Design Management Forum keynote — Hug The Future – Service & Experience Desig...
Veryday Future CXpectations whitepaper
1. 1
Recently, on my way across town to pick up the kids from school, my Google Maps proactively
suggested a better route based on current traffic conditions. Have you ever thought about how that
works or how a service company always manages to stay one step ahead of your needs? Google, of
course, invests heavily in order to anticipate our needs and come up with new ways of creating value for
us. The question is, is this something that your business can do, too? If so, how?
What businesses need is a way to be more effective. A vision of the future combined with real, deep
customer insights that keep companies moving, adapting and growing alongside the exponential
opportunities ahead. At Veryday we’ve created the Future Customer Experience Framework, a model that
describes how to succeed.
a new playing field
In a recent survey, Gartner research found that 89% of companies expect that soon they’ll compete
mostly on the basis of customer experience (versus 36% four years ago). Customer-centricity and
innovation have been discussed in many boardrooms and most CEOs have started to invest, focus and
prioritize in that area. How can your business compete in a landscape like that?
Stefan Moritz
VP Customer Experience
Veryday
stefan.moritz@veryday.com
Malin Orebäck
VP Design
Veryday
malin.oreback@veryday.com
Siamak
Tahmoresnia
Senior Design Strategist
Veryday
siamak.tahmoresnia@
veryday.com
customer experience
How to grow by tuning into
future customer expectations
89% of companies expect to compete mostly
on the basis of customer experience by 2016,
versus 36% four years ago according to Gartner
Research.
If everybody is running toward the same goal,
it’s speed that counts - but also the right direction.
89%
2. 2
1 - expectations across sector
Many companies know that smart, connected customers have high expectations that evolve quickly. The
new generation has a greater influence than ever on older generations. Expectations permeate across
age groups and geographies, but also across traditional sector boundaries. The ease of cardless
payment in an Uber taxi, for example, may raise questions the next time you check out of a hotel — why
isn’t your experience there as seamless, too?
2 - reviews
As customers consider subscribing to or buying into your service or experience, they interact with others
who actively share thoughts about their experience. Sharing reviews has never been easier, and this
makes positive customer experience essential for a successful service company. A hotel’s TripAdvisor
rating, for example, is more crucial than a glossy website. Unlike consumer products, you cannot return
an experience, so customers use mobile transparency to make smarter choices from the start.
3 - latent needs
Many service companies are switching to new technology platforms to improve their back-end
capabilities, often basing these significant tech investments on assumptions and surveys of what
customers say they want today. However, many customers do not articulate their needs well, and
what they say often differs from what they do. This can bear the risk of financial loss, but it’s also an
opportunity to tap into latent needs.
Many customers
can’t articulate
their needs. What
they do is often
different from
what they say.
Great customer experience
has a significant impact on
customer loyalty, employee
engagement, company
value and stock market
performance. Watermark
recently launched an
updated version of their
Customer Experience ROI
Study demonstrating the
business value of great
customer experience: http://
www.watermarkconsult.net/
blog/2015/06/02/the-2015-
customer-experience-roi-study/
Three opportunity areas
The value of knowing what customers will expect in the
future has never been greater.
4. 4
innovation cycle
At the core of our model is an iterative
and truly customer-centric process
that links insights to business value.
This iterative development compass
runs 24/7, with an inner Customer
Value focus and an outer Business
Value focus.
You can start in any quarter of the compass, but most often we begin by uncovering customer needs
through people insight research. A significant unmet need frequently points toward a corresponding
business opportunity.
The next step is then to prioritize and develop concepts around the most promising opportunities while
simultaneously putting the business model to the test. In the following phase, select concepts are
brought to life as prototypes and financial potential is estimated. Finally, to close the loop, prototypes
are tested and validated with customers and other stakeholders – both for user experience and
commercial viability.
Most development initiatives move through the model several times and are further refined in each
cycle. The first cycle is usually generative, with a focus on learning about and identifying customer
needs, as well as what’s really meaningful and valuable to them.
The second cycle begins when something starts being built or a few ideas have been generated.
In the third cycle and beyond, a detailed solution typically needs verification to prove that it’s on the
right track. In these generative cycles, it‘s most appropriate to use qualitative methods and meet with
fewer customers. In later validation cycles it’s also relevant to use quantitative methods but include a
larger number of customers.
Some companies develop the Value Compass into a system, scheduling a bi-weekly timeslot to meet
with customers and test initiatives currently in the making. From here, they often develop the natural
habit of spending time with customers to tune in to their needs and co-create new opportunities.
Read more about our work
with Customer Experience:
http://veryday.com/market-
focus-areas/service-sector/
By establishing
collaborative,
multi-disciplinary
working
environments,
companies
can increase
productivity and
foster innovation.
BUSINESS OPPORTUNITY
BUSINESS CASE
UNCOVER NEEDS
REALITYCHECK
EXP. PROTOTYPES
CONCEPTDEV.
BUSINESSMODEL
COMMERCIALVALIDATION
today current needs
Operational excellence
5. 5
How will you invest in creating relevant solutions for your customers in the medium term? What will
generate the best return on innovation investment and where do you find the best growth potential?
Understanding who your customers are, how they behave and what their needs are is critical to
knowing where to put your money and time. You need to venture out and investigate real customer
needs to avoid making assumptions, stereotyping or boxing customers into generalized personas.
Veryday looked at personality and behavior to create uniquely defined customer profiles with
distinctively different needs and values for one of Sweden’s largest grocery retailers. The solution
became a portfolio of services that fit a broad customer base and were more in tune with the distinct
needs of each profile.
Once such profiles are identified, you can ensure that key customers are offered solutions that fit their
needs. When you have a broad target (like food retail), knowing your various customer groups and
quantifing how big these groups are is key to building a roadmap for your service portfolio.
Once you’ve identified who your key customers are, it’s a good idea to map the customer journey.
This often reveals complexities and pain points, as well as where things are great. Journeys can have
different purposes and map entire service flows, individual customer journeys or include numerous
layers of stakeholders. One powerful form of journey mapping is emotional experience mapping, which
focuses on emotional responses to situations over time.
So what can you learn from a customer journey? It can provide in-depth knowledge about the good and
bad parts of an experience, help identify where critical improvements are needed, and provide ways to
find easy fixes.
However, a journey map is also somewhat limited to the current situation. It investigates and describes
reality as it is today. If you envision an entirely different solution tomorrow, you need to complement this
with some other methods.
1 - 3 years unmet needs
Growth
Emotions evoke
different actions
and reactions
to products,
services and
the brands that
create them.
Read more about
Emotional Experience
Mapping: http://veryday.
com/people-insight/
emotional-experience-
mapping/
6. 6
To fuel projects with new perspectives and unlock potential for radically new ideas, we need to add
a layer of forecasting to the creative process. In the future, customer expectations will transcend age
groups and sectors. Individuals will have overlapping identities that result in mindsets changing in
emphasis – depending on life stage and context. To truly meet our future customers, we’ll need to
navigate through key shifting mindsets.
In the near future, customers will be the digital natives that have been immersed in the digital
environment for as long as they can remember. They’ll have entrepreneurial, adaptive minds and see
the world in continuums: anytime-anywhere production and consumption of content. Everyone and
everything will be connected. Things will just work, seamlessly, meeting their demands before they
realize them – as expected. The technical solutions that simplify people’s lives will be sophisticated,
and consumers will have little interest in understanding them. They’ll simply want to engage with the
never-ending flow of content, with activities that range from social media to shopping.
What can brands offer to engage these confident and fluent future customers? In ten years, where will
today’s teenage social media masters hang out digitally? What platforms for expression and creation
will they need as adults? How will brands be a part of people’s lives when they expect services to be
delivered unnoticed? How can brands support customers in an increasingly complex and diverse digital
world?
By setting the stage through scenarios and context descriptions, it’s possible to co-create and even
prototype future solutions with consumers and uncover ideas they couldn’t articulate if simply asked.
Bringing early prototyped ideas also helps spark new thoughts and reflections on future needs.
The results of this work can inform the vision and direction of today’s decisions. Used in the right
way, it can direct the heavy investment being made in IT infrastructure and make it more adaptable to
customers’ futures – hugely reducing the risk of making large investments in the wrong technologies.
Read more about how
we help clients develop
innovation processes:
http://veryday.com/business-
innovation/innovation-support/
Futuring offers
tailor-made
insights that fill the
gap between pure
data prediction
and strategic
decision-making.
4 - 10 years future needs
Creating the future
7. 7
Being open to changing along with your customers also means that your organization needs to be set
up for continuous transformation. Future vision, insights and the Iterative Value Compass become a
foundation for the innovation pipeline and roadmap of the future. Unless your organization is ready to
change, nothing in the innovation pipeline will come to life.
Well-crafted and detailed directions – transformation drivers – will fuel your organization to transform
and provide concrete actions for change and alignment with key stakeholders.
For example, a global telecom company used transformation drivers to align IT, retail, processes,
partnerships and communications by defining key shifts required from a customer perspective. Each
driver was a theme underpinned by concrete insights and linked to the customer journey. A tangible
business opportunity was identified for each theme so all areas knew why they were working together
towards a particular goal. Key business requirements were defined overall and for each area. The
advantage of this way of working is a process that allows for evolution and adjustment.
bringing it all together
Our framework is based on many years of experience working with companies in the financial services,
telecom, hospitality, travel and education sectors. We truly enjoy collaborating with multi-disciplinary
teams in various organizations to effect transformation through customer experience. And we know that
each organization is different in its challenges, culture and opportunities. A co-created discovery of how
to establish and fuel this new way of working has already yielded results, and we believe there are
many simple ways to benefit from the possibilities of scaling and evolving.
4 - 10 years future needs
Transformation drivers
Unless your
organization
is ready to
change,
nothing in the
innovation
pipeline will
come to life.
getting started:
1. Set aside time
Invite your team to a workshop to explore: What do we know about how our customers will live in the
future? What will be our brand’s role in their lives? What will be their expectations from a service like
ours? Spending a few hours reflecting about the future together will allow you to push forward in the
right direction today. Many good materials about trends are available for free and you can get help to
facilitate this session if you want.
2. Get organized
Consider how you can bring different parts of the organization together. Together, review and share
what you already know: Who are our most valuable customers? What do we know about their needs?
What do we know about the customer and service journeys? How can we make this knowledge more
accessible and actionable? Do we have any gaps to fill?
3. Set an ambition
Set up a discussion with the leadership team to agree on where customer experience should be placed
in your organization: What strategic value does it have? What are the business objectives that could be
fueled with more customer oriented efforts? What goals could we set for cross-functional customer and
business value. What are the key metrics? What is our vision?
Contact us for more information: stefan.moritz@veryday.com, malin.oreback@veryday.com