emarketer webinar: customer experience strategy in an always-on world
TRANSCRIPT
© 2016 eMarketer Inc.
Made possible by
Customer Experience Strategy
in an Always-On World
Bryan Yeager
Senior Analyst
May 19, 2016
© 2016 eMarketer Inc.
Agenda
Changing Customer
Expectations
Customer Experience
Strategy
Image Credit: Evan Shuster + Garrett Knoll/Noun Project
© 2016 eMarketer Inc.
Customer Expectations Today:
Always On, Need It Now
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The number of potential customer channels and
touchpoints continues to grow
7+Number of service channels
used by more than one-third
of internet users worldwide
Source: Nice Systems/Boston Consulting Group, Aug. 2015Image Credit: Desbenoit/Noun Project
© 2016 eMarketer Inc.
Customers don’t view interactions the same way
that marketers do
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Consumers expect frictionless experiences
across devices
“Consumers expect first-contact resolution
for all our problems. You pick up your
device and you expect an issue to get
resolved right away. From an internal
perspective, customers expect
everything to work across all
devices, platforms and services.
For most brands, that’s not easy.”
—John Caruso, Partner and Creative Director,
MCD Partners
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Brands across
all industries
have plenty of
room for
improvement
when it comes
to eliciting
positive
emotions from
customers
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Brands taking a holistic view on customer
experience to meet or exceed expectations
“Customer experience is
everywhere we touch a
customer or they look for
us, being present and trying to
make the experience as
seamless, painless and effortless
as possible.”
—Bruce Millard, Assistant Vice
President, Digital and Customer
Experience, Safelite AutoGlass
Provides glass
installation services
6,500 retail locations
Distress purchase
requires convenient,
stress-free experience
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Companies that are raising the bar:
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Leading digital companies are raising customer
expectations across industries
“I don’t think anybody comes to
the TruStage website and says,
‘Jeez, this is a much better
website than the other insurance
company.’ What they’re saying is,
‘This is as good or not as
good as Amazon.com.’”
—Jesse Shultis, Vice President,
Customer Experience and Channels,
Cuna Mutual Group
Direct-to-consumer
insurance agency for
credit union members
Benchmarking the
customer experience
against leading digital
companies like Amazon
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Be careful about making too close a comparison
to digitally native companies
“One thing that you feel as a customer when you
deal with Airbnb or Uber is that you’re dealing with
one entity, whereas traditional brands tend to have
multiple facets that hit you and don’t talk to each
other. … These digital-only companies have it
much easier because their footprint is
narrow toward digital. They tightly control the
customer experience based on those channels.”
—Peter Kang, Executive Vice President, Creative, Rosetta
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Businesses need to adapt to changes in how and
where people spend their time with media
32.1%
2011
47.3%
2016
Source: eMarketer, Apr. 2016
25.6%
Nondigital
Digital
Mobile Nonvoice
Time Spent
with Media by
US Adults
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More mobile customers requires more mobile
experiences
“Not only has the number of visitors
that we get from mobile increased
dramatically year over year, so
have storage rentals driven by
mobile. … We see people
jump between devices, too—
from mobile to desktop to back to
mobile. Mobile is playing a bigger
part in the integrated experience.”
—Melissa Burdon, Director of Marketing
Optimization, Extra Space Storage
Self-storage rental
company with more
than 1,300 locations
Mobile plays growing
role when buyers have
intent to rent, including
in-store at point of sale
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Growing customer interactions via mobile makes
mobile a key touchpoint for Citi
“For Citi, the most important
channel is mobile. … From the
end of 2014 to the end of 2015, we
saw a 25.3% increase in the
number of global customers
interacting with us via mobile. This
shows a seismic shift in the way
customers do business with
companies.”
—Alice Milligan, Chief Customer and
Digital Experience Officer, Citi
Global financial firm
putting mobile at the
center of the experience
Has identified, analyzed
the six journeys that
represent the top 80% of
customer interactions
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Customers’
changing
behaviors and
heightened
expectations are
appearing on the
radar of senior
executives
worldwide
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Marketers also recognize that customer
priorities are shifting
22.7%20.7%
5.1%
29.0%27.0%
0.0%
Top Priority of Customers According to US Marketing Executives
Au
g. 2013
Feb
. 2016
Feb
. 2014
Au
g. 2014
Feb
. 2015
Au
g. 2015
Quality Service Brand
Source: Duke University’s Fuqua School of Business, Feb. 2016
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A Strategic Approach to
Customer Experience
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What’s the key to delivering great experiences
that reach or exceed customers’ expectations?
1. Strategy (47%)
2. Design (40%)
3. Culture (38%)
The cohesive plan, long-term view and executive
support for the future of our customer
Having well-designed user journeys that facilitate
clear communication and a seamless transaction
A cross-team approach with the customer at the
heart of all initiatives
Source: Econsultancy/Adobe, Dec. 2015
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Concept of customer experience is ambiguous,
requiring structure, planning and prioritization
“Customer experience has this broad,
big viewpoint, and I think that’s
actually one of the reasons why [those
of us in that area have] sometimes
struggled in organizations.”
—Frank Eliason, Head of US Digital and
Customer Experience, Zeno Group
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A multichannel or single view of the customer is
often the goal of customer experience efforts
“By the book, customer experience is the sum
of all customer interactions across all
touchpoints throughout the customer journey.
But on a more practical level, customer
experience is really a better lens through
which organizations are taking more
of a multichannel view of the
relationships they have with their customers.”
—John Caruso, Partner and Creative Director, MCD
Partners
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Progress is being
made with
customer-centric
strategies …
But plenty more
improvements
can be tackled
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Brands developing their customer experience
strategy should pursue low-hanging fruit
“Deal with your trust
issues first. Look at
how you fix things when
they go wrong. Look at
how you set and reset
expectations.”
—David Conway, Director,
KPMG Nunwood
“For a client who has a
loyalty or a CRM
program, the
low-hanging fruit is to
make that stuff work
really well.”
—Peter Kang, Head of
Creative, Rosetta
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Marketing’s Role in
Customer Experience Strategy
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Marketers taking on the mantle of defining,
delivering on their customer experience strategy
High levels of
customer
engagement
almost on equal
footing with
brand
awareness for
marketing
leader priorities
worldwide
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Wide range of marketers’ responsibilities related
to supporting customer experience functions
67%
72%
72%
73%
74%
76%
76%
77%
78%
83%
90%
Call center
Operational emails
In-store
Operational mobile messages
Customer service responses on social media
Promotional communication and messaging
Collecting reviews and customer feedback
Integrating the customer experience across channels
Loyalty program
Media advertising
Consistent brand messaging
Areas for which enterprise senior-level marketers worldwide are responsible
Source: Experian Marketing Services, Nov. 2015
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Just 3% of
marketing
executives in
North America
believed their
company was
realizing the
full revenue
potential of
customers
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But retaining
customers
and driving
loyalty
continue to
receive the
smallest
portion of
funding
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Attaining coveted single customer view remains
out of reach for client-side marketers worldwide
13% of client-side marketers worldwide
currently have a single customer view
implemented
15% have it as a budgeted priority
29% say it’s a priority but not budgeted
41% say it’s in discussion but not a
priority
Source: Econsultancy/Adobe, Nov. 2015
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The many
benefits of a
more unified
customer
view push
marketers to
continue their
pursuit
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Measurement is key to understanding whether or
not strategy is working
Another area with
room for
improvement
Only one in 10 US
marketers polled
could measure
customer
experience
extremely well
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One prohibitive factor for enterprise companies:
marketing team structure broken out by channel
Fully integrated
40%
Somewhat integrated
41%
Broken out by
channel19%
Small Business
Fully integrated
29%
Somewhat integrated
45%
Broken out by
channel26%
Midmarket
Fully integrated
15%
Somewhat integrated
27%
Broken out by
channel58%
Enterprise
Source: Experian Marketing Services, Nov. 2015
© 2016 eMarketer Inc.
Siloes and lack of coordination can derail
customer experience initiatives
“When [marketers] work in all of those siloes,
one thing they do in one of those siloes
actually has a dramatic effect in the other
areas of their business. They’re making
changes in an effort to fix the customer
experience and they might actually be
clobbering the other teams.”
—Susan Ganeshan, CMO, Clarabridge
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Marketers anticipate strategic changes by 2020
Currently By 2020
Source: Economist Intelligence Unit/Marketo, Feb. 2016
Focusing on customer loyalty and relationships
Focusing on customer acquisition
Pioneering new and emerging technologies to
engage our audience
Adopting a mobile- and social-first approach to
major marketing campaigns
Branding and customer experience
Becoming a data-driven marketing organization
Bringing new skill sets into the marketing
department (e.g., data scientists)
45% 39%
45% 39%
35% 37%
28% 30%
19% 19%
18% 20%
11% 15%
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Bringing Clarity to
Customer Experience Roles
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Brands define dedicated roles to focus on the
customer experience
56%US marketers whose company
currently has roles related to
customer experience
Source: Association of National Advertisers (ANA), Aug. 2015
Emerging customer experience
executive roles
Chief Experience Officer
Chief Customer Experience Officer
Chief Customer Officer
Head of Customer Experience
Vice President of Digital Experience
Director of Channels
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There is some skepticism about dedicated
customer experience roles within brands
“Frankly, I think that the
customer experience is
a distributed need. …
It’s an attribute that
everyone needs to be
thinking about.”
—Mohan Ramaswamy,
Strategy Partner, Work & Co
“I wonder whether or not
that’s more of a
reaction to an
organization that has
not been
customer-centric.”
—John Caruso, Partner and
Creative Director, MCD
Partners
© 2016 eMarketer Inc.
But with right structure and authority, it can help
a company ensure they focus on the customer
“When they can get
behind a chief customer
officer or a chief
experience officer as a
way to try to create a
more integrated
experience … that’s a
definite step forward.”
—David Worth, Head of
Strategy, Rosetta
“Putting the decision-
making authority in the
place where people can
make decisions that
improve the customer
experience [is
important].”
—Bruce Millard, Assistant
Vice President of Digital and
Customer Experience,
Safelite AutoGlass
© 2016 eMarketer Inc.
CEOs currently
set the digital
vision or
strategy, but
experience
decision-makers
want more
involvement
from IT and
marketing
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The rise of the Chief Data Officer as the overseer
of customer experience analytics?
“More and more we are seeing that there is
an emerging role: the CDO, or chief data
officer. The CDO is responsible for
ultimately analytics and the data strategy.
They should and will have prioritization
authority over system-level changes.”
—Tim Friebel, Product Marketing Officer, ClickFox
© 2016 eMarketer Inc.
Building a Customer-Obsessed
Culture
© 2016 eMarketer Inc.
A customer-obsessed culture is critical for
meeting and exceeding heightened expectations
“[Customer experience]
all starts with the way
we treat our people and
then the way we ask
them to treat our
customers.”
—Bruce Millard, Assistant
Vice President of Digital and
Customer Experience,
Safelite AutoGlass
“Culture is everything …
having a philosophy
around customer-
centricity, which is
something you really
can’t fake in an
organization.”
—John Caruso, Partner and
Creative Director, MCD
Partners
© 2016 eMarketer Inc.
Experience ingrained in the culture from the start
“On Fridays, we invite the rest of
the company to sit with us and
observe what the team is doing.
It’s a social atmosphere. There’s a
lot of back and forth, [and] it
certainly highlights what we’re
seeing to the rest of the company.
There’s more general
customer knowledge
passed around.”
—Andy Kazeniac, Director of Customer
Experience, Drizly
On-demand beer, wine
and liquor delivery
service launched in 2013
Started to carve out
customer experience
function from its start
Group works directly
with product team
© 2016 eMarketer Inc.
An amazing experience is a conduit for eliciting
the right set of emotions in customers
“These companies need to know who
they are. It’s not just about creating
this amazing experience. It’s about
knowing who your customer is and
how you make them feel.”
—Frank Eliason, Head of US Digital and
Customer Experience, Zeno Group
© 2016 eMarketer Inc.
Key Takeaways
Leading digital companies are raising the bar when it comes to
experience, with many brands following.
The concept of customer experience is broad, requiring brands
to develop a clear strategy involving measurement, analysis
and iteration.
Client-side marketers are increasingly driving customer
experience initiatives across an organization.
An array of roles specific to customer experience are being
carved out at brands large and small.
A culture of customer obsession is critical to helping
companies meet and exceed lofty expectations.
Marketo Overview
Renata Bell
Sr. Product Marketing Manager, Marketo
Page 46
Todays World
2900Marketing Messages Per Day
50We Recognize
4We Remember
Page 47
And Demand a Personalized Experience
87% of people demand a meaningful brand
experience (Edelman Consulting, 2014)
A Transformation in Customer Engagement
MassMarketing
Focus on themessage
TransactionalMarketing
Focus on the upfront
transactions
EngagementMarketing
Focus onlong-term
relationships
Marketo Company Overview
#1 independent marketing platform:
• Innovative digital marketing platform
• Fastest growing marketing technology company
• Customer system of record, 1B leads, 220B+ activities
Top rated by Analysts including Gartner,
SiriusDecisions and Forrester
Marketing First
• Helping marketers master the art and science of digital marketing
• Unparalleled expertise
4,300 customers across 25 industries in 46 countries
© 2016 eMarketer Inc.
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Bryan Yeager
Customer Experience Strategy
in an Always-On World
The Customer Experience Mandate: Brand Strategies to Meet
and Exceed Customers' Always-On Expectations
The Changing Path to Purchase: What It Means to Add Mobile
to the Mix
Marketing Technology: The Six Developments That Matter the
Most in 2016
Making Multichannel Marketing Work: Four Tactics Required
for Omnichannel Success (Publishing June 2016)