You know what the Holy Grail is for an analyst? It’s results data – especially financial results data. And that’s especially true for analysts who cover customer experience because all too often CX professionals don’t track – or won’t share – their results.
That’s why I’m especially pleased with what I am able to share with you today.
Last week I posted part 1 of Forrester’s customer experience Q&A with Olivier Mourrieas of E.On, one of the world's largest investor-owned electric utility service providers. Olivier will be speaking at Forrester’s Forum for Customer Experience Professionals EMEA in London on November 17 and 18, 2014, and he was kind enough to share some thoughts with us in advance of his appearance.
This week I’m posting part 2 of Olivier’s answers, in which he tells us the tangible business results that the E.On CX program has achieved.
I hope you enjoy what he has to say and I look forward to seeing some of you in London!
Q: How do you measure the success of your customer experience improvement efforts (e.g., higher customer satisfaction, increased revenue, lower costs)? And have you seen progress over time?
There are hard and soft benefits which we are continuously demonstrating:
Churn reduction: Increasing Net Promoter Score (NPS) leads to increased loyalty. This will help to stabilise the Private Household and SME customer base.
After a gorgeous long fall weekend tramping around ponds and through pastures in search of sculpture, while oohing and aahing over the upstate New York autumnal palette of greens, yellows, oranges, and reds, I got a nice welcome back to work today. My first Forrester report is live on our client site! It’s a case study on Drop, an iPad-connected kitchen scale and recipe app, which was developed by a small team based in Ireland and is currently in pre-order.
There just might be another 800-lb gorilla in the Business Intelligence market. In a year.
The popular cult book “Hitchhiker's Guide To The Galaxy” by Douglas Adams defines space as “. . . big. Really big. You just won't believe how vastly, hugely, mind-bogglingly big it is. . .” There are no better words to describe the size and the opportunity of the business intelligence market. Not only is it “mind-bogglingly big,” but over the last few decades we’ve only scratched the surface. Recent Forrester research shows that only 12% of global enterprise business and technology decision-makers are sure of their ability to transform and use information for better insights and decision making, and over half still have BI and analytics content sitting in siloed desktop-based shadow IT applications that are mostly based on spreadsheets.
The opportunity has provided fertile feeding ground to more than fifty vendors, including: full-stack software vendors like IBM, Microsoft, Oracle, and SAP, each with $1 billion-plus BI portfolios; SAS Institute, a multibillion BI and analytics specialist; popular BI vendors Actuate, Information Builders, MicroStrategy, Qlik, Tableau Software, and Tibco Software, each with hundreds of millions in BI revenues; as well as dozens of vendors ranging from early to late stage startups.
Having its root as an Igbo and YorubaNigerian proverb, “It takes a village” has come to mean that the responsibility for raising children is shared across the larger family and community. But it hasn’t stopped there. Hillary Clinton adopted this proverb as her own when she published a book on children and family values in 1995. And in May 2014, Pope Francis had a crowd of more than 300,000 school students outside the Vatican chant the saying over and over again.
This simple proverb has taken on an important meaning throughout the world, as it communicates the importance of community, cooperation, sharing, and bringing together the skills of many different parts of the community to produce the best result — the raising of a well-rounded child.
But at its core, “It takes a village” applies to more than just raising children.
In a business environment, “it takes a village” applies to how you find and then bring together the best resources to grow your business. Speaking at Salesforce Dreamforce 2014 this morning, Hillary Clinton shared her views of how organizations must do good while doing well by adopting the core values of innvation, fun and giving back to the "village" at large.
The Greek philosopher Heraclitus said "the only thing that is constant is change." Well, the CI services landscape seems to live and breath this saying. Today’s market demands are leading traditional database marketing service providers (MSPs) to deliver broader digital marketing capabilities, either through partnerships, acquisitions, or organic growth. While this trend has been unfolding for the last couple years, it shows no signs of slowing down. One of the latest examples of this activity is Alliance Data’s acquisition of Conversant for their Epsilon division. This is the latest in a series of moves by MSPs to build a bridge between the data business, digital marketing, and overall customer strategy - all key capabilities in the evolution toward Customer Engagement Agencies (CEA).
Customer Insights (CI) professionals and marketers have managed relationships with their MSPs for decades to execute conventional direct marketing campaigns. While the classic database marketing business won’t dry up any time soon, the CI pros and marketers who manage these vendor relationships are grappling with:
BT technologies are more than just the front-office systems for sales and marketing. They also include software and services for developing new products, handling and fulfilling orders, serving customers, and acquiring the human and partner resources for doing this effectively.
IT technologies will continue to be over 70% of total tech spending through 2017. Spending on information technology over decades has created a legacy of tech maintenance and operations spending, and firms still need to keep these core systems running.
This is my fifth time attending Oracle OpenWorld in as many years. The show, held on September 28-October 2 in San Francisco, drew a large crowd this year, topping 60,000 attendees from over 145 countries. I spent my time at the CX Central conference-within-a-conference, dedicated to Oracle's Sales, Service and Marketing cloud. I went to high-level vision sessions, road map sessions, and customer testimonials. I also spent a lot of time talking to systems integrators that have recently deployed these solutions. My impressions of this year are mixed. Here is why:
There was an over-emphasis on technology as opposed to the business value that Oracle’s CRM solutions deliver. The banners and posters were about infrastructure, platform, cloud. Customer case studies were about “30% less customization; “20% greater efficiency; 40% faster.” What I found missing was the business value for the customer, articulated in better experiences that impacted top-line revenue.
Yesterday, Symantec announced that it too was ordering up a bowl of the organizational strategy du jour and splitting itself into two independent, publicly traded companies, one focusing on security and the other on information management.
I have doubts whether simply splitting in two can spark innovation after nine years of gobbling up gargantuan (I still miss you, Veritas) and small vendors alike with little to show for it but operational indigestion. But I suppose anything is better than changing CEOs as frequently as I change the oil in my car and standing by and watching CISOs turn to completely new security brands as their trusted advisor. And there is this little matter of how mobile, social, cloud, and big data are completely transforming not only the way digital businesses compete and serve their customers but how technology vendors themselves deliver their own solutions and engage with their clients -- and Symantec isn't leading the charge in any of those market shifts.
Here’s an objection I sometimes hear when I talk to people about how improving customer experience can boost business performance: “Sure, it sounds great for glam industries like automotive or fashion. But I sell widgets.”
Okay, it’s fair to say that the business value of CX is more obvious for industries that advertise in magazines with slick, glossy paper. But the reality is that focusing on CX can also do a lot for less sexy industries.
That’s why we invited Olivier Mourrieras of E.On to speak at Forrester’s Forum for Customer Experience Professionals EMEA in London on November 17 and 18, 2014. E.On is one of the world's largest investor-owned electric utility service providers. And even though utilities don’t exactly captivate their customers, E.On has made huge, measured advances in the customer experience it provides, resulting in corresponding improvements to business results.
Olivier recently responded to our questions about what E.On has been doing and how it’s evolved. He gave us such amazingly detailed insight that I’ve broken his answers into two parts, with Part 1 appearing below.
I hope you enjoy what he has to say and I look forward to seeing some of you in London!
Q: When did your company first begin focusing on customer experience? Why?
Prior to 2009, customer focus had not been a crucial part of E.ON’s strategy. Customer satisfaction scores were often lower than market average scores across the group resulting in high customer churn.
October has arrived and it's time for what is becoming a fan-favorite series here at Forrester: the Security & Risk Analyst Spotlight Podcast featured in our bimonthly newsletter. This month, we're featuring 8-year Forrester veteran and analyst Heidi Shey, one of our leading analysts on data security and privacy. You'll hear some great insights from Heidi on clients' top challenges, surprising research findings, and upcoming research and vendors to watch. To download the MP3 version of the podcast, please click Read more