Telefónica Digitizes Its Operations In Service Of The Customer

Fred Giron

With Dan Bieler

Like many organizations, Telefónica is going through a digital transformation. Our new case study “Telefónica Digitizes Its Operations In Service Of The Customer” investigates the approach that Telefónica has taken to prepare for digital transformation, including the impact of its transformation strategy on its customer experience, its operational setup, and its organizational transformation. Here are three key insights:

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Telefónica Digitizes Its Operations In Service Of The Customer

Dan Bieler

With Fred Giron

Like many organizations, Telefónica is going through a digital transformation. Our new case study “Telefónica Digitizes Its Operations In Service Of The Customer” investigates the approach that Telefónica has taken to prepare for digital transformation, including the impact of its transformation strategy on its customer experience, its operational setup, and its organizational transformation. Here are three key insights:

  • Collaboration between IT and business on customer journeys results in a qualitative dialogue. Telefónica’s CIO office no longer has a technology discussion with business leaders. Instead, they have a debate about business outcomes.
  • “Doing” matters more than “talking” about digital transformation. Telefónica’s CIO office has not tried to sound smart about digital transformation. It does not talk a lot about cultural transformation. Telefónica’s CIO office wants the culture change to be visible rather than intellectual.
  • Cultural issues are becoming more important as the digital transformation evolves. Telefónica has communicated, in detail, the need for and the approach to digital transformation to local operations as well as to all the channels to get business buy-in.
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The Data Digest: Mobile Phone -- Compass, Guide, And Connector

Anjali Lai

I’ve spent the past few weeks traveling around Europe, and during my trip, I became keenly aware of how much I rely on my phone to connect me with the physical world – especially when navigating unfamiliar streets. But as I strolled through major cities and charming countryside towns, I passed groups of locals and tourists – some with physical maps, others following directions dictated by their personal devices. I began to wonder: Do consumers around the world rely on digital navigation differently?

According to Forrester Data’s Consumer Technographics® data, mobile geo-location behaviors do, in fact, vary by country. For example, more than six in 10 metropolitan Argentinian travelers frequently use their mobile phones to look up directions and maps, compared with only a third of German travelers:  

But like many globetrotters, while I count on my mobile phone’s navigation abilities, I also enjoy using travel to “unplug.” I make sure I don’t map out every piece of my itinerary but allow for spontaneous discoveries. Mobile apps like Here We Go and TripIt have developed loyal users because they provide specific, contextual real-time data to solve quick pain points without distracting from the adventure overall.

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Congrats On Your New Car! But Before You Go . . .

Danielle Travaglini
If you’ve ever bought a car from an auto dealership, this story might ring true for you.
 
After weeks of test driving, researching, and debating prices, I finally settled on the exact car to buy. I felt relieved to make this decision and couldn’t wait to drive my new ride home.
 
But there was just one thing left to do: meet with the dealership’s “finance guy” to finalize everything. What should have been a quick and painless interaction with a dealership employee turned out to be uncomfortable and maddening. The employee was extremely pushy, attempting to use scare tactics to sell me additional warranties and insurance. I politely declined these numerous times, only to have my repeated “no, thanks” ignored and refuted with condescending comments. After begging over and over to simply sign my paperwork so I could leave, I managed to extract myself from this employee’s grip, feeling exhausted, annoyed, and disrespected to the point where I wondered why I was buying a car from these people in the first place. I was no longer excited and just wanted to leave and never come back. Not exactly a fairy tale ending to my car-buying experience. 
 
I’m not alone in feeling this way; one customer in Forrester’s Customer Experience Index (CX Index™) Consumer Perspective Online Community says of her car-buying experience:
 
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The Data Digest: Chatbots Can’t Fully Replace Humans Just Yet

Kristopher Arcand
Customer service departments in all industries are increasing their use of chatbots, and we will see usage rise even higher in the next year as companies continue to pilot or launch their own versions of the rule-based digital assistant. What are chatbots? Forrester defines them as autonomous applications that help users complete tasks through conversation.
 
While Forrester’s Consumer Technographics® data reveals that 60% of US online adults already use online messaging, voice, or video chat services, there are challenges to widespread adoption. We reached out to our ConsumerVoices Market Research Online Community members to better understand consumer impressions of chatbots and found that our respondents had a difficult time identifying clear benefits to interacting with them. Many prefer to communicate with a representative who can show real empathy, address more complex needs, and offer them assurance.
 
Earlier this month, I attended the Qual360 2017 conference in Washington, D.C., where chatbots were a hot topic in both qualitative research and customer experience. Speakers highlighted the opportunity of chatbots while warning about their shortcomings. For example:
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Don't Alienate Loyal Customers: How To Step Up Your Email Game

Emily Collins

In the realm of multichannel customer communications, email is still king. It’s the easiest to send, it’s inexpensive and it’s the channel on which most marketers rely to connect with all kinds of customers. Email marketing is ingrained and inexpensive, but as a result, many marketers abuse it, defaulting to a routine batch-and-blast approach. In 2015 alone, U.S. online users received 3.7 trillion emails. Today’s email practices fail loyal customers because they treat everyone the same way and struggle to deliver basic relevance.

Over-emailing is a persistent problem, and marketers face cultural inertia trying to get over the notion that if they email enough, the customer will eventually take action. One incremental email for a thousand customers may only cost you a single dollar, but the emotional value given up from an annoyed customer will cost you in future purchases and in investment needed to rebuild a loyal customer relationship from scratch. In essence, the long-term investment in building a relationship with loyal customers is compromised because of a short-sighted push for conversion.

Marketers can’t afford to alienate loyal customers. After all, those customers are the ones who want to engage with you in the first place. According to Forrester’s Consumer Technographics data, 58% of loyalty program members subscribe to a brand’s email list, compared with just 28% of consumers overall. It’s time for a reboot.

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*New* Forrester Wave: Customer Feedback Management (CFM) Platforms Q2, 2017

Maxie Schmidt-Subramanian

The new Forrester WaveTM: Customer Feedback Management Platforms, Q2, 2017 (paywall) is live! CFM platforms are part of a larger VoC vendor landscape and help CX professionals manage complexity by centralizing and automating essential VoC activities. This Wave scores 10 vendors that matter based on offering, revenue and interest by Forrester clients: Clarabridge, Confirmit, InMoment, MaritzCX, Medallia, NICE, Qualtrics, Satmetrix Systems, SMG, and Verint Systems.

To score these vendors, we developed a comprehensive set of evaluation criteria in three high-level buckets: Current offering, strategy, and market presence. The criteria and their weighting is based on past research and conversations with vendor and CFM users. Client references played a large role in our evaluation: We conducted 30 hours of client reference calls and fielded a survey among 60 client references.

This Forrester Wave evaluation uncovered a market in which four providers emerged as leaders — though their strengths differ: InMoment, Medallia, Qualtrics, and Confirmit. Another three providers – Clarabridge, MaritzCX, and SMG – are Strong Performers. And Satmetrix Systems, NICE, and Verint Systems are Contenders.

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The Case For Coverage Clarity: Why Health Insurance Providers Need To Make Things Clear

Danielle Travaglini

Have you ever thought about going to the doctor and questioned, even momentarily, “Hmm, I wonder if my insurance will cover this?” Or have you ever received a medical bill that was higher than expected? If so, you know these situations don’t elicit a great feeling — and you’re not alone.

The fear of not being covered or the disappointing surprise of finding out you owe more than expected are all-too-common and unpleasant feelings that customers face when it comes to dealing with health insurance companies.

We used Forrester’s Customer Experience Index (CX Index™) Consumer Perspective Online Community to understand specifically what consumers feel when there is lack of clarity surrounding policy coverage details. They say: 

But the key question you are probably asking yourself is, “Do these negative emotional experiences matter — do they affect the bottom line?” We find that the answer is a resounding “Yes.” Lack of clarity or fear of not being covered impacts the overall emotion a customer has about their health insurance provider, which in turn significantly impacts their likelihood to recommend their health insurer to others.

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CX Sydney Forum 2017: Guest Q&A With Australia Post’s Christine Corbett

Michael Barnes

Successful business leaders drive their organizations to create experiences that continually meet or exceed customer expectations. At our CX Forum in Sydney on May 9, Forrester thought leaders and a world-class roster of industry innovators will come together to explore the current and emerging best practices for the design and delivery of exceptional customer experiences in digital channels.

I recently caught up with one of our keynote speakers — Christine Corbett, chief customer officer at Australia Post — to discuss the importance of creating and nurturing a CX-driven culture. Here’s what she had to say:

How has the age of the customer affected the postal service? How have your customers’ needs evolved?

While the rise of the digital economy has created challenges for our traditional letters business, it has opened up exciting new opportunities for Australia Post in parcels. With the rapid growth in online shopping, our customers are looking for greater access, convenience, and choice in the way they transact with us. They are looking for omnichannel experiences: digital for simple transactions, with the option of face-to-face when they need more assistance. More than 50% of our customer interactions are now digital.

Our customers are also looking for more personalised experiences, particularly with parcel deliveries where they can elect to have their parcel left in a safe location of their choosing if they know they’re not going to be home.

What has Australia Post done to improve its customer experience?

We have four key customer focus areas that we have aligned our teams around: creating seamless experiences across channels; listening to customers and taking action; knowing our customers; and empowering our people.

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Forrester's CX Sydney Forum 2017: Deliver Exceptional Digital Customer Experiences . . . Or Else!

Michael Barnes

We’ve been busy finalizing the agenda and speakers for the forthcoming CX Forum in Sydney on May 9. That’s only eight weeks away!

Our focus this year is on exploring the current and emerging best practices for the design and delivery of exceptional customer experiences in digital channels. To put it more simply, we’re going way beyond the why and what to dig deeper into how.

CX and digital marketing professionals need to accelerate the pace of change, so for 2017 we’re deep-diving into four key themes:

  • The future of digital CX. How can you blend new technologies like bots, artificial intelligence, and digital assistants into your existing digital CX strategies? How do these new tools change customer behavior and expectations? And how will the practice of CX be altered as a result?
  • CX design and delivery. What are the best practices for creating innovative, distinctive customer journeys that cross functions like sales, marketing, and customer service? How can you truly embrace CX as a team sport?
  • Technology stack and strategy. How can CX and IT collaborate to tackle new thinking about CX technology strategy and management? How can these groups work together to drive the digital transformation of their entire organizations?
  • Creating and nurturing a CX-driven culture. How can you deliver sustainable, remarkable experiences? What does it really mean to instill a customer-obsessed culture and what are the hallmarks of a CX-driven organization?
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