Companies that were founded on customer obsession — like Southwest Airlines, Vanguard, and USAA — derive significant financial benefits as a result. That’s because a customer-obsessed culture helps customer experience professionals deliver high-quality, on-brand, consistent experiences that drive loyalty. Fortunately, even companies that weren’t founded on customer obsession can transform their cultures and see big returns on their efforts. For example:
Tom Feeney, Safelite Autoglass’s chief executive officer (CEO), launched the company’s customer experience transformation in 2008. Since then, the firm has seen NPS, employee engagement, revenue, and profit metrics improve substantially.
Cleveland Clinic embarked on its patient experience transformation in 2009. Since then, it’s seen significant improvements in patient experience ratings, employee engagement scores, and business and operations metrics like number of patients admitted and average wait time to see a doctor.
During the internet bubble of 2000, many of us predicted E-delivery of business content would reach a 40% to 50% adoption within a few years. Here we are now almost 15 years later and it still hovers around 20%. How can this still be true in 2014? Enterprises want print to become a secondary channel because it's less expensive. They form committees to ensure output from core systems is consistent, compliant, and adds to the customer experience. Stymied by low adoption rates — except in specific demographics, such as online brokerage and banking — many enterprises have lost enthusiasm for aggressively prioritizing digital adoption. And it's hard to blame them.
Unfortunately, we are the problem. We do not link paper usage with carbon contribution, don't trust our institutions, or are just are afraid of missing a payment unless the bill lands in the mailbox. Despite the plethora of smart devices, pervasive video, and social media that allow us to interact easily with customer service agents, pass information digitally, and complete business transactions on-the-run, we still hold on to paper delivery. I discuss the reasons for this here and what firms can do about it.
In response to recent tragedies, many commentators have suggested requiring every police officer to wear a video camera and microphone at all times. Some activists even suggest that these videos be publicly live-streamed for maximum accountability. That’s not necessarily a bad idea, despite some technical, budgetary, and legal hurdles.
Other commentators have pointed out that videos aren’t as objective as people think. They are open to interpretation, and risk inflaming opinions on both sides without solving anything. But that’s not the biggest problem with videos. Their biggest weakness is this:
Videos can’t provide the systematic, standardized, quantifiable feedback that we need to understand people’s own perspectives on their everyday experiences with the police.
That’s why police departments should start acting more like the best companies, and measure their customers’ experiences. There are several key tools for doing this, and one of the most important is a customer experience survey. We all get these surveys – they ask about how well the company met our needs, how easy it was to work with, how we felt during the process, how likely we are to say positive things about it, etc.
Retailers use these surveys, as do investment firms, hotels, nonprofits, and every other organization that wants to understand what its customers think and feel, and uncover the drivers of great experiences. If we can easily rate the people who deliver food, sell cars, and hook up TVs, why can’t we do the same for the people who carry guns, write tickets, and make arrests?
Tomorrow, Apple will reportedly unveil its wearable device, widely dubbed "iWatch" (though we don't yet know for certain what Apple will actually call the device). I'll be at the event in person along with a number of Forrester analysts. In advance of the event, my colleague James McQuivey and I have released two new reports -- one targeted at CMOs and one targeted at I&O professionals -- to preview what we think this release will mean.
We've been thinking about the ramifications for several months, though we held the report until right before the event. I've been writing about wearables for well over a year, and back in February I authored a column for ComputerWorld in which I laid out what we would hope to see in the perfect smartwatch. Some of the elements of a perfect smartwatch I emphasized then were:
I had the good fortune of moderating a panel on the state of digital business at the Chief Digital Officer Global Forum in Singapore yesterday morning. The event showcased a who’s who of digital business leadership in the region, including my panelists Veena Ramesh of Johnson & Johnson, Jerry Blanton of Citi, and Veronique Meffert of Great Eastern Life.
Organizational issues are the greatest hurdle. There was not a single dissenting voice on the fact that organizational challenges represent the biggest impediment to digital business progress. The greatest organizational challenges are functional silos, business unit resistance, a lack of clear guidance from the CEO, rigid backward-looking mindsets, and a shortage of the skills needed to drive change. One approach — shared by Rahul Welde of Unilever — is to drive “digital experimentation funds” and “foundries” to drive co-creation innovation.
Media command centers are becoming critical marketing assets. Both representatives from Unilever and Philips spoke of the critical role that media command centers now play in their marketing campaigns. In the case of Philips, I was surprised to learn that its social media command center in Singapore employs 200 people — and that it is planning for expansion!
By all accounts, we’re approaching a new order of integration between technology and medicine. Real-time medical diagnostic data obtained from our mobile phones will soon be integrated directly into our electronic medical records where clinicians can use the data to make more-accurate (and potentially dynamic) treatment plans. Hospital staff can communicate and react to changing patient conditions faster and with less disruption to the patient experience than ever before, thanks to increasingly integrated mobile messaging systems and other mobile applications (for both the patients and clinical staff).
Applying big data analytics to PHI promises to improve patient outcomes and lead to more efficient —and less costly — patient care. It’s hard not to feel a level of excitement as this convergence of healthcare, mobile technology, and big data progresses at an accelerated rate. However, with all of this new patient data being collected by insurance payers, medical providers, and third-party services, healthcare employee endpoints have become an especially vulnerable source of data loss.
■Healthcare records are five times as likely to be lost due to device theft/loss.¹ If you’re a CISO at a healthcare organization, endpoint data security must be a top priority in order to close this faucet of sensitive data. Consequences will increasingly be more than just a mere slap on the wrist with fines, as consumers fight back.
The frenzy over Apple’s formal launch into the digital wallet space has reached a fever pitch. There is no shortage of speculation around the widely anticipated “iWallet” – and for good reason. Apple has a slew of compelling assets to leverage for its wallet, like an existing consumer base with roughly 800M cards on file, Passbook, iTouch, iBeacon, and more. It also has a unique track-record of entering existing categories with elegantly designed solutions that redefine, then dominate -at least for a time. However, we can’t ignore the fact that the mobile wallet graveyard is littered with elegantly designed solutions that failed to take off. Case in point: Square Wallet..
When it comes to digital wallets “…build it and they will come…” simply does not hold true. The challenges of Google Wallet and Visa’s V.me are two more familiar examples. To be clear - I do expect that over time Apple’s mobile wallet will have greater success than Square Wallet, Google Wallet, or V.me. But an elegant user experience won’t be enough to do it. Merchants will determine whether Apple’s mobile wallet lives or dies.
Digital Wallets Require Scale, And Merchants Control The Levers At Checkout
Today Salesforce.com offered a formal update on its Salesforce Wear offering (which I wrote about at its release here). Salesforce Wear is a set of developer tools and reference applications that allows enterprises to create applications for an array of wearable devices and link them to Salesforce1, a cloud based platform that connects customers with apps and devices.
Salesforce’s entry into the wearables space has been both bold and well-timed. Salesforce Wear constitutes a first mover in the wearables platform space; while Android Wear offers a platform, it only reaches Android Wear based devices – unlike Salesforce Wear, which operates across a wide array of wearable devices. While it’s early to market, it’s not too early: Enterprises in a wide array of verticals are leveraging wearables worn by employees or by customers to redesign their processes and customer experiences, as I have written.
What lies ahead for the retail store? Yesterday, Forrester published a report that predicts the answers to key questions about the future of the retail store: Which digital technologies currently on the periphery of the store environment will make the leap to the sales floor? How will retailers know which technologies have potential and which will remain gimmicks?
In the report, we outline the utility and predicted chronology of several technologies, including:
Proximity technologies. Retailers will know when and where an associate is needed, by whom, and for what purpose.
Wearable technologies. Associates will access the relevant data to provide optimum customer service with minimum intrusion.
Facial scanning technologies. Retailers will know their in-store customers’ histories, preferences, intentions, and needs and will cater the store experience to them.
Smart countertops. Retailers will embrace consumers’ propensity to do product research while shopping in-store and enhance the utility and experience at the same time.
3D printing. Retailers will make the inventory they need on-site or once it’s been purchased.
For more on Forrester’s take on the usefulness of these and other technologies, and to see our predictions of when we’ll see them enter the retail store, see the report (client access required).
Which technologies do you think will realistically make it into retail stores of the future?
Following Alibaba’s announcement that it will list on the New York Stock Exchange, global eBusiness professionals are paying closer attention to the Chinese Internet giant, wondering what impact it will have on their business. For those who need to get up to speed on the company, here is a preview of Forrester’s upcoming report on Alibaba, which summarizes its development history, revenue streams, business expansion, and the impact it will have on digital services business value chain:
Alibaba draws its revenue streams from the ecosystem around its eCommerce platform. According to Alibaba Group’s F-1 filling, the main businesses for the Alibaba Group include B2B (168.com and alibaba.com), C2C (Taobao.com), B2C (Tmall.com, Juhuasuan.com and AliExpress.com), and digital services. Alibaba's revised filing from August 2014 indicates that it handled more than RMB 1.8 trillion (about $296 billion) of transactions for 279 million active users across its three Chinese online marketplaces in 2013. Over the past 15 years, Alibaba has built an ecosystem of buyers, sellers, third-party service providers, and strategic alliance partners around its platform. By leveraging buyer and seller data from this ecosystem, Alibaba has created a data analytics product that gives a complete view of a customer at any phase of their purchase journey, resulting in a very successful marketing and commerce business that generates significant revenues.