It's easy to get swept up in the power of the digital age, where smart mobile devices and cloud services open the door for new and exciting ways to engage customers. We think a lot about how these technologies will create enticing customer experiences (CX), making these digital touchpoints the face of the brand. I admit, as a technology fan, I'm enamored with this idea. But I'm also someone who thinks a lot about technology and the workforce, so I was equally animated by a conversation I recently had with the head of a CX consultancy. He warned that businesses risk over rotating on technology, viewing their people as receding in importance in delivering satisfactory customer experiences. He went on to say that businesses that make this make do so at their own peril. I agree.
I have never put ‘Wow’ into the title of a blog before – but for this one it’s fully justified.
This is the fifth year InfoWorld, Penn State University Center for EA, and Forrester have run the annual Enterprise Architecture Awards. When I compare the winners of five years ago – all excellent EA programs, with this year’s winners and the runner-ups, all I can say is ‘Wow – EA is really advancing’.
I am pleased to announce the winners of the 2014 Enterprise Architecture Awards. This year, we have six winning programs – all of which demonstrate leading edge thinking on how they engage with their business, how they provide value, and how they help their business achieve its strategic goals. Here are the winners, selected by a panel of leading EA practitioners drawn previous years’ winners and other excellent programs. (For a more extensive write-up, see the InfoWorld report)
Driving Innovation with Enterprise Architecture
The best way to succeed in Property and Casualty insurance in the US market is to create innovative products and services for unique customer segments, each with a customized customer value proposition. This is the need that Doug Safford, Vice President and Chief Architect pivoted his EA program towards.
While analyzing the survey results for my recent report on the state of customer experience management in India, I noticed a fundamental flaw in the way that Indian organizations approach reporting structures for their customer experience (CX) teams. About a fifth of the organizations we surveyed rely on their customer service department to lead the charge for CX initiatives.
This is detrimental to the growth of CX, as there are basic differences between the scope of work and the skill sets of the two teams. Specifically, customer service teams have limited capabilities and exposure across:
People. While both CX and customer service teams work toward enhancing the experience across the customer life cycle, the customer service team has a somewhat myopic view of customer engagement, focusing predominantly on handling client complaints and resolving queries.
Processes. Forrester defines customer experience as how customers perceive their interactions with a company. The contribution of customer service teams to this process is limited to supporting customer tasks in a few phases of the journey.
Tools. Customer service professionals are responsible for the experience delivered via multiple touchpoints, such as IVR systems, contact centers, and social media. However, other equally important customer interfaces, such as mobile applications, digital kiosks, and eCommerce platforms, fall outside their purview.
Allow me to make a confession: In the debate over whether people are rational or emotional decision-makers, I have persistently seated myself on the rational side of the table. However, recent research has challenged my views. Witnessing cross-discipline academics reinforce the motivating power of emotion has resulted in a general consensus among fellow rationalists that “reason leads to conclusions; emotion leads to action.”
We are now recognizing the power of emotional decision-making in consumer behavior and — most importantly — the effect that it has on a company’s bottom line. Nothing is more convincing than the data itself. For example, a combination of Forrester's Consumer Technographics® quantitative and qualitative insight shows that when banking providers fail to meet a customer's expectations in moments of high emotional investment, they risk losing that customer altogether:
From the moment they open an account to their on-going interactions with bank employees, customers navigate a series of emotional experiences that directly affect their decision to enhance or withdraw from the brand relationship. Companies that appeal to customer emotions during such engagements master these "moments of truth" and ensure that outcomes are positive — and profitable.
Here at Forrester we are busy planning our upcoming Forum For CIOs And CMOs. With a theme of “Building A Customer-Obsessed Enterprise” the event explores the partnership between marketing and technology leaders. But what about our government clients? The role of marketing is associated with the private sector. Companies employ marketers to identify their target markets and the opportunities for providing goods and services to them. Public-sector organizations don't typically have the luxury of choosing their target market or their products and services. Or at least that’s what most organizations think. But even if that is the case, it doesn't mean that these organizations shouldn't get to know their "customers" and understand how best to meet their needs. While the service might be prescribed by legislation or regulation, public organizations can influence the customer experience, and the rising focus on citizen engagement mandates they do so.
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.
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.
In a recent report on next-generation services, I give several examples of how tech services firms are reinventing their operating models and value propositions to provide a new path to digital transformation to their clients. Interestingly, many such initiatives are coming either from very large service providers like Accenture or from small specialists like VMob, Bluefin Solutions, or Point of Origin. Small service providers’ next-gen service value proposition is starting to catch the interest of large clients too. A few weeks ago, VMob announced a major deal with McDonald’s in Japan wherein the company will leverage the VMob solution for its 3,200 restaurants in Japan.
The next-generation services report highlights the key tenets of these new digital transformation offerings. In this customer-controlled, digital world, successful tech services companies will bridge the gap between technology and business outcomes for their clients. In other words, it is not just about implementing a new technology solution anymore. It is about helping clients harvest the power of digital technologies and achieve specific business outcomes like growing revenues, reducing operating costs, or mitigating risks. This is where next-generation service providers like VMob, Bluefin, and Point of Origin get it. As leaders in the new services world, their approach is fundamentally different from the traditional tech service providers, as they:
The problems Rick identified in CX ecosystems seem to be the result of ossified organizations, cultures, and business relationships. This means CX leaders must drive new levels of responsiveness and creativity into their ecosystems. And the way you drive these attributes into your ecosystems is to seize on the concept of business agility. My colleague Craig Le Clair outlined 10 dimensions of business agility that provide the market, organizational, and process frameworks necessary to embrace market and operational changes as a matter of routine. This is merely setting the strategy, though; executing it requires a marriage between the business and technology strategies.
It’s with great pleasure that I announce the agenda for Forrester's Forum For Customer Experience Professionals in Anaheim, CA, on November 6 & 7. We’re mixing things up this year — new formats for speakers, new hands-on, activity-based workshops in addition to track sessions, and a stellar gallery of guest speakers. And we’ve wrapped all of this up with an overarching theme: “Why Good Is Not Good Enough.”
We picked this theme because our Customer Experience Index (CXi) told us to. Seriously. Check this out: According to the latest CXi, the number of brands scoring in the “very poor” category is down to one out of 175. What’s more, only a handful of brands — 10% — are in the “poor” category. Together, these findings show that as customer experience improvement efforts gained momentum over the past year or so, the number of truly awful experiences declined, dramatically. That’s reassuring. Kudos to all the businesses out there that screw up less!
Now for the sobering news: Only 11% of brands in the CXi made it into the “excellent” category.
What that means of course is that most brands are clustering in the middle of the curve — they’re not awful in the eyes of their customers, but they’re not remarkable either. Translation: A merely good customer experience is no longer good enough if you want to deliver a differentiated experience and reap incremental sales, positive word of mouth, and better customer retention. You’re gonna have to raise your game.