Customer Experience Management:Hype or Actual Value?

A Short Study by ECC Köln in Collaboration with CONTENTSERV, Hippo and Osudio

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Forward

The number of digital touch-points, that bring consumers into contact with products and brands, has increased

dramatically over the past few years, mainly because of digitalization. As a result of this development, the

purchasing behavior of the company has also changed significantly. Consumers today go through an individual

shopping trip before deciding whether or not to buy a product – the so-called Customer Journey. This is why

consumers require relevant content, at the right time, in the right context and across the right channel.

Therefore, marketers are especially faced with the challenge of continually controlling, optimizing and adapting

individual campaigns and measures to the customers’ changing needs and desires. What is a hit and what is a

miss – which touch points are efficient, which messages reach the target groups the best and what are the

effects of implemented measures? – These are just a few of the questions that companies (must) constantly ask

themselves.

Finally, the interaction of many, different touch points that lay the foundation for Customer Experience – a devel-

opment which outside of marketing, has not been thought of as integral for quite some time. What’s the hidden

importance of this concept? How are companies deploying Customer Experience Management? Which technol-

ogies are used, to create a special Customer Experience for the customer and where are further potentials for

future Customer Experience Management?

These and further questions have been investigated together with the ECC Köln. This current short study explains

the significance of Customer Experience Management for companies – today and in the future.

We would like to thank the team at ECC Köln, which we have come to appreciate as a competent partner.

We thank them for their wonderful collaboration and for the exciting insights learned.

Rohrbach, June 30th, 2016

Alexander Garkisch

Business Development &

Strategic Marketing,

CONTENTSERV GmbH

Sven Lehmkuhl

Sales Manager,

DACH Region

Hippo B.V.

Martin Roxlau

Sales Director,

Osudio Deutschland

GmbH

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Forward | Content

Content

Customer Experience Management: Many Points of Contact vs. One Consistent Experience? 4

Contacts Want to Be Maintained 4

For the Sake of the Customer: but at What Price? 5

Agreement on the Goal: Professional Management of Any Customer Contact 6

Customer Experience Management – Status Quo and Missed Opportunities 7

Mastering Basics in Customer Experience Management 7

What Isn’t Can Still Be: Recognizing the Future Need for More Complex Tools 8

Integrated Customer Experience Management: Until Now, Only For Advanced Users 9

Success with Customer Experience Management 10

Customer Experience Management: Worth It or Not? 10

Implications for Praxis 11

Your Contacts 14

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1 Customer Experience Management: Many Points of Contact vs. One Consistent Experience?

In a modern and increasingly digital age, companies are faced with an ever-increasing number

of communications possibilities for approaching consumers. If you ask marketers, digital

channels are the most important touch points for communicating offers and product informa-

tion to the customer. However, around two-thirds of companies’ still value the classic Print

format as an important contact point.

Contacts Want to Be Maintained

However, more important than the question of used touch points

is how these touch points interact and coordinate with each

other. Today, in addition to offering products and services,

consumers also expect a coordinated and unique shopping expe-

rience – across all channels. This is no easy task, considering the

amount of various points of contact. Therefore, companies’ con-

sideration of a systematic management of communication points is almost inevitable:

Customer Experience Management will become an important influencing factor of entrepre-

neurial success. But what is the relevance of this topic from a marketing perspective?

Fig. 1: Relevant Touch Points

Customer Experience Managementincludes all processes that a company uses to shape, lead and monitor interactions bet-ween customers and the organization, with the aim of creating a sustainable shopping experience.

i•OnlineSurveysfrom117Marketing-responsible companyprofessionals

•SurveyTimeframe:May2016

StudyFacts

66 %82 %

i

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For the Sake of the Customer: but at What Price?

The main reasons for an investment in corporate Customer Experience Management, are

above all, the increase in customer satisfaction (61%) and the increase in own competitiveness

(54%). Additionally, a better target group approach (35%) also speaks in favor of the intro-

duction of Customer Experience Management.

This survey of marketing professionals shows that they are already well aware of the impor-

tance of this topic. Today, around 30 percent already place high priority on Customer

Experience Management. At the same time, however, a glance at the personal assessment of

their own corporate Customer Experience Management shows that one-third of implementa-

tions are described as below-average in comparison to the competition. Obviously there is a

need for German companies to catch up again.

Fig. 2: Value of Customer Experience Management

ECC Köln 2016n = 117

High Priority

Rather High Priority

Rather Low Priority

Low Priority

48%30%

6%

16%

Customer Experience Management: Many Points of Contact vs. One Consistent Experience?

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On the other hand, implementation costs are feared. Around 43 percent of surveyed compa-

nies gave this argument for not investing in the further optimization of Customer Experience.

Furthermore, some 40 percent of marketers express concerns about the privacy of their cus-

tomers. Approximately every third respondent was even afraid of concrete rejection by the

consumer. Against this background of concern, it is certainly useful to know that consumers

who shop online at least once per week are quite willing to provide companies with personal

data1.

Fig. 3: Investing in Customer Experience – Pros & Cons

Agreement on the Goal: Professional Management of Any Customer Contact

Around 62 percent of surveyed Marketing experts view Customer Experience Management as

particularly important for Corporate Marketing over the next four years. Additionally, Social

Media Marketing (71%), Content Marketing (69%) and Mobile Marketing (63%) are valued as

especially important, which proves the extent to which Customer Experience Management

will continue to gain in differentiation and complexity. This is another reason to switch to an

integrated, effective and efficient Customer Experience Management solution at an early

stage, in order to achieve successful customer experience. The goal should be clear: profes-

sional handling of customer contacts.

1 IFH Köln: Perspectives for Data Protection in Europe from Consumers’ Perspective and (Electronics) Retailers, Cologne, 2015.

ECC Köln 2016115 ≤ n ≤ 116

35,3%

Stronger Competitiveness

Increased Customer Satisfaction

Better Target Group-Oriented Approach

High Costs

Protection of Customers Privacy

Rejectionby Customers

43%

39%

32%

54%

35%

61%

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Fig. 4: Important Marketing Topics over the Next Four Years

Mastering Basics in Customer Experience Management

Companies are currently using conventional marketing tools, specifically classic E-Mail

Marketing (82%), Social Media (59%), Online Shop (58%) and Online Content Management

(58%) tools. More complex tools like Customer Experience Management are currently used

less intensively. These include, for example, cross-channel tools like Omnichannel Campaign

Management, which is only used by 30% of surveyed respondents or Product Information

Management (PIM), which is used by less than 50% to date. Likewise, only one in three com-

panies surveyed makes use of Lead Management, in order to win customers and to develop

mature leads towards the point of purchase. Finally, the low utilization of more automated,

advanced measures also signaled a relatively low degree of professionalizing Customer

Experience Management within the surveyed companies. As a result, in many areas the

potential for effective and efficient management of customer contacts is left out.

iAlthoughthetopicCustomerExperienceManagementiscomparativelynew,62%ofrespondentssurveyedalreadyhaveitontheiragendaforthecomingfouryears.

2 Customer Experience Management – Status Quo and Missed Opportunities

Observing the status quo of companies and the Customer Experience tools they use, it is clear

that their main focus is on results that are directly visible to customers. While this is under-

standable, one of the main reasons for this activity is customer satisfaction.

ECC Köln 2016 n = 117

Content Marketing

Social Media Marketing

Customer Experience Management

Mobile Marketing

72 % 69 % 63 % 62 %

Customer Experience Management – Status Quo and Missed Opportunities

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What Isn’t Can Still Be: Recognizing the Future Need for More Complex Tools

According to survey results, the structure of the tools used in the next one to two years will

hardly change. E-Mail (86%), Social Media (73%) as well as Online Content Management

(70%) and Online Shops (67%) will remain the most important marketing tools.

However, the perceived need for more complex tools generally increases. The majority of

market experts surveyed agree that a Product Information Management system (64%) will be

intermediately necessary within their Marketing department. Similarly, Lead Management,

Marketing Content Platforms, and Omnichannel Campaign Management are desired in the

future by over half of companies surveyed. These tools all have automated characteristics that

are designed to make working more efficient. These technical solutions can be used to man-

age very large amounts of data, thus alleviating the amount of personal effort.

Fig. 5: Use of Marketing Tools: Status Quo vs. Necessity in the Next 1 – 2 Years

E-Mail Marketing

Social Media Marketing Tools

Omnichannel Campaign Management

Marketing Workflow and Collaboration Tool

Digital Asset Management (DAM)

Lead Management (Marketing Automation)

Marketing Content Platform (MCP)

Product Information Management (PIM)

Web Shop

Web Content Management

68 %57 %

71 %

82 %86 %

59 %74 %

51 %31 %

54 %30 %

45 %33 %

54 %34 %

54 %34 %

64 %43 %

58 %

Current Usage Necessity in the Next 1 – 2 Years ECC Köln 2016

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Integrated Customer Experience Management: Until Now, Only For Advanced Users

In order to ensure a consistent purchase experience across all channels and touch points, all

relevant data within the company must be collected, coordinated and targeted. This is only

possible, if different data sources are linked to one another, therefore obtaining all informa-

tion for further processing. The key to this is integrated Customer Experience Management.

But how do today’s companies react in an integrated and holistic manner?

The results show: more than half of companies in marketing currently already work with pro-

totypical customer profiles, so-called buyer personas also known as potential customers.

However, we should note that only about 48% of them utilize the data’s full potential by

providing targeted content to their customers. Similarly in Marketing Analytics, around 72%

of surveyed marketing experts use Marketing Analytics in their companies – from these, only

half receive detailed evaluations. Currently only one in three can utilize this detailed data to

better reach customers.

Apparently a large amount of data is already going unused when approaching customers. All

in all, it can be concluded that companies are still at the beginning of an integrated Customer

Experience Management process. These approaches to gathering relevant data are clearly

understood, but there is still a lack of consistent strategy continuation, in order to link individ-

ual data to useful information.

Fig. 6: Limited Processing of Collected Data

Do you create specific content for different Buyer Personas?

How detailed are your Marketing Analytics?

Buyer Personas

Marketing Analytics

52 %

35 %

48 %

15 %

22 %

No

Detailed evaluations and targeted use

Detailed evaluations, although rarely targeted use

Only limited evaluation details

Yes

52 %

72 %

ECC Köln 2016

Customer Experience Management – Status Quo and Missed Opportunities

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3 Success with Customer Experience Management

Above all, the most important aspect in any business decision is the question of cost-benefit

ratio. Customer Experience Management is also measured by it. If you ask marketing experts

how high the contribution of Customer Experience Management for the company’s overall

success is, the majority are in agreement.

Customer Experience Management: Worth It or Not?

More than two-thirds of marketers attest that Customer Experience Management measures

are high, if not very high contributions to a company’s overall success. Thus, not only do cus-

tomers benefit from an excellent customer experience, but companies also benefit. While

implementation costs are seen as a counter-argument relative to this progressive step for-

ward, at the end of the day, integrating Customer Experience Management is a win-win

situation for consumers and companies.

More than two-thirds of marketing experts surveyed are united: CustomerExperienceManagementdelivers a (very) high contribution to a company’ssuccess.

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4 Implications for Practice

Consumers today and in the future pass through the Customer Journey, with its

ever-increasing complexity and higher number of company requirements. From a

marketer’s perspective, this is one reason why the management of Customer

Experience holds such high relevance: Ultimately, the targeted customer approach

determines a company’s success.

The Basics Remain the Same

Besides Online Shops, E-Mail Marketing, Social Media Marketing and Online Content

Management continue on as basic elements of marketing managers’ repertoire. Today these

basic applications are intensively used in companies’ customer approach and build the basis of

Customer Experience.

i

Urgently Catching Up By Way of Efficiency-Enhancing Automation

In the future, more complex marketing tools that are currently seldom used will also become a

part of the marketer’s toolbox. A majority of those surveyed consider the usage of Product

Information Management (PIM) systems, Lead Management, and Omnichannel Campaign

Management as important for the next one to two years. Through the appropriate automa-

tion, these tools all serve in managing large amounts of data and allow for more efficient work

processes.

Excellent Customer Experience Management: Data First Becomes

Information, Through Meaningful Connections

The collection of data is merely the prerequisite for a targeted customer approach. Far more

important, is a meaningful connection and further processing of data – only then can simple

data become valuable customer information which can be discovered in the Customer Journey’s

entrance. More concretely, for companies this means that within the first step of the Customer

Journey, data from marketing analytics, targeting and customer profiles must coordinate with

each other. Only then is it possible to selectively target customer-specific content.

Excellent Customer Experience Management Pays Off –Monetarily Too!

Increase in customer satisfaction and own competitiveness alone are reason enough to invest

in the roll-out of a Customer Experience Management solution. Moreover, according to

experts, the implementation of a well-functioning system also achieves a considerable contri-

bution to company success!

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Success with Customer Experience Management | Implications for Praxis

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RetailExpertsintheDigitalAge

Incorporated with the renowned marketing institute IFH Köln, the ECC Köln is a contact partner for analysis and consulting in the

field of progressive strategy – involving trends and developments within the world of digital retail. The ECC Köln develops and

creates individual researches and studies about innovative retail topics worldwide, for example Cross-Channel Management,

Mobile Commerce or Payment.

Retailers, manufacturers and service providers profit from the high methodological competence, extensive expert know-how and

strategic consulting of the ECC Experts. ECC Köln’s performance spectrum includes concepts for excellence in E-Commerce chan-

nels and successful Cross-Channel Management, as well as the development of new markets and target groups.

What can we do for you? www.ecckoeln.de

RESEARCH

KÖLNO N L I N E E X P E R TS

Market Data & Individual Market Research with

High Methodological Competence

CONSULTINGStrategic Consulting for E-Commerce and

Cross-Channel

INFORMATIONStudies & Analysis of Innovation Digital Retail Topics

NETWORKINGStrong Network with Strong Presence: Lectures, Work-shops, Events, ECC Club

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As a technology leader in the areas of Product Information Management and Digital Asset Management, CONTENTSERV offers

end-to-end Marketing Software Solutions that make daily work easier for thousands of marketing users: All Marketing processes

are streamlined, thus providing enormous cost and time savings. For fast and consistent communication across all channels – both

online and offline. Focus and Statista have named the company a Growth Champion 2016 and the LNC Market Performance Wheel

rated CONTENTSERV as an excellent solution. For over 15 years, the software provider has been actively on the market and draws

from experience in several hundreds of projects.

Hippo is on a mission to make the digital experience more personable for every visitor. We’re redefining the CMS space by engi-

neering the world’s most advanced content performance platform, designed to help businesses understand their visitors – whether

they are known or anonymous – and deliver the content they value in any context and on any device.

With Hippo, you have continuous insight into audience engagement with content, clarified through concrete measurements that

support your company’s goal. Hippo creates a deep understanding of existing personas and helps to create new ones so that you

can optimize any Customer Journey.

Osudio is one of the Europe’s biggest E-Business specialists. In the E-Business sector for 20 years, they know what works and what

doesn’t, which really promotes growth in this area of business. Many of our customers are market leaders within their industries and

we play our part in ensuring that they remain so.

Osudio supports your B2B- and B2C customers in reaching seamless purchasing experience across all distribution channels. Through our

know-how in product information management (PIM), we shape the right foundation for an omni-channel presence, that also includes

Print. This creates an E-Commerce solution that enables the best brand experience, thus increasing sales.

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Your Contacts

Dipl. –Kff. StefanieDrechsel has been a Senior Project Manager at the IFH Institut für

Handelsforschung GmbH since April 2014, and there established the ECC Köln. She success-

fully completed her business studies within the concentrations of Marketing and HR, as well

as Work and Organizational Psychology at the Justus-Liebig-Universität in Gießen, Germany.

She has extensive experience in qualitative and quantitative market research.

Alexander Garkisch has many years of expertise in Sales and Consulting of Marketing

Software like MRM, PIM, MAM, CRM and Digital Marketing as well deep know-how in the

implementation of content-related projects. In addition, his well-founded experiences in con-

sulting of digitalization projects displays his clear Marketing focus. Alexander Garkisch has

many years of experience in the development of Go-to-Market strategies. At CONTENTSERV,

he is responsible for Business Development and Strategic Marketing, as well as Strategic Key

Account Management.

SvenLehmkuhl, VP of Sales in the DACH Region, has been in the Software Business for

more than 16 years and has worked for leading CMS providers. For more than 8 years, he was

responsible for RedDot / OpenText. In the years following, he founded the German branch of

Sitecore, and with its high growth rate it grew to over 15 employees. Since the end of 2015,

he is the Sales Manager for the DACH Region at Hippo.

MartinRoxlau, Sales Director, has been working for Osudio Deutschland GmbH since 2008

and is responsible for new customer business. He has achieved more than 16 years of industry

experience within the areas of PIM (Product Information Management) and E-Commerce.

Before Osudio, Mr. Roxlau supported various software providers and was responsible for

around 100 implementation projects. His strengths include particularly innovative solution

concepts.

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© 2016 IFH Institut für Handelsforschung GmbH. All Rights Reserved. Reprint, Preferably, only with permission from the institute.

Graphics and Translation: Melanie Grob

Images: CONTENTSERV (Titelbild); fotolia.com | © Syda Productions (Page 10), © Anatoly Maslennikov (Page 11)

Published by:

ECC Köln

c/o IFH Institut für Handelsforschung GmbH

Dürener Straße 401b

50858 Cologne

T +49 (0)221 94 36 07 70

F +49 (0)221 94 36 07 59

www.ecckoeln.de

CONTENTSERV GmbH

Werner-von-Siemens-Str. 1

85296 Rohrbach

Germany

T +49 (0)8442 9253 - 0

www.contentserv.com

Hippo B.V

Blumenstraße 1

26121 Oldenburg

Germany

T +49 (0)441 36138 290

www.onehippo.com

Osudio Deutschland GmbH

Pierbusch 17

44536 Lünen

Germany

T +49 (0)231 90 03 81 - 0

info@osudio.com

www.osudio.com