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Maximize How You Individualize Because the Journey and Outcome Matter
The CMO Council APJ Roundtable Tour, October/November 2014 Nicholas Kontopoulos Global Head of Strategic Marketing Programs, SAP Customer Engagement Solutions
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Get in touch with me @nicholask71
CONFIDENTIAL
EXPLORE THE IMPACT DIGITAL CUSTOMERS ARE HAVING ON OUR ENTERPRISES
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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.
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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
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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
DIGITAL ADS
WORD OF MOUTH
SOCIAL
TV
RETAIL STORE
WEB SHOP
REVIEWS
SEARCH KW/ADS
CONTACT CENTER
WEB SHOP
SOCIAL
RETAIL STORE
WEB SHOP
CONTACT CENTER
CONTACT CENTER
RETAIL STORE
CONTACT CENTER
CONTACT CENTER SOCIAL
WORD OF MOUTH
SOCIAL
SUPPORT PORTAL
?
SUPPORT PORTAL
?
BRANDED COMMUNITY
?
AWARENESS
INTEREST
Desire
ACTION
USE
ACTION
ADVOCACY
ADVOCACY
Desire
USE
Each customer chooses their own adventure.
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One customer.
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Many journeys.
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Infinite possibilities.
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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. 25 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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HOW DO YOU ENGAGE THE INDIVIDUAL?
- W L Bateman
If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got.
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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
© 2011 SAP AG. All rights reserved. 33
CUSTOMER EXPERIENCE MANAGEMENT
The customer’s perceptions and related feelings caused by the one-off & cumulative effect of interactions with a supplier’s employees, systems, channels or products.
CUSTOMER EXPERIENCE
Source: Gartner
“Or, the aggregated memories of every touch a customer has with your company”
Source: Gartner
The practice of designing and reacting to customer interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy.
CUSTOMER EXPERIENCE MANAGEMENT
“Or delivering the consistent customer experience across the entire enterprise”
It’s time to reimagine Customer Engagement
But what is Customer Engagement?
Well from an SAP perspective we frame it thus…
End-to-End Business Process Execution
Harmonized Digital and Physical Experiences
Growth in Profitable Customers
Real-time Customer Insight
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60% of APJ marketers say putting the customer first is key to customer centricity. (Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)
Use this title slide only with an image Report that they are highly satisfied with their ability
to Listen to Their Customers.
Have implemented systems or processes to
Understand & Meet Customer Needs.
11% 8% Have back office systems
that Deliver on Brand Promises
26%
But Asia Pacific Marketers are struggling to deliver on it CX A STRATEGIC PRIORITY
(Source: The CMO Council APJ Research Study - Maximise how you Individulise 2013)
WHERE DO YOU START?
YOU NEED A STRATEGY
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Need to follow key CX best Practices
Gauge your CX maturity: how ready is your organization?
Define a CX strategy and focus on implementation: think big, start small.
Evaluate the impact of CX initiatives on business goals: measure, measure, measure.
in a structured manner
SUCCESS FACTORS: STRATEGY, PROCESS, TECHNOLOGY, AND PEOPLE
Strategy Business goals and
objectives
People Organisational
structure, skills, and incentives
Process Procedures and business rules
Technology Apps and
infrastructure
Develop process flows to achieve the selected strategy.
Condition the organisation to adopt new processes.
Get target users to successfully utilise
the applications
Deploy new technology that supports required
process flows.
Don’t become one of these statistics:
§ 25% of projects failed because of poorly defind business requirements.
§ 31% of projects failed because of poor business process desgin.
§ 48% of projects suffered because of technical/intergration difficulties.
§ 21% of projects failed to factor in customisation requirements.
Customer
Source: Forrester.
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.
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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
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LISTEN
UNDERSTAND
ENGAGE
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
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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.
© 2011 SAP AG. All rights reserved. 68
Empower your customers
Make their life easier with all the information they need – anywhere, anytime – so they can better engage with your company.
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
72 © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Make it simple to engage customers like never before.
Customer Engagement Solutions for Marketing, Sales, Commerce, Service, and Social.
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?
Old Process + New Technology =
Expensive Old Process
www.custedge.com
Feel free to connect with me at : Nicholas.kontopoulos@sap.com
#nicholask71
http://sg.linkedin.com/in/nicholaskontopoulos
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THANK YOU!