SLUSH 2016 - Customer Experience Strategy keynote
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The document emphasizes the importance of customer experience (CX) strategies as a competitive differentiator, especially against the backdrop of increasing competition from startups. It highlights that successful CX can lead to significantly higher returns and customer loyalty, but notes that many companies are failing to meet rising consumer expectations. The author argues that a well-defined CX strategy must focus on understanding customer needs, creating value propositions, and optimizing the entire customer journey.
SLUSH 2016 - Customer Experience Strategy keynote
- 1. Customer Experience Strategy How to compete against all these startups? Eero Martela @eeromartela 30.11.2016 columbiaroad.com / @columbiaroadcom
- 2. ColumbiaRoad Digital Commerce Consulting Customer focus • CX Strategy and transformation • CX Vision and planning • Customer Journey Optimization • Customer insight Digital Sales • eCommerce strategy and design • Omni-channel strategy and design • Inbound • eCommerce data analytics Implementation with lean service creation • B2B Sales Channels • Continuous design & development • Enabling agile • Concept and UX design • Prototyping • eCommerce Shops
- 4. Managing Customer Experience MEASUREMENT CUSTOMER EXPERIENCE STRATEGY AND LEADERSHIP SHARED UNDERSTANDING BETWEEN SILOS EMPLOYEE MOTIVATION AND EMPOWERMENT CUSTOMER UNDERSTANDING
- 5. ColumbiaRoad 6 89% of companies compete mostly on customer experience 50% of consumer product investments will be on customer experience B2B buyers demand B2C type of customer experiences
- 6. ColumbiaRoad Good CX provides 35% higher returns. Customers with best past experiences spend 140% more.
- 7. ColumbiaRoad 75% of respondents find service to be critical… ...still, satisfaction levels are constantly decreasing.
- 8. An app is not enough! Marketing is not enough! A smile in customer service is not enough! CX IS HARD!
- 9. It is about… ...operations and processes ...numbers and culture ...passion and leadership CX IS HARD!
- 10. ColumbiaRoad Strategy is the number 1 key building block of brilliant customer experience
- 11. ColumbiaRoad
- 12. ColumbiaRoad CUSTOMER CX Strategy is not about having the word ‘customer’ in each of your charts and diagrams
- 13. ColumbiaRoad MEASUREMENT CUSTOMER EXPERIENCE STRATEGY AND LEADERSHIP SHARED UNDERSTANDING BETWEEN SILOS EMPLOYEE MOTIVATION AND EMPOWERMENT CUSTOMER UNDERSTANDING
- 14. 5 Elements of CX Strategy
- 15. Critical success factors in veterinarian business?
- 16. How do you solve customers’ aspirations and meet their expectations at every single touchpoint? CUSTOMER JOURNEY VALUE PROPOSITION CUSTOMER JOB TO BE DONE
- 17. ColumbiaRoad Job to be done?
- 18. ColumbiaRoad CUSTOMER JOB TO BE DONE What customer actually needs What customer wants What customer expects What customer feels It’s not about function, it’s about experiences
- 19. ColumbiaRoad 20 Healthy food to your home/office door in 26 minutes.
- 20. ColumbiaRoad 21 LEVELS OF VALUE Functional Emotional Core life values Value proposition = Your particular way of helping customer reach their aspirations with your assets CUSTOMER EXPERIENCE VISION
- 21. ColumbiaRoad 22 Workplace lifecycle services - not just furniture
- 22. ColumbiaRoad 23 Customer’s aspirations have to be fulfilled throughout the whole journey from awareness through buying to termination CUSTOMER JOURNEY AW ARENESS GETTING FAM ILIAR CONSIDER PURCHASE USE SERVICE / PRODUCT ADVOCACY RETIRE
- 23. ColumbiaRoad 24 Our principal task is to ensure a smooth commerce and every-day life.
- 24. ColumbiaRoad 25 CUSTOMER JOURNEY PROCESS VALUE PROPOSITION CUSTOMER JOB TO BE DONE How can you help customers to reach their aspirations with the assets you have?
- 25. ColumbiaRoad 26 Now, who are you again competing against?
- 26. ColumbiaRoad 27 CUSTOMER JOURNEY PROCESSVALUE PROPOSITION CUSTOMER JOB TO BE DONE COMPETITORS Finally, which competitors are trying to solve the same job to be done as you - now and in future?
- 27. 5 Aspects for Applying CX Strategy
- 28. ColumbiaRoad Define where to focus your efforts - customer intimacy is not everyone’s game 29 VALUE PROPOSITION CUSTOMER JOURNEY PROCESS Operativeefficiency=price Productleadership Customer intimacy
- 29. ColumbiaRoad Key questions in defining your CX strategy 30 CUSTOMER JOURNEY PROCESSVALUE PROPOSITION CUSTOMER JOB TO BE DONE COMPETITORS How do new technologies and consumer habits affect the pattern? What is the business case? How to do money? Who is the customer? Is this in sync with job to be done? What are the critical points? Are the assets able to fulfill the expectations? Who are competing for the same job to be done?
- 30. ColumbiaRoad How does a change in one affect the whole? 31 CUSTOMER JOURNEY PROCESS CUSTOMER JOB TO BE DONE COMPETITORS VALUE PROPOSITION E.g. changing competition E.g. change in value prop.
- 31. ColumbiaRoad How to ensure you are focusing on both short-term and long-term efficiently with minimal risk? 32 Time Value 2 months - 1 year 1 year - 3 years 3 year - 6 years Incremental New Disruptive
- 32. ColumbiaRoad How to measure customer experiences? 33 CUSTOMER JOURNEY VALUE PROPOSITION CUSTOMER JOB TO BE DONE Does your customer perceive your value proposition as planned? What are the key points and bottlenecks in overall journey? How are customers moving between phases? How is each touchpoint performing? Is customer getting their job done?
- 34. ColumbiaRoad
- 35. Why Columbia Road? FOCUS: our focus is purely on creating & growing businesses with digital. Our mission is to challenge current Finnish digital channel approach which is either IT or marketing driven, not holistic. OUR TEAM: Includes strong B2C & B2B digital sales channel expertise. Strong experience from every aspect in relation to customer experience and digital sales. OUR SKILLS: End-to-end delivery capability from strategy to implementation. Sales strategy, customer journey mapping, concept design, agile development, data analysis & growth consulting. MOTIVATION: We are a young & dynamic growth company with hunger to make this a success story. RISKS MINIMIZED: We are backed up by Futurice’s 300+ digital experts. columbiaroad.com
- 36. ColumbiaRoad Digital Commerce Consulting Customer focus • CX Strategy and transformation • CX Vision and planning • Customer Journey Optimization • Customer insight Digital Sales • eCommerce strategy and design • Omni-channel strategy and design • Inbound • eCommerce data analytics Implementation with lean service creation • B2B Sales Channels • Continuous design & development • Enabling agile • Concept and UX design • Prototyping • eCommerce Shops
- 37. Sources 38
- 38. ColumbiaRoad 39 Of global digital companies 28% strongly agree and 50% companies agree that they try to differentiate through customer experience Source: eConsultancy 89% of companies expect to compete mostly on the basis of customer experience by 2016 50% of consumer product investments will be, by 2017, redirected to customer experience innovations Source: Gartner for Marketing Leaders Source: Gartner for Marketing Leaders Your competitors will try to win you through superior customer experience
- 39. ColumbiaRoad 40 Leaders in customer experience generated 35% higher returns than market average. Laggards posted 45% lower returns than market average. Source: Watermark Consult Customers who had the best past experiences spend 140% more compared to those who had the poorest past experience. Source: Harvard Business Review Customer experience has a critical impact on company profitability
- 40. ColumbiaRoad 41 75% of companies recognise service as competitive differentiator… ..still, customer satisfaction levels have decreased for 4th year in succession. Still, companies are failing to meet customer expectations Source: Dimension Data
- 41. ColumbiaRoad 42 Strategy is perceived to be the nr. 1 key building block of brilliant customer experience, according to respondents. Source: eConsultancy CX should be the heart of your strategy