Customer Experience Transformation for Growth
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1 Customer Experience Transformation for Growth Bill Demakakos, Director Strategy, Customer & Operations 27 March 207
2 Context: We are in the age of the customer Age of manufacturing Mass manufacturing makes industrial powerhouses successful Ford Boeing GE RCA Age of distribution Global connections and transportation systems make distribution key Walmart Toyota P&G UPS Age of information Connected PCs and supply chains mean those that control information flow dominate Yahoo Google Comcast Capital One Age of the customer Empowered buyers demands new levels of engagement and personalisation Uber Airbnb Tesla Apple Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves Steve Jobs Co-Founder, Chairman, Apple Today s customers are better informed, better connected and more demanding than ever before. They can now compare, shop and share 24/7 and their expectations are reshaping every aspect of business. Source for timeline: Forrester Research 2
3 Context: A customer focus brings value across the enterprise Higher annual revenues Lower average cost to serve Better customer retention Greater customer lifetime value A 9.5% year-on-year sales increase, instead of the average of 3.4%. 7.5% year-on-year decrease compared to 0.2% for laggards. 2 89% of customers retained, compared to 33% for companies with weak Omni-channel strategies. Shoppers who buy both instore and online have a 30% higher lifetime value than those who use only one channel. 3 Sources: Aberdeen Group, 2 Aberdeen Group, 3 Google 3
4 Context: The operating environment has changed Customers expect more from businesses than ever before. They demand excellent experiences which involve minimal time and effort, always meet expectations, demonstrate integrity and authenticity, reach resolution, are empathetic and personalized. Democratization of communication Democratization of brand reputation by social networks Channel shift The shift to a mobile first and video first world Customer power Customers are firmly in charge creating buyer markets Accelerated innovation Empowered customers demand levels of new speed and innovation Renegotiation of trust Collapse in confidence in institutions and need for privacy Instant access Instant, global access to information and options Death of complexity Provide simplicity while delivering advanced products and services 4
5 Customer Experience (CX) What is it? Customer Experience (CX) is the sum of all experiences that a customer has with a retailer of goods and/or services, over the duration of their relationship with that retailer. This can include awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. Our Client Challenges To rapidly drive growth and create customer value To transform the customer experiences that add most value to the organization To make transformation and business decisions based on what customers value "Customer experience is the customer's end-to-end journey with you, not just the key touch points or critical moments when customers interact with your organization. Customer experience is the cumulative impact of multiple touch points over time, which result in a real relationship feeling, or lack of it. Harvard Business Review Due to the customers prioritizing different factors, they expect different, but good experiences from the same situation 5
6 Customer Experience Transformation for Growth - Approach Provision of insight into our customers experience, analyzing what they value, diagnosing problems and redesigning processes and interactions to deliver improved financial returns. By mapping customer journeys, researching customers and analyzing data, we help you to redesign your customer interactions, to delight customers and to increase growth. Focus on: Defining customer experience aspirations Targeting areas with maximum value Understanding what customers value the most Building solutions to maximize the customer experiences Continuing to improve the customer experience 6
7 Achieving tourism potentials by leveraging Digitalization Digitalization The foundation for capturing, integrating and continuously monitoring data from a variety of independent sources Hotel businesses Use of information processing and transactions in all stages of the value chain New business models for enhanced customer experience and increased revenues DATA ADVANCED ANALYTICS Countries Development of targeted socio-cultural sustainability and tourism incentives to enhance tourist satisfaction and loyalty Creation of data-driven culture in the tourism sector to foster transparency, statistics and efficient processes INSIGHTS Visitors Keeping up with the socio-demographic trend Exploiting attractive potentials from smart travel trends such as self-service mobility and bookings or interactive travel guides 7
8 The conventional tourist value chain needs to be refitted Multiple media breaks Obstruction of customer behavior analysis Visitors need to do exhausting research on several booking platforms Status Quo: Paper-based check-in at the airport Visitor uses online ED-Card or has to fill out embarkation form manually Book Book Check-In Not all visitors are eligible to use the egates system Check-In requires filling out forms, signing papers etc. Forms fill Immigrate Hotel Check-In Guest is presented with the consolidated bill, has to settle it manually instead of being billed automatically Too much manual effort Digital natives expect paperless processes If no online ED-Card is used, visitors have to fill out more paperwork and exit survey when leaving Everything the guest buys and consumes is written down on separate bills Consume and shop Hotel Check- Out Emmigrate & Exit Survey 8
9 Digitalization of the Customer Journey Disrupt the tourist value chain and enhance the customer experience Enhance customer experience Beacon-technology as the currency of digitalization Book Book Check-In Integrate multiple stages into one device and provide additional values FormsIndividual customer Impact Advanced analytics fill targetingimmigrate Hotel Check-In Efficiency and cost reduction Details Create personalized advertisements Target individual customers with programs and benefits tailored exactly for them Gain insights from real-time tourism data Create real-time statistics and forecasts using guest data Consume Hotel Check- Out Optimize processes Cut costs by adjusting processes to the amount of customer demand with predictive analytics Emmigrate & Exit Survey 9
10 Data generating value Development of Visitor Numbers with Forecast Filter by purpose, group size, intended length of stay, country of origin Includes a forecast and comparison to maximum capacity Explore age distribution of hotel guests to advise on development projects and targeted marketing campaigns Market share for top US cities Number of hotel guests out of all visitors to Curacao Find the regions where you have the strongest performance vs competitors Visitors by country of origin to characterize and help understand customer base 0
11 Data generating value Most important Groups Identify the most important groups in your customer base Trending Groups Identify groups that are growing fastest for responsive targeted marketing And on the bottom end identify the customer groups with the highest churn rates Assess marketing performance across countries by comparing acquisition costs and the increase in visitors
12 Data generating value Keep track of occupancy rates and forecast to drive marketing decisions and inform dynamic pricing 2
13 Key takeaway: my Cx Transformation for Growth approach needs to be revisited Provision of insight into our customers experience, analyzing what they value, diagnosing problems and redesigning processes and interactions to deliver improved financial returns. By mapping customer journeys, researching customers and analyzing data, we help you to redesign your customer interactions, to delight customers and to increase growth. Focus on: Defining customer experience aspirations Targeting areas with maximum value Understanding what customers value the most Building solutions to maximize the customer experiences Continuing to improve the customer experience 3
14 linkedin.com/company/kpmg-greece 207 KPMG Advisors AE, a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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