After we packed up the kids and drove three hours to Disney World in Orlando, I sat up until almost 2 o'clock this morning reading the media coverage about Disney's soon-to-be-launched Next Generation Experience. While the blogosphere has been muttering about this reported billion-dollar initiative for a few years, the story took off early this year when the NY Times announced its impending launch. Unfortunately, most of the media coverage centered on the proverbial elephant in the room -- privacy. Congressman Ed Markey exemplified the kneejerk reaction, demanding Disney CEO Bob Iger answer questions that were already addressed in the company's FAQs. If we were in Ireland or England, I'd say that Congressman Markey was taking the mickey!
The only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, connecting with, serving, and delighting customers. But as organizations strive to succeed in the age of the customer, business and IT professionals responsible for customer-facing processes still struggle with how to define CRM strategies, re-engineer customer-facing business processes, acquire and deploy the appropriate supporting technologies, and lead and sustain the necessary organizational changes.
Technology is radically changing your customers and your business. So how do you cope with digital disruption? The CRM playbook is a practical guide that focuses our research and recommendations to help you: discover opportunities; plan for success; take action; and optimize your customer relationships. Read the CRM executive overview and companion reports to take advantage of research, methodologies, and tools to guide you through these critical phases:
The 2013 CXi is based on research we did in Q4 2012. It reflects how consumers perceived their experiences with 154 brands across 14 industries. If you’re not familiar with the methodology, or just want a refresher, check out “Executive Q&A: Forrester’s Customer Experience Index, 2013.” We put all the nitty-gritty details in there.
But what about the big picture? Of course, there are winners and losers (we name them in the report.) There is a tale of two banks — one whose score jumped up by 11 points versus last year, and another whose score plummeted by 24 points.
Through it all, though, one common theme leapt out:
In 2013, it’s all about value.
Many of the top brands this year, including high-scorer Marshalls, deliver solid customer experience at a manageable price. We saw this dynamic in the hotel space, where Marriott’s Courtyard brand beat out all other hotel brands. And we saw it in the airline industry, where perennial favorites Southwest Airlines and JetBlue Airways once again swept the competition with their combination of great experience at a great price.
How do you choose the right customer service solution for your needs? It’s always best to take a systematic approach: (1) benchmark your current operations using our Assessment Framework to pinpoint areas for opportunity and (2) pragmatically investigate options to source your missing capabilities. Options range from repurposing technologies used elsewhere in your company, to outsourcing, to purchasing suites or vendor point solutions. I recommend using the following process to step through the choices:
Step 1: See if your company is using similar technologies that you can leverage. Web self-service, mobile, social, email, and chat solutions, for example, are often deployed by sales and marketing. If you choose to leverage existing technologies, make sure that they can scale and operate at the level of performance and reliability to support customer service operations. Also make sure that the experience that the customer receives when interacting with these technologies is consistent across functional organizations.
Step 2: Consider outsourcing. If there are no existing technologies that you can leverage, consider outsourcing this entire capability, or perhaps a portion or all of your customer service operations, to a third-party organization. In a recent Forrester survey, we found that 10% have already outsourced some or all of their operations or are very interested in doing so. Outsourcing can help reduce cost of operations, but can also improve the quality of services delivered and allow you to focus on core business activities that are mission-critical to your company.
Today, Oracle announced that it will acquire Eloqua, a marketing automation firm. Oracle positions the deal as a comprehensive customer experience cloud that enables business to create an integrated, end-to-end process of marketing, sales, service, and support. I look forward to insight from my colleague Lori Wizdo on what the Oracle-Eloqua deal means for a marketing and sales alignment.
I think the deal has larger ramifications for the future of all customer relationship marketers and marketing vendors. Here’s my take on the deal:
The CRM solution landscape has experienced considerable change, including significant vendor consolidation and a rapid rise in the popularity SaaS solutions — often referred to as "CRM in the cloud." Organizations adopt SaaS CRM solutions because of low upfront costs, good usability, proven scalability, better flexibility, and faster time-to-value compared with traditional on-premises applications. Forrester surveys indicate that nearly 70% of organizations are interested in, or are currently using, SaaS solutions for horizontal business processes such as CRM and HR.
But clients tell me they cannot capture the promised benefits if they do not have certain prerequisites within their own skill sets, such as the right developer talent and governance model to work in an agile, iterative approach that leading organizations use to be successful. This is not your father’s CRM anymore, so don’t make these mistakes:
Today, the gap between customers’ expectations and the service they receive can be huge. There’s an explosion of communication channels that customers use—voice, digital channels like email and chat, and social channels like Facebook and Twitter. There’s also an explosion of touchpoints, like smartphones, tablets, and self-service kiosks. Customers expect efficient, consistent, personalized service experiences across these channels and touchpoints.
There’s no denying that mastering the service experience is hard to do. Yet focusing on leveraging digital channels is one way customer service leaders can move the needle on customer experiences.
My customer experience with T-Mobile UK (or was it EE — Everything Everywhere, the joint venture between Deutsche Telekom and France Télécom in the UK?) last Friday was so shocking — and in some cases ridiculous — that I had to share it and highlight the potential customer experience parallels with IT service desks.
For balance: I’ve been a T-Mobile customer since February 2011 and its actual mobile service has been pretty good to date. I might whinge a little that availability seems to have dipped post–transition to EE (and I have no idea why) but that is probably just me imagining things. However, I didn’t imagine this . . .
So what happened?
I bought a second-hand phone and when I put my partner’s SIM in it (to test it), it registered on the EE network but I couldn’t send or receive calls or text; however, I could use mobile Internet. So I thought: is this a service provider, software, or hardware issue? After a quick but unsuccessful “Google” — always my first port of call for support these days — I realized that I needed some expert advice. As the SIM was “nearly working” I decided that I would call EE first.
It started well-ish, taking three minutes to get through the interactive options to a point where I could hear the now mandatory “we are really busy so you might be wasting your time on hold for a while” message. Thankfully I think it was only a minute or so. Then the “helpful” Patrick was available to help. And this is where the relationship started to break down . . .
Why is the system of record, not the customer, always in the right?
Well if you're going to make a dramatic about face from total dismissal of cloud computing, this is a relatively credible way to do it. Following up on its announcement of a serious cloud future at Oracle Open World 2011, the company delivered new cloud services with some credibility at this last week's show. It's a strategy with laser focus on selling to Oracle's own installed base and all guns aimed at Salesforce.com. While the promise from last year was a homegrown cloud strategy, most of this year's execution has been bought. The strategy is essentially to deliver enterprise-class applications and middleware any way you want it - on-premise, hosted and managed or true cloud. A quick look at where they are and how they got here: