digital customer experience in overdrive

5/24/2018 Digital Customer Experience in Overdrive

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FAST AND

FURIOUS:DIGITAL CUSTOMEREXPERIENCE IN OVERDRIVE


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Breathtaking speed. Continuous, hard-to-predict evolutions in customer behavior. Customer crow

inserted into your innovation process. Customers ruling your brand reputation. Sky-high customer

expectations. Unfathomably large datasets capturing their every interaction. And did we mention

breathtaking speed?

Ive probably already fallen behind in the time weve taken

to have this conversation, says Lucille DeHart, CMO of

Maidenform Brands.1

Welcome to the brave new world of digital customer

experience. Senior marketers from around the globe are

acting fast in the face of digital transformations sweeping

through industry after industry transformations that hav

blown up the classic marketing funnel.

But wait. Hasnt the customer always been king or,

at least, right? In truth, customers voices have been

somewhat muffled in the past filtered through layers

of focus groups, departmental agendas, time and space

compared to whats possible today.

Four digital-era technologies have changed the customer

experience game: smart mobility, social networks, big dat

analytics and cloud computing:

Smart mobile devices empower customers with wherever instant information while also

making them always accessible to marketers.

Social networks empower customers to influence brand reputation, and provide marketers with

lightning-fast channel for message delivery.

Big data analytics offer the opportunity to make sense of (and act based on) all these digital

customer interactions.

And cloud services provide the agile IT infrastructure from corporate marketing and eCommer

website hosting to big data services that brands need to nimbly and confidently evolve at the

speed of customer behavior.

Fast and Furious:Digital Customer Experience in Overdrive

1 Lucille DeHart interview Courtesy of Argyle Journal, November 26, 2013. Click here for the complete interview.

Challenge:Build 100% digital first

marketing strategies.

At stake:Four digital technologies mobile,

social, big data and cloud are rapidly driving

change from make and sell business models

to new digital-era models in which companies

must sense and respond to changing

customer behavior.

Solution: Sense customer behavior changes

across all customer touch points, especially

mobile and social and turbo-charge

deployment and evolution of digital customer

experience technologies with the speed and

agility of cloud and managed services.
http://30a5776f533bba57cda3-9402c8d9a58c2c5cea67fb4e4c184c52.r2.cf1.rackcdn.com/lucille_dehart,_maidenform_-_argyle_conversation.pdfhttp://30a5776f533bba57cda3-9402c8d9a58c2c5cea67fb4e4c184c52.r2.cf1.rackcdn.com/lucille_dehart,_maidenform_-_argyle_conversation.pdf


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FAST AND FURIOUS:DIGITAL CUSTOMEREXPERIENCE IN OVERDRIVE

The big winners in the digital customer experience era will be those companies that can tap into a

four of these technologies to help them sense and respond to rapidly changing customer behavi

But moving from traditional make and sell models to an approach that requires instantaneous

measurement of, and reaction to, multiple customer touch points is no mean feat. Companies ne

to develop the skill sets and processes to integrate customers into their innovation. They must

gather, analyze and apply customer insights across all customer touch points (i.e., omni-channel)

with unprecedented speed and intelligence, in order to rapidly innovate on a continuous flow of

new customer insights.

100 Percent Digital First

Marketers at brands that are leading digital customer experience transformations say they ha

already re-engineered their marketing plans and budgets to be 100 percent digital firs

We have put a digital shift first and foremost on all of our

marketing efforts...Lucille DeHart | CMO | Maidenform Brands

We have put a digital shift first and foremost on all of our marketing efforts, rather than takin

an in-store or print-first approach, says Maidenforms DeHart. The digital content and the

digital feed become much more of an omni-channel fuel point that will eventually work acros

all of our retail partner wholesale sites, as well as on third-party digital platforms, on our soc

media platforms, on our own eCommerce site, and in some of the interactive efforts were

putting forth on our collateral, tags and outlet stores, she explains.

At Marriott, The marketing spend is pretty much 100 percent digital, notes Wendy HoekwatVice President, Marketing and eCommerce.2A digital transformation is occurring within the

pre-stay, stay, and post-stay experience. We want to be able to track room rates and revenu

and apply attribution models to understand what is the true incremental value of our efforts,

says Hoekwater.

2 Wendy Hoekwater interview Courtesy of Argyle Journal, February 11, 2014. Click here for the complete interview.
http://30a5776f533bba57cda3-9402c8d9a58c2c5cea67fb4e4c184c52.r2.cf1.rackcdn.com/wendy_hoekwater,_marriott.pdfhttp://30a5776f533bba57cda3-9402c8d9a58c2c5cea67fb4e4c184c52.r2.cf1.rackcdn.com/wendy_hoekwater,_marriott.pdf


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For some, digital first actually means mobile first; for others, it means social first.

But Andrew Markowitz, Director, Global Digital Strategy for General Electric, has a mantra

that sums it up: We here at GE say all marketing is mobile; all marketing is social,

says Markowitz.

Importantly, Markowitz also notes that digital marketing needs to be omni-channel, in order t

intersect with different customers wherever they are with the information they need, in the

moment. Digital has blown up how we think about the marketing funnel, because everyone

evolving their own personal funnel, notes Markowitz. With all of the places you can go to

information, online and offline, its rapidly evolving that no two people will have the same funnel.

Digital has blown up how we think about the marketing funnel,

because With all of the places you can go to get information,

online and offline, its rapidly evolving that no two people will

have the same funnel.Andrew Markowitz | Director, Global Digital Strategy | General Electric

Mobile Means Always-On, Always-Connected, Always-Relevant

A smartphone in every pocket and ubiquitous wireless have combined to change the

way consumers do pretty much everything from researching to shopping to buying to

communicating about the entire experience in the moment, and over time.

According to an article in the McKinsey Quarterly, mobile devices add a wherever dimensio

to the digital environment that has empowered consumers. Executives encounter this

empowerment daily when, for example, cable customers push for video programming onany device at any time or travelers expect a few taps on a smartphone app to deliver a full

complement of airline services, say article authors Peter Dahlstrm and David Edelman.

Marketers, therefore, need to keep mobile top-of-mind when developing and evolving their

branding, engagement and promotional strategies. Brands are using mobile technologies to:

Enhance the shopping experience including in-store

Ease the buying experience

Communicate and engage with customers

http://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketinghttp://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketing


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The challenge is in developing engagement opportunities that make sense on the mobile

platform, and that can generate information optimized for refining both the customer

experience and companies offerings on an ongoing basis. Its a feat easier said than done.

Consumers expect the mobile experience to

be a little bit different, but theyre getting le

and less patient with those differences

especially when a smartphone or tablet is

likely the first device they will use to interac

with a companys website, notes Becky Ca

CMO at CenturyLink Technology Solutions,

global provider of managed services on virtu

dedicated and colocation platforms.

To combat the issue Carr raises, some

leading marketers pursue a mobile first

digital customer experience strategy. Says

Maidenforms DeHart: We make sure thatany of the microsites and content that we put out in the market are adaptable and optimized

for all [mobile] devices because, as Ive said, digital comes first. Were not creating a print

version and then figuring out how to convert it to fit within the ratio of the different formats

and screens. From the beginning, we develop it so that its nimble enough to work across

screens, and then we take it back to traditional media.

Companies recognize that they need a mobile solution, but that brings many more issues to

decide, notes Carr. Are we going to create a mobile version of our website using respons

design? Or will we develop a mobile app, to deliver a very different user experience? Howwill we incorporate the in-store experience? What about integration with location services to

increase relevance of messages?

Not only must messages be relevant, they have to be concise to fit a small screen and

integrate well across channels.

DeHart describes a powerful example of mobile-led, omni-channel integration. The company

knows that products in its Shapewear category tend to be particularly confusing due to the


The challenge is in developing engagement

opportunities that make sense on the

mobile platform, and that can generate

information optimized for refining both

the customer experience and companies

offerings on an ongoing basis.


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large variety of options for women of different sizes and shapes. As a customer, youre not

really sure what youre looking for or what the proper fit is for your body type, says DeHart

To resolve that, weve developed a navigational system that exists on our physical tags with

a subtle color code. More importantly, we know that upwards of 60 percent of consumers,

particularly in our department and chain stores, are shopping with a smartphone, so weve

created a microsite where customers can scan and interface for product information. The

microsite shows all of the different types of silhouettes and control levels; it functions almos

like a shopping escort to help customers navigate our assortment of options, DeHart explai

In addition to providing customers with the information they need, when and where they ne

it, mobile is making companies more responsive. GE, for example, has deployed quotation

tools on smartphones and tablets to hand customers immediate quotes. In the past, it took

30 to 45 days to develop and generate a quote. But now a quote can be done, and handed to

the customer, right at the point of interest. So mobile apps and access to data on a mobile

device has allowed us to be much more responsive to our customers, says Markowitz.

Social: Listen to the Customer and Respond in Real-Time

If mobile is the technology at the heart of the digital customer experience, social is the bullh

through which the customers voice is heard. Brands are using social technologies to:

Invite customers into their innovation processes

Engage customers

Spread influence

Manage reputation

Improve customer service

With a proliferation of social technologies, people are

increasingly providing inputs into the innovation process

in a more spontaneous, real-time, and participatory way.Hatkesh Nagar| Capgemini

With a proliferation of social technologies, people are increasingly providing inputs into the

innovation process in a more spontaneous, real-time, and participatory way, Hatkesh Nagar



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Capgemini analyst, notes in this post. Successful innovative companies are actively involvin

their customers to facilitate the ideas and embrace them in implementing open innovation

strategies, according to Nagar.

Nagar notes the example of Ford, whose FordSocial Your Ideas websiteinvites people to

submit ideas on how to make Ford and its vehicles better. Others can then vote on the

ideas. GE provides another example: Markowitz notes the companys ongoing Ecomaginatio

Challenge, in which anyone can propose energy and environmental ideas, with GE providing

seed funding for the best ideas.

At Marriott, customer engagement strategy has evolved to be social first. When you thin

about travelers and how theyre influenced in terms of considering where to stay, whether

its for leisure or business, its through social media sites like TripAdvisor, Hotels.com, and

Expedia.com. Those are the top three sources that influence travelers decisions on where t

stay from a leisure perspective, says Hoekwater. Note that Hoekwater didnt call those trav

sites the top three online sources; they are the topmost influencers, period.

Further, Marriott also monitors and manages customers perception of its brand via social.

Weve developed a social media platform that provides listening tools for every single oneof our hotels. My team listens to each one of those hotels to learn what is happening from a

customer perspective that could influence our reputation, Hoekwater explains.

Weve developed a social media platform that provides listenin

tools for every single one of our hotels. My team listens to each

one of those hotels to learn what is happening from a customer

perspective that could influence our reputation.Wendy Hoekwater | Vice President, Marketing and eCommerce | Marriott

At Maidenform, DeHart is thinking about how to merge social sites, eCommerce and

digital marketing.

We need to be at the forefront of identifying how to merge those platforms. Our IT and

marketing teams have to respond quickly both internally and externally to what consumers a

http://www.capgemini.com/blog/capping-it-off/2012/02/social-media-a-new-must-have-in-a-product-marketers-toolkit#about-the-author-anchorhttp://social.ford.com/your-ideas/http://www.innocentive.com/blog/2013/10/03/ge-ecomagination-challenge-more-than-just-challenge-driven-innovation-in-action/http://www.innocentive.com/blog/2013/10/03/ge-ecomagination-challenge-more-than-just-challenge-driven-innovation-in-action/http://www.innocentive.com/blog/2013/10/03/ge-ecomagination-challenge-more-than-just-challenge-driven-innovation-in-action/http://www.innocentive.com/blog/2013/10/03/ge-ecomagination-challenge-more-than-just-challenge-driven-innovation-in-action/http://social.ford.com/your-ideas/http://www.capgemini.com/blog/capping-it-off/2012/02/social-media-a-new-must-have-in-a-product-marketers-toolkit#about-the-author-anchor


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telling us. Even though were already embracing technology, we need to embrace it in a way

that makes us smarter, faster, and better across traditional platforms, she says.

Maidenforms social approach involves four phases developing relevant, sustainable

content; acquiring audience; integrating with partners and across platforms and networks;

and listening. That final phase is the most critical, DeHart says. Where social becomes

most important is monitoring and understanding customer feedback so that we can keep thi

cycle very organic and nimble. Customers are constantly going to change the demands of

what theyre looking for, and we have to stay current. So the path that we set out on is not

necessarily the path well maintain, but the process should stay the same, she says.

As in other aspects of digital customer experience, senior marketing executives agree speed

is of the essence in social. Says DeHart: The biggest success is how quickly you respond

because once that Facebook status feed moves down, youve lost the opportunity. People

dont often flip through their phone long enough to get to your comments if youre not acting

in real-time.

Big Data Brings Big Opportunities

Of all the technologies explored in this report, big data is the newest, the least understood

and may be the most important differentiator.

Big data can come from anywhere: a CRM system, chatter on social networks, the location

of a mobile user when she buys a product, or the temperature fluctuations on a thermostat.

It combines structured and unstructured data, and therefore requires fairly sophisticated and

robust data processing and storage systems not to mention data scientists to effective

make use of it. It also requires a data-driven company culture (See our related report, Big Da

Culture Clash: Unlock The Promise of Data Before Its Too Late!)

Big data, properly mined, can provide huge competitive advantage. Having the best data tha

we can and optimizing it in a precise and targeted way is key, says Marriotts Hoekwater.

Weve developed a consumer insight department within Marriott, at the head of which is

analytics. That department is focused on how we can best allocate our marketing dollars so

that they are reaching the consumer at the right time at the right place with the right messag

We are at the forefront of that, and its exciting to be able to have predictive analytics that w

help us change our media planning and digital strategy to accommodate what we need to do

reach customers.

http://go.centurylinktechnology.com/BigDataDataCulturesWPDownloadhttp://go.centurylinktechnology.com/BigDataDataCulturesWPDownloadhttp://go.centurylinktechnology.com/BigDataDataCulturesWPDownloadhttp://go.centurylinktechnology.com/BigDataDataCulturesWPDownload


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Companies see that big data has big potential, but to get to the point that Marriott is at with

the technology takes time, know-how and significant resources.

Companies are also challenged by the fact that they have a lot o

disparate systems gathering data that arent integrated together

they need to figure out a way to correlate all of that data. Its a

massive consolidation effort, and its not just a matter of bringin

in data but bringing in the right, most relevant data.Kevin Conway | Global Director of eCommerce and Content Management Solutions | CenturyLink Technology Solutions

Companies are challenged by the fact that they have a lot of disparate systems gathering

data that arent integrated together, says Kevin Conway, Global Director of eCommerce an

Content Management Solutions at CenturyLink. Companies have 30 or 40 places that they

have data stored in today, and they need to figure out a way to correlate all of that data. Its

a massive consolidation effort, and its not just a matter of bringing in data but bringing in th

right, most relevant data.

Maidenform is starting to perform that kind of consolidation, with the goal of creating a

universal view across all of its sales channels. Our IT team is really focused on using a

combination of wholesale as well as retail data, which would give us a new, consolidated

view across those two different channels, says DeHart. That will be critical for brands,

particularly ones that sell across a variety of different retail partners.

Maidenforms ultimate goal is a 360-degree profile of customers. If you have the ability to

connect to someone through Facebook or partner with them somehow through content likeInstagram, and you know that theyre shopping your brand across various channels, then you

have that Holy Grail of a holistic view of the customer, DeHart says.

Cloud Computing: Digital Customer Experience Game-Changer

When it comes to digital customer experience, cloud computing can be a game-changer

literally, and metaphorically.



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The example for which cloud was a literal game-changer comes from the videogame industry

According to EYs Sustaining Digital Leadershipreport, Game developers are diminishing

reliance on shrink-wrapped products tied to specific consoles, or no longer sell them; instead

theyre using the cloud to provide anywhere/anytime access to users via smartphones and

tablets, along with PCs.

The same report quotes Michael Parlapiano, Thomson Reuters Global Head of Strategy & Busine

Development, Financial, saying, Our goal is to move as much as possible of our infrastructu

into our cloud, so that we can create a continuous experience across users devices.

A little less literal but no less impactful was the clouds role in turning around sagging

sales of physical movie discs. A cloud-based technology called UltraViolet, which enables

access to a digital version of a movie or other content, caused combined DVD and Blu-ray

sales to climb last yearfor the first time in years. UltraViolet changed the digital customer

experience of DVD and Blu-ray by letting consumers create movie and TV show libraries in

the cloud, including from previously purchased discs. UltraViolet also lets users view those

libraries on any device.

Brands are now reliant on information technology in a waythat they werent before. With that comes an expectation of

100 percent uptime of those systems, great performance of

those systems, and security of those systems.Becky Carr | CMO | CenturyLink Technology Solutions

Another significant cloud benefit is that as more and more customer interactions come to be

mediated by IT systems, cloud technology puts responsibility for uptime into the hands of

professionals who focus on nothing else. Whether its your website, a mobile shopping app

customer support or predictive analytics, brands are now reliant on information technology in

a way that they werent before, notes CenturyLinks Carr. With that comes an expectation

of 100 percent uptime of those systems, great performance of those systems, and security

those systems.

http://www.ey.com/Publication/vwLUAssets/EY-Sustaining-digital-leadership/$FILE/EY-Sustaining-digital-leadership.pdfhttp://articles.latimes.com/2013/aug/06/business/la-fi-ct-home-entertainment-20130806http://articles.latimes.com/2013/aug/06/business/la-fi-ct-home-entertainment-20130806http://articles.latimes.com/2013/aug/06/business/la-fi-ct-home-entertainment-20130806http://articles.latimes.com/2013/aug/06/business/la-fi-ct-home-entertainment-20130806http://www.ey.com/Publication/vwLUAssets/EY-Sustaining-digital-leadership/$FILE/EY-Sustaining-digital-leadership.pdf


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Whats Next: New Digital Experiences, Evolving Faster and Faster

When asked about whats next in digital customer experience, the senior marketers first

talk about how new-generation customers coming into their own, now, will cause their

organizations innovation engines to continually rev faster and faster. Then they dream big.

Not only the Gen Y but the Gen X traveler will drive about 76 percent of the business per

night in the next seven years, says Hoekwater. This generation is extremely tech-enabled

Ensuring that our hotels are delivering that experience and have the amenities theyre seekin

such as digital check-in and the ability to send alerts, is incredibly important. Adds DeHart:

Digital natives will take up close to 60 percent of our overall consumer base within the next

few years not only are they savvy with technology, but they move at a much quicker pace

and adapt to newness very quickly.

Digital natives will take up close to 60 percent of our overall

consumer base within the next few years not only are they

savvy with technology, but they move at a much quicker pace

and adapt to newness very quickly.Lucille DeHart | CMO | Maidenform Brands

Among the new digital customer experiences DeHart sees arising in the near future is an ide

she coins social direct response. Says DeHart: Over the course of the next two or three

years, between smart TVs and the consumption of content through mobile devices and othe

on-demand devices, well start to see the integration of entertainment, social technology and

platforms, and some type of recommendation platform for influencers to influence peers

and a broader base. Video is the new content; [its] the best way to demonstrate products an

sell services. Layer on the impact of recommendations and reviews, put two and two togeth

and you get social direct response.

In addition, DeHart says, Well start to see this engagement between virtual reality and

physical reality, mostly through the mobile device. Its not too far into the future that there w

be holograms and projected imagery and content with geo-targeted triggers based on where

you are and company direction.



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Eventually, when you walk into a store, a digital salesperson will pop up in front of our

Maidenform fixture. It will be able to talk to you as if its introducing you to the product, and

these digital projections will go in your fitting room to help you find the right fit. They can

follow up with you by asking, Did you like your experience? That data will be transported

into monitoring services. So its my vision that marketing execution will become much more

holistic in an almost science fiction way, concludes DeHart.

Technology is evolving rapidly toward these visions. For example, Microsoft has patented

a system capable of transforming a room into a Star Trek-style holodeck, and released

a related promotional video. Google Glass and Oculus Rift (whose maker, Oculus VR, was

acquired by Facebookin March 2014 for $2 billion in cash and stock) are currently available

eyewear that offer augmented reality and immersive

virtual reality experiences, respectively.

Conclusion: Even Faster

and More Furious

Marketers are accelerating their pivot toward digital

customer experience, as digital transformation continu

to sweep away old customer interaction paradigms in aindustries. As that happens, brands are becoming more

reliant on IT systems as, more and more, those system

become the mediators of all customer interaction.

Consequently, marketers and their IT partners are striv

to master the four key digital experience technologies:

mobile, social, big data and cloud.

Of the four, one stands out. Cloud and related managed

services have the potential to turbo-charge the speed anagility with which an organization can deploy and evol

the other three technologies thus turbo-charging

digital customer experience itself. Managed services,

in particular, do this not only by enabling greater IT

agility for such things as quick spin-up of websites

and eCommerce sites, but also by freeing IT talent to

partner with marketing on more strategic, higher-level capabilities which continue advanc

at breakneck speed. Finally, managed service providers offer specialized expertise to suppor

digital marketing initiatives that companies may lack in house.


FOUR KEY DIGITAL CUSTOMER

EXPERIENCE TECHNOLOGY USE CASES:

Use mobile:to enhance online and

in-store shopping experiences, and

deliver engaging content.

Use social: to engage and influence

customers, manage brand reputation,

improve customer service, and crowd-

source innovation.

Use big data:to build 360-degree customer

profiles to propel insights that drive continuous

digital customer experience innovation.

Use cloud:to turbo-charge the ITinfrastructure agility you need to drive

continuous evolution of the digital

customer experience.
http://www.dailymail.co.uk/sciencetech/article-2262706/Microsoft-shows-new-holodeck-turn-ENTIRE-living-room-screen.htmlhttps://www.facebook.com/zuck/posts/10101319050523971https://www.facebook.com/zuck/posts/10101319050523971http://www.dailymail.co.uk/sciencetech/article-2262706/Microsoft-shows-new-holodeck-turn-ENTIRE-living-room-screen.html


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DIGITALCUSTOMEREXPERIENCE:

KEY ISSUES &ACTIONS

Mobile, social, big data and cloud technologies areigniting digital transformations across all industries.

To succeed, companies must embrace sense andrespond business models, eschewing the old makeand sell paradigm.

That means drawing customers into company innovaprocesses and developing new marketing and IT ssets and processes to do so.

Success demands a 100 percent digital first customengagement strategy.


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2014 CenturyLink. All Rights Reserved. The CenturyLink mark, pathways logo and certain

CenturyLink product names are the property of CenturyLink. All other marks are the property

of their respective owners. 72041714

About Digital Customer Experience Solutions from

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About CenturyLink Technology Solutions

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