Unifying the Customer Experience

Unifying the Customer Experience Across All Channels: | Cover

Unifying the Customer Experience Across All Channels:How CMOs and CTOs Strengthen Brands with

Digital Marketing Infrastructure

Unifying the Customer Experience Across All Channels: | Page 1

Table of Contents Introduction 2

1. Market Trends and Drivers: Why CMOs and CTOs 3 are Under Increasing Pressure in the Customer Era

2 CMOs and CTOs Join Forces to Drive CXM 4 to New Levels

3 Barriers to Performance in CXM 5

4. Partnering to Succeed: Agencies and 6 Systems Integrators

5. The CXM Core: Content, Commerce and Mobile 7

6. Overcoming Hurdles to Successful Execution 8

7. Beyond the Core: Ensuring Reliability and 9 Responsiveness

8. Succeeding in the Experiential Future 11


IntroductionCustomer expectations are increasingly difficult to satisfy. Influenced by engagement levels of exceptional brands, customers expect more than ever before. More personalization. More product options. More ways to communicate. More value for their money.

To meet these escalating expectations, marketing executives are making aggressive new investments in technologies, products, channels, content, and partnerships. On the tech-nology front, they are quickly realizing they can’t act alone.

That explains the deepening relationship between Chief Marketing Officers (CMOs) and Chief Technology Officers (CTOs). Together, they must build the systems of engagement that turn demanding customers into fierce advocates.

But they are running into extreme obstacles. As one-to-one marketing strategist Don Peppers explains, brands are increasingly struggling with “friction and fragility.” They are attempting to create a “friction-free customer experience,” but progressively find them-selves vulnerable to failure as their complex systems become less reliable, robust, and resilient.

The situation can seem overwhelming, yet industry leaders are taking bold steps. “Because there’s a multitude of platforms compared to 20 years ago, marketers can no longer control the message entirely,” says Phil McAveety, Executive Vice President and Chief Brand Officer of Starwood Hotels & Resorts Worldwide, Inc. “Instead we have to engage in a conversation with the consumer, and as an organization. You have to embrace that reality.”1

Indeed, leaders are anxious to put digital technology in its rightful place so they can concentrate on the brand and customer experience. As Procter and Gamble’s Global Brand Building Officer Marc Pritchard puts it, “Let’s focus on creating the great ideas that move people and build great brands. And let’s leverage the tools, platforms and technology to make them bigger and engage with people like never before. Our brand building teams, our agencies and most of the people who see our stuff and buy our products will thank us for it.”2

Such patterns show why top CMOs and CTOs are now focused on collaboratively addressing the challenges of Customer Experience Management (CXM). They are particu-larly focused on personalizing interactions, unifying channels, and ensuring the “CXM Core” — content, commerce, and mobility — is reliable and robust. Such efforts will be critical if they are to deliver memorable customer experiences that contribute to profitable and enduring growth.


1. Market Trends and Drivers: Why CMOs and CTOs are Under Increasing Pressure in the Customer Era

CMOs and CTOs find themselves increasingly focused on addressing the shared challenges and objectives of Customer Experience Management.

The first challenge they face is the emergence of the omni-channel imperative. Buyers now expect to have an engaging relationship with a brand — whether their interactions take place online, over the phone, in person, or at some other touch point.

Customer and prospect expectations have never been higher. According to research firm Gleanster, 62% of brand marketers cite changing customer preferences and channel proliferation as their current top challenges.3 And just 4% of companies in a recent IBM study rated the multi-channel customer experi-ence associated with their own brand as “excellent.”4

Consistency is the watchword these days — and that means providing a consistently exceptional experience across all channels. Influenced by their experiences with leading brands, customers come to expect the same (or better) from every brand.

Companies like Nordstrom’s, REI, Starbucks, USAA, and Hotel Intercontinental set the pace, demonstrating that you can engage the buyer in a compelling way whenever and wherever they are prepared to do business.

At the same time, corporate boards and leaders expect high revenue growth across digital channels. After all, significant investments are being made in technology and talent. Digital channels — which offer an opportunity for a personal, global, and always-on (24x7x365) experience — transcend the limitations of physical locations or territories. While growth is demanded from all channels, truly dynamic growth is now expected from digital channels.

Yet another notable trend is the accelerating pace of innovation. Companies must launch new products, services, features and functions at a far greater pace than ever before. They are expected to simultaneously globalize, localize, and customize their offerings. To guide buyers through their journey, companies must personalize interactions — engaging customers in a one-to-one fashion that addresses individual needs, interests, and priorities.

The CTO and the CMO are at the center of these trends and transitions.

“Today’s customers demand an

always-on, unified experience

with the brands they identify

with. Whether they’re looking at

a web property on their mobile,

tablet, or desktop, it needs

to feel like part of the same

conversation. On the technology

backend, that’s difficult to do

and we need to lean on deep

infrastructure expertise to make it

happen.”Paolo YuviencoGlobal Chief Technology Officer

DigitasLBi, a Rackspace partner


2. CMOs and CTOs Join Forces to Drive CXM to New Levels

Customer Experience Management is a strategy designed to deepen relationships with customers and thereby increase their loyalty. Executing on this strategy involves atten-tion to many demanding factors across multiple business disciplines. As brand consultant Jeananne Rae explains, companies are realizing that “building great consumer experiences is a complex enterprise, involving strategy, integration of technology, orchestrating busi-ness models, brand management and CEO commitment.”5

Given these significant demands, CMOs and CTOs have realized they must actively collaborate to achieve their objectives. CMOs bring a vision that revolves around growth and customer engagement. With opportunity shifting in this direction, Gartner predicts that CMOs will manage a larger IT budget than CIOs in the coming years. But they’ll need expertise and guidance to determine how best to direct their investments. That’s why they are turning to their CTOs, who bring insight on technology design, architecture, and infrastructure. CIOs, meantime, play an essential role in ensuring systems are secure, integrated, and effectively governed.

CXM begins with clarity about customer motives. “Customers do not come to you in order to experience your product,” says Peppers, who along with Martha Rogers, co-authored bestsellers such as The One to One Future and Extreme Trust. “The only reason they have an experience with you is because it’s required to get their problem solved or need met. If they could meet their needs without buying your product, they would. They want to minimize the time it takes, the money involved, and the effort required to meet their objectives.”6

But the challenge of making customer experiences friction-free is increasingly going unmet. “Few companies can provide a truly outstanding customer experience,” he adds. “Most can barely provide a frictionless customer experience. That’s an experience that’s reliable, relevant, valuable, and trustable. In fact, companies are increasingly fragile in a world of proliferating, yet disparate interaction channels, such as social and mobile.”

As Peppers sees it, companies “keep stretching themselves to accommodate a changing environment... only to find themselves vulnerable to disruption – lacking resilience and redundant capacity. When their underlying systems become fragile, the customer experi-ence becomes fragile. That requires them to rethink the design of their strategy and technology.”7

To provide an exceptional customer experience, companies must manage interactions across channels and eliminate all friction in the buyer’s journey. In the digital age, factors such as unwieldy navigation or long page load times are no longer acceptable. Poor performance means lost revenue and diminished reputations. That’s why CMOs and CTOs are working together to make engagement with their brands seamless and compelling.


3. Barriers to Performance in CXMAs they contemplate new CXM initiatives, CMOs and CTOs may find themselves confronting a series of barriers. Here are some of the key challenges they must overcome:

• Inability to provide a seamless experience across channels. As channels proliferate and customer expectations increase, companies face a growing amount of complexity. They may quickly realize they lack the strategy, design, and execution capabilities necessary to launch an advanced, omni-channel initiative. Getting the right strategy and architecture in place is, to a great extent, a matter of experience. And, given the rapid pace of technology evolution and the skills necessary to support these endeavors, it’s increasingly difficult to act alone. Third-party expertise, guidance and support are often necessary to handle the extreme demands that have emerged.

• Legacy infrastructure that impedes advancement. Companies are now under pres-sure to provide greater personalization, richer content, and increased localization as they attempt to penetrate new markets at home and abroad. But they are finding that existing infrastructure often impedes their ability to roll out and extend omni-channel capabilities. They are pressed to reach new user populations and reach them on a proliferating array of devices, particularly mobile devices. Such demands can overwhelm existing web and mobile infrastructure, leading to declining performance and a diminished brand experience.

• Insufficient expertise to execute a CXM rollout. As brands recognize the necessity to re-platform their systems and implement new customer-facing capabilities, they are quickly realizing they lack the skill sets and experienced talent necessary to implement and inte-grate these fast-evolving technologies. In the absence of necessary skill sets, companies are unable to adapt to the new demands and expectations of their customers. They must gain access to this expertise — or fall behind.

CMOs and CTOs are under pressure to collaboratively address these issues. They must bring to the fore new strategies and execute on them if they are to keep up in today’s fast-paced markets. They must fuel growth by providing consistency, seamlessness, and personalization across all forms of technology-driven customer engagement.

But the challenge is multi-faceted. Donovan Neale-May, Executive Director of the CMO Council, puts it: “There is no point in wasting marketing resources on seducing customers with offers, incentives and captivating branding if there is a big disconnect on the product, business policy or service experience side.”8

The risk CMOs and CTOs face revolves around getting locked up in rigid and confining invest-ments. They need the flexibility to make smart transitions as their markets and customers evolve. They can’t get tied up in unresponsive vendor relationships or inflexible technology. That’s why it’s so critical to act with agility and adaptability in mind, identifying partners that can optimally and flexibly support the demanding transitions to come.

According to a recent report from Accenture called “Turbulence for the CMO,” agencies and alliance partners “must help CMOs make sense of complexity in the marketplace by improving their levels of execution and delivery and by providing a broader set of capabilities and deeper integration across the agency ecosystem.”9


4. Partnering to Succeed: Agencies and Systems Integrators

Given the tremendous challenges they now face, CMOs and CTOs are increasingly relying on forward-looking agencies and systems integrators — seeking their guidance on strategy, infrastructure and applica-tion design, and execution. They realize they need the perspective and insight these firms have derived from working with a broad range of brands across multiple industries.

But brands are also seeking advanced and adap-tive platforms to keep up with the rapidly evolving demands of their customers. That means they need experts at the leading edge of technology and skill development. They need partners that can imple-ment robust and technologically sophisticated systems, while perpetually maintaining, supporting, and upgrading them. Indeed, they need service level commitments that give them a high level of confi-dence.

CMOs and CTOs are now seeking partners that can handle IT complexity on their behalf. Today’s brands “invest in a fragmented array of technolo-gies to address emerging channels” because “there really aren’t any turnkey, end-to-end, multi-channel, Customer Experience Management solutions,” according to Gleanster. As a result, “integra-tion continues to be a core value driver for top performing organizations.”10

This allows the business to focus on its sources of strength and differentiation, freeing up internal development and IT teams to focus on more stra-tegic concerns. Marketing leaders realize their core competency is not in managing a data center and its attendant infrastructure.

Such dynamics have contributed to the emergence of a new operating model. Compa-nies are looking to their agency partners and systems integrators to help them design, implement, and integrate CXM platforms. And while digital commerce may have revolved around internal operations and data centers in the past, now companies are seeking to shift risk and delegate responsibilities for IT infrastructure.

“The first hurdle is changing the mindset from producing one-off campaigns to creating a continuing conversation with your consumers. Once you look at the challenge that way, it becomes clear that you need a different kind of infrastructure. It’s not about a CRM tool or a CMS. They certainly play a role, but so do many other disparate systems. This is an integration challenge. It’s about creating an engine that can process your volumes of data, apply the intelligence gained from customer insights and segmentation and reach your customers across any experience (web, mobile, social, etc), and then continually optimize those messages by feed that learning back into the engine. That’s a large ask and it requires a deep infrastructure expertise to create the integration points between your various enterprise platforms to bring it to life.”Joe Lozito, CTORosetta, a Rackspace partner


5. The CXM Core: Content, Commerce and MobileCompanies that are unifying the customer experience across channels have recognized three essential elements of a customer engagement platform: content, commerce, and mobile.

Call it the CXM Core. These three factors lie at the heart of today’s most advanced Customer Experience Management initiatives. CMOs and CTOs have recognized they must provide equal weight to these factors if they are to meet growing customer expectations.

Consider the power and value of each factor individually:

• Content. With advanced approaches to content management, you have the ability to provide personalized and deeply relevant messages to each customer. You deliver the right content to the right customer at the right time. You now can individualize the messages and offers you present. By anticipating and responding to customer needs, interests, and priorities on an individual basis, you strengthen their loyalty and dramatically reduce customer churn. Further, you turn your customers into promoters and advocates – individuals who actively recommend your brand to others.

• Commerce. By guiding your customers through a seamless and compelling buying experience, you make it easy for them to find what they want and discover new offerings they may not have considered. Advanced e-commerce ensures they get their questions answered and keeps them from abandoning their shopping carts. These platforms support individualized offers, bundles, and recommendations. And with an exploding number of APIs from which to choose, you can offer new functions, capa-bilities, and third party services. You expand the options available to your customers and ensure they get products that are precisely matched to their needs and interests.

• Mobile. While many brands have treated mobile as an afterthought, it’s increasingly clear that mobile represents a distinct opportunity that deserves careful attention. In fact, Gartner places mobile apps and applications at the top of its strategic tech-nology trends in 2014.11 Leading brands are beginning to design customer experiences with particular mobile devices in mind, recognizing that smart phones and tablets deliver different user experiences. By optimizing for these various devices, you elimi-nate friction in the buyer’s experience and amplify the value you deliver.

Collectively, these three factors enable you to provide a powerful and memorable expe-rience across channels. The CXM Core is the foundation on which exceptional omni-channel experiences are built.


6. Overcoming Hurdles to Successful ExecutionBut to build this foundation, you’ll need to overcome a series of hurdles.

In terms of content, it’s clear that new demands can be overwhelming. While compelling content drives activity, it also can degrade site performance. In fact, personalized content and rich media are putting enormous strains on existing infrastructure. And such difficulties become even greater as brands attempt to provide personalized content on a global basis. According to Gleanster, top brands are now trying to give business users increasing access to their content management systems, but “many organizations are finding it difficult to support the proliferation of emerging channels with legacy content management solutions.”12

Ecommerce, too, is often hampered by legacy platforms that are incapable of handling all the growing demands placed on them. In many cases, homegrown or disconnected technologies can degrade site performance, giving users a frustrating experience. “Incumbent commerce engines aren’t keeping up with the ever-expanding list of Internet-enabled consumer devices or the complexities of delivering a ubiquitous experience across them,” contend Forrester analysts Peter Sheldon and Lily Varon.13

Mobile implementations, meantime, are often hampered by the challenge of designing for a proliferating series of devices that put new and unfamiliar demands on network infrastructure. And while “responsive design” approaches may bring discipline to CXM, they don’t neces-sarily encourage you to design with a specific device in mind or start with “the smallest screen first.” There’s much work to be done. According to a 2013 IBM survey, just 17% of ecom-merce and e-business professionals surveyed rated the mobile customer experience associated with their own brands as “good.”14

Given these new demands, companies are now exploring their options for re-platforming, replacing existing technologies to keep up with growth demands, competitive threats, and customer expectations. Central to the success of these re-platforming efforts will be the support of agency partners and systems integrators who can help brands choose, implement, and integrate appropriate solutions. Indeed, companies must integrate the CXM Core effec-tively to provide a truly powerful, omni-channel experience. Otherwise, they will merely be creating new gaps and silos.

It’s difficult to get there alone. Given the accelerating pace of technology and the growing demands on skills, most companies will need trusted partners that can support them with the strategy, design, and execution capabilities to rapidly roll out and continuously adapt the systems that underlie Customer Experience Management.

Your agencies and integrators will gravitate to recognized and proven solutions to create their CXM Core. They will rely on software solutions like Adobe Experience Manager, SiteCore, Magento, and others to build a robust, omni-channel, CXM platform.

Beyond your CXM platform, you’ll also need to consider how best to host and deliver these services. While some companies have chosen to keep their hosting capabilities in-house to this point, the increasing and unanticipated demands they face are starting to change their perspective. To gain access to advanced and adaptive solutions on this front, they realize they need two things: reliable infrastructure and responsive support.


7. Beyond the Core: Ensuring Reliability and Responsiveness

Whatever investments are made in the front-end factors of CXM, the initiative will inevi-tably break down or underperform in the absence of reliable infrastructure and responsive support. You must have an advanced approach to hosting and an optimized platform — ensuring you have the right resources to deliver the right workloads at the right time.

As Forrester notes, “Some e-business teams are re-architecting their on-premises e-commerce solutions to allow them to deploy in the cloud, thus allowing them to: 1) manage peaks and troughs in traffic in a cost-effective manner, and 2) put processing power physically near end customers in international markets.”15

That idea has encouraged companies to explore managed hosting solution providers that are dynamic, dependable, and accountable. Given the fast pace of innovation and the unpredictable nature of market demand, they’ve realized that high performance is best obtained (or supplemented) through reliance on a focused and proven specialist.

As leaders in CXM have discovered, here are the key parameters of an advanced solution for managed infrastructure hosting:

• Availability. This factor has a direct impact on user experience and it’s a KPI that can be actively tracked. Just consider: What is the cost of downtime on your business? Even seconds of downtime can have an extremely negative impact on many brands. It can erode brand perceptions and lead to lost revenue. With this in mind, you want a service provider and a service level agreement that guarantees extremely high uptime. Look for a provider with a proven track record. Some providers can even provide virtually 100% uptime on certain critical applications. You want a partner that under-stands the unique demands and requirements associated with digital commerce — one that can collaborate with you to create a high-availability solution that is precisely matched to your business objectives and demands.

• Scalability. Digital commerce is dynamic, often seasonal, in nature. It requires compa-nies to support periodic spikes in demand. That can lead to jarring shifts between peaks and troughs. The trick is to “rent the spike” and add capacity to your base as necessary. Rather than being constrained by your infrastructure, you can ensure you are prepared to massively scale during peak periods. Further, you can scale up in a controlled way as you grow as a company. Otherwise, you are required to continu-ously redesign and re-architect your underlying IT infrastructure, an increasingly costly and complex task. The key is to ensure your business is supported at every layer of the application and infrastructure stack. Unless your infrastructure is scalable, your applications will underperform and your customers’ experience will suffer. Instead, you want a service provider with a broad portfolio — one that can offer a mix of private and public cloud solutions as well as dedicated co-location.


• Security. Your brand and business are utterly compromised if your customers don’t feel secure. You don’t want to be the next target of a cyber attack. That’s why it is so critical to rely on a partner that not only meets standards of compliance, but far exceeds them. You want a service provider that designs your solution with deep security at the forefront, drawing on the skills of experienced security experts. Expect your partner to be highly rated by recognized authorities in terms of its security capabilities (including PCI-compliance). And you want a partner that can help you navigate the maze of compliance to meet your distinct security needs and requirements. Does your partner have deep security experience with digital commerce? Can your partner provide relevant client references that demonstrate a high level of commitment to this critical objective? You should have tremendous confidence on this front before stepping forward.

You want a managed hosting partner with the expertise and infrastructure to address these critical criteria. You want training and expertise in terms of the ability to design solutions — even hybrid IT solutions — that are matched to the specific demands and objectives of your environment. You shouldn’t have to rip and replace your existing infrastructure to meet your goals. You should be able to leverage and extend it.

And, once you’ve implemented your solution, you want responsive support and ongoing expertise around design and performance. You need to know that your partner can provide dedicated account management and support from experts 24x7x365, across all your geog-raphies. Global support means an ability to provide expertise and infrastructure capabilities throughout the world.

But you also want reliable and dynamic infrastructure that is highly available, scalable, and secure. “Growth in user populations, devices, and dynamic content are each ramping up — and make your top challenge scaling up your web capacity and performance,” according to Forrester.16 You want a partner that’s capable of handling the unique digital requirements of today’s most demanding brands.

Given that your managed hosting provider will be responsible for hosting your CXM Core, you also want to ensure this partner is familiar with the specific applications you implement. Your partner should have expertise in these applications so that it can quickly spin up and roll out user instances while ensuring these apps are appropriately monitored, maintained, and upgraded.

After all, you may rely on your agency partner or system integrator to design or re-platform your CXM solution, but it’s your managed hosting partner that’s on the hook for application performance on an ongoing basis. The tighter the alliances in this ecosystem of software, agency, and hosting providers, the more seamless and integrated the outcome.

Ultimately, your managed hosting provider should guarantee support for a powerful customer experience. You want rapid page load times, multi-channel enablement, global coverage, responsive support, and strong commitments on uptime and availability. Just remember: Your ability to delegate underlying infrastructure responsibilities (while holding your partner accountable) enables you to concentrate on higher-order concerns associated with managing the customer experience across channels. With confidence in your underlying infrastructure, you can commit more resources to the experience itself.


8. Succeeding in the Experiential FutureIn their path-breaking book The Experience Economy, Joe Pine and Jim Gilmore argued the transition to selling experiences “will be no easier for established companies to undertake and weather than the last great economic shift, from the industrial to the service economy. Unless companies want to be in a commoditized business, however, they will be compelled to upgrade their offerings to the next stage of economic value.”17

Those words were written 15 years ago. Now, brands are truly challenged to make experiences exceptional and memorable. But, as plenty of research suggests, most companies struggle to eliminate friction and make experiences merely satisfying.

As companies seek the next stage of differentiation, it’s clear that attention and resources must be shifted into staging, delivering, and managing customer experiences. CMOs and CTOs must master the CXM Core — content, commerce, and mobility — to ensure their brands stand out and succeed. They’ll have to unify the customer experi-ence across all channels without becoming vulnerable to new forms of fragility.

To meet all these goals, they’ll need solid partners that can help them navigate this new world of technological, organizational, and channel complexity. The future belongs to brands that are free of friction and fragility, able to anticipate and address tomor-row’s expectations. The future, just as Pine and Gilmore imagined, has arrived.


References:

1 “Transforming Starwood From Bricks And Beds Into Lifestyle Brands,” Forbes.com, May 16, 2012.

2 “P&G’s Marc Pritchard: ‘The Era of Digital Marketing is Over,” MarketingWeek, Sept. 19, 2013.

3 “How Top Performing Retail Organizations Embrace Web Content Management and E-Commerce Integration,” Gleanster.com, 2012.

4 “Delivering a Seamless Experience Across Every Channel,” IBM.com, 2013.

5 “The Importance of Great Customer Experiences,” BusinessWeek, November 27, 2006.

6 Rackspace interview with Don Peppers, May 7, 2014.

7 Ibid.

8 “Time for Business Execution to Match Brand Expectation,” CMO Council, March 20, 2014.

9 “Turbulence for the CMO: Charting a Path for the Seamless Customer Experience,” Accenture, 2013.


11 “Gartner: Top 10 Strategic Technology Trends For 2014,” Forbes.com, Oct. 14, 2013.


13 “10 Pitfalls to Avoid During E-Commerce Replatforming,” Forrester Research, March 7, 2014.

14 “Delivering a Seamless Experience Across Every Channel,” IBM.com, 2013.

15 “Optimize Performance for Global E-Commerce,” Forrester Research, March 14, 2014.

16 “Shifting Performance Strategies and Solutions for Mobile and Web Delivery,” Forrester Research, August 2012

17 Pine, J. and Gilmore, J. (1999) The Experience Economy, Harvard Business School Press, Boston, 1999.


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Unifying the Customer Experience

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