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Customer Happiness

A business strategy that transforms customer experience in a new revenue stream.

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Munich, 21 September 2017

LUCA LEONARDINI

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The Contest

Customer Happiness

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WHAT?

“Love your customers.” Philip Kotler

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“Love your customers”

The first of the 10 marketing commandments in Philip Kotler’s book.

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PASSION PURPOSE PROFITSPEOPLE

Laurence MacCahill & Carlos Saba

A Different Marketing Paradigm

Companies aim at being the best, not necessarily the biggest. Because people come first.

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91% of companies consider themselves to be «customer oriented» but only 10% of customers agree.

Forrester Research Group 2013

After a bad experience 89% of customers change supplier. Squiz Connect 2014

66% of consumers consider the customer experience the first selection criteria to remain loyal to a supplier.

Customer Experience Impact Study 2010

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Accenture’s 10th annual Global Consumer Pulse Research

The continuous change has created a “switching economy”. $6.2 trillion in revenue opportunity for providers across 17 key

markets.

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Accenture Customer Research, 2015

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The Concept

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WHAT?

Customer Happiness

“Today product innovation is no longer enough.” Bernard Charlès, CEO Dassault Systèmes

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“Today product innovation is no longer enough.” Bernard Charlès, CEO Dassault Systèmes

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Customer Experience (CX)

“Customer Experience is any interaction occurring between customers and companies before, during and after purchasing.”

Harley Manning, Forrester Group

If even one touchpoint goes wrong, the whole experience will be negatively affected

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Customer Experience IS NOT

Customer Satisfaction

Customer Service

User Experience

Kissing Customers

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It measures what customers think after the interaction.

It creates an ecosphere which helps design a positive experience around each touchpoint, to provide customers with a repeatable good experience.

Paradigm Shift

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Customer Satisfactionthe product

is the main focus.

Customer Experience the customer

is the main focus.vs

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Customer Experience Objective

The brand creates an expectation

The CX delivers a meaningful experience that matches the customer’s expectation …

builds an emotional connection, that the customer inevitably wishes to repeat the experience

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The Benefits

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WHY?

Customer Happiness

Customer Experience Drives Loyalty. Greater Loyalty Drives Revenues.

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CX is a business discipline, not a bumper sticker

14Forrester Perspective: The business impact of Customer Experience

2007 - 201710 years of CXi

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CX Scores Business Results

The growth rate of companies that “love the customer” is up to 10 times higher than the competition.

Their profitability is 4 times higher than the average S&P. Source: Fortune 100 Best Companies to work for 2015

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Customer Experience As A New Revenue Stream

CX is a long-term business strategy that allowed Adobe, Salesforce, Mercedes USA, E.ON, Virgin Media, JetBlue, LEGO

and many more companies worldwide to save Millions.

“Customer service costs will drop because customers have less problems to solve.” Sean Risebrow, Virgin Media

“Driven to delight is the successful CX strategy that transformed us from a product centric company to a customer obsessed company.”

Steve Cannon, CEO Mercedes-Benz USA

“Collecting already existing customer data from different areas, using and sharing them across the company has been the key success factor of our Customer Experience

integration program.”Bonny Simi, VP Talent, JetBlue

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Three Customer Experience Correlated Benefits

Additional purchases

Churn reduction

Word of mouth

Additional incremental purchases from loyal customers.

Inverse correlation between CX and customers defection: revenue saved by lower churn.

Positive word of mouth drives new sales.

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Focus On The Consumer

Consumers have become digital customers. Boundaries between markets have blurred.

Competitors are no longer the same and come from different markets.

In the era of the digital customer, focusing on your customers is more important than any other strategic priority.

https://strategyzer.com

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The Approach

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HOW?

Customer Happiness

You need your customers more than they need you.

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Six Business Disciplines

To get the Customer Experience started in any organization:

(1) Define the strategy

(2) Know the customers

(3) Design the experience

(4) Measure the progress

(5) Define the governance

(6) Create the culture

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A Possible Roadmap To Get Started

Work with all censhare relevant stakeholders to craft a gradual approach:

(1) Assess the current CX level

(2) Define the CX strategy

(3) Dedicate resources and people to CX initiatives

(4) Ensure cross-functional integration of all CX efforts

(5) Identify the first project and prove its benefits

(6) Make it a case study and share the findings with the ecosystem

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Key Questions About CX

What’s the CX you are trying to deliver?

What are the emotions you are trying to evoke with your CX?

Is your CX deliberate?

Are there emotional connections urging customers to want to repeat the experience?

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An Actionable Approach

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MAINTAIN

USE RECEIVENEEDRESEARCH

SELECT

PURCHASE RECOMMEND

EXPECTATION

PROMISE

REALITY

DELIVERYEVALUATION

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1

2

5

7

8

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Oracle’s journey map

Maps

Exploring the correlations between the journey map and all the touchpoints

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Profiles

Personify the customers to better provide real value at each touchpoint (brand, service, company)

Listening to customers, employees, partners involving them in the the personas identification process

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Experience As Engagement

Build a compelling story which provides value at each touchpoint shows your competence, commitment, generosity and it inspires

positive values such as trust, reliability, authenticity.

Image credits: Robin Good (http://www.robingood.com)26

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The Profile

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WHO?

Customer Happiness

No good marketing solution can fix a customer experience that sucks.

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Consolidated Positions

The Chief Marketing Officer position didn’t exist before the ‘50s.

The Chief Information Officer position didn’t exist before the ‘70s.

Today a company without these positions is simply unthinkable.

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New Positions

In the age of the customer, it’s time for companies to have their Chief Customer Happiness Officer.

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Building Business Relevance

The CCHO helps create engaging experiences and tell a relevant story to customers.

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Connecting The Dots

The CCHO helps connect the dots between all current efforts to care about customers.

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Accenture Customer Research, 2015

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Conclusion

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Customer Happiness

CX needs to be guided, not simply managed.

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CX’s Bottom LineA profitable, sustainable platform which:

• drives loyalty (greater loyalty drives revenues) • drops costs down • involves the company ecosystem • creates a great place to work • has a positive impact on the larger community • allows the company to fulfil the responsibility of building a better

world

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A powerful leverage to build the company’s legacy.

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The Customer Experience approach never underestimates the value of your product or service

whereas

by definition, the product or service driven approach completely ignores the value of Customer Experience

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Thank you