CRM is the foundational building block that allows empowered consumers and connected employees to do business in ways we could not imagine just a few years ago. Historically, CRM strategies have focused around operational efficiency gains like reduced marketing costs, increased revenues from salespeople, shorter sales cycles, or better customer service productivity. Its no wonder that CRM is widely deployed in all companies – both big and small.
I first noticed the creeping changes a few years ago. In college I majored in comparative literature and averaged about five novels read per week. Even when I entered the hustle and bustle overdrive of the working world, I still rapidly pounded through stacks of books every month. Over the past few years, while I still read more than the average American, the act of actually finishing a book became something of a notable achievement. My brain was more easily distracted, my ability to focus on and engage with complex information diminished, and my capacity to multitask as required by a modern work environment was seemingly illusory.
Of course, I wasn’t alone in experiencing these changes. This distracted mental state has become a common problem among knowledge workers and heavy users of Internet and mobile technologies. Excellent books such as Distracted: The Erosion of Attention and the Coming Dark Age and The Shallows: What the Internet Is Doing to Our Brains detailed the changes we are all undergoing and described much of the neuropsychological research that seeks to explain the mental modifications that have left us in such a state. At heart, the research shows that our tools have begun to shape our brains just as much as we fashion our tools--and not always for the better.
Such mental modifications would seem to pose some significant and idiosyncratic problems for customer service organizations. Indeed, a new generation of contact center agents has begun to vex application development and delivery professionals. The new agents seem reluctant to learn detailed product and service information that previous cohorts of agents had little problem with. These new agents prefer to learn where to find such information, but have little intention of actually memorizing product support details.
I had the pleasure of presenting to Singapore’s DBS Bank yesterday on customer experience and listening to CEO Piyush Gupta’s thoughts on the bank’s journey since he joined in 2009. He spoke about his conclusion upon joining five years ago that a critical challenge to be addressed was an inside-out perspective by the bank’s employees. Since then, he’s driven the bank through a successful transformation project Forrester wrote about in an August case study. Looking forward, he sees the bank working toward “joyful” banking and is seeking ways to embed more emotional connections into their customer experiences.
Listening to Piyush speak reminded me of my interactions with another regional CEO this year who has driven a successful company transformation: Telstra’s David Thodey. David also joined in 2009 and has driven Telstra’s success through a focus on the customer. He has given his customer focus organizational teeth by linking it to Net Promoter Scores (NPS) that determine part of the compensation system at Telstra. The importance of measurement is the key reason we recommend our clients leverage Forrester’s CX Index.
In our new report, Want To Improve Your Customer Experience? Turn To The Cloud, we examine how cloud services can help customer experience professionals drive flexibility and responsiveness into their customer experience ecosystems. At the heart of this report is our read of cloud services' fundamental value:
In 2014, Forrester outlined a new approach to marketing that requires brands to harness customer context to deliver self-perpetuating cycles of real-time, two-way, insight-driven interactions. In 2015, we’ll see more marketers obsess over customers’ context. As more interaction data floods customer databases and marketing automation systems, customer-obsessed marketing leaders will strive to orchestrate brand experiences that drive unprecedented levels of engagement. For example, we predict that:
Digital marketing investments will drive brand experiences across the customer life cycle. By the end of 2015, spend on digital marketing will top $67 billion — growing to 27% of all ad spend. In fact, we believe this will surpass TV spend by 2016; there’s more to the story than ad spend. We believe marketers will branch out of expected digital media buys to stimulate more insight-driven interactions with customers throughout the entire customer life cycle. Supported by new streams of situational customer data and powered by the ability to precisely target audiences with programmatic media buying, marketers will deliver highly engaging brand experiences rather than just feed the top of the funnel.
In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?
Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions. Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market. In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
Improving the U.S. federal customer experience (CX) is crucial to our nation’s long-term security. I’m not exaggerating. Improving federal CX is about far more than just boosting an agency’s ranking on the American Customer Satisfaction Index (ACSI) or raising a Net Promoter Score. It’s even about more than influencing the success or failure of major policies – and we all saw how the initial breakdown of healthcare.gov hurt the implementation of the Affordable Care Act.
Poor federal CX actually weakens the underpinnings of our political system by making people less proud and optimistic about the country itself. Forrester has the data to prove it. The pilot run of our enhanced CX Index shows that the worse a citizen’s experience as the customer of a federal agency, the less likely that person is to say he is proud of the country and optimistic about its future. Not a particular agency, official, or administration – the country itself.
2014 wasn’t a good year to be average. Since 2007, the average customer experience in the industries that Forrester tracks has gone up across the board, and the number of truly awful experiences has dropped like a rock. So if your CX is average, it’s just not good enough to win, serve and retain customers. And it won’t get any easier next year: With companies investing more than ever to differentiate their customer experience, your average offering will soon be considered poor.
In 2015, the race from good to great CX will hit the gas pedal. Smart CX teams will increasingly use customer data from diverse sources like social listening platforms, campaign management platforms, mobile apps and loyalty programs – to personalize and tailor experiences in real time so that they inherently adapt to the needs, wants, and behaviors of individual customers. And as companies strive to break from the pack and gain a competitive edge through the quality of the CX they provide, we’ll see the battleground shift to new areas like emotional experiences and extended CX ecosystems, and into laggard industries like health insurance and TV service providers, and even the Federal government.
As we do every year, we’ve just published our Predictions report for CX. I want to share a couple of those predictions with you:
In 2014 digital business hit the boardroom and the C-suite offices: At the beginning of 2014, 93% of executives told us that they believed that their industries would experience digital disruption in 2014. But our surveys and interviews also tell us that many executives don’t believe that their firm has the ability to execute on that plan, and many don’t have confidence in the plan itself.
In the airline industry, Southwest is no stranger to customer experience accolades. In fact, it consistently earns top marks on Forrester’s Customer Experience Index compared to other carriers – offering enjoyable and easy experiences that meet customers' needs.
It will be a pleasure to hear directly from Southwest’s Managing Director of Customer Strategy and Development, Ryan Green, next month at Forrester’s Customer Experience Forum West in Anaheim, CA. To get an early taste for why Southwest is known for its experience, and the strategy behind it, read on.
Q&A with Ryan Green, Managing Director Customer Strategy & Development, Southwest Airlines
Q: When did your company first begin focusing on customer experience? Why?
A: Southwest Airlines has always been focused on the Customer. Our company started with the vision to give people the freedom to fly and our differentiator has always been policies and services that lean towards the Customer. As a result, we now fly more passengers domestically, increased our airports served dramatically and Southwest Airlines’ Customer complaints are the lowest in the industry. As we’ve grown and the industry has become more competitive we’ve definitely continued uncovering what our Customers need and want from Southwest Airlines and we are focused on giving them that experience to keep them coming back time and again.
Q: What aspects of the experience that your company delivers matter most to your customers?