eMarketer Webinar: Customer Experience Strategy in an Always-On World

© 2016 eMarketer Inc.

Made possible by

Customer Experience Strategy

in an Always-On World

Bryan Yeager

Senior Analyst

May 19, 2016


Agenda

Changing Customer

Expectations

Customer Experience

Strategy

Image Credit: Evan Shuster + Garrett Knoll/Noun Project


Customer Expectations Today:

Always On, Need It Now


The number of potential customer channels and

touchpoints continues to grow

7+Number of service channels

used by more than one-third

of internet users worldwide

Source: Nice Systems/Boston Consulting Group, Aug. 2015Image Credit: Desbenoit/Noun Project


Customers don’t view interactions the same way

that marketers do


Consumers expect frictionless experiences

across devices

“Consumers expect first-contact resolution

for all our problems. You pick up your

device and you expect an issue to get

resolved right away. From an internal

perspective, customers expect

everything to work across all

devices, platforms and services.

For most brands, that’s not easy.”

—John Caruso, Partner and Creative Director,

MCD Partners


Brands across

all industries

have plenty of

room for

improvement

when it comes

to eliciting

positive

emotions from

customers


Brands taking a holistic view on customer

experience to meet or exceed expectations

“Customer experience is

everywhere we touch a

customer or they look for

us, being present and trying to

make the experience as

seamless, painless and effortless

as possible.”

—Bruce Millard, Assistant Vice

President, Digital and Customer

Experience, Safelite AutoGlass

Provides glass

installation services

6,500 retail locations

Distress purchase

requires convenient,

stress-free experience


Companies that are raising the bar:


Leading digital companies are raising customer

expectations across industries

“I don’t think anybody comes to

the TruStage website and says,

‘Jeez, this is a much better

website than the other insurance

company.’ What they’re saying is,

‘This is as good or not as

good as Amazon.com.’”

—Jesse Shultis, Vice President,

Customer Experience and Channels,

Cuna Mutual Group

Direct-to-consumer

insurance agency for

credit union members

Benchmarking the

customer experience

against leading digital

companies like Amazon


Be careful about making too close a comparison

to digitally native companies

“One thing that you feel as a customer when you

deal with Airbnb or Uber is that you’re dealing with

one entity, whereas traditional brands tend to have

multiple facets that hit you and don’t talk to each

other. … These digital-only companies have it

much easier because their footprint is

narrow toward digital. They tightly control the

customer experience based on those channels.”

—Peter Kang, Executive Vice President, Creative, Rosetta


Businesses need to adapt to changes in how and

where people spend their time with media

32.1%

2011

47.3%

2016

Source: eMarketer, Apr. 2016

25.6%

Nondigital

Digital

Mobile Nonvoice

Time Spent

with Media by

US Adults


More mobile customers requires more mobile

experiences

“Not only has the number of visitors

that we get from mobile increased

dramatically year over year, so

have storage rentals driven by

mobile. … We see people

jump between devices, too—

from mobile to desktop to back to

mobile. Mobile is playing a bigger

part in the integrated experience.”

—Melissa Burdon, Director of Marketing

Optimization, Extra Space Storage

Self-storage rental

company with more

than 1,300 locations

Mobile plays growing

role when buyers have

intent to rent, including

in-store at point of sale


Growing customer interactions via mobile makes

mobile a key touchpoint for Citi

“For Citi, the most important

channel is mobile. … From the

end of 2014 to the end of 2015, we

saw a 25.3% increase in the

number of global customers

interacting with us via mobile. This

shows a seismic shift in the way

customers do business with

companies.”

—Alice Milligan, Chief Customer and

Digital Experience Officer, Citi

Global financial firm

putting mobile at the

center of the experience

Has identified, analyzed

the six journeys that

represent the top 80% of

customer interactions


Customers’

changing

behaviors and

heightened

expectations are

appearing on the

radar of senior

executives

worldwide


Marketers also recognize that customer

priorities are shifting

22.7%20.7%

5.1%

29.0%27.0%

0.0%

Top Priority of Customers According to US Marketing Executives

Au

g. 2013

Feb

. 2016

Feb

. 2014

Au

g. 2014

Feb

. 2015

Au

g. 2015

Quality Service Brand

Source: Duke University’s Fuqua School of Business, Feb. 2016


A Strategic Approach to

Customer Experience


What’s the key to delivering great experiences

that reach or exceed customers’ expectations?

1. Strategy (47%)

2. Design (40%)

3. Culture (38%)

The cohesive plan, long-term view and executive

support for the future of our customer

Having well-designed user journeys that facilitate

clear communication and a seamless transaction

A cross-team approach with the customer at the

heart of all initiatives

Source: Econsultancy/Adobe, Dec. 2015


Concept of customer experience is ambiguous,

requiring structure, planning and prioritization

“Customer experience has this broad,

big viewpoint, and I think that’s

actually one of the reasons why [those

of us in that area have] sometimes

struggled in organizations.”

—Frank Eliason, Head of US Digital and

Customer Experience, Zeno Group


A multichannel or single view of the customer is

often the goal of customer experience efforts

“By the book, customer experience is the sum

of all customer interactions across all

touchpoints throughout the customer journey.

But on a more practical level, customer

experience is really a better lens through

which organizations are taking more

of a multichannel view of the

relationships they have with their customers.”

—John Caruso, Partner and Creative Director, MCD

Partners


Progress is being

made with

customer-centric

strategies …

But plenty more

improvements

can be tackled


Brands developing their customer experience

strategy should pursue low-hanging fruit

“Deal with your trust

issues first. Look at

how you fix things when

they go wrong. Look at

how you set and reset

expectations.”

—David Conway, Director,

KPMG Nunwood

“For a client who has a

loyalty or a CRM

program, the

low-hanging fruit is to

make that stuff work

really well.”

—Peter Kang, Head of

Creative, Rosetta


Marketing’s Role in



Marketers taking on the mantle of defining,

delivering on their customer experience strategy

High levels of

customer

engagement

almost on equal

footing with

brand

awareness for

marketing

leader priorities

worldwide


Wide range of marketers’ responsibilities related

to supporting customer experience functions

67%

72%

72%

73%

74%

76%

76%

77%

78%

83%

90%

Call center

Operational emails

In-store

Operational mobile messages

Customer service responses on social media

Promotional communication and messaging

Collecting reviews and customer feedback

Integrating the customer experience across channels

Loyalty program

Media advertising

Consistent brand messaging

Areas for which enterprise senior-level marketers worldwide are responsible

Source: Experian Marketing Services, Nov. 2015


Just 3% of

marketing

executives in

North America

believed their

company was

realizing the

full revenue

potential of

customers


But retaining

customers

and driving

loyalty

continue to

receive the

smallest

portion of

funding


Attaining coveted single customer view remains

out of reach for client-side marketers worldwide

13% of client-side marketers worldwide

currently have a single customer view

implemented

15% have it as a budgeted priority

29% say it’s a priority but not budgeted

41% say it’s in discussion but not a

priority

Source: Econsultancy/Adobe, Nov. 2015


The many

benefits of a

more unified

customer

view push

marketers to

continue their

pursuit


Measurement is key to understanding whether or

not strategy is working

Another area with

room for

improvement

Only one in 10 US

marketers polled

could measure

customer

experience

extremely well


One prohibitive factor for enterprise companies:

marketing team structure broken out by channel

Fully integrated

40%

Somewhat integrated

41%

Broken out by

channel19%

Small Business

Fully integrated

29%

Somewhat integrated

45%

Broken out by

channel26%

Midmarket

Fully integrated

15%

Somewhat integrated

27%

Broken out by

channel58%

Enterprise

Source: Experian Marketing Services, Nov. 2015


Siloes and lack of coordination can derail

customer experience initiatives

“When [marketers] work in all of those siloes,

one thing they do in one of those siloes

actually has a dramatic effect in the other

areas of their business. They’re making

changes in an effort to fix the customer

experience and they might actually be

clobbering the other teams.”

—Susan Ganeshan, CMO, Clarabridge


Marketers anticipate strategic changes by 2020

Currently By 2020

Source: Economist Intelligence Unit/Marketo, Feb. 2016

Focusing on customer loyalty and relationships

Focusing on customer acquisition

Pioneering new and emerging technologies to

engage our audience

Adopting a mobile- and social-first approach to

major marketing campaigns

Branding and customer experience

Becoming a data-driven marketing organization

Bringing new skill sets into the marketing

department (e.g., data scientists)

45% 39%

45% 39%

35% 37%

28% 30%

19% 19%

18% 20%

11% 15%


Bringing Clarity to

Customer Experience Roles


Brands define dedicated roles to focus on the

customer experience

56%US marketers whose company

currently has roles related to

customer experience

Source: Association of National Advertisers (ANA), Aug. 2015

Emerging customer experience

executive roles

Chief Experience Officer

Chief Customer Experience Officer

Chief Customer Officer

Head of Customer Experience

Vice President of Digital Experience

Director of Channels


There is some skepticism about dedicated

customer experience roles within brands

“Frankly, I think that the

customer experience is

a distributed need. …

It’s an attribute that

everyone needs to be

thinking about.”

—Mohan Ramaswamy,

Strategy Partner, Work & Co

“I wonder whether or not

that’s more of a

reaction to an

organization that has

not been

customer-centric.”

—John Caruso, Partner and

Creative Director, MCD

Partners


But with right structure and authority, it can help

a company ensure they focus on the customer

“When they can get

behind a chief customer

officer or a chief

experience officer as a

way to try to create a

more integrated

experience … that’s a

definite step forward.”

—David Worth, Head of

Strategy, Rosetta

“Putting the decision-

making authority in the

place where people can

make decisions that

improve the customer

experience [is

important].”

—Bruce Millard, Assistant

Vice President of Digital and

Customer Experience,

Safelite AutoGlass


CEOs currently

set the digital

vision or

strategy, but

experience

decision-makers

want more

involvement

from IT and

marketing


The rise of the Chief Data Officer as the overseer

of customer experience analytics?

“More and more we are seeing that there is

an emerging role: the CDO, or chief data

officer. The CDO is responsible for

ultimately analytics and the data strategy.

They should and will have prioritization

authority over system-level changes.”

—Tim Friebel, Product Marketing Officer, ClickFox


Building a Customer-Obsessed

Culture


A customer-obsessed culture is critical for

meeting and exceeding heightened expectations

“[Customer experience]

all starts with the way

we treat our people and

then the way we ask

them to treat our

customers.”

—Bruce Millard, Assistant

Vice President of Digital and

Customer Experience,

Safelite AutoGlass

“Culture is everything …

having a philosophy

around customer-

centricity, which is

something you really

can’t fake in an

organization.”

—John Caruso, Partner and

Creative Director, MCD

Partners


Experience ingrained in the culture from the start

“On Fridays, we invite the rest of

the company to sit with us and

observe what the team is doing.

It’s a social atmosphere. There’s a

lot of back and forth, [and] it

certainly highlights what we’re

seeing to the rest of the company.

There’s more general

customer knowledge

passed around.”

—Andy Kazeniac, Director of Customer

Experience, Drizly

On-demand beer, wine

and liquor delivery

service launched in 2013

Started to carve out

customer experience

function from its start

Group works directly

with product team


An amazing experience is a conduit for eliciting

the right set of emotions in customers

“These companies need to know who

they are. It’s not just about creating

this amazing experience. It’s about

knowing who your customer is and

how you make them feel.”

—Frank Eliason, Head of US Digital and

Customer Experience, Zeno Group


Key Takeaways

Leading digital companies are raising the bar when it comes to

experience, with many brands following.

The concept of customer experience is broad, requiring brands

to develop a clear strategy involving measurement, analysis

and iteration.

Client-side marketers are increasingly driving customer

experience initiatives across an organization.

An array of roles specific to customer experience are being

carved out at brands large and small.

A culture of customer obsession is critical to helping

companies meet and exceed lofty expectations.

Marketo Overview

Renata Bell

Sr. Product Marketing Manager, Marketo

Todays World

2900Marketing Messages Per Day

50We Recognize

4We Remember

And Demand a Personalized Experience

87% of people demand a meaningful brand

experience (Edelman Consulting, 2014)

A Transformation in Customer Engagement

MassMarketing

Focus on themessage

TransactionalMarketing

Focus on the upfront

transactions

EngagementMarketing

Focus onlong-term

relationships

Marketo Company Overview

#1 independent marketing platform:

• Innovative digital marketing platform

• Fastest growing marketing technology company

• Customer system of record, 1B leads, 220B+ activities

Top rated by Analysts including Gartner,

SiriusDecisions and Forrester

Marketing First

• Helping marketers master the art and science of digital marketing

• Unparalleled expertise

4,300 customers across 25 industries in 46 countries


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Bryan Yeager


in an Always-On World

The Customer Experience Mandate: Brand Strategies to Meet

and Exceed Customers' Always-On Expectations

The Changing Path to Purchase: What It Means to Add Mobile

to the Mix

Marketing Technology: The Six Developments That Matter the

Most in 2016

Making Multichannel Marketing Work: Four Tactics Required

for Omnichannel Success (Publishing June 2016)

eMarketer Webinar: Customer Experience Strategy in an Always-On World

Marketing

Transcript of eMarketer Webinar: Customer Experience Strategy in an Always-On World