achieving competitive advantage through the customer experience3 24-14

Achieving Competitive Advantage

Through the Customer Experience

Or… What can the Wizard of Oz teach us about building lasting bonds with customers

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What do These Companies

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Have to do With These Companies?

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They Were Both Part of a Study Measuring the

Economic Impact of CX

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Survey Question

What do you think was the % difference in stock

performance between the CX Leaders and Laggards?

10%? 26%? 77%? 52%?

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Source: Forrester and Watermark

Customer Engagement Leaders Outperform the Market Leaders vs. Laggards vs. S&P 500 (2007-2012)

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

Cu

mu

lati

ve

To

tal R

etu

rn

Customer

Experience

Laggards

S&P 500

Index

Customer

Experience

Leaders

Leaders

Outperform

Laggards by

77% -34%

14.5%

+43%

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Survey Question

How would you describe the quality of

your customer experience ?

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Perception vs. Reality

100%

80%

60%

40%

20%

0%

Perc

en

t o

f C

om

pan

ies

80%

of companies

believe they

provide a

superior

experience

Believers (Non-Achievers)

Achievers

But only

8% of Customers agree

(Source: Bain & Satmetrix)

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How did

this happen?

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The Twister of Technology Changed Everything

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The Days of Competing on Product and Price are Over

Differentiate on price

How low can you go?

Differentiate on product

Today’s innovation is

tomorrow’s knockoff The new

differentiator

Differentiate on

customer experience

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Because We Aren’t in Kansas Anymore

How do You Win?

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It Takes a Brain

Using customer

data and insight

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A Heart

Operationalizing

empathy – with

systems and

processes

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Courage

To innovate and

challenge the

status quo

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Use data: 4 Levels of Maturity

Maximize customer

profitability by

leveraging Big Data

with company data

to customize

products, pricing and

channels for each

customer

Combining data from

across the company

to develop

predictive models

that will feed

relevant,proactive

outreach that builds

value

Reaching out to

customers first based

on behavior or value

triggers, typically

developed in one

department (care,

marketing, retention)

Reacting to

customers based

on their behavior or

explicit feedback

Reactive

Proactive

Predictive

Psychic

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Have Empathy:

Understand What They Want and Operationalize It

Listen to VOC and innovate.

Put people and processes in place to make CX

a part of the company DNA – culture – the way

we do things around here.

Think like your customers - have empathy.

Just make it simple.

It costs at least twice as much to deliver a poor

customer experience as a good one. Build the

customer focus in from the beginning.

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Find courage: Try new things

Question the status quo.

Break down the product silos.

Empower CX leadership across divisions.

Compensate based on NPS improvement.

Bring the customer to every meeting.

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Bring brains, heart

and courage to

your customer

experience

journey and you

will find your

way to success

Follow the Yellow Brick Road

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@MarkGrindeland

CMO

TeleTech