
20
2020 20
20
20
20
20
20
20
20
20
20
2020
20
20
20
20
20
20
20
20
20 20
20
20
20
2020
20
20
20
20
20
20
20 20
20
20
20 11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20 20
20
20 20202020
20 20 20
20 20 20
20
20 20
20 20
20
20
20
20
20 20
20
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14.Community
8. $Collection
11. Use
3. Identification
Move bar along bottom to see impact scenarios for current customer flow. Adjust parameters for
multiple scenarios and set independent performance threshold ranges at multiple nodes to test
complex market scenarios
Resource, Opportunity, Time
Scenarios
week 1 week 8 week 9 week 10week 6 week 7week 5week 2 week 3 week 4

Community
Geography
Digital
Store
3rd
Party
Direct
Community
Awareness
Information
Negotiation
Selection
Contract
Care/Support
Logistics
Delivery
Acceptance
Repair
$Collection
Use
Identification
The Customer Experience Matrix requires a customer-involved contact.
(business to business)
C. Client contacts business acquaintances, clicks on
“business services email”; calls 1-800 Biz Info”;
schedules in-person meeting; negotiates 3 month
contact; finances expense for 12 months through third
party; contacts customer service for “emergency”.
C C
CC C
C
C
C
C
C
C CC
CC

Customer Experience Interface: hover over cell for information
Activities
Yield
Metrics
System
Owner
Data
Administration
System
1. Awareness
2. Information
5. Negotiation
4. Selection
6. Contract
12. Care/Support
7. Logistics
9. Delivery
10. Acceptance
13. Repair
14. Community
8. $Collection
11. Use
3. Identification
Monitor Key Performance
Indicators for Every
Interaction

Thank You!
Michael R Hoffman
Client X Client
mrhoffman@clientxclient.com
www.clientxclient.com
908-542-1134

Customer Experience Matrix Mechanics and Geeky CRM Cx CEM

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (6)

Similaire à Customer Experience Matrix Mechanics and Geeky CRM Cx CEM

Similaire à Customer Experience Matrix Mechanics and Geeky CRM Cx CEM (20)

Plus de Client X Client

Plus de Client X Client (20)

Dernier

Dernier (20)

Customer Experience Matrix Mechanics and Geeky CRM Cx CEM

Notes de l'éditeur