Best Practices in Experimenting with Existing Channels - Omni Digital
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Omni Digital Closing Keynote, September 10, 2015, Chicago IL Charlene Li, Principal Analyst, Altimeter, a Prophet Company
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Best Practices in Experimenting with Existing Channels - Omni Digital
- 1. Proprietary and confidential. Do not distribute. Charlene Li, Principal Analyst, Altimeter @charleneli September 10, 2015 Best Practices in Experimenting with Emerging Channels
- 3. Strategy is What You Do – And Don’t Do
- 5. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 5September 10, 2015 Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them.
- 6. Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information 6Proprietary and confidential. Do not distribute. Customer Journeys Are Not Connected to Digital Transformation Is your organization undergoing a digital transformation? Source: Altimeter Group Digital Transformation Study, 2014. 88% 12% Yes No 42% 25% 12% 12% 3% The need to do so hasn’t come up or been made a priority We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments We’ve talked about the need to do so but no one has taken the lead yet We are researching customer behavior now and waiting for results to inform our digital transformation strategy We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points Which best describes your company’s efforts around the customer journey/experience?
- 7. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 7September 10, 2015 Traditional Journeys • Personas • Linear • Optimization focus • Functional • Episodic designed • Static • Survey & heuristic based Next Gen Experiences • Individuals • Unpredictable, shared • Strategic focus • Emotional • Continuously designed • Dynamic, real-time • Data-based Creating Next Generation Customer Experiences
- 8. Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information 8Proprietary and confidential. Do not distribute. Four Best Practices to Create Next Gen Customer Experiences 1. Customer Obsession 2. Practice Relentless Pragmatism 3. Build Brand Trust 4. Networked Mindset
- 10. How much do you really understand your customer? Case study: T-Mobile • Frustrated wireless customers fed up with carriers • Willing to look beyond coverage and services • Rising need for transparency, flexibility, and fairness T-Mobile re-positioned as the “Un-carrier” creating customer experiences and employee engagement around the theme
- 11. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 11September 10, 2015 How to be Customer Obsessed
- 12. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 12September 10, 2015 E M P A T H Y !
- 13. Understand Customers’ Offsite Behavior • What your most “loyal” customers do? • Where do they go? Source: Jumpshot
- 14. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 14September 10, 2015 Don’t Wait for “Complete” 360 View of Customer to Make Decisions
- 15. 2. Practice Relentlessly Pragmatism
- 16. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 16September 10, 2015 What The Most Successful Brands Do Well
- 17. Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information 17Proprietary and confidential. Do not distribute. Rigorously Define Success and Failure
- 18. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 18September 10, 2015 Experimenting with Snapchat
- 19. 3. Build Brand Trust
- 20. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 20September 10, 2015
- 21. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 21September 10, 2015 Build Trust with Engagement Source: Edelman Trust Barometer, 2015
- 22. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 22September 10, 2015 Consumers Don’t Understand How Data Is Used
- 23. Case Study: John Lewis Online shopping = 33% of trade Focus on “Click & Collect”, which accounted for 49% of online sales in 2014 Brand promise drives strategy
- 25. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 25September 10, 2015 Rigid Organizations Dynamic Organizations Digital Will Require New Ways of Working
- 26. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 26September 10, 2015 Great Employee Relationships Support Great Customer Relationships 45% of organizations said that developing a plan for employee advocacy is a top priority Source: Altimeter report, “The 2015 State of Social Business”
- 27. Case Study: Telstra’s “BBQ” App • Employees download an app to their phone • Can log service request for friend or family member • Escalate issues • Closes the loop with both employee and customer • Also provides updates on strategy, news updates, etc. • Almost half of employees have downloaded the app
- 29. For more information please contact: Charlene Li Principal Analyst +1 415-915-9597 charlene@altimetergroup.com @charleneli www.altimetergroup.com www.charleneli.com
Notas del editor
- There are many emerging platforms that can be used to create omni-digital experiences.
- What’s needed is a strategy, and this has never been more true than today. All of the great technology won’t work without the leadership to make it happen.
- But it’s not about the technology, it’s about the relationships that you can create and deepen through these experiences.
- Here’s an example: Nordstrom’s purpose statement is focused on the relationship with customers, defined by EMPOWERMENT. They started with inventory systems because they helped salespeople fulfill a key need of customers. Then armed employees with tablets, information at their fingertips. Then incorporated Pinterest pins into merchandising, and even put pins in the stores. Their technology choices were grounded in what will build experiences that deepen the relationship. This is a strategy.
- Altimeter’s research shows that 88% of companies are going through a digital transformation. But only 25% truly understand the customer journey and use it to create new digital touch points.
- Even the way we create traditional customer journeys needs to change – next generation experiences will go beyond a few personas to be individualized, be continously designed based on dynamic, real-time data.
- There are four ways to build these new next generation customer experiences.
- Customer Obsession goes beyond being customer focused or customer centric. We are talking about OBSESSION about the needs and wants of customers.
- T-Mobile’s turnaround was based on a new understanding of what customers wanted – transparency, flexibility, and fairness. They crafted customer experiences around the them of being the “Un-carrier” throughout the company.
- To be customer obsessed, be like the “Undercover Boss” where you can really find out what customers do and want.
- The key is to walk in the shoes of your customers and develop empathy for them.
- Understand what your customers do across websites. Jumpshot can track customers across multiple sites through a browser (computer or mobile). In one example, the data showed that frequent flyers of one airline were much more likely to purchase with an online travel agent (OTA) then the second airline’s frequent fliers. Second chart shows the number of visits each segment visited prior to converting with an airline. The longer the bar, the more sites they visit before purchasing, meaning the more opportunities for conquesting.
- Many organizations feel they need to have a full “360 view” of the customer in order to be effective. The key is to understand the customer journey, the gaps in the journey, and the data you need to bridge that gap. You need enough information to make decisions, not to necessarily remove all risk.
- Second area is being pragmatic.
- One of the most successful innovative brands is Google. And what they do well is to Fail. Here’s a list of some (not even close to all) of the products that have failed. Failing well requires knowing what worked, didn’t work, and being able to apply that learning. This doesn’t happen unless we have a health relationship with failure. Pragmatic, not emotional relationship with failure.
- Be clear about defining success AND failure. Then celebrate both.
- Here are some brands experimenting with Snapchat. Everland promoted a popup store in NYC via a Snapchat story McDonald’s created a sponsored wrapper for Snapchat users near their stores with geo-targeting. Wet Seal sponsored a Snapchat story from a top 18-year old fashion blogger.
- Who do you trust? How much do you trust Facebook? What would your customers say about you and your brand?
- Edelman found that two ways to build trust comes from Integrity (doing what you say you are going to do) and Engagement.
- Altimeter research found that two-thirds of consumers don’t understand how companies are using the data they collect.