Understanding the financial value of customer experience: from regulatory pressure to ROI With the huge push factor of regulatory pressures forcing utilities professionals into improving customer experience, it is critical to focus upon the pull factors of a customer experience strategy for increasing profit. Maximising the true value of the customer experience industry Investing in your customer experience strategy to improve customer service and maintain existing customers Developing a competitive edge through customer experience. What plans and strategy do you need in place? Professor Dr Phil Klaus Lecturer and World Leading Expert in Customer Experience

1. Understanding the Financial
Value of Customer Experience:
From Regulatory Pressure to
ROI
Prof. Dr. Phil Klaus
www.profdrphilklaus.com
@profdrphilklaus
profdrphilklaus@gmail.com
Customer Experience Transformation: Utilities
Birmingham June 25th, 2014
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2. Agenda
• Your most burning questions.
• Numbers and Sense.
• How to manage the most profitable CX program.
• Technology enhances CX.
• Summary.
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3. CX – what is it?
• 491,000,000 hits in 0.49 seconds
• 1,400,000 associated members @
• Great customer experiences?
• CEOs 80%
• Their customers 8%
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4. Defining CX
BLOGS
44 Customer Experience Blogs
You Should Be Reading
The 10 Best CX Blogs
193,000,000 hits
SOLUTION
PROVIDERS
EXPERTS ?
56,700,000
C2C
EVERYTHING?!
= NOTHING?!
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5. What do you think…?
• CX lacks strategic impact.
• No one knows what exactly CX is.
• CX is a tactical rather than a strategic objective.
• Technology is the main driver for CX.
• CX is the next competitive battleground.
• CX is nothing more that the Emperor's new clothes.
• Academic CX research is relevant

6. Your most burning
questions…
• Linking CX to profitability
• Best and next practice examples
• Latest trends
• Successful management

7. Linking CX to profitability
• Linking CX practices and strategies to profitability.
• 311 companies worldwide.
• 5 dimensions of practice Definition; Governance;
Management; Policies; Measurements; Expectations;
Challenges
• 3 types of CX practice: Preservers, Transformers and
Vanguards differ across all 5 dimensions
• How do they differ in practice?
• Which is the most profitable one?
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8. CX Management Practices

9. Linking CX to profitability
Ranking Type Most compelling reason Performance
1.
2.
3. 100%

10. Linking CX to profitability
Ranking Type Most compelling reason Performance
1. Vanguards Holistic Strategy Execution 600%
2. Transformers Caught in the middle 250%
3. Preservers Lack of measurement 100%
• Generalizability across sectors, countries, industries, firm size.
• How to become a vanguard?
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11. How to become a vanguard…
• Top three based upon influence on profitability
• Measuring CX – Using EXQ
• CX from the customers’ viewpoint
• CX delivery – the crucial role of employees
• EXQ as ‘Troyan Horse’

12. The influence of technology
• Technology as enabler, not the focus of activities.
• Successful Online and Multichannel CX
management
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13. The future is here…
• Mass 1 to 1
• Gender, age, time, location recognition
• Future: Interest sensing via mobile – included in
hardware
• Geo-Fencing text advertising based upon profile
• Recognizing the customer’s “state of mind”
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14. Your most burning
questions…
• Linking CX to profitability
• Best and next practice examples
• Latest trends
• Successful management

15. More free resources available
to you…
• Gain free access to cutting edge CX research from the
worldwide leading researchers by joining our Linkedin
group
• http://tinyurl.com/marketingscholarsonLinkedIn
• https://www.youtube.com/watch?v=6eshTkeFZGs
• Get the book
• http://tinyurl.com/MeasuringCX

16. Conclusions
• CX – the next competitive battleground.
• The business case for CX. ROI versus Dynamic
Capabilities.
• How to become a vanguard!
• More than hope, there is evidence, the future is
bright and exciting.
• Let’s talk – ProfDrPhilKlaus@gmail.com
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