Defining Cem

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Forewordby:

ShaunSmith(UK)

Coauthorof ManagingtheCustomerExperience TurningCustomersintoAdvocates

WrittenbyGCCRMAssociates:

SampsonLee(China)

PaulGreenberg(US)

MarcoDeVeglia(Italy)

PaulK.Ward(US)

RafaelRodriguez(Colombia)

RoKing(US)CandiceNgChee(Singapore)

MeiLinFung(US)

JimSterne(US)

SimonDaisley(UK)

JohnChisholm(US)

JenniferKirkby(UK)

Presentedby

GCCRM

June2006

WhitePaper

Defining


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Contents

AboutUs:.......................................................................................................................................................2

ContactUs: ....................................................................................................................................................2

Contents.........................................................................................................................................................3

ForewordByShaunSmith .....................................................................................................................4

DefiningCEM BySampsonLee...............................................................................................................6

Collaboratinginthe21stCentury:TheEraoftheSocialCustomer ByPaulGreenberg..................9

ThestoryofYemandArm ByMarcoDeVeglia ..................................................................................12

WhatisCustomerExperience?ByPaulK.Ward................................................................................15

WhatisCEM?BacktoBasics! ByRafaelRodriguez ...........................................................................18

FromCRMtoCEM ByRoKing .............................................................................................................20

ManagingTouchpointsforCEMSuccess ByCandiceNgChee ......................................................23

WhatisCustomerExperienceManagement? ByMeiLinFung........................................................26

WhatisCEM? ByJimSterne ..................................................................................................................29

TheCustomerExperienceDontgetlostinSPACE BySimonDaisley..........................................32

WhatisCustomerExperienceManagement? ByJohnChisholm .....................................................32

WhatisCustomerExperienceManagement? ByJenniferKirkby.....................................................38


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Foreword

ByShaunSmith,UK

When

Joe

Wheeler

and

I

wrote

Managing

the

Customer

Experience

turning

customers

into

advocates

in

2001littledidwerealisethatitwouldhelptostimulateaworldwideinterestinCEMthatisgrowingall

the time. For example, a 2005 Forrester survey found that 83% of executives considered customer

experience tobemore important than in thepreviousyear.Thisyear the figure is evenhigher.The

questioniswhyhasCEMbecomesuchanissuefororganisations?

Asmarketsmatureandcustomersbecomemore evermore sophisticated, theavailabilityof suitable

productsandservicesistakenforgranted.Meetingconsumerexpectationsisaprerequisitefordoing

business;thepriceofentry,notthewaytowinandtraditionalmarketingdoesnotprovidetheanswer.

As consumers,wearebombardeddailywithmarketingmessagesall seeking togaina shareofour

attention.Most fail and even thosemessages thatdo capture a fleetingminute of our attention are

usually treated with cynicism because they are simply empty promises that, in many cases, the

organisation fails todeliver.We live inaworldwhere trust isbeingeroded: thinkofEnron; thinkof

Worldcom;thinkofAnderson.Evenifmarketingissuccessfulitwillonlygetyouontotheconsumers

shoppinglist;itcertainlywillnotkeepyouthere.

Technologyisnottheanswereither.DespitethehypeinCRMandtheestimatedexpenditureofUS$46B

onthistechnologyin2003,aGartnerGroupsurvey1 foundthat55%ofCRMsystemsdrivecustomers

awayanddiluteearnings.OneoftheleadingfirmsinCRMsoftwarecamelastinasurveyofcustomer

satisfactionwithtechnologycompaniessoclearlysystemsonlyprovideapartialsolution.2

Thefactisthatinaseaofsameness,customersseekthoseorganisationsthatareclearaboutwhatthey

promiseandthendeliver thisconsistently inawaythat isvaluable to targetcustomers.But isntthis

justcustomerserviceunderanewnameyouask?Theanswerisemphaticallyno.Customerserviceis

usuallywhatanorganisationdoestothecustomer,oftenvia itspeople.Customerexperience iswhat

that customer receives at every touchpoint through processes, products and people. For example,

Amazon.comhasoneofthehighestlevelsofcustomeradvocacyofanyorganisationandyetcustomers

rarely interactwith its people and so itdoesnt provide service in the traditional sense. Southwest

Airlines,thehighlyprofitableUScarrier,hascreatedaloyalfollowingofenthusiasticcustomersbynot

providing inflight catering. It serves to illustrate that those organisations that deliver distinctivecustomerexperiencesgrowfaster,andhavereturnstypicallydoublethoseofcompetitors. 3

Factslikethesehavehelpedtopropelcustomerexperiencetotheforefrontofthemanagementagenda.

AsItraveltheworldspeakingatconferencesandwithclientsonthesubjectIamstruckbyhowmuch

CEM has entered the management lexicon. You only have to read the articles in this paper to

understandthefootholdthatithasgained.Theauthorsallspeakwiththesamepassionforthesubject

yetdefineCEMindifferentwaysandoffervaryingapproaches.

1 BearingPoint2004.

2 GartnerResearchGroup

3 SatmetrixSystems2001


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Hereinliesthechallenge.WhilstIapplaudtheauthorsfortheenthusiasmIdontnecessarilyagreewith

everypointtheymakeand,ofcourse,norshouldIasitisinthedebatethatthebestanswersemerge.

Butwhatitdoesimplythoughisthatwehavesuccessfullysoldtheconcept,whatwenowhavetodois

to

suggest

a

framework

for

business

leaders

wishing

to

create

competitive

advantage.

I

hope

that

my

newbookSee,Feel,Think,Dothepowerofinstinctinbusiness4 willdojustthat.

ShaunSmith iswidely regarded as one of the top business speakers and experts on customer experience and

brand leadership.Over the lastfewyears,hehasbeenakeycatalyst inexpandingmanagementfocusfrom the

tacticalissuesofcustomerservicetothemuchwiderandstrategicissueofcustomerexperience.Hehasdeveloped

some of the latest thinking andpractice around this subject,focusing inparticular on how organisations can

achievebranddifferentiationandlongtermcustomerloyaltythroughthecustomerexperience.ShaunSmithisanestablished

authoronthesubjectandisahighlydynamicbusinessspeaker,regularlysoughtafterbyorganisationsworldwide.

4 See,Feel,Think,DothepowerofinstinctinbusinessShaunSmithandAndyMilligan.MarshallCavendish2006


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DefiningCEM

BySampsonLee,China

Lifeisaboutexperiencepersonalorsocial,leisureorbusiness.Thinkaboutthewayyoulive,love,workand play, from daily routines to critical lifeanddeath issues; like it or not, you have towalk through

(experience)themall,daybyday,piecebypiece.

Someexperiencesarecreatedbyyoualone,likethinking.Somearecreatedwithothers,likefallinlove.

Some are outsourced, like happiness atDisneyland.All experiences add up is your life. Time is the

vehicle(tool)todeliverthemeans(experience).Ifyouregardtimeisprecious,experienceispriceless.Your

roleofconsumerwouldnaturallydriveyoutolookforbrandswhocoulddeliver feelgoodexperiences,

notjustfortimesavingandconvenience.

CEM isaboutPerception.Asamarketer, ifweknowconsumersare looking forfeelgoodexperiences,

howcanwecreateandevenclonethem?Whenandwhereatwhatfrequency? Satisfactionisnolonger

areliablemetric1.Listentothevoiceofcustomerviainterviews,surveys,focusgroups,observations,orthe

adoptionofadvanceddevicesuchasRFID2 mayhelpdiscoveringmore,butallofthesemethodsaretrying

togetpeoplesdeepinsidefeeling(mind)viaoutsideexpression.Butwhatifconsumersdonttell(express)

theirtruefeelings,orevenwhentheythemselvesarenotsosureabout?

Believe it or not, consumers make most of thebuying decisions subconsciously. Nobel Prizewinning

psychologistDanielKahnemansaidwecouldonlyremembertwothingsfromourexperiences:howwefeel

at peak (best or worst) and at end. These memories direct our next buying decisions; whereas theproportionanddurationofpleasure/painthroughoutthewholeexperienceprocessdoesalmostnothing

onourmemories,thusperceptions.

Feelgood isaperception.Youperceiveeverything throughyour fivesenses:sight,hearing,smell, taste

andtouch.Foranormalperceptionprocess,youhavetosendthefivesensesmessagestoyourbrain,then

mind.Thereisamissinglinkbetweenfromwhatconsumersperceivetotheirultimatebehaviourswhat

goesoninsidethemind?UsingZMET3,andneuromarketingstudyofhowbraingivesrisetothemind,

applyingneurosciencetechniqueslikefMRI4,aresampleeffortsworkingalongthisdirection.

1 TheOneNumberYouNeedtoGrowFrederickF.Reichheld.HarvardBusinessReviewDecember2003.

2ACNielsensConsumerInsightinMay2006predictsRetailin2010:RFIDwillbewidelyappliedtotrackinstoreshopping

patterns,stockmerchandise,andmeasureconsumption.

3ZMET ZaltmanMetaphorElicitationMethod,foundedbyHarvardprofessorGeraldZaltmanin90s,combinesneurobiology,

psychoanalysis,linguistics,andarttheorytouncoverconsumerpreferences.

4fMRIfunctionalMagneticResonanceImagingmachine,whichtracksbloodflowtodifferentregionsofthebrain.


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CEMisaboutProcess.Processreferstotheentireexperiencethatconsumers

interact with the company throughout the whole customer cycle, from Prepurchase /consumption,

Atpurchase to Postpurchase, via multichannel touchpoints. This may include retail (instore), call,

Internet,facetoface,advertising,directmails,publicrelations,etc.Thesetouchpointexperiences,together

with

product

experiences,

would

echo

the

two

MOTs

(moments

of

truth):

when

you

buy,

when

you

use.

One of the challenges (and opportunities) ofCEM is todeliver an aggregate and complete endtoend

experience, not just a single touchpoint, transaction or product experience. For vacation resort, the

endtoend experiencemay take severalweeks.Forcredit card, itmaybeyears.ForPC itmaybe three

years, ormore.Nomatterwhich industries youre in andwhat products or services you provide, the

capability to deliver consistent and valuable endtoend experience to consumers will dictate your

competitivepositioning.

Anotherchallenge (andopportunity) is tococreate theseexperiences togetherwithyouremployeesand

consumers.ThebookreviewsatAmazon.com,thefunexperiencesonSouthwestplane,thethirdliving

place environment at Starbucks are good examples. Companies could design the framework and

infrastructure,butemployeesandconsumersaretheoneswhotaketheplay!TobesuccessinCEM,itmust

be engaging.Youwill feel different (most of the time isbetter)when youre engaged. To engage your

consumers,firstyouvetoengageyourstaff.Itsnotwhatweexperiencebuthowweexperience.Engaging

isthekeyword.

CEMisaboutBrand.ThisisthemissingpieceinthebroadwordofCRM.Brandisnotbuiltbyadvertising.

Brand istheperceptionsonaggregateexperiencesofyourcustomers(andpublic)acrossalltouchpoints.

CEM is not effective unless it isbranded. Branded customer experience is to amplify yourbrand via

intentionalandconsistentdeliveryofonbrandexperiencesacrossalltouchpoints.

Only when yourebranded, you could differentiate. Only when youre differentiated, you could have

loyalty. There are three elements required for branded customer experience: the peak & end (most

memorable)experiences,brandvaluesandconsumerneeds.Tooptimizethebrandedexperience,youhave

todeliveryourmostuniquebrandvaluesandmeet (exceed) themostcriticalneedsandexpectationsof

yourtargetcustomersbypeak&endexperiences.

The challenge of customer service nowadays is good service is not enough, you need differentiated

(branded) service. The experiencebased differentiation allows you to control the definition of goodexperienceorservice,directandeducate theexpectationsofyour targetcustomers.Youdefineyourown

standards.Youcreateyourownblueoceanwithuniquebrandedcustomerexperience.Youescapefromthe

redoceanoftryingtopleaseyourcustomerswiththestandardsbeingsetandmanipulatedbyothers.Then

youcanimprovebrandequity(valuesofyourbrand)andcustomerequity(valuesoutofeachcustomer).

Managingyourtargetcustomersperceptionsacrosstheentireexperienceprocesstooptimizebrandand

customerequitiesismyanswerindefiningCEM.


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SampsonLeefoundedGCCRMin2001andcofoundedThe3CMethod(ChinaCustomerCare)in2002.GCCRM

isanindependentCRMevaluationorganization.Throughevaluation,enhancementandbenchmarkwithbestpractices,

GCCRMhelpstoroadmaporganizationsCRM.Sampsonprovidestrainingandconsultingtofirsttiermultinational

companiesand leadingconglomerates inGreaterChinaregion includingLenovoGroup,Kodak,FedEx,Bertelsmann

Group,Wyeth,SiemensMobileCommunications.HespeaksformanyCLevelForumsandeventsonthetopicsofCRMEvaluation

andBenchmarkingandalsoBestCRMPractice inChina.SampsonistheVisitingLectureroftheHKUniversitymasterdegree

program(customerrelationshipmanagementmodule).


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Collaborating in the 21st Century: The Era of the Social

CustomerByPaulGreenberg,US

Okay,soitseemssoobvious.Ifyourcustomerlikesyou,theywillwanttostaywithyouandhopefully,tell

othersthattheylikeyou.Butthen,howdoyougetthatcustomertolikeyou?Youdontknowhimorher

personally.Youdonthaveall themoney in theworld toattend toeveryneed thateverycustomerhas

after all youhave thousands andmaybe evenmillions of customers. Sheerbulkmakes the problem of

gettingyourcustomers to likeyouorkeeping them likingyouamajor issue.Notonly that,youhave to

figureouthowyoucantellthattheylikeyouwithoutwaitingtoseethesalesfiguresbecauseiftheyare

declining,its

too

late

somehow

they

DONT

like

you

at

that

point.

Yet,

at

the

same

time,

you

only

have

so

many employeeswho can engage in making sure the customers are happybecause you have limited

budgets and overhead is expensive and youmight even have shareholderswho view the customers as

simplytransitoryassets,notpeopleandthusarelookingtoseewhattheycansqueezefromthecustomer

andthatcanconflictwithwhatthecustomerwants.

Well,whataboutcustomersatisfactionsurveys?Canttheyhelp?No.Customersatisfactionisincreasingly

beingseenforthenearlyuselessmetricitisbecauseitsamomentarysnapshotthatdoesntapplytothe

newbreedofcustomerthatdemandssomuchmorethantheyusedto.MichaelDeSanto,VicePresidentat

Walker Information,a leadingbusinesssurveyandmetrics firmsaid inarecentarticle inSciTech today,

Thereiszerocorrelationbetweencustomersatisfactionandfinancialperformance.Thatswhyweshifted

ourresearchfromcustomersatisfactiontocustomerloyalty.

Thatalone,amongotheranecdotalandresearchevidence,indicateswhatthenewcustomerisdemanding.

Theyareno longercomfortablewithjustgoodproductsand services; theyaredemanding transparency

and collaborationwith the companies thatproduce theseproducts and services.Notjust so thatbetter

products and services arebeing producedbut so that experiencesbecome part of the offering of the

company.Theseexperiencescancostmoney,theycanbeatapremium,buttheyhavetobethere.Thisnew

breedofcustomerunderstandsthattheyaretheonesempoweredandthattheyhavetheembeddedvalue.

Thevalue

no

longer

resides

with

the

products,

services

or

company.

Martha Rogers and Don Peppers in their recent groundbreakingwork, Return onCustomer put it

rathersuccinctly,Repeatafterus:Theonlyvalueyourcompanywillevercreate is thevalue thatcomes

fromcustomerstheonesyouhavenow,andtheonesyouwillhaveinthefuture.

Whatdoesthatmeanforcustomers?First,itmeansthatthecustomers,demanding,volatile,fullyawareof

theirchoices,havetheleveragetomakenonnegotiabledemandsonbusinesses.Theyunderstandthatwith

the improvements in the global supply chain, the increases in the availability of similar products and

servicesandwiththebakedinefficienciesandcomfortthatecommerceprovides,thecostofchangingfrom

onecompanytoanotherislowerthanever.TheyalsounderstandthattheInternetgivesthemanotherpoint

ofleveragethattheycanenjoybecausetheyare,andlistencloselytothisphrase,socialcustomers.


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What are social customers? They are customerswho get it. They know that they live in the customer

ecosystemandthattheyhavepeeraccesseasilysothattheycantakeadvantageofthevastknowledgebase

ofothercustomerswhohavesimilarinterestsandideasandtheycancreatebuzzpositivelyornegatively

in

a

heartbeat.

For

example,

when

the

Buzzmachine

blog

commented

on

lousy

customer

service

from

Dell,

this impactedDell almost asmuch as themainstreammediadid.At onepoint a fewmonths after the

BuzzmachinecalleditDellHell,therewereover2millionreferencestoit inGoogle,thoughthatsnow

cooledconsiderablyayearlater.

Butthesocialcustomersknowtheirleverageandpower.Theyknowthattheycanfindreviewsofproducts

andservices, theyknow thatglobaldeliverysystemshavereacheda levelofeffectiveness thatmake the

delivery time from country to country less of a factor than it oncewas and they know theyhaveboth

knowledgeofandachoiceaboutanygivencompanytheywanttomakeadecisionon.

So what does that mean for companies? Since the social customer is now in place and has these

nonnegotiableideasofwhattheywante.g.visibilityintothecompany,collaborationwiththecompany

andahighlypersonalizedexperiencewiththecompanythecompanyhastogiveittothem.

Period.

For a company to survive in the eraof the social customer, itnotonlyhas to recognize that its current

businesslogicismostlikelybroken,butthatnewbusinessmodelsarenecessarytoreachoutandworkwith

thatcustomer.

For example, in the PC/video game world, worth $26 billion U.S. in 2005, and, according to

PricewaterhouseCoopers,$54billionU.S.in2009,theyhavetheprototypeofthenewbusinessmodel.The

companynotonlyproducesthegamesthattheircustomersbuy,butreleasethesourcecodeandatoolsetso

that thecustomercanworkwithothergamersonlineand inperson tomodify thegame to thepersonal

satisfactionoftheindividualgamers.Thereareonlinecommunitiesdevotedtothesemodificationsaswell

asannualconferencesheldby thegamecompanies todiscuss thenewdirections for thegameswith the

gamers.Thecompanyprovidesauthoringtoolssothatthegraphicsandeventhecodecanbemodifiedto

develop entirelynewways toplay thegame.CheckoutValveSoftwares releaseof theirSource engine

whichhasbeenthefoundationforentirelysuccessfulgamingexperiencesandevenentirelynewversions

oftheirsignaturegameHalfLife2.

Collaboration with the customer. Company as producer and aggregator. Transparency between the

customer and company.This creates the kind of experience that a customerwants and loves and for a

business,createsanadvocateforlife.

Thatsoundsgood,doesntit?Ifitdoes,thenstartlookingatyourownbusinesslogicandmodelandbegin

thechangesnow.Thesocialcustomerisheretostay.Theonlyissueisifyourbusinessstayswiththem.


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PaulGreenbergInadditiontobeingtheauthorofthebestsellingCRMattheSpeedofLight:EssentialCustomer

Strategiesfor the 21st Century, Paul Greenberg is President of The 56 Group, LLC, an enterprise applications

consultingservicesfirm,focusedonCRMstrategicservicesandChiefCustomerOfficerofBPTPartners,LLC, the

U.S.sleadingCRMtrainingorganization.HeisconsideredoneofCRMsleadingauthoritiesonstrategy,andisthe

cochairmanofthenewlycreatedCRMResearchCenteratRutgersUniversityandistheExecutiveViceandPresidentoftheCRM

Association,U.S.


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ThestoryofYemandArm

ByMarcoDeVeglia,Italy

Onceuponatime,thereweretwomen,whosoldapples.One,whowascalledYemwasveryproudofhisapples.InhisAppleHeavenshop,helovedtoputtheminstacksofdifferentheightsandshapes,heliked

tomixdifferenttypesofapplesanddifferentcolorsandsmells,sothathisclientslovedtostopathislittle

shopandhaveadelightfulappleexperience.

Theotherman,whowascalledArmdidntfocusmuchonhowhisappleslooked.InhisAppleConnection

shop, hemostly left them inboxes or in huge stacks he kept in thewarehouse on theback.He never

botheredtomixcolorsandtypeofapples.However,heknewhisclientsbynameandalwaysofferedthem

theirpreferredapples.Itwasatrueapplerelationship.

YemandArmweregoodfriends;theydidntfeelthemselvesascompetitors.Ithatitsimportanthowmy

apples lookso they lovetoshopatmystoreYemused to tellhis friend.I think its important toknow

whatmyclientslike,soIgivethemtherightapplewhentheyneedit.

And the fact is,bothhaddelightedclients.ClientsofYem, lovedto lookat theapples, lovedtoweighta

Starkintheirhandinordertofeeltheappleishshape,ortosmellaperfumedMcintosh,oroccasionallyto

tasteaSayakawhoYemhadslicedforclientstotry.

ClientsofArm,onthecontrary,didntbotherthathisshoplookednotquiteasinterestingastheotherapple

store.Theysimply loved thatArmknew theirname, theirpreferredapplesand thathealmostmagicallyknewhowtoletthemtrynewapplestheyusuallyliked.

One day, in their town, a huge Applemart opened. It stocked more apples than the two little shops

combined:infact,moreapplesthanYemandArmeverknewexistorhaveseen.Theywereappleexperts,

buttheguysatApplemartwereexpertstooandtheyhadtheresourcestofindthebestapplesintheWorld,

andofferthematthebestpricetocustomers.

No, theydidntcareaboutdisplaying themartisticshapesorpolish themorcareaboutwhatapple their

customersliked.Theydidntknowtheircustomersatall,buttheyweregreatatmovinghugequantityof

applesthroughtheirbigApplemartstore.

YemstartedcomplainingThoseguysdontloveappleslikeIdo.AndmyclientsloveappleslikeIdo,they

willkeepcoming.ArmwasmoreconcernedaboutthepriceofapplesatApplemart,becausesometimes

theysellforlessthanthepricehecouldbuywholesale.However,heknewthattheirclienttookthetimeto

extablisharelationshipwithhim,tookthetimetoteachhimaboutwhatthey likedordislikedsothathe

knewhowtosatisfytheirappleneeds.

And,infact,ArmclientskeptcomingalmostlikethehugeApplemartdidntexist.Helostsomeclients,but

theywere

the

ones

he

had

seem

rarely,

the

ones

that

didnt

like

to

try

new

apple

flavors,

the

ones

who

liked

alsopears,peachesandbananas.


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Yemclientskeptcoming too tohiswonderfulshop.Thatshopwasreallya

placetospendsometime,atleastforapplelovers.Theystillpaidvisitstotheshops,tastedthenewapples

ondemo,weighted theRedDeliciousandsmelledtheparfumedFuji.However, theystartedbuying less.

Theexperiencewasstilltops,buttheyboughtless.Orworse:theyenjoyedtheexperienceatAppleHeaven

and

then

bought

at

Applemart.

Ontheotherhand,Armstartedtoofferanautomaticapplereplenishmentservice,sothatcustomersdidnt

needeventogotohisshop,theygottheappledeliveredautomatically,withtherighttype,quantityand

frequence.Customers loved that service and they spread theword.Andword ofmouth reachedYems

clientstoo,whodidntliketheratherbasicAppleConnectionstoreandusedtovisitAppleHeaven.

Slowly,someofYemsclientsstartedmigrating toArmsstoreandwordofmouthkept spreadingabout

howgreatwastohavetherightapplewhentheywantedit.Admittedly,sometimesallapplecustomersjust

shoppedatApplemart,becauseitwasconvenient,andithadgreatsales(theysoldataloss,buttheywould

makeitinvolume).

Yemkeptimprovinghisstoreexperience;headdedbooksaboutapples,applepies,applecandiesandeven

atriptoApplelandforrealapplelovers.Andsomeofhisclientswerereallydelighted,butattheendofthe

day,while theexperiencewasgreat, theyhavemanyother things todo thanvisitAppleHeaven.Yems

businesswasstruggling.

So,oneday,YemapproachedArmandaskedifhewantedtobuyhisshop.Hecouldsoofferatrueapple

experiencetohiscustomers,whoappearedtobesoloyaltoAppleConnection.Armsawthedeal,healways

likedwhatYemdidjusthelikedmoretofocusonbuildingacustomerrelationshipanddatabase.ButArm

knewthatonlyYemcouldbeabletokeepAppleHeaventhetrueappleheavenitwas,sohehiredYemas

customerexperiencedirectorforbothshops.Armswouldhavekeptfocusingoncustomerrelationshipand

togetherthetwowouldhavebeenaformidablecompetitorformuchbiggerApplemart.

Andsotheydid.AndArmsAppleConnectionclientsstartedenjoyingthemagiccustomerexperiencethat

Yem provided, while Apple Heaven customers would enjoy the personalized service that made Arm

successful.ThetwoshopswererechristenedAppleLifeandthe lastnewswehad is theyaredoinggreat,

expandingtheirchainthroughtheircountry.

Customer Experience is very important for todays sophisticated customers.But if youdontdevelop aworkingCustomerRelationship,customerexperiencewonthelpyoucompetewiththepriceguys.Always

rememberyouarenotinbusinesstodelightcustomers.Youareinbusinesstobedelightedbythem.


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MarcoDeVegliahasworkedinmarketingcommunicationssince1990.HehasbeenHeadofStrategyforthe

interactiveagencyofDArcyGroupandHeadofCRMforLeoBurnett.HeisalsopartnerinTrout&Partners,the

internationalnetworkofmarketingstrategyconsultants.In2005helaunchedCRMforMarketersthatisfocusedon

helpingmarketersmakingsenseofCRMissuesandintegrateitintraditionalmarketing.CRMforMarketersspeaksto

marketerswiththeirlanguageaboutCRM,helpingthem tofocusonthereallyimportantthingsamongthelotofjargonand

technologicalissuesthatpermeatesCRM.NominatedTheCuttingThroughtheChaseCRMWriter,MarcoDeVeglialikesto

writearticlesaboutCRMandmarketingwithacontrarianview.http://www.crmformarketers.com


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WhatistheCustomerExperience?

ByPaulK.Ward,US

Everyone

may

feel

as

though

they

understand

the

phrase

customer

experience.

But

feeling

this

way

is

not

enough.Thebiggestchallengemoderncompaniesfaceisfiguringoutwhattomeasureandmanagetogain

strategicadvantage.Nowthatcustomercentricityisthefashionthankstotopperformingcompaniessuch

asDell,Amazon,GeneralElectric,andStarbucks,itistakenforgrantedthatcustomercentricitycancreate

strategicadvantage.

Understanding the customer experience is the next step in the evolution of customercentricity.Just as

customer relationshipmanagement (CRM),donewrong, is awaste of shareholdermoney and actually

destroys customer valuebybeing overly transactional andwalletsharedriven,CEM,donewrong,will

seemforcedatbest,andwillbeanightmarefinanciallyandorganizationallyformanycompaniesatworst.

Nevertheless, you have to know about CEM tobe competitive in the new economy,because the new

economyisinfactaboutattractingandkeepingthebestcustomersbygettingashareoftheirheart.Part

ofthecreativeaspectofbeingagreatcompanyistounderstandthecustomerexperienceandtofindnew

waysofmodelingitandexploitingittocreategreatervaluethanyourcompetitorscan.

First, keep in mind that you care as much about prospects as customers. In fact, my colleague Rich

Harwood,founderoftheHarwoodInstitute,wouldsaythattheyrealljustpeople.Thefactthatapersonis

aprospectoracustomer isreallymeasuredonlybywhethertheyvetransactedbusinesswithyou.So, in

definingthecustomerexperience,wemustbemindfulthatourgoalistocreateanexperienceforaperson.

Infact,ourgoalistocreateexperiencesformultiplekindsofpeoplenotallpeoplewillinteractwithyou

in the samechannel,norwill theyhave thesameexpectations fromeachchannel.But theywillhavean

overallexpectationaboutthequalityofexperiencetheywantfromyou,fromagivenchannel,andacrossall

channels.So,whilesomepartsofthepersonsexperiencemaydifferbychannel,heorshewillcometoyou

withanexpectation.

Iftheyhaveno informationaboutyou inthefirstplace,theywillsettheirexpectationsaccordingtoyour

competitors established customer experience and brand expectations. If a person comes to you with

knowledgeofyourcompany,youhave tomeetorexceed theirexpectations tomaintainor improveyourbrandequity.

People may want to (or need to) experience your company through multiple channels. But dont be

company centric here. You must also understanding how people want to (or need to) experience

informationaboutyourcompanythatmaybegeneratedoutsideofyourcompany,repeatedandorganized

by third parties, and absorbedby people longbefore they ever experience even one of your channels.

Publishersdont get to control the onlinewordofmouth (OWOM) systems onAmazon.Manufacturers

cannotcontroltheOWOMonePinions.Andpeopletalkaroundthewatercoolerallthetime,observeiPods

constantly,andunconsciouslyadapttochangingstyles inclothesandcarswithoutyour interventionor

control.


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And, to complicate matters, the order in which people experience your

companycanmatter.Ifyouhaveagreatwebsitebutaterribleincomingcallcenter,youhopethatpeople

willexperienceyourwebsitefirst.Buttheymaynot.

So,

what

is

the

customer

experience?

Mydefinition is that thecustomerexperience is theprovisionaldispositionapersonhasaboutyourcompany

based on all the information in his or her environment, and their interactions with you and your

competitors,plustheirreflectionsonwhatthismeanstothem.

Mydefinitionacknowledges thatweareon thecuspofanewkindofeconomy:one that is transitioning

from an information economy (postindustrial, founded on information and knowledge sharing via

computer technology) and a digital network economy (postinformation, founded on the ability for all

playerstoactonandimproveknowledgeandprocessoutputs).

Thisiswhythecustomerexperienceisaninteraction(bothyouandthecustomerareplayers),andwhyyou

mustenable interactionssotheycan improve.That is, ifcustomerexperiencesarewhatyouwanttomanage,

they must reveal actionable information to you (and probably to the customer). If you dont manage

customerexperiencesthisway,yourestuck in the informationageat thevery leastandperhaps in the

industrialageatworst,wheremarketingandpublicrelationswereallbroadcastfromthetopdown.

The disposition canbe an opinion (rational or not), a feeling (by definition nonrational), or even an

undecidedstate.Because thedisposition isprovisional, thepersonmaychange theirdisposition towards

yourcompany. Thisisyouropportunityandyourrisk.

Noticethattheexperiencebeingdefinedasaprovisionaldispositionmeansessentiallythatyourcompanys

value is notmeasuredmerelyby a customers latest experience. If that latest experience is terrible, or

fantastic,thecustomerwillassessitwithinthecontextofhisorherpastexperienceswithyou,withyour

competitors, and with companies offering substitute products. Notice, then, that neither your internal

resources nor yourmarket position represent asmuch of a competitive advantage as the value of the

customerexperiencesthatyouprovide.Customerexperiencesarethemostvisiblepartofyourcorporate

capabilities.Youcanriseandfallonthem.

Within thisdefinition,wecanplaceavarietyofmarketingandoperationaldisciplines,suchasbranding,public relations, advertising, buzz marketing, product and service development, customer value

management,customerrelationshipmanagement,andmuchmore.Thegoodnewsisthatresearch,product

optionsandindustryexperienceaboundsineachoftheseareas.


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PaulWardsroleasstrategyadvisortocorporateandnonprofitexecutivesbringshisbusinessmanagementandWeb

servicesconsultingtoclientsinternationallyandacrosstheUnitedStates.Heiscurrentlydevelopingbusinessand

servingclientsinRussia,China,France,theUKandMalaysia,aswellasintheUnitedStatesandMexico.Asauthor

ofkeystrategicmethodologiesthatlinkoperations,financeandmarketing,hetakesseriouslythepursuitofbest

practicesbackedupbyexperienceandresearch.Paullecturesandwritesregularcolumnsonbranding,marketingandstrategy,

withrecentarticlesappearingonglobalmarketingandfinancialstrategiesforglobalizingcompanies.Heisarecognizedauthority

onCustomerRelationshipManagement(CRM)andPerceivedCustomerValue(PCV)andisdoingresearchontheintersection

betweenCustomerExperienceManagement(CEM)andbranding.PaulisamemberoftheAmericanSocietyofAssociation

ExecutivesandisamanagingmemberofASAEsInternationalSectionCouncil.HeisalsoamemberoftheWorldAffairsCouncil.

HeiscurrentlypursuinghisglobalexecutiveMBAwithTRIUM,ajointdegreeprogramconferredbytheLondonSchoolof

Economics,theHECSchoolofManagementParisandNYUSternSchoolofBusiness.HeistheVicePresidentofSponsorship

fortheCustomerRelationshipManagementAssociationofAmericaandiscodirectoroftheWashingtonDCchapterofthe

HECParisalumniassociation.Helovesbiking,traveling,cooking,writingandreading,allofwhichhejoyfullyshareswithhis

wifeAngela.


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WhatisCEM?BacktoBasics!

ByRafaelRodriguez,Colombia

Isntitwhatmarketing,salesandservicehasbeenandISallabout?.EversincePeterDuckersConceptoftheCorporation, to Set Godins PermissionMarketing and most recently Fredericks Reinholds The Ultimate

Question, the issuehasalwaysbeen thesame:havingravingcustomers thatwould fall in lovewithour

productorservice,andwouldrecommendustotheirfriends.

Wemaywant to call itCEM,orCRM,or 1to1,orwhatever. Itjustmeansnurturingand caring forour

prospectsandcustomer thesamewaywecareforourselvesandguaranteeingour investorsanattractive

ROI (returnon investment)whichcomesfromROC (returnoncustomerasdefinedbyPepper&Rogers)

which grows only if the experience our customershavemake them truly advocates of ourproducts or

services.CEMitsnothingmorethandeliveringwhatourcustomersexpectustoandalittlebitmore ,

making them feel great at every moment of true,whether it is at ourbrick&mortar store, orwhen

assistedby theCSRsor IVR atourContactCenters, orwhen theyplace anorder through ourwebsite,

attend and listen to an illustrativewebminar, videocast, or podcast from our company.CEM practices

shouldberighttherewhencustomersreceiveapromotionalemail,are invitedtoparticipate inasurvey,

watchaTVad,orpaytheirbills.Itencompasseshowwemanage,advertiseandpositionourbrand,how

wepackourproducts,howrewardingourloyaltyprogramis,howweprovidewarrantyandservice,and

howwetakeadvantageoftodayscollaborativetechnologytoconstantlyinnovateandbeonestepaheadof

ourcompetitors.

Tomorethanafew,CEMjustpicksupwhereCRMstopped,notbecauseCRMwasmeanttohavelimits,butbecauseforwhateverreasons,companies,marketers,CxOs,consultants,companies,suppliers,andTI

departmentshavecreatedboundaries that shouldhavenotbeen there tobeginwith.Butweallknowa

plenitudeofexamplesfromcompanies,bigandsmall,thatforyearshavebeenprovidingaconsistentand

superb experience to their customers. Not only Disney, Starbucks, Harley Davidson, Abu Dhabis

MillenniumHotel,CirqueduSoleil,havemasteredtheprinciplesoftheexperiencebusiness.InChinaas

wellasinColombia,intheUSaswellasinSouthAfrica,allaroundtheworldthereareplentyofexamples

of successful entrepreneurs thathavea long traditionofprovidingunique and exclusive experiences to

theircustomers.

In service industries,whichhavepioneered the customer experiencewave, itmaybe somewhat easier to

accomplish than inmanufacturing.However inboth cases, aswell as in government andnonprofits, it

alwaystakesalotofcreativity,reimaginingandagreatdoseofpassiontoconvertourproductandservice

intoanexperienceourcustomersdiscover,wantmoreofit,arewillingtopayforandtospreadtheword

aroundbecomingtrueviralmarketingagents,buildersofacult.

Forhotels,spas,restaurants,concerthalls,amusementparks,casinos,etc,thedecision iseasier.Thefiner

theexperienceprovided,thehigherthepricecustomershavetopayandthusresourcesaremadeavailable

toofferexquisiteanddiverseexperiences.Thismayalsobetrueforsometoplevellinesofproducts:Ferrari,

Swarosky,Channel,

Bang

&

Olufsen

But

where

it

becomes

amajor

challenge

is

when

we

have

to

prevent

thecommoditizationofourproduct/servicefightingoutway into todayscustomerheartcompetingwith

notsodifferentandsimilarlypricedproductsandservicesbasedonacleardifferentiation.Hereiswhere


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innovation comes into play and makes Oral B toothbrush different from

others.Orelse,howDELL,Blackberry,JetBlue,WallMart,Evian,DaVinceCode,andmanyothershave

donetoconquerthemindsoftheircustomersandachieveoutstandingsalesperformances?.

How

do

we

get

there

and

stay

there?

CRM

has

had

the

answer

but

concentration

on

technology

and

its

complexitieshasmadeusoverlookit.DoesntCRMpreachcustomercentricity?.DoesntCRMrequirefora

uniquevalueproposition,overtbenefits, thatwillenchantcustomers,givethemreasonstobelieveinus

andmake them loyal,hoping that theywillbuymore, recommendusandmakeusbottom linehappy?.

DoesntCRMproposecustomerfocusedprocessestoproperlynurtureleadsandprospects,andtodevelop

and grow customers and noncustomers by means of structuring dramatic differences that make our

competition irrelevant?Nomatter howwedecide to view and plan our customer processes (selection,

acquisition, retention and grow, or in the terms of Peppers & Rogers identify, segment, interact and

customize), theendresultshouldaimatmonopolizingaparticularexperienceourcustomershunt for.

Andfinally,doesntCRMrequirethatbeforemanagingtherelationshipswithyourcustomers,companies

should firstdevelop internal advocates, committed and highly trained and skilled personnelwith the

appropriatetoolsandfeedbackmechanismsandmostimportant,therightattitude?.

Theaboverequire, insomecases,anewsetofwellbalanced indicators,mostlylead indicatorsandafew

lagmetricsalongsomebasicperspectives,forexamplethosewithinthetraditionalbodyofknowledgeof

the Balanced Scorecard discipline (financial, customer, process, learning & growth). Metrics that

concentratenotonlyonwhatcompaniesaretryingtolearnaboutcustomersbutratherheavilyfocusedon

theothersideoftheequation:whatcustomersarelearningaboutthecompanyandwhataretherootcauses

thatdriveit?.

IpersonallyhavenoproblemcallingCRM,CEM,orGMSS(forGreatMarketing,SalesandService),or

CRM 2.0 (as CEM is closely related the principles underlying Web 2.0). CEM as describedby many

practitioners is like a sort ofCRM climax thatboth, companies and customers seek for.CRM,CEM or

whatever, itsamatterofunderstandingand livingourcustomersrealitywhichusuallyisquitedifferent

fromours,andadaptingourstotheirs. Verybasicstuff!Easytosayanddescribeandeventoplan,butnot

sotoexecute.Ifitwasthateasy,Googlewouldonlybeonemoreamongthehandfulofsearchenginesand

AmazonanotherunnoticedB2Csite.

RafaelRodriguezisabusinessandatechnologyexecutivewithextensiveexperienceinleadingpeople,projectteams

and businesses. He began his consulting career after 25 years of work in the Media, Telecommunications,

Commercial,International and Public sectors where he held importantmanagerial and technicalpositions. Rafael

combines his management expertise with a deep knowledge and understanding of technology derived from his

leadershiprolesinimplementingSAP,JDEdwards,OracleFinancials,SalesLogixandmanyothersolutions.


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FromCRMtoCEM

ByRoKing,US

In 2000, I started teachingCustomerRelationshipManagement atNewYorkUniversity. Idivided thecourseintothreesections: Systems,ProcessesandPeople. Ourclasswasfocusedontheinsideofeach

organizationandhowthesystems,processesandpeopleofthefirmworkedtogethertogatherinformation

aboutcustomersandusethatinformationtoprovidevaluetothecustomer. IfIweretodesignthecourse

today,Iwouldmove thediscussionoutsidetheorganizationandspendourclasstimediscoveringhow

customersinteractwiththesystems,processesandpeopleoforganizations.Itisreallythesemanypointsof

interactionbetweenthecustomerandthefirmthatformthecustomerrelationshipinthefirstplace!

MydefinitionofCustomerExperienceManagementflowsfrommyexperiencewithCustomerRelationship

Management. Since our companys founding, Quaero has defined CRM as the systematic use of

informationtoattractandkeepcustomersthroughongoingdialogueforlonglasting,mutuallybeneficial

relationships. We always saw CRM as a business strategy, a way of doing business. So, Customer

ExperienceManagement isnotnewtous, it isthepartof thebusinessstrategyfocusedon thecustomers

interactionswithsystems,processes,peopleandproducts. Everycustomerinteractionmayincludeanevent,an

activityorsimplyaperception. ThevocabularyandmetricsofCEMdiffer from thoseofCRM,but the

outputmaybeconsideredthesameamutuallybeneficialrelationshipbetweenthecustomerandthefirm.

AgoodexampleoftheinteractionbetweenCRMandCEMtookplaceatToysRUsseveralyearsago. At

thetime,ToysRUsemployedaCRMbusinessstrategytheyusedinformationtoprovidevaluefortheir

customers. They had an effective customer database and had some thoughtful analytics surroundingofferstheymadetoparentsandgrandparentswhowereshoppingfortoys. Infact,overarelativelyshort

timeperiod,customerfocusedsystemsandprocesseswereinplaceandmanyofthepeopleinthebusiness

wereverytalented,especiallyanalyticCRMteam. However,thesetalentedpeoplehadabigworrythe

staffinthestore. Itwasnotunlikelythatacustomer,whohadbeenattractedbyanoffermadebasedon

good information,wouldbe frustrated inreceiving thatofferbyanottoowell trained,nottoowellpaid

kidworkingat inthestore. Allthetime,effort,andmoneyspentgettingtheanalyticCRMrightwould

cometonaughtatacrucialmomentwithamisstepinthecustomerinteractionwiththatonepersonatToys

RUs.

DefiningtheExperience

Tobetterunderstandthecustomerexperience,manycompaniesnowmapouthowcustomersinteractwith

their systems,processes,peopleandproducts. Thesecustomerexperiencemaps illustratedetailsof the

interactionandcanbeusedtoexaminerealandidealstatesincustomerinteractions. Theidealstatemay

besimplygettingthe littlethingsright inevery interactionateverypointofthe interaction. Firmsneed

not begin by plotting to offer customers a wow experience something that will be emotionally

memorable. NarasEechambadi,CEOofQuaero,oftentalkstoourclientsaboutgettingthebasicsright.

There is a place forwow,but consistency ismore important, he says. It is about setting customer

expectationsand

then

meeting

them.

It

may

not

be

emotionally

memorable

to

get

the

little

things

right

thefirsttime,andeverytime,butthatiswheremostcompaniesneedtobegin.


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ComparingExperiences

Itisjustasdifficulttodeterminewhatagoodexperiencelookslikeasitistodefineawowexperience

orbest practice. Today, the comparison set that a customer uses to determinewhether he has had a

rewarding

experience

with

your

firm

may

not

match

the

competitive

set

you

monitor.

When

it

comes

to

experiences,youcompetewithcompaniesoutsideyourindustry,outsideyourregionandpossiblyoutside

yourrealmofexperience.

As a hotel customer,when I compare online reservation experiences, I am not comparingMarriott to

Hilton. WhileIsearchforroomavailability,Ithinkaboutthespeedofanairlineswebsite. WhenIwant

tochangemyreservation,Ithinkabouthoweasyitwastomodifymyorderataretailer. WhenIwantto

seehowmanyfrequentguestpointsIhave,Icomparethewebpagelayouttothatofmycreditcardpoints

program. Tryingtounderstandacompetitivelandscapeofthisscopecanbedaunting!

MeasurementandExperiences

CustomerExperienceManagementisnotanewconcept. SinceCEMisnotnew,enoughtimehaspassed

for research to comeoutabout theeffectsofgood experiences. The research resultsarenotnews. As

expected,customerswhohavehadgoodexperiencesaremuchmorelikelytorecommendafriendandto

purchase additional products. Also, customerswho have had negative experiences aremore likely to

complaintofriendsandswitchproductsorproviders. Thereisastronglinkbetweencustomerexperience

andrevenues. However,fromabusinesscaseperspective, theremaynotbeenoughharddata tojustify

investmentintoeitherthecustomerexperienceorthemanagementofit!

CEM is still new enough that appropriatemetrics andmeasurement systemsmay not yetbe in place.

However,thatdoesnotmeanyoushouldwaituntiltheyareinplacetoact. CathyBessant,aQuaeroclient

when shewasChiefMarketingOfficer atBank ofAmerica, thinks aboutmeasurement thisway: It is

important tomeasurewhatyou can,but itwouldbenave anddangerous to focus investmentonlyon

measurable activities while neglecting those that may, in fact, be more effective but not necessarily

measurable.

As industry conversationmoves fromCRM toCEM,begin to step outsideyourorganization toview

interactions from the customers perspective. Think about the little things that you need to get right.

Thinkaboutthebigthingsyouwanttomeasuretobesureyouareontherighttrack. Butmostofalljustthinkaboutyourcustomers.


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RoKing,SeniorAdvisor,QuaeroCorp. AsiaPacific

Rohelpsfirms improvemarketingperformancemanagementbyoptimizing technology choices, improving customer

data use and refiningmarketing approaches. Ros clients include leadingfirms infinancial services, hospitality,

media,retailandpharmaceuticals.

PriortojoiningQuaeroasafoundingpartnerandEVP,ClientServices,shewasSeniorConsultantatTillinghastTowersPerrin,

Principal at Furash&Company, and Senior Vice President at Signet Bank,where she developed and implemented customer

acquisitionandretentionprogramsandconductedcustomerprofitabilityanalyses.

RoearnedherBAatHarvardandherMBAattheDardenSchoolofBusinessatUniversityofVirginia.Sheisaregularcontributor

toindustrypublicationsandanadjunctprofessoratNewYorkUniversitywhereshehastaughtFundamentalsofCRM. Roworks

withfirmsthroughoutAsiafromhercurrenthomeinJakarta,Indonesia.


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ManagingTouchpointsforCEMSuccess

ByCandiceNgChee,Singapore

Do

you

know

what

are

you

doing

exactly

to

your

customers

across

your

enterprise?

Do

you

have

any

idea

whereyourinteractiongapsandopportunitiesarethroughoutyourcustomerscyclestagesandlifecycles?

Areyour interactionswithyourcustomersorchestrated insuchaway tocreatevalue for themandyour

company? Whendoesexperiencestart? Well,Idliketosetyourmindthinkingasyouread.

Inmyopinion,aconsumerexperiencesyouinhismindevenbeforehebecomesyourcustomerwiththe

perception and expectation hebuildsup from your advertising,branding,PR activities. It iswhenhe

decides to choose you to solvehis identifiedneeds that the experience getsmanifested in the form of

tangible,physicalandemotionaltouches.

Veryoften,companiestaketheirtouchpointsforgranted.FromSalestoCallcentre,andInternettoRetail,

DirectMail,Eventsandmostrecently,Mobilephones, theyoftendonot take stockofhoweachof these

touchesareperforminginrelationstotheircustomersneedsandexpectations.Whattheyoftenmeasureis

howeffectivehavetheybeeninmeetingsettargets. Takeforinstance,inthemanagementseagernessto

recouptheinvestmentandminimizedservicecostpercall,theysetmetricsthatmeasurethewrongthings

liketheefficiencyofthetelemarketersinansweringtargetednumberofcallsperday,inpickingupthecalls

within3ringsandsoonsettingoffthemadrushtohurrycustomersoffthelinesothattheycanpickup

thenext. Atelcohas morethanonceputmeontoanautomatedvoicesurveyonhowIwouldratethe

technicalorcustomerserviceIgotthatday enterifyouaresatisfied;ifyouarenotdissatisfied.

NothinghappensafterIrepeatedlyentered2overthelast3years.Needlesstosay,Igaveuponthemonly

to find that elsewhere is doing the same.Ohmine!How is it that such scenario are allowed to keep

repeatingitself?Theattitudeofmostcompaniestoreapallthetimeratherthantosowsometime,hasalot

toexplainforthismisguidedcorporatebehavior.

Tostopfurtherdepletionofvalue,mayIsaytothecustomer:pleaseknowyourrightsandletitbeknown,

youdonothavetolivewithit! Totheenterprise,mayIsaythatifyouthinkyouaredoingokay,please

thinkagain youmayhave shortchangedyourselfoverall theseyears. Perhapsyouhavealsobeena

victimbyallowingthetouchpointstodictatethewaytheyusedtooperatewhenyoushouldhaveinvolved

yourcustomers indefininghowtheyshould ideallybeoperating? Orhaveyouundermined theroleof

touchpoint to thatofa doer rather than looked at its capabilitiesofbeing a thinkeror influencer?Whatever it is,maybe it istimeforyoutofindoutthroughagapanalysisofyourtouchpoints,andsee

howyoumightbemeetingormissingtheneedsandexpectationsofyourcustomers.

Nobodyplans to failbutoften fail toplan.Astrategic CustomerExperienceMapwillhelpusputCEM

intocontext,andorganizethesekeycomponentsintomeaningfulprocesses:

Thecustomermanagementprocessesofselection,acquisition,retentionandgrowth;


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Thecustomersvaluepropositionsareateachstageoftheprocesses.

o IsthevaluetheyareseekingPricerelated?Servicerelated?Specialtyrelated?Relationshiprelated?

Yourinternalvaluepropositions

oSupposed

it

is

Service

related,

how

would

you

demonstrate

that

you

have

got

what

it

takes

to

provide

thatoutstandingservice?

oWhichaspectsoftheserviceattributes,say:accessibility,ontimedeliveryorfriendlinessetc.shouldyou

focusontodifferentiateyourself?

oIsthatattributinganexistingorganizationalcompetencyordoyouhavetobuild/outsourceasameansto

enablingthisinternalvalueproposition?

Touchpointsmanagement

oHowshouldyouoptimizethetouchpointsacrossthecustomermanagementprocesses?

AplannedCEMprocesswouldthenenableustoanticipate,manageandpersonalizetheexperienceforour

customersinamanageable,automated,decisionsupportedmanner.

Yourcustomerexperienceisstillnotdeemedtobeenthrallingifyourtouchpointsarenotengagingyour

customers in a twoway dialogue. To encourage a learning relationship with your customers, your

interactionshavetoberelevant,timelyandtrusted. Asanillustration,ifyouarearetailbankmanaging

thefinancialportfolioofapremierbankingcustomer,makesureyoucommunicatewithhimwiththeright

contentthroughachannelthatisconvenienttohim(relevance);givehimtheconnectivitytotherightpeople

andcommunitiesthatarecapableofprovidingassistanceasandwhentheneedarises(timeliness);provide

customizedcustomercare thatexercisescompassion;andcommit todevelopingcompetencies thatwouldbring

forthconsistencytothecustomerthroughouthislifestageswithyou(trustworthiness).

The fun is just starting. Further drillin calls for differentiation of customer experiences so that the

treatment does not become another stereotype but one that is fluid and personalized. So add the

dimensionsofcustomertypesvalue,lifestages,needsandbusinessrulesintoyourtechniques.

Agenuinerelationship isnotbuiltfrompriceandproduct,butfrom totalvaluecreation. That is, takea

holisticview tounderstanding thepreciseneeds,preferencesandprioritiesof thecustomer~exceedhis

expectationseverytimehecomesintocontactwithyou~toresultinhighperceivedvalueofyouroffering~

andindoingsodifferentiateyourorganizationfromthecompetition~therebyallowyoutocommensurate

thatvalueaddintopremiumpricing~thatleadtoaccomplishmentofmoreprofitsthatarethenreinvestedtobetterservethecustomertimeandagain.

Customer experience is most memorable when a firm understands where to place humanity into the

businesscontext.Productswillcomeandgoandwillsoonbeforgotten.Itisthefeelingyouleavebehind

thatwilloutlastandoutplaytogiveyouthelegendyouhavealwayswishyoucouldleavebehind.


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CandiceNgChee,AConsultant andMarketer byprofession,CandicefoundedMetaCoreAsiawith a team of

likemindedprofessionalsdedicatedtobuildingbestinclasscustomerbasedmarketingstrategiesforcompaniesinAsia.

Shehashadintensivehandsonexperienceintheconceptualization,integrationandmanagementofDatabase,Direct

Marketing, IntegratedMarketingCommunications,LoyaltyMarketing, InternetMarketing,CustomerRelationship

Marketing/Management,andOnetoOneMarketinginitiatives.Shehasbeeninstrumentalincreatingcustomervalueformany

MNCsandFortune500companiesintheFSI,Healthcare,Retail,Hospitality,ServicesandAutomobileverticals.


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WhatisCustomerExperienceManagement?

ByMeiLinFung,US

Deliveringgoodexperienceswillkeepyourcustomershappy.Yet,theneedtoplan,design,organizeandcoordinateactivitiesinordertoenhancetheCustomerExperiencehasbeenlargelyignoreduptonow.Only

now,businessleadersrealizethereareprofitableopportunitiesthatarebeinglostbecauseofpoorcustomer

service.Andthattheycanincreaserevenuebydeliveringgreatcustomerexperiences.

Whenbanksdeliverabadexperience,customerswillwalkaway

MyhusbandandIhadusedthesamebankfor10yearsbeforeIstartedmyownbusiness.ThatswhereI

tried to open mybusiness account. When I tried to open an account for my newbusiness, thebank

representativewasveryunhelpfulandmademefeelshehadnorespectforawomanwhowasstartinga

newbusiness.Duetothatpoorexperience,Iwasangry,upsetanddeterminedtogeteven.Within1week,

wetransferredallourfamilysavingsandcheckingaccountstoanotherbank!

Sincethen,Ihavebeenagoodbankingcustomeratseveralinstitutions! Istartedmyretirementaccount,

myhusbandandrefinancedourhomemortgage,andwehavealsopurchasedstocksandcorporatebonds.

Allof thesehavebeenatother financial institutions.Wouldwehave liked tohaveworkedwithjustone

financialinstitutionifitwaspossible?Yes.

Whohasbeendeliveringmemorablecustomerexperiences foryears? Institutions in thePerformingArts.

Bycarefulobservation,experimentingandresponsiveness to theircustomersneeds, independententitieslikeconcerthalls,restaurantsbuildasynergisticrelationshiptodeliveranexcellentoverallexperiencefor

theircustomers.

DeliveringamemorableExperience:aNightattheSymphony

Im lucky to live inoneof thegreat citiesof theworld, somyhusband and Igo to the classicalmusic

concertsatDaviesSymphonyHallinSanFrancisco.

TheHallisbeautiful,fromtheoutside,whenyouarewalkingtowardit,youseethepeopleinsidethrough

thebigwindows that stretch from floor to ceilingon every floor. In the evening, it isabeaconof light,

spreading warmth to the surrounding sidewalks and streets. All nearby restaurants offer special

preconcertmeal.Theymakesurethatwhateveryouorderwillallowyoutofinishdinnerwithease in

ordertogetinyourseatby8pm.

From the moment you step into Davies Hall, you almost tingle with anticipation. Beautifully dressed

people walk past, talking, laughing as they enjoy the evening. The concertbegins! The orchestra has

practiced foryears for thismoment.Everynote ispreciselyplayed,under thedirectionof theconductor

whobuilds toanemotionalclimax that takes theaudience tonewplaces.Overall theaudience is swept

awayin

cloud

burst

of

delight

and

goes

home

invigorated,

refreshed

and

enriched.

Today, the challenge facing banks and organizations trying to improve Customer Experience feels


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profoundlydifficult,becausesomuchseemsoutofanyonepersonscontrol.

Theretailbranchesareunabletooverseethenationwidebankingcontactcenterwhentheretailbranchs

mostvaluedcustomers call the1800number. Marketingdepartments canonlyurge contact centers to

routecustomerstothosespecialistmostqualifiedtohandletheirneeds,theycannotinsistuponit.

During the Night at the Symphony, different organizations needed to coordinate their activities. Each

business concentratedon their interactionwith the customer andmade sure theyunderstoodhow their

activitiesenhancedtheoveralleveningexperience.

Business can learn from this. Instead of onedepartment trying to control every aspect of a customers

experiencewiththebusiness,eachdepartmentcanmakesurethereisgoodunderstandingofthecontextof

thecustomerlifetime relationshipwith thebank,all thedifferentneedsof thecustomer, thedifferent

rolesinwhichtheyinteractwiththebank.

Agood

experience

enriches

my

life.

Apoorexperiencemakesmeunhappy.

Startwithcorrectingthepoorexperiences!A2005paperbyMcKinseyandCompanyreflectedthecostof

poorservicehttp://www.mckinseyquarterly.com/article_page.aspx?ar=1571&L2=10&L3=51

Asurveyof2,100retailbankingcustomersintheUnitedStatessuggeststhatinstitutionsshouldstartbyexamining

the everyday events thatmost affect,forgood or ill, a customersperception of them.These moments of truth

represent important opportunitiesfor banks to assess their customer service capabilities and to ensure aproper

alignmentof investmentswithcustomerneeds.massmarketcustomerswhohadanegativeexperience(say,an

unexpectedfee)during theprevious24monthskept4percent lesswiththebankthandid thosewhohadapositive

experience(suchasadeftlyhandledaccountopening).

Thesurveyfoundthatthewealthiestcustomerswithmorethan$100,000inassetsgenerated13timesmore

profit thanmassmarket customer.Thesevaluable customersactuallypunished thebank twiceasbadly,

decreasing theirassetsat thebankby8%.McKinseysarticleconcluded thatthewayemployeesresolve

problemsiscrucial.banksmustreexaminetheirbroaderservicerecoveryprocessesiftheyaretoaddress

thelapsesthatturndisgruntledcustomersintoformerones.

PayAttentiontoCustomerExperienceManagement;

Makemore

money!

Poorexperiencebycustomersleadstolowerprofitsatthebanks.

Untilwefindthebankwhocaresaboutdeliveringgoodexperiencestimeaftertime,we,thecustomers,will

continuetospreadourbusinesswithvariousfinancialinstitutions,everhopefulthatoneday,wewillfind

TheOnethatunderstandshowtoserveourneedsanddelightoursensesatthesametime.

Paying attention to customer experience pays as savvy customers will value the extra effort paid to

understandtheirneedsandpreferences,anddoasmuchbusinessaspossiblewiththebanksthatdeliver

goodexperienceseverytime.


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Improvingcustomerexperienceincreasesprofits.

Thatsthebottomline.

MeiLinFungwasanearlypioneerintheCRMspace,andwasthebusinessanalystforthefirstintegratedsalesand

marketing application, envisioned byTomSiebel atOracle in1988.MeiLin spent5yearsat Intel,primarilyas a

customermarketingengineerintheUSDistributionSalesChannel.ThecombinationofIntelandOraclehasgivenher

an insiders view of the supply chain through to demand chain connection in the technology industry. She was

ManagingDirectoratWainscottVenturePartners,anITfocusedventurecapitalcompanywithofficesinWashingtonDC,New

York,andtheSiliconValley,until2001.MeiLinadvocatesthedisciplineofCustomerLifetimeValueanalysistoachievesuccessful

CRMinvestmentsandsustainablebusinessmodels.


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WhatisCEM?

ByJimSterne,US

BeforeIrealizedthatCEMhadbecomeanother,ubiquitousandsoontobeoverusedbusinessacronym,Ialready knew that customer experiencemanagementwas the right concept the right idea the right

direction.

Theexperienceacustomerhasofacompanyisalteredeverytimeaprospectoracustomerthinksaboutthe

company.That is truewhether the thought ispromptedbyanadvertisement,aphone call,awebsite,a

conversationwith friendsorwhatwehavenow come to call consumergenerated content onblogsor

reviewwebsites.

Ifyourmarketingandyourwebsiteandyourcustomerserviceisallaboutyourcompany,yourproducts

andyourservices thenyouhaveagreatdealofwork todo.However, ifyourwebsite isallaboutyour

customers,youareontherighttrackandheadedforamuchbetterreturnonyourinvestment.

The transformation from corporatefocused to customercentric is not an easy one. Even the most

clientminded individualshavetroubleeffectingculturalchange ina largeorganization oraevensmall

ones.Butitispossible,withperseveranceandalittleimagination.

AsmallcompanynamedZylomaskedmetoflytoAmsterdam,takeatraintoEindhovenandthendriveto

aconferencecenterinthemiddleofnowhere.Theentirecompany,allthirtyofthem,wouldbeonhandto

learnaboutcustomercentricityduringathreedayworkshop.

Zylomcreatesanddistributesonlinesolitaireandpuzzlegames.Nottheshootemuptypethatappealto

teenageboys,butwordgamesandTetrislikegamesthatappealtotheirmothers.Manyoftheirmothers.

Thecompanyisshockinglysuccessful.

The firstdaywaspart lectureandpartworkshop.What iscustomerexperience?Whatdoes it looks like

online?Howdoyoukeepcustomers foremost inyour thoughts throughouttheday?Theresortwasfirst

class.Thegroundswerestunninglybeautiful.Lunchincludedagroupbicycleridethroughthecountryside.

Thateveningweboardedahiredbusfordinnerinanearbytown.

All thirtyofusclimbedoff thebus todiscover that therestauranthad lostourreservation.Facedwitha

delugeofhungrypatrons,thisestablishmentdidnotseemtorisetothechallenge.Halfofuswaitedforan

hour.Theotherhalfforanothertwentyminutes.Drinkswereservedtothewrongpeople.Foodarrivedlate,

cold,overspiced,undercookedanddessertneverarrivedatall.The flowerarraignment lookedat least

twoweekspast itssellbydate.Thiswastoutedasafirstclasseaterybuttheyexhibitedlittleornoclass

whatsoever.

Thefollowingmorning,itwastimetodiscussthehomeworkIhadassignedbeforeflyingover:Describea

badcustomer

experience.

If

asked,

you

d

have

to

think

for

amoment

about

abad

purchase

you

d

made

or

annoyingclerkyouhadmetsoIgavethemplentyoftimetocomeupwithsomething.Therewerestoriesof


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repair work gone awry, appliances that never arrived and faulty phone

servicewithnobodywillingorabletomakeamends.

Finally,aswegothalfwayaroundthetable,oneoftheemployeesadmittedthatdinnerthepreviousnight

had

not

been

particularly

good.

There

were

grumbles

of

agreement

around

the

table

with

sidelong

glances

attheCEOwhohadmadetheselection

Attheendoftheday,theCEOannouncedthatwewouldbeboardingthesamebusandheadingbackto

thesamerestaurantfordinner.Thiscommentwasmetwithastonysilence.Heletthesilencefermentfora

bitandthensaidthathehadspokentotheowneroftherestaurantseveralweeksbeforeandhadsecured

anagreement.Therestaurantwouldengineeranddeliverabadcustomerexperienceonthefirstnightand

agoodoneonthesecond.

Theroomexploded.

Everybodyhadacommentonjusthowbadthemealhadbeen.Thewaitresswassurly.Thebartenderwas

smoking.Thecoffeecupwaschipped.Thebeerwaswarm.Therewasnosaltorpeppertobefound.The

papernapkinslookedliketheyhadcomefromafastfoodeatery.Thelistoffaultsgrewasthecrowdwas

wrappedinamazementthatithadallbeenintentional.

Ihadbeeninontheruseandhaddelightedinthemischiefwroughtbytheparticipants.Thebartenderdid

more than smoke.He poured some glasses half full.Hebanged pots and pansbehind thebarwhere

nobodycouldsee.Iwatchedasheputoneglassofbeerinthemicrowavetowarmandflattenit.Heandthe

otherstaffcouldbeseeneverynowandagaininthekitchendoorwaylaughinglongandhard.Thenapkins

had,indeed,comefromafastfoodsupplyhouse.

Thesecondevening,asthebuspulledupinfrontoftherestaurant,theownerwasstandingatthesideof

the road.Hegreeted eachofusaswedisembarked.He ledus toour tableswhichwere setwith cloth

napkins,crystal,candlesandvelummenuswiththeZylomnameandlogoprintedatthetop.Thewaiters

cameinawaveandeverybodyhadaglassofwineinaninstant.

Theownerbroughtastoolintotheroomandsatdown. Beforeweserveyourappetizers,Ihavetothank

youall.Inmymanyyearsasarestaurateur,IhaveneverlearnedsomuchasIdidlastnight. Wehadbeen

preparedforanapologyforthepreviousmealwithawinkandanod,andapromisethattonightsdinnerwouldbebetter. Instead,he recountedarevelation thatwouldchangehowheandhisstaffwould treat

customersfromthatmomenton.

Oh,wehadfun! hesaid. Butitwasveryhardwork.First andforthefirsttime wehadtothinkabout

thedifferencebetweenagooddiningexperienceandabadone,sowecouldperformourcontractedduty

withoutactuallyspillingfoodorburningyouwithhotplates.Thenwehadtoactuallydoit,andsomeofus

failed.

Ourwaitresssimplycouldnotstopherselffromsaying, Thankyou whentakingorders.Ourchefflatly

refused toburn thecrmebrul. Itwasveryhardwork. Hepaused. Butwecouldnotunderstandone


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thing.Thethingthatwassoconfusingandsoenlighteningatthesametime,

wasthatnomatterwhatwedid,notoneofyoucomplained.

Now,Iknowthatyouarehereatthecommandofyourbossandheispayingthebillsoyoudidntwantto

insult

him

or

his

choice

of

restaurants.

But

nobody

should

have

to

endure

what

we

put

you

through

last

night.Andnowweknow thatasgoodaswemay thinkweareandaswonderfulaswe thinkour little

restaurantmightbe,ifthereissomethingwrong nobodywilltellus!Sowemustbeespeciallycarefuland

observant.Otherwisewearesimplyfoolingourselves.Thankyouforthislesson.Please,pleaseenjoyyour

dinner.

Thenextmorningstartedalittlelateraswehadwinedanddinedwellthatnight.Afterlunch, itwasmy

turntofindoutifthelessonhasbeenlearnedbythedinersaswellasbytherestaurant.Wetalkedabout

whatwemightdo to improveZylomscustomerexperience.Thehoped forandexpected ideas included

focusgroups,usabilitytesting,randomsurveysandthelike.ButIknewtheexercisehadhitthemarkwhen

thewomaninchargeofaccountsreceivablespokeup.

Thenext time Isendout invoices toouradvertisingcustomers, Imgoing to includeanoteasking them

howIcanmakeiteasierforthemtoprocessmybill. Shehassuccessfullyidentifiedheraccountspayable

counterpartsashercustomersanddecidedtogetproactive.

IflewbacktoSantaBarbaraknowingIhadhelpedchangetheirviewoftheworld.

Doyouwantyourcompany toengage incustomerexperiencemanagement?First,youmustchange the

wayyourcompanythinksaboutyourgoodsandservices?Youmightfirstconsideraskingeveryemployee

todescribeabadcustomerexperience.Thenbuythemdinner.

JimSternehas spentmore than20years selling andmarketing technicalproducts andproduced theworldsfirst

Marketingon the Internet seminar series in1994 andhas sincedevoted all ofhis attention to the Internet as a

marketing medium. Today, Sterne is an internationally known speaker on electronic marketing and customer

interactionandaconsultanttoFortune500companiesandInternetentrepreneurs.Sternefocuseshistwentyyearsin

salesandmarketingonmeasuringthevalueofaWebsiteasamediumforcreatingandstrengtheningcustomerrelationships.


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TheCustomerExperienceDontgetlostinSPACE

BySimonDaisley,UK

Thebestcustomerexperiencesarebuiltfromtheinsideout.

Theyhaveaclarityofpurpose. Peoplemaybeattractedbygimmicks,butifthehypeorWow!Factoris

notbackedupbyaclearcommitmenttothecustomerthroughprocesses,systemsandstaffbehaviour,then

youwillverysoondisappearintoouterspace.

The only effective way to grow the longterm value of yourbusiness is to deliver a magneticbrand

experienceacrosseveryproductandeverychannelateverystageofthecustomerlifecycle.Anyinvestment

insales,marketingorR&Dwillbewastedunlessyourcompanytrulylivesuptotheexpectationsyouare

settinginthemindsofyourcustomers

Halfofthechallengeisindrawingcustomerstoyourbrandwhohavethepropensitytobecomeprofitable,

loyaladvocates.Theotherhalfisindelightingthosecustomerstimeandagaininhowyoumeettheirneeds.

Brandgravitydependsuponyourabilitytounderstandandpromotetheuniquevaluethat is inherentin

yourbrand.Greatbrandsarebuiltfromthe insideout.Theystartwithacore idea,whichhasapurpose.

Thatpurpose gathers force as staff and customers are attractedby itspotential. Ifyour staff share that

purpose then they passionately communicate the core strengths of the brand. This gives customers

something to feel good about at an emotional level. And after all, every choice anybody makes is

emotional;evenrationalones!

Goodbusiness isbuilton trust. Ifyourbrand isanhonestreflectionofyourorganisationscorepurpose,

values and capabilities, you canmanage customers expectations more easily. You can also focus your

energiesonreducingthe dealbreakers lurkingwithinyourcustomerexperience.


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Thecustomerexperiencecannotbeviewedinisolation. ThinkoftheWorldweinhabitasanorganisation.

Thecustomerexperience is thegroundwewalkon; thepointatwhichweexperience thatorganisation.

Yetbeneathourfeetlieunseenlayers,withoutwhichlifecannotbesustained:

At thecore, isyourorganisationsDistinctiveNaturalAttribute (DNA). This iswhatdistinguishesyour

organisation from any other. As companies grow, mature and diversify, that DNA can easilybecome

obscured,yet it representsyouroriginalpurposeand therootcauseofyoursuccess.Yourorganisations

DNAcannotbe imitatedbyanyothercompanyand it is the firmest foundationuponwhich toestablish

yourvisionandvalues.

Fully realisingyour enterprisesDNA helps remove ambiguity internally and externally as to the organisations

primarypurpose.Itprovidestheultimatebenchmarkforstrategicdecisionsandbringstheorganisationbackintouch

withitsstakeholders.

Themantlethatsurroundsthecorecontainsthecorevalues(motivators)ofeachofyourstakeholdergroups:

Suppliers, Partners, Authorities (e.g. shareholders, regulators), Customers and Employees (known

collectivelyasSPACE).

Corevaluesare innate. Theygiveusour senseofpurposeand identityand theyguideourbehaviour.

Upuntil recently, theyhavealsobeenextremelydifficult toquantifyandcalibrate,butgroundbreaking

workbyRichardBarrettof theValuesCentre in theUS isproviding toolsand techniques toassesscore

valuesandmeasurecorporateculture.

Whenvaluesassessmentsarecombinedwithanunderstandingof theorganisationsDNA, thisprovides

new insight intohowacompanycandevelopamoreattractivebrandforall itsstakeholdersandremain

truetoitscoreidentity.

Throughoutour lives,weareunconsciouslydriven toconnectwithpeoplewho seem to share the same

valuesaswedo.

Ifyoubringyourbrand into linewith thevalues thatyourstakeholdersshare, theywillfindyourbrand

morerelevantandmoremeaningful.Thisboostsyourorganisationsabilitytodeepentheirloyaltyandto

attract more stakeholders with similar values. For example, values can be used to enhance existingcustomerprofilingtechniques.Theycanbeusedtomodelbehaviourwithinthecompanyandacrossallits

relationships and they canbe used to improve the relevance and clarity of communications with all

stakeholders.

Thencomesthecrunchthesoundofourfeetonthestonypathofcustomerexperience. Thisistheability

toinspireconfidenceinallyourstakeholdersthroughtheirexperienceofyourorganisation.

Delivering an authentic, consistent, attractive customer experience is not rocket science. The key is in

understandingthe dealbreakers.Allcustomershavetolerancetowardsfaultsintheprocess,however,they

losepatiencequicklyifthatflawedprocessisallthatexists.


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Itisimportanttounderstandthedealbreakers,wheretheyareoccurringand

why.Oncethesearebroughtoutintotheopen,youcanworkonclosingthegaps,throughadjustingyour

brandimageandrefocusingyouractivities,todevelopamoreauthenticbrandexperience.

Our

experience

has

shown

that

customers

dont

want

a

relationship

with

your

organisation.

They

want

to

feelvaluedandrespected. Thesearethetwomostcommonlystatedreasonsforemotionalloyalty.

Beyondthese,thecustomerexperiencemustalsodeliversuchhygienefactorsasconvenience,consistency

andchoice. Thesearethedesiredoutcomesthatyourcustomerexpectsasamatterofcourse.

Understandwhat is important toyourcustomersdistinguish theirownspecificdesiredoutcomes, then

monitor your performance against each of these desired outcomes to identify where you need to

concentrateyourefforts.

This isamore intelligent,resourcefulandefficientwayofdeliveringabrandexperiencethanplayingthe

metoo gamewithcompetitors.Itfocusesondeliveringwhatmattersmosttocustomers,inlinewiththe

organisationscoreidentityandthesharedvaluesofitsstakeholders.

Bymeasuringthequalityandconsistencyofyourcustomerexperienceacrossallproducts,channelsandsubsidiariesit

ispossibletotrackthestrengthofyourbrandgravitytoensurethattime,moneyandenergyisbeingfocusedintheareasthatmakeatangibledifferencetothepeoplethatyourbusinessdependsuponforsuccess.

Customer experience is theplace in spaceand timewhereyouandyour customercome together. It is

actually the only means of differentiating yourself. It is winning the sale, changing the perception,

inspiring confidence, solving theproblem. But it cannotbeviewed in isolation. Ifyou try to conquer

customer experiencewithoutdealingwith theunderlyingcontext thenyouare likely toendup like the

medievalexplorerswhobelievedthattheearthwasflat. Youwillfallofftheedge.

0

1

2

3

4

5

6

7

8

9

10

Performance

0 10 20 30 40 50 60 70 80 90 100

Importance

Possible overkill Keep up the good work

Low priority Concentrate here


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SimonDaisley is cofounderandManagingDirectorofProfusion International,abusinessdevelopmentcompany

thatspecializesingivingpeoplemoretocelebrate.IntheprivatesectorProfusionhelpstobuildcustomerloyalty,brand

gravity, employeesatisfactionandshareholdervalue. In thepublic sector, itapplies this sameexperience to increase

organizationalefficiencyandservicequality.ProfusionhasworkedwithorganizationssuchasBT,Ferrari,RoyalBank

ofScotland,Dagenhams,ANZBankandanumberofleadingpublicsectoragenciesincludingtheUK sfastest improvinglocal

authority!


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ByJohnChisholm,US

The

easiest

way

to

define

CEM

is

to

compare

and

contrast

it

with

CRM.

Beyond

merely

capturing

the

customers contact and profile information,CRMdealswith customer behavior:What has the customer

purchased? Whatwebpagesdid the customervisit? Whatquestionsdid the customeraskof the call

center?

Incontrast,CEMdealswithcustomerattitudes. Howsatisfiedwasthecustomer? Howlikelywouldheor

she be to buy again? How willing would he or she be to recommend us to a friend or colleague?

Consequently,CRMsfocusisthepastandthepresent. CEMsfocusisthepresentandthefuture.

Gathering CRM data is relatively easy all we have to do monitor and record customer behavior.

Gathering CEM data is much harder we have to elicit opinions, perceptions and other attitudes

consistentlyacrosscustomers,whichnotallcustomerswillprovide;makecertaintheattitudesgatheredare

representativeofanentirecustomergroup;andaggregatethoseattitudestomakesenseof them. Allof

thisusuallymeansconductingsurveys.

ThecombinationofCRMandCEMcanbeextremelypowerful. CRM tellsyouwhat thecustomerdid;

CEMcantellyouwhy. Ifacustomerswitchestoacompetitor,onlyattitudinalfeedbackwilltellyouthatit

wasbecauseofdissatisfactionwithproductfeatures,orspeedofservice,oreaseofuse,orcourtesy.

Inparticular,CEMcanvastlyimprovethepowerofCRMtopredictfuturecustomerbehavior. Wemight

naturally assume that a customerwho hasbought our product everymonth for the last ten yearswill

continuetodosoforthenextyear. Butwhatiftheirsatisfactionhasbeensteadilydecliningoverthesix

months? Suddenly,acustomerpreviously seenas secure looks tobeatrisk. CEMdatagivesusearly

warningsofatriskcustomerssowecantaketherightactionstosavethembeforetheyarelost.

Customer experiences canbemeasured either at specific touchpointsbetween the organization and its

customerssuchascallcenter,website,productinstallation,onsiteservice,oraccountmanagementor

overall. Touchpointspecificsurveysconductedimmediatelyaftertheeventortransactionareusedforthe

first;relationshipsurveysthatmayask forperceptionsofbrand,commitment,and trustareused for the

second(overall). Bothareneededtoprovideacomprehensiveviewofhowcustomersseeus.

Composingeffectivecustomersurveysisbothartandscience. Togetaccuratefeedback,surveysneedto

help customers relive experienceswhichmay have happenedweeks ago. Too, surveys often need to

incentivize customers to provide feedback. If too long, customerswill not respond; if too short, data

gatheredisincompleteandinactionable.

Inlargeorganizations,CEMsystemsactascorporateeyesandears. They:

1)Gathertimelyfeedbackfromkeystakeholdersincludingcustomers,prospects,partners,andemployees on their satisfaction, intentions, and other attitudes towards, and about their experiences with, an

enterprise;oftenthroughintegrationwithCRM,ebusiness,andotherITsystems


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2)Makeactionablethatfeedbackthroughpowerfulanalyticsandreports,andinstantlyaccessibletotheright

peopleatall levelsof theenterprise through interactivedashboards,pushed reports, emailedalerts,and

othermeans;and

3)Enableenterprisestoefficientlymanageactionsrespondingtofeedback.

OptimaldesignofCEMsystems involvesconsiderationsnotjustof ITandcorporatestrategy,butalsoof

statistics, sampling, market research, and humanbehavior. Welldesigned CEM systems are especially

important to large organizations, where the many divisions and departments could easily inundate

customerswith survey requests. Theymust also enable seniormanagement to comprehend customer

feedbackacrossallofthecompanystouchpoints.

Thebenefitsof suchCEM systemshavebeen firmly established.They inform the right individuals and

teams when customers are dissatisfied and why, enabling those individuals and teams to respond

immediately. They give rise to business intelligence warehouses that can be mined to ensure that

investmentsaremadeintheareaswiththehighestpayoffs.Throughcustomertouchrules,theyensurethat

enoughfeedbackisgatheredforresultstobemeaningful,andconserveandoptimizeapreciousresource:

customers willingness to provide feedback. Internally, CEM enables more effective rewards and

recognition, thereby enhancing employee satisfaction and commitment.As a consequence of all of the

above,CEMsystemsputorganizationsonpathsoffasterlearning,fasterprocessimprovements,andfaster

gains in competitiveadvantage. Ultimately, they enable enterprises to increase customer retention,win

morenewcustomers,improveproductivity,reducecosts,andraiseprofits.

JohnChisholm isChairman&CEOofCustomerSat, the leadingproviderofrealtime systemsformeasuringand

automatingactionsbasedoncustomersatisfactionandloyalty.PriortofoundingCustomerSatin1997,hefoundedand

servedasCEOofDecisiveTechnology,formerlytheleadingproviderofdesktopsoftwareforconductingonlinesurveys

acquiredbyMessageMedia.Hehasnearlythreedecadesofexperienceingeneralmanagement,marketing/researchand

strategy,includingpositionsatHewlettPackard,Xerox,PyramidTechnology,andGridSystems.HeholdsaUSpatentinInternet

polling technology;bachelorsandmastersdegrees in electrical engineeringandcomputer sciencefromMIT;andanMBAfrom

HarvardBusinessSchool.HeservesaschairmanoftheStanfordInstitutefortheQuantitativeStudyofSociety(SIQSS),sitsonthe

marketresearchcounciloftheAssociationforInteractiveMedia(AIM)andonnumerousadvisoryboards.


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ByJenniferKirkby,UK

Customerexperiencemanagement(CEM) ismuchtalkedaboutintheworldofrelationshipbuilding. InmanycompaniesitissupercedingCRMastherelationshipphilosophy;butintruthitisanimportantpart

ofthecustomerrelationshipmanagementarmoury:afterallthemainpointof improvingthecustomers

experienceistobuildarelationship.

CEMaligns thecustomersreality (theirexperience)withacompanys intendedstrategyandneedsboth

organizational collaboration and a supporting infrastructure (processes, information, technology and

metrics)tosucceedseefigure1.

Figure1TheEightBuildingBlocksofCRM

Source:JAKirkby,Gartner

TheaimofCRMistobuildcustomervaluethroughrelationships. Theprimewaytodothisistoidentify

and acquirepotentially valuable customers and invest in theirdevelopmentbymanaging the customer

experience. The customer experience is a combination of product, service and the feel good factor

generatedbyarangeofdeterminants(e.g.,visual, toneofvoice,smell,atmosphere,careandattention to

detail)atcustomertouchpoints(e.g.salespeople,callcentreagents,advertising).Itisbasedoncustomers

expectations,determinedby:

Brandpromotion

Wordofmouthcommunicationandreputation

Previousexperienceofthecompany

Previousexperience

of

other

companies

(NB

not

necessarily

competitors)

Customer

CRM Strategy

CRM Vision

CRM Processes

CRM Metrics

CRM Information

CRM Technology

Organization

CRM Building BlocksYou

Are

Here


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TheBenefitsofManagingtheCustomerExperience

CEMhasthreebenefits:

Improvementsincustomerloyalty

Differentiation

from

competitors

Improvementsinreputationandretainedbusiness

CustomerLoyalty

Thecustomerexperience is important inbuildingemotional loyalty orcommitment toanorganization

(seeFig2).Experienceistheultimateconveyorofvaluetocustomersandisaprimaryinfluenceonfuture

behaviour.Apoorcustomerexperience isastepon thepath todefectionanddamagingwordofmouth;

whilst a good one leads to retainedbusiness and recommendations. Companieswhobuild emotional

loyaltycreateabigadvantageoverthosewhoonlymeasurerationalcustomersatisfaction.

Figure2Emotional

Loyalty

Classifications

Source:Ogilvy

CompetitiveDifferentiation

Brandmonitoringshowsthatbrandsarebecominglessdistinctinconsumersminds(seeTable3).


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Table3BrandsareBecomingLessDistinct

.

+100

(More similar)

Consumer services

Visa/MasterCard

Retail stores

Staples/Office Depot

Consumer goods

LOreal/Clairol

Catalog clothing

LL Bean/Lands EndColas

Coke/PepsiReligious denominations

Protestant/catholic

SoapDove/Dial

Political parties

Democrat/republican

45

40

37

36

-7

-7

-9

-11

Pairs of leading brands:

* Similarity scores: the higher the score, the greater the perceivedincrease in similarity between brands.

-100

0

Similarityscores*

(Less similar)

Source:CopernicusMarketing

Whatdifference is perceivedbetweenVisa andMasterCard, orLOreal andClairol. Brands shouldbe

distinctive that is the onlyway tobuild competitive advantage.Theyneed a personality that canbe

promoted andbrought to life at touchpoints via the customer experience. Brand promotion gives the

promise;CEMisthephysicaldeliveryofthatpromise.Thiscanbeachievedby

Basingbrandvaluesonwhatcustomerswant

Involvingemployeesindevelopingthevalues

Encouragestafftoaligntheirbehaviourwiththevalues

Rewardingemployeesfordeliveringthebrandvalues

Improvementsinretainedbusiness

ThemanagementofCEMcomes in twoparts,strategicdesignandcontinuous improvement.Continuousimprovement isenabledviacustomerfeedback. Feedbackgivesthecompanytheopportunitytoresolve

complaintsand improveday todaycustomerexperience. Itcanhavean immediateeffectonbusinessby

reducingdefection andbusines

Defining Cem

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