YOUR CUSTOMER IS CHANGING

Transcription

1 YOUR CUSTOMER IS CHANGING HOW DO YOU MEASURE A CUSTOMER S EXPERIENCE? Brad Rucker SVP, Application & Information Management Practices Co-CTO, NTT Data Americas

2 Nothing worth knowing can be expressed in a oneline quote. Including the aforementioned fact. It s ALWAYS about the context. George L. Amethyst 2

3 Index / Agenda Brand and Customer Experience Intro to Customer Friction Customer Friction Factor SM Presence / Proximity and Personas Scoring Examples and Process 3

4 55% of US online adults are likely to abandon their transaction if they cannot find a quick answer to their question or problem. - Forrester Research 4

5 Forrester Customer Experience Index 2015 Industry Highest-scoring brand(s) Lowest-scoring brand(s) Airlines Auto/Home Insurance Provider Auto Manufacturers Banks Credit Card Providers Digital-only retailers Health insurance providers 5

6 Hotels Forrester Customer Experience Index 2015 (cont d) Industry Highest-scoring brand(s) Lowest-scoring brand(s) Internet Service Providers Investment Firms Mobile Device Manufacturers Parcel Shipping/Delivery Providers PC Manufacturers Rental Car Providers 6

7 Forrester Customer Experience Index 2015 (cont d) Industry Highest-scoring brand(s) Lowest-scoring brand(s) Traditional Retailers (stores, digital) TV Service Providers US Federal Government Wireless Service Providers Base: US online adult customers (ages 18+) of these brands who interacted with them within the past 12 months (bases vary by brand) Source: Forrester s Customer Experience Index Online Survey, US Consumers Q

8 Customer Friction Customer Friction: Any aspect of customer interaction that has a negative impact on the customer s experience. The less friction a customer encounters, the more likely they are to be satisfied with a product or service and continue to do business with that company. Friction Categories: Characteristics of customer engagement which increase Customer Friction occur within: Engagement Process Technology Ecosystem Knowledge 8

9 Traditional measures of customer friction are flawed Customer Surveys - Reactive Customer Friction Factor SM Net Promoter Score - Limited Scope Sentiment Analysis - Sampling Bias HOW not WHY Misses Non-responses (C!) Customer Friction Factor SM NTT DATA s quantitative method for evaluating friction within a customer experience and driving transformation. Understand Friction Customer Goals Causes of Customer Friction Proactive Evaluation Gain Insights 360 Customer Journey Improvement Opportunities Benchmarking Improve the Experience Surpass Customer Expectations Contain Internal Costs Deliver Pain-Free Service 9

10 Proximity / Presence In Person On the Phone Online 0 to n 0 to n 0 to n Function CFF can score across all these Proximity / Presence possibilities 10

11 Customer Friction Factor SM : Points of Valid Comparison Retail Manufacturing Insurance Banking HCLS (Payer as example) Public Sector Layaway Purchase Return Review Credit App Merchandise Pickup Clientelling Delivery Credit Payment Gift Registry Loyalty Program Promotions Coupon Matching Personal Shopper Ordering Billing / Accounts Payable / Receivable Shipping / Tracking Campaign Management Product Feedback Reliability & Returns Customer Service Engineering Support Quotes Document Distribution & Binding Claims Processing Payment Processing Renewals Marketing / competitive quotes Claims Payment Adjustment View Transaction History Open Account Add Account Type Bill Pay Transfers Money Order Order Checks Direct Deposit Cash Withdrawal Stop Payment Extract Transactions for Spending Analysis Loan application Enrollment Claims Processing Claims Payment Premium Bills Claims & Capitation Payments Provider Network Contract Negotiation Constituent Service Correspondence: ID cards, Letters, Requests for info, Benefit Explanations, etc. Permitting Enforcement / Fines Traffic & Civil Court Utility Connection & Billing Drivers License License Plate / Inspections Property Tax Alarm Registration & Permitting Communications and Media Industry + Transaction = Valid CFF SM Score Comparison 11

12 Customer Friction Factor SM User Dimensions / Personas & Brand Interactions Customer B2C Greatest Generation (b to 1926) Silent Generation (b to 1945) Baby Boomer (b to 1964) Gen X (b to 1980) Millennial (Y) (b to 2000) Boomlets (Z) (b to present) B2E Employee B2B Partner 12

13 Three Different Types of Customers Transaction Results B2C (Consumer) Purchase Support Renewal Loss of Transaction Loss of Customer B2E (Employee) Enablement Benefits IT Reduced Performance Dissatisfaction Shadow IT B2B (Partner) Logistics Manufacturing Sales Reduced Performance Damaged Relationship Loss of Business 13

14 Generational Scoring Generation: Greatest Generation Silent Generation Baby Boomer Gen X Millennial Boomlets Preferred Channel Come See Me In Person CFF SM Scoring varies based on Generation. Channels need to vary based on Generation. Call Me Me I m Online Text Me I m Mobile Engagement Disliked Channel Don t make me go online Don t make me go online Don t make me come over there Don t make me come over there Don t call me. Ever. Don t call me. Ever. 14

15 Disengagement Spectrum CFF SM Score Friction does not win customers Multiple neutral experiences create loyalty Repeated high friction experiences drive disengagement, loss of transaction and loss of the customer Vengeful Angry Frustrated Annoyed Impatient Lose the Customer Lose multiple Sales Lose the Transaction Unimpressed Number of Engaged Customers Neutral Zone Customer Satisfaction / Loyalty Systemic neutral experiences lead to positive brand perception 15

16 From Friction to Disengagement Vengeful Angry Frustrated Annoyed Impatient Unimpressed Neutral Zone Negative story teller Social Media enemy Uses competitor regardless Social Media crusader Complains to any brand channel Complains to local peers Looking for alternatives Social Media reader Looking for flaws Social Media browser Looking for better Casually dissatisfied Quiet revenue stream Watchful & Alert Competitor cheerleader Negative Revenue influence Longs for an anti-brand moment Communicates only to the top of brand Wishes for better results, but doubts them Tries other brands regardless of time Will find another brand when time allows Heats up your help line Increased price pressure Short with your service people Notes obvious flaws Begins looking at price more seriously Brand story teller Social Media ally 16

17 NTT DATA US Retail Benchmark of January 2016

18 Customer Friction Factor SM : Assessment Online Retail NTT DATA measured customer friction across the top 25 online retailers by applying the Customer Friction Factor SM. Transactions were conducted as a new Millennial consumer making an online purchase. Top 25 Online Retailers (Revenue) Online Purchase Process 1. Walmart 2. Costco 3. The Home Depot 4. Walgreen 5. Target 6. CVS 7. Lowe's 8. Amazon 9. Best Buy 10. Apple 11. Newegg 12. Rite Aid 13. Sears 14. Kmart 15. Ann Taylor 16. TJ Maxx 17. Nordstrom 18. Old Navy 19. JC Penny 20. North Face 21. QVC 22. Foot Locker 23. Chico's 24. Coach 25. EBay Source: National Retail Federation (NRF) 18

19 Customer Friction Factor SM : Assessment Online Retail Leaders Friction Across Online Retail Friction Overview 101 Best Score Laggards 165 Average Score 252 Worst Score 19

20 CFF SM Online Retail Leaders and Laggards Total Engagement Process Technology Ecosystem Knowledge Total Avg: 165 Engagement Avg: 13.8 Process Avg: 41.5 Technical Avg: 80.3 Ecosystem Avg: 1.32 Knowledge Avg: 11.3 Score Score Score Score Score Score Leaders Laggards Best in Class Challenged 20 Legend: -50% -20% -1% Avg. 1% 10% 20% 30% 50%

21 CFF SM Scores vs. Three Year Annual CAGR Total Total Avg: 165 Score 3YR Annual CAGR Leaders % Laggards % Best in Class Challenged 21 Legend: -50% -20% -1% Avg. 1% 10% 20% 30% 50%

22 From Friction to Disengagement Vengeful Angry Lose the Customer CFF SM Score Frustrated Annoyed Impatient Lose multiple Sales Lose the Transaction Unimpressed Number of Engaged Customers Neutral Zone Customer Satisfaction / Loyalty Systemic neutral experiences lead to positive brand perception 22

23 NTT DATA Other Industries, Other Benchmarks

24 Path to Customer Centric Digital Transformation Understanding and quantifying customer friction, NTT DATA establishes a focused path for and requirements customercentric digital transformation Explore Experience Identify Transform Define Personas Establish Goals Identify Transactions and Processes Accomplish Goals CFF SM Score Transactions Identify Friction Points Understand Root Causes Define Recommendations Establish Roadmap Implement Solution Evaluate Customer Friction Repeat 24

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