THE CUSTOMER GAP

VIDEO LINK: http://youtu.be/xSSDeesUUsU

WHAT IS THE CHANGE?QUESTION

QUESTION:

EVERYBODY IS TALKING ABOUT CHANGE, BUT WHAT IS CHANGING?

2min

THE CUSTOMER GAP

According to a recent global study of 1,500 CEOs conducted by IBM, the biggest challenge those CEOs face is the so called complexity gap. Eight out of 10 expect the business environment to grow in complexity, but fewer than half feel prepared for the change. The research also reveals that CEOs see a lack of customer insight as their biggest deficit in managing complexity. They prioritize gaining customer insight far above other decision-related tasks and rank “customer obsession” as the most critical leadership trait.

!SOURCE: An Anthropologist walks into a bar... Christian Madsbjerg and Mikkel B. Rasmussen

HBR March 2014

CUSTOMER GAPSEXAMPLES

QUESTION:

WHAT IS THE GAP BETWEEN YOUR ORGANIZATION AND YOUR CUSTOMERS?

2min

http://wrd.cm/1cA33Tv

THESE PEOPLE AREN'T EVEN TRYING TO DISRUPT YOUR BUSINESS MODEL, YOU ARE JUST COLLATERAL DAMAGE

!- EDDIE JOON, BIG BANG DISRUPTION, HARVARD BUSINESS REVIEW -

QUESTION:

WHAT IS THE MOST DANGEROUS THING (IN TERMS OF COMPETITION) SOMEONE OUTSIDE YOUR INDUSTRY IS

DOING RIGHT NOW - IN TERMS OF POTENTIALLY DISRUPTING YOUR MARKET?

2min

SLOW EXPENSIVE UNCERTAIN

INNOVATION ISTHE THREAT:

“innovation is a disease”

5 YEARS - TO GET A NEW BUTTON IN MICROSOFT WORD 6 MONTHS TO GET A NEW COFFEE MACHINE IN THE OFFICE (URBAN MYTH)

20 YEARS TO BUILD A HIGH VOLTAGE ELECTRICAL POWER LINE 8 MILLION EUR TO LAUNCH A SALMON HOTDOG

MARKET VALIDATION COST= $1150

IN A WORLD WHERE THE MARKET COST OF TESTING NEW IDEAS ARE CLOSE TO ZERO.

YOUR NUMBER ONE JOB BECOMES TO HARVEST ALL IDEAS AND THEN KILL AS MANY OF THEM AS

CHEAPLY AND QUICKLY AS POSSIBLE

KILL IDEAS

MANAGEMENT STRATEGY DECISIONS

CUSTOMERS

making decisions is places as far away as possible from where decisions need to be made

QUESTION:

WHAT ARE THE SPEED BUMPS HINDERING US FROM RAPID

INNOVATION?

2min

input / outputinnovation is the output - learning is the input

PART 2

MACHINES ARE LEARNING FASTER AND FASTER.

WHY AREN’T WE?

STRUCTUREDDATA

EMPLOYEES

UNSTRUCTUREDDATA

SENSEMAKING

CREATING A CULTURE WHERE EMPLOYEES CONTINUOUSLY FUEL THE ORGANIZATION WITH IDEAS AND INSIGHTS

INVITING AND INVOLVING CUSTOMERS IN THE CO-

CREATION OF OFFERINGS

EXISTING AND ACCESSIBLE OWNED DATA FROM SPREADSHEETS OR DATABASES

UNORGANIZED DATA. EXTERNAL SOURCES. OFTEN OUTSIDE OF THE TRADITIONAL FIELD OF VIEW OF RESEARCH.

THE HUMAN SCIENCE APPROACH TO UNDERSTANDING CUSTOMERS. OBSERVING WITHOUT HYPOTHESIS. A SITUATIONAL APPROACH

CUSTOMERCENTRICITY

RAPID EVALUATION

LAUNCHING AND LEARNING FROM IDEAS LIVE IN THE MARKETPLACE TESTING THEM ON CONSUMERS

AS REAL IDEAS/OFFERINGS

CO-CREATION

UNSTRUCTURED DATA

SENSEMAKING

EMPLOYEES

CUSTOMERSCO-CREATION

RAPID EVALUATION

STRUCTURED DATA

DESIGNING SERVICES IN ORDER TO COLLECT BRAND NEW TYPES

OF DATA

SERVICESAND TOOLS

SOURCES OF LEARNING:

QUESTION:

WHAT DATA WOULD BE MOST VALUABLE TO US, AND WHY?

2min

THIS IS THE FUTURE OF THE INTERNET, IT'S ALL ABOUT PERSONAL COMMUNICATION. THERE ISN'T ONE PORTAL OR ONE-SIZE-FITS-ALL WEBSITE, NO COMPANY WEBSITE...

VIDEO LINK: http://youtu.be/a6cNdhOKwi0

INDIVIDUAL PATHS TO PURCHASE:

In 2012, Google and Shopper Sciences did a study of the purchase journey of 3,000 different customers in tech, CPG, automotive, and finance, and literally found 3,000 different paths to purchase. !However, there were five common hubs (online, friends & family, print media, TV, and brick and mortar) that consumers visited along the way to a purchase decision. Consumers chose their own journey and hit each point along the way in the order and time that made the most sense to them. !In B2B multiple reports show that 55 to 75 percent of the buying process has been completed prior to a prospect reaching out to a potential vendor. !

http://www.sas.com/en_us/insights/articles/marketing/digitization-of-everything-buyers-journey.html

THE REASON WE HAVE MASS IS THAT THE COST OF COMMUNICATING TO EACH CUSTOMER INDIVIDUALLY WAS TO GREAT.

THE BARRIER WAS THE COST OF TECHNOLOGY. TODAY TECHNOLOGY HAS BECOME SO CHEAP

THAT THERE ISN'T A BARRIER ANYMORE. TESCO SENDS OUT 5 MILLION INDIVIDUAL CUSTOMER LETTERS EACH YEAR. MASS

IS QUICKLY BECOMING THE GO-TO STRATEGY OF THE PAST.

4,- 4,-

NIKE ID APPLE

TRADITIONAL CAR INSURANCE

INDIVIDUAL CAR INSURANCE

QUESTION:

WHAT WOULD THE CUSTOMER GAIN FROM INDIVIDUAL TAILORING?

2min

The long-term consequencewe need to get back to the drawing board

WWW

"THE BUSINESS CULTURE IS USING THE WRONG MODEL OF HUMAN BEHAVIOR. IT IS GETTING PEOPLE WRONG."

!"ONCE YOU START TRULY UNDERSTANDING PEOPLE'S BEHAVIOR, YOU WILL BEGIN TO SEE YOUR BUSINESS

LANDSCAPE WITH A NEW CLARITY. YOU WILL RECOGNIZE NEW OPPORTUNITIES AND IDENTIFY

THE SOURCES OF OLDER, SEEMINGLY INTRACTABLE CHALLENGES."

!- THE MOMENT OF CLARITY -

CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN

"THINK ABOUT CUSTOMER SERVICES BEFORE YOU THINK

ABOUT THE PRODUCT. SERVICE PROVIDES A CONTINUOUS SOURCE

OF INCOME. THE PRODUCT IS WORTHLESS WITHOUT CUSTOMER

EXPERIENCE." !

- Professor Solomon Darwin, Berkeley

QUESTION:

WHO ARE YOUR CUSTOMERS?

2min

THE JOB-TO-BE-DONE

VIDEO LINK: HTTP://YOUTU.BE/F84LYMES67Y

QUESTION: WHAT PEOPLE ARE DOING BECOMES MORE

IMPORTANT THAN WHO THEY ARE. WHAT JOB IS HAPPENING IN PEOPLES

LIVES THAT CAUSES THEM TO HIRE YOUR PRODUCT?

- HOW DO YOU IMPROVE THE PRODUCT?

2min

COMPANIES ROUTINELY INVEST IN TECHNOLOGY, AND TOO OFTEN FEEL THEY GET ROUTINE RESULTS. TECHNOLOGY’S PROMISE IS NOT SIMPLY TO AUTOMATE PROCESSES, BUT TO OPEN ROUTES TO NEW WAYS OF DOING BUSINESS. !78% of respondents, achieving digital transformation will become critical to their organizations within the next two years. However, 63% said the pace of technology change in their organization is too slow. The most frequently cited obstacle to digital transformation was “lack of urgency.”

!MIT Sloan Management Review http://sloanreview.mit.edu/projects/embracing-digital-technology/

45% 25% 15% LEADS

45% should be more positive to the brand

50% 70%

25% should be more interested in booking a new

trip (revenue and redemption)

15% shall have knowledge about the advantages of the bonus program incl.

Partnerships.

Create new leads/members to bonus program

50% of the target group should have read the

magazine/content

70% have a high liking

EXISTING KPI's [impossible to measure accurately and difficult to se the relevant value from]

CLVSHARE

OF FLIGHTS(LOYALTY)

FLIGHTSBONUS

PROGRAMUSAGE

Increased Customer Life Time Value (membership)

NEWBUSINESS MODELS

SALES

Increased loyalty (of the times you fly, how often do you fly with us)

Increased number of flights (travels) pr. customer

(proactivity)

Increased usage of bonus points and partners

Revenue from new digital business models and

number of partnerships

Sales / growth

SUGGESTED ADDITIONAL DIGITAL KPI'sLEADS

Create new leads/members to bonus program