maximize how you individualize: because the journey and outcome matter

Use this title slide only with an image

Maximize How You Individualize Because the Journey and Outcome Matter

The CMO Council Roundtable India, 09-10 October 2014 Nicholas Kontopoulos Global Head of Strategic Marketing Programs, SAP Customer Engagement Solutions

2 ©  2014 SAP SE or an SAP affiliate company. All rights reserved.

Get in touch with me @nicholask71

©  2011 SAP AG. All rights reserved. 3 Public

OP + NT = EOP

The Good Old Days

Mobility Rich Content Social Always On

WE LIVE IN A WORLD OF DIGITAL IMMERSION

This is the dawn of Generation C. Where "C" represents a connected society based on interests and behavior. Gen C is not an age group -- ITS A WAY OF LIFE.

- Brian Solis, author and digital analyst

COMPANIES ARE STRUGGLING TO BREAKTHROUGH AND

ENGAGE THEIR CUSTOMERS

- Brian Solis, author and digital analyst

DIGITAL DARWINISM: When technology and society evolve faster than the ability for companies to adapt.

OP + NT = EOP

DUDE, IT’S NOT ALL ABOUT THE TECHNOLOGY…

THERE IS NO SINGLE SILVER BULLET SOLUTION

21ST CENTURY CUSTOMERS REQUIRE A 21st CENTURY MANAGEMENT RESPONSE

HISTORY LESSON ON MANAGEMENT 1.0

1890:

90% of the then developed world worked in agriculture & the average manufacturing firm employed 4 employees.

1915: Ford was making a ½ million cars and US Steel was the first company in history to urnover $1b a year.

1920: By this time most of the tools for modern management have been created:

Pay for Performance

Since then the way we manage has hardly changed.

Capital Budgeting

Task Design

Divisionalization Brand Management

HISTORY LESSON ON MANAGEMENT 1.0

19TH CENTURY ENGAGEMENT

Sales & Marketing Funnel

Awareness

Interest

Desire

Action

Created in 1898 by Elmo Lewis

Awareness

Interest

This is no longer our customer’s journey.

Desire

Action


REFER FRIENDS

POST REVIEW

JOIN GROUPS

TRACK ORDER

RECEIVE PACKAGE

MISSING ITEM

SETUP PHONE

BILLING ISSUE

MAKE PAYMENT

PHONE DAMAGE

TERMINATE SERVICE

NETWORK ISSUE

CHANGE ADDRESS

RECEIVE OFFER

DISCOVER NEED

RESEARCH

RECEIVE OFFER

TRACK ORDER

RESTART SERVICE

SHOP & BUY

SHOP & BUY

RECEIVE PACKAGE

MISSING ITEM

POST REVIEW

SETUP PHONE

BILLING ISSUE

MAKE PAYMENT

PHONE DAMAGE

TERMINATE SERVICE

JOIN GROUPS

NETWORK ISSUE

CHANGE ADDRESS

RESTART SERVICE

RECEIVE OFFER

REFER FRIENDS

WEB

PRINT

DIGITAL ADS

WORD OF MOUTH

SOCIAL

TV

RETAIL STORE

WEB SHOP

REVIEWS

SEARCH KW/ADS

CONTACT CENTER

WEB SHOP

EMAIL

SOCIAL

RETAIL STORE

WEB SHOP

CONTACT CENTER

CONTACT CENTER

RETAIL STORE

CONTACT CENTER

CONTACT CENTER SOCIAL

WORD OF MOUTH

SOCIAL

EMAIL

SUPPORT PORTAL

?

SUPPORT PORTAL

?

BRANDED COMMUNITY

?

AWARENESS

INTEREST

Desire

ACTION

USE

ACTION

ADVOCACY

ADVOCACY

Desire

USE

Each customer chooses their own adventure.


Every journey is unique. Every journey matters.

OP + NT = EOP


Why does it matter?

Customers are In Control The Rules are Changing The Customer Journey is Complex

©  2014 SAP SE or an SAP affiliate company. All rights reserved. 21 Confidential

Measurable Business Impact

Better Informed

59% of customers are willing to try a new brand to get better customer service.

Digitally Connected

79% of customers spend at least 50% of total shopping time researching products online.

Socially Networked

53% of customers abandoned an in-store purchase due to negative online sentiment.

Empowered Customers

They are individuals with specific needs.

2.4 BILLION brand-related conversions happen online every day. SOURCE – KELLER FAY GROUP

57% of the buying process is completed before a first interaction with sales. SOURCE – CUSTOMER EXECUTIVE BOARD

86% of customers are willing to pay more for a better customer experience SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER

The Rules are Changing


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- W L Bateman

If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got.

HOW DO YOU ENGAGE THE INDIVIDUAL?


WE NEED TO RETHINK OUR MARKETING & SALES STRATEGIES.

LET’S START WITH BINNING THE CONCEPT OF…

A GO-TO-CUSTOMER STRATEGY

a go-to-market strategy

and replace it with

It’s time to reimagine Customer Engagement

But what is Customer Engagement?

End-to-End Business Process Execution

Harmonized Digital and Physical Experiences

Growth in Profitable Customers

Real-time Customer Insight

OP + NT = EOP


An Indian CEM market maturity overview.

of tech. decesion markers in India cited addressing Customer Experience &

driving customer satisfaction as a top

business priority in 2014

of the organisations surveyed indicated that CX

is a strategic priority for 2014, with about ¾

claiming its their number 1 priority

CX is a top strategic priority in India

87% 93%

(Source: Forrester)

want to differntiate themselves from the

leadersin in their industry through CX

88%


An Indian CEM market maturity overview.

Of Indian enterprises claim to have a centralized CX

team in place.

Of these CX teams actually report to the CEO

But CX maturity scores low

71% 24%

(Source: Forrester)

With reporting into customer service

departments.

22%

Ambiguity in the reporting structure leads to a lack of business responsibility and ownership.

Use this title slide only with an image The measurement of the CX framework is fragmented

Of those surveyed regular compare metrics across the enterprise 46%

CX-related communications do not run deep.

Sharing inputs and maintaining regular communications with all entities in the eco-system is critical

Poor CX communication across the enterprise

(Source: Forrester)

WHERE DO YOU START?

YOU NEED A STRATEGY


Need to follow key CX best Practices

Gauge your CX maturity: need to first ascertain the current maturity level of their CX practice and identify areas for improvement

Define a CX strategy and focus on implementation: Companies must take another look at their activities and investments with the goal of enhancing the customer experience.

Evaluate the impact of CX initiatives on business goals: must systematically evaluate the influence of their CX efforts on driving desired business outcomes.

in a structured manner

(Source: Forrester)

SUCCESS FACTORS: STRATEGY, PROCESS, TECHNOLOGY, AND PEOPLE

Strategy Business goals and

objectives

People Organizational

structure, skills, and incentives

Process Procedures and business rules

Technology Apps and

infrastructure

Source: Forrester “Navigate the Future of CRM” (February 2012)

Develop process flows to achieve the selected strategy.

Condition the organization to adopt new processes.

Get target users to successfully utilize

the applications

Deploy new technology that supports required

process flows.

1st Generation

CUSTOMER RECORD

Departmental / Channel Silos

SERVICE

SALES

MARKETING

COMMERCE

2nd Generation

‘Multi’-channel CRM Suites

CU

STOM

ER R

ECO

RD

SALES & MARKETING

SERVICE

COMMERCE

3rd Generation

Omni-channel Engagement Platform

CONTEXTUAL MARKETING & SERVICE

SALES & COMMERCE

CUSTOMER INTELLIGENCE

PHYSICAL & DIGITAL EXPERIENCE

Evolution from CRM to Engagement

PROCESS & ORDER COORDINATION

INSIGHT CREATION EXPERIENCE MANAGEMENT

Engagement requires orchestration.

AVOID BECOMING ONE OF THESE STATISTICS BY RETHINKING YOUR CRM STRATEGY

25% of firms reported that poorly defined business requirements had a negative impact on projects.

48% surveyed admitted they suffered technical/integration difficulties.

31% of firms reported that poor business process design accounted for project failures.

21% of businesses stated the need to customize CRM.

Source: ComputerWeekly.com – Forrester; Rethink Your CRM Strategy


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Show me the Money

Show me the money!

CUSTOMER EXPERIENCE LEADERS OUT PERFORM THE LAGGARDS

Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance.

SOURCE: FORRESTER RESEARCH 2012

+22% - 46%

of marketers surveyed in APJ have calculated the

impact of Customer Expereicne on their

business

say their revenue has increaded based on

Customer Experience optimization.

of marketers reported that improvements in CX had

resulted in their enterprise increacing revenue between

5% and 10%

23% 42% 16%

(Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)

CUSTOMER EXPERIENCE MATTERS Because Revenue in on the line

CASE STUDY

AT&T AND T-MOBILE SLUG IT OUT OVER A CUSTOMER ON TWITTER

Krissy Espindola Director, Knowledge Management & Social Customer Support

Looking at our results with social engagement, the ROI is tremendous. We are getting a 94% resolution rate as compared to our usual 11-12%. We are seeing tremendous ROI servicing our customers on social using these tools.

“

”

Objective Take on larger rivals by providing a delightful social media experience

Solution SAP Cloud for Social Engagement

Benefits Meet increasing demand for social media interaction without scaling team. Reduced churn. More cost-effective customer acquisition with marketing messages based on social buzz.

AT A GLANCE


LISTEN SAP Social Media Analytics by NetBase

UNDERSTAND Fan Appz, an SAP Cloud Partner

ENGAGE SAP Cloud for Social Engagement

THE FULL SOCIAL WEB

PERSON TO PERSON

YOUR TARGET AUDIENCE

USING SOCIAL DATA TO LISTEN, UNDERSTAND, AND ENGAGE

OMNI CHANNEL BUILDING A CONNECTED ENGAGEMENT PLATFORM

YOUR CUSTOMERS DON’T CLOCK OFF AT 5PM

TODAY’S CUSTOMERS WANT INSTANT GRATIFICATION


KEY TAKEAWAYS

Engage at the point of awareness

Stop telling, start listening predict & influence behavior. Respond quickly.

Guide customers through their journey

Understand their needs & desires. Earn advisor status. Help them.

Guide customers through their journey

Understand their needs & desires. Earn advisor status. Help them.

Create loyal brand advocates

Make every conversation count. Create amazing experiences. Deliver relevant & timely offers.

Experience Management

Commerce Marketing Service Sales

MDM for Customer Engagement & Commerce (product, customer, order)

Infrastructure, Platform, Integration

WEB MOBILE IN STORE/ BRANCH

CONTACT CENTER

DIGITAL GOODS

MARKETPLACE INTERNET OF THINGS

SOCIAL SMS/ NOTIFICATNS

SEARCH KW/ADS

DIGITAL ADS EMAIL PRINT AGENT TOOLS

SAP Customer Engagement & Commerce

You’ve got to start with the CUSTOMER EXPERIENCE and work back toward the technology.

- Steve Jobs


Make it simple to engage customers like never before.

Customer Engagement Solutions for Marketing, Sales, Commerce, Service, and Social.


OP + NT = EOP


?

Old Process + New Technology =

Expensive Old Process

www.custedge.com

maximize how you individualize: because the journey and outcome matter

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