transform dmi 2014 launch event speaker presentations
DESCRIPTION
Five years on, it’s no surprise that the digital landscape has moved on significantly since we first published our Digital Maturity Index (DMI) back in 2010. We're delighted to be publishing this year's research findings in DMI 2014: The digital ecosystem of technology, channels, customers, strategy and culture and the insights in this year’s report show just how far organisations have come in the intervening years. Based on interviews with over 200 consumers and 150 business leaders from a range of industry sectors, this year’s report also includes opinion pieces from five digital thought leaders. Our MD, Emma Robertson, unveiled the report with clients at our annual launch event in London. She talked though some of the headline findings building on the principle that as digital becomes more integral to the underlying strategy, the component parts of digital maturity must be treated as an ecosystem, not a hierarchy. The focus this year is about smartly combining technology, channels, customers, strategy and culture for both customer and commercial benefit. Here are just a few of the headlines: Technology: In 2012, 87% of organisations had no formal processes for innovation. By 2014, 67% of organisations are using hackathons, labs or open APIs. Channels: The drive to establish a digital presence in every new channel that emerges is being replaced by more strategic behaviour with 66% focusing on consolidation of existing channels and only 34% looking to grow the number of channels on offer. Customer: 53% of respondents now measure customer happiness as a way of assessing how well digital channels are performing; 66% use a customer satisfaction index. Strategy: 65% of respondents reported that there is a digital vision and strategy within their organisation but just 6% stated that the strategy is very well known within their organisation. Culture: A factor in creating an environment for change and innovation is in an organisation’s tolerance for failure. Only 15% of organisations were recognised as having a ‘fail fast’ culture. We were also joined by three industry leading keynote speakers. Some of the key things we took away were: Easy is the new loyalty. Dr Nicola Millard, BT, talked us through the concept of 'net easy' and how omnichannel is the new normal. Start with the user. Kathy Settle, GDS, shared very candidly the work that has taken place during the past 2-3 years to transform government services. Be Human. Professor Moira Clark, Henley Business School, outlined the key factors required for customer service excellence. You can read the full report here (www.transformuk.com/dmi-2014-its-all-about-the-digital-ecosystem) or you can drop us an email if you’d like us to email you a copy ([email protected]). We'll be continuing the debate through our LinkedIn Group (Transform DMI 2014 and on Twitter (#DMI2014) and we hope you'll join us there.TRANSCRIPT
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Emma Robertson Transform
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About DMI 2014
• Independent research agency to collect the views of over 100 business leaders from across multiple sectors including retail, media, health, financial services, telecoms and public sector organisations
• Consumer opinion included to provide a contrast – online survey of over 200 consumers
• Transform conducted in-depth, face-to-face interviews with the digital leadership of 40 organisations
• Opinion pieces from five digital thought leaders
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DMI over the years
From the coming of age of multi-channel back in 2010, DMI through the years has evolved in line with the customer trajectory and their adoption of technology and channels.
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DMI 2014 Key findings
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We’re all customer-centred now
• Digital is at the heart of citizen and customer engagement
• Also a strategic focus for channel shift and commercial growth
• In DMI 2014 we’re seeing significant customer experience developments: – 50% of organisations reported using four or
more UX techniques
– 75% of organisations now have customer representation at board level
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Risk another silo
• It’s not embedded in the end-to-end experience or more importantly, the psyche of the project, programme or organisation
• Centres of excellence put customers on the critical path • BUT…
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DMI 2014 is about ecosystems
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The digital ecosystem
• As digital becomes more integral to the underlying strategy, the component parts of digital maturity must be treated as an ecosystem, not a hierarchy.
• Preventing outcomes such as:
– Projects failing because of a focus on technology and channel without understanding business and customer requirements fully
– Operationalised customer initiatives – communication of a digital initiative by laminated sheet as employees have to leave smartphones in lockers during working hours
• When ‘digital strategy’ simply becomes ‘strategy’ interdependencies will be critical
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Technology
Channels
Customers
Strategy
Culture
DMI 2014 – headline stats
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Technology
• We have seen a move towards agile delivery methodologies and open source development
• There is a practical and attitudinal shift supporting innovation techniques as well as the build itself
• In 2012, 87% of organisations had no formal process for innovation
• This year 67% are reporting that they use hackathons, innovation labs or open APIs to drive digital innovation
Which of these innovation tools are used in your organisation?
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Channels
• Omnichannel (multi-channel done properly) is ambitious
• Many organisations aren’t set up strategically, structurally or culturally to deliver it effectively
• Channel integration remains a priority: – 19% report full integration of channels
– 32% state they have front-end integration only
How effective are your channels in achieving the objectives you have for them?
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Channels What are the key gains of of a stronger ability to deliver transactions and services online? • We asked “What are the key gains of a stronger ability to
deliver transactions and services online?”
• 32% of organisations stated that they see digital transactions as a primary driver for cost savings
• 35% want digital services to drive an enhanced customer experience
• There continues to be a tension around objectives • Setting the correct KPIs and defining the role of individual
channels is critical to the success of digital
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Customer
Which tools and techniques do you regularly use to understand your customers? • A focus on the customer within digital and the
emergence of customer experience as a discipline is probably the most significant organisational shift since we began DMI
• In 2011, 59% of private and 80% of public sector organisations reported little or no understanding of the end-to-end customer experience
• In 2014, 66% report customer ownership at board level and there are a variety of tools and techniques being used regularly in organisations today
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Customer
Which metrics do you use to measure customer experience within your organisation?
• Another step change has been the move towards measuring more intangible benefits, alongside the commercial and transaction based KPIs that we know and love.
• 53% of respondents now measure customer happiness as a way of assessing how well digital channels are performing
• 66% use a customer satisfaction index • Organisations are recognising the importance of
customer experience and customer lifetime value, rather than relying solely on transactional reporting
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Strategy
Does your organisation have a digital vision and strategy?
How well is this shared and owned across your organisation?
The design and sharing of digital strategy… • 65% now have a digital strategy in place but with 35% responding either ‘no’ or ‘don’t know’ there are still a large number running from roadmaps rather than outcomes
• Also only 8% reported that the strategy is ‘very well’ known about across the organisation
• Digital must be under the umbrella of the wider organisation not stand alone
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Culture
• Culture is the glue that holds everything together but it’s often the hardest component to define
• DMI 2014 has captured a range of developments around digital culture including:
– Opening up code – Empowering front line staff to own and
manage customer resolutions • When it comes to decision making although 59%
of decisions are still set by senior management, when you back this up against 65% of organisations having a digital strategy, this seems less HiPPO in nature
• Also test and learn innovation is on the rise but the ‘fail fast’ culture is yet to be fully embraced
Which of these describes your organisation’s digital decision making?
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What does digitally mature look like?
• It’s an ecosystem rather than a hierarchy • All components are interdependent
• You can download the full report from our website: www.transformuk.com/dmi2014
• Share your views on twitter (#DMI2014) and on LinkedIn (DMI 2014 group)
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Thank you
Transform UK
60 Great Portland Street
London
W1W 7RT
Tel: 020 3128 8300
Email: [email protected]
www.TransformUK.com
@TransformUK
Transform DMI 2014
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Dr Nicola Millard BT
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BT Contact. Relationships that grow
The Autonomous Customer: 5 Trends for the Future.
Dr Nicola J. Millard Head of Customer Insight & Futures BT [email protected] @DocNicola
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BT Contact. Relationships that grow 22
Trend 1: Easy is the New Loyalty.
Copyright- BT Global Services, 2014
5% Felt they had got good value for money when they had a difficult experience
44% Say that loyalty to companies is a thing of the past (50% in the UK).
32% Of shoppers regard ‘easy’ as a top 5 factor when it comes to shopping.
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BT Contact. Relationships that grow 23
“Net Easy” Does It. Making it Easy is the missing link between operational quality and loyalty:
Operational performance
Customer experience
Advocacy
Incremental value Churn
reduction
NPS
Net Easy
OCR & RFT
Why measure Easy? ü True voice of the customer
ü Drives advocacy, VFM & loyalty ü Highly actionable feedback
ü Applicable in all channels ü Engages and resonates with staff ü Low effort also = lower cost
Customers finding it easy are 40% less likely to churn
Copyright- BT Global Services, 2014
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BT Contact. Relationships that grow 24
Trend 2: Omnichannel is the New Normal.
Copyright BT Global Services, 2014
say they constantly change the way they deal with organisations
say organisations make it easy to switch between different channels 1:2 17% only
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BT Contact. Relationships that grow 25
Trend 3: Webchat is growing faster than Social Media.
88% Of advisors rated Webchat as good or very good
26% Of customers use webchat as a preferred contact channel currently
82% Of customers rated Webchat as good or very good
15% Increase in productivity compared to phone
9 in 10 consumers want support while online
68% Would like to have webchat offered whilst online
89% Want my queries answered by a person whilst shopping online
Copyright BT Global Services, 2014
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BT Contact. Relationships that grow 26
Trend 4: Smartphones Fundamentally Change Behaviours
16-34 year olds driving smartphone commerce
Copyright BT Global Services, 2014
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BT Contact. Relationships that grow 27
Trend 5: The Contact Centre Model Will Change.
Employees need help to deal with today’s consumer
Copyright BT Global Services, 2014
Primary function 2020
Agent skills 2020
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BT Contact. Relationships that grow 28
Contact Centre or Relationship Hub?
Voice
Webchat
VoIP
SMS / MMS
‘Call me’
Video
Social Media
Home Workers
Branch Offices
Remote Workers
Mobile Workers
Contact Centres
HQ
Copyright BT Global Services, 2014
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BT Contact. Relationships that grow
Thank You! Dr Nicola J. Millard Head of Customer Insight & Futures BT [email protected] Twitter: @DocNicola BT Let’s Talk Blog: http://letstalk.globalservices.bt.com/en/ author/nicolamillard/
Copyright BT Global Services, 2014
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Kathy Settle Government Digital Service
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Kathy Settle Director, Digital Policy and Departmental EngagementGovernment Digital Service#
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GDS#Kathy Settle#
Digital by Default - 2 Years On What has the programme delivered to date?What have we learnt? What’s next?#
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GDS#Kathy Settle#
Transforming government services and information provision#
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GDS#Kathy Settle#
www.gov.uk#
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35 GDS#Kathy Settle#
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36 GDS#Kathy Settle#
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37 GDS#Kathy Settle#
https://www.gov.uk/performance/site-activity#
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GDS#Kathy Settle#
GOV.UK Transition##By December 2014, 312 sites will have moved to GOV.UK##1,829 sites closed in total#
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GDS#Kathy Settle#
Digital Transformation programme#
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GDS#Kathy Settle#
Create digital services that are so good that all those who can use them will choose to do so#
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GDS#Kathy Settle#
whilst those who can’t are not excluded#
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GDS#Kathy Settle#
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GDS#Kathy Settle#
Working with 8 departments – together they cover 95% of government transactions#
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GDS#Kathy Settle#
Building capability to sustain and grow ‘digital by default’ services#
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45 GDS#Kathy Settle#
www.gov.uk/lasting-power-of-attorney#
Transforming Services!!From this!
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46 GDS#Kathy Settle#
www.gov.uk/lasting-power-of-attorney#
To this!
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47 GDS#Kathy Settle#
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48 GDS#Kath Settle#
www.gov.uk/carers-allowance#
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49 GDS#Kathy Settle#
168 questions removed from the process (30% reduction)#
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50 GDS#Kathy Settle#
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GDS#Kathy Settle#
www.gov.uk/transformation#
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GDS#Kathy Settle#
Transforming government services and information provision#
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GDS#Kathy Settle#
Create digital services that are so good that all those who can use them will choose to do so#
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GDS#Kathy Settle#
whilst those who can’t are not excluded#
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GDS#Kathy Settle#
We want to ensure that take-up rates of government services reflects the number of adults who are online and able to use digital services….#
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GDS#Kathy Settle#
…but we also need to support those who can’t use government services independently#
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GDS#Kathy Settle#
Whether it’s over the phone…##
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GDS#Kathy Settle#
or face by face##
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GDS#Kathy Settle#
www.gov.uk/government/publications/government-approach-to-assisted-digital#
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GDS#Kathy Settle#
87% (44.6m) adults have access to the internet##76% (34m adults) use the internet every day##11m adults do not have basic digital skills#
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GDS#Kathy Settle#
We are collaborating with public, private and voluntary sector partners to help people and business go online#www.gov.uk/government/publications/government-digital-inclusion-strategy/uk-digital-inclusion-charter#
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GDS#Kathy Settle#
We want to reduce the number of people who are offline by 25% (2.7m people) by 2016#
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GDS#Kathy Settle#
And continue to do this every 2 years#
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GDS#Kathy Settle#
So that, by 2020, everyone who can be digitally capable will be#
www.gov.uk/government/publications/government-digital-inclusion-strategy/government-digital-inclusion-strategy#
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GDS#Kathy Settle#
What have we learnt?#
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GDS#Kathy Settle#
Transforming organisations is critical…#
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GDS#Kathy Settle#
Transforming organisations is critical…and difficult!#
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GDS#Kathy Settle#
Get senior leadership and (political) backing in place at the outset#
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GDS#Kathy Settle#
Ensure you have the right people with the right skills#
www.gov.uk/service-manual/the-team#
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GDS#Kathy Settle#
Multi-disciplinary teams!
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GDS#Kathy Settle#
Recruiting new people, retraining existing people#
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GDS#Kathy Settle#
Recruitment hub#
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GDS#Kathy Settle#
End to end transformation of government services#
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GDS#Kathy Settle#
Agile#
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GDS#Kathy Settle#
From an old way of doing things…#
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GDS#Kathy Settle#
…to a new one#
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GDS#Kathy Settle#
Help people do it right#
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GDS#
www.gov.uk/service-manual#
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GDS#Kathy Settle#
Check up front that people intend to do the right thing – spend controls#
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GDS#Kathy Settle#
www.gov.uk/government/publications/cabinet-office-controls/cabinet-office-controls-guidance-version-32#
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GDS#Kathy Settle#
And then check at regular intervals that they are still doing the right thing – service standard assessments#
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GDS#
www.gov.uk/service-manual/digital-by-default#
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GDS#Kathy Settle#
Look for opportunities to do things once….where it makes sense#
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GDS#Kathy Settle#
New platforms#
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GDS#Kathy Settle#
www.gov.uk#
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GDS#Kathy Settle#
Identity Assurance#
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GDS#Kathy Settle#
www.gov.uk/government/publications/introducing-govuk-verify#
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GDS#Kathy Settle#
Sort procurement and get access to the right suppliers#
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GDS#Kathy Settle#
New frameworks#
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GDS#Kathy Settle#
New frameworks#www.gov.uk/digital-marketplace#
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GDS#Kathy Settle#
Keep control of your data#
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GDS#Kathy Settle#
www.gov.uk/performance#
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GDS#Kathy Settle#
www.gov.uk/performance/renew-patent#
Renew a patent#
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GDS#Kathy Settle#
Governance#
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GDS#Kathy Settle#
Governance#
www.gov.uk/service-manual/governance/governance-principles#
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GDS#Kathy Settle#
Focused on user needs
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GDS#Kathy Settle#
User research lab!
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GDS#Kathy Settle#
For more information about what we’ve done:##www.gov.uk/government/collections/government-digital-strategy-reports-and-research##www.gds.blog.gov.uk#
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What’s next?#
GDS#Kathy Settle#
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Kathy Settle Director, Digital Policy and Departmental EngagementGovernment Digital Service [email protected]#
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Professor Moira Clark Henley Business School
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CX excellence: achieving and maintaining service excellence for
today’s consumers. Professor Moira Clark
www.hccmsite.co.uk Maximising Value through Rela:onships
CX excellence: achieving and maintaining service excellence for
today’s consumers. Professor Moira Clark
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103
What makes a ‘perfect’ customer experience?
• Experience orientated
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Memories are the currency of customer experience
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The Customer Experience Model
Emotional
Access
Application of Knowledge
Atmosphere
Caring – Attitude –
Caring – Procedures, Processes –
Communication
Sector Differences
Individual
Outcomes
Peer-to-Peer
Relationship
Reliability
Safety
Social Impact
Supplier Condition
Value for Money
Value for Time
Variety / Choice
Product Service Experience
*
* *
*
* Emphasis on attitude
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Knowledge – From Brain to Heart
Two types
Articulate knowledge We can write it down
• BA (hons), MBAs • Accountant, Engineer
The Brain • Physical need
• Practical • Comfort • Sensible
• Common Sense • Rational
Tacit knowledge • Silent
• Implicit • Can’t write it down
Heart • Experience • Emotions
• Esteem • Aesthetics
• Impulse
Tacit knowledge - the next generation of competitive advantage Professor Moira Clark
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Important CE Factors in B2B and B2C
1. Extent of Personal Contact 2. Flexibility 3. Implicit Understanding of Customer
Needs 4. Pro-activity in Eliciting Customer’s
Objectives 5. Pro-activity in Checking that Everything
is OK 6. Promise Fulfilment 7. Knowledge
1. Helpfulness 2. Value for Time 3. Customer Recognition 4. Promise Fulfilment 5. Problem Solving 6. Personalisation 7. Competence 8. Accessibility
B2B B2C
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Important CE Factors in B2B
1. Extent of Personal Contact The extent to which the company deals with the customer through personal contact methods
2. Flexibility How willing and able are the company to modify their offering in response to the customer’s specific needs or changing requirements?
3. Implicit Understanding of Customer Needs Does the company understand the context of the customer’s order? Do they use their prior knowledge of the customer and their business to serve them beJer?
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Important CE Factors in B2C
1. Helpfulness Are they really prepared to help me – where nothing is too much trouble for their staff?
2. Value for Time Do they respect and make efficient use of my time – by shortening queues and delivering what they provide efficiently?
3. Customer Recognition When I contact them do they recognise and acknowledge me as an individual?
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1. You need to develop good customer insight
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SemioCcs Ethnography
Customer insight Use the full toolbox…………
etc
• Get into the mind of the customer! • Make it easy to be a customer
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The Great Recession 2008-‐2009
2009: Hyundai Assurance: If you lose your job or income within a year of buying the car, you can return it with no penalty to your credit ra:ng. Industry sales declined 37% but Hyundai sales nearly doubled and sold more than Chrysler who had 4X more dealerships
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Customer insight
Use customer feedback from customers to improve the customer experience
• Surveys and monitoring online and offline behaviour
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Rant & Rave – Active - 66099
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Real-time customer feedback
Customers send text messages
about their experience.
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A picture paints a thousand words…
Customers may also choose to send you images that show you their experience.
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2. Put the user first! Design around the needs of the user and not the needs of the company Usability beats persuasion every :me We are differen:a:ng parity products STOP making parity products
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3. Keep it simples!
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Metro Bank Promise ü Surprise and delight every customer
ü Deliver unlimited coverage – online and 7 days a week
ü No stupid bank rules ü Sa:sfac:on guarantee
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Achieving customer centricity
4. No innova:on un:l everything works
Adding more bells and whistles doesn’t help!
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Achieving customer centricity 5. Customer centricity must be part of your company values
This makes a differen:ated customer experience!
John Lewis Principles
• The Partnership’s ul:mate purpose is the happiness of
all its members, through their worthwhile and sa:sfying employment in a successful business.
• The Partnership aims to deal honestly with its customers and secure their loyalty and trust by providing outstanding choice, value and service.
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123
Service culture for selling partners • Create an environment in which people can be themselves
• Making the day customer, not task, focused • Intui:on • Taking risks • Fun for customers AND Partners!
Variety is NOT the spice of life Consistency creates trust!
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Achieving customer centricity
6. Be Human – you don’t have to be perfect!
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Warmth and support
“Train people well enough so they can leave, Treat them well enough so they don’t want to”
Richard Branson
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For More Information
Professor Moira Clark Director of the Henley Centre for Customer Management Henley Business School [email protected] Work: 01491 571454
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Thank you