strategic business marketing reflection
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GuestSpeaker2-CustomerExperienceCX.pptxB2B CUSTOMER EXPERIENCE GUEST LECTURE strategic business marketing 2nd april 2019 Ellie english
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Presentation overview
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| 1 | About Sirius Strategy |
| 2 | What does CX mean & how is it different in B2B environment? |
| 3 | Macro trends driving poor CX in B2B companies |
| 4 | Key steps to drive improved CX in B2B industry |
What is OUR REASON FOR BEING?
Psychology + Science + Creativity + Commercial = Mutual value, shared success for our customers, their customers & the community
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Transform their businesses from being product-centric to customer-centric
Understand key customer insights to improve knowledge of customers
Evaluate and improve current customer journeys
Improve return on CX investment via developing an integrated performance management approach
Revamp product offerings around customer needs
We partner with clients to…
CLASSIFICATION: CONFIDENTIAL
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Customer experience (cx) means different things to different people
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Customer
Experience (CX)
Service
Product Performance
Brand & Reputation
Perception of Price
The service that is delivered to a customer across the customer lifecycle
The service is delivered in a unified and consistent way (company & partners)
The product meets customer needs & expectations (now & future)
The product lifecycle is informed and managed using customer insights
The organisation’s brand & reputation is integrated & executed via the customer experience
Brand is an integral step to shape customer expectations & perceptions
Price is a key driver of a customer’s perception of your brand
Pricing strategies need to be developed using insights about a Customer’s willingness to pay for your product
IF WE TAKE A STEP BACK, WHAT DOES CX MEAN TO YOU?
CX is how a customer perceives your brand through all their interactions (direct & indirect) across the customer lifecycle
How are you defining CX in your organisations? Is there anything else you would consider?
CLASSIFICATION: CONFIDENTIAL
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CX FOCUS AREAS
Consumers
B2B
One decision maker but a myriad of influencers
Sometimes less interaction between the buyer and seller, particularly for digital businesses (eBay)
Supply chain is often more simple, offer products to retailer
Service and support is more transactional
Digitisation is a key component of improving how the consumer interacts with the business
Higher number of customers
Social media is often a key complaint channel
Multiple customer journeys (e.g.. Buyer, user, decision-maker)
Significant interaction between the buyer and seller and sales cycle is much longer
Supply chain is often more complex as they may sell to other providers as part of their product or suppliers downstream and other distributors
Employees are a vital part of delivering the experience
Larger transactions sizes & 80/20 rule- 20% of customers drive 80% of revenue so segmentation and treatment may be differently applied
Smaller number of customers
More complex and higher involvement products
Whilst Customer-centricity and best practice CX principles can be applied across both B2B and B2C environments, there are some distinct differences that inform how CX methodologies should be applied.
APPLYING CX IN B2B & B2C ENVIRONMENTS IS DIFFERENT
CLASSIFICATION: CONFIDENTIAL
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90% of b2b leaders recognise cx as being a key differentiator
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Source: 1.Accenture. 2019,
CLASSIFICATION: CONFIDENTIAL
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Exploding data is overwhelming
Businesses need the analytics and skills to make sense of and tap into this insight
Switching Costs & Lapses
The effort and cost to switch is low
Customers are in control
Customers have options and are motivated to actively look for better deals
Demonstrating return on CX Initiatives
Quantifying the return on CX becomes more challenging & important
Growing Distance Between Business & Client
Digitisation & B2C like expectations have changed everything
DESPITE THIS on average B2B COMPANIES SCORE BELOW 50% IN CX RATINGS AS most don’t know where to start….
Complexity of channel management
The customer journey is often too complex to think about due to the number of suppliers, partners and distributors.
Source: 1.McKinsey. 2019
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Most companies often look to their direct customers when analysing CX improvement efforts, which only shows them part of the story. The few doing it well obtain a complete picture of their customer experience via mapping customer journeys, identifying key moments of truth and then using this to map the underlying strategies, people, processes and technology that underpin this experience.
Customer Value Creation
Via B2B2C
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B2B Customer
Deliver frictionless experience to B2B customer and on value proposition
Suppliers/Partners
Suppliers & partners are often integral to delivering the customer experience, irrespective of how transactional the process is considered.
End-user (B2C Customer)
If the B2B product is not designed with the end-user in mind, this will likely lead to complaints, customer churn & loss of revenue for the B2B Customer.
Understanding the cx ecosystem is critical to achieving customer value & differentiation
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TREND 2: GREATER FOCUS ON DATA MANAGEMENT
OBTAINING A COMPREHENSIVE UNDERSTANDING OF YOUR CUSTOMER IS A KEY STARTING POINT
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Outside-In
(External Customer View)
Inside-Out
(Internal CX Delivery View)
Customer experience (CX) strategy
Customer insights about current & future customer needs
Key investments
Business Strategy
Key processes
Procurement with suppliers/partners
Culture
Interrelationships
Line of visibility for customers
Internal support to deliver services to customers
Customer‘s journey with your organisation
Support processes & decisions to enable effective CX
CX Gap
MAPPING THE complete customer journey from both the customer’s & organisation’s view is critical
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Unlocking TRUE value from cx requires a comprehensive understanding of the key processes across the value chain
c
Customer journey
Internal Customer Blueprint
Source: Sirius Strategy’s simplified customer blueprint
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Developing a Balanced Scorecard to translate and cascade your customer-centric strategy is crucial to drive a step-change in CX.
SOURCE: Southwest Airlines 2013
INTEGRATING CUSTOMER-CENTRICITY INTO YOUR STRATEGY IS CRUCIAL TO SHIFT CX RESULTS
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CUSTOMER SERVICE
TRANSACTION
EXPERIENCE
INFORMATION
Evolving your CX measurement approach from reporting to a robust performance management approach will drive continuous improvements in your CX efforts.
Developing a comprehensive measurement approach needs to go beyond nps
• Obtain a comprehensive analysis of each attribute and understand the influence it has on overall organisational performance.
TRUST (e.g., transparency, communication)
REPUTATION
CUSTOMER EFFORT
GOVERNANCE
• If the CX index framework is designed properly, you should be able to understand deeper insights to pinpoint root causes of where CX is underperforming. This goes beyond measuring CX at a touch point level towards CX at the critical points in the customer journey and over a longer time period. This should be reviewed in conjunction with internal performance & customer behaviour data.
• The root cause analysis combined with an understanding of overall business performance helps continuously improve CX initiatives.
• It will also help it understand what is working and not working, so that it can stop non-value add investments in CX
Total CX Index Score
E.g., 65%
Design CX index with critical attributes
2. Analyse attributes that require most focus & improvement
3. Understand trends & performance drivers
4. Develop course corrections
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Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
221742-48 RMS Customer Value - Final Deliverable v18.pptx
Notes view: 15
Happy Employees
How satisfied are your customers with your services?
How many customers are you acquiring and losing?
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Happy Customers
Low Customer Churn & Higher Acquisition
Improved Profits
What is the lifetime value of your customers?
Customer-centric culture = Improved business performance and CX
Employee Empowerment
Agile/ Innovation
Challenging status quo
Clear vision/purpose
Customer knowledge
Cross-functional collaboration
Data-driven
Cultural Elements
building a customer-centric culture is PIVOTAL FOR SUCCESS
How engaged are your employees?
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Questions
Ellie English
Director | Strategist
0416 943 860 [email protected]
www.siriusstrategy.com
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