how to create a great digital customer...
TRANSCRIPT
How To Create A Great Digital
Customer Experience
Tim Sheedy, Principal Analyst
November 2015
@timbo2002
© 2015 Forrester Research, Inc. Reproduction Prohibited 2
Age of manufacturing
Mass manufacturing
makes industrial
powerhouses
successful
• Ford
• Boeing
• GE
• RCA
Age of distribution
Global connections
and transportation
systems make
distribution key
• Wal-Mart
• Toyota
• P&G
• UPS
Age of information
Connected PCs and
supply chains mean
those that control
information flow
dominate
• Amazon
• Comcast
• Capital One
Age of the customer
Empowered buyers
demand a new level of
customer obsession
• Macy’s
• Salesforce.com
• USAA
• Amazon
Welcome to the age of the customer
© 2014 Forrester Research, Inc. Reproduction Prohibited 3
Four major initiatives to win, serve and retain customers
Consumers are fundamentally digital
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
of store sales are influenced online
52%
Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, media.pathfinder.gr/cman_img_f/9549445219531437587.jpg
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
of online sales now from mobile & tablet
28%
Source: The State of Retailing Online 2015. Base: 41 retailers.
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
Digital Business Is Different
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
Digital business is different
Bolt-on Digitally enhanced
products and services
Functional efficiency Cross-functional
agility
Safety and cost
reduction
Speed and
innovation
Digital
touchpoints
Operational
Excellence
Technology
attitude
Digital business Traditional business
Better products Enhance customer's
ecosystem of value Value proposition
9 © 2015 Forrester Research, Inc. Reproduction Prohibited
Inside-out
Cap
ab
ilit
ies
Processes
Technologies
Resources
Serv
ice
Replace your inside-out viewpoint . . .
Digital prey
10 © 2015 Forrester Research, Inc. Reproduction Prohibited
Inside-out Outside-in
Cap
ab
ilit
ies
Processes
Technologies
Resources
Journeys
Contexts
Touchpoints
Pers
on
as
Serv
ice
Cu
sto
mer
ob
jectives
. . . with an outside-in, customer value perspective
Digital prey Digital predator
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
Retail As A Case Study Of Digital
Transformation
Digital store initiatives will not succeed
unless retailers: 1. Align around digital transformation.
2. Create a friction-less customer life cycle.
3. Focus on associates, too.
4. Turn good quality data into good quality insights.
5. Have good technology integrations.
6. Address privacy concerns.
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
1. Align the organisation around digital transformation
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
› Reclaim product research in the
store.
› Increase consistency online,
offline, and via mobile.
› Personalise and enhance the
in-store experience.
› Simplify and expedite deal making
2. Focus on breaking down existing friction points in the customer life cycle
© 2014 Forrester Research, Inc. Reproduction Prohibited 15
› Associate engagement
touchpoints
3. Associate adoption is mission-critical
› Become obsessed with helping
associates accomplish their goals.
› Empower the associate with the
technology to be the conduit
between enterprise data and the
customer.
› Prepare associates to interact with
digitally empowered customers.
4. Good quality data is turned into good
quality insights.
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Example: Stitch Fix has mastered insights › Stitch Fix predicts what a customer
wants before she even orders it —
clothes you want show up at the door.
› The company is insights-driven where
predictive models learn from people,
and people learn from models.
› Stitch Fix has built digital insights and
learning into their business — a
constant state of controlled
experimentation.
› The result: a disruptive shift in business
models and fashion retail experiences
5. New
technologies
must work
well with
existing
enterprise
systems.
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
It’s time to build a digital experience platform
Extensions
+ Custom
code
Commerce Service
Customer data Content
Other
services
M a rk e t in g
A n a l y t i c s
+
I n s i g h t s
C on t e xt ual deli v e r y a t “ t he gla ss ”
T ou c h poin t s
6. Privacy concerns must be addressed.
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Create a compelling digital vision
Inspire employees to manifest your digital business
How will we
create value for our
customers?
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
Your digital vision must . . .
›Focus on the customer: How will we create value
for customers in the future?
› Inspire employees: How must our business
change?
›Paint a picture of future success: What will our
business look like in the future?
© 2015 Forrester Research, Inc. Reproduction Prohibited 24
Metrics of success
›Rate of new customer acquisition
›Average lifetime value of customers
›Customer attrition rate
›Customer experience index score
›Brand sentiment analysis/brand value
›Net change in sales (not just digital channels)
© 2015 Forrester Research, Inc. Reproduction Prohibited 25
Journey: Reduce time and remove pain ›Examine the journey.
›Analyse touchpoints.
›Eliminate
unnecessary
touchpoints.
›Make it easier/faster.
› Increase pleasure.
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
“The pace of change is accelerating faster than anticipated a year ago.”
Blake Nordstrom,
President of Nordstrom
April 2014