how customer experience drives digital transformation

DIGITAL TRANSFORMATION IN 2015 How Customer Experience Drives Digital Transformation

#PerficientDigital

facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient

2#PerficientDigital

Perficient is a leading information

technology consulting firm serving clients

throughout North America.

We help clients implement business-driven

technology solutions that integrate business

processes, improve worker productivity, increase

customer loyalty and create a more agile enterprise

to better respond to new business opportunities.

ABOUT PERFICIENT

#PerficientDigital 3

PERFICIENT PROFILEFounded in 1997

Public, NASDAQ: PRFT

2014 projected revenue ~$454 million

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto

Global delivery centers in China and India

>2,600 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

4#PerficientDigital

INDUSTRIES Healthcare

Financial Services

Life Sciences

Retail & Consumer Goods

Automotive & Transportation

High Tech

Telecom

Energy & Utilities

Manufacturing

Media & Entertainment

PORTALPortal Frameworks

SearchSecurityWeb AnalyticsWeb Content Management

Social & CollaborationMobilityExperience Design

INTEGRATIONIntegration Frameworks

Cloud ArchitectureReference Architecture

Application IntegrationEnterprise Application IntegrationService Oriented Architecture

Process & Content IntegrationBusiness Process ManagementComplex Event ProcessingRules Engines

DATA & CONTENTBusiness Analytics

Business IntelligencePredictive AnalyticsReporting

Structured Data ManagementData Integration, Quality & GovernanceEnterprise Data WarehouseMaster Data ManagementProduct & Information Management

Unstructured Data ManagementBig DataContent IntelligenceContent Management

Enterprise Search

CUSTOMER EXPERIENCECustomer 360

Multi Channel EnablementRelationship ManagementSocial Engagement

CommerceMarketing Strategy ImplementationOrder ManagementSupply Chain ManagementService & SupportManaged Hosting

Sales & Service SupportCustomer Service, Sales Force Automation

Experience DesignStrategic Roadmaps & Envision Workshops User Research & Metrics AnalysisCreative & Interaction DesignCustom & Responsive UI Development

Digital MarketingSearch Engine MarketingOnline AdvertisingContent StrategyConversion Optimization

Management Consulting

BUSINESS OPERATIONSCorporate Performance Management

Budgeting, Forecasting & PlanningBusiness Analysis & Predictive Analytics

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Management Consulting

OUR SOLUTIONS PORTFOLIO

5#PerficientDigital

Perficient XD is a digital agency within Perficient. We’re the CX and creative

engine that powers the IT consulting locomotive. We envision, design and

build intuitive customer experience solutions that are results-focused, digital

ready and grounded in social science insight.

6#PerficientDigital

PRESENTERS

Michael Porter, PerficientManaging Principal

Strategic Advisors Team

Twitter: @porteronportals

David Stallsmith, Perficient XD

Digital Strategy and Ideation

Practice Lead

[email protected]

7#PerficientDigital

How Customer Experience Drives

Digital Transformation• Customer Experience

Impact

• Role of Customer

Experience in Digital

Transformation

• Industry Examples

• 3 Starting Points for

Digital Transformation

8#PerficientDigital

1

CUSTOMER EXPERIENCE IMPACT

9#PerficientDigital

CUSTOMER EXPERIENCE (CX)

TRANSFORMATION

CX MATURITY

3 KEY CONCEPTS

10#PerficientDigital

CX = SUM OF ALL INTERACTIONS WITH A BRAND

PRODUCTS

BROADCAST

PUBLICATIONS SOCIAL

EVENTS

DIRECT MAIL

IN STORE

WEB

MOBILE

EMAIL

BRANCH

GAMING


More than any other factor, customer

experiences determine whether companies

thrive and profit, or struggle and fade.

— Josh Bernoff, Forrester Research

“”


Rising Customer

Expectations

Amazon, Zappos, Facebook,

Apple, et al are redefining

service, speed and ease-of-use

Continual

Connectedness

Adoption of digital channels is

driving demand for choice and

connectedness

Organizational

Velocity

Tech lowers barriers to entry

and increases speed; slow

response invites disruption

Abundance of Customer

Data

Requires competency in turning

complex data into business

insight

CX TRENDS ARE DRIVING MASSIVE CHANGE


Source: Temkin Group Insight Report, State of CX Management 2014

Only 10% of large companies

have achieved top levels of

customer experience maturity

...BUT MOST COMPANIES HAVE NOT ADAPTED

10LEVEL 5+

%

31LEVEL 1

%

13LEVEL 4

%

19LEVEL 3

%

27LEVEL 2

%


Only 10% of large companies

have achieved top levels of

customer experience maturity

...BUT MOST COMPANIES HAVE NOT ADAPTED

10LEVEL 5+

%

31LEVEL 1

%

13LEVEL 4

%

19LEVEL 3

%

27LEVEL 2

%


60Companies that prioritize

customer experience generate

60% higher profits than

competitors

CX ADAPTERS REAP BENEFITS

Source: Gartner Research, “Leading on the Edge of Chaos”, 2013, Emmet Murphy and Mark Murphy)



Increase in

Company

Value

= 30%Increase in

Customer

Retention

10%

Source: Bain & Company Study


Source: McKinsey & Co. studies, 2013 and 2015


multi-channel journey. occur during a multi-event,

of all customer interactions

Morethan 50%



multi-channel journey. occur during a multi-event,

of all customer interactions

Morethan 50%

And the number of digital touch points is

growing 20% annually...

Source: McKinsey & Co. studies, 2013 and 2015



65

Percent of consumers who get frustrated

when presented with an inconsistent

experience across channels.Source: Accenture Global Consumer Pulse, 2013


CX LEADERS OUTPERFORM THE MARKET

6-year stock performance of customer

experience leaders vs. S&P 500 vs. laggards


INDUSTRY TRANSFORMATION: INFLUENCE SHIFTS TO CUSTOMERS


The realignment of, or new investment in,

technology and business models to more

effectively engage digital customers at every

point in the customer experience lifecycle.

— Altimeter

“”

DIGITAL TRANSFORMATION


POLL #1 GOES HERE(NEED FOR DT AT YOUR COMPANY)


2

ROLE OF CX IN DIGITAL TRANSFORMATION


ENTERPRISE TRANSFORMATION

Insights

Experiences

Taking an “outside-in”

view of the organization

Encouraging customer

empathy among teams



TOUCH POINTS

JOURNEYS

BRAND PERCEPTIONS

TEAMS

PROCESSES

SYSTEMSInsights

Experiences



TOUCH POINTS

JOURNEYS

BRAND PERCEPTIONS

TEAMS

PROCESSES

SYSTEMS

Customer Experience Maturity:

How effective you are at using customer

insights to create, deliver and sustain

differentiating experiences

Insights

Experiences


HOW DO YOU GAUGE “TRANSFORMATION”


HOW DO YOU GAUGE “TRANSFORMATION”

Focus on Customer Experience Maturity


4 LEVELS OF CX MATURITY

Level 4: Differentiated

Level 3: Dynamic

Level 2: Engaged

Level 1: Uncommitted


FOCUS ON CUSTOMER EXPERIENCE MATURITY

Transformation is the result of advancing

to the next level of customer experience maturity.


CXIQ MATURITY MODEL


CXIQ MATURITY MODEL

1Customer

Insight

2Strategy

3Design

Processes CREATEcustomer experiences


CXIQ MATURITY MODEL

1Customer

Insight

2Strategy

3Design

Processes

6Operations

4Enabling

Technology5

Measurement

CREATE, DELIVERcustomer experiences


CXIQ MATURITY MODEL

1Customer

Insight

2Strategy

3Design

Processes

6Operations

4Enabling

Technology5

Measurement

CREATE, DELIVER & SUSTAINcustomer experiences

7Culture


CXIQ MATURITY MODEL

1Customer

Insight

2Strategy

3Design

Processes

6Operations

4Enabling

Technology5

Measurement

7Culture

Level 1: Uncommitted

Level 2: Engaged

Level 3: Dynamic

Level 4: Differentiated


CXIQ IN PRACTICE

1Customer

Insight

2Strategy

3Design

Processes

6Operations

4Enabling

Technology5

Measurement

7Culture

• Mid-sized manufacturer, founded 1970

• Goal: grow customer lifetime value

• Strong in strategy; gaps in customer insight, measurement and technology

• Recommendation:

– Create customer personas

– Plan process workflow improvements

– Evaluate customer management app solutions

Score: Level 3 / Dynamic


CUSTOMER EXPERIENCE TRANSFORMATION

The process of making systemic, lasting changes to a

business to improve its interactions with customers and to

better align those interactions with its brand.

1. Determine customer experience maturity

2. Address 7 dimensions of customer experience

3. Transform your business by reaching the next level of maturity


POLL #2 GOES HERE(HOW MATURE COMPARED TO

COMPETITORS)


3

CASE STUDY EXAMPLES


Leviev

Part of a competitive jewelry / boutique space

• Many competitors in both mid- and high-end

• Opened London store in 2006

Upscale customers demand a relationship

• Treat them like you know them

• Understand their history and their likes

• Have to compete against a variety of others who

already get this

External factors can influence sales

• Blood diamonds

• Environmental issues

• Reputation is king for gems and diamonds

SITUATION


Leviev

Solve reputation challenge

• Own the mines for their diamonds

• Become a large diamond manufacturer

• Gain exclusive access to key gemstones

Use technology to enhance the relationship

• Customer jewelry box to show details of all

previous sales and current pieces

• Shareable sketches between Leviev designers

and customers

• Track customer birthdays, anniversaries, travel

preferences, and jewelry preferences

• Show inventory of finished pieces or diamonds

– From any store

– Catalog available on tablet for sales associates in

any other location

The Premier Customer Experience

SOLUTIONS


Leviev IMPLICATIONS

Reputation

Impacts: • Solved the reputation problem first

• Created key industry relationships

Function: Know my customer

Impacts: • CRM to track preferences

• Integration to sales or billing system

• Social tool to share information real time

• CRM tool for proactive communication

Function: Jewelry Box and Shared Design

Impacts: • Tool to store high resolution photos

• Mobile and web interface for Leviev

• Client interface and access outside store

Function: Catalog

Impacts: • Mobile/web interface integration

to image repository

45

A Fashion Retailer

“Our web site is old. It’s disjointed.

We don’t track well across channels.”

• Let’s recreate their entire customer

experience

• Let’s create the same experience in

mobile and web

• We have to show the same experience

regardless of where they come from

• Let’s give them a personalized

experience

SITUATION

#PerficientDigital

46

A Fashion Retailer

#PerficientDigital

IMPLICATIONS

A Seamless Customer Experience

CX involves many moving parts

• Commerce tools

• Embedded commerce in personalized web content

• Integrated CRM for lead tracking and generation

• Marketing management tool to push messages and

track success

• Better analytics to understand failure and success

Cuts across different parts of the business

• Marketing

– Must manage the site everyday across multiple tools

– Involved in traffic across multiple brands

– Lead generation and lead tracking

• IT

– Smaller team but with a global footprint

– Brand consistency


4

GETTING STARTED


POLL #3 GOES HERE(BIGGEST BARRIER TO INITIATING A

TRANSFORMATION PROGRAM)


3 WAYS TO START

Conduct a customer experience maturity

assessment

Map one or two of your most important

customer journeys

Estimate potential impact on investments

and results

A CB


3 WAYS TO START

A CB


assessment


customer journeys


and results

A CBA


CXIQ MATURITY ASSESSMENT

1Customer

Insight

2Strategy

3Design

Processes

6Operations

4Enabling

Technology5

Measurement

7Culture

• Evaluation of strengths and gaps in

7 areas of CX capability

• Starting point for customer

experience transformation

A CBA


CXIQ ANSWERS 3 KEY QUESTIONS

1. How effective are experiences we offer customers?

2. How mature are the capabilities we use to deliver experiences?

3. How do experiences compare to those of our competitors?

A CBA


USE CXIQ TO PLAN AN APPROACH

1Strate

gy7

Operations

& Governance

4Enabli

ng Technologie

s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

nt

S

C

M

DP

ET

CI

O

Uncommitted / Level 1

Focus first on:

• Customer insight

• Experience strategy

• Goal-setting

A CBA


1Strate

gy7

Operations

& Governance

4Enabli

ng Technologie

s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

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S

C

M

DP

ET

CI

O


1Strate

gy7

Operations

& Governance

4Enabli

ng Technologie

s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

nt

S

C

M

DP

ET

CI

O


Focus first on:



• Goal-setting

A CBA

Engaged / Level 2

Focus first on:

• Design processes

• Technology

• Operations


1Strate

gy7

Operations

& Governance

4Enabli

ng Technologie

s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

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S

C

M

DP

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e5Measureme

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O


Focus first on:



• Goal-setting

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6Cultur

e5Measureme

nt

S

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M

DP

ET

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O

A CBA

Engaged / Level 2

Focus first on:


• Technology

• Operations

Dynamic / Level 3

Focus first on:

• Customer-centric culture

• Measurement / results


1Strate

gy7

Operations

& Governance

4Enabli

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s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

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S

C

M

DP

ET

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1Strate

gy7

Operations

& Governance

4Enabli

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s

2Customer

Insight

3Desig

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e5Measureme

nt

S

C

M

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ET

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O


Focus first on:



• Goal-setting

1Strate

gy7

Operations

& Governance

4Enabli

ng Technologie

s

2Customer

Insight

3Desig

n Proce

ss

6Cultur

e5Measureme

nt

S

C

M

DP

ET

CI

O

1Strate

gy7

Operations

& Governance

4Enabli

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s

2Customer

Insight

3Desig

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ss

6Cultur

e5Measureme

nt

S

C

M

DP

ET

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O

A CBA

Engaged / Level 2

Focus first on:


• Technology

• Operations

Dynamic / Level 3

Focus first on:

• Customer-centric culture

• Measurement / results

Differentiated / Level 4

Focus first on:

• Strategy & innovation


• Breakthrough technologies


4 TIPS FOR ASSESSING CX MATURITY

1. Ensure assessment team has access they need

2. Explore full context in which customer experiences exist

3. Benchmark against reality

4. Use CX maturity scores to evaluate and prioritize proposed initiatives

A CBA


3 WAYS TO START

A CB


assessment


customer journeys


and results

A CBA


MAP KEY CUSTOMER JOURNEYS

Journey Type Customer Objectives Company Objectives

Product Discovery • Explore features, benefits and pricing to

help me become informed and create a budget

• Drive awareness, consideration and engagement

A CBA


MAP KEY CUSTOMER JOURNEYS

Problem Resolution

Journey Type Customer Objectives Company Objectives

Product Discovery

Purchase

On-boarding

• Explore features, benefits and pricing to help me become informed and create a budget

• Drive awareness, consideration and engagement

• Transact effortlessly, confidently

• Develop and maintain trust• Collect payment accurately

• Drive revenue goals

• Take the first step, learning as I go at my own pace

• Acquire the right customer

• Engage them and expose them to product options

• Accomplish a task on my own

• Troubleshoot a problem and resolve it quickly and easily

• Reduce service costs

• Teach self-help over time

A CBA


ORG DESIGN ONCE FAVORED SILOS...

In-storeOnlineProduct SupportMarketing

Stand-alone touch points

offer efficiency at the

expense of customer

experience

A CBA


...BUT TODAY, SILOS INHIBIT JOURNEYS


Silos become barriers as

technology enables customer

transactions across the

enterprise

A CBA


JOURNEY MAPPING IMPROVES EXPERIENCES

On-boarding

Problem Resolution

Product Discovery

Purchase


ORGANIZATIONAL SILOS

TYPES OF JOURNEYS

A CBA


JOURNEY-LED TRANSFORMATIONS...

15

Improve Customer Satisfaction Fuel Revenue GrowthUpsell & acquisition

Lower Costs to Serve Engage Employees

to

%

UPUP

DOWN 20%

20%

20%

to30%

UP

Source: McKinsey & Co., 2014

A CBA

15 to

%

20%


5 TIPS FOR JOURNEY MAPPING

1. Start with your most important customers or those you can help the most

2. Be clear on objectives

3. Follow an ethnographic approach

4. Seek out customer-facing employees for their input

5. Visual mapping encourages sharing and communication

A CBA


3 WAYS TO STARTA CBA

A CB


assessment


customer journeys


and outcomes


ESTIMATE CX INVESTMENT & OUTCOMES

To drive these results... support these needs... and target these metrics.

Increased Revenue

• Simplified transactions and processes

• Personalized recommendations

• Device-optimized UI

• Transparent pricing

• Site visits

• Page views

• Number of leads

• Conversion rate

Reduced Support Costs

• Self-guided on boarding

• Robust self-service options

• Situation-optimized UI

• Transparent, easy-to-understand policies

• Clear language and instructions

• Service calls

• Interactive chat resolution rate

• Number of contact center emails

• Online self-service resolution rate

• IVR self-service resolution rate

Increased Engagement

• Personalized content and features

• Social media integration

• Relevant and inviting content

• Device-optimized content

• Session length

• Frequency of visits

• Registration rate

• Click-through rate

Increased Satisfaction

• Exceed expectations

• Optimize for RTS (return on time spent)

• NPS, C-Sat scores

• Number of customer complaints

• Social listening measures

A CBA

Source: Forrester Research, 2014


ALIGN CORP STRATEGY WITH CX STRATEGY

Segmentation

Differentiation

Cost leadership

Company Strategy

A CBA



Segmentation

Differentiation

Cost leadership Low prices

Innovation

Fit

Company Strategy Brand Promise

A CBA



Segmentation

Differentiation

Cost leadership Low prices

Innovation

Fit

• Self-help optimization

• Ultra-simplification

• Crowd-powered

• Proactive guidance

• Data-amplified success

• Product as platform

• Tailored intimacy

• Micro-niche

• Mass customization

Company Strategy Brand Promise Customer Experience Strategy

A CBA

Source: Forrester Research, 2014


5 TIPS FOR ESTIMATING CX IMPACT

1. Assemble a multi-disciplinary team

2. Facilitate the discussions, drive to consensus

3. Distinguish one-time costs from recurring costs

4. Map business value to customer value

5. Look to your attribution programs for more proof

A CBA


RECAP: 3 WAYS TO START


assessment


customer journeys


and results

A CB


QUESTIONS?

Please submit your questions in

the chat box.


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Next up: Build a Mobile Foundation to Drive Digital Transformation InitiativesMarch 19 | 1:00 PM CTbit.ly/DTSeries3


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how customer experience drives digital transformation

Services

business processes

digital transformation

new business opportunities

digital agency

customer loyalty

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