Listening to the Customer7 N e w R e s e a r c h F i n d i n g s
Stefan Tornquist, VP Research,
Econsultancy
Elizabeth Magill, Program Leader,
Customer Analytics Marketing, IBM
Econsultancy
Stefan Tornquist
VP research, NA
@SKTornquist
Elizabeth Magill
Program Leader,
Customer Analytics Marketing,
IBM
@emagill
The studies and some context
A look at the marketer and consumer studies behind this talk
Findings
Top findings on current trends and eternal truths in customer experience design and
management
Conclusion
Mind the gap between self-perception and reality
Q&A
Today
Study 1: Marketers
276 Brands
Revenues $200 million+
Director+ (VP/C-suite/Board 42%)
Broad range of B2C industries
Online/offline/call centers 1
Study 2: Consumers
1,136 Consumers
50/50 gender
18+ nationally representative
40% HH above $100K
At least one multi-channel relationship
276 Brands
Revenues $200 million+
Director+ (VP/C-suite/Board 42%)
Broad range of B2C industries
Online/offline/call centers
2
Marketers
37% 35%28%
38%34%
29%
19%
20%
24%
6%9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINEcustomer experience compared to
competitors
We deliver a superior ONLINEcustomer experience compared to
competitors
We deliver a superior MOBILEcustomer experience compared to
competitors
Strongly agree
Somewhat agree
Neutral
Somewhat disagree
Strongly disagree
Question: Do you agree or disagree with the following statements? N = 265
75% believe they deliver a superior
offline experience
Marketers
37% 35%28%
38%34%
29%
19%
20%
24%
6%9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINEcustomer experience compared to
competitors
We deliver a superior ONLINEcustomer experience compared to
competitors
We deliver a superior MOBILEcustomer experience compared to
competitors
Strongly agree
Somewhat agree
Neutral
Somewhat disagree
Strongly disagree
Question: Do you agree or disagree with the following statements? N = 265
69% believe they deliver a
superior online experience
Marketers
37% 35%28%
38%34%
29%
19%
20%
24%
6%9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINEcustomer experience compared to
competitors
We deliver a superior ONLINEcustomer experience compared to
competitors
We deliver a superior MOBILEcustomer experience compared to
competitors
Strongly agree
Somewhat agree
Neutral
Somewhat disagree
Strongly disagree
Question: Do you agree or disagree with the following statements? N = 265
57% believe they deliver a superior
mobile experience
Why they leave…
Banks
Cable/Satellite
Internet
Mobile service
49%…switched in 2014
Question: In the last year have you changed providers in any of the following areas? N = 1,010
Why they left…
Banks
Cable/Satellite
Internet
Mobile service
30%…because their old company failed
Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473
Why they left…
Banks
Cable/Satellite
Internet
Mobile service 59%…new company offered something
better
30%…old company failed
Question: When you switched [vendor type chosen], was it more because [vendor type chosen] did something wrong or your new [vendor type chosen] offered something better? N = 473
Why they left…
30%…old company failed
51%
20%
20%
9%
Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
Why they left…
30%…old company failed
51%
20%
20%
9%
Experience
Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
Why they left…
30%…old company failed
51%
20%
20%
9%
Experience
Product
Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
Why they left…
30%…old company failed
51%
20%
20%
9%
Experience
Product
Pricing
Other Question: Which of the following best describes what your old [vendor type chosen] did wrong? N = 473
Why they left…
59%…new company offered more
29%42%
24%
6%
Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
Why they left…
29%42%
24%
6%
Experience
Product
59%…new company offered more
Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
Why they left…
29%42%
24%
6%
Experience
Product
Pricing Other 59%
…new company offered more
Question: What did your new [vendor type chosen] offer that led you to switch? N = 473
Multi-channel consumers
Average
Research products Buy products Not applicable
Store 50% 78% 15%
Website 81% 82% 3%
Mobile app 51% 35% 42%
Catalog 34% 28% 52%
18-34 years old
Research products Buy products Not applicable
Store 51% 75% 13%
Website 80% 82% 2%
Mobile app 64% 46% 22%
Catalog 41% 29% 43%
Affluent ($100k+)
Research products Buy products Not applicable
Store 54% 82% 15%
Website 93% 84% 1%
Mobile app 60% 40% 35%
Catalog 36% 23% 52%
Women
Research products Buy products Not applicable
Store 51% 75% 13%
Website 81% 82% 2%
Mobile app 49% 32% 44%
Catalog 37% 29% 50%Question: What are the different ways you shop with your favorite retailer? N = 587
Marketers
81% of consumer marketers
say they have a holistic view of
their customers…
Question: Do you feel like your organization has a holistic view of your customers…do you have a view of individuals and segments across interactions and channels?
Responses: Yes, we have a holistic view / We have a good view of our customers, and are close to a holistic one. N = 265
A holistic view?
37% of consumers say their
favorite retailer understands
them…
Question: Still thinking about your favorite retailer – do you feel that they personalize the shopping experience (products, deals and other information) for you as an individual? N = 587
A holistic view?
22% of consumers say
average retailers understand
them…
Question: In general, do the companies you do business with personalize the experience (deals and other information) for you as an individual? N = 1,020
Marketers
37% 35%28%
38%34%
29%
19%
20%
24%
6%9%
14%
1% 2% 5%
0%
20%
40%
60%
80%
100%
We deliver a superior OFFLINEcustomer experience compared to
competitors
We deliver a superior ONLINEcustomer experience compared to
competitors
We deliver a superior MOBILEcustomer experience compared to
competitors
Strongly agree
Somewhat agree
Neutral
Somewhat disagree
Strongly disagree
Question: Do you agree or disagree with the following statements? N = 265
Marketers believe they deliver a
superior experience
Consumers
35% say “usually relevant” about their favorite
companies
How often are communications relevant?
Question: In general, how relevant are the marketing messages you receive from your favorite [retailer or travel/hospitality]? N = 1,004
Consumers
21% say “usually relevant” about average
companies
How often are communications relevant?
Question: In general, how relevant are the marketing messages you receive from most [retailer or travel/hospitality]? N = 1,004
/Three
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they deliver a superior customer experience.
They don’t.
When consumers say “trust”…
251
276
348
439
441
642
831
Products that are customized for me
Very respectful of my privacy
Lowest prices
Easiest to shop with, save me the most time
Best service when I have an issue
Treat me well as a loyal customer
Very trustworthy with my data/information
Question: If you were building the perfect company to serve you, what would be most important? N = 618
Yes, I’ll share my information…
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
0% 25% 50% 75% 100%
Who I am specifically – my personally identifiable information
Where I am – location and time data
Who I am in general – my age range, gender, town, etc.
How I feel about their brand – from comments, past issues, loyalty info, etc
My history with the company – my past purchases, returns, issues, etc.
What I want – kinds of products I like, what I’m looking for
All companies Trusted companies
Question: How do you feel about companies having the following information? N = 618
Yes, I’ll share my information…
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
88%
89%
0% 25% 50% 75% 100%
Who I am specifically – my personally identifiable information
Where I am – location and time data
Who I am in general – my age range, gender, town, etc.
How I feel about their brand – from comments, past issues, loyalty info, etc
My history with the company – my past purchases, returns, issues, etc.
What I want – kinds of products I like, what I’m looking for
All companies Trusted companies
Question: How do you feel about your favorite [retailer or travel/hospitality] company having the following information? N = 843
Marketers
37%
38%
67%
73%
79%
80%
61%
72%
84%
90%
88%
89%
0% 25% 50% 75% 100%
Who I am specifically – my personally identifiable information
Where I am – location and time data
Who I am in general – my age range, gender, town, etc.
How I feel about their brand – from comments, past issues, loyalty info, etc
My history with the company – my past purchases, returns, issues, etc.
What I want – kinds of products I like, what I’m looking for
All companies Trusted companies
1st
Consumer Question: How do you feel about companies having the following information? N = 618
Marketer Question: Which of the following types of information are most important for your customer experience management? N=263
3rd
2nd
/Four
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they deliver a superior customer experience.
They don’t.
To deliver value we need information.
Marketers
64%
27%
6%
2%0%
0%
10%
20%
30%
40%
50%
60%
70%
Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree
“Identifying high value customers is vital to our growth”
Question: Do you agree or disagree with the following statements? N=257
Marketers
64%
27%
6%2% 0%
0%
10%
20%
30%
40%
50%
60%
70%
Strongly agree Somewhatagree
Neutral Somewhatdisagree
Stronglydisagree
“Identifying high value customers is vital to our growth”
P a r e n t s
M e n
W o m e n
S i n g l e
M e d i a n H H
Mid-career
Marr ied
Affluent
MillenialsQuestion: Do you agree or disagree with the following statements? N=257
Youth (18-34)
• 24% more likely to download store/service apps
• 20% less likely to have bought from an email in last 12 months
• More comfortable sharing their data
• More demanding for benefits in sharing it
• More multi-channel in general
• Even more multi-channel with preferred brands
Affluent HH ($100k+)
• 49% more likely than Millennials to have bought from an email
• 25% more likely than the average to buy from a mobile device
• More demanding of service
• More controlling of their information
• More likely to leave because of a mistake
• Less likely to jump for a better price
/Five
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they deliver a superior customer experience.
They don’t.
To deliver value we need information.
Our most desirable audiences will demand the most of us.
Conflict happens
42% of consumers have had a conflict with
a trusted company in the last year.
Question: In the last year, have you had a conflict with a company you do business with? For example, couldn’t return or exchange something, charged for something you didn’t buy, had a service
request they couldn’t handle, etc.? N = 1,004
Marketers
37%
52%
8%3%0%
How satisfied are you with your ability to resolve customer conflicts?
Very satisfied
Somewhat satisfied
Neutral
Somewhatunsatisfied
Very unsatisfied
89% of brands are
satisfied with their
ability to resolve
conflicts…
Question: How satisfied are you with the organizations ability to resolve customer conflicts? N=252
But…
28% of consumers
said that the company
resolved the conflict
very effectively
28%
31%
17%
24%
How effectively did [that company] deal with your issue?
Very effectively
Somewhateffectively
Somewhatineffectively
Veryineffectively
Question: How effectively did [company type chosen] deal with your issue? N=424
And it matters…
24%
Very ineffective
46% are still customers
13% shop/use at same levels
98% shared their story
Question: How effectively did [company type chosen] deal with your issue? N=424
And it matters…
28%
Very effective
71% are still customers
46% shop at the same levels
89% shared their story
Question: How effectively did [company type chosen] deal with your issue? N=424
/Six
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they deliver a superior customer experience.
They don’t.
To deliver value we need information.
Our most desirable audiences will demand the most of us.
We must understand the perilous parts of the customer journey.
Marketers
48%
40%
8%3%1%
Our growth depends on personalizing the customer’s experience
Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree
88% agree that their
growth depends on
personalizing the
customer’s experience
Question: Do you agree or disagree with the following statements? N=234
Marketers
Most organizations lack the
essential capabilities or tools
to fulfill on that promise… 34% 37% 37%
0%
15%
30%
45%
60%
75%
We do a good job oflinking our online and
offline customerexperiences
We have the tools weneed to provide
exceptional customerservice andexperiences
We are able to tiecustomer experienceactivities to revenueand/or cost savings
Question: Do you agree or disagree with the following statements? N=234
/Seven
Most customers are lost for reasons we can control.
Our approach to the customer is obsolete.
Businesses think they deliver a superior customer experience.
They don’t.
To deliver value we need information.
Our most desirable audiences will demand the most of us.
We must understand the perilous parts of the customer journey.
The intent is there. The tools are available. The gap is execution.
Stefan Tornquist
VP research, NA
Econsultancy
@SKTornquist
Questions and Answers
Elizabeth Magill
Program Leader,
Customer Analytics Marketing,
IBM
@emagill
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