Mind the Gap. How to create a more customer centric organisation using design. Markus Hohl, CEO London

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1 @warwickbschool Mind the Gap How to create a more customer centric organisation using design Markus Hohl, CEO London

2 @warwickbschool Service Design agency founded 2009, working with the likes of Bank of Ireland, Kone, Tesco, Telia Sonera, VW

4 Mind the Gap How to create a more customer centric organisation using design Why it s needed How to do it- 9 steps Case studies

5 Why do we need more customer centricity in organisations?

6 The service economy The service economy accounts for 72% of the UK s GDP 20 million people (2/3 of workforce) in the UK work in the service sector In this new economy, the added value created by services is greater than that of products Office for National Statistics, 2015

7 We are customer centric. 95 % Source: Bain & Company, 2005, Forrester 2014

8 We provide great customer experiences. 80 % Source: Bain & Company, 2005, Forrester 2014

9 I have experienced a great customer experience. 11 % Source: Bain & Company, 2005, Forrester 2014

11 It pays to invest in design, not a quick fix $45,00 $40,00 $35,00 $30,00 $25,00 $20,00 $15,000 $10,000 $5000 DMI Design-centric S&P index 228 Apple, Coca-Cola, Ford, Herman- Miller, IBM, Intuit, Newell- Rubbermaid, Procter & Gamble, Starbucks, Starwood, Steelcase, Target, Walt Disney, Whirlpool, Nike. June 2003 December 2013 Design driven companies outperformed the S&P 500 by 228% Copyright Hellon. All rights reserved.

12 By 2020, customer experience will overtake price and product as the key brand differentiator. Vision Critical, 2014, 7 habits of customer-obsessed companies

13 Creating a more Customer Centric Culture is key to compete! But how to you create one?

14 CUSTOMER EXPERIENCE (CX) CORPORATE EMPATHY CXD used strategically 3 culture 3 Customer understanding in company s DNA, CX design is part of company process 2 process 2 Broad CX awareness CX design bought externally 1 project 1 Fragmented awareness about CX No CX design 0 No qualitative customer understanding years copyright Hellon 2015; based on Danish Design Council ladder 2003

15 1. Project level - building empathy for the end user work face-to-face with the end customer 1 Project in native environment prototype & iterate 2 kill ideas that don t work 3

Case study Hesinki Airport Challenge: Create an excellent and

17 Working with over 900 customers, building 12 prototype services, testing & measuring live in the airport.

18 Prototyping different levels of customer experience: Services, events and activities offering memorable experiences. Uniqueness Services that make the life of a passenger easier Drivers and barriers The functions that make an airport an airport Core functions

19 Prototype funnel and ranking Ranking model for prototypes: Impact on customer experience Reliability Cost and ROI Alignment with strategy Sense of urgency Prototype A Prototype B

20 kill ideas that don t work

21 People don t say what they think, they don t think what they feel and they don t do what they say David Ogilvy, 1955

22 Transfer increase 12m /yr by 3%* cost saving opportunities 2015 Transformation through Prototyping 5m+ Tweets for YogaGate Global media coverage in 80+ English publications

23 We stopped assuming and started trying. As a result of Travellab, our courage to try things out and measure the customer experience were significantly improved. Ville Haapasaari, Senior Vice President Finavia

25 CUSTOMER EXPERIENCE CORPORATE EMPATHY 3 culture 2 process? Broad CX awareness, systematic internal PR and educational initiatives 1 project project user Some awareness about CX, fragmented parallel initiatives 0 copyright Hellon 2015 Copyright Hellon. All rights reserved.

26 2. Process level - systematic educations of internal teams 4 build a training structure Process 5 learning by doing create ownership and skills 6

27 Case study Experience design Programme Nordic bank Challenge: ignite change through building internal Experience Design capabilities

28 learning by doing > experiment, talk to customers create ownership and skills > customer insights, fast and iterative design methods

30 CUSTOMER CORPORATE EXPERIENCE EMPATHY 3 culture? Customer understanding and empathy in company s DNA, 2 process 2 Process Broad CX awareness, systematic internal PR and educational initiatives 1 project 0 copyright Hellon 2015 Copyright Hellon. All rights reserved.

31 75 % of organisational change projects fail due to lack of including the affected employees Kotter. Leading change: Why transformation efforts fail. Harvard Business Review

32 3. Culture level - culture needs to be lived 7 build a customer centric framework Culture 8 eat your own dog food 9 know each other, get out of your comfort zone!

35 Idea list requirements build from a traditional process. = s spent during development a Design process - start with the customer - Try stuff, make prototypes - Iterate= fail early -learn fast All rights reserved.

Outcomes for the Customer Centred Design (CCD) : Customer)Satisfaction0)Source:)Ofcom)2014,) 1. CCD deployed on a 100m+ annual investment 2. faster to market 3.

37 Outcomes for the Customer Centred Design (CCD) : Customer)Satisfaction0)Source:)Ofcom)2014,) 1. CCD deployed on a 100m+ annual investment 2. faster to market 3. higher customer satisfaction non-designers trained in design 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CCD has galvanised our organisation around the customer centric agenda Sally Cowdry, CMO

38 Build empathy by eating your own dog food

39 know each other, get out of your comfort zone

40 CUSTOMER EXPERIENCE CORPORATE EMPATHY 3 culture Culture Customer understanding and empathy into company s DNA, 2 process 1 project 0 copyright Hellon 2015

41 Corporate Empathy is a big asset for your organisation to unleash 9 STEPS CORPORATE Work face to face with the customer, in their native environment Prototype and iterate Kill ideas that don t work Culture EMPATHY Build a training structure Learn by doing Create ownership and skills project Process teams end Project user Build a customer centric framework Eat your own dog food' Know each other, get out of your comfort zone Copyright Hellon. All rights reserved.

42 Questions? Mind the Gap How to create a more customer centric organisation using design Why - Delusion gap, Service Economy, CX will be #1 differentiator How - Build up your corporate empathy in 9 steps Project Process Culture

43 Thank you! Markus Mariann Rudy