The Building Blocks of Customer-Driven Innovation
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1 EXPERIENCE 18 The Building Blocks of Customer-Driven Innovation Emma Sopadjieva, Head of Research Phil Davis, Managing Director Donna Polidoro, Sr. Director, Customer Success
2 CX Leaders Grow Revenue Faster Than Laggards Compound average revenue growth, 2010 to 2015 CX Leaders are 86% more likely to drive revenue growth than CX Laggards 5X 86% CX Leaders CX Laggards Source: Manning, Harley. Customer Experience Drives Revenue Growth, 2016, Forrester Research, Inc., June 21, Source: Breaking the Code: Customer-Driven Learning and Innovation, Accenture and Medallia, Inc.,
3 But How Do Companies Become CX Leaders?
4 Accenture & Medallia 2018 Global Study % Senior CX & Marketing executives Countries: US, Canada, Australia, UK & Germany Industries: Retail, Fin. Services, Products, Comms, Media & Tech Working at companies with over $5Bn in revenue 4
5 CX Leaders Share 3 Key Competencies Listening posts that capture sentiment across all channels Customer-centric alignment that capture sentiment across all channels Learning systems that use digital intelligence to spark and enable human ingenuity 5
6 Listening Posts
7 Customers Companies that collect +15%pts Social media and online reviews are +15 pp more likely to improve CX +10%pts Structured surveys are +10 pp more likely to improve CX +9%pts Customer behavior data captured via digital interactions are +9 pp more likely to improve CX Listening Posts Capture customer & employee sentiment Employees Companies that collect +7%pts Employee suggestions & ideas of how to improve CX are +7 pp more likely to improve CX +8%pts Observations from customer interactions and close loop follow-ups are +8 pp more likely to improve CX 7
8 Companies that more likely to combine robust 60% improve CX than customer and employee companies without listening posts are robust listening posts 8
9 Learning Systems
10 Learning Systems Turn human intelligence into action Organizations that have a system in place to: +20%pts +13%pts +21%pts Empower the frontline to solve customer problems are +19 percentage points more likely to improve CX and +20 percentage points more likely to innovate successfully Engage multiple functions with customer feedback are +13 percentage points more likely to improve CX and +13 percentage points more likely to innovate successfully Designate accountability for resolving systemic issues are +24 percentage points more likely to improve CX and +21 percentage points more likely to innovate successfully 10
11 Learning Systems Leverage technology Organizations that have a system in place to: +22%pts +19%pts +24%pts Gather feedback from a broad sample of customers are +11 percentage points more likely to improve CX and +22 percentage points more likely to innovate successfully Extract insights from customer feedback are +11 percentage points more likely to improve CX and +19 percentage points more likely to innovate successfully Test the impact of changes made based on customer feedback are +22 percentage points more likely to improve CX and +24 percentage points more likely to innovate successfully 11
12 Fueling Innovation With customer-centric alignment
13 Customer-Centric Alignment How to fuel your innovation +22%pts +13%pts 2X Use CX as the Lens for Prioritization & Innovation Companies with effective prioritization systems are 22 percentage points more likely to innovate successfully Wire Feedback Into Core Business Processes Companies that identify integrating feedback into operating systems and processes as the top way of sustaining commitment to CX are 13 percentage points more likely to innovate successfully Foster a Customer-Centric Culture Companies that identified a culture where customers are the #1 priority as the top enabler of cross-functional collaboration were 2X as likely to be in the top quartile of CX performance 13
14 25%pts Combining these 3 competencies, companies are 25 percentage points more likely to innovate successfully 14
15 CA Technologies The Road to CX Transformation and Innovation
16
17 Our CX Transformation We launched CX 2020 to map the future state customer journey and set a vision for what we want CX at CA to look like in the year
18 Loyalty Management System Listening Posts CX Operating Council Company-wide Huddles Annual Relationship Survey Product & Partner Surveys Transactional Surveys Services Support Onboarding Engaged global Sales & Product teams Closed loop feedback program Supplemental customer interviews Senior, cross-functional leaders Monthly sessions Ensure we are listening to customers and taking action Drive the right behaviors and change efforts across depts. Drive execution and support for CX initiatives An opportunity to share customer and employee feedback A platform to provide public recognition, team or individual A forum for team to exercise ownership over customer experience enhancements A team brainstorm that ends with a commitment to action 18
19 Learning Systems Developed a predictive health score for all products within all accounts The Customer Health Score is a unified metric that shows the health of the customer experience and helps identify the accounts and/or products at risk Health Score correlates with Realization Rate at Account-Product level It is calculated from 10 variables, on point scale, each weighted based on analytic models The Score is aligned to three distinct Health Categories: Poor Health score = <50 Fair >=50 and <75 Excellent >=75 19
20 Customer-centric Alignment Global Customer Success Team The Guided Customer Journey Begins with customer onboarding, extends to adoption activities and include areas need to maintain, operate, and get the greatest value and ROI from software The Outcome Intervention System Continuous problem detection and response to return customer to guided journey and success By leveraging customer insights, we are able to build triggers and alerts that can be sent to our customer success teams to take fast action NPS Renewal X-sell/Up-sell Revenue
21 CA has improved customer sentiment and seen our revenue return to growth Revenue Growth Support transformation CX Exploration w/forrester Full NPS baseline Closed loop loyalty system for Platinum -4% PwC CX Strategy Mobilized CX program CX governance Deployed Medallia, Gainsight, Jive and ServiceCloud -3% Established corporate CX goal Customer Engagement Program CX Immersions Proactive support -1% CA Mission and DNA launch User Journey dashboard launched CX goals across CA teams +1% Target CX 2020 Net Promoter Score FY14 FY15 FY16 FY17 FY18 FY19 FY20 21
22 Thank You! #EXP18Medallia 22
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