how to create a great digital customer...

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

• Google

• 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

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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.

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Digital Business Is Different

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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.

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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.

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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?

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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?

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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)

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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

forrester.com

Thank you

Tim Sheedy

+61.2.8249.8812

tsheedy@forrester.com

Twitter: @timbo2002