© 2014 Pegasystems Inc. 2
Speakers
Don Peppers Founding Partner
Peppers & Rogers Group
Ed Burek Director, Product Marketing
Pegasystems Inc.
Ed Burek has Product Marketing responsibility for Pega's Next-Best-Action solution. He has supported clients in the adoption and optimization of marketing strategy and web 2.0 technologies while addressing the needs of analytics.
Recognized for more than 20 years as one of the world's leading authorities on customer-focused business strategies, Don Peppers is an acclaimed author and a founding partner of Peppers & Rogers Group, the world's premier customer-centric management consulting firm. The Times of London has listed Don among their "Top 50 Business Brains," Accenture has included him in its global list of the "Top 100 Business Intellectuals," and the U.K.'s Chartered Institute for Marketing put him on its list of the "50 most influential thinkers in marketing and business today. " In 2013, Don Peppers and Martha Rogers were inducted into the Direct Marketing Association Hall of Fame.
© 2014 Pegasystems Inc. 3
The Future of Customer Engagement CONVERSATION IS KEY
© 2014 Pegasystems Inc. 4
The Future of Customer Engagement CONVERSATION IS KEY
How do you accomplish this with customers so empowered?
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Every 20 years, computers get a
thousand times faster and cheaper
Moore’s Law
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Technology changes the dimension of competition
Product-Centric Competition
Share of
customer
Market share
Customer
Needs
Satisfied
Customers Reached
Relationships
are required
Cu
sto
mer-
Centr
ic C
om
petition
© 2014 Pegasystems Inc. 7
“With a single solution, we have lowered retention costs and
retained more customers, all while average call handling times
have held steady, even going down in some instances.”
Alex Ford
Customer Base Director
BUSINESS GOALS
REDUCED MONTHLY CHURN RATE TO
1.2% FROM OVER 2.0%
DECREASED SUBSCRIBER
RETENTION COST
Increase revenue per customer
Create a unique business case for every
retention interaction
Radically improve retention rate for high-
value customers
Provide a consistent experience across
all channels
RESULTS
4% ADDITIONAL RETENTION of their most valuable customers each month
INCREASED CONVERSION RATE of customers that accept retention offers
DRIVING AN INCREMENTAL £24 MILLION IN ANNUAL OPERATING MARGIN AT UK’S LARGEST TELCO
© 2014 Pegasystems Inc. 8 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group.
“ZMOT” – The Zero Moment of Truth
A customer Googles a product to compare
prices while standing in the store aisle
ZMOT
Source: Winning the Zero Moment of Truth – ZMOT (2011)
A customer scans reviews of a product while sitting in a car
in the store’s parking lot
ZMOT
A customer checks the opinions of social-network friends about a
store before choosing which one to visit
ZMOT
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Getting an online referral from a friend
Becoming a friend or follower of a brand
Reading blogs where the product was discussed
Seeing the brand mentioned on a social networking site like Facebook
9
ZMOT
Online social activities tracked by
Google's research:
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In 2010 the average shopper consulted
5 sources
But by 2011 they consulted 10!
ZMOT
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In 2010 just 19% of shoppers checked
social sources
But by 2011 37% did!
ZMOT
© 2014 Pegasystems Inc. 12
Your customer wants to have a conversation
DO YOU?
How easy is it to find a phone number and actually make a voice
connection?
What % of voice contacts are preceded by unsuccessful online
inquiries or issues?
Does each interaction with a customer reflect what that customer has
already told you?
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Competence
Customer trust has always been
important
Good Intentions
© 2014 Pegasystems Inc. 14
Customer trust has always been
important
Competence
Good Intentions
Doing things right
Doing the right thing
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Zuckerberg’s Law
Every 20 years,
we interact a
thousand times
more
with others
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And the more we interact, the more
trust we demand
We want our interactions to be more
efficient
Interactions generate transparency
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“Digitally Forward” customers
have higher standards!
Proactive trustworthiness
It’s no longer enough simply to refrain from
cheating or deceiving customers
“Trustability”
Digitally forward customers demand:
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means proactively protecting a customer’s interest even
when it costs money
Extreme Trust
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Doing things right
Doing the right thing
Proactively
Trustability means:
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Extreme Trust comes from empathy
“Treat the customer the way you
would want to be treated if you
were the customer.”
Applying the “Principle of Reciprocity”
…and for a company, empathy is the ultimate form
of customer insight
Empathy is a deeply human instinct…
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Show empathy for others, and get more empathy in return
After the first Persian Gulf War (1991)…
USAA proactively sent out
refunds for time spent abroad
by customers
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USAA proactively sent out
refunds for time spent abroad
by customers
>2500 customers
mailed their refunds
back!
After the first Persian Gulf War (1991)…
Show empathy for others, and get more empathy in return
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Optimize Marketing with
Next-Best-Action
Strategies
Start Small and Prove it!
Personalize in Real-
Time, Across
Channels
Continuously
Monitor, Control,
and Adapt
Measure
Learn
Simulate
Unparalleled Marketing Agility
Closed loop marketing that increases operational effectiveness, reduces time-to-value, and drives massive returns.
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Manage marketing
effectiveness across all
channels, segments, and
products
Continuously Monitor, Control, and Adapt
Optimize strategies based
on detailed what-if
simulations
Adapt and learn from changing customer behavior
Next-Best-Action
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x Profiting from a customer’s error
x Failing to notify
x Tricky pricing or renewal terms
Trustability Previously acceptable marketing practices
will soon become “untrustable”
Because of rising customer expectations
with respect to
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2013 study of 58,000 consumers
Welcome to The Age of Transparency
70% of consumers trust the recommendations of their friends
~50% trust online recommendations from complete strangers
Just 10% of consumers trust advertising
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“Once the trust goes out of a relationship, it’s
really no fun lying to them anymore.”
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Transparency is like a disinfectant
for businesses and governments.
It will clean things up, but first it’s
going to sting like hell.
© 2014 Pegasystems Inc. 30
Linda Kaplan Thaler, CEO, Kaplan Thaler Group
Screw up today, and the “news”
will be permanent
can’t
un-Google
“You
© 2014 Pegasystems Inc. 31
Grant Robertson, blog post, May 1, 2007
“Dude, you can't take something bad off the Internet. That's
like trying to take pee out of a swimming pool.”
© 2014 Pegasystems Inc. 32
How does Big Data help with Digitally Forward Customer?
Marketing
CRM Cloud apps
SOCIAL
Sensors Mobile
Sales Customer Svc
Chat Ops Suppliers Customers
ERP
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Customer
Desirable
Next-Best-Action makes the conversation trustworthy
© 2014 Pegasystems Inc. 34
Customer
Desirable
Economically
Viable
Brand
Identifiable
Operationally
Feasible Courtesy Karen Larrimer, CMO, PNC Bank
The sweet spot: Next
Best Action
Next-Best-Action makes the conversation trustworthy
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Customer
Desirable
Economically
Viable
Brand
Identifiable
Operationally
Feasible Courtesy Karen Larrimer, CMO, PNC Bank
The sweet spot: Next
Best Action
Next-Best-Action makes the conversation trustworthy
The best kind of customer
experience: Frictionless
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Customer
Desirable
Economically
Viable
Brand
Identifiable
Operationally
Feasible Courtesy Karen Larrimer, CMO, PNC Bank
The sweet spot: Next
Best Action
Valuable
Reliable
Relevant
Trustable
Next-Best-Action makes the conversation trustworthy
The best kind of customer
experience: Frictionless
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Summary
Digitally Forward Customer is empowered and will
continue to gain more power
The Zero Moment of Truth can occur anyplace at
anytime
Empathy and “Trustability” are keys to conversing with
the customer
Next-Best-Action enables you to have a “Frictionless”
customer relationship
© 2014 Pegasystems Inc. 38
Thank you!
Don Peppers Founding Partner
Peppers & Rogers Group
Email: [email protected]
Twitter: @donpeppers
See all Don’s LinkedIn posts here:
bit.ly/donpeppers
Ed Burek
Director, Product Marketing
Pegasystems
Email: [email protected]
Twitter: @edburek
http://www.linkedin.com/in/edburek
© 2014 Pegasystems Inc. 39
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Questions