Multi Channel Customer Experience - Challenges Practices Future
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Jeremy Cox, principal analyst and head of CRM research and insights at Ovum discusses the challenges, best practices and exciting future of multi-channel customer experience. View this presentation to get a detailed framework for building out your multi-channel customer service strategy and learn why just social is not enough.
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Multi Channel Customer Experience - Challenges Practices Future
- 1. Multi-channel Customer Experience Challenges, Practices & Future Jeremy Cox Jeremy.cox@ovum.com Directors Club March 6th 2013 1 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 2. THE CHALLENGES 2 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 3. Are you adapting as fast as the world around you? 3 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 4. Technology and business model innovations drive customer expectations and behaviors …and more to come • Low cost Internet travel pioneer UK/Europe 4 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 5. ……and customers have more communications channels increasing complexity of the challenge 52% of consumers use 3 or 4 channels 25% of 22% of consumers use consumers use 1 or 2 channels 5 or more channels Source: Ovum research 5 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 6. Consumer success in resolving issues on the first attempt by channel Source: Ovum 6 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 7. Customers’ ability to use voice, mobile apps, SMS, email, web self-service, web chat, video and social media through a single device is forcing enterprises to rethink their customer service strategies Source: Ovum 7 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 8. A superior customer experience is now one of the top 3 CEO priorities * 8 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 9. BETTER PRACTICES 9 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 10. CRM can help when applied strategically ………………. Strategy Performance development Value Creation Multi-Channel Integration Assessment process: process: process: (impact CX) process: Value Sales Force Customer segment lifetime value analysis Business Integrated Channel Management Customer Shareholder Strategy Receives Results Physical • Business • Value Outlets • Employee Value Vision Proposition • Customer Value • Industry & • Value Competitive Direct Marketing • Cost Reduction Assessment Characteristics Co-Creation Call Centres Value Telephony Performance Organisation Receives Monitoring Customer Electronic / Mobile Virtual • Acquisition Commerce • Standards Strategy Economics • Satisfaction • Customer • Retention Choice & Social Media • Results & KPIs Economics Characteristics • Industry & competitive characteristics Data Repository (the corporate memory) • Segment Analysis Front Office Back Office Granularity IT Systems Applications Tools Applications Information Management Process: Source: Adapted from Adrian Payne & Pennie Frow. Strategic 10 Customer Management: Integrating CRM & Relationship Marketing , Cambridge Press, forthcoming 2013 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 11. Map and understand customer journeys and channel preferences Some best practices 1. Integrate all channels 2. Prioritise first contact resolution & empower 3. Develop a response strategy for social & guidelines 4. Be proactive re issues 5. Create & enable collaborative teams – marketing & support 6. Create Smart, Connected, Interactions 7. Close-loop real-time VOC feedback 8. Provide effective self-service - web/mobile 9. Predictive analytics 10. Find the authentic wow factor Source: Ovum – high level generic consumer example 11 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 12. Seamless continuity of experience across channels marks out the leaders Smart, Connected Interactions (SCI) Source: Ovum SCI Maturity Model 12 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 13. Offering pro-active chat reduces abandonment & secures new business ROI: Captured 40% of the previously abandoned traffic with Chat Spaces & increased sales rate via chat channel by 35% 13 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 14. THE FUTURE 14 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 15. The future of an organization is assured only if it can maintain its relevance to its customers 15 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 16. To be persistently relevant an enterprise needs to work in concert – it’s an enterprise-wide venture 16 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 17. The essence of the customer-adaptive enterprise is a relentless focus on continuous value delivery Recommendations: Do not rely on CEM alone for differentiation 17 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 18. The customer-adaptive enterprise is persistently relevant to its customers creating a sustainable advantage Management & People 18 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 19. People first technology second "There are 22 million disengaged employees that cost the American economy up to $350 billion per year in lost productivity, including absence, illness and other problems that result when workers are unhappy at work." However most importantly, disengaged employees cause customers to do business elsewhere. Source: Gallop 19 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 20. Leaders will orchestrate value through a portfolio of connected platforms & applications Enterprise Social Networking Customers Knowledge Mgt Web & Mobile Self Service Workforce CEM CRM Ecommerce Optimisation Customer Feedback Partners ERP Innovation Digital Marketing Financials Mgt In store SCM Kiosk Project Content Mgt Logistics Mgt Field sales & service Procurement Community hosting Communities Operational BI Predictive Analytics Compliance & Security Example only 20 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 21. Delivering a seamless service to customers through their channel of choice is a major step forward Enterprise Social Networking CEM Customers Knowledge Mgt Web & Mobile Self Service Workforce CRM Ecommerce Optimisation Customer Feedback Partners ERP Innovation Digital Marketing Financials Mgt In store SCM Kiosk Project Content Mgt Logistics Mgt Field sales & service Procurement Community hosting Communities Operational BI Predictive Analytics Compliance & Security Example only 21 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 22. Key messages Make haste with developing a superior customer experience Address the need to innovate continuously Put the wow factor into the experience – it’s emotional And new products, services and business models Create a work environment where people matter and are engaged Get joined up! 22 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 23. "There are only two sources of competitive advantage: the ability to learn more about our customers faster than the competition, and the ability to turn that learning into action fast.” Jack Welch former CEO of GE “On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy... your main constituencies are your employees, your customers and your products.’’ 23 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 24. ‘There will not be sustainable economic value creation if there is no personal development and human value creation at the same time.’ Sir Richard Branson 24 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
- 25. Thank you for listening Jeremy.Cox@Ovum.Com 25 © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
Editor's Notes
- A key Darwinianquestion to ask yourselves is: ‘can you adapt as fast as the world around you?’’Change has always been a fundamental but its far more disruptive and happening at an accelerated rate.It isn’t one thing but a combination of forces creating this maelstrom of disruption:Technology, Business model innovators changing the rules of the game, Power has shifted to the customer and their expectations are risingFirms find it hard to differentiate and no innovation has more than a short head start so firms find themselves competing more and more on price further eroding profit margins.And on top of all that increasingly governments are adding compliance burdens, like running a hundred metres with a rucksack full of rocks. And that’s before you throw in the drag of old legacy systems holding everyone back.
- Technology feeds business model innovation and new entrants have come in over the years across the globe to change the rules of the game.Amongst perhaps the lesser known innovators is Tata Sky in India launched Direct To Home TV only a few years ago and now have 10million subscribers. Within their first 6 months Nielsen benchmarked theirservice capabilities against global peers and TATA Sky came out top! The art of the possible is changing and the more innovative firms are actively exploring how technology can give them a unique or superior relationship with their customers. Amazon has set a high benchmark for the buying experience by which other companies will be judged.First Direct in UK consistently wins customer satisfaction awards and is leagues ahead of other retail banks. and so on…….
- And now customers have more channels of communication to choose from making it a much more complex environment
- CRM can help but only if it is applied strategically and holistically . This framework from Prof Adrian Payne and Pennie Frow, demonstrates a holistic approach.AS you can see its an enterprise-wide concern, not just the ‘front office’ triumvirate of sales marketing and service
- The Business ChallengeNationwide is committed to the Customer Choice Distribution model, which focuses on delivering a superior customer experience in the channel of the customer’s choice. In evaluating their online automotive insurance processes they found that their insurance quoting system didn’t cater to specialty insurance buyers (those with tickets and accidents). Prospective customers were getting lost and never returning to the organization’s site. The abandonment rate was increasing while the customer satisfactionrate was decreasing. The bottom line was that Nationwide was losing customers—both independent consumers as well as insurance agents—to competitors.After an extensive evaluation, Nationwide concluded that agent-assisted service via rules-based proactive chat invitations was the best way to address this challenge. It would enable the company to engage prospective customers before they abandoned the site and help them successfully complete the online specialty insurance quote. Nationwide believed the benefits of this strategy would be stronger customer satisfaction scores—and, most importantly, a significant increase in revenue from specialty insurance customers and insurance agents.This was a new technology implementation, and their project plan required a chat solution that had the ability to:Offer a proactive chat invitation to a Web site visitorEasily manage proactive rules including time, events, and the agent push optionEasily integrate with internal applications, providing agents with a unified customer viewScale to meet expansion requirementsIntegrate with other communication channelsEither host, bring the solution in-house, or a combination of bothShare on linkedinShare on facebookShare on twitterShare on emailMore Sharing ServicesProduct: Moxie’s Chat SpacesIndustry: Financial ServicesDownload Success Story (.pdf)Web site:http://www.nationwide.comBusiness Profile: Nationwide is one of the largest insurance and financial services companies in the world.Business Challenge: Nationwide’s specialty insurance customers were having difficulty finding answers to their inquiries and abandoning the Web site. As a result they were losing prospective customers—both independent consumers as well as insurance agents—to competitors.Solution: Nationwide concluded that agent assisted service via rules-based proactive chat invitations was the best way to decrease abandonment rates, increase customer satisfaction, and add significant revenue from specialty insurance customers.Results:C-sat ratings for the chat experience is 4.08 out of 5.082.3% Net Promoter score captured 30-40% of previously abandoningcustomersCustomer wait time of five seconds and decliningCompletely recuperated associated costs within eight months of roll-outSpaces™ by MoxieAfter extensive vendor evaluations, Nationwide selected and implemented the hosted version of Sales Chat Spaces and created their Nationwide Customer Value Team. The company chose Sales Chat Spaces because it was the best solution to address their immediate business challenges. Additionally, Moxie’s Proactive Chat is a feature of a suite of products that could scale to meet future needs.The Implementation StrategyNationwide understood that it had two groups that, in order for this project to be successful, needed to buy into and support the new technology. The company involved both the Customer Value Team and end users to create the proactive chat invitation rules, internal routing rules, and chat content. It also worked to define a continuing improvement process for their service optimization initiative. The process was to evaluate, adjust, and re-launch at appropriate intervals following the initial launch.The ResultsROI exceeded the cost of the implementation within eight months of project roll-out. Moxie’s Proactive Chat helped Nationwide improve the customer and insurance agent experience at Nationwide. “Customers are engaging with contact center agents in five seconds or less. Their happiness was evident in our Net Promoter score (‘Would you recommend to family and friends?’) which is 82.3%,” says Mr. Browder. “Additionally our customer satisfaction rating for the chat experience is 4.08 out of 5.0.”After implementing Moxie’s Sales Chat Spaces the average handle time is five minutes or less. However, agents can now handle up to five chats multaneously—dramatically increasing contact center efficiency and improving the customer experience. “Moxie’s Proactive Chat has exceeded our expectations; for example, we expected fewer than 40 chats per day and we are now experiencing over 100 per day,” Mr. Browder explains. Most importantly, Nationwide has seen bind rates (contracts with customers) increase by factor of five. This is enabling the organization to achieve their revenue goals for specialty insurance. “The ROI of this initiative and our proactive chat technology acquisition is currently at five to ten percent. However, now that we’ve exceeded break even, this figure will improve each month that brings in chat-assisted insurance binds,” concluded Mr. Browder. In the coming months, Nationwide plans to extend both proactive and reactive chat capabilities to the sales team followed by the service and support team. Nationwide also plans to add co-browsing capabilities to its chat implementation in order to assist customers with more-complex issues. This will be particularly valuable in servicing the company’s internal business partners.“The Customer Value Team is dedicated to [Moxie’s] Proactive Chat. The project exceeded our expectations; [Moxie’s] Proactive Chat’s overwhelming success and ease of adoption has removed the barriers in other areas of new technology.”—Ryan J. Browder, Manager, Customer Choice Distribution, Nationwide
- 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.
- Jack Welch puts it concisely.I also love his perspective on shareholder value.But for the last word……………
- The people dimension is at the core of the customer-adaptive enterprise. Who can argue with someone who is successfully running and inspiring over 300 companies world-wide?