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Global Insights on Succeeding in the Customer Experience Era

Global Insights on Succeeding in the Customer Experience Era. March 2013 Michel Van Woudenberg, Vice President, CRM, Asia Pacific @ macwoody. Your Customers Are Buying Like This…. NEED / RESEARCH. SELECT. PURCHASE. RECEIVE / USE. MAINTAIN / RECOMMEND. WEB. Order Online.

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Global Insights on Succeeding in the Customer Experience Era

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  1. Global Insights on Succeeding in the Customer Experience Era March 2013 Michel Van Woudenberg, Vice President, CRM, Asia Pacific @macwoody

  2. Your Customers Are Buying Like This…. NEED / RESEARCH SELECT PURCHASE RECEIVE / USE MAINTAIN / RECOMMEND WEB Order Online Order Online Comparison Site CONTACTCENTER Chat Call for Info about Add-on Accessories Change Order Visit Retail Store IN-STORE Pickup Local Store Kiosk Browse Catalog CATALOG Select Product Product Info MOBILE Web Search Email Order Confirm w/Rec EMAIL Ask Facebook FriendsFor Recommendations SOCIAL Ask for Help on Community Chat Room Tweet AboutPurchase Experience Read Reviews

  3. But You Are Probably Organized More Like This Store Call Center Web Social Direct Mobile Pricing Pricing Pricing Pricing Pricing Pricing Offers Offers Offers Offers Offers Offers Products Products Products Products Products Products Orders Orders Orders Orders Orders Orders Customers Customers Customers Customers Customers Customers

  4. So Your Customer Looks Like This…. “Why can’t I find a installer that has experience for this product ?” “When I go online, I can’t easily find what I need. It’s too complicated to find what’s best for me.” You.com Sales Reps Shops “Can’t your sales peoplesee my web inquiries ? The other guys always understand all my issues.” “When I clicked the “Chat Now” the agent had no idea of what I was looking at or who I was Call Center Mobile “Wouldn’t it be nice if you rewarded me for all the customers I have referred and the positive tweets I send ?” “Why did you send me an email for this product knowing I have it already ??” Social

  5. But Twitter is not the answer…

  6. Facebook is not the answer…

  7. Blogs, Wikis, Youtube, Tumblr etc are not the answer…

  8. None Of These Are Guaranteed To…

  9. Methodology • O’Keeffe & Company – an independent market research firm – worked on behalf of Oracle to conduct online interviews with 1,342 global senior executives in August and September of 2012. The sample size results in a margin of error of ±2.58% at a 95% confidence level Sample Demographics • Company Business Model: • Business to business: 21% • Business to consumer: 31% • Business to business to consumer: 16% • Business to business and business to consumer: 32% • Company Revenue: • Less than $50M: 11% • $50M-$249M: 19% • $250M-$499M: 13% • $500M-$749M: 15% • Respondent Title: • Chief Customer Officer/Customer Experience Officer/VP of Customer/Brand Experience: 18% • CEO/COO/President: 28% • CIO/CTO: 21% • VP of Customer Service/senior-level customer support executive: 13% • CMO/VP of Marketing/senior-level marketing executive: 11% • VP/senior-level executive Commerce/eCommerce, Web Experience, or In-Store Experience: 9% • $750M-$999M: 16% • $1B-$9.999B: 16% • $10B or more: 10%

  10. Methodology • The survey sample includes organizations from a wide variety of industries in North America, Latin America, Europe, and Asia Pacific Sample Demographics • Company Region: • North America: 300 respondents • Includes: Canada and United States • Latin America: 253 respondents • Includes: Argentina, Brazil, Chile, and Mexico • Europe: 325 respondents • Includes: France, Germany, Italy, the Netherlands, Spain, and United Kingdom • Asia Pacific: 464 respondents • Includes: Australia, China, India, Japan, Singapore, and South Korea • Company Industry: • Consumer Electronics/Technology • Consumer Products • Distribution • Financial Services • Healthcare • Insurance • Life Sciences • Media/Entertainment • Retail • Telecommunications • Travel • Utilities • Multiple Industries (Organizations that operate in more than one of the industries listed)

  11. CX: Global Strategic Priority with Huge Financial Stakes 93% 97% of executives state that improving the customer experience is one of their organization’s top three priorities in the next two years of executives believe that delivering a great customer experience is critical to their business advantage and results1 Executives estimate that their potential revenue loss for not offering a positive, consistent, and brand-relevant customer experience is 20% of their annual revenue, or $400M for a $2B firm 20% • Rising expectations from customers (59%) and the impact of social media on customers’ ability to broadcast good and bad experiences (37%) are the top two drivers for organizations’ focus on customer experience2 TAKE AWAY CX Can Make or Break a Business 1Those who somewhat or strongly agree 2Respondents asked to select top three

  12. The Execution Gap: Businesses Are Stuck in Idle Nearly all businesses Yet … And only … 37% 20% 91% are just getting started with a formalCX initiative Consider their CX initiative “advanced”2 wish to be considered a CX leader in their industry1 TAKE AWAY Businesses Must Act to Avoid Falling Behind 1Those who somewhat or strongly agree 2e.g., established dedicated customer experience leaders, optimizing initial projects, extending program to new channels

  13. The Perception Gap: Businesses and Customers Are Worlds Apart 49% 44% 86% 89% But … While… of execs believe customers will switch brands due to poor CX1 of execs believe customers are willing to pay for great CX1 of customers say they have switched because of poor CX2 of customers say they are already doing so2 TAKE AWAY Executives Underestimate The Risk and Opportunity 1Those who strongly agree 2According to The 2011 U.S. Customer Experience Impact (CEI) Report by RightNow (acquired by Oracle in March 2012)

  14. Social Media:A Key Driver for the Future …a significant number of organizations don’t seem to fully understand the importance of social media: 81% But … 35% DON’T have social media for sales channels believe that delivering a great customer experience today requires leveraging social media effectively1 35% DON’T have social media for customer service TAKE AWAY Catch up with Social Expectations 1Those who strongly or somewhat agree

  15. Businesses Fall Short on Delivering the Experiences Customers Want TAKE AWAY Room for Improvement in Customer Engagement 1Respondents asked to select top five areas

  16. Tech, People, and Processes Present Obstacles Some of the biggest CX obstacles are:1 Technology • People & Processes • Investments • 29% • 24% • 23% • 18% • 27% • 27% • Lack of money allocated to customer experience initiatives • Siloed organizations/ conflicting key performance indicators (KPIs)/incentives between different channels/ business units • Limitations of inflexible technology and application infrastructure • Difficulty regularly tracking performance measures and customer feedback • Don't have a consolidated, accurate, 360-degree customer view across all touch points • Siloed systems that prevent us from easily sharing information or supporting continuous processes across touch points TAKE AWAY Breakdown Organizational Silos and Address CX from All Angles 1Respondents asked to select top three

  17. Big Data and Analytics Meet CX Top Priorities:1 Planned Investments:2 On average, businesses estimate they will increase spending on customer experience tech by 18% in the next two years 22% • BI and customer analytics solutions: 31% • Integrated customer view across channels: 29% Improving the cross-channel experience • Knowledge management: 25% • Online self-service: 24% • Mobile apps: 25% • Click-to-chat option online: 21% 18% Improving the online customer support experience • eCommerce: 25% • Mobile apps: 25% • Web experience management: 25% 17% Improving the online customer purchase experience TAKE AWAY Businesses Invest to Cross the CX Gaps 1Respondents asked to select the top priority of their organization’s CX program over the next 12 months 2Respondents asked to select all the technologies their organization plans to invest in within the next two years

  18. Executives Are Missing the Mark on Measurements of Success How do you measure customer experience?1 Traditional marketing methods and indirect measurements used: Customer feedback methods used: THEAVERAGE BUSINESS USES FOUR MEASURES OF CUSTOMER EXPERIENCE Customer churn rate Average revenue per user Brand awareness Customer advocacy Market share Increase in registered users Customer effort score Customer satisfaction (CSAT) scores Net promoter score Customer experience index TAKE AWAY Industry Consensus May Offer Valuable Comparisons, Insight 1Respondents asked to select all that apply

  19. Lessons Learned: CX Success Requires Fundamental Changes Of those firms that consider their CX initiative “advanced”, the most successful projects are:1 What’s next? Today only 3% say customer journey mapping (an emerging best practice to evaluate and redesign improved customer experiences) is one of their top three most successful CX projects2 #1 #2 #3 Implementing a specific technology to improve customer service (29%) Updating company core values to include the need to provide the most appropriate customer experience to all our customers (32%) Building a training program and incentives for employees to offer a great experience (35%) TAKE AWAY CX Requires A Shift In Approach To Solving Business Problems 1Respondents asked to select top three 2According to all respondents

  20. Industries at a Glance Consumer Electronics/ Technology Consumer Products Financial Services Distribution Healthcare Insurance Potential revenue loss/opportunity cost 25% 22% 23% 18% 14% 19% Estimated growth in spending on CX tech in the next two years 19% 16% 16% 18% 14% 26% Percent that have advanced CX programs in place 23% 22% 27% 13% 16% 20%

  21. Industries at a Glance Life Sciences Media/ Entertainment Multiple Industries Retail Telecom Travel Utilities Potential revenue loss/opportunity cost 15% 27% 17% 20% 23% 16% 20% Estimated growth in spending on CX tech in the next two years 15% 18% 15% 16% 15% 16% 18% Percent that have advanced CX programs in place 14% 20% 15% 37% 16% 29% 14%

  22. Regions at a Glance North America Latin America Asia Pacific Europe Potential revenue loss/opportunity cost 21% 18% 22% 20% Estimated growth in spending on CX tech in the next two years 13% 25% 15% 19% Percent that have advanced CX programs in place 19% 20% 29% 16%

  23. WORLD’S LEADING BRANDS INVESTED IN ORACLE CX Siebel RTD ATG Endeca Inquira Fatwire CI

  24. Our Take… • Don’t Wait • Know your Customers – or Lose them • Empower Your Customer and Organization • Adapt Your Approach

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