What are your Customer Experience (CX) priorities for the new year? If you have to pick one thing that you would most want to achieve, what would it be? Name it, claim it, and make it true. There are probably fewer barriers to success than you fear.
Customer Experience (CX) has become a critical capability for companies in many industries. We previously looked at how CX has become a core enterprise capability and the 6 classic value drivers for CX that deliver +20% EBTIDA growth in any industry. But CX Economics has changed fundamentally, perhaps most obviously in B2C markets. Let’s look at these changes and what they mean for the CX business case.
Customer Experience (CX) is now seen as a mission-critical enterprise capability. Witness the recent (November 2018) acquisition by SAP, perhaps the best known enterprise solutions vendor, of Qualtrics, a leader in customer experience management, for $8bn in cash. To them, CX is the new frontier which can only be unlocked by combining operational data with customer experience data.
Customer Experience (CX) initiatives often have a strong focus on changing the corporate culture. And rightly so. But culture is hard and we have found it useful to consider the opposite question: how understanding your company’s culture can help you define your priorities for Customer Experience transformation to ensure CX success and early impact.
Cassandra Goodman makes a passionate plea for Customer Experience (CX) leaders to focus on what matters: improving the business through better customer- and employee experience. Read her piece on LinkedIn: Focussing On The Scoreboard Won’t Improve Team Performance
Do you think of your customer base as an asset?
In 2005, we asked the leading mobile company to list their biggest assets. We challenged the answer and encouraged them to think about their customer base as an asset. Considering how much money they spent acquiring, retaining, and growing their customers easily puts the existing customers in the top-5 assets by value, which is true for most organizations.
For 70% of companies, ‘Big Data’ fail to generate returns above the cost of capital. This is bad, doubly so because the data is from the telecommunications industry which started exploiting big data early and where the scope for exploiting data is perhaps greater (and surely more obvious) than in most other established sectors. Indeed, by 2014 leading telcos were reporting fully 20% of their profits came from big data, clearly demonstrating the opportunities for getting it right. Let’s examine this in more detail.
Many organizations worry
Do we have enough data to gain insights and take meaningful commercial action? The short answer is ‘yes’. The long answer is ‘almost certainly yes’. In this case study, a Nordic giant in the automotive import and servicing business was facing a real crisis in their service centres where low utilisation was driving them to be unprofitable. They were initially sceptical that they would have enough quality data to gain practical insights, but at the end of this project they were astounded by the depths of insights and commercial actions delivered from the analysis, not just to reduce churn but across the business, their customers, markets, and competitors.
Classes 3-7 July 2017: We have updated our very popular training course to take advantage of the latest Microsoft Advanced Analytics technology and re-launched it as Marketing Analytics using Microsoft R and Azure. We have just announced public training dates and are looking forward to giving the course in the week 3-7 July 2017. This is a live, instructor-led course in an online classroom environment. There are class times to suit everyone; participants in Middle East and Asia register here for live classes 08:00-12:00 London time while participants in North and South America register here for classes 10:00-14:00 New York time. Please see the listings for additional time zones. This course has consistently achieved 100% positive promoter scores both on recommending the course and recommending the instructor.
What is the value of a good customer experience? From decades of experience, we usually quote around 20% EBITDA growth for companies who have a strategic focus and strong execution. However, almost everyone has low-hanging fruit in this area which can be harvested easily, as in this case study which delivered 5.5% growth. Nothing wrong with taking an initial tactical approach, prove the benefits, pocket the money, and then decide how to move forward.