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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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WhatisCustomerExperienceManagement?
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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WhatisCustomerExperienceManagement?
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