making the transition from wcm to cem - and why resistance is futile
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The Transition From WCM to CEM Magnolia Conference 2014 Basel | 25 June 2014
Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com
The Transition From WCM to CEM Magnolia Conference 2014 Basel | 25 June 2014
Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com
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but inescapable, irresistible and utterly imperative
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DCG helps business leaders navigate the digital transformation and create competitive advantage from disruption.
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About Digital Clarity Group @$m_walters @just_clarity
4 @$m_walters
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Yearning to kill the messenger
June 28, 2007
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The compression of time and space
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§ Accelerated flow of information § Democratized production of information § Dissolved monopoly over information
“As the industrial revolution was defined by radical efficiency in production, the digital revolution is defined by radical efficiency
in information transmission” -- Mike Aruz
(e.g., Uber, Airbnb)
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The deformation of information
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What do consumers think of us?
@$m_walters
Twitter trumps condiments
15 Source: h@p://www.newmediaandmarke$ng.com/brands-‐have-‐to-‐master-‐complaint-‐management/customer-‐complaints-‐561
Only
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1%
feel their expecta$ons for good customer service are always met
Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow. @$m_walters
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Say they have switched business to a competitor due to poor
customer experience Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow.
@$m_walters
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Say they will pay a premium for great customer experience
Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow.
@$m_walters
19 Source: Okeeffe & Company survey of 1,342 senior execu$ves, 2012. Commissioned by Oracle.
Global executives say the cost of not providing “positive, consistent, and brand relevant experiences” is
20% of total revenue @$m_walters
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$1.25 million per year
@$m_walters Source: h@p://www.weirdworldfacts.com/smart-‐dogs-‐with-‐amazing-‐jobs/
$89 billion “is lost by US retailers each year because of customer
defection or abandoned purchases due to poor experiences”
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IBM says . . .
Source: www.mycustomer.com/feature/experience/jim-‐glazer-‐ibm-‐store-‐s$ll-‐pivotal-‐customer-‐experience/165159
How much is at stake?
$5,900,000,000,000 ($5.9 trillion)
22 Source: Accenture, 2013 Global Consumer Pulse Research. Photo: h@p://www.t-‐na$on.com/free_online_ar$cle/most_recent/train_like_a_man_5_the_real_paleo_exercise
#CEM isn’t the Next Big Thing. It is the Next Only
Thing. #provocation
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What do consumers want from us?
@$m_walters
of consumers are frustrated by site content that has nothing to do with their interests
25 Source: Harris Interac$ve survey of 2,091 U.S. consumers, 2013.
@$m_walters
79% Companies “asking same ques$ons or marke$ng same offer” across channels
Sources of consumer frustration
65% Inconsistent offers or content
79% Companies “se_ng false promises”
Source: Accenture Global Consumer Pulse Report, 2014. @$m_walters
of consumers say that personalization influences what they purchase – 25% say
the influence is “significant” 27
Source: Vanson Bourne survey of US consumers, 2013. @$m_walters
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Consumers expect insight
Source: Dynamic Markets study for Experian, January 2012.
“Understanding” means, e.g., “taking account of preferences, purchase history, and other provided information.”
84% said they would no longer buy from a company that failed to “understand.”
@$m_walters
We are anxious about privacy . . . but we want
companies to offer relevant experiences based on our wants, needs, and tasks.
29 Source: h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-‐CRM-‐to-‐the-‐Customer-‐Managed-‐Rela$onship
#CEM means: Embracing the shift from #CRM to
#CMR – customer managed relationshps. (Thanks to
@collsdad)
30 Source: h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-‐CRM-‐to-‐the-‐Customer-‐Managed-‐Rela$onship
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A strategic inflection point
Source: Based on Andy Grove, Only the Paranoid Survive, 1996 @$m_walters
“Strategic inflections can come from anywhere: new technologies, new competition, new regulations, new customer values and habits, etc. – anything that has a significant impact on the business itself or the industry as a whole.”
– Andy Grove
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CEM is today’s “fundamental” SI
Business success
STATUS QUO Business failure
§ Digital disruptions
§ Era of empowered consumers
§ Basic shift in the business environment
§ Impacts every firm, regardless of industry
Impact: Failure to provide superior customer experiences leads to irrelevance and business
decline @$m_walters
34 Source: Forrester’s Website User Experience Reviews, November 1999 through January 2012
WCM was hard
35 Source: Forrester’s Website User Experience Reviews, November 1999 through January 2012
#CEM is not just somewhat harder WCM.
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WCM is old paradigm
Source: Based on Andy Grove, Only the Paranoid Survive, 1996 @$m_walters
§ Web-centric
§ Page/publishing mentality
§ Insufficient tagging
§ Not “minimal” enough
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COPE = Create Once Publish Everywhere
Content
Web
Social
App
RSS Video
Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐publish-‐everywhere
Deane Barker, Blend Interac$ve
Karen McGrane, karenmcgrane.com
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CEM is COPE-IER = COPE for segments, in journey stages
Content
Social
Video
Web
App
RSS
Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐publish-‐everywhere
A
B
C
D
B
C
B
C
“We can’t afford to be thinking about creating content for any one platform. We can’t be thinking about crafting a website. Instead, we have to think about how are we going to put more effort into crafting the description of our content, how are we going to put more effort into explaining all the different bits of our assets. And what that’s going to allow us to do is reuse our content more effectively and get more value out of it.” – Nic Newman, BBC
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It’s all about Adaptive Content
Thanks to Karen McGrane See: h@p://karenmcgrane.com/2012/09/04/adap$ng-‐ourselves-‐to-‐adap$ve-‐content-‐video-‐slides-‐and-‐transcript-‐oh-‐my/once-‐publish-‐everywhere
§ Structure
§ Purity
§ Intelligence
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Omnichannel CEM needs content with:
STRUCTURE § MRU (“minimum reasonable
unit,” re Deane Barker) § Discrete, flexible, agile, freely
combinable, reusable experience assets
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PURITY § WYSIWYG? Seriously?
§ Create messages, narrative elements, “engagement legos” – not pages, print, or any other format
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44 Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐publish-‐everywhere
INTELLIGENCE § Experience architecture(s) § Taxonomy, metadata, tagging § Governance § Describe/track/verify how, when,
where, why assets have been combined/deployed, and to what effect
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§ Accenture surveyed over 13,000 consumers in 33 countries about 10 industries and determined: – Despite investments and initiatives, no CX metric
“has improved consistently in the past five years.”
– All metrics “lost ground in 2013” – Companies “have been playing not to lose”
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Answer: You suck
Source: Accenture Global Consumer Pulse Report, 2014. @$m_walters
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Can “CX” be “M”d?
Source: h@p://www.bedeckhome.com/sloane-‐towels-‐2-‐colours.html
§ Customer experience (CX) is how customers perceive the totality of a their interactions with a company or brand. Note that in this definition, "customer" refers equally to prospects – those who have not yet conducted a transaction with the company – and that the “totality” of interactions includes all channels and touch points over the entire life of the relationship.
§ As a business discipline, customer experience management (CEM) refers to the strategies,
processes, skills, technologies, and commitments that aim to ensure positive and competitively outstanding customer experiences.
§ With reference to technology, CEM includes the array of software tools that organizations
use to create, store, deploy, analyze, and optimize the aggregations of digital assets that make up the user experiences on digital channels.
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Unpacking CX and CEM
@$m_walters
#CEM means: Judging CEM tech and practices
from the customer’s (ad)vantage point.
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Johanna Maria Christina Snel Three vectors of experience § Environment – The thing/product
experienced § Encounter – The interaction between the product and person § Effect – A person’s response to the encounter
Source: h@p://books.google.com/books/about/For_the_Love_of_Experience.html?id=u98ZkgEACAAJ
You create experiences (environments) that are experienced (interaction) and form an experience (subjective perception).
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In short:
We say that #CEM is about the effect (perception), but we
should realize that it is about the environment (product).
(Because the things we offer to be experienced can be managed, but the reaction cannot be.)
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Customer insight + brand story = experience assets
Experience assets + interaction = customer perception = CX
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#CEM means: Managing the delta between your
intent and the customer’s perception.
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You can’t do it alone.
Source: h@p://silence-‐without.blogspot.de/2010_12_01_archive.html
“CEM is so new, hard, and complex that nearly all organizations must draw on third-party service providers to provide or supplement skills in research, strategy, design, technology, operations, and much more. In short, service provider partners increasingly provide an indispensable ingredient in any CEM endeavor.”
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§ Touchpoints (web site, app, call center) are too specific
§ Customer lifecycle is too unpredictable
§ Customer journey is just right – it combines end-to-end experience with clear outcomes and team responsibilities
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Where to start?
@$m_walters
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Selected journeys (McKinsey)
§ Identify customer goals/needs § Map the journey § Determine/assign responsibilities § Measure current effectiveness/satisfaction § Identify flows and gaps for social support § Organize and/or network team(s) for complete
journey § Refine and optimize § Learn, repeat, expand 60
The road to CEM reality begins tomorrow (or anyway, after the party)
@$m_walters
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“You may hate gravity, but gravity does not care.” -- Clayton Christensen
Tim Walters | Partner, Principal Analyst @tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com
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