how to win in the digital business era with better cx

How to win in the digital business era with better CX

Nigel Fenwick Vice President, Principal Analyst CIOs, Forrester ResearchJames McCormick Principal Analyst, Customer Insights Professionals, Forrester Research

@NigelFenwick@JFMcCormick

Nigel Fenwick & James McCormick

How To Win In The Digital Business Era With Better CX


3© 2016 Forrester Research, Inc. Reproduction Prohibited

Source: Birds Wallpapers

Predator?

rkhlem

I added source of image onto slides 2-4...in the example ppt it doesn't put a source for these background images so I'm not sure if it's needed



Or Prey?

Source: Birds Wallpapers

© 2016 Forrester Research, Inc. Reproduction Prohibited



Sales not

influenced by

digital

Sales influence

d by digital

By 2020,47% of exec’s expect

digitalto influence

>50%of sales.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report


6© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: Forrester/Odgers Berndtson Q3 2015 Global Digital Business Online Survey

2014 2015 2016 2017 2018 2019 20200%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Predators

Transformers

Dinosaurs

Base: 435 respondents

% of business influenced by digital


© 2016 Forrester Research, Inc. Reproduction Prohibited 7

It’s time to rethink how your business will create value for your future customers

Old New

Digital prey Digital predator



The #1 success factors of predators

New sources of value Customer experiences

Cus

tom

erob

sess

ed



There are two sides to the CX story

New sources of

value

New expectations



“10 years ago inside GE, we would say software is just not our business.Now I think it's maybe one of the most important themes around the company… I'm now going back to school on software and analytics”- Jeffrey Immelt, CEO General Electric



Needs Desires



Experience Expectation Perceived Value



There is nothing more frightful than ignorance in action. – Goethe

Image source: https://en.wikipedia.org



Drive systems of engagement with system of insights



Digital intelligence evolution

Source: The “Optimize Customer Experiences With Digital Intelligence [61276]” Forrester report.

2000 to 2006 2011 to present1993 to 1999 2007 to 2010

Web server logs

Web analytics Digital analytics Digital intelligence

THE GOLDEN AGE OF WEB ENGAGEMENT



Experience Expectation Perceived Value

Voice-of customer metrics

Digital performance metrics Contextual metrics

Channel metrics

Life-cycle metrics

Conversion metrics

Social metrics

Attribution metrics

Competitive metrics

Optimization metrics

A complete set of metrics for understanding digital engagements




Digital performance metrics Contextual metrics

Channel metrics

Life-cycle metrics

Conversion metrics

Social metrics

Attribution metrics

Competitive metrics



18© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: The “Instrument Your Business With Digitally Intelligent Measurement [74122]” Forrester report.

Metrics for a holistic view of customer engagement


Digital performance metrics

Contextual metrics

Channel metrics

Life-cycle metrics

Conversion metrics

Social metrics

Attribution metrics

Competitive metrics


Customer experience measurement

Customer relationship measurement

Comparative insights measurement

Digital intelligence measurement



Traditional systems of insights haveengagement blind spots



DataTag

managementData

warehousing

OptimizationRecommendationsOnline

testingBehavioural

targeting

Analytics

Webanalytics

Voice ofthe customer

Spatial analytics

Socialanalytics

Predictive analytics

IoTanalytics

Interaction analytics

Cross-channel attribution

Application analytics

Digital touchpoints

Customer context and behavior

The complete digital intelligence architecture

Source: The “TechRadar™: Digital Intelligence, Q2 2016 [76021]” Forrester report.



Application performance management

DataTag

managementData

warehousing

OptimizationRecommendationsOnline

testingBehavioural

targeting

Analytics

Webanalytics

Voice ofthe customer

Spatial analytics

Socialanalytics

Predictive analytics

Digitalperformance management

IoTanalytics

Interaction analytics

Cross-channel attribution

Application analytics

Digital touchpoints

Customer context and behavior

Digital performance managementAPM FOR DIGITAL INTELLIGENCE

Source: The “TechRadar™: Digital Intelligence, Q2 2016 [76021]” Forrester report.


22© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: The “Brief: Take Application Performance To The Next Level With Digital Performance Management [128141]” Forrester report.

DPM optimizes performance actionsUnderstanding the different performance needs of diverse customers

Delivering the right performance to the right audiences

Opens up the possibility of performance driven optimization



Building your digital intelligence practice

Ownership Structure: Hire and organize analytics staff to support the digital business model across the enterprise

Technical Approach: Bring together multiple technical components for data management, analysis, and actionability

Metrics & KPIs: Collect a swath of measurements including those that help understand customers and gauge business success of touchpoints

Optimization:Apply a continuous optimization approach across the lifecycle that can scale using automation and advanced analytics

Strategic Approach: Align the digital

intelligence strategic

components to support customer

obsession

Source: The “Elevate Customer Obsession With A Digital Intelligence Strategic Plan [116872]” Forrester report.



Learn from each moment to evolve the next

Image Source: Flickr (www.flickr.com)



Evolves & optimizes engagement

Leverages every customer interaction

Evolves customer understanding

Evolves interaction treatment

Customer interaction

Customer understanding

Customer treatment

Intelligent and continuous optimization…

Source: The “Transform Customer Experience With Continuous Optimization [116870]” Forrester report.


26© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: Blog: http://apmblog.dynatrace.com/2015/12/14/only-4-days-to-premiere-of-star-wars-the-force-awakens-digital-performance-is-essential-for-related-sites/

APM is blind to CX impact

Content update may increase visitor appeal but…

…the site slowed down because the update increased the number of page objects


27© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: Dynatrace report: “Going beyond page load speed to optimize customer experience” http://www.dynatrace.com/content/dam/en/cs/t-mobile.pdf

Linking conversion and performance metrics focuses optimization effort

Costs reduced with online self-service useWith five poorly performing pages conversion rate drops and cost savings drop by over 50%When all pages are performing poorly the savings drops by over 80%


28© 2016 Forrester Research, Inc. Reproduction ProhibitedSource: http://www.soasta.com/wp-content/uploads/2015/08/Nordstrom_CS.pdf

Combine multiple types of insights to optimize CXRight before its anniversary sale saw declining customer satisfaction

Linked data from RUM system with server side data

Proactively tune performance front to back

Gained intelligence of how real user experiences impacted business

RUM

VoC

Infrastructuremetrics

Digital intelligence



Accelerate Your Adoption Of Digital Intelligence

Board level support

Partner support

Start small…

be agile & iterative


forrester.com

Thank youJames McCormickTwitter: @[email protected]

Nigel FenwickTwitter: @NigelFenwickhttp://bit.ly/nigelblog

The Digital PerformancePlatform

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