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Customer Experience Delivering on the brand promise Jason Woolley Chief Digital Officer | KPMG Vietnam & Cambodia
Customer Experience Delivering on the brand promise
Jason Woolley
Chief Digital Officer | KPMG Vietnam & Cambodia
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Businesses face unprecedented levels of global economic, technological and consumer behaviour change.
1900
Age of manufacturing Mass manufacturing makes
industrial powerhouses
successful
— Ford
— Boeing
— GE
— RCA
1960
Age of distribution Global connections and
transportation systems make
distribution key
— Walmart
— Toyota
— P&G
— UPS
Age of information Connected PCs and supply
chains mean those that control
information flow dominate
— Yahoo
— Comcast
— Capital One
1990
This is the age of the customer
Age of the customer Empowered buyers demands
new levels of engagement and
personalisation
— Uber
— Airbnb
— Tesla
— Apple
2010
Beyond
Source: Forrester Research Inc.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Democratisation of brand reputation by social networks
Renegotiation of trust
The shift to a mobile first and
video first world
Customers are firmly in charge
creating buyer markets
Instant access
Accelerated innovation
Customer power
Death of complexity
Channel shift
Democratisation of communication
Empowered customers
demand levels of new
speed and innovation
Instant, global access
to information and
options
Collapse in confidence in
institutions and need for privacy
Provide simplicity while
delivering advanced
products and services
The new operating environment for brands
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The rewards of a customer centric business
39.8% year-on-year
improvement in average
customer profit margin
compare to -7.5% for
laggards
Best in class companies
achieved 40.4% year-on-
year sales increase, instead
of the average of -6.1%
Shoppers who buy both
in-store and online have a
30% higher lifetime value
than those who use only
one channel
Increasing Profit Margin
Higher annual revenues
Greater customer lifetime value
Sources: Aberdeen Group January 2018, Google
84% of customers
retention, compared to
58% for average companies
Better customer retention
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Innovation
Focus
Excellence
Honesty
Willingness to change
Whose mission statement contains the following themes
Breaking down Apple’s mission statement (business philosophy) and this quote
from Tim Cook:
We believe that we’re on the face of the Earth to make great products.
We believe in the simple, not the complex.
We believe that we need to own and control the primary technologies behind the
products we make.
We participate only in markets where we can make a significant contribution.
We believe in saying no to thousands of projects so that we can really focus on
the few that are truly important and meaningful to us.
We believe in deep collaboration and cross-pollination of our groups, which allow
us to innovate in a way that others cannot.
We don’t settle for anything less than excellence in every group in the company,
and we have the self-honesty to admit when we’re wrong and the courage to
change.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
“There is no other brand in the world that epitomizes customer experience best practice like
USAA (United Services Automobile Association)”
KPMG Nunwood
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Striking the right balance between customer expectations and experience is critical to achieve profitable growth
Economic value is lost when
experience significantly exceeds
expectations resulting in higher than
necessary operating costs.
Customer expectation
Experience delivered
+1x
-2x
Economic value is lost
when experience fails to
meet expectations
resulting in lost revenue
and share.
When companies over or under invest or deliver on customer expectations, profit suffers.
Source: KPMG International
Economic value is
maximized when customer
expectations and experience
are in alignment.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Understanding your customer’s life stages & events that influence their behaviors
Source: KPMG 5My’s report 2018
0 10 20 30 40 50 60 70 80 90
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Our mission is to help our clients achieve profitable growth
OUTSIDE-IN PERSPECTIVE INSIDE-OUT PERSPECTIVE
PROFITABLE
OPERATIONS
REPLENISH
DESIGN
PLAN
SOURCE
BUILD
DISTRIBUTE
Marketplace Front Office Middle Office Back Office
VALUE
CAPTURE
REVENUE
COST
PROFIT
TAX
CASHFLOW
BALANCE
SHEET
LEARN
VALUED
RE-ENGAGE
BUY
USE
CONNECTED
SATISFY
ATTRACT
PROFITABLE
GROWTH
EXPAND
ACQUIRE
SERVE
ENABLE
RETAIN
My experience
Example: Customer experience
management
Example: Product / service /
lifecycle management
Example: Financial
management
My evaluation Customer value
management
Supply chain
management
Value based
management
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
We help clients to understanding their customer’s personas and their journeys…
Customer journeys
Identifies all touch points, pain points and moments of
truths
Persona grid
Overview of the client segments and their importance
Empathy maps
Identifying the behavioural motivations of the
customers
Customer lifetime value High Low
Segment size Segment size Small Big Small Big
Assis
tan
ce
ne
ed
ed
A
ssis
tan
ce
ne
ed
ed
Low
Low
High
High
Fle
xib
ility
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
……and really walking in the shoes of a customer
Supporting visuals – what the client sees
during the journey
Expectations – what the client expects
Personas – the types of clients interacting
with the company
Channels – the communication tools
6 Pillars – KPMG developed framework
identifying six key dimensions of client
interactions
Pain points and moments of truth – where
the client’s expectations are not met
Emotional journey – the emotions the client
experiences
Touchpoints - where clients interact with the
company
Feelings and thoughts – the clients
reflections throughout the journey
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Is it possible? (Head of KPMG Nunwood)
…expects the biggest driver of
improved customer experience to
come from within marketing teams
themselves.
“Organisations are beginning to
realise old silos don’t lend
themselves to treating the customer
well. Therefore building
organisations by customer journey
will be the most significant shift.”
based on 10,000 UK consumer brand opinions across a variety of metrics
including personalisation, integrity and empathy
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Customer Experience has a massive impact on revenue growth
Take outs
The age of the empowered Customer is an opportunity for Marketers
Marketers – who represent the customer – have to “sit at the top table”
© 2018 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese limited liability companies and member firms of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Digital Transformation
Customer Centric
Organization
Thank you!
