selling and engaging the digitally forward customer

© 2014 Pegasystems Inc. 2

Speakers

Don Peppers Founding Partner

Peppers & Rogers Group

Ed Burek Director, Product Marketing

Pegasystems Inc.

Ed Burek has Product Marketing responsibility for Pega's Next-Best-Action solution. He has supported clients in the adoption and optimization of marketing strategy and web 2.0 technologies while addressing the needs of analytics.

Recognized for more than 20 years as one of the world's leading authorities on customer-focused business strategies, Don Peppers is an acclaimed author and a founding partner of Peppers & Rogers Group, the world's premier customer-centric management consulting firm. The Times of London has listed Don among their "Top 50 Business Brains," Accenture has included him in its global list of the "Top 100 Business Intellectuals," and the U.K.'s Chartered Institute for Marketing put him on its list of the "50 most influential thinkers in marketing and business today. " In 2013, Don Peppers and Martha Rogers were inducted into the Direct Marketing Association Hall of Fame.


The Future of Customer Engagement CONVERSATION IS KEY


The Future of Customer Engagement CONVERSATION IS KEY

How do you accomplish this with customers so empowered?


Every 20 years, computers get a

thousand times faster and cheaper

Moore’s Law


Technology changes the dimension of competition

Product-Centric Competition

Share of

customer

Market share

Customer

Needs

Satisfied

Customers Reached

Relationships

are required

Cu

sto

mer-

Centr

ic C

om

petition


“With a single solution, we have lowered retention costs and

retained more customers, all while average call handling times

have held steady, even going down in some instances.”

Alex Ford

Customer Base Director

BUSINESS GOALS

REDUCED MONTHLY CHURN RATE TO

1.2% FROM OVER 2.0%

DECREASED SUBSCRIBER

RETENTION COST

Increase revenue per customer

Create a unique business case for every

retention interaction

Radically improve retention rate for high-

value customers

Provide a consistent experience across

all channels

RESULTS

4% ADDITIONAL RETENTION of their most valuable customers each month

INCREASED CONVERSION RATE of customers that accept retention offers

DRIVING AN INCREMENTAL £24 MILLION IN ANNUAL OPERATING MARGIN AT UK’S LARGEST TELCO

© 2014 Pegasystems Inc. 8 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group.

“ZMOT” – The Zero Moment of Truth

A customer Googles a product to compare

prices while standing in the store aisle

ZMOT

Source: Winning the Zero Moment of Truth – ZMOT (2011)

A customer scans reviews of a product while sitting in a car

in the store’s parking lot

ZMOT

A customer checks the opinions of social-network friends about a

store before choosing which one to visit

ZMOT


Getting an online referral from a friend

Becoming a friend or follower of a brand

Reading blogs where the product was discussed

Seeing the brand mentioned on a social networking site like Facebook

9

ZMOT

Online social activities tracked by

Google's research:

© 2014 Pegasystems Inc. 10 10

In 2010 the average shopper consulted

5 sources

But by 2011 they consulted 10!

ZMOT

© 2014 Pegasystems Inc. 11 11

In 2010 just 19% of shoppers checked

social sources

But by 2011 37% did!

ZMOT


Your customer wants to have a conversation

DO YOU?

How easy is it to find a phone number and actually make a voice

connection?

What % of voice contacts are preceded by unsuccessful online

inquiries or issues?

Does each interaction with a customer reflect what that customer has

already told you?


Competence

Customer trust has always been

important

Good Intentions


Customer trust has always been

important

Competence

Good Intentions

Doing things right

Doing the right thing


Zuckerberg’s Law

Every 20 years,

we interact a

thousand times

more

with others


And the more we interact, the more

trust we demand

We want our interactions to be more

efficient

Interactions generate transparency


“Digitally Forward” customers

have higher standards!

Proactive trustworthiness

It’s no longer enough simply to refrain from

cheating or deceiving customers

“Trustability”

Digitally forward customers demand:


means proactively protecting a customer’s interest even

when it costs money

Extreme Trust


Doing things right

Doing the right thing

Proactively

Trustability means:


Extreme Trust comes from empathy

“Treat the customer the way you

would want to be treated if you

were the customer.”

Applying the “Principle of Reciprocity”

…and for a company, empathy is the ultimate form

of customer insight

Empathy is a deeply human instinct…


Show empathy for others, and get more empathy in return

After the first Persian Gulf War (1991)…

USAA proactively sent out

refunds for time spent abroad

by customers


USAA proactively sent out

refunds for time spent abroad

by customers

>2500 customers

mailed their refunds

back!

After the first Persian Gulf War (1991)…

Show empathy for others, and get more empathy in return


Optimize Marketing with

Next-Best-Action

Strategies

Start Small and Prove it!

Personalize in Real-

Time, Across

Channels

Continuously

Monitor, Control,

and Adapt

Measure

Learn

Simulate

Unparalleled Marketing Agility

Closed loop marketing that increases operational effectiveness, reduces time-to-value, and drives massive returns.


Manage marketing

effectiveness across all

channels, segments, and

products

Continuously Monitor, Control, and Adapt

Optimize strategies based

on detailed what-if

simulations

Adapt and learn from changing customer behavior

Next-Best-Action


x Profiting from a customer’s error

x Failing to notify

x Tricky pricing or renewal terms

Trustability Previously acceptable marketing practices

will soon become “untrustable”

Because of rising customer expectations

with respect to


2013 study of 58,000 consumers

Welcome to The Age of Transparency

70% of consumers trust the recommendations of their friends

~50% trust online recommendations from complete strangers

Just 10% of consumers trust advertising


“Once the trust goes out of a relationship, it’s

really no fun lying to them anymore.”


Transparency is like a disinfectant

for businesses and governments.

It will clean things up, but first it’s

going to sting like hell.


Linda Kaplan Thaler, CEO, Kaplan Thaler Group

Screw up today, and the “news”

will be permanent

can’t

un-Google

“You


Grant Robertson, blog post, May 1, 2007

“Dude, you can't take something bad off the Internet. That's

like trying to take pee out of a swimming pool.”


How does Big Data help with Digitally Forward Customer?

Marketing

CRM Cloud apps

SOCIAL

Sensors Mobile

Sales Customer Svc

Chat Ops Suppliers Customers

ERP


Customer

Desirable

Next-Best-Action makes the conversation trustworthy


Customer

Desirable

Economically

Viable

Brand

Identifiable

Operationally

Feasible Courtesy Karen Larrimer, CMO, PNC Bank

The sweet spot: Next

Best Action



Customer

Desirable

Economically

Viable

Brand

Identifiable

Operationally



Best Action


The best kind of customer

experience: Frictionless


Customer

Desirable

Economically

Viable

Brand

Identifiable

Operationally



Best Action

Valuable

Reliable

Relevant

Trustable


The best kind of customer

experience: Frictionless


Summary

Digitally Forward Customer is empowered and will

continue to gain more power

The Zero Moment of Truth can occur anyplace at

anytime

Empathy and “Trustability” are keys to conversing with

the customer

Next-Best-Action enables you to have a “Frictionless”

customer relationship


Thank you!

Don Peppers Founding Partner

Peppers & Rogers Group

Email: [email protected]

Twitter: @donpeppers

See all Don’s LinkedIn posts here:

bit.ly/donpeppers

Ed Burek

Director, Product Marketing

Pegasystems

Email: [email protected]

Twitter: @edburek

http://www.linkedin.com/in/edburek

mailto:[email protected]

mailto:[email protected]


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Questions

selling and engaging the digitally forward customer

Marketing

product marketing pegasystems

customer scans reviews

retention rate

speakers don peppers

retention interaction

valuable customers

satisfied customers

additional retention