CX Quality and Customer Optimization
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Dr. Natalie Petouhoff and Steve Trimbo presented on optimizing customer experience through better digital experience management. They discussed how most companies have separate IT and customer experience teams that do not collaborate effectively. This leads to poor customer digital experiences despite investments in customer experience. They proposed assessing an organization's digital experience management maturity across five dimensions and collaborating across teams to improve digital performance and close the gap between customer experience and digital experience.
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CX Quality and Customer Optimization
- 1. © Dynatrace, LLC What the smartest brands know about CX ... and what they still aren't doing about it September 28, 2016
- 2. © Dynatrace, LLC Our speakers Dr. Natalie L. Petouhoff Vice President and Principal Analyst, Constellation Research Steve Trimbo Global Omni-Channel Practice Manager, Dynatrace Dr. Natalie Petouhoff is a keynote speaker and researcher in all customer-facing applications, including Social, Mobile, Digital, Listening and Monitoring, Marketing, Commerce, Customer Experience of IoT, Customer Care, Customer Service, and Contact Centers. Clients look for her guidance and perspective, which is always refreshing, paradigm-shifting and innovative. Petouhoff was voted one of the top 100 Most Influential Women in the World, as one of the top 50 CRM and Customer Experience Professionals and in the Top 20 for Social and Digital Media Experts. She is often quoted in USA Today, Adage, BusinessWeek, Fast Company and The New York Times. Steve Trimbo has been with Dynatrace for 5 years focused on driving success in our most complex and challenging customer programs. His background is in IT Ops, Service Management, Program Management and Software Development with fourteen years in retail organizations. Prior to joining Dynatrace Steve was a Lead Architect at Target and prior to that worked with ATG (now part of Oracle) and Best Buy.
- 3. © 2010 - 2016 Constellation Research, Inc. All rights reserved. The Business Imperative: Defining Customer Experience Via Digital Experience Metrics The Gap Between CX and Customer Digital Experience is Digital Performance Management September 28, 2016 Next Generation Customer Experience @drnatalie @dynatrace @constellationr #CX #DPM #DX
- 4. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Title
- 5. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Customer Experience is NOW a CEO-Level conversation CX is critical to business results, and consequently A top strategic priority across many industries @drnatalie @dynatrace @constellationr #CX #DPM XDX 92% of executives surveyed said the customer experience strategy is one of their top three priorities 65% of respondents expect to improve profitability by improving the overall lifetime value of customers
- 6. © 2010 - 2016 Constellation Research, Inc. All rights reserved. @drnatalie @dynatrace @constellationr #CX #DPM #DX Customers talking to each other and make buying decisions based on friends, family and especially recommendations of strangers And word-of-mouth in digital tends to be very direct & authentic So the digital experience really, really matters as a competitive differentiator
- 7. © 2010 - 2016 Constellation Research, Inc. All rights reserved. BrandsNOWmustbecome PublicSocial EXPERIENCES Customer’s Digital Experience Determines Loyalty to a Company- That’s a Bottom-line Issue @drnatalie @dynatrace @constellationr #CX #DPM #DX
- 8. © 2010 - 2016 Constellation Research, Inc. All rights reserved. “If its slow, it’s a no go” While CX investments are significant, returns are often lacking. In the customer’s opinion – which is what really counts WHY?????? 87% of customers agree customer experience needs to be better @drnatalie @dynatrace @constellationr #CX #DPM #DX
- 9. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Website Customers Are Not Happy • 71% of people surveyed feel regularly inconvenienced by slow websites • Over 30% report that their performance-related stress or anger has increased, not decreased, over the years. • 50% believe websites have either not improved in speed or have become slower over the past several years • 78% felt some kind of negative emotion due to slow or unreliable websites • 44% of users say that slow online transactions make them unsure about the success of the transaction
- 10. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Mobile Customers Are Not Happy Can you afford to make so many of your customers unhappy? 39% of mobile users are unhappy 57% had performance issues 46% won’t return Throw their phone 4% Behave more or less normally 62% Scream at their phone 11% Curse at their phone 23%
- 11. © 2010 - 2016 Constellation Research, Inc. All rights reserved. CX investments are significant, but returns are often lacking. Business is leaving money on the table… Why? @drnatalie @dynatrace @constellationr #CX #DPM #DX
- 12. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Two Camps Each doing what they think is best based on how they are measured @drnatalie @dynatrace @constellationr #CX #DPM #DX IT or DPM or DX CX
- 13. © 2010 - 2016 Constellation Research, Inc. All rights reserved. “We never talk…” • CX managers consider DX to be the exclusive domain of IT • IT managers set objectives without business insights Let me check my CSAT scores, conversions rates, Net Promoter Score… SLA compliance looks good for page load times, errors per task, time to first click…
- 14. © 2010 - 2016 Constellation Research, Inc. All rights reserved. Finding the “sweet spot” requires collaboration Response time Conversions IT owns this axis • The business owns this axis, e.g. – Sign-up for a webinar, newsletter – Fill-in a form – Finish purchase • IT owns DX, but needs to provide relevant insights to the business • CX managers need to participate in DX – Defining operational objectives – where is the knee in the curve? – Considering DX impacts of business initiatives – making conscious tradeoffs
- 15. © 2010 - 2016 Constellation Research, Inc. All rights reserved. You don’t know what you don’t know… DX is the New CX DPM is the way to DX Excellence @drnatalie @dynatrace @constellationr #CX #DX #DPM
- 16. © 2010 - 2016 Constellation Research, Inc. All rights reserved. 16 Organizations need to rethink their approach… You have to manage DX to manage CX IT’STIME TORETHINK EVERYTHING @drnatalie @dynatrace @constellationr #CX #DPM #DX
- 17. Confidential, Dynatrace, LLC How you can deliver measurably high-quality digital experiences
- 18. © Dynatrace, LLC What is digital experience (DX)? “The degree to which interaction with your web site(s) and mobile app’s is fast and error-free.”
- 19. © Dynatrace, LLC What is digital experience (DX) management? Policy – How fast is fast enough? Tools and data – What digital experience are we delivering? How does it relate to business results? Process – Are we delivering actionable information to stakeholders? Are we planning for impactful changes? Are we communicating and continuously improving? People – Who defines policies? Who measures effectiveness? Who acts on information? Who reviews and approves actions? What is your level of DX management maturity? Who owns it?
- 20. © Dynatrace, LLC Assess DX Management Maturity across 5 dimensions Digital Business Performance Reporting & Collaboration Digital Business Performance Measurement The ability to measure technology behavior and performance, together with user behavior and business performance. Digital Business Problem Resolution Identification of both potential and actual user struggles, correlation to business impact, problem isolation, root cause determination, and specificity to drive fixes. Digital Business Performance Improvement Performance intelligence that identifies opportunities to improve end user experience and digital business outcomes. Digital Business Problem Prevention & Readiness Continuous performance measurement through the digital asset lifecycle, realistic simulation of usage, and digital asset governance based on performance. Analytics supporting business IT and business decision- making, development-friendly insight exchange, common metrics and language.
- 21. © Dynatrace, LLC L E V E L 1 REAC T IV E L E V E L 2 AWA RE L E V E L 3 E FFEC T IV E L E V E L 4 O P T IMIZ E D L E V E L 5 P E RVA SIV E At Risk Marginal Good Best Practice “Next” Practice Five Levels of DPM Maturity
- 22. © Dynatrace, LLC Current state of DX maturity vs. desired state 0 0.5 1 1.5 2 2.5 3 3.5 Performance Measurement Problem Resolution Performance Improvement Production Readiness Performance Reporting 1.7 1.8 1.6 1.5 1.7 3.3 3.1 3.1 3 3.1 Current State Desired State 1 = Reactive 4 = Optimized
- 23. © Dynatrace, LLC What we have observed: the good and the not-so-good
- 24. © Dynatrace, LLC Collaboration delivered
- 25. © Dynatrace, LLC Better CX demands better DX management Measure delivered DX, including benchmarking Measure your processes – should you expect to provide good DX based on how you are managing it? Include all the stakeholders in the process
- 26. © Dynatrace, LLC Questions? Dr. Natalie L. Petouhoff Vice President and Principal Analyst, Constellation Research Steve Trimbo Global Omni-Channel Practice Manager, Dynatrace Connect with Dr. Natalie Petouhoff: Email: Natalie@ConstellationR.com Twitter: @drnatalie Connect with Steve Trimbo: Email: steve.trimbo@dynatrace.com Twitter: @stevetrimbo
- 27. Roundtable: Optimizing for Customers and Improving CX Quality Nov 15 11:00 am – 12:45 pm Featuring Dr. Natalie Petouhoff, Steve Trimbo
- 28. © Dynatrace, LLC Download the report… www.dynatrace.com
Editor's Notes
- We can all agree we live in a world that is increasing more digital and more social There’s no way around it And
- Customer Experience is NOW A CEO-Level Conversation CX is critical to business results, and consequently A top strategic priority across many industries 92% of executives surveyed said the customer experience strategy is one of their top three priorities 65% of respondents expect to improve profitability by improving the overall lifetime value of customers
- Word-of-mouth in social media tends to be very direct & authentic Most everything the business needs to know… What’s working What’s not working What would be better if… Can be seen in social networks…
- Brands NOW must become Public Social EXPERIENCES that they share Customer’s Digital Experience Determines Loyalty to a Company- That’s a Bottom-line Issue
- While CX investments are significant, returns are often lacking. In the customer’s opinion – which is what really counts 87% of customers agree customer experience needs to be better
- Even though they care about the same thing, they are looking at different things and they will never get to the right answer that way
- Business metrics could be sales, sign-ups, applications submitted, etc. IT could be response time or some more sophisticated composite score, like Dynatrace uses for published DX benchmarks – considers response and reliability, and parses mobile versus desktop Based on numerous Dynatrace DX assessments (thru consulting services), mapping operational data to business results is among the lowest scoring variables – demonstrates a high/rare level of DX maturity CX professionals are rightfully focused on mapping the customer journey, but they are omitting an important set of variables – DX Consider the inflection point – not good business to shoot for “as fast as possible” assuming each degree of “fast” comes at an incremental cost. The inflection point is also cost optimized. [Dave Anderson’s retail industry benchmarks; YoY BoW for other industries?] So is this a case of chicken little or the canary in a coal mine? Much ado about nothing or a real leading indicator? DX involves conscious decisions about trade-offs – initiatives to improve CX can have implications for DX – does it move the inflection point? We need to keep the focus on DX because we have no data to prove the impact on business results Consider that DX is not something that you “fix” and are done – it is a continual process, starting with monitoring; the environment is dynamic, the customer population and their behavior is dynamic – you need to manage continuously DX
- Witness Factor™ Describes the idea that digital experience or DX is the new CX Which is now public There are all kinds of things happening and you can’t possibly know if you are not looking for them or even know that they are going on Third party data Seeing how interaction with a third party affects a transaction WebRTC – responsive design – understand all the dynamics and can figure out which of the three pictures should be shown, however, all three pictures are rendered, with only one see Progressive design takes into consideration all of the things- They are on a wireless carrier that don’t have 4 G – and what they see is horrible compared to what you found in your testing A lot of changes by marketing – say a flash sale, and connect to another source – reviews website, check to see if it is in your geography and the price–but they didn’t have the price cached and so every time they had to check the price, they couldn’t send it from their content data network, it had to go back to HQ- to ensure really good performance,
- It’s time to rethink everything You have to manage DX to manage CX
- So how do you do it?
- I want to start by defining a term that I will be using a lot, and that is “Digital Experience,” or “DX” for short. Admittedly, there is no common interpretation of the term Digital experience in the industry, nor is there a common term used to describe what we mean by it here, so here is what I mean when I use the term.
- Natalie said that you have to manage DX to manage CX, and she’s right. To DELIVER better and MORE MATURE DIGITAL EXPERIENCES, you have to MANAGE them. What does that mean? What does it require? First you have to MONITOR these Digital Experiences. Start by asking: “What are the best practices you need to support for the best experiences? What POLICIES do we need in place to support these best practices Next, determine what TOOLS you need to gather the DATA required to determine how well and if you’re following your agreed-upon POLICIES. What data will you need? Too much data without context can be confusing. Too little can lead to poor decision-making in the management process. Here’s where you need the BEST TECHNOLOGY AND EXPERIENCED LEADERSHIP to help you determine what data you gather and translate it into actionable direction. Finally, once you have the right, accurate data, what do you do with this information? How do you share it with all of the stakeholders in ways that are meaningful to everyone? What are your next steps to improve your maturity? How do you prioritize? Digital Experience maturity can and should not just be monitored, but it should also be measured and MANAGED – using information from monitoring along with knowledge from experience and best practices to MEASURE results and then take action to improve these results through MANAGEMENT. And by measured I mean - relative to objectives. The most mature organizations determine the relationship between DX metrics and business results, and establish objectives for DX that should maximize business results. This means that you’ll need to involve people and processes from across your entire organization—siloed information and action WILL limit your maturity. Guiding principles: Digital Performance Management - not just Monitoring Understand and improve the end-user experience, application, and infrastructure layers Alignment of DPM activities with business goals The entire Application SDLC owns end-user performance Understand the complete application delivery chain – not just the components in the data center Understand capabilities—not just tools Provide teams a common lexicon around DPM Reduce MMtR from performance related incidents So where do you start? Begin with assessing your DX maturity by asking some tough questions… (start with the two here and then go to the next slide…)
- Introduce these as the five measures you can use across your organization to determine your DPM maturity… Walk through them…
- Rate yourself according to these factors in each of the five previous categories… Level 1 – Reactive: This is the lowest level of maturity a business can be at and signifies an “at risk” level of digital performance management. Level 2 - Aware: This phase indicates a growing understanding of how technology shortcomings affect the customer and signifies a “marginal” level of digital performance management maturity. 3 - Effective: This level indicates things are progressing to a level where digital experience impact is better understood so at this level the organization has a “good” level of digital performance management maturity. Level 4 - Optimized: This stage indicates a brand is using “best practice” levels of digital performance management maturity leading to increased business outcomes. Level 5 - Pervasive: Digital performance management has become part of the DNA of the business and of IT and the company has reached a “next practice” level of maturity providing the business team even deeper insights upon which business decisions can Be made.
- …and don’t be too hard on yourself… As you can see from the results of over 40 assessments we’ve conducted and summarized on this chart covering many business sectors – for the initial assessment on average the organizations have scored in the “Reactive” level of Digital Experience Management across all aspects. Most companies in every imaginable industry are still at an early stage of DPM maturity. Be realistic in the early stages and you can see improvement occur in a relatively short period of time. While all companies want to be performing at an “Optimized” level of Digital Experience Management they initially set their sights on getting to a maturity level of 3 – meaning “Effective” which leads to organizational understanding of where digital experience impact is better understood and insights can lead to decisions leading to improved business outcomes.
- Aside from how far many companies are from their desired state, it’s also interesting to note where we see most companies rate highly in our assessment process—and where they usually have low scores. Usually companies report that they have a good understanding of digital experience through common, repeatable transactions, and they are able to measure the general quality of these experiences from different geographies worldwide. This data is relatively simple information around individual transactions, times..etc.. However, where we see organizations struggling is in areas like gathering more complex digital experience information about their actual customers that requires data in context, in real time. In addition to capturing this critical digital experience data around customers is the challenge many organizations have in presenting that information in a business context which would lead to new insights that could be utilized to improve business outcomes. It’s typically difficult for organizations to gather data around business-centric metrics and understand how they relate to IT-centric SLAs. KEEP? ->This is where Dynatrace’s complete view and our experience in providing information in context for IT AND business stakeholders works for you… [Add stories about actual engagements…]
- So it becomes obvious that it is difficult to make progress without better communications and collaboration between IT and business. Organizations often think they are doing this well, but when we peel it back we see that the connections mostly exist between IT dev and the business, with the focus on application functionality. If the organization is DevOps mature, this bleeds into IT Ops to some degree. But more often than not, operations considerations like DX are not part of the dialog. In order to make DX work for the business, there needs to be good communications and collaborations between IT Ops and the business. Why is this so often lacking? Well, as Natalie said, DX and CX professionals are often speaking a different language. They need a shared lexicon to enable communications, and identifying shared metrics is a way to accomplish this. To reach process maturity in Digital Experience management you need to arm all stakeholders with easy-to-access metrics and the ability to answer digital experience questions leading to deeper and more meaningful dialogues about and insights into your customers and their experience with you. Leveraging a digital performance management solution that ties together business and IT metrics and the relevant information for all stakeholders will drive large increase in maturity gains. With Dynatrace technology, expert leadership and our unique Digital Experience Center, we deliver the right, detailed information to all stakeholders in context. This enables the collaboration required for groups to MANAGE complex digital experiences and align goals for business success. Metrics are aligned, goals aligned and understanding is now out of silos—everyone is on the same team.