how to create a great digital customer...

How To Create A Great Digital

Customer Experience

Tim Sheedy, Principal Analyst

November 2015

@timbo2002

© 2015 Forrester Research, Inc. Reproduction Prohibited 2

Age of manufacturing

Mass manufacturing

makes industrial

powerhouses

successful

• Ford

• Boeing

• GE

• RCA

Age of distribution

Global connections

and transportation

systems make

distribution key

• Wal-Mart

• Toyota

• P&G

• UPS

Age of information

Connected PCs and

supply chains mean

those that control

information flow

dominate

• Amazon

• Google

• Comcast

• Capital One

Age of the customer

Empowered buyers

demand a new level of

customer obsession

• Macy’s

• Salesforce.com

• USAA

• Amazon

Welcome to the age of the customer


Four major initiatives to win, serve and retain customers

Consumers are fundamentally digital


of store sales are influenced online

52%

Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, media.pathfinder.gr/cman_img_f/9549445219531437587.jpg


of online sales now from mobile & tablet

28%

Source: The State of Retailing Online 2015. Base: 41 retailers.


Digital Business Is Different


Digital business is different

Bolt-on Digitally enhanced

products and services

Functional efficiency Cross-functional

agility

Safety and cost

reduction

Speed and

innovation

Digital

touchpoints

Operational

Excellence

Technology

attitude

Digital business Traditional business

Better products Enhance customer's

ecosystem of value Value proposition

9 © 2015 Forrester Research, Inc. Reproduction Prohibited

Inside-out

Cap

ab

ilit

ies

Processes

Technologies

Resources

Serv

ice

Replace your inside-out viewpoint . . .

Digital prey

10 © 2015 Forrester Research, Inc. Reproduction Prohibited

Inside-out Outside-in

Cap

ab

ilit

ies

Processes

Technologies

Resources

Journeys

Contexts

Touchpoints

Pers

on

as

Serv

ice

Cu

sto

mer

ob

jectives

. . . with an outside-in, customer value perspective

Digital prey Digital predator


Retail As A Case Study Of Digital

Transformation

Digital store initiatives will not succeed

unless retailers: 1. Align around digital transformation.

2. Create a friction-less customer life cycle.

3. Focus on associates, too.

4. Turn good quality data into good quality insights.

5. Have good technology integrations.

6. Address privacy concerns.


1. Align the organisation around digital transformation


› Reclaim product research in the

store.

› Increase consistency online,

offline, and via mobile.

› Personalise and enhance the

in-store experience.

› Simplify and expedite deal making

2. Focus on breaking down existing friction points in the customer life cycle


› Associate engagement

touchpoints

3. Associate adoption is mission-critical

› Become obsessed with helping

associates accomplish their goals.

› Empower the associate with the

technology to be the conduit

between enterprise data and the

customer.

› Prepare associates to interact with

digitally empowered customers.

4. Good quality data is turned into good

quality insights.


Example: Stitch Fix has mastered insights › Stitch Fix predicts what a customer

wants before she even orders it —

clothes you want show up at the door.

› The company is insights-driven where

predictive models learn from people,

and people learn from models.

› Stitch Fix has built digital insights and

learning into their business — a

constant state of controlled

experimentation.

› The result: a disruptive shift in business

models and fashion retail experiences

5. New

technologies

must work

well with

existing

enterprise

systems.


It’s time to build a digital experience platform

Extensions

+ Custom

code

Commerce Service

Customer data Content

Other

services

M a rk e t in g

A n a l y t i c s

+

I n s i g h t s

C on t e xt ual deli v e r y a t “ t he gla ss ”

T ou c h poin t s

6. Privacy concerns must be addressed.


Create a compelling digital vision

Inspire employees to manifest your digital business

How will we

create value for our

customers?


Your digital vision must . . .

›Focus on the customer: How will we create value

for customers in the future?

› Inspire employees: How must our business

change?

›Paint a picture of future success: What will our

business look like in the future?


Metrics of success

›Rate of new customer acquisition

›Average lifetime value of customers

›Customer attrition rate

›Customer experience index score

›Brand sentiment analysis/brand value

›Net change in sales (not just digital channels)


Journey: Reduce time and remove pain ›Examine the journey.

›Analyse touchpoints.

›Eliminate

unnecessary

touchpoints.

›Make it easier/faster.

› Increase pleasure.


“The pace of change is accelerating faster than anticipated a year ago.”

Blake Nordstrom,

President of Nordstrom

April 2014

forrester.com

Thank you

Tim Sheedy

+61.2.8249.8812

[email protected]

Twitter: @timbo2002

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