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Technology and techniquesor a high-quality, and proftable,
customer experience
Jujhar Singh • Reza Soudagar • Vinay Iyer • Volker Hildebrand
Complete book available all 2011
The
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Copyright © 2011 by Jujhar Singh, Reza Soudagar, Vinay Iyer and Volker Hildebrand. All rights reserved. Printed in the United
States of America. Except as permied under the United States Copyright Act of 1976, no part of this publicaon may be
reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior wrien
permission of the authors.
All trademarks or copyrights menoned herein are the possession of their respecve owners and the authors makes no claim of
ownership by the menon of products that contain these marks.
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IntroductIon: Page 4
Part One: Not Your Father’s Customer Experience
chaPter 1:
Customer Experience in te “New Normal” Page 10
chaPter 2:
Te Four Essentials o Proftable Customer ExperiencePage 19
chaPter 3:B2B Customer Experience: Same Animal, Dierent Spots Page 28
aBout the authorS: Page 34
chaPter 4:Trowin Out te Old Playbook
Part twO: Making it Happen
chaPter 5:Te New Customer Experience Recipe
chaPter 6: A Fres Look at te Top and
Bottom Lines
chaPter 7:Tecnoloy: Te Core Inredient
Part three: Sustaining the “Wow” chaPter 8: Sort Pats to Start a Lon Journey
chaPter 9: Measures o Success
chaPter 10: Exportin Proftable Customer Experience
to Solve te Emerin Markets Puzzle
chaPter 11: Te Blueprint or Sustainable and
Proftable Customer Experience
chaPter 12: Te Future o Customer Experience
These chapters are expected to be in the
hardcover book to be published by McGraw-Hill
Professional in the fall of 2011.
ta B l e o c o n t e n t S
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4 the cuStomer exPerIence edge
I n t r o d u c t I o n
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b.
Now, consider te ollowin acts:
• Over 80 percent of companies in a recent survey by Bloomberg Busi-
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• When asked to rate themselves on the customer experience they
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IntroductIon 5
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ipp s. us s wsi, viw byThe New York Times, s pi I ii-
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B i: I is qy s w y ss
s pi wi pi y ivs-1 Jon Stokes. “Lawsuit: Dell knowingly shipped 12 million faulty computers.” ARS Technica, 2010.
http://arstechnica.com/business/news/2010/06/suit-alleges-that-dell-shipped-12-million-faulty-computers.ars2 Michael Krigsman. “Dell lawsuit: Pattern of deceit.” ZDNet , June 30, 2010.
http://www.zdnet.com/blog/projectfailures/dell-lawsuit-pattern-of-deceit/101653 Ashlee Vance. “Suit Over Faulty Computers Highlights Dell’s Decline.” The New York Times, June 28, 2010.
http://www.nytimes.com/2010/06/29/technology/29dell.html?pagewanted=2&_r=14 Dan Ackerman, “Costco Kills Return Anytime Policy.” CNET , February 27, 2007. http://news.cnet.com/8301-17938_105-9691796-1.html
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6 the cuStomer exPerIence edge
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IntroductIon 7
s pi wi ii y. B y
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v ppiis s ( iky s), i ii
s ss i pi i pb.
tis si ks i s ivsi i s p-
i wis y b s pi s b .
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8 the cuStomer exPerIence edge
ebki pb s pi iiiiv s i
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v i s.
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P 2 is “mki I hpp” si, i wi w v i
pis, psss izi ss b i p
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ss pis p iv. W s i
y pys i ivi pb s pi, isssi
ppii ky y ps, wi ipiv
bsiss/It psips si i.
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INTRODUCTION 9
In Part 3, we explore how to continue the momentum of your customer experi-
ence initiative. This section includes a look at creating “quick wins” along the cus-
tomer experience journey; what a longer term customer experience strategy should
look like; how to measure the value of your customer experience program; the role of
technology in providing a positive and protable customer experience in emerging
markets; and what the future of customer experience will look like.
Our objective in writing this book is to illustrate how companies can deliver a
consistent, sustainable and protable customer experience by making strategic tech-
nology investments. After reading this book, our goal is for you to feel empowered to
champion a protable customer experience initiative at your own company. When you
deliver highly valuable experiences to your customers in a scalable, sustainable way,
the reward is loyal, engaged advocates who help you grow your business.
Flashbook_vX1.indd 9 3/10/11 12:41 PM
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10 the cuStomer exPerIence edge
c h a P t e r 1 :
Customer Experience in te “New Normal”
everyone has a customer experience horror story. t b
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5 Bloomberg Businessweek Research Services conducted two surveys in late 2010 to determine the views of C-level andline-of-business executives on customer experience. In one survey of 307 U.S. respondents, nearly half (48 percent)said improving customer experience was one of their company’s three highest priorities of 2011. An additional third (33percent) ranked it among the top 5. In a second survey of 1,004 global respondents, 80 percent said getting closer tocustomers and providing them with a differentiated experience was a top strategic objective.
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cuStomer exPerIence In the “neW normal” 11
Isiy is, s pis s s
v si vb pssw, wv i b, s s
pssiby kw w i is. t cSr sks sis qsis,
Si Siy b ss p b ’s
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i b b b s pi , wi i
is i p wv sqs i v
bis i i. I is w s’s s is i
ks w s s p p.
Pcpio vs. rliy Most companies say customer experience is a top priority, but that is not reected in
how they rate the experience they provide.
Industry
Telecommunications
High Tech
Healthcare/Pharmaceuticals
Financial Services
Business Services (Consulting)
Media
Manufacturing
Non-Prots
Travel/Transportation/Other
*Scale of 1 to 5, where 1 is “poor” and 5 is “excellent.”
Base: 1,004 respondents from midsize to large companies, worldwide.Source: Bloomberg Businessweek Research Services, 2010
Percent Naming CE How They Rateas Top Strategic Priority the CE They Provide*
92%2.94
90%4.07
86%3.47
82%3.54
81%3.67
80%3.6
79%3.47
73%3.81
71%3.63
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12 the cuStomer exPerIence edge
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w w s’s iy, s s-sw bw
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ppiis k w pis ii
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v i s.
w Is: Customer Experience? The cumulative impact—
both emotional andpractical—of all of theencounters and interactionsa customer has witha company—both directand indirect.
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cuStomer exPerIence In the “neW normal” 13
Loyalty vs. Lock-In
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ss vi w isii i. nw s, bi
wi i ivs iyi s iis psi
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bks.6 Bi k i, wv, s yy. o b p-
i pss is, y s w s sss si
pi yi s w w v js sib wi i—
i s ss w v sipy js “oK” svi.
lik vy s, pis
iiy p s pi;
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pi is . t bsiss psss,
izi s pis
p pi bv vyi s, -
i y bss i sisy
s pb s pi.
a is s. Sp-
i s pi s b viw s
psiv s pi,
is iy wys s. o, i
i i s wi s i
w ss ( p, i p qiy
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s). B ivs y i iii-
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t ik is w y s pi
iiiiv. r, pis s is v s pi
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ii v.
Pbiiy is ssy p s pi6 Timothy H. Hannan, “Consumer Switching Costs and Firm Pricing: Evidence From Bank Pricing of Deposit Accounts,”
Federal Reserve Board, May 12, 2008. http://www.federalreserve.gov/pubs/feds/2008/200832/200832pap.pdf
w Is: Integrated Information Technology Systems?Let’s start with what it is not,which is easily seen with avisit to any call center. In manysituations, call center repssit in front of not one but two(and even more) screens, justto access all of the data theyneed to answer customer
questions on billing, delivery,trouble-shooting, etc. Theproblem is, the data is storedin multiple systems. With inte-grated systems, all employeeswould have a full view of cus-tomer information, includingnance, manufacturing, salesand service.
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14 the cuStomer exPerIence edge
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ps, p, pis is sippi -ss s
ss p y ps. t s-sib s-
bsss i s s s iis b s sis
“ww” pis is pys v iivi ss.
t jy is si Zpps’ . hwv, is 2009 s az
iss qsis s w -i ws b
ps w is ivss.7 8 9
Customers Really Are in Care
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ps i i bs i pp
ps iy.
ty, bizi, ss sizi y, iiy
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pis y w y w b
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siz ps si i iivi ss
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vis—pys p s v s pi-
bsiss ps y p s ss i i piv
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w Is: A Digitally Engaged Customer? A customer for whom it is sec-ond nature to use social me-dia, the mobile Web and othertechnologies to engage witha business, conduct researchand complete transactions.
7 Nicholas Carlson. “VCs Forced Zappos CEO To Sell To Amazon Rather Than IPO.” Business Insider , July 23, 2009.http://www.businessinsider.com/liquidity-starved-vcs-forced-zappos-to-sell-rather-than-ipo-2009-7
8 Tony Hsieh. “How I Did It: Zappos’ CEO on Going to Extremes for Customers.” Harvard Business Review , July-August2010. http://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers/ar/1
9 Stu Woo. “Sticker Shock Over Amazon Growth.” The Wall Street Journal , January 28, 2011.http://online.wsj.com/article/SB10001424052748704268104576108424039598058.html?mod=djemalertTECH
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cuStomer exPerIence In the “neW normal” 15
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si s -i ss. I ii, s pis
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is isiy iss ; b b si y: P2P—
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B2B pis i cp 3.)
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ss w.” nw, pis s “pi”— i-
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diii s is p proftable s pi. I
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ws: i is (s s yis i crm
erP sw) ispiv is (s s bi Wb
si i) y s s pi -
(cem), by bi pis pvi ss wi
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t isk, wv, is viw ivss i cem s i p
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y s s?’” sys d Ppps, i p Ppps
& rs gp, crm si py. “tis i is i. a b qsi is: hw w s is y iv
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s wi y w y w, pssivy ivi w-
v y s . a i s vyi.
S j is y izi ssii.10 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.
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16 the cuStomer exPerIence edge
t bi py, is iz-
i iiy is iky b. I is i i vy
s —ivi ss w y w, i s. I is
, w bsisss yi b ss wi
ski w vs iii ivi, ii
iivi v wi ss swi i s pvis
piiv v.
Te Cost o Inorin Customer Experience
rii py s is i j
s vy p izi. B sqs i-
i s pi wi b i, s . ev i i is spi
s, w y py s -py (ik mis w
ys ), y k ys vb pii w qs
(ik mis ps-g). as wi ivs, s i
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tk d. I 2005 py sw is s sisi s sip
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wi is by uivsiy mii.11 t ip ws y
ib vi sps b psis jis J Jvis,
wi d’s sw sps i vs.12 d i
pp, by vi psi iis vs-
is, i si i iviis.
I 2011, is 22,000 i vsis
y, i a Bw, d’s eiv di, Si mi,gb mki. h s Si mi lisi c c,
i db 2010 d’s qs i r rk, ts
( s wi i ci i 2011) i
py’s sps, k, s 22,000 v-
sis—70 p wi i eis. d y sp
vsis i i s, i ps .
t is ssi is. ts is ii
vsis 7,000 si i-i d pys, w11 Lisa DiCarlo. “Dell Satisfaction Rating Takes a Deep Dive.” Forbes.com, August 16, 2005.
http://www.forbes.com/2005/08/16/dell-customersatisfaction-falls-cx_ld_0816dell.html12 Jeff Jarvis. “Dell Learns to Listen.” Bloomberg Businessweek , October 17, 2007.
http://www.businessweek.com/bwdaily/dnash/content/oct2007/db20071017_277576.htm
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cuStomer exPerIence In the “neW normal” 17
v ppib, pppi i pis skis, Bw
pi mis gb hi t Si i y 2011.
I , i i s skps py
wi iivis “ i” i vsis v
. p, i sii pp is s vs-
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skp, s y sp vsis s ,
Bw pi.
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ss ppy s yi.
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a p is $300 ii s-i
$1 bii ss v-
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13
ii ivs i s pi s s iski bi
ii , , pi sbsiy pi, -
i dvi g, , s ss sizi p.
g pis y ys mP3 py s p w
is k iii py . Sy, nki pis
is w vsi ii si py. t iiiy—
wiy—si wk k is, app iP
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w Is: CRM? The boundaries of customerrelationship management havestretched beyond the realm of sales, marketing and customerservice/support. Today, CRM
is a strategy for becoming acustomer-centric enterpriseby synchronizing all customer-facing interactions, includingbilling, fulllment and otherback-ofce processes withhigh customer impact.
13 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.
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18 the cuStomer exPerIence edge
si, i pp sy--s si vi iss
wi si. t ps w p i-
y pi.
I y’s iiy w, ii cem s y v i
sqs py’s pi , iy, is b i.
o v, b b pp wi b s’s b
pi s wi b i pi. tis is v
i Wb, w is s y pp b
iv pi vs. psiiv , i J g,
s pi y tarP Wwi.
cpis v k i ss—wv piy—
w si y ji wi i ss vi v,
b. “I ps, pis ivs s iis s
i [yy] ps ss iy i si,”
sys P d’ass, p i di avisy Svis ps-
si svis Piwscps. “ty, y bi p
bk ppii by ssi s s y w y w
ss, ’s pw yy p.”
tis “bk ppii” is bi iv
s, i d’ass. is sis pp
w-- i; s is i ii; ,
i s “s ,” wi py psi-
iv iv pis -si ipssis, b
ws.14
cy, y’s bsisss, i pi i bsiss
s si s syi sp v ii sisy s s pi. t bs i
s i. divi iy vb pi ss, i
wy y py ssi v i, p y -
vs w y wi s by y i b wi p
w y bsiss w-- i w yy.
14 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.
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the our eSSentIalS o ProItaBle cuStomer exPerIence 19
c h a P t e r 2 :
Te Four Essentials o Proftable Customer Experience
If money were no object, js b y py pvi
zi s pi. giv ii ss, is
pks s y pvi y ss. a i
isis s s y i, w i i is
, s pis v k pp. W y sp
s ni ms, p, y kw y i
sppi pi. tis is si i- is , bs
ss pp pi is f ii
bi. giz s .
B wi y y bi zzi s is
ssib s bsisss spiy i y’s ii w,
w iy ss is js vy . cpis
p pi p ; y sp i-
iy by vpi i svis pis y
ss i pis pi.
“t s wy y w ik b i y w
s,” viss d Ppps Ppps & rs gp. “us
g r. Ii y bs s is sii y w
y’ ki isis.”
a , b ssib s pi s—i —
ii y y pis. a y iv is
iii i wy is sis , iy, pb. t
“bk ppii” w isss i cp 1 s b vb
ss b y vs w s y w
wi y. t v y s b iv i s-
iv wy s piiv iii w. o-
wis, sipy p, is s i.
“I ’s i iv, w ’ pis is,”
sys Siviy gp’s li assy. “I s b si y pi
sy, ‘W v v i vs pss.’”15
15 “How to Achieve a Great—and Protable—Customer Experience.” Bloomberg Businessweek Research Services, 2011.
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Cusom expic w I Looks Likessil
Reliability Living up to the promise. Example: Consistent on-time delivery,
each and every time.
Convenience Offering choice, consistency and timeliness. Example: Using
multiple channels to reach out to customers.
Responsiveness Listening and responding quickly. Example: Changing a
process or policy when feedback reveals it causesproblems for customers.
Relevance Ensuring offerings are personalized and meaningful. Example:
Gaining insight into what really matters to your customers at a
particular point in time.
20 the cuStomer exPerIence edge
ii s b s pi-
iiiiv s p bsiss s. cpis isiy i sv i ivs, i ii w wys s bsiss
s. (W wi isss is pi i i i cps 6 9,
vib i 2011.) Bify, isi bsiss ivs i
i vs, biiy isi pi pii, ipv s-
i s, w-- ki ss
si iviv psss.
Te Buildin Blocks o TrustS w y ? hw y bi bk ppii
wi bki y w bk? hw y i i wy s
ps w? W biv i is b s— siy -
ps p, b w sy biv is bsi-
ss isip. oy w y v sbis s bw bsiss
s y bi i b— “siki-
ss,” i y wi— b pi by y s wi kp
ss y y.W s v , s ispi, s is by
p . I s pi wk, w v i
bii bks s. W s “ssis” p-
ib s pi. ts s pi ssis :
ibiiy, vi, spsivss v (s bw).
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o s ssis, ibiiy is s is y
pqisi . a , i y sisy iv
y piss, wi b vi, spsivss
v. o y iv ibiiy, y k
ssis vp y iii. , y s y
s s pi ssis s is s ssssi
i w y i y k i ivi s
pb s pi.
t ip s s pi ssis ws vi
i svy by Bb Bsisswk rs Svis (BBrS),
i wi sps s ip s psi-
iv pi: ib ps svis, v iis,
spsivss py s ( vi) i bsiss
(s “es cs epi”). t is bk, w wi
i sw, py ps, w s s
pi ssis—s bii bks s— bsis
pb s pi.
the our eSSentIalS o ProItaBle cuStomer exPerIence 21
elms of Cusom expicRespondents said their organizations considered the following as the most importantelements of a positive experience for their customers (percent of respondents ratingeach attribute a 4 or 5, on a scale of 1 to 5).
The quality and reliability of your company’s services
94%
The quality and reliability of your company’s products
92%
The perceived value of your company’s products and services—the importance of the customers’ perception that they feel they received value for their money.
90%
Relevancy and timeliness of interactions with your customers
85%Responsiveness of company to customer feedback and acting on it
84%
Ease of doing business with your company
82%
The consistency of your company’s support and treatment of customersacross channels
82%
Base: 307 director-level and above executives at midsize and large companies.Source: Bloomberg Businessweek Research Services, 2010
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lki BBrS svy ss, i s s pi ssis— i i i ssib ,
iy, pb wy—qis ppyi i y. (W wi
isss is pi i i i cp 7, vib i 2011.)
Wi psss, bk ps s pvi
vs pys ss wi pi y
i, y wi b b pvi sis vs s pi-
i s-iv wy.
y pis, si pi is i psss. tspsss s b si; s is s b p i
is. t s wy, ’s k p p w, sppi
ii yw lb Wb-bs p sppy py. W-
i b i bw w pi bs, s iks
“” b qiky s sps qsi. Ipss,
s ps , spiyi s sippi, v i
i wi iy, s psiiv pi.
a wk psss, s iv wii i pis. hvi k wi , s is is pp
i. tis i, wv, svi p is b p , s s
visibiiy i -ki sys. t k s ws,
s s s -i s svi. S ss -i
s wi 24 s b i sps ii
, i, sipp ys pvisy i
“s” b ivi i w ys. evy i s iv. a
s wi iy si i—i s
22 the cuStomer exPerIence edge
Spolig O: Commerce Bank
Commerce Bank in St. Louis sees itself as a retailer—as opposed to a nancial institu-tion—which has helped the bank create an experience that aligns with the four cus-tomer experience essentials of reliability, convenience, responsiveness and relevance.It uses its motto of “Ask. Listen. Solve.” and the “kill a stupid rule” philosophy to riditself of anything that unnecessarily robs customers of an enjoyable experience. Forinstance, pens are distributed without chains attached, making them more convenientfor customers to use. Its coin counters are free, and the bank even offers a reward forguessing how much change you insert. Commerce Bank also offers free snacks for notonly humans but dogs, too, showing customers that the bank understands what it islike to run errands with kids and dogs in tow.
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the our eSSentIalS o ProItaBle cuStomer exPerIence 23
sp iss vs. byi vii— ppiy
s i , y v s . n -i, iki iss s wi s iv w ps
is bk p.
Tis example illustrates tree tins:
• One-time experiences—no matter how terric—do not build trust.
Y b sisy ss pss s
ii, ss . I BBrS svy, 82 p
sps i- sisy s ssi -
psiiv s pi.• Get the basics right. You can develop gratifying experiences, such as
i , b s b y s i
wki bsiss psss ss-i visibiiy.
• Once established, trust leads to stronger bonds between customers
bsiss. Wi is b, ss y b sis, b
y wi v b pssi, y vs b.
Wi s, y p yy, vy,
piipi— wi ss pb s p-i. I is y w s vps ss wi b ii , sy,
pvi bk w y w ik s p vv. ev ,
y b b bk— s pi
by 84 p BBrS svy sps. I y ss iv y
is y w, iii is wii .
“t y pis i [ s pi iiiiv]
s ivb wi pi ivy svi,” sys
dis Pbi, si py B rs gp.
Te Cost o Broken Processes
I ii bii s, i s pi i s
i s is ss sy i i w vi bkk. Ii,
is, pi pvi by py vy vs :
b svis pvi. t si is ii. Y vi
pbs wi y tV, s y bk ppi iv -
is wii wi y ii is p sw p. t
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24 the cuStomer exPerIence edge
wiw is iii bi wi, s w s
iv wii i. m s y , y pik p p w
pp. t ps sy s v ii i
is sii, b s piss s .
By i ii y pps, y ps y
s wi , y . t ii pks , i
i is ki, vy ps pb . B w ykis y w Sp Bb vi vi, i is p-
p pb is vy iv w. a sp
p vi bis svi “wiw” w pis
v sii i. t s: a ppy s (y)
sy spp py.
ay ipv i bv si w p b
s pi w ss py. W i b
py is qiy bsiss psss pi iv? W i s spp, crm, si, isp p-
sss syss i , i wy b i
s b s— y sp, -i i, wv y
s. t w ii “wiw” iv y vis-
ibiiy s w ii w iv. css p
p svi b p, b y p pis y
piz b i wi bk psss. a i w kp
i wi pbs bi , w wi s s psiiv. a,
Spolig O: Comcast Comcast has come under a lot of heat for offering a poor customer experience. Butthe company has taken many steps that align with the four essentials of customerexperience to respond to these complaints. For instance, its seven-point CustomerService Guarantee promises that, among other things, it will issue a $20 credit for fail-ing to arrive for a scheduled visit during the appointment window—a testament to itsdesire for increased reliability. The company also is currently experimenting with whit-tling its two- to three-hour windows down to just one, to enhance customer conve-nience. In addition, Comcast claims to have reduced its service calls by four million inthe rst four months of 2010 vs. 2009, because it monitors and responds to customerproblems via social media, a true measure of responsiveness. “That’s a good thing,because that’s four million fewer outstanding customer issues,” says Rick Germano,senior vice president of national customer operations at Comcast.
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the our eSSentIalS o ProItaBle cuStomer exPerIence 25
s , w wi is w w w w .
“t s siis w ivsi i i pi- i s is i bsiss spi,”
sys B tki, piip wi s pi sy t-
ki gp. “a i s b bi s, s w.”
S, w you i s py w ispi pp
sp i vb y, i y wi y? y bsi-
sss, vy s sw qsi is si
psss i p pi pi v. I y pis
24- spi s pb, y psss pp i p . I y pis is
pi p, y pii ss s s sisy f
. I y sy si wi iv i ys, i b iv i
i. a y b b b is i vy
i wi y p, w s pps y
i bik-- .
Te Customer-Centric Enterpriset ssis pb s pi b bi i
py. t si— biiy— v-
i, spsivss, v ibiiy s b pvsiv ss
vy p i py, js si ki ss
s b. P vps, ii, , , sippi
p v s ssis v b i s, .
W v i is qi
is vy wii izi w i s w s is viw.
ci i s vy p
izi. Si ivs s pis, pi
s— py’s ps svis— .
tis s ii psss si wi s,
si ki i, vs. (W wi isss is pi i
i i cp 4, vib i 2011.) Wi ii
si p is, isis—ii i
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26 the cuStomer exPerIence edge
y i spp sy—fw y.
I is i wk s pi s
is. I is pp i s siv, p-iv ii-
iiv psss i py. t s pi
is isi, pi s p ivs.
I s ii bsiss psss, i wi s svi, , ki, bi, p/svi is, y,
i is wk sv s-
s. cs pi qis si ss s
pis, s iy. S i
v b wi i i v spp
py’s p s. I, ceo is i bs psii
i, bsis, wy pis s s s-
s, w s. isi py, is s iy is s
is—is ss, p is ps—b, is,
ss i sis. is s s , bii, ,
p vp, ki, ss, s spp/svi It
wk sssy, wi pvbi 360- viw s
. I s ss wi v i s pi
vi pi i pb v v i pys, wi
i s. I s ss w sp viy
Spolig O: Coop
When Swiss grocer Coop began offering customers an iPhone grocery-shopping app,it ensured the offering was not just a whimsical “come-on” that made it look hip to the13 percent of Swiss citizens who carry iPhones. By connecting the app with its ownintegrated enterprise systems, the offering builds a whole new level of customer trustby aligning with the four customer experience essentials:• Convenience: In Switzerland, stores close in the early evenings and all day on Sun-
days. With a mobile app, customers can shop while commuting to or from work.• Responsiveness: Coop recently released a second version of the mobile app, with
improved navigation and search functionality.• Relevance: Switzerland has one of the highest adoption rates of the iPhone in the
world, making this a well-targeted platform for a mobile shopping app.• Reliability: Customers can reserve one-hour windows to have groceries delivered
before placing their order, so they do not get locked out of available timeframes.Real-time product availability means customers receive exactly what they order.
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the our eSSentIalS o ProItaBle cuStomer exPerIence 27
Wb si, p, iz i w ss s.
I is ii s pi b i vs.
w-py ki. csi s sps—
ws piss sy sppi pi. a s sps
i s, yzi pps ispy. h is p-
i i, bs si, “avib i-s y.” n bi ;
wi by i i w. S fs w svi psiv, w
ispps i bk s iv . t p s
wi b ws; pp is sk. ev p, svi p
ks ivy i sv by is ks w, b
20 is wy. g, s sys, ski w s wi b b
s i is i s pik i p. “I’ s sy; w ’
y,” p is. “I sss p ivy.”
s vi ws is i— ysi s wy -
sppy s w k is vib i— s
vs, wi ii ivsi ii i ( s y)
vi 20 is is wy. tw ys , s v b
sii By.
hw s sppy s , w y is
i i— ki ss w w ss
w (sy sppi); kwb, p svi p; v i
p i. B si ip ws issi: i-i, ss-
i ivy sys sys
ws fib y s sis. I is
ki b s-s; i izi s b,
is ppiis b s.tis yp s-i p i ss vy p-
i is si pis js w izi y
iv. owis, i s pi ipiv sis i
w ps, i is siv; i is js i. a
wi b bi s, wi wi pb s pi-
is ipssib.
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28 the cuStomer exPerIence edge
c h a P t e r 3 :
B2B Customer Experience: Same Animal, Dierent Spots
most of the discussion s pi vvs
w-ii ps Sbks, disy, app
B2c pis. hwv, w biv
s s pvii psiiv pb s pi
ip B2B w , i, js s v B2B
pis s i B2c b.
lik B2c pis, B2B s p w pis w pis. Is s pis s v-
s v ss y sisy s-
ivy iv. W biv ssis pb s p-
i (isss i cp 2)—vi, spsivss, v
ibiiy— i B2B w. I , ip isis
s pi is piy i i s ws
ipiis B2B. csi i s isi iv-
is, sip ys i qiis. ayi sppi is b is is, b ss s i b
vs, b, ws wis vib ss.
as w si i cp 1, w w s s sy w i
s i iii psiiv pb s p-
i, is ss ss isii bw B2c B2B. I , w
s sipy ik i s P2P—pp pp.
nvss, ivs i B2B pis i p
bivi s pi is s pvi pis svss. cs ps s pssi (ik
iP, lbii vi i). di y v w
pi b sip b ?
myb . B wi B2B s pi is ssiy qi
i B2c, pis pp v s ss i i
pis i B2B . B2B is isiy bi
bi, s ss, bsisss pvi i ps-
iz i pi, i spk s pvi ppi-
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B2B cuStomer exPerIence: Same anImal, dIerent SPotS 29
is . ty w i i bsiss ps
vs ski, “Wy ’ we v ki isip?” “Wy
’ you sppi bs p i iy?” “W your piv s ss?” “Wy i’ you sp ii-
is I sw i I ws s i?”
I , y vy w ss B2B p svi s is
i ps w is ii w. hisiy,
ppiis B2B is wi ps w ii spi-
is iis i ps isy s
w is y. ty, y b p i b wk
is ii b psy ivv bk, twi- si i. t i bw si wk iis
ps vs. bsiss ss s is bi. Pp w p i
pps -s iky ivi i i bw i
bsiss wi i is. a SaP, p, w w v
v w ii bsiss pssis i i iy wk,
vy b i isy. I , is i s y
y iii w pp i i i jbs s B2B i vs. w
y i i si iis i i ps ivs.Siiy, isis ii b B2B ps, p
v pii pvisy y b bi ssps
siv p is w bib ip Wb sis. t pw
ii is i v’s s; i , ss
ii s b iz. t s 247 ii ss s
yis B2B pis i ss.
t is wy, v i isis ik isi i, w
swy bii s pis i B2c-ik pis
tip Box
There are ways to apply the human touch in the B2B world, says John Goodman,founder of TARP Worldwide. For instance, he has advised terminal operators at achemical company to simply start a conversation with the truck drivers who arrive atleast twice a week and wait a period of time to load their tanks. This bond would en-courage the drivers to speak positively about the company to whomever they are deliv-ering chemicals, Goodman says. It goes to show, it is possible to create an emotionalconnection even when the product you are selling does not evoke passion.
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30 the cuStomer exPerIence edge
i I ppii is si ss ki
byi isis i ps-ps spp.16 ai b
It, si bsiss pss si ciz t-
y Sis, B2B - is vi piiy si
isiy biv, if by ky pis B2c -
s s b vii pbiiis, ipv pii vi-
biiy, ip s ispy pis, p pis pbiiis
ki s p ss-s p-s ps -
is pis. B2B Wb sis s wi s b pib
wi si i s, s s bs s, p wi byi i-
sis. Bs, i ciz, i v sizs,
w p s, w s is s yy.
Central Role o Inormation Visibility
a s i, wi s pi is qy ip i B2B
w, vy i siis vs. B2c, s pi-
b pi iv i B2B w. is,
B2B sis y ivv -v s, si siy qi-
s, p is, i-py sppy is, s
i ii isss. a s s iv
iy, ii. tis is i B2c w,
w -i kw s w is iv
-i s w i is sipp py s s.
I y wys, ss ii—p, i ii
js sip —is B2B s pi.
16 “From Brick to Click: E-Commerce Trends in Industrial Manufacturing.” Cognizant, 2010.
tip BoxB2B companies are working to put the customer at the center of their processes.Doug Hurley, a managing director at PricewaterhouseCoopers, provides an exampleof an electronics rm that revamped processes and added in new technologies inits inbound call center after analyzing how it could better serve its distributor base.For product repairs, the rm now follows up on the original phone call with an e-mailconrmation, which includes a barcode label to be attached to the return so it canbe tracked throughout the repair process. It also continuously alerts the distribu-tor to the status of the repair. “They’re looking for ways to extend their customerservice, where there is perceived value, with the intent that distributors will be moresatised customers,” Hurley says. In our view, the change also fullls all four of our“essentials of customer experience.”
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css pys s b b ss v ii
ky pis ii p/svi spi, b wii
si ws izi. B2B, is is
ks s-
i pis.
Si ivs
w w
sv p ii
pys b sv
ss. I
Bb Bsisswk
rs Svis (BBrS)
svy, s -
qs sps
si y ps
ss ss
ii pys
vi vi by 2012 (s “m mbi d ass”). ty, y
iiy izis svy pw i pys wi i-
i, s s s ss ivy vs, ssib vi
. Bi b sw s qsis pvi spy ss
v ii is piiy ss isis, i
BBrS svy. aiiy, pis pvi pys wi vi
i bi vis, y sp s i s ss.
I B2B w, visibiiy—i ss, ivy vs
sppi ss—is piy w, s i bs ss kp i w ss ppy i w pis i .
c, $15 bii bs i mi, is
iy piss -ivy vs s si
sis, kpi ss ppis ss i ivis.
divy i is ii is ss, bs i -
. I i ivs y, b qiky b sb, s-
i i ws pj ys. I i ivs , wk ws wi
b pi i i is iv, si i si b ss. c’s
B2B cuStomer exPerIence: Same anImal, dIerent SPotS 31
Mo Mobil D accss Access to key applications—anytime, anywhere—willincreasingly be a hallmark of B2B customer experience(percent of respondents).
Types of corporate information accessible via handheld
Sales reports
Financial performance
Customer order status
Inventory/other operational data
Base: 1,004 respondents from midsize to large companies, worldwide.Source: Bloomberg Businessweek Research Services, 2010
20102012
84%100%
45% 75%
40%
40% 71%
35% 67%
31% 66%
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32 the cuStomer exPerIence edge
vi is sisy s-ivy b is ss
iv i pj b s. Ii is ky .17
Isi b Yskw ai ks i s sy s
pssib is ss qiky, siy sisy ss p i-
i spp, w i vi is . Yskw spp
ps v s ii vib wii
crm sys s y p ss wi ski ,
sisyi pi s wii . a s i, py-
s ii ss i ii p
i p vp sis , bypi s Yskw sys k. tis ii is ii i
kwbs ispi i y i py.18
Sypsys, w-i k i si i
sw si si, b iiiiv i is s sp-
p p bi izi is s ii i
p, crm ppii. I s iz, wv, w -
ii s ii s ws bi p i spp
w i i w b is vb i is pvp bk- spp s. gy, Sypsys s p-
sp is crm sys, pi 7,000 is pys
w s sys s ii b ss. t py
iz ipv s pi s b pvsiv,
y wy iv is ip si ss vy p
s s.19
a ky i B2B, s Siviy gp’s li assy
pis , is w s “w s,” wi B2B ss iv 17 Simone Kaplan. “Business Process Improvement at Concrete Co. Cemex.” CIO, August 15, 2001.
http://www.cio.com/article/30445/Business_Process_Improvement_at_Concete_Co._Cemex18 “SAP Helps Companies of all Sizes Become Customer-Centric Businesses.” SAP press release, August 3, 2010.
http://www.sap.com/solutions/business-suite/crm/newsevents/press.epx?pressid=1370719 “Transforming Electronic Design Automation with SAP Customer Relationship Management.” SAP case study.
Spolig O: Colmobil
For some companies, there is little distinction between the B2B customer experienceand the B2C customer experience. Colmobil, an Israeli automobile importer, sellstrucks to business clients, in addition to several brands of cars to consumers. In somecases, a business client might be a consumer client, too. This dual role served as oneincentive for Colmobil to integrate its enterprise systems to obtain a 360-degree viewof all of its customers. Today, if a B2B client walks into a Colmobil sales outlet to pur-chase a Hyundai for his son, for instance, the sales staff will know that he is a valuedcustomer and can offer a personalized experience along with a discount. Colmobil alsois fullling the “responsiveness” essential of customer experience.
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B2B cuStomer exPerIence: Same anImal, dIerent SPotS 33
v 100 p vib b spi p svi,
isibi i sv vs. as s, i iyy is isy k ss. a bs B2B
isip b w iis, is s
isip ss. tis is i, bs s
iivis i i ps wi i s k p
B2B s. “B2B izis i s qi
i bsiss pis s pis,” assy wis.20
B2B pis v i ppiy—viy is i
B2c — kw i p ss ps v.t b is ips isip, s pps
p. (tis is w b s ip bsiss.) “t
s B2B — s—i is p svi spiy
iv pis w by ps y kw iy,” wis
ri ti, b piip P dvp csi,
wi ps pis p pis si s-i i-
vi .21 By s, y B2c pis w
w i bs ss v . o, y kw pis ibs ss— yps pss—b y kw s s
vb ss s iivis -- v .
B2B pis p i i ii i bs,
s ifi ss, isvi w ks ik, sipy by
ski. B2c pis, , i v -
svs wi sii bk bsvi ss i i i bis,
s y ps iy bs si yi
p if.dis si, ip pi B2B pis kp i
i is , is w is bi psiz wi
s pi iiiivs y. t i bw B2B B2c wi
b isiy b, spiy s iiy pp
y is i wk. as y
s is bk—vib i 2011—y wi s w
w ps i b ws p pi p-
b s pi.20 Lior Arussy. “Creating Customer Experience in B2B Relationships.” Global Customer Experience Management
Organization. http://www.g-cem.org/eng/content_details.jsp?contentid=2203&subjectid=10721 Richard Tait. “What’s Different About the B2B Customer Experience.” Blog post, August 16, 2010.
http://winningcustomerexperiences.wordpress.com/2010/08/16/whats-different-about-the-b2b-customer-experience/
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34 THE CUSTOMER EXPERIENCE EDGE
Jujhar Singh has more than two decades of experience as a buyer and seller of
solutions to improve customer service. He has been a senior manager for devel-
opment of customer-oriented solutions for railroads, travel and the automotive
industries. Jujhar currently is the Senior Vice President responsible for the Lines
of Business Sales, Service and Marketing at SAP.
Reza Soudagar has almost two decades of experience in business consulting,
software development and implementation of customer relationship manage-ment (CRM) solutions. Currently Senior Director of CRM Solutions Marketing at
SAP, he formerly developed CRM strategies for clients at Accenture and he led
product management for Oracle’s CRM suite of applications. Reza has bachelors
and master’s degrees in Electrical Engineering from the Swiss Federal Institute
of Technology and completed an Executive Education program at Harvard
Business School.
Vinay Iyer brings almost 20 years of experience as an electrical engineer, soft-
ware user, software developer and marketer to this book. In addition to a decade
of work developing hardware and software to help manufacturers improve their
operations, Vinay was a primary force behind the development of CRM software
for one of the leading enterprise applications vendors. He currently is the Vice
President for Global Marketing at SAP.
Dr. Volker G. Hildebrand has almost two decades of experience as an expert
on CRM as a researcher, author, professor and software industry profes-
sional. With a doctorate in business economics, an MBA from the University of
Mannheim and a degree in business & technology from the University of Stutt-
gart, Volker has been an instructor and pioneering researcher on how to optimize
the relationship between a customer and its suppliers. In addition, he has been a
CRM consultant for various large international companies. Volker is currently Vice
President for CRM Solutions at SAP.
Volker is the author of several books and more than 100 articles on CRM.
Database Marketing & Computer Aided Selling was published in 1993, and his
articles have appeared in the German edition of the Harvard Business Review,
absatzwirtschaft (Germany’s leading Sales & Marketing journal), CRM Project,
HMD, Marketing ZFP and SAP Insider journals.
A B O U T T H E A U T H O R S
Flashbook_vX1.indd 34 3/10/11 3:21 PM
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COMINg IN ThE FALL OF 2011
as 300 ps isis, vi pi is b w ipvs pi pby. Visi y bks i
The Customer Experience Edg
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Vinay Iyer, Dr. Volker G. Hildebrand, Jujhar Singh, and Reza Soudagar
“When you deliver highly valuable experiences to
your customers in a scalable, sustainable way,
the reward is loyal, engaged advocates who help yougrow your business.”
“Increasingly, there is little differentiation between
B2B and B2C—employees expect the same level of
customer experience from business partners that they
expect as customers in their private lives.”
tis vsi The Customer Experience Edge is
ps - bk, wi wi b pbis by
mgw-hi Pssi i 2011. I wi b
vib i bkss i is.
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