The Customer Experience / Customer Advocacy Connection
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Transcript of The Customer Experience / Customer Advocacy Connection
Bob PetersonResearch Director@bobpetersonmn
The Customer Experience/Customer Advocacy Connection
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What You Will Learn During this Session
•How the changing buyer’s journey makes customer advocacy more critical than ever
•Proof that customer experience and advocacy are essential to business growth
•Secrets from successful advocacy teams
Customer Experience is the New Demand CreationWhy Creating Customer Advocates is a Growth Strategy
© 2013 SiriusDecisions. All Rights Reserved
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Customer Experience Is the New Demand Creation
1
2
3
4
5
Time
Level of
Inte
ract
ion
1. Awareness2. Consideration3. Purchase4. Ownership5. Repurchase
If post-sale experience is negative…
This mountain becomes steeper.
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SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 6
What We Heard: Customer Experience Is Key to Growth
Our study shows a clear link between higher growth and thepresence of a customer experience function with the proper focus and investment.
The customer experience – growth connection:
Share of b-to-b companies with a customer experience function that plan to grow more than 10 percent this year
54%
82%
…that have a chief customer officer 49
%
…that invest more than 15 percent of marketing budget on existing customers
74%
…that make the CCO accountable for revenue growth from existing customers
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 7
What We Heard: Experience Investment Delivers Results
Compared to their average-growth peers, high-growth companies
see improvement in critical areas more often.
Higher retention rates 57% 47%
Higher response rates from customers 66% 47%
Revenue growth 55%43%
Higher loyalty/Net Promoter scores 48% 32%
Higher customer profitability 43% 32%
Hig
h G
row
th
Avera
ge G
row
th
Where b-to-b sees experience investment impact
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 8
64% of b-to-b companies DO have a customer experience
function BUT
What We Heard: Still Work to Do On Customer Experience
Even when companies have a customer experience function, they
don’t always optimize its role and impact.
36% of b-to-b
companies DO NOT have a
customer experience
function
are not seeing greater advocacy or references75%
do not conduct experience mapping57%
do not measure by retention and profitability38%
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Customer Marketing Is a Priority for CMOs
“Social media is a skill every marketer should have.”
“The customer experience begins before they are a customer and kicks into high gear once they become one.”
“The investment in marketing technology is requiring a new skill set in marketing.”
Digital Marketing
Content Marketing
Marketing Technology
Customer Marketing
Social Media#1
#2
#3
#4
#5
Comments
Advocacy must play a leading role in marketing’s transformation to strategic partner
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 10
Conventional Wisdom: The Linear View of ExperienceThe sphere of experience expands as buyers become customers, but
it only improves with a cohesive approach.
1. Reputation2. Inbound
content3. Influencers 4. Peers
1. Web Properties2. Outbound
touches/content
3. Events
1. Sales/marketing process
2. Selling team3. Trials/demos
1. Solutions2. Service/support3. Finance4. Community
Strong Alignment• Segmentation• Demographics• Personas
Strong Alignment• Lead level• Scoring• Messaging
Strong Alignment• SLAs• Enablement• Pipeline accel.
Weak Alignment• No Process• No Agreement• No
Coordination
Experi
ence
Target Prospect Opportunity Customer
Alig
nm
ent
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 11
Reality Check: Customer Experience Isn’t One-Size-Fits-All
Multiple customer roles and lifecycle stages mean the post-sale experience is not a simple add-on to the buyer’s journey.
1. Solutions2. Service/support3. Finance4. Community
Customer
Deliver Develop Retain Grow
COMPANY RESPONSIBILITY
Initiate Participate Actualize Advocate
CUSTOMER EXPERIENCE
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 12
Experience Today: Execution Without CoordinationAlignment works during the buyer’s journey, but when buyers
become customers, the complexity increases significantly, as do the stakes.
Initiate AdvocateParticipate Actualize
Deliver Develop Retain Grow
Sales
Service
Marketing
Product
No
CUSTOMER EXPERIENCE?
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 13
The Venn Approach to Customer ExperienceEach function must excel in its own area and be coordinated to
create an optimized customer experience.
Sales
Service
Product
Marketing
Customer Experience
© 2014 SiriusDecisions. All Rights Reserved 14
The Business Case for Customer Experience Investment
• Look at your own numbers: What’s it worth to…• Retain 1 percent more of your base? How about 5 percent?
What is the impact on revenue growth and profit?
• Reduce customer support demand by 5 percent? Ten percent?
• Improve product/service engagement by 10 percent? More?
• Increase customer lifetime value by length (e.g. stay one more year) and/or revenue/profit (usually related)?
• Reduce cost of sale by .5 percent by making renewal easier and leveraging advocates?
• Increase selling time by 5 percent for growth activities?
© 2013 SiriusDecisions. All Rights Reserved
When you understand and improve the levers of loyalty, it’s easier and less expensive to grow. Advocacy is key.
Customer Advocacy’s Future:The Customer Experience-Advocacy Connection
The Future of Advocacy
© 2013 SiriusDecisions. All Rights Reserved
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Customer advocacyis your
UNFAIR competitive advantage
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Customer Experience Is Key to Closing Deals
Source: SiriusDecisions 2013 persona study of C-level buyers
80 percent of a CXO’s final decision is based on their own or others’experience with your company
Brand (Sum of Customer Experience) Helps Sales Productivity
CEO
CFO
CIO
CISO
CMO
COO
CSO
LOB
HR
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
52.1%
33.3%
42.5%
46.2%
39.2%
47.4%
34.8%
43.0%
28.2%
36.2%
51.6%
42.5%
46.2%
50.0%
46.1%
50.0%
48.4%
55.3%
Significant
Moderate
Low
None
89 percent of CXOs say their perception of a vendor’s brand moderately to significantly influences their short-list creation.
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More Advocates Mean More Growth
Companies with a higher NetPromoter Score (i.e., more advocates)significantly outperform peers in revenue growth
Secrets ofSuccessful Customer Advocacy Teams
© 2013 SiriusDecisions. All Rights Reserved
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One: Customer Advocacy is a Strategic, Planned Contribution
Sales references Influencer/analyst relationsVideos Public relations/press releasesCase studies Customer awardsSuccess stories Customer visits, Executive briefingsCommunities Customer eventsAdvisory boards Partner supportVoice-of-the-Customer research Customer data/insightsSocial media RFP supportSearch marketing Customer webcasts
BUYING CYCLE
RetainPhase
Develop Phase
Deliver Phase
Grow Phase
ActualiseParticipateInitiate Advocate
CUSTOMER LIFECYCLE
Whole >
Parts
Two: Customer Advocacy is About Making the Customer a Hero
Three: Advocacy Is Linked to Financial Impact
Be specific about the role of advocacy on the path to revenue and gain credibility for its impact
Four: Advocacy Sourcing is an Art and a Science
Five: Technology Helps Advocacy Scale
How Can You Make a Case for Strategic Advocacy Investment?
1.Track results in a clear and credible way: Who, what, when and why, all linked to growth
2.Know your audience for reporting: Communicate consistently and appropriately
3.Remember it’s not about you: Focus on sharing customer success in ways they find valuable
4.Make advocacy a resource: Focus on meeting needs of sales and partners in ways that matter
5.Join the team: Connect with other functions to coordinate advocacy activities and show value
6.Do more: Let technology help the team scale and focus on high-value activities
Thank You!
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