digital customer experience, two steps ahead

Pascal Spelier, May 12th 2015

Digital Customer Experience, two steps ahead

3

We live in a digital era

4

Branch ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

40%

50%

60%

70%

80%

90%

20% 25% 30% 35% 40% 45% 50% 55% Customers with positive experience with channel (%)

Cha

nnel

Impo

rtanc

e (%

)

2011 2014 Gen Y (18-34 years) Others

Gen Y drives importance digital

5

“Yes, they’ve got WiFi here”

6

It is not the strongest of the species that survives,

nor the most intelligent that survives.

It is the one that is the most adaptable to

change.

- Darwin -

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Digital Transformation \ di-jə-təl tran(t)s-fər-ˈmā-shən\ (1) the use of digital technology to radically improve the

performance and/or reach of a company.

Digital transformation: a recipe for becoming digital

8

Digital Master: 9% more turnover, 26% more profit

DIGITAL MASTER

Dig

ital C

apab

ility

Leadership Capability

9

Digital Master: 9% more turnover, 26% more profit

Dig

ital C

apab

ility


DIGITAL MASTER

10

Dig

ital C

apab

ility


The What:Using digital technology to transform the customer experience,

operational processes and business models

The How:Successful transformations depend as much

on how firms manage digital transformation than solely on implementing new technologies

Digital masters: 9% more turnover, 26% more profit

11

Customer understanding

Customer touch points

Top line growth

Worker enablement

Performance management

Process digitization

Digital globalization

New digital businesses

Digitally-‐modified businesses

Digital Capabilities

(Digital) Customer Experience Customer Experience Operational

Process Customer Experience Business Model

Your building blocks to a digital organization

12

Create a shared transformative vision of

the digital future

Engage employees at scale to make vision a reality

Fuse IT & business communities to build digital skills & transform

technology platforms

Establish strong digital governance to steer the course

TECHNOLOGY VISION

ENGAGEMENTGOVERNANCE

Leadership is what turns Digital Investment into Digital Advantage

13



Top line growth

Worker enablement









Customer Experience goes together with processes

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Product/service differentiation

Employee satisfaction

Process efficiency Process effectiveness

-‐ Customer satisfaction

-‐ NPS

-‐ Sales

-‐ Share of wallet

-‐ Retention

-‐ Referral

-‐ NPS

-‐  Growth revenue

-‐  Market share

-‐  Profitability

-‐ Share holder value

People

Product/service offering

Process

Customer Experience Customer Behaviour High level company KPI’s

Leading indicators Lagging indicators

Chan

ges

in re

gula

tions

and

tech

nolo

gy

deve

lopm

ents

Context

Source: based on Schmitt – Managing the Customer Experience

Determine your motivation for improving customer experience

15

Price

Product

Service (Digital) Customer Experience

The road to loyal customers

‘Commodity’ Distinctive by ‘value added services’

16

Customer Life Cycle

Awareness Orientate Purchase Receive Use Service Advise

Creating a seamless (Digital) Customer Experience by (re)designing the Customer Journey

17

Simplified Customer Journey

18

Customer Journey

Awareness Oriëntation & comparing Advice Insure Advice

prevention Damage

& claiming

Technology

Life events / Products / Services

Voice of the customer: I want..., I need...

Voice of the employee: I want..., I need...

Service Renew insurance

Car Insurance

19

Customer Insights 1

Customer Experience Design 4

Customer Journeys 3

Customer Experience Strategy 2

Customer Experience Monitoring 5

20



Top line growth

Worker enablement









It all starts with customer understanding

21

Age, income, location

Transactions Products/services bought Property,

unemployment Preferences regarding

products/services Preferred channels Sustainable

customer relation

Last product bought and

value

Engagement with different

media

‘Depth’ of product

categories

Behaviour regarding

recurring sales or switch

Use of services

Taking part in loyalty

program

Customer DNA

Traditionally

Use devices

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‘Feature’ Vector Customer X: (A,B,C,D,E,....K)

Share of wallet

Preferred channels

Churn

Life events

Next best sell

Et cetera

Customer DNA Derived from data

Bron: IBM

23

More rocket science: clustering

Bron: IBM

24

ABOUT ME Entrepreneur Ik ben Don (47) en ik run mijn eigen Reclamebureau. Ik heb het in de afgelopen jaren laten groeien tot 15 man personeel en 7 vaste freelancers, met wie ik vaak samenwerk. Ik ben weinig thuis, maar woon wel samen.

MY LIFE

Gerneral management

Sales & Marketing

Operations

MY COMPANY

DAY TO DAY ACTIVITIES

//////////////////////////////////////////////////////////////////

Ik werk veel, vaak en hard. Daardoor heb ik weinig tijd voor andere zaken. Hobbies heb ik niet. Tijdgebrek is sowieso een issue. Ik kan moeilijk zaken uit handen geven. Mijn doel met het bedrijf is om verder te groeien, dan 15 man personeel en 7 vaste freelancers, zodat ik financieel onafhankelijk kan zijn.

Sinds de oprichting zijn we hard gegroeid door de inzet van mijzelf en mijn medewerkers: work hard, play hard. Iedere dag weer richten we ons op tevreden klanten.

Mijn dagen zien er altijd anders uit, ik moet altijd mijn tijd verdelen over verschillende zaken, waaronder de verschillende vrouwen in mijn leven. Ik ben verantwoordelijk voor het aantrekken van nieuwe klanten en de creatieve campagnes. Ik bezoek naast mijn werk af en toe ook beurzen en congressen. Cijfers interesseren mij niet. Daar heb ik mijn accountant voor.

“Risk doesn’t scare me”

Example persona partly in Dutch

Don Draper

25

Data-derived persona’s

Rank Action Cluster % of Customers

% of Spend

1 Brand lovers 7% 35%

2 Regular customers 12% 15%

3 Online ‘socialites’ 8% 14%

4 ‘Poor’ customer 7% 6%

5 Promising customers 2% 7%

6 Make me an offer 11% 5%

7 Negotiators 2% 4%

8 Try and find me 5% 2%

9 Non loyalists 36% 8%

10 Spoiled customers 1% 2%

11 I’ll be back, maybe 3% 1%

12 Just looking, not buying 6% 1%

Retail customer identified

2 unknown target groups

26



Top line growth

Worker enablement









Know your customer and you are ready for top line growth

27

Cross-channel ‘Marketing Engine’ Observation

(data & information)

Trigger

(right message, right channel)

Interpretation (intelligence)

Reaction (call to action)

28



Trigger




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Our view of the customer should be a collection of observations

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Observations…

… in the de customer journey (also outside the borders of the organization!)

… in processes

… in transactions

… in the context

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Trigger




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Observation Interpretation Message Reaction

The customer with a smartphone is at the

airport.

The customer doesn’t have a travel

insurance with it’s insurer. Possibly he

has a travel insurance with a competitor.

The customer is informed by a push

notification that there is a possibilty of not being insured and

the subsequent risk.

The message leads to several call to actions. For example calling an agent who can arrange the travel

insurance or buying the travel insurance directly (﴾STP)﴿ via the

smartphone.

Better services & more sales with relevant & personal messages

33

The future marketeer is a nerd with empathy

Privacy as a currency

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Source: online survey Edelman ‘Brandshare’ 15.000 respondents in 12 countries

Privacy as a currency

35



Trigger




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richness -‐ +

confidential -‐ +

urgent later now

relevant 1-‐n 1-‐1

intrusive -‐ +

archive -‐ +

richness -‐ +

confidential -‐ +

urgent later now

relevant 1-‐n 1-‐1

intrusive -‐ +

archive -‐ +

Message Channel

Match

Find the ideal match between message and channel

37



Trigger




38



Top line growth

Worker enablement









Improve customer experience with new customer touch points

39

We never look up!

40

We Never Looked up

41

Isn’t it time for a mobile strategy?

Plateau →

Time →

1 “I want an app too”

2 Mobile 1.0 ‘quick & dirty’

3 Mobile 2.0 ‘neatly integrated’

4 Mobile, leveraging touch points

1

2

3

4

42

Isn’t it time for a mobile strategy?

Plateau →

Time →

1 “I want an app too”

2 Mobile 1.0 ‘quick & dirty’

3 Mobile 2.0 ‘neatly integrated’

4 Mobile, leveraging touch points

1

2

3

4

Online

________

43

Mobile is the most powerful sales- and service channel of the future NL: a mobile

customer has 11 times more ‘contact’

47



Top line growth

Worker enablement









Prerequisite for improving experience is process digitization

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Customer Journey

Awareness Orientate Buy Receive Use Service

Each Customer Journey has a customer side and an organization side

Processes

Midoffice

Customer Relationship

Management

Customer Financial

Management

Document Management

CommunicationManagement

Business Process

Management Security

Advise

49

‘Beware of putting lipstick on a pig‘‘

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How to become really digital?

FRONTEND

hello customer

ISN’T THIS

ENOUGH?

self

directed

CAN I DO MY OWN

BANKING?

the customer is

becoming part of

the processes!

only decoration?

51



Top line growth

Worker enablement









Disruption forces you to modify or create new business models

52

Source: Clayton Christensen (Harvard)

Performance

Time

Performance improvement mainstream

Potentially disruptive technology

Disruptive technologies move up market and eventually displace competitors

53

Source: Clayton Christensen (Harvard)

Performance

Time

Disruptive technologies move up market and eventually displace competitors

Dvd per mail

Digital movies

Digital series via Ps3/4, Xbox, tablet

54

Customer Distribution / Front Office

Manufacturing / Back Office Market Infrastructure

Individual

Institution

Inve

stin

g /

Wea

lth M

gmnt

Pe

rson

al

Savi

ngs

Lend

ing

Capi

tal

Raisi

ng

Source: based on illustration ‘Financial Services Value Chain Supermarket Age’ by Doug Nelson

Paym

ents

= flow of capital

Current value chain is under pressure…

55

Customer Distribution / Front Office

Manufacturing / Back Office Market Infrastructure

Individual

Institution

Inve

stin

g /

Wea

lth M

gmnt

Pe

rson

al

Savi

ngs

Lend

ing

Capi

tal

Raisi

ng

Source: based on illustration ‘Financial Services Value Chain Next Gen’ by Doug Nelson

Paym

ents

…Financial services unbundled and revisited

Independent, digital front ends API-‐driven middle-‐ and back office

Electrification of market infrastructure

Independent , digital front ends and middle-‐ and back office

= flow of capital

56

Awareness Orientation Buy Receive Use Service Advice Retention

How to become really digital?

360° customer view (Social-‐CRM) Workflow management Social listening / external data sources

Datawarehouse / realtime data Big data analytics / predictive modelling Digital marketing-‐ & campaigns (inbound)

58

Pascal Spelier

Managing Consultant Digital Customer Experience |

Banking & Insurance

Reykjavikplein 1, Utrecht, The Netherlands

Mobile:+31 (0) 6 53 29 90 17 [email protected]

Thank you!

@spelier www.slideshare.net/pascal.spelier www.linkedin.com/in/pascalspelier

digital customer experience, two steps ahead

Technology

digital transformation

digital investment

digital skills

digital future

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digital era

use of digital technology

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