customer experience edge - booklet[1]

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7/30/2019 Customer Experience Edge - Booklet[1] http://slidepdf.com/reader/full/customer-experience-edge-booklet1 1/36 Technology and techniques or a high-quality, and proftable, customer experience Jujhar Singh • Reza Soudagar • Vinay Iyer • Volker Hildebrand Complete book available all 2011 The

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Page 1: Customer Experience Edge - Booklet[1]

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Technology and techniquesor a high-quality, and proftable,

customer experience

Jujhar Singh • Reza Soudagar • Vinay Iyer • Volker Hildebrand

Complete book available all 2011

The

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Copyright © 2011 by Jujhar Singh, Reza Soudagar, Vinay Iyer and Volker Hildebrand. All rights reserved. Printed in the United

States of America. Except as permied under the United States Copyright Act of 1976, no part of this publicaon may be

reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior wrien

permission of the authors.

All trademarks or copyrights menoned herein are the possession of their respecve owners and the authors makes no claim of 

ownership by the menon of products that contain these marks.

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IntroductIon: Page 4

Part One: Not Your Father’s Customer Experience 

chaPter 1:

Customer Experience in te “New Normal” Page 10

chaPter 2:

Te Four Essentials o Proftable Customer ExperiencePage 19

chaPter 3:B2B Customer Experience: Same Animal, Dierent Spots Page 28

aBout the authorS: Page 34

chaPter 4:Trowin Out te Old Playbook

Part twO: Making it Happen

chaPter 5:Te New Customer Experience Recipe

chaPter 6: A Fres Look at te Top and

Bottom Lines

chaPter 7:Tecnoloy: Te Core Inredient

Part three: Sustaining the “Wow” chaPter 8: Sort Pats to Start a Lon Journey

chaPter 9: Measures o Success

chaPter 10: Exportin Proftable Customer Experience

to Solve te Emerin Markets Puzzle

chaPter 11: Te Blueprint or Sustainable and

Proftable Customer Experience

chaPter 12: Te Future o Customer Experience

These chapters are expected to be in the

 hardcover book to be published by McGraw-Hill 

Professional in the fall of 2011.

ta B l e o c o n t e n t S

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 4   the cuStomer exPerIence edge

I n t r o d u c t I o n

tik s v iis y wi bsiss, s i -

py s. I b y yp : a p -

ss bii pb; si y bi vi s qik s

pii; i-s visi k ; vii v’s Wb

si ps i bs iss; spi i Wb

s s ps pi si qip,

s ipsss y py b

i bs i bis.

ai p s iis, w is v i y

w iv y v pi s s s bsisss? i

s 1 5, wi 1 bi “p” 5 bi “.” rb

b.

Now, consider te ollowin acts:

• Over 80 percent of companies in a recent survey by Bloomberg Busi-

sswk rs Svis (BBrS) “s pi”

i tp 5 si piiis i i y.

• When asked to rate themselves on the customer experience they

pvi, s pis s svs i 3.62

s 1 5. a is y vy by isy, py

siz ps ivi i, sizb p is

bw y pis’ i i iy.

S, wi s pspivs s y s pi -

i i wi? Is i vi bsisss y piz wki

s y yy? o is i biv y v v

s pi?

t is, i is py y is ivsi i

is “s pi”— s pi spss v-

i sps. ass isis, i bsiss--s (B2c)

bsiss--bsiss (B2B) pis ik, ivss bi

p s jys, iiy “s ,” pw pys,

iviv wys s p/pi ps wis

“ww” “i” ss.

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IntroductIon 5

cpis p p pi ; y

w wki s pi. ty yi b

iv ip—b i pi— s

iis—b i ii—i ss v.

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psiiv ss ivs— ss—w s.

eps p s pis v y b visib

( ii), ks si i vis, b s twi-

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“iis” is i Kvi Si’s “ fy” twi

, sii dv c’s “ui Bks gis” i vi, jis

 J Jvis’s “d h” b pss wi/ ii Bb g’s w-

csmsdi..

a bsisss v sis i w. a my

cii, uivsiy ts, w s ss p-

is iv skp ps wi iv ps, ss w

pi w pbs w w isss b

ipp s. us s wsi, viw byThe New York Times, s pi I ii-

py.1 2 3

a is si sp—bsisss

w s y ss pvii s si s pi

y ssi i v s iiy vy .

ts s spiy is s qss

wi ii iv ip s ivy. ts

bsisss y s-iy piis s i b b i b i. cs, is,

is i piy s is i 2007 -

i si i ii y s ws i is

b i. I ws sy pp k v cs

piy by i is pi w s wi bi

pi ps.4

B i: I is qy s w y ss

s pi wi pi y ivs-1 Jon Stokes. “Lawsuit: Dell knowingly shipped 12 million faulty computers.” ARS Technica, 2010.

http://arstechnica.com/business/news/2010/06/suit-alleges-that-dell-shipped-12-million-faulty-computers.ars2 Michael Krigsman. “Dell lawsuit: Pattern of deceit.” ZDNet , June 30, 2010.

http://www.zdnet.com/blog/projectfailures/dell-lawsuit-pattern-of-deceit/101653 Ashlee Vance. “Suit Over Faulty Computers Highlights Dell’s Decline.” The New York Times, June 28, 2010.

http://www.nytimes.com/2010/06/29/technology/29dell.html?pagewanted=2&_r=14 Dan Ackerman, “Costco Kills Return Anytime Policy.” CNET , February 27, 2007. http://news.cnet.com/8301-17938_105-9691796-1.html

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 6   the cuStomer exPerIence edge

s i is p i i s pi. eqy

s pi ivss wi bs iis

b sipy i. tik s-svi iiv vi sps

syss bk s pis i i i by i

ss b p si .

I, “s pi” is ipiv y,

is i wi pb . aii

i, w w wi s i y

sy, ssib pj. Iiiivs s pi

si w y y i ss i (

i) y w ii ps s y s sis-

i ss s p ss ( w).

t is wy w w is bk: t p ivs s -

s pi piiv v i s-iv, ss-

ib s pbiiy. m is bi si wi

b s pi, b vy w bks pi w s -

y ivss py si i pi pis sisy

s pi s p- b-i-s s.

W v i w wys pvii pb

s pi i iv 80 ys s bsiss s

psss, ss sw isy ks. W v s

wi ii pis, wk bis s i

si sw isis—ii a o—

v py pii s i i ii s-

sw ps ppiis. as s SaP

w vps sw si iv psiiv pb spis, w w s pspiv pis wi y.

cs pi piiv v s y

w-- sy, sip spp, bkw izi-

sis ski , b s -vk :

s s b i ispiv is. Y

i yp It is, y wi v s ii

is (s s yis) w is (s s si

i), s wi si i. t is, y pvi

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IntroductIon 7

s pi wi ii y. B y

s s pi, iv i sisy, ssi i

iiy pvi i pby ss y v i i-

is sy.

Si ssii ky pbiiy, bs y i

b s pi is i s s si. espiy wi

isi s w is, y wk s pi,

i b s. Wi v-pi wys ss i

wi pis, jb pvii sis, syiz pi

ss s s y bs i.

t swb is s. Iis Wb

( s, py’s si, si i i s),

bi vis ( bi pi--s pbiiis, twi

i-bs svis), p ( s svi

ss) i w ( -- s pysi

is), js w. I s p b pi

qiky b Pr i i is i pvi w

si i.

B is i wy i is p

pss. I y’s w, w wys w, wisp -

iizi ks iii isiy bib. diiy

ss s ii, s viws y

i— w y iy pis. I y w

b , i ks is “ik” y .

I is vi, is y ss b -

pi ssy. cpis y i i vs  s sisi b “s yy.” t i is pssi-

, iy b ss s iy pb. I , w

si is bi ppi si s ip s’s b

pi si iv s. css i s

v ppiis s ( iky s), i ii

s ss i pi i pb.

tis si ks i s ivsi i s p-

i wis y b s pi s b .

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 8   the cuStomer exPerIence edge

ebki pb s pi iiiiv s i

by py’s ii z. cpis w -

pi ii i, vi by s ii i-

ivs, s s w pis yy ps, kp ss

i pis. ty isiy yi ki

w i psyi iivs bs

bvi si i iis.

Pb s pi s qis w s py

pw. I s ss, pys iv sisy s

s sis, b y v y s,

ss izi si s. t w sis i:

css s w svi ps s-i -

pys p , i is pys w

v i s.

t is w y wi b i is bk. t, w wi

s s, ps bs pis wi bsi-

sss. a s p i —s s mi,

c l— s ibi i v—s s c-

s. I P I, w s s s bk. t is

si w sib s s pi s i ss i y’s

“nw n”; sib w “ ssis s pi”

w y k ik i i; w s pi

ks ik, pspiv b ss bsisss; sib

w s pi is js s ppib B2B s i is B2c;

p w s pi iiiivs w s bsisss,

pys, ss is pis s is pi.

P 2 is “mki I hpp” si, i wi w v i

pis, psss izi ss b i p

pb s pi. I ii, w i

ss pis p iv. W s i

y pys i ivi pb s pi, isssi

ppii ky y ps, wi ipiv

bsiss/It psips si i.

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INTRODUCTION 9

In Part 3, we explore how to continue the momentum of your customer experi-

ence initiative. This section includes a look at creating “quick wins” along the cus-

tomer experience journey; what a longer term customer experience strategy should

look like; how to measure the value of your customer experience program; the role of 

technology in providing a positive and protable customer experience in emerging

markets; and what the future of customer experience will look like.

Our objective in writing this book is to illustrate how companies can deliver a

consistent, sustainable and protable customer experience by making strategic tech-

nology investments. After reading this book, our goal is for you to feel empowered to

champion a protable customer experience initiative at your own company. When you

deliver highly valuable experiences to your customers in a scalable, sustainable way,

the reward is loyal, engaged advocates who help you grow your business.

Flashbook_vX1.indd 9 3/10/11 12:41 PM

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10 the cuStomer exPerIence edge

c h a P t e r 1 :

Customer Experience in te “New Normal”

everyone has a customer experience horror story. t b

py ii w v sws p. t ps sppi y

v py p pi ss. t spp

ps w p y wi y bii qsi, v y v

wi . t bii is v ws iv-

y ss y ss i s b ss y pj ys.

Ii b : I w jiy pis pss

psiiv s pi i p si bj-

ivs—b 80 p i w svys by Bb Bsisswk

rs Svis (BBrS)5—ps b s pi b.

eivs, i ss, i ki b ip  

s pi, b y ii bk p wi -

is, psss piis sisy s-ivy s

s ppiss. ts s ivs wi v i is ii,

wi s i s pi by i w s y

siy i i, i BBrS (s “Ppi vs.

riy”). Wki k y .

t is, w sis sss pb s

pi: epys si, ss . I s

ss, pys iv sisy s s sis—b

y pw s.

Ii, p, s pi

bk. Sy is s s js isv si isbi i

i bk : a k $10,000 s psi w ys

is k “,” s vib. a yi wi

i yi i spp, s is is sp-

p . o i iiv vi sps sys, s ps

i b iss is pis i s

y pss z spk s svi psiv (cSr).

t cSr sks b—Why? She just entered it.—

“vb pssw” .

5 Bloomberg Businessweek Research Services conducted two surveys in late 2010 to determine the views of C-level andline-of-business executives on customer experience. In one survey of 307 U.S. respondents, nearly half (48 percent)said improving customer experience was one of their company’s three highest priorities of 2011. An additional third (33percent) ranked it among the top 5. In a second survey of 1,004 global respondents, 80 percent said getting closer tocustomers and providing them with a differentiated experience was a top strategic objective.

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cuStomer exPerIence In the “neW normal” 11

Isiy is, s pis s s

v si vb pssw, wv i b, s s

pssiby kw w i is. t cSr sks sis qsis,

Si Siy b ss p b ’s

i psi. Wi sp-

pi— is i — s y sk

wy k ws , y b bk s v y

spi ii k. h pis pi: g i

iv b wi i i spvis, w

i b b b s pi , wi i

is i p wv sqs i v

bis i i. I is w s’s s is i

ks w s s p p.

Pcpio vs. rliy Most companies say customer experience is a top priority, but that is not reected in

how they rate the experience they provide.

Industry

 Telecommunications

High Tech

Healthcare/Pharmaceuticals

Financial Services

Business Services (Consulting)

Media

Manufacturing

Non-Prots

 Travel/Transportation/Other

*Scale of 1 to 5, where 1 is “poor” and 5 is “excellent.”

Base: 1,004 respondents from midsize to large companies, worldwide.Source: Bloomberg Businessweek Research Services, 2010

Percent Naming CE How They Rateas Top Strategic Priority the CE They Provide*

92%2.94

90%4.07

86%3.47

82%3.54

81%3.67

80%3.6

79%3.47

73%3.81

71%3.63

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12 the cuStomer exPerIence edge

mwi, cSr is i b sp. di , s b

w w s’s iy, s s-sw bw

w p ss, swi bw w kybs ss sv

ppiis k w pis ii

ss s’s vis s y sv qsis. h

s i s , i, bs s b b

y s is sipy piz.

as vy kws, bks v si

psss siy pis—s y s.

ts ss i p s

y. B i cSr i is p

si ss i ii, i 

bk i syss b

360- viw s ss -

s, s w v p

b wi i ss 30 ss. a cSr s

v qiky isv s — --s

k . a s i, v k p

isi ii s’s , isvi s

is i-v iivi wi viy i yps

bk. Wi is ii is ips, cSr v

i i is qiky spvis wi

ssy iy i i. hw is i w

w ki s ppy! hw i —

s—is s w b, w iky b

s i. n i, ik w sis s svi

psiv w b wi is is v pw. Pp

w i s svi v s ivi p

pp sv i pbs. a js s ss s

w cSrs p , s cSrs svs w y

v i s.

w Is: Customer Experience? The cumulative impact—

both emotional andpractical—of all of theencounters and interactionsa customer has witha company—both directand indirect.

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cuStomer exPerIence In the “neW normal” 13

Loyalty vs. Lock-In

t s iy is y ss bks sy y bs

ss vi w isii i. nw s, bi

wi i ivs iyi s iis psi

wiw i isi , i swii

bks.6 Bi k i, wv, s yy. o b p-

i pss is, y s w s sss si

pi yi s w w v js sib wi i—

i s ss w v sipy js “oK” svi.

lik vy s, pis

iiy p s pi;

, i sipy pps bs s

pi is . t bsiss psss,

izi s pis

p pi bv vyi s, -

i y bss i sisy

s pb s pi.

a is s. Sp-

i s pi s b viw s

psiv s pi,

is iy wys s. o, i

i i s wi s i

w ss ( p, i p qiy

b svi ivy yis w spp

s). B ivs y i iii-

ivs p s iiy. m ivs

spi BBrS svy i iq i s bs

ipvi s pi.

t ik is w y s pi

iiiiv. r, pis s is v s pi

b i ss w spi pi

pys ivs— p, wi ss w v i

ii v.

Pbiiy is ssy p s pi6 Timothy H. Hannan, “Consumer Switching Costs and Firm Pricing: Evidence From Bank Pricing of Deposit Accounts,”

Federal Reserve Board, May 12, 2008. http://www.federalreserve.gov/pubs/feds/2008/200832/200832pap.pdf 

w Is: Integrated Information Technology Systems?Let’s start with what it is not,which is easily seen with avisit to any call center. In manysituations, call center repssit in front of not one but two(and even more) screens, justto access all of the data theyneed to answer customer

questions on billing, delivery,trouble-shooting, etc. Theproblem is, the data is storedin multiple systems. With inte-grated systems, all employeeswould have a full view of cus-tomer information, includingnance, manufacturing, salesand service.

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14 the cuStomer exPerIence edge

qi, y s v wys s i wy. Zp-

ps, p, pis is sippi -ss s

ss p y ps. t s-sib s-

bsss i s s s iis b s sis  

“ww” pis is pys v iivi ss.

t jy is si Zpps’ . hwv, is 2009 s az

iss qsis s w -i ws b

ps w is ivss.7 8 9

Customers Really Are in Care

w , pis v vp ps

k. css b , . ep i

ss, ii fw py w. I-

ps i i bs i pp

ps iy.

ty, bizi, ss sizi y, iiy

ss wisp s si i, s,

v sp w s

bsiss by s v

b. css isiy pw

pis y w y w b

, w i p p ivy

is, wi i v p-

siz ps si i iivi ss

s. css k

i ps’ p viws i i s y iiy p Wb si.

tis si is y i w B2c b s B2B.

Isiy, is i iii bw w bsiss

vis—pys p s v s pi-

bsiss ps y p s ss i i piv

ivs. Bsiss pys s p sp i si i

sis wk- pis. h, B2B pis vpi Wb

ps ps s, s ps, bi ii

w Is: A Digitally Engaged Customer? A customer for whom it is sec-ond nature to use social me-dia, the mobile Web and othertechnologies to engage witha business, conduct researchand complete transactions.

7 Nicholas Carlson. “VCs Forced Zappos CEO To Sell To Amazon Rather Than IPO.” Business Insider , July 23, 2009.http://www.businessinsider.com/liquidity-starved-vcs-forced-zappos-to-sell-rather-than-ipo-2009-7

8 Tony Hsieh. “How I Did It: Zappos’ CEO on Going to Extremes for Customers.” Harvard Business Review , July-August2010. http://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers/ar/1

9 Stu Woo. “Sticker Shock Over Amazon Growth.” The Wall Street Journal , January 28, 2011.http://online.wsj.com/article/SB10001424052748704268104576108424039598058.html?mod=djemalertTECH

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cuStomer exPerIence In the “neW normal” 15

pp ps, viw ps svis y i w

si s -i ss. I ii, s pis

bi i iis i si s s y

w w is bi si v vsis.

W w s s sy isii bw B2c B2B

is isiy iss ; b b si y: P2P—

pp pp. a , is w wk wi bsiss-

s yps. W pp svi pp, w sp i

b s si. (W wi k b s pi

B2B pis i cp 3.)

t ps is is i is “

ss w.” nw, pis s “pi”— i-

i , . a i pis b

i is ss s v y sk is pvi.

diii s is p  proftable s pi. I

ks ss ss s ss w pis

py ivs—w vi p ii v. t

ws: i is (s s yis i crm

erP sw) ispiv is (s s bi Wb

si i) y s s pi -

(cem), by bi pis pvi ss wi

v pi w wis b s-pibiiv.

t isk, wv, is viw ivss i cem s i p

is v. “ms ivs ik, ‘hw w s is -

y s s?’” sys d Ppps, i p Ppps

& rs gp, crm si py. “tis i is i. a b qsi is: hw w s is y iv

v ss—b, s p?”10

a i v, s pi wk qis ii

w izi—pp, psss y— s

s. tis fips yi s b i p v. nw, s-

s wi y w y w, pssivy ivi w-

v y s . a i s vyi.

S j is y izi ssii.10 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.

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16 the cuStomer exPerIence edge

t bi py, is iz-

i iiy is iky b. I is i i vy

s —ivi ss w y w, i s. I is

, w bsisss yi b ss wi

ski w vs iii ivi, ii

iivi v wi ss swi i s pvis

piiv v.

Te Cost o Inorin Customer Experience

rii py s is i j

s vy p izi. B sqs i-

i s pi wi b i, s . ev i i is spi

s, w y py s -py (ik mis w

ys ), y k ys vb pii w qs

(ik mis ps-g). as wi ivs, s i

s pi is s b b si. t

sks s i s ii.

tk d. I 2005 py sw is s sisi s sip

v pis, i ai cs Sisi S I,

wi is by uivsiy mii.11 t ip ws y

ib vi sps b psis jis J Jvis,

wi d’s sw sps i vs.12 d i

pp, by vi psi iis vs-

is, i si i iviis.

I 2011, is 22,000 i vsis

y, i a Bw, d’s eiv di, Si mi,gb mki. h s Si mi lisi c c,

i db 2010 d’s qs i r rk, ts

( s wi i ci i 2011) i

py’s sps, k, s 22,000 v-

sis—70 p wi i eis. d y sp

vsis i i s, i ps .

t is ssi is. ts is ii

vsis 7,000 si i-i d pys, w11 Lisa DiCarlo. “Dell Satisfaction Rating Takes a Deep Dive.” Forbes.com, August 16, 2005.

http://www.forbes.com/2005/08/16/dell-customersatisfaction-falls-cx_ld_0816dell.html12 Jeff Jarvis. “Dell Learns to Listen.” Bloomberg Businessweek , October 17, 2007.

http://www.businessweek.com/bwdaily/dnash/content/oct2007/db20071017_277576.htm

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cuStomer exPerIence In the “neW normal” 17

v ppib, pppi i pis skis, Bw

pi mis gb hi t Si i y 2011.

I , i i s skps py

wi iivis “ i” i vsis v

. p, i sii pp is s vs-

is b i- isss wi sp f i i

vsis b bi qiy ps p i is sp.

o iivis wi v qiv si p i

skp, s y sp vsis s ,

Bw pi.

d s viw ivss qi spp is Si

mi lisi c cs s w s b, iy,

s vi ivs, Bw

. d iz— y s, —

ss ppy s yi.

Y s si ss ppy

ss svs— s pi,

b pi s — w

y y vi b by

pvii s pi i

bsiss bjivs, sys li assy, psi  

Siviy gp, s pi -

s, sy si ipi .

a p is $300 ii s-i

$1 bii ss v-

, bs y v b iv ss, assy sys.

13

ii ivs i s pi s s iski bi

ii , , pi sbsiy pi, -

i dvi g, , s ss sizi p.

g pis y ys mP3 py s p w

is k iii py . Sy, nki pis

is w vsi ii si py. t iiiy—

wiy—si wk k is, app iP

s i iii is vi spi i pi, p

w Is: CRM? The boundaries of customerrelationship management havestretched beyond the realm of sales, marketing and customerservice/support. Today, CRM

is a strategy for becoming acustomer-centric enterpriseby synchronizing all customer-facing interactions, includingbilling, fulllment and otherback-ofce processes withhigh customer impact.

13 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.

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18 the cuStomer exPerIence edge

si, i pp sy--s si vi iss

wi si. t ps w p i-

y pi.

I y’s iiy w, ii cem s y v i

sqs py’s pi , iy, is b i.

o v, b b pp wi b s’s b

pi s wi b i pi. tis is v

i Wb, w is s y pp b

iv pi vs. psiiv , i J g,

s pi y tarP Wwi.

cpis v k i ss—wv piy—

w si y ji wi i ss vi v,

b. “I ps, pis ivs s iis s

i [yy] ps ss iy i si,”

sys P d’ass, p i di avisy Svis ps-

si svis Piwscps. “ty, y bi p

bk ppii by ssi s s y w y w

ss, ’s pw yy p.”

tis “bk ppii” is bi iv  

s, i d’ass. is sis pp

w-- i; s is i ii; ,

i s “s ,” wi py psi-

iv iv pis -si ipssis, b

ws.14 

cy, y’s bsisss, i pi i bsiss

s si s syi sp v ii sisy s s pi. t bs i

s i. divi iy vb pi ss, i

wy y py ssi v i, p y -

vs w y wi s by y i b wi p

w y bsiss w-- i w yy.

14 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.

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the our eSSentIalS o ProItaBle cuStomer exPerIence 19

c h a P t e r 2 :

Te Four Essentials o Proftable Customer Experience

If money were no object, js b y py pvi

zi s pi. giv ii ss, is

pks s y pvi y ss. a i

isis s s y i, w i i is

, s pis v k pp. W y sp

s ni ms, p, y kw y i

sppi pi. tis is si i- is , bs

ss pp pi is f ii

bi. giz s .

B wi y y bi zzi s is

ssib s bsisss spiy i y’s ii w,

w iy ss is js vy . cpis

p pi p ; y sp i-

iy by vpi i svis pis y

ss i pis pi.

“t s wy y w ik b i y w

s,” viss d Ppps Ppps & rs gp. “us

g r. Ii y bs s is sii y w

y’ ki isis.”

a , b ssib s pi s—i —

ii y y pis. a y iv is

iii i wy is sis , iy, pb. t

“bk ppii” w isss i cp 1 s b vb

ss b y vs w s y w

wi y. t v y s b iv i s-

iv wy s piiv iii w. o-

wis, sipy p, is s i.

“I ’s i iv, w ’ pis is,”

sys Siviy gp’s li assy. “I s b si y pi

sy, ‘W v v i vs pss.’”15

15 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.

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Cusom expic w I Looks Likessil

Reliability Living up to the promise. Example: Consistent on-time delivery,

each and every time.

Convenience Offering choice, consistency and timeliness. Example: Using

multiple channels to reach out to customers.

Responsiveness Listening and responding quickly. Example: Changing a

process or policy when feedback reveals it causesproblems for customers.

Relevance Ensuring offerings are personalized and meaningful. Example:

Gaining insight into what really matters to your customers at a

particular point in time.

20 the cuStomer exPerIence edge

ii s b s pi-

iiiiv s p bsiss s. cpis isiy i sv i ivs, i ii w wys s bsiss

s. (W wi isss is pi i i i cps 6 9,

vib i 2011.) Bify, isi bsiss ivs i

i vs, biiy isi pi pii, ipv s-

i s, w-- ki ss

si iviv psss.

Te Buildin Blocks o TrustS w y ? hw y bi bk ppii

wi bki y w bk? hw y i i wy s

ps w? W biv i is b s— siy -

ps p, b w sy biv is bsi-

ss isip. oy w y v sbis s bw bsiss

s y bi i b— “siki-

ss,” i y wi— b pi by y s wi kp

ss y y.W s v , s ispi, s is by

p . I s pi wk, w v i

bii bks s. W s “ssis” p-

ib s pi. ts s pi ssis :

ibiiy, vi, spsivss v (s bw).

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o s ssis, ibiiy is s is y

pqisi . a , i y sisy iv

y piss, wi b vi, spsivss

v. o y iv ibiiy, y k

ssis vp y iii. , y s y

s s pi ssis s is s ssssi

i w y i y k i ivi s

pb s pi.

t ip s s pi ssis ws vi

i svy by Bb Bsisswk rs Svis (BBrS),

i wi sps s ip s psi-

iv pi: ib ps svis, v iis,

spsivss py s ( vi) i bsiss

(s “es cs epi”). t is bk, w wi

i sw, py ps, w s s

pi ssis—s bii bks s— bsis  

pb s pi.

the our eSSentIalS o ProItaBle cuStomer exPerIence 21

elms of Cusom expicRespondents said their organizations considered the following as the most importantelements of a positive experience for their customers (percent of respondents ratingeach attribute a 4 or 5, on a scale of 1 to 5).

 The quality and reliability of your company’s services

94%

 The quality and reliability of your company’s products

92%

 The perceived value of your company’s products and services—the importance of the customers’ perception that they feel they received value for their money.

90%

Relevancy and timeliness of interactions with your customers

85%Responsiveness of company to customer feedback and acting on it

84%

Ease of doing business with your company

82%

 The consistency of your company’s support and treatment of customersacross channels

82%

Base: 307 director-level and above executives at midsize and large companies.Source: Bloomberg Businessweek Research Services, 2010

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lki BBrS svy ss, i s s pi ssis— i i i ssib ,

iy, pb wy—qis ppyi i y. (W wi

isss is pi i i i cp 7, vib i 2011.)

Wi psss, bk ps s pvi

vs pys ss wi pi y

i, y wi b b pvi sis vs s pi-

i s-iv wy.

y pis, si pi is i psss. tspsss s b si; s is s b p i

is. t s wy, ’s k p p w, sppi

ii yw lb Wb-bs p sppy py. W-

i b i bw w pi bs, s iks

“” b qiky s sps qsi. Ipss,

s ps , spiyi s sippi, v i

i wi iy, s psiiv pi.

a wk psss, s iv wii i pis. hvi k wi , s is is pp

i. tis i, wv, svi p is b p , s s

visibiiy i -ki sys. t k s ws,

s s s -i s svi. S ss -i

s wi 24 s b i sps ii

, i, sipp ys pvisy i

“s” b ivi i w ys. evy i s iv. a

s wi iy si i—i s

22 the cuStomer exPerIence edge

Spolig O: Commerce Bank 

Commerce Bank in St. Louis sees itself as a retailer—as opposed to a nancial institu-tion—which has helped the bank create an experience that aligns with the four cus-tomer experience essentials of reliability, convenience, responsiveness and relevance.It uses its motto of “Ask. Listen. Solve.” and the “kill a stupid rule” philosophy to riditself of anything that unnecessarily robs customers of an enjoyable experience. Forinstance, pens are distributed without chains attached, making them more convenientfor customers to use. Its coin counters are free, and the bank even offers a reward forguessing how much change you insert. Commerce Bank also offers free snacks for notonly humans but dogs, too, showing customers that the bank understands what it islike to run errands with kids and dogs in tow.

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the our eSSentIalS o ProItaBle cuStomer exPerIence 23

sp iss vs. byi vii— ppiy

s i , y v s . n -i, iki iss s wi s iv w ps

is bk p.

Tis example illustrates tree tins:

• One-time experiences—no matter how terric—do not build trust.

Y b sisy ss pss s

ii, ss . I BBrS svy, 82 p

sps i- sisy s ssi -

psiiv s pi.• Get the basics right. You can develop gratifying experiences, such as

i , b s b y s i  

wki bsiss psss ss-i visibiiy.

• Once established, trust leads to stronger bonds between customers

bsiss. Wi is b, ss y b sis, b

y wi v b pssi, y vs b.

Wi s, y p yy, vy,

piipi— wi ss pb s p-i. I is y w s vps ss wi b ii , sy,

pvi bk w y w ik s p vv. ev ,

y b b bk— s pi

by 84 p BBrS svy sps. I y ss iv y

is y w, iii is wii .

“t y pis i [ s pi iiiiv]

s ivb wi pi ivy svi,” sys

dis Pbi, si py B rs gp.

Te Cost o Broken Processes

I ii bii s, i s pi i s

i s is ss sy i i w vi bkk. Ii,

is, pi pvi by py vy vs :

b svis pvi. t si is ii. Y vi

pbs wi y tV, s y bk ppi iv -

is wii wi y ii is p sw p. t

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24 the cuStomer exPerIence edge

wiw is iii bi wi, s w s

iv wii i. m s y , y pik p p w

pp. t ps sy s v ii i

is sii, b s piss s .

By i ii y pps, y ps y

s wi , y . t ii pks , i

i is ki, vy ps pb . B w ykis y w Sp Bb vi vi, i is p-

p pb is vy iv w. a sp

p vi bis svi “wiw” w pis

v sii i. t s: a ppy s (y)

sy spp py.

ay ipv i bv si w p b

s pi w ss py. W i b

py is qiy bsiss psss pi iv? W i s spp, crm, si, isp p-

sss syss i , i wy b i

s b s— y sp, -i i, wv y

s. t w ii “wiw” iv y vis-

ibiiy s w ii w iv. css p

p svi b p, b y p pis y

piz b i wi bk psss. a i w kp

i wi pbs bi , w wi s s psiiv. a,

Spolig O: Comcast  Comcast has come under a lot of heat for offering a poor customer experience. Butthe company has taken many steps that align with the four essentials of customerexperience to respond to these complaints. For instance, its seven-point CustomerService Guarantee promises that, among other things, it will issue a $20 credit for fail-ing to arrive for a scheduled visit during the appointment window—a testament to itsdesire for increased reliability. The company also is currently experimenting with whit-tling its two- to three-hour windows down to just one, to enhance customer conve-nience. In addition, Comcast claims to have reduced its service calls by four million inthe rst four months of 2010 vs. 2009, because it monitors and responds to customerproblems via social media, a true measure of responsiveness. “That’s a good thing,because that’s four million fewer outstanding customer issues,” says Rick Germano,senior vice president of national customer operations at Comcast.

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the our eSSentIalS o ProItaBle cuStomer exPerIence 25

s , w wi is w w w w .

“t s siis w ivsi i i pi- i s is i bsiss spi,”

sys B tki, piip wi s pi sy t-

ki gp. “a i s b bi s, s w.”

S, w you i s py w ispi pp

sp i vb y, i y wi y? y bsi-

sss, vy s sw qsi is si

psss i p pi pi v. I y pis

24- spi s pb, y psss pp i p . I y pis is

pi p, y pii ss s s sisy f

. I y sy si wi iv i ys, i b iv i

i. a y b b b is i vy

i wi y p, w s pps y

i bik-- .

Te Customer-Centric Enterpriset ssis pb s pi b bi i

py. t si— biiy— v-

i, spsivss, v ibiiy s b pvsiv ss

vy p i py, js si ki ss

s b. P vps, ii, , , sippi

p v s ssis v b i s, .

W v i is qi

is vy wii izi w i s w s is viw.

ci i s vy p

izi. Si ivs s pis, pi

s— py’s ps svis— .

tis s ii psss si wi s,

si ki i, vs. (W wi isss is pi i

i i cp 4, vib i 2011.) Wi ii

si p is, isis—ii i  

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26 the cuStomer exPerIence edge

y i spp sy—fw y.

I is i wk s pi s

is. I is pp i s siv, p-iv ii-

iiv psss i py. t s pi

is isi, pi s p ivs.

I s ii bsiss psss, i wi s svi, , ki, bi, p/svi is, y,

i is wk sv s-

s. cs pi qis si ss s

pis, s iy. S i

v b wi i i v spp

py’s p s. I, ceo is i bs psii

i, bsis, wy pis s s s-

s, w s. isi py, is s iy is s

is—is ss, p is ps—b, is,

ss i sis. is s s , bii, ,

p vp, ki, ss, s spp/svi It

wk sssy, wi pvbi 360- viw s

. I s ss wi v i s pi  

vi pi i pb v v i pys, wi

i s. I s ss w sp viy

Spolig O: Coop

When Swiss grocer Coop began offering customers an iPhone grocery-shopping app,it ensured the offering was not just a whimsical “come-on” that made it look hip to the13 percent of Swiss citizens who carry iPhones. By connecting the app with its ownintegrated enterprise systems, the offering builds a whole new level of customer trustby aligning with the four customer experience essentials:• Convenience: In Switzerland, stores close in the early evenings and all day on Sun-

days. With a mobile app, customers can shop while commuting to or from work.• Responsiveness: Coop recently released a second version of the mobile app, with

improved navigation and search functionality.• Relevance: Switzerland has one of the highest adoption rates of the iPhone in the

world, making this a well-targeted platform for a mobile shopping app.• Reliability: Customers can reserve one-hour windows to have groceries delivered

before placing their order, so they do not get locked out of available timeframes.Real-time product availability means customers receive exactly what they order.

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the our eSSentIalS o ProItaBle cuStomer exPerIence 27

Wb si, p, iz i w ss s.

I is ii s pi b i vs.

w-py ki. csi s sps—

ws piss sy sppi pi. a s sps

i s, yzi pps ispy. h is p-

i i, bs si, “avib i-s y.” n bi ;

wi by i i w. S fs w svi psiv, w

ispps i bk s iv . t p s

wi b ws; pp is sk. ev p, svi p

ks ivy i sv by is ks w, b

20 is wy. g, s sys, ski w s wi b b

s i is i s pik i p. “I’ s sy; w ’

y,” p is. “I sss p ivy.”

s vi ws is i— ysi s wy -

sppy s w k is vib i— s

vs, wi ii ivsi ii i ( s y)

vi 20 is is wy. tw ys , s v b

sii By.

hw s sppy s , w y is

i i— ki ss w w ss

w (sy sppi); kwb, p svi p; v i

p i. B si ip ws issi: i-i, ss-

i ivy sys sys

ws fib y s sis. I is

ki b s-s; i izi s b,

is ppiis b s.tis yp s-i p i ss vy p-

i is si pis js w izi y

iv. owis, i s pi ipiv sis i

w ps, i is siv; i is js i. a

wi b bi s, wi wi pb s pi-

is ipssib.

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28 the cuStomer exPerIence edge

c h a P t e r 3 :

B2B Customer Experience: Same Animal, Dierent Spots

most of the discussion s pi vvs

w-ii ps Sbks, disy, app

B2c pis. hwv, w biv

s s pvii psiiv pb s pi

ip B2B w , i, js s v B2B

pis s i B2c b.

lik B2c pis, B2B s p w pis w pis. Is s pis s v-

s v ss y sisy s-

ivy iv. W biv ssis pb s p-

i (isss i cp 2)—vi, spsivss, v

ibiiy— i B2B w. I , ip isis

s pi is piy i i s ws

ipiis B2B. csi i s isi iv-

is, sip ys i qiis. ayi sppi is b is is, b ss s i b

vs, b, ws wis vib ss.

as w si i cp 1, w w s s sy w i

s i iii psiiv pb s p-

i, is ss ss isii bw B2c B2B. I , w

s sipy ik i s P2P—pp pp.

 nvss, ivs i B2B pis i p  

bivi s pi is s pvi pis svss. cs ps s pssi (ik

iP, lbii vi i). di y v w

pi b sip b ?

myb . B wi B2B s pi is ssiy qi

i B2c, pis pp v s ss i i

pis i B2B . B2B is isiy bi

bi, s ss, bsisss pvi i ps-

iz i pi, i spk s pvi ppi-

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B2B cuStomer exPerIence: Same anImal, dIerent SPotS 29

is . ty w i i bsiss ps

vs ski, “Wy ’ we v ki isip?” “Wy

’ you sppi bs p i iy?” “W your piv s ss?” “Wy i’ you sp ii-

is I sw i I ws s i?”

I , y vy w ss B2B p svi s is

i ps w is ii w. hisiy,

ppiis B2B is wi ps w ii spi-

is iis i ps isy s

w is y. ty, y b p i b wk  

is ii b psy ivv bk, twi- si i. t i bw si wk iis

ps vs. bsiss ss s is bi. Pp w p i

pps -s iky ivi i i bw i

bsiss wi i is. a SaP, p, w w v

v w ii bsiss pssis i i iy wk,

vy b i isy. I , is i s y

y iii w pp i i i jbs s B2B i vs. w

y i i si iis i i ps ivs.Siiy, isis ii b B2B ps, p

v pii pvisy y b bi ssps

siv p is w bib ip Wb sis. t pw

ii is i v’s s; i , ss

ii s b iz. t s 247 ii ss s

yis B2B pis i ss.

t is wy, v i isis ik isi i, w

swy bii s pis i B2c-ik pis

tip Box

 There are ways to apply the human touch in the B2B world, says John Goodman,founder of TARP Worldwide. For instance, he has advised terminal operators at achemical company to simply start a conversation with the truck drivers who arrive atleast twice a week and wait a period of time to load their tanks. This bond would en-courage the drivers to speak positively about the company to whomever they are deliv-ering chemicals, Goodman says. It goes to show, it is possible to create an emotionalconnection even when the product you are selling does not evoke passion.

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30 the cuStomer exPerIence edge

i I ppii is si ss ki

byi isis i ps-ps spp.16 ai b

It, si bsiss pss si ciz t-

y Sis, B2B - is vi piiy si

isiy biv, if by ky pis B2c -

s s b vii pbiiis, ipv pii vi-

biiy, ip s ispy pis, p pis pbiiis

ki s p ss-s p-s ps -

is pis. B2B Wb sis s wi s b pib

wi si i s, s s bs s, p wi byi i-

sis. Bs, i ciz, i v sizs,

w p s, w s is s yy.

Central Role o Inormation Visibility

a s i, wi s pi is qy ip i B2B

w, vy i siis vs. B2c, s pi-

b pi iv i B2B w. is,

B2B sis y ivv -v s, si siy qi-

s, p is, i-py sppy is, s

i ii isss. a s s iv

iy, ii. tis is i B2c w,

w -i kw s w is iv

-i s w i is sipp py s s.

I y wys, ss ii—p, i ii

js sip —is B2B s pi.

16 “From Brick to Click: E-Commerce Trends in Industrial Manufacturing.” Cognizant, 2010.

tip BoxB2B companies are working to put the customer at the center of their processes.Doug Hurley, a managing director at PricewaterhouseCoopers, provides an exampleof an electronics rm that revamped processes and added in new technologies inits inbound call center after analyzing how it could better serve its distributor base.For product repairs, the rm now follows up on the original phone call with an e-mailconrmation, which includes a barcode label to be attached to the return so it canbe tracked throughout the repair process. It also continuously alerts the distribu-tor to the status of the repair. “They’re looking for ways to extend their customerservice, where there is perceived value, with the intent that distributors will be moresatised customers,” Hurley says. In our view, the change also fullls all four of our“essentials of customer experience.”

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css pys s b b ss v ii

ky pis ii p/svi spi, b wii

si ws izi. B2B, is is

ks s-

i pis.

Si ivs

w w

sv p ii

pys b sv

ss. I

Bb Bsisswk

rs Svis (BBrS)

svy, s -

qs sps

si y ps

ss ss

ii pys

vi vi by 2012 (s “m mbi d ass”). ty, y

iiy izis svy pw i pys wi i-

i, s s s ss ivy vs, ssib vi

. Bi b sw s qsis pvi spy ss

v ii is piiy ss isis, i

BBrS svy. aiiy, pis pvi pys wi vi

i bi vis, y sp s i s ss.

I B2B w, visibiiy—i ss, ivy vs

sppi ss—is piy w, s i bs ss kp i w ss ppy i w pis i .

c, $15 bii bs i mi, is

iy piss -ivy vs s si

sis, kpi ss ppis ss i ivis.

divy i is ii is ss, bs i -

. I i ivs y, b qiky b sb, s-

i i ws pj ys. I i ivs , wk ws wi

b pi i i is iv, si i si b ss. c’s

B2B cuStomer exPerIence: Same anImal, dIerent SPotS 31

Mo Mobil D accss Access to key applications—anytime, anywhere—willincreasingly be a hallmark of B2B customer experience(percent of respondents).

Types of corporate information accessible via handheld

E-mail

Sales reports

Financial performance

Customer order status

Inventory/other operational data

Base: 1,004 respondents from midsize to large companies, worldwide.Source: Bloomberg Businessweek Research Services, 2010

20102012

84%100%

 45% 75%

40%

40% 71%

 35% 67%

31% 66% 

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32 the cuStomer exPerIence edge

vi is sisy s-ivy b is ss

iv i pj b s. Ii is ky .17

Isi b Yskw ai ks i s sy s

pssib is ss qiky, siy sisy ss p i-

i spp, w i vi is . Yskw spp

ps v s ii vib wii

crm sys s y p ss wi ski ,

sisyi pi s wii . a s i, py-

s ii ss i ii p

i p vp sis , bypi s Yskw sys k. tis ii is ii i

kwbs ispi i y i py.18

Sypsys, w-i k i si i

sw si si, b iiiiv i is s sp-

p p bi izi is s ii i

p, crm ppii. I s iz, wv, w -

ii s ii s ws bi p i spp

w i i w b is vb i is pvp bk- spp s. gy, Sypsys s p-

sp is crm sys, pi 7,000 is pys

w s sys s ii b ss. t py

iz ipv s pi s b pvsiv,

y wy iv is ip si ss vy p

s s.19

a ky i B2B, s Siviy gp’s li assy

pis , is w s “w s,” wi B2B ss iv 17 Simone Kaplan. “Business Process Improvement at Concrete Co. Cemex.” CIO, August 15, 2001.

http://www.cio.com/article/30445/Business_Process_Improvement_at_Concete_Co._Cemex18 “SAP Helps Companies of all Sizes Become Customer-Centric Businesses.” SAP press release, August 3, 2010.

http://www.sap.com/solutions/business-suite/crm/newsevents/press.epx?pressid=1370719 “Transforming Electronic Design Automation with SAP Customer Relationship Management.” SAP case study.

Spolig O: Colmobil 

For some companies, there is little distinction between the B2B customer experienceand the B2C customer experience. Colmobil, an Israeli automobile importer, sellstrucks to business clients, in addition to several brands of cars to consumers. In somecases, a business client might be a consumer client, too. This dual role served as oneincentive for Colmobil to integrate its enterprise systems to obtain a 360-degree viewof all of its customers. Today, if a B2B client walks into a Colmobil sales outlet to pur-chase a Hyundai for his son, for instance, the sales staff will know that he is a valuedcustomer and can offer a personalized experience along with a discount. Colmobil alsois fullling the “responsiveness” essential of customer experience.

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B2B cuStomer exPerIence: Same anImal, dIerent SPotS 33

v 100 p vib b spi p svi,

isibi i sv vs. as s, i iyy is isy k ss. a bs B2B

isip b w iis, is s

isip ss. tis is i, bs s

iivis i i ps wi i s k p

B2B s. “B2B izis i s qi

i bsiss pis s pis,” assy wis.20

B2B pis v i ppiy—viy is i

B2c — kw i p ss ps v.t b is ips isip, s pps

p. (tis is w b s ip bsiss.) “t

s B2B — s—i is p svi spiy

iv pis w by ps y kw iy,” wis

ri ti, b piip P dvp csi,

wi ps pis p pis si s-i i-

vi .21 By s, y B2c pis w  

w i bs ss v . o, y kw pis ibs ss— yps pss—b y kw s s

vb ss s iivis -- v .

B2B pis p i i ii i bs,

s ifi ss, isvi w ks ik, sipy by

ski. B2c pis, , i v -

svs wi sii bk bsvi ss i i i bis,

s y ps iy bs si yi

p if.dis si, ip pi B2B pis kp i

i is , is w is bi psiz wi

s pi iiiivs y. t i bw B2B B2c wi

b isiy b, spiy s iiy pp

y is i wk. as y

s is bk—vib i 2011—y wi s w

w ps i b ws p pi p-

b s pi.20 Lior Arussy. “Creating Customer Experience in B2B Relationships.” Global Customer Experience Management

Organization. http://www.g-cem.org/eng/content_details.jsp?contentid=2203&subjectid=10721 Richard Tait. “What’s Different About the B2B Customer Experience.” Blog post, August 16, 2010.

http://winningcustomerexperiences.wordpress.com/2010/08/16/whats-different-about-the-b2b-customer-experience/ 

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34 THE CUSTOMER EXPERIENCE EDGE

Jujhar Singh has more than two decades of experience as a buyer and seller of 

solutions to improve customer service. He has been a senior manager for devel-

opment of customer-oriented solutions for railroads, travel and the automotive

industries. Jujhar currently is the Senior Vice President responsible for the Lines

of Business Sales, Service and Marketing at SAP.

Reza Soudagar has almost two decades of experience in business consulting,

software development and implementation of customer relationship manage-ment (CRM) solutions. Currently Senior Director of CRM Solutions Marketing at

SAP, he formerly developed CRM strategies for clients at Accenture and he led

product management for Oracle’s CRM suite of applications. Reza has bachelors

and master’s degrees in Electrical Engineering from the Swiss Federal Institute

of Technology and completed an Executive Education program at Harvard

Business School.

 Vinay Iyer brings almost 20 years of experience as an electrical engineer, soft-

ware user, software developer and marketer to this book. In addition to a decade

of work developing hardware and software to help manufacturers improve their

operations, Vinay was a primary force behind the development of CRM software

for one of the leading enterprise applications vendors. He currently is the Vice

President for Global Marketing at SAP.

Dr. Volker G. Hildebrand has almost two decades of experience as an expert

on CRM as a researcher, author, professor and software industry profes-

sional. With a doctorate in business economics, an MBA from the University of 

Mannheim and a degree in business & technology from the University of Stutt-

gart, Volker has been an instructor and pioneering researcher on how to optimize

the relationship between a customer and its suppliers. In addition, he has been a

CRM consultant for various large international companies. Volker is currently Vice

President for CRM Solutions at SAP.

 Volker is the author of several books and more than 100 articles on CRM.

Database Marketing & Computer Aided Selling was published in 1993, and his

articles have appeared in the German edition of the Harvard Business Review,

 absatzwirtschaft (Germany’s leading Sales & Marketing journal), CRM Project,

HMD, Marketing ZFP and SAP Insider journals.

A B O U T T H E A U T H O R S

Flashbook_vX1.indd 34 3/10/11 3:21 PM

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COMINg IN ThE FALL OF 2011

as 300 ps isis, vi pi is b w ipvs pi pby. Visi y bks i

The Customer Experience Edg 

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 Vinay Iyer, Dr. Volker G. Hildebrand, Jujhar Singh, and Reza Soudagar

“When you deliver highly valuable experiences to

 your customers in a scalable, sustainable way,

the reward is loyal, engaged advocates who help yougrow your business.”

“Increasingly, there is little differentiation between

B2B and B2C—employees expect the same level of 

customer experience from business partners that they

expect as customers in their private lives.”

tis vsi  The Customer Experience Edge is

ps - bk, wi wi b pbis by

mgw-hi Pssi i 2011. I wi b

vib i bkss i is.